Notes to Accounts of Interarch Building Solutions Ltd.

Mar 31, 2025

XIV. Provisions, contingent liabilities and contingent

assets

i. General

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 Company 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.

ii. Onerous contracts

If the Company has a contract that is onerous,
the present obligation under the contract
is recognised and measured as a provision.
However, before a separate provision for an
onerous contract is established, the Company
recognises any impairment loss that has
occurred on assets dedicated to that contract.

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

iii. Contingent liabilities

A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non- occurrence
of one or more uncertain future events beyond
the controlof the Company or a present
obligation that is not recognised because it is
not probable that an outflow of resources will be
required to settle obligation. A contingent liability
also arises in extremely rare cases where there is
a liability that can not be recognised because it
cannot be measured reliably. The Company does
not recognise a contingent liability but discloses
its existence in the Financial Statements.

iv. Contingent assets

Contingent assets are not recognised in the
FinancialStatements. however, when the
realisation of income is virtually certain, then the
related asset is not a contingent asset and its
recognition is appropriate.

XV. Retirement and other employee benefits
Provident fund

Retirement benefit in the form of provident fund
is a defined contribution scheme. The Company
has no obligation, other than the contribution
payable to the provident fund. The Company

recognises contribution payable to the provident
fund scheme as an expense, when an employee
renders the related service. If the contribution
payable to the scheme for service received before
the balance sheet date exceeds the contribution
already paid, the deficit payable to the scheme
is recognised as a liability after deducting the
contribution already paid. If the contribution
already paid exceeds the contribution due for
services received before the balance sheet date,
then excess is recognised as an asset to the
extent that the pre-payment will lead to , for
example, a reduction in future payment or a cash
refund.

Defined benefit plan

The Company operates one defined benefit
gratuity plan for its employees. The Company''s net
obligation in respect of defined benefit gratuity
plan is calculated by estimating the amount of
future benefit that employees have earned in
the current and prior periods, discounting that
amount and deducting the fair value of any plan
assets.

The calculation of defined benefit obligations is
performed annually by a qualified actuary using
the projected unit credit method. When the
calculation results in a potential asset for the
Company, the recognised asset is limited to the
present value of economic benefits available in
the form of any future refunds from the plan or
reductions in future contributions to the plan
(''the asset ceiling''). To calculate the present value
of economic benefits, consideration is given to
any applicable minimum funding requirements.

Remeasurements of the net defined benefit
liability, which comprise actuarialgains and
losses, the return on plan assets (excluding
interest) and the effect of the asset ceiling (if any,
excluding interest), are recognised immediately
in OCI. The Company determines the net
interest expense (income) on the net defined
benefit liability (asset) for the period by applying
the discount rate determined by reference to
market yields at the end of the reporting period
on government bonds. This rate is applied on
the net defined benefit liability (asset), both as
determined at the start of the annual reporting
period, taking into account any changes in the net
defined benefit liability (asset) during the year as
a result of contributions and benefit payments.

Net interest expense and other expenses related
to defined benefit plans are recognised in profit
or loss.

When the benefits of a plan are changed or
when a plan is curtailed, the resulting change in
benefit that relates to past service (''past service
cost'' or ''past service gain'') or the gain or loss on
curtailment is recognised immediately in profit or
loss. The Company recognises gains and losses
on the settlement of a defined benefit plan when
the settlement occurs.

Short term employee benefits

Accumulated leave, which is expected to be
utilised within the next 12 months, is treated
as short-term employee benefit. The Company
measures the expected cost of such absences
as the additional amount that it expects to
pay as a result of the unused entitlement that
has accumulated at the reporting date. The
Company recognises expected cost of short¬
term employee benefit as an expense, when an
employee renders the related service.

Long term employee benefits

The Company treats accumulated leave expected
to be carried forward beyond twelve months, as
long-term employee benefit for measurement
purposes. Such long-term compensated
absences are provided for based on the actuarial
valuation using the projected unit credit method
at the reporting date. Actuarial gains/losses are
immediately taken to the statement of profit
and loss and are not deferred. The obligations
are presented as current liabilities in the balance
sheet if the entity does not have an unconditional
right to defer the settlement for at least twelve
months after the reporting date.

XVI. Financial instruments

A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.

