e) Provisions and Contingencies:

A provision is recognized if, as a result of a
past event, the Company has a present legal
or constructive obligation that is reasonably
estimable, and it is probable that an outflow of
economic benefits will be required to settle the
obligation. Provisions (excluding retirement
benefits) are not discounted to their present
value and are determined based on the best
estimate required to settle the obligation at
the Balance Sheet date. These are reviewed
at each Balance Sheet date and adjusted to
reflect the current best estimates.

Onerous Contracts:

Provisions for onerous contracts are recognized
when the expected benefits to be derived by
the Company from a contract are lower than
the unavoidable costs of meeting the future
obligations under the contract. The provision is
measured at present value of the lower of the
expected cost of terminating the contract and
the expected net cost of continuing with the
contract. Before a provision is established, the
Company recognizes any impairment loss on
the assets associated with that contract.

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

The Company does not recognise a contingent
liability but discloses its existence in the
financial statements.

f) Foreign Currency:

Functional Currency:

Items included in the financial statements of
Company is measured using the currency of
the primary economic environment in which
the entity operates (‘the functional currency’).
These Standalone Financial Statements
are presented in Indian rupees (INR), which
is Company’s functional and presentation
currency.

Transactions and Translations:

Foreign currency transactions are translated
into the functional currency using the exchange
rates at the dates of the transactions. Foreign
currency denominated monetary assets and
liabilities are translated into the relevant
functional currency at exchange rates in effect
at the Balance Sheet date. The gains or losses
resulting from such translations are included
in net profit in the Statement of Profit and
Loss. Non-monetary assets and non-monetary
liabilities denominated in a foreign currency
and measured at fair value are translated at
the exchange rate prevalent at the date of the
transaction.

Transaction gains or losses realized upon
settlement of foreign currency transactions
are included in determining net profit for the
period in which transaction is settled. For the

purpose of presenting standalone financial
statements, the assets and liabilities of the
Company’s foreign operations are translated
at exchange rates prevailing on the reporting
date. Income and expense items are translated
at the average exchange rates for the period,
unless exchange rates fluctuate significantly
during that period, in which case the exchange
rates at the date of transactions are used.
Exchange differences arising, if any, are
recognised in other comprehensive income
and accumulated in a foreign exchange
translation reserve.

OTHER ACCOUNTING POLICIES

a) Interest Income:

Interest Income is recognised using the
effective interest rate method.

b) Dividend Income:

Dividend income is recognized when the right
to receive payment is established.

c) Other Income:

Other Income is recognized when the right to
receive is established.

d) Government Grants:

Grants from the government are recognised
when there is reasonable assurance that:

(i) the Company will comply with the
conditions attached to them; and

(ii) the grant will be received.

e) Financial Instruments:

i) Initial Recognition:

The Company recognizes financial assets
and financial liabilities when it becomes
a party to the contractual provisions of
the instrument. All financial assets and
liabilities are recognized at fair value
on initial recognition, except for trade
receivables which are initially measured
at transaction price. Transaction costs that
are directly attributable to the acquisition
or issue of financial assets and financial
liabilities that are not at fair value through

profit or loss, are added to the fair value on
initial recognition. Regular way purchase
and sale of financial assets are accounted
for at trade date.

ii) Subsequent Measurement:

a) Non-derivative financial instruments:

(i) Financial instruments measured at
amortized cost:

A financial instrument is subsequently
measured at amortized cost if it is
held within a business model whose
objective is to hold the asset in order
to collect contractual cash flows, and
the contractual terms of the financial
asset give rise on specified dates to
cash flows that are solely payments of
principal and interest on the principal
outstanding.

The computation of amortized cost
is done using the effective interest
rate (EIR) method. Amortized cost is
calculated by taking into account any
discount or premium and fees or costs
that are an integral part of the EIR. The
EIR amortization is included in interest
income in the Statement of Profit and
Loss.

(ii) Financial Assets at fair value
through other comprehensive
income:

A financial instrument is subsequently
measured at fair value through other
comprehensive income if it is held
within a business model whose
objective is achieved by both collecting
contractual cash flows and selling
financial assets and the contractual
terms of the financial asset give rise
on specified dates to cash flows that
are solely payments of principal and
interest on the principal amount
outstanding. Further, in cases where
the Company has made an irrevocable
election based on it’s business model,
for it’s investments which are classified

as equity instruments, the subsequent
changes in fair value are recognized in
Other Comprehensive Income.

