Notes to Accounts of AVP Infracon Ltd.

Mar 31, 2025

11 Provisions and Contingent Liabilities:

A provision is recognised if, as a result of past event, the Company has a present legal obligation that can be estimated reliably and it is probable that an
outflow of economic benefit will be required to settle the obligation. Provisions are determined by the best estimate of outflow of economic benefits required
to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent
liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is
possible obligation or present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

12 Government Grant:

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 income are deferred and recognised in the profit or loss over the period necessary to match
them with the costs that they are intended to compensate and presented within other operating income.

13 Earnings Per Share:

Basic Earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period.
Diluted earnings per share is computed by dividing the net profit after tax by the weighted average number of shares considered for deriving basic earnings per
share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The diluted
potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value which is the average market value of the
outstanding shares. Dilutive potential equity shares are deemed converted as at the beginning of the period, unless issued at a later date. Dilutive potential
equity shares are determined independently for each period presented.

14 Cash and Cash Equivalents:

The Company’s cash and cash equivalents consist of cash on hand and in banks, which can be withdrawn at any time, without prior notice or penalty on the
principal. For the purposes of the statement of cash flows, cash and cash equivalents include cash on hand, in banks are considered part of the Company’s
cash management system. In the balance sheet, bank overdrafts are presented under borrowings within current liabilities.

15 Current and Non current classification:

1) “An asset shall be classified as current when it satisfies any of the following criteria:

(a) it is expected to be realized in, or is intended for sale or consumption in, the company’s normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is expected to be realized within twelve months after the reporting date; or it is Cash or cash equivalent unless it is restricted from being
exchanged or used to settle a liability for at least twelve months after the reporting date.

All other assets shall be classified as non-current.”

2) “A liability shall be classified as current when it satisfies any of the following criteria:

(a) it is expected to be settled in the company’s normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is due to be settled within twelve months after the reporting date; or

(d) the company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

All other liabilities shall be classified as non-current.”

“An operating cycle is the time between the acquisition of assets for processing and their realization in Cash or cash equivalents. Where the normal operating
cycle cannot be identified, it is assumed to have a duration of twelve months.”

The same operating cycle applies to the classification of the firm’s assets and liabilities .

16 Cash Flow Statement:

Cash flows are reported using indirect method, whereby net profit/loss before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals
or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash
flows from operating, investing and financing activities of the Company are segregated.

17 Segment Reporting:

The Company has considered the business segment as the primary reporting segment. The business segment have been identified on the basis of the
nature of products and services, the risks and returns, internal organisation and management structure and the internal performance reporting systems.
The business segment comprises of construction and transacts the business to construct, build, alter, acquire, convert, improve, design, erect, establish,
equip, develop, dismantle, pull down, level, decorate, fabricate, reconstruct, renovate, remodel, rebuild all types of infrastructure developmental works and
constructions works.

18 Investments:

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified
as current investments. All other investments are classified as long-term investments.

g) Terms & Rights attached to Equity Shares

(i) The company has one class of equity shares having par value of ?10/- (Rupees ten) each. Each shareholder is eligible for one vote per share held and
having dividend rights if any, declared by the board from time to time.

(ii) In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential
amounts, in proportionate to their shareholdings in the company.

(iii) The equity shares are not repayable, except in the case of a buyback, reduction of capital, or winding up, in accordance with the provisions of the
Companies Act, 2013.

(iv) Every member of the company holding equity shares has the right to attend the General Meeting of the company, to speak, and, on a show of hands, to
cast one vote if present in person. On a poll, the member shall have the right to vote in proportion to their share of the paid-up capital of the company.

(v) The rights, preferences and restrictions attaching to each class of shares:

The Company has only one class of shares and all shareholder have equal rights and there are no restriction.

3 Proposed Dividend Details:

The Company has not declared dividend during the year under review.

4 No issue of securities were made for any specific purpose by the Company during the reporting year.

5 The Company has not made borrowings from banks and financial institutions for any specific purposes during the year.

6 The assets other than Property, Plant and Equipment, Intangible Assets and non-current investments have value on realization in the ordinary course of
business equal to the amount at which they are stated.

7 Details of Benami Property Held:

There are no proceedings initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988
(45 of 1988).

