Pranav Constructions Ltd Management Discussions

14 “Pre-Sales” refers to total value of bookings entered in the relevant Fiscals.

wider geographical reach while some other competitors may have strong presence in regional markets. Some of our competitors may have greater resources (including financial, land resources, and other types of infrastructure) to take advantage of efficiencies created by size, and access to capital at lower costs, have a better brand recall, and established relationships with homeowners. Our success in the future will depend significantly on our ability to maintain and increase market share in the face of such competition. Our inability to compete successfully with the existing players in the industry, may affect our business prospects and financial condition.

Certain Non-GAAP Measures

Certain non-GAAP measures like EBITDA, EBITDA Margin, Return on Capital Employed, PAT Margin and Debt to Equity Ratio (“Non-GAAP Measures”) presented in this Red Herring Prospectus are a supplemental measure of our performance and liquidity that are not required by, or presented in accordance with, Ind AS, Indian GAAP, or IFRS. Further, these Non-GAAP Measures are not a measurement of our financial performance or liquidity under Ind AS, Indian GAAP, or IFRS and should not be considered in isolation or construed as an alternative to cash flows, profit/ (loss) for the year or any other measure of financial performance or as an indicator of our operating performance, liquidity, profitability or cash flows generated by operating, investing or financing activities derived in accordance with Ind AS, Indian GAAP, or IFRS. In addition, these Non-GAAP Measures are not a standardised term, hence a direct comparison of similarly titled Non-GAAP Measures between companies may not be possible. Other companies may calculate the Non-GAAP Measures differently from us, limiting its usefulness as a comparative measure. Although the Non-GAAP Measures are not a measure of performance calculated in accordance with applicable accounting standards, our Companys management believes that it is useful to an investor in evaluating us because it is a widely used measure to evaluate a company s operating performance. See “Risk Factors - 55. We have in this Red Herring Prospectus included certain non-GAAP financial and operational measures and certain other industry measures related to our operations and financial performance that may vary from any standard methodology that is applicable across the real estate industry. We rely on certain assumptions and estimates to calculate such measures, therefore such measures may not be comparable with financial, operational or industry-related statistical information of similar nomenclature computed and presented by other similar companies. ” on page 48 .

1. Material accounting policies

1.1. Basis of Accounting Statement of compliance:

The Restated Consolidated Financial Information of the Company and its subsidiaries (the Company and its subsidiaries together referred to as the "Group”) comprises of the Restated Consolidated Statement of Assets and Liabilities as at March 31, 2026, March 31, 2025 and March 31, 2024, the related Restated Consolidated Statement of Profit and Losses (including Other Comprehensive Income), the Restated Consolidated Statement of Changes in Equity and the Restated Consolidated Statement of Cash Flows for the year ended March 31, 2026, March 31, 2025 and March 31, 2024, and the Material Accounting Policies and explanatory notes and annexures to the Restated Consolidated Financial Information (collectively, ‘Restated Consolidated Financial Information).

The Restated Consolidated Financial Information have been prepared by the management of the Group for the purpose of inclusion in the Red Herring Prospectus (the "RHP”) and prospectus (together referred as "Offer Document”) to be filed by the Holding Company with the Securities and Exchange Board of India ("SEBI”), National Stock Exchange of India Limited and BSE Limited and Registrar of Companies, Maharashtra, situated at Mumbai ("RoC”) in connection with the proposed Initial Public Offer of equity shares ("IPO”) by the Company.

The Restated Financial Information have been prepared by the management of the Group to comply with the requirements of:

(a) Section 26 of Part I of Chapter III of the Companies Act, 2013 (the "Act”);

(b) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (the "ICDR Regulations”);

(c) The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India ("ICAI”), as amended (the "Guidance Note”); and

The Restated Consolidated Financial Information were approved by the Board of Directors and authorised for issue on July 18, 2026.

These Restated Consolidated Financial Information have been compiled by the Management from the audited Consolidated financial statements of the Group as at and for the years ended 31 March 2026, 31 March 2025 and 31 March 2024, prepared in accordance with Indian Accounting Standard (Ind AS), as prescribed under Section 133 of the Act read with Companies (Indian Accounting Standards) Rules 2015, as amended, and other accounting principles

generally accepted in India, and have been approved by the Board of Directors at their meeting held on 18 July 2026, 29 May 2025 and 5 August 2024 respectively.

These Restated Consolidated Financial Information do not reflect the effects of events that occurred subsequent to the respective dates of Board meeting for adoption approval of the March 2026, March 2025 and 2024 Consolidated Financial Statements audited as at and for the years ended 31 March 2026, 2025 and 2024.

The Restated Consolidated Financial Information:

(a) have been prepared after incorporating adjustments for the changes in accounting policies, material errors, if any, and regrouping/reclassifications retrospectively in the financial years ended March 31, 2025 and March 31, 2024 to reflect the same accounting treatment as per the accounting policies and grouping/classifications followed as at the financial year ended March 31, 2026.

(b) do not require any adjustment for modifications as there are no modifications in the auditors report on the financial statements of the Company as at and for the years ended March 31, 2026, March 31, 2025 and March 31, 2024. There are certain modifications included in Report on the Legal and Regulatory Requirements relating to maintenance of books of account and other matters connected therewith and items relating to qualifications or adverse remarks in Annexures to the auditors report issued under the Company (Auditors Report) Order 2020 as mentioned in the Annexures to the Auditors Report as disclosed in the Annexure VI to the Restated Consolidated Financial Information, which do not require any adjustment to the Restated Consolidated Financial Information; and

(c) have been prepared in accordance with the Act, the SEBI ICDR Regulations and, the Guidance Note.

All amounts disclosed in Restated Financial Information are reported in nearest millions of Indian Rupees and are been rounded off to the nearest millions, except per share data and unless stated otherwise.

1.2. Basis of measurement

The Restated Consolidated Financial Information have been prepared on a historical cost convention on accrual basis, except for the following material items that have been measured at fair value as required by relevant Ind AS:-

i) Certain financial assets and liabilities measured at fair value (refer accounting policy on financial instruments)

ii) Net Defined Benefit obligations

The Restated Financial Information have been prepared on a going concern basis.

1.3. Basis of Consolidation

The Restated Consolidated Financial Information comprise the financial statements of the Company and its subsidiaries for the years ended March 31, 2026, March 31, 2025 and March 31, 2024. Where the Group has control over an investee, it is classified as a subsidiary. The Group controls an investee if all three of the following elements are present:

(i) power over the investee,

(ii) exposure to variable returns from the investee, and

(iii) the ability of the investor to use its power to affect those variable returns.

Control is reassessed whenever facts and circumstances indicate that there may be a change in any of these elements of control.

The Restated Consolidated Financial Information are prepared using uniform accounting policies for like transactions and other events in similar circumstances.

The financial statements of all entities used for the purpose of consolidation are drawn up to same reporting date as that of the Parent.