(iii) Financial Assets at fair value
through profit and loss:

A financial asset which is not classified
in any of the above categories is
subsequently fair valued through profit
or loss.

(iv) Financial Liabilities:

Financial Liabilities are subsequently
carried at amortized cost using the
effective interest rate method. For trade
and other payables maturing within
one year from the Balance Sheet date,
the carrying amounts approximate fair
value due to the short maturity of these
instruments.

(v) Investment in subsidiaries:

Investment in subsidiaries is carried
at cost in the separate financial
statements.

b) Share Capital:

Ordinary shares are classified as equity.
Incremental costs directly attributable to
the issuance of ordinary equity shares are
recognized as a deduction from equity, net
of any tax effects.

c) Derivatives:

Derivatives include foreign currency
forward contracts. It is measured at fair
value. Fair value of foreign currency forward
contracts are determined using the fair
value reports provided by the respective
banks.

Derivatives are initially recognised at fair
value on the date a derivative contract
is entered into and are subsequently re¬
measured to their fair value at the end of
each reporting period. The accounting for
subsequent changes in fair value depends
on whether the derivative is designated as

a hedging instrument, and if so, the nature
of the item being hedged. Such fair value
changes are recognised in the Statement
of Profit and Loss.

iii) Derecognition of financial instruments:

The Company derecognizes a financial
asset when the contractual rights to the
cash flows from the financial asset expires
or it transfers the financial assets and the
transfer qualifies for derecognition under
Ind AS 109. A financial liability (or a part of
a financial liability) is derecognized from
the Company’s Balance Sheet when the
obligation specified in the contract is
discharged or cancelled or expires.

iv) Offsetting of financial instruments:

Financial assets and financial liabilities
are offset and the net amount is
reported in the balance sheet if there
is a currently enforceable legal right to
offset the recognised amounts and there
is an intention to settle on a net basis, to
realize the assets and settle the liabilities
simultaneously.

f) Impairment:

i) Financial Assets:

The Company assesses at each date of
balance sheet, whether a financial asset
or a group of financial assets is impaired.
Ind AS 109 requires expected credit losses
to be measured through a loss allowance.
The Company recognises lifetime expected
losses for all contract assets and / or all
trade receivables that do not constitute a
financing transaction. For all other financial
assets, expected credit losses are measured
at an amount equal to the twelve-month
expected credit losses or at an amount
equal to the life time expected credit losses
if the credit risk on the financial asset
has increased significantly, since initial
recognition.

ii) Non-financial assets:

Intangible assets and property, plant and
equipment:

Intangible assets and 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 required 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 or depreciation) had no
impairment loss been recognized for the
asset in prior years.

After impairment, depreciation is provided
on the revised carrying amount of the asset
over its remaining useful life.

g) Fair value of financial instruments:

The Company’s accounting policies and
disclosures require the measurement of fair
values for financial instruments.

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

fair values. The management regularly reviews
significant unobservable inputs and valuation
adjustments. If third party information is used
to measure fair values, then the management
assesses the evidence obtained from the third
parties to support the conclusion that such
valuations meet the requirements of Ind AS,
including the level in the fair value hierarchy in
which such valuations should be classified.

When measuring the fair value of a financial
asset or a financial liability, the Company uses
observable market data as far as possible. Fair
values are categorised into different levels in a
fair value hierarchy based on the inputs used in
the valuation techniques as follows:

Level 1: quoted prices in active markets for
identical assets or liabilities.

Level 2: inputs other than quoted prices
included in Level 1 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.

If the inputs used to measure the fair value of
an asset or a liability fall into different levels
of the fair value hierarchy, then the fair value
measurement is categorised in its entirety in
the same level of the fair value hierarchy as
the lowest level input that is significant to the
entire measurement.

The Company recognises transfers between
levels of the fair value hierarchy at the end of
the reporting period during which the change
has occurred. All methods of assessing fair
value result in general approximation of value,
and such value may never actually be realized.

