Sri Lotus Developers & Realty Ltd Management Discussions

Our financial or fiscal year ends on March 31 of each calendar year. Accordingly, references to a "Fiscal" or "fiscal year" are to the 12-month period ended March 31 of the relevant year. Unless otherwise stated or the context otherwise requires, the financial information included in this section is as at March 31, 2025, March 31, 2024 and March 31, 2023. Restated Consolidated Financial Information for Fiscal 2025, Fiscal 2024 and Fiscal 2023 included in this Red Herring Prospectus has been derived from the Restated Consolidated Financial Information on page 278. We have also included various operational and financial performance indicators in this Red Herring Prospectus, some of which have not been derived from our Restated Consolidated Financial Information. The manner of calculation and presentation of some of the operational and financial performance indicators, and the assumptions and estimates used in such calculation, may vary from that used by other companies in India and other jurisdictions. Our financial year ends on March 31 of each year. Accordingly, all references to a particular Fiscal are to the 12-month period ended March 31 of that year. Unless stated otherwise, industry and market data used in this Red Herring Prospectus is derived from the report titled, "Real Estate Industry Report" dated July 12, 2025 ("Industry Report") prepared by Anarock Property

Consultants Private Limited, appointed by our Company pursuant to an engagement letter dated October 14, 2024, and such Industry Report has been commissioned by and paid for by our Company, exclusively in connection with the Issue. The Industry Report is available on the website of our Company at www.lotusdevelopers.com. Unless otherwise indicated, financial, operational, industry and other related information derived from the Industry Report and included herein with respect to any particular year refers to such information for the relevant calendar year. This discussion contains forward-looking statements that involve risks and uncertainties and reflects our current view with respect to future events and financial performance. Actual results may differ from those anticipated in these forward-looking statements as a result of factors such as those set forth under "Forward Looking Statements" and "Risk Factors" on pages 19 and 35, respectively.

Overview

We are a developer of residential and commercial premises in Mumbai, Maharashtra, with a focus in Redevelopment Projects in the Ultra Luxury Segment and Luxury Segment in the western suburbs. Since our establishment, we have aimed at building a brand centred around customer satisfaction, by creating environments that enhance our customers lifestyles. For further details, see "Our Business" beginning on page 198.

Significant factors affecting our financial condition and results of operations

Our business, results of operations and financial condition are affected by a number of factors, some of which are beyond our control. This section sets out certain key factors that we believe have affected our business, results of operations and financial condition in the past or which we expect will affect our business, results of operations or financial condition in the future. For a detailed discussion of certain factors that may adversely affect our business, results of operations and financial condition, see "Risk Factors" beginning on page 35.

Sales of our project in timely manner

We typically commence sale of units along with the construction of projects. During Fiscal 2025, 2024 and 2023, revenue from sale of projects was :

(in million)

Consolidated performance	Fiscal 2025	Fiscal 2024	Fiscal 2023
Revenue from sale of projects	5,436.82	4,615.75	1,668.71

Our revenues and costs may fluctuate from period to period due to a combination of factors beyond our control, including registration of sale deeds in a particular period and volatility in expenses such as costs to acquire land or development rights and construction costs. The volume of bookings depends on our ability to design projects that will meet customer preferences and market trends, and to timely market and pre-sale our projects, the willingness of customers to pay for the projects or enter into sale agreements well in advance of receiving possession of the projects and general market conditions. We market and pre-sale our projects in phases from the date of launch of the project after receiving requisite approvals, including those required under the RERA, which is typically after acquisition of the land or land development rights and during the process of planning and designing the project, up until the time we complete our project, depending on market conditions. As of June 30, 2025, we have 5 (five) Ongoing Projects and 11 (eleven) Upcoming Projects. We cannot predict with certainty when our projects will be completed and sold as our project timetables are occasionally disrupted by and subject to unforeseen circumstances at different stages of planning and execution. This may lead to large fluctuation in financial result for any financial period depending on work completed in that period and sales made during that period. Therefore, our results of operations will significantly depend upon the size and number of completed projects which are ready to be sold or have been sold to customers in each financial period as our revenue from sales depends upon the volume of bookings we are able to obtain for our developments as well as the rate of progress of construction of our projects

