2.11 Provisions and contingent liabilities2.11.1 Provisions

Provisions are recognized when the Company has a present
legal or constructive obligation as a result of past events,
it is probable that an outflow of resources will be required
to settle the obligation and the amount can be reliably
estimated.

Provisions are measured at the present value of
management's best estimate of the expenditure required
to settle the present obligation at the end of the reporting
period. The discount rate used to determine the present value
is a pre-tax rate that reflects current market assessments of
the time value of money and the risks specific to the liability.
The increase in the provision due to the passage of time
is recognized as an interest expense. Provisions are not
recognized for future operating losses.

Provisions for onerous contracts are recognized when the
expected benefits to be desired by the Company from a
contract are lower than unavoidable costs of meeting future
obligations under the contract and are measured at the
present value of lower-than-expected net cost of fulfilling
the contract and expected cost of terminating the contract.

2.11.2 Contingencies

Contingent liability is disclosed for all possible obligations
that arises from past events and whose existence will be
confirmed only by the occurrence or non-occurrence of one
or more uncertain future events not wholly within the control
of the company (or) present obligations arising from past
events where it is not probable that an outflow of resources
embodying economic benefits will be required to settle the
obligation or a sufficiently reliable estimate of the amount
of the obligation cannot be made. Contingent liabilities are
not recognized but disclose their existence in the financial
statements unless the probability of outflow of resources
is remote. A contingent asset is neither recognized nor
disclosed in the financial statements.

2.12 Revenue recognition

Revenue from contracts with customers is recognised, on
the basis of approved contracts, when control of the goods
or services is transferred to the customer at an amount
that reflects the consideration entitled in exchange for
those goods or services. The Company is the principal as it
typically controls the goods or services before transferring
them to the customer. The method for recognising revenues
and costs depends on the nature of services rendered as
mentioned below:

i) Revenue from sale of products is recognised at the
point in time when control of the goods is transferred
to the customer, generally upon delivery of the goods.

ii) Revenue from rendering of services:

a) Designing services include fixed price contracts
and time and material contracts.

Revenue from fixed price contracts is recognised
as per the 'percentage-of-completion' method,
where the performance obligations are satisfied
over time and when there is no uncertainty as to
measurement or collectability of consideration.
When there is uncertainty as to measurement
or ultimate collectability, revenue recognition
is postponed until such uncertainty is resolved.
Percentage of completion is determined
based on the project costs incurred to date as
a percentage of total estimated project costs
required to complete the project. The input
method has been used to measure the progress
towards completion as there is direct relationship
between input and productivity.

Revenue from time and material contracts are
recognised as the related services are performed,
which is pursued based on the efforts spent and
agreed rate with the customer. Revenue from the

end of the last invoicing to the reporting date is
recognised as unbilled revenue.

b) Revenue from rendering of job work services is
recognised over time by measuring the progress
towards complete satisfaction of performance
obligations at the reporting period.

Revenue towards satisfaction of a performance
obligation is measured at the amount of transaction
price (net of variable consideration) allocated to that
performance obligation. The arrangement with the
customer specifies services to be rendered which meet
criteria of performance obligations. For allocation,
transaction price, the Company measures the revenue
in respect of each performance obligation of a contract
at its relative standalone selling price. The transaction
price of goods sold and services rendered is net of
variable consideration. Variable consideration includes
cash contributions, incentives, volume rebates,
discounts etc., which is estimated at contract inception
considering the terms of various schemes with
customers and constrained until it is highly probable
that a significant revenue reversal in the amount of
cumulative revenue recognised will not occur when the
associated uncertainty with the variable consideration
is subsequently resolved. It is reassessed at end of each
reporting period.

Trade receivables

The Company classifies the right to consideration in
exchange for deliverables as either receivables or as
contract asset. A receivable is recognised if an amount
of consideration that is unconditional (i.e., only the
passage of time is required before payment of the
consideration is due). Refer to accounting policies of
financial assets in section 2.15 Financial instruments -
initial recognition and subsequent measurement.