Profit or loss and each component of other comprehensive income ("OCI") are attributed to the equity holders of the parent of the Group and to the Non-Controlling interests, even if this results in the Non-Controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their

accounting policies into line with the Groups accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

1.4. Use of estimates

The preparation of Restated Consolidated Financial Information in conformity with Ind AS requires the management to make estimates and assumptions that affect the reported amount of assets and liabilities as at the Balance Sheet date, reported amount of revenue and expenses for the year and disclosures of contingent liabilities as at the Balance Sheet date. The estimates and assumptions used in the accompanying financial statements are based upon the managements evaluation of the relevant facts and circumstances as at the date of the financial statements. Actual results could differ from these estimates. Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates, if any, are recognized in the period in which the estimates are revised and in any future periods affected. Refer Note 3 for detailed discussion on estimates and judgments.

1.5. Current and non-current classification

The Group presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated as current when it is:

- Expected to be realized or intended to be sold or consumed in normal operating cycle

- Held primarily for the purpose of trading

- Expected to be realized within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve

months after the reporting period. All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle

- It is held primarily for the purpose of trading

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. All other liabilities are classified as non-current.

All assets and liabilities have been classified as current and non-current as per the Companys normal operating cycle. The normal operating cycle in respect of operations relating to under construction real estate project depends on signing of agreement, size of the project, phasing of the project, type of development, project complexities, approvals needed and realisation of projects into cash and cash equivalents. Accordingly, project related assets and liabilities have been classified into current and non-current based on operating cycle of respective projects. Operating cycle for all other assets and liabilities (apart from project related) have been considered as twelve months.

Summary of Material Accounting Policy

1.6. Property, Plant and Equipment

Property, plant and equipment are stated at historical cost less depreciation and impairment loss (if any). Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Cost comprises the purchase price and any attributable/allocable cost of bringing the asset to its working condition for its intended use. The cost also includes direct cost and other related incidental expenses. Revenue earned, if any, during trial run of assets is adjusted against cost of the assets. Cost also includes the cost of replacing part of the plant and equipment.

Subsequent costs are included in the assets carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to Statement of Profit and Loss during the year in which they are incurred.

Depreciation methods, estimated useful lives

The Group depreciates property, plant and equipment over their estimated useful lives using the written down value. The estimated useful lives of assets are as follows:

Leasehold improvements are amortized over the period of lease or estimated useful life, whichever is lower.

Based on the technical experts assessment of useful life, certain items of property plant and equipment are being depreciated over useful lives different from the prescribed useful lives under Schedule II to the Companies Act, 2013. Management believes that such estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used.

Depreciation on addition to property plant and equipment is provided on pro-rata basis from the date of acquisition. Depreciation on sale/deduction from property plant and equipment is provided up to the date preceding the date of sale, deduction as the case may be. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in Statement of Profit and Loss under Other Income.

Depreciation methods, useful lives and residual values are reviewed periodically at each financial year end and adjusted prospectively, as appropriate.

The carrying amount of property plant and equipment is reviewed periodically for impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of assets exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use.

Property plant and equipment are derecognised either when they have been disposed of or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognised in the Statement of Profit and Loss in the year of de-recognition.

1.7. Other Intangible Assets

Other Intangible assets are stated at acquisition cost, net of accumulated amortization and impairment loss (if any).

Cost comprises the acquisition price, development cost and any attributable/allocable incidental cost of bringing the asset to its working condition for its intended use.

Other Intangible assets v.i.z. Computer Software are amortized on written down value method over a period of three years.

The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at each financial year end.

The carrying amount of other intangible assets is reviewed periodically for impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. Gain or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and Loss when the asset is derecognised.

1.8. Development Rights

The Group executes projects through Development Agreements (DA), wherein the cooperative housing societies provides land and the Group undertakes to develop properties on such land (i.e. development rights) and in lieu of cooperative housing societies providing land, the Group has agreed to transfer certain percentage of constructed area. Transfer of such constructed area in exchange of such development rights is being estimated at fair value and accounted for on the project being awarded as the cost of development rights. Subsequent to initial recognition, such liability is remeasured on each reporting period depending on the type of the arrangement, to reflect the changes in the estimate, if any.

Cost of development rights is charged to statement of profit and loss based on the revenue recognised as explained in policy under revenue recognition in consonance with concept of matching cost and revenue.

1.9.

Revenue Recognition

The Group has applied five step model as set out in Ind AS 115 to recognise revenue in these Consolidated Financial Statements. The Group satisfies a performance obligation and recognises revenue over time, if one of the following criteria is met:

a. The customer simultaneously receives and consumes the benefits provided by the Groups performance as the company performs; or

b. The Groups performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or

c. The Groups performance does not create an asset with an alternative use to the Group and the entity has an enforceable right to payment for performance completed to date.

For performance obligations where any of the above conditions are not met, revenue is recognised at the point in time at which the performance obligation is satisfied. The specific revenue recognition criteria are described below:

I. Revenue from sale of real estate units

The Group recognises revenue, on execution of agreement and when control of the goods or services are transferred to the customer, at an amount that reflects the consideration (i.e. the transaction price) to which the Group is expected to be entitled in exchange for those goods or services excluding any amount received on behalf of third party (such as indirect taxes).

The Group on its assessment recognizes revenue over the period of time based on the condition mentioned in the para 35 (c) of Ind AS 115, as the asset created does not have an alternative use to the Group and as per the terms of the contract with the customer, the Group has an enforceable right to payment for performance completed till date. Therefore, the Group transfers control of the goods and services over the period of time and satisfies the performance obligation over the period of time, resulting in revenue being recognized over the period of time.

Revenue is recognized at the transaction price (net off transaction cost) as per the sales agreement and/or agreement for sale entered into with the customer. The transaction price reflects the amount which is expected to be entitled in the exchange to the goods and services excluding any amount received on behalf of the third party (such as indirect taxes).

The Group uses the cost based input method for measuring progress of performance obligation satisfied over the period of time. Hence, revenue is recognized in the proportion of the actual project cost incurred over the total estimated project cost. The project cost excludes land cost and finance costs. The management reviews and revises its measure of progress periodically and are considered as change in estimates and accordingly, the effect of such changes in estimates is recognised prospectively in the period in which such changes are determined.

Further, for development agreement, wherein the land owner/cooperative housing society provides land and the Group undertakes to develop properties on such land and in lieu of land owner/cooperative housing societies providing land, the Group has agreed to transfer certain percentage of constructed area, the revenue from the development and transfer of constructed area in exchange of such development rights is being accounted on gross basis on the project being awarded. Revenue is recognised over time using input method, on the basis of the inputs to the satisfaction of a performance obligation relative to the total expected inputs to the satisfaction of that performance obligation.

Contract assets is to right to consideration in the exchange for the goods and services transferred to the customer when the residential or commercial units are sold. A portion of the contract assets becomes due based on the construction linked milestones mentioned in the sales agreement. Such due amount of the contract assets are recognized as trade receivables in the books of the Group. Contract assets balances represents the amount by which amount of consideration due based on satisfaction of performance obligation exceeds the amount of payment due based on milestones mentioned in the contract with the customer.