Fluctuations in market prices for our Projects

Our total income is affected by the sales of our projects, which are affected by prevailing market conditions and prices in the real estate sector in Mumbai in the state of Maharashtra in particular and in India generally (including market forces of supply and demand), the nature and location of our projects, and other factors such as our brand and reputation and the design of our projects. The real estate market in Mumbai may be affected by various factors beyond our control, such as: prevailing local and economic conditions, changes in the supply and demand for properties comparable to those we develop, lack of financing for real estate projects, change in demographic trends, employment and income levels, availability of consumer financing (interest rates and eligibility criteria for loans), changes in the applicable governmental regulations and related policies, decrease in or restrictions on foreign currency remittances, regional natural disasters or pandemics, performance of key industrial sectors, or the public perception that any of these events may occur. Since most of our ongoing and planned projects in India are concentrated in Mumbai in Maharashtra, we are particularly affected by changes in real estate market conditions in Mumbai in Maharashtra, particularly by availability of, and demand for, projects comparable to those we develop and competition from other real estate developers to market and sell similar projects within the same micro-markets.

Sales volumes, revenue recognition and rate of progress of construction and development

The table below provides our revenue from operations for the Financial Years 2025, 2024 and 2023, also presented as a percentage of our total income:

				For Fiscal
		2025		2024			2023
Particulars
		Percentage of		Percentage of			Percentage of
	( million)		total income	( million)	total income	( million)		total income
Revenue from Operations	5,496.82		96.56%	4,615.75	99.01%	1,668.71		98.19%

We recognize revenue based on the fulfilment of performance obligations as set out in the contracts with our customers. Our cost estimates are affected by, among other things, volatility in expenses comprising the costs to acquire land, development rights and construction costs. Such changes may in turn affect the profit recognized during the same Financial Year. Accordingly, our income across time periods may fluctuate significantly due to a variety of factors, including the size and number of our developments, execution of agreements and/or contracts with buyers and general market conditions. Variation of project timelines due to project delays and estimates may also have an adverse effect on our ability to recognize revenue in a particular period. As a result of one or more of these factors, we may record significant revenue from operations or profits during one accounting period and significantly lower revenue from operations or profits during prior or subsequent accounting periods. Our Sales volumes within any Financial Year depends on our ability to, among other things: design projects that will meet customer preferences and market trends; timely market and pre-sale our projects. We market and pre-sale our projects in phases from the date of launch of the project after receiving requisite approvals, including those required under the RERA, which is typically after acquisition of the land or land development rights and during the process of planning and designing the project, up until the time we complete our project, depending on market conditions. the preference of our customers to pay for the projects or enter into sale agreements well in advance of receiving possession of the projects; and general market conditions. We estimate the total costs of a project prior to its commencement based on, among other things, the size, specifications and location of the project. We re-evaluate our project costs periodically. If, during the reevaluation, the total project cost is estimated to exceed the total revenue from the project, we will recognize the loss in the relevant Financial Year. Re-evaluations also affect our ability to allocate resources to the project in a timely manner, which in turn affects construction progress. Our construction process is also affected by other factors including the competence of, and priority given to our projects by, our contractors, the receipt of approvals and regulatory clearances, access to utilities such as electricity and water, and the absence of contingencies such as litigation and adverse weather conditions.

