2.16Provisions and contingencies

Provisions:

Provisions are recognised when the Company has
a present obligation (legal or constructive) as a
result of a past event, it is probable that an outflow
of resources embodying economic benefits will
be required to settle the obligation and a reliable
estimate can be made of the amount of the
obligation. Provisions are measured at the best
estimate of the expenditure required to settle the
present obligation at the Balance Sheet date.

If the effect of the time value of money is material,
provisions are discounted to reflect its present value
using a current pre-tax rate that reflects the current
market assessments of the time value of money and
the risks specific to the obligation. When discounting
is used, the increase in the provision due to the
passage of time is recognised as a finance cost.

Where the Company expects some or all of a
provision to be reimbursed, the reimbursement is
recognised as a separate asset but only when the
reimbursement is virtually certain. The expense
relating to any provision is presented in the income
statement net of any reimbursement.

Contingencies:

Contingent liabilities

A contingent liability is:

• a possible obligation arising from past events,
the existence of which will be confirmed only
by the occurrence or non-occurrence of one or
more uncertain future events not wholly within
the control of the Company, or

• a present obligation that arises from past events
but is not recognised because:

- it is not probable that an outflow of
resources embodying economic benefits
will be required to settle the obligation; or

- the amount of the obligation cannot be
measured with sufficient reliability.

Contingent liabilities are not recognized but
disclosed unless the contingency is remote.

Contingent assets

A contingent asset is a possible asset that arises from
past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one or
more uncertain future events not wholly within the
control of the Company.

Contingent assets are not recognized but are
disclosed when the inflow of economic benefits is
probable. When inflow is virtually certain, an asset is
recognized.

2.17 Segment Reporting

Operating segments are defined as components
of an enterprise for which discrete financial
information is available that is evaluated regularly by
the chief operating decision maker, in deciding how
to allocate resources and assessing performance.
Operating Segments are reported in a manner
consistent with the internal reporting provided to
the chief operating decision maker.

The Company has identified two operating segments
in which it is primarily engaged i.e. the business of
providing construction related activities where risks
and returns in all the cases are similar and income
from investment properties (lease rentals). They
have been considered as the reportable segments.

Others segment comprises real estate trading
business. None of the business(es) reported as
part of others segment meet aggregation criteria or
any of the quantitative thresholds for determining
reportable segments.

The Company's Chief Operating Decision Maker
(CODM) is the Managing Director who evaluates the
Company's performance and allocates resources
based on analysis of various performance indicators.

Geographical information:

The company operates only within India having
similar: (i) economic and political conditions,

(ii) activities at all project locations and (iii) risk
associated with the operations. As such the risks and
returns at all project locations are similar. Hence, the
geographical information considered for disclosure
is not applicable to the Company.

2.18Related party

A related party is a person or entity that is related to
the reporting entity and it includes:

(a) A person or a close member of that person's

family if that person:

(i) has control or joint control over the
reporting entity;

(ii) has significant influence over the reporting
entity; or

(iii) is a member of the key management
personnel of the reporting entity or of a
parent of the reporting entity.

(b) An entity is related to the reporting entity if any

of the following conditions apply:

(i) The entity and the reporting entity are

members of the same Group.

(ii) One entity is an associate or joint venture
of the other entity.

(iii) Both entities are joint ventures of the same
third party.

(iv) One entity is a joint venture of a third entity
and the other entity is an associate of the
third entity.

(v) The entity has a post-employment benefit
plan for the benefit of employees of either
the reporting entity or an entity related to
the reporting entity.

(vi) The entity is controlled or jointly controlled
by a person identified in (a).

(vii) A person identified in (a) (i) has significant
influence over the entity or is a member

of the key management personnel of the
entity (or of a parent of the entity).

(viii) The entity, or any member of a Group of
which it is a part, provides key management
personnel services to the reporting entity
or to the parent of the reporting entity.

Close members of the family of a person are those
family members who may be expected to influence,
or be influenced by, that person in their dealings
with the entity including:

(a) that person's children, spouse or domestic
partner, brother, sister, father and mother;

(b) children of that person's spouse or domestic
partner; and

(c) dependents of that person or that person's
spouse or domestic partner.

Key management personnel are those persons
having authority and responsibility for planning,
directing and controlling the activities of the entity,
directly or indirectly, including any director (whether
executive or otherwise) of that entity.