Contract assets

A contract asset is the right to consideration in
exchange for goods or services transferred to the
customer. If the Company performs by transferring
goods or services to a customer before the customer
pays consideration or before payment is due, a contract
asset is recognised for the earned consideration that
is conditional. Contract assets are transferred to
receivables when the rights become unconditional.

Contract assets are subject to impairment assessment.
Refer to accounting policies on impairment of
financial assets.

Contract liabilities

A contract liability is recognised if a payment is
received or a payment is due (whichever is earlier) from
a customer before the Company transfers the related
goods or services. Contract liabilities are recognised
as revenue when the Company performs under the
contract (i.e., transfers control of the related goods or
services to the customer).

Generally, the Company receives advances from few
of its customers. If there is manufacturing lead time
of more than 1 year after signing the contract and
receipt of payment, then there is a significant financing
component for these contracts considering the length
of time between the customers' payment and the
transfer of the goods. As such, the transaction price
for these contracts is discounted, using the interest
rate implicit in the contract (i.e., the interest rate that
discounts the cash selling price of the equipment to the
amount paid in advance). This rate is commensurate
with the rate that would be reflected in a separate
financing transaction between the Company and the
customer at contract inception. Using the practical
expedient in Ind AS 115, the Company does not adjust
the promised amount of consideration for the effects
of a significant financing component if it expects, at
contract inception, that the period between the transfer
of the promised good or service to the customer and
when the customer pays for that good or service will
be one year or less.

2.13 Interest Income

Interest income from a financial asset is recognized when
it is probable that the economic benefits will flow to the
Company and the amount of income can be measured
reliably. Interest income is accrued on a time basis, by
reference to the principal outstanding and at the effective
interest rate applicable.

2.14 Employee benefit plans

Employee benefits include provident fund, employee's state
insurance scheme, gratuity fund and compensated absences.

Post-employment obligations:

Defined contribution plans:

Contributions in respect of Employees' Provident Fund
which are defined contribution schemes, are made to a
fund administered and managed by the Government of
India and are charged as an expense based on the amount
of contribution required to be made and when service are
rendered by the employees.

Defined benefit plans
Gratuity:

The Company accounts for its liability towards Gratuity based
The Company accounts for its liability towards Gratuity based
on actuarial valuation made by an independent actuary as at
the balance sheet date using projected unit credit method.
The liability recognized in the balance sheet in respect of
the gratuity plan is the present value of the defined benefit
obligation at the end of the reporting period less the fair
value of the plant assets.

The present value of the defined benefit obligation is
determined by discounting the estimated future cash
outflows by reference to market yields at the end of the
reporting period on government bonds that have terms
approximating to the terms of the related obligation. The
net interest cost is calculated by applying the discount rate
to the net balance of the defined obligation and the fair value
of plan assets. This cost is included in the employee benefit
expense in the statement of profit and loss. Remeasurement
gains and losses arising from experience adjustments and
changes in actuarial assumptions are recognized in the
period in which they occur, directly in other comprehensive
income. Changes in the present value of the defined benefit
obligation resulting from plan amendments or curtailments
are recognized immediately in the statement of profit and
loss as past service cost.

Compensated absences:

The employees of the Company are entitled to compensated
absences. The employees can carry-forward a portion of
the unutilized accrued compensated absence and utilize
it in future periods or receive cash compensation at
retirement or termination of employment for the unutilized
accrued compensated absence. The Company records
an obligation for compensated absences in the period in
which the employee renders the services that increase this
entitlement. The Company measures the expected cost of
compensated absence based on actuarial valuation made
by an independent actuary as at the balance sheet date on
projected unit credit method.

Share based payments

The Company recognizes compensation expense relating
to share based payments in the statement of profit and loss,
using fair value in accordance with Ind AS 102, Share based
payments.

The Stock options are measured at the fair value of the equity
instruments at the grant date, based on option valuation
model (Black Scholes model). The fair value determined at the
grant date of the stock options is expensed on a straight-line
basis over the vesting period, based on the Company's

estimate of the equity instruments that will eventually vest,
with a corresponding increase in share-based payments
reserve in equity.