Cost of construction and development

Our cost of construction includes the cost of raw materials such as steel, cement, ready mix concrete, wood, flooring, sanitary fittings, electrical fittings, plumbing and other building materials and labour costs. Raw material prices, particularly those of steel, ready mix concrete cement, may be affected by price volatility caused by various factors that affect the Indian and international commodity markets. If there are extraordinary price increases in construction materials due to increases in demand for cement and steel, or shortages in supply, the contractors we hire for construction or development work may be unable to fulfil their contractual obligations and may therefore be compelled to increase their contract prices. As a result, increases in costs for any construction materials may affect our construction costs, and consequently our margins unless we are able to pass on such costs by increasing the sales price for our projects. Further, certain approval costs and premiums payable to Government authorities are linked to the ready reckoner rates announced by the relevant government authorities periodically. Any increase in the ready reckoner rates increases our approval costs. In addition, the timing and quality of construction of the projects we develop depends on the availability and skill of our contractors and consultants, as well as contingencies affecting them, including labour and industrial actions, such as strikes and lockouts. Such labour and industrial actions may cause significant delays to the construction timetables for our projects and we may therefore be required to find replacement contractors and consultants at higher cost. As a result, any increase in prices resulting from higher construction costs could adversely affect demand for our projects and our profit margins.

General economic condition and the condition and performance of the real estate market in India

We derive a substantial part of our revenue from our real estate activities in the Western Suburb region of Mumbai. Accordingly, we are heavily dependent on the state of the Indian real estate sector in particular economy and real estate sector in general. As demand for new residential and commercial properties is driven by increased employment and increasing disposable income, any slowdown or perceived slowdown in the Indian economy, or in specific sectors of the Indian economy, could adversely affect our business and financial performance.

From 2021 to 2023, new launches in the Western Suburbs increased. However, absorption continued to rise steadily throughout this period. In 2024, absorption surpassed the supply. Capital prices surged due to good absorption in 2023 and 2024, with prominent developers aligning new launches with prevailing capital values. On average, capital prices appreciated by slightly over 8% annually post the Covid Phase i.e., 2021(Source: Anarock Report)

The following graph sets forth unsold inventory and inventory overhang (in months) trends in Western Suburbs micro-market from CY 2021- Q1 2025:

Figure 43

Source: Anarock Research

Note: All the figures in the above graph are as per Calendar Year (CY)

Regulatory framework

The real estate sector in India is highly regulated. Our operations, the acquisition of land and land development rights, and the implementation of our projects require us to obtain regulatory approvals and licenses and require us to comply with the land acquisition and conversion rules and regulations of a variety of regulatory authorities. We are also subject to local and municipal laws relating to real estate development activities such as Mumbai Metropolitan Region Development Authority Act, 1974, The Maharashtra Housing and Area Development Act, 1976 and the relevant development control regulations. These require approvals for construction and development of real estate projects including approvals for the ratio of built-up area to land area, plans for road access, community facilities, open spaces, water supply, sewage disposal systems, electricity supply, environmental suitability, zoning regulations and size of the project. Any delay or failure in getting any of these approvals for our Ongoing Projects and Upcoming Projects may affect our business and result of operations. Further, the Central Government notified the RERA on March 26, 2016 and has enforced RERA with effect from May 1, 2017. The RERA has been introduced to regulate the real estate industry and ensure, amongst others, imposition of certain responsibilities on real estate developers and accountability towards customers and protection of their interest. RERA requires the mandatory registration of real estate projects and developers are not permitted to issue advertisements or accept advances unless real estate projects are registered. The RERA also imposes restrictions on use of funds received from customers prior to project completion and taking customer approval for major changes in sanction plan. In addition, with the introduction of RERA we have to comply with specific legislations enacted by respective State Governments, where our Ongoing Projects, Upcoming Projects, or future projects may be located. In addition, one of the major factors that influence our project costs and customer buying decisions are taxes, cess, fees, charges and premiums payable for a particular project. We benefit from certain tax regulations and incentives that accord favourable treatment with respect to certain of our projects and therefore translate in benefits for our customers as well. Any newly introduced or revised policies in relation to the tax, duties or other such levies issued by relevant tax authorities may deprive us of our existing benefits which may adversely affect our results of operations. The reduction or termination of our tax incentives, or inability to satisfy the conditions under which such tax incentives are made available, will increase our tax liability and adversely affect our business results of operations and financial condition.