Related party transactions and outstanding balances
disclosed in the standalone financial statements are
in accordance with the above definition as per Ind
AS 24.

2.19Cash and cash equivalents

Cash and cash equivalents in the Balance Sheet
comprise cash at banks & in hand and short term
deposits/investments with an original maturity of
three months or less from the date of acquisition,
which are subject to an insignificant risk of changes
in value. These exclude bank balances (including
deposits) held as margin money or security against
borrowings, guarantees etc. being not readily
available for use by the Company.

For the purpose of the Statement of cash flows, cash
and cash equivalents consist of cash and short term
deposits and exclude items which are not available
for general use as on the date of Balance Sheet, as
defined above, net of bank overdrafts which are
repayable on demand where they form an integral
part of an entity's cash management.

2.20Dividend to equity holders of the Company

The Company recognises a liability to make
dividend distributions to equity holders of the
Company 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.

2.21 Statement of Cash Flow

Statement of Cash Flows is prepared segregating the
cash flows into operating, investing and financing
activities. Cash flow from operating activities is
reported using indirect method as set out in Ind AS
7 'Statement of Cash Flows', adjusting the net profit
for the effects of:

i. changes during the period in inventories and
operating receivables and payables transactions
of a non-cash nature;

ii. non-cash items such as depreciation, provisions,
deferred taxes, unrealised foreign currency
gains and losses, and

iii. all other items for which the cash effects are
investing or financing cash flows.

2.22Earnings per share

The Basic Earnings per equity share ('EPS') is
computed by dividing the net profit or loss after
tax before other comprehensive income for the
year attributable to the equity shareholders of the
Company by weighted average number of equity
shares outstanding during the year.

Diluted earnings per equity share are computed by
dividing the net profit or loss before OCI attributable
to equity holders of the Company by the weighted
average number of equity shares considered for
deriving basic earnings per equity share and also
the weighted average number of equity shares
that could have been issued upon conversion
of all dilutive potential equity shares (including
options and warrants). The dilutive potential equity
shares are adjusted for the proceeds receivable
had the equity shares been actually issued at
fair value. Dilutive potential equity shares are

deemed converted as of the beginning of the
period unless issued at a later date. Anti-dilutive
effects are ignored.

2.23Exceptional Items

Exceptional items represent the nature of
transactions which are not in recurring nature
during the ordinary course of business but lead to
increase/decrease in profit/loss for the year.

2.24Events after Reporting date

Where events occurring after the Balance Sheet
date provide evidence of conditions that existed at
the end of the reporting period, the impact of such

events is adjusted within the standalone financial
statements. Where the events are indicative of
conditions that arose after the reporting period, the
amounts are not adjusted, but are disclosed if those
non-adjusting events are material.

2.25Amendments not yet effective

Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time. During the year
ended March 31,2025, MCA has not notified any new
standards or amendments to the existing standards
applicable to the Company.

The expenditure (construction cost) incurred has been shown above under the main head "Investment Property" and
sub-head "Right of Use Assets (Building)". The Company has a right to Lease Right of Use Asset (Commercial Complex).
The primary lease period of Commercial complex is 30 years which can be extended for a further period of 10 years at the
option of the Company from the date of completion of the project. Thereafter, the Commercial Complex will be handed
over to RSRTC. The Company does not have any right to sell the building but only to sub-lease. The Company has no further
contractual obligations to purchase, construct or develop the said investment property.

There is a contractual obligation on the Company to maintain the commercial complex. The actual maintenance charges
will be recovered from the occupants of the commercial complex. Revenue from advertisement, outside the building shall
be shared between RSRTC & the Company in 50:50 ratio.

Fair value hierarchy and valuation technique

The fair value of investment property, being Building at Kota, has been determined by external, accredited independent
registered valuer having appropriate recognized professional qualification and recent experience in the location and category
of the property being valued. Fair value has been arrived at by using discounted cash flow method. The fair value measurement
has been categorised as Level 3.

(iv) Also refer note No. 45 of leases.

(ii) Terms / Rights attached to equity shares

The Company has only one class of equity share having a par value of '2/- per share. Each equity shareholder is entitled
for one vote per share.

The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors of the
Company is subject to the approval of the Members/Shareholders of the Company in the ensuing Annual General Meeting.

As per records of the Company, including its register of Shareholders/Members and other declarations received from
shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts. This distribution will be in proportion to the number of equity
shares held by the shareholder.