Contract liability is the obligation to transfer goods or services to a customer when the residential or commercial units are sold. A portion of the contract liability is recognized as revenue based on the satisfaction of performance obligation. Contract liability balances represents the amount by which the amount of payment due as per milestones mentioned in the contract with customer exceeds the amount of consideration due based on the satisfaction of performance obligation.

Trade receivable represents the right to an amount of consideration that is unconditional and due based on the demand mentioned in the contract with the customer.

Advance from customers represents the amount received from the customer in excess of amount billed as per contract with the customer.

II. Interest Income

Interest income, including income arising from other financial instruments, is recognised using the effective interest rate method and is included in Other Income.

III. Dividend Income

Dividend Income is recognised when the Groups right to receive the payment is established, which is generally when shareholders approve the dividend.

IV. Other Income

Other items of income are accounted as and when the right to receive such income arises and it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably.

1.10. Taxes

Income tax expense comprises current tax expense and the net change in the deferred tax asset or liability during the year. Current and deferred taxes are recognized in statement of profit and loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity, respectively.

(a) Current income tax

The current income tax expense includes income taxes payable by the Group. The current tax payable by the Group in India is computed as per the provision of Income Tax Act, 1961. Advance taxes and provisions for current income taxes are presented in the balance sheet after off-setting advance tax paid and income tax provision arising in the same tax jurisdiction and where the relevant tax paying unit intends to settle the asset and liability on a net basis.

(b) Deferred income taxes

Deferred income tax is recognised using the balance sheet approach. Deferred income tax assets and liabilities are recognised for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount, except when the deferred income tax arises from the initial recognition of an asset or liability in a transaction that is not a business combination, affects neither accounting nor taxable profit or loss at the time of the transaction.

Deferred income tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised.

The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.

Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled.

Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the relevant entity intends to settle its current tax assets and liabilities on a net basis.

1.11. Leases

The Group as a lessee

The Groups lease asset classes primarily consist of leases for real estate properties. The Group assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract

conveys the right to control the use of an identified asset, the Group assesses whether: (i) the contract involves the use of an identified asset (ii) the Group has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the Group has the right to direct the use of the asset.

At the date of commencement of the lease, the Group recognizes a right-of-use asset (“ROU”) and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases) and low value leases. For these short- term and low value leases, the Group recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

The Group applies single recognition and measurement approach for all leases, except for short term leases and leases of low value assets. On the commencement of the lease, the Group, in its Balance Sheet, recognises the right of use asset at cost and lease liability at present value of lease payments to be made over the lease term.

Subsequently, the right of use asset are measured at cost less accumulated depreciation and any accumulated impairment loss. Lease liability are measured at amortised cost using the effective interest method. The lease payment made, are apportioned between the finance charge and the reduction of lease liability, and are recognised as expense in the Statement of Profit and Loss. Lease deposits given are a financial asset and are measured at amortised cost under Ind AS 109 since it satisfies Solely Payment of Principal and Interest (SPPI) condition. The difference between the present value and the nominal value of deposit is considered as right of use asset and recognised over the lease term. Unwinding of discount is treated as finance income and recognised in the Statement of Profit and Loss.

1.12. Inventories

The construction work in progress and finished goods are valued at lower of cost or net realisable value. Cost includes cost of rates and taxes, construction costs, other direct expenditure, allocated overheads and other incidental expenses.

Work-in-Progress:

Work-in-progress represents costs incurred for unsold areas of real estate development projects or projects where revenue has not yet been recognized. Unsold units are valued at the lower of cost and net realizable value. This includes construction costs, rates and taxes, other directly attributable expenses, allocated overheads, and other incidental expenses.

Finished Goods:

Finished goods, including flats and shops, are valued at the lower of cost and net realizable value.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

1.13. Impairment of non-financial assets

The Group assesses at each year end whether there is any objective evidence that a non financial asset or a group of non financial assets is impaired. If any such indication exists, the Group estimates the assets recoverable amount and the amount of impairment loss.

An impairment loss is calculated as the difference between an assets carrying amount and recoverable amount. Losses are recognized in Statement of Profit and Loss and reflected in an allowance account. When the Group considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off.

The recoverable amount of an asset or cash-generating unit (as defined below) is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash in flows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”).

An assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the Group estimates the assets or CGUs recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the assets recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years.

1.14. Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks, cash on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

For the purposes of the Statement of Cash Flows, cash and cash equivalents include cash on hand, cash in banks and short-term deposits, as defined above, net of outstanding bank overdraft as they are considered an integral part of Groups cash management.

1.15. Provisions and contingent liabilities

The Group estimates the provisions that have present obligations as a result of past events and it is probable that outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of each reporting period and are adjusted to reflect the current best estimates.

The Group uses significant judgements to assess contingent liabilities. Contingent liabilities are disclosed when there 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 Group or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. Contingent assets are neither recognised nor disclosed in the Restated Consolidated Financial Information.

The Group recognizes a contingent liability and discloses its existence and other required disclosures in notes to the Restated Consolidated Financial Information, unless the possibility of any outflow in settlement is remote.

1.16. 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 and liabilities are recognized when the Group becomes a party to the contractual provisions of the instrument.

(a) Financial Assets

(i) Initial recognition and measurement

At initial recognition, financial asset is measured at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

(ii) Subsequent measurement

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

a) at amortized cost; or

b) at fair value through other comprehensive income; or

c) at fair value through profit or loss.

The classification depends on the entitys business model for managing the financial assets and the contractual terms of the cash flows.

Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. Interest income from these financial assets is included in other income using the effective interest rate method (EIR).

Fair value through other comprehensive income (FVTOCI): Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income (FVTOCI). Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognized in Statement of Profit and Loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to Statement of Profit and Loss and recognized in other gains/ (losses). Interest income from these financial assets is included in other income using the effective interest rate method.

Fair value through profit or loss (FVTPL): Assets that do not meet the criteria for amortized cost or FVTOCI are measured at fair value through profit or loss. Interest income from these financial assets is included in other income.

Equity instruments: All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL. For all other equity instruments, the Group may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Group makes such election on an instrument- by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the Group decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even on sale of investment. However, the Group may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the profit and loss.

(iii) Impairment of financial assets

The Group assesses at each date of balance sheet whether a financial asset or a group of financial assets is impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance. The Group recognizes lifetime expected losses for all contract assets and / or all trade receivables that do not constitute a financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.

(iv) Derecognition of financial assets

The Group derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for de-recognition.

(b) Financial Liabilities

(i) Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss and at amortized cost, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of borrowings and payables, net of directly attributable transaction costs.

(ii) Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below: 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. Gains or losses on liabilities held for trading are recognized in the Statement of Profit and Loss.

(iii) Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in Statement of Profit and Loss when the liabilities are derecognized as well as through the EIR amortization process. Amortized 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 amortization is included as finance costs in the Statement of Profit and Loss.

(iv) Derecognition

A financial liability is derecognized 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 recognized in the Statement of Profit and Loss as finance costs.

(c) Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Group or the counterparty.