At the end of each reporting period, the Company revises its
estimate of the number of equity instruments expected to
vest. The impact of the original estimates, if any, is recognised
in statement of profit and loss such that the cumulative
expense reflects the revised estimate, with a corresponding
adjustment to the share-based payments reserve in equity.
The equity settlement component is not remeasured at
each reporting date. The cash settlement component is
remeasured at each reporting date and at settlement date
based on the fair value of the liability with any changes in
the fair value recognised in the statement of profit and loss.

Other short-term employee benefits

Other short-term employee benefits and performance
incentives expected to be paid in exchange for the services
rendered by employees are recognized during the period
when the employee renders service.

2.15 Financial instruments

a) Initial recognition:

Financial assets and financial liabilities are recognized
when a Company entity becomes a party to the
contractual provisions of the instruments.

Financial assets and financial liabilities are initially
measured at fair value except trade receivable.
Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial
liabilities (other than financial assets and financial
liabilities at fair value through profit or loss) are added
to or deducted from the fair value of the financial
assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to
the acquisition of financial assets or financial liabilities
at fair value through profit or loss are recognized
immediately in profit or loss. Trade receivables that
do not contain a significant financing component
or for which the Company has applied the practical
expedient are measured at the transaction price
determined under Ind AS 115. Refer to the accounting
policies in section 2.12 Revenue recognition.

b) Subsequent Measurement:

(i) Financial assets

All regular way purchases or sales of financial assets
are recognized and derecognized on a trade date basis.
Regular way purchases or sales are purchases or sales
of financial assets that require delivery of assets within
the time frame established by regulation or convention
in the marketplace.

All recognized financial assets are subsequently
measured in their entirety at either amortized cost
or fair value, depending on the classification of the
financial assets.

Classification of financial assets:Financial assets carried at amortized cost:

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

Financial assets at fair value through other
comprehensive income:

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

Financial assets at fair value through profit or loss:

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

(ii) Financial liability:

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

Financial Liability subsequently measured at
amortized cost

Financial liabilities that are not held-for-trading
and are not designated as at FVTPL are measured at
amortized cost at the end of subsequent accounting
periods. The carrying amounts of financial liabilities
that are subsequently measured at amortized cost are
determined based on the effective interest method.
Interest expense that is not capitalized as part of costs
of an asset is included in the 'Finance costs' line item.

Supplier Finance Arrangements

The Company has established supplier finance
arrangements (Refer Note 15). The Company evaluates
whether financial liabilities covered such arrangements
continue to be classified within trade payables, or they
need to be classified as a borrowing or as part of other
financial liabilities/ as a separate line item on the face
of the balance sheet. Such evaluation requires exercise
of judgment basis specific terms of the arrangement.

The Company classifies financial liabilities covered
under supplier finance arrangement within trade
payables in the balance sheet only if (i) the obligation
represents a liability to pay for goods and services, (ii)
is invoiced and formally agreed with the supplier, (iii) is
part of the working capital used in its normal operating
cycle, (iv) the company is not legally released from its
original obligation to the supplier, and has not assumed
a new obligation toward the bank, and another party
(v) there is no substantial modification to the terms of
the liability.

If one or more of the above criteria are not met, the
Company derecognises its original liability toward the
supplier and recognise a new liability toward the bank
which is classified as bank borrowing or other financial
liability, depending on factors such as whether the
Company (i) has obligation toward bank, (ii) is getting
extended credit period such that obligation is no longer
part of its working capital cycle, (iii) is paying interest
directly or indirectly, (iv) has provided guarantee or
security, and/ or (v) is recognized as borrower in the
bank books.

Cash flows related to liabilities arising from supplier
finance arrangements are included in operating
activities in the standalone statement of cash flows,
when the Company finally settles the liability, reflecting
the substance of the payment.

c) Foreign exchange gains and losses:

For foreign currency denominated financial assets
measured at amortized cost and FVTPL, the exchange
differences are recognized in profit or loss except for
those which are designated as hedging instruments in
a hedging relationship.

Changes in the carrying amount of investments in
equity instruments at FVTOCI relating to changes
in foreign currency rates are recognized in other
comprehensive income.

