Notes to Accounts of Fujiyama Power Systems Ltd.

Mar 31, 2025

j. Provisions and contingent liabilities

Provisions art recognised when Ihe Company has a jireserit obligation (legal or constructive) as a result of a past event, it is probable thal an outflow of resources embodying
economic benefits will be required lo settle Ihe obligation and a reliable estimate caji be made of the amount of the obligation. When llie Company expects some or all of a
provision lo tw reimtairsed^ for example, under ail insurance corn rad, line reimbursement is recognised as a separate assets but only when llie reimbursement is virtually certain.
I''hc expense relating to a provision is presented in the Standalone Statement of Profit and Loss net of any reimbursement.

If the el led of I tie Lime value Of money is material, provisions are discounted using a current pre-lax rate Ihat re Heels, when appropriate, Ihe risks specific to the liability. When
discounting is used, the increase in the provision due to the passage of lime is recognised as a finance cost.

If the Compiaiiy has a contract that is onerous, the present obligation under Ihe contract is recognised and measured as a provision. However, before a separate iirovision lor an
onerous contract is established, the Company recognises any impairment loss that has occurred on assets dedicated to lial contract.

An onerous contract is a contract under which the unavoidable cosls (i.e., the cods that the Company cannot avoid tiecause it has the contract) of meeting I tie obligations under
Llie contract exceed the economic benefits expected to be received under it. The unavoidable costs under a contract relied Die lead net cod of exiting from the coutrjcL which
is the lower of llie cost of fulfilling i and any compensation or pen allies arising from lailure lo fulfil it. llie cost of fulfilling a contract comprises Ihe costs that relate directly to
the contract (i.e., both incremental cuds and an allocation of costs directly related to contract activities).

A contingent liability is a possible obligation that arises Irorri pud events whose existence will t« confirmed by Ihe occurrence Or non-occurrence o f one or more uncertain future
events beyond the control of Ihe Company or a present obligation that is not recognized because it is not probable lhal an outflow of resources will be required to settle die
obligation. A contingent liability also arises in extremely rare cases where there is a liability dial cannot be recognized because il cannot be measured reliably. The Company
docs not recognize a contingent liability tint discloses its exigence in the Standalone Financial Statements.

Provisions and contingent liability arc reviewed at each Balance Sheet.

hi respect of financial guarantees provided by Ihe Company to third parlies, the Company considers IhaL il is more likely than not that such an amount will riot be payable under
the guarantees provided.

k. ftrl Imnml and oilu-r rmployw ta''iii''M s
Short term empJoyi''c IwellTiIs

All employee benefits expected to be settled wholly within twelve months of rendering llie service arc classified as diort-tcnn employee

benefits. When an employee has rendered service to llie Company during sn accounting period, die Company recognises llie undiseounted amount of short-term employee
benefils expected to be paid in exchange for that service as an expense unless another hid AS requires or permits the inclusion of the benefits in the cost of an asset. Benefits
such as salaries, wages and short-term compensated absences, bonus and cx-gratia etc. are recognised in Standalone Statement of Profit and Loss in the period in which the
employee renders the r cl Kit''d service.

k. RHinnirnl and other ™iplo)oⁱ Ix-m-ril-s front''d J
Defined caintrihiiJUmi plans

Eligible enifdoyees of llie Company in In£li» partidpfite in a defined contribution plan (Provident Fund) in accordance with the regiilalury requirements in lndi:i. Holh llie
employee arid (lie Company contribute to the fund at a verified percentage of the employee''s sal ar-

The Company has no fnrlher ohligalirii under defined criiirfrulmn plans beyond I tic Contributions made under these plans.

Defined hern-til plans

A ill¹ fined benefit plan is a post-erriploymenl benefit plan oilier ifian a denned contribution plan - ‘Hit Company tins an obligation towards gratuity. a defined benefit retirement
plan covering eligible employees. The plan provides fora lump sum payment to vested employees

al. retirement, death wtiile in employment or on termination of employment of an :accounts for die liability for gratuity benefits payable in future based on an independent actuarial valuation report using die projected unit credit method as at die year end.

Re-measurements, comprising of actuarial sains and losses, die effect of the asset ceiling, excluding amounts included in net interest on die net defined benefit liability and the
return chi plan assets (excluding ariicHinls included in net interest on llie net defined benefit liability), arc recognised immediately in llie Standalone Balance Sheet with a
corresponding debit or Credit to retained earnings through OCl in die period in which they occur. Kc-mcasm einentk are riot recla^ified to Standalone Statement of Profit and
Lofts in Siibsequ ait periods.

Past service costs arc recognised in Standalone Statement of Profit and Loss on die earl ier of:

a) The date of the plan amendment or curtailment, and

b) The date dial the Company recognises related rc-aructuriig costs

Net interest is calculated by applying die discount rate lo the net defined benefit liability or asset. The Company recognises die follow ing changes in die net defined benefit
obligation as ail expense in I lie Standalone Statement of Profit and loss

a) Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements, and

b) Net interest expense or income.

l. FtnancJii] Instruments

financial assets and financial liabilities arc recognised when die Ccmpany becomes a party to the contract embodying die related financial instruments. All financial assets,
final icial liabilities and financial guarantee contracts arc initially measured al transaction cost and where such values are different from die fair value, at fair value. Transaction
costs dial are directly attributable to the acquisition or issue of financial assets and financial liabilities (oilier drill financial assets and financial liabilities at fair value through
profit aid loss) arc added to or deducted from the fair value measured on initial recognition of financial asscL or financial liability. Transaction costs directly attributable to the
acquisition of financial assets and financial liabilities al fair value through profit and loss are immediately recognised in llie Standalone Statement of Profit and Loss.

