(iii) Terms/rights attached to equity shares

(a) Voting rights

The Company has only one class of equity shares having par value of Rs.10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, in proportion of their shareholding.

(b) Dividend distribution rights:

The Company in general meeting may declare dividends, but no dividend shall exceed the amount recommended by the Board.

Subject to the provisions of section 123 of the Companies Act, 2013, the Board may from time to time pay to the members such interim dividends as appear it to be justified by the profits of the Company.

Nature and Purpose of Reserve

a. Securities premium account

Securities premium reserve is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

b. Share based payment reserve

The share options based payment reserve is used to recognise the grant date fair value of options issued to employees under Employee stock option plan and will be utilised on exercise of option.

c. Retained earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

22.4 Deferred tax assets have not been recognised in respect of the losses of ' 66,734.49 lakhs as they may not be used to offset future taxable profits in the Company, there is no other evidence of recoverability in the near future. If the Company were able to recognise all unrecognised deferred tax assets, the profit would increase by ' 16,798.72 lakhs. (March 31,2022 : ' 14,934.15 lakhs)

~| EMPLOYEE BENEFITS

A) DEFINED CONTRIBUTION PLANS

The Company makes contributions towards a provident fund under a defined contribution retirement benefit plan for qualifying employees. The provident fund is administered by Employee Provident Fund Organisation. Under this scheme, the Company is required to contribute a specified percentage of payroll cost to fund the benefits.

Both the employees and the Company make pre-determined contributions to the provident fund. Amount recognised as expense amounts to ' 274.59 lakhs for the year ended March 31,2023 (March 31,2022: ' 209.01 lakhs) under contributions to provident and other funds (Note 19 Employee benefits expense).

B) DEFINED BENEFIT PLANS

(i) The Company makes annual contribution towards gratuity to an unfunded defined benefit plan for qualifying employees. The plan provides for lump sum payments to employees whose right to receive gratuity had vested at the time of resignation, retirement, death while in employment or on 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 except in case of death.

The present value of gratuity obligation is determined based on actuarial valuation using the Projected Unit credit Method, which recognises each period, of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

ii) The plan typically exposes the Company to actuarial risk such as interest rate risk, salary risk and demographic risk:

Interest rate risk - The defined benefit obligation is calculated using a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

Salary risk - Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk - This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

iii) The most recent actuarial valuation of the defined benefit obligation was carried out as at March 31, 2023 by an independent actuary

iv) The details in respect of the amounts recognised in the Company’s financial statements for the year ended March 31,

(ii) Financial risk management objectives and policies

The Company’s principal financial liabilities comprise trade and other payables and lease liabilities. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include trade receivables, and cash and cash equivalents that derive directly from its operations. The Company holds investments mutual funds.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Company’s senior management is supported by a financial risk committee that advises on financial risks and the appropriate financial risk governance framework for the Company. The financial

risk committee provides assurance to the Company’s senior management that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.”

(ii) (a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of currency risk and other price risk, such as equity price. Financial instruments affected by market risk include debt and equity investments.

(ii) (b) Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company.

The Company has adopted a policy of only dealing with creditworthy counterparties, as a means of mitigating the risk of financial loss from defaults. The Company obtains market feedback on the creditworthiness of the customer concerned. Customer wise outstanding receivables are reviewed on a monthly basis and where necessary, the credit allowed to particular customers for subsequent sales is adjusted in line with their past payment performance. Credit exposure is controlled by counterparty limits that are reviewed and approved by the management on a quarterly basis.

(ii) (c) Financial instruments and cash deposits note

The Company invests mutual funds with Balanced risk. The Company’s financial instruments at fair value through profit and loss. The Company recognised provision for expected credit losses/profit on its instruments at fair value through profit and loss.

The Company’s maximum exposure to credit risk for the components of the balance sheet at March 31, 2023 and March 31,2022 is the carrying amounts as per Note 5.

(ii) (d) Liquidity risk management

The following tables detail the Company’s remaining contractual maturity for its financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The table below provides details regarding the contractual maturities of financial liabilities including estimated interest payments as at respective reporting dates.

The table below provides details regarding the contractual maturities of financial liabilities including estimated interest payments as at March 31,2023

~| CAPITAL MANAGEMENT

For the purpose of the Company’s capital management, capital includes equity capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximise shareholder value.

As at each year end, the Company has only one class of equity shares and has lease liabilities and no debt. Consequent to such capital structure, there are no externally imposed capital requirements. In order to maintain or achieve an optimal capital structure, the Company allocates its capital for re-investment into business based on its long term financial plans.

35 During the year 2020-21 the Company completed Initial Public Offer (‘IPO’) of its equity shares and listed its shares on Bombay Stock Exchange and National Stock Exchange on August 20, 2021, of 1,85,32,216 equity shares of face value of ' 10 each (“Equity Shares”) for cash at a price of ' 1,618 per equity share. The offer had constituted 40.43% of the Company’s post-offer paid-up equity share capital, which was offered in the IPO through an offer for sale of 1,85,32,216 equity shares aggregating to ' 2,99,851.25 lakhs (“Offer For Sale” or “Offer”) by selling shareholders of the Company. The IPO expense was estimated at ' 10,694.71 lakhs, of which ' 10,325.47 was incurred and paid as on March 31,2022 and the Balance amount of ' 369.24 lakhs was refunded to the Selling Shareholders. The Company has received the No Objection Certificate (NOC) from National Stock Exchange (NSE) on April 22, 2022 and from Securities & Exchange Board of India on June 13, 2022. Balance amount of ' 369.24 lakhs paid to the selling shareholders in two tranche i.e. on August 19, 2022 and September 12, 2022.

~| 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 does not have any transactions with companies struck off.

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

period.

iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

v) The Company have not received any fund from any persons or entities, 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

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

(vi) The Company has not advanced or loaned or invested funds to any other persons or entities, 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

vii) The Company have not any such transaction which 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.

37 There is no significant event after the reporting date that require disclosure in these financial statements.

38 The provision of Section 135 of the Companies Act 2013, is applicable to the Company. However, the average net profit computed as per section 135(5) of the Companies Act 2013 is negative. Hence the Company is not required to spent on CSR.