21 Provisions, contingent liabilities and
contingent assets

A. Provisions

A provision is recognised if

• the Company has present legal or
constructive obligation as a result of an
event in the past;

• it is probable that an outflow of resources
will be required to settle the obligation; and

• the amount of the obligation has been
reliably estimated.

Provisions are measured at the management’s
best estimate of the expenditure required to
settle the obligation at the end of the reporting
period. If the effect of the time value of
money is material, provisions are discounted
to reflect its present value using a current
pre-tax discount rate that reflects the current
market assessments of the time value of
money and the risks specific to the obligation.
When discounting is used, the increase in
the provision due to the passage of time is
recognised as a finance cost.

Onerous Contract

If the Company has a contract that is onerous,
the present obligation under the contract is
recognised and measured as a provision.

An onerous contract is a contract under
which the unavoidable costs (i.e., the costs
that the Company cannot avoid because it
has the contract) of meeting the obligations
under the contract exceed the economic
benefits expected to be received under it. The
unavoidable costs under a contract reflect
the least net cost of exiting from the contract,
which is the lower of the cost of fulfilling it and
any compensation or penalties arising from
failure to fulfil it. The cost of fulfilling a contract
comprises the costs that relate directly to the
contract (i.e., both incremental costs and an
allocation of costs directly related to contract
activities).

Defect Liability Provision

The Defect Liability provision (DLP) is a
contractual provision that defines the period
after construction completion during which
the Company is responsible for rectifying any

defects at no extra cost to the client. The DLP
is a contractual obligation towards failure to
rectify defects within the specified period.

The provision is created based on past
experience as mentioned under critical
estimates.

B. Contingent liabilities

Contingent liabilities are disclosed when
there is a possible obligation arising from
past events, the existence of which will be
confirmed only 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 arises
from past events where it is either not probable
that an outflow of resources will be required
to settle the obligation or a reliable estimate of
the amount cannot be made.

22 Employee benefits

A. Short-term obligations

Liabilities for wages and salaries, including
non-monetary benefits that are expected to
be settled wholly within 12 months after the
end of the period in which the employees
render the related service are recognised
in the same period in which the employees
renders the related service and are measured
at the amounts expected to be paid when the
liabilities are settled.

Retirement benefit in the form of provident
fund is a defined contribution plan. The
Company has no obligation , other than
the contribution payable to the provident
fund. The Company recognises contribution
payable to the provident fund scheme as
an expense, when an employee renders the
related services. If the Contribution payable
to the scheme for service received before the
balance sheet date exceeds the contribution
already paid, the deficit payable to the scheme
is recognised as a liability after deducting the
contribution already paid. If the contribution
already paid exceeds the contribution due for
services received before the balance sheet
date, then excess is recognised as an asset
to the extent that the prepayment will lead to a
reduction in future payment or a cash refund.

B. Other long-term employee benefit
obligations

The liabilities for earned leave and sick
leave are not expected to be settled wholly
within 12 months after the end of the period
in which the employees render the related

service. They are therefore measured as the
present value of expected future payments
to be made in respect of services provided
by employees up to the end of the reporting
period using the projected unit credit method.
The benefits are discounted using the market
yields at the end of the reporting period that
have terms approximating to the terms of the
related obligation. Remeasurements as a result
of experience adjustments and changes in
actuarial assumptions are recognised in the
statement of profit or loss.

The obligations are presented as current
liabilities in the balance sheet if the entity
does not have an unconditional right to defer
settlement for at least twelve months after the
reporting period, regardless of when the actual
settlement is expected to occur.

C. Post-employment obligations

The Company operates the following post¬
employment schemes

(a) defined benefit plans - Gratuity

(b) defined contribution plans - Provident
fund, superannuation and pension

Defined benefit plans:

The liability or asset recognised in the balance
sheet in respect of defined benefit plans
is the present value of the defined benefit
obligation at the end of the reporting period
less the fair value of plan assets excluding
non-qualifying asset (reimbursement right).

The defined benefit obligation is calculated
annually by actuaries using the projected
unit credit method. The present value of the
defined benefit obligation is determined by
discounting the estimated future cash outflows
by reference to market yields at the end of
the reporting period on government bonds
that have terms approximating to the terms
of the related obligation. The net interest
cost is calculated by applying the discount
rate to the net balance of the defined benefit
obligation and the fair value of plan assets.

This cost is included in employee benefit
expense in the statement of profit and loss.
Remeasurement gains and losses arising
from experience adjustments and changes in
actuarial assumptions are recognised in the
period in which they occur, directly in other
comprehensive income. They are included in
retained earnings in the statement of changes
in equity and in the balance sheet.

