A provision is recognised when the Company has a present obligation as a result of past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions (excluding
retirement benefits and compensated absences) are not discounted to its present value unless the effect of time value of money is
material and are determined based on best estimate required to settle the obligation at the Balance sheet date. These are reviewed at
each Balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities and Assets are not recognised in the
financial statements.
xx) Foreign Currency Transactions :
(i) Functional and presentation currency
Items included in the financial statements of the entity are measured using the currency of the primary economic environment in
which the entity operates ('the functional currency'). The financial statements are presented in Indian rupee ( ? ), which is entity's
functional and presentation currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and
liabilities denominated in foreign currencies at year end exchange rates are generally recognised in statement of profit or loss. Non
monetary assets and liabilities that are measured in terms of historical cost in foreign currencies are not retranslated. Non-monetary
items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value
was determined.
xxi) Income taxes:
(i) Current income taxes
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the
reporting date in the countries where the Group operates and generates taxable income.
Current income tax relating to items recognised outside statement of profit or loss is recognised outside statement of profit or loss
(either in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction
either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in
which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. Advance taxes and
provisions for current income taxes are presented in the Balance sheet after off-setting advance tax paid and income tax provision
arising in the same tax jurisdiction and where the relevant tax paying units intends to settle the asset and liability on a net basis.
(ii) Deferred income taxes
Deferred income tax is recognised using the Balance sheet approach. Deferred income tax assets and liabilities are recognised for
deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount, except
when the deferred income tax arises from the initial recognition of an asset or liability in a transaction that is not a business
combination and affects neither accounting nor taxable profit or loss at the time of the transaction.
Deferred income tax asset are recognised to the extent that it is probable that taxable profit will be available against which the
deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be Utilised.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.
Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years
in which the temporary differences are expected to be received or settled.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the relevant
entity intends to settle its current tax assets and liabilities on a net basis.
Deferred tax assets include Minimum Alternate Tax (MAT) paid in accordance with the tax laws in India, which is likely to give future
economic benefits in the form of availability of set off against future economic tax liability. Accordingly, MAT is recognised as deferred
tax asset in the Balance sheet when the asset can be measured reliably and it is probable that the future economic benefit associated
with the asset willbe realised.
The Group recognises interest levied and penalties related to income tax assessments in finance costs.
Leases
The Company as a lessee
The Company's lease asset classes consist of leases for land,buildings and computers. The Company assesses whether a contract
contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of
an identified asset, the Company assesses whether :
(i) the contract involves the use of an identified asset
(ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and
(iii) the Company has the right to direct the use of the asset. At the date of commencement of the lease, the Company recognizes a
right-of-use asset ("ROU") and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a
term of twelve months or less (short-term leases) and low value leases. For these short-term and low value leases, the Company
recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.
As a lessee, the Company determines the lease term as the non-cancellable period of a lease adjusted with any option to extend or
terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term
on a lease-by-lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract
will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements
undertaken over the lease term, costs relating to the termination of the lease and the importance of the underlying asset to Infosys's
operations taking into account the location of the underlying asset and the availability of suitable alternatives. The lease term in future
periods is reassessed to ensure that the lease term reflects the current economic circumstances. Certain lease arrangements include
the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes these options
when it is reasonably certain that they will be exercised.
The ROU assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives.
They are subsequently measured at cost less accumulated depreciation and impairment losses.
ROU assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of
the underlying asset. Right-of-use-assets are evaluated for recoverability whenever events or changes in circumstances indicate that
their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the
fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash
flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash
Generating Unit (CGU) to which the asset belongs. The lease liability is initially measured at amortized cost at the present value of the
future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable,
using the incremental borrowing rates in the country of domicile of these leases. Lease liabilities are remeasured with a corresponding
adjustment to the related right-of-use asset if the Company changes its assessment to whether it will exercise an extension or a
termination option.
Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as
financing cash flows. The Company as a lessor Leases for which the Company is a lessor is classified as a finance or operating lease.
Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as
a finance lease. All other leases are classified as operating leases. When the Company is an intermediate lessor, it accounts for its
interests in the head lease and the sublease separately. The sublease is classified as a finance or operating lease by reference to the
right-of-use asset arising from the head lease. For operating leases, rental income is recognized on a straight-line basis over the term
of the relevant lease.
xxii) Recent accounting pronouncements:
The Ministry of Corporate Affairs (MCA) notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian
Accounting Standards) Amendment Rules, 2023, as below :
Ind AS 1, Presentation of Financial Statements - This amendment requires the entities to disclose their material accounting policies
rather than their significant accounting policies. The effective date for adoption of this amendment is annual periods beginning on or
after April 1, 2023. The Company has evaluated the amendment and the impact of the amendment is insignificant in the standalone
financial statements. Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors - This amendment has introduced a
definition of 'accounting estimates' and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies
from changes in accounting estimates. The effective date for adoption
of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and there is no
impact on its Standalone financial statements. Ind AS 12, Income Taxes - This amendment has narrowed the scope of the initial
recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The
effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the
amendment and there is no impact on its Standalone financial statements.