Refer to Note 34(a) in the Financial Statements
for the disclosure on carrying value and fair
value of financial assets and liabilities. For
financial assets and liabilities maturing within
one year from the Balance Sheet date and
which are not carried at fair value, the carrying
amounts approximate fair value due to the
short maturity of these instruments.

h) Earnings per share:

Basic earnings per equity share are computed
by dividing the net profit/(loss) attributable
to equity holders of the Company by the
weighted average number of equity shares
outstanding during the year. Diluted earnings
per equity share are computed by dividing the
net profit attributable to the equity holders
of the Company by the weighted average
number of equity shares considered for
deriving basic earnings per equity share that
could have been issued upon conversion of all
dilutive potential equity shares.

The dilutive potential equity shares are
adjusted for the proceeds receivable had the
equity shares been actually issued at fair value
(i.e. average market value of the outstanding
equity shares). Dilutive potential equity shares
are deemed converted as of the beginning
of the period, unless issued at a later date.
Dilutive potential equity shares are determined
independently for each period presented.

i) Income taxes:

Income tax expense comprises of current and
deferred income tax. Income tax expense is
recognized in the Statement of Profit and
Loss for items recognised in the Statement of
Profit and Loss. Income tax relating to items
recognised outside the Statement of Profit and
Loss is recognised outside the Statement of
Profit and Loss (either in Other Comprehensive
Income (OCI) or in Equity). Current tax items
are recognised in correlation to the underlying
transactions either in OCI or directly in equity.

Current Tax:

The income tax expense or credit for the period
is the tax payable on the current period’s
taxable income based on the applicable
income tax rate for each jurisdiction adjusted
by changes in deferred tax assets and liabilities
attributable to temporary differences and to
unused tax losses.

The current income tax charge is calculated on
the basis ofthe tax laws enacted or substantively
enacted at the end of the reporting period

in the countries where the company and its
subsidiaries operate and generate taxable
income. Management periodically evaluates
positions taken in tax returns with respect to
situations in which applicable tax regulation
is subject to interpretation and considers
whether it is probable that a taxation authority
will accept an uncertain tax treatment. The
Company measures its tax balances either
based on the most likely amount or the
expected value, depending on which method
provides a better prediction of the resolution of
the uncertainty.

) Deferred Tax:

Deferred income tax assets and liabilities
are recognized for all temporary differences
arising between the tax bases of assets and
liabilities and their carrying amounts in the
financial statements.

Deferred tax assets are recognized for unused
tax losses, unused tax credits and deductible
temporary differences to the extent that it is
probable that future taxable profits will be
available against which they can be used.
Deferred tax assets are reviewed at each
reporting date and are reduced to the extent
that it is no longer probable that the tax benefit
will be realized; such reductions are reversed
when the probability of future taxable profits
improves.

Deferred income tax assets and liabilities are
measured using tax rates and tax laws that
have been enacted or substantially enacted
by the Balance Sheet date and are expected to
apply to taxable income in the years in which
those temporary differences are expected to
be recovered or settled. The effect of changes
in tax rates on deferred income tax assets and
liabilities is recognized as income or expense
in the period that includes the enactment
or substantive enactment date. A deferred
income tax asset is recognized to the extent
that it is probable that future taxable profit
will be available against which the deductible
temporary differences and tax losses can
be utilized. Deferred income taxes are not

provided on the undistributed earnings of
subsidiaries and branches where it is expected
that the earnings of the subsidiary or branch
will not be distributed in the foreseeable
future.

The company has adopted lower tax rate
as prescribed u/s 115BAA from the FY 20-21
onwards.

k) Statement of Cash Flows:

The Statement of Cash Flows has been
prepared under the ‘Indirect method’ as set
out in Ind AS 7 ‘Statement of Cash Flows’,
whereby profit for the period is adjusted for
the effect of transactions of a non-cash nature,
any deferrals or accruals of past or future
operating cash receipts or payments and
item of income or expenses associated with
investing or financing cash flows. The cash
flows from operating, investing and financing
activities of the Company are segregated.