As at March 31, 2025 - Security details

(i Term Loans outstanding from Axis Bank of '445.98 Lakhs against machineries are secured by way of hypothecation of
specified Machinery/Equipment. The term loans bear interest rate of 9.00% to 9.35% p.a. The same are repayable in 35 to
48 monthly installments commenced from Oct 2023 to Dec 2024.

(ii) Vehicle Loan outstanding from Bank of Maharashtra of '30.50 Lakhs is secured by hypothecation of specific vehicles
acquired out of proceeds of the loan. The vehicle loan bears interest rate of 9.3% p.a. The same is repayable in 36 monthly
installments commenced from 10.09.2024.

As at March 31, 2024 - Security details

(i) Term Loan outstanding from Axis Bank of '95.33 Lakhs against Machinery is secured by way of hypothecation of specified
Machinery/ Equipment. The term loan bear interest rate 9% p.a. The same is repayable in 48 monthly installments
commenced from 20.10.2023.

As at March 31, 2025 - Security details

Working Capital loans from various banks under multiple banking arrangement are secured by way of

- First pari passu charges on all existing and future current assets of the company.

(i) Personal Guarantees of director Mr. Shobhit Uppal are in all banks.

(ii) Personal Guarantees of director Mr. Vikas Ahluwalia are in all banks except Bank of Maharashtra.

(iii) Personal Guarantees of director Mr. Bikramjit Ahluwalia are in some of the banks.

- The working capital loan from Banks bear floating interest rate ranging from MCLR plus 0.00% to 2.25% except Yes Bank T
Bills rate plus 2.32%.

As at March 31, 2024 - Security details

Working Capital loans from various banks under multiple banking arrangement are secured by way of

- First pari passu charges on all existing and future current assets of the company.

(i) Personal Guarantees of directors Mr. Bikramjit Ahluwalia & Mr. Shobhit Uppal are in all banks.

(ii) Personal Guarantees of director Mr. Vikas Ahluwalia are in some of the banks.

- The working capital loan from Banks bear floating interest rate ranging from all banks except Yes Bank MCLR plus 0.00% to
2.75% and Yes Bank T Bills rate plus 1.87%.

The aforementioned amounts under disputes are as per the demands from various authorities for the respective periods and
has not been adjusted to include further interest and penalty leviable, if any, at the time of final outcome of the appeals. The
Company does not expect any reimbursement in respect of the above contingent liabilities and it is not practicable to estimate
the timings of the cash outflows, if any. In respect of the matters above resolution of the arbitration/ appellate proceedings are
pending and it is not probable that an outflow of resources will be required to settle the above obligations/claims.

Based on discussions with the advocates & consultants, the Company believes that there are fair chance of decisions in
its favour in respect of all items listed in (a)(i) to (a)(viii) above. The replies/appeals have been filed before appropriate
authorities/Courts. Disposal is awaited. The Company does not expect any outflow of economic resources in respect of the
above and therefore no provision is made in respect thereof.

(ii) The Company has filed claims of '67,586.57 Lakhs (Previous Year- '67,818.27 Lakhs) in several legal disputes related
to construction contracts & in certain cases customers have lodged counter claims for '60,978.40 Lakhs (Previous Year-
'60,410.40 Lakhs) against the Company and same are pending before legal authorities. The Management does not expect
any material adverse effect on its financial position.

Methods and assumptions used to estimate the fair values are consistent with those used for the year ended
31st March, 2024. The following methods / assumptions were used to estimate the fair values:

1. The carrying value of Cash and cash equivalents, trade receivables, trade payables, short-term borrowings, other current
financial assets and financial liabilities approximate their fair value mainly due to the short-term maturities of these
instruments.

2. Borrowings have fair values that approximate to their carrying amounts as it is based on the net present value of the
anticipated future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.

3. Security deposits received against leases and lease liabilities are fair valued at initial recognition. Valuation technique used
and key inputs thereto for these Level 2 financial liabilities are determined using Discounted Cash Flow method using
appropriate discounting rates. After initial recognition, they are carried at amortised cost.

4. There has been no change in the valuation methodology for Level 3 inputs during the year. There were no transfers
between Level 1 and Level 2 during the year and no transfer into and out of Level 3 fair value measurements.

II. Financial Risk Management Objectives and Policies

The Company's activities expose it to a variety of financial risks namely market risk, credit risk and liquidity risk. The Company's
primary risk management focus is to minimize potential adverse effects of market risk on its financial performance. The
Company's risk management assessment & policies and processes are established to identify and analyze the risks faced
by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same.