Financial assets are classified, at initial recognition as subsequently measured a! amortised cost and fair value through Standalone Statement of Profit and Loss. The classification
of financial assets al initial recognition depenefc on the financial axel''s contractual cadi flow characteristics and the Company''s business model for managing them. With the
exception of trade receivables that do not contain a significant financing component or for which llie Company has applied die practical expedient, the Company iritis lly
measures a financial asset at its fair value plus, in the case of a financial asset net al fair value through profit or loss, transaction costs. Trade receivables that do not contain a
significant financing component or for which the Company has applied I he practical expedient arc measured al the transaction price as disclosed under revenue recognition
policy.

In order for a financial asset to be classified and measured at amortised cost, it needs to give rise to cadi flows that are ''solely payments of principal and interest (SPPI)'' on the
principal amount outstanding. This assessment is referred lo as Ifle SPPI lest and is performed al mi instrument level. Financial nsscls with cash Hows that are not SPPI are
classified and measured at fair value through profit or loss, irrespective of the business model

Effective Interest method

''file effective interest method is a method of calculating Hie amortised cost of a financial inshiimenl and of al locating interest income or expense over llie relevant period- llie
effective interest rale is the rate that exactly discounts future cash receipts or payments through llie expected life of llie financial instrument,or where appropriate, a shorter
period.

(i) Financial assets

Financial assets al uumrlLscd otic!

Financial a^iets are subsequently measured at amortised cod if tliese financial assets are held wilfiin a business model whose objective is to hold Ihcse assets in order lo collect
Contractual cash flows and the contractual terms of the financial asset give rise on sfiecified dates to cadi Hows that are solely payments of principal and inlered on I tie principal
amount outstanding.

Financial assets murasuredl al fair value

Financial a^ets are measured at fair value through oilier comprehensive income if these financial assess are held within a business model whose objective is to hold III esc assets
in order lo collect contractual cash Hows and lo sell these financial assets and the contractual lemisof llie final icial asset give rise on specified dites to cash Hows that arc solely
payments of principal and intered on the ^Hincipal amount outstanding.

Financial asset riot measured at amortised cod Or at fair value through other comprehensive income is carried at fair value through profit or loss.

For financial assets maturing wiLfi in one year from the Balance Sheet date, the carrying amounts approximate fair value due Lo Llie short maturity of these instruments.
InipaiErnmiiill of linamria! assets

Loss allowance for exacted credit losses is recognised for financial assets me Haired :l an ionised cod and fair value through I tie Stanch lone Statement of Profit and Loss

For Ira.le receivables only, I tie Company recognises expected lifetime losses using I tie simplified approach permillcd try I rid AS-109, from initial recognition of III t receivables.

For financial assets whose credit risk has riot significantly increased since initial recognition, kiss allowance ecpial lo twelve monllis expected credil losses is recognised. Loss
allowance equal lo the lifetime expected credit losses is recognised if the credit risk on the Financial instruments has significantly increased since initial recognition.

For financial assets maturing within one year from the Balance Sheet date, the carrvine amounts atroroxiiiiatcs fair value due to the short maturity of these instruments.

¦;i) Hiinuvhil (cunr-d)

Lk-rcfl^mKIhHi of financial msscls

The Company de-recognises a financial asset only when Hie con Iraclual rights Lo ''.he cash flows from Hie financial asset expire, or it transfers the financial asset and (lie transfer
qualifies for dc-reoJgriilion under hid AS 109.

If I tic Company ridllier transfers nor retains subtfanlially all Hie risks and rewards of ownership and continues to control (he transferred asset, (lie Company recognises ils
rclained interest in the assets and an associated liability for amounts it may have to pay.

If llic Company retains sub^amially all (he risks and rewards of ownership of a transferred financial asset. Hie Company continues to recognise Hie financial asset and als^
recognises a collateralised borrowing for the proceeds received.

Oil de-recognition of a financial asset in its entirely. Hie difference between Hie carryitg amount measured at tlic dale of de-recognition and the consideration received is
recognised iri Standalone Statement of Profit or LOSS-

fii) Hnumnal liabililies and rcpiHy instruments

('']ossification as debt or equity

financial liabilities and equity instruments issued by tlic Company arc classified according lo the substance of the contractual arrangements entered into and tlic definitions of a
financial liability and an equity instrument.

Equity instruments

An equity inslru merit is aiy contract Hial evidences a residual interest in the assets of the Company after deducting all of ils liafri lilies. Equity instrunienls are recorded at (lie
proceeds received, net of direct issue costs.

Financial nubilities

l inancial liabilities are initially measured at fair value, net of transaction costs,, and are subsequently measured at amortised cost, using liie effective interest rate method where
the lime value of money is significant. Interest bearing bank loans, overdrafts and issued debt are initially measured at fair value and are subsequently measured at amortised
cost using Hie effective interest rate method Any difTcimce between Hie proceeds (net of transaction costs) and tlic settlement or redemption of borrowings is recognised over
the term of the borrowings in llic Standalone Statement of Profit and Loss.

For trade and oilier payables maturing within one year ffom the Balance Steel dale, tlic carrying amounts approximate fair value due to the short maturity of these instruments.
De-recognition

A financial liability is derecognised when the obligation under tlic I iabi lily is discharged or cancelled or expires. When an existing financial liability is replaced by another from
the same lender on substantially different lemis. or the terms of an existing liability are substantially modified, such an exchange or modification is treated as tlic de-recognition
of Hie original liability ami the recognition of a new liability. ''Hie difference in Hie respective Lurrying amounts is recognised in Hie Standalone Statement of Profit and Loss.