Financial assets:

Initial recognition and measurement:

Financial assets are classified, at initial recognition, as
subsequently measured at amortised cost, fair value
through other comprehensive income (OCI), and
fair value through profit or loss. The classification of
financial assets at initial recognition depends on the

financial asset''s contractual cash flow characteristics
and the Company''s business model for managing
them. With the exception of trade receivables that
do not contain a significant financing component
or for which the Company has applied the practical
expedient, the Company initially measures a
financial asset at its fair value plus, in the case of a
financial asset not at fair value through profit or
loss, transaction costs. Trade receivables that do not
contain a significant financing component or for which
the Company has applied the practical expedient are
measured at the transaction price determined under
Ind AS 115. Refer to the accounting policies in section
(IV) Revenue from contracts with customers.

In order for a financial asset to be classified and
measured at amortised cost or fair value through
OCI, it needs to give rise to cash flows that are ''solely
payments of principaland interest (SPPI)'' on the
principalamount outstanding. This assessment is
referred to as the SPPI test and is performed at an
instrument level. Financial assets with cash flows that
are not SPPI are classified and measured at fair value
through profit or loss, irrespective of the business
model.

The Company''s business modelfor managing
financial assets refers to how it manages its financial
assets in order to generate cash flows. The business
modeldetermines whether cash flows willresult
from collecting contractualcash flows, selling the
financial assets, or both. Financial assets classified
and measured at amortised cost are held within a
business model with the objective to hold financial
assets in order to collect contractual cash flows while
financial assets classified and measured at fair value
through OCI are held within a business model with the
objective of both holding to collect contractual cash
flows and selling.

Subsequent measurement

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

i. Financialassets at amortised cost (debt
instruments)

ii. Financial assets at fair value through other
comprehensive income (FVTOCI) with recycling of
cumulative gains and losses (debt instruments)

iii. Financial assets designated at fair value through
OCI with no recycling of cumulative gains and
losses upon derecognition (equity instruments)

iv. Financial assets at fair value through profit or
loss

Financial assets at amortised cost (debt
instruments)

A ''financial asset'' is measured at the amortised cost if
both the following conditions are met:

i. The asset is held within a business model
whose objective is to hold assets for collecting
contractual cash flows, and

ii. Contractualterms of the asset give rise on
specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the
principal amount outstanding.

This category is the most relevant to the Company.
After initial measurement, such financial assets are
subsequently measured at amortised cost using the
effective interest rate (EIR) method. 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
in finance income in the profit or loss. The losses
arising from impairment are recognised in the profit
or loss. The Company''s financial assets at amortised
cost includes trade receivables, and security deposit
included under other non-current financial assets. For
more information on receivables refer note 7(b) and
7(f).

Financial assets at fair value through OCI
(FVTOCI) (debt instruments)

A ''financial asset'' is classified as at the FVTOCI if both
of the following criteria are met:

i. The objective of the business model is achieved
both by collecting contractual cash flows and
selling the financial assets, and

ii. The asset''s contractual cash flows represent SPPI

Debt instruments included within the FVTOCI category
are measured initially as well as at each reporting date
at fair value. For debt instruments, at fair value through
OCI, interest income, foreign exchange revaluation
and impairment losses or reversals are recognised in
the profit or loss and computed in the same manner
as for financial assets measured at amortised cost.
The remaining fair value changes are recognised in
OCI. Upon derecognition, the cumulative fair value
changes recognised in OCI is reclassified from the
equity to profit or loss.

The Company has not designated any financial asset
(debt instruments) at FVTOCI.

Financial assets designated at fair value through
OCI (equity instruments)

Upon initial recognition, the Company can elect to
classify irrevocably its equity investments as equity
instruments designated at fair value through OCI
when they meet the definition of equity under Ind
AS 32 FinancialInstruments: Presentation and are
not held for trading. The classification is determined
on an instrument-by-instrument basis. Equity
instruments which are held for trading and contingent
consideration recognised by an acquirer in a business
combination to which Ind AS103 applies are classified
as at FVTPL.

Gains and losses on these financial assets are never
recycled to profit or loss. Dividends are recognised as
other income in the statement of profit and loss when
the right of payment has been established, except
when the Company benefits from such proceeds as
a recovery of part of the cost of the financial asset,
in which case, such gains are recorded in OCI. Equity
instruments designated at fair value through OCI are
not subject to impairment assessment.

The Company has not designated any financial asset
(equity instruments) as at FVTOCI.

Financial assets at fair value through profit or
loss

Financial assets at fair value through profit or loss
are carried in the balance sheet at fair value with net
changes in fair value recognised in the statement of
profit and loss.

This category includes such financial assets which the
Company had not irrevocably elected to classify at
fair value through OCI. The Company has designated
investments in mutual funds (equity instruments) in
this category.

