2. SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of preparation and presentation of Standalone Financials
Statements

a. These financial statements are prepared in accordance with Indian Accounting Standards
(Ind-AS) and comply in all material respects with the Ind-AS and other applicable provisions
of the Companies Act, 2013 ("the Companies Act"). The Ind-AS are notified under Section 133
of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as
amended from time to time.

b. The Standalone Financials Statements have been prepared on a historical cost convention
and on an accrual basis, except for the following material items that have been measured at
fair value as required by relevant Ind AS:

c. The standalone financial statements are presented in Indian Rupee ('), which is also the
functional currency of the Company. All amounts have been rounded-off to the nearest
thousand, unless otherwise indicated.

d. Use of estimates and judgments

In preparing these Standalone Financials Statements, management has made judgments,
estimates and assumptions that affect the application of accounting policies and the
reported amounts of assets, liabilities, income, expenses and disclosures of contingent
liabilities. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized prospectively.

Assumptions, judgements and estimation uncertainties

Information about assumptions, judgements and estimation uncertainties that may have a
significant risk of resulting in a material adjustment in the year ending 31 March 2025 are
made in in the following notes:

• Recognition of deferred tax assets: availability of future taxable profit against which tax
losses carried forward can be used

• Measurement of defined benefit obligations: key actuarial assumptions;

• Recognition and measurement of provisions and contingencies: key assumptions about
the likelihood and magnitude of an outflow of resources;

• Estimation of useful life of property, plant and equipment

• Estimation of current tax expense and payable;

• Impairment of Financial Assets;

• Lease classification; and,

• Lease: whether an arrangement contains a lease

e. Measurement of fair values

A number of the Company's accounting policies and disclosures require the measurement
of fair values, for both financial and non-financial assets and liabilities.

The Company has an established control framework with respect to the measurement of
fair values.

The Company regularly reviews significant unobservable inputs and valuation adjustments.

Fair values are categorized into different levels in a fair value hierarchy based on the inputs
used in the valuation techniques as follows.

Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or
liabilities.

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

Level 3: Inputs for the asset or liability that are not based on observable market data
(unobservable inputs).

When measuring the fair value of an asset or liability, the Company uses observable market
data as far as possible. If the inputs used to measure the fair value of and asset or liability
fall into different levels of the fair value hierarchy, then the fair value measurement is
categorized in its entirety in the same level of fair value hierarchy as the lowest level input
that is significant to the entire measurement.

The Company recognizes transfers between levels of the fair value hierarchy at the end of
the reporting period during which the change has occurred. Further information about the
assumptions made in measuring fair values is included in - Fair Value Measurements (Note:
39 Financial Instruments - Fair values and risk management).

f. Current versus non-current classification:

The Company presents assets and liabilities in the balance sheet based on current/non-
current classification.

An asset is treated as current when it is:

• Expected to be realized or intended to be sold or consumed in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realized within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a
liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve
months after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their
realization in cash and cash equivalents. The Company has identified twelve months as its
operating cycle.

2.2 Property, plant and equipment

i. Recognition and measurement

Items of property, plant and equipment are capitalized at cost (which includes capitalized
borrowing costs, if any) less accumulated depreciation and accumulated impairment losses,
if any.

Cost of an item of property, plant and equipment includes its purchase price, non-recoverable
duties and taxes, freight, installation charges and any directly attributable cost of bringing
the items to its working condition for its intended use and estimated costs of dismantling
and removing the item and restoring the site on which it is located.

The cost of a self-constructed item of property, plant and equipment comprises the cost
of materials and direct labor, any other costs directly attributable to bringing the item to
working condition for its intended use, and estimated costs of dismantling and removing the
item and restoring the site on which it is located.

If significant parts of an item of property, plant and equipment have different useful lives,
then they are accounted for as separate items (major components) of property, plant and
equipment.

Subsequent expenditure is capitalized only if it is probable that the future economic benefits
associated with the expenditure will flow to the Company.

Property, plant and equipment under construction are disclosed as capital work-in-progress.
Depreciation is not recorded on capital work-in-progress until construction and installation
is complete and the asset is ready for its intended use.

ii. Depreciation

Depreciation is calculated on cost of items of property, plant and equipment less their
estimated residual values over their estimated useful lives using the written down value
method except for improvements to leasehold premises where the assets are depreciated
on a straight line basis. Depreciation for assets purchased/sold during the period is
proportionately charged.