Risk assessment & management policies and processes are reviewed regularly to reflect changes in market conditions and
the Company's activities. The Board of Directors and the Audit Committee is responsible for overseeing the Company's risk
assessment & management policies and processes.

The Company's financial risk management policy is set by the management. Market risk is the risk of loss of future earnings,
fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial
instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and
other market changes that affect market risk sensitive instruments. The Company manages market risk which evaluates
and exercises independent control over the entire process of market risk management. The management recommends risk
management objectives and policies, which are approved by Senior Management and the Audit Committee.

a) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Company's receivables from customers. Credit risk arises from cash
held with banks as well as credit exposure to clients, including outstanding accounts receivable. The maximum exposure
to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is
to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account
their financial position, past experience and other factors. The Company establishes an allowance for impairment that
represents its expected credit losses in respect of trade and other receivables. The management uses a simplified approach
for the purpose of computation of expected credit loss for trade receivables.

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The
demographics of the customer, including the default risk of the industry and country, in which the customer operates,
also has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits,
continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal
course of business and through regular monitoring of conduct of accounts. The Company also holds security deposits for
outstanding trade receivables which mitigate the credit risk to some extent.

An impairment analysis is performed at each reporting date on an individual basis for major customers. The management
believes that no further provision is necessary in respect of trade receivables based on historical trends of these customers.

The Company had one Customer (Central Govt. and State Govt. both) that owned the company more than '84,345.68 Lakhs
(March 31, 2024 : '67,138.11 Lakhs) and accounted for approximately 69% (March 31, 2024 : 60%) of all the receivables
outstanding.

The credit risk on liquid funds such as banks in current and deposit accounts is limited because the counterparties are
banks with high credit-ratings.

b) Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The
Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its
liabilities when due.

Ultimate responsibility for liquidity risk management rests with the board of directors, which has established an
appropriate liquidity risk management framework for the management of the Company's short-term, medium-term and
long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate
reserves, banking facilities and committed borrowing facilities, by continuously monitoring forecast and actual cash flows,
and by matching the maturity profiles of financial assets and liabilities and by monitoring rolling forecasts of its liquidity
requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its
undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants
(where applicable) on any of its borrowing facilities.

The table below provides details regarding the contractual maturities of financial liabilities including estimated interest
payments based on contractual undiscounted payments.

*The table has been drawn up based on the undiscounted contractual maturities of the financial liabilities including
interest that will be paid on those liabilities upto the maturity of the instruments, ignoring the call and refinancing options
available with the Company, if any. The amounts included above for variable interest rate instruments for non-derivative
liabilities is subject to change if changes in variable interest rates differ to those estimates of interest rates determined at
the end of the reporting period.

The above excludes any financial liabilities arising out of financial guarantee contract.

In respect of financial guarantees provided by the company to banks and financial institutions, the maximum exposure
which the company is exposed to is the maximum amount which the company would have to pay if the guarantee is called
upon. Based on the expectation at the end of the reporting period, the company considers that is more likely than not that
such an amount will not be payable under the guarantees provided.

Financing facilities :

The Company has access to financing facilities as described in below Note. The Company expects to meet its obligations
from operating cash flows and proceeds of maturing financial assets.

c) Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in
market rates and prices (such as interest rates, foreign currency exchange rates and commodity prices) or in the price of
market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable
to all market risk-sensitive financial instruments and all short term and long-term debt. Market risk comprises three
types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial
instruments affected by market risk include loans and borrowings, deposits, trade payables, trade receivables and other
financial instruments. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate
risk and the market value of its investments. Thus, the Company's exposure to market risk is a function of investing and
borrowing activities.

i) Foreign exchange risk

Foreign exchange risk is the risk that the fair value of future cash flows of financial instrument will fluctuate because of
changes in foreign exchange rate. The Company has no material exposure to foreign exchange risk as it does not generally
have any financial assets or liabilities which are denominated in a currency other than INR.

ii) 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 obligations with floating interest rates.

The Company's investments in term deposits (i.e., margin money) with banks are for short durations, and therefore do not
expose the Company to significant interest rates risk.

b. Interest rate sensitivity :

The sensitivity analysis below have been determined based on exposure to interest rates for borrowings at the end of the
reporting period and the stipulated change taking place at the beginning of the financial year and held constant throughout
the reporting period in case of borrowings that have floating rates.

