EARNINGS PER SHARE (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on exercise of stock options.

E2| DIVIDEND

The Company declares and pays dividends in Indian rupees. Companies are required to pay/distribute dividend after deducting applicable taxes if any. The remittance of dividends outside India is governed by Indian law on foreign exchange and is also subject to withholding tax at applicable rates.

The Board of Directors of the Company in their meeting held on April 25, 2024 recommended a final dividend of ' 3.00 per equity share for the financial year ended March 31, 2024. The payment is subject to the approval of shareholders in the AGM of the Company. If approved, would result in a net cash outflow of approximately ' 16.05.

ESI DISCLOSURE PURSUANT TO EMPLOYEE BENEFITS

A. Defined contribution plans:

Amount of' 4.30 (March 31, 2023: ' 3.98) is recognised as expenses and included in note no. 26 "Employee benefit expense"

B. Defined Benefit Plans

The Company has a defined benefit gratuity plan (funded) for its employees. The Company’s defined benefit gratuity plan is a final salary plan for its employees, which requires contributions to be made to a separately administered fund. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member’s length of service and salary at retirement age. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn) for each completed year of service as per the provisions of the Payment of Gratuity Act, 1972.

KE1 SHARE BASED ARRANGEMENTS Share based payment arrangement 2014

On February 6, 2014, the Board of Directors approved the Equity Settled ESOP Scheme 2014 for issue of stock options to the employees of the Company. According to the ESOP 2014, the employee selected by the Board of Directors from time to time will be entitled for scheme options, subject to satisfaction of the prescribed vesting conditions, viz., continued employment and performance parameters of employee. The contractual life (comprising the vesting period and the exercise period) of options and the other relevant terms of the grant are as below:

For share options exercised during the reporting period, the weighted average share price at the date of exercise, or if options were exercised on a regular basis throughout the reporting period, the entity may instead disclose the weighted average share price during the reporting period.

The weighted average share price at the date of exercise of these options, as at March 31,2024 was ' 390.71 (March 31,2023: ' 198.91)

Manner in which the fair value of the stock option granted during the period was determined:

There are no grants in financials ended March 31,2024 and March 31,2023 for share based payment arrangement 2014 Share based payment arrangement 2021

On March 10, 2021, the Board of Directors approved the Equity Settled ESOP Scheme 2021 for issue of stock options to the employees of the Company. According to the ESOP 2021, the employee selected by the Board of Directors from time to time will be entitled for scheme options, subject to satisfaction of the prescribed vesting conditions, viz., continued employment and performance parameters of employee. The contractual life (comprising the vesting period and the exercise period) of options and the other relevant terms of the grant are as below:

For share options exercised during the reporting period, the weighted average share price at the date of exercise, or if options were exercised on a regular basis throughout the reporting period, the entity may instead disclose the weighted average share price during the reporting period.

The weighted average share price at the date of exercise of these options, as at March 31,2024 was ' 404.42 (March 31,2023: ' 142.16)

Manner in which the fair value of the stock option granted during the period was determined:

The weighted average fair value of stock options granted during the year was ' 152.98 (March 31,2023: ' 78.03). The Black and Scholes valuation model has been used for computing the weighted average fair value considering the following inputs;

EEH COMMITMENTS AND CONTINGENCIES a. Operating lease - Company as a lessee

There are various office premises and warehouse which have been taken by the Company on lease. As per the lease agreements these are cancellable on 60- 90 days notice. Further, there are no restrictions imposed by lease agreements and there are no subleases. The Company has elected not to apply the requirements of Ind AS 116 to the short-term leases and, the lease payments associated with these leases are expensed as per the terms of lease agreement.

Company as a lessor

The Company has entered into operating leases for its investment properties (refer note 6) . These leases have terms ranging from eleven months to five years. Some of these leases include an annual escalation clause on rental prices based on prevailing market conditions.

During the year ended 31 March 2024'4.99 (31 March 2023: ' 3.58) was recognised in profit and loss in relation to rental income from the investment properties. (refer note 24)

i) There are numerous interpretative issues relating to the Supreme Court (SC) judgement on PF dated February 28, 2019. As a matter of caution, the Company has made a provision on a prospective basis from the date of the SC order. The Company will update its provision, on receiving further clarity on the subject.

ii) Direct tax

The claims against the Company primarily represent demands arising on completion of assessment proceedings under the Income Tax Act, 1961. These claims are majorly on account of disallowance of expenses pertaining to exempt income as per section 14A read with rule 8D of the Income Tax Act, 1961.

