For the purpose of impairment testing, goodwill acquired in a business combination is allocated to the Cash Generating Units (CGU) or groups of CGUs, which benefit from the synergies of the acquisition.

The recoverable amount of a CGU is determined based on value-in-use. Value-in-use is present value of future cash flows expected to be derived from the CGU. The growth rate for forecast period of 5 years is based on historical trend and an appropriate annual growth rate of 2% is considered for periods subsequent to the forecast period. The pre-tax discount rate ranges from 16.1% to 17.3% based on Weighted Average Cost of Capital for the Company.

The Company does its impairment evaluation on an annual basis and based on such evaluation the estimated recoverable amount of the CGU exceeded its carrying amount, hence impairment is not triggered as at reporting date. The Company has performed sensitivity analysis for all key assumptions, including the cash flow projections and is unlikely to cause the carrying amount of the CGU exceed its estimated recoverable amount. These estimates are likely to differ from future actual results of operations and cash flows.

1 M/s. Cuelogic Technologies Inc, USA, wholly owned subsidiary of the Company has been voluntarily deregistered and closed w.e.f April 26, 2023.

2 Mindtree Software (Shanghai) Co. Ltd, China, wholly owned subsidiary of the Company has been voluntarily deregistered and closed w.e.f August 26, 2023.

3 The Company had invested in Philippines Govt. Treasury notes and had deposited same with local Securities and Exchange Commission, as per Corporation Code of Philippines-126. The Invested Treasury note matured during the year and the maturity proceeds are parked in local bank account and would be reinvested in treasury notes of Philippines Govt.

4 During the year ended March 31, 2023, the Company acquired a 6.64% stake in COPE Healthcare Consulting Inc. ('COPE') for a consideration of H 343 pursuant to a Stock Purchase Agreement entered on April 4, 2022 to expand its healthcare business. COPE is a healthcare consulting, implementation and co-management leader in population health management, value-based care and payment, workforce development and data analytics. The Company has made an irrevocable election to present in Other Comprehensive Income subsequent changes in the fair value of this investment as this is strategic investment and is not held for trading.

5 Impairment upto March 31, 2024 is I Nil (Previous Year: I Nil).

(a) Employee Stock Option Scheme 2015 ('ESOP Scheme - 2015')

On September 14, 2015, the shareholders of the Company have approved the administration and supervision of Employee Stock Ownership Scheme 2015 ('ESOP 2015') by the Board. Shares under this program are granted to employees at an exercise price of not less than H 1 per equity share or such higher price as determined by the Board but shall not exceed the market price as defined in the Regulations. Shares shall vest over such term as determined by the Nomination and Remuneration Committee not exceeding five years from the date of the grant. These options are exercisable within 7 years from the date of grant. During the year, the Nomination and Remuneration Committee ('NRC') has approved the administration of the plan through a trust established specifically for this purpose, called the LTIMindtree Employee Welfare Trust (formerly Mindtree Employee Welfare Trust) ('ESOP Trust').

(b) Employee Restricted Stock Purchase Plan 2012 ('ERSP 2012')

Employee Restricted Stock Purchase Plan ('ERSP') 2012 was instituted with effect from July 16, 2012 to issue equity shares of nominal value of H 1 each. Shares under this program are granted to employees at an exercise price of not less than H 10 per equity share or such higher price as determined by the Nomination and Remuneration Committee. Shares shall vest over such term as determined by the Nomination and Remuneration Committee not exceeding ten years from the date of the grant. All shares will have a minimum lock in period of one year from the date of allotment.

On May 22, 2021, the shareholders of the Company have approved the Employee Stock Option Plan 2021 ('ESOP 2021') for the issue of upto 2,000,000 options (including the unutilized options under ERSP 2012) to employees of the Company. The Nomination and Remuneration Committee ('NRC') administers the plan through a trust established specifically for this purpose, called the LTIMindtree Employee Welfare Trust (formerly Mindtree Employee Welfare Trust) ('ESOP Trust').

The ESOP Trust shall subscribe to the equity shares of the Company using the proceeds from loans obtained from the Company, other cash inflows from allotment of shares to employees under the ESOP Plan, to the extent of number of shares as is necessary for transferring to the employees. The NRC shall determine the exercise price which will not be less than the face value of the shares. Options under this program are granted to employees at an exercise price periodically determined by the NRC. All stock options have a four-year vesting term. The options vest and become fully exercisable at the rate of 25% each over a period of 4 years from the date of grant. Each option is entitled to 1 equity share of H 1 each. These options are exercisable within 6 years from the date of vesting.