Depreciation on tangible fixed assets has been provided as per the useful life prescribed in
Schedule II to the Companies Act, 2013.

The assets' residual values and useful lives are reviewed periodically, and adjusted if
appropriate, including at each financial year end.

The estimated useful lives of items property, plant and equipment for the current and
comparative periods are as follows:

Assets with cost of acquisition less than ' 5,000 are fully depreciated in the year of acquisition.

iii. Disposal

Gains and losses on disposal are determined by comparing net sale proceeds with carrying
amount.

These are included in statement of profit and loss.

iv. Impairment

Property, plant and equipment 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.

If such assets are to be impaired, the impairment to be recognized in the Statement of Profit
and Loss is measured by the amount by which the carrying value of the assets exceeds the
estimated recoverable amount of the asset. An impairment loss is reversed in the Statement
of Profit and Loss if there has been a change in the estimates used to determine the
recoverable amount. The carrying amount of the asset is increased to its revised recoverable
amount, provided that this amount does not exceed the carrying amount that would have
been determined (net of any accumulated depreciation) had no impairment loss been
recognized for the asset in prior years.

2.3 Intangible assets

i. Recognition and measurement

Intangible assets are carried at cost less accumulated amortization and impairment losses,
if any. The cost of an intangible asset comprises its purchase price, including any non¬
recoverable duties and taxes and any directly attributable expenditure on making the asset
ready for its intended use and net of any trade discounts and rebates.

Research costs are expensed as incurred. Software product development costs are expensed
as incurred unless technical and commercial feasibility of the project is demonstrated, future
economic benefits are probable, the Company has an intention and ability to complete
and use or sell the software and the costs can be measured reliably. The costs which can
be capitalized include the cost of material, direct labour, overhead costs that are directly
attributable to preparing the asset for its intended use.

Assets under development are disclosed as Intangible assets under development.
Amortization is not recorded on assets under development until development is complete
and the asset is ready for its intended use.

ii. Amortization

The cost of the computer software capitalized as intangible asset is amortized over the
estimated useful life on a straight-line basis.

Amortization method, useful lives and residual values are reviewed at the end of each
financial year and adjusted if appropriate.

iii. Impairment

Intangible 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.

If such assets are to be impaired, the impairment to be recognized in the Statement of Profit
and Loss is measured by the amount by which the carrying value of the assets exceeds the
estimated recoverable amount of the asset. An impairment loss is reversed in the Statement
of Profit and Loss if there has been a change in the estimates used to determine the
recoverable amount. The carrying amount of the asset is increased to its revised recoverable
amount, provided that this amount does not exceed the carrying amount that would have
been determined (net of any accumulated amortization) had no impairment loss been
recognized for the asset in prior years.

2.4 Investment Property

Property that is held for long-term rental yields or for capital appreciation or both, and that
is not occupied by the Company, is classified as investment property. Investment property
is measured initially at its cost, including related transaction costs and where applicable
borrowing costs. Subsequent expenditure is capitalized to the asset's carrying amount
only when it is probable that future economic benefits associated with the expenditure will
flow to the group and the cost of the item can be measured reliably. All other repairs and
maintenance costs are expensed when incurred. When part of an investment property is
replaced, the carrying amount of the replaced part is derecognized.

2.5 Non-Current assets (or disposal groups) held for sale and
discontinued operations:

Non-current assets (or disposal groups) are classified as held for sale if their carrying amount
will be recovered principally through a sale transaction rather than through continuing use
and a sale is considered highly probable. They are measured at the lower of their carrying
amount and fair value less costs to sell, except for assets such as deferred tax assets, assets
arising from employee benefits, financial assets and contractual rights under insurance
contracts, which are specifically exempt from this requirement.

An impairment loss is recognized for any initial or subsequent write-down of the asset
(or disposal group) to fair value less costs to sell. A gain is recognized for any subsequent
increases in fair value less costs to sell of an asset (or disposal group), but not in excess
of any cumulative impairment loss previously recognized. A gain or loss not previously
recognized by the date of the sale of the non-current asset (or disposal group) is recognized
at the date of de-recognition.