These matters are pending before various Income Tax Authorities and the Management including its tax advisors expect that its position will likely be upheld on ultimate resolution, and will not have a material effect on the Company’s financial position and results of operations.

iii) Indirect tax

The claim against the Company represents a demand arising on account of mismatch of ITC under the Goods and Services Act, 2017. This matter is pending before Assistant Commissioner CGST and the Management including its tax advisors expect that its position will likely be upheld on ultimate resolution, and will not have a material effect on the Company’s financial position and results of operations.

e. Other litigations

An ex-distributor had filed First Information Report (FIR) in May, 2016 at Uttarpara Police Station, Hooghly District, West Bengal against certain directors of the Company, their wives and other associates alleging embezzlement of his investment and misappropriation of shares. The police had filed the charge sheet. The Company, its directors and others have filed Quashing Petitions before the Hon’ble High Court, Calcutta and obtained stay of trial court proceedings from time to time. The Company also believes that the police had neither conducted the investigation in proper and orderly manner in this matter nor has considered the materials and records placed before it by the Company including the statements of witnesses and thus Company have strong and sufficient arguments on facts and on point of law.

40 (b). Managerial remuneration

During the year ended March 31, 2024, due to inadequacy of profits earned by the Company, the remuneration paid to the Managing Director and Joint Managing Director of the Company exceeds the limits prescribed under Section 197 of the Companies Act, 2013 read with Schedule V to the Act, by ' 0.24. Further, the remuneration paid exceeds the limit prescribed under regulation 17(6)(e) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, by ' 1.72. The Company is in the process of placing this matter before the shareholders for seeking the requisite approvals at the forthcoming Annual General Meeting.

40 (c). During the year employee stock option were granted to key managerial personnel. The expenses on account of above share base payment recorded through the year ended March 31,2024 amounts to ' 2.21. (March 31,2023: ' Nil)

Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. For the year ended March 31,2024, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (March 31, 2023: ' Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

(a). Segment

The Company is engaged in providing security software solutions. The Chief Operating Decision Maker (CODM) reviews the information pertaining to revenue of each of the target customer group (segments) as mentioned below. However, based on similarity of activities/products, risk and reward structure, organisation structure and internal reporting systems, the Company has structured its operations into one operating segment viz. cyber security platform and as such there is no separate reportable operating segment as defined by Ind AS 108 "Operating segments". For management purposes, the Company reports the details of operating segments based on the target customer groups as under:

- Consumer

- Enterprise and Government

In accordance with paragraph 4 of Ind AS 108 'Operating segments’, the Company has disclosed segment information only on the basis of the consolidated financial statement.

The management assessed that the fair value of cash and cash equivalents, trade receivables, trade payables and other current financial assets and liabilities approximate their carrying amounts largely due to the short term maturities of these instruments. The amortised cost using effective interest rate (EIR) of non-current financial assets consisting of security and term deposits are not significantly different from the carrying amount.

Financial assets that are neither past due nor impaired include cash and cash equivalents, security deposits, term deposits, and other financial assets.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

151 FAIR VALUE HIERARCHY

The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included with in Level 1 that the observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data unobservable inputs.

The following table presents the fair value measurement hierarchy of financial assets and liabilities measured at fair value on a recurring basis as at March 31,2024 and March 31,2023.

There have been no transfers among Level 1, Level 2 and Level 3 during the year.

The following methods and assumptions were used to estimate the fair values:

(i) The fair value of the quoted mutual fund are based on the price quotations at reporting date. The fair value of unquoted instruments, related parties and other financial liabilities as well as other non-current financial liabilities is estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.

(ii) The fair values of the unquoted equity and perference shares have been estimated using a discounted cash flow (DCF) model. The valuation requires management to make certain assumptions about the model inputs, including forecast cash flows, discount rate, credit risk and volatility. The probabilities of the various estimates within the range can be reasonably assessed and are used in management’s estimate of fair value for these unquoted equity and perference investments.

*The above sensitivity analysis for fair value calculation has been derived on the entire Ray Pte. Limited and L7 Defense Limited capital amount of the companies.

(a) Considering the financial position, liquidity condition, market conditions and geopolitical scenario in Israel, management based on its assessment has recorded a fair value loss in other comprehensive income (FVOCI) amounting to ' 13.45. Accordingly, the carrying value of investment made in L7 Defense Limited has been considered as ' Nil during the year ended March 31,2024.

IE1 FINANCIAL INSTRUMENTS RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s principal financial liabilities comprise trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations and to support its operations. The Company’s principal financial assets include investments, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company does not have borrowings and derivative transactions.

The Company is exposed to market risk, credit risk and liquidity risk. The Board of Directors review and agree policies for managing each of these risks, which are summarised below:

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include deposits, investments, receivables, payables, advances and other financial instruments. From the perspective of the Company, the impact of the foreign currency risk, material price risk, interest rate risk and other price risk is not significant.