Insurance policy held by the Company from
insurers who are related parties are not
qualifying insurance policies and hence the
right to reimbursement is recognised as a
separate asset under other non-current and/or
current assets as the case may be.

Changes in the present value of the defined
benefit obligation resulting from plan
amendments or curtailments are recognised
immediately in profit or loss as past service
cost.

Defined contribution plans:

In case of all employees, the Company pays
provident fund contributions to publicly
administered provident funds as per local
regulations. The Company has no further
payment obligations once the contributions
have been paid. Such contributions are
accounted for as employee benefit expense
when they are due. Defined contribution to
superannuation fund is being made as per the
scheme of the Company. Defined contribution
to Employees Pension Scheme 1995 is made
to Government Provident Fund Authority
whereas the contributions for National Pension
Scheme is made to Stock Holding Corporation
of India Limited.

D. Share based payment

The Company operates an equity settled,
employee share based compensation plan,
under which the Company receives services
from employees as consideration for equity
shares of the Company. Equity settled share
based payment to employees and other
providing similar services are measured at fair
value of the equity instrument at grant date.

The fair value of the employee services
received in exchange for the grant of the
options is determined by reference to the fair
value of the options as at the Grant Date and is
recognised as an ‘employee benefits expense’
with a corresponding increase in equity. The
total expense is recognised over the vesting
period which is the period over which the
applicable vesting condition is to be satisfied.

At the end of each year, the entity revises its
estimates of the number of options that are
expected to vest based on the service vesting
conditions. It recognises the impact of the
revision to original estimates, if any, in profit
or loss, with a corresponding adjustment to
equity.

If at any point of time after the vesting of the
share options, the right to the same expires
(either by virtue of lapse of the exercise period
or the employee leaving the Company), the
fair value of the options accruing in favour of
the said employee are transferred back to the
retained earnings in the reporting period in
which the right expires.

The dilutive effect of outstanding options is
reflected as additional share dilution in the
computation of diluted earnings per share.

23 Segment reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to the
chief operating decision maker.

The Board of directors of the Company has
been identified as the Chief Operating Decision
Maker which reviews and assesses the financial
performance and makes the strategic decisions.

24 Dividends

The company recognises a liability to pay dividend
to equity holders when the distribution is authorised
and is no longer at the discretion of the Company.
As per the corporate laws in India, a distribution is
authorised when it is approved by the shareholders.
A corresponding amount is recognised directly in
equity.

25 Earnings per share

Basic earnings per share is 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. Earnings considered in ascertaining the
Company’s earnings per share is the net profit for
the period. The weighted average number equity
shares outstanding during the period and all
periods presented is adjusted for events, such as
bonus shares, other than the conversion of potential
equity shares that have changed the number of
equity shares outstanding, without a corresponding
change in resources. For the purpose of calculating
diluted earnings per share, the net profit of loss for
the period attributable to equity shareholders and
the weighted average number of share outstanding
during the period is adjusted for the effects of all
dilutive potential equity shares.

26 Exceptional items

Exceptional items include income/expenses that are
considered to be part of ordinary activities, however
of such significance and nature that separate

disclosure enables the users of standalone financial
statements to understand the impact in more
meaningful manner. Exceptional Items are identified
by virtue of their size, nature and incidence.

27 Rounding of amounts

All amounts disclosed in the standalone financial
statements and notes have been rounded off to the
nearest lakhs as per the requirement of Schedule III,
unless otherwise stated.

28 Events after reporting period

If the Company receives information after the
reporting period, but prior to the date of approved
for issue, about conditions that existed at the end
of the reporting period, it will assess whether the
information affects the amounts that it recognises
in its separate financial statements. The Company
will adjust the amounts recognised in its financial
statements to reflect any adjusting events after
the reporting period and update the disclosures
that relate to those conditions in light of the new
information. For non-adjusting events after the
reporting period, the Company will not change
the amounts recognised in its separate financial
statements but will disclose the nature of the non¬
adjusting event and an estimate of its financial
effect, or a statement that such an estimate cannot
be made, if applicable.

1C NEW AND AMENDED STANDARDS

The Company applied for the first-time certain standards
and amendments, which are effective for annual periods
beginning on or after 1 April 2025. The Company has not
early adopted any standard, interpretation or amendment
that has been issued but is not yet effective.

(i) Amendments to Ind AS 21 - Lack of
exchangeability

The Ministry of Corporate Affairs (MCA) notified
the Companies (Indian Accounting Standards)
Amendment Rules, 2025, which amend Ind AS
21, The Effects of Changes in Foreign Exchange
Rates to specify how an entity should assess
whether a currency is exchangeable and how
it should determine a spot exchange rate when
exchangeability is lacking. The amendments also
require disclosure of information that enables
users of its financial statements to understand
how the currency not being exchangeable into the
other currency affects, or is expected to affect, the
entity’s financial performance, financial position and
cash flows.