8 The Company has been sanctioned working capital limits in excess of ? 5.00 crore, in aggregate, from banks or financial institutions on the basis of security
of current assets during the financial year ended March 31, 2025. Quarterly returns or statements of drawing power filed by the company with banks are
materially in agreement with the books of account.

A summary of the quarterly reconciliation between the statements filed with the banks and the books of account is provided below.

11 Registration of Charges or Satisfaction with Registrar of Companies:

The Company has no charge which is yet to be registered with Registrar of Companies beyond the statutory period .

12 Compliance with Number of Layers of Companies:

The Company has one wholly owned subsidiary, an unlisted public company named ‘AVP RENEWABLE ENERGIES LIMITED’, and holds investments in two
registered partnership firms, ''AVP RMC’ and ''KANTHAN BLUE METALS’. As wholly owned subsidiaries are excluded from the computation of layers under
Rule 2(2) of the Companies (Restriction on Number of Layers) Rules, 2017, hence layers prescribed under clause (87) of section 2 of the Companies Act
2013 read with Companies (Restriction on number of Layers) Rules, 2017 are not applicable.

13 Compliance with Approved Scheme(s) of Arrangements:

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

14 Utilisation of Borrowed Funds and Share Premium:

A. The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any
other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) 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.

B. 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

(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.

15 Corporate Social Responsibility:

The Corporate Social Responsibility (CSR) provisions are applicable to the Company from the financial year 2023-24 onwards. In compliance with Section
135(1) of the Companies Act, 2013, the Company has duly constituted a Corporate Social Responsibility (CSR) Committee and has also framed a CSR Policy
as required under the Act. The Company has undertaken projects in the area of education for underprivileged school children, healthcare, skill development
and infrastructure improvements. These projects are largely in accordance with Schedule VII read with Section 135(2) of the Companies Act, 2013.

25 Employee Benefit (Incurred in India):

Gratuity - The Present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method. This method considers each
period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation.

Interest Cost: It is the increase in the Plan liability over the accounting period resulting from the operation of the actuarial assumption of the interest rate.

Current Service Cost: It is the discounted present value of the benefits from the Plan’s benefit formula attributable to the services rendered by employees
during the accounting period.

Actuarial Gain or Loss: occurs when the experience of the Plan differs from that anticipated from the actuarial assumptions. It could also occur due to
changes made in the actuarial assumptions.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors
including supply and demand in the employment market. The above information is certified by the actuary.

26 Cash Flow Statement:

(1) The amount of significant cash and cash equivalent balances held by the enterprise as at March 31, 2025 was Rs.26,51,90,185.17/- that are available
for use by Company.

(2) The Company has appropriate amount of Cash Flows that are required to maintain operating capacity.

(3) The Company is investing adequately in the maintenance of its operating capacity.

Note: The above variance shall be addressed if there is a change in the variance of more than 25% as compared to the preceding year.

As per our Report on even date For and on behalf of the Board of Directors of

For P P N AND COMPANY AVP INFRACON LIMITED

Chartered Accountants
Firm Reg No: 013623S
Peer Review Certificate No. 013578

R. RAJ ARAM D. PRASANNA B. VENKATESHWARALU

Partner Managing Director Joint Managing Director cum Chief Financial Officer

Membership No: 238452 DIN: 02720759 DIN: 02720729

PRIYANKA SINGH

Place: Chennai Company Secretary cum Compliance Officer

Date: 29-04-2025 M. No.62187

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Mar 31, 2024

12 Provisions and Contingent Liabilities:

A provision is recognised if, as a result of past event, the Company has a present legal obligation that can be estimated reliably and it is probable that an outflow of economic benefit will be required to settle the obligation. Provisions are determined by the best estimate of outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is possible obligation or present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

13 Earnings Per Share:

Basic Earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit after tax by the weighted average number of shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The diluted potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value which is the average market value of the outstanding shares. Dilutive potential equity shares are deemed converted as at the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

14 Cash and Cash Equivalents:

The Company''s cash and cash equivalents consist of cash on hand and in banks, which can be withdrawn at any time, without prior notice or penalty on the principal. For the purposes of the statement of cash flows, cash and cash equivalents include cash on hand, in banks are considered part of the Company''s cash management system. In the balance sheet, bank overdrafts are presented under borrowings within current liabilities.

