2.8 Provisions and Contingent Liabilities
Provision

A provision is recognized if, as a result of
a past event, the Company has a present
legal or constructive obligation that can
be estimated reliably, and it is probable
that an outflow of economic benefits
will be required to settle the obligation.
If the effect of the time value of money
is material, provisions are determined
by discounting the expected future cash
flows at a pre-tax rate that reflects current
market assessments of the time value of
money and the risks specific to the liability.

Where discounting is used, the increase in
the provision due to the passage of time is
recognized as a finance cost.

The amount recognized as a provision is the
best estimate of the consideration required
to settle the present obligation at reporting
date, taking into account the risks and
uncertainties surrounding the obligation.
When some or all of the economic benefits
required to settle a provision are expected
to be recovered from a third party, the
receivable is recognized as an asset if it is
virtually certain that reimbursement will be
received and the amount of the receivable
can be measured reliably.

Contingent Liabilities

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

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

2.9 Revenue recognition

The Company derives revenue primarily
from content solutions, platform solutions
and related services.

Revenue is recognised upon transfer of
control of promised products or services
to customers in an amount that reflects the
consideration which the Company expects
to receive in exchange for those products
or services.

• Revenue related to fixed-price contracts
is recognised using percentage-of-
completion method ('POC method')
of accounting with efforts incurred in
determining the degree of completion of
the performance obligation.

• Revenue from time and material and job
contracts is recognised on output basis
measured by units delivered, efforts
expended, number of transactions
processed, etc.

• Revenue related to fixed price maintenance
is recognized based on time elapsed mode
and revenue is straight lined over the period
of performance.

Revenue is measured based on the
transaction price, which is the consideration,
adjusted for volume discounts, service
level credits, performance bonuses, price
concessions and incentives, if any, as
specified in the contract with the customer.
Revenue also excludes taxes collected from
customers.

Revenue from subsidiaries is recognised
based on transaction price which is at
arm's length.

Contract assets are recognised when there
is excess of revenue earned over billings on
contracts. Contract assets are classified as
unbilled receivables (only act of invoicing is
pending) when there is unconditional right
to receive cash, and only passage of time is
required, as per contractual terms.

Income received in advance comprising of
Unearned and deferred revenue ("contract

liability") is recognised when there is a
billing in excess of revenues.

The billing schedules agreed with customers
include periodic performance based
payments and/or milestone based progress
payments. Invoices are payable within
contractually agreed credit period.

In accordance with Ind AS 37, the Company
recognises an onerous contract provision
when the unavoidable costs of meeting the
obligations under a contract exceed the
economic benefits to be received.

Contracts are subject to modification to
account for changes in contract specification
and requirements. The Company reviews
modification to contract in conjunction
with the original contract, basis which the
transaction price could be allocated to a
new performance obligation, or transaction
price of an existing obligation could
undergo a change. In the event transaction
price is revised for existing obligation, a
cumulative adjustment is accounted for.

The Company disaggregates revenue from
contracts with customers geography and
nature of services.

Use of significant judgements in revenue
recognition

• The Company's contracts with customers
could include promises to transfer multiple
products and services to a customer.
The Company assesses the products/
services promised in a contract and
identifies distinct performance obligations
in the contract. Identification of distinct
performance obligation involves
judgement to determine the deliverables
and the ability of the customer to benefit
independently from such deliverables.

• Judgement is also required to determine
the transaction price for the contract. The

transaction price could be either a fixed
amount of customer consideration or
variable consideration with elements such
as volume discounts, service level credits,
performance bonuses, price concessions
and incentives. The transaction price is
also adjusted for the effects of the time
value of money if the contract includes
a significant financing component. Any
consideration payable to the customer is
adjusted to the transaction price, unless
it is a payment for a distinct product or
service from the customer. The estimated
amount of variable consideration is
adjusted in the transaction price only to
the extent that it is highly probable that
a significant reversal in the amount of
cumulative revenue recognised will not
occur and is reassessed at the end of each
reporting period. The Company allocates
the elements of variable considerations
to all the performance obligations of
the contract unless there is observable
evidence that they pertain to one or more
distinct performance obligations.

• The Company uses judgement to
determine an appropriate standalone
selling price for a performance
obligation. The Company allocates the
transaction price to each performance
obligation on the basis of the relative
standalone selling price of each distinct
product or service promised in the
contract. Where standalone selling price
is not observable, the Company uses the
expected cost plus margin approach to
allocate the transaction price to each
distinct performance obligation.

• The Company exercises judgement in
determining whether the performance
obligation is satisfied at a point in time
or over a period of time. The Company
considers indicators such as how

in the statement of profit and loss, either
on a systematic basis when the Company
recognises, as expenses, the related costs that
the grants are intended to compensate or,
immediately if the costs have already been
incurred.