Of! setting of financial in slrumi-nls

Financial assets and financial liabilities are offset and Uie net amount is reported in the Standalone Rylance Srieel if there is a currently enforceable legal righl to offset the
recognised amounts and there is an intent km to settle on a net basis, to realise the assets and settle ike liabilities simultaneously,

m. Segment reporting

Operating segments are identified as those components of the Company (a) that engage in tmsincss activities lo earn revenues and incur expenses tin eluding transactions with
any of the Company''s other components): (b) whose operating results arc regularly reviewed by like Company''s Chi ef Operating Decision Maker (CGDM) to make decisions
about resource allocation and performance assessment and (c) for which discrete (Inancial information is available. ''Hie account iiig policies consistently used in Uie preparation
of Standalone Financial Statements are also applied lo record revenue and expenditure in individual segments Assets, liabilities, revenues and direct expenses in relation to
segments arc categorised based uri items Hial are iiidividually identifiable lo Hial segment, while other items, wherever allocable, areafipnrliuuedlu (lie segmcnl On ail appreq iri ale
basis Certain items are not specifically allocable lo individual segmenls as the underlying services arc used interchangeably The Company therefore helieves that il is not
practical lo provide segment disclosures relating Lo such items and accordingly such items are separately disclosed as ''uualhtcaLed''

An operating Segment is classified as rcjiorlable segment if reported revenue (including inler-segment revenue) or absolute amount of result or assets exceed 1.0% or mare of Hie
combined tot al of all llie Operating segments.

CODM evaluates liie performance of Hie Company based on Hie single operative segment as cloud based intelligent customer engagement software soliiious lo retail chain
cperalors. ''therefore, lliere is only one reportable segment called CUM services in accordance willi Hie requirement of hid AS HIS ''Operating Segments".

n. Cush and rash equivalents

Cash and cash equivalent in the Standalone Balance Sheet comprise casli at banks and on hand and short-4erm deposits with an original maturity of three months or less dial are
readily convertible to a known amount of cash and which are subject Lo an insignificant risk of changes in value.

o. Share bast''d payments

Certain employees of die Company arc entitled to share- based payments, whereby employees render services as consideration for equitj instruments of the Company tequUn¬
settled transactions).

Tlic Cost of equity-settled transactions is determined by the fair value at the dole when the grant is made using an appropriate Rlack-Scholes valuation modek

That cost is recognised. together with a corresponding increase in capital contribution from llic parent reserves in equity, over tlic period in which tlic performance anchor service
conditions are fulfilled in employee benefits expense. The cumulative expense recognised for eqpiiLy-seLLled transactions at each reporting dale nnlil ill e vesting dale reflects the
extent to which tlic vesting period has expired and die Company’s best estimate of Hie number of equity instruments Hial will ultimately vest. Tlic expense or credit in tlic

c. Stu IV h^SK''d piLVIELClllS (COIl! ft)

Standalone Statement of Profit and Loss for a period represents the movement in cumulative expense reeognlsed as at the beginning and end of that year and is recognised in
employee benefits expense.

Service and non-market performance conditions are not taken into acconnl when determining the grant dale fair value of awirds, hut the like! ilfeciodi of I lie conditions being met
i s assewed as part of Ihe Company''s besl climate of the number of mqu ity instruments that will ultimately vest.. Market performance conditions are reflected wilhiii I he grant
date fair value. Any oilier conditions attached to an award, hut without an associated service requirement, arc considered to be noi-vesaing conditions. Nonwesting conditions
are reflected in the fair value of an award and lead to an immediate expensing of ail award am less there are also service and or performance conditions.

No expense is recognised for awards that do not ultimately vest because nen-market performance and or service conditions have not been met. Where awards include a market
or non-vesting condition, the Irmsaclims arc treated as veiled in''espcctive of whether Ike market or non-vesting condition is satisfied, provided that all oilier per foimaiice and/or
service conditions arc satisfied.

When die terms of an equity-settled award are medified. the minimum expense recognised is the grant dale fair value of Ihe unmodified award provided the original vesting
terms of''the award arc met. An additional expense, measured as at the due of modification, is recognised for any modification tlial increases the total fair value of the share-
bastd payment transact ion. Or is otherwise beneficial to ihe employee. Where an award is cancelled by the Company or by Ihe counterparty, any remaining element of Ihe lair
value of Uie award is expensed immediately through profit or loss.

The dilutive effect of ouldanding options is reflected sis itklilioual share dilution in the computation of diluted earnings per share

p. Foreign vurmicbrs

Tlie Ccuipany''s Stuidalqcie Financial Statements are presented in ?, which is also Ihe Compfllliy’s functional currency-
Transtictkuis tmrt balnncrs

Foreign currency trail actions arc translated into Hie functional currency rising the exchange rates at lire dates of lire transactions

Monetary assets and liabilities denominated in foreign currencies are translated at the spot rates of exchange at the reporting date. Exchange differences arising on settlement or
translation of monetary items arc recognised in Standalone Statement of Profit and Loss.

Nommonetary items I hat are measured in terms of historical cost in a foreign currency are translated using tire exchange rales at the dates of ihe initial S Transactions. Nori-moriclary
items measured at fair value in a foreign currency arc translated using the exchange rates at tlie date when ihe fair value is determined. Tire gain or loss arising on translation of
non-morietary items measured at fair value is treated in line with the recognition of 111 e gain Or loss on the change in fair value of lire item (i.e.. Iran slat ion differences on items
whose tair value gain or loss is recognised in OCl or profit or loss are also recognised in GCI or profit or loss, respectively).

q. Earnings per share

Basie earnings per share is calculated by dividing tlie net profit or loss for the period attributable to equity shareholders of the Company by the weighted average number of
equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent lliai they arc entitled to participate in dividends
relative to a fully paid equity share during the report iug period. Tlie weighted average number of equity sh ares outstanding during the period is adjured for events such as bonus
is&ue, bonus el email in a rights issue, share split, and reverse share split (consolidation of shares) that have changed tlie number of equity Glares outstanding, without a
corresponding change in resources.

Tor Uic purpose of calculating diluted earnings per ^iarc. die net profit or lo^ for the period attributable to equity shareholders of the Company and the weighted average number
of shares outstanding during the period are adjusted for the die els of all potential dilutive equity shares.

r. Initial Public Offering (IPO) Transaction,COrf

Tlie costs of an IPO that involves both issue and listing of new shares and listing the existing equity shares has been accounted for as follows:

* Incremental costs that are directly attributable to issuing new shares liras been deferred until successful completion of IPO upon which it iJiall be deducted from equity
(net of any income tax benefit ).

