The Company has acquired certain Land and Building under a lease arrangement for a period of sixty years at a premium of ' 0.50 Crores starting from December 4, 2000 for Land, ' 15.62 Crores starting from March 13, 2000 and ' 5.05 Crores March 1, 2003 for building and the same are being amortised over the lease period.
ii. Property, Plant and Equipment pledged as security against borrowings by the Company
Refer to Note 36 for information on property, plant and equipment pledge as security by the Company
iii. Contractual Obligations
Refer to Note 31 for disclosure of contractual commitments for the acquisition of property, plant and equipment.
iv Pursuant to the business transfer agreement between the 3i Group and the Azentio Group, immovable property of 3i Group
was to be transferred to Azentio Group against a receivable of ' 50 Crores in the financial year 2020-2021. In the current year, this agreement was rescinded and consequently, the property remained with the Group. The counterparty, Azentio Group is released from its obligation to pay the consideration. The property, which was earlier transferred by way of a slump sale in the financial year 2020-2021, is recognised in the books of 3i Infotech Limited in the current year, and has resulted in an exceptional gain of ' 23.09 Crores. The retrospective depreciation for the same is ' 15.64 Crores for the year 2021-22 which has been charged in the current year.
i. Significant Estimate : Useful life of Intangible Assets
Refer to sub note (n) of Note 2 ‘Significant Accounting Policies' .
ii. Intangible Assets with indefinite useful lives
The Entity provides IT based software solutions to variety of industry verticals which includes softwares meant for Banking industry, Insurance industry, Enterprise Resource Panning (ERP) softwares and softwares meant for financial service industry. These softwares have been capitalised as ‘Software Products - meant for sale' category under intangible assets. The Company based on the analysis of product life cycle studies, market and competitive trends assesses that the ‘Software Products - meant for sale' products will generate net cash flows for an indefinite period.
There are no projects in Other Intangible assets under development, which are overdue or has exceeded its cost compared to its original plan as at March 31, 2023.
The Company has started the concept of “Build” project, wherein it has planned a model of development of software / applications such as cloud, Artificial intelligence, BPAAS/KPAAS etc. These projects are typically expected to be ready in a period of 1 to 3 years. The management has considered that these products have an immediate market / economic value. The expenditure incurred are considered as “ Development “ Phase as it has already passed the research phase.
*Loans due by directors or other officers of the Company or any of them either severally or jointly with any other persons or amounts due by firms or private companies respectively in which any directors is a partner or a director or a member amounted to ' Nil (Previous year ' Nil).
** During the year, the Company has impaired its investment in 3i Infotech Saudi Arabia LLC and 3i Infotech Asia Pacific Pte Limited to the extent of ' 3.16 Crores and ' 4.19 Crores based on the valuation reports.
The recoverable value of the investment as per valuation report as on December 31, 2022 of 3i Infotech Saudi Arabia LLC and 3i Infotech Asia Pacific Pte Limited is ' Nil and ' 17.92 Crores respectively. As per the report, the value in use is greater than the fair value of investment and hence the recoverable value is value in use.
In case of 3i Infotech Saudi Arabia LLC, the liabilities exceeds the recoverable value of assets and hence the value in use Nil. The investment value is fully impaired.
In case of 3i Infotech Asia Pacific Pte Limited, the value in use is equal to the net assets of the subsidiary.
* The Company had held Series A, C and D Zero Coupon Redeemable Convertible Preference Shares in 3i Infotech Holdings Private Limited (together the ‘Preference Shares'), which got matured during the year on June 30, 2017. The said Preference Shares have then been renewed with same terms and are now having maturity date as March 24, 2025.
** Includes Unbilled Revenue from Related Parties as at March 31, 2023 of ' 4.92 Crores (as at March 31, 2022 of Rs NIL).
# Includes Interest Receivable from Related Parties as at March 31, 2023 of ' 28.58 Crores (as at March 31, 2022 of ' 24.50 Crores).
Trade or Other Receivable due from directors or other officers of the Company either severally or jointly with any other person amounted to ' Nil (Previous year ' Nil).
Trade or Other Receivable due from firms or private companies respectively in which any director is a partner, a director or a member amounted to ' Nil (Previous year ' Nil).
The Company offsets tax assets and Liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.
Business losses which arose in India of ' 87.98 Crores (Previous year ' 80.69 Crores) that are available for offsetting for eight years against future taxable profits of the Company. Majority of these losses will expire in March 2023.