(VII) Weighted average share price at the date of exercise for stock options exercised during the year ended March 31, 2024 is H 5,298 per share (For the year ended March 31, 2023 H 4,761 per share).

(VIII) The fair value has been calculated using the Black-Scholes Option Pricing model and significant assumptions and inputs to estimate the fair value options granted during the period are as follows:

(c) Employee Stock Option Plan 2021 ('ESOP 2021') - Series B

During the year ended March 31, 2024 and March 31, 2023, no new grants have been issued.

(IX) The aggregate number of equity shares allotted as fully paid up by way of bonus shares in immediately preceding five years ended March 31, 2024 is I Nil.

(X) An aggregate of 120,397,266 equity shares of H 1 each were issued pursuant to amalgamation, without payment being received in cash in immediately preceding five years ended March 31, 2024 (Refer Note 44 (i))

(XI) (a) During the year ended March 31, 2024, the Company has distributed and paid final dividend for March 31, 2023 of H 40

per share and interim dividend of H 20 per share.

(b) During the year ended March 31, 2023, the Company has distributed and paid interim dividend of H 20 per share.

On November 30, 2023, the special resolution dated May 22, 2021 passed by erstwhile Mindtree Limited relating to grant of loan to the 'LTIMindtree Employee Welfare Trust' (formerly known as Mindtree Employee Welfare Trust) ('ESOP Trust') with a view to enable the ESOP Trust to subscribe equity shares of the Company for implementation and administration of ESOP 2021 plan, has been partially modified and the shareholders of the Company, through postal ballot, have approved the grant of loan to the ESOP Trust to subscribe equity shares of the Company for administration of ESOP Scheme 2015 along with ESOP 2021 plan, the aggregate value of loan shall not exceed the statutory ceiling of five (5%) percent of the paid-up capital and free reserves of the Company.

1 Capital reserve on business combination represents the gains of capital nature which mainly include the excess of value of net assets acquired over consideration paid by the Company for business amalgamation transactions in earlier years. It also represents capital reserve on business combination which arises on transfer of business between entities under common control.

2 I t represents a sum equal to the nominal value of the share capital extinguished on buyback of Company's own shares pursuant to Section 69 of the Companies Act, 2013.

3 Share premium includes:

(a) The difference between the face value of the equity shares and the consideration received in respect of shares issued;

(b) The fair value of the stock options which are treated as expense, if any, in respect of shares allotted pursuant to Stock Options Scheme.

(c) Incremental directly attributable costs incurred in issuing or acquiring an entity's own equity instruments.

4 The Company created a General reserve in earlier years pursuant to the provisions of the Companies Act,1956 where in certain percentage of profits was required to be transferred to General reserve before declaring dividends. As per Companies Act 2013, the requirements to transfer profits to General reserve is not mandatory. General reserve is a free reserve available to the Company.

5 It represents the fair value of services received against employees stock options.

6 The company has created Special Economic Zone reinvestment reserve out of the profit of eligible SEZ units in terms of the provisions of section 10AA(1)(II) of the Income Tax Act, 1961. The same was utilized and the balance is I Nil as on Balance Sheet date.

7 The hedging reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. Such gains or losses will be reclassified to Statement of profit and loss in the period in which the hedged transaction occurs.

8 Retained earnings represents the undistributed profits of the Company accumulated as on Balance Sheet date.

* Includes disputed dues provided pursuant to unfavorable orders received from the tax authorities as at March 31, 2024 H 111 (As at March 31, 2023: H 108) against which the Company has preferred an appeal with the relevant authority. In respect of the provisions of Ind AS 37, the disclosures required have not been provided pursuant to the limited exemption provided under paragraph 92 of Ind AS 37.

# During the year ended March 31, 2018, the Company received an order passed under section 7A of the Employees Provident Fund & Miscellaneous Provisions Act, 1952 from Employees Provident Fund Organisation (EPFO) claiming provident fund contribution aggregating to H 250 for dues up to June 2016, and excludes any additional interest that may be determined by the authorities from that date till resolution of the dispute, on (a) full salary paid to International Workers and (b) special allowance paid to employees. Based on a legal advice obtained, the Company has assessed that it has a legitimate ground for appeal, and has contested the order by filing an appeal with the Employees' Provident Funds Appellate Tribunal. In view of the changes in the regulations with the new wage code and social security code, the Company, supported by legal advice, continues to re-estimate the probability of any liability arising from this matter and has accordingly recognized a provision of H 807 (As at March 31, 2023: H 758), including estimated interest, as on the date of the balance sheet.