Embedded Derivatives

A derivative embedded in a hybrid contract, with a
financial liability or non-financial host, is separated from
the host and accounted for as a separate derivative if:
the economic characteristics and risks are not closely
related to the host; a separate instrument with the
same terms as the embedded derivative would meet
the definition of a derivative; and the hybrid contract

is not measured at fair value through profit or loss.
Embedded derivatives are measured at fair value
with changes in fair value recognised in profit or loss.
Reassessment only occurs if there is either a change
in the terms of the contract that significantly modifies
the cash flows that would otherwise be required or a
reclassification of a financial asset out of the fair value
through profit or loss category.

Derecognition

A financial asset (or, where applicable, a part of a
financial asset or part of a Company of similar financial
assets) is primarily derecognised (i.e. removed from
the Company''s balance sheet) when:

i. The rights to receive cash flows from the asset
have expired, or

ii. The Company has transferred its rights to receive
cash flows from the asset or has assumed an
obligation to pay the received cash flows in full
without material delay to a third party under
a ''pass-through'' arrangement; and either (a)
the Company has transferred substantially all
the risks and rewards of the asset, or (b) the
Company has neither transferred nor retained
substantially all the risks and rewards of the
asset, but has transferred control of the asset.

When the Company has transferred its rights to
receive cash flows from an asset or has entered
into a pass-through arrangement, it evaluates if and
to what extent it has retained the risks and rewards
of ownership. When it has neither transferred nor
retained substantially all of the risks and rewards of
the asset, nor transferred control of the asset, the
Company continues to recognise the transferred
asset to the extent of the Company''s continuing
involvement. In that case, the Company also
recognises an associated liability. The transferred
asset and the associated liability are measured on a
basis that reflects the rights and obligations that the
Company has retained.

Continuing involvement that takes the form of a
guarantee over the transferred asset is measured at
the lower of the original carrying amount of the asset
and the maximum amount of consideration that the
Company could be required to repay.

Impairment of financial assets

Further disclosures relating to impairment of financial
assets are also provided in the following notes:

i. Disclosures for significant assumptions - see
Note 32

ii. Trade receivables and contract assets - see Note
7(b)

The Company recognises an allowance for expected
credit losses (ECLs) for all debt instruments not held
at fair value through profit or loss. ECLs are based on
the difference between the contractual cash flows due
in accordance with the contract and all the cash flows
that the Company expects to receive, discounted at
an approximation of the original effective interest
rate. The expected cash flows willinclude cash
flows from the sale of collateral held or other credit
enhancements that are integral to the contractual
terms.

ECLs are recognised in two stages. For credit exposures
for which there has not been a significant increase in
credit risk since initial recognition, ECLs are provided
for credit losses that result from default events that are
possible within the next 12-months (a 12-month ECL).
For those credit exposures for which there has been a
significant increase in credit risk since initial recognition,
a loss allowance is required for credit losses expected
over the remaining life of the exposure, irrespective of
the timing of the default (a lifetime ECL).

For trade receivables and contract assets, the
Company applies a simplified approach in calculating
ECLs. Therefore, the Company does not track changes
in credit risk, but instead recognises a loss allowance
based on lifetime ECLs at each reporting date. The
Company has established a provision matrix that is
based on its historical credit loss experience, adjusted
for forward-looking factors specific to the debtors and
the economic environment.

The Company considers a financial asset in default
when contractual payments are 90 days past due.
However, in certain cases, the Company may also
consider a financial asset to be in default when internal
or external information indicates that the Company
is unlikely to receive the outstanding contractual
amounts in full before taking into account any credit
enhancements held by the Company. A financial asset
is written off when there is no reasonable expectation
of recovering the contractual cash flows.

Reclassification of financial assets

The Company determines classification of financial
assets and liabilities on initialrecognition. After
initial recognition, no reclassification is made for

financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments,
a reclassification is made only if there is a change in the business model for managing those assets. Changes to
the business model are expected to be infrequent. The Company''s senior management determines change in the
business model as a result of external or internal changes which are significant to the Company''s operations. Such
changes are evident to external parties. A change in the business model occurs when the Company either begins or
ceases to perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies
the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting
year following the change in business model. The Company does not restate any previously recognised gains, losses
(including impairment gains or losses) or interest.

The following table shows various reclassification and how they are accounted for:

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, or as derivatives designated as hedging
instruments in an effective hedge, 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.

