Notes to Accounts of Coreintegra Consulting Services Ltd.

e) Provisions, contingent liabilities and contingent assets

The Company creates a provision when there is present obligation as a result of a past event that probably requires an
outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent
liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an
outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of
outflow of resources is remote, no provision or disclosure is made.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer
probable that an outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent assets are not recognized in the standalone financial statements. However, contingent assets are assessed
continually and if it is virtually certain[that an inflow of economic benefits will arise, the asset and related income are
recognized in the period in whjgttflieSRimgenccurs. V / rd

f) Revenue Recognition

Revenue is recognized to the extent probable that the economic benefits will flow to the Company and the revenue can be
reliably measured.

Service Income

Income from compliance business is recognised in accordance with the terms and conditions of the Service contracts on
rendering of the services.

Revenue from staffing services is recognised at the gross value of the consideration receivable as per the substance of the
agreement on the basis of rendering of the services.

Interest Income

Interest income is recognised on a time proportion basis taking into account the amount outsatanding and the rate
applicable.

g) Employee Benefit Expenses

Retirement benefit in the form of Provident Fund is a defined contribution scheme and the Company has no obligation,
other than the contribution payable to the provident fund. The Company recognizes contribution payable to the
provident fund scheme as an expenditure, when an employee renders the related service.

The Company operates defined benefit plan for its employees, viz., gratuity. The costs of providing benefits under the
plan are determined on the basis of actuarial valuation at each year-end. Actuarial valuation is carried out for using the
projected unit credit method. The said plan requires a lump-sum payment to eligible employees (meeting the required
vesting service condition) at retirement or termination of employment, based on a pre-defined formula. The obligation
towards the said benefits is recognised in the balance sheet, at the present value of the defined benefit obligations less
the fair value of plan assets (being the funded portion). The present value of the said obligation is determined by
discounting the estimated future cash outflows, using interest rates of government bonds. The interest income /
(expense) are calculated by applying the above-mentioned discount rate to the plan assets and defined benefit
obligations liability. The net interest income / (expense) on the net defined benefit liability is recognised in the statement
of profit and loss. However, the related re-measurements of the net defined benefit liability are recognised directly in the
statement of profit and loss in the period in which they arise. The said re-measurements comprise of actuarial gains and
losses (arising from experience adjustments and changes in actuarial assumptions), the return on plan assets (excluding
interest).

Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee benefit
The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of
the unused entitlement that has accumulated at the reporting date.

The Company treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee
benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial
valuation using the projected unit credit method at the year-end. Actuarial gains/losses are immediately taken to the
statement of profit and loss and are not deferred.

The Company presents the leave as a current liability in the balance sheet, to the extent it does not have an unconditional
right to defer its settlement for 12 months after the reporting date. Where Company has the unconditional legal and
contractual right to defer the settlement for a period beyond 12 months, the same is presented as non-current liability.

h) Borrowing Cost

Borrowing costs that are attributable to acquisition or construction of qualifying assets are capitalized as a part of cost of
such assets upto the commencement of commercial operations. A qualifying assets is the one that necessarily takes
substantial period of time to get ready for intended use. Other borrowing costs are recorded as an expense in the year in
which they are incurred.

i) Leases

Lease transactions are accounted in accordance with Accounting Standard 19- Leases.

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased items are
classified as operating leases. Operating lease payments are recognized as an expense on straight fine basis in the
Statement of Profit and Loss. / ("]| .

j) Cash and Cash Equivalents

Cash and cash equivalents comprise cash at bank and in hand and short-term deposits with an original maturity of three
months or less (that are readily convertible to known amounts of cash and cash equivalents and subject to an
insignificant risk of changes in value) and funds in transit. However, for the purpose of the statement of cash flows, in
addition to above items, any bank overdrafts/ cash credits that are integral part of the Company''s cash management, are
also included as a component of cash and cash equivalents.

1) Segment Accounting
Business Segment:

The business segment has been considered as the primary segment

The Company''s primary business segments are reflected based on principal business activities, the nature of service, the
differing risks and returns, the organization structure and the internal financial reporting system.

k) Earnings per share

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings
per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of
shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

4.b Terms / rights attached to equity shares

The Company has one class of equity shares having a par value of INR 10 per share. Each shareholder is eligible for one
vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the
Company after distribution of all preferential amounts, in proportion to their shareholding.

