p) Provisions and contingencies
Provisions

A provision is recognised if, as a result of a past event, the
Company has a present legal or constructive obligation that
is reasonably estimable, 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
The increase in the provision due to the passage of time is
recognised as interest expense.

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 not wholly within 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 or it cannot be measured with sufficient
reliability. The Company does not recognise a contingent
liability but discloses its existence in the financial statements.

Contingent assets

Contingent assets are neither recognised nor disclosed.
However, when realisation of income is virtually certain,
related asset is recognised."

q) Financial instruments
Financial assets

Initial recognition and measurement

Financial assets (other than trade receivables) are recognized
when the Company becomes a party to the contractual
provisions of the financial instrument and are measured
initially at fair value adjusted for transaction costs, except
for those carried at fair value through statement of profit and
loss which are measured initially at fair value. Subsequent
measurement of financial assets is described below. Trade
receivables are recognized at their transaction price as the
same do not contain significant financing component.

Subsequent measurement

For the purpose of subsequent measurement, financial assets
are classified and measured based on the entity's business
model for managing the financial asset and the contractual
cash flow characteristics of the financial asset at:

a. Amortized cost

b. Fair Value Through Other Comprehensive Income
(FVTOCI) or

c. Fair Value Through Profit or Loss (FVTPL)

All financial assets are reviewed for impairment at least at
each reporting date to identify whether there is any objective
evidence that a financial asset or a group of financial assets
is impaired. Different criteria to determine impairment are
applied for each category of financial assets, which are
described below.

(i) Financial asset at amortised cost

Includes assets that are held within a business model
where the objective is to hold the financial assets to collect
contractual cash flows and the contractual terms gives rise
on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

These assets are measured subsequently at amortized cost
using the effective interest method. The loss allowance at
each reporting period is evaluated based on the expected
credit losses for next 12 months and credit risk exposure. The
Company shall also measure the loss allowance for a financial
instrument at an amount equal to the lifetime expected
credit losses if the credit risk on that financial instrument has
increased significantly since initial recognition.

(ii) Financial assets at Fair Value Through Other
Comprehensive Income (FVTOCI)

Includes assets that are held within a business model where
the objective is both collecting contractual cash flows and
selling financial assets along with the contractual terms
giving rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount
outstanding. At initial recognition, the Company, based on its
assessment, makes an irrevocable election to present in other
comprehensive income the changes in the fair value of an
investment in an equity instrument that is not held for trading.

These elections are made on an instrument-by instrument (i.e.
share-by-share) basis. If the Company decides to classify an
equity instrument as at FVTOCI, then all fair value changes
on the instrument, excluding dividends, impairment gains or
losses and foreign exchange gains and losses, are recognized
in other comprehensive income. There is no recycling of the
amounts from OCI to profit or loss, even on sale of investment.
The dividends from such instruments are recognized in
statement of profit and loss.

The fair value of financial assets in this category are
determined by reference to active market transactions or
using a valuation technique where no active market exists.

The loss allowance at each reporting period is evaluated
based on the expected credit losses for next 12 months and
credit risk exposure. The Company shall also measure the
loss allowance for a financial instrument at an amount equal
to the lifetime expected credit losses if the credit risk on that
financial instrument has increased significantly since initial
recognition. The loss allowance shall be recognized in other
comprehensive income and shall not reduce the carrying
amount of the financial asset in the balance sheet.

(iii) Financial assets at Fair Value Through Profit or Loss
(FVTPL)

Financial assets at FVTPL include financial assets that are
designated at FVTPL upon initial recognition and financial
assets that are not measured at amortized cost or at fair value
through other comprehensive income. All derivative financial
instruments fall into this category, except for those designated
and effective as hedging instruments, for which the hedge
accounting requirements apply Assets in this category are
measured at fair value with gains or losses recognized in

statement of profit and loss. The fair value of financial assets
in this category are determined by reference to active market
transactions or using a valuation technique where no active
market exists.