For the purposes of recognizing foreign exchange
gains and losses, FVTOCI debt instruments are treated

as financial assets measured at amortized cost.
Thus, the exchange differences on the amortized cost
are recognized in profit or loss and other changes in
the fair value of FVTOCI financial assets are recognized
in other comprehensive income.

For financial liabilities that are denominated in a
foreign currency and are measured at amortized
cost at the end of each reporting period, the foreign
exchange gains and losses are determined based
on the amortized cost of the instruments and are
recognized in 'Other income'

The fair value of financial liabilities denominated
in a foreign currency is determined in that foreign
currency and translated at the spot rate at the end
of the reporting period. For financial liabilities that
are measured as at FVTPL, the foreign exchange
component forms part of the fair value gains or losses
and is recognized in profit or loss.

d) De-recognition of financial assets and liabilities:
Financial assets

The Company derecognizes a financial asset when
the contractual rights to the cash flows from the asset
expire, or when it transfers the financial asset and
substantially all the risks and rewards of ownership
of the asset to another party. If the Company retains
substantially all the risk and rewards of ownership of
a transferred financial asset, the Company continues
to recognize the financial asset and also recognizes a
collateralized borrowing for the proceeds received.

On de-recognition of a financial asset in its entirety, the
difference between the asset's carrying amount and the
sum of the consideration received and receivable and
the cumulative gain or loss that had been recognized
in other comprehensive income and accumulated in
equity is recognized in profit or loss if such gain or loss
would have otherwise been recognized in profit or loss
on disposal of that financial asset.

Financial liabilities

The Company derecognizes financial liabilities when,
and only when, the Company's obligations are
discharged, cancelled or have expired. The difference
between the carrying amount of the financial liability
derecognized and the consideration paid and payable
is recognized in statement of profit and loss.

2.16 Determination of fair values

In determining the fair value of its financial instruments, the

Company uses a variety of methods and assumptions that

are based on market conditions and risks existing at each

reporting date. The methods used to determine fair value
include discounted cash flow analysis, available quoted
market prices and dealer quotes. All methods of assessing
fair value result in general approximation of value, and such
value may never actually be realized.

Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date,
regardless of whether that price is directly observable or
estimated using another valuation technique. In estimating
the fair value of an asset or a liability, the Company considers
the characteristics of asset or liability of market participants
when pricing the asset or liability at the measurement date.

Fair value for measurement and/or disclosure purposes in
these Financial statements is determined on such a basis,
except for share-based payment transactions that are within
the scope of Ind AS 102, leasing transactions that are within
the scope of Ind AS 116, and measurements that have some
similarities to fair value but are not fair value, such as net
realizable value in Ind AS 2 or value in use in Ind AS 36.

In addition, for financial reporting purposes, fair value
measurements are categorized into Level 1, 2, or 3 based
on the degree to which the inputs to the fair value
measurements are observable and the significance of the
inputs to the fair value measurement in its entirety, which
are described as follows:

• Level 1 inputs are quoted prices (unadjusted) in active
markets for identical assets or liabilities that the entity
can access at the measurement date;

• Level 2 inputs are inputs, other than quoted prices
included within Level 1, that are observable for the asset
or liability, either directly or indirectly; and

• Level 3 inputs are unobservable inputs for the asset or
liability.

!.17 Impairment of assets
Financial assets

The Company recognizes loss allowances using the
expected credit loss (ECL) model for the financial assets
which are not fair valued through statement of profit and
loss. Loss allowance for trade receivables with no significant
financing component is measured at an amount equal to
lifetime ECL. For all other financial assets, expected credit
losses are measured at an amount equal to the 12-month
ECL, unless there has been a significant increase in credit risk
from initial recognition in which case those are measured
at lifetime ECL. The amount of expected credit losses (or
reversal) that is required to adjust the loss allowance at
the reporting date to the amount that is required to be

recognised as an impairment gain or loss in the statement
of profit and loss.

