R) Provisions

Provisions are recognized when the Company has a present legal or constructive obligation
as a result of past events for which it is probable that an outflow of resources will be required
to settle the obligation and the amount can be reliably estimated as at the balance sheet date.
Provisions are measured based on management's estimate required to settle the obligation at
the balance sheet date and are discounted using a rate that reflects the time value of money.
When discounting is used, the increase in the provision due to the passage of time is
recognized as a finance cost.

Other Litigation Claims

Provision for litigation related obligation represents liabilities that are expected to materialize
in respect of matters in appeal.

Onerous Contracts

A provision for onerous contracts is measured at the present value of the lower expected
costs of terminating the contract and the expected cost of continuing with the contract. Before
a provision is established, the Company recognizes impairment on the assets with the
contract.

S) Taxes

Income tax expense for the period is the tax payable on the current period's taxable income
based on the applicable income tax rate and changes in deferred tax assets and liabilities
attributable to temporary differences. The current income tax charge is calculated in
accordance with the provisions of the Income Tax Act 1961.

Deferred income tax is determined using tax rates (and laws) that have been enacted or
substantially enacted at the end of the reporting period and are expected to apply when the
related deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred tax liabilities are recognized for all taxable temporary differences and deferred tax
assets are recognized for all deductible temporary differences and brought forward losses
only if it is probable that future taxable profit will be available to realize the temporary
differences.

Current tax assets and tax liabilities are offset where the entity has a legally enforceable right
to offset and intends either to settle on a net basis, or to realize the asset and settle the
liability simultaneously.

Current and deferred tax is recognized in profit or loss, except to the extent that it relates to
items recognized in other comprehensive income or directly in equity. In this case, the tax is
also recognized in other comprehensive income or directly in equity, respectively.

T) Employee Benefits

(i) Short-Term obligations

All employee benefits falling due wholly within twelve months of rendering the service are
classified as short-term employee benefits. These are expensed as the related service is
provided. A liability is recognized for the amount expected to be paid if the Company has a
present legal or constructive obligation to pay this amount as a result of past service provided
by the employee and the obligation can be estimated reliably.

(ii) Post-Employment obligations i.e.

• Defined benefit plans and

• Defined contribution plans

Defined Benefit Plans

The present value of obligation is determined based on actuarial valuation carried out as at
the end of each financial year using the Projected Unit Credit Method.

The obligation is measured at the present value of the estimated future cash flows. The
discount rate used for determining the present value of the obligation under defined benefit
plans, is based on the market yield on government securities, of a maturity period equivalent
to the weighted average maturity profile of the related obligations at the Balance Sheet date.

Re-measurement, comprising actuarial gains and losses, the effect of the changes to the
asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected
immediately in the balance sheet with a charge or credit recognized in other comprehensive
income in the period in which they occur. Re-measurement recognized in other
comprehensive income is reflected immediately in retained earnings and is not reclassified to
profit or loss. Past service cost is recognized in the statement of profit or loss in the period of
a plan amendment. Net interest is calculated by applying the discount rate at the beginning of
the period to the net defined benefit liability or asset.

Defined Contribution Plans

The Company's contribution to provident fund, employee state insurance scheme,
superannuation fund and National Pension Scheme (NPS) are considered as defined
contribution plans and are charged as an expense as they fall due based on the amount of
contribution required to be made and when services are rendered by the employee.

14.1 Loan from Banks / NBFCs / Financial Institutions*

1 HDFC Bank Limited has sanctioned various loans to the company such as working capital
term loans, commercial vehicle loans, car loans, GECL and business loans to the
company. The working capital term loans and GECL is secured against current assets of
the company and is further secured against immovable properties owned by promoter -
directors and their relatives. The commercial vehicle loans and car loans are secured
against the hypothecation of the vehicle purchased. The credit facilities are further
secured against personal guarantee of promoter - directors and their relatives. In some of
the credit facilities related to car loan, Mr. Deepak Kumar Singal has been designated as
Co-Borrower. The bank has also sanctioned unsecured business loan to the company.
The rate of interest ranges between 7% to 14% per annum and the repayment period
ranges between 12 to 120 months.