Subsequent measurement

For purposes of subsequent measurement,
financial liabilities are classified in two categories:

i. Financial liabilities at fair value through
profit or loss

ii. Financial liabilities at amortised cost (loans
and borrowings)

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. This category also
includes derivative financial instruments entered
into by the Company that are not designated as
hedging instruments in hedge relationships as
defined by Ind AS 109. Separated embedded
derivatives are also classified as held for trading
unless they are designated as effective hedging
instruments.

Gains or losses on liabilities held for trading are
recognised in the profit or loss.

Financial liabilities designated upon initial
recognition at fair value through profit or loss
are designated as such at the initial date of
recognition, and only if the criteria in Ind AS 109

are satisfied. For liabilities designated as FVTPL,
fair value gains/ losses attributable to changes
in own credit risk are recognised in OCI. These
gains/ losses are not subsequently transferred
to P&L. However, the Company may transfer
the cumulative gain or loss within equity. All
other changes in fair value of such liability are
recognised in the statement of profit and loss.
The Company has not designated any financial
liability as at fair value through profit or loss."

Financial liabilities at amortised cost (Loans
and borrowings)

After initialrecognition, interest-bearing loans
and borrowings are subsequently measured
at amortised cost using the 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.

This category generally applies to borrowings.
For more information refer note 14(a).

Derecognition

A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the
terms of an existing liability are substantially
modified, such an exchange or modification
is treated as the derecognition of the original
liability and the recognition of a new liability. The
difference in the respective carrying amounts is
recognised in the statement of profit and loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset
and the net amount is reported in the balance
sheet if there is a currently enforceable legal right
to offset the recognised amounts and there is an
intention to settle on a net basis, to realise the
assets and settle the liabilities simultaneously.

XVII. 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, that

are readily convertible to a known amount of cash
and subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash
and cash equivalents consist of cash and short-term
deposits, as defined above, net of outstanding bank
overdrafts as they are considered an integral part of
the Company''s cash management.

XVIII. Dividend:

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

XIX. Earnings per share:

Basic earnings per share is calculated by dividing the
net profit or loss attributable to equity holders of
Company (after deducting preference dividends and
attributable taxes) by the weighted average number
of equity shares outstanding during the year.

The weighted average number of equity shares
outstanding during the period is adjusted for events
such as bonus issue, bonus element in a rights issue,
share split, and reverse share split (consolidation
of shares) that have changed the number of equity
shares outstanding, without a corresponding change
in resources.

For the purpose of calculating diluted earning per
share, the net profit or loss for the period attributable
to equity shareholders of the Company and the
weighted average number of shares outstanding
during the year are adjusted for the effects of all
dilutive potential equity shares.

XX. Segment Reporting
Identification of segments

The Company''s operating businesses are organised
and managed on a single segment considering
activities of manufacturing, supply, erection and
installation of pre- engineered buildings and related
services as one single operating segment. The analysis
of geographical segments is based on the location in
which the customers are situated.

Segment accounting policies

The Company prepares its segment information in
conformity with the accounting policies adopted for
preparing and presenting the Financial Statements of
the Company as whole.

XXI. Share-based payments

Employees (including senior executives) of the
Company receive remuneration in the form of share-
based payments, whereby employees render services
as consideration for equity instruments (equity-settled
transactions).

Equity-settled transactions

The cost of equity-settled transactions is determined
by the fair value at the date when the grant is made
using an appropriate valuation model. Further details
are given in Note 39

That cost is recognised, together with a corresponding
increase in share-based payment (SBP) reserves in
equity, over the period in which the performance and/
or service conditions are fulfilled in employee benefits
expense. The cumulative expense recognised for
equity-settled transactions at each reporting date
until the vesting date reflects the extent to which
the vesting period has expired and the Company''s
best estimate of the number of equity instruments
that will ultimately vest. The expense or credit in the
statement of profit and loss for a period represents
the movement in cumulative expense recognised
as at the beginning and end of that period and is
recognised in employee benefits expense.

Service and non-market performance conditions
are not taken into account when determining the
grant date fair value of awards, but the likelihood
of the conditions being met is assessed as part
of the Company''s best estimate of the number of
equity instruments that will ultimately vest. Market
performance conditions are reflected within the
grant date fair value. Any other conditions attached
to an award, but without an associated service
requirement, are considered to be non-vesting
conditions. Non-vesting conditions are reflected in
the fair value of an award and lead to an immediate
expensing of an award unless there are also service
and/or performance conditions.

No expense is recognised for awards that do not
ultimately vest because non-market performance
and/or service conditions have not been met. Where
awards include a market or non-vesting condition,
the transactions are treated as vested irrespective
of whether the market or non-vesting condition is
satisfied, provided that all other performance and/or
service conditions are satisfied.

