g) Provisions

The Company recognizes a provision when: it has a present legal or constructive obligation as a result
of past events; it is likely that an outflow of resources will be required to settle the obligation; and the
amount has been reliably estimated. Provisions are not recognized for future operating losses.

h) Fair Value Measurement

The Company measures financial instruments, such as, derivatives at fair value at each balance sheet
date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The fair value measurement
is based on the presumption that the transaction to sell the asset or transfer the liability takes place
either:

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

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

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

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

i) Financial Instruments

(i) Financial Assets & Financial Liabilities
Initial recognition and measurement

All financial assets and liabilities are recognised initially at fair value.

In the case of financial assets not recorded at fair value through profit or loss, transaction costs that
are attributable to the acquisition of the financial asset is treated as cost of acquisition. Purchases or
sales of financial assets that require delivery of assets within a time frame established by regulation
or convention in the market place (regular way trades) are recognised on the trade date, i.e., the
date that the Company commits to purchase or sell the asset.

Subsequent Measurement

For purposes of subsequent measurement, financial assets are classified in following categories:

♦ Debt instruments at amortised cost

♦ Debt instruments at fair value through other comprehensive income (FVTOCI)

♦ Debt instruments, derivatives and equity instruments at fair value through profit or loss (FVTPL)

♦ Equity instruments measured at fair value through other comprehensive income (FVTOCI)

Financial liabilities are subsequently carried at amortized cost using the effective interest method,
except for contingent consideration recognized in a business combination which is subsequently
measured at fair value through profit and loss. For trade and other payables maturing within one
year from the Balance Sheet date, the carrying amounts approximate fair value due to the short
maturity of these instruments.

Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with
its assets carried at amortised cost. The impairment methodology applied depends on whether
there has been a significant increase in credit risk. The Explanatory Notes details how the entity
determines whether there has been a significant increase in credit risk. For trade receivables only,
the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which
requires expected lifetime losses to be recognised from initial recognition of the receivables.”

Derecognition of financial instruments

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 entity has transferred an asset, the group 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 entity has not transferred substantially all risks
and rewards of ownership of the financial asset, the financial asset is not derecognised.
Where the entity 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 group has not
retained control of the financial asset. Where the group retains control of the financial asset, the
asset is continued to be recognised to the extent of continuing involvement in the financial asset.

A financial liability (or a part of a financial liability) is derecognized from the Company’s Balance
Sheet when the obligation specified in the contract is discharged or cancelled or expires.

(ii) Investments in associates

Investments in associates are carried at cost in the Separate Financial Statements.

j) Revenue Recognition

i) Revenue is recognised to the extent that it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured, regardless of when the payment is being
made. Revenue is measured at the fair value of the consideration received or receivable, taking
into account contractually defined terms of payment and excluding taxes or duties collected on
behalf of the government. The Company has concluded that it is the principal in all of its revenue
arrangements since it is the primary obligor in all the revenue arrangements as it has pricing
latitude and is also exposed to credit risks. The specific recognition criteria described below must
also be met before revenue is recognised.

Manpower Services

Revenue from manpower services is accounted at a point in time on accrual basis on performance
of the services agreed in the contract with the customers.

Interest Income

For all financial instruments measured at amortised cost, interest income is recorded using the
effective interest rate (EIR). The EIR is the rate that exactly discounts the estimated future cash
receipts over the expected life of the financial instrument or a shorter period, where appropriate,
to the net carrying amount of the 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 but does not consider the expected credit losses. Interest income is included in finance
income in the statement of profit or loss.

Dividends

Dividend income is recognised when the Company’s right to receive the payment is established,
which is generally when shareholders approve the dividend.

k) Taxes

Tax expenses comprise Current Tax and Deferred Tax.:

i) Current Tax:

The income tax expense or credit for the period is the tax payable on the current period’s taxable
income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred
tax assets and liabilities attributable to temporary differences and to unused tax losses. The current
income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the
end of the reporting period in the countries where the company and its subsidiaries and associates
operate and generate taxable income. Management periodically evaluates positions taken in tax
returns with respect to situations in which applicable tax regulation is subject to interpretation. It
establishes provisions where appropriate on the basis of amounts expected to be paid to the tax
authorities.

ii) Deferred Tax:

Deferred income tax is provided in full, using the liability method, on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the standalone
financial statements. However, deferred tax liabilities are not recognised if they arise from the
initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial
recognition of an asset or liability in a transaction other than a business combination that at the time
of the transaction affects neither accounting profit nor taxable profit (tax loss). Deferred income
tax is determined using tax rates (and laws) that have been enacted or substantially enacted by
the end of the reporting period and are expected to apply when the related deferred income tax
asset is realised or the deferred income tax liability is settled. Deferred tax assets are recognised
for all deductible temporary differences and unused tax losses only if it is probable that future
taxable amounts will be available to utilise those temporary differences and losses. Current and
deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised
in other comprehensive income or directly in equity. In this case, the tax is also recognised in other
comprehensive income or directly in equity, respectively.