* Costs that relate to the slock market listing, dr rare otherwise not iiiCremeiilal rami directly attributable to issuing new shares, has hem recorded as ail expense in Ihe
standalone statement of pirafit and loss as and when incurred

* Costs that relate to both share i ssuauce aid I i st ins has been allocated between those fun ct ions on a rat icna I and consistent basis i .e. based on proportion of new shares
issued to the total number uf (new and existing) shares litfcd

2.4 Mafmal ramiimlirig, judgement s. cstimrates and assumptions

Hie preparation of the Company''s Standalone Financial Statements requires management to make judgements, estimates and assumptions that affect the reported amounts of
revenues, expenses, assets and liabilities, and tlie accompanying disclosures, and the disclosure of contingent liabilities. Actual results could differ from those climates.
Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future
periods.

Tlie estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and
fuLure periods aJTecied.

(I) Estimate* and assumptions

''file key assumptions concerning the future and oilier key sources of estimation uncertainly at Ihe reporting date, Ihat have a significant risk of causing a material adjinJinenl to
the carrying amounts of assets and liabilities within tlie next financial year, arc described below.

Tlie Company based its as^implicais and estimates on parameters available when Ihe Standalone Financial Slalements were prepared Existing circumstances and assumptions
about future developments, however, may change due to market changes or circumstances arising that arc beyond tlie control of the Company. Such changes are reflected in the
rassnm|H ions when they occur.

p) Fsliiuulre anti assumptions (ronFc!)

a. Fair value measurement oTflnandal Instruments

When llie fair values of financial assets: and financial liahi lilies recorded in llie Standalone Balance Sheet cannot be measured based mi cpmted prices ia active markets, I hear lair
value is measured using vain at kin techniques including die Discounted Cadi flows Model (DCF model) Tlie inputs In three models arc taken from observable markets where
possible, but where this is not feasible, st decree of judgement is retired in establishing fair values. Judemerits include considerations of inputs hilTi ns liquidity risk, credit
risk and volatility. Changes in assumptions about lliese factors could affect tJic reported fair value of financial instruments. Refer note 35 for further disclosures.

h. C''onliingiirrEes

Contingent liabilities may arise from the ordinary course of business in relation to claims against the Company, includiig legal and contractual claims. By their nature,
contingencies will be resolved only when one or more uncertain future events occur or tail lo occur. The assessment of the exigence and potential quantum of contingencies
inherently involves the exercise of significant judgement and the use of estimates regarding tlic outcome of future events. Refer note 32 for further disclosures.

c. Defined benefit plans {gratuity benefits)

Tlic cost of Uie defined benefit gratuity plan and I lie pic-erit value of the gratuity obligation arc determined using actuarial valuations. An actuarial valuation involves making
various assumptions dial may differ from actual developments in Ihc fid lire. These include the determination oft lie discount rate: future salary increases and mortality rates. Due
to I lie complexities involved in the valuation and ils long-term nature, a defined benefit obligation is highly sensitive to diaitges in these assumptions. All assumptions are
reviewed id each reporting date

''Hie parameter most subject to change is the discount rate. Iii determining the appropriate discount rate for plan operated in India, the management considers the interest rates of
government bonds where remaining maluriLy of Such bond correspond to expected term of defined Lienefil ohligsf ion. The mortality rale is based oil publicly available morlaJity
laides for India "Ihose mortality tallies lend lo change only at interval ill response to demographic changes. Future Hilary increases and gratuity increases arc based On expected
future inflation rates for India.

Further details atiout grainity obligations are given in note 29.

d. Provision for expected credit losses of trade receivables and contract assets

The Company estimates the credit allowance as per practical expedient based on die historical credit loss experience as enumerated in note 9(1),

e. Leases - KSUimiihi" I lie inciemeiital buj r cm Jug rate

Tlic Company cannot readily determine Die interest rate implicit in the lease,, therefore, it uses its incremental borrowing rate (1BR) to measure lease liabilities. ''Hie IJ3R is the
rale of inlered Dial Die Company would have to pay to borrow over a similar term, and with a similar security, the funds necessary Lo obtain ai asset of a similar valute to the
right-of-use asset in a similar economic environment. ‘Hie 1BR therefore reflects what Die Company "wooId have to pay’, which retires estimation w hen no observable rates
arc available or when they need to be adjusted lo reflect (he terms and conditions of tlic lease. The Company estimates the IBR. using observable inputs (such as market interest
rates) when available and is required lo make certain entity-spedfic estimates Refer note 31 for further disclosures.

f. Share-based payments

Tlic Company measures die cost of equity settled transactions with employees at tlic grant dace using a. Black Scholcs model for General Employee Share Option Plan (GE5P)
and ''Capillary Employees Stock Option Scheme¹ - 2021 (CESP). Tins estimation also requires determination of the most appropriate inpuls to die valuation model including die
expected life of the share options, risk free interest rate, volatility, dividend yield and time value of money and making assumptions about them. Tlic assumptions and model
used fer estimating the fair value of die share based payments arc disclosed in note 30.

g. Capitalisation of Internally generated soft ware

Tlic Company tins identified certain intangible:; which arc twing internally generated. In the research phase of ;ui internal project, an entity cmuuL demonstrate that an intangible
asset exists that will generate probable future economic benefits. Therefore, this expenditure is recognised as an expaise when it is incurred. An intangible asset arising from
development (or from tlic development phase of an internal project) dial I be recognised if, and only if, ail entity can demonstrate all of the following:

(a) the technical feasibility of completing the intangible asset so that it will tve available for use or sale.

(b) its intention to complete tlic intangible asset and use or sell it.

(c) its ability lo use or tell llie intangible asset

(d) how tlic intangible asset w ill generate probable fiiturc economic benefits. Among ether things, tlic entity can demonstrate the existence of a. market for tlic output of the
intangible asset or tlic intangible asset itself or. if it is to be used internally, tlic usefulness of die intangible asset.