When the terms of an equity-settled award are
modified, the minimum expense recognised is
the grant date fair value of the unmodified award,
provided the original vesting terms of the award are
met. An additional expense, measured as at the date
of modification, is recognised for any modification
that increases the total fair value of the share-based
payment transaction, or is otherwise beneficial to the
employee. Where an award is cancelled by the entity
or by the counterparty, any remaining element of
the fair value of the award is expensed immediately
through profit or loss.

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

XXII. Use of judgements and estimates

In preparing the Financial Statements, management
has made judgements and estimates that affect the
application of the Company''s accounting policies and
the reported amounts of assets, liabilities, income
and expenses. Actual results may differ from these
estimates.

Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to estimates are
recognised prospectively.

Information about judgements made in applying
accounting policies that have the most significant
effects on the amounts recognised in the Financial
Statements are given at note no. 32.

XXIII. New and amended standards

The Company applied for the first-time certain
standards and amendments, which are effective for
annual periods beginning on or after 1 April 2024.
The Company has not early adopted any standard,
interpretation or amendment that has been issued
but is not yet effective.

(i) Ind AS 117 Insurance Contracts

The Ministry of Corporate Affairs (MCA) notified
the Ind AS 117, Insurance Contracts, vide
notification dated 12 August 2024, under the
Companies (Indian Accounting Standards)
Amendment Rules, 2024, which is effective from
annual reporting periods beginning on or after 1
April 2024.

Ind AS 117 Insurance Contracts is a
comprehensive new accounting standard for

insurance contracts covering recognition and
measurement, presentation and disclosure. Ind
AS 117 replaces Ind AS 104 Insurance Contracts.
Ind AS 117 applies to all types of insurance
contracts, regardless of the type of entities that
issue them as wellas to certain guarantees
and financialinstruments with discretionary
participation features; a few scope exceptions
will apply. Ind AS 117 is based on a general
model, supplemented by:

• A specific adaptation for contracts with
direct participation features (the variable
fee approach)

• A simplified approach (the premium
allocation approach) mainly for short-
duration contracts

The application of Ind AS 117 does not have
materialimpact on the Company''s separate
financial statements as the Company has not
entered any contracts in the nature of insurance
contracts covered under Ind AS 117.

(ii) Amendments to Ind AS 116 Leases - Lease
Liability in a Sale and Leaseback

The MCA notified the Companies (Indian
Accounting Standards) Second Amendment
Rules, 2024, which amend Ind AS 116, Leases,
with respect to Lease Liability in a Sale and
Leaseback.

The amendment specifies the requirements that
a seller-lessee uses in measuring the lease liability
arising in a sale and leaseback transaction, to
ensure the seller-lessee does not recognise any
amount of the gain or loss that relates to the
right of use it retains.

The amendment is effective for annual reporting
periods beginning on or after 1 April 2024 and
must be applied retrospectively to sale and
leaseback transactions entered into after the
date of initial application of Ind AS 116.

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

a. Terms and rights attached to equity shares

The Company has only one class of equity shares having par value of Rs.10 per share. Each holder of equity shares
is entitled to one vote per share. The holders of equity shares are entitled to receive dividends as declared from
time to time.

In the event of liquidation of the Company, all preferential amounts, if any, shall be discharged by the Company.
The remaining assets of the Company shall be distributed to the holders of equity shares in proportion to the
number of shares held to the total equity shares outstanding as on that date.

One of the shareholder of the Company viz. OIH Mauritius Limited (formerly known as Indivision India Partners)
has the following additional rights as per the Share Subscription Agreement and Shareholders Agreement namely:-

a. Participate in any contract which involves an amount in excess of Rs.100.00 Lakhs which is outside the
ordinary course of business;

b. Commencement or settlement of litigation where the amount involved is above Rs.100.00 Lakhs in a single
claim in any particular financial year;

c. Vote in meetings on decisions where decision regarding divestment of or sale of assets, investments, lease,
license or exchange or pledge in any other way proposing to dispose off any assets or undertaking of the
Company except for those transactions which are in the ordinary course of business and those which have
specifically been contemplated under the Transaction documents;

d. Participate in decision regarding commencement of business/unit/division outside India;

e. Participate in decisions regarding revision in the salaries/compensation
paid to the directors of the Company, including the Promoters;

f. Participate in the appointment or removal of the Chief Executive Officer, the Chief Financial Officer, and the
Chief Operating Officer of the Company; and

g. Participate in decision regarding Initial Public Offering (IPO) by the Company and appointment of merchant
bankers for an IPO.

