Notes to Accounts of LTIMindtree Ltd.

Mar 31, 2025

q) Provisions, contingent liabilities, and contingent assets

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if:

I) the Company has a present obligation as a result of a past event;

II) a probable outflow of resources is expected to settle the obligation; and

III) the amount of the obligation can be reliably estimated.

Provision is measured using the cash flows estimated to settle the present obligation and when the effect of time value of
money is material, the carrying amount of the provision is the present value of those cash flow. Reimbursement expected in
respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will
be received and a reliable estimate can be made of the amount of the obligation.

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

Contingent liability is disclosed in case of,

I) a present obligation arising from a past event when it is not probable that an outflow of resources will be required to
settle the obligation or the amount of obligation cannot be measured with sufficient reliability; or

II) a possible obligation arising 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 entity.

Contingent assets are neither recognized nor disclosed.

Provisions, contingent liabilities, and contingent assets are reviewed at each balance sheet date.

r) Earnings per share

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares
outstanding during the year, adjusted for treasury shares held and bonus elements in equity shares issued during the year.

Diluted EPS is computed by dividing the net profit after tax by the weighted average number of equity shares considered for
deriving basic EPS and also weighted average number of equity shares that could have been issued upon conversion of all
dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the year, unless
issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

s) Statement of Cash flows

Statement of Cash flows is prepared segregating the cash flows from operating, investing and financing activities. Statement
of Cash flows is reported using indirect method, whereby profit for the year is adjusted for the effects of transactions of a non
cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses
associated with investing or financing cash flows.

t) Business Combination

Business combinations other than the common control transactions are accounted for applying the acquisition method. The
purchase price is measured as the fair value of the assets transferred, equity instruments issued and liabilities incurred or
assumed at the date of obtaining control. The cost of acquisition also includes the fair value of any contingent consideration.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at
their fair value on the date of acquisition. The contingent consideration is measured at fair value at each reporting date.

Transaction costs incurred in connection with a business acquisition are expensed as incurred. Any subsequent changes to the
fair value of contingent consideration classified as liabilities, other than measurement period adjustments, are recognized in the
statement of profit and loss.

Goodwill represents the cost of the acquired businesses in excess of the fair value of identifiable tangible and intangible net
assets purchased.

Business combinations through common control transactions are accounted on a pooling of interest method. No adjustments
are made to reflect the fair values, or recognize any new assets or liabilities, except to harmonize accounting policies. The identity
of the reserves are preserved and the reserves of the transferor becomes the reserves of the transferee. The difference between
consideration paid and the net assets acquired, if any, is recorded under capital reserve / retained earnings, as applicable.

u) Recent accounting pronouncement

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. For 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 leaseback transactions, applicable
to the Company w.e.f. April 1, 2024. The Company has reviewed the new pronouncements and based on its evaluation has
determined that it does not have any significant impact in its financial statements.

Notes:

1 Capital reserve on business combination represents the gains of capital nature which mainly include the excess of value of net assets acquired
over consideration paid by the Company for business amalgamation transactions in earlier years. It also represents capital reserve on business
combination which arises on transfer of business between entities under common control.

2 It represents a sum equal to the nominal value of the share capital extinguished on buyback of Company''s own shares pursuant to Section 69
of the Companies Act, 2013.

3 Securities premium includes:

(a) The difference between the face value of the equity shares and the consideration received in respect of shares issued;

(b) The fair value of the stock options which are treated as expense, if any, in respect of shares allotted pursuant to Stock Options Scheme.

(c) Incremental directly attributable costs incurred in issuing or acquiring an entity''s own equity instruments.

4 The Company created a General reserve in earlier years pursuant to the provisions of the Companies Act,1956 where in certain percentage of
profits was required to be transferred to General reserve before declaring dividends. As per Companies Act 2013, the requirements to transfer
profits to General reserve is not mandatory. General reserve is a free reserve available to the Company.

5 It represents the fair value of services received against employees stock options.

6 The hedging reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated portion of
hedging instruments entered into for cash flow hedges. Such gains or losses will be reclassified to Statement of profit and loss in the period in
which the hedged transaction occurs.

7 Retained earnings represents the undistributed profits of the Company accumulated as on Balance Sheet date.

(I) Performance obligations and remaining performance obligations:

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be
recognized as at the end of the reporting year and an explanation as to when the Company expects to recognize
these amounts in revenue. Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the
remaining performance obligation related disclosures for contracts where the revenue recognized is on time and material
basis. Remaining performance obligation estimates are subject to change and are affected by several factors, including
terminations, changes in the scope of contracts, periodic revalidations, adjustment for revenue that has not materialized
and adjustments for currency.

The aggregate value of performance obligations that are completely or partially unsatisfied as at March 31, 2025, other
than those meeting the exclusion criteria mentioned above, is I 293,181 (As at March 31, 2024: I 241,698). Out of this,
the Company expects to recognize revenue of around 62% (As at March 31, 2024: 67%) within the next one year and
the remaining thereafter.

Major matters in relation to Income Tax

The Company has received following tax demands as at March 31, 2025:

1. I 3,095 including interest of I 212 as at March 31, 2025 (As at March 31, 2024: demand of I 3,095 including interest
of I 212), on account of disallowance of exemption u/s 10A/10AA on profits earned by STPI Units/SEZ units on onsite
export revenue.

2. I 927 (As at March 31, 2024: I 923) majorly on account of disallowance of certain expenses under section 40(a)(ia) and
addition to income under section 69.

3. I 757 (As at March 31, 2024: I 784) primarily on account of transfer pricing adjustments.

Major matters in relation to Indirect taxes

The Company has received tax demand of I 4,579 (As at March 31, 2024: I 1,984) on account of zero rated supply and
ITC disallowances.

In respect of the above matters, the Company is in appeal against these disallowances before the relevant Authorities.

The Company believes that its position is likely to be upheld by appellate authorities and considering the facts, the ultimate
outcome of these proceedings is not likely to have material adverse effect on the results of operations or the financial position.

36. (I) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for is I 6,340

(As at March 31, 2024: I 4,986).

(II) Uncalled capital commitments outstanding as at March 31, 2025 is I 1,999.

37. Employee benefits

I) General descriptions of defined benefit plans:

i) Gratuity plan

The Company provides for gratuity, a defined benefit retirement plan ("the Gratuity Plan") covering eligible
employees of LTIMindtree. The Gratuity Plan provides a lumpsum payment to vested employees at retirement,
death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and
the tenure of employment with the Company.

The Company contributes gratuity liabilities to the LTIMindtree Employees'' Group Gratuity Assurance Scheme for
employees based in India. Trustees administer contributions made to the Trusts and contributions are invested in
schemes with Insurers as permitted by Indian law.

ii) Post-retirement medical benefit plan

The post-retirement medical benefit plan provides for reimbursement of health care costs to certain categories of
employees post their retirement. The reimbursement is subject to an overall ceiling limit sanctioned at the time of
retirement. The ceiling limits are based on cadre of the employee at the time of retirement.

iii) Provident fund plan

The Company''s provident fund plan is managed by its holding company through a Trust permitted under the Provident
Fund Act, 1952. The plan envisages contribution by employer and employees of the Company and guarantees
interest at the rate notified by the Provident Fund Authority. The contribution by employer and employee together
with interest are payable at the time of separation from service or retirement whichever is earlier. The benefit under
this plan vests immediately on rendering of service.

The interest payment obligation of trust managed provident fund is assumed to be adequately covered by the interest
income on Long-term investments of the fund. Any shortfall in the interest income over the interest obligation is
recognized immediately in the statement of profit and loss. Any loss arising out of the investment risk and actuarial
risk associated with the plan is recognized as actuarial loss in the year in which such loss occurs. Further, I Nil has
been provided for the year ending March 31, 2025 and March 31, 2024 based on actuarial valuation towards the
future obligation arising out of interest rate guarantee associated with the plan.

*The Company has made an irrevocable election to present in Other Comprehensive Income subsequent changes in the fair value of these investments as
these are strategic investments and are not held for trading.

1% change in the unobservable inputs used in fair valuation of Level 3 assets and liabilities does not have a significant impact on the value.

The following methods and assumptions were used to estimate the fair values:

i) The fair value of the quoted bonds and mutual funds are based on price quotations at reporting date.

ii) The fair values of the unquoted equity and preference shares have been estimated using a DCF model. The valuation requires
management to make certain assumptions about the model inputs, including forecast cash flows, discount rate, credit risk and
volatility/ the probabilities of the various estimates within the range can be reasonably assessed and are used in management''s
estimate of fair value for these unquoted investments.

iii) Mark to market on forward covers and embedded derivative instruments is based on forward exchange rates at the end of
reporting year and discounted using G-sec rate plus applicable spread.

III) Financial risk management

The Company''s activities expose it to a variety of financial risks - currency risk, interest rate risk, credit risk and liquidity risk.
The Company''s primary focus is to foresee the unpredictability of financial markets and seek to minimize the potential adverse
effects on its financial performance.

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. The Company uses derivative financial instruments to mitigate the risks arising out of
foreign exchange related exposures. The Company''s exposure to credit risk is influenced mainly by the individual characteristic
of each customer and the concentration of risk from the top few customers. The Board of Directors reviews and agrees policies
for managing each of these risks, which are summarized below:

a) Currency risk

The Company operates in multiple geographies and contracts in currencies other than the domestic currency exposing
it to risks arising from fluctuation in the foreign exchange rates. The Company uses derivative financial instruments to
mitigate foreign exchange related exposures. All derivative activities for risk management purposes are carried out by
specialist teams that have the appropriate skills, experience and supervision. It is the Company''s policy that no trading in
derivative for speculative purposes may be undertaken.

The Company''s revenues are principally in foreign currencies and the maximum exposure is in US dollars.

The Board of Directors of the Company has approved the financial risk management policy covering management of
foreign currency exposures. The treasury department monitors the foreign currency exposures and enters into appropriate
hedging instruments to mitigate its risk. The Company hedges its exposure on a net basis (i.e. expected revenue in foreign
currency less expected expenditure in related currency). Consequently, the Company uses derivative financial instruments,
such as foreign exchange forward contracts and option contracts, designated as cash flow hedges and fair value hedges
to mitigate the risk of changes in foreign currency exchange rates in respect of its forecasted cash flows and on balance
sheet exposures.

b) Interest risk

I nterest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Company has no interest rate risk with respect to borrowings as at
March 31, 2025 and March 31, 2024.

c) Credit risk

Credit risk refers to the risk of default on its obligation by a counterparty resulting in a financial loss. The carrying
amount of all financial assets represents the maximum credit exposure. The maximum exposure to credit risk was
H 208,888 and H 187,644 as at March 31,2025 and March 31, 2024 respectively being the total of the carrying amount
of investments, trade receivables, unbilled revenue, cash and other bank balances and all other financial assets.

The principal credit risk that the Company exposed to is non-collection of trade receivable and late collection of
receivable and on unbilled revenue leading to credit loss. The risk is mitigated by reviewing creditworthiness of
the prospective customers prior to entering into contract and post contracting, through continuous monitoring of
collections by a dedicated team.

The Company makes adequate provision for non-collection of trade receivable and unbilled receivables. Further, the
Company has not suffered significant payment defaults by its customers. The Company has considered the latest
available credit-ratings of customers to ensure the adequacy of allowance for expected credit loss towards trade and
other receivables.

I n addition, for delay in collection of receivable, the Company has made a provision for Expected Credit loss
(''ECL'') based on an ageing analysis of its trade receivable and unbilled revenue. The Company has used a practical
expedient by computing the expected credit loss allowance for trade receivables and unbilled revenue based on a
provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward¬
looking information.

The Company''s exposure to credit risk is influenced mainly by the individual characteristic of each customer and
the concentration of risk from the top few customers. Exposure to customers is diversified and the percentage of
revenue from its top five customers is 29% for the year ended March 31, 2025 (Previous Year: 26.07%). No customer
accounted for more than 10% of the trade receivables as at March 31, 2025 and March 31, 2024.

ECL allowance for non-collection and delay in collection of receivable and unbilled revenue, on a combined basis was
H 2,415 and H 2,590 as at March 31, 2025 and March 31, 2024 respectively. The movement in allowance for expected
credit loss comprising provision for both non-collection and delay in collections of receivable and unbilled revenue is
as follows:

The Company does not expect any losses from non-performance by these counterparties, and does not have any
significant concentration of exposures to specific industry sectors.

Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks and
financial institutions with high ratings assigned by international and domestic credit rating agencies and analyzing
market information on a continuous and evolving basis. Ratings are monitored periodically and the Company has
considered the latest available credit ratings as well any other market information which may be relevant at the date
of approval of these financial statements.

d) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The
Company''s treasury department is responsible for liquidity, funding, investment as well as settlement management.
Surplus funds are invested in non-speculative financial instruments that include highly liquid funds and corporate
deposits. Also, the Company has unutilized credit limits with banks.

The Company is also exposed to counter-party risk in relation to financial instruments taken to hedge its foreign
currency risks. The counter-parties are banks and the Company has entered into contracts with the counter-parties
for all its hedge instruments and in addition, entered into suitable credit support agreements to limit counter party
risk where necessary.

The Company''s investments primarily include investment in mutual fund units, quoted bonds, commercial papers,
government securities, non-convertible debentures, InvITs, deposits with banks and financial institutions. The
Company mitigates the risk of counter-party failure by investing in mutual fund schemes with large assets under
management, investing in debt instruments issued with sound credit rating and placing corporate deposits with
banks and financial institutions with high credit ratings assigned by domestic and international credit rating agencies.

46. CORPORATE SOCIAL RESPONSIBILITY (CSR)

Amount required to be spent by the Company on Corporate Social Responsibility (CSR) related activities during the year ended
March 31, 2025 is H 928 (during the year ended March 31, 2024: H 806) and the actual amount spent is H 928 during the year
ended March 31, 2025, including a provision of H 44 (For the year ended March 31, 2024 is H 807, including a provision amount
of H 6 for unspent CSR). The CSR initiatives are primarily in relation to major thrust areas of Education, Health and Wellness,
Livelihood, Environment, Women Empowerment, and upliftment of Persons with Disabilities.

49. DIVIDENDS

Dividends paid during the year ended March 31, 2025 include an amount of H 45 per equity share towards final dividend for
the year ended March 31, 2024 and an amount of H 20 per equity share towards interim dividend. Dividends paid during the
year ended March 31, 2024 include an amount of H 40 per equity share towards final dividend for the year ended March 31,
2023 and an amount of H 20 per equity share towards interim dividend.

Dividends declared by the Company are based on profits available for distribution. On April 23, 2025, the Board of Directors
of the Company have proposed a final dividend of H 45 per share in respect of the year ended March 31, 2025 subject to the
approval of shareholders at the Annual General Meeting, and if approved, would result in a cash outflow of approximately
H 13,332.

50. The company has transferred H 4 to Investor Education and Protection Fund during the year ended March 31, 2025.

51. Figures mentioned as ''0'' in the financial statements denotes figures less than H 0.5 million.

52. Previous year''s figures have been regrouped wherever applicable to facilitate comparability.

53. The financial statements were approved by the Board of Directors on April 23, 2025.

---

Mar 31, 2024

For the purpose of impairment testing, goodwill acquired in a business combination is allocated to the Cash Generating Units (CGU) or groups of CGUs, which benefit from the synergies of the acquisition.

The recoverable amount of a CGU is determined based on value-in-use. Value-in-use is present value of future cash flows expected to be derived from the CGU. The growth rate for forecast period of 5 years is based on historical trend and an appropriate annual growth rate of 2% is considered for periods subsequent to the forecast period. The pre-tax discount rate ranges from 16.1% to 17.3% based on Weighted Average Cost of Capital for the Company.

The Company does its impairment evaluation on an annual basis and based on such evaluation the estimated recoverable amount of the CGU exceeded its carrying amount, hence impairment is not triggered as at reporting date. The Company has performed sensitivity analysis for all key assumptions, including the cash flow projections and is unlikely to cause the carrying amount of the CGU exceed its estimated recoverable amount. These estimates are likely to differ from future actual results of operations and cash flows.

1 M/s. Cuelogic Technologies Inc, USA, wholly owned subsidiary of the Company has been voluntarily deregistered and closed w.e.f April 26, 2023.

2 Mindtree Software (Shanghai) Co. Ltd, China, wholly owned subsidiary of the Company has been voluntarily deregistered and closed w.e.f August 26, 2023.

3 The Company had invested in Philippines Govt. Treasury notes and had deposited same with local Securities and Exchange Commission, as per Corporation Code of Philippines-126. The Invested Treasury note matured during the year and the maturity proceeds are parked in local bank account and would be reinvested in treasury notes of Philippines Govt.

4 During the year ended March 31, 2023, the Company acquired a 6.64% stake in COPE Healthcare Consulting Inc. (''COPE'') for a consideration of H 343 pursuant to a Stock Purchase Agreement entered on April 4, 2022 to expand its healthcare business. COPE is a healthcare consulting, implementation and co-management leader in population health management, value-based care and payment, workforce development and data analytics. The Company has made an irrevocable election to present in Other Comprehensive Income subsequent changes in the fair value of this investment as this is strategic investment and is not held for trading.