The amendments are effective for annual reporting
periods beginning on or after 1 April 2025. When
applying the amendments, an entity cannot
restate comparative information.

The amendments do not have a material impact on
the Company’s Standalone financial statements.

(ii) Amendments to Ind AS 1 - Classification
of Liabilities as Current or Non-current
and Non-current Liabilities with
Covenants

In August 2025, the MCA notified amendments
to paragraphs 69 to 76 of Ind AS 1 to specify the
requirements for classifying liabilities as current or
non-current. The amendments clarify:

• What is meant by a right to defer settlement

• That a right to defer must exist at the end of the
reporting period

• That classification is unaffected by the likelihood
that an entity will exercise its deferral right

• That only if an embedded derivative in a
convertible liability is itself an equity instrument
would the terms of a liability not impact its
classification

In addition, a requirement has been introduced to
require disclosure when a liability arising from a
loan agreement is classified as non-current and
the entity’s right to defer settlement is contingent
on compliance with future covenants within twelve
months.

If there is a breach of a material covenant of a long
term loan arrangement on or before the end of the
reporting period, resulting in the liability becoming
payable on demand as at the reporting date, and
the lender agrees—after the reporting period but
before the financial statements are approved for
issue—not to demand repayment for at least 12
months as a consequence of the breach, this shall
be treated as an adjusting event. Accordingly,
the entity is not required to classify the liability as
current.

The amendments are effective for annual reporting
periods beginning on or after 1 April 2025
retrospectively in accordance with Ind AS 8.

The amendments do not have a material impact on
the Company’s Standalone financial statements.

(iii) Amendments to Ind AS 7 and Ind AS 107 -
Supplier Finance Arrangements

In August 2025, the MCA notified amendments
to Ind AS 7 Statement of Cash Flows and Ind
AS 107 Financial Instruments: Disclosures to
clarify the characteristics of supplier finance
arrangements and require additional disclosure of
such arrangements. The disclosure requirements
in the amendments are intended to assist users of
financial statements in understanding the effects
of supplier finance arrangements on an entity’s
liabilities, cash flows and exposure to liquidity risk.

As a result of implementing the amendments, the
Company has provided additional disclosures about
its supplier finance arrangement. Please refer to
Note 19.

(iv) International Tax Reform—Pillar Two

Model Rules - Amendments to Ind AS 12

In August 2025, the MCA notified amendments to
Ind AS 12 Income Taxes in response to the OECD’s
BEPS Pillar Two rules and include:

• A mandatory temporary exception to the
recognition and disclosure of deferred taxes
arising from the jurisdictional implementation of
the Pillar Two model rules; and

• Disclosure requirements for affected entities
to help users of the financial statements better
understand an entity’s exposure to Pillar Two
income taxes arising from that legislation,
particularly before its effective date.

The mandatory temporary exception - the use
of which is required to be disclosed - applies
immediately. The remaining disclosure requirements
apply for annual reporting periods beginning on or
after 1 April 2025, but not for any interim periods
ending on or before 31 March 2026.

The amendments had no impact on the Company’s
Standalone financial statements as the Company is
not in scope of the Pillar Two model rules.

STANDARDS ISSUED BUT NOT YET
EFFECTIVE

Amendments to Ind AS 1 - Classification of
Liabilities as Current or Non-current and Non¬
current Liabilities with Covenants and Ind AS 10
Events after the Reporting Period

Ind AS 10 has been amended to remove the
previous treatment under which a lender’s post
reporting date waiver—granted before the financial
statements were approved for issue—of a breach of
a material covenant in a long term loan arrangement
that occurred on or before the end of the reporting
period, resulting in the liability becoming payable
on demand at the reporting date, was regarded as
an adjusting event.

For annual reporting periods beginning on or after
1 April 2026, any breach of a covenant—whether
material or immaterial—occurring on or before
the reporting date will, in accordance with Ind
AS 1, require the related liability to be classified as
current, unless the lender has granted a waiver of
the breach on or before the reporting date and has
agreed not to demand repayment for at least 12

months after the reporting date as a consequence
of the breach. Such a waiver shall be treated as an
adjusting event.

The amendments are effective for annual reporting
periods beginning on or after 1 April 2026
retrospectively in accordance with Ind AS 8.

The amendment has no impact on the Company’s
standalone financial statements.

