2.12 Provisions, Contingent Liabilities and Contingent Assets

Provisions

A provision is recognized in the statement of profit and Loss if, as a result of a past event, the
Company has a present legal or constructive obligation that can be estimated reliably, 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. Where discounting is used,
the increase in the provision due to the passage of time is recognized as a finance cost.

Contingent liabilities and contingent assets

A disclosure for a contingent liability is made when there is a possible obligation or a
present obligation that may, but probably will not, require an outflow of resources. Where
there is a possible obligation or a present obligation in respect of which the likelihood of
outflow of resources is remote, no provision or disclosure is made.

Contingent assets are not recognized in the financial statements. However, contingent assets
are assessed continually and if it is virtually certain that an inflow of economic benefits will
arise, the asset and related income are recognized in the period in which the change occurs.

Onerous contracts

A provision for onerous contracts is recognised in the statement of profit and loss when
the expected benefits to be derived by the Company from a contract are lower than the
unavoidable cost of meeting its obligations under the contract. The provision is measured
at the present value of the lower of the expected cost of terminating the contract and the
expected net cost of continuing with the contract. Before a provision is established, the
Company recognizes any impairment loss on the assets associated with that contract.

Reimbursement rights

Expected reimbursements for expenditures required to settle a provision are recognised
in the statement of profit and loss only when receipt of such reimbursements is virtually
certain. Such reimbursements are recognised as a separate asset in the balance sheet, with
a corresponding credit to the specific expense for which the provision has been made.

2.13 Revenue Recognition

Revenue from contracts with customers is recognised when a performance obligation is
satisfied by transfer of promised goods or services to a customer.

For performance obligation satisfied over time, the revenue recognition is done by
measuring the progress towards complete satisfaction of performance obligation. The
progress is measured in terms of a proportion of actual cost incurred to-date, to the total
estimated cost attributable to the performance obligation.

The Company transfers control of a good or service over time and therefore satisfies a
performance obligation and recognizes revenue over a period of time if one of the following
criteria is met:

a) The customer simultaneously consumes the benefit of the Company's performance or

b) The customer controls the asset as it is being created / enhanced by the Company's
performance or

c) There is no alternative use of the asset and the Company has either explicit or implicit
right of payment considering legal precedents,

In all other cases, performance obligation is considered as satisfied at a point in time.

The revenue is recognised to the extent of transaction price allocated to the performance
obligation satisfied. Transaction price is the amount of consideration to which the Company
expects to be entitled in exchange for transferring goods or services to a customer excluding
amounts collected on behalf of a third party.

The Company includes variable consideration as part of transaction price when there is
a basis to reasonably estimate the amount of the variable consideration and when it is
probable that a significant reversal of cumulative revenue recognised will not occur when the
uncertainty associated with the variable consideration is resolved. Variable consideration is
estimated using the expected value method or most likely amount as appropriate in a given

circumstance. Payment terms agreed with a customer are as per business practice and the
financing component, if significant, is separated from the transaction price and accounted
as interest income.

Costs to obtain a contract which are incurred regardless of whether the contract was
obtained are charged-off in profit or loss immediately in the period in which such costs
are incurred. Incremental costs of obtaining a contract, if any, and costs incurred to fulfil
a contract are amortised over the period of execution of the contract in proportion to the
progress measured in terms of a proportion of actual cost incurred to-date, to the total
estimated cost attributable to the performance obligation.

Revenue from construction / project related activity is recognised as follows:

Fixed price contracts: Contract revenue is recognised over time to the extent of performance
obligation satisfied and control is transferred to the customer. Contract revenue is recognised
at allocable transaction price which represents the cost of work performed on the contract
plus proportionate margin, using the percentage of completion method. Percentage of
completion is the proportion of cost of work performed to-date, to the total estimated
contract costs.