The loss allowance at each reporting period is evaluated
based on the expected credit losses for next 12 months and
credit risk exposure. The Company shall also measure the
loss allowance for a financial instrument at an amount equal
to the lifetime expected credit losses if the credit risk on that
financial instrument has increased significantly since initial
recognition. The loss allowance shall be recognized in the
statement of profit and loss.

De-recognition of financial assets

A financial asset (or, where applicable, a part of a financial
asset or part of a group of similar financial assets) is primarily
derecognized (i.e. removed from the Company’s standalone
balance sheet) when:

a. The rights to receive cash flows from the asset have
expired, or

b. The Company has transferred its rights to receive cash
flows from the asset or has assumed an obligation to pay
the received cash flows in full without material delay to
a third party under a ‘pass-through’ arrangement and
either (i) the Company has transferred substantially all
the risks and rewards of the asset, or (ii) the Company
has neither transferred nor retained substantially all
the risks and rewards of the asset, but has transferred
control of the asset.

When the Company has transferred its rights to receive
cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if and to what extent it has retained
the risks and rewards of ownership. When it has neither
transferred nor retained substantially all of the risks and
rewards of the asset, nor transferred control of the asset, the
Company continues to recognise the transferred asset to the
extent of the Company’s continuing involvement. In that case,
the Company also recognises an associated liability. The
transferred asset and the associated liability are measured
on a basis that reflects the rights and obligations that the
Company has retained.

Continuing involvement that takes the form of a guarantee
over the transferred asset is measured at the lower of the
original carrying amount of the asset and the maximum
amount of consideration that the Company could be required
to repay.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as
financial liabilities at fair value through profit or loss, loans
and borrowings, payables, or as derivatives designated as
hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in
the case of loans and borrowings and payables, net of directly
attributable transaction costs.

The Company’s financial liabilities include trade and other
payables, loans and borrowings including, financial guarantee
contracts.

Subsequent measurement

The measurement of financial liabilities depends on their
classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include
financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through
profit or loss. Financial liabilities are classified as held for
trading if they are incurred for the purpose of repurchasing
in the near term. This category also includes derivative
financial instruments entered into by the Company that are
not designated as hedging instruments in hedge relationships
as defined by Ind AS 109 Financial Instruments.

Gains or losses on liabilities held for trading are
recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair
value through profit or loss are designated as such at the
initial date of recognition, and only if the criteria in Ind AS 109
are satisfied. For liabilities designated as FVTPL, fair value
gains/losses attributable to changes in own credit risk are
recognized in OCI. These gains/loss are not subsequently
transferred to P&L. However, the Company may transfer the
cumulative gain or loss within equity All other changes in fair
value of such liability are recognised in the statement of profit
or loss. The Company has not designated any financial liability
as at fair value through profit and loss.

Loans and borrowings

This is the category most relevant to the Company. After
initial recognition, interest-bearing loans and borrowings
are subsequently measured at amortised cost using the EIR
method. Gains and losses are recognised in profit or loss
when the liabilities are derecognised as well as through the
EIR amortisation process.

Amortised cost is calculated by taking into account any
discount or premium on acquisition and fees or costs that are
an integral part of the EIR. The EIR amortisation is included as
finance costs in the statement of profit and loss.

Derecognition of financial liabilities

A financial liability is derecognised when the obligation under
the liability is discharged or cancelled or expires. When an
existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange
or modification is treated as the derecognition of the original
liability and the recognition of a new liability. The difference
in the respective carrying amounts is recognised in the
statement of profit and loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net
amount is reported in the balance sheet if there is a currently
enforceable legal right to offset the recognised amounts and

there is an intention to settle on a net basis, to realise the
assets and settle the liabilities simultaneously.

r) Impairment of financial assets

In accordance with Ind AS 109 Financial Instruments, the
Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss for financial
assets.

The Company tracks credit risk and changes thereon for
each customer. For recognition of impairment loss on other
financial assets and risk exposure, the Company determines
that whether there has been a significant increase in the credit
risk since initial recognition. If credit risk has not increased
significantly, 12-month ECL is used to provide for impairment
loss.