1D SUMMARY OF CRITICAL ESTIMATES,
JUDGEMENTS AND ASSUMPTIONS

The preparation of standalone financial statements
requires the use of accounting estimates which, by
definition, will seldom equal the actual results. The
management also needs to exercise judgment in
applying the Company’s accounting policies. This note
provides an overview of the areas that involved a higher
degree of judgment or complexity, and of items which
are more likely to be materially adjusted due to estimates
and assumptions turning out to be different than those
originally assessed. Detailed information about each of
these estimates and judgments is included below.

1 Defect liability provision

Defect Liability Provisions (DLP) represent
contractual obligation of the Company to rectify
any defects or faults that may arise during the
specified defect liability period after completion of a
construction project. Provision made at the year-end
represents the amount of expected cost of meeting
such obligations based on the historical claims as
well as expected future trends. Provision towards
DLP is disclosed in Note 21B.

2 Impairment allowance for trade
receivables

The impairment provisions for trade receivables
are based on assumptions about risk of default
and expected loss rates. The Company uses
judgement in making these assumptions and
selecting the inputs to the impairment calculation,
based on Company’s ageing of receivables, credit
risk, project status, past history, existing market
conditions as well as forward looking estimates
at the end of each reporting period. Further,
in case of operationally closed projects and
projects under litigation, Company makes specific
assessment of the receivables by considering the
customer’s historical payment patterns and latest
correspondences with the customers for recovery
of the amounts outstanding. Accordingly, a best
judgment estimate is made to record the impairment
allowance in respect of such projects.

3 Project revenue and costs

Recognition of revenue in respect of construction
contracts involves determination of percentage
completion of the project. The contract revenue is
measured based on the proportion of contract costs
incurred for work performed till date relative to the
estimated total contract costs. This method requires
the Company to perform an initial assessment
of total estimated cost, compare with actual
cost incurred and reassess the total estimated
cost for completion of contract at each reporting
period to determine the appropriate percentage
of completion. The estimation involves exercise
of significant judgement by the management in
making forecasts of future cost to complete the
contract considering future activities to be carried
out in the contract, which includes determination
and assessment of probability related to contract
risk contingencies, cost savings or additional costs,
defect liability period costs, adjustments to contract
revenue on account of penalties for breach of
contract, liquidated damages and consequential
provision for foreseeable losses on onerous
performance obligations, if any, after considering
specific circumstances of each contract.

4 Fair value measurement

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
appropriate valuation techniques. The inputs for
these valuations are taken from observable sources
where possible, but where this is not feasible, a
degree of judgement is required in establishing
fair values. Judgements include considerations of
various inputs including liquidity risk, credit risk,
volatility etc. Changes in assumptions/judgements
about these factors could affect the reported fair
value of financial instruments. Refer Note 35 of
standalone financial statements for the fair value
disclosures and related sensitivity.

5 Employee benefits

The cost of the defined benefit gratuity plan
and other post-employment leave benefits are
determined using actuarial valuations. An actuarial
valuation involves making 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 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 are
based on expected future inflation rates. Refer Note
21 and Note 34(a, b)

6 Leases

Estimates are required to determine the appropriate
discount rate used to measure lease liabilities. The
Company cannot readily determine the interest rate
implicit in the lease, therefore, it uses its incremental
borrowing rate (IBR) to measure lease liabilities. The
IBR is the rate of interest that the Company would
have to pay to borrow over a similar term, and with
a similar security, the funds necessary to obtain an
asset of a similar value to the right-of-use asset in
a similar economic environment. The IBR therefore
reflects what the Company ‘would have to pay’,
which requires estimation when no observable rates
are available or when they need to be adjusted
to reflect the terms and conditions of the lease.

The Company estimates the IBR using observable
inputs (such as market interest rates, bank rates
to the Company for a loan of a similar tenure, etc).
The Company has applied a single discount rate
to a portfolio of leases of similar assets in similar
economic environment with a similar end date

7 Share based payments

Estimating fair value for share-based payment
transactions requires determination of the most
appropriate valuation model, which is dependent on
the terms and conditions of the grant. This estimate
also requires determination of the most appropriate
inputs to the

valuation model including the expected life of
the share option, volatility and dividend yield
and making assumptions about them. Further, in
respect of performance linked ESOPs, for which
performance criteria is not communicated and
accordingly grant date is not yet determined, the
fair value of such ESOPs is determined at each
balance sheet date.

8 Contingencies

In the normal course of business, contingent
liabilities may arise from litigation and other claims
against the Company. Potential liabilities that are
possible but not probable of crystalising or are very
difficult to quantify reliably are treated as contingent
liabilities. Such liabilities are disclosed in the notes
but are not recognised. The cases which have been
determined as remote by the Company are not
disclosed.