5 Impairment upto March 31, 2024 is I Nil (Previous Year: I Nil).

(a) Employee Stock Option Scheme 2015 (''ESOP Scheme - 2015'')

On September 14, 2015, the shareholders of the Company have approved the administration and supervision of Employee Stock Ownership Scheme 2015 (''ESOP 2015'') by the Board. Shares under this program are granted to employees at an exercise price of not less than H 1 per equity share or such higher price as determined by the Board but shall not exceed the market price as defined in the Regulations. Shares shall vest over such term as determined by the Nomination and Remuneration Committee not exceeding five years from the date of the grant. These options are exercisable within 7 years from the date of grant. During the year, the Nomination and Remuneration Committee (''NRC'') has approved the administration of the plan through a trust established specifically for this purpose, called the LTIMindtree Employee Welfare Trust (formerly Mindtree Employee Welfare Trust) (''ESOP Trust'').

(b) Employee Restricted Stock Purchase Plan 2012 (''ERSP 2012'')

Employee Restricted Stock Purchase Plan (''ERSP'') 2012 was instituted with effect from July 16, 2012 to issue equity shares of nominal value of H 1 each. Shares under this program are granted to employees at an exercise price of not less than H 10 per equity share or such higher price as determined by the Nomination and Remuneration Committee. Shares shall vest over such term as determined by the Nomination and Remuneration Committee not exceeding ten years from the date of the grant. All shares will have a minimum lock in period of one year from the date of allotment.

On May 22, 2021, the shareholders of the Company have approved the Employee Stock Option Plan 2021 (''ESOP 2021'') for the issue of upto 2,000,000 options (including the unutilized options under ERSP 2012) to employees of the Company. The Nomination and Remuneration Committee (''NRC'') administers the plan through a trust established specifically for this purpose, called the LTIMindtree Employee Welfare Trust (formerly Mindtree Employee Welfare Trust) (''ESOP Trust'').

The ESOP Trust shall subscribe to the equity shares of the Company using the proceeds from loans obtained from the Company, other cash inflows from allotment of shares to employees under the ESOP Plan, to the extent of number of shares as is necessary for transferring to the employees. The NRC shall determine the exercise price which will not be less than the face value of the shares. Options under this program are granted to employees at an exercise price periodically determined by the NRC. All stock options have a four-year vesting term. The options vest and become fully exercisable at the rate of 25% each over a period of 4 years from the date of grant. Each option is entitled to 1 equity share of H 1 each. These options are exercisable within 6 years from the date of vesting.

(VII) Weighted average share price at the date of exercise for stock options exercised during the year ended March 31, 2024 is H 5,298 per share (For the year ended March 31, 2023 H 4,761 per share).

(VIII) The fair value has been calculated using the Black-Scholes Option Pricing model and significant assumptions and inputs to estimate the fair value options granted during the period are as follows:

(c) Employee Stock Option Plan 2021 (''ESOP 2021'') - Series B

During the year ended March 31, 2024 and March 31, 2023, no new grants have been issued.

(IX) The aggregate number of equity shares allotted as fully paid up by way of bonus shares in immediately preceding five years ended March 31, 2024 is I Nil.

(X) An aggregate of 120,397,266 equity shares of H 1 each were issued pursuant to amalgamation, without payment being received in cash in immediately preceding five years ended March 31, 2024 (Refer Note 44 (i))

(XI) (a) During the year ended March 31, 2024, the Company has distributed and paid final dividend for March 31, 2023 of H 40

per share and interim dividend of H 20 per share.

(b) During the year ended March 31, 2023, the Company has distributed and paid interim dividend of H 20 per share.

On November 30, 2023, the special resolution dated May 22, 2021 passed by erstwhile Mindtree Limited relating to grant of loan to the ''LTIMindtree Employee Welfare Trust'' (formerly known as Mindtree Employee Welfare Trust) (''ESOP Trust'') with a view to enable the ESOP Trust to subscribe equity shares of the Company for implementation and administration of ESOP 2021 plan, has been partially modified and the shareholders of the Company, through postal ballot, have approved the grant of loan to the ESOP Trust to subscribe equity shares of the Company for administration of ESOP Scheme 2015 along with ESOP 2021 plan, the aggregate value of loan shall not exceed the statutory ceiling of five (5%) percent of the paid-up capital and free reserves of the Company.

1 Capital reserve on business combination represents the gains of capital nature which mainly include the excess of value of net assets acquired over consideration paid by the Company for business amalgamation transactions in earlier years. It also represents capital reserve on business combination which arises on transfer of business between entities under common control.

2 I t represents a sum equal to the nominal value of the share capital extinguished on buyback of Company''s own shares pursuant to Section 69 of the Companies Act, 2013.

3 Share premium includes:

(a) The difference between the face value of the equity shares and the consideration received in respect of shares issued;

(b) The fair value of the stock options which are treated as expense, if any, in respect of shares allotted pursuant to Stock Options Scheme.

(c) Incremental directly attributable costs incurred in issuing or acquiring an entity''s own equity instruments.

4 The Company created a General reserve in earlier years pursuant to the provisions of the Companies Act,1956 where in certain percentage of profits was required to be transferred to General reserve before declaring dividends. As per Companies Act 2013, the requirements to transfer profits to General reserve is not mandatory. General reserve is a free reserve available to the Company.

5 It represents the fair value of services received against employees stock options.

6 The company has created Special Economic Zone reinvestment reserve out of the profit of eligible SEZ units in terms of the provisions of section 10AA(1)(II) of the Income Tax Act, 1961. The same was utilized and the balance is I Nil as on Balance Sheet date.

7 The hedging reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. Such gains or losses will be reclassified to Statement of profit and loss in the period in which the hedged transaction occurs.

8 Retained earnings represents the undistributed profits of the Company accumulated as on Balance Sheet date.

* Includes disputed dues provided pursuant to unfavorable orders received from the tax authorities as at March 31, 2024 H 111 (As at March 31, 2023: H 108) against which the Company has preferred an appeal with the relevant authority. In respect of the provisions of Ind AS 37, the disclosures required have not been provided pursuant to the limited exemption provided under paragraph 92 of Ind AS 37.

# During the year ended March 31, 2018, the Company received an order passed under section 7A of the Employees Provident Fund & Miscellaneous Provisions Act, 1952 from Employees Provident Fund Organisation (EPFO) claiming provident fund contribution aggregating to H 250 for dues up to June 2016, and excludes any additional interest that may be determined by the authorities from that date till resolution of the dispute, on (a) full salary paid to International Workers and (b) special allowance paid to employees. Based on a legal advice obtained, the Company has assessed that it has a legitimate ground for appeal, and has contested the order by filing an appeal with the Employees'' Provident Funds Appellate Tribunal. In view of the changes in the regulations with the new wage code and social security code, the Company, supported by legal advice, continues to re-estimate the probability of any liability arising from this matter and has accordingly recognized a provision of H 807 (As at March 31, 2023: H 758), including estimated interest, as on the date of the balance sheet.

(I) Performance obligations and remaining performance obligations:

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize these amounts in revenue. Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the remaining performance obligation related disclosures for contracts where the revenue recognized is on time and material basis. Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, periodic revalidations, adjustment for revenue that has not materialized and adjustments for currency.

The aggregate value of performance obligations that are completely or partially unsatisfied as at March 31, 2024, other than those meeting the exclusion criteria mentioned above, is H 241,698 (As at March 31, 2023: H 224,518). Out of this, the Company expects to recognize revenue of around 67% (As at March 31, 2023: 67%) within the next one year and the remaining thereafter.

1 Includes net gain/(loss) on sale of investments of H 1,211 (For the year ended March 31, 2023: H 1,997)

2 The Company hedges its operational business exposure on a net basis (i.e. expected revenue in foreign currency less expected expenditure in related currency). The foreign exchange gain reported above includes loss on derivative financial instrument which are designated as cash flow hedges of H 273 (For the year ended March 31, 2023: Loss of H 913) and fair value hedges of H 129 (For the year ended March 31, 2023: Loss of H 900).

3 Miscellaneous income includes:

(i) gain from modification in leases of H 513 (For the year ended March 31, 2023: H 83)

(ii) change in fair value of contingent consideration I Nil (For the year ended March 31, 2023: H 45)

* Government incentives -

1. The Company undertakes R&D activities and incurs qualifying revenue expenditure which is entitled to an additional deduction under Local Tax Laws. During the year, the Company has recognized R&D credits amounting to I Nil (For the year ended March 31, 2023: H 24), as a credit to employee benefits expense.

2. During the year, the Company has recognized for government grants amounting to H 11 (For the year ended March 31, 2023: H 37) arising in various countries on account of compliance of several employment-related conditions, as a credit to employee benefits expense.

35. CONTINGENT LIABILITIES (I) Claims against the Company not acknowledged as Debts
Particulars	For the year ended March 31, 2024	For the year ended March 31, 2023
Income tax liability that may arise in respect of which the company is in appeal	4,992	4,067
Indirect tax liability, in respect of which the company is in the appeal	2,136	117
	7,128	4,184

Major matters in relation to Income Tax

The Company has received following tax demands as at March 31, 2024:

1. H 3,095 including interest of H 212 as at March 31, 2024 (As at March 31, 2023: H 3,095 including interest of H 212), on account of disallowance of exemption u/s 10A/10AA on profits earned by STPI Units/SEZ units on onsite export revenue.

2. H 923 (As at March 31, 2023: H Nil) majorly on account of disallowance of certain expenses under section 40(a)(ia) and addition to income under section 69.

3. H 784 (As at March 31, 2023: H 782) primarily on account of transfer pricing adjustments.

Major matters in relation to Indirect taxes

The Company has received tax demand of H 1,984 (As at March 31, 2023: H Nil) on account of zero rated supply and ITC disallowances.

I n respect of the above matters, the Company is in appeal against these disallowances before the relevant Authorities. The Company believes that its position is likely to be upheld by appellate authorities and considering the facts, the ultimate outcome of these proceedings is not likely to have material adverse effect on the results of operations or the financial position.

The interest payment obligation of trust managed provident fund is assumed to be adequately covered by the interest income on long term investments of the fund. Any shortfall in the interest income over the interest obligation is recognised immediately in the statement of profit and loss. Any loss arising out of the investment risk and actuarial risk associated with the plan is recognised as actuarial loss in the year in which such loss occurs. Further, I Nil has been provided for the year ending March 31, 2024 and March 31, 2023 based on actuarial valuation towards the future obligation arising out of interest rate guarantee associated with the plan.

I n respect of employees of erstwhile Mindtree Limited monthly contributions were contributed to Employees'' Provident Fund Organisation (EPFO) till November 30, 2022 and accordingly was recognised as a defined contribution plan (refer note III below). From December 1, 2022, the amount is contributed to the Trust.

36. Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for is H 4,986 (As at March 31, 2023: H 995)

37. EMPLOYEE BENEFITS(I) General descriptions of defined benefit plans:

(i) Gratuity plan

The Company provides for gratuity, a defined benefit retirement plan ("the Gratuity Plan") covering eligible Indian employees of LTIMindtree. The Gratuity Plan provides a lumpsum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and the tenure of employment with the Group. The Company contributes gratuity liabilities to the LTIMindtree Employees'' Group Gratuity Assurance Scheme. Moreover there are certain contributions with Mindtree Limited Employees Gratuity Fund Trust. Trustees administer contributions made to the Trusts and contributions are invested in schemes with Insurers as permitted by Indian law.

(ii) Post-retirement medical benefit plan

The post-retirement medical benefit plan provides for reimbursement of health care costs to certain categories of employees post their retirement. The reimbursement is subject to an overall ceiling limit sanctioned at the time of retirement. The ceiling limits are based on cadre of the employee at the time of retirement. (refer note III below)

(iii) Provident fund plan

The Company''s provident fund plan is managed by its holding company through a Trust permitted under the Provident Fund Act, 1952. The plan envisages contribution by employer and employees of the company and guarantees interest at the rate notified by the Provident Fund Authority. The contribution by employer and employee together with interest are payable at the time of separation from service or retirement whichever is earlier. The benefit under this plan vests immediately on rendering of service.

(X) Projected plan cash flow:

The table below shows the expected cash flow profile of the benefits to be paid to the current membership of the plan (which in case of serving employees, if any, is based on service accrued by employee up to valuation date):

(XI) Sensitivity analysis

(i) Post retirement benefits:

Although the obligation of the Company under the post-retirement medical benefit plan is limited to the overall ceiling limits, assumed healthcare cost trend rates may affect the amounts recognised in the statement of profit and loss. The benefit obligation results for the cost of paying future hospitalization premiums to insurance company and reimbursement of domiciliary medical expenses in future for the employee/beneficiaries during their lifetime is sensitive to discount rate, future increase in healthcare costs and longevity. The following table summarizes the impact on the reported defined benefit obligation at the end of the reporting year arising on account of changes in these four key parameters:

(ii) Gratuity:

Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in demographic assumptions. The key actuarial assumptions to which the benefit obligation results are particularly sensitive to are discount rate, future salary escalation rate and withdrawal rate. The following table summarizes the impact on the reported defined benefit obligation at the end of the reporting year arising on account of an increase or decrease in the reported assumption as below:

(II) Fair value hierarchy:

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

Level 2 - I nputs other than quoted prices included with in level 1 that are observable for assets or liabilities, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

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

The following table presents the fair value measurement hierarchy of financial assets and liabilities measured at fair value on recurring basis as at March 31, 2024 and March 31, 2023.

The Management assessed that fair value of Trade receivables, Unbilled revenue, Other financial assets, Lease liabilities, Trade payables and Other financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

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.

One percentage point change in the unobservable inputs used in fair valuation of Level 3 assets and liabilities does not have a

significant impact on the value.

The following methods and assumptions were used to estimate the fair values:

(i) The fair value of the quoted bonds and mutual funds are based on price quotations at reporting date.

(ii) The fair values of the unquoted equity and preference shares have been estimated using a DCF model. The valuation requires management to make certain assumptions about the model inputs, including forecast cash flows, discount rate, credit risk and volatility/the probabilities of the various estimates within the range can be reasonably assessed and are used in management''s estimate of fair value for these unquoted investments.

(iii) Mark to market on forward covers and embedded derivative instruments is based on forward exchange rates at the end of reporting year and discounted using G-sec rate plus applicable spread.

(III) Financial risk management

Derivative Financial Instruments

The Company is exposed to foreign currency fluctuations on foreign currency assets/liabilities and certain Highly Probable Forecast Exposures (HPFE) denominated in foreign currency. The Company follows established risk management policies, including the use of derivatives to hedge foreign currency assets/liabilities and HPFE. The Company regularly reviews its foreign exchange forward and option positions both on a standalone basis and in conjunction with its underlying foreign currency related exposures. The Company monitors the potential risk arising out of the market factors like exchange rates on a regular basis. The counterparty in these derivative instruments is a bank and the Company considers the risks of non-performance by the counterparty as non-material. The Company has considered the effect of changes, if any, in both counterparty credit risk and its own credit risk in assessing hedge effectiveness and measuring hedge ineffectiveness.

The Company''s activities expose it to a variety of financial risks - currency risk, interest rate risk, credit risk and liquidity risk. The Company''s primary focus is to foresee the unpredictability of financial markets and seek to minimize the potential adverse effects on its financial performance. The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to mitigate the risks arising out of foreign exchange related exposures. The Company''s exposure to credit risk is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customers. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:

(i) Currency risk

The Company operates in multiple geographies and contracts in currencies other than the domestic currency exposing it to risks arising from fluctuation in the foreign exchange rates. The Company uses derivative financial instruments to mitigate foreign exchange related exposures. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Company''s policy that no trading in derivative for speculative purposes may be undertaken.

The Company''s revenues are principally in foreign currencies and the maximum exposure is in US dollars.

The Board of Directors of the Company has approved the financial risk management policy covering management of foreign currency exposures. The treasury department monitors the foreign currency exposures and enters into appropriate hedging instruments to mitigate its risk. The Company hedges its exposure on a net basis (i.e. expected revenue in foreign currency less expected expenditure in related currency). Consequently, the Company uses derivative financial instruments, such as foreign exchange forward contracts and option contracts, designated as cash flow hedges and fair value hedges to mitigate the risk of changes in foreign currency exchange rates in respect of its forecasted cash flows and on balance sheet exposures.

The details in respect of the outstanding foreign exchange forward contracts and option contracts are given under the derivative financial instruments section below.

(ii) The foreign exchange forward and option contracts designated as cash flow hedges mature over a maximum period of 60 months. The Company manages its exposures normally for a period of up to 5 years based on the estimated exposure over that period.

The table below analyses the derivative financial instrument into relevant maturity based on the remaining period as of the balance sheet date. Contracts with maturity not later than twelve months include certain contracts which can be rolled over to subsequent periods in line with underlying exposures.

In respect of the Company''s derivative financial instruments, a 1% decrease/increase in the respective exchange rates of each of the currencies underlying such contracts would have resulted in:

(a) an approximately H 235 increase and H 235 decrease in the Company''s net profit in respect of its fair value hedges and H 3,474 increase and H 3,474 decrease in the Company''s effective portion of cash flow hedges as at March 31, 2024.

(b) an approximately H 363 increase and H 363 decrease in the Company''s net profit in respect of its fair value hedges and H 3,284 increase and H 3,284 decrease in the Company''s effective portion of cash flow hedges as at March 31, 2023.

*Other currencies include currencies such as Emirati Dirham, Australian $, Canadian $, South African Rand, Singapore $, Norwegian Krone, etc.

As at March 31, 2024, every 1% increase/decrease in the respective foreign currencies compared to functional currency of the Company would result in increase/decrease in the Company''s profit before taxes for the year by approximately 0.89% and (0.89)% respectively.