* Government incentives -

1. The Company undertakes R&D activities and incurs qualifying revenue expenditure which is entitled to an additional deduction under Local Tax Laws. During the year, the Company has recognized R&D credits amounting to I Nil (For the year ended March 31, 2023: H 24), as a credit to employee benefits expense.

2. During the year, the Company has recognized for government grants amounting to H 11 (For the year ended March 31, 2023: H 37) arising in various countries on account of compliance of several employment-related conditions, as a credit to employee benefits expense.

Major matters in relation to Income Tax

The Company has received following tax demands as at March 31, 2024:

1. H 3,095 including interest of H 212 as at March 31, 2024 (As at March 31, 2023: H 3,095 including interest of H 212), on account of disallowance of exemption u/s 10A/10AA on profits earned by STPI Units/SEZ units on onsite export revenue.

2. H 923 (As at March 31, 2023: H Nil) majorly on account of disallowance of certain expenses under section 40(a)(ia) and addition to income under section 69.

3. H 784 (As at March 31, 2023: H 782) primarily on account of transfer pricing adjustments.

Major matters in relation to Indirect taxes

The Company has received tax demand of H 1,984 (As at March 31, 2023: H Nil) on account of zero rated supply and ITC disallowances.

I n respect of the above matters, the Company is in appeal against these disallowances before the relevant Authorities. The Company believes that its position is likely to be upheld by appellate authorities and considering the facts, the ultimate outcome of these proceedings is not likely to have material adverse effect on the results of operations or the financial position.

The interest payment obligation of trust managed provident fund is assumed to be adequately covered by the interest income on long term investments of the fund. Any shortfall in the interest income over the interest obligation is recognised immediately in the statement of profit and loss. Any loss arising out of the investment risk and actuarial risk associated with the plan is recognised as actuarial loss in the year in which such loss occurs. Further, I Nil has been provided for the year ending March 31, 2024 and March 31, 2023 based on actuarial valuation towards the future obligation arising out of interest rate guarantee associated with the plan.

I n respect of employees of erstwhile Mindtree Limited monthly contributions were contributed to Employees' Provident Fund Organisation (EPFO) till November 30, 2022 and accordingly was recognised as a defined contribution plan (refer note III below). From December 1, 2022, the amount is contributed to the Trust.

36. Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for is H 4,986 (As at March 31, 2023: H 995)

37. EMPLOYEE BENEFITS(I) General descriptions of defined benefit plans:

(i) Gratuity plan

The Company provides for gratuity, a defined benefit retirement plan ("the Gratuity Plan") covering eligible Indian employees of LTIMindtree. The Gratuity Plan provides a lumpsum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of employment with the Group. The Company contributes gratuity liabilities to the LTIMindtree Employees' Group Gratuity Assurance Scheme. Moreover there are certain contributions with Mindtree Limited Employees Gratuity Fund Trust. Trustees administer contributions made to the Trusts and contributions are invested in schemes with Insurers as permitted by Indian law.

(ii) Post-retirement medical benefit plan

The post-retirement medical benefit plan provides for reimbursement of health care costs to certain categories of employees post their retirement. The reimbursement is subject to an overall ceiling limit sanctioned at the time of retirement. The ceiling limits are based on cadre of the employee at the time of retirement. (refer note III below)

(iii) Provident fund plan

The Company's provident fund plan is managed by its holding company through a Trust permitted under the Provident Fund Act, 1952. The plan envisages contribution by employer and employees of the company and guarantees interest at the rate notified by the Provident Fund Authority. The contribution by employer and employee together with interest are payable at the time of separation from service or retirement whichever is earlier. The benefit under this plan vests immediately on rendering of service.