Considering the probability of availability of future taxable profits in the period in which tax losses expire, deferred tax assets have not been recognised in respect of tax losses carried forward by the Company.
i) Terms / rights attached to equity shares
The Company has only one class of equity shares having a par value of ' 10 each. Each shareholder has right to vote in respect of such share, on every resolution placed before the Company and his voting right on a poll shall be in proportion to his share of the paid up equity capital of the Company. In the event of liquidation, the equity shareholders are entitled to receive the remaining assets of the Company after payments of preferential amounts in proportion to their shareholding.
iii) Shares held by holding/ ultimate holding company and / or their subsidiaries / associates
The Company does not have a holding company or ultimate holding company.
The Company has three share option schemes under which options to subscribe for the Company's shares have been granted to certain executives and senior employees.
The Share based payment reserve is used to recognise the value of equity settled share based payments provided to employees, including key management personnel, as part of their remuneration. Refer to Note 30 for further details of these plans.
Property, Plant and Equipment Reserve represents reserve created on revaluation of Leasehold Building and it is a non distributable reserve.
Property, Plant and Equipment Reserve transferred to retained earnings in earlier F.Y. 2021 to 2020-21 has now been reinstated due to non transfer of respective asset.
*Contract assets represents revenue accrued and not billed and unbilled revenues. Contract Liabilities represents Billing in excess of revenue
The aggregate value of performance obligations that are unsatisfied as at March 31, 2023 other than those meeting the exclusion criteria mentioned in note 2(g)is ' 74.23 Crores (' 54.03 Crores as at March 31, 2022) Out of this the Company expects to recognise revenue of around 57% within the next one year and remaining thereafter. This includes contracts that can be terminated for convenience without a substantive penalty since based on current assessment, the occurence of the same is expected to be remote.
(i) Leave Encashment
The Leave obligations cover the Company's liability for sick and earned leave.
The amount of the provision of ' 0.66 Crores (March 31, 2022: ' 0.59 Crores) is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations.
(ii) Post Employment obligations(a) Defined benefit plan - Gratuity
The company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of five years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied by number of years of service upto 10 years and 26 days salary multiplied by number of years of service beyond 11 years.
The gratuity plan is a unfunded plan and the Company makes contributions to recognised funds in India. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.
The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.
The Company's best estimate of future cash flows during the next 12 months is ' 11.93 Crores (as at March 31, 2022 : ' 12.07 Crores).
The average duration of the defined benefit plan obligation at the end of the reporting period is 4 years (March 31, 2022: 4 years)
(iii) Defined contribution plans
The Company also has defined contribution plans. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any contructive obligation. The expense recognised during the year towards defined contribution plan is ' 6.00 Crores (March 31, 2022: ' 4.39 Crores)
] SHARE BASED PAYMENTS (a) Employee option plan
The Company's Employee Stock Option Schemes are applicable to “Eligible Employees” as defined in the scheme which includes directors and employees of the Company and its subsidiaries. Currently, the Company has 3 schemes, ESOS 2000, ESOS 2007 and ESOS 2018 (as amended). ESOS Scheme 2000 and 2007 provide for issue of equity options up to 25% of the paid-up equity capital to eligible employees and ESOS Scheme 2018 provide for issue of equity options up to 15% of the paid-up equity capital to eligible employees.
The options granted under the ESOS scheme 2000 and 2007 vest in a phased manner over three years with 20%, 30% and 50% of the grants vesting at the end of each year commencing one year from the date of the grant and the same can be exercised within ten years from the date of the grant or five years from the date of vesting of options whichever is later by paying cash at a price determined on the date of the grant. The options granted under ESOS 2018 vest in a graded manner over a three year period, with 33%, 33% and 34% of the grants vesting in each year, commencing one year from the date of the grant and the same can be exercised within 5 years from the date of vesting. One Stock option if exercised will be equivalent to one equity share.
During the year ended March 31, 2013, the Board of Directors of the Company approved ESOS Plan -2013 under the existing scheme ESOS 2007. The plan consist of variations in certain terms with regard to vesting and certain other related matters in ESOS 2007. The options granted are convertible and one option is equivalent to one equity share each. This plan is applicable to all the new options granted to eligible employees for the year ended March 31, 2014.