For trade receivables, the Company applies the simplified
approach permitted by Ind AS 109 Financial Instruments,
which requires expected lifetime losses to be recognized
from initial recognition of the receivables. As a practical
expedient, the Company uses a provision matrix to
determine impairment loss of its trade receivables.
The provision matrix is based on its historically observed
default rates over the expected life of the trade receivable
and is adjusted for forward looking estimates. The ECL loss
allowance (or reversal) during the year is recognized in the
statement of profit and loss.

Non-financial assets

Intangible assets, property, plant and equipment and ROU
assets are evaluated for recoverability whenever events
or changes in circumstances indicate that their carrying
amounts may not be recoverable. For the purpose of
impairment testing, the recoverable amount (i.e., the
higher of the fair value less cost to sell and the value-in-use)
is determined on an individual asset basis unless the asset
does not generate cash flows that are largely independent
of those from other assets. In such cases, the recoverable
amount is determined for the CGU to which the asset
belongs. Intangible assets under development are tested for
impairment annually. The Company bases its impairment
calculation on detailed budgets and forecast calculations,
which are prepared separately for each of the Company's
CGUs to which the individual assets are allocated.

If such assets are considered to be impaired, the impairment
to be recognized in the statement of profit and loss is
measured by the amount by which the carrying value of
the assets exceeds the estimated recoverable amount of
the asset. An impairment loss is reversed in the statement
of profit and loss if there has been a change in the estimates
used to determine the recoverable amount. The carrying
amount of the asset is increased to its revised recoverable
amount, provided that this amount does not exceed the
carrying amount that would have been determined (net
of any accumulated amortization or depreciation) had no
impairment loss been recognized for the asset in prior years.

2.18 Earnings per share:

The Company presents basic and diluted earnings per share
("EPS") data for its ordinary shares. Basic EPS is calculated
by dividing the profit or loss attributable to ordinary
shareholders of the Company by the weighted average
number of ordinary shares outstanding during the year.
Diluted EPS is determined by adjusting the profit or loss
attributable to ordinary shareholders and the weighted

average number of ordinary shares outstanding for the
effects of all dilutive potential ordinary shares.

2.19 New and amended standards

The Company applied for the first-time certain standards
and amendments, which are effective for annual periods
beginning on or after 1 April 2025. The Company has not
early adopted any standard, interpretation or amendment
that has been issued but is not yet effective.

(i) Amendments to Ind AS 21 - Lack of exchangeability

The Ministry of Corporate Affairs (MCA) notified
the Companies (Indian Accounting Standards)
Amendment Rules, 2025, which amend Ind AS 21,
The Effects of Changes in Foreign Exchange Rates
to specify how an entity should assess whether a
currency is exchangeable and how it should determine
a spot exchange rate when exchangeability is lacking.
The amendments also require disclosure of information
that enables users of its financial statements to
understand how the currency not being exchangeable
into the other currency affects, or is expected to affect,
the entity's financial performance, financial position
and cash flows.

The amendments are effective for annual reporting
periods beginning on or after 01 April 2025.
When applying the amendments, an entity cannot
restate comparative information.

The amendments do not have a material impact on the
Company's standalone financial statements.

(ii) Amendments to Ind AS 1 - Classification of
Liabilities as Current or Non-current and Non¬
current Liabilities with Covenants

In August 2025, the MCA notified amendments
to paragraphs 69 to 76 of Ind AS 1 to specify the
requirements for classifying liabilities as current or
non-current.

The amendments are effective for annual reporting
periods beginning on or after 1 April 2025
retrospectively in accordance with Ind AS 8.

The amendments have not resulted in additional
disclosures and have not had an impact on the
classification of Company's liabilities.

(iii) Amendments to Ind AS 7 and Ind AS 107 - Supplier
Finance Arrangements

In August 2025, the MCA notified amendments to Ind
AS 7 Statement of Cash Flows and Ind AS 107 Financial
Instruments: Disclosures to clarify the characteristics of

• Disclosure requirements for affected entities to help
users of the financial statements better understand
an entity's exposure to Pillar Two income taxes
arising from that legislation, particularly before its
effective date.

The mandatory temporary exception - the use of which
is required to be disclosed - applies immediately.