ECL is the difference between all contractual cash flows that
are due to the Company in accordance with the contract and
all the cash flows that the entity expects to receive (i.e., all cash
shortfalls), discounted at the original EIR. When estimating
the cash flows, an entity is required to consider:

- All contractual terms of the financial instrument over the
expected life of the financial instrument. However, in rare
cases when the expected life of the financial instrument
cannot be estimated reliably, then the entity uses the
remaining contractual term of the financial instrument.

- Cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms.

The Company uses default rate for credit risk to determine
impairment loss allowance on portfolio of its trade receivables.

Trade receivables

The Company applies approach permitted by Ind AS 109
Financial Instruments, which requires expected lifetime
losses to be recognised from initial recognition of receivables.

Other financial assets

For recognition of impairment loss on other financial assets
and risk exposure, the Company determines whether there
has been a significant increase in the credit risk since initial
recognition and if credit risk has increased significantly,
impairment loss is provided.

s) Fair value measurement

Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The
fair value measurement is based on the presumption that the
transaction to sell the asset or transfer the liability takes place
either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most
advantageous market for the asset or liability

The principal or the most advantageous market must be
accessible by the Company.

The fair value of an asset or a liability is measured using the
assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in
their economic best interest.

A fair value measurement of a non-financial asset takes into
account a market participant’s ability to generate economic
benefits by using the asset in its highest and best use or by
selling it to another market participant that would use the
asset in its highest and best use.

The Company uses valuation techniques that are appropriate
in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of relevant
observable inputs and minimising the use of unobservable
inputs.

All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based
on the lowest level input that is significant to the fair value
measurement as a whole:

Level 1: Quoted (unadjusted) market prices in active
markets for identical assets or liabilities

Level 2: Valuation techniques for which the lowest level input
that is significant to the fair value measurement is
directly or indirectly observable

Level 3: Valuation techniques for which the lowest level input
that is significant to the fair value measurement is
unobservable

t) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise
cash at banks and on hand and short-term deposits with an
original maturity of three months or less, which are subject to
an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and
cash equivalents consist of cash and short-term deposits, as
defined above, as they are considered an integral part of the
Company’s cash management.

u) Segment reporting

Operating segments are reported in a manner consistent with
the internal reporting provided to the chief operating decision
maker. The Company is primarily engaged in the business
of real estate development and related activities including
construction which constitutes its single reportable segment.

v) Earnings/(Loss) per Share (EPS)

Basic EPS are calculated by dividing the net profit or loss
for the period attributable to equity shareholders by the
weighted average number of equity shares outstanding
during the period. Partly paid equity shares are treated as a
fraction of an equity share to the extent that they are entitled
to participate in dividends relative to a fully paid equity share
during the reporting period. The weighted average number

of equity shares outstanding during the period is adjusted for
events such as bonus issue that have changed the number of
equity shares outstanding, without a corresponding change in
resources.

Diluted EPS amounts are calculated by dividing the profit
attributable to equity holders of the Company (after adjusting
for interest on the convertible preference shares, if any) by
the weighted average number of equity shares outstanding
during the year plus the weighted average number of equity
shares that would be issued on conversion of all the dilutive
potential equity shares into equity shares. Dilutive potential
equity shares are deemed converted as of the beginning

of the period, unless issued at a later date. Dilutive potential
equity shares are determined independently for each period
presented.

w) Cash flow statement

Cash flows are reported using the indirect method, whereby
profit/(loss) before tax is adjusted for the effects of
transactions of non-cash nature and any deferrals or accruals
of past or future receipts or payments. In the cash flow
statement, cash and cash equivalents includes cash in hand,
cheques on hand, balances with banks in current accounts
and other short- term deposits with original maturities of 3
months or less, as applicable.

a) Issue of Equity Shares on Preferential Basis:

During the year, the Company issued 13,65,624 equity shares of face value ' 10 each at a premium of ' 470 per share on a
preferential basis, as per the approval of the shareholders and in compliance with SEBI (ICDR) Regulations, 2018.

b) Terms/right attached to equity shares

The Company has issued only one class of equity shares having a face value of ' 10 per share. Each holder of equity shares is
entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board
of Directors, if any is subject to the approval of the shareholders in the ensuing Annual General Meeting, except interim dividend,
which can be approved by the Board of Directors.