Availability of future growth opportunities

Our growth is linked to the availability of land in areas where we intend to develop projects either by ourselves or under redevelopment or joint development arrangements. Suitable land parcels are severely limited in Mumbai region, our primary market. We believe that we have been successful in obtaining some of the land parcels at reasonable cost but are not able to predict our ability to do so in the future. The cost of acquiring land, which includes the amounts paid for freehold rights, leasehold rights, the cost of registration and stamp duty, represents a substantial part of our project cost, and may sometimes determine whether we are able to acquire certain parcels of land at all. We enter into a deed of conveyance or a lease deed transferring title or leasehold rights in our favour. The registration charges and stamp duty are payable by us. Additional costs include those incurred in complying with regulatory formalities, such as fees paid for change of land use, infrastructure and development charges and premium.

Competition

We compete for land, sale of projects, manpower resources and skilled personnel with other private developers. We face competition from various national and regional real estate developers. Moreover, as we seek to diversify our operations in other micro-markets of the Mumbai region, we face the risk that some of our competitors have a wider geographical reach while some other competitors have a 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. For example, we face competition from listed developers including Arkade Developers Limited, Keystone Realtors Limited and Mahindra Lifespaces Developers Limited that have real estate projects in the Mumbai region (Source: Industry Report). 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.

Basis of preparation of Restated Financial Information

(i) Statement of Compliance

The restated consolidated financial statements have been prepared in accordance with the Indian Accounting Standards notified under Section 133 of Companies Act, 2013 (the Act) read with Companies Indian Accounting Standards (Ind AS) Rules, 2015 and other relevant provisions of the Act and rules framed thereunder.

The restated consolidated financial statements have been prepared by the group for the purpose of proposed offerings/ fund raising at the group level and in accordance with the applicable provisions of section 26 of the Act as amended from time to time, Paragraph A of Clause 11 (I) of Part A of Schedule VI of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended to date

(the "SEBI ICDR Regulations") issued by the Securities and Exchange Board of India (the "SEBI") and the Guidance Note on Reports in Company Prospectuses (Revised 2019) ("Guidance Note") issued by The Institute of Chartered Accountants of India ("ICAI").

(ii) Basis of measurement

The Special Purpose Consolidated Financial Statements 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:- - Certain financial assets and liabilities measured at fair value (refer accounting policy on financial instruments) - Net defined benefit obligation.

(iii) Current versus non-current classification

The Company, as required by Ind AS 1, presents assets and liabilities in the Balance Sheet based on current/non-current classification. Deferred tax assets and liabilities are classified as non-current assets and liabilities. Based on the nature of business conducted, the Company has ascertained its operating cycle from Commencement of the Project till Completion of Project for the purpose of current and non-current classification of assets and liabilities. Assets and liabilities have been classified into current and non-current based on their respective operating cycle.

(iv) Presentation currency and rounding off

All amounts disclosed in Special Purpose Consolidated Financial Statements are reported in millions of Indian Rupees and have been rounded off to the nearest millions up to two decimals, except per share data and other data if stated otherwise.

(v) Going Concern

The Company has prepared the Restated Consolidated Financial Statements on the basis that it will continue to operate as a going concern.

(vi) Use of Estimates

The preparation of the Financial Information requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from those estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

(vii) Critical Accounting estimates

a) Useful lives of property, plant and equipment (Property, plant and equipment, and investment property) The Company reviews the useful life of property, plant and equipment at the end of each reporting period. This reassessment may result in changes in depreciation expense in future periods. b) Defined benefit obligations The present value of the defined benefit obligation is based on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increase and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. c) Leases The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgement. The Company uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate. The Company determines the lease term as the non-cancellable period of a lease, together with both periods converted by an option to extend the lease if the Company is reasonably certain to exercise that option; and periods covered by on option to terminate the lease if the Company is reasonably certain not to exercise that option. In assessing whether the Company is reasonably certain to exercise an option to extend a lease, or not to exercise an option to terminate a lease, it considers all relevant facts and circumstances that create an economic Incentive for the Company to exercise the option to extend the lease, or not to exercise the option to terminate the lease. The Company reviews the lease term if there is a change in the non-cancellable period of a lease.