2 Punjab National Bank has sanctioned GECL loan to the company. The GECL is secured
against current assets of the company. The rate of interest is 9.25% per annum and the
repayment period is 48 months.

3 Aditya Birla Capital Limited has sanctioned loan against property (LAP) which is secured
against immovable property owned by Mr. Deepak Kumar Singal and is further secured
against personal guarantee of the promoters - directors and their relatives. The NBFC has
also sanctioned unsecured business loan to the company. The rate of interest ranges
between 11% to 16% per annum and the repayment period ranges between 24 to 147
months.

4 Axis Bank Limited has sanctioned various commercial vehicle loan against property (LAP)
which is secured against hypothecation of the vehicle purchased and is further secured
against personal guarantee of the promoters - directors. The bank has also sanctioned
unsecured business loan to the company which is secured against personal guarantee of
the Mr. Deepak Kumar Singal. The rate of interest ranges between 9.25% to 16% per
annum and the repayment period ranges between 36 to 60 months.

5 Kotak Mahindra Bank Limited has sanctioned various machinery equipment loans which is
secured against hypothecation of the equipment purchased. The bank has also
sanctioned unsecured business loan to the company which is secured against personal
guarantee of the promoter-directors and their relatives. The rate of interest ranges
between 14% to 16% per annum and the repayment period ranges between 22 to 47
months.

6 ICICI Bank Limited has sanctioned unsecured business loan to the company. The rate of
interest is 15% per annum and the repayment period is 36 months.

7 IDFC First Bank Limited has sanctioned unsecured business loan to the company. The
rate of interest is 15.50% per annum and the repayment period is 36 months.

8 Kisetsu Saison Finance (India) Private Limited has sanctioned unsecured business loan to
the company. The rate of interest is 16.50% per annum and the repayment period is 24
months.

9 Protium Finance Limited has sanctioned unsecured business loan to the company. The
rate of interest is 17% per annum and the repayment period is 30 months.

10 Sri Ram Finance Limited has sanctioned unsecured business loan to the company. The
rate of interest is 16% per annum and the repayment period is 24 months.

11 Moneywise Financial Services Private Limited has sanctioned unsecured business loan to
the company. The rate of interest is 16.50% per annum and the repayment period is 36
months.

12 SFMG India Credit Company Limited has sanctioned unsecured business loan to the
company. The rate of interest is 16% per annum and the repayment period is 36 months.

13 Tata Capital Financial Services Limited has sanctioned unsecured business loan to the
company. The rate of interest is 16% per annum and the repayment period is 36 months.

14 Fedbank Financial Services Limited has sanctioned unsecured business loan to the
company. The rate of interest is 16% per annum and the repayment period is 31 months.

* The rate of interest are subject to revision from time to time.

14.2 There has been no continuing default in repayment of loan' s installments and it's interest
thereon. Term Loans were applied for the purpose for which the loans were obtained.

19.1 Working Capital Limits are availed from Punjab National Bank and HDFC Bank by way of
Cash Credit Limit. The said limits are secured against inventories, book debts and other
current assets (both present and future) of the company. The credit facilities are also secured
against immovable properties owned by promoter - directors and their relatives. The credit
facilities are further secured against personal guarantee of promoter - directors and their
relatives. The working capital limits are repayable on demand. The rate of interest ranges
between 10.50% to 11.25% per annum subject to revision from time to time.

19.2 The loan from directors are repayable on demand. The same have been classified as
Current as per management's assessment of repayment.

19.3 The Company has filed quarterly returns / statement of current assets with banks for the
quarters and there are certain variances between the amounts reported and amounts as per
the books of accounts which are shown in Note No. 47.

36.2 Outstanding Statutory Demands

1 The Income Tax Department has raised demand u/s 154 of the I.T. Act, 1961 for an
amount of '56.31 Lakhs relevant to A.Y. 2023-24 and the Company has filed the appeal
with the Honourable CIT (Appeal) and the case is yet to be adjudicated.