During the year ended March 31, 2015, the Board of Directors of the Company approved ESOS Plan-2015 under the existing scheme ESOS 2007. The plan consists of variations in certain terms with regard to vesting and certain other related matters in ESOS 2007. The options granted are convertible and one option is equivalent to one equity share each. This plan is applicable to all the new options granted to eligible employees for the year ended March 31, 2015.
During the current year ended March 31, 2016, the Board of Directors of the Company approved ESOS Plan-2015 under the existing scheme ESOS 2007. The plan consists of variations in certain terms with regard to vesting and certain other related matters in ESOS 2007. The options granted are convertible and one option is equivalent to one equity share each. This plan is applicable to all the new options granted to eligible employees for the year ended March 31, 2016.
The option granted under ESOS Plan -2013 under ESOS Plan-2014 and ESOS Plan-2015 Vesting Criteria for ESOS plan 2013 and 2014 under ESOS Scheme 2007 is in the ratio of 33%, 33% and 34% vesting in each year, commencing one year from the date of grant.Vesting Criteria for ESOS plan 2015 under ESOS Scheme 2007 is in the ratio of 50%, 25% and 25% vesting in each year, commencing one year from the date of grant.
The existing options (other than those granted under ESOS plan-2013, ESOS plan-2014 & ESOS plan-2015) would continue to be governed by the existing terms.
During the year ended March 31, 2023, 21,36,500 Stock Options were granted (88,07,500 Options granted for the year ended March 31, 2022).
During the year, the Board of Directors of the Company have approved the ESOP scheme 2023 on February 2, 2023 and subsequently the shareholders have approved the same by postal ballot on June 25, 2023.
Note on transitioned employees :-
Under the employee stock options scheme 2007 - Plan 2013, Plan 2014, Plan 2015 and Plan 2018 the employees shall be permitted to exercise until 17 January, 2022 any employee stock options that have already been vested on or prior to the Transfer Date for the employees which are transferred under the Business Transfer Agreement.
In case the employee stock options issued to employee under the employee stock options scheme 2018 - Plan 2018 are due for vesting on 18 January 2022, then such options shall stand automatically vested to employee on the Transfer Date (“Accelerated Options”) and such Accelerated Options may be exercised by employee in the period from 18 January 2022 to 17 April 2022.
The valuation has been prepared as per Black-Scholes model and which takes into consideration the key inputs such as Historical Volatility, Exercise Price and Expected Dividends Yield. The inputs has been assessed using public market data and documents provided by the key management of the company, including the 3i Infotech Employee Stock Option Scheme and historic financial data.
* Includes claim in respect of legal cases relating to Registrar and Transfer Services, which are reimbursable by the Principal to the extent of ' 1.95 Crores (as at March 31, 2022 - ' 1.31 Crores).
The Company's pending litigation is in respect of proceedings pending with Tax Authorities and customer claims with various courts. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material impact on its financial statements.
The amounts of Post employement benefits, Long term employee benefits and Employee share based payment cannot be seperately identified from the composite amount advised by the actuary / valuer.
(vii) Terms and conditions of transactions with related parties
The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm's length transactions. Outstanding balances at the year end are unsecured and interest bearing and settlement occurs in cash. The Provision for Bad and Doubtful debts on amount owed by related parties is NIL (March 31, 2022: NIL). The assessment for loss allowance is undertaken at each financial year through examining the financial position of the related party and market in which the related party operates.
The management assessed that the fair value of cash and cash equivalent, trade receivables, trade payables, and other current financial assets and liabilities approximate their carrying amounts largely due to the short term maturities of these instruments.
Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Accordingly, fair value of such instruments is not materially different from their carrying amounts
The fair values for loans, security deposits and investments in preference shares were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the Fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.
The fair values of non current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.
The fair value of unquoted equity instruments carried at fair value through profit or loss are not materially different from their carrying amount. Hence the impact of fair valuation is considered to be insignificant in the financial statements.
ii. Fair Value Hierarchy
This section explains the judgments and estimates made in determining the fair values of the financial instruments that are measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into three levels prescribed under the accounting standard. An explanation of each level follows underneath the table: * 1 % increase/decrease of the respective discounting rate with respect to interest rates would result in decrease / increase in the company's profit before tax by approximately 6.75 ' Crores for the year ended March 31, 2023 (March 31, 2022 ' 6.01 Crores).
The Fair valuation of Preference shares has resulted in a foreign exchange gain of Rs. 50.12 crores and Interest income on the same amounts to of Rs. 25.21 crores. It has been recognised in the statement of profit and loss.
