2.11 Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as
a result of a past event, it is probable that an outflow of resources embodying economic benefits
will be required to settle the obligation and a reliable estimate can be made of the amount of the
obligation. When the Entity expects some or all of a provision to be reimbursed, for example,
under an insurance contract, the reimbursement is recognised as a separate asset, but only when
the reimbursement is virtually certain. The expense relating to a provision is presented in the
statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is
used, the increase in the provision due to the passage of time is recognised as a finance cost.

2.12 Employee Benefits

(i) 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 respect of employees' services up to the end of the reporting year and
are measured at the amounts expected to be paid when the liabilities are settled. The liabilities
are presented as current employee benefit obligations in the balance sheet.

(ii) Post-employment obligations-

The Company operates the following post-employment schemes:

(a) Defined benefit plans such as gratuity; and

(b) Defined contribution plans such as provident fund and ESI.

Gratuity obligations-

The liability or asset recognised in the balance sheet in respect of defined benefit plan is the
present value of the defined benefit obligation at the end of the reporting year less the fair value
of plan assets. The defined benefit obligation is calculated annually by actuaries.

The present value of the defined benefit obligation denominated in INR is determined by
discounting the estimated future cash outflows by reference to market yields at the end of the
reporting year 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. 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.

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-

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. The contributions are accounted for as defined contribution plans and the
contributions are recognised as employee benefit expense when they are due.

2.13 Investments and Other financial assets

(i) Classification-

The Company classifies its financial assets in the following measurement categories:

Those to be measured subsequently at fair value (either through other comprehensive income,
or through profit or loss), and those measured at amortised cost.

The classification depends on the Company's business model for managing the financial as sets
and the contractual terms of the cash flows. For assets measured at fair value, gains and losses
will either be recorded in profit or loss or other comprehensive income.

For investments in debt instruments, this will depend on the business model in which the
investment is held. For investments in equity instruments, this will depend on whether the
Company has made an irrevocable election at the time of initial recognition to account for the
equity investment at fair value through other comprehensive income.

The Company reclassifies debt investments when and only when its business model for managing
those assets changes.

(ii) Measurement-

At initial recognition, the Company measures a financial asset at its fair value, in the case of a
financial asset is not at fair value through profit or loss, transaction costs that are directly
attributable to the acquisition of the financial asset. Transaction costs of financial assets carried
at fair value through profit or loss are expensed in profit or loss.

Financial assets with embedded derivatives are considered in their entirety when determining
whether their cash flows are solely payment of principal and interest.

(a) Debt instruments-

Subsequent measurement of debt instruments depends on the Company's business model for
managing the asset and the cash flow characteristics of the asset. There are three measurement
categories into which the Company classifies its debt instruments:

Amortised cost: Assets that are held for collection of contractual cash flows where those cash
flows represent solely payments of principal and interest are measured at amortised cost. A gain
or loss on a debt investment that is subsequently measured at amortised cost and is not part of
a hedging relationship is recognised in profit or loss when the asset is derecognised or impaired.
Interest income from these financial assets is included in finance income using the effective
interest rate method.

Fair value through other comprehensive income (FVOCI): Assets that are held for collection of
contractual cash flows and for selling the financial assets, where the assets' cash flows represent
solely payments of principal and interest, are measured at fair value through other
comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI,
except for the recognition of impairment gains or losses, interest revenue and foreign exchange
gains and losses which are recognised in profit and loss. When the financial asset is derecognised,
the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or
loss and recognised in other gains/ (losses). Interest income from these financial assets is
included in other income using the effective interest rate method.

Fair value through profit or loss: Assets that do not meet the criteria for amortised cost or FVOCI
are measured at fair value through profit or loss. A gain or loss on a debt investment that is
subsequently measured at fair value through profit or loss and is not part of a hedging
relationship is recognised in profit or loss and presented net in the statement of profit and loss
within other gains/(losses) in the period in which it arises. Interest income from these financial
assets is included in other income.

(b) Equity instruments-

The Company subsequently measures all equity investments at fair value. Where the Company's
management has elected to present fair value gains and losses on equity investments in other
comprehensive income, there is no subsequent reclassification of fair value gains and losses to

profit or loss. Dividends from such investments are recognised in profit or loss as other income
when the Company's right to receive payments is established.