Contingent assets are neither recognised nor
disclosed in the financial statements unless when
an inflow of economic benefits is probable.

9 Useful lives of property, plant and
equipment

Management reviews the useful lives of property,
plant and equipment at least once a year. Such
lives are dependent upon an assessment of both
the technical lives of the assets and also their
likely economic lives based on various internal and
external factors including relative efficiency and
operating costs. This reassessment may result in
change in depreciation and amortisation expected
in future periods.

Nature and Purpose of Reserves
Retained Earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or
other distributions paid to shareholders. Retained earnings includes re-measurement loss / (gain) on defined benefit plans,
net of taxes that will not be reclassified to Statement of Profit and Loss. Retained earnings is a free reserve available to the
Company.

Capital Reserve

Reserve is primarily created on business combination as per statutory requirement. This reserve is utilised in accordance
with the specific provisions of the Companies Act 2013.

Securities Premium

Securities Premium Reserve is used to record the premium on issue of shares and is utilised in accordance with the
provisions of the Companies Act, 2013.

Effective Portion of Cashflow Hedges

The Company uses hedging instrument to manage its commodity price risk with respect to forecast purchase of
aluminium. To the extent these hedges are effective, the changes in fair value of the hedging instrument is recognised in
the effective portion of cash flow hedges. Amounts recognised in the effective portion of cash flow hedges is reclassified
to the Statement of profit & loss when the hedged item affects the Profit and Loss.

Note 16: Other Equity (contd..)

Share options outstanding account

The share options-based payment reserve is used to recognise the grant date fair value of options issued to employees
under Employee stock option plan. The amounts recognised in this reserve are transferred to Securities Premium when
Options are exercised by the employees or to retained earnings when they expire unexercised.

Note 32 : Exceptional Items

The Government of India notified the four labour codes namely Code on Social Security, 2020 (“Social Security Code”);
Occupational Safety, Health and Working Conditions Code, 2020; Industrial Relations Code, 2020 and Code on Wages, 2019
(collectively, the “Labour Codes”) on November 21, 2025 consolidating 29 erstwhile labour laws. Subsequently, the Ministry of
Labour & Employment published Central Rules and FAQs to enable assessment of the financial impact due to Labour Codes.
The Company has evaluated the impact of increased employee benefits obligations arising from the implementation of the
Labour Codes based on it’s best judgment in consultation with external experts. Accordingly, the Company has recognised
a financial impact of ' 772.06 lakhs on account of increased gratuity and leave encashment obligations, recognised in
accordance with Ind AS 19 - ‘Employee Benefits’ and disclosed it as an Exceptional Item in the standalone financial statements.
The Company continues to monitor the issuance of State rules and further clarifications from the Government in respect of
other aspects of the Labour codes. Any additional impact arising from such developments will be assessed and appropiately
accounted for in the Standalone Financial Statements as and when such rules are notified or clarifications are issued.

Note 35: Fair value measurements (contd..)

Company uses the following hierarchy for determining and disclosing the fair value of financial
instruments by valuation techniques

Level 1- It includes financial instruments measured using quoted prices. For the Company, the fair valuations in this level of
hierarchy include listed equity instruments and mutual funds. The fair value of all equity instruments which are traded in the
stock exchanges is valued using the closing price as at the reporting period and mutual funds are valued using closing NAV as
at the reporting period.

Level 2- The fair value of financial instruments that are not traded in an active market (for example derivatives) is determined
using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific
estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2. The
fair valuations in this level of hierarchy for the Company mainly include derivatives.

Level 3- The instrument is included in Level 3 if one or more of the significant inputs is not based on observable market data.
Fair value is determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices
from observable current market transactions in the same instrument nor are they based on available market data. This includes
investment in unquoted preference shares. Similarly, unquoted equity instruments where most recent information to measure
fair value is insufficient, or if there is a wide range of possible fair value measurements, net asset value has been considered as
best estimate of fair value which is approximate to cost.

There have been no transfers between Level 1 and Level 2 during the year.

Note 36: Financial risk management objectives and policies

The Company’s principal financial liabilities comprises of trade payables, borrowings, lease liabilities and other financial
liabilities. The Company’s principal financial assets include trade receivables, derivative assets, cash and cash equivalents,
other bank balances and other financial assets that are derived directly from the operations. The Company’s risk management
is carried out by the management under the policies approved of the Board of Directors that help in identfication, measurement,
mitigation and reporting all risk associated with the activities of the Company. The Board of Directors reviews and agrees
policies for managing each of these risks, which are summaried below:

(A) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables)
and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions
and other financial instruments. The Company only deals with parties which has good credit rating/ worthiness given by
external rating agencies or based on Company’s internal assessment.