2 The Company has an Outstanding TDS Demand of '43.43 Lakhs. The Company is in the
process of rectification of the same.

3 Demand Notice pertaining to the F.Y. 2019-20 amounting to '22.18 Lakhs has been
received under Goods and Services Tax Act, 2017. Appeal has been filed against this
order on December 03, 2024.

4 Demand Notice pertaining to the F.Y. 2019-20 amounting to '5.02 Lakhs has been
received under Goods and Services Tax Act, 2017. Appeal has been filed against this
order on April 16, 2025.

5 Demand Notice pertaining to the F.Y. 2018-19 amounting to '37.49 Lakhs has been
received under Goods and Services Tax Act, 2017. Appeal has been filed against this
order on September 09, 2024.

6 Demand Notice pertaining to the F.Y. 2018-19 amounting to '200.92 Lakhs has been
received under Goods and Services Tax Act, 2017. Appeal has been filed against this
order on June 27, 2024.

7 Demand Notice pertaining to the F.Y. 2019-20 amounting to '85.82 Lakhs has been
received under Goods and Services Tax Act, 2017. Appeal has been filed against this
order on December 20, 2024.

8 The Municipal Corporation, Chandigarh raised a demand for water supply bill of D274.00
Lakhs. The company has filed a case against Municipal Corporation, Chandigarh for the
legal demand raised by the department. The Hon'ble High Court has ordered the
company to provide the bank guarantee amounting to '91.33 Lakhs till the adjudication.

39 Segment Information

Ind AS-108 establishes standards for the way that the Company report information about
operating segments and related disclosures about products and services, geographical
areas, and major customers. The Company has only one business segment primarily
Construction Services and related services in relation to the construction activities. Based
on the '"Management Approach" as defined in Ind AS-108. The management also reviews
and measure the operating results taking the whole business as one segment and
accordingly make decision about the resources allocation. In view of the same, segment
reporting information is not required to be given as per the requirements of Ind AS-108 on
"Operating Segments". The accounting principles used in the preparation of the financial
statements are consistently applied to record revenue and expenditure in individual
segments and are as set out in the significant accounting policies.

41.3 Discount Rate used in determining Fair Value

(a) The interest rate used to discount estimated future cash flows, where applicable, are based
on the incremental borrowing rate of borrower which in case of financial liabilities is average
market cost of borrowings of the Company and in case of financial asset is the average
market rate of similar credit rated instrument. The company maintains policies and
procedures to value financial assets or financial liabilities using the best and most relevant
data available.

(b) The fair value of the financial assets and liabilities is included at the amount at which the
instrument could be exchanged in a current transaction between willing parties, other than in
a forced or liquidation sale.

42 Fair Value Hierarchy

All financial instruments for whi ch fair value is recog nized or disclosed are catego rized within
the fair value hierarchy, described as follows, based on the lowest level input that is
significant to the fair value measurement as a whole.

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

Level 2 - Valuation techniques for which the lowest level input that has a significant effect on
the fair value measurement are observable, either directly or indirectly.

Level 3 - Valuation techniques for which the lowest level input which has a significant effect
on the fair value measurement is not based on observable market data.

The following table provides the Fair Value Measurement Hierarchy of the Company’s Assets
and Liabilities -

43 Financial Risk Management Objectives and Policies

The Company’s principal financial liabilities comprise of trade and other payables,
borrowings, security deposits. The main purpose of these financial liabilities is to finance the
Company’s operations. The Company's principal financial assets include trade and other
receivables, cash, fixed deposits and security deposits that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior
management oversees the management of these risks. The Company's senior management
is supported by Finance department that advises on financial risks and the appropriate
financial risk governance framework for the Company. The Finance Department provides
assurance to the Company's senior management that the Company's financial risk activities
are governed by appropriate policies and procedures and that financial risks are identified,
measured and managed in accordance with the Company's policies and risk objectives. It is
the company's policy that no trading in derivatives for speculative purposes may be
undertaken. The Board of Directors reviews and agrees policies for managing each of these
risks, which are summarized below.

43.1 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 three types of risk:
interest rate risk, currency risk and other price risk, such as equity price risk.