b. Terms of Exit of OIH Mauritius Limited (formerly known as Indivision India Partners)(''Investor'')

Under the Shareholder''s Agreement dated December 04, 2007, and the Share Subscription Agreement of even
date, OIH Mauritius Limited (formerly known as Indivision India Partners) (''Investor'') held 17,97,600 equity shares
of Rs. 10 each in Company. The Investor had the right to exit during a six-month Exit Period (post-IPO Period,
extended to December 31,2024, per the Amendment Cum Waiver Agreement dated March 08, 2024) by selling its
shares to a mutually agreed third party, pursuing an Offer for Sale (OFS), or selling to Individual Promoters, Taipan
Associates, or IGS Holdings at Fair Market Value if no third-party buyer was found. However, during the current
year, the Investor has exercised its rights and successfully sold its entire holding in the initial public offer of the
Company during the year ended March 31,2025.

c. During the year ended March 31,2025, the Company completed its Initial Public Offer ("IPO") of 66,72,169 equity
shares (including 24,539 shares to employees) of face value of Rs. 10 per share at an issue price of Rs. 900 per
share (Rs. 815 for employees), comprising a fresh issue of 22,24,539 shares and an offer for sale of 44,47,630
shares. Following the IPO, the paid-up equity share capital increased from Rs. 1,441.59 Lakhs to Rs. 1,664.04
Lakhs. Refer note 46 for more details.

Notes:

1. Cash credit and working capital facilities from banks are secured by:

(a) First pari-passu charge by way of hypothecation of entire current assets including book debts and inventory
of the Company, both present and future of the Company.

(b) These facilities, are further secured by first pari-passu charge over the entire movable fixed assets (except ⁴
vehicles charged exclusively to the financer), both present and future, of the Company.

(c) These facilities from all banks are secured by way of an equitable mortgage on immovable properties situated
at: (i) Plot No. B-30, Sector-57, Noida, Uttar Pradesh (owned by the Company); (ii) Plot No. B-33, Sector-57,
Noida, Uttar Pradesh (owned by company); (iii) Plot No. D-1/1, SIPCOT, Industrial area, Sriperumbudur,
Chennai, Tamil Nadu, (owned by the Company); (iv) Khasra no.-276-A, Village Kisanpur, Pargana Rudrapur,
Tehsil Kichha, Jila Udham Singh Nagar, Uttarakhand (owned by the Company); (v) Plot no.14 & 14A, Sector-2,
Pant Nagar, Udham Singh Nagar, Uttarakhand(owned by the Company) and (vi) Plot no F 19, SIPCOT Industrial
Park, Sriperumpudur, Kanchipuram (TN) (owned by the Company).

Further, ICICI Bank, Bank of Baroda, IndusInd Bank, and HDFC Bank hold charges on the following immovable
properties secured by way of equitable mortgage: (vii) Plot No. 28A, Udyog Vihar, Greater Noida, Uttar
Pradesh, being immovable properties (owned by M/s Intertec (Partnership Firm)) and (viii) Plot No.29, Udyog
Vihar, Greater Noida, Uttar Pradesh(owned by the Company).

However, subsequent to year end March 31, 2025, the charges on these properties have been removed.

(d) These facilities are secured by way of interim charge by way of pledge/ lien in favour of Lead Bank (acting for
the benefit of the Consortium Banks), on fixed deposits of Rs. 2101.92 Lakhs along with all of its right, title,
interest (including accrued interest), benefits, claims and demands whatsoever to or in respect of the said
fixed deposits.

(e) Further, (a) these facilities from all banks, except IDFC First Bank are secured by personal guarantee of two
directors of the Company (namely Mr. Arvind Nanda and Mr. Gautam Suri) and (b) these facilities from all
banks, except State Bank of India and IDFC First Bank are secured by corporate guarantee of M/s Intertec
(Partnership Firm).

(f) In respect of these facilities, quarterly returns or statements of current assets filed by the Company with
banks are in agreement with the books of accounts.

(g) The cash credit facilities are repayable on demand and carry interest @ 8.98% p.a to 11.35% p.a. (March 31,
2024: 8.00% p.a. to 11.15% p.a.).

(h) The borrowings obtained by the Company from banks and financial institutions have been applied for the
purposes for which such loans were taken.

(i) Refer note 40 for undrawn borrowings facilities limits (fund and non fund based) at the end of the reporting
years.