The discount rate is generally based on the incremental borrowing rate.

(viii) Principles of Consolidation

(a) Subsidiaries / Enterprises controlled

Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the relevant activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date when control ceases.

The acquisition method of accounting under the provisions of Ind AS 103 " Business combination" is used to account for business combinations by the Group.

The Group combines the financial statements of the parent, its subsidiaries and enterprises controlled line by line adding together like items of assets, liabilities, equity, income and expenses. Intercompany transactions, balances and unrealized gains on transactions between Group companies are eliminated based on information of such items reported by the entities of the group. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

Non-controlling interests in the results and equity of subsidiaries are shown separately in the restated consolidated statement of profit and loss, restated consolidated statement of changes in equity and restated consolidated balance sheet respectively.

The financial statements of the subsidiaries and enterprises controlled used in consolidation are drawn up to the same reporting date as that of the Parent Company i.e. year ended March 31, 2025, March 31, 2024 and March 31, 2023.

(b) Associates

Associates are all entities over which the Group has significant influence but not control or joint control. This is generally the case where the Group holds between 20% to 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting (see (c) below), after initially being recognised at cost.

(c) Equity method

Under the equity method of accounting, the investments are initially recognized at cost and adjusted thereafter to recognize the Groups share of the post-acquisition profits or losses of the investee in profit and loss, and the Groups share of other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates are recognized as a reduction in the carrying amount of the investment.

When the Groups share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the Group does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity.

Unrealised gains on transactions between the Group and its associate and joint ventures are eliminated to the extent of the Groups interest in these entities. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of equity accounted investees have been changed where necessary to ensure consistency with the policies adopted by the Group.

The carrying amount of equity accounted investments are tested for impairment in accordance with the accounting policy.

(d) Changes in ownership interests

The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognized within equity.

When the Group ceases to consolidate or equity account for an investment because of a loss of control, joint control or significant influence, any retained interest in the entity is remeasured to its fair value with the change in carrying amount recognized in consolidated statement of profit and loss. This fair value becomes the initial carrying amount for the purposes of subsequent accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognized in other comprehensive income are reclassified to consolidated statement of profit and loss.

If the ownership interest in a joint venture or an associate is reduced but joint control or significant influence is retained, only a proportionate share of the amounts previously recognized in other comprehensive income are reclassified to profit or loss where appropriate.

The subsidiaries, enterprises controlled and associates considered in the restated consolidated financial statements are as follow:

		Extent of Holding*
Name of Party	As at March 31, 2025	As at March 31, 2024	As at March 31, 2023
(A) Subsidiary companies
i) Direct subsidiaries
Arum Real Estate Private Limited	53.70%	53.69%	53.69%
Armaan Real Estate Private Limited	100.00%	100.00%	99.99%
Dhiti Projects Private Limited	100.00%	100.00%	-
Dhyan Projects Private Limited Shares	100.00%	100.00%	-
Prasati Projects Private Limited	100.00%	100.00%	-
Roseate Real Estate Private Limited	100.00%	100.00%	-
Srajak Real Estate Private Limited	100.00%	100.00%	-
Sri Lotus Developers and Realty Holdings Private Limited	-	100.00%	-

 

		Extent of Holding*
Name of Party	As at March 31, 2025	As at March 31, 2024	As at March 31, 2023
Tryksha Real Estate Private Limited	75.00%	75.00%	-
Tryksha Projects Private Limited	-	100.00%	99.99%
Valuemart Real Estate Private Limited	100.00%	100.00%	-
Veera Desai Projects Private Limited	100.00%	100.00%	99.99%
Veer Savarkar Projects Private Limited	-	100.00%	87.99%
Zinnia Projects Private Limited	-	100.00%	99.99%
Ralco Projects Private Limited	-	-	99.99%
Richfeel Real Estate Private Limited	100.00%	100.00%	89.00%
Kunika Projects Private Limited	100.00%	-	-
ii) Step-down subsidiaries
Chandra Gupta Estates Private Limited	98.99%	98.99%	-
(B) Subsidiaries - limited liability partnership (LLP)
i) Direct control
Anam Projects LLP	99.99%	99.99%	99.89%
College Pictures LLP	-	-	60.00%
Neoteric Real Estate LLP	98.00%	98.00%	-
Shivshrushti Projects LLP	79.99%	79.99%	-
(C) Associates
Chandra Gupta Estates Private Limited	-	-	47.45%
Dhyan Projects Private Limited	-	-	33.30%
Orchid Value Realty Private Limited	-	-	50.00%
Veronica Project & Entertainment Private Limited	-	-	50.00%
Roseate Real Estate Private Limited	-	-	44.99%
Bombay Masti Films LLP	-	-	50.00%