1.17. Fair value of financial instruments

In determining the fair value of its financial instruments, the Group uses following hierarchy and assumptions that are based on market conditions and risks existing at each reporting date.

Fair Value hierarchy

All assets and liabilities for which fair value is measured or disclosed in the Restated Consolidated Financial Information are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole.

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

• Level 3 inputs are unobservable inputs for the asset or liability.

For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

1.18. Employee Benefits

(a) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the year in which the employees render the related service are recognized in respect of employees services up to the end of the year and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

(b) Other long-term employee benefit obligations

(i) Defined contribution plan

The Groups defined contribution plan includes contribution towards Provident Fund which is made to the regulatory authorities, where the Group has no further obligations. Such benefits are classified as Defined Contribution Schemes as the Company does not carry any further obligations, apart from the contributions made on a monthly basis which are charged to the Statement of Profit and Loss.

(ii) Defined benefit plans

Gratuity is in the nature of a defined benefit plan. Provision for gratuity is calculated on the basis of actuarial valuations carried out at the reporting date and is charged to the Statement of Profit and Loss. The actuarial valuation is computed using the projected unit credit method. Re- measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability, are recognised immediately in the Restated

Consolidated Financial Information with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Re-measurements are not reclassified to the Statement of Profit and Loss in subsequent periods.

The Group operates a funded defined benefit gratuity plan for its eligible employees. The gratuity plan is governed by the applicable provisions of the Code on Social Security, 2020, read with the relevant rules thereunder, which have subsumed the earlier provisions of the Payment of Gratuity Act, 1972.

(iii) Compensated Absences

The Group provides for the encashment of leave or leave with pay subject to certain rules. The employees are entitled to accumulate leave subject to certain limits, for future encashment. The liability is provided based on number of days of unutilized leave at each balance sheet date based on an estimated basis for the year end.

1.19. Earnings Per Share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Earnings considered in ascertaining the Groups earnings per share is the net profit or loss for the year after deducting preference dividends, if any, and any attributable tax thereto for the year. The weighted average number of equity shares outstanding during the year and for all the years presented is adjusted for events, such as bonus shares, consolidation/ share split, other than the conversion of potential equity 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 year attributable to equity shareholders and the weighted average number of shares outstanding during the year is adjusted for the effects of all dilutive potential equity shares.

1.20. Non-Controlling Interests

The Group has the choice, on a transaction by transaction basis, to initially recognise any non-controlling interest in the acquiree which is a present ownership interest and entitles its holders to a proportionate share of the entitys net assets in the event of liquidation at either acquisition date fair value or, at the present ownership instruments proportionate share in the recognised amounts of the acquirees identifiable net assets. Other components of noncontrolling interest such as outstanding share options are generally measured at fair value.

The Group has not elected to take the option to use fair value in acquisitions completed to date.

The total comprehensive income of non-wholly owned subsidiaries is attributed to owners of the parent and to the non-controlling interests in proportion to their relative ownership interests.

2. Significant accounting judgments, estimates and assumptions

The preparation of Restated Consolidated Financial Information requires management to make judgments, 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.

2.1. Estimates and Assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the year end 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 Group based its assumptions and estimates on parameters available when the Restated Consolidated Financial Information 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 Group. Such changes are reflected in the assumptions when they occur.

(a) Impairment of non-financial assets

In assessing impairment, management estimates the recoverable amount of each asset or cash-generating units based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions about future operating results and the determination of a suitable discount rate.

(b) Useful Life Of Property, Plant And Equipments and Other Intangible Assets

The Group determines the estimated useful life of its Property, Plant and Equipments and Other Intangible Assets for calculating depreciation/ amortisation. The estimate is determined after considering the expected usage of the assets or physical wear and tear. The Group periodically reviews the estimated useful life and the depreciation/ amortisation method to ensure that the method and period of depreciation/ amortisation are consistent with the expected pattern of economic benefits from these assets.

(c) Classification of assets and liabilities into current and non-current

The management classifies the assets and liabilities into current and non-current categories based on the operating cycle of the respective projects.

(d) Fair value measurements

Management applies valuation techniques to determine the fair value of financial instruments (where active market quotes are not available) and non- financial assets. This involves developing estimates and assumptions consistent with how market participants would price the instrument/assets. Management bases its assumptions on observable data as far as possible but this may not always be available. In that case Management uses the best relevant information available. Estimated fair values may vary from the actual prices that would be achieved in an arms length transaction at the reporting date.

(e) Revenue Recognition

Management uses percentage of completion for projects in progress, project cost, revenue and saleable area estimates. (Refer Note 2.9)

3. Recent pronouncements

The Ministry of corporate Affairs ("MCA") notified amendments on May 7, 2025 and August 13, 2025 under the Companies (Indian Accounting Standards) Amendment Rules, 2025 and the Companies (Indian Accounting Standards) Second Amendment Rules, 2025, respectively, which is effective from annual reporting periods beginning on or after April 1, 2025.

(i) Amendment to Ind AS 7 and Ind AS 107 - Supplier Finance Arrangement:

The amendments to Ind AS 7 Statement of Cash Flows and Ind AS 107 Financial Instruments: Disclosures clarify the characteristics of supplier finance arrangements and require additional disclosures for such arrangements. The disclosure requirements in the amendments are intended to assist users of financial statements in understanding the effects of supplier finance arrangements on an entitys liabilities, cash flows and exposure to liquidity risk.

The Group does not have any supplier finance arrangements during the reporting period.

(ii) Amendment to Ind AS 1 - Classification of liabilities as current or non-current and non-current liabilities with covenants: -

The amendment specifies the requirements for classifying liabilities as current or non-current in the balance sheet, and clarifies the following:

• An entitys right to defer settlement of a liability for at least twelve months after the reporting period must have substance and must exist at the end of the reporting period. The classification of a liability as current or non-current is unaffected by the likelihood that the entity will exercise its right to defer settlement.

• If an entitys right to defer settlement of a liability is subject to covenants, such covenants affect whether that right exists at the end of the reporting period only if the entity is required to comply with the covenant on or before the end of the reporting period.

• In case of a liability that can be settled, at the option of the counterparty, by the transfer of the entitys own equity instruments, such settlement terms do not affect the classification of the liability as current or non-current only if the option is classified as an equity instrument.

These amendments have no effect on the measurement of any items in the Restated Consolidated Financial Statements of the Group. The Group did not make retrospective adjustments as a result of adopting the amendments to Ind AS 1.

(iii) Amendment to Ind AS 12 - Pillar-Two Tax Reforms

The Group is not within the scope of the OECD Pillar Two Model Rules, as Pillar Two legislation has not yet been enacted in any of the jurisdiction in which the Group operates.

(iv) Amendment to Ind AS 21-Lack of exchangeability

The Amendments introduces requirement to assess when a currency is exchangeable into another currency and when it is not. The amendment requires an entity to estimate the spot exchange rate when it concludes that a currency is not exchangeable into another currency. These amendments had no effect on the Restated Consolidated Financial Statements of the Group.

