1. COMPANY OVERVIEW

XeLpmoc Design and Tech Limited (“the Company”) is a pubLic Limited Company, incorporated on 16 September 2015. The Company provides professional and technical consulting services The Company’s services indudes offering of technology services and soLutions to pubLic and private sector cLients engaged in e-commerce, hospitaLity, heaLthcare, education, and various other industries.

The range of services provided by the Company incLudes mobiLe and web application development, prototype development, thematic product development and data anaLytics assistance.

The Board of Directors approved the FinanciaL Statements for the year ended 31 March, 2024. These financiaL statements were authorized for issue on 28 May, 2024.

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 (INR), 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 2024 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

• Impact of Covid-19 (GLobaL Pandemic)

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: 40 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, nonrecoverable 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-inprogress. 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 Rs. 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-recoveraffie 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 months 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.

2.7 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.

2.8 Leases

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 aU 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 shab 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 ShortTerm 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.

2.9 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 initiaHy 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 ak of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantial 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 canceled, 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.

2.10 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 wik 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 fulf iking 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 generaky 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 bikings on contracts. Contract assets are classified as unbiked 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 abocated 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 seUing 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.

2.11 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.

2.12 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 legaUy 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.

2.13 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.

2.14 Provision, contingent liabilities and contingent assets

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, 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. When the Company expects some or all of a provision to be reimbursed, the expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

Provisions are measured at the present value of the management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provisions due to the passage of time is recognized as interest expense.

Onerous Contracts

Provision for onerous contracts. i.e. contracts where the expected unavoidable cost of meeting the obligations under the contract exceed the economic benefits expected to be received under it, are recognized when it is probable that an outflow of resources embodying economic benefits will be required to settle a present obligation as a result of an obligating event based on a reliable estimate of such obligation.

Contingencies

Provision in respect of loss contingencies relating to claims, litigation, assessment, fines, penalties, etc. are recognized when it is probable that a liability has been incurred, and the amount can be estimated reliably. Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not

wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

A contingent asset is disclosed, where an inflow of economic benefits is probable. An entity shall not recognize a contingent asset unless the recovery is virtually certain.

2.15 Employee benefits

i. Short-term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as Short-Term Employee benefits. Benefits such as salaries are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the employee renders the related service.

ii. Post-employee benefits

Defined Contribution Plans:

A defined contribution plan is post-employee benefit plan under which an entity pays a fixed contribution to a separate entity and will have no legal or constructive obligation to pay further amounts. The Company makes specified monthly contributions towards provident fund scheme. Obligations for contributions to defined contribution plans are recognized as an employee benefit expenses in the statement of profit and loss in the periods during which the related services are rendered by employees.

Defined Benefit Plans:

Gratuity

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company’s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligation is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset, the same is recognized to the extent of the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan (‘the asset ceiling’). In order to calculate the present value of economic benefits, consideration is given to any minimum funding requirements.

Remeasurement of the net defined benefit Liability, which comprise actuariaL gains and Losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized in OCI. The Company determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset), taking into account any changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognized in profit or Loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service (‘past service cost’ or ‘past service gain’) or the gain or Loss on curtailment is recognized immediately in profit or Loss. The Company recognizes gains and Losses on the settlement of a defined benefit pLan when the settlement occurs.

iii. Other long-term employee benefits

ALL empLoyee benefits (other than post-empLoyment benefits and termination benefits) which do not faLL due whoLLy within tweLve months after the end of the period in which the empLoyees render the reLated services are determined based on actuariaL valuation or discounted present vaLue method carried out at each baLance sheet date. The expected cost of accumulating compensated absences is determined by actuariaL vaLuation performed by an independent actuary 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. Expense on non-accumuLating compensated absences is recognized in the period in which the absences occur.

iv. Share based payment

Equity settLed share based payments to empLoyees and other providing simiLar services are measured at fair vaLue of the equity instruments at grant date.

The fair vaLue determined at the grant date of the equity-settLed share based payment is expensed on a straight Line basis over the vesting period, based on the Company’s estimate of equity instruments that wiLL eventuaLLy vest, with a corresponding increase in equity. At the end of each reporting period, the Company revises its estimates of the number of equity instruments expected to vest. The impact of the revision of the originaL estimates, if any is, recognised in Statement of Profit and Loss such that the cumulative expenses reflects the revised estimate, with a corresponding adjustment to the shared option outstanding account.

No expense is recognised for options that do not uLtimateLy vest because non market performance and/or service conditions have not been met.

The diLutive effect of outstanding options is reflected as additional share diLution in the computation of diLuted earnings per share.

2.16 Cash and cash equivalents

Cash and cash equivalents incLudes cash on hand, demand deposits heLd with financial institution, other short-term, highLy Liquid investments with originaL maturities of three months or Less that are readiLy convertibLe to know cash and which are subject to an insignificant risk of changes in vaLue.

2.17 Earnings per share

Basic earnings per share (‘BEPS’) is computed by dividing net profit or Loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding for the period.

DiLuted earnings per share (‘DEPS’) is computed by dividing the net profit or Loss for the period attributabLe to equity sharehoLders and the weighted average number of equity shares considered for deriving basic earnings per share and aLso the 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 year, unLess issued at a Later date. In computing diLuted earnings per share, onLy potential equity shares that are diLutive and that either reduces earnings per share or increases Loss per share are incLuded. The number of shares and potentiaLLy diLutive equity shares are adjusted retrospectively for aLL periods presented for the share splits.

2.18 Cash flow statements

Cash flows are reported using indirect method, whereby net profits before tax is adjusted for the effects of transactions of a non-cash nature and any deferraLs or accruaLs of past or future cash receipts or payments. The cash flows from reguLar operating, investing and financing activities of the Company are segregated.

2.19 Segment Reporting

Operating segments are reported in a manner consistent with the internal, reporting provided to the chief operating decision maker (CODM). Only those business activities are identified as operating segment for which the operating results are regularly reviewed by the CODM to make decisions about resource allocation and performance measurement.

The Company’s management examines the Company’s performance as a whole i.e., providing technoLogicaL soLution services and accordingly the Company has onLy one reportable segment.

The Company generates revenue from rendering services to customers located outside India. All the assets of the Company are situated in India. Geographical segment to the extent of revenue generated from sales outside India has been disclosed (Refer Note no. 39).