29 The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment
benefits received Presidential assent in September, 2020. The Code has been published in the Gazette of India.
Certain sections of the code came into effect on May 23, 2023. However, the final rules/interpretation have not yet
been issued. The Company will assess the impact of the Code when final rules/interpretation it comes into effect and
will record any related impact in the year when the Code becomes effective.

] 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. 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.

Other disclosures relating to the Company''s exposure to risks and uncertainties includes:

• Capital management (refer note 41)

• Financial risk management objectives and policies (refer note 40)

• Sensitivity analyses disclosures (refer notes 33 and 40)

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 Financial Statements:

Determining the lease term of contracts with renewal and termination options - Company as lessee

The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an
option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the
lease, if it is reasonably certain not to be exercised.

The Company has several lease contracts that include extension and termination options. The Company applies judgement
in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it
considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the
commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that
is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate (e.g., construction
of significant leasehold improvements or significant customisation to the leased asset).

The Company included the renewal period as part of the lease term for leases with related party, since there exist economic
incentive for the Company to continue using the leased premises and it does not foresee non renewal of the lease term for
future periods. Furthermore, the periods covered by termination options are included as part of the lease term only when
they are reasonably certain not to be exercised.

Refer to note 40 for information on potential future rental payments.

Property lease classification - Company as lessor

The Company has entered into leases on its investment property. The Company has retains substantially all the risks and
rewards incidental to ownership of these properties and accounts for the contracts as operating leases.

Revenue from contracts with customers

The Company applied the following judgements that significantly affect the determination of the amount and timing of
revenue from contracts with customers:

Uncertainty on the Estimation of the Total Construction Revenue and Total Construction Cost:

The Company recognises revenue from the construction contracts over the period of contract as per the input method
of IND AS 115 "Revenue from contracts with the customers". The contract revenue is determined based on proportion of
contract cost incurred to date compared to estimated total contract cost which involves significant judgement, identification
of contractual obligations, and the Company''s right to receive payments for performance completed till date, risk on
collectability due to liquidation damages and other penalties imposed by the customers, change in scope and consequential
revised contact price and recognition of the liability for loss making contracts/ onerous obligations etc. The Company has
efficient, coordinated system for calculation and forecasting its revenue and expense reporting. However actual project
outcome may deviate positively or negatively from the Company''s calculation and forecasting which could impact the
revenue recognition up to the stage of project completion and is recognised prospectively in the Financial Statements.

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 Financial
Statements were prepared. Existing circumstances and assumptions about future developments, however, may change due
to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the
assumptions when they occur.

Useful Lives of Property, Plant and Equipment

The Company uses its technical expertise along with historical and industry trends for determining the economic life of an
asset/component of an asset. The useful lives are reviewed by the management periodically and revised, if appropriate. In
case of a revision, the unamortised depreciable amount is charged over the remaining useful life of the assets.

Fair value of Investment properties

The Company disclose fair value of investment properties. The Company engaged an accredited independent valuer to
assess fair value for reporting year at March 31,2024 and March 31,2025. The valuation techniques and key inputs used to
determine fair value of the assets are provided in note 4.

Approaches used in Valuation Methodology for fair valuation of property, plant and equipment, right to use
assets and investment properties:

Market Approach

Under this method the recent sales and listings of comparable assets are gathered. Adjustments are then applied to
these observations for differences in location, time of sale, and physical characteristics between the subject assets and the
comparable assets, to estimate a fair market value for the subject assets.

The comparative analysis performed in this approach focuses on similarities and differences among assets and transactions
that affect value including differences in the assets appraised the motivations of buyers and sellers, market conditions at
the time of sale, size, location, physical features and economic characteristics. Elements of comparison are tested against
market evidence to determine which elements are sensitive to change and how they affect value.

Cost Approach

Under replacement cost method, this is normally the cost of replacing the property with a modern equivalent at the relevant
valuation date. An exception is where an equivalent property would need to be a replica of the subject property in order to
provide a participant with the same utility, in which case the replacement cost would be that of reproducing or replicating
the subject building rather than replacing it with a modern equivalent. The replacement cost reflects all incidental costs,
as appropriate, such as the value of the land, infrastructure, design fees, finance costs and developer profit that would be
incurred by a participant in creating an equivalent asset.

Provision for expected credit losses of trade receivables and contract assets

The Company makes provision of expected credit losses on trade receivables using a provision matrix. The provision
matrix is based on its historical observed default rates, adjusted for forward looking estimates. At every reporting date, the
historical observed default rates are updated and the Company makes appropriate provision wherever outstanding is for
longer period and involves higher risk.