Trade and other receivables

Trade and other receivables of the Company are typically unsecured and credit risk is managed through credit approvals
and periodical monitoring of the creditworthiness of customers to which the Company grants credit terms.

The Company undertake projects for government institutions (including local bodies) and private institutional customers.
The credit concentration is more towards government institutions. These projects are normally of long term duration of two
to three years. Such projects normally are regular tender business with the terms and conditions agreed as per the tender.
These projects are generally fully funded by the Government of India through Rural Electrification Corporation, Power
Finance Corporation, and Asian Development Bank etc. The Company enters into such projects after careful consideration
of strategy, terms of payment, past experience etc.

In case of private institutional customers, before tendering for the projects Company evaluate the creditworthiness,
general feedback about the customer in the market, past experience, if any with customer, and accordingly negotiates the
terms and conditions with the customer.

For trade receivables and contract assets, as a practical expedient, the Company computes credit loss allowance based
on a provision matrix. The provision matrix is prepared based on historically observed default rates over the expected life
of trade receivables and contract assets and is adjusted for forward-looking estimates.

Bank deposits

The Company maintains its cash and bank balances with creditworthy banks and financial institutions and reviews it on an
on-going basis. Moreover, the interest-bearing deposits are with banks and financial institutions of reputation, good past
track record and high-quality credit rating. Hence, the credit risk is assessed to be low. The maximum exposure to credit
risk as at March 31, 2026 and March 31, 2025 is the carrying value of such cash and cash equivalents and deposits with
banks as shown in Note 7, 11A and 12 of the financials.

B) Liquidity Risk

The Company has a central treasury department, which is responsible for maintaining adequate liquidity in the system to
fund business growth, capital expenditures, as also ensure the repayment of financial liabilities. The department obtains
business plans from business units including the capex budget, which is then consolidated and borrowing requirements
are ascertained in terms of long term funds and short-term funds. Considering the peculiar nature of EPC business, which
is very working capital intensive, treasury maintains flexibility in funding by maintaining availability under committed credit
lines in the form of fund based and non-fund based (Letter of Credit and Bank Guarantee) limits.

The limits sanctioned and utilised are then monitored monthly, fortnightly and daily basis to ensure that mismatches
in cash flows are taken care of, all operational and financial commitments are honoured on time and there is proper
movement of funds between the banks from cashflow and interest arbitrage perspective.

(C) Market Risk

Market risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes
in market prices. It comprises three main components: currency risk, interest rate risk, and other price risks such as
commodity price risk.

The Company aims to minimise the impact of currency and commodity price risks through the use of derivative financial
instruments. These instruments are used in accordance with the Company’s Risk Management Policies, which are
approved by the Board of Directors. These policies provide written guidelines for the use of financial derivatives to hedge
currency and commodity risks. The Company does not engage in derivative trading for speculative purposes.

The Company is primarily exposed to financial risks arising from changes in foreign currency exchange rates and
commodity prices. To manage these exposures, the Company enters into various derivative financial instruments,
including:

- foreign currency forward contracts to hedge the exchange rate risk arising from USD-linked purchase contracts

- Commodity Over the Counter (OTC) derivative contracts to hedge the price risk for base metal such as Aluminium.

(i) Foreign currency risk

The Company’s functional currency is Indian Rupees (INR). The Company operates in the global market and is
therefore exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the
US Dollar (‘USD’), Kenyan Shillings (‘KES’), Zambian Kwacha (‘ZMW’) and West African CFA Franc (‘XOF’). Volatility
in exchange rates also affects the cost of raw materials, primarily in relation to USD linked purchase contracts.

(a) Foreign currency risk exposure:

The Company’s exposure to foreign currency risk at the end of the reporting period expressed in INR, are as
follows :

(ii) 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. In case of short term borrowings, the interest rate is fixed in a large number of
cases. Hence, interest rate risk is assessed to be low. Accordingly, the sensitivity / exposure to change in interest rate
is insignificant.

(iii) Commodity Price risk

The Company undertakes turnkey EPC projects, which involve procuring equipment and materials often linked to
commodity prices such as steel, copper, aluminium, and zinc. This exposes the Company to commodity price risk.

To mitigate these risks, the Company employs several strategies:

- Contractual arrangements such as variable price purchase orders, where hedging may be performed by
vendors;

- Direct hedging of base metal exposure (e.g., aluminium) using OTC derivative contracts linked to London Metal
Exchange (LME) prices.

(D) Derivative Instruments and Hedge Accounting

Hedging commodity is based on procurement schedule and price risk. Commodity is undertaken as a risk offsetting
exercise and depending upon market conditions, hedges may extend beyond the financial year.