*Rounded off to the lower decimal

Reconciliation of EBITDA and EBITDA Margin, ROCE and ROE EBITDA and EBITDA Margin

EBITDA is calculated as the restated profit for the period or year plus tax expense, finance cost, depreciation and amortization expenses less other income and excluding exceptional items. EBITDA provides information regarding operational profitability and efficiency of our Company.

(in million except stated otherwise)

Particulars	Fiscal 2025	Fiscal 2024	Fiscal 2023
Profit after tax (A)	2,278.86	1,198.09	162.88
Tax Expense (B)	789.36	419.71	57.92
Share of Profit / loss from
	-	-	(2.89)
Associates (C)
Profit before tax (D=A+B-C)	3,068.22	1,617.80	223.69
Add: Finance costs (E)	1.95	1.57	6.40
Add: Depreciation and amortisation expense (F)	15.44	12.21	9.07
Add: Exceptional Items (G)	-	-	-
Less: Other Income (H)	195.95	46.13	30.75
Earnings before interest, taxes, depreciation and amortisation expenses& exceptional items	2,889.66	1,585.45	208.41
(EBITDA) (Excluding other income) (I = D+E+F+G-H) Revenue from operations (J)	5,496.82	4,615.75	1,668.71
EBITDA Margin (EBITDA as a percentage of revenue from operations) (K = I/J) (%)	52.57%	34.35%	12.49%

ROCE

ROCE is defined as Operating EBIT (EBITDA less depreciation and amortization) divided by capital employed (Total equity plus total borrowings (current and non-current borrowings). EBITDA is calculated as profit / (loss) for the year, plus total tax expense (credit) for the year, finance costs and depreciation and amortization expenses, excluding other Income and share in profit/ (loss) from associates/joint ventures.

		Fiscal
Particulars
	2025	2024	2023
EBITDA (A)	2,889.66	1,585.45	208.41
Less:
Depreciation and amortisation (B)	15.44	12.21	9.07
Operating EBIT (C = A B)	2,874.22	1,573.24	199.34
Total equity (D)	9,338.25	1,704.73	476.42
Add:
Long Term Borrowing & Short Term
	1,221.29	4,282.35	3,289.28
Borrowing (E)
Capital Employed (F= D+E)	10,559.54	5,987.08	3,765.70
Return on capital employed ("ROCE")
	27.22%	26.28%	5.29%
(C/F * 100)

Principal Components of Statement of Profit and Loss Income

Our total income comprises revenue from operations and other income. We generate majority of our revenue from sales of projects. Other income comprises of (1) interest income from financial assets measured at amortised cost and fixed deposits with banks, income tax refund and unwinding of deferred interest income (2) other non-operating income like profit from sale of shares, share of profits from partnership firms and maintenance cost recovered.

Expenses

Our expenses comprise of cost of construction and development, changes in inventories of finished goods and work-in-progress, employee benefits expense, finance costs, depreciation and amortization expenses, and other expenses

Cost of construction and development

Cost of construction and development primarily includes land and development right expenses, construction cost, permission and approval fees, other construction cost, employee benefits expense and finance cost.

Changes in inventories of finished goods and work-in-progress

Changes in inventories of finished goods and work-in-progress denotes increase/decrease in inventories of construction material between opening and closing dates of a reporting period.

