Provisions And Contingent Liabilities

A provision is recognized when an enterprise has a present obligation (legal or constructive) as
result of past event and it is probable that an outflow embodying economic benefits of resources
will be required to settle a reliably assessable obligation. Provisions are determined based on
best estimate required to settle each obligation at each balance sheet date. If the effect of the
time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability. When discounting is used, the
increase in the provision due to the passage of time is recognised as a finance cost.

Provisions for onerous contracts, i.e. contracts where the expected unavoidable costs of
meeting obligations under a contract exceed the economic benefits expected to be received,
are recognized when it is probable that an outflow of resources embodying economic benefits
will be required to settle a present obligation as a result of an obligating event, based on a
reliable estimate of such obligation.

A contingent liability is a possible obligation that arises from past events whose existence will
be confirmed by the occurrence or non-occurrence of one or more uncertain future events
beyond the control of the Company or a present obligation that is not recognized because it is
not probable that an outflow of resources will be required to settle the obligation. A contingent
liability also arises in extremely rare cases where there is a liability that cannot be recognized
because it cannot be measured reliably. The Company does not recognize a contingent liability
but discloses its existence in the standalone financial statements.

Financial Instruments

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

Financial assets are classified into amortized cost, fair value through profit or loss (FVTPL), or
fair value through other comprehensive income (FVOCI) based on the business model for
managing the assets and the contractual cash flow characteristics.

Trade receivables, cash and cash equivalents, and loans are subsequently measured at
amortized cost using the effective interest method, less expected credit losses.

Financial liabilities are classified as measured at amortized cost or at FVTPL.

The Company applies the Expected Credit Loss (ECL) model for impairment of financial assets
as per Ind AS 109. The ECL allowance reflects the credit risk inherent in the financial asset and
is updated at each reporting date.

Fair value of financial instruments is determined based on quoted market prices or, in the
absence of an active market, using valuation techniques including discounted cash flow
models.

Gains and losses arising from changes in the fair value of financial instruments are recognized
in the statement of profit and loss unless they are recorded in other comprehensive income.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, demand deposits with banks, and other
short-term highly liquid investments that are readily convertible to known amounts of cash and
are subject to an insignificant risk of changes in value. These are held for the purpose of meeting
short-term cash commitments rather than for investment or other purposes.

Cash and cash equivalents are measured at amortized cost, which approximates their fair value
due to their short-term nature.

Trade Receivables and Expected Credit Loss

Trade receivables are amounts due from customers for services performed in the ordinary
course of business. Trade receivables are initially recognized at fair value and subsequently
measured at amortized cost using the effective interest method, less provision for expected
credit losses (ECL).

The Company applies the Expected Credit Loss (ECL) model prescribed under Ind AS 109 for
impairment of trade receivables. ECL is recognized based on the lifetime expected credit losses
for all trade receivables, considering historical credit loss experience, current conditions, and
forward-looking information.

The Company provides for impairment of trade receivables (other than inter-company
receivables) which are outstanding for more than 180 days from the due date, based on specific
identification and/or application of the ECL model. The provision is recognized as an expense in
the statement of profit and loss.

The amount of the loss allowance is updated at each reporting date to reflect changes in credit
risk since initial recognition. Trade receivables with significant balances and evidence of credit
risk are assessed individually for impairment.

Events After the Reporting Period

Events after the reporting period are those events, both favourable and unfavourable, that occur
between the end of the reporting period and the date when the financial statements are
authorized for issue.

The Company identifies two types of events after the reporting period:

• Adjusting events: Those that provide evidence of conditions that existed at the end of the
reporting period. The financial statements are adjusted to reflect such events.

• Non-adjusting events: Those that are indicative of conditions that arose after the reporting
period. Such events are disclosed in the notes to the financial statements, if material.

The financial statements are adjusted for such events before authorization for issue.

Related Party Transactions:

The Company’s related party comprises the Key Managerial Personnel (KMPs). Transactions, if
any, with the KMPs are undertaken in the ordinary course of business. Details of the related party
and a summary of related party transactions are disclosed in Note 31.

Earnings Per Share

The basic earnings per share is computed by dividing the net profit attributable to equity
shareholders for the period by the weighted average number of equity shares outstanding during
the period. The number of shares used in computing diluted earnings per share comprises the
weighted average shares considered for deriving basic earnings per share, and also the weighted
average number of equity shares which could be issued on the conversion of all dilutive potential
equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the
period, unless they have been issued at a later date. The diluted potential equity shares have
been arrived at, assuming that the proceeds receivable were based on shares having been
issued at the average market value of the outstanding shares. In computing dilutive earnings per
share, only potential equity shares that are dilutive and that would, if issued, either reduce future
earnings per share or increase loss per share, are included.

Recent Pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to time.
During the year ended March 31,2025, MCA has notified Ind AS 117 - Insurance Contracts and
amendments to Ind As 116 - Leases, relating to sale and lease back transactions, applicable
from April 1,2024. The Company has assessed that there is no significant impact on its
financial statements.

On May 9, 2025, MCA notifies the amendments to Ind AS 21 - Effects of Changes in Foreign
Exchange Rates. These amendments aim to provide clearer guidance on assessing currency
exchangeability and estimating exchange rates when currencies are not readily exchangeable.
The amendments are effective for annual periods beginning on or after April 1,2025. The
Company has assessed that there is no significant impact on its financial statements.

Current Vs Non-Current Classification

The Company presents assets and liabilities in the balance sheet based on current / non-current
classification.

An asset is treated as current when:

Ý It is expected to be realised or intended to be sold or consumed in normal operating cycle.

Ý It is held primarily for purpose of trading.

Ý It is expected to be reaised within twelve months after the reporting period.

Ý Cash and cash equivalents unless restricted from being exchanged or used to settle a liability
for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is treated as current when:

Ý It is expected to settle in the normal operating cycle.

Ý It is due to be settled within twelve months after the reporting date.

Ý There is no unconditional right to defer the settlement of the liability for at least twelve months
after the reporting period.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current.

Advance tax paid is classified as non-current assets.

Our Report Attached

For ANANT RAO & MALLIK For HYPERSOFT TECHNOLOGIES LIMITED

Chartered Accountants

NARRA PURNA BABU NAGA MALLESWARI NARRA

Managing Director Director

DIN :10674419 DIN :10819020