(c) tlic availability of adequate technical, financial and other resources to complete the development and to use or sell tlic intangible asset.

(f) its ability to measure reliably die expenditure attributable to tlic intangible asset during its development.

’flic Company had completed lhe research and acceptance phase and Die projects arc in the development phase, llie Company lias clone evaluation of Die internally generated
software and concluded on being treated as intangible assets. Refer note 4 for further disclosure.

h. Taxes

Deferred tax assets are recognised for unused tax losses to Die extent Dial it is probable Dial taxable profit will lie available againH which the same can be utilised. Significant
management judgement is required to detenu iue llie amount of deferred tax assets dial can Lie recognised. Leased upon the likely timing and Ihc level of future taxable profits
together with future tax planning strategics Refer note 27 for further disclosures.

Tlic OomfKuiy has carried forwarded lax lories. The Company neither have any taxable temporary difference nor any tax planning opportunities available that could [gully
support Die recognition of these losses as deferred tax assets. On this basis, the Company has determined Dial it cannot recognise deferred tax assets on Lhe tax losses carried
forward.

k. c ilsIl flow stutenueni

Cash flows arc reported using indirect method, whereby net profits-'' (loss) before lax is adjusted for tlic effects of transactions of a non-cash nature and any deferrals or accruals
of past or future cash receipts or payments mid items of income or expenses associated with investing or financing cadi Hows. Mil cash Hows from regular revenue generating
(operating activities), investing and financing activities of the Company are segregated.

2.5 RicthI proiioLuirnnonl

Minislry of Corpoiate Attains (“MCA") notifies new £ijL-u1ari:l£ oj amemliimts to the existme standards under Companies (Indian Acconiitiiig StandETiish Rjnlcs as issued from
time lo lime. Fur the yeur ended Mundi 51, 2025. MCA :i;is notified I ml AS 112 InsUnuiec CuiiLmets an d amendments to lid AS 116 - Leases, retains to sale ind Itiiehtde
tiansadtions. Hit Company has reviewed the new pronouncements and tua-scd oil its evaluation has determined llial il is not applicat>le to llie Company.

¹ Pirsuiiul to the approval of Board of Directors dated January 18, 2025, the Company approved the allotment flf94,785 equity shares efface valje eft 2 cadi at a price of t 326.7
per equity share f including securities premium of ? 52-1.7 per equity share j for an amen ml aggregating to ? -19.92 million on a private placement basis under the provisions of the
Companies Act, 2013 atid all oilier applicable laws and regulations

¹ Pnsuant to tlie approval of Board of Direc tors on miifcqile dates during like previous year ended March 31, 2021, llie Company had approved the allotment of 2,759,755 equity
shares of face value of? 2 cadi at a price of? 308 per equity share (including securities prcmiim of? 306 per equity share) for an amouiri apgrca.atiika.lo ? 850.00 million on a private
placement basis under ihc provisions of the Companies Act* 2013 and all oilier applicable laws and rcpnlalions-

'' lymjunl to the iqipnmil of llocrd of Director* dirt cd Mureli 28, 2021, 11 it Company had approved Lhc sil loLrriciiL of 11,052,223 equity *hurc* of lace value oft! 2 each at n price of?
44 per equity share Cinclud in.e securities premium of ? 42 per equity share) for an amount aggregating Id ? 436.29 million by way of right issue to the exiting shareholders under die
provisions of Companies Act, 2013 and all oilier applicable Iosvb and regulations duruig tlic previous year.

⁴ Pirsuant to tlie approval of Board of Direct ors dalcd January 29,2024 „ Ihc Company had approved die allotment of 435,065 equity shares of face value of ?2 each at a price of ? 308
per equity share i including securities premium of? 306 per equity share) for an aniouul aggregating to ? 131.00 million for consideration other than cash consequent to conversion of
cxlaual commercial borrowings to Capillaiy Technologies International Pic. Ltd., Ihc Holding Company during die previous year.

Pursuant 16 the approval of tlie Board of Directors, tlie Company had approved the conversion of Compulsory Convertible Debentures (CCDs) issued during the previous year ended
March 31, 2.024 into 5,524,350 equity shares of face value of ? 2 each at a price of ? 308 per equity share (including securities premium of? 306 per equity share) for an amount
aggregating to ? 1,701.50 million on a private placement basis under Lite provisions of Companies AcL 2013 and all other applicable laws and reguhtions.

'' Pirsuanl to (lie approval of Nomination and Remuneration Coniniltce dated November 15. 2023, tlie Company had approved the allotment of 571,064 equity shares arisen out of
exercise of vested employee stock options under Cap diary ESOP-2021 Scheme. The ESOPs exercised were offhee value of? 2 each m a price of? 307.80 per equity share (including
secuiLies premium of? 305.30 per equity share) for ari amount aggregating to ? 175.77 mill ion during the previous year.

(v) Rials! s, preference ;i1.11J resliictJofi Attached! to equity Ahrair-ps

The CompniTy has nth one class of equity Glares Iravins* par value of? 2 per share t March 31,2024: i 2 per slure). Each holder of equity shares is entitled to me vote per share. Tlsc
Company declares and pays dividends hi Indian Ri^tecs. The dividend proposed by the hoard of Directors is subject to line approval of like shardiolders in the ensuing Annual General
Med ing

Tn the event of liquidation of like Company the holders of equity shares will be eiriitlcd to receive remaining assets of the Company, alTcr distribution of all preferential amounts. Hie
distribution will be in proportion to the number of equity shares held by the shareholders.

fvi> Right?. preference and restriction attadml So preference shares

The Company had only one class of preference shares having par value of? 10 per share-

Each compulsorily convertible preference share had a par value of? 10 and was convertible at the option of I lie Company into equity shares of the Company prior to the expiry of 20
years from liie dale of such issuance.

Hie preference shares carried a dividend of 0.01% per annum. Dividend was to be paid as and ufieii it is paid and declared oil die equity slurcs. ''Jlie dividend rights are noil*
cumulative. The preference drarcs rank ahead of Uic equity shires in ''lie event of a liquidation.

