At the standalone level, the total income of the Company during the financial year under review increased by 50.34%  from INR 6,708 million in the previous financial year to INR 10,085 million. Loss before tax for the period under review stood at INR 415 million as against loss of INR 57 million in the previous financial year. Loss after tax for the period under review stood at INR 560 million as against loss of INR 26 million in the previous financial year.   At the consolidated level, the total income of the Company during the year financial under review increased by 55.53% from INR 13,140 million in the previous year to INR 20,437 million. Profit before tax stood at INR 3,134 million as against loss of INR 1,475 million in the previous year. Profit after tax stood at INR 1,944 million as against loss of INR 1,484 million in the previous year.    

As part of its operations, Fractal diligently explores all avenues for incorporating sustainable resources. We have made an effort towards conserving energy and protecting the environment during the period under review.   Improvements achieved in the considered financial year.   - We opted for 100% green energy (Renewable energy) for our electricity demand in Mumbai. This will not only help in attaining our goal for net zero emission but will also reduce our carbon offsetting/sequestration load. While we have been able to provide green power to our largest office since Dec'21, our other offices in India are yet to be sourced through green power due to the state electricity regulatory commission's limitations. We are working on alternate methods to convert our electricity demands through green power.   - Fractal has reported its GHG emissions on the CDP portal 2 years in a row on client request.  We have reported for Fractal India operated locations accounting for >80% operations.   SBTi commitment letter submitted: March 2023, acceptance received: April 2023.   - Fractal has committed to set near- and long-term company-wide emission reductions in line with science-based net-zero with the Science Based Targets initiative (SBTi). Fractal has responded to the SBTi’s urgent call for corporate climate action by committing to align with 1.5°C and net-zero through the Business Ambition for 1.5°C camp Fractal has implemented sensor-based taps & water aerators at all office locations to limit water wastage.   - 100% sensor-based water taps across more than 75% Fractal facilities, have timers that prevent any opportunistic water wastage.   - Air conditioning temperature across Fractal locations are set at 24-26 degree centigrade. This enables an energy consumption reduction by 15%.   - Enhanced Replaced AC’s having R22, R23 and R410A refrigerants with AC’s having low Global warming potential (GWP) refrigerant.   - Fractal has moved to 100% LED lights usage across all its facilities.   - Fractal abides with highest level of standards when it comes to waste management. Two of the largest offices of Fractal are LEED certified. The largest place also complies with WELL standards (WELL Platinum at Mumbai). These standards help us in minimizing the waste, upcycling/recycling the created waste, for e.g., these offices have STP units which recycles water, fresh air circulation rate across 90% of Fractal facilities, has reduced the requirement of frequent duct cleaning and is also a substantial safety net against COVID-19.   - Wastepaper is given to strategic upcycling vendor who in-turn helps in upcycling these products. Apart from these, there are multiple other avenues like PIR senser based lights, ambient sensors, water aerators etc. for optimizing building services.     The following initiatives in progress that should further reduce our carbon footprint:   1. Fractal initiated its carbon inventory project, including an estimation of GHG emissions.   As a pre-requisite to developing Fractal’s roadmap for carbon neutrality.   - In FY 2019, Fractal Mumbai received its LEED’s Gold certificate and continues to hold the same. 2. IAQ – indoor air quality enhancement measures and implementations have been initiated at Fractal’s Gurugram office and the replication of these measures are scheduled at our Bengaluru and Mumbai offices in the next quarter– air sanitization & real time monitoring of air parameters like:   - Carbon dioxide (CO2)   - Temperature   - Relative humidity   - Sulphur Dioxide (SO 2)   - Nitrogen oxides (NO x) etc. in progress and it will be compared with standard parameters.   3. Fractal is also currently in the process of completing its TCFD analysis.  