For items recognised in OCI or equity, deferred / current tax is also recognised in OCI or equity.

iii) Minimum Alternate Tax (MAT) Credit:

The Company has opted for income tax under Section 115BAA of the Income tax act, 1961. As
per provisions of the Act, the domestic companies opting for section 115BAA will not be able
to claim MAT credits for taxes paid under MAT during the tax holiday period. The companies
would not be able to reduce their tax liabilities under section 115BAA by claiming MAT credits.
Therefore, the Company has reversed all the MAT credit during the year 2020-21.

l) Earnings Per Share

Earnings per share is calculated by dividing the net profit or loss before OCI for the year by the weighted
average number of equity shares outstanding during the period. For the purpose of calculating diluted
earnings per share, the net profit or loss before OCI for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are adjusted for the effects of all
dilutive potential equity shares.

m) Dividend Distribution

Dividend distribution to the Company’s equity holders is recognized as a liability in the Company’s
annual accounts in the year in which the dividends are approved by the Company’s equity holders.

n) Foreign exchange transactions

Foreign currency transactions are recorded at the rates of exchange prevailing on the dates of the
respective transaction. Exchange differences arising on foreign exchange transactions settled during
the year are recognised in the statement of profit and loss.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are
translated at the closing exchange rates on that date, the resultant exchange differences are recognised
in the statement of profit and loss.

o) Employee benefits

Short term employee benefits

Employee benefits payable wholly within twelve months of receiving employee services are classified as
short-term employee benefits. These benefits include salaries and wages, bonus and other benefits. The
undiscounted amount of short-term employee benefits to be paid in exchange for employee services is
recognised as an expense as the related service is rendered by employees.”

Post-employment benefits

i. Defined contribution plans

A defined contribution plan is a post-employment benefit plan where the company makes specified
monthly contributions towards employee provident fund to Government administered provident
fund scheme which is a defined contribution plan. The Company’s contribution is recognised as an
expense in the statement of profit and loss during the period in which the employee renders the
related service.

ii. Defined benefit plans -Gratuity

In accordance with the applicable Indian laws, the Company provides for gratuity, defined benefit
retirement plan (“the Gratuity plan”) covering eligible employees. The Gratuity plan provides a
lump-sum payment to eligible employees at retirement, death, incapacitation or termination of
employment, of an amount based on the respective employee’s salary and the tenure of employment.
Liabilities with regard to the Gratuity plan are determined by actuarial valuation, performed by an
independent actuary, at each reporting date using the projected unit credit method. Actuarial gains
and losses are recognised in full in the other comprehensive income for the period in which they
occur. Current service cost and the interest cost on obligation related to defined benefit plans are
recognised in the statement of profit or loss.

p) Share based payments

Equity settled share-based payment transactions:

The Company operates equity settled share-based remuneration plans for its employees. All services
received in exchange for the grant of any share-based payment are measured at their fair values on
the grant date and is recognised as an employee expense, in the profit or loss with a corresponding
increase in equity, over the period that the employees become unconditionally entitled to the options.
The increase in equity recognised in connection with share-based payment transaction is presented as
a separate component in equity under “Employee stock options / Employee stock appreciation rights”.

The amount recognised as an expense is adjusted to reflect the actual number of stock options that vest.

Grant date is the date when the Company and employees have shared an understanding of terms and
conditions on the arrangement.

Where employees are rewarded using share-based payments, the fair value of employees’ services
is determined indirectly by reference to the fair value of the equity instruments granted. This fair value
is appraised at the grant date and excludes the impact of non-market vesting conditions (for example
profitability and sales growth). All share-based remuneration is ultimately recognised as an expense in
the profit or loss. If vesting periods or other vesting conditions apply, the expense is allocated over the
vesting period, based on the best available estimate of the number of share options expected to vest.
Non-market vesting conditions are included in assumptions about the number of options that are
expected to become exercisable. Estimates are subsequently revised if there is any indication that the
number of share options expected to vest differs from previous estimates. Any adjustment to cumulative
share-based compensation resulting from a revision is recognised in the current period. The number
of vested options ultimately exercised by holder does not impact the expense recorded in any period.
Market conditions are taken into account when estimating the fair value of the equity instruments granted.
Upon exercise of share options, the proceeds received, net of any directly attributable transaction costs,
are allocated to share capital up to the nominal (or par) value of the shares issued with any excess being
recorded as share premium.