There have been no transfers among Level 1, Level 2 and Level 3 during the period
Level 1 - Level 1 hierarchy includes Quoted (unadjusted) prices in active markets for identical assets or liabilities.
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 are not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity shares included in level 3.
iii. Valuation technique used to determine fair value
Specific Valuation techniques used to value financial instruments include:
- the use of quoted market prices or dealer quotes for similar instruments
- the fair value of the remaining financial instruments is determined using discounted cash flow analysis
iv. Valuation processes
The finance department of the Company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. This team reports directly to the Managing Director (MD) and the audit committee (AC). Discussions of valuation processes and results are held between the MD, AC and the valuation team at least once every three months, in line with the Company's quarterly reporting periods.
] FINANCIAL RISK MANAGEMENT
The Company is exposed primarily to fluctuations in foreign currency exchange rates ,credit liquidity and interest rate risk ,which may adversely impact the fair value of its financial instruments. The Company has a risk management policy which covers risks associated with the financial assets and liabilities . The risk management policy is approved by Board of Directors . The focus of the risk management committee is to assess the unpredictability of the financial environment and to mitigate potential adverse effects on the financial performance of the Company.
i. Market Risk
Market risk is the risk that the fair value or the future cash flows of a financial instrument will fluctuate because of the change in market prices . Such changes in the value of financial instruments may result from changes in the foreign currency exchange, 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) Foreign currency exchange rate risk
The fluctuation in foreign currency exchange rate may have potential impact on the statement of profit and loss and the other comprehensive income and equity ,where any transaction reference 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 the economic environment in which the Company operates, its operations are subject to risk arising from fluctuations in exchange rates in those countries. The risks primarily relates to fluctuations in US Dollar, Great Britain Pound and Euro against the functional currency of the Company.
The Company, as per its current risk management policy ,does not use any derivatives instruments to hedge foreign exchange . Further ,any movement in the functional currency of the various operations of the Company against major foreign currencies may impact the Company's revenue in international business.
The Company evaluates the impact of the foreign exchange rate fluctuation by assessing its exposure to exchange rate risks. Apart from exposures of foreign currency payables and receivables, which partially are naturally hedged against each other, the Company does not use any hedging instruments to hedge its foreign currency exposures; in line with the current risk management policies.
The foreign exchange rate sensitivity is calculated by aggregation of the net foreign exchange rate exposure and a simultaneous parallel foreign exchange rate shift of all the currencies by 1% against the functional currency of the Company.
The following analysis has been worked out based on the net exposures of the Company as of the date of Balance Sheet which could affect the statement of profit and loss and the other comprehensive income and equity.
The following table set forth information relating to foreign currency exposure as at March 31, 2023:
1% appreciation/depreciation of the respective foreign currencies with respect to functional currency of the Company would result in decrease /increase in the Company ‘s profit before tax by approximately ' 11.46 Crores for the year ended March 31, 2023.
1% appreciation/depreciation of the respective foreign currencies with respect to functional currency of the Company would result in decrease /increase in the Company ‘s profit before tax by approximately INR 10.74 Crores for the year ended March 31, 2022.
(b) Interest rate risk
The Company's fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market.
(ii) Credit risk
Credit risk is the risk that the counterparty will not meet its obligations leading to a financial loss. Credit risk arises from cash and cash equivalents, investments carried at amortised cost and deposits with banks and financial institutions, as well as credit exposures to customers including outstanding receivables and unbilled revenues.
(1) Credit risk management- Trade receivables and Unbilled revenues
The credit risk has always been managed by the group through an assessment of the companies financials , market intelligence and customers credibility.
The Company makes provisions for Debtors and Unbilled based on a critical assessment of the amount in relation to the ageing combined with the historical trend observed in the respective geography, the past history of the client and comparison with similar projects to determine the recoverability of the receivables.
As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on portfolio of its trade receivables and unbilled revenue. The provision matrix is based on its historically observed default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are analyzed.
- Other Financial Assets
The company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information.
A default on a financial asset is when the counterparty fails to make contractual payments when they fall due. This definition of default is determined by considering the business environment in which entity operates and other macroeconomic factors.