Impairment loss (termed as provision for foreseeable losses in the financial statements)
is recognised in profit or loss to the extent the carrying amount of the contract asset
exceeds the remaining amount of consideration that the Company expects to receive
towards remaining performance obligations (after deducting the costs that relate directly
to fulfil such remaining performance obligations). The Company recognizes impairment loss
(termed as provision for expected credit loss on contract assets in the financial statements)
on account of credit risk in respect of a contract asset using expected credit loss model on
similar basis as applicable to trade receivables.

2.14 Interest Income

Interest Income mainly comprises of interest on Margin money deposit with banks relating
to bank guarantee and term deposits.

Interest income or expense is recognised using the effective interest method (EIR).

Interest is recognized using the time-proportion method, based on rates implicit in the
transactions.

2.15 Tax Expenses

Tax expense comprises current and deferred tax. It is recognised in profit or loss except to
the extent that it relates to a business combination, or items recognised directly in equity
or in Other comprehensive income.

The Company has determined that interest and penalties related to income taxes, including
uncertain tax treatments, do not meet the definition of income taxes, and therefore
accounted for them under Ind AS 37 Provisions, Contingent Liabilities and Contingent
Assets.

Current tax

Current income tax assets and liabilities are measured at the amount expected to be
recovered from or paid to the taxation authorities. The tax rates and tax laws used to

compute the amount are those that are enacted or substantively enacted, at the reporting
date. Current income tax relating to items recognised outside the statement of profit and
loss is recognised outside the statement of profit and loss (either in OCI or in equity in
correlation to the underlying transaction). Management periodically evaluates positions
taken in the tax returns with respect to situations in which applicable tax regulations are
subject to interpretation and establishes provisions, where appropriate.

Deferred tax

Deferred tax is provided using the liability method on temporary differences between
the tax bases of assets and liabilities and their carrying amounts for financial reporting
purposes at the reporting date.

Deferred tax liabilities and assets are recognized for all taxable temporary differences and
deductible temporary differences.

Deferred tax assets are recognised to the extent that it is probable that taxable profit will
be available against which the deductible temporary differences, and the carry forward of
unused tax credits and unused tax losses can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced
to the extent that it is no longer probable that sufficient taxable profit will be available to
allow all or part of the deferred tax asset to be utilized.

Unrecognized deferred tax assets are re-assessed at each reporting date and are recognised
to the extent that it has become probable that future taxable profits will allow the deferred
tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply
in the period when the asset is realized or the liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognized outside the statement of profit and loss is
recognised outside the statement of profit and loss (either in OCI or in equity in correlation
to the underlying transaction).

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists
to set off current tax assets against current tax liabilities and the deferred taxes relate to the
same taxable entity and the same taxation authority.

Goods and Service Tax (GST) paid on acquisition of assets or on incurring expenses

When the tax incurred on purchase of assets or services is not recoverable from the taxation
authority, the tax paid is recognised as part of the cost of acquisition of the asset or as
part of the expense item, as applicable. Otherwise, expenses and assets are recognized
net of the amount of taxes paid. The net amount of tax recoverable from, or payable to, the
taxation authority is included as part of receivables or payables in the balance sheet.

2.16 Earnings Per Share

Basic earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year
attributable to equity shareholders (after deducting preference dividends and attributable
taxes) by the weighted average number of equity shares outstanding during the year.

The weighted average number of equity shares outstanding during the year is adjusted for
events such as bonus issue, bonus element in a rights issue, share split, and reverse share
split (consolidation of shares) that have changed the number of equity shares outstanding,
without a corresponding change in resources.

Diluted earnings per share

Diluted earnings per share is computed by dividing the profit (considered in determination
of basic earnings per share) after considering the effect of interest and other financing costs
or income (net of attributable taxes) associated with dilutive potential equity shares by the
weighted average number of equity shares considered for deriving basic earnings per share
adjusted for the weighted average number of equity shares that would have been issued
upon conversion of all dilutive potential equity shares.

2.17 Trade Receivables

Trade receivables are initially recognized at fair value and subsequently measured at
amortised cost using effective interest method, less provision for impairment, if any.