(X) Projected plan cash flow:

The table below shows the expected cash flow profile of the benefits to be paid to the current membership of the plan (which in case of serving employees, if any, is based on service accrued by employee up to valuation date):

(XI) Sensitivity analysis

(i) Post retirement benefits:

Although the obligation of the Company under the post-retirement medical benefit plan is limited to the overall ceiling limits, assumed healthcare cost trend rates may affect the amounts recognised in the statement of profit and loss. The benefit obligation results for the cost of paying future hospitalization premiums to insurance company and reimbursement of domiciliary medical expenses in future for the employee/beneficiaries during their lifetime is sensitive to discount rate, future increase in healthcare costs and longevity. The following table summarizes the impact on the reported defined benefit obligation at the end of the reporting year arising on account of changes in these four key parameters:

(ii) Gratuity:

Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in demographic assumptions. The key actuarial assumptions to which the benefit obligation results are particularly sensitive to are discount rate, future salary escalation rate and withdrawal rate. The following table summarizes the impact on the reported defined benefit obligation at the end of the reporting year arising on account of an increase or decrease in the reported assumption as below:

(II) Fair value hierarchy:

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

Level 2 - I nputs other than quoted prices included with in level 1 that are observable for assets or liabilities, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

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

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

The Management assessed that fair value of Trade receivables, Unbilled revenue, Other financial assets, Lease liabilities, Trade payables and Other financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

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

One percentage point change in the unobservable inputs used in fair valuation of Level 3 assets and liabilities does not have a

significant impact on the value.

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

(i) The fair value of the quoted bonds and mutual funds are based on price quotations at reporting date.

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

(iii) Mark to market on forward covers and embedded derivative instruments is based on forward exchange rates at the end of reporting year and discounted using G-sec rate plus applicable spread.

(III) Financial risk management

The Company's activities expose it to a variety of financial risks - currency risk, interest rate risk, credit risk and liquidity risk. The Company's primary focus is to foresee the unpredictability of financial markets and seek to minimize the potential adverse effects on its financial performance. The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to mitigate the risks arising out of foreign exchange related exposures. The Company's exposure to credit risk is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customers. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:

(i) Currency risk

The Company operates in multiple geographies and contracts in currencies other than the domestic currency exposing it to risks arising from fluctuation in the foreign exchange rates. The Company uses derivative financial instruments to mitigate foreign exchange related exposures. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Company's policy that no trading in derivative for speculative purposes may be undertaken.

The Company's revenues are principally in foreign currencies and the maximum exposure is in US dollars.

The Board of Directors of the Company has approved the financial risk management policy covering management of foreign currency exposures. The treasury department monitors the foreign currency exposures and enters into appropriate hedging instruments to mitigate its risk. The Company hedges its exposure on a net basis (i.e. expected revenue in foreign currency less expected expenditure in related currency). Consequently, the Company uses derivative financial instruments, such as foreign exchange forward contracts and option contracts, designated as cash flow hedges and fair value hedges to mitigate the risk of changes in foreign currency exchange rates in respect of its forecasted cash flows and on balance sheet exposures.

The details in respect of the outstanding foreign exchange forward contracts and option contracts are given under the derivative financial instruments section below.

In respect of the Company's derivative financial instruments, a 1% decrease/increase in the respective exchange rates of each of the currencies underlying such contracts would have resulted in:

(a) an approximately H 235 increase and H 235 decrease in the Company's net profit in respect of its fair value hedges and H 3,474 increase and H 3,474 decrease in the Company's effective portion of cash flow hedges as at March 31, 2024.

(b) an approximately H 363 increase and H 363 decrease in the Company's net profit in respect of its fair value hedges and H 3,284 increase and H 3,284 decrease in the Company's effective portion of cash flow hedges as at March 31, 2023.

*Other currencies include currencies such as Emirati Dirham, Australian $, Canadian $, South African Rand, Singapore $, Norwegian Krone, etc.

As at March 31, 2024, every 1% increase/decrease in the respective foreign currencies compared to functional currency of the Company would result in increase/decrease in the Company's profit before taxes for the year by approximately 0.89% and (0.89)% respectively.

As at March 31, 2023, every 1% increase/decrease in the respective foreign currencies compared to functional currency of the Company would result in increase/decrease in the Company's profit before taxes for the year by approximately 1.16% and (1.16)% respectively.

44. BUSINESS COMBINATION AND ACQUISITIONS(i) Amalgamation of Mindtree Limited ('Amalgamating Company') with the Company

During the year ended March 31, 2023, the Board of Directors of the Company, in its meeting held on May 6, 2022, approved The Scheme of Amalgamation and Arrangement under Sections 230 - 232 and other applicable provisions of the Companies Act, 2013 for amalgamation of Mindtree Limited ('Amalgamating Company') with the Company ('Scheme').