Non-current assets (including those that are part of a disposal group) are not depreciated or
amortized while they are classified as held for sale. Interest and other expenses attributable
to the liabilities of a disposal group classified as held for sale continue to be recognized.

Non-current assets classified as held for sale and the assets of a disposal group classified
as held for sale are presented separately from the other assets in the balance sheet. The
liabilities of a disposal group classified as held for sale are presented separately from other
liabilities in the balance sheet.

A discontinued operation is a component of the entity that has been disposed of or is classified
as held for sale and that represents a separate major line of business or geographical area
of operations, is part of a single coordinated plan to dispose of such a line of business or
area of operations, or is a subsidiary acquired exclusively with a view to resale. The results of
discontinued operations are presented separately in the statement of profit and loss.

2.6 Impairment

i. Financial assets

The Company recognizes loss allowances using the expected credit loss (ECL) model for the
financial assets which are not fair valued through the statement of profit or loss.

Loss allowance for trade receivables with no significant financing component is measured at
an amount equal to lifetime ECL.

For all other financial assets, expected credit losses are measured at an amount equal to
the 12-month ECL, unless there has been a significant increase in credit risk from initial
recognition in which case those are measured at lifetime ECL.

The amount of ECL (or reversal) that is required to adjust the loss allowance at the reporting
date to the amount that is required to be recognized is recognized as an impairment gain or
loss in the statement of profit or loss.

Time barred dues from the government/government departments/government companies
are generally not considered as increase in credit risk of such financial asset.

ii. Non-financial assets

The Company assess at each reporting date whether there is any indication that the carrying
amount may not be recoverable. If any such indication exists, then the asset's recoverable
amount is estimated and an impairment loss is recognized if the carrying amount of an asset
or CGU exceeds its estimated recoverable amount in the statement of profit and loss.

The Company's non-financial assets, inventories and deferred tax assets, are reviewed at
each reporting date to determine whether there is any indication of impairment. If any such
indication exists, then the asset's recoverable amount is estimated. For impairment testing,
assets that do not generate independent cash inflows are grouped together into cash¬
generating units (CGUs). Each CGU represents the smallest group of assets that generates
cash inflows that are largely independent of the cash inflows of other assets or CGUs.

Impairment loss recognized in respect of a CGU is allocated first to reduce the carrying
amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of
the other assets of the CGU (or groups of CGUs) on a pro rata basis.

An impairment loss in respect of goodwill is not subsequently reversed. In respect of other
assets for which impairment loss has been recognized in prior periods, the Company reviews
at each reporting date whether there is any indication that the loss has decreased or no
longer exists. An impairment loss is reversed if there has been a change in the estimates
used to determine the recoverable amount. Such a reversal is made only to the extent that
the asset's carrying amount does not exceed the carrying amount that would have been
determined, net of depreciation or amortization, if no impairment loss had been recognized.

Company as a lessee

The Company evaluates if an arrangement qualifies to be a lease as per the requirements
of Ind AS 116. Identification of Lease requires significant judgement. The Company uses
significant judgement in assessing the Lease term (including anticipated renewals) and the
applicable discount rate.

The Company determines the Lease term as the non-cancellable period of a Lease, together
with both periods covered by an option to extend the lease if the Company is reasonably
certain to exercise that option; and period covered by an option to terminate the lease, if
the Company is reasonably certain not to exercise that option. In assessing whether the
Company is reasonably certain to exercise an option to extend a lease, or not to exercise.
an option to terminate a lease, it considers all relevant facts and circumstances that create
an economic incentive for the Company to exercise the option to extend the lease, or not to
exercise the option to terminate the lease.

The Company revises the lease term if there is a change in the non-cancellable period of a
lease.

The Company recognises right-of-use asset representing its right to use the underlying
asset for the lease term at the lease commencement date. The cost of the right-of-use asset
measured at inception shall comprise of the amount of the initial measurement of the lease
liability adjusted for any lease payments made at or before the commencement date less
any lease incentives received, plus any initial direct costs incurred and an estimate of costs
to be incurred by the lessee in dismantling and removing the underlying asset or restoring
the underlying asset or site on which it is located. The right-of-use assets is subsequently
measured at cost less any accumulated depreciation, accumulated impairment losses, if
any and adjusted for any remeasurement of the lease liability. The right-of-use assets is
depreciated using the straight-line method from the commencement date over the shorter
of lease term or useful life of right-of-use asset. The estimated useful lives of right-of-use
assets are determined on the same basis as those of property, plant and equipment. Right-
of-use assets are tested for impairment whenever there is any indication that their carrying
amounts may not be recoverable. Impairment loss, if any, is recognised in the statement of
profit and loss.