2.18 Trade and Other Payables

These amounts represent liabilities for goods and services provided to the Company prior
to the end of the financial year which are unpaid. The amounts are unsecured and are
presented as current liabilities unless payment is not due within twelve months after the
reporting period. They are recognized initially at fair value and subsequently measured at
amortized cost using the effective interest method.

2.19 Segment Reporting

The Company is engaged in the "laying of gas pipe lines and development of allied
infrastructure" and the same constitutes a single reportable business segment as per Ind AS
108. Accordingly, disclosure of segment information as prescribed in the Indian accounting
standard 108 "Operating segments" is not applicable.

2.20 Share Capital

Incremental costs directly attributable to the issue of equity shares are recognised as a
deduction from equity. Income tax relating to transaction costs of an equity transaction is
accounted for in accordance with Ind AS 12.

2.21 Significant Accounting Judgments, Estimates, and Assumption

The preparation of the financial statements in conformity with Ind AS requires management
to make judgments, estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets, liabilities, income and expenses. These
estimates and associated assumptions are based on historical experiences and various
other factors that are believed to be reasonable under the circumstances. Actual results
may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognized in the period in which the estimates are revised
and in any future periods affected. In particular, the areas involving critical estimates or
Judgment are:

Property, plant and equipment

The depreciation on property, plant and equipment is derived on determining an estimate
of an asset's expected useful life and the expected residual value at the end of its life.
The useful lives of Company's assets are determined in accordance with Schedule-II of
Companies Act, 2013. The lives are based on historical experience with similar assets as
well as anticipation of future events, which may impact their life.

The residual values of Company's assets are determined by management at the time of
acquisition of asset and is reviewed periodically, including at each financial year end.

Impairment of financial and non-financial assets

Significant management judgement is required to determine the amounts of impairment
loss on the financial and nonfinancial assets. The calculations of impairment loss are
sensitive to underlying assumptions.

Tax provisions and contingencies

Significant management judgement is required to determine the amounts of tax provisions
and contingencies. Deferred tax assets are recognised for unused tax losses and MAT credit
entitlements to the extent it is probable that taxable profit will be available against which
these losses and credit entitlements can be utilized. Significant management judgement is
required to determine the amount of deferred tax assets that can be recognized, based upon
the likely timing and the level of future taxable profits together with future tax planning
strategies.

Defined benefit plans

The cost of the defined benefit plan and the present value of the obligation are determined
using actuarial valuation. An actuarial valuation involves various assumptions that may
differ from actual developments in the future. These include the determination of the
discount rate, future salary increases and mortality rates. Due to the complexities involved
in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate
discount rate for plans operated in India, the management considers the interest rates of
government bonds where remaining maturity of such bond correspond to expected term of
defined benefit obligation.

The mortality rate is based on publicly available mortality tables. Those mortality tables
tend to change only at interval in response to demographic changes. Future salary increases
and gratuity increases are based on expected future inflation rates.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance
sheet cannot be measured based on quoted prices in active markets, their fair value is
measured using internal valuation techniques. The inputs to these models are taken from
observable markets where possible, but where this is not feasible, a degree of judgement
is required in establishing fair values. Judgements include considerations of inputs such as
liquidity risk, credit risk and volatility. Changes in assumptions about these factors could
affect the reported fair value of financial instruments.

2.22 Determination of Fair Values

The Company's accounting policies and disclosures require the determination of fair value,
for certain financial and non-financial assets and liabilities. Fair values have been determined
for measurement and / or disclosure purposes based on the following methods. When
applicable, further information about the assumptions made in determining fair values
is disclosed in the notes specific to that asset or liability. 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.

(i) Property, plant and equipment

Property, plant and equipment, if acquired in a business combination or through an
exchange of non-monetary assets, is measured at fair value on the acquisition date.
For this purpose, fair value is based on appraised market values and replacement cost.