As at March 31, 2023, every 1% increase/decrease in the respective foreign currencies compared to functional currency of the Company would result in increase/decrease in the Company''s profit before taxes for the year by approximately 1.16% and (1.16)% respectively.

Actual future gains and losses associated with forward contracts designated as cash flow hedge may differ materially from the sensitivity analysis performed as of March 31, 2024 and March 31, 2023 due to the inherent limitations associated with predicting the timing and amount of changes in foreign currency exchange rates and the Company''s actual exposures and position.

(ii) Interest risk

I nterest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company has no interest rate risk with respect to borrowings as at March 31, 2024 and March 31, 2023.

(iii) Credit risk

Credit risk refers to the risk of default on its obligation by a counterparty resulting in a financial loss. The carrying amount of all financial assets represents the maximum credit exposure. The maximum exposure to credit risk was H 187,644 and H 154,283 as at March 31, 2024 and March 31, 2023 respectively being the total of the carrying amount of investments, trade receivables, unbilled revenue, cash and other bank balances and all other financial assets.

The principal credit risk that the Company exposed to is non-collection of trade receivable and late collection of receivable and on unbilled revenue leading to credit loss. The risk is mitigated by reviewing creditworthiness of the prospective customers prior to entering into contract and post contracting, through continuous monitoring of collections by a dedicated team.

The Company makes adequate provision for non-collection of trade receivable and unbilled receivables. Further, the Company has not suffered significant payment defaults by its customers. The Company has considered the latest available credit-ratings of customers to ensure the adequacy of allowance for expected credit loss towards trade and other receivables.

I n addition, for delay in collection of receivable, the Company has made a provision for Expected Credit loss (''ECL'') based on an ageing analysis of its trade receivable and unbilled revenue. The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables and unbilled revenue based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward-looking information.

The Company''s exposure to credit risk is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customers. Exposure to customers is diversified and the percentage of revenue from its top five customers is 26.07% for the year ended March 31, 2024 (Previous Year: 25.97%). No customer accounted for more than 10% of the trade receivables as at March 31, 2024 and March 31, 2023.

ECL allowance for non-collection and delay in collection of receivable and unbilled revenue, on a combined basis was H 2,590 and H 1,966 for the financial years 2023-24 and 2022-23 respectively. The movement in allowance for doubtful debts comprising provision for both non-collection and delay in collections of receivable and unbilled revenue is as follows:

information on a continuous and evolving basis. Ratings are monitored periodically and the Company has considered the latest available credit ratings as well any other market information which may be relevant at the date of approval of these financial statements.

(iv) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company''s treasury department is responsible for liquidity, funding, investment as well as settlement management. Surplus funds are invested in non-speculative financial instruments that include highly liquid funds and corporate deposits. Also, the Company has unutilized credit limits with banks.

39. CAPITAL MANAGEMENT

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Company monitors the return on capital as well as the level of dividends on its equity shares. The Company''s objective when managing capital is to maintain an optimal structure so as to maximize shareholder value.

The Company is also exposed to counter-party risk in relation to financial instruments taken to hedge its foreign currency risks. The counter-parties are banks and the Company has entered into contracts with the counter-parties for all its hedge instruments and in addition, entered into suitable credit support agreements to limit counter party risk where necessary.

The Company''s investments primarily include investment in mutual fund units, quoted bonds, commercial papers, government securities, non-convertible debentures, deposits with banks and financial institutions. The Company mitigates the risk of counter-party failure by investing in mutual fund schemes with large assets under management, investing in debt instruments issued with sound credit rating and placing corporate deposits with banks and financial institutions with high credit ratings assigned by domestic and international credit rating agencies. The Company does not expect any losses from non-performance by these counterparties, and does not have any significant concentration of exposures to specific industry sectors.

Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks and financial institutions with high ratings assigned by international and domestic credit rating agencies and analyzing market

The Company is predominantly equity financed which is evident from the capital structure table. Further, the Company has always been a net cash Company with cash and bank balances along with investment which is predominantly investment in short term mutual funds and debt instruments being far in excess of debt. The Company is not subject to any externally imposed capital requirements.

44. BUSINESS COMBINATION AND ACQUISITIONS(i) Amalgamation of Mindtree Limited (''Amalgamating Company'') with the Company

During the year ended March 31, 2023, the Board of Directors of the Company, in its meeting held on May 6, 2022, approved The Scheme of Amalgamation and Arrangement under Sections 230 - 232 and other applicable provisions of the Companies Act, 2013 for amalgamation of Mindtree Limited (''Amalgamating Company'') with the Company (''Scheme'').

The aforesaid Scheme was sanctioned by Hon''ble National Company Law Tribunal (NCLT) Mumbai Bench vide order dated September 19, 2022 and Bengaluru Bench vide order dated November 04, 2022 and November 10, 2022. The Scheme has become effective on November 14, 2022 upon filing of the certified copy of the orders passed by NCLT with the relevant Registrar of Companies. In terms of the Scheme, the name of the Company has been changed from ''Larsen & Toubro Infotech Limited'' to ''LTIMindtree Limited'' w.e.f. November 15, 2022 and all the assets, liabilities, reserves and surplus of the Amalgamating Company have been transferred to and vested in the Company. The Appointed Date of the Scheme was April 1, 2022.

Accounting Treatment

The amalgamation had been accounted in accordance with "Pooling of interest method" as laid down in Appendix C -''Business combinations of entities under common control'' of Ind AS 103 notified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as specified in the scheme, such that:

(a) All assets and liabilities of the Amalgamating Company are stated at the carrying values as appearing in the standalone financial statements of Amalgamating Company.

(b) The identity of the reserves had been preserved and were recorded in the same form and at the carrying amount as appearing in the standalone financial statements of Amalgamating Company.

(c) The inter-company balances between both the companies had been eliminated.

(d) Financial information had been restated for the accounting impact of merger, as stated above, as if the merger had occurred from April 1, 2021.

The difference, if any, between the amount recorded as share capital issued and the amount of share capital of the amalgamating company has been transferred to capital reserve and presented separately from other capital reserves.

Consequent on the Scheme coming into effect and in accordance with the Share Exchange Ratio enshrined in the Scheme, on November 25, 2022 the Company had allotted its 120,417,607 equity shares of H 1/- each (fully paid-up) (including 20,341 treasury shares allotted to LTIMindtree Employee Benefit Trust) to the equity shareholders of erstwhile Mindtree Limited as on the ''Record Date'' fixed for the said purpose.

(ii) Amalgamation of Powerupcloud Technologies Private Limited, Lymbyc Solutions PrivateLimited and Cuelogic Technologies Private Limited (''Transferor Companies'') with the Company

The Scheme of Arrangement ("the Scheme") for amalgamation between Powerupcloud Technologies Private Limited, Cuelogic Technologies Private Limited and Lymbyc Solutions Private Limited (''Transferor Companies''), wholly owned subsidiaries, with the Company (''Transferee Company'') was approved by the Mumbai Bench of National Company Law Tribunal and the Company received the certified true copy of the order on July 06, 2023. The Company has filed the same with Registrar of Companies, Mumbai on July 11, 2023 which is the effective date of amalgamation. The Appointed date of the Scheme is April 1, 2023.

The amalgamation has been accounted under the "pooling of interests method" in accordance with Appendix C of Ind AS 103 ''Business Combinations'', at the carrying value of the assets and liabilities of the Transferor Companies as included in the consolidated Balance Sheet of the Company as at the beginning of the previous year. Accordingly, the following accounting treatment has been followed to give effect of the merger:

(i) The assets, liabilities and reserves of the Transferor Companies have been incorporated in the financial statements at the carrying values as appearing in the financial statement of the Transferee Company.

(ii) I nter-Company balances and transactions have been eliminated and resultant adjustment has been adjusted in the other equity.

(iii) 17,328 equity shares of H 10 each fully paid in Powerupcloud Technologies Private Limited, held as investment by the Transferee Company stands cancelled.

(iv) 10,000 equity shares of H 10 each fully paid in Cuelogic Technologies Private Limited, held as investment by the Transferee Company stands cancelled.

(v) 1,145,421 equity shares of H 10 each fully paid in Lymbyc Solutions Private Limited, held as investment by the Transferee Company stands cancelled.

(vi) The financial information in the financial statements in respect of prior period have been restated as if business combination had occurred from the beginning of the prior years in the financial statements and goodwill of H 1,531 has been recognised in the standalone balance sheet of the Company.

45. SEGMENT REPORTING

I n accordance with Ind AS 108 ''Operating Segment'', the Company has disclosed Segment information on consolidated basis for the year ended March 31, 2024 and March 31, 2023 respectively, and is available as part of the audited consolidated financial statements of the Company.

47. CORPORATE SOCIAL RESPONSIBILITY (CSR)

Amount required to be spent by the Company on Corporate Social Responsibility (CSR) related activities during the year ended March 31, 2024 is H 806 (For the year ended March 31, 2023: H 675) and actual spent is H 807 (For the year ended March 31, 2023: H 680), including a provision amount of H 6 for unspent CSR.

50. EVENTS OCCURRING AFTER THE REPORTING PERIOD

The Board of Directors at its meeting held on April 24, 2024, has recommended final dividend of H 45 per equity share of face value H 1 each for the financial year ended March 31, 2024.

51. The company has transferred H 4 to Investor Education and Protection Fund during the year ended March 31, 2024.

52. Figures mentioned as ''0'' in the financial statements denotes figures less than 0.5 million.

53. Previous year''s figures have been regrouped wherever applicable to facilitate comparability.

54. The financial statements were approved by the Board of Directors on April 24, 2024.

---

Mar 31, 2023

1. On June 14, 2021, L&T Infotech Financial Services Technologies Inc. ("LTIFST") bought back 33.33% of its total equity capital (i.e. 200,000 shares) from its Shareholder (the Company) for a consideration of H1,732 Million against cost of H560 Million.

2. The Company acquired "Cuelogic Technologies Private Limited" on July 1, 2021 (refer note 44(II)).

3. The Company has invested in Philippines Govt. Treasury notes and have deposited same with local Securities and Exchange Commission, as per Corporation Code of Philippines-126. The Company has not held this investment primarily for the purpose of being traded and does not intend to sell or consume for normal business operation. The Company intends to keep the deposit till the existence of its operations in Philippines.

4. Liquidated w.e.f. January 25, 2023.

5. Liquidated w.e.f. September 13, 2022.

6. During the quarter ended June 30, 2022, the Company has acquired a 6.64% stake in COPE Healthcare Consulting Inc. (''COPE'') for a consideration of H343 Million pursuant to a Stock Purchase Agreement entered on April 4, 2022 to expand its healthcare business. COPE is a healthcare consulting, implementation and co-management leader in population health management, value-based care and payment, workforce development and data analytics. The company has made an irrevocable election to present in other comprehensive income subsequent changes in the fair value of this investment as this is strategic investment and is not held for trading.

7. Impairment up to March 31, 2023 - Nil (Previous year: Nil)

Employee Restricted Stock Purchase Plan 2012 (''ERSP 2012'')

Employee Restricted Stock Purchase Plan (''ERSP'') 2012 was instituted with effect from July 16, 2012 to issue equity shares of nominal value of H10 each. Shares under this program are granted to employees at an exercise price of not less than H10 per equity share or such higher price as determined by the Nomination and Remuneration Committee. Shares shall vest over such term as determined by the Nomination and Remuneration Committee not exceeding ten years from the date of the grant. All shares will have a minimum lock in period of one year from the date of allotment.

Employee Stock Option Plan 2021 (''ESOP 2021'')

On May 22, 2021, the shareholders of the Company have approved the Employee Stock Option Plan 2021 (''ESOP 2021'') for the issue of up to 2,000,000 options (including the unutilized options under ERSP 2012) to employees of the Company. The Nomination and Remuneration Committee (''NRC'') administers the plan through a trust established specifically for this purpose, called the LTIMindtree Employee Welfare Trust (Formerly Mindtree Employee Welfare Trust) (''ESOP Trust'').

The ESOP Trust shall subscribe to the equity shares of the Company using the proceeds from loans obtained from the Company, other cash inflows from allotment of shares to employees under the ESOP Plan, to the extent of number of shares as is necessary for transferring to the employees. The NRC shall determine the exercise price which will not be less than the face value of the shares. Options under this program are granted to employees at an exercise price periodically determined by the NRC. All stock options have a four-year vesting term. The options vest and become fully exercisable at the rate of 25% each over a period of 4 years from the date of grant. Each option is entitled to 1 equity share of H10 each. These options are exercisable within 6 years from the date of vesting.

VI) The aggregate number of equity shares allotted as fully paid up by way of bonus shares in immediately preceding five years ended March 31, 2023 are Nil (previous period of five years ended March 31, 2022 - Nil)

VII) An aggregate of 120,397,266 equity shares of H1 each were issued pursuant to amalgamation, without payment being received in cash in immediately preceding five years ended March 31, 2023 (previous period of five years ended March 31, 2022 - Nil). (Refer note 44(I)(i))

VIII) During the year ended March 31, 2023, the Company has distributed interim dividend of H20 per share (Previous year: H25 per share) and no special dividend (Previous year: H10 per share).

IX) Weighted average share price at the date of exercise for stock options exercised during the year is H4,761 per share (Previous year: H 4,960 per share).

X) The fair value has been calculated using the Black-Scholes Option Pricing model and significant assumptions and inputs to estimate the fair value of options granted during the year are as follows:

1. Capital reserve on business combination represents the gains of capital nature which mainly include the excess of value of net assets acquired over consideration paid by the Company for business amalgamation transactions in earlier years. It also represents capital reserve on business combination which arises on transfer of business between entities under common control.

2. I t represents a sum equal to the nominal value of the share capital extinguished on buyback of Company''s own shares pursuant to Section 69 of the Companies Act, 2013.

3. Share premium includes.

a) The difference between the face value of the equity shares and the consideration received in respect of shares issued;

b) The fair value of the stock options which are treated as expense, if any, in respect of shares allotted pursuant to Stock Options Scheme;

c) Incremental directly attributable costs incurred in issuing or acquiring an entity''s own equity instruments.

4. The Company created a General reserve in earlier years pursuant to the provisions of the Companies Act, 1956 where in certain percentage of profits was required to be transferred to General reserve before declaring dividends. As per Companies Act, 2013, the requirements to transfer profits to General reserve is not mandatory. General reserve is a free reserve available to the Company.

5. It represents the fair value of services received against employees stock options.

6. The Company has created Special Economic Zone reinvestment reserve out of the profit of eligible SEZ units in terms of the provisions of Section 10AA(1)(II) of the Income Tax Act, 1961.

7. The hedging reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. Such gains or losses will be reclassified to statement of profit and loss in the period in which the hedged transaction occurs.

8. Retained earnings represents the undistributed profits of the Company accumulated as on Balance Sheet date.

*Includes disputed dues provided pursuant to unfavorable orders received from the tax authorities of H108 Million (Previous year: H103 Million) against which the Company has preferred an appeal with the relevant authority. In respect of the provisions of Ind AS 37, the disclosures required have not been provided pursuant to the limited exemption provided under paragraph 92 of Ind AS 37.

#During the year ended March 31, 2018, the Company received an order passed under Section 7A of the Employees Provident Fund & Miscellaneous Provisions Act, 1952 from Employees Provident Fund Organization (EPFO) claiming provident fund contribution aggregating to H250 Million for dues up to June 2016, and excludes any additional interest that may be determined by the authorities from that date till resolution of the dispute, on (a) full salary paid to International Workers and (b) special allowance paid to employees. Based on a legal advice obtained, the Company has assessed that it has a legitimate ground for appeal, and has contested the order by filing an appeal with the Employees'' Provident Funds Appellate Tribunal. In view of the changes in the regulations with the new wage code and social security code, the Company, supported by legal advice, continues to re-estimate the probability of any liability arising from this matter and has accordingly recognized a provision of H758 Million (Previous year: H709 Million), including estimated interest, as on the date of the balance sheet.

Performance obligations and remaining performance obligations:

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize these amounts in revenue. Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the remaining performance obligation related disclosures for contracts where the revenue recognized is on time and material basis. Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, periodic revalidations, adjustment for revenue that has not materialized and adjustments for currency.

The aggregate value of performance obligations that are completely or partially unsatisfied as at March 31, 2023, other than those meeting the exclusion criteria mentioned above, is H224,518 Million (Previous year: H191,597 Million). Out of this, the Company expects to recognize revenue of around 67% (Previous year: 66%) within the next one year and the remaining thereafter.

1. Includes net gain / (loss) on sale of investments of H1,997 Million (Previous year: H1,799 Million)

2. The Company hedges its operational business exposure on a net basis (i.e. expected revenue in foreign currency less expected expenditure in related currency). The foreign exchange gain reported above includes loss on Derivative financial instrument which are designated as cash flow hedges of H913 Million (Previous year: Gain of H3,234 Million) and as fair value hedges of loss H900 Million (Previous year: Gain of H136 Million).

3. Miscellaneous income includes change in fair value of contingent consideration amounting to credit of H45 Million (Previous year: charge of H113 Million).

1. The Company undertakes R&D activities and incurs qualifying revenue expenditure which is entitled to an additional deduction under UK corporation tax rules. During the year, the Company has claimed R&D tax relief under UK corporation tax rules amounting to H24 Million (Previous year: H30 Million) accounted as a credit to employee benefits expense.