Government grants related to income are
presented as an offset against the related
expenditure.

2.12 Employee benefits

a) Short-term employee benefits:

All employee benefits falling due within
twelve months of the end of the period
in which the employees render the
related services are classified as short
term employee benefits, which include
benefits like salaries, wages, short term
compensated absences, performance
incentives, etc measured on an
undiscounted basis and are recognised
as expenses in the period in which the
employee renders the related service
and measured accordingly.

b) Post-employment benefits:

Post employment benefit plans are
classified into defined benefits plans
and defined contribution plans as under:

• Gratuity: The Company has an
obligation towards gratuity, a defined
benefit retirement plan covering
eligible employees. The plan provides
for a lump sum payment to vested
employees at retirement, death while
in employment or on termination of
employment of an amount based on
the respective employee's salary and
the tenure of employment, which is
payable upon completion of period as
per Gratuity Act 1972.The liability in

respect of Gratuity is recognised in the
books of accounts based on actuarial
valuation by an independent actuary.
The estimates of future salary increases
take into account the inflation, seniority,
promotion and other relevant factors.
The gratuity liability for the employees
of the Company is funded with an
insurance company in the form of a
qualifying insurance policy. The gratuity
benefit obligation recognised in the
balance sheet represents the present
value of the obligations as reduced by
fair value of assets held by the Insurance
Company. Actuarial gain/losses are
recognised immediately in the other
comprehensive income. Further details
about gratuity obligations are given in
Note 30.

• Superannuation: Certain

employees of the Company are also
participants in the superannuation
plan ('the Plan'), a defined
contribution plan. Contribution made
by the Company to the plan is charged
to Statement of Profit and Loss.

• Provident fund: For employees in
India, provident fund is deposited with
Regional Provident Fund Commissioner.
This is treated as defined contribution
plan. Company's contribution to the
provident fund is charged to Statement
of Profit and Loss.

• Employee State Insurance: For

employees in India, Employee State
Insurance (ESI) is deposited with
Employee State Insurance Corporation.
This is treated as defined contribution
plan. Company's contribution to the
ESI is charged to Statement of Profit
and Loss.

• Social security plans: For

employees outside India, Employees
contributions payable to the social
security plan, which is a defined
contribution scheme, is charged to
the statement of profit and loss in the
period in which the employee renders
services.

c) Other long-term employee
benefits: Compensated absences:

As per the Company's policy, eligible
leaves can be accumulated by the
employees and carried forward to future
periods to either be utilized during the
service, or encashed. Encashment can be
made on early retirement, on separation,
at resignation and upon death of the
employee. Accumulated compensated
absences are treated as other long¬
term employee benefits. The Company's
liability in respect of compensated
absences is recognised in the books of
account based on actuarial valuation
using projected unit credit method as at
Balance Sheet date by an independent
actuary. Actuarial losses/gains are
recognised in the Statement of Profit and
Loss in the year in which they arise.

d) Termination benefits:

Termination benefits are recognised
as an expense when, as a result of a
past event, the Company has a present
obligation that can be estimated reliably,
and it is probable that an outflow of
economic benefits will be required to
settle the obligation.

Actuarial valuation

The liability in respect of all defined
benefit plans is accrued in the books
of account on the basis of actuarial
valuation carried out by an independent

actuary using the Projected Unit Credit
Method, which recognizes each year
of service as giving rise to additional
unit of employee benefit entitlement
and measure each unit separately
to build up the final obligation. The
obligation is measured at the present
value of estimated future cash flows.
The discount rates used for determining
the present value of obligation under
defined benefit plans, is based on
the market yields on Government
securities as at the Balance Sheet date,
having maturity periods approximating
to the terms of related obligations.
Remeasurement gains and losses in
respect of all defined benefit plans
arising from experience adjustments and
changes in actuarial assumptions are
recognised in the period in which they
occur, directly in other comprehensive
income. They are included in retained
earnings in the Statement of Changes
in Equity and in the Balance Sheet.
Changes in the present value of the
defined benefit obligation resulting from
plan amendments or curtailments are
recognised immediately in profit or loss
as past service cost.

Gains or losses on the curtailment or
settlement of any defined benefit plan
are recognised when the curtailment
or settlement occurs. Any differential
between the plan assets (for a funded
defined benefit plan) and the defined
benefit obligation as per actuarial
valuation is recognised as a liability if it is
a deficit or as an asset if it is a surplus (to
the extent of the lower of present value
of any economic benefits available in the
form of refunds from the plan or reduction
in future contribution to the plan).