Changes in the fair value of financial assets at fair value through profit or loss are recognised in
other gain/ (losses) in the statement of profit and loss. Impairment losses (and reversal of
impairment losses) on equity investments measured at FVOCI are not reported separately from
other changes in fair value.

(iv) Derecognition of financial assets-

A financial asset is derecognised only when:

The Company has transferred the rights to receive cash flows from the financial asset or, retains
the contractual rights to receive the cash flows of the financial asset, but assumes a contractual
obligation to pay the cash flows to one or more recipients.

Where the Company has transferred an asset, the Company evaluates whether it has transferred
substantially all risks and rewards of ownership of the financial asset. In such cases, the financial
asset is derecognised. Where the Company has not transferred substantially all risks and rewards
of ownership of the financial asset, the financial asset is not derecognised.

Where the Company has neither transferred a financial asset nor retains substantially all risks
and rewards of ownership of the financial asset, the financial asset is derecognised if the
Company has not retained control of the financial asset. Where the Company retains control of
the financial asset, the asset is continued to be recognised to the extent of continuing
involvement in the financial asset.

(v) Income recognition-

a) Interest income:

Interest income from debt instruments is recognised using the effective interest rate method.
The effective interest rate is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial asset to the gross carrying amount of a financial asset.
When calculating the effective interest rate, the Company estimates the expected cash flows by
considering all the contractual terms of the financial instrument (for example, prepayment,
extension, call and similar options) but does not consider the expected credit losses.

Foreign exchange differences regarded as an adjustment to borrowing costs are presented in the
statement of profit and loss, within finance costs. All other foreign exchange gains and losses are
presented in the statement of profit and loss on a net basis within other gains/(losses) Non¬
monetary items that are measured at fair value in a foreign currency are translated using the
exchange rates at the date when the fair value was determined. Translation differences on assets
and liabilities carried at fair value are reported as part of the fair value gain or loss. For example,
translation differences on non- monetary assets and liabilities such as equity instruments held at
fair value through profit or loss are recognised in profit or loss as part of the fair value gain or
loss and translation differences on non-monetary assets such as equity investments classified as
FVOCI are recognised in other comprehensive income.

b) Dividends:

Dividends are recognised in profit or loss only when the right to receive payment is established,
it is probable that the economic benefits associated with the dividend will flow to the Company,
and the amount of the dividend can be measured reliably.

2.14 Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet
where there is a legally enforceable right to offset the recognised amounts and there is an
intention to settle on a net basis or realise the asset and settle the liability simultaneously. The
legally enforceable right must not be contingent on future events and must be enforceable in the
normal course of business and in the event of default, insolvency or bankruptcy of the group or
the counterparty.

2.15 Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the
end of financial year which are unpaid. The amounts are unsecured and are usually paid as per
the credit terms.

2.16 Trade receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised
cost, less provision for impairment.

2.17 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided
to the chief operating decision maker. Accordingly, segmental reporting is performed on the
basis of geographical location of customer which is also used by the chief financial decision
maker of the company for allocation of available resources and future prospects.

2.18 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.

2.19 Foreign currency translation or transaction

(i) Functional and presentation currency:

Items included in the financial statements are measured using the currency of the primary
economic environment in which the entity operates ('the functional currency'). The financial
statements are presented in Indian rupee (INR), which is entity's functional and presentation
currency.

(ii) Transactions and balances:

Foreign currency transactions are translated into the functional currency using the exchange
rates at the dates of the transactions. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation of monetary assets and liabilities
denominated in foreign currencies at year end exchange rates are generally recognized in
statement of profit and loss. Foreign exchange gain/loss on restatement of foreign currency loans
taken for specific fixed assets are capitalized along with cost of respective fixed asset.

2.20 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, 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 bank overdrafts and financial guarantee contracts.

Subsequent measurement-

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

(a) 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.

(b) 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 Effective Interest
Rate (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.

2.21 Contingencies

Contingent liabilities are possible obligations whose existence will be confirmed only on the
occurrence or non-occurrence of uncertain future events outside the Company's control, or
present obligations that are not recognised because of the following: (a) It is not probable that
an outflow of economic benefits will be required to settle the obligation; or (b) the amount
cannot be measured reliably.