The remaining disclosure requirements apply for
annual reporting periods beginning on or after
01 April 2025, but not for any interim periods ending
on or before 31 March 2026.

The amendments had no impact on the Company's
standalone financial statements as the Company is not
in scope of the Pillar Two model rules.

2.20 Standards notified but not yet effective

There are no standards that are notified and not yet effective
as on the date.

company grants credit terms in the normal course of business. The average credit period is between 60-90 days. Before accepting
any new customer, the Company uses an internal credit scoring system to assess the potential customer's credit quality and defines
credit limits for each customer. Limits and scoring attributed to customers are reviewed once a year.

As a practical expedient, the Company uses a provision matrix to determine impairment loss of its trade receivables. The provision
matrix is based on its historically observed default rates over the expected life of the trade receivable and is adjusted for forward
looking estimates. Accordingly, the Company creates provision for past due receivables less than 365 days ranging between
1%-30% and 100% for the receivables due beyond 365 days. The ECL allowance (or reversal) during the year is recognised in the
statement of profit and loss.

(D) Rights, preferences and restrictions attached to equity shares:

The parent company has only one class of equity shares having a par value of C10 per share. Each holder of equity shares is
entitled to one vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets
of the Group in proportion to their shareholding.

(E) Equity shares issued as bonus during the five years preceding March 31, 2026:

Pursuant to resolution passed by the Directors of the Company on December 13, 2022 and approved by the extraordinary
general meeting held on December 14, 2022, the Company had allotted 49,929,000 fully paid-up equity shares of face value
of C10 each by way of bonus issue to its shareholders bonus shares in the ratio of 1:17.

(F) Employee Share based expenses:

(i) Cyient Limited ("Ultimate Holding Company" of the Company) instituted Associate stock option plan 2015 (ASOP 2015) in
July 2015 and earmarked 1,200,000 equity shares of C5 each for issue to the employees of the Holding Company and its
subsidiaries. Under ASOP 2015, options will be issued to employees at an exercise price, which shall not be less than the
market price of the Ultimate Holding Company on the date of grant. These options vest over a period ranging from one
to three years from the date of grant, starting with 10% at the end of first year, 15% at the end of one and half years, 20%
after two years, 25% at the end of two and half years and 30% at the end of third year. Share based expenses incurred by
Ultimate Holding Company are recharged to respective group companies. In this regard, the Company has accounted for
share based expenses in the statement of profit and loss and a corresponding liability towards amount payable to Ultimate
Holding Company.

(ii) Cyient Limited ("Ultimate Holding Company" of the Company) instituted the ARSU's 2020 plan earmarking 1,050,000 shares
of C5 each which provided for grant of RSUs to eligible associates of the Company and its subsidiaries. The Board of Directors
recommended the establishment of the plan on January 16, 2020 and the shareholders approved the recommendation of
Board of Directors on March 5, 2020 through a postal ballot. The RSUs will vest over a period of three years from the date of
grant. These options vest over a period ranging from one to three years from the date of grant, starting with 30% at the end
of first year, 50 % after two years, 20% at the end of third year. Share based expenses incurred by Ultimate Holding Company
are recharged to respective group companies. In this regard, the Company has accounted for share based expenses in the
statement of profit and loss and a corresponding liability towards amount payable to Ultimate Holding Company.

(iv) Cyient DLM Limited instituted the restricted stock unit plan 2023 plan earmarking 7,33,800 shares of C10 each which provided
for grant of RSUs to eligible associates of the Company and its subsidiaries. The Board of Directors recommended the
establishment of the plan on July 21,2023 and the shareholders approved the recommendation of Board of Directors on
September 9, 2023 through a postal ballot. The RSUs will vest over a period of three years from the date of grant.

The fair value of options were priced using Black Scholes pricing model. Grant date share price - C811 - C874 Dividend yield
(%) - 2.6 - 2.9, Expected volatility (%) - 38.73 - 41.90, Risk-free interest (%) - 4.96 - 6.8, Expected term (in years) - 3.