Cash and Cash Equivalents in the Statement of
Cash Flows comprise cash at bank and in hand
and fixed deposits with an original maturity of
three months or less, which are subject to an
insignificant risk of changes in value.

l) Dividends:

The final dividend on shares is recorded
as a liability on the date of approval by the
shareholders, and interim dividends are
recorded as a liability on the date of declaration
by the Company’s Board of Directors.

m) Lease:

Where the company is a lessee:

Assets and liabilities arising from a lease are
initially measured on a present value basis.
Lease liabilities include the net present value
of the following lease payments.

(i) Fixed payments (including in-substance
fixed payments), less any lease incentives
receivable.

(ii) Variable lease payments that are based on
an index or a rate, initially measured using
the index or rate as at the commencement
date.

(iii) Amounts expected to be payable by the
Company under residual value guarantees.

(iv) The exercise price of a purchase option
if the Company is reasonably certain to
exercise that option.

(v) Lease payments to be made under
an extension option if the Company is
reasonably certain to exercise the option,
and

(vi) The exercise price of a purchase option
if the Company is reasonably certain to
exercise that option.

Lease payments to be made under reasonably
certain extension options are also included in
the measurement of the liability.

Lease payments are allocated between
principal and finance cost. The finance cost is
charged to profit or loss over the lease period
so as to produce a constant periodic rate
of interest on the remaining balance of the
liability for each period.

Variable lease payments that depend on sales
are recognised in profit or loss in the period
in which the condition that triggers those
payments occurs.

Right-of-use assets are measured at cost
comprising the following:

(i) The amount of the initial measurement of
lease liability

(ii) Any lease payments made at or before
the commencement date less any lease
incentives received

(iii) Any initial direct costs

(iv) Restoration costs

n) Segment reporting

Operating segments are reported in a manner
consistent with the internal reporting provided
to the Chief Operating Decision Maker. The
Company’s operations predominantly relate
to software validation and verification services
relating to banking and financial services and
insurance industry and accordingly, this is the
only primary reportable business segment.

The segment sales information is provided on
a geographical basis classified as India and the
rest of the world.

o) Cash and cash equivalents

For the purpose of presentation in the
statement of cash flows, cash and cash
equivalents includes cash on hand, deposits
held at call with financial institutions, other
short-term, highly liquid investments with
original maturities of three months or less that
are readily convertible to known amounts of
cash and which are subject to an insignificant
risk of changes in value, and bank overdrafts.

p) Trade and other payables

These amounts represent liabilities for services
provided to the Company prior to the end of the

financial year which are unpaid. The amounts
are unsecured and are usually paid in line with
agreed timelines. Trade and other payables are
presented as current liabilities unless payment
is not due within 12 months after the reporting
period. They are recognised initially at their
fair value and subsequently measured at
amortised cost.

q) Rounding of amounts:

All amounts disclosed in the financial
statements and notes have been rounded off
to the nearest millions as per the requirement
of Schedule III, unless otherwise stated

e) Rights, preferences and restrictions attached to Equity shares

The Company has only one class of equity shares having a par value of Rs.10/- per share. Each holder of
equity share is entitled to one vote per share held. The dividend proposed by the Board of Directors is
subject to the approval of the Shareholders in the Annual General Meeting except in case of interim
dividend. In the event of liquidation, the shareholders are eligible to receive the remaining assets of
the Company after distribution of all preferential amounts, in proportion to their shareholding.

As per provisions of Section 69 of the Companies Act, 2013, Capital Redemption Reserve is to be created
when Company purchases (buy back) it’s own shares out of the free reserves for an amount equal
to the nominal value of shares (Share Capital Extinguished) so purchased. Accordingly during the
Financial year ended March 31, 2020 an amount of Rs. 4.61 Millions, i.e., the share capital extinguished
had been transferred from Retained Earnings to Capital Redemption Reserve.

Note 15.2: Capital Reserve

The debit balance of capital reserve of Rs. 1,206.21 Millions is on account of the Amalgamation and
restructuring in the previous years.

Note 15.3: Securities Premium

This balance has been recognised on issue of 334,250 equity shares of Rs.10/- each at a premium of Rs.
20/- each, by EEIPL vide an erstwhile Scheme of Amalgamation to Assystem International S.A. during
the financial year 2009-10.

Note 15.4: General Reserve

The Company had transferred a portion of its net profit to the General Reserve, on a voluntary basis
during the previous years.

The cumulative exchange differences arising from translating the financial statements of a foreign
operation from its functional currency into the reporting currency of the parent company during the
year.