The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is
a significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions.
The Company''s historical credit loss experience and forecast of economic conditions may also not be representative of
customer''s actual default in the future. The information about the ECLs on the Company''s trade receivables and contract
assets is disclosed in Note 40.

Taxes

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.

Further details on taxes are disclosed in Note 30.

Defined benefit plans (Gratuity benefits)

The cost of the defined benefit gratuity plan and other post-employment benefits and the present value of the gratuity
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
and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation
is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate, the management
considers the interest rates of government bonds where remaining maturity of such bond correspond to expected term
of defined benefit obligation. The underlying bonds are further reviewed for quality. Those having excessive credit spreads
are excluded from the analysis of bonds on which the discount rate is based, on the basis that they do not represent high
quality corporate bonds.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in
response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation
rates for the respective countries.

Further details about gratuity obligations are given in Note 33.

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 DCF model. The inputs
to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement
is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and
volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments. Refer
note 38 and 39 for further disclosures.

Leases - Estimating the incremental borrowing rate

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

b) Defined contribution plans

The Company also has certain defined contribution plans. Contributions are made to provident fund, employee
pension scheme and employee''s state insurance scheme for employees as per regulations. The contributions are
made to registered funds administered by the government. The obligation of the Company is limited to the amount
contributed and it has no further contractual or any constructive obligation. The expense recognised during the year
towards defined contribution plan is Rs 870.71 Lakhs (March 31,2024: Rs 736.99 Lakhs).

] LEASES

Company as a Lessee

The Company has lease contracts for various items of offices, residences, lands and equipment/ machinery used in its
operations. Lease of plant and machinery have lease tenure of 8 years, buildings have lease terms of 10 years except one
lease which is matured on June 20, 2024 (refer note 6), while land have lease term of 90/99 years. The Company''s obligations
under its leases are secured by the lessor''s title to the leased assets. There are several lease contracts that include extension
and termination options, which are further discussed below.

The Company also has certain leases of buildings with lease terms of 12 months or less or with low value and certain
leases of equipment/ machinery with low value. The Company applies the ''short-term lease'' and ''lease of low-value assets''
recognition exemptions for these leases.

The Company had total cash outflows for leases of Rs. 71.39 Lakhs (including interest of Rs. 26.87 Lakhs) {March 31,2024:
Rs. 113.41 Lakhs (including interest payment of Rs. 56.96 Lakhs)}. The Company also had non-cash disposal/modification to
right-of-use assets of Rs. (3.95) Lakhs (March 31,2024 Rs. (237.04) Lakhs) and lease liabilities of Rs. (5.99) Lakhs (March 31,
2024 Rs. (259.72) Lakhs).

The Company has several lease contracts that include extension and termination options. These options are negotiated
by management to provide flexibility in managing the leased-asset portfolio and align with the Company''s business needs.
Management exercises significant judgement in determining whether these extension and termination options are
reasonably certain to be exercised.

Company as a Lessor

Commercial property given on operating lease:

The Company has entered into operating lease agreement for leasing a part of the factory at Greater Noida (Uttar Pradesh)
(sub-lease agreement), set up on leasehold land as an investment property. The lease term for factory at Greater Noida
was for 9 years, with an escalation clause of 15% after completion of every 3 years along with non-cancellable lease period
of first 3 years. The lease term for the period of 9 years completed on April 30, 2021 and the Company extended the lease
period for one year w.e.f May 01, 2021 to April 30, 2022, without rent escalation. The lease term for the period of 1 year
completed on April 30, 2022 and the Company renew the lease period for three year w.e.f. May 01, 2022 to April 30, 2025
with a cancellable clause which can be exercised by either party. The rental income in respect of such leases recognised in
the statement of profit and loss is 136.88 Lakhs (March 31,2024: Rs. 136.88 Lakhs)."

Equipments given on operating lease:

The Company has entered into operating lease agreement for leasing its equipment for a short term period. The rental
income in respect of such leases recognised in the statement of profit and loss is Rs. 26.29 Lakhs (March 31,2024: Rs. 30.10
Lakhs).

c) Total facilities/limits (fund and non fund based) from all banks (excluding State Bank of India and IDFC Bank) are secured
by way of equitable mortgage on immovable properties situated at: (a) Plot No. B-33, Sector- 57, Noida, Uttar Pradesh
(Owned by M/s Intertec(Partnership firm) and (b) Plot No. 28A, Udyog Vihar, Greater Noida, Uttar Pradesh, be