(iii) Cyient Limited ("Ultimate Holding Company" of the Company) has instituted the ASOP 2021 scheme and also incorporated
'Cyient Associate Stock Option Scheme 2021 Trust' (Trust), whereunder shares were purchased from the stock exchanges
through the Trust. KP Corporate Solutions Limited, Corporate Trustee, has been appointed as trustee for this Trust.
Shareholders of the Ultimate Holding Company have approved the Scheme and the formation of Trust through postal
ballot on February 23, 2021.

During the year ended March 31,2022, Trust purchased 1,079,000 shares. The options will vest over 3 years from the grant
date and the Leadership Nomination and Remuneration Committee will determine the vesting schedule. Vesting in any
particular year will not exceed 50% of the total grant. Share based expenses incurred by Ultimate Holding Company are
recharged to respective group companies. In this regard, the Company has accounted for share based expenses in the
statement of profit and loss and a corresponding liability towards amount payable to Ultimate Holding Company.

Nature and Purpose :

(a) General reserve:

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the
general reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive
income, items included in the general reserve will not be reclassified subsequently to profit or loss.

(b) Securities premium:

Amounts received on issue of shares in excess of the par value has been classified as securities premium. The reserve is utilised
in accordance with the provisions of the Companies Act, 2013.

(c) Retained earnings

(i) Retained earnings comprises of prior years' undistributed earnings after taxes along with current year profit.

(ii) Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are
recognised in the period in which they occur, directly in other comprehensive income. These are presented within
retained earnings.

(d) Share based payments reserve

The Share based payments reserve is used to record the value of equity-settled share based payment transactions with
employees. The amounts recorded in this account are transferred to Equity upon exercise of stock options by employees.

(e) Equity Instruments through OCI

Represents the cumulative gains and losses arising on fair valuation of the equity instruments measured at fair value
through OCI.

(f) Cash flow hedge reserve

Represents effective portion of gain and loss on designated portion of hedging instruments in a cash flow hedge, net of tax.

* The Company has entered into supplier finance arrangements through the Trade Receivables Discounting System (TReDS) platform. Under these
arrangements, participating financiers settle approved invoices of suppliers earlier, and the Company undertakes to pay the financiers the invoice
amount on the revised due date agreed under the arrangement. These arrangements do not involve the Company providing guarantees or
collateral to the financiers.

There were no significant non-cash changes in the carrying amount included in the Company's supplier finance arrangement.

The entire balance represents financial liabilities in respect of which suppliers have already received payment from finance
providers under the supplier finance arrangements.

The range of payment due dates for financial liabilities under supplier finance arrangements is between 30 to 90 days
There were no significant non-cash changes in the carrying amount included in the Company's supplier finance arrangement.

On 21 November 2025, the Central Government issued four separate notifications in the Official Gazette announcing implementation
of four Labour Codes, viz., the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and
the Occupational Safety, Health and Working Conditions Code, 2020. These four codes replace and consolidate 29 existing labour
laws. Following the implementation of the four labour codes, the Central Government has pre-published the draft rules on 31
December 2025 under the respective Labour Codes, for public comment and the final rules are expected to be notified in due
course. To ensure smooth implementation, the Ministry of Labour and Employment has also issued the Frequently Asked Questions
(FAQs) on the four codes.

The four codes prescribe an inclusive definition of the term 'wages', which among other matters is relevant for determination of
post-employment benefits including gratuity to all employees. In accordance with the definition, certain specified items forming
part of remuneration are not included in the wages and these excluded items cannot exceed 50% of total remuneration. If there
is an excess, then it is presumed that excess amount also forms part of wages. The four codes also introduce changes related to
leave entitlement and encashment for workers. Going forward, workers' leave balance in excess of 30 days will be encashed at
the end of each calendar year and workers will have a right to demand encashment for entire leave.

The Company has assessed the impact of these changes on the basis of legal view obtained by the management and the best
information available till authorisation of the financial statements for issue. The Company has determined that these changes
result in an increase in gratuity obligation and leave obligation of C12.82 and C4.45, respectively. The Company has presented
increase in obligation as an expense under the head "Employee Benefit Expense" in the standalone statement of profit and loss for
the year ended 31 March 2026. Considering that it is emerging topic and the finalisation of Central/ State Rules is still pending, the
Company will continue monitoring changes and provide appropriate accounting effect as required based on future developments.