The aforesaid Scheme was sanctioned by Hon'ble National Company Law Tribunal (NCLT) Mumbai Bench vide order dated September 19, 2022 and Bengaluru Bench vide order dated November 04, 2022 and November 10, 2022. The Scheme has become effective on November 14, 2022 upon filing of the certified copy of the orders passed by NCLT with the relevant Registrar of Companies. In terms of the Scheme, the name of the Company has been changed from 'Larsen & Toubro Infotech Limited' to 'LTIMindtree Limited' w.e.f. November 15, 2022 and all the assets, liabilities, reserves and surplus of the Amalgamating Company have been transferred to and vested in the Company. The Appointed Date of the Scheme was April 1, 2022.

Accounting Treatment

The amalgamation had been accounted in accordance with "Pooling of interest method" as laid down in Appendix C -'Business combinations of entities under common control' of Ind AS 103 notified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as specified in the scheme, such that:

(a) All assets and liabilities of the Amalgamating Company are stated at the carrying values as appearing in the standalone financial statements of Amalgamating Company.

(b) The identity of the reserves had been preserved and were recorded in the same form and at the carrying amount as appearing in the standalone financial statements of Amalgamating Company.

(c) The inter-company balances between both the companies had been eliminated.

(d) Financial information had been restated for the accounting impact of merger, as stated above, as if the merger had occurred from April 1, 2021.

The difference, if any, between the amount recorded as share capital issued and the amount of share capital of the amalgamating company has been transferred to capital reserve and presented separately from other capital reserves.

Consequent on the Scheme coming into effect and in accordance with the Share Exchange Ratio enshrined in the Scheme, on November 25, 2022 the Company had allotted its 120,417,607 equity shares of H 1/- each (fully paid-up) (including 20,341 treasury shares allotted to LTIMindtree Employee Benefit Trust) to the equity shareholders of erstwhile Mindtree Limited as on the 'Record Date' fixed for the said purpose.

(ii) Amalgamation of Powerupcloud Technologies Private Limited, Lymbyc Solutions PrivateLimited and Cuelogic Technologies Private Limited ('Transferor Companies') with the Company

The Scheme of Arrangement ("the Scheme") for amalgamation between Powerupcloud Technologies Private Limited, Cuelogic Technologies Private Limited and Lymbyc Solutions Private Limited ('Transferor Companies'), wholly owned subsidiaries, with the Company ('Transferee Company') was approved by the Mumbai Bench of National Company Law Tribunal and the Company received the certified true copy of the order on July 06, 2023. The Company has filed the same with Registrar of Companies, Mumbai on July 11, 2023 which is the effective date of amalgamation. The Appointed date of the Scheme is April 1, 2023.

The amalgamation has been accounted under the "pooling of interests method" in accordance with Appendix C of Ind AS 103 'Business Combinations', at the carrying value of the assets and liabilities of the Transferor Companies as included in the consolidated Balance Sheet of the Company as at the beginning of the previous year. Accordingly, the following accounting treatment has been followed to give effect of the merger:

(i) The assets, liabilities and reserves of the Transferor Companies have been incorporated in the financial statements at the carrying values as appearing in the financial statement of the Transferee Company.

(ii) I nter-Company balances and transactions have been eliminated and resultant adjustment has been adjusted in the other equity.

(iii) 17,328 equity shares of H 10 each fully paid in Powerupcloud Technologies Private Limited, held as investment by the Transferee Company stands cancelled.

(iv) 10,000 equity shares of H 10 each fully paid in Cuelogic Technologies Private Limited, held as investment by the Transferee Company stands cancelled.

(v) 1,145,421 equity shares of H 10 each fully paid in Lymbyc Solutions Private Limited, held as investment by the Transferee Company stands cancelled.

(vi) The financial information in the financial statements in respect of prior period have been restated as if business combination had occurred from the beginning of the prior years in the financial statements and goodwill of H 1,531 has been recognised in the standalone balance sheet of the Company.

45. SEGMENT REPORTING

I n accordance with Ind AS 108 'Operating Segment', the Company has disclosed Segment information on consolidated basis for the year ended March 31, 2024 and March 31, 2023 respectively, and is available as part of the audited consolidated financial statements of the Company.