The Company has a well defined hedging policy approved by Board of Directors of the Company, which partially takes
care of the commodity price fluctuations and minimizes the risk. The Company enters into both commodity contracts and
foreign currency forwards to hedge the commodity price risk.

Note 37: Capital Management

Objectives of Company’s capital management

The Board policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain
future development of the business. The Board of directors monitors the return on capital employed. The Company manages
capital risk by maintaining sound / optimal capital stucture through monitoring of financial ratios on a monthly basis and
implements capital structure improvement plan when necessary. The Company uses debt ratio as a capital management index
and calculates the ratio as Net debt divided by total equity. Net debt and total equity are based on the amounts stated in the
financial statements.

Debt ratio of the Company as on the balance sheet date is shown in table below :-

Note 39: Disclosure of transactions with related parties (contd..)

Notes:-

1. The transactions are exclusive of taxes wherever applicable.

2. Jamnalal Sons Private Limited have issued Letter of comfort to the Company for availing banking limits amounting to
'2,40,000/- lakhs in the previour financial year which remains the same till March’26.

3. There are certain corporate and performance guarantees issued by the demerged company (Bajaj Electricals Ltd.) on
behalf of the company which are in the process of being transferred to the company pursuant to demerger. The open
exposure as on March 31, 2026 is ' 997.85 lakhs (March 31,2025 - '1,566 lakhs)

4. Pursuant to scheme of demerger, contracts in the name of Bajaj Electricals Ltd. have been novated to Bajel Projects Ltd.
except in case of South Bihar Power Distribution Company Ltd. where tri-partite agreement is entered with

Bajaj Electricals Ltd.

Notes:-

1. As the future liability for gratuity is provided on an actuarial basis for the Company as a whole, the amount pertaining to
individual is not ascertainable and therefore not included above.

2. The Independent Non-Executive Directors are paid remuneration by way of sitting fees. The Company pays sitting fees at
the rate of '1,00,000 for meeting of the Board and Audit Committee, and '50,000 for NRC & other meetings. The amount
paid to them by way of sitting fees during current year is '70.00 lakhs. In addition to sitting Fees, the Non-Executive
Directors have also been paid a commission of '40 lakhs during the year.

Terms and conditions of transactions with related parties

The sales to and purchases from 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 interest free and settlement occurs in cash. There have been no
guarantees provided or received for any related party receivables or payables. For the period ended 31^st March 2026, the
Company has not recorded any impairment of receivables relating to amounts owed by related parties (31 March 2025: INR
Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the
market in which the related party operates.

The Company executes the work as per the terms and agreements mentioned in the contracts. The Company receives
payments from the customers based on the milestone achievement and billing schedule as established in the contracts.

Contract assets are initially recognised for revenue earned from supply of materials and erection services provided when
the performance obligation is met. Upon achievement and acceptance of milestones mentioned by the customer, the
amounts recognised as contract assets are reclassified to trade receivables.

Contract liabilities are related to payments received in advance of performance under the contract and billing in excess of
contract revenue recognised. Contract liabilities are recognised as revenue when the Company satisfies the performance
obligation under the contract.

(iii) Performance obligations

Information about the Company’s performance obligations is summarised below:

The performance obligations is the supply of materials and erection services. The supply of materials and erection
services are promised goods and services which are not individually distinct. Hence both of them are counted as a
single performance obligation under the contract. The satisfaction of this performance obligation happens over time, as
the performance or enhancement of the obligation is controlled by the customer. Also, the performance of the obligation
creates an asset without any alternative use to the customer. The Company uses the input method to determine the
progress of the satisfaction of the performance obligation and accordingly recognises revenue.

The standalone selling price of the performance obligation is determined after taking the variable consideration and
significant financing component .

iv) Unsatisfied performance obligations

The aggregate amount of transaction price allocated to performance obligations that are unsatisfied as at the end of
reporting period March 31, 2026 is ' 3,44,181.54 lakhs (as at year ended March 31, 2025, ' 2,98,440.96 lakhs). On an
average, transmission & distribution contracts have a life cycle of 18-30 months. Management expects that around 60%
to 70% of the transaction price allocated to unsatisfied contracts as of March 31, 2026 will be recognised as revenue
during the next reporting period depending upon the progress on each contract. The remaining amount is expected to be
recognised in subsequent years, largely in year 2. The amount disclosed above does not include variable consideration.

v) Assets recognised from the costs to obtain or fulfil a contract

The incremental costs of obtaining a contract with a customer are recognised as an asset if the Company expects to
recover them. The Company amortizes the same over the period of the contract.