2. During the year, the Company received government grants amounting to H37 Million (Previous year: H6 Million) from governments of various countries on compliance of several employment-related conditions and accordingly, accounted as a credit to employee benefits expense.

35. CONTINGENT LIABILITIES		('' in Million)
35.(I) Claims against the Company not acknowledged as Debts	Year ended March 31, 2023	Year ended March 31, 2022
Income tax liability that may arise in respect of which the Company is in appeal	4,067	3,739
Indirect tax liability, in respect of which the Company is in the appeal	117	124
	4,184	3,863

Major matters in relation to Income Tax

The Company has received tax demand of H3,095 Million including interest of H212 Million (Previous year: H2,750 Million including interest of H141 Million), on account of disallowance of exemption u/s 10A/10AA on profits earned by STPI Units / SEZ units on onsite export revenue. Further the Company has received tax demand of H782 Million (Previous year: H782 Million) primarily on account of transfer pricing adjustments.

Major matters in relation to Indirect taxes

The Company has received demands of H98 Million (Previous year: H103 Million) on account of disallowance of certain portion of refund applications with respect to accumulated service tax credit in accordance with relevant CENVAT Credit Rules considering them ineligible and not related with output services.

In respect of the above matters, the Company is in appeal against these disallowances before the relevant Authorities.

The Company believes that its position is likely to be upheld by appellate authorities and considering the facts, the ultimate outcome of these proceedings is not likely to have material adverse effect on the results of operations or the financial position.

('' in Million)
35.(II) Corporate guarantee given on behalf of subsidiary	Year ended March 31, 2023	Year ended March 31, 2022
Guarantee issued to HSBC on behalf of wholly-owned subsidiary LTI Middle East FZ-LLC towards working capital facility availed by the subsidiary	828	764

36. Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for: H995 Million (Previous year: H4,801 Million).

37. EMPLOYEE BENEFITS

I) General descriptions of defined benefit plans:

i) Gratuity plan

The Company provides for gratuity, a defined benefit retirement plan ("the Gratuity Plan") covering eligible Indian employees of LTIMindtree. The Gratuity Plan provides a lumpsum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and the tenure of employment with the Company. The Company contributes gratuity liabilities to the LTIMindtree Employees'' Group Gratuity Assurance Scheme and Mindtree Limited Employees Gratuity Fund Trust. Trustees administer contributions made to the Trusts and contributions are invested in a scheme with the Life Insurance Corporation of India, ICICI Prudential Life Insurance Company and SBI Life Insurance Company as permitted by Indian law.

ii) Post-retirement medical benefit plan

The post-retirement medical benefit plan provides for reimbursement of health care costs to certain categories of employees post their retirement. The reimbursement is subject to an overall ceiling limit sanctioned at the time of retirement. The ceiling limits are based on cadre of the employee at the time of retirement.

iii) Provident fund plan

The Company''s provident fund plan is managed by its holding company through a Trust permitted under the Provident Fund Act, 1952. The plan envisages contribution by employer and employees of the Company and guarantees interest at the rate notified by the Provident Fund Authority. The contribution by employer and employee together with interest are payable at the time of separation from service or retirement whichever is earlier. The benefit under this plan vests immediately on rendering of service.

The interest payment obligation of trust managed provident fund is assumed to be adequately covered by the interest income on long-term investments of the fund. Any shortfall in the interest income over the interest obligation is recognized immediately in the statement of profit and loss. Any loss arising out of the investment risk and actuarial risk associated with the plan is also recognized as actuarial loss in the period in which such loss occurs. Further, Nil has been provided for year ending March 31, 2023 and March 31, 2022 based on actuarial valuation towards the future obligation arising out of interest rate guarantee associated with the plan.

In respect of employees of erstwhile Mindtree Limited monthly contributions were contributed to Employees'' Provident Fund Organization (EPFO) till November 30, 2022. From December 1, 2022, the amount is contributed to the Trust.

*The Company has made an irrevocable election to present in other comprehensive income subsequent changes in the fair value of these

investments as these are strategic investments and are not held for trading.

One percentage point change in the unobservable inputs used in fair valuation of Level 3 assets and liabilities does not have a significant

impact on the value.

The following methods and assumptions were used to estimate the fair values:

i) The fair value of the quoted bonds and mutual funds are based on price quotations at reporting date.

ii) The fair values of the unquoted equity and preference shares have been estimated using a DCF model. The valuation requires management to make certain assumptions about the model inputs, including forecast cash flows, discount rate, credit risk and volatility / the probabilities of the various estimates within the range can be reasonably assessed and are used in management''s estimate of fair value for these unquoted investments.

iii) Mark to market on forward covers and embedded derivative instruments is based on forward exchange rates at the end of reporting period and discounted using G-sec rate plus applicable spread.

III) Financial risk management

The Company''s activities expose it to a variety of financial risks - currency risk, interest rate risk, credit risk and liquidity risk. The Company''s primary focus is to foresee the unpredictability of financial markets and seek to minimize the potential adverse effects on its financial performance. The primary market risk to the Company is foreign exchange risk. The Company uses derivative financial instruments to mitigate the risks arising out of foreign exchange related exposures. The Company''s exposure to credit risk is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customers. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below:

i) Currency risk

The Company operates in multiple geographies and contracts in currencies other than the domestic currency exposing it to risks arising from fluctuation in the foreign exchange rates. The Company uses derivative financial instruments to mitigate foreign exchange related exposures. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Company''s policy that no trading in derivative for speculative purposes may be undertaken.

The Company''s revenues are principally in foreign currencies and the maximum exposure is in US dollars.

The Board of Directors of the Company has approved the financial risk management policy covering management of foreign currency exposures. The treasury department monitors the foreign currency exposures and enters into appropriate hedging instruments to mitigate its risk. The Company hedges its exposure on a net basis (i.e., expected revenue in foreign currency less expected expenditure in related currency). Consequently, the Company uses derivative financial instruments, such as foreign exchange forward contracts and option contracts, designated as cash flow hedges and fair value hedges to mitigate the risk of changes in foreign currency exchange rates in respect of its forecasted cash flows and on balance sheet exposures.

The details in respect of the outstanding foreign exchange forward contracts and option contracts are given under the derivative financial instruments section below.

I n respect of the Company''s forward and options contracts, a 1% decrease / increase in the respective exchange rates of each of the currencies underlying such contracts would have resulted in:

a) an approximately H363 Million increase and H363 Million decrease in the Company''s net profit in respect of its fair value hedges and H3,284 Million increase and H3,284 Million decrease in the Company''s effective portion of cash flow hedges as at March 31, 2023;

b) an approximately H226 Million increase and H226 Million decrease in the Company''s net profit in respect of its fair value hedges and H2,594 Million increase and H2,594 Million decrease in the Company''s effective portion of cash flow hedges as at March 31, 2022.

out of the market factors like exchange rates on a regular basis. The counterparty in these derivative instruments is a bank and the Company considers the risks of non-performance by the counterparty as non-material. The Company has considered the effect of changes, if any, in both counterparty credit risk and its own credit risk in assessing hedge effectiveness and measuring hedge ineffectiveness.

*Other currencies include currencies such as Emirati Dirham, Australian $, Canadian $, South African Rand, Singapore $, Norwegian Krone, etc.

As at March 31,2023, every 1 % increase / decrease in the respective foreign currencies compared to functional currency of the Company would result in increase / decrease in the Company''s profit before taxes for the year by approximately 1.16% and (1.16)% respectively.

As at March 31,2022, every 1 % increase / decrease in the respective foreign currencies compared to functional currency of the Company would result in increase / decrease in the Company''s profit before taxes for the year by approximately 0.84% and (0.84)% respectively.

A) Derivative Financial Instruments

The Company is exposed to foreign currency fluctuations on foreign currency assets / liabilities and certain Highly Probable Forecast Exposures (HPFE) denominated in foreign currency. The Company follows established risk management policies, including the use of derivatives to hedge foreign currency assets / liabilities and HPFE. The Company regularly reviews its foreign exchange forward and option positions both on a standalone basis and in conjunction with its underlying foreign currency related exposures. The Company monitors the potential risk arising

Actual future gains and losses associated with forward contracts designated as cash flow hedge may differ materially from the sensitivity analysis performed as at March 31, 2023 and March 31, 2022 due to the inherent limitations associated with predicting the timing and amount of changes in foreign currency exchanges rates and the Company''s actual exposures and position.

ii) Interest risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company has no interest rate risk with respect to borrowings as at March 31, 2023 and March 31, 2022.

iii) Credit risk

Credit risk refers to the risk of default on its obligation by a counterparty resulting in a financial loss. The carrying amount of all financial assets represents the maximum credit exposure. The maximum exposure to credit risk was H154,117 Million and H142,095 Million as at March 31, 2023 and March 31, 2022 respectively being the total of the carrying amount of investments, trade receivables, unbilled revenue, cash and other bank balances and all other financial assets.

The principal credit risk that the Company exposed to is non-collection of trade receivable and late collection of receivable and on unbilled revenue leading to credit loss. The risk is mitigated by reviewing creditworthiness of the prospective customers prior to entering into contract and post contracting, through continuous monitoring of collections by a dedicated team.

The Company makes adequate provision for non-collection of trade receivable and unbilled receivables. Further, the Company has not suffered significant payment defaults by its customers. The Company has considered the latest available credit-ratings of customers to ensure the adequacy of allowance for expected credit loss towards trade and other receivables.

In addition, for delay in collection of receivable, the Company has made a provision for Expected Credit loss (''ECL'') based on an ageing analysis of its trade receivable and unbilled revenue. The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables and unbilled revenue based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward-looking information.

The Company''s exposure to credit risk is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customers. Exposure to customers is diversified and the percentage of revenue from its top five customers is 25.97% for 2022-23 (25.38% for 2021-22). No customer accounted for more than 10% of the trade receivables as at March 31, 2023 and March 31, 2022.

ECL allowance for non-collection and delay in collection of receivable and unbilled revenue, on a combined basis was H1,961 Million and H1,311 Million for the financial years 2022-23 and 2021-22 respectively. The movement in allowance for doubtful debts comprising provision for both non-collection and delay in collections of receivable and unbilled revenue is as follows:

('' in Million)
Particulars	2022-23	2021-22
Balance at the beginning of the year	1,311	1,149
Allowance for expected credit losses	769	348
Amounts written-off	(125)	(194)
Foreign exchange impact	6	8
Balance at the end of the year	1,961	1,311

The Company is also exposed to counter-party risk in relation to financial instruments taken to hedge its foreign currency risks. The counter-parties are banks and the Company has entered into contracts with the counter-parties for all its hedge instruments and in addition, entered into suitable credit support agreements to limit counter party risk where necessary.

The Company''s investments primarily include investment in mutual fund units, quoted bonds, commercial papers, non-convertible debentures, deposits with banks and financial institutions. The Company mitigates the risk of counter-party failure by investing in mutual fund schemes with large assets under management, investing in debt instruments issued with sound credit rating and placing corporate deposits with banks and financial institutions with high credit ratings assigned by domestic and international credit rating agencies. The Company does not expect any losses from non-performance by these counterparties, and does not have any significant concentration of exposures to specific industry sectors.

Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks and financial institutions with high ratings assigned by international and domestic credit rating agencies and analyzing market information on a continuous and evolving basis. Ratings are monitored periodically and the Company has considered the latest available credit ratings as well any other market information which may be relevant at the date of approval of these financial statements.

iv) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company''s treasury department is responsible for liquidity, funding, investment as well as settlement management. Surplus funds are invested in non-speculative financial instruments that include highly liquid funds and corporate deposits. Also, the Company has unutilized credit limits with banks.

44. BUSINESS COMBINATION AND ACQUISITIONS 44.(I)Business Combination under Common Control

(i) Amalgamation of Mindtree Limited (''Amalgamating Company'') with the Company

The Board of Directors of the Company, in its meeting held on May 6, 2022, approved The Scheme of Amalgamation and Arrangement under Sections 230 - 232 and other applicable provisions of the Companies Act, 2013 for amalgamation of Mindtree Limited (''Amalgamating Company'') with the Company (''Scheme'').

The aforesaid Scheme was sanctioned by Hon''ble National Company Law Tribunal (NCLT) Mumbai Bench vide order dated September 19, 2022 and Bengaluru Bench vide order dated November 4, 2022 and November 10, 2022. The Scheme has become effective on November 14, 2022 upon filing of the certified copy of the orders passed by NCLT with the relevant Registrar of Companies. In terms of the Scheme, the name of the Company has been changed from ''Larsen & Toubro Infotech Limited'' to ''LTIMindtree Limited'' w.e.f., November 15, 2022 and all the assets, liabilities, reserves and surplus of the Amalgamating Company have been transferred to and vested in the Company. The Appointed Date of the Scheme is April 1, 2022.

Accounting Treatment

The amalgamation has been accounted in accordance with "Pooling of interest method" as laid down in Appendix C - ''Business combinations of entities under common control'' of Ind AS 103 notified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as specified in the scheme, such that:

(a) All assets and liabilities of the Amalgamating Company are stated at the carrying values as appearing in the standalone financial statements of Amalgamating Company.

(b) The identity of the reserves have been preserved and are recorded in the same form and at the carrying amount as appearing in the standalone financial statements of Amalgamating Company.

(c) The inter-company balances between both the companies have been eliminated.

(d) Comparative financial information in the financial statements of the Amalgamated Company has been restated for the accounting impact of merger, as stated above, as if the merger had occurred from the beginning of the comparative period.

The difference, if any, between the amount recorded as share capital issued and the amount of share capital of the Amalgamating Company has been transferred to capital reserve and presented separately from other capital reserves.

Consequent on the Scheme coming into effect and in accordance with the Share Exchange Ratio enshrined in the Scheme, on November 25, 2022 the Company has allotted its 120,417,607 equity shares of H1/- each (fully paid-up) (including 20,341 treasury shares alloted to LTIMindtree Employee Welfare Trust) to the equity shareholders of erstwhile Mindtree Limited as on the ''Record Date'' fixed for the said purpose.

(ii) Common Control Business Combination- L&T NXT

The Company entered into a Business Transfer Agreement on May 20, 2021 to acquire the digital transformation business undertaking, incubated and conducted under L&T-NxT (''NxT Digital Business'') from Larsen & Toubro Limited (L&T). The Company consummated the above transfer of business on July 1, 2021.

The transaction was recorded in the books of the Company in previous year using the pooling of interests method. Accordingly, the assets and liabilities transferred have been accounted at the carrying amounts as reflected in the books of L&T as at June 30, 2021 and no adjustments have been made to reflect the fair values, or recognize any new assets or liabilities. The difference between the purchase consideration of H2,065 Million and the carrying amounts of the net assets transferred of H209 Million has been adjusted against retained earnings (including capital reserve of H87 Million). The financial information pertaining to the transfer of business is not material and accordingly, financial statements of the Company in respect of the prior periods had not been restated.

(iii) Amalgamation of Syncordis Software Services India Private Limited and Ruletronics Systems Private Limited with Larsen & Toubro Infotech Limited

The Scheme of Arrangement ("the Scheme") for amalgamation between Syncordis Software Services India Private Limited and Ruletronics Systems Private Limited (''Transferor Companies''), wholly-owned subsidiaries, with the Company (''Transferee Company'') was approved by the Mumbai Bench of National Company Law Tribunal and the Company received the certified true copy of the order on September 6, 2021. The Company has filed the same with Registrar of Companies, Mumbai on September 8, 2021 which is the effective date of amalgamation. The Appointed date of the Scheme is April 1, 2021.

The amalgamation has been accounted under the ''pooling of interests'' method, on the carrying value of the assets and liabilities of the Transferor Companies as included in the Standalone Balance Sheet of the Company. Accordingly, the financial information pertaining to amalgamation in respect of the prior periods was restated and goodwill of H26 million was recognized in the Standalone Financial Statements of the Company during the previous year.

44. (II) Acquisitions

During the previous year on July 1, 2021, the Company has acquired 100% stake in Cuelogic Technologies Private Limited (''Cuelogic''), along with its 100% subsidiary Cuelogic Technologies Inc for a total enterprise value of USD 8.4 million.

The management has identified dues to micro and small enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) on the basis of information made available by the supplier or vendors of the Company.

48. CORPORATE SOCIAL RESPONSIBILITY (CSR)

Amount required to be spent by the Company on Corporate Social Responsibility (CSR) related activities during the year 2022-23 was H675 Million (for year 2021-22 H560 Million) and the actual amount spent is H680 Million (for year 2021-22 H564 Million, including a provision amount of H77 Million for unspent CSR).

For the purpose of impairment testing, goodwill acquired in a business combination is allocated to the Cash Generating Units (CGU) or groups of CGUs, which benefit from the synergies of the acquisition.

The recoverable amount of a CGU is determined based on value-in-use. Value-in-use is present value of future cash flows expected to be derived from the CGU. The growth rate for forecast period of 5 years is based on historical trend and an appropriate annual growth rate is considered for periods subsequent to the forecast period. The pre-tax discount rate ranges from 16.4% to 18.9 % based on Weighted Average cost of Capital for the Company.

The Group does its impairment evaluation on an annual basis and based on such evaluation the estimated recoverable amount of the CGU exceeded its carrying amount, hence impairment is not triggered as at reporting date. The Group has performed sensitivity analysis for all key assumptions, including the cash flow projections and is unlikely to cause the carrying amount of the CGU exceed its estimated recoverable amount. These estimates are likely to differ from future actual results of operations and cash flows.