The Company hud incurred cash looses during lie previous year ended March 31, 2024, which had refilled in substantial erosion of net worth of (he Company. ''lire management of
like Company basis its business plan as approved by the Board of Directors expec ted that there will be a significant increase in die operations of the Company that will lead to
improved cash flows ar.d long-term sustainability and the Company will be able to generate sufficient profit in fijture years to meet die operational requirements as they arise and to
meet il< liabilities :is and when I hey fall due- Further during the pervious year ended March 3 1,2024 llierr Irad heen ;i signi liirant reduction in (tie Icxs ¦icurrrd by I hr company and
corresponding increase in revenue earned. Accordingly, the standalone linanctal statements of the Company had been prepared on a going concern basis and do not include any
adjustment* relating to I he c?rryir® amount and claH*ificaiinn of rtspd n or the amount* and chins i Head ion of liahi lil ies that may lie necessary if the entity is triable to continue w a
going concern respectively.

.Nature and purpose or reserves

14.1 If i*iMined earnings

Retained earnings are the losses that the Company has earned till date, less any transfers to general reserve, dividends or oilier distributions paid to shareholder?. Retained earnings is
a tree reserve available to the Company and eligible for distribution to shareholders.

14.2 Capital eonlribnlion Irani the 1Eaiding, CtimpJUty

Hie Company''s Holding Company had a share option scheme tinder which it granted employee slock options to certain employees of the Company without any cross charge. Capital
contribution from t lie Holding Company is used to recognise the value of equity-sell led share-based payments provided to employees of the Company, including key management
personnel, as part of their rem.incrar:on, by the Holding Company, refer note 33 for fijrtJicr details.

14.3 Securities premium

''Ihr arnrurit received m QgOttiR of face value Off llir equity dcirfs i^c recognised in Securities Pmianim as prr I fie iimvimori Off Companies Aci. 74113 Thl* reserve is utilised in
accordance witJi die provisions of the Acl

14.4 Shar e bused payment reserve

Hi.: share hased payment reserve is used to recognise the grant date fair value of options issued to employees of llte Company under Kmployec Slock Option rlai.

IiLtrm-t Mild security notes to Borrowings;

The Company had enured, into debenture bust deed d^jLed March 29, 2023 lor issue of 6,000 (six thousand) hilly paid, unlisted, secured and redeemable non-convertible
debentures (NCD) of face value of? 1.00.000 each, aggregating to an amount of ? 600 million for general corporate purposes. As on March 31,202-1, the Company has issued
6,000 hilly paid, NCD, on a private placement basis, aggregaiing to an amount of? 600 million. Hie NCI3 c a tries- fixed coupon rate of ]4.$% per annum, payable monthly on
first of each niomli from the date of disbursement. The NCR shall mature cn April 01, 2023 and Ilie priicipal amount of NCD are payable in equal monthly instalment
¦¦I 1.1 iu Ei-i''ii. Hcptciidici 01,2023. The NCD ^eunctl by way of 111 Ml p;*i pa>u i_)t.u gc «i all ilie existing liemc, fixed, ii-.hi-liii ten! and Liiuml mishd^, im hiding any and all
intellectual property and die intellectual property rights will respect to these movables preseitt arid future, accounts. cashflows, receivables, book debLs. revenue, equipment,
inventory-, cpntraci ris^Jila or I''is^Jit to paynent of money, leases, license agaccn:cii(. franchise agreement*,. gtKxlwill, uncalled Capital, general intangible*!, dix''iBuciil.*,
instruments (including any promissory notes i, dialtel paper (whether tangible or intangibles), cadi, deposit accounts, fixtures, letter of credit rights (whether or not the letter
of credit is evidenced by writing) and all other investment property of the Company. The NCD is also secured by way of unconditional and irrevocable corporate guarantee
from Capillary Technologies luLcniaflimaI Pie Lid, Singapore, the Holding Company. The Company has re-paid the entire amount as at March 31,2025.

‘ Tlie Company ha; availed a bajik overdraft facility carrying interest rate linked to die interest rate of the underlying fixed deposits (provided -is security) 150 basis points.
The bank overdraft facility is payable on demand. Hie loans are secured by way ofltypothecation of stocks, bills, book debts and receivables and lixed deposits held as margin
mtiney« The xlalemeiriv ef cnrreiM aKxct* filed mnrilhly with bankt; lire ¦¦ agreementi; wiili the hook of af counts.

^J The Company has availed bank overdrahs facility from various banks, sales invoice discounting facility and pr&''post diiptnciiL credit facility carrying interest at RliPU as
reference rate and Secured Ovcrniglri Financing Kate (SOFR) plus 1"5 to ISO basis points per annum. ''Hie sales invoice discounting facility and pre-''post shipment credit
facilities is payable iri ISO days Iran Lhe disbursement of the loan or the due date of the discounted invoice, whichever is earlier. The loans are secured by way of
hypothecation of stocks, bills, book debts and receivables and fixed deposits held as margin moneys by a bank. Further, die loan is also secured by way of a pari pasu first
charge over all Ilie existing and liiure current assets (excluding receivables disentitled by other banks) and moveable lixed assets. The statement of current assets filed
monthly with banks are in agreements with the bool, of accounts.

The Company lias not been declared wilful defaulter bv anv basic or financial iislitiitiou or government or government authority.

28 Earning?/ (Loss) per share (FPS)

Basic EPS is calculated by dividing die proflt/fk)??) for the year attributable to equity shareholders of the Company by die weighted average number of equity shares
outstanding during the years Partly paid equity shares arc treated as a fraction of an equity sliare to the ctfait that they were nil it led to participate in dividends
relative to a lidly paid equity share during the reporting years. Hie weighted average m imbcr of equity shares outstanding during I lie years is adjusted for events such
as bonus issue, bonus element in a rights issue, share split, and reverse sliare split (consolidation of sliarcs) dial have changed llic nuinber of equity shares
outstanding, without a corresponding c hinge in m^ourees.