2.13 Share based payments

Employee stock option plan (ESOP): The fair
value of options granted under the 'MPS
Limited- Employee Stock Options Scheme
2023' (“ESOS 2023“ or “Scheme")
is recognised as an employee benefits
expense with a corresponding increase in
equity. The total amount to be expensed is
determined by reference to the fair value
of the options granted:—including any
market performance conditions (e.g., the
entity's share price)—excluding the impact
of any service and non-market performance
vesting conditions (e.g. profitability, sales
growth targets and remaining an employee
of the entity over a specified time period),
and—including the impact of any non¬
vesting conditions (e.g. the requirement for
employees to save or holdings shares for a
specific period of time). The total expense
is recognised over the vesting period, which
is the period over which all of the specified
vesting conditions are to be satisfied. At
the end of each period, the entity revises
its estimates of the number of options that
are expected to vest based on the non¬
market vesting and service conditions. It
recognises the impact of the revision to
original estimates, if any, in profit or loss,
with a corresponding adjustment to equity.

2.14 Treasury Shares

The Company has created an ESOP Trust
(MPS Employee Welfare Trust “ESOP Trust")
which acts as a vehicle to execute its ESOP
Scheme. The ESOP trust is considered as an
extension of the Company and the shares
held by the ESOP trust are treated as
Treasury shares. The ESOP Trust purchases
Company's share from secondary market
for issuance to the employees on exercise
of the granted stock options. These shares

are recognized at cost and is disclosed
separately as reduction from Other Equity
as treasury shares. No gain or loss is
recognized the Statement of Profit and Loss
on purchase, sale, issuance, or cancellation
of treasury shares.

2.15 Tax Expense

Income tax expense comprises current and
deferred tax. It is recognised in Statement
of Profit and Loss except to the extent that it
relates to a business combination, or items
recognised directly in equity or in OCI.

a) Current tax:

Current tax comprises the expected tax
payable or receivable on the taxable
income or loss for the year. The amount
of current tax payable or receivable
is the best estimate of the tax amount
expected to be paid or received after
considering uncertainty related to
income taxes, if any. It is measured
using tax rates enacted or substantively
enacted at the reporting date.

Current tax assets and liabilities
are offset only if there is a legally
enforceable right to set off the
recognised amounts, and it is intended
to realize the asset and settle the
liability on a net basis or simultaneously.
Any adjustment to the tax payable or
receivable in respect of previous year
is shown separately. While determining
the tax provisions, the Company
assesses whether each uncertain tax
position is to be considered separately
or together with one or more uncertain
tax positions depending upon the
nature and circumstances of each
uncertain tax position.

b) Deferred tax:

Deferred tax is recognised in respect
of temporary differences between
the carrying amounts of assets and
liabilities for financial reporting
purposes and the amounts used for
taxation purposes. Deferred tax is not
recognised for:

• temporary differences arising on the
initial recognition of assets or liabilities
in a transaction that is not a business
combination and that affects neither
accounting nor taxable profit or loss
at the time of the transaction;

• temporary differences related to
freehold land and investments in
subsidiaries, to the extent that the
Company is able to control the timing
of the reversal of the temporary
differences and it is probable that
they will not reverse in the foreseeable
future; and

• taxable temporary differences arising
on the initial recognition of goodwill.

Deferred tax assets are recognised for
unused tax losses, unused tax credits
and deductible temporary differences to
the extent that it is probable that future
taxable profits will be available against
which they can be used. Unrecognised
deferred tax assets are reassessed at
each reporting date and recognised to
the extent that it has become probable
that future taxable profits will be
available against which they can be
used. Deferred tax is measured at the
tax rates that are expected to apply to
the period when the asset is realised or
the liability is settled, based on the laws
that have been enacted or substantively
enacted by the reporting date. The
measurement of deferred tax reflects
the tax consequences that would follow
from the manner in which the Company

expects, at the reporting date, to recover
or settle the carrying amount of its assets
and liabilities.

Deferred tax assets and liabilities are
offset only if there is a legally enforceable
right to set off the recognised amounts,
and it is intended to realize the asset
and settle the liability on a net basis or
simultaneously.

2.16 Dividend Distributions

The Company recognizes a liability to make
payment of dividend to owners of equity
when the distribution is authorized and is no
longer at the discretion of the Company. A
corresponding amount is recognised directly
in equity.

2.17 Foreign currency transactions and
translations

a) Functional and presentation
currency

The financial statements are presented
in Indian Rupees (INR), the functional
currency of the Company. Items
included in the financial statements
of the Company are recorded using
the currency of the primary economic
environment in which the Company
operates (the 'functional currency'). All
the amount have been rounded-off to
the nearest lacs, unless otherwise stated.

b) Transactions and balances

Foreign currency transactions are
translated into the functional currency
using exchange rates at the date of
the transaction or at rates that closely
approximate the rate at the date of the
transaction. At the end of each reporting
period, monetary items denominated in
foreign currencies are retranslated at the
rates prevailing at that date.

Non-monetary items that are measured in
terms of historical cost in a foreign currency
are translated using the exchange rates at
the dates of the initial transactions. Non¬
monetary items measured at fair value in
a foreign currency are translated using the
exchange rates at the date when the fair
value is determined.