Note 43: Leases

The Company takes on lease, storage places at various EPC sites to store the inventories which are used for construction.
Further, the Company has few leasehold land, office premises, warehouses and IT assets also on leases which generally for a
longer period ranging from 2-5 years.

The Company’s obligations under its leases are secured by the lessor’s title to the leased assets. Upon adoption of Ind AS
116, the Company applied a single recognition and measurement approach for all leases for which it is the lessee, except for
short-term leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-
of-use assets representing the right to use the underlying assets, on the commencement of the lease. There are several lease
contracts that include extension and termination options. The Company determines the lease term as the non-cancellable term
of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or
any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. The leases which the
Company enters, does not have any variable payments. The lease rents are fixed in nature with gradual escalation in lease rent

Apart from the above, the Company also has various leases which are either short term in nature or the assets which are
taken on the leases are generally low value assets. Lease payments on short-term leases and leases of low-value assets are
recognised as expense on a straight-line basis over the lease term.

Note 44: Corporate Social Responsibility

As per Section 135(5) of the Companies Act, every Company which is required to engage in CSR, must ensure CSR spending
with reference to the average net profits made during the immediately preceding three financial years, or where the concerned
company has not completed a period of three fianacial years since its incorporation, then with reference to the immediately
preceding financial year.

Note 46: 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 charges or satisfaction which is yet to be registered with ROC beyond statutory period.

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

iv) 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:

- 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

- provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

v) 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

- 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

- provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

vi) The Company has not any such 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.

vii) The Company has not granted any loans or advances in nature of loans to promoters, directors and KMPs either severally
or jointly with any other person during the year ended March 31, 2026 and March 31, 2025.

viii) The Company has not been declared wilful defaulter by any bank, financial institution, government or government
authority.

ix) The Company has not revalued its property, plant and equipment (including right-to-use assets) or intangible assets
during the year ended March 31, 2026 and March 31, 2025.

x) There are no amounts which are required to be transferred to Investor Education and Protection Fund.

xi) The Company is maintaining its books of accounts in electronic mode and these books of accounts are accessible in India
at all times and the backup of these books of accounts have been kept in servers located physically in India, except as
disclosed in Note 49.

xii) The Company has been sanctioned working capital limits in excess of '5 crores from banks and financial institutions on
the basis of security of current assets of the Company. The quarterly returns filed by the Company with such banks &
financial institutions are in agreement with books of accounts of the Company.

xiii) The Company do not have any transactions/balances with companies struck off under Section 248 of Companies Act,

2013 or Section 560 of the Companies Act, 1956 except as stated below.

Note 47: Employee stock options :

As per the Scheme of Arrangement between Bajaj Electricals Limited ("Demerged Company”) and Bajel Projects Limited
("Resulting Company/ Company”) and their respective shareholders under Sections 230 to 232 of Act ("Demerger Scheme”)
the Company has implemented the Bajel Special Purpose Employees Stock Option Scheme 2023 ("Special Purpose ESOP
Scheme”) in accordance with the SEBI (Share Based Employee Benefits) Regulations, 2014, read with Securities and Exchange
Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 ("SEBI SBEB Regulations”).

Note 48: Audit Trail and Back up

Proper books of account as required by law have been kept by the Company except that the backup of the books of account
and other books and papers maintained in electronic mode were not maintained for the period from April 1, 2025 to June 30,
2025.

The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail
(edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software except
that, audit trail feature were not enabled for certain changes made, if any, using privileged/administrative access rights for the
period from April 1, 2025 to January 21, 2026.

Note 49: Comparative Information

The figures for the corresponding previous year have been regrouped/reclassified wherever necessary, to make them
comparable, in accordance with amendments to Schedule III.

The Company has reclassified following for the year ended March 31, 2026 and accordingly regrouped the figures for the year
ended March 31, 2025.

i) Portion of trade credits have been reclassified to borrowings and trade payables amounting to ' 23,558.61 lakhs and
' 10,169.86 lakhs respectively. Refer Note 18 for further details of trade credits reclassified to borrowings.

ii) Employee benefit obligation amounting to ' 891.68 lakhs and ' 1,612.29 lakhs have been reclassified to Current Provision
and Non-Current Provision respectively.

iii) Certain rates & taxes and site survey charges amounting to ' 801.80 lakhs and ' 52.71 lakhs respectively have been
reclassified from Cost of material consumed to Other expenses.

iv) Labor charges amounting to ' 2,834.17 lakhs have been reclassified from Cost of material consumed to Erection &
subcontracting expense.

Note 50: Events after the reporting period

The Company has evaluated subsequent events from the balance sheet date through May 27, 2026, the date at which the
financial statements were available to be issued, and accordingly, there are no other material items to disclose other than those
already disclosed elsewhere in the financial statements.