Note 15.6: Retained Earnings

Retained Earnings are the profits that the Company has earned till date, less any transfers to General
Reserve, dividends or other distributions paid to shareholders.

Note 16: Lease Liabilities

The Company has entered into operating leases on its office buildings. These leases have terms of 2 to
10 years. Future minimum contractual rentals payable under non-cancellable operating leases as at
March 31, 2026 is Rs. 1.99 Millions (Previous Year: Rs.30.28 Millions)

The incremental borrowing rates derived by a valuer, on the basis of the borrowing rate for each lease
contract for the remaining life of the lease contract, adjusted with the credit profile of the Company,
are used for each of the office buildings separately and the average lessee’s incremental borrowing
rate applied to lease liabilities recognised in the balance sheet at the date of initial application ranges
from 7.74% to 12.27% (March 31, 2025 7.74% to 12.52%).

As per the information available with the Company, there has been no transactions with the companies
struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956 during
the year (Previous Year - Nil)

Note 19.4: Dues of Micro & Small Enterprises

Disclosure of trade payables and other liabilities is based on the information available with the Company
regarding the status of the suppliers as defined under the “Micro, Small & Medium Enterprises
Development (MSMED) Act, 2006”. There is no amount overdue to Micro & Small Enterprises on
account of principal amount together with interest for current year ended March 31,2026.

Note 24: Revenue from Operations (Contd.)

The Company derives its revenue across two categories of contracts - Fixed Bid contracts and Time &
Material (T&M) contracts. The Company has identified a single reportable segment namely ‘Software
Validation, Verification, Development and engineering/consultancy & other services.’ as disclosed in
Note 41 to the Standalone Financial Statements. The Company has disclosed revenue generated by
geographical market which is provided only as per the specific requirement of Ind AS 108 for a single
reportable segment.

c) There is no revenue recognised in the reporting period for performance obligations satisfied in
previous periods.

d) Transaction price allocated to the remaining performance obligations

The aggregate value of transaction price allocated to unsatisfied (or partially satisfied) performance
obligations is Rs.93.93 Millions (Previous Year: Rs. 16.59 Millions)which is expected to be recognised
as revenue in the next year. Remaining performance obligation estimates are subject to change and
are affected by several factors, including adjustments for currency.

e) Performance obligations and remaining performance obligations

The remaining performance obligatio0n11 disclosure provides the aggregate amount of the
transaction price yet to be recognized as at the end of the reporting period and an explanation as to
when the Company expects to recognize these amounts in revenue. Applying the practical expedient
as given in Ind AS 115, the Company has not disclosed the remaining performance obligation related
disclosures for contracts where the revenue recognized corresponds directly with the value to the
customer of the entity’s performance completed to date, typically those contracts where invoicing
is on time and material basis and in the case of fixed bid contracts with an original expected project
duration of less than one year.

g) Effective April 01, 2025, the Company has changed its business model with respect to customer
contracts executed through its subsidiaries due to which the revenue from such eligible contracts
are now included in the subsidiaries only. Consequently, the revenue for the quarter and year
ending March 31, 2026 from end customers for such contracts form part of the consolidated financial
statements of the Company and are not included in the standalone financial statements.

Note 31.1: On November 21, 2025, the Government of India notified the four Labour Codes with immediate
effect, consolidating 29 existing labour laws into a unified framework. The Labour Codes introduce
a revised and uniform definition of “wages,” necessitating a reassessment of employee benefit
obligations. The Company has evaluated the implications of the revised wage definition, resulting in an
incremental impact of Rs.111.43 million relating to gratuity and Rs. 35.85 million relating to compensated
absences. Considering the impact arising out of legislative amendments is an event of non-recurring
nature, the Company has presented this incremental amount as “Impact of New Labour Codes” under
“Exceptional Item” in the Financial statement for the year ended March 31, 2026. The Company continues
to monitor the developments pertaining to Labour Codes and will evaluate additional impact if any on
the measurement of liability pertaining to employee benefits.

Note 33.1

a) Compensated Absences

The Company provides for the encashment of leave or leave with pay to offshore employees.
The employees are entitled to accumulate leave subject to certain limits, for future availment/
encashment. The liability is provided based on the number of days of unutilized days of leave at each
Balance Sheet date on the basis of year-end actuarial valuation using projected unit credit method.
The scheme is unfunded.