29. EMPLOYEE BENEFITS:

The employee benefit schemes are as under: :

1. Defined contribution plans1. Provident fund:

The Company makes provident fund contributions which are defined contribution plans for qualifying employees.
Under the scheme, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits.
These contributions are made to the Fund administered and managed by the Government of India. The Company's monthly
contributions are charged to the statement of profit and loss in the period they are incurred.

Total expense recognised during the year ended as follows:

i. Year ended March 2026 : C37.50

ii. Year ended March 2025 : C34.78

2. Defined Benefit Plans
i. Gratuity:

In accordance with the 'Payment of Gratuity Act, 1972' of India, the Company provides for gratuity, a defined retirement
benefit plan (the 'Gratuity Plan') covering eligible employees. Liabilities with regard to such gratuity plan are determined by
an independent actuarial valuation and are charged to the Statement of Profit and Loss in the period determined. The gratuity
plan is administered by the Company's own trust which has subscribed to the "Group Gratuity Scheme" of Life Insurance
Corporation of India.

The management assessed that fair value of cash and cash equivalents and other bank balances, trade receivables, other financial
assets, Borrowings, trade payables, and other financial liabilities approximate their carrying amounts largely due to the short-term
maturities of these instruments, and hence these are carried at amortised cost. Carrying value of unquoted instruments represents
fair value which is estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk
and remaining maturities.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale.

Investments in other equity instruments (unquoted) and mutual funds (quoted) are measured at fair value through initial
designation in accordance with Ind-AS 109.

32.1.3 FAIR VALUE HIERARCHY

Valuation technique and key inputs

Level 1 - Quoted prices (unadjusted) in an active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e.
as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs)

32.2 FINANCIAL RISK MANAGEMENT, OBJECTIVES AND POLICIES

The Company's activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company's primary
focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial
performance. The primary market risk to the Company is foreign exchange risk and interest rate risk. The Company's exposure to
credit risk is influenced mainly by the individual characteristic of each customer. The liquidity risk is measured by the Company's
inability to meet its financial obligations as they become due.

A. Market risk

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

(i) Foreign exchange risk

The Company operates internationally and a major portion of the business is transacted in several currencies and
consequently the Company is exposed to foreign exchange risk through its sales and services and purchases from
overseas suppliers in various foreign currencies. The exchange rate between the rupee and foreign currencies
has changed substantially in recent years and may fluctuate substantially in the future. Consequently, the
results of the Company's operations are adversely affected as the rupee appreciates/ depreciates against these
currencies. The Company monitors and manages its financial risks by analysing its foreign exchange exposures.
The Company enters into derivative financial instruments such as foreign exchange forward contracts from time to time to
mitigate the risk of changes in exchange rates on foreign currency exposures. There are no material outstanding contracts
as at March 31,2026.

Sensitivity analysis:

Every 5% increase / decrease of the respective foreign currencies compared to functional currency of the Company would
impact profit before tax by C73.38 for the year ended March 31,2026 and C4.87 for the year ended March 31,2025.

(ii) Interest rate risk

There is no material interest risk relating to the Company's financial liabilities which are detailed in note 14.

B. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet
its contractual obligations, and arises principally from the Company's receivables from customers. Credit risk is managed
through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which

# The Company does not have any income generated on investments other than fair valuation changes on financial instruments measured
at FVTOCI.

*Debt represents Borrowings and lease liabilities.

**Net profit after taxes Non-cash operating expenses like depreciation and amortizations Interest other adjustments like expected credit
loss (net), loss on disposal of Property, Plant and Equipment & share based payment expenses.

Note 1: Variance in the ratios is due to the below reasons

(a) Variance is due to repayment of borrowings.

(b) Variance is due to reduction in operations in the current year.

36. 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 has not been declared wilful defaulter by any bank or financial institution or government or any government
authority or other lender.

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

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

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

(vii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with
the understanding, whether recorded in writing or otherwise, that the company shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(viii) The Company does not have 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).