Hiluted EPS is calculated by dividing die profit attributable lo equity shareholders by the weiglitcd average nuinber of equity shares outstanding during the years phis
the weighted average number of equity shares dial would be issued on conversion of all tiie dilutive potential equity shares into equity shares.

Potential ordinary sliarcs arc antidilutive when their conversion to ordhiary sliarcs would increase earnings per share or decrease loss per share from continuing
operations. The calculation of diluted eariiiigs per share does not assume conversion, exercise, or other issue of potential ordinary sliarcs that would have an
antidilutive effect on camiiigs per sliare.

H4I6E

j| Hie txlnuzle of luLnre alary mere ax ex, cai-jdued in actuarial valuation. lake account ol''inflation,. xericrily, iircniclicn miicI oilier rdevanL lari orx .xncli a* xiqijdy ;mcl rbinnnd factors in Hie
employmcnl hiltket.

ii| Han characteristies and associated risks:

Tlie Gratuity scheme is n Re lined Benefit Pbu llial guox-id:.''* foe a lump Mini payment made on exit either by w;iy of retirement, death, dbahiliy or volirtary willul''au''nl. Tht henefits aredelined
on Hit bias of final salary ami the period of service and paid as lump sum at exit. Tin- Han design means the risks commonly affecting flic liabilities and the financial icsullstrc expected to be:

;i. RixcounL rate ride: Tlie rlelined benefit oklicalioa calculated in>e.va lErcounL rate taxed on novel imienl trends. Tf bend yields fall,. Lite defined Irene lit oltliuulion will lend to increase

b, Salary inflation risk: Timber Ilinii expected increases in salary will incieaxe Ibe defined huLtlil oMi^alian

c. Deiii»Ejnj»Jiic risk : Tlas is l.l»e risk of varialiiELy of rcsnuJlx due la unsystematic nature of decrements that include modality, withckawal, disability and rctimnenl. Hie effect Of lliese
decrements on tlie deiiKd lieiKtil diligalirai is ml sliaiidil Unwind anil depends upon lire ccinliciiilicii uf salay increase* discounL nle and sestinj criteria. Tl is inipuflaiiL ihiL to ovei stale
vrilhdau als because ii tlie financial analysis llte retirement benefit of a -Itort carter employee lypicaty costs less per year as compared to a long service employee.

10 Share Imsed payments

l>escinlpttoiii I''f she share payment airanatinenH

"lilt Company has Capillary Employee Slock Option Scheme - 2ti21 ("CESF") plan. The share-based payment arrangements of th* Company is is below:

A Capillary Employees Slock Opsiai Scheme'' 2021 fCESF'')

Hit shareholders of Hie Company have approved iht Capillary Employees Stock Option Schtme'' - 2021 (CESP). Tlit plan provides for the Issue of 7,175.000 options to eligible employees and
eligible cireclBis of lltt Capillary Croup. Capillary Croup shall mean She Cccnpaiy and its wholly owned subeirSarits, either existing or aa may be incorporated from linte loiintt and ita Holding:
Company ami my successor tump-uiy UicrcoE

Tlie §i3;iq is ackiiinisLered hy a Hoard of Directors of llie Company . nominalim ami mmmcrnliou coiiiinillee condiLiried by Hie H-oard (as Ihe case i:i;iy be] (Ailumistmlor) . Curler CFSP ill
employees are entitled to a err ml of opticus once lliey have Ineni in service and clipltle based on conditions determined liy die Adjiani^rztqf. Hie exercise price shall lie as raay be iklennined by
Ihe Aihidnistralar al Hie lime of gran I of ofilioiiK |ircvided dial ilieexercise price shall nol be nure Ilian llie fair market value Ofllie shares as on llie daLe of graml of options.

There -fall be- a minimum period of one (l)year between Ihe grant of options and vesting of options, with a maximum period of ten (iff) years from Iht date of grant of sudi options. Vesting of
cjilioiis would be siriqlecl to continued employment with the Coufriuy hihI I 111- tuitions would vesl cti a qua deity Imsis. Hie option graulec may exercise llw vested options as pts the scheme.

Wolew

1. liit transactions with related partite art made by the Company on terms equivalent to tho?t that prevail in amit length transactions. Outstanding balances at the year end art unsecured and
settlement occurs in cash.

2. As die liability for gratuity and leave encashment is provided on an actuarial basis for the Company as a whole. dit amount pertaining to remuneration to Ihe key managerial personnel art not
ascertainable and. dieretofe. not disclosed above.

3. In relied or die transactions with die related |nriies, Ike CTotnpany lias complied with tlie provisions Of Section I SB and Section 17T of (lie Companies Ac!, 201.1. where afijitncalilc, 2nd die
details have been dlsdnstd atove. as rtqurtd by tbt applicable accounting standard*.

A. Refer note 15 for burrowing willi regard t o securities given hy llie Holding Company for tin- loan facility availed by die Company.

S. the above infornialion has been determined to the extent such parties have been identified on die basis of mfomution available widi die Company.

34 Segment InTgrimdlcn UUsclosure pinoam So Lid AS JOS ''Operating Segments’

Ksdv of iilenciryJiiii cperamigvc^eittxTfpcrtsMe segments

Operating segments are identified as those components of the Company fa) that encage in business activities to earn revenues and incur expanses (inducing transactions with any of die
Company''s other components): (b) whose operating results are regularly reviewed by die Company''s Management Team who are Chief Operating Decision Maker (OODM) to make decisions
ahouL resource allocation and performance asses ¦i:ici;l and (<) for which discrete financial information is availalile. Hie accoiaitiig policies consistently used 111 tlie |Tq]aration of flic standalone
financial statements are also applied to recced revenue and expenditure in incfividual segments. Assets, liabilities, levcnues and direct expenses in reldion lo segmetfls are categorised based on
items dial, are iacivididly identifiable to llul segment,. wide oilier items, wherever nllocatde, are apportioned to llie segment cn 111 ap|irapriate ba.-as. Certain items are not s|H;cilirally allocable
lo individnnl segments as Lite iBidedying services are used interdiaugedriy. The Coir|my therefore lielievcs dial it is not practical Lo |woviiie segiiKiit. dseflosure* relating Lo such items and
accordiiudy such item* are separately disclosed as ‘unallocated¹.