Contingent liabilities are not recognised but are disclosed and described in the notes to the
financial statements, including an estimate of their potential financial effect and uncertainties
relating to the amount or timing of any outflow, unless the possibility of settlement is remote.

Contingent assets are possible assets whose existence will be confirmed only on the occurrence
or non-occurrence of uncertain future events outside the Company's control. Contingent assets
are not recognised. When the realisation of income is virtually certain, the related asset is not a
contingent asset; it is recognised as an asset.

Contingent assets are disclosed and described in the notes to the financial statements, including
an estimate of their potential financial effect if the inflow of economic benefits is probable.

2.22 Government Grants

Grants from the government are recognised at their fair value where there is a reasonable
assurance that the grant will be received and the Company will comply with all attached
conditions. Government grants relating to the purchase of property, plant and equipment are
included in non-current liabilities as deferred income and are credited to profit or loss on a
straight-line basis over the expected lives of the related assets and presented within other
income.

2.23 Significant accounting judgements, estimates and assumptions

The preparation of the Company's financial statements requires management to make
judgements, estimates and assumptions that affect the reported amounts of revenues, expenses,
assets and liabilities, and the accompanying disclosures, and the disclosure of contingent
liabilities at the date of the financial statements. Estimates and assumptions are continuously
evaluated and are based on management's experience and other factors, including expectations
of future events that are believed to be reasonable under the circumstances. Uncertainty about
these assumptions and estimates could result in outcomes that require a material adjustment to
the carrying amount of assets or liabilities affected in future periods.

In particular, the Company has identified the following areas where significant judgements,
estimates and assumptions are required. Further information on each of these areas and how
they impact the various accounting policies are described below and also in the relevant notes to
the financial statements. Changes in estimates are accounted for prospectively.

Judgements

In the process of applying the Company's accounting policies, management has made the
following judgements, which have the most significant effect on the amounts recognized in the
financial statements:

Contingencies

Contingent liabilities may arise from the ordinary course of business in relation to claims against
the Company, including legal, contractor, land access and other claims. By their nature,
contingencies will be resolved only when one or more uncertain future events occur or fail to
occur. The assessment of the existence, and potential quantum, of contingencies inherently
involves the exercise of significant judgments and the use of estimates regarding the outcome of
future events.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the
reporting date that have a significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year, are described below. The Company based its
assumptions and estimates on parameters available when the consolidated financial statements
were prepared. Existing circumstances and assumptions about future developments, however,
may change due to market change or circumstances arising beyond the control of the Company.
Such changes are reflected in the assumptions when they occur.

(a) Impairment of non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be
impaired. If any indication exists, or when annual impairment testing for an asset is required, the
Company estimates the asset's recoverable amount. An asset's recoverable amount is the higher
of an asset's or CGU's fair value less costs of disposal and its v alue in use. It is determined for an
individual asset, unless the asset does not generate cash inflows that are largely independent of
those from other assets or groups of assets. Where the carrying amount of an asset or CGU
exceeds its recoverable amount, the asset is considered impaired and is written down to its
recoverable amount.

(b) Defined benefit plans

The cost of the defined benefit plan and other post-employment benefits and the present value
of such obligation 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, mortality rates and future pension
increases. 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.

(c) 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
valuation techniques including the NAV model.

Financial assets like security deposits received and security deposits paid, has been classified and
measured at amortised cost on the basis of the facts and circumstances that exist at the date of
transition to Ind AS. Government corporate bond rate has been used to fair value the security
deposits at amortised cost.

Financial liability like long term borrowings received, has been classified and measured at
amortised cost on the basis of the facts and circumstances that exist at the date of transition to
Ind AS. Average market borrowing rate has been used to fair value the long term loan at
amortised cost.

For O P BAGLA & CO LLP
CHARTERED ACCOUNTANTS
Firm Regn No. 000018N/N500091

(ATUL AGGARWAL)
PARTNER

PLACE: NEW DELHI M No. 092656

DATED: AUGUST 12, 2025 UDIN: 25092656BMLJMG2676