If the interest rates had been 50 basis points higher or lower and all the other variables were held constant, the effect on
interest expense for the respective financial years and consequent effect on Company's profit in that financial year would
have been as below:

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market
environment.

III Capital Risk Management Policies and Objectives

The Company's objective while managing capital is to safeguard its ability to continue as a going concern (so that it is
enabled to provide returns and create value for its shareholders, and benefits for other stakeholders), support business
stability and growth, ensure adherence to the covenants and restrictions imposed by lenders and / or relevant laws and
regulations, and maintain an optimal and efficient capital structure so as to reduce the cost of capital and to maximise
shareholders value. In order to maintain or adjust the capital structure, the Company may adjust the dividend payment to
shareholders, return capital to shareholders, issue new shares, obtain new borrowings or sell assets to reduce debt, etc.

The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions or its
business requirements and the requirements of the financial covenants.

C. Basis of identifying operating segments, reportable segments, segment profit and definition of each reportable
segment and segment composition:

(i) Basis of identifying operating segments:

Operating segments are identified as those components of the Company (a) that engage in business activities to
earn revenues and incur expenses (including transactions with any of the Company's other components) (b) whose
operating results are regularly reviewed by the Company's Chief Executive Officer to make decisions about resource
allocation and performance assessment and (c) for which discrete financial information is available.

The accounting policies consistently used in the preparation of the financial statements are also applied to record
revenue and expenditure in individual segments. Assets, liabilities, revenues and direct expenses in relation to segments
are categorised based on items that are individually identifiable to that segment, while other items, wherever allocable,
are apportioned to the segments on an appropriate basis. Certain items are not specifically allocable to individual
segments as the underlying services are used interchangeably. The Company therefore believes that it is not practical to
provide segment disclosures relating to such items, and accordingly such items are separately disclosed as 'unallocated'.

(ii) Reportable segments:

An operating segment is classified as reportable segment if reported revenue (including inter-segment revenue) or
absolute amount of result or assets exceed 10% or more of the combined total of all the operating segments.

(ii) Segment profit:

Performance of a segment is measured based on segment profit (before interest and tax), as included in the internal
management reports that are reviewed by the Company's Chief Executive Officer.

(iii) Segment composition:

(a) Revenue from construction contract

(b) Lease Rental from Investment Property (Bus Terminal & Depot and Commercial Complex) at Kota

(c) Other comprises Inventory Property

D. Revenue from one customer (Central Govt. and State Govt. both) in Construction Contract segment amounting to
'2,26,046.25 Lakhs (March 31, 2024 : '2,27,533.57 Lakhs) and accounted for approximately 56% (March 31, 2024 : 61%)
contributed to more than 10% of the entity's total revenue.

52. As per section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least
2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR)
activities.

53. Information on details of loans, guarantees and investments under section 186 of the Companies Act, 2013:

(i) Detail of investments made are given in note no. 7.

(ii) There are no loans given by the Company in accordance with Section 186 of the Act read with rules issued thereunder.

(iii) There are no guarantees issued by the Company to any parties.

54. The company has not been declared as wilful defaulter by any bank or financial institution or government or any government
authority.

55. Additional regulatory information required by Schedule III of Companies Act, 2013

(i) Details of Benami property: No proceedings have been initiated or are pending against the company for holding any
Benami property under the Benami Transactions (Prohibition) Act, 1988 and the rules made thereunder.

(ii) Utilisation of borrowed funds and share premium: The Company has 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:

(a) 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

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

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:

(a) 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

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

(iii) Compliance with approved scheme(s) of arrangements: The Company has not entered into any scheme of
arrangement which has an accounting impact on current or previous financial year.

56. Use of estimates and judgements :

The preparation of financial statements in conformity with the recognition and measurement principles of Ind AS requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent liabilities at the date of the financial statements and the results of operations during the reporting period
end. Although these estimates are based upon management's best knowledge of current events and actions, historical
experience and other factors, including expectations of future events that are believed to be reasonable, actual results
could differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions
to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period,
or in the period of the revision and future periods if the revision affects both current and future periods.