15 Cash Flow Statement:

Cash flows are reported using indirect method, whereby net profit/loss before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

16 Investments:

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

3 Proposed Dividend Details:

The Company has not declared dividend during the period under review.

4 No issue of securities were made for any specific purpose by the Company during the reporting year.

5 The Company has not made borrowings from banks and financial institutions for any specific purposes during the year.

6 The assets other than Property, Plant and Equipment, Intangible Assets and non-current investments have value on realization in the ordinary course of business equal to the amount at which they are stated.

7 Details of Benami Property Held:

There are no proceedings initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988).

8 The Company has made borrowings from the banks on the basis of security of current assets, and the statements of current assets as required to be filed by the Company with any the banks or financial institutions are done periodically.

9 Wilful Defaulter:

The company is not declared as wilful defaulter by any bank or financial institution or other lender.

10 Relationship with Struck off Companies:

The Company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013.

11 Registration of Charges or Satisfaction with Registrar of Companies:

The Company has no charge which is yet to be registered with Registrar of Companies beyond the statutory period .

12 Compliance with Number of Layers of Companies:

The Company has no subsidiaries hence layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 are not applicable, however the company has invested in a registered partnership firm AVP RMC.

13 Compliance with Approved Scheme(s) of Arrangements:

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

14 Utilisation of Borrowed Funds and Share Premium:

A. The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall

28 Changes in Accounting Estimates:

There are no changes in Accounting Estimates made by the Company for the period ended 31st March 2024.

29 Changes in Accounting Policies:

There are no changes in Accounting Policy made by the Company for the period ended 31st March 2024.

30 Disclosures on Property, Plant and Equipment and Intangible Assets:

I. Property, Plant and Equipment

(1) There is no restriction on the title of Property, Plant and Equipment, subject to only those which are under hypothication/ charge.

(2) Company has no contractual commitments for the acquisition of Property,Plant & Equipment.

(3) Company has no Impairment loss during the period for Property, Plant & Equipment.

(4) Assets are periodically checked for active usage and those which are retired are written off.

(5) There are no temporarily idle property, plant and equipment.

(6) Intangible asset is amortised as per Schedule II.

(7) The carrying amount and remaining amortization period of any individual intangible asset are not material to the financial statements of the enterprise as a whole.

(8) There are no amounts of intangible assets whose title is restricted and the carrying amounts of intangible assets pledged as security for liabilities.

31 Investments:

I. Profits and Losses with Regard to Investments have been Disclosed as under:

a) Profits and losses on disposal of current investments

b) Profits and losses on changes in the carrying amount of current investments

c) Profits and losses on disposal of long-term investments

d) Profits and losses on changes in the carrying amount of long- term investments

32 Segment Reporting:

The Company has considered the business segment as the primary reporting segment. The business segment have been identified on the basis of the nature of products and services, the risks and returns, internal organisation and management structure and the internal performance reporting systems. The business segment comprises of construction and transacts the business to construct, build, alter, acquire, convert, improve, design, erect, establish, equip, develop, dismantle, pull down, level, decorate, fabricate, reconstruct, renovate, remodel, rebuild all types of infrastructure developmental works and constructions works. business of construction and transacts the business to construct, build, alter, acquire, convert, improve, design, erect, establish, equip, develop, dismantle, pull down, level, decorate, fabricate, reconstruct, renovate, remodel, rebuild all types of infrastructure developmental works, constructions works

As per our Report on even date For and on behalf of the Board of Directors of

For P P N AND COMPANY AVP INFRACON LIMITED

Chartered Accountants (formerly known as AVP Infracon Private Limited & AVP Constructions Private Limited)

Firm Reg No: 013623S

Peer Review Certificate No. 013578

R.RAJARAM D. PRASANNA B. VENKATESHWARALU

Partner Managing Director Joint Managing Director cum Chief Financial Officer

DIN: 02720759 DIN: 02720729

Membership No: 238452

UDIN No: 24238452BKAGLG9952 PRIYANKA SINGH

Company Secretary cum Compliance Officer M. No.62187

Place: Chennai Date: 29-05-2024