Fractal Analytics Annual Report 2023-24

Notes to the Standalone Financial Statements as at and for the year ended March 31, 2024

Notes to the Standalone Financial Statements as at and for the year ended March 31, 2024

20 Revenue from Operations

25 Other Expenses

(in Rupees million) Year ended March 31, 2023

(in Rupees million) Year ended March 31, 2023

Year ended March 31, 2024

Year ended March 31, 2024

Particulars

Particulars

Sale of services (Refer note 27) Income from rendering of services - Third party

Software maintenance charges Legal and professional fees Travelling and conveyance Communication charges Outsourced manpower cost

233 172 172 127

218 185 140 117

2,946 8,501 11,447

2,390 7,551 9,941

-

Related Party (Refer note 29)

Total Revenue from operations

55 38

86 36 49 32 37

Insurance

21 Other Income Interest on : -

Recruitment expenses

2

Repairs and maintenance - Computer

36 40

Facility management expenses

Intercompany loan (Refer note 29)* Unwinding of security deposits

2

4

Payment to auditors (Refer note 25.1 below) Rent, rates and taxes (Refer note below)

7

6

- -

11

11

10

100 149 172

Unwinding of guarantee fees

7

9

Fair value loss on derivatives Cost of delivery (Refer note 29) Provision for doubtful advances

-

Guarantee commission income

24 49 73

30

28

Fair value gain on derivative forward contracts

-

3

10 17

Foreign exchange gain, net

295

Membership and subscription charges Allowance for expected credit loss

20 32

Net gain on redemption of financial instruments Net gain on fair valuation of financial instruments Gain on sale of investment in subsidiary company

156

91 66

8 6

42 17

Corporate social responsibility (Refer note 41)

7

-

Miscellaneous expenses Total other expenses

138

134

Miscellaneous income Total other income

3

77

1,120

1,502

383

583

*Denotes amount less than C 1 million

25.1Payment to auditors : For statutory audit

6 0 1 7

5 0 1 6

22 Employee Benefits Expenses Salaries, wages and bonus

For tax audit*

8,199

6,734

For other services

Contribution to provident fund (Refer note 28)

208 179 258

164 139 228

Total payment to auditors

Gratuity expense (Refer note 28)

*Denotes amount less than C 1 million. Note:

Staff welfare expense

Total employee benefits expenses

8,844

7,265

The Company and all the Directors of the Company has received show cause notice as to why prosecution proceedings under the Income tax Act 1961 (Act) should not be initiated against them for delay in deposit of tax deducted at source ('TDS') of C 405 Million during FY 2019-20 (albeit the deposit of TDS was made with due interest for the delay without any intimation from the tax authorities). Detailed justification was provided against the said show cause notice to establish a reasonable cause for the delay in deposit of TDS. However, without acceptance/admission of guilt of offence under the provisions of the Act and to avoid litigation, the Company in its capacity and on behalf of all directors, has filed on December 7, 2022 an application for compounding of offence before the tax department. The total amount of C 85 million (March 31, 2023: C 80 million) is the estimated compounding fee for the Company and Directors, computed basis compounding guidelines under the Income-tax Act, 1961. 26 Exceptional Items Payable balances to subsidiaries written back (468) - Impairment in value of investments and recoverable from subsidiaries (Refer note below) (1) 368 Total exceptional items (469) 368 Note : During the year, the Company assessed the expected cash flows and the future plans of its subsidiary companies and accordingly, recorded/ (reversed) provision for impairment of investments, other receivable and outstanding loan balances to the extent of C 2 million (March 31, 2023 : C 124 million) in Theremin AI Solutions Private Limited, C (95) million (March 31, 2023 : C 109 million) in Eugenie Technologies Private Limited, C Nil (March 31, 2023 : C 16 million) in Analytics Vidhya Educon Private Limited, C 84 million (March 31, 2023 : C 119 million) in Senseforth AI Research Private Limited and C 6 million (March 31, 2023 : C Nil) in Fractal Alpha Private Limited.

23 Finance Costs Interest on : -

lease liabilities (Refer note 30)

16

39

-

others*

3

1

Total finance cost

19

40

*denotes amount less than C 1. million

24 Depreciation and Amortisation Expense Depreciation on property, plant and equipment (Refer note 3)

200 194

193 189

Depreciation on right-of-use assets (Refer note 4) Amortisation on intangible assets (Refer note 6) Total depreciation and amortisation expense

62

70

456

452

160

161

Fractal Analytics Limited | Annual Report 2023-24

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