q) Leases

The following is the summary of the new and/or revised significant accounting policies related to Leases.
The Company, as a lessee, recognizes a right-of-use asset and a lease liability for its leasing
arrangements, if the contract conveys the right to control the use of an identified asset.
The contract conveys the right to control the use of an identified asset, if it involves the use of an
identified asset and the Company has substantially all of the economic benefits from use of the asset
and has right to direct the use of the identified asset. The cost of the right-of-use asset shall comprise
of the amount of the initial measurement of the lease liability adjusted for any lease payments made
at or before the commencement date plus any initial direct costs incurred. The right-of-use assets is
subsequently measured at cost less any accumulated depreciation, accumulated impairment losses,
if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated
using the straight-line method from the commencement date over the shorter of lease term or useful life
of right-of-use asset.

The Company measures the lease liability at the present value of the lease payments that are not paid at
the commencement date of the lease. The lease payments are discounted using the interest rate implicit
in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Group
uses incremental borrowing rate.

For short-term and low value leases, the Company recognizes the lease payments as an operating
expense on a straight-line basis over the lease term.

A Expected Credit Loss:

Trade receivables and unbilled revenue are unsecured and are derived from revenue earned from customers primarily
located in India. Periodically, the Company evaluates all customer dues to the Company for collectability. The need for
impairment is assessed based on various factors including collectability of specific dues, risk perceptions of the industry in
which the customers operates, general economic factors, which could affect the customer's ability to settle. More than 95%
of the Company's customers have been transacting with the Company for over five years and none of these customers'
balance are credit impaired. An impairment analysis is performed at each reporting date on invoice wise receivable balances.
The Life time credit loss write off during the year arises more out of the disputes or charges rather than credit impairment.

Since the Company Calculates impairment under the simplified approach the Company does not track the changes in
credit risk of trade receivables the impairment amount represents lifetime expected credit loss. Hence the additional
disclosures in trade receivables for changes in credit risk and credit impaired trade receivable are not disclosed.

Movement in the expected credit loss allowance

Security for loans and Terms of payment

In respect of Cash Credit, working capital demand loan and Bank guarantees from HSBC Bank Limited

a. Pari Passu charge on Current Assets and Fixed Assets.

b. Exclusive Charge over Property situated at Office no. 901,9th floor, B2, Marathon Nextgen Innova, Lower Parel, Mumbai
400013.

c. Personal Guarantee from Mr. Jaydev Sanghavi and Mr. Virendra Sanghavi

d. 15% Deposits under lien

e. 100% Deposit Under Lien open ended BG

In respect of Cash Credit, working capital demand loan and Bank guarantees from Yes Bank Limited

a. Pari Passu charge with HDFC Bank and HSBC on Current Assets and movable Fixed Assets.

b. Equitable mortgage of commercial properties located at Shah & Nahar Industrial Estate, Lower Parel (Mumbai) and
Marathon Nextgen Realty Limited, Lower Parel (Mumbai).

c. Unconditional and Irrevocable Personal guarantees of Mr Jaydev Sanghavi, Mr Virendra Sanghavi.
e. ' 73.50 lakhs in the form of fixed deposit receipt placed under bank lien.

In respect of Cash Credit, working capital demand loan and Bank guarantees from HDFC Bank Limited

a. First charge on Pari Passu basis with HSBC and Yes Bank by the way of Hypothecation on all present and future book
debts of the Company.

b. Fixed Deposit of ' 383.55 lakhs under lien

c. Exclusive charge on Flat No 11 & 11A, Building O, 4th Floor, Konark Campus Co-operative Housing Society, Lohegaon
Village, Taluka Haveli, Pune.

a) Disclosure in accordance with Ind AS - 19 “Employee Benefits”, of the Companies (Indian Accounting Standards) Rules,
2015.

The company has carried out the actuarial valuation of Gratuity liability under actuarial principle, in accordance with Ind
AS 19 - Employee Benefits.

Gratuity is a defined benefit plan under which employees who have completed five years or more of service are entitled to
gratuity on departure from employment at an amount equivalent to 15 days salary (based on last drawn salary) for each
completed year of service restricted to ' 20 lakhs. The Company’s gratuity liability is Funded.