Note: 33.2:

(i) The Company has no legal obligation to settle the deficit in the funded plans with an immediate
contribution or additional one off contributions. The Company intends to continue to contribute
to the defined benefit plans based on short term expected pay-outs in line with the actuary’s
recommendations.

Expected contributions to post-employment benefit plans for the year ending 31 March 2026 are
INR 106.50 ( March 31, 2025 INR 69.86).

(ii) Usefulness & methodology adopted for sensitivity analysis

Sensitivity analysis is an analysis which will give the movement in liability if the assumptions were
not to be true on a different count. This only signifies the change in the liability if the difference
between the assumed & the actual is not following the parameters of the sensitivity analysis.

Note 34: Financial Instruments

a) Fair Values and Risk Management

The following table shows the carrying amounts and fair values of financial assets and financial
liabilities, including their levels in the fair value hierarchy. It does not include fair value information
for financial assets and financial liabilities not measured at fair value if the carrying amount is a
reasonable approximation of fair value.

The fair values of those financial instruments which are currently measured at Amortized cost are
estimated to be same as that of their fair values and vice versa

The Management assessed that trade receivables, cash and cash equivalents, other financial assets,
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.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined
using valuation techniques which maximise the use of observable market data and rely as little as
possible on entity-specific estimates. If all significant inputs required to fair value an instrument are
observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument
is included in level 3.

There have been no transfers among Level 1, Level 2 and Level 3 during the current year and previous
year.

b) Measurement of Fair Value

The Company uses Discounted Cash Flow valuation technique (in relation to Fair Value of asset
measured at amortised cost) which involves determination of present value of expected receipt/
payment discounted using appropriate discounting rates. The fair value so determined are classified
as Level 2.

c) Financial Risk Management

The Company’s principal financial liabilities, comprise trade and other payables. The main purpose of
these financial liabilities is to finance its operation. The Company’s principal financial assets include
trade and other receivables, cash & cash equivalents and other bank balances that are derived
directly from its operation. The Company also holds FVTPL investments and enters into derivative
transactions.

The Company’s activities are exposed to a variety of financial risks, like credit risk, market risk and
liquidity risk. The Company’s primary risk management focus is to minimise potential adverse effects
of market risk on its financial performance. The Company’s risk management assessment and
policies and processes are established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk
assessment and management policies and processes are reviewed regularly to reflect changes in
market conditions and the Company’s activities. The Board of Directors and the Audit Committee is
responsible for overseeing the Company’s risk assessment and management policies and processes.

(i) Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument
or customer contract, leading to a financial loss. Credit risk encompasses of both, the direct risk
of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit
risk is controlled by analysing credit limits and creditworthiness of customers on a continuous
basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial
instruments that are subject to concentrations of credit risk principally consist of trade receivables,
investments, derivative financial instruments, cash and cash equivalents, bank deposits and other
financial assets. None of the financial instruments of the Company result in material concentration
of credit risk. The Expected credit loss was analysed for all the financial assets and it was concluded
to be Nil except for trade receivables and unbilled revenue.

Credit risk on cash and cash equivalents is limited as the Company generally invests in Fixed deposits
with banks having high credit ratings.

Trade Receivables

The average credit period on such sale of services ranges from 1 day to 90 days depending on the
nature of the service. The customer credit risk is managed by the Company’s established policy,
procedures and control relating to customer credit risk management. Credit quality of a customer is

assessed based on the individual credit limits which are defined in accordance with this assessment
and outstanding customer receivables are regularly monitored. The Company’s receivables turnover
is quick and historically, there was no significant defaults on account of those customers in the past.

Ind AS requires an entity to recognise in profit or loss, the amount of expected credit losses (or
reversal) that is required to adjust the loss allowance at the reporting date to the amount that is
required to be recognised in accordance with Ind AS 109. The Company assesses at each date of
statements of financial position whether a financial asset or a group of financial assets is impaired.
Expected credit losses are measured at an amount equal to the 12 month expected credit losses or
at an amount equal to the life time expected credit losses if the credit risk on the financial asset has
increased significantly since initial recognition.

