2.7 Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result
of a past event, it is probable that the Company will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the
present obligation at the end of the reporting period, taking into account the risks and uncertainties
surrounding the obligation. When a provision is measured using the cash flows estimated to settle the
present obligation, its carrying amount is the present value of those cash flows.

2.8 Cash and cash equivalents

Cash and Cash Equivalents in the balance sheet and for the purpose of cash flow statement comprise
cash in hand and cash at bank including fixed deposit with original maturity period of three months and
short-term highly liquid investments with an original maturity of three months or less.

2.9 Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to
equity shareholders by the weighted average number of equity shares outstanding during the period.
The weighted average number of equity shares outstanding during the period and for all periods
presented is adjusted for events, such as bonus shares that have changed the number of equity shares
outstanding, without a corresponding change in resources.

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

2.A CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements requires management to make Judgements, estimates and
assumptions about the reported amounts of assets and liabilities, and income and expenses that are not
readily apparent from other sources. Such judgements, estimates and associated assumptions are
evaluated based on historical experience and various other factors, including estimation of the effects
of uncertain future events, which are believed to be reasonable under the circumstances. Actual results
may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognized 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.

The following are the critical judgements and estimations that have been made by the management in
the process of applying the Company's accounting policies and that have the most significant effect on
the amount recognized in the financial statements and/or key sources of estimation uncertainty that
may have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year.

a. Income tax: As stated in Note 39, tax expense is calculated using applicable tax rates and tax laws
that have been enacted or substantively enacted. In arriving at taxable profit and tax bases of assets
and liabilities the Company adjudges taxability of amounts in accordance with tax enactments,
case law and opinions of tax counsel, as relevant. Where differences arise on tax assessment, these
are booked in the period in which they are agreed or on final closure of assessment.

b. Recognition of deferred tax assets: Deferred tax assets are recognized for unused tax-loss carry
forward and unused tax credits to the extent that realization of the related tax benefit is probable.
The assessment of the probability with regard to the realization of the tax benefit involves assumptions
based on the history of the entity and budgeted data for the future

c. Useful lives of property, plant and equipment and, intangible assets: The Company reviews the
estimated useful lives of property, plant and equipment and intangible assets at the end of each
reporting period.

Notes on Financial Ratio : (Explanation for change in ratio more than 25%)

1. Current Ratio : The current ratio increased from 0.74 to 1.15 mainly due to growth in current assets,
particularly contract receivables and cash balances

2. Trade Receivables Turnover Ratio : The Trade Receivables Turnover Ratio decreased due to a substantial
increase in average contract receivables during the period

3. Net Working Capital Turnover Ratio : The ratio increased from (-2.13) times to 8.39 times due to the

improvement in net working capital from a negative position to a positive position, mainly driven by the
increase in contract receivables and growth in revenue.

4. Net Profit Ratio :The ratio improved from 55.98% to 73.14% owing to a higher increase in net profit
compared to the growth in revenue, reflecting improved operational performance and profitability
during the period.

5. Return on Capital Employed (ROCE) : ROCE increased from 0.3% to 0.9% primarily due to a substantial
rise in profit before interest and tax (PBIT), while capital employed remained largely stable during the
period.

6. Debt Service Coverage Ratio (DSCR) : DSCR improved from 0.34 to 0.98 as a result of higher EBITDA/profit
generation during the period, enhancing the Company's ability to service its debt obligations.

26. The Previous year's figures have been regrouped/ rearranged wherever necessary to conform to the
current year's classification/disclosure.

27. In the opinion of the management and to the best of their knowledge and belief, the value on
realization of Trade Receivables, Trade payables, Parties accounts and Other current assets in the
ordinary course of business will not be less than the amounts at which they are stated in the Balance
Sheet.

28. There is no liability on account of contracts to be executed on capital accounts as at the balance
sheet date.

29. The company has not provided for current tax as the management is of the opinion that there is no
taxable income during the year.

30. There are no transactions with struck off companies under section 248 or 560

31. No charges or satisfaction is yet to be registered with Registrar of Companies beyond the statutory
period.

32. The Company has complied with the no. of layers prescribed u/s 2(87) read with the applicable Rules

33. There is no Scheme of Arrangements that has been approved in terms of sections 230 to 237 of the
Companies Act 2013

34. The company has not advanced/loaned/invested or received funds (either borrowed funds or share
premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the
Intermediary shall 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 provide any guarantee,
security or the like to or on behalf of the Ultimate Beneficiaries

35. There are no transactions that are not recorded in the books of account to be surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961

36. The company is not covered under section 135 of the Companies Act 2013

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