4. Amendments which are notified but not yet effective

Amendment to Ind AS 1 ‘Presentation of Financial Statements - Classification of Liabilities as current or non-current and non-current liabilities with covenants:

The amendment includes specific provisions that will take effect for reporting periods beginning on or after April 1,6, retrospectively, as outlined below:

a) Breach of material covenant for long-term loan arrangement on or before end of reporting period with effect that liability becomes payable on demand as on reporting date, then it shall be classified as current liability, if lender agreed after reporting period and before approval of financial statements to not demand payment as a consequence of breach.

b) Classify as non-current liability, if lender agreed by end of reporting period to provide grace period ending at least 12 months after reporting period within which entity can rectify the breach provided lender does not demand immediate repayment.

c) Disclose information about the timing of settlement to understand the impact of the liability on the financial statements. The Group does not expect this amendment to have an impact on its operations or Restated Consolidated Financial Statements.

Principal Components of Statement of Profit and Loss Total Income

Our total income comprises revenue from operations and other income. We generate our revenue from the contracts with customers.

Revenue from operations

Our revenue from operations comprises revenue from contracts with customers which involves revenue from real estate development.

Other income

Our other income primarily comprises (i) interest income, which includes interest income on bank deposits (at amortized cost) and on other financial assets carried at amortized cost, on income tax refund, (ii) gain on sale of investments (net), (iii) net gain of fair value of investments (measured at fair value through profit and loss), (iv) dividend income, (v) donation received and (vi) management fee and (vii) others.

Expenses

Our total expenses include the below mentioned expenses:

Cost of projects

Our cost of projects represents amount incurred towards (i) material costs, (ii) construction cost, (iii) project premium and approvals, (iv) rates and taxes, (v) displacement compensation, (vi) land conversion premium, (vii) stamp duty registration and notary expenses, (viii) amortisation of development rights and (ix) other project related cost comprising brokerage and other project costs.

Changes in inventories

Our cost of inventories represents the net increase / decrease in the inventories comprising value of unsold completed units and construction work in progress.

Employee benefits expense

Our employee benefits expense comprises (i) salaries, wages, bonus and other allowances, (ii) contribution to provident fund and employee state insurance (“ESI”), (iii) gratuity and (iv) compensated absences and (v) staff welfare expenses.

Finance costs

Our finance costs comprise (i) interest expense on borrowings, (ii) interest on delay in payment of taxes, (iii) interest expense on lease liabilities and (iv) other finance cost.

Depreciation and Amortization expense

Our depreciation and amortization comprise (i) depreciation on property, plant and equipment, (ii) amortization on rights-of- use assets and (iii) amortization of intangibles.

Other Expenses

Our other expenses primarily comprise (i) rates and taxes, (ii) repair and maintenance, (iii) advertisement, (iv) commission, (v) insurance charges, (vi) printing and stationary, (vii) legal and professional fees, (viii) security charges, (ix) travel and conveyance, (x) electricity charges, (xi) office expenses, (xii) auditor remuneration, (xiii) donation, (xiv) corporate social responsibility expenses, and (xv) miscellaneous expenses.

Tax Expenses

Our tax expenses primarily include current tax and deferred tax.

Profit after tax for the period

Profit after tax for the period represents the profit for the year after tax expenses.

Results of Operations Based on our Restated Financial Information

The following table sets forth select financial data from our statement of profit and loss for the Fiscals 2026, 2025 and 2024, from our Restated Financial Information, the components of which are also expressed as a percentage of total income for such periods.

378

Particulars

Consolidated

COMPARISON OF THE RESULTS OF OPERATIONS

Fiscal 2026 compared to Fiscal 2025

Total Income

Our total income increased by 19.69% to Rs7,639.25 million in Fiscal 2026 from Rs6,382.43 million in Fiscal 2025, on account of the factors discussed below.

Revenue from operations

Our revenue from operations comprising revenue from contracts with customers increased by 19.70% to Rs7,615.96 million in Fiscal 2026 from Rs6,362.72 million in Fiscal 2025, primarily attributable to revenue from contract with customers which involves revenue from real estate development. For further details, please see "Our Business - Our Business Operations" on page 215.

Other income

Our other income increased by 18.16% to U23.29 million in Fiscal 2026 from Rs19.71 million in Fiscal 2025, primarily due to increase in gain on termination of lease liability amounting to Rs2.15 million in Fiscal 2026 from Rs0.07 million in Fiscal 2025 and liability no longer required written back amounting to Rs7.85 million in Fiscal 2026 from Nil in Fiscal 2025;

Expenses

Our total expenses increased by 18.34% to Rs6,699.88 million in Fiscal 2026 from Rs5,661.56 million in Fiscal 2025, on account of the factors discussed below:

Cost of projects

Our cost of projects increased by 29.20% to Rs6,354.69 million in Fiscal 2026 from Rs4,918.60 million in Fiscal 2025, mainly due to increase in:

i. material cost to Rs642.59 million in Fiscal 2026 from Rs521.73 million in Fiscal 2025;

ii. construction cost to Rs673.74 million in Fiscal 2026 from Rs626.96 million in Fiscal 2025;

iii. project premium & approvals to Rs2,363.69 million in Fiscal 2026 from Rs1,347.21 million in Fiscal 2025;

iv. stamp duty registration and notary expenses to Rs43.34 million in Fiscal 2026 from U212.73 million in Fiscal 2025;

v. amortization of development rights to Rs2,101.47 million in Fiscal 2026 from Rs 1,811.42 million in Fiscal 2025; Changes in inventories

Our changes in inventories of completed saleable units and construction work-in-progress decreased by 1,555.27% to Rs (504.98) million in Fiscal 2026 from Rs34.70 million in Fiscal 2025, primarily due to revenue recognition.

Employee Benefits Expense

Our employee benefits expense increased by 21.55% to U287.41 million in Fiscal 2026 from U236.46 million in Fiscal 2025, primarily due to increase in the number of employees to 198 as of March 31, 2026 from 148 as of March 31, 2025, and an increase in Directors, KMPs and other employees remuneration on account of annual increment. For further details of remuneration paid to Directors, please also see “ Our Management" on page 246.

On account of the aforementioned increase in our employee headcount and increase in Directors, KMPs and other employees remuneration, (i) our salaries, wages, bonus, compensated absences and other allowances increased to Rs275.03 million in Fiscal 2026 from U227.15 million in Fiscal 2025, (ii) our contribution to provident fund and ESI increased to Rs2.96 million in Fiscal 2026 from Rs2.42 million in Fiscal 2025, (iii) our staff welfare expenses increased to Rs4.89 million in Fiscal 2026 from Rs4.50 million in Fiscal 2025, (iv) offset by increase in our gratuity to Rs4.53 million in Fiscal 2026 from Rs2.39 million in Fiscal 2025.

Finance Costs

Our finance costs increased by 40.61% to Rs327.33 million in Fiscal 2026 from Rs232.80 million in Fiscal 2025, primarily due to increase in drawdown of existing sanction limits for procurement of approvals and for construction and development.