The Company has used a practical expedient by computing the expected credit loss allowance for
trade receivables based on a provision matrix. The provision matrix takes into account historical credit
loss experience and adjusted for forward-looking information. The expected credit loss allowance
is based on the ageing of the receivables that are due and rates used in the provision matrix. The
Company has computed the credit loss allowance based on the Expected Credit Loss model which
excludes transactions with its wholly owned subsidiaries and group companies, where the credit
risk assessment does not result in a need for a provision towards expected credit loss.

To manage the credit risks arising from customers, the Company periodically assesses the financial
reliability of customers, taking into account the financial conditions, current economic trends, and
analysis of historical bad debts and ageing of accounts receivable.

An impairment analysis is performed at each reporting date using a provision matrix to measure
expected credit losses. The provision rates are based on days past due for groupings of various
customer segments with similar loss patterns. The calculation reflects the probability-weighted
outcome, the time value of money and reasonable and supportable information that is available at
the reporting date about past events, current conditions and forecasts of future economic conditions.

The Company has receivables from related parties (Group receivables) in respect of the services
provided to the Group and the credit risk in respect of these receivables are remote.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of
financial assets. The Company does not hold collateral as security. The Company evaluates the
concentration of risk with respect to trade receivables and contract assets as low, as its customers
are located in several jurisdictions and industries and operate in largely independent markets.

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The
objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds
are available for use as per requirements. The Company manages liquidity risk by maintaining
adequate reserves, banking facilities, by continuously monitoring forecast and actual cash
flows, and by matching the maturity profiles of financial assets and liabilities. The Company has
established an appropriate liquidity risk management framework for it’s short term, medium
term and long term funding requirement.

The following tables detail the Company’s remaining contractual maturity for its financial
liabilities with agreed repayment periods. The tables have been drawn up based on the
undiscounted cash flows of financial liabilities based on the earliest date on which the Company
can be required to pay. The tables include both interest and principal cash flows.

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market prices. Such changes in the values of financial instruments may
result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and
other market changes. The Company’s exposure to market risk is primarily on account of foreign
currency exchange rate risk.

a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of change in market interest rates. In order to optimize the Company’s position
with regards to interest income and interest expenses and to manage the interest rate risk,
management performs a comprehensive corporate interest risk management by balancing the
proportion of fixed rate and floating rate financial instruments in its total portfolio. The Company
does not have significant interest rate risk.

b) Foreign Currency exchange rate risk

The fluctuation in foreign currency exchange rates may have potential impact on the Statement
of Profit and loss, where any transaction references more than one currency or where assets/
liabilities are denominated in a currency other than the functional currency of the Company.
Considering the countries and economic environment in which the Company operates, its
operations are subject to risks arising from fluctuations in exchange rates in those countries. The
risks primarily relate to fluctuations in USD, EURO, GBP, AED and SGD against the functional
currency of the Company. The Company evaluates the impact of foreign exchange rate
fluctuations by assessing its exposure to exchange rate risks.

Foreign currency sensitivity:

The Company is mainly exposed to fluctuations in USD, GBP, EURO, AED, and SGD. The
following table details the Company’s sensitivity to a 5% increase and decrease against the
USD, GBP, EURO, AED, and SGD. 5% is the sensitivity used when reporting foreign currency
risk internally to key management personnel and represents management’s assessment of the
reasonably possible change in foreign exchange rates. The sensitivity analysis includes only net
outstanding foreign currency denominated monetary items and adjusts their translation at the
period end for a 5% change in foreign currency rates. A positive number below indicates an
increase in profit or equity where the Rupee strengthens by 5% against the USD, GBP, EURO,
AED, and SGD. For a 5% weakening against the USD, GBP, EURO, AED, and SGD there would be
a comparable impact on the profit or equity.

The Company manages its capital to ensure that it will be able to continue as a going concern while
maximizing the return to stakeholders. The Company is not subject to any externally imposed capital
requirements.

The Company does not have any debt as at March 31, 2026 and March 31, 2025 and therefore the debt
equity ratio has not been presented. Lease liabilities amounting to INR 78.52 Millions (March 31, 2025:
297.98 Millions) has not been considered as a debt.