In the event of liquidation, the holders of equity shares will be entitled to receive remaining assets of the Company after distribution
of all preferential amounts, if any The distribution will be in proportion to the number of equity shares held by the shareholders.

a) Provision for employee benefits
i) Gratuity

Gratuity is payable to all the members at the rate of 15 days salary for each year of service. In accordance with applicable Indian
laws, the Company provides for gratuity, a defined benefit retirement plan (“the Gratuity Plan”) covering eligible employees.
The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of
continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of
employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date.

The estimates of rate of escalation in salary considered in actuarial valuation takes into account inflation, seniority, promotion
and other relevant factors including supply and demand in the employment market. The above information is certified by the
actuary The discount rate is based on the prevailing market yields of Indian government securities as at the balance sheet date
for the estimated term of the obligations.

The significant actuarial assumptions for the determination of the defined benefit obligation are the attrition rate, discount
rate and the long-term rate of compensation increase. The calculation of the net defined benefit liability is sensitive to these
assumptions. The following table summarises the effects of changes in these actuarial assumptions on the defined benefit
liability at 31 March 2025.

35. FAIR VALUE MEASUREMENT

Fair value measurement hierarchy

The Company records certain financial assets and financial
liabilities at fair value on a recurring basis. The Company
determines fair values based on the price it would receive
to sell an asset or pay to transfer a liability in an orderly
transaction between market participants at the measurement
date and in the principal or most advantageous market for
that asset or liability.

The Company holds certain fixed income investments and
other financial assets such as loans, deposits etc. which
must be measured using the fair value hierarchy and related
valuation methodologies. The guidance specifies a hierarchy
of valuation techniques based on whether the inputs to each
measurement are observable or unobservable. Observable
inputs reflect market data obtained from independent
sources, while unobservable inputs reflect the Company’s

assumptions about current market conditions. The fair
value hierarchy also requires an entity to maximize the use
of observable inputs and minimize the use of unobservable
inputs when measuring fair value.

Financial assets and financial liabilities measured at fair value
in the balance sheet are grouped into three Levels of fair value
hierarchy. These levels are based on the observability of
significant inputs to the measurement, as follows:

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

> Level 2: Inputs other than quoted prices included within
Level 1 that are observable for the asset or liability either
directly or indirectly

> Level 3: Unobservable inputs for the asset or liability

36. NATURE AND EXTENT OF RISKS
ARISING FROM FINANCIAL INSTRUMENTS
AND RESPECTIVE FINANCIAL RISK
MANAGEMENT OBJECTIVES AND
POLICIES

The Company’s principal financial liabilities comprise of loans
and borrowings, trade and other payables, and financial
guarantee contracts. The main purpose of these financial
liabilities is to finance the Company’s operations and to
provide guarantees to support its and group companies
operations. The Company’s principal financial assets include
loans, trade and other receivables, cash and short-term
deposits that derive directly from its operations.

The Company is exposed to market risk, credit risk and
liquidity risk. The Company’s senior management oversees
the management of these risks. The Company’s senior
management is supported by the Group treasury team that
advises on financial risks and the appropriate financial risk
governance framework in accordance with the Company’s

policies and risk objectives. All derivative activities for
risk management purposes are carried out by Group
Treasury Team that have the appropriate skills, experience
and supervision. It is the Group’s policy that no trading in
derivatives for speculative purposes may be undertaken. The
Board of Directors review and agree on policies for managing
each of these risks, which are summarised below.

a) Market risk

The Company is exposed to market risk through its use of
financial instruments and specifically to currency risk, interest
rate risk and certain other price risks, which result from both
its operating and investing activities.

b) Interest rate risk

Interest rate risk is the risk that the fair value or future cash
flows of a financial instrument will fluctuate because of
changes in market interest rates. The Company’s exposure to
the risk of changes in market interest rates are managed by
borrowing at fixed interest rates. During the year Company did
not have any floating rate borrowings.

c) Credit risk

Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Company is exposed to this
risk for various financial instruments, for example trade receivables, placing deposits, investment in mutual funds etc. the
Company’s maximum exposure to credit risk is limited to the carrying amount of financial assets recognized at 31 March 2018,
as summarised below:

The Company continuously monitors defaults of customers
and other counterparties and incorporates this information
into its credit risk controls. The Company’s policy is to transact
only with counterparties who are highly creditworthy which
are assessed based on internal due diligence parameters.