Two or more operating segments may be aggregated into a angle operating segment if aggregation is consistent widi the core principle of Ind AS tots • operating Segments'' i.e. die segments
have siiiilar economic character i.dic? and die segments aie 3a mil m in the nalmc of services, type or class of customer for their service* etc. CQDM evaluates die perform nice of the Company
hased on llie saugje operative segment as cloud Insed inlelligeiB cujd oilier engagement. Kollware sduliom- lo relal chain operators fCRM Services''). Therefore, diere is only cue reportable
segment called CRM services in accordance with the reqiaremeiiL of Ind AS I0G "Operating Segment*¹¹.

Tlie I''crip''iny has presented segmeiflal infirinaliori in llie consolidated financial statements which are iiresenled in die same anunl report. Accord indy, in lemis of Parae.ia|ili -I of Snd AS I OB
''Opeialing Segment.*'' - nu dsclcc-uies lelaled lo 3-eienciil.s ue pie>e-iiled in lliese standalone financial ?lalcint!il*.

15 fin uncial iiislj''iiinr-n£>. i Cont''iLi

(0 FJnsinfJall risk mdnac.citicilI objectives *unf poUcles

''llit Company''s principal finincial liabilities comprise borrowing ¦ end lease liabilities. trade and ether payables. ''11k main purpose of the -t financial liabilities is to finance lit Company''s

operations. Hit Company''s principal financial assets include trade receivables. other financial assets aid cadi and bank balances derived from its operations.

la Iht course of its buaness_r die Company is exposed primarily to fluctuations in loetign cmrency exchange rale-, imtresl rales. Iiquidty and crerit nsk. which may adversely inipad tit lair
value Of its? financial iudnaueiils. Tie Coupaiay lias a risk tiiaiiageiueiri | ml icy which not only cover.''^- Ilic foreign exchange li''i:¦¦¦ bid also a I her ri.''kr associated willi llie financial lUttt mid

liabilities sueli isiiiLcicrt rale risks and crctif riaJtei. Tlic ¦ i & iimingcmcid policy ia appoved by die Demid of Directors. Hie risk management frtmcwOik aims to:

I''i''i create- n ?SaJhJc- finance pJnnrnrhg cnvironnu-nl by rednnno. lire impact of currency and inic-retl rnte flnclun lions. cm du- Ccfiipaiiy''fl hntrinc-ss plan,
liii achieve greater prediclaiiiHly lo earnings by deter mini nu; llie Hunncial value of lire expected earnings-in advance

Murkcl ride

Market risk is llie rid; lliai change.'' in market |irices e.g. foreign exchange rates,. inleresL rates and erpiiLy prices will affect the canqKitiy income cr llie value of its liohlings of financial
iastrumeiris. ''Use objective of market risk iiizuageiiKiil is to manage and control market risk exposures wiiliin acccfitahle parameters, while op li mi .a tig. the retuni.

(I i ?> Injfcel risk Interest race risk

Interest rate risk is die risk lAiaL the lair value or Hrliire c ids flows of a financial iusLmmcul will Uncinate because of cfiiuges in market isiBere.d rates. Hie fornpany’s cxgto.''iirc to die risk ol''
change-s in nurtc-t interest rales relates primarily Id iht Company''s debt obligations with floating interest talcs. Thus profits and cash flows from financing activities arc dependent on market
iatcresL rates, Further, any decline in llie credit ratting. ol''die Company will have an adverse impact on llie interest rales.

(If) Ci-tilt risk

CrecM risk refers Id the nek of default on He obligation tk Hit counterparty resulting in a financial loee. Tbc- maximum exposure lo Hit crtdl nsk at the reporting date is primuiJy from trade
receivablesamounting to i IMJ53 million and ’ 433.26 million teat March 31_r2025 and March 31 _r 2021 respectively. Trade receivableincludes both secured and unsecuredrtceivabies and are
derived from revenue earned from domestic and Ovcraea® hi 4 tmn&. Cicdfl iisis lint always been mui-igcd In- Uic Company Ihrougli Lokiiig security¹ deporih- and bank guoi-ejiIcc> bail cuefloaiicrs.
crerfl anwovnl^ edalilisliiig. creiil linats and cortimioudv monitoring the creclil worthiness of cudomer* lo wlicfli Hit Cofiqmiiy l''i ud ¦¦ crtdil lernis in the normal cotree Of lmsinejk. Hie
Company follow-c ''din|ilified approach* Tor recognition oT impairment loses allowance On Ira lr receivable, I ruder Hie simplified approicti, Hit Coni|nriy sloes nn| track Changes in crecfil ride.
Rnlher, il rcepGiuye>'' inpairineiiL loss allowance Ija-t-d on lilelime expected crecfit toieres nl ezdi i«i:¦ 1111m date,. sasrfil Ironi initial recoignlion. Hie cnnp''iiiy uses a provision matrix to determine
impairment loss allowance on the port folio el trade receivables. lire provision matrix lakes into account. available external and internal eredil risk factors and thr Company''s historical experience
wiili cndoiners An impairment analysis is iKrfonraid at each reporting dtle on an individual Isiris lKi.>~etl on lastfrical rfala of eredil lasses. i''rcrfl ride on cadi and cadi eqiavalents including
other bank balances, investment in mutual funds and debt seraritica is limited is the Company generally mvesi in deposits with banks, financial institutions and counterparties with high credit
ratings assigned by international and domestic crecfil rating agencies.

For ageing analysis of die Hadr receivables, refer Note 9.2.

(iii) The Company ha? ito such t