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

The transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions. Outstanding balances at the year-end are unsecured and settlement occurs in cash. Management believes that Company’s international transaction with related parties post March 31, 2023 continue to be at arm’s length and that the transfer pricing legislation will not have any impact on the financial statements, particularly on the amount of provision of taxation for the year ended March 31, 2024. 30 Leases Company as lessee The Company has entered into cancellable leasing arrangement in respect of office premises for a period of 3-5 years which are renewable on mutual consent.

(in Rupees million) March 31, 2023

Sr. No Nature of Transaction

March 31, 2024

9

Investments in equity instruments in subsidiary Fractal Private Limited, Singapore Fractal Analytics Incorporated, USA Theremin Ai Solutions Private Limited Eugenie Technologies Private Limited Asper.AI Technologies Private Limited Senseforth AI Research Private Limited

3

3

3,426

3,426

100

100

1

1

-

121 130 408

130 408

Analytics Vidya Private Limited Fractal Alpha Private Limited

Ind AS 116 - Lease liabilities

5

5

(in Rupees million) As at March 31, 2023

Final Mile Consultants Private Limited Neal Analytics Services Private Limited Cuddle Artificial Intelligence Private Limited

143

159

As at March 31, 2024

Particulars Non-current

81

77

722 168 890

42

7

-

10 Investments in preference shares in subsidiary Theremin AI Solutions Private Limited

Current

229 271

Total

53

53

11

Investments in equity shares in associate Qure.ai Technologies Private Limited Guarantee commission receivable Fractal Analytics Incorporated, USA Provision for doubtful receivables Eugenie Technologies Private Limited Theremin Ai Solutions Private Limited Senseforth AI Research Private Limited

(i) Movement in Lease liabilities: Opening Balance

250

250

12

271

457

132

125

Additions on account of business combinations (Refer note 35)

-

1

13

Add: Addition made during the year Add: Finance cost accrued during the year

864

31 39

53 25 14

46 24

16

Less: Payment of Lease Liabilities

(261)

(257)

- -

Closing Balance

890

271

Fractal Alpha Private Limited*

0

(ii) The contractual maturities of Lease liabilities are as under on undiscounted basis: Payable within one year 245

14 Provision for impairment on Inter corporate loan Eugenie Technologies Private Limited

-

10

243

Senseforth AI Research Private Limited

72

- -

Payable later than one year and not later than five years

853

47

-

-

Fractal Alpha Private Limited

1

(iii) Lease payments recognized for short term leases in Statement of Profit and Loss

15 Impairment provision for investment in equity instruments in subsidiary Theremin Ai Solutions Private Limited

100

100

(iv) Following amounts are recognised in the Statement of Profit and Loss

Eugenie Technologies Private Limited

1

1

(in Rupees million) For the year ended March 31, 2023

Analytics Vidya Private Limited

16

16

For the year ended March 31, 2024

Senseforth AI Research Private Limited

119

119

Fractal Alpha Private Limited

5

-

Particulars

Depreciation on right of use assets Interest expense on lease liabilities

194

189

16 Impairment provision for investment in 0.1% Compulsory Convertible Debentures Eugenie Technologies Private Limited

16

39

-

92

Expense relating to low value assets / short term leases (included in other expenses) - The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due. 31 Fair Value Measurement - The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities if the carrying amount is a reasonable approximation of fair value those include cash and cash equivalents, other bank balances, trade receivables and trade payables.

17

Impairment provision for investment in preference shares in subsidiary Theremin Ai Solutions Private Limited

53

53

18 Impairment provision for deemed investment in subsidiaries Theremin Ai Solutions Private Limited

2

2

19 Business Consideration payable

Final Mile Consultants Private Limited Neal Analytics Services Private Limited

- -

31 78

*Denotes amount less than C 1 million. Refer note 13 with respect to initial public offer expense.

Key managerial personnel who are under the employment of the Company are entitled to post employment benefits recognized as per Ind AS 19 - 'Employee Benefits' in the financial statements. As these employee benefits are amounts provided on the basis of actuarial valuation, the same is not included above. Gratuity has been computed for the Company as a whole and hence excluded. ^ Total employee stock option expense for the years ended March 31, 2024 and March 31, 2023 includes a charge of C 63 million and C 86 million, respectively, towards key management personnel." ^^ The Company has not recognised interest income on loan to subsidiaries where the requirement does not meet the recognition criteria as per Ind AS.

170

171

Fractal Analytics Limited | Annual Report 2023-24

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