The Company measures the lease liability at the present value of the lease payments that
are not paid at the commencement date of the lease. The lease payments are discounted
using the interest rate implicit in the lease, if that rate can be readily determined. If that rate
cannot be readily determined, the Company uses incremental borrowing rate. For leases
with reasonably similar characteristics, the Company, on a lease by lease basis, may adopt
either the incremental borrowing rate specific to the lease or the incremental borrowing

rate for the portfolio as a whole. The lease payments shall include fixed payments, variable
lease payments, residual value guarantees, exercise price of a purchase option where
the Company is reasonably certain to exercise that option and payments of penalties for
terminating the lease, if the lease term reflects the lessee exercising an option to terminate
the lease. The lease liability is subsequently remeasured by increasing the carrying amount
to reflect interest on the lease liability, reducing the carrying amount to reflect the lease
payments made and remeasuring the carrying amount to reflect any reassessment or lease
modifications or to reflect revised in-substance fixed lease payments.

The Company recognises the amount of the re-measurement of lease liability as an
adjustment to the right-of-use asset. Where the carrying amount of the right-of-use asset is
reduced to zero and there is a further reduction in the measurement of the lease liability,
the Company recognises any remaining amount of the re-measurement in statement of
profit and loss.

The Company has elected not to apply the requirement of Ind AS 116 Leases to short term
leases of all assets that have lease term of 12 months or less and leases for which the
underlying asset value is of low value. The lease payments associated with these leases are
recognized as an expense on a straight-line basis over the lease term.

Company as a lessor

At the inception of the lease the Company classifies each of its leases as either an operating
lease or a finance lease. The Company recognises lease payments received under operating
leases as income on a straight- line basis over the lease term.

If an arrangement contains lease and non-lease components, the Company applies Ind AS
115 Revenue to allocate the consideration in the contract.

Lease contracts entered by the Company majorly pertains for buildings taken on lease
to conduct its business in the ordinary course. The Company does not have any lease
restrictions and commitment towards variable rent as per the contract.

2.8 Financial instruments

i. Recognition and initial measurement

All financial assets are recognized on trade date when the purchase of a financial asset is
under a contract whose term requires delivery of the financial asset within the time frame
established by the market concerned. Financial assets or financial liabilities are initially
measured at fair value, plus/minus transaction costs, except for those financial assets and
liabilities which are classified as at fair value through profit or loss (FVTPL) at inception.

ii. Classification of financial assets

The Company classifies its financial assets in the following measurement categories:

• those to be measured subsequently at fair value (either through other comprehensive
income, or through profit or loss), and

• those measured at amortized cost.

The classification depends on the entity's business model for managing the financial assets
and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in profit or loss or
other comprehensive income. For investments in debt instruments, this will depend on the
business model in which the investment is held. For investments in equity instruments, this
will depend on whether the Company has made an irrevocable election at the time of initial
recognition to account for the equity investment at fair value through other comprehensive
income. The Company reclassifies debt investments when and only when its business model
for managing those assets changes.

iii. Measurement

At initial recognition, the Company measures a financial asset at its fair value plus, in the case
of a financial asset not at fair value through profit or loss, transaction costs that are directly
attributable to the acquisition of the financial asset. Transaction costs of financial assets
carried at fair value through profit or loss are expensed in profit or loss.

Financial assets with embedded derivatives are considered in their entirety when determining
whether their cash flows are solely payment of principal and interest.

a. Debt Instruments

Subsequent measurement of debt instruments depends on the Company's business model
for managing the asset and the cash flow characteristics of the asset. The Company classifies
its debt instruments as:

Amortized cost:

Debt Instruments that are held for collection of contractual cash flows where those cash
Flows represent solely payments of principal and interest are measured at amortized cost. A
gain or loss on a debt investment that is subsequently measured at amortized cost and is not
part of a hedging relationship is recognized in profit or loss when the asset is derecognized
or impaired. Interest income from these financial assets is included in finance income using
the effective interest rate method.