50. EVENTS OCCURRING AFTER THE REPORTING PERIOD

The Board of Directors at its meeting held on April 27, 2023, has recommended final dividend of H40 per equity share (Face value H1) for the financial year ended March 31, 2023.

51. The Company has transferred H 1 Million to Investor Education and Protection Fund during the year ended March 31, 2023.

52. In case of figures mentioned as ‘0'' in the financial statements, it denotes figures less than 0.5 million.

53. Previous year''s figures have been regrouped / reclassified wherever applicable to facilitate comparability.

54. The fi nancial statements were approved by the Board of Directors on April 27, 2023.

---

Mar 31, 2022

The aggregate number of equity shares allotted as fully paid up by way of bonus shares in immediately preceding five years ended March 31, 2022 are Nil (previous period of five years ended March 31, 2020 - Nil)

The aggregate number of equity shares issued pursuant to contract, without payment being received in cash in immediately preceding five years ended March 31, 2022 - Nil (previous period of five years ended March 31, 2021 - Nil)

During the year ended March 31, 2022, the amount of special dividend of H10 per share (previous year Nil per share) and interim dividend distributed to equity shareholder was H15 per share (previous year H15 per share).

Weighted average share price at the date of exercise for stock options exercised during the year is H4,889 per share (previous year H2,691 per share).

Weighted average fair value of options granted during the year is H4,668 (previous year H2,349).

The Company created a General reserve in earlier years pursuant to the provisions of the Companies Act,1956 where in certain percentage of profits was required to be transferred to General reserve before declaring dividends. As per Companies Act 2013, the requirements to transfer profits to General reserve is not mandatory. General reserve is a free reserve available to the Company.

The hedging reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. Such gains or losses will be reclassified to statement of profit and loss in the period in which the hedged transaction occurs.

Share premium includes:

a. The difference between the face value of the equity shares and the consideration received in respect of shares issued;

b. The fair value of the stock options which are treated as expense, if any, in respect of shares allotted pursuant to Stock Options Scheme.

It represents the fair value of services received against employee stock options.

Capital reserve on business combination represents the gains of capital nature which mainly include the excess of value of net assets acquired over consideration paid by the Company for business amalgamation transactions in earlier years. It also represents capital reserve on business combination which arises on transfer of business between entities under common control.

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize these amounts in revenue. Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the remaining performance obligation related disclosures for contracts where the revenue recognized is on time and material basis. Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, periodic revalidations, adjustment for revenue that has not materialized and adjustments for currency.

The aggregate value of performance obligations that are completely or partially unsatisfied as at March 31, 2022, other than those meeting the exclusion criteria mentioned above, is H113,767 Mn (previous year H105,876 Mn). Out of this, the Company expects to recognize revenue of around 62% (previous year 58%) within the next one year and the remaining thereafter. This includes contracts that can be terminated for convenience without a substantive penalty since, based on current assessment, the occurrence of the same is expected to be remote.

The foreign exchange gain reported above includes gain on Derivative financial instrument which are designated as cash flow hedges of H2,056 Mn (previous year H158 Mn) and as fair value hedges of H77 Mn (previous year H469 Mn). Since, the Company hedges its operational business exposure on a net basis (i.e. expected revenue in foreign currency less expected expenditure in related currency), the aforesaid gain relates to the business operations of the company.

Includes interest income on financial assets measured at amortised cost, which has been recorded on the basis of Effective interest method.

* Out of contingent Tax liability disclosed above, H2,750 Mn (including interest of H141 Mn), pertains to the tax demand arising on account of disallowance of exemption u/s 10A/10AA on profits earned by STPI Units/SEZ units on onsite export revenue. Company is pursuing appeals against these demands before the relevant Appellate Authorities. The company believes that its position is likely to be upheld by appellate authorities and considering the facts, the ultimate outcome of these proceedings is not likely to have material adverse effect on the results of operations or the financial position of the Company.

"Guarantee issued to HSBC on behalf of wholly owned subsidiary LTI Middle East FZ-LLC towards working capital facility availed by the subsidiary.

#Out of the liability disclosed above, the major portion is towards the application filed for refund of accumulated service tax credit in accordance with relevant CENVAT credit Rules. However, the department has disallowed certain portion of such refunds considering the same as ineligible as not related with output services. The Company is in appeal against these disallowances before the relevant Authorities and is hopeful of getting a favourable order.

Others

A class action lawsuit was filed in the United States District Court, Southern District of New York against the Company alleging discrimination by an ex-employee and an ex-contractor. The Company is taking necessary actions to defend the claim. The Company is presently unable to predict the duration or the outcome of this matter.

37 Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for: H 4,048 Mn (previous year H118 Mn).

38 Employee benefitsI) General descriptions of defined benefit plans:

i) Gratuity plan

The Company makes contributions to the Company''s employees'' Company Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees. The scheme provides for lump sum payment to employees at retirement or death while in employment or termination of employment of an amount equivalent to 15 days salary for every completed year of service or part thereof in excess of six months, provided the employee has completed five years in service.

ii) Post-retirement medical benefit plan

The post-retirement medical benefit plan provides for reimbursement of health care costs to certain categories of employees post their retirement. The reimbursement is subject to an overall ceiling limit sanctioned at the time of retirement. The ceiling limits are based on cadre of the employee at the time of retirement.

iii) Provident fund plan

The Company''s provident fund plan is managed by its holding company through a Trust permitted under the Provident Fund Act, 1952. The plan envisages contribution by employer and employees and guarantees interest at the rate notified by the Provident Fund Authority. The contribution by employer and employee together with interest are payable at the time of separation from service or retirement whichever is earlier. The benefit under this plan vests immediately on rendering of service.

The interest payment obligation of trust managed provident fund is assumed to be adequately covered by the interest income on long term investments of the fund. Any shortfall in the interest income over the interest obligation is recognised immediately in the statement of profit and loss as actuarial loss. Any loss arising out of the investment risk and actuarial risk associated with the plan is also recognised as expense in the period in which such loss occurs. Further, Nil has been provided for year ending March 31, 2022 and March 31, 2021 based on actuarial valuation towards the future obligation arising out of interest rate guarantee associated with the plan.

i) Post-retirement benefits:

Although the obligation of the Company under the post-retirement medical benefit plan is limited to the overall ceiling limits, assumed healthcare cost trend rates may affect the amounts recognised in the statement of profit and loss. The benefit obligation results for the cost of paying future hospitalization premiums to insurance company and reimbursement of domiciliary medical expenses in future for the employee / beneficiaries during their lifetime is sensitive to discount rate, future increase in healthcare costs and longevity. The following table summarizes the impact in percentage terms on the reported defined benefit obligation at the end of the reporting period arising on account changes in these three key parameters:

A one percentage point change in the unobservable inputs used in fair valuation of Level 3 assets and liabilities does not have a significant impact on the value.

There have been no transfers among Level 1, Level 2 and Level 3 during the years ended March 31, 2022 and March 31, 2021. 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.

III) Financial risk management

The Company''s primary focus is to foresee the uncertainty of financial markets and seek to minimize the potential adverse effects on its financial performance. The primary market risk to the company is foreign exchange risk. The company uses derivative financial instruments to mitigate the risks arising out of foreign exchange related exposures. The company''s exposure to credit risk is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customers.

i) Currency risk

The Company operates in multiple geographies and contracts in currencies other than the domestic currency exposing it to risks arising from fluctuation in the foreign exchange rates. The Company uses derivative financial instruments to mitigate foreign exchange related exposures. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision.

The Company''s revenues are principally in foreign currencies and the maximum exposure is in US dollars.

The Board of Directors has approved the Company''s financial risk management policy covering management of foreign currency exposures. The treasury department monitors the foreign currency exposures and enters into appropriate hedging instruments to mitigate its risk. The Company hedges its exposure on a net basis (i.e. expected revenue in foreign currency less expected expenditure in related currency). These hedges are cash flow hedges as well as fair value hedges.

To provide a meaningful assessment of the foreign currency risk associated with the Company''s foreign currency derivative positions against off balance sheet exposures and unhedged portion of on-balance sheet exposures, the Company uses a multi-currency correlated VaR model. The VaR model uses a Monte Carlo simulation to generate thousands of random market price paths for foreign currencies against Indian rupee taking into account the correlations between them. The VaR is the expected loss in value of the exposures due to overnight movement in spot exchange rates, at 95% confidence interval. The VaR model is not intended to represent actual losses but is used as a risk estimation tool. The model assumes normal market conditions and is a historical best fit model. Because the Company uses foreign currency instruments for hedging purposes, the loss in fair value incurred on those instruments are generally offset by increases in the fair value of the underlying exposures for on-balance sheet exposures. The overnight VaR of the Company at 95% confidence level is H618 Mn as at March 31, 2022 (H687 Mn as at March 31, 2021).

A) Derivative Financial Instruments

The company regularly reviews its foreign exchange forward and options positions, both on a standalone and in conjunction with its underlying foreign exchange exposures. The outstanding forward and option contracts at the year end, their maturity profile and sensitivity analysis are as under.

(ii) The foreign exchange forward and option contracts designated as cash flow hedges mature over a maximum period of 36 months. The company manages its exposures normally for a period of up to 3 years based on the estimated exposure over that period.

(iii) During the year ended March 31, 2022, the company has designated certain foreign exchange forward and options contracts as cash flow hedges to mitigate the risk of foreign exchange exposure on highly probable forecast cash transactions. The related hedge transactions which for a part of hedge reserve as at March 31, 2022 will occur and be reclassified to the statement of Profit and loss over a period of 36 months.

The Company''s exposure to credit risk is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customers. Exposure to customers is diversified and the percentage of revenue from its top five customers is 30.4% for 2021-22 (31.2% for 2020-21).

Actual future gains and losses associated with forward contracts designated as cash flow hedge may differ materially from the sensitivity analysis performed as of March 31, 2022 due to the inherent limitations associated with predicting the timing and amount of changes in foreign currency exchanges rates and the Company''s actual exposures and position.

ii) Interest risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company has no interest rate risk with respect to borrowings as on March 31, 2022.

iii) Credit risk

Credit risk refers to the risk of default on its obligation by a counterparty resulting in a financial loss. The carrying amount of all financial assets represents the maximum credit exposure. The maximum exposure to credit risk was H82,380 Mn and H72,154 Mn as at March 31, 2022 and March 31, 2021 respectively being the total of the carrying amount of Investments, Trade Receivables, Unbilled Revenue, Cash and other bank balances and all other financial assets.

The principal credit risk that the Company exposed to is non-collection of trade receivable and late collection of receivable and on unbilled revenue leading to credit loss. The risk is mitigated by reviewing creditworthiness of the prospective customers prior to entering into contract and post contracting, through continuous monitoring of collections by a dedicated team.

The Company makes adequate provision for non-collection of trade receivable and unbilled receivables. Further, the Company has not suffered significant payment defaults by its customers.

In addition, for delay in collection of receivable, the Company has made a provision for Expected Credit loss (''ECL'') based on an ageing analysis of its trade receivables, finance leases and unbilled revenue. For trade receivables and finance leases, these range from 1.2% for dues outstanding up to six months to 13.8% for dues outstanding for more than 36 months for 2021-22 (Previous year 1.5% and 15.7% for dues outstanding up to 6 months and for more than 36 months respectively) and for unbilled revenue 1.2% for dues outstanding up to six months to 3.4% for dues outstanding for more than 12 months for 2021-22 (Previous year 1.4% for dues outstanding up to six months to 3.9% for dues outstanding for more than 12 months).

The Company is also exposed to counter-party risk in relation to financial instruments taken to hedge its foreign currency risks. The counter-parties are banks and the Company has entered into contracts with the counter-parties for all its hedge instruments and in addition, entered into suitable credit support agreements to limit counter party risk where necessary.

The Company''s investments primarily include investment in mutual fund units, quoted bonds, commercial papers, non-convertible debentures, deposits with banks and financial institutions. The Company mitigates the risk of counter-party failure by investing in mutual fund schemes with large assets under management, investing in debt instruments issued with sound credit rating and placing corporate deposits with banks and financial institutions with high credit ratings assigned by domestic and international credit rating agencies.

v) Liquidity risk

The Company''s treasury department monitors the cash flows of the Company and surplus funds are invested in nonspeculative financial instruments that include highly liquid funds and corporate deposits.

The Company has no borrowings as at March 31, 2022 but it has credit facilities with banks that will help it in generating funds for the business if required.

Credit risk on cash and cash equivalents is limited as the company generally invest in deposits with banks and financial institutions with high ratings assigned by international and domestic credit rating agencies and analysing market information on a continuous and evolving basis. Ratings are monitored periodically and the company has considered the latest available credit ratings as well any other market information which may be relevant at the date of approval of these standalone financial statements.

44 Amalgamation of SubsidiariesAmalgmation of Syncordis Software Services India Private Limited and Ruletronics Systems Private Limited with Larsen & Toubro Infotech Limited

The Scheme of Arrangement ("the Scheme”) for amalgamation between Syncordis Software Services India Private Limited and Ruletronics Systems Private Limited (''Transferor Companies''), wholly owned subsidiaries, with the Company (''Transferee Company'') was approved by the Mumbai Bench of National Company Law Tribunal and the Company received the certified true copy of the order on September 6, 2021. The Company has filed the same with Registrar of Companies, Mumbai on September 8, 2021 which is the effective date of amalgamation. The Appointed date of the Scheme is April 1, 2021.

The amalgamation has been accounted under the ''pooling of interests'' method in accordance with Appendix C of Ind AS 103 ''Business Combinations'' and the Scheme, on the carrying value of the assets and liabilities of the Transferor Companies as included in the consolidated Balance Sheet of the Company as at the beginning of the previous year. Accordingly, comparatives have been restated to give effect of the amalgamation from the beginning of the previous year and goodwill of H26 Mn has been recognized in the standalone statement of asset and liabilities of the Company as a result of transfer of net assets of H64 Mn.

45 Acquisition of Subsidiary

On July 1, 2021, the Company has acquired 100% stake in Cuelogic Technologies Private Limited (''Cuelogic''), along with its 100% subsidiary Cuelogic Technologies Inc for a total enterprise value of USD 8.4 Mn.

46 Segment Reporting

In accordance with Ind AS 108 ''Operating Segment'', the Company has disclosed Segment information on consolidated basis for the year ended March 31, 2022 which is available as part of the audited consolidated financial statements of the Company

The Board of Directors at its meeting held on April 19, 2022, has recommended final dividend of H30 per equity share (Face value H1) for the financial year ended March 31, 2022.

51 The company is not required to transfer any amount to Investor Education and Protection Fund.

52 In case of figures mentioned as ''0'' in the financial statements, it denotes figures less than H0.5 Mn.

53 Previous year''s figures have been regrouped/reclassified wherever applicable to facilitate comparability.

54 The financial statements were approved by the Board of Directors on April 19, 2022.

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Mar 31, 2021

The Company has evaluated the impact of COVID - 19 resulting from (i) the possibility of constraints to render services which may require revision of estimations of costs to complete the contract because of additional efforts, (ii) onerous obligations, (iii) penalties relating to breaches of service level agreements and (iv) termination or deferment of contracts by customers. The Company has concluded that the impact of COVID - 19 is not material based on such evaluation.

Performance obligations and remaining performance obligations:

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize these amounts in revenue. Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the remaining performance obligation related disclosures for contracts where the revenue recognized for those contracts where invoicing is on time and material basis. Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations, changes in the scope of contracts, periodic revalidations, adjustment for revenue that has not materialized and adjustments for currency.

The aggregate value of performance obligations that are completely or partially unsatisfied as at March 31, 2021, other than those meeting the exclusion criteria mentioned above, is '' 105,876 Mn (previous year '' 98,667 Mn). Out of this, the Company expects to recognize revenue of around 58% (previous year 52%) within the next one year and the remaining thereafter. This includes contracts that can be terminated for convenience without a substantive penalty since, based on current assessment, the occurrence of the same is expected to be remote.

Contingent Liabilities		('' in Mn)
Year ended March 31,2021		Year ended March 31,2020
Income tax liability that may arise in respect of which the Company is in appeal *	2,899	2,906
Corporate guarantee given on behalf of subsidiary **	736	3,716
Service tax / VAT refund disallowed in respect of which the Company is in the appeal #	156	139
	3,791	6,761

*Out of contingent Tax liability disclosed above, '' 2,735 Mn (including interest of '' 141 Mn), pertains to the tax demand arising on account of disallowance of exemption u/s 10A/10AA on profits earned by STPI Units/SEZ units on onsite export revenue. Company is pursuing appeals against these demands before the relevant Appellate Authorities. The company believes that its position is likely to be upheld by appellate authorities and considering the facts, the ultimate outcome of these proceedings is not likely to have material adverse effect on the results of operations or the financial position of the Company.

**The Company had given a corporate guarantee on behalf of its wholly owned subsidiary L&T Infotech Financial Services Technologies Inc (LTIFST). The guarantee was for performance of all obligations by LTIFST in connection with its long term annuity services contracts with customer. The obligation under this guarantee was limited in aggregate to the amount of CAD 70 Mn. The guarantee has expired on January 1, 2021.