Our interest expense on borrowings increased to Rs276.53 million in Fiscal 2026 from Rs197.79 million in Fiscal 2025. Our other finance costs increased to Rs43.06 million in Fiscal 2026 from Rs29.85 million in Fiscal 2025. Our interest expense on lease liabilities increased to Rs7.43 million in Fiscal 2026 from Rs5.00 million in Fiscal 2025. Our interest on delay in payment of taxes increased to Rs0.31 million in Fiscal 2026 from Rs0.16 million in Fiscal 2025.

Depreciation and Amortization expense

Our depreciation and amortization expense increased by 31.32% to Rs41.64 million in Fiscal 2026 from Rs 31.71 million in Fiscal5, primarily due to depreciation on Leasehold improvements, Plant and Machinery and Computers acquired during Fiscal6.

Our depreciation on property, plant and equipment increased to Rs20.18 million in Fiscal 2026 from Rs15.21 million in Fiscal 2025. Our amortization on right-of-use assets increased to Rs20.90 million in Fiscal 2026 from Rs15.48 million in Fiscal 2025. Our amortization of intangibles decreased to Rs0.56 million in Fiscal 2026 from Rs1.02 million in Fiscal 2025.

Other Expenses

Our other expenses decreased by 6.51% to Rs193.79 million in Fiscal 2026 from Rs207.29 million in Fiscal 2025, primarily due to decrease in:

i. rates and taxes to Rs8.34 million in Fiscal 2026 from Rs32.76 million in Fiscal 2025; and

ii. legal and professional fees to Rs66.71 million in Fiscal 2026 from Rs73.30 million in Fiscal 2025.

Profit before tax

As a result of the foregoing factors, our profit before tax for the period increased by 30.31% to Rs 939.37 million in Fiscal 2026 from Rs720.87 million in Fiscal 2025.

Tax Expense

Our tax expense increased to Rs226.13 million in Fiscal 2026 from Rs98.33 million in Fiscal 2025, primarily due to increase in profit before tax to 939.37 in Fiscal 2026 from Rs720.87 million in Fiscal 2025 and as per revenue recognition policy of the Company in accordance with para 35(c) of Ind AS 115.

Profit after tax for the period

As a result of the foregoing factors, our profit after tax for the period increased by 14.57% to Rs713.24 million in Fiscal 2026 from Rs622.54 million in Fiscal 2025.

Fiscal 2025 compared to Fiscal 2024

Total Income

Our total income increased by 41.91% to Rs6,382.43 million in Fiscal 2025 from Rs4,497.54 million in Fiscal 2024, on account of the factors discussed below.

Revenue from operations

Our revenue from operations comprising revenue from contracts with customers increased by 42.19% to Rs6,362.72 million in Fiscal 2025 from Rs4,474.83 million in Fiscal 2024, primarily due to increase in sale of units on account of Redevelopment Projects launched in Fiscal 2025 namely Falcon Crest CHSL, Kaveri CHSL, Om Manikanta CHSL and Citizen Apartments CHSL. For further details, please see "Our Business - Our Business Operations" on page 215.

Other income

Our other income decreased by 13.21% to Rs19.71 million in Fiscal 2025 from Rs22.71 million in Fiscal 2024, primarily due to decrease in gain of fair value of investments (net) amounting to Rs1.60 million in Fiscal 2025 from Rs13.81 million in Fiscal 2024;

This was partially offset primarily by gain on sale of investments amounting to Rs6.03 million in Fiscal 2025 from Nil in Fisc al4 and increase in interest on income tax refund amounting to Rs0.73 million in Fiscal 2025 from Nil in Fiscal 2024.

Expenses

Our total expenses increased by 37.87% to Rs5,661.56 million in Fiscal 2025 from Rs4,106.50 million in Fiscal 2024, on account of the factors discussed below.

Cost of projects

Our cost of projects increased by 13.09% to Rs4,918.60 million in Fiscal 2025 from Rs4,349.43 million in Fiscal 2024 mainly due to increase in:

i. material cost to Rs521.73 million in Fiscal 2025 from Rs460.97 million in Fiscal 2024;

ii. construction cost to Rs626.96 million in Fiscal 2025 from Rs347.68 million in Fiscal 2024;

iii. stamp duty registration and notary expenses to Rs212.73 million in Fiscal 2025 from Rs103.77 million in Fiscal 2024;

iv. amortization of development rights to Rs 1,811.42 million in Fiscal 2025 from Rs1,097.02 million in Fiscal 2024.

The above increase in costs was attributable to construction of 12 Under-construction Redevelopment Projects in Fiscal 2025 having a Total Developable Area of 1.13 million square feet compared to 10 Under-construction Redevelopment Projects in Fiscal 2024 having Total Developable Area of 0.82 million square feet.

This was partially offset primarily by decrease in project premium and approvals cost to Rs1,347.21 million in Fiscal 2025 fro m Rs1,709.39 million in Fiscal 2024, and land conversion premium to Nil in Fiscal 2025 from Rs76.32 million in Fiscal 2024.

Changes in inventories

Our changes in inventories of completed saleable units and construction work-in-progress increased by 104.57% to Rs34.70 million in Fiscal 2025 from Rs (759.91) million in Fiscal 2024, primarily due to revenue recognition.

Employee Benefits Expense

Our employee benefits expense increased by 28.64% to Rs236.46 million in Fiscal 2025 from Rs183.82 million in Fiscal 2024, primarily due to increase in the number of employees to 148 as of March 31, 2025 from 142 as of March 31, 2024, and an increase in Directors, KMPs and other employees remuneration on account of annual increment. For further details of remuneration paid to Directors, please also see “OurManagement" on page 246.

On account of the aforementioned increase in our employee headcount and increase in Directors, KMPs and other employees remuneration, (i) our salaries, wages, bonus, compensated absences and other allowances increased to Rs227.15 million in Fiscal5 from Rs177.71 million in Fiscal 2024, (ii) our contribution to provident fund and ESI increased to Rs2.42 million in Fiscal 2025 from Rs2.24 million in Fiscal 2024, (iii) our staff welfare expenses increased to Rs4.50 million in Fiscal 2025 from Rs1.27 million in Fiscal 2024, (iv) offset by decrease in our gratuity to Rs2.39 million in Fiscal 2025 from Rs2.60 million in Fiscal 2024;

Finance Costs

Our finance costs increased by 29.62% to Rs232.80 million in Fiscal 2025 from Rs179.60 million in Fiscal 2024, primarily due to increase in drawdown of existing sanction limits for procurement of approvals and for construction and development.

Our interest expense on borrowings increased to Rs197.79 million in Fiscal 2025 from Rs163.73 million in Fiscal 2024. Our other finance costs increased to Rs29.85 million in Fiscal 2025 from Rs11.01 million in Fiscal 2024. Our interest expense on lease liabilities increased to Rs5.00 million in Fiscal 2025 from Rs4.60 million in Fiscal 2024. Our interest on delay in payment of taxes decreased to Rs0.16 million in Fiscal 2025 from Rs0.26 million in Fiscal 2024.

