In applying the Group’s accounting policies, which are described in Note 3, management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Critical judgments in applying the entity accounting policies

The following are the critical judgments, apart from those involving estimations (which are presented separately below), that management has made in the process of applying the group’s accounting policies and that have the most significant effect on the amounts recognized in the financial statements.

Assessment of Control over Investees

Management assesses whether the Group exercises control over investees based on the framework for assessment of control set out in IFRS 10. Management considers various factors including the Group’s power over the investees, the Group’s exposure or rights to variable returns from its involvement with the investees, and the ability to use the Group’s power over the investees to affect the amount of returns on investment in the investees. If the Group’s ownership interest in the investees gave the Group control over the investees, the investees would be consolidated in the Group’s consolidated financial statements. Management will reassess the Group’s control over the investees whenever there are facts and circumstances indicating the factors have changed.

Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below:

(i)

Variable non-cash consideration payable to customer

Consideration payable to a customer is deducted from the transaction price if the Group does not receive a separate identifiable benefit from the customer. When consideration is variable, the estimated amount is included in the transaction price to the extent that it is highly probable that a significant reversal of the cumulative revenue will not occur when the uncertainty associated with the variable consideration is resolved.

On September 2, 2022, the Company entered into a warrant agreement with a customer, where the customer was granted warrants to purchase up to 490,000 of our ADSs subject to vesting over a fixed number of years, adjustment and other terms and conditions set forth therein. The vesting of the warrants is subject to satisfaction of certain fee milestones with respect to services provided to the client under the Master Services Agreement that commenced on August 1, 2021.

Management has assessed and accounted for these warrants in accordance with IFRS 15

Revenue from Contracts with Customers

. These warrants are treated as variable non-cash consideration payable to the customer. Management has determined the measurement date of the non-cash consideration to be the date of the warrant agreement.

At the end of each reporting period, management assesses the probabilities of each sales outcome for the relevant tranche being met in order to determine the fair value of the variable non-cash consideration. The most likely number of shares that will vest depends on the sales outcome with the highest probability of being met. Such assessment includes judgments reflecting the Group’s past experience with respect to services provided to the customer as well as market trends of the industry that the customer operates in.

The fair value of the variable non-cash consideration is determined by reference to the share price of the Company on the measurement date and the most likely number of shares that will vest. The fair value of the variable non-cash consideration is recognized as a reduction of revenue based on the ratio of the actual sales earned from the customer over the sales target of that tranche.

(ii)

Accrued revenue

The Group recognizes accrued revenue arising from services performed based on the rates set up in the agreement and hours incurred at month end. The final billings are subject to discussion and agreement with customers on any fee adjustments based on whether the company achieves or fails to meet campaign key performance indicator targets (where applicable) and in turn, may cause the actual billing to differ from accrued revenue. The carrying amount of unbilled receivables at the end of the reporting period is disclosed in Note 10 to the financial statements.

(iii)

Share-based payments

Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date. The fair value excludes the effect of

non-market-based

vesting condition.

The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group’s estimate of the number of equity instruments that will eventually vest.

At each reporting date, the Group revises its estimate of the number of equity instruments expected to vest as a result of the effect of

non-market-based

vesting conditions. The impact of the revision of the original estimates, if any, is recognized in profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to reserves.

Details regarding the determination of fair value of equity-settled share-based transaction are set out in Note 23.

)

Business Combination

On October 13, 2022, Teledirect Hong Kong Limited (“TDCX HK”, subsequently renamed TDCX (HK) Limited), a company incorporated in Hong Kong, became a wholly-owned subsidiary of the Group after 90 percent of its issued share capital was acquired by the Group.

This transaction was accounted for as a business combination. Significant management judgment is required in estimating the underlying assumptions to be applied in determining the fair values of the identifiable assets acquired and liabilities assumed, including the identification of intangible assets and the fair value of the previously held interest at acquisition date and at end of the reporting period.

The Group engaged an independent valuer to perform a valuation for the purpose of measuring the fair value of the identifiable assets acquired and liabilities assumed at the date of acquisition. Details of the valuation techniques used for measuring the fair value of material assets acquired are set out in Note 34.