4.c Bonus Issue of equity shares

During the year, the Company issued 76,52,500 equity shares of INR 10 each as bonus shares in the ratio of 500:1, by
capitalization of profit and loss INR 0.54 Lakhs, securities premium INR 764.71 Lakhs in accordance with the Companies
Act, 2013.

30 Gratuity and post employment benefit plans:

a) Defined contribution plans

The Company makes provident fund contributions for eligible employees. Under the schemes, the Company is
required to contribute a specified percentage / fixed amount of the payroll costs to fund the benefits. The
contributions as specified under the law are paid to the provident fund set up by the government authority.

The Company recognised INR 1,002.01 lakhs (PY: INR 1,027.89 lakhs) for provident fund contributions in the
Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the
Rules of the schemes.

b) Defined benefit plans
Gratuity plan

The Company makes annual contributions to the Employees'' Group Gratuity-cum-Life Assurance Scheme of the ABSLI
Group Unit Linked Plan (Gratuity) V04, a funded defined benefit plan for eligible employees. The scheme provides
payment to vested employees at retirement, death or on resignation/termination of employment of an amount
equivalent to 15 days salary for each completed year of service or part thereof in excess of six months. Vesting occurs
upon completion of five years of service. Gratuity expenses for employee under managed services for a majority of
clients are accounted on cash basis as it is being reimubursed by client on actual basis.

The following tables summarise the components of net benefit expense recognised in the statement of profit and loss
and the funded status and amounts recognised in the balance sheet for the respective plans.

31 Leases

Disclosures as per Accounting Standards (AS-19] on "Leases" are given below:

- The Company has taken various office premises under operating lease or leave and license agreement These are
generally non cancelable and ranges between 11 months to 3 years under leave and license, or longer for other lease
and are renewable by mutual consent or mutually agreeable terms.

-The Company has not sub-leased any of the above assets taken on lease.

-There are no provisions relating to contingent rent.

- The terms of renewal/ purchase option and escalation clauses are those normally prevalent in similar agreements.

- There are no undue restrictions or onerous clauses in the agreements.

- Operating lease expenses are expensed out in the year in which they are incurred.

38 The Company was converted from a Private Limited Company to a Public Limited company on October 14,2024. Pursuant
to Section 177 of the Companies Act, 2013 read with Rule 6 of the Companies (Meetings of Board and its Powers) Rules,
2014, the Company was required to constitute an Audit Committee from the date of such conversion, as its turnover
exceeded 1NR100 crore as at 31 March 2024.

The Audit Committee was formally constituted on March 27, 2025. Accordingly, certain related party transactions
undertaken between October 14, 2024 and March 31, 2025 were approved by the Board of Directors but not by an Audit
Committee as required under Section 177(4). These transactions were entered into in the ordinary course of business and
at arm’s length basis, and have been disclosed appropriately in Note 37 on related party transactions. Subsequently from 1
April 2025, Audit Committee has approved all the transactions.

The Company has taken steps to ensure compliance with the applicable provisions of the Companies Act; 2013 on a
prospective basis.

39 The Company is eligible for tax deduction under Section 80J)AA of the Income Tax Act 1961, which reduces the taxable
income in current and subsequent years.

40 In accordance with the provisions of Section 197 read with Schedule V and other applicable provisions of the Companies
Act 2013, the maximum remuneration payable to the managing director is as follows:

The members vide a Special Resolution dated October 07,2024 has approved the recommendation otlNR 120 lakhs tor 3
years effective from FY 2024-25 and commission not exceeding 5% of the EBITDA.

However, for the current financial year, the managing Director has waived the commission.

41 Other Statutory information

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

ii) The Company has not defaulted in payment to banks or financial institutions and the Company has not been
declared as wilful defaulter by any bank or any financial institutions.

iii) The Company does not have any transactions with struck off companies.

iv) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.

v) The Company has not made investments through more than one layer of investment company. ,

vi) Utilisation of Borrowed funds and share premium

The Company has not advanced or loaned or invested funds to any other person (s)or entity (ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

a) 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

b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

vii) The Company has not received any fund from any person (s)or entity (ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall:

a) 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

b) Provide any guarantee, security or the like on behalf ofthe Ultimate Beneficiaries.

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