Debt instrument at FVTOCI:

A 'debt instrument' is classified as at the FVTOCI if both of the following criteria are met:

a) The objective of the business model is achieved both by collecting contractual cash
flows and selling the financial assets, and

b) The asset's contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as
at each reporting date at fair value. Fair value movements are recognized in the other
comprehensive income (OCI). However, the Company recognizes interest income, impairment
losses & reversals and foreign exchange gain or loss in the statement of profit and loss. On
derecognition of the asset, cumulative gain or loss previously recognized in OCI is reclassified
from the equity to statement of profit and loss (P&L). Interest earned whilst holding FVTOCI
debt instrument is reported as interest income using the EIR method.

Debt instrument at FVTPL:

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet
the criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL.

In addition, the Company may elect to designate a debt instrument, which otherwise meets
amortized cost or FVTOCI criteria, as at FVTPL. However, such election is considered only if
doing so reduces or eliminates a measurement or recognition inconsistency (referred to as
'accounting mismatch').

Debt instruments included within the FVTPL category are measured at fair value with all
changes recognized in the statement of profit and loss.

b. Equity Instruments

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments
which are held for trading are classified as at FVTPL. For all other equity instruments, the
Company has made an irrevocable election to present in other comprehensive income
subsequent changes in the fair value.

The Company makes such election on an instrument-by-instrument basis. The classification
is made on initial recognition and is irrevocable. If the Company decides to classify an equity

instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends,
are recognized in the OCI.

There is no recycling of the amounts from OCI to statement of profit and loss, even on sale
of investment. However, the Company may transfer the cumulative gain or loss within equity.
Equity instruments included within the FVTPL category are measured at fair value. All changes
in fair value including dividend are recognized in the statement of profit and loss.

c. Investment in subsidiaries, joint venture and associates

Investment in subsidiaries, joint venture and associates is carried at cost less impairment in
the financial statements.

d. Trade receivables:

Trade receivables are amounts due from customers for goods sold or services performed in
the ordinary course of business. If collection is expected to be collected within a period of 12
months or less from the reporting date (or in the normal operating cycle of the business if
longer), they are classified as current assets otherwise as non-current assets.

Trade receivables are measured at their transaction price unless it contains a significant
financing component in accordance with Ind AS 115 (or when the entity applies the practical
expedient) or pricing adjustments embedded in the contract.

Loss allowance for expected life time credit loss is recognized on initial recognition.

e. Trade and other payables

These amounts represent liabilities for goods and services provided to the Company. Trade
and other payables are presented as current liabilities if payment is due within 12 months
after the reporting period otherwise as non-current. They are recognized initially at their fair
value and subsequently measured at amortized cost using the effective interest method.

iv. Derecognition
Financial assets

The Company derecognizes a financial asset when the contractual rights to the cash flows
from the financial asset expire, or it transfers the rights to receive the contractual cash flows
in a transaction in which substantially all of the risks and rewards of ownership of the financial

asset are transferred or in which the Company neither transfers nor retains substantially all
of the risks and rewards of ownership and does not retain control of the financial asset.

If the Company enters into transactions whereby it transfers assets recognized on its balance
sheet, but retains either all or substantially all of the risks and rewards of the transferred
assets, the transferred assets are not derecognized.

Financial liabilities

The Company derecognizes a financial liability when its contractual obligations are discharged
or cancelled, or expire.

The Company also derecognizes a financial liability when its terms are modified and the
cash flows under the modified terms are substantially different. In this case, a new financial
liability based on the modified terms is recognized at fair value. The difference between
the carrying amount of the financial liability extinguished and the new financial liability with
modified terms is recognized in the statement of profit or loss.

v. Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the
balance sheet when, and only when, the Company currently has a legally enforceable right
to set off the amounts and it intends either to settle them on a net basis or to realize the
asset and settle the liability simultaneously.

vi. Reclassification

The Company determines the classification of financial assets and liabilities on initial
recognition. After initial recognition no reclassification is made for financial assets which
are categorized as equity instruments at FVTOCI and financial assets or liabilities that are
specifically designated as FVTPL.