Nature and purpose of reserves
(i) Securities premium
Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act.
(ii) Retained earnings
The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the balance in this reserve and also considering the requirements of
the Companies Act, 2013.
(iii) General Reserve
General reserve is referred to as the reserve fund that is created by keeping aside a part of profit earned by the business during the course of an accounting period for fulfilling various
business needs like meeting contingencies, offsetting future losses, enhancing the working capital, paying dividends to the shareholders, etc.
(iv) Other Comprehensive income
a) The fair value change of the equity instruments measured at fair value through other comprehensive income is recognised in equity instruments through Other Comprehensive Income
b) The remeasurement gain/(loss) on net defined benefit plans is recognised in Other Comprehensive Income net of tax.
Note 35 The company has during the Year provided depreciation on fixed assets used during the year as per Straight Line Method on the basis of useful life of
assets and residual value as specified in schedule II of the Companies Act, 2013 except on few assets, where different life has been estimated by the
management where assets are for specific project.Depreciation on additions or sale/discard of asset is being provided on pro-rata basis from the date on
which such asset is ready to be put to use to date of sale/discard. (Refer note 1 - point VI)
In order to make provision for Gratuity payable to employees, company has obtained Acturial Valuation report from M/s.Kapadia Global Associates ,
'Actuaries'. On the basis of valuation report of Actuaries, company has made provision for Gratuity Payable in accounts. However, no investments made
to meet liabilty in future. Company charge the addition in liability of Gratuity payable to Statement of Profit & Loss.
The following table sets out unfunded status of the gratuity payable and the amounts recognised in the Company's financial statements for the period
ended March 31,2025.
Note 43 Ind AS 116 Leases
The Accounting Standard Board has issued an exposure draft on Ind AS 116, Leases, with a proposed effective date of 1st April, 2019, subject to
notification by Ministry of Corporate Affairs and Ind AS 116 supersedes Ind AS 17 'Leases'. Ind AS 116, " Leases" will be applicable on the companies which
are preparing their financial statements as per Ind AS.
Ind AS 116 introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12
months, unless the underlying asset is of low value. A lessee is required to recognise a right-of-use asset representing its right to use the underlying
leased asset and a lease liability representing its obligation to make lease payments.
3 Financial risk management objectives
The Company's Corporate finance department provides services to business, co-ordinates access to domestic and international financial markets, monitors and manages the
financial risks relating to the operations of the Company through internal risk reports which analyse the exposures by degree and magnitude of risks. These risks include
market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.
4 Market risk
The Company's activities expose it primarily to the financial risks of changes in interest rates due to variable interest loans. . The Company does not enter into derivative
contracts to manage risks related to anticipated sales and purchases.
5 Foreign currency risk management
The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are
managed within approved policy parameters utilizing forward foreign exchange contracts and currency options taken at the time of initiation of the booking by the
management. Such decision is taken after considering the factors such as upside potential, cost of structure and the downside risks etc. Quarterly reports are submitted to
Management Committee on the covered and open positions and MTM valuation.
The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows.
There are no such transactions during the reporting period
5.1 Foreign currency sensitivity analysis
The Company is not materially exposed to USD and EURO currency or any other foreign currencies.
6 Interest rate risk management
The Company is exposed to interest rate risk because funds are borrowed at both fixed and floating interest rates. Interest rate risk is measured by using the cash flow
sensitivity for changes in variable interest rate. The Company has exposure to interest rate risk, arising principally on changes in interest rates. The Company uses a mix of
interest rate sensitive financial instruments to manage the liquidity and fund requirements for its day to day operations like long term and short term loans. The risk is
managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings. Hedging activities are evaluated regularly to align with interest
rate views and defined risk appetite, ensuring the most cost-effective hedging strategies are applied.
The table in 6.1 provides a break-up of the Company's fixed and floating rate borrowings:
6.1 Interest rate sensitivity analysis
The sensitivity analyses below have been determined based on the exposure to interest rates for both derivatives and non-derivative instruments at the end ofthe reporting
period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole
year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management's assessment of
the reasonably possible change in interest rates.
The following table provides a break-up of the Company's fixed and floating rate borrowings and interest rate sensitivity analysis.
7 Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses of both, the
direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks. The Company has adopted a policy of only dealing with creditworthy
counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company uses publicly available
financial information and its own trading records to rate its major customers. The Company's exposure and the credit ratings of its counterparties are continuously
monitored and the aggregate value of transactions concluded is spread amongst approved counterparties.