A Actuarial Risk

It is the risk that benefits will cost more than expected.This can arise due to one of the following reasons:

Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an
increase in Obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than the Gratuity
Benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of
cash flow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount
rate.

B Investment Risk:

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the
fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future
discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in
the discount rate during the inter-valuation period.

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If
some of such employees resign/retire from the company there can be strain on the cashflows.

D Market Risk:

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One
actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money.
An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This
assumption depends on the yields on the corporate/government bonds and hence the valuation of liability is exposed to
fluctuations in the yields as at the valuation date.

E Legislative Risk:

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation/
regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits
to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same will have to be
recognized immediately in the year when any such amendment is effective.

Figures above do not include IND AS Adjustments

For KMP, Reimbursement of Expenses is not reported above.

(Previous years figures are in bracket)

* Expenses towards gratuity and compensated absences has not been considered in above information as a
separate actuarial valuation is not available. Remuneration reported pertains to the amount paid including variable
pay of previous year but does not include provisions towards variable pay, share based payment expenses as per
Ind AS 102 etc.

All transactions with these related parties are priced on an arm’s length basis. None of the balance is secured.

24 Corporate Social Responsibility
For 2025-26

a Gross amount required to be spent by the Company during the year : ' 26.12 Lakhs

b Excess amount spent for the Financial Year 24-25 (Amount Allowed to be set off against CSR Expenditure of the Current

Year) : ' 1.34 Lakhs

c Amount to be spent in F.Y. 2025-26 : ' 24.78 Lakhs
d Actual Amount spent by the Company during the year is as follows ;

26 Significant accounting judgements, estimates and assumptions

The financial statements require management to make judgments, estimates and assumptions that affect the reported
amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosures of
contingent liabilities. 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 .

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 recognised in the separate financial statements.

Taxes

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

28 Fair Value Hierarchy

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are

(a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the
financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the group has
classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level
follows underneath the table.

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

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e.
as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

29 Financial risk factors

Risk management framework

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk
management framework. The Company’s risk management policies are established to identify and analyse the risks faced
by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management
policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The
Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive
control environment in which all employees understand their roles and obligations.

(a) Credit risk

Credit risk is the risk that counterparty will not meet its contractual 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 loans receivables, investments and other financial instruments.

(b) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The
objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available to meet its
liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage
to the Company’s reputation. The Company monitors its risk of a shortage of funds on a regular basis. The Company’s
objective is to maintain a balance between continuity of funding and flexibility through the use of cash credit facilities.

(c) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises two types of risk: interest rate risk and foreign currency risk. Financial instruments
affected by market risks include trade receivable and trade payable.

i. Interest rate Risk

Interest rate risk is the risk that the fair value or future cash flows of the Company’s financial instruments will fluctuate
because of changes in market interest rates. The Company does not have significant debt obligation with floating
interest rates, hence is not exposed to any significant interest rate risks.

ii. 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 currency rates. The Company does not have significant foreign currency exposure and hence is
not exposed to any significant foreign currency risks.

30 Capital management

For the purpose of the company’s capital management, capital includes issued equity capital and all other equity reserves
attributable to the equity holders of the parent. The primary objective of the company’s capital management is to maximise the
shareholder value.

The company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The company monitors capital using a gearing
ratio, which is net debt divided by total capital plus net debt. The company includes within net debt, short term borrowings,
trade and other payables, less cash and cash equivalents.

35 Effective November 21, 2025, the Government of India (GoI) has consolidated multiple existing labour legislations
into a unified framework comprising four labour codes collectively referred to as the ‘The New Labour Codes’. The
Company has done actuarial valuation of Gratuity as on 31st March 2026. On the basis of Actuarial Valuation The
Company has disclosed the incremental impact of these changes, which has resulted an increase in gratuity liability
by ' 147.75 Lacs and the same has been recognised as an exceptional item in the current reporting period. In
case of associate employees i.e. billable employees, the Company is of the view that these costs are contractually
recoverable from customers and therefore do not have any impact on the statement of profit and loss for the period.
The GoI is in the process of notifying rules related to the New Labour Codes and impact of these will be evaluated and
accounted for in accordance with the applicable Indian accounting standards in the period in which they are notified.

36 During the year ended 31st March 2026, the Company reviewed the requirement of maintaining the Gratuity
Retention Balance in view of the implementation of the New Labour Code and considering that adequate provision
for gratuity liability has already been made based on actuarial valuation carried out in accordance with applicable
accounting standards. Accordingly, the Company has written back the Gratuity Retention Balance amounting to '
114.02 Lakhs, and the same has been disclosed as an Exceptional Item in the current reporting period.