q) Provisions, contingent liabilities and contingent asset
Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of
a past event and it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate can be made of the amount of the obligation.

Provisions are discounted, if the effect of the time value of money is material, using pre-tax rates that
reflects the risks specific to the liability. When discounting is used, an increase in the provisions due to the
passage of time is recognised as finance cost. These provisions are reviewed at each Balance Sheet date
and adjusted to reflect the current best estimates.

Necessary provision for doubtful debts, claims, etc., are made if realisation of money is doubtful in the
judgement of the management.

Contingent liability

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the
company or a present obligation that is not recognized because it is not probable that an outflow of resources
will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there
is a liability that cannot be recognized because it cannot be measured reliably. Contingent liabilities are
disclosed separately.

Show cause notices issued by various Government authorities are considered for evaluation of contingent
liabilities only when converted into demand.

Contingent assets

Where an inflow of economic benefits is probable, the Company discloses a brief description of the nature
of the contingent assets at the end of the reporting period, and, where practicable, an estimate of their
financial effect. Contingent assets are disclosed but not recognised in the financial statements.

r) Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances
with original maturity of less than 3 months, highly liquid investments that are readily convertible into cash,
which are subject to insignificant risk of changes in value.

s) Cash Flow Statement

Cash flows are presented using indirect method, whereby profit / (loss) before tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments.

Bank borrowings are generally considered to be financing activities. However, where bank overdrafts which
are repayable on demand form an integral part of an entity's cash management, bank overdrafts are included
as a component of cash and cash equivalents for the purpose of Cash flow statement.

t) Earnings per share

"The basic earnings per share are computed by dividing the net profit for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period. Diluted EPS
is computed by dividing the net profit after tax by the weighted average number of equity shares considered
for deriving basic EPS and also weighted average number of equity shares that could have been issued
upon conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted
as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined
independently for each period presented. The number of equity shares and potentially dilutive equity shares
are adjusted for bonus shares, as appropriate"

28 Operating Segments

The Business of the Company falls under a single primary segment 'i e IT/ITES in accordance with Ind AS
108 'Operating Segments' and hence reporting on various segments do not arise.

29 Impairment of Assets

The company assessed its fixed Assets for impairment as at 31st March 2025 and concluded that there has
been no significant impaired fixed asset that needs to be recognized in the books of account.

30 Operating lease arrangements (as lessor)

The Company has given certain properties on operating lease arrangements. The leases are cancellable at
the option of either party to lease and may be renewed based on mutual agreement of the parties. The total
lease income recognised on such contracts for the year is Nil (Previous year Rs. Nil).

31 Confirmation of balances in respect of Trade Receivables and Trade Payables has not been obtained.

32 Foreign Currency Convertible Bonds

The Foreign Currency Convertible Bonds carry coupon rate of 2.50 %, payable half yearly. In case of default
of payment of interest the coupon rate stands increased to 4.80 %.

During March 2011, the convertible foreign currency bonds had become due for conversion to Equity Shares
and none of the bond holders have exercised their option for conversion. Correspondingly, the amounts had
become due for payment as on the closure of such exercise and is yet to be redeemed as on the date of the
balance sheet. These funds fall within the meaning of 'deposit' as defined under section 73 of the Companies
Act 2013. The Company has not complied with the directives issued by the Reserve Bank of India and the
provisions of section 73 to 76 of the Companies Act, 2013 and the rules framed thereunder

On a petition filed by the Foreign currency convertible bond holders, The Hon’ble High Court of Karnataka
issued a winding up order against the company. The Company had received an intimation from the “Ministry
of Corporate affairs” during August 2019, stating that a winding up order is issued against the Company by
the Hon’ble High Court of Karnataka vide order dated 20th November 2017. Further, based on the plea
submited by the Company the Hon’ble High Court of Karnataka had granted a stay during June 2022
directing the official liquidator not to precipitate the process of the winding up order and the matter is
extended till the next date of hearing as the petitioner and the company are exploring the possibility of
amicable settlement. Now, the Hon’ble High Court of Karnataka has withdrawn the winding up order on
behalf of the Foreign Currency Bond Holders.

34 Financial Instruments
Capital management

The Company manages its capital to ensure that entities in the Company will be able to continue as going
concern, while maximising the return to stakeholders through the optimisation of the debt and equity balance.

The Company determines the amount of capital required on the basis of annual operating plans and long¬
term product and other strategic investment plans. The funding requirements are met through equity, long¬
term borrowings and other short-term borrowings.

Financial risk management objectives

The treasury function provides services to the business, co-ordinates access to domestic and international
financial markets, monitors and manages the financial risks relating to the operations through internal risk
reports which analyse 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.

The Company seeks to minimise the effects of these risks by using natural hedging financial instruments and
forward contracts to hedge risk exposures. The use of financial derivatives is governed by the Company’s policies
approved by the board of directors, which provide written principles on foreign exchange risk, the use of financial
derivatives, and the investment of excess liquidity. The Company does not enter into or trade financial instruments,
including derivative financial instruments, for speculative purposes.

Market risk

Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows that may result
from a change in the price of a financial instrument. The Company’s activities expose it primarily to the financial
risks of changes in foreign currency exchange rates and interest rates. The Company actively manages its
currency and interest rate exposures through its finance division and uses derivative instruments such as forward
contracts and currency swaps, wherever required, to mitigate the risks from such exposures. The use of derivative
instruments is subject to limits and regular monitoring by appropriate levels of management.

Foreign currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange
rate fluctuations arise. The Company actively manages its currency rate exposures through a centralised treasury
division and uses natural hedging principles to mitigate the risks from such exposures. The use of derivative
instruments, if any, is subject to limits and regular monitoring by appropriate levels of management.