The amount of exchange gain included in the Statement of Profit & Loss is Rs.157.70 Millions (Previous
Year: Gain of Rs.34.72 Millions).

Note 40: Corporate Social Responsibility

The Company has spent Rs. 25.55 Millions during the current year (Previous Year: Rs. 24.83 Millions) as
per provisions of Section 135 of the Companies Act, 2013 towards Corporate Social Responsibility (CSR)
activities grouped under Note 30 ‘Other Expenses’.

a) The Gross amount required to be spent by the Company during the year is Rs.25.55 Millions(Previous
Year: Rs. 24.83 Millions)

b) Amount spent during the year on:

Note 41: Segment Information

The Chief Operating Decision Maker (CODM) evaluates the performance of the Company based on
revenue and operating income in one segment i.e. Software Validation, Verification, Development and
Engineering/Consultancy & other services. Accordingly, as per Ind AS-108, “Operating Segments” the
Company has only one business segment and hence segment information has not been separately
disclosed.

The geographic information analyses the Company’s revenue and Non-Current Assets by the
Company’s country of domicile and other countries. The Company is domiciled in India. In presenting
the geographical information, revenue in the disclosure below is based on the geographic location
where the service is rendered. Non-Current Assets other than financial instruments and deferred tax
assets in the disclosure below are based on the geographic location of the Non-Current Assets.

Foot Note: Reason for variance (exceeding 25%)

(i) Current Ratio - Increase in current asset due to increase in cash & bank balance and decrease in
employee payables resulted into net increase in the ratio.

(ii) Trade payables turnover ratio - Decrease is due to reduction in expenses and trade payable increase
in current year.

(iii) Net capital turnover ratio - Decrease is due to increase in current asset in current year.

(iv) Return on investment - Decrease is due to NIL investment as at the balance sheet date in current
year.

Note 44: Additional Regulatory Information

a) The Company does not have any Benami property, where any proceeding has been initiated or
pending against the Company for holding any Benami property.

b) The Company has not been declared as willful defaulter by any lender who has the powers to
declare a company as willful defaulter at any time during the financial year or after the end of the
reporting period but before the date when financial statements are approved.

c) The Company has not revalued any of the immovable properties during the year.

d) The Company has not revalued intangibles during the year.

e) The Company has complied with the number of layers prescribed under clause 87 of section 2 of
Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017.

f) The Company has not advanced or loaned or invested funds (either borrowed funds or share
premium or any other sources or kind of funds) to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise)
that the Intermediary shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

g) The Company has not received any funds from any person(s) or entity(ies), including foreign
entities (Funding Party) with the understanding that the Company shall;

(i) directly or indirectly lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

h) During the year there are no approved schemes or arrangements which has been approved by the
Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

i) The Company does not have any transaction not recorded in the books of account, that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax
Act, 1961.

j) The Company is not a Section 8 Company and has not received any grants or donations during the
year.

k) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial
year ended March 31, 2026

Note 44: Additional Regulatory Information (Contd.)

l) There has been no charges or satisfaction yet to be registered with Registrar of Companies beyond
the statutory period.

m) The Company has not obtained any borrowings in security of its current assets from any banks or
financial institutions

Note 45: Disclosure on Subsidiaries

Pursuant to the approval of the Board of Directors of Expleo Solutions Limited, the holding company,
vide its meeting held on May 23, 2024, wholly owned subsidiary Expleo Solutions FZE, Dubai was
liquidated on March 24, 2025. The proceeds on liquidation amounting to Rs. 101.83 Mn was realised
on March 29, 2025. The profit on closure of subsidiary of Rs. 95.71 Mn is accounted in the Standalone
Statement of Profit and Loss during the year ended March 31, 2025.

On June 27, 2025, the Board of Directors of the Company have approved for Incorporation of a wholly
owned subsidiary in Gift City, Gujarat, India, which is being developed as a global financial services
hub by Government of India for providing financial services. Incorporation is subject to the approval of
International Financial Services Centre Authority (IFSCA). The Company is in the process of completing
the regulatory formalities to incorporate the Company and commence the operations.

Note 46: Dividend

During the previous year the Board of Directors of the company has declared interim dividend of
Rs.50 /- per equity share on February 06, 2025 which was paid on February 27, 2025.