(A) Significant Judgements in applying accounting policies

The judgements, apart from those involving estimations (see note below), that the Company has made in the process of
applying its accounting policies and that have a significant effect on the amounts recognised in these financial statements
pertain to :

(i) Kota Project : Investment Property :

The Company has developed (Bus Depot and Commercial Complex at Kota) for Rajasthan State Road Transport
Corporation (RSRTC) under an "Agreement to Develop" / License agreement at a cost of '13,263.85 Lakhs spent
till 31.03.2025 including discounted value of license fees of '2,992.77 Lakhs recognised on application of Ind AS
116 effective from 01.04.2019 (upto 31.03.2024 '13,010.51 Lakhs) on the land belonging to RSRTC under license
arrangement. The expenditure (construction cost) incurred has been shown in Balance Sheet under the main head
"Investment Property" and sub-head "Right of Use Assets (Building)". The Company has a right to Lease Right of Use
Asset (Commercial Complex). The primary lease period of Commercial complex is 30 years which can be extended for
a further period of 10 years at the option of the Company from the date of completion of the project. Thereafter, the
Commercial Complex will be handed over to RSRTC.

Determination of applicability of Appendix A of Service Concession Arrangement ('SCA'), under Ind AS - 115
'Revenue from Contracts with Customers':

This Interpretation applies to public-to-private service concession arrangements if:

(a) the grantor controls or regulates what services the operator must provide with the infrastructure, to whom it must
provide them, and at what price; and

b) the grantor controls through ownership, beneficial entitlement or otherwise any significant residual interest in the
infrastructure at the end of the term of the arrangement.

In the given case, though RSRTC controls/ regulates what services the Company must provide with the infrastructure,
rental of commercial complex in the given case. However it does not regulate: to whom the Company must provide
them and at what price. Since the first condition is not met, the management has concluded that SCA does not apply
in this case.

Determination of applicability of Ind As 40 - Investment Property:

In view of the fact that the Company constructed the building at its own cost and in view of the substantial rights
entrusted with the Company, the substance of the legal agreements with RSRTC, in the judgement of the management,
is that the Company is the beneficial owner of the Building though legal title vests with RSRTC and the license fees
payable by the Company to RSRTC is in effect for use of land.

The cost of construction represents building held by the Company to earn rentals rather than for use in the production
or supply of goods or services or for administrative purposes; or for sale in the ordinary course of business. The
commercial complex is not intended for sale in ordinary course of business of the Company.

Accordingly, the management has concluded that Ind As 40 shall apply in its case and the cost of construction shall be
accounted for as investment property under Ind AS 40.

(ii) Leases :

Ind AS 116 requires lessees to determine the lease term as the non-cancellable period of a lease adjusted with any
option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an
assessment on the expected lease term on a lease-by-lease basis and thereby assesses whether it is reasonably certain
that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company
considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to
the termination of the lease and the importance of the underlying asset to Company's operations taking into account
the location of the underlying asset and the availability of suitable alternatives. The lease term in future periods is
reassessed to ensure that the lease term reflects the current economic circumstances. After considering current and
future economic conditions, the Company has concluded that no changes are required to lease period relating to the
existing lease contracts.

B. Key sources of estimation uncertainty

The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end
of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets
and liabilities within the next financial year :

(i) Impairment of trade receivables:

The impairment provisions for trade receivables are based on lifetime expected credit loss based on a provision
matrix. Lifetime expected credit losses are the expected credit losses that result from all possible default events over
the expected life of a financial instrument. The provision matrix takes into account historical credit loss experience
and is adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the
receivables that are due and the rates used in the provision matrix.

(ii) Fair value measurements of financial instruments:

In estimating the fair value of a financial asset or a financial liability, the Company uses market-observable data to the
extent it is available. Where active market quotes are not available, the management applies valuation techniques to
determine the fair value of financial instruments. This involves developing estimates, assumptions and judgements
consistent with how market participants would price the instrument.

(iii) Valuation of investment property :

Investment property is stated at cost. However, as per Ind AS 40 there is a requirement to disclose fair value as at the
balance sheet date. The Company engaged independent valuer to determine the fair value of its investment property
as at reporting date.

Right of Use Assets (Building):

The determination of the fair value of investment property, viz. right of use assets (Building) at Kota requires the
use of estimates such as future cash flows from the assets (such as lettings, future revenue streams and the overall
repair and condition of the property and property operating expenses etc.) and discount rates applicable to those
assets. As at March 31, 2025 and As at March 31, 2024, the property is fair valued based on valuations performed
by an independent valuer who holds a recognised and relevant professional qualification and has relevant valuation
experience.