The Company has certain financial assets and financial liabilities in foreign currencies which expose the Company to foreign currency risks. The foreign currency exposure of the Company has been disclosed in Note 39 to the Standalone financial statements.

(b) Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.

Trade receivables

Customer credit risk is managed by the Company's established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company follows simplified approach for recognition of impairment loss allowance on Trade receivable.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance with the Company's policy. Investments of surplus funds are made with banks in terms of fixed deposits and investment in designated mutual funds. Investment decision in mutual fund is taken with the assistance from appointed agent. Credit risk on cash deposits is limited as the Company generally invest in deposits with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies. Other investments primarily include investment in liquid mutual fund units of reputed companies where historically, the Company has not incurred any loss due to credit risk.

(c) Liquidity risk

The Company had no outstanding bank borrowings as of March 31,2024 and March 31,2023. The working capital as at March 31,2024 was ' 289.60 (March 31,2023: ' 250.72) including cash and cash equivalents.

As at March 31,2024 and March 31,2023, the outstanding employee obligations were ' 15.57 and ' 1.17 respectively which have been substantially funded. Accordingly, no significant liquidity risk is perceived.

Financial risk management Capital management

For the purpose of the Company’s capital management, capital includes issued equity share capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder’s value. The Company manages its capital and makes adjustments to it in light of the changes in economic and market conditions. The total equity as at March 31,2024 is ' 436.90 (March 31, 2023: ' 419.72).

The Company does not have any debt as on March 31,2024 & March 31,2023 and hence no debt-equity ratio is computed.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2024 and March 31,2023.

jl AUDIT TRAIL

The Company has used an accounting software, for maintaining its books of account which has a feature of recording audit trail (edit log) facility, except that no audit trail feature was enabled at the database level during the year ended March 31, 2024, in respect of Accounting Software to log any changes at Database level. Further, the audit trail facility has been operated throughout the year for all relevant transactions recorded in the accounting software, except at the database level; wherein the audit trail facility was enabled with effect from April 19, 2024.

However, for the year ended March 31, 2024, as part of IT control environment of the Company, the privileged access to the ERP database was restricted to limited set of users who necessarily require this access for maintenance and administration of the database. Further, no instance of audit trail feature being tampered with was noted in respect of the accounting software. The Company has used an accounting software which is operated by a third-party software service provider, for maintaining its payroll records. In the absence of independent service auditors report. The Company is unable to state that the audit trail feature was enabled in the said software and operated throughout the year for all relevant transactions recorded in the software.

H6I TITLE DEEDS OF IMMOVABLE PROPERTIES NOT HELD IN NAME OF THE COMPANY

The title deeds of all the immovable properties are held in the name of the Company.

Ý LOANS OR ADVANCES IN THE NATURE OF LOANS ARE GRANTED TO PROMOTERS, DIRECTORS, KMPS AND THE RELATED PARTIES (AS DEFINED UNDER COMPANIES ACT, 2013), EITHER SEVERALLY OR JOINTLY WITH ANY OTHER PERSON, THAT ARE:

The Company has not granted any loans or advances in the nature of loans to promoters, directors and KMPs, either severally or jointly with any other person.

PH DETAILS OF BENAMI PROPERTY HELD

The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

E9| WILFUL DEFAULTER

The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

I RELATIONSHIP WITH STRUCK OFF COMPANIES UNDER SECTION 248 OF THE COMPANIES ACT, 2013 OR SECTION 560 OF COMPANIES ACT, 1956,

The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956,

FTB REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES

The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period. F21 COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

E3I COMPLIANCE WITH APPROVED SCHEME(S) OF ARRANGEMENTS

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

F4B UTILISATION OF BORROWED FUNDS AND SHARE PREMIUM:

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).

The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

E5I UNDISCLOSED INCOME

The Company does not have any undisclosed income which is not recorded in the books of account that has been surrendered or disclosed as income during the year (and previous year) in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

FBI DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY

The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

FT! THE CODE ON SOCIAL SECURITY 2020

The Code on Social Security 2020 ('the Code’) relating to employee benefits, during the employment and post-employment, has received Presidential assent on September 28, 2020. The Code has been published in the Gazette of India. Further, the Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. However, the effective date from which the changes are applicable is yet to be notified and rules for quantifying the financial impact are also not yet issued. The Company will assess the impact of the Code and will give appropriate impact in the Stanalone financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published. Based on a preliminary assessment, the entity believes the impact of the change will not be significant.

Previous year figures have been regrouped/ reclassified to confirm presentation as per Ind AS and as required by Schedule III of the Act.

The accompanying notes form an integral part of the standalone financial statements.