Foreign currency sensitivity analysis

Movement in the functional currencies of the various operations of the Company against major foreign currencies
may impact the Company’s revenues from its operations. Any weakening of the functional currency may impact
the Company’s cost of borrowings. The foreign exchange rate sensitivity is calculated for each currency by
aggregation of the net foreign exchange rate exposure of a currency and a simultaneous parallel foreign exchange
rates shift in the foreign exchange rates of each currency by 2%, which represents management’s assessment
of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding
foreign currency denominated monetary items and adjusts their translation at the period end for a 2% change in
foreign currency rates.

In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk
because the exposure at the end of the reporting period does not reflect the exposure during the year.

Interest rate risk management

The Company is exposed to interest rate risk because it borrow funds at both fixed and floating interest rates.
The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings
and by the use of interest rate swap contracts. Hedging activities are evaluated regularly to align with interest
rate views and defined risk appetite, ensuring the most cost-effective hedging strategies are applied. Further, in
appropriate cases, the Company also effects changes in the borrowing arrangements to convert floating interest
rates to fixed interest rates.

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 of the 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 25 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.

Credit risk management

Credit risk arises when a customer or counterparty does not meet its obligations under a customer contract or
financial instrument, leading to a financial loss. The Company is exposed to credit risk from its operating activities
primarily trade receivables and from its financing/ investing activities, including deposits with banks, mutual fund
investments, investments in debt securities and foreign exchange transactions. The Company has no significant
concentration of credit risk with any counterparty.

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure is
the total of the carrying amount of balances with banks, short term deposits with banks, trade receivables,
margin money and other financial assets excluding equity investments.

(a) Trade Receivables

Trade receivables are consisting of a large number of customers. The Company has credit evaluation policy for
each customer and, based on the evaluation, credit limit of each customer is defined. Wherever the Company
assesses the credit risk as high, the exposure is backed by either bank, guarantee/letter of credit or security
deposits.

The Company does not have higher concentration of credit risks to a single customer. As per simplified approach,
the Company makes provision of expected credit losses on trade receivables using a provision matrix to mitigate
the risk of default in payments and makes appropriate provision at each reporting date wherever outstanding is
for longer period and involves higher risk.

(b) Investments, Derivative Instruments, Cash and Cash Equivalents and Bank deposits

Credit Risk on cash and cash equivalents, deposits with the banks/financial institutions is generally low as the
said deposits have been made with the banks/financial institutions, who have been assigned high credit rating by
international and domestic rating agencies.

Credit Risk on Derivative Instruments is generally low as the Company enters into the Derivative Contracts with
the reputed Banks.

Investments of surplus funds are made only with approved Financial Institutions/ Counterparty. The Company
has standard operating procedures and investment policy for deployment of surplus liquidity, which allows
investment in debt securities and mutual fund schemes of debt and arbitrage categories and restricts the exposure
in equity markets.

Offsetting related disclosures

Offsetting of cash and cash equivalents to borrowings as per the consortium agreement is available only to the
bank in the event of a default. Company does not have the right to offset in case of the counter party’s bankruptcy,
therefore, these disclosures are not required.

36 Retirement benefit plans
Defined contribution plans

In accordance with Indian law, eligible employees of the Company are entitled to receive benefits in respect
of provident fund and super annuation fund, a defined contribution plan, in which both employees and the
Company make monthly contributions at a specified percentage of the covered employees’ salary. The
contributions, as specified under the law, are made to the Provident Fund.

Defined benefit plans

(a) Gratuity

Gratuity is payable as per Payment of Gratuity Act, 1972. In terms of the same, gratuity is computed by
multiplying last drawn salary (basic salary including dearness Allowance if any) by completed years of
continuous service with part thereof in excess of six months and again by 15/26. The Act provides for a
vesting period of 5 years for withdrawal and retirement and a monetary ceiling on gratuity payable to an
employee on separation, as may be prescribed under the Payment of Gratuity Act, 1972, from time to time.
However, in cases where an enterprise has more favourable terms in this regard the same has been adopted.

Sensitivity analysis

In view of the fact that the Company for preparing the sensitivity analysis considers the present value of the
defined benefit obligation which has been calculated using the projected unit credit method at the end of the
reporting period, which is the same as that applied in calculating the defined benefit obligation liability
recognised in the balance sheet.

(b) Compensated absences

The leave scheme is a final salary defined benefit plan, that provides for a lumpsum payment at the time of
separation; based on scheme rules the benefits are calculated on the basis of last drawn salary and the
leave count at the time of separation and paid as lumpsum.

The expected cost of accumulating compensated absences is determined by actuarial valuation performed
by an independent actuary at each balance sheet date using projected unit credit method on the additional
amount expected to be paid / availed as a result of the unused entitlement that has accumulated at the
balance sheet date.

Explanation for variances exceeding 25%:

(a) Current Ratio reduced on account of increase in current liabilities which increased by increase in Provision
for doubtful debts.

(b) Trade payable turnover ratio increased on account of increase in Trade Payables during the year ended
March 31,2025.

The significant accounting policies and the accompanying notes form an integral part of the financial statements

For and on behalf of the Board As per our report of even date attached

For M/s. Chaturvedi Sohan & Co

Asif Khader Mueed Khader Chartered Accountants

Managing Director Director Firm Registration No.118424W

DIN : 00104893 DIN : 00106674

Vivekanand Chaturvedi

Apeksha Nagori Manjunath.H Partner

Company Secretary CFO Membership No.106403

Membership No. A21952 UDIN : 25106403BMIDMX9840

Date: May 30th, 2025
Place: Bengaluru