Your Company has adopted ZERO trust and SASE based architecture and as part of overall security enhancement have deployed following tools:   a. Endpoint Detection and Response Solution (EDR)   Your Company has deployed Sentinel One EDR solution which is very well positioned in protecting your Company’s Laptops and Servers from any real time External and Internal Cyber Threats by making use of its threat intelligence and AI/ ML Features.   b. Security Incident and Event Monitoring (SIEM)   Your Company has deployed Next Gen IBM Qradar SIEM solution to significantly reduce the time to identify, investigate and respond to advanced security threats. With an Analytics-driven approach, IBM Qradar helps security teams gain unparallel visibility, detect and respond to threats faster than before and indeed help improve SOC efficiency.   c. Cloud Access Security Broker (CASB Solution)   Your Company has deployed Netskope which is Market Leader CASB Solution and uses its patented technology Cloud XD by going deeper than any other security provider to quickly target and control activities across thousands of cloud (SaaS and IaaS) services and millions of websites offering features such as Controlling Data Upload, Leakage of sensitive data and Report User credential sharing related threats   d. Zero Trust Network Access (ZTNA)   Your Company has deployed Zscaler ZTNA on all laptops as it focuses on the zero-trust principal of least privilege providing secure access to specific resources one at a time based on a user’s access context.   e. Zscaler Public Internet access (ZPIA)   Your Company has deployed Cloud based Zscaler Proxy on all laptops to control Internet browsing traffic and protect organization from millions of malicious websites. It also offers User control access feature enabling organization to provide granular control on Internet access for different project users such as HC, Finance, IT, Legal and Client Specific.   f. Email Security   Your Company has deployed IronScales Email Security which is an AI-powered Self learning and Anti-Phishing tool and helps protects organization from Phishing mail by offering enhanced security features such Mailbox-level Behavioral Analysis, File Sandboxing, Community-led Threat Protection, Impersonation Protection. It also enables users to report any suspicious mail as Spam or Phishing received on their mailbox.   g.  Cloud Protection Security Manager   Your Company has deployed PRISMA CPSM Tool keeping into mind increasing infrastructure landscape from on prem to Cloud. This tool will help govern complete Security Posture of Cloud Infra and highlight in case any security gaps to be further tightened as part of continuous Improvement.   h. Backup and Restoration   Your Company has deployed VEEAM Backup tool on all Cloud and On-prem Servers in order to achieve business continuity and restoration policy of your Company’s daily, weekly and monthly backups are taken to avoid any data loss in case of any server breakdown.   i. Infrastructure Monitoring Tool   Your Company has deployed all in one monitoring tool Site 24x7 to gain complete control of hybrid infrastructure of cloud and on-prem offering key features such as real time monitoring, customized dashboards, centralized logging and application performance management in order to make sure they are immediately reported to their respective teams via automation and attain minimize response time in order to minimize any potential outage or downtime.

As of March 31, 2023, the Company’s total foreign exchange earnings is INR 8,167 million and total foreign exchange out flow is INR 65.55 million. The details of the foreign exchange earnings and outgo for the year under review and previous year are as under:   Earnings in Foreign Currency:   Particulars March 31, 2023 (INR in Million) March 31, 2022 (INR in Million) Income from consultancy 1,068 1,086 Inter Company Sales 7,099 4,674 Third Party Product Sales - 1 Total 8,167 5,762   Expenditure incurred in Foreign Currency:   Particulars March 31, 2023 (INR in Million) March 31, 2022 (INR in Million) Remuneration & Allowances to Employees for On-site Work. 9.77 2.27 Professional Fees 34.47 (3.57) Others 21.31 11.64 Total 65.55 10.34   Value of Goods Imported on Cost, Insurance and Freight (CIF) basis in respect of:   Particulars March 31, 2023 (INR in Million) March 31, 2022 (INR in Million) Capital Goods - - Total - -      

Pursuant to Section 134(3)(c) of the Companies Act, 2013, your directors confirm that:   (a) in the preparation of the annual financial statements for the year ended March 31, 2023, the applicable accounting standards have been followed with no material departures;   (b) the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at March 31, 2023 and of the losses of the Company for the year ended on that date;   (c) the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;   (d) the directors had prepared the annual financial statements on a ‘going concern’ basis; and     (e) the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.