2.9 Revenue

i) Sale of Services

The Company primarily derives its revenue from providing software development services.

Effective April 1, 2018, the Company adopted Ind AS 115 "Revenue from Contracts with
Customers" using the cumulative catch-up transition method, applied to contracts that were
not completed as of April 1, 2018.

Revenue from services is recognized over the period of the contract. Revenue is recognized
to the extent that it is probable that economic benefits will flow to the Company and the
revenue can be reliably measured.

Revenue from time and material contracts is recognized on input basis measured by units
delivered, man hours deployed, efforts expended, number of activities performed, etc.

In respect of fixed-price contracts, revenue is recognized using percentage-of-completion
method ('POC method') of accounting with contract cost incurred determining the degree
of completion of the performance obligation. The contract cost used in computing the
revenues include cost of fulfilling warranty obligations.

The incremental costs of obtaining a contract with a customer are capitalized if the entity
expects to recover these costs.

Contract fulfilment costs are generally expensed as incurred except for certain costs which
meet the criteria for capitalization. Such costs are amortized over the contractual period.
The assessment of this criteria requires the application of judgement, in particular when
considering if costs generate or enhance resources to be used to satisfy future performance
obligations and whether costs are expected to be recovered.

Contract assets are recognized when there is excess of revenue earned over billings on
contracts. Contract assets are classified as unbilled receivables (only act of invoicing is
pending) when there is unconditional right to receive cash, and only passage of time is
required, as per contractual terms.

Unearned and deferred revenue ("contract liability") is recognized when there are billings in
excess of revenues.

The Company has not recognized variable consideration receivable from certain customers
as the amount of the same is not ascertainable as at the reporting date and receipt of the
same is highly uncertain.

The billing schedules agreed with customers include periodic performance based payments
and/or milestone based progress payments. Invoices are payable within contractually
agreed credit period.

In accordance with Ind AS 37, the Company recognises an onerous contract provision when
the unavoidable costs of meeting the obligations under a contract exceed the economic
benefits to be received.

Contracts are subject to modification to account for changes in contract specification
and requirements. The Company reviews modification to contract in conjunction with the
original contract, basis which the transaction price could be allocated to a new performance
obligation, or transaction price of an existing obligation could undergo a change. In the event
transaction price is revised for existing obligation a cumulative adjustment is accounted for.

Applying the practical expedient provided in paragraph 121, the entity has not disclosed the
duration for completion of unsatisfied performance obligations, for the contracts that has an
original expected duration of 1 year or less and for time and material contracts.

The Company disaggregates revenue from contracts with customers by industry verticals
and geography.

Use of significant judgements in revenue recognition:

• The Company's contracts with customers could include promises to transfer multiple
services to a customer. The Company assesses the services promised in a contract
and identifies distinct performance obligations in the contract. Identification of distinct
performance obligation involves judgement to determine the deliverables and the
ability of the customer to benefit independently from such deliverables.

• Judgement is also required to determine the transaction price for the contract.
The transaction price could be either a fixed amount of customer consideration or
variable consideration with elements such as volume discounts, service level credits,
performance bonuses, price concessions and incentives. The transaction price is also
adjusted for the effects of the time value of money if the contract includes a significant
financing component. Any consideration payable to the customer is adjusted to the
transaction price, unless it is a payment for a distinct product or service from the
customer. The estimated amount of variable consideration is adjusted in the transaction
price only to the extent that it is highly probable that a significant reversal in the amount
of cumulative revenue recognised will not occur and is reassessed at the end of each
reporting period. The Company allocates the elements of variable considerations to all
the performance obligations of the contract unless there is observable evidence that
they pertain to one or more distinct performance obligations.

• The Company uses judgement to determine an appropriate standalone selling price
for a performance obligation. The Company allocates the transaction price to each
performance obligation on the basis of the relative standalone selling price of each
distinct product or service promised in the contract. Where standalone selling price is
not observable, the Company uses the expected cost-plus margin approach to allocate
the transaction price to each distinct performance obligation.

• The Company exercises judgement in determining whether the performance obligation
is satisfied at a point in time or over a period of time. The Company considers indicators
such as how customer consumes benefits as services are rendered or who controls the
asset as it is being created or existence of enforceable right to payment for performance
to date and alternate use of such product or service, transfer of significant risks and
rewards to the customer, acceptance of delivery by the customer, etc.

ii) Other Income

Dividend income is recognized when the Company's right to receive the payment is
established, which is generally when shareholders approve the dividend.