Depreciation and Amortization expense

Our depreciation and amortization expense increased by 19.08% to Rs 31.71 million in Fiscal 2025 from Rs26.63 million in Fiscal 2024, primarily due to depreciation on vehicles acquired during Fiscal 2025.

Our depreciation on property, plant and equipment increased to Rs15.21 million in Fiscal 2025 from Rs 11.40 million in Fiscal 2024. Our amortization on right-of-use assets increased to Rs15.48 million in Fiscal 2025 from Rs12.52 million in Fiscal 2024. Our amortization of intangibles decreased to Rs1.02 million in Fiscal 2025 from Rs2.71 million in Fiscal 2024.

Other Expenses

Our other expenses increased by 63.31% to Rs207.29 million in Fiscal 2025 from Rs126.93 million in Fiscal 2024, primarily due to increase in:

i. legal and professional fees to Rs73.30 million in Fiscal 2025 from Rs52.97 million in Fiscal 2024;

ii. rates and taxes to Rs32.76 million in Fiscal 2025 from Rs13.30 million in Fiscal 2024; and

iii. advertisement to Rs27.89 million in Fiscal 2025 from Rs9.97 million in Fiscal 2024.

Profit before tax

As a result of the foregoing factors, our profit before tax for the period increased by 84.35% to Rs720.87 million in Fiscal 2 025 from Rs391.04 million in Fiscal 2024.

Tax Expense

Our tax expense increased to Rs98.33 million in Fiscal 2025 from Rs (5.13) million in Fiscal 2024, which resulted due to taxabl e income being recognised in Fiscal 2025, whereas taxable income was Nil in the previous year.

Profit after tax for the period

As a result of the foregoing factors, our profit after tax for the period increased by 57.14% to Rs622.54 million in Fiscal 20 25 from Rs396.17 million in Fiscal 2024.

Liquidity and Capital Resources

Historically, our primary liquidity requirements have been to finance the working capital needs for our operations. We have met these requirements through cash flows from operations and borrowings. As of March 31, 2026, we had Rs1,438.46 million in inventories, Rs959.75 million in financial assets including investments, trade receivables, cash and cash equivalents, loans and other financial assets and Rs15,414.12 million in other current assets.

As of Fiscal 2026, Fiscal 2025 and 2024, and our total liabilities based on our Restated Financial Information amounted to Rs15,524.91 million, Rs10,706.96 million, and Rs8,784.39 million, respectively.

Cash Flows Based on Restated Financial Information

The table below summarizes the statement of cash flows, as per our cash flow statements, for the years indicated:

(in Rs million)

Operating Activities Fiscal 2026

Our net cash used in operating activities was Rs 411.94 million in Fiscal 2026. Our operating profit before working capital change was Rs3,390.55 million in Fiscal 2026. The movements in working capital in Fiscal 2026 primarily consisted of (i) increase in inventories of Rs504.98 million , (ii) increase in trade receivables of Rs18.28 million, (iii) increase in loans, other financial assets and other assets of Rs7,303.50 million, (iv) increase in trade payables of Rs1,711.03 million and (v) increase in other financial liabilities, other current liabilities and provisions of Rs2,435.44 million.

Fiscal 2025

Our net cash used in operating activities was Rs926.01 million in Fiscal 2025. Our operating profit before working capital cha nge was Rs2,781.62 million in Fiscal 2025. The movements in working capital in Fiscal 2025 primarily consisted of (i) decrease in inventories of Rs34.70 million, (ii) decrease in trade receivables of Rs145.60 million, (iii) increase in loans, other financial assets and other assets of Rs4,764.69 million, (iv) increase in trade payables of Rs309.11 million and (v) increase in other financial liabilities, other current liabilities and provisions of Rs573.85 million.

Fiscal 2024

Our net cash generated from operating activities was Rs 54.62 million in Fiscal 2024. Our operating profit before working capital change was Rs 1,677.69 million in Fiscal 2024. The movements in working capital in Fiscal 2024 primarily consisted of (i) increase in inventories of Rs 759.91 million, (ii) increase in trade receivables of Rs 228.98 million, (iii) increase in loans, other financial assets and other assets of Rs 2,622.72 million, (iv) increase in trade payables of Rs 1,110.48 million and (v) increase in other financial liabilities, other current liabilities and provisions of Rs 979.76 million.

Investing A ctivities

Fiscal 2026

Our net cash used in investing activities was Rs 53.08 million in Fiscal 2026. This was primarily due to payment for acquisition of property, plant and equipment and intangible assets of Rs 28.62 million, payment for capital advance of Rs 0.80 million, purchase of investments of Rs 16.36 million, investment in fixed deposits of 113.41 million and interest received of Rs 6.11 million.

Fiscal 2025

Our net cash used in investing activities was Rs 7.42 million in Fiscal 2025. This was primarily due to payment for acquisition of property, plant and equipment and intangible assets of Rs 39.57 million, sale of investments of Rs 46.61 million, investment i n fixed deposits of Rs 19.91 million, interest received of Rs 5.19 million and dividend received of Rs 0.26 million.

Fiscal 2024

Our net cash generated from investing activities was Rs 197.84 million in Fiscal 2024. This was primarily due to payment for acquisition of property, plant and equipment and intangible assets of Rs 9.37 million, purchase of investments Rs 6.63 million, investment in fixed deposits of Rs 207.13 million, interest received of Rs 6.14 million and dividend received of Rs 0.57 million.

Financing Activities

Fiscal 2026

Our net cash generated from financing activities was Rs 246.29 million in Fiscal 2026. This was primarily due to proceeds from borrowings of Rs 2,254.17 million, repayment of borrowings of Rs 1,629.45 million, lease liabilities paid of Rs 25.33 million, interest paid of Rs 302.51 million and other finance cost of Rs 50.59 million.

Fiscal 2025

Our net cash generated from financing activities was Rs 941.69 million in Fiscal 2025. This was primarily due to proceeds from borrowings of Rs 2,469.80 million, repayment of borrowings of Rs 1,497.81 million, lease liabilities paid of Rs 18.26 million, inte rest paid of Rs 210.50 million, other finance cost of Rs 51.26 million and proceeds from issuance of equity shares of Rs 249.72 million.

Fiscal 2024

Our net cash generated from financing activities was Rs 5.72 million in Fiscal 2024. This was due to proceeds from issue of ordinary shares to non-Controlling interest by a subsidiary of Rs 0.15 million, proceeds from borrowings of Rs 1,624.22 million, repayment of borrowings of Rs 1,613.66 million, lease liabilities paid of Rs 14.06 million, interest paid of Rs 112.76 million, other finance cost of Rs 29.24 million and proceeds from issuance of equity share capital under rights issue of Rs 151.07 million.

Financial Indebtedness

As of March 31, 2026, we had term loans* (excluding deferred payment liabilities) of Rs 2,656.44 million, with a debt to equity ratio of 1.08 as per the Restated Financial Information. Some of our financing agreements include various conditions and covenants that require us to obtain lender consents prior to carrying out certain activities and entering into certain transactions. We cannot assure you that we will be able to obtain these consents and any failure to obtain these consents could have significant adverse consequences for our business. For further information on our agreements governing our outstanding indebtedness, see “Financial Indebtedness” on page 338.