(iv) Estimation of net realisable value for inventory property

Inventory property is stated at the lower of cost and net realisable value (NRV).

NRV for inventory property is assessed by reference to market conditions and prices existing at the reporting date and
is determined by the Company after taking suitable external advice and in the light of recent market transactions, as
well as the estimated cost to be incurred for completion of the construction.

(v) Actuarial Valuation:

The determination of Company's liability towards defined benefit obligation viz. gratuity and other long term employee
benefit obligation viz. long term compensated absences to employees is made through independent actuarial valuation
including determination of amounts to be recognised in the Statement of Profit and Loss and in other comprehensive
income. Such valuation depend upon assumptions determined after taking into account inflation, seniority, promotion
and other relevant factors such as supply and demand factors in the employment market. Information about such
valuation is provided in notes to the standalone financial statements.

(vi) Claims, Provisions and Contingent Liabilities:

The Company has ongoing litigations with various regulatory authorities and third parties. Where an outflow of funds
is believed to be probable and a reliable estimate of the outcome of the dispute can be made based on management's
assessment of specific circumstances of each dispute and relevant external advice, management provides for its best
estimate of the liability. Such accruals are by nature complex and can take number of years to resolve and can involve
estimation uncertainty. These estimates could change substantially over time as new facts emerge and each dispute
progresses. Information about such litigations is provided in notes to the standalone financial statements.

(vii) Useful lives of property, plant and equipment, investment property and intangible assets:

As described in the significant accounting policies, the Company determines and also reviews the estimated useful
lives of property, plant and equipment, investment property and intangible assets at the end of each reporting period.
Such lives are dependent upon an assessment of both the technical life of the assets and also their likely economic
life, based on various internal and external factors including relative efficiency and operating costs. Accordingly,
depreciable lives are reviewed annually using the best information available to the Management.

(viii) Retention money

The payment terms followed by the Company are generally followed by the most of the companies (customers as
well as contracts) in the construction contracts and are customary in the construction industry. The customer pays
advance before start of the project and retains a specified percentage of the contract value as retention money to
ensure successful completion of the construction activities. These are generally accepted industry practice. Moreover,
these contracts are generally based on competitive bidding and are awarded based on the lowest evaluated price. The
retention money is contractually due for payment by customer on completion of the project and/or after a specified
defect liability period which is generally 1-3 years and to fulfill the customer's satisfaction of conditions specified and
adequate protection to meet obligations in the contract. Similarly, customer also pays advances before start of the
execution of the project which reflects commitment from the customer and the same is being adjusted against running
bills. The retention money in a contract does not have any financing component as the same is for protecting/ensuring
the performance commitment . Therefore, the management believes that there is no time value of money involved.

(ix) Physical Verification of Inventory

Bulk inventory for the Company primarily comprises Steel, Bricks, Aggregate etc. which are primarily used in the
construction activity. Determination of physical quantity of bulk inventory is done based on volumetric measurement
and involves special considerations with respect to physical measurement which involves estimate/judgement.

(x) Physical Verification of Fixed Assets

Property, Plant and Equipments of the Company includes Shuttering and Scaffolding Material which are used in the
construction activities. Determination of physical quantity of Shuttering and Scaffolding Material is done based on
the physical count of the Shuttering and Scaffolding Material converted into weight by applying standard weight and
involves special considerations with respect to physical measurement which involves estimate/judgement.

57. The Exceptional items pertains to an Arbitration award / settlement / recovery from the customer and is net of GST.

58. During financial year 2023-2024, the Company has given donation of '500 Lakhs to a political party namely Bhartiya Janta
Party.

59. There are no significant subsequent events that would require adjustments or disclosures in the financial statements as on
the balance sheet date.

60. The figures for the previous year have been regrouped and / or reclassified wherever necessary to conform with the
current year presentation.

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

For AMOD AGRAWAL & ASSOCIATES BIKRAMJIT AHLUWALIA SHOBHIT UPPAL

ICAI Firm Registeration No. 005780N Chairman & Managing Director (Chief Executive Officer) Dy. Managing Director

Chartered Accountants DIN 00304947 DIN 00305264

AMOD AGRAWAL VIPIN KUMAR TIWARI SATBEER SINGH

Partner G.M. (Corporate) & Company Secretary Chief Financial Officer

Membership No. 084175 ACS. 10837 PAN : ARLPS6573L

Place: New Delhi
Date: 30-05-2025