Foreign exchange gains and losses from
settlement of these transactions and from
translation of monetary assets and liabilities
at the reporting date exchange rates
are recognised in the Statement of Profit
and Loss.

Foreign currency translation reserve

The exchange differences arising from the
translation of financial statements of foreign
branches with functional currency other
than the Indian Rupee is recognized in other
comprehensive income and is presented
within equity.

2.18 Leases

The Company's lease asset classes primarily
consist of leases for offices, lease lines,
office equipments. The Company, at the
inception of a contract, assesses whether the
contract is a lease or not lease. A contract
is, or contains, a lease if the contract
conveys the right to control the use of an
identified asset for a time in exchange for a
consideration. This policy has been applied
to contracts existing and entered into on or
after 1 April 2019.

The Company recognises a right-of-use
asset and a lease liability at the lease
commencement date. The right-of-use
asset is initially measured at cost, which
comprises the initial amount of the lease
liability adjusted for any lease payments
made at or before the commencement

date, plus any initial direct costs incurred
and an estimate of costs to dismantle and
remove the underlying asset or to restore
the underlying asset or the site on which
it is located, less any lease incentives
received.

The right-of-use asset is subsequently
depreciated using the straight-line method
from the commencement date to the end of
the lease term.

The lease liability is initially measured at the
present value of the lease payments that
are not paid at the commencement date,
discounted using the Company's incremental
borrowing rate. It is remeasured when
there is a change in future lease payments
arising from a change in an index or rate,
if there is a change in the Company's
estimate of the amount expected to be
payable under a residual value guarantee,
or if the Company changes its assessment
of whether it will exercise a purchase,
extension or termination option. When the
lease liability is remeasured in this way, a
corresponding adjustment is made to the
carrying amount of the right-of-use asset,
or is recorded in profit or loss if the carrying
amount of the right-of-use asset has been
reduced to zero.

The Company has elected not to recognise
right-of-use assets and lease liabilities for
short-term leases that have a lease term of
12 months or less and leases of low-value
assets. The Company recognises the lease
payments associated with these leases as
an expense over the lease term.

2.19 Earnings per share

Basic earnings/ (loss) per share is calculated
by dividing the net profit or loss for the
year attributable to equity shareholders by
the weighted average number of equity

shares outstanding during the year. The
weighted average number of equity shares
outstanding during the period is adjusted
for events such as bonus issue, bonus
element in a rights issue, share split, and
reverse share split (consolidation of shares)
that have changed the number of equity
shares outstanding, without a corresponding
change in resources.

For the purpose of calculating diluted
earnings/(loss) per share, the net profit
or loss for the year attributable to equity
shareholders and the weighted average
number of shares outstanding during the
year are adjusted for the effects of all
dilutive potential equity shares, except
where the result would be anti-dilutive.

2.20 Cash Flow Statement

Cash flows are reported using the indirect
method, whereby profit for the period 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. The cash flows from operating,
investing and financing activities of the
Company are segregated.

2.21 Measurement of fair values

A number of the accounting policies and
disclosures require measurement of fair
values, for both financial and non-financial
assets and liabilities.

Fair values are categorised into different
levels in a fair value hierarchy based on
the inputs used in the valuation techniques
as follows:

Level 1: quoted prices (unadjusted) in active
markets for identical assets or liabilities.

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

Level 3: inputs for the asset or liability that
are not based on observable market data
(unobservable inputs).

The Company has an established control
framework with respect to the measurement
of fair values. This includes a finance team
that has overall responsibility for overseeing
all significant fair value measurements,
including Level 3 fair values. The finance team
regularly reviews significant unobservable
inputs and valuation adjustments. If third
party information is used to measure fair
values, then the finance team assesses the
evidence obtained from the third parties to
support the conclusion that these valuations
meet the requirements of Ind AS, including
the level in the fair value hierarchy in which
the valuations should be classified.

When measuring the fair value of an asset
or a liability, the Company uses observable
market data as far as possible. If the inputs
used to measure the fair value of an asset
or a liability fall into different levels of the
fair value hierarchy, then the fair value
measurement is categorised in its entirety in
the same level of the fair value hierarchy as
the lowest level input that is significant to the
entire measurement.

The Company recognises transfers
between levels of the fair value hierarchy
at the end of the reporting period during
which the change has occurred. Further
information about the assumptions made
in measuring fair values used in preparing
these financial statements is included in the
respective notes.

2.22 Recent 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. During the year ended March
31, 2025, MCA has notified Ind AS 117—
Insurance Contracts and amendments to
Ind As 116—Leases , relating to sale and
lease back transactions, applicable from
April 1, 2024. The Company has assessed
that there is no significant impact on its
financial statements.

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