*Debt comprises non-current borrowings, current borrowings and lease liabilities.

Contractual Obligations

(Rs in million)

383

Contingent Liabilities

The following table sets forth the principal components of our contingent liabilities as of March 31, 2026, as per the Restated Financial Information:

(Rs in million)

*lncome tax demand comprise demand from the Income tax authorities pertaining to a matter related to the financial year 2016-17. The Company has received order dated May 30, 2023 of demand amounting to T7.60 Million. The Company has filed an appeal against this Assessment Order with the Commissioner of Income-tax (Appeals), Mumbai.

For further information see “Restated Financial Information” on page 272.

Off-Balance Sheet Arrangements

There are no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that we believe are material to investors.

Related Party Transactions

We have entered into various transactions with related parties in ordinary course of business. For further information see

“Restated Financial Information - Note 40” on page 319.

Quantitative and Qualitative Disclosures about Market Risk

Our Companys principal financial liabilities comprise of borrowings, trade payables and other payables. The main purpose of these financial liabilities is to finance our Companys operations. Our Companys principal financial assets include loans, trade receivables, cash and bank balances and other receivables that derive directly from its operations. Our Companys activities expose it to market risk, liquidity risk and credit risk. Our Companys management oversees the management of these risks and ensures that our Companys financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with our Companys policies and risk objectives.

Market risk

Market risk is the risk where the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and other price risk, such as equity price risk and commodity risk. Our Company has no exposure to commodity prices as it does not deal in derivative instruments whose underlying is a commodity.

Interest rate risk

Interest rate risk is the risk where the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Our Companys exposure to the risk of changes in market interest rates relates primarily to our Companys debt obligations with floating interest rates. The management is responsible for the monitoring of our Companys interest rate position. Various variables are considered by the management in structuring our Companys borrowings to achieve a reasonable, competitive cost of funding.

Credit Risk

Credit risk is the risk of financial loss to our Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from our Companys receivables from customer.

Investments

Our Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a good credit rating. The credit worthiness of the counterparties of the investments made are evaluated by the management on an ongoing basis and does not expect any significant losses from non-performance by these counterparties.

Trade and other receivables

Our Companys exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, credit risk with regards to trade receivable is almost negligible in case of its residential sale. The same is due to the fact that in case of residential sell business our Company does not handover possession till entire outstanding is received.

Other financial assets

Our Company does a proper financial and credibility check on the landlords before taking any property on leave and license or lease and hasnt had a single instance of non-refund of security deposit on vacating the leased/ leave and licensed property. Our Company also in some cases ensure that the notice period rentals are adjusted against the other financial assets and only differential, if any, is paid out thereby further mitigating the non-realization risk. Our Company does not foresee any credit risks on deposits with regulatory authorities.

Cash and cash equivalents

Our Company limits its exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions and retaining sufficient balances in bank accounts required to meet a months operational costs. The management reviews the bank accounts on regular basis and fund drawdowns are planned to ensure that there is minimal surplus cash in bank accounts.

Liquidity Risk

Liquidity risk is the risk that our Company will not be able to meet its financial obligations as they become due. Our Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due. Our Companys objective is to maintain a balance between continuity of funding and flexibility through the use of surplu s funds, bank overdrafts, bank loans and inter-corporate loans.

For further information, see “Restated Financial Information - Note 39(m)” on page 319.

Capital Expenditures

Our historical capital expenditures were, and we expect our future capital expenditures to be, primarily for furniture and fixtures, office equipment, computers and vehicles. For the Fiscals 2026, 2025 and 2024, our capital expenditures (comprising of leasehold improvements, purchase of plant and machinery, furniture and fixtures, office equipment, computers and vehicles) amounted to Rs29.13 million, Rs34.05 million, and Rs9.37 million, respectively as per our Restated Financial Information.

Change in accounting policies

Other than as disclosed in the Restated Financial Information, there have been no changes in accounting policies during Fiscals 2026, 2025 and 2024.

Segment Reporting

Our business activity primarily falls within a single reportable segment, i.e., real estate development and we do not follow any segment reporting.

Significant Economic Changes

Other than as described above under the heading titled “Principal Factors Affecting Our Financial Condition and Results of Operations,” to the knowledge of our management, there are no other significant economic changes that materially affect or are likely to affect income from continuing operations.

Unusual or Infrequent Events of Transactions

Except as described in this Red Herring Prospectus, there have been no other events or transactions that, to our knowledge, may be described as “unusual” or “infrequent”.

Known Trends or Uncertainties

Our business has been affected and we expect will continue to be affected by the trends identified above in the heading titled “Principal Factors Affecting Our Financial Condition and Results of Operations” and the uncertainties described in the section titled “Risk Factors beginning on page 18. To our knowledge, except as described or anticipated in this Red Herring Prospectus, there are no known factors which we expect will have a material adverse impact on our revenues or income from continuing operations.

Future Relationship Between Cost and Revenue

Other than as described in the heading titled “Principal Factors Affecting Our Financial Condition and Results of Operations” and the uncertainties described in the section titled “Risk Factors” beginning on page 18, to the knowledge of our management, there are no known factors that might affect the future relationship between costs and revenues.

New products, Services or Business Segments

Other than as described in “Our Business” on page 202 of this Red Herring Prospectus, there are no new products or business segments in which we operate.

Seasonality of Business

Given the nature of our business operations, our business is not seasonal.

Suppliers or Customer Concentration

We are dependent on a limited number of suppliers and contractors. For further details, see “Risk Factors - 4. We do not enter into agreements for supply of construction materials for our Redevelopment Projects and depend on a limited number of suppliers for construction materials. As of Fiscal 2026, Fiscal 2025 and Fiscal 2024, our top 10 suppliers contributed to 61.78%, 69.80% and 52.50% of the total material costs, respectively. Any increase in prices or interruption in the availability of construction materials could adversely impact our business, results of operations andfinancial condition. ” and “Risk Factors - 5. We depend on a limited number of contractors for our business activities and operations. As of Fiscal 2026, Fiscal 2025 and Fiscal 2024, our top 10 contractors contributed to 47.10%, 56.41% and 46.92% of the total amount paid to contractors, respectively. Any delay or failure on the part of such contractors to adhere to their obligations could adversely affect our business operations and financial condition.” on pages 23 and 25, respectively. We do not depend on a limited number of customers for our revenues and operations.

Competitive Conditions

We expect to continue to compete with existing and potential competitors. For details, please refer to the discussions on our competition in “Risk Factors” and "Our Business” on pages 18 and 202, respectively.

Reservations, Qualifications and Adverse Remarks Included by Auditors

There are no qualifications in the audit report that require adjustments in the Restated Financial Information.

Significant Developments After March 31, 2026

There have been no significant developments after March 31, 2026, that may materially and adversely affect or is likely to affect within the next 12 months, (i) the trading or profitability of our Company; (ii) value of our assets; (iii) ability to pay our liabilities.