(ii) Intangible assets

The fair value of brands, technology related intangibles, and patents and trademarks
acquired in a business combination is based on the discounted estimated royalty
payments that have been avoided as a result of these brands, technology related
intangibles, patents or trademarks being owned (the "relief of royalty method"). The
fair value of customer related, product related and other intangibles acquired in a
business combination has been determined using the multi-period excess earnings
method after deduction of a fair return on other assets that are part of creating the
related cash flows.

(iii) Inventories

The fair value of inventories acquired in a business combination is determined based
on its estimated selling price in the ordinary course of business less the estimated
costs of completion and sale, and a reasonable profit margin based on the effort
required to complete and sell the inventories.

(iv) Investments in equity and debt securities and units of mutual funds

The fair value of marketable equity and debt securities is determined by reference
to their quoted market price at the reporting date. For debt securities where quoted
market prices are not available, fair value is determined using pricing techniques such
as discounted cash flow analysis. In respect of investments in mutual funds, the fair
values represent net asset value as stated by the issuers of these mutual fund units
in the published statements. Net asset values represent the price at which the issuer
will issue further units in the mutual fund and the price at which issuers will redeem
such units from the investors. Accordingly, such net asset values are analogous to
fair market value with respect to these investments, as transactions of these mutual
funds are carried out at such prices between investors and the issuers of these units of
mutual funds.

2.23 New Standards Adopted by the Company

Ind AS 1 - Presentation of Financial Statements

The amendments require companies to disclose their material accounting policies rather
than their significant accounting policies. Accounting policy information, together with
other information, is material when it can reasonably be expected to influence decisions of
primary users of general purpose financial statements. The company does not expect this
amendment to have any significant impact in its standalone financial statements.

Ind AS 12 - Income Taxes

The amendments clarify how companies account for deferred tax on transactions such
as leases and decommissioning obligations. The amendments narrowed the scope of the
recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so
that it no longer applies to transactions that, on initial recognition, give rise to equal taxable
and deductible temporary differences. The company does not expect this amendment to
have any significant impact in its standalone financial statements.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

The amendments will help entities to distinguish between accounting policies and
accounting estimates. The definition of a change in accounting estimates has been
replaced with a definition of accounting estimates. Under the new definition, accounting
estimates are "monetary amounts in financial statements that are subject to measurement
uncertainty". Entities develop accounting estimates if accounting policies require items in
financial statements to be measured in a way that involves measurement uncertainty. The
company does not expect this amendment to have any significant impact in its standalone
financial statements.

2.24 New Accounting Pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to
time. For the year ended March 31, 2025, MCA has not notified any new standards or
amendments to the existing standards applicable to the Company.

Note No. 42 Financial Instruments and Fair Value

AH assets and Liabilities for which fair value is measured or disclosed in the Ind AS financial statements are
categorised within the fair value hierarchy, as below, 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.

Financial instruments by category

The carrying value and fair value of financial instruments as at March 31, 2025 and 2024, respectively were
as follows:

There has been no transfers between levels during the year. The fair values of derivatives are based on
derived mark-to-market values. The management has assessed that the carrying values of financial assets and
financial liabilities for which fair values are disclosed, reasonably approximate their fair values because these
instruments have short-term maturities.

Financial risk management objectives and policies

The Company's principal financial liabilities comprise borrowings, trade and other payables. The main purpose
of these financial liabilities is to finance the Company's operations. The Company's principal financial assets
include investments, trade and other receivables, cash and cash equivalents, bank balances, security deposits.

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 risk management is carried out by a treasury
department under policies approved by the Board of Directors. The Board of Directors provides written
principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk,
interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments,
and investment of excess liquidity.