During the period guarantee issued to HSBC on behalf of wholly owned subsidiary LTI Middle East FZ-LLC towards working capital facility availed by the subsidiary. # Out of the liability disclosed above, the major portion is towards the application filed for refund of accumulated service tax credit in accordance with relevant CENVAT credit Rules. However, the department has disallowed certain portion of such refunds considering the same as ineligible as not related with output services. The Company is in appeal against these disallowances before the relevant Authorities and is hopeful of getting a favourable order.

Others

A class action lawsuit was filed in the United States District Court, Southern District of New York against the Company alleging discrimination by an ex-employee and an ex-contractor. The Company is taking necessary actions to defend the claim. The Company is presently unable to predict the duration or the outcome of this matter.

at retirement or death while in employment or termination of employment of an amount equivalent to 15 days salary for every completed year of service or part thereof in excess of six months, provided the employee has completed five years in service.

iil Post-retirement medical benefit plan

The post-retirement medical benefit plan provides for reimbursement of health care costs to certain categories of employees post their retirement. The reimbursement is subject to an overall ceiling limit sanctioned at the time of retirement. The ceiling limits are based on cadre of the employee at the time of retirement.

iii) Provident fund plan

The Company''s provident fund plan is managed by its holding company through a Trust permitted under the Provident Fund Act, 1952. The plan envisages contribution by employer and employees and guarantees interest at the rate notified by the Provident Fund Authority. The contribution by employer and employee together with interest are payable at the time of separation from service or retirement whichever is earlier. The benefit under this plan vests immediately on rendering of service.

The interest payment obligation of trust managed provident fund is assumed to be adequately covered by the interest income on long term investments of the fund. Any shortfall in the interest income over the interest obligation is recognised immediately in the statement of profit and loss as actuarial loss. Any loss arising out of the investment risk and actuarial risk associated with the plan is also recognised as expense in the period in which such loss occurs. Further, Nil has been provided for year ending March 31, 2021 and March 31, 2020 based on actuarial valuation towards the future obligation arising out of interest rate guarantee associated with the plan.

37 Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for: '' 118 Mn (previous year '' 419 Mn).

38 Employee benefits

I) General descriptions of defined benefit plans:

i) Gratuity plan

The Company makes contributions to the Company''s employees'' Company Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees. The scheme provides for lump sum payment to employees

There have been no transfers among Level 1, Level 2 and Level 3 during the years ended March 31, 2021 and March 31, 2020.

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.

III) Financial risk management

The Company''s activities expose it to a variety of financial risks - Market Risk, Credit Risk, interest rate risk and Liquidity Risk. The Company''s primary focus is to foresee the uncertainty of financial markets and seek to minimize the potential adverse effects on its financial performance. The primary market risk to the company is foreign exchange risk. The company uses derivative financial instruments to mitigate the risks arising out of foreign exchange related exposures. The company''s exposure to credit risk is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customers.

i) Currency risk

The Company operates in multiple geographies and contracts in currencies other than the domestic currency exposing it to risks arising from fluctuation in the foreign exchange rates. The Company uses derivative financial instruments to mitigate foreign exchange related exposures. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision.

The Company''s revenues are principally in foreign currencies and the maximum exposure is in US dollars.

The Board of Directors has approved the Company''s financial risk management policy covering management of foreign currency exposures. The treasury department monitors the foreign currency exposures and enters into appropriate hedging instruments to mitigate its risk. The Company hedges its exposure on a net basis (i.e. expected revenue in foreign currency less expected expenditure in related currency). These hedges are cash flow hedges as well as fair value hedges.

To provide a meaningful assessment of the foreign currency risk associated with the Company''s foreign currency derivative positions against off balance sheet exposures and unhedged portion of on-balance sheet exposures, the Company uses a multi-currency correlated VaR model. The VaR model uses a Monte Carlo simulation to generate thousands of random market price paths for foreign currencies against Indian rupee taking into account the correlations between them. The VaR is the expected loss in value of the exposures due to overnight movement in spot exchange rates, at 95% confidence interval. The VaR model is not intended to represent actual losses but is used as a risk estimation tool. The model assumes normal market conditions and is a historical best fit model. Because the Company uses foreign currency instruments for hedging purposes, the loss in fair value incurred on those instruments are generally offset by increases in the fair value of the underlying exposures for on-balance sheet exposures. The overnight VaR of the Company at 95% confidence level is ? 687 Mn as at March 31, 2021 (? 317 Mn as at March 31, 2020).

A) Derivative Financial Instruments

The company regularly reviews its foreign exchange forward and options positions, both on a standalone and in conjunction with its underlying foreign exchange exposures. The outstanding forward and option contracts at the year end, their maturity profile and sensitivity analysis are as under.

(ii) The foreign exchange forward and option contracts designated as cash flow hedges mature over a maximum period of 36 months. The company manages its exposures normally for a period of up to 3 years based on the estimated exposure over that period.

The table below analyses the derivative financial instrument into relevant maturity based on the remaining period as of the balance sheet date. Contracts with maturity not later than twelve months include certain contracts which can be rolled over to subsequent periods in line with underlying exposures.

(iii) During the year ended March 31, 2021, the company has designated certain foreign exchange forward and options contracts as cash flow hedges to mitigate the risk of foreign exchange exposure on highly probable forecast cash transactions. The related hedge transactions which for a part of hedge reserve as at March 31, 2021 will occur and be reclassified to the statement of Profit and loss over a period of 36 months.

The Company makes adequate provision for non-collection of trade receivable and unbilled receivables. Further, the Company has not suffered significant payment defaults by its customers.

In addition, for delay in collection of receivable, the Company has made a provision for Expected Credit loss (ECL) based on an ageing analysis of its trade receivables, finance leases and unbilled revenue. For trade receivables and finance leases, these range from 1.5% for dues outstanding up to six months to 15.7% for dues outstanding for more than 36 months for 2020-21 (Previous year 1.8% and 20.2% for dues outstanding up to 6 months and for more than 36 months respectively) and for unbilled revenue 1.4% for dues outstanding up to six months to 3.9% for dues outstanding for more than 12 months for 2020-21 (Previous year 1.8% for dues outstanding up to six months to 5.1% for dues outstanding for more than 12 months). No provision has been made on trade receivables in not due categor y.

The Company''s exposure to credit risk is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customers. Exposure to customers is diversified and the percentage of revenue from its top five customers is 31.2% for 2020-21 (34.1% for 2019-20).

ECL allowance for non-collection and delay in collection of receivable and unbilled revenue, on a combined basis was '' 295 Mn and '' 211 Mn for the financial years ending on March 31, 2021 and March 31, 2020 respectively. The movement in allowance for doubtful debts comprising provision for both non-collection and delay in collections of receivable and unbilled revenue is as follows:

The Company is also exposed to counter-party risk in relation to financial instruments taken to hedge its foreign currency risks. The counter- parties are banks and the Company has entered into contracts with the counter-parties for all its hedge instruments and in addition, entered into suitable credit support agreements to limit counter party risk where necessary.

iv) Liquidity risk

The Company''s treasury department monitors the cash flows of the Company and surplus funds are invested in non - speculative financial instruments that include highly liquid funds and corporate deposits.

Credit risk on cash and cash equivalents is limited as the company generally invest in deposits with banks and financial institutions with high ratings assigned by international and domestic credit rating agencies and analysing market information on a continuous and evolving basis. Ratings are monitored periodically and the company has considered the latest available credit ratings as well any other market information which may be relevant at the date of approval of these standalone financial statements.

Actual future gains and losses associated with forward contracts designated as cash flow hedge may differ materially from the sensitivity analysis performed as of March 31, 2021 due to the inherent limitations associated with predicting the timing and amount of changes in foreign currency exchanges rates and the Company''s actual exposures and position.

ii) Interest risk

The Company has no interest rate risk with respect to borrowings as on March 31, 2021. However the Company invests its surplus funds in Debt mutual funds and corporate deposits. The Company mitigates the risk of counter-party failure by investing in mutual fund schemes with large assets under management, investing in debt instruments issued with sound credit rating and placing corporate deposits with banks and financial institutions with high credit ratings assigned by domestic and international credit rating agencies.

Net assets value (NAV) of debt mutual funds are subject to changes in interest rates. Every one percent increase or decrease in the NAV of debt mutual funds where the company holds investments will impact he Company''s profit after tax by '' 327 Mn in 2020-21 ('' 212 Mn in 2019-20).

iii) Credit risk

Credit risk refers to the risk of default on its obligation by a counterparty resulting in a financial loss. The carrying amount of all financial assets represents the maximum credit exposure. The maximum exposure to credit risk was '' 72,094 Mn and '' 54,227 Mn as at March 31, 2021 and March 31, 2020 respectively being the total of the carrying amount of Investments, Trade Receivables, Unbilled Revenue, Cash and other bank balances and all other financial assets.

The principal credit risk that the Company exposed to is non-collection of trade receivable and late collection of receivable and on unbilled revenue leading to credit loss. The risk is mitigated by reviewing creditworthiness of the prospective customers prior to entering into contract and post contracting, through continuous monitoring of collections by a dedicated team.

47 Events occurring after the reporting period:

The Board of Directors at its meeting held on May 4, 2021, has recommended final dividend of '' 25 per equity share (Face value '' 1) for the financial year ended March 31, 2021.

48 The company is not required to transfer any amount to Investor Education and Protection Fund.

49 In case of figures mentioned as ‘0'' in the financial statements, it denotes figures less than 0.5 million.

50 P revious year''s figures have been regrouped/reclassified wherever applicable to facilitate comparability.

51 The f inancial statements were approved by the Board of Directors on May 4, 2021.

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Mar 31, 2019

1. Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for: Rs, 49 Mn (previous year

2. Employee benefits

I) General descriptions of defined benefit plans:

i) Gratuity plan

The Company makes contributions to the Company''s employees'' Company Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India (LIC), a funded defined benefit plan for qualifying employees. The scheme provides for lump sum payment to employees at retirement or death while in employment or termination of employment of an amount equivalent to 15 days salary for every completed year of service or part thereof in excess of six months, provided the employee has completed five years in service.

ii) Post-retirement medical benefit plan

The post-retirement medical benefit plan provides for reimbursement of health care costs to certain categories of employees post their retirement. The reimbursement is subject to an overall ceiling limit sanctioned at the time of retirement. The ceiling limits are based on cadre of the employee at the time of retirement.

iii) Provident fund plan

The Company''s provident fund plan is managed by its holding company through a Trust permitted under the Provident Fund Act, 1952. The plan envisages contribution by employer and employees and guarantees interest at the rate notified by the Provident Fund Authority. The contribution by employer and employee together with interest are payable at the time of separation from service or retirement whichever is earlier. The benefit under this plan vests immediately on rendering of service.

The interest payment obligation of trust managed provident fund is assumed to be adequately covered by the interest income on long term investments of the fund. Any shortfall in the interest income over the interest obligation is recognized immediately in the statement of profit and loss as actuarial loss. Any loss arising out of the investment risk and actuarial risk associated with the plan is also recognized as expense in the period in which such loss occurs. Further, nothing has been provided based on actuarial valuation towards the future obligation arising out of interest rate guarantee associated with the plan..

The estimates of future salary increases considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market

IX) Sensitivity analysis

i) Post retirement benefits:

Although the obligation of the Company under the post-retirement medical benefit plan is limited to the overall ceiling limits, assumed healthcare cost trend rates may affect the amounts recognized in the statement of profit and loss. The benefit obligation results for the cost of paying future hospitalization premiums to insurance company and reimbursement of domiciliary medical expenses in future for the employee / beneficiaries during their lifetime is sensitive to discount rate, future increase in healthcare costs and longevity. The following table summarizes the impact in percentage terms on the reported defined benefit obligation at the end of the reporting period arising on account changes in these three key parameters:

ii) Gratuity:

Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in demographic assumptions. The key actuarial assumptions to which the benefit obligation results are particularly sensitive to are discount rate and future salary escalation rate. The following table summarizes the impact in percentage terms on the reported defined benefit obligation at the end of the reporting period arising on account of an increase or decrease in the reported assumption as below:

The Board of Directors has approved the Company''s financial risk management policy covering management of foreign currency exposures. The treasury department monitors the foreign currency exposures and takes appropriate forward and option covers to mitigate its risk. The Company hedges its exposure on a net basis (i.e. expected revenue in foreign currency less expected expenditure in related currency). These hedges are cash flow hedges as well as fair value hedges.

The Company does not enter into hedge transactions for either trading or speculative purposes.

The outstanding forward and option contracts at the year end their maturity profile and sensitivity analysis are as under.

Fair value of forward contracts designated as cash flow hedges of USD-INR as at 31 March 2019 and 31 March 2018 was Rs, 78,938 Mn and Rs, 49,722 Mn respectively. Outstanding number of contracts as at 31 March 2019 were 535 and 31 March 2018 were 266.

C) Value-at-Risk (VaR]

To provide a meaningful assessment of the foreign currency risk associated with the Company''s foreign currency derivative positions against off balance sheet exposures and unhedged portion of on-balance sheet exposures, the Company uses a multicurrency correlated VaR model. The VaR model uses a Monte Carlo simulation to generate thousands of random market price paths for foreign currencies against Indian rupee taking into account the correlations between them. The VaR is the expected loss in value of the exposures due to overnight movement in spot exchange rates, at 95% confidence interval. The VaR model is not intended to represent actual losses but is used as a risk estimation tool. The model assumes normal market conditions and is a historical best fit model. Because the Company uses foreign currency instruments for hedging purposes, the loss in fair value incurred on those instruments are generally offset by increases in the fair value of the underlying exposures for on-balance sheet exposures. The overnight VaR of the Company at 95% confidence level is Rs, 371 Mn as at 31 March 2019 (Rs, 313 Mn as at 31 March 2018).

Actual future gains and losses associated with forward contracts designated as cash flow hedge may differ materially from the sensitivity analyses performed as of 31 March 2018 due to the inherent limitations associated with predicting the timing and amount of changes in foreign currency exchanges rates and the Company''s actual exposures and position.

ii) Interest risk

The Company has no interest rate risk in case of borrowings as on 31 March 2019. However the Company invests its surplus funds in Debt mutual funds. The Company mitigates the risk of counter-party failure by investing in mutual fund schemes with large assets under management and having investments in debt instruments issued with sound credit rating.

Net assets value (NAV) of debt mutual funds are subject to changes in interest rates. Every one percent increase or decrease in the NAV of debt mutual funds where the company holds investments will impact he Company''s profit after tax by Rs, 174 Mn in 2018-19 (Rs, 126 Mn in 2017-18).

iii) Credit risk

The principal credit risk that the Company exposed to is non-collection of trade receivable and late collection of receivable and on unbilled revenue leading to credit loss. The risk is mitigated by reviewing creditworthiness of the prospective customers prior to entering into contract and post contracting, through continuous monitoring of collections by a dedicated team.

The Company makes adequate provision for non-collection of trade receivable and unbilled receivables. Further, the Company has not suffered significant payment defaults by its customers.

In addition, for delay in collection of receivable, the Company has made provision for Expected Credit loss (ECL'') based on ageing analysis of its trade receivable and unbilled revenue. For trade receivables, these range from 1.5% for dues outstanding up to six months to 19.2% for dues outstanding for more than 36 months for 2018-19 (Previous year 1.5% and 19.2% for dues outstanding up to 6 months and for more than 36 months respectively) and for unbilled revenue 1.5% for dues outstanding up to six months to 4.5% for dues outstanding for more than 12 months for 2018-19. No provision has been made on trade receivables in not due category.

ECL allowance for non-collection and delay in collection of receivable and unbilled revenue, on a combined basis was '' 147 Mn and '' 67 Mn for the financial years 2018-19 and 2017-18 respectively. The movement in allowance for doubtful debts comprising provision for both non-collection and delay in collections of receivable and unbilled revenue is as follows:

The percentage of revenue from its top five customers is 31% for 2018-19 (36.8% for 2017-18).

The Company is also exposed to counter-party risk in relation to financial instruments taken to hedge its foreign currency risks. The counter- parties are banks and the Company has entered into contracts with the counter-parties for all its hedge instruments and in addition, entered into suitable credit support agreements to limit counter party risk where necessary.

iv) Liquidity risk

The Company''s treasury department monitors the cash flows of the Company and surplus funds are invested in non- speculative financial instruments that are usually highly liquid funds.

The Company has no borrowings as on 31 March 2019 but it has credit facilities with banks that will help it in generating funds for the business if required.