The sensitivity analysis in the following sections relate to the position as at March 31,2025 &
March 31,2024.

The analysis exclude the impact of movements in market variables on: the carrying values of
gratuity and other post-retirement obligations; provisions; and the non - financial assets and
liabilities.

(a) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. The Company's exposure to the risk of
changes in market interest rates relates primarily to the Company's long term debt and short
term debt obligations with floating interest rates. The company is carrying its borrowings
primarily at variable rates. For floating rates borrowings the analysis is prepared assuming
the amount of the liability outstanding at the end of the reporting period was outstanding for
the whole year. A 50 basis point Increase or decrease is used when reporting interest rate
risk internally to Key management personnel and represents management's assessment of
the reasonably possible change in interest rates.

(b) Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will
fluctuate because of changes in foreign exchange rates. The Company’s exposure to the
risk of changes in foreign exchange rates relates primarily to the Company's operating
activities (when revenue or expense is denominated in a foreign currency).

The Company transacts business in local currency only. The Company does not have
foreign currency trade payables and receivables and is therefore, not exposed to foreign
exchange risk. The Company need not to use currency swaps or forward contracts
towards hedging risk resulting from changes and fluctuations in foreign currency
exchange rate as per the risk management policy.

(c) Price Risk

The Company’s exposure to price risk arises from investments held and classified in the
balance sheet either as fair value through other comprehensive income or at fair value
through profit or loss. To manage the price risk arising from investments, the Company
diversifies its portfolio of assets.

43.2 Credit Risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations
resulting in financial loss to our Company. Our Company is majorly dealing with
government authorities which results in mitigating the risk of financial loss from defaults.
Financial instruments that are subject to concentration of credit risk, principally consist of
balance with banks, trade receivables and loans and advances. Financial assets are
written off when there is no reasonable expectation of recovery. Our Company measures
the expected credit loss of trade receivables based on historical trend, industry practices
and the business environment in which we operate. Loss rates are based on actual credit
loss experience and past trends.

(a) Trade Receivables

Customer credit risk is managed by each Company subject to the Company’s established
policy, procedures and control relating to customer credit risk management. Credit quality
of a customer is assessed based on an extensive credit rating. Outstanding customer
receivables are regularly monitored.

An impairment analysis is performed at each reporting date on an individual basis for
major clients. In addition, a large number of minor receivables are grouped into
homogenous groups and assessed for impairment collectively. An impairment analysis is
performed at each reporting date on an individual basis for major customers. The
Company assesses the credit quality of the counterparties, taking into account their
financial position, past experience and other factors. The management believes that no
further provision is necessary in respect of trade receivables based on historical trends of
these customers. The customers of the company being Government and Government-
Controlled Entities undertakings which owns the company's on an average 65% to 70% of
the total debtors.

Also, an impairment analysis is performed at each reporting date on an individual basis
for the other receivables of the company. The Company establishes an allowance for
impairment that represents its expected credit losses in respect of other receivables.

43.3 Liquidity Risk

Liquidity risk is the risk that the Company may not be able to meet its present and future
cash and collateral obligations without incurring unacceptable losses.

The Company’s objective is to, at all times maintain optimum levels of liquidity to meet its
cash and collateral requirements. The Company closely monitors its liquidity position and
deploys a robust cash management system. It maintains adequate sources of financing
including loans from banks at an optimized cost.

44 Disclosure pursuant to Ind AS 116 - "Leases"

44.1 The Company applied the available practical expedients wherein it -

(a) Used a single discount rate to a portfolio of leases with reasonably similar characteristics.

(b) Relied on its assessment of whether leases are onerous immediately before the date of
initial application.

(c) Applied the short-term leases exemptions to leases with lease term that ends within 12
months of the date of initial application

(d) Excluded the initial direct costs from the measurement of the right-of-use asset at the date
of initial application

(e) Used hindsight in determining the lease term where the contract contained options to
extend or terminate the lease

44.2 The Company has taken Registered Office, Corporate Office and various Offices at Project
Sites under operating lease agreements till the end of Reporting Period. These are
generally cancellable and are renewable with mutual consent. However, the company has
now entered into Long Term Lease Contracts for Registered Office & Corporate Office for
upto 10 Years and 15 Years.