For all financial instruments measured at amortized cost, interest income is recorded using
the effective interest rate (EIR), which is the rate that exactly discounts the estimated future
cash payments or receipts over the expected life of the financial instrument or a shorter
period, where appropriate, to the net carrying amount of the financial asset. Interest income
is included in other income in the statement of profit and loss.

2.10 Foreign currencies

Transactions in foreign currencies are initially recorded by the Company at their functional
currency spot rates at the date of the transaction. Monetary assets and liabilities denominated
in foreign currency are translated at the functional currency spot rates of exchange at the
reporting date. Exchange differences that arise on settlement of monetary items or on
reporting at each balance sheet date of the Company's monetary items at the closing rates
are recognized as income or expenses in the period in which they arise.

Non-monetary items which are carried at historical cost denominated in a foreign currency
are reported using the exchange rates at the date of transaction. Non-monetary items
measured at fair value in a foreign currency are translated using the exchange rates at the
date when the fair value is determined.

2.11 Income tax

Income tax comprises current and deferred tax. It is recognized in profit or loss except to the
extent that it relates to a business combination or to an item recognized directly in equity or
other comprehensive income.

i. Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss
for the year and any adjustment to the tax payable or receivable in respect of previous years.
The amount of current tax reflects the best estimate of the tax amount expected to be paid
or received after considering the uncertainty, if any, related to income taxes. It is measured
using tax rates (and tax laws) enacted or substantively enacted by the reporting date.

ii. Deferred tax

Deferred tax is recognized in respect of temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the corresponding
amounts used for taxation purposes. Deferred tax is also recognized in respect of carried
forward tax losses and tax credits.

Deferred tax is not recognized for:

- temporary differences arising on the initial recognition of assets or liabilities in a
transaction that is not a business combination and that affects neither accounting nor
taxable profit or loss at the time of the transaction;

- temporary differences related to investments in subsidiaries, associates and interests
in joint ventures, when the timing of the reversal of the temporary differences can
be controlled and it is probable that the temporary differences will not reverse in the
foreseeable future.

Deferred tax assets are recognized to the extent that it is probable that future taxable profits
will be available against which they can be used.

Deferred tax assets unrecognized or recognized are reviewed at each reporting date and
are recognized/reduced to the extent that it is probable/no longer probable respectively
that the related tax benefit will be realized.

Deferred tax is measured at the tax rates that are expected to apply to the period when
the asset is realized or the liability is settled, based on the laws that have been enacted or
substantively enacted by the reporting date.

The measurement of deferred tax reflects the tax consequences that would follow from
the manner in which the Company expects, at the reporting date, to recover or settle the
carrying amount of its assets and liabilities.

The Company offsets, the current tax assets and liabilities (on a year on year basis) and
deferred tax assets and liabilities, where it has a legally enforceable right and where it
intends to settle such assets and liabilities on a net basis.

Current and deferred tax is recognized in profit or loss, except to the extent that it relates to
the items recognized in other comprehensive income or direct equity. In this case, the tax is
also recognized in other comprehensive income or direct equity, respectively.

Minimum Alternate Tax (MAT):

Minimum Alternate Tax (MAT) credit is recognized as deferred asset only when it is probable
that taxable profit will be available against which the credit can be utilized. In the year in
which the MAT credit becomes eligible to be recognized as an asset, the said asset is created
by way of a credit to the statement of profit and loss account. The Company reviews the same
at each balance sheet date and writes down the carrying amount of MAT credit entitlement
to the extent it is no longer probable that the Company will pay normal income tax during
the specified period.

2.12 Borrowing costs

Borrowing costs are interest and other costs (including exchange differences relating to
foreign currency borrowings to the extent that they are regarded as an adjustment to
interest costs) incurred in connection with the borrowing of funds.

Borrowing costs directly attributable to acquisition or construction of an asset which
necessarily take a substantial period of time to get ready for their intended use are capitalized
as part of the cost of that asset. Other borrowing costs are recognized as an expense in the
statement of profit and loss in the period in which they are incurred.