Trade receivables consist of a large number of customers, spread across diverse geographical areas. Ongoing credit evaluation is performed on the financial condition of
accounts receivable.
The Company does not have significant credit risk exposure to any single counterparty. Concentration of credit risk related to the above mentioned company did not exceed
10% of gross monetary assets at any time during the year. Concentration of credit risk to any other counterparty did not exceed 10% of gross monetary assets at any time
during the year.
7.1 Collateral held as security and other credit enhancements
The Company does not hold any collateral or other credit enhancements to cover its credit risk associated with its financial assets.
8 Liquidity risk management
Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage of liquid funds in a situation where business conditions
unexpectedly deteriorate and requiring financing. Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an
appropriate liquidity risk management framework for the management of the Company's short, medium and long-term funding and liquidity management requirements.
The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual
cash flows, and by matching the maturity profiles of financial assets and liabilities.
Disclosure as per Ind AS 113 - Fair Value Measurements
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in an orderly transaction in the principal (or most
advantageous) market at measurement date under the current market condition regardless of whether that price is directly observable or estimated using other valuation
techniques.
The Company has established the following fair value hierarchy that categorizes the values into 3 levels. The inputs to valuation techniques used to measure fair value of
financial instruments are:
Level 1- Level 1 hierarchy includes financial instruments measured using quoted prices. This Includes listed equity instruments that have quoted price. Listed and actively
traded equity instruments are stated at the last quoted closing price on the National Stock Exchange of India Limited (NSE).
Level 2- The fair value of financial instruments that are not traded in active market is determined using valuation techniques which maximize the use of observable market
data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3- If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. The fair value of the financial assets and
liabilities included in Level 3 is determined in accordance with generally accepted pricing models based on discounted cash flow analysis using prices from observable current
market transactions and dealer quotes of similar instruments.
Valuation Techniques used to determine fair values:
A) Specific valuation technique is used to determine the fair value of the financial instruments which include:
i) For financial instruments other than (ii):- In accordance with generally accepted pricing models based on Net Asset Value analysis using prices from observable market
transactions and dealer quotes of similar instruments.
ii) For financial liabilities (domestic currency loans) :- appropriate market borrowing rate of the entity as of each balance sheet date used.
The following tables detail the Company's remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods and its non-derivative
financial assets. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be
required to pay.
Note 50 The company is not declared as a wilful defaulter by any bank or financial institution or other lender.
Note 51 During the company has let out the Plant and machinary, Furnitures and other equipments to its Subsidiary Vision Autotests Private Limited on lease and
earned revenue of Rs. 82,50,000/-
Note 52 The company is not having any relationship with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act,
1956:
Note 53 There has not been any delay in registering the charges or satisfaction with Registrar of Companies beyond the statutory period.
Note 54 The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of
Layers) Rules, 2017
Note 55 The company has not undergone through any Scheme of Arrangements that has been approved by the Competent Authority in terms of sections 230 to
237 of the Companies Act, 2013
Note 56 There are no transactions which are not recorded in the books of accounts and that has been surrendered or disclosed as income during the 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)
Note 57 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
Note 58 Balances of Secured Loans, unsecured loans, Debtors, Creditors for goods, creditors for expenses, loans and advances and advance from customers are
subject to confirmation.
Note 59 The company has credited Rs.5,245.59 Lakhs (previous year Rs.2,658.21 Lakhs) to its revenue in profit and loss statement as Accrued revenue, whose
services are already rendered but invoices are made after the balance sheet date but before the reporting date. Such treatment is given as per the various
agreement/contracts with client which requires the company to raise invoice in the following month of completion of services. Hence, the company has
not made provision for GST liability over the same as on balance sheet date, but company has accounted for the GST liability on such revenue as and
when the invoices are generated before the reporting date.
Note 60 The Company (STTL India) used SAP B1 for maintaining its transactions for the year, which have a feature of recording audit trail (edit log) facility. The
audit trail facility has been operated throughout the year and it was implemented for all the branches. Further, the audit trail feature has not been
tampered with in accouting software. Other Indian Subsidiary Companies i.e Vision Autotest & Silvertouch Autotech were maintaining accounting in Tally
ERP 9, in which Audit Trail Feature is enabled throughout the year.
Note 61 Figures are shown in denomination of lakhs
For and on behalf of Board of Directors
Signatories to Note 1 to 61
For AMBALAL PATEL & CO LLP
CHARTERED ACCOUNTANTS
Firm Reg. No. : FRN: 100305W/W101093 Vipul Thakkar Jignesh Patel
Chairman & Managing Director Director
DIN - 00169558 DIN - 00170562
CA Nilay R Bhavsar
Designated Partner
M.No. 137932
UDIN: 25137932BMIIVU6641 Kashish Purohit Paulin shah
Company Secretary CFO
Ahmedabad ACS-72990 PAN - ALLPS0814L
08-05-2025
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