44.3 The Company has elected not to apply the requirements of Ind AS 116 to short term leases
of site offices that have a lease term of twelve months or less and leases for which the
underlying asset is of low value. The lease payments associated with these leases are
recognized as an expense on a straight line basis over the lease term.

44.4 The maturity analysis of contractual undiscounted cash flow in respect of lease recognized
under IND AS 116 is disclosed under note 44.3.

44.5 The effective interest rate for lease liabilities is 11%.

* Ratios variances have been explained for any change by more than 25% as compared to
the previous year.

# Total Equity, Average Shareholder's Equity and Capital Employed excludes Revaluation
Surplus.

^A This excludes the principal repayments made out of the IPO Proceeds of the Company.

** Return on Investment in case of Fixed Deposits have not been computed because the FD's
have been pledged against the margin held for Bank Guarantees. Return on Mutual Funds
is negligible and due to rounding off is not visible in the financial statements. Moreover, the
impact of the same is not material over financial statements, therefore, the same has not
been calculated.

45.1 Notes to Analytical Ratios

1 Variance in Current Ratio is on account of the significant increase in current assets during
the current year as compared to the previous year on account of the IPO Proceeds.

2 Variance in Debt Equity Ratio is on account of increase in total equity due to addition of IPO
Proceeds.

3 Variance in Debt Service Coverage Ratio is on account of increased debt repayments as
compared to the previous year.

4 Variance in Return on Equity Ratio is on account of increase in average shareholder's
equity on account of addition to equity from IPO proceeds.

5 Variance in Trade Payables Turnover Ratio is on account of significant increase in the
purchases in current year as compared to previous year.

6 Variation in Net Capital Turnover Ratio is on account of increase in amount of working
capital for completing for large size contracts / projects awarded to the company.

7 Variance in Return on Capital Employed is on account of significant increase in capital
employed on account of addition to equity from IPO proceeds.

46 Other Statutory Information

46.1 The company do not have any Benami property, where any proceeding has been initiated
or pending against the Company for holding any Benami property.

46.2 The Company do not have any transactions with companies struck off.

46.3 The Company do not have any charges or satisfaction which is yet to be registered with
ROC beyond the statutory period.

46.4 The Company have not traded or invested in Crypto currency or Virtual Currency during the
financial year.

46.5 The Company have 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:

(i) 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

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

46.6 The Company have 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:

(i) 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

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

46.7 The Company have 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

46.8 The Company has not been declared willful defaulter by any bank and financial institution or
government or any government authority.

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

46.10 The Company has not revalued its property, plant and equipment during the financial year.

46.11 The title deeds of all the immovable properties (other than properties where the Company is
the lessee and the lease agreements are duly executed in favour of the lessee) are held in
the name of the Company.

47 The Company has filed quarterly returns / statement of current assets with banks for the
quarters and there are certain variances between the amounts reported and amounts as per
the books of accounts which are shown below:

48 Initial Public Offer (IPO)

During the year ended 31st March, 2025 the Company has completed its Initial Public Offer
(‘IPO’) of 1,28,10,000 equity shares of face value of '10 each at an issue price of '203 per
share (including a share premium of '193 per share). The issue comprised of a fresh issue of
1,07,00,000 equity shares aggregating to '21,721.00 Lakhs and offer for sale of 21,10,000
equity shares aggregating to '4,283.30 Lakhs. The equity shares of the Company were listed
on the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) on 28th
October, 2024.

49 Events After Reporting Date

There were no significant adjusting events that occurred subsequent to the reporting period
other than the events disclosed in the relevant notes.

50 OTHER INFORMATION

50.1 GST Inputs and Outputs are considered in the books of accounts w.r.t. the purchases / inputs
and sales / outputs made during the year on which the assessee is eligible / liable by the
management. However difference if any, resulting at the time of GST Audit or any other
development or information later on, is provided for in the year in which such difference is
pointed out.

50.2 Previous year's figures have been regrouped / reclassified, wherever necessary, to conform to
current year classification.