3.RELATED PARTY DISCLOSURE:

(I) Parent company / Ultimate holding company: Larsen & Toubro Limited

(II) List of related parties over which control exists/exercised:

Name Relationship

Larsen & Toubro Infotech GmbH Wholly owned subsidiary

Larsen & Toubro Infotech Canada Limited Wholly owned subsidiary

Larsen & Toubro Infotech LLC Wholly owned subsidiary

L&T Infotech Financial Services Technologies Inc. Wholly owned subsidiary

Larsen & Toubro Infotech South Africa (Proprietary) Limited Subsidiary

L&T Information Technology Services (Shanghai) Co. Limited Wholly owned subsidiary

Larsen & Toubro Infotech Austria GmbH Wholly owned subsidiary

L&T Information Technology Spain, Sociedad Limitada Wholly owned subsidiary

L&T Infotech S. DE R.L. DE C.V. Subsidiary

Syncordis Software Services India Private Limited Wholly owned subsidiary

Syncordis S.A. Wholly owned subsidiary

Syncordis France SARL Wholly owned subsidiary

Syncordis Limited Wholly owned subsidiary

Syncordis Software Services S.A. Wholly owned subsidiary

Larsen & Toubro Infotech Norge AS Wholly owned subsidiary

Ruletronics Systems Private Limited Wholly owned subsidiary

Ruletronics Limited Wholly owned subsidiary

Ruletronics Systems Inc Wholly owned subsidiary

Nielsen Partner Unternehmensberater GmbH Wholly owned subsidiary

Nielsen Partner Unternehmensberater AG Wholly owned subsidiary

Nielsen Partner Pte. Ltd. Wholly owned subsidiary

Nielsen Partner S.A. Wholly owned subsidiary

Nielsen&Partner Pty Ltd Wholly owned subsidiary

Nielsen&Partner Company Limited Wholly owned subsidiary

(III) Key Management Personnel:

Name Relationship

Mr. Sanjay Jalona Chief Executive Officer (CEO) & Managing Director

Mr. Nachiket Deshpande * Chief Operating Officer (COO)

Mr. Sudhir Chaturvedi President - Sales (President) & Whole Time Director (WTD)

Mr. Ashok Kumar Sonthalia Chief Financial Officer

Mr. Aftab Zaid Ullah ** Chief Operating Officer (COO) & Whole Time Director

* Appointed as COO w.e.f. 12 December, 2018

** Ceased to be WTD w.e.f. 30 August, 2018 and ceased to be COO w.e.f. 30 November, 2018.

4. SEGMENT REPORTING

Segments have been identified in accordance with Indian Accounting Standards ("Ind AS") 108 on Operating Segments, considering the risk or return profiles of the business. As required under Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the performance and allocates resources based on analysis of various performance indicators. Accordingly, information has been presented for the Company''s operating segments.

The Company has identified segments as Banking, Financial Services & Insurance (BFSI), Manufacturing (MFG), Energy & Utilities (E&U), High-Tech, Media & Entertainment (HIME) and CPG, Retail, Pharma & Others (CRP & Others). The Company has presented its segment results accordingly. The reportable segment information for the corresponding previous year has been restated to reflect the above changes to facilitate comparability.

* Unallocated expenses includes customer settlement expense which is in relation to one time commercial settlement entered by the Company with one of its clients on 27 March 2018.

# The management has identified dues to micro and small enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) or the basis of information made available by the supplier or vendors of the Company.

5. Amount required to be spent by the Company on Corporate Social Responsibility (CSR) related activities during the year 2018-19 is Rs, 222 Mn. The amount recognized as expense in the statement of profit & loss on CSR related activities during the year ended 31 March 2019 is Rs, 224 Mn, which comprises of:

6 Events occurring after the reporting period:

The Board of Directors at its meeting held on May 2, 2019, has recommended final dividend of '' 15.50 per equity share (Face value '' 1) for the financial year ended 31 March 2019.

7 The company is not required to transfer any amount to Investor Education and Protection Fund.

8 In case of figures mentioned as ‘0'' in the financial statements, it denotes figures less than a million.

9 Previous year''s figures have been regrouped/reclassified wherever applicable to facilitate comparability.

10 The financial statements were approved by the Board of Directors on May 2, 2019.

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Mar 31, 2018

1. COMPANY OVERVIEW

Larsen & Toubro Infotech Limited (‘the Company’) offers extensive range of IT services like application development, maintenance and outsourcing, enterprise solutions, infrastructure management services, testing, digital solutions and platform based solutions to the clients in diverse industries.

The Company is a public limited company incorporated and domiciled in India and has its registered office at L&T House, Ballard Estate, Mumbai, Maharashtra, India. The company’s equity shares are listed on the National Stock Exchange Limited and BSE Limited in India.

2. RECENT ACCOUNTING PRONOUNCEMENTS

Indian Accounting Standards (Ind AS) 115 - Revenue from Contracts with Customers

The Ministry of Corporate Affairs (MCA) has notified on 28th Mar’18 Ind AS 115 - Revenue from Contracts with Customers. This Standard will be applicable from the financial years beginning on or after April 1, 2018.

The core principle of Ind AS 115 is that an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard specifically adopts a five step model as below for recognising revenue:

a) Identify the contract(s) with a customer

b) Identify the performance obligations in contract

c) Determine the transaction price

d) Allocate the transaction price to the performance obligations in the contract

e) Recognise revenue when (or as) the entity satisfies a performance obligation

Under Ind AS 115, an entity recognises revenue when (or as) a performance obligation is satisfied, i.e. when ‘control’ of the goods or services underlying the particular performance obligation is transferred to the customer.

The Company will apply Ind AS 115 from April 1, 2018, retrospectively to all the contracts with customers which are not completed as on April 1, 2018. The cumulative effect of initially applying the standard will be recognised as an adjustment to the opening balance in retained earnings on April 1, 2018 at the time of reporting for financial year 2018-19. The Company has evaluated its major contracts with customers and does not expect any material impact of the adoption of this Standard on its retained earnings as on April 1, 2018 as well as to its net income on an ongoing basis.

VI) The aggregate number of equity shares allotted as fully paid up by way of bonus shares in immediately preceding five years ended 31 March 2018 are Nil (previous period of five years ended 31 March 2017 - Nil)

VII) The aggregate number of equity shares issued pursuant to contract, without payment being received in cash in immediately preceding five years ended 31 March 2018 - Nil (previous period of five years ended 31 March 2017 - Nil)

VIII) During the year ended 31 March 2018, the amount of interim dividend distributed to equity shareholder was Rs.8.00 per equity share for the year ended 31 March 2018 and final dividend of Rs.9.70 per equity share for the year ended 31 March 2017.

IX) Weighted average share price at the date of exercise for stock options exercised during the year is Rs.850 per share.

X) Weighted average fair value of options granted during the year is Rs.644.71

XI) The fair value has been calculated using the Black-Scholes Option Pricing model and significant assumptions and inputs to estimate the fair value options granted during the year are as follows:

XII) The balance in share option outstanding account as at 31 March 2018 is Rs.1,217 Mn (previous year Rs.1,511 Mn)

3 Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for: Rs.178 Mn (previous year Rs.151 Mn).

VIII) Projected plan cash flow:

The table below shows the expected cash flow profile of the benefits to be paid to the current membership of the plan (which in case of serving employees, if any, is based on service accrued by employee up to valuation date):

IX) Sensitivity analysis

i) Post retirement benefits:

Although the obligation of the Company under the post-retirement medical benefit plan is limited to the overall ceiling limits, assumed healthcare cost trend rates may affect the amounts recognised in the statement of profit and loss. The benefit obligation results for the cost of paying future hospitalization premiums to insurance company and reimbursement of domiciliary medical expenses in future for the employee / beneficiaries during their lifetime is sensitive to discount rate, future increase in healthcare costs and longevity. The following table summarizes the impact in percentage terms on the reported defined benefit obligation at the end of the reporting period arising on account changes in these three key parameters:

ii) Gratuity:

Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in demographic assumptions. The key actuarial assumptions to which the benefit obligation results are particularly sensitive to are discount rate and future salary escalation rate. The following table summarizes the impact in percentage terms on the reported defined benefit obligation at the end of the reporting period arising on account of an increase or decrease in the reported assumption as below:

X) General descriptions of defined benefit plans:

i) Gratuity plan

The Company makes contributions to the Company’s employees’ Company Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees. The scheme provides for lump sum payment to employees at retirement or death while in employment or termination of employment of an amount equivalent to 15 days salary for every completed year of service or part thereof in excess of six months, provided the employee has completed five years in service.

ii) Post-retirement medical benefit plan

The post-retirement medical benefit plan provides for reimbursement of health care costs to certain categories of employees post their retirement. The reimbursement is subject to an overall ceiling limit sanctioned at the time of retirement. The ceiling limits are based on cadre of the employee at the time of retirement.

i) Provident fund plan

The Company’s provident fund plan is managed by its holding company through a Trust permitted under the Provident Fund Act, 1952. The plan envisages contribution by employer and employees and guarantees interest at the rate notified by the Provident Fund Authority. The contribution by employer and employee together with interest are payable at the time of separation from service or retirement whichever is earlier. The benefit under this plan vests immediately on rendering of service.

The interest payment obligation of trust managed provident fund is assumed to be adequately covered by the interest income on long term investments of the fund. Any shortfall in the interest income over the interest obligation is recognised immediately in the statement of profit and loss as actuarial loss. Any loss arising out of the investment risk and actuarial risk associated with the plan is also recognised as expense in the period in which such loss occurs. Further, on amount of ‘ Nil has been provided based on actuarial valuation towards the future obligation arising out of interest rate guarantee associated with the plan.

II) Fair value hierarchy used by the Company for valuation of financial assets and liabilities recognised at FVTPL and FVTOCI is as below:

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

Level 2- Inputs other than quoted prices included with in level 1 that are observable for assets or liabilities either directly or indirectly. Level 3- Inputs for assets or liabilities that are not based on observable market data

III) Financial risk management

The Company is exposed to foreign currency risk, interest rate risk, credit or counterparty risk and liquidity risk.

i) Currency risk

Primary market risk to the Company is foreign exchange risk.

The Company uses derivative financial instruments to mitigate foreign exchange related exposures. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision.

The Company’s revenues are principally in foreign currencies and the maximum exposure is in US dollars.

The Board of Directors has approved the Company’s financial risk management policy covering management of foreign currency exposures. The treasury department monitors the foreign currency exposures and takes appropriate forward covers to mitigate its risk. The Company hedges its exposure on a net basis (i.e. expected earnings in foreign currency less expected expenditure in related currency) These hedges are cash flow hedges as well as hedges not designated as cash flow hedges.

The Company does not enter into hedge transactions for either trading or speculative purposes.

The outstanding forward contracts at the year end their maturity profile and sensitivity analysis are as under.

Fair value of forward contracts designated as cash flow hedges of USD-INR as at 31 March 2018 and 31 March 2017 was Rs.49,722 Mn and Rs.57,886 Mn respectively. Outstanding number of contracts as at 31 March 2018 were 266 and 31 March 2017 were 269

B) The foreign exchange forward contracts designated as cash flow hedges mature maximum within 36 months. The table below analyses the derivative financial instrument into relevant maturity Companying based on the remaining period as of the balance sheet. Contracts with maturity not later than twelve months include certain contracts which can be rolled over to subsequent periods in line with underlying exposures:

C) Value-at-Risk (VaR)

To provide a meaningful assessment of the foreign currency risk associated with the Company’s foreign currency derivative positions against off balance sheet exposures and unhedged portion of on-balance sheet exposures, the Company uses a multicurrency correlated VaR model. The VaR model uses a Monte Carlo simulation to generate thousands of random market price paths for foreign currencies against Indian rupee taking into account the correlations between them. The VaR is the expected loss in value of the exposures due to overnight movement in spot exchange rates, at 95% confidence interval. The VaR model is not intended to represent actual losses but is used as a risk estimation tool. The model assumes normal market conditions and is a historical best fit model. Because the Company uses foreign currency instruments for hedging purposes, the loss in fair value incurred on those instruments are generally offset by increases in the fair value of the underlying exposures for on-balance sheet exposures. The overnight VaR of the Company at 95% confidence level is Rs.313 Mn as at 31 March 2018 (Rs.410 Mn as at 31 March 2017).

Actual future gains and losses associated with forward contracts designated as cash flow hedge may differ materially from the sensitivity analyses performed as of 31 March 2018 due to the inherent limitations associated with predicting the timing and amount of changes in foreign currency exchanges rates and the Company’s actual exposures and position.

ii) Interest risk

The Company has no interest rate risk in case of borrowings as on 31 March 2018. However the Company invests its surplus funds in Debt mutual funds. The Company mitigates the risk of counter-party failure by investing in mutual fund schemes with large asset under management and having investments in debt instruments issued with sound credit rating.

Net assets value (NAV) of debt mutual funds are subject to changes in interest rates. Every one percent increase or decrease in the NAV of debt mutual funds where the company holds investments will impact he Company’s profit after tax by Rs.126 Mn in 2017-18 (Rs.94 Mn in 2016-17).

iii) Credit risk

The principal credit risk that the Company exposed to is non-collection of trade receivable and late collection of receivable leading to credit loss. The risk is mitigated by reviewing creditworthiness of the prospective customers prior to entering into contract and post contracting, through continuous monitoring of collections by a dedicated team.

The Company makes adequate provision for non-collection of trade receivable. Further, the Company has not suffered significant payment defaults by its customers.

In addition, for delay in collection of receivable, the Company has made provision for Expected Credit loss (ECL) based on ageing analysis of its trade receivable. These range from 1.5% for dues outstanding up to six months to 19.2% for dues outstanding for more than 36 months for 2017-18 (Previous year 1.7% and 21.3% for dues outstanding up to 6 months and for more than 36 months respectively). No provision has been made on trade receivables in not due category.

ECL allowance for non-collection of receivable and delay in collection, on a combined basis was Rs.67 Mn and Rs.65 Mn for the financial years 2017-18 and 2016-17 respectively. The movement in allowance for doubtful debts comprising provision for both non-collection of receivables and delay in collections is as follows:

The percentage of revenue from its top five customers is 36.8% for 2017-18 (37.6% for 2016-17).

The Company is exposed to counter-party risk in relation to financial instruments taken to hedge its foreign currency risks. The counter- parties are banks and the Company has entered into contracts with the counter-parties for all its hedge instruments and in addition, entered into suitable credit support agreements to cap counter party risk where necessary.

iv) Liquidity risk

The Company’s treasury department monitors the cash flows of the Company and surplus funds are invested in non- speculative financial instruments that are usually highly liquid funds.

The Company has no borrowings as on 31 March 2018 but it has credit facilities with banks that will help it to generate funds for the business if required.

The contractual maturities of financial assets and financial liabilities is as follows:

4 LEASES

Operating leases

The Company has taken certain premises, office equipment and employee cars under non-cancellable operating leases. The rental expense in respect of operating leases was Rs.1,842 Mn. (previous year Rs.1,686 Mn) and the future rentals payable are as follows:

5 AMALGAMATION OF SUBSIDIARY

AugmentIQ Data Sciences Private Limited (‘AugmentIQ’) and the Company on 23 June 2017 had filed, an application with Hon’ble National Company Law Tribunal, Mumbai Bench (NCLT), for sanctioning the Scheme of Amalgamation of AugmentIQ with the Company under section 230 - 232 of the Companies Act, 2013 and the rules made thereunder. NCLT had admitted the application and ordered a meeting of shareholders of AugmentIQ and the Company on 23 August 2017 and 24 August 2017, respectively. The Shareholders of AugmentIQ and the Company, respectively had approved the scheme of amalgamation. Subsequently, AugmentIQ and the Company had filed a petition with NCLT on 07 September 2017. The Scheme was sanctioned by the NCLT vide its order dated 02 May 2018. The Scheme was filed with the Registrar of Companies on 21 May 2018 and came into effect on that day with appointed date being 01 April 2017. Consequently, the business, assets, liabilities, duties and obligations of AugmentIQ have been transferred to and vested in the Company from the appointed date of 01 April 2017.

Pursusant to the aforementioned scheme of amalgamation, figures for the year ended 31 March 2018 includes the results of AugmentIQ for the year ended 31 March 2018.

The amalgamation is accounted in accordance with ‘pooling of interest method’ as per Ind AS 103 ‘Business Combinations’ and in accordance with scheme approved by NCLT.

I) All assets and liabilities (including contingent liabilities),reserves, benefits under income-tax, duties and obligations of AugmentIQ have been recorded in the books of account of the Company at their carrying amounts.

II) The amount of share capital of AugmentIQ has been adjusted against the corresponding investment balance held by the Company in the amalgamating company and the excess of share capital over the investment has been adjusted against general reserve.

III) Accordingly, the amalgamation has resulted in transfer of assets and liabilities as on 1 April 2017 in accordance with the terms of the Scheme at the following summarized values:

6 ACQUISITION OF SUBSIDIARY

On 11 December 2017, the company acquired Syncordis Software Services India Private Limited, a wholly owned subsidiary of Syncordis S.A with an enterprise value of Euro 0.35 million, revenue of which was Rs.30.22 million for the year 2016-17.

7 SEGMENT REPORTING

Segments have been identified in accordance with Indian Accounting Standards (“Ind AS”) 108 on Operating Segments, considering the risk or return profiles of the business. As required under Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the performance and allocates resources based on analysis of various performance indicators. Accordingly, information has been presented for the Company’s operating segments.

Reportable segments have been changed during the year ended 31 March 2018 to align with the Industry vertical of customers. The Company has identified segments as Banking, Financial Services & Insurance (BFSI), Manufacturing (MFG), Energy & Utilities (E&U), High-Tech, Media & Entertainment (HIME) and CPG, Retail, Pharma & Others (CRP & Others). The Company has presented its segment results accordingly. The reportable segment information for the corresponding previous year has been restated to reflect the above changes to facilitate comparability.

8 Amount required to be spent by the Compnay on Corporate Social Responsibility (CSR) related activities during the year 2017-18 is Rs.191 Mn. The amount recognised as expense in the statement of profit & loss on CSR related activities during the year ended 31 March 2018 is Rs.117 Mn, which comprises of:

9 EVENTS OCURRING AFTER THE REPORTING PERIOD:

The Board of Directors at its meeting held on 23 May 2018, has declared final dividend of Rs.13.50 per equity share (Face value Rs.1) for the financial year ended 31 March 2018.