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument that will fluctuate
because of changes in market prices. Market risk comprises three types of risk i.e. interest rate risk,
currency risk and other price risk, such as commodity risk. Financial instruments affected by market risk
include borrowings, derivatives financial instruments and trade payables.

i. Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate
because of changes in foreign exchange rates. The Company's exposure to the risk of changes in
foreign exchange rates relates primarily to the Company's foreign currency trade payables. The
summary of derivative instruments and unhedged foreign currency exposure is as below:

(b) Credit risk

Credit risk is the risk of Loss that may arise on outstanding financial instruments if a counterparty default
on its obligations. The Company's exposure to credit risk arises majorly from trade and other receivables.
Other financial assets Like security deposits and bank deposits are mostly with government authorities
and scheduled banks and hence, the Company does not expect any credit risk with respect to these
financial assets.

Trade and other receivables

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each
customer. The demographics of the customer, including the default risk of the industry and country in
which the customer operates, also has an influence on credit risk assessment. Credit risk is managed
through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of
customers to which the Company grants credit terms in the normal course of business.

Details of financial assets - not due, past due and impaired

None of the Company's cash equivalents, including term deposits with banks, were past due or impaired
as at March 31, 2025. The Company's credit period for trade and other receivables payable by its
customers generally ranges from 30-60 days.

(c) Liquidity risk

The Company's objective is to maintain optimum levels of liquidity to meet its cash and collateral
requirements at all times. The Company relies on a mix of borrowings and excess operating cash flows to
meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium/
long term expansion needs. The Company monitors rolling forecasts of its liquidity requirements to
ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its
undrawn committed borrowing facilities at all times so that the Company does not breach borrowing
limits or covenants (where applicable) on any of its borrowing facilities.

The table below summarises the maturity profile of the Company's financial liabilities on undiscounted
basis:

Note No. 45 Other Statutory Information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.

(ii) The Company does not have any transactions with struck off companies.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond
the statutory period.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company
shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vii) The Company has not entered in to any transaction which is not recorded in the books of accounts that
has been surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(viii) The Company has not been declared as wilful defaulter by any bank or financial institution or other
lender.

(ix) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the
Act read with the Companies (Restriction on number of Layers) Rules, 2017.

(x) No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to
237 of the Companies Act, 2013, during the year.

(xi) The Company has been sanctioned a working capital limit in excess of ?5 crores, by banks on the basis of
security of current assets. Pursuant to the terms of the sanction letter and its subsequent revisions, the
Company was required to furnish quarterly statements. The statements filed are in agreement with the
books of account of the Company.

46 The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the
proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts)
Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its books
of account, shall use only such accounting software which has a feature of recording audit trail of each
and every transaction, creating an edit log of each change made in the books of account along with the
date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company, in respect of financial year commencing on April 01, 2023 has used an accounting software
for maintaining its books of account which has a feature of recording audit trail (edit log). Audit trail (edit
log) is enabled at the application level, and the Company's users have access to perform transactions
only from the application level.

Note No. 47 Capital Management

Capital includes equity capital and all reserves attributable to the equity holders of the Company. The primary
objective of the capital management is to ensure that it maintain an efficient capital structure and healthy
capital ratios in order to support its business and maximise shareholder's value. The Company manages
its capital structure and make adjustments to it, in light of changes in economic conditions or its business
requirements. To maintain or adjust the capital structure, the Company may adjust the dividend payment to
shareholders return capital to shareholders or issue new shares.

50 Previous period / year figures have been recompanyed / re-classified wherever necessary, to conform to
current period's classification in order to comply with the requirements of the amended Schedule III to
the Companies Act, 2013.

This is the notes to standalone financial statements referred to in our report of even date.

As per our report of even date

For NSVR & ASSOCIATES LLP For and on behalf of Board of Directors

Chartered Accountants
FRN:008801S/S200060

Suresh Gannamani G Srinivasa Rao G Sri Lakshmi

Partner Managing Director Director

Membership No: 226870 DIN: 01710775 DIN: 02250598

UDIN: 25226870BMIIQV5542

Likhitha Gaddipati Yerragonda Pallavi Sudhanshu Shekhar

Date : May 20, 2025 Chief Financial Officer Company Secretary Chief Executive Officer

Place : Hyderabad DIN: 07341087 M. No: A70447