In respect of trade receivables, the Company is not exposed to
any significant credit risk exposure to any single counterparty
or any group of counterparties having similar characteristics.
Based on historical information about customer default rates
management consider the credit quality of trade receivables
that are not past due or impaired to be good.

The credit risk for cash and cash equivalents, fixed deposits
are considered negligible, since the counterparties are
reputable banks with high quality external credit ratings.

Other financial assets mainly comprises of security deposits
which are given to land owners or other governmental
agencies in relation to contracts executed and are assessed
by the Company for credit risk on a continous basis.

d) Liquidity risk

Liquidity risk is that the Company might be unable to meet
its obligations. The Company manages its liquidity needs
by monitoring scheduled debt servicing payments for long¬
term financial liabilities as well as forecast cash inflows
and outflows due in day-to-day business. The data used
for analysing these cash flows is consistent with that used
in the contractual maturity analysis below. Liquidity needs
are monitored in various time bands, on a day-to-day and
week-to-week basis, as well as on a monthly, quarterly, and
yearly basis depending on the business needs. Net cash
requirements are compared to available borrowing facilities in
order to determine headroom or any shortfalls. This analysis
shows that available borrowing facilities are expected to be
sufficient over the lookout period.

The Company's objective is to maintain cash and marketable
securities to meet its liquidity requirements for 30-day periods
at a minimum. This objective was met for the reporting periods.

The Company considers expected cash flows from financial assets in assessing and managing liquidity risk, in particular its cash
resources and trade receivables. The Company’s existing cash resources and trade receivables significantly exceed the current
cash outflow requirements. Cash flows from trade receivables are all contractually due within six months except for retention
and long term trade receivables which are governed by the relevant contract conditions.

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts,
and short-term borrowings. The Company assessed the concentration of risk with respect to refinancing its debt and concluded
it to be low. The Company has access to a sufficient variety of sources of funding and debt maturing within 12 months can be
rolled over with existing lenders.

36. EVENTS AFTER THE REPORTING PERIOD

No adjusting or significant non-adjusting events have occurred between the reporting date (31 March 2025) and the date of
authorization.

iii) In continuation to inspection made u/s. 209A of the Companies Act, 1956; the proceedings filed u/s. 58A, 299 and 295 are
under process. The Company has applied for compounding application for the same on 19.01.2015

38. SEGMENT REPORTING

The Company is primarily in the business of real estate development and related activities including construction. Major exposure
is to residential and commercial construction and development of IT parks. Further majority of the business conducted is within
the geographic boundaries of India.

In view of the above, in the opinion of the Management and based on the organizational and internal reporting structure, the
Company's business activities as described above are subject to similar risks and returns. Further, since the business activities
undertaken by the Company are within India, in the opinion of the Management, the environment in India is considered to have
similar risks and returns. Consequently the Company's business activities primarily represent a single business segment.
Similarly this business operations in India represent a single geographical segment.

In terms of our report attached

For B.P. JAIN & Co For and on behalf of the Board of Directors of

Chartered Accountants Arihant Foundations and Housing Limited

Firm's Registration No.: 050105S

Devendra Kumar Bhandari Kamal Lunawath Vimal Lunawath

Partner Managing Director Whole Time Director/CFO

Membership No. 208862 DIN: 00087324 DIN: 00586269

UDIN: 25208862BMJUYL7587

Arun Rajan Mary Belinda Jyotsna

Chief Executive Officer Company Secretary

Membership No. A63097

Place: Chennai Place: Chennai

Date: 30-05-2025 Date: 30-05-2025