(2) Credit risk exposure- Trade receivables and Unbilled revenues
The carrying amount of trade receivables and unbilled revenues represents the maximum credit exposure from customers. The maximum exposure to credit risk from customers is ' 464.67 Crores (March 31, 2022: ' 491.62 Crores). The lifetime expected credit loss on customer balance for the year ended March 31, 2023 is ' 18.21 Crores (March 31, 2022: ' 16.69 Crores).
- Other Financial Assets
The carrying amount of cash and cash equivalents, investments carried at amortised cost, deposits with banks and financial institutions and other financial assets represents the maximum credit exposure. The maximum exposure to credit risk is 809.78 ' Crores (March 31, 2022: ' 769.52 Crores). The 12 months expected credit loss and lifetime expected credit loss on these financial assets for the year ended March 31, 2023 is ' 5.93 Crores (March 31, 2022: ' 4.94 Crores)
(iii) Liquidity risks
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 consistently generated sufficient cash flow from operations to meet its financial obligation as and when they fall due .
The table below provides details regarding the contractual maturities of significant financial liabilities as at :
] CAPITAL MANAGEMENT
For the purpose of the company's capital management, capital includes issued equity capital, convertible instruments, share premium and all other equity reserves attributable to the equity holders. The primary objective of the Company's capital management is to maximise the shareholder value.
The company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.
The Company does not face a significant Liquidity risk with regard to its Lease Liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.
Rental expense recorded for short-term leases was ' 9.09 Crores for the year ended March 31, 2023 and ' 1.07 Crores for the year ended March 31, 2022.
Rental income on assets given on operating lease to subsidiaries was ' NIL Crores for the year ended March 31, 2023.
The Lease payments are discounted using the interest rate implicit in the Lease or, if not readily determinable, using the incremental borrowing rates in the country of domiciLe of these Leases.
41. The accounts of certain Trade Receivables, Trade Payables, Loans and Advances and Banks are however, subject to formal confirmations / reconciliations and consequent adjustments, if any. However, the management does not expect any material difference affecting the current years financial statements on such reconciliations / adjustments.
42. The Company has a receivable balance from Azentio Group in various jurisdictions of ' 0.34 Crores and a payable balance of ' 2.17 Crores which results in a net payable of ' 1.83 Crores from Azentio Group. The business transfer agreement conditions are pending in various jurisdictions and due to which there could be certain adjustments to the amounts of receivable and payable.
H DETAILS OF BENAMI PROPERTY HELD
The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
I WILFUL DEFAULTER
The company has not been declared as a wilful Defaulter by any Financial Institution or bank as at the date of Standalone Balance Sheet.
| RELATIONSHIP WITH STRUCK OFF COMPANIES
The Company has not identified any transactions or balances in any reporting periods with companies whose name is struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
| REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES (ROC)
The company has no pending charges or satisfaction which are yet to be registered with the ROC beyond the Statutory period.
H COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES
The company has complied with the provision of the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.
j| COMPLIANCE WITH APPROVED SCHEME(S) OF ARRANGEMENTS
There are no Schemes of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.
] DISCREPANCY IN UTILIZATION OF BORROWINGS
The company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the standalone balance sheet date. There are no discrepancy in utilisation of borrowings.
Utilisation of Borrowed funds and share premium:
(A) 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).
(B) the company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party).
The company have 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 to or on behalf of the Ultimate Beneficiaries;
The Company have 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 Company 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 of the Ultimate Beneficiaries.
H ADDITIONAL INFORMATION Undisclosed income
The Company has no transaction that is 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 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
Details of Crypto Currency or Virtual Currency
The company has not traded or invested in Crypto currency or Virtual Currency.
Corporate Social Responsibility
As per Section 135 of the Companies Act, 2013, the Company meet the applicability threshold. However there is no payment obligation due to carry forward losses.
As at 31 March 2023, the 3i Infotech Limited (standalone entity) has a receivable balance of ' 376.68 Crores (FY 21-22 352.68 Crores) and a payable balance of ' 1078.58 Crores from various foreign subsidiaries of which certain balances are long outstanding beyond the stipulated timelines as required under the FEMA and Reserve Bank of India rules and regulations. For this non-compliance the new management is in the process of taking corrective actions. Considering the receivable balances can be set off against the payable balances by making an application to the Reserve Bank of India (RBI), the management has not recognised a provision against the receivable balances.
| PREVIOUS YEAR'S FIGURES HAVE BEEN REGROUPED / REARRANGED WHEREVER NECESSARY TO CONFIRM TO THE CURRENT YEAR'S PRESENTATION.
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