10 The company is not required to transfer any amount to Investor Education and Protection Fund.

11 Previous year’s figures have been regrouped/reclassified wherever applicable to facilitate comparability.

12 The financial statements were approved by the Board of Directors on 23 May 2018.

---

Mar 31, 2017

1. Company overview

Larsen & Toubro Infotech Limited (‘the Company’) offers extensive range of IT services like application development, maintenance and outsourcing, enterprise solutions, infrastructure management services and testing and digital solutions to clients in diverse industries.

The Company is a public limited company incorporated and domiciled in India and has its registered office at L&T House, Ballard Estate, Mumbai, Maharashtra, India. The Company’s equity shares are listed on the National Stock Exchange Limited and BSE Limited in India.

2. Intangible assets

The balance useful life of intangible assets as on the respective balance sheet dates is as follows:-

(I) The aggregate number of equity shares allotted as fully paid up by way of bonus shares in immediately preceding five years ended 31 March 2017 are Nil (previous period of five years ended 31 March 2016 - Nil)

(II) The aggregate number of equity shares issued pursuant to contract, without payment being received in cash in immediately preceding five years ended 31 March 2017 - Nil (previous period of five years ended 31 March 2016 - Nil)

(III) During the year ended 31 March 2017, the amount of interim dividend distributed to equity shareholder was Rs.6.85 per share at face value of Rs.1 (previous year Rs.32.65 per share at face value of Rs.1).

(IV) Weighted average share price at the date of exercise for stock options exercised during the year is Rs.621 per share.

(V) Weighted average fair value of options granted during the year is Rs.407.39.

(Vl) The fair value has been calculated using the Black-Scholes Option Pricing model and significant assumptions and inputs to estimate the fair value options granted during the year are as follows:

(VII) The balance in share option outstanding account as at 31 March 2017 is Rs.1,511 Mn (previous year Rs.77 Mn)

3 (I) Disclosure pursuant to Accounting Standard (Ind-AS) 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ movement in provisions.

Nature of provisions:

a) Provision for sales tax pertains to claim made by the authorities on certain transaction of capital nature for the year 2002-03.

b) Provision for others represents liabilities relating to matters in dispute.

4. Contingent liabilities

* Out of contingent tax liability disclosed above, Rs.1,779 Mn (including interest of Rs.184 Mn), pertains to the tax demand arising on account of disallowance of exemption under section 10A on profits earned by STPI Units on onsite export revenue. Company is pursuing appeal against these demands before the relevant Appellate Authorities.

The Company believes that its position is likely to be upheld by appellate authorities and considering the facts, the ultimate outcome of these proceedings is not likely to have material adverse effect on the results of operations or the financial position of the Company.

** The Company has given a corporate guarantee on behalf of its wholly owned subsidiary L&T Infotech Financial Services Technologies Inc. The guarantee is for performance of all obligations by L&T Infotech Financial Services Technologies Inc. Canada in connection with the long term annuity services contracts obtained by them. The obligation under this guarantee is limited in aggregate to the amount of CAD 70,000,000.

The Company has given a corporate guarantee on behalf of its subsidiary, Larsen and Toubro Infotech South Africa (Proprietary) Limited. The guarantee is for performance of all obligations by Larsen & Toubro Infotech South Africa (Proprietary) Limited in connection with software development services and related services. The obligation under this guarantee is limited in aggregate to USD 5,000,000.

# The Company had filed refund of accumulated service tax credit in accordance with relevant CENVAT credit Rules. However, the department has disallowed certain portion of such refunds considering the same as ineligible as not related with output services. The Company is in appeal against these disallowances before the relevant Authorities and is hopeful of getting a favourable order.

5. Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for: Rs.151 Mn (previous year Rs.132 Mn).

The estimates of future salary increases considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment marke

I) sensitivity analysis

i) Post retirement benefits:

Although the obligation of the Company under the post-retirement medical benefit plan is limited to the overall ceiling limits, assumed healthcare cost trend rates may affect the amounts recognised in the statement of profit and loss. The benefit obligation results for the cost of paying future hospitalization premiums to insurance company and reimbursement of domiciliary medical expenses in future for the employee/beneficiaries during their lifetime is sensitive to discount rate, future increase in healthcare costs and longevity. The following table summarizes the impact in percentage terms on the reported defined benefit obligation at the end of the reporting period arising on account changes in these three key parameters:

ii) Gratuity:

Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in demographic assumptions. The key actuarial assumptions to which the benefit obligation results are particularly sensitive to are discount rate and future salary escalation rate. The following table summarizes the impact in percentage terms on the reported defined benefit obligation at the end of the reporting period arising on account of an increase or decrease in the reported assumption by 50 basis points.

II) General descriptions of defined benefit plans:

i) Gratuity plan

The Company makes contributions to the Employees’ Company Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees. The scheme provides for lump sum payment to employees at retirement, death while in employment or termination of employment of an amount equivalent to 15 days salary for every completed year of service or part thereof in excess of six months, provided the employee has completed five years in service.

ii) Post-retirement medical benefit plan

The post-retirement medical benefit plan provides for reimbursement of health care costs to certain categories of employees post their retirement. The reimbursement is subject to an overall ceiling limit sanctioned at the time of retirement. The ceiling limits are based on cadre of the employee at the time of retirement.

iii) Provident fund plan

The Company’s provident fund plan is managed by its holding company through a Trust permitted under the Provident Fund Act, 1952. The plan envisages contribution by employer and employees and guarantees interest at the rate notified by the Provident Fund Authority. The contribution by employer and employee together with interest are payable at the time of separation from service or retirement whichever is earlier. The benefit under this plan vests immediately on rendering of service.

The interest payment obligation of trust managed provident fund is assumed to be adequately covered by the interest income on long term investments of the fund. Any shortfall in the interest income over the interest obligation is recognised immediately in the statement of profit and loss as actuarial loss. Any loss arising out of the investment risk and actuarial risk associated with the plan is also recognised as expense in the period in which such loss occurs. Further, on amount of Rs.Nil has been provided based on actuarial valuation towards the future obligation arising out of interest rate guarantee associated with the plan.

6. financial instruments by category

I) carrying value of financial instruments by categories are as follows. The carrying value of financial assets and liabilities classified at amortised cost is considered to be same as their fair value due to short term nature of these assets and liabilities. hence disclosure of fair value of these assets and liabilitiess have not been provided.

(II) Fair value hierarchy used by the company for valuation of financial assets and liabilities recognised at FvtpL and FVTOCI is as below:

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

Level 2- Inputs other than quoted prices included with in level 1 that are observable for assets or liabilities either directly or indirectly.

(III) Financial risk management

The Company is exposed to foreign currency risk, interest rate risk, credit or counterparty risk and liquidity risk.

i) Currency risk

Primary market risk to the Company is foreign exchange risk.

The Company uses derivative financial instruments to mitigate foreign exchange related exposures. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision.

The Company’s operations are principally in foreign currencies and the maximum exposure is in US dollars.

The Board of Directors has approved the Company’s financial risk management policy covering management of foreign currency exposures. The treasury department, monitors the foreign currency exposures and takes appropriate forward covers to mitigate its risk. The Company hedges its exposure on a net basis (i.e. expected earnings in foreign currency less expected expenditure in related currency) These hedges are cash flow hedges as well as hedges not designated as cash flow hedges.

The Company does not enter into hedge transactions for either trading or speculative purposes.

The outstanding forward contracts at the year end their maturity profile and sensitivity analysis are as under.

Fair value of forward contracts as at 31 March 2017, 31 March 2016 and 1 April 2015 was Rs.57,886 Mn, Rs.42,009 Mn, Rs.53,726 Mn respectively. Outstanding number of contracts as at 31 March 2017 were 269, 31 March 2016 were 118 and 1 April 2015 were 200.

A) Notional value of contracts is given as below:

B) The foreign exchange forward contracts mature maximum within 36 months. The table below analyses the derivative financial instrument into relevant maturity grouping based on the remaining period as of the balance sheet. Contracts with maturity not later than twelve months include certain contracts which can be rolled over to subsequent periods iin line with underlying exposures.

C) Value-at- Risk (VaR)

To provide a meaningful assessment of the foreign currency risk associated with the Company’s foreign currency derivative positions against off balance sheet exposures and unhedged portion of on-balance sheet exposures, the Company uses a multi-currency correlated VaR model. The VaR model uses a Monte Carlo simulation to generate thousands of random market price paths for foreign currencies against Indian rupee taking into account the correlations between them. The VaR is the expected loss in value of the exposures due to overnight movement in spot exchange rates, at 95% confidence interval. The VaR model is not intended to represent actual losses but is used as a risk estimation tool. The model assumes normal market conditions and is a historical best fit model. Because the Company uses foreign currency instruments for hedging purposes, the loss in fair value incurred on those instruments are generally offset by increases in the fair value of the underlying exposures for on-balance sheet exposures. The overnight VaR of the Company at 95% confidence level is Rs.410 Mn as at 31 March 2017 (Rs.247 Mn as at 31 March 2016).

Actual future gains and losses associated with the Company’s investment portfolio and derivative positions may differ materially from the sensitivity analyses performed as of March 31, 2017 due to the inherent limitations associated with predicting the timing and amount of changes in foreign currency exchanges rates and the Company’s actual exposures and position.

ii) Interest risk:

The Company has no interest rate risk in case of borrowings as at 31 March 2017. However the Company invests its surplus funds in debt mutual funds. The Company mitigates the risk of counter-party failure by investing in mutual fund schemes with large asset under management and having investments in debt instruments issued with sound credit rating.

Net Asset Values (NAV) of debt mutual funds are subject to changes in interest rates. Every five percent increase or decrease in the NAV of debt mutual funds where the Company holds investments will impact the Company’s profit after tax by Rs.470 Mn in 2016-2017 and Rs.3 Mn in 2015-2016.

iii) Credit risk

The principal credit risk that the Company exposed to is non-collection of trade receivable and late collection of receivable leading to credit loss. The risk is mitigated by reviewing creditworthiness of the prospective customers prior to entering into contract and post contracting, through continuous monitoring of collections by a dedicated team.

The Company makes adequate provision for non-collection of trade receivable. Further, the Company has not suffered significant payment defaults by its customers.

In addition, for delay in collection of receivable, the Company has made provision for expected credit loss (‘ECL’) based on ageing analysis of its trade receivable. These range from 1.7% for dues outstanding up to six months to 21.3% for dues outstanding for more than 36 months for 2016-17 (Previous year 1.9% and 23.5% for dues outstanding upto 6 months and for more than 36 months respectively). No provision has been made on trade receivables in not due category.

ECL allowance for non-collection of receivable and delay in collection, on a combined basis were Rs.65 Mn and Rs.62 Mn for the financial years 2016-17 and 2015-16 respectively. The movement in allowance for doubtful debts comprising provision for both non collection of receivables and delay in collections is as follows:

The percentage of revenue from its top five customers is 37.6% for 2016-17 (37.5% for 2015-16).

The counter-party risk that Company is exposed to is principally for financial instruments taken to hedge its foreign currency risks. The counter- parties are mainly banks and the Company has enter into contracts with the counter-parties for all its hedge instruments and in addition, entered into suitable credit support agreements to cap counter party risk where necessary.

iv) Liquidity risk

The Company’s treasury department monitors the cash flows of the Company and surplus funds are invested in non-speculative financial instruments that are usually highly liquid funds.

The Company has no borrowings as on 31 March 2017 but it has credit facilities with banks that will help it to generate funds for the business if required.

7. LEASES

(I) Finance leases

In accordance with Ind AS 17 ‘Leases’ the assets acquired under finance leases are capitalised and a loan liability is recognised for an equivalent amount. Consequently depreciation is provided on such assets. Lease rentals paid are allocated to the liability and the interest is charged to statement of profit and loss.

(II) Operating leases

The Company has taken certain premises, office equipment and employee cars under non-cancellable operating leases. The rental expense in respect of operating leases was Rs.1,554 Mn. (previous year Rs.1,552 Mn) and the future rentals payable are as follows:

8. Amalgamation of subsidiary

GDA Technologies Limited (GDA) has been amalgamated with the Company with effect from 1 April 2016. The Board of Directors of the Company and GDA have approved the scheme of amalgamation of GDA with the Company on October 17, 2014, with April 01,2016 as the appointed date. Accordingly, a petition for sanctioning the scheme of amalgamation has been filed with the Hon’ble High Court of Judicature at Bombay and the Hon’ble High Court of Judicature at Madras. The Scheme has been sanctioned by the Hon’ble High Court of Judicature at Bombay vide its order dated 1 April 2016 and the approval of the Scheme by the Hon’ble High Court of Madras is sanctioned on 3 August 2016 with effective 1 April 2016. The difference between the amounts recorded as investments of the Company and the amount of share capital of GDA has been adjusted in the general reserve.

The amalgamation is accounted in accordance with ‘pooling of interest method’ as per Ind AS 103 ‘Business Combinations’ and in accordance with scheme approved by the Hon’ble High Court of Bombay and Hon’ble High Court of Madras.

I) All assets and liabilities (including contingent liabilities),reserves, benefits under income-tax, benefits for under special economic zone registrations, duties and obligations of GDA have been recorded in the books of account of the Company at their carrying amounts.

II) The amount of share capital of GDA has been adjusted against the corresponding investment balance held by the Company in the amalgamating company and the excess of share capital over the investment has been adjusted against general reserve.

III) Accordingly, the amalgamation has resulted in transfer of assets and liabilities as on 1 April 2016 in accordance with the terms of the Scheme at the following summarized values:

9. Acquisition of subsidiary

On 30 November 2016, the Company has acquired 100% stake in a Pune based company, AugmentIQ Data Sciences Private Limited (AugmentIQ) for Rs.71 Mn.

10. RELATED PARTY DISCLOSURE:

(I) parent company/ultimate holding company: Larsen & Toubro Limited

(II) List of related parties over which control exists/exercised:

(Ill) Key Management personnel:

1 Appointed as Chief Executive Officer & Managing Director w.e.f. August 10, 2015

2 Appointed as COO w.e.f February 09 2016 and Whole Time Director w.e.f November 09, 2016

3 Appointed as President w.e.f September 12, 2016 and Whole time Director w.e.f November 09, 2016

4 Appointed as Chief Financial Officer w.e.f August 26, 2015

5 Ceased to be Director w.e.f September 25, 2015

6 Ceased to be Director w.e.f August 26, 2015

7 Ceased to be Director w.e.f April 07, 2015

8 Ceased to be Director w.e.f August 25, 2015

11.SEGMENTAL REPORTING

Segments have been identified in accordance with Indian Accounting standards (‘Ind AS’) 108 on operating segments considering the risk or return profiles of the business. As defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the company performance and allocates resources based on an analysis of various performance indicators. Accordingly, information has been presented for the Company’s operating segments. The accounting is consistently applied to record revenue and expenses for respective segments and as are set out in significant accounting policies.

The Company has two business segments. Services cluster includes Banking & Financial Services, Insurance, Media & Entertainment, Travel & Logistics and Healthcare and others. Industrial cluster includes Hi Tech and Consumer Electronics, Consumer, Retail & Pharma, Energy & Process, Automobile & Aerospace, Plant Equipment & Industrial Machinery, Utilities and Engineering and Construction and others. The Company has presented its segment results accordingly.

12. EVENTS OCCURING AFTER THE REPORTING PERIOD

The Board of Directors at its meeting held on 4 May 2017, has declared final dividend of Rs.9.70 per equity share (Face value Re 1).

13. FIRST-TIME ADOPTION OF IND-AS

The Financial statements of the Company for the year ended 31 March 2017 have been prepared in accordance with Ind AS. This is the first set of financial statements in accordance with Ind AS. The Company has followed Ind AS 101: ‘First time adoption of Indian Accounting Standards’, with 1 April, 2015 as the transition date.

The transition to Ind AS has resulted in changes in the presentation of the financial statement, disclosures in the notes thereto including accounting policies. The accounting policies set out in note 2 have been applied in preparing the financial statements for the year ended 31 March 2017 and the comparative financial statements.

Impact of the transition from iGAAP to Ind AS on the Company’s financial statements, exemptions on first time adoption of Ind AS availed in accordance with Ind AS 101 and reconciliation of financial statements is explained below:

(I) Exemptions availed on first time adoption of Ind-As 101

i) Business combinations:

Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a date when the entity acquires the control of the subsidiary. The Company has availed the exemption and has restated the balances prospectively as on the date of transition.

ii) Deemed cost:

Ind AS 101 permits a first-time adopter to elect fair valuation or to continue with the carrying value for property, plant and equipment measured as per the IGAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. On transition to Ind AS, the Company has elected to continue with the carrying value of its property plant and equipment recognized as at 1 April 2015 measured as per the Indian GAAP.

iii) Share-based payment

A first time adopter has option to apply provisions ofInd AS 102 Share-based payments to equity instruments that were granted on or before the date of transition to Ind AS. Accordingly, at the date of transition, the Company has measured such unvested options at fair value.

(II) Reconciliations as required under Ind As 101 as at 31 March 2016 and 1 april 2015 are as given below:

14. Amount required to be spent by the Company on Corporate Social Responsibility (CSR) related activities during the Year 2016-17 is Rs.173 Mn. The amount recognised as expense in the statement of profit & loss on CSR related activities during the year ended 31 March 2017 is Rs.65 Mn, which comprises of:

15. The Company is not required to transfer any amount to Investor Education and Protection Fund.

16. The financial statements were approved by the Board of Directors on 04 May 2017.