Employee Benefits Expense

Employee benefit expenses primarily include salaries and wages, gratuity expense, contribution to provident and other funds and staff welfare expenses.

Depreciation and Amortization Expense

Depreciation and amortization expense primarily include depreciation on property, plant and equipment like motor car, computers and software, furniture & fixtures, equipment and right of use asset, and depreciation on investment property.

Finance Costs

Finance costs include interest on term loan, unsecured loan, debentures, OCDs, lease liabilities, overdraft, bank guarantee charges, and other borrowing costs.

Other Expenses

Other expenses primarily comprise of legal & professional charges, rent, selling expenses like - stamp duty and registration charges, brokerage and GST expenses on sales, business promotion, miscellaneous expenses, rates & taxes, insurance expenses, electricity charges, office expenses, bank charges and statutory audit fees.

Profit for the Year

Profit for the year represents profit after tax.

Results of Operations

The following table sets forth select financial data from our statement of profit and loss for Fiscals 2025, 2024, and 2023, the components of which are also expressed as a percentage of total income for such periods.

			For Fiscal
	2025		2024			2023
Particulars		Percentage		Percentage			Percentage
	(in million)	of Total Income	(in million)	of Total Income		(in million)	of Total Income
Revenue :
Revenue from Operations (Net)	5,496.82	96.56%	4,615.75	99.01%		1,668.71	98.19%
Other Income	195.95	3.44%	46.13	0.99%		30.75	1.81%
Total Income Expenses :	5,692.77	100%	4,661.88	100.00%		1699.46	100.00%
Cost of Construction & development	2,448.99	43.02%	3,188.79	68.40%		1310.29	77.10%
Changes in inventories	(462.99)	(8.13)%	(567.69)	(12.18)%		(55.55)	(3.27)%
Employee benefits expense	125.50	2.20%	7.21	0.15%		10.00	0.59%
Finance costs	1.95	0.03%	1.57	0.03%		6.40	0.38%
Depreciation and amortization	15.44	0.27%	12.21	0.26%		9.07	0.53%
Other expenses	495.66	8.71%	408.64	8.77%		190.41	11.20%
Total Expenses	2,624.55	46.10%	3,050.73	65.44%		1470.62	86.53%
Profit /(loss) before share of profit of associates and income tax Tax Expense	3,068.22	53.90%	1,611.15	34.56%		228.84	13.47%
Current tax	771.22	13.55%	392.36	8.42%		97.57	5.74%
Short / (excess) provision of earlier years	(0.01)	(0.00%)	-	0.00%		(0.03)	(0.00%)
Deferred tax	18.15	0.32%	27.35	0.59%		(39.62)	(2.33%)
Total Tax Expense	789.36	13.87%	419.71	9.00%		57.92	3.41%
Share of profit / (loss) from associates	-	-	-	-		(2.89)	(0.17)%
Profit /(loss) for the year from the continuing operations	2,278.86	40.03%	1,191.44	25.56%		168.03	9.89%
Profit /(loss) for the year from discontinued operations (after tax)	-	-	6.65	0.14%		(5.15)	(0.30)%
Profit for the year from continuing and discontinued operations	2,278.86	40.03%	1,198.09	25.70%		162.88	9.58%
Other Comprehensive income for the year, net of tax	(0.49)	(0.01%)	(0.84)	(0.02%)		0.29	0.02%
Total comprehensive income for the year	2,278.37	40.02%	1,197.25	25.68%		163.17	9.60%

Fiscal 2025 compared to Fiscal 2024 Income

Our total income increased by 22.11% from 4,661.88 million in Fiscal 2024 to 5,692.77 million in Fiscal 2025, primarily due to an increase in our revenue from operations and other income as discussed below:

Revenue from operations

Our revenue from operations increased by 19.09% from 4,615.75 million in Fiscal 2024 to 5,496.82 million in

Fiscal 2025, primarily due to an increase in sales of projects by 17.79% from 4,615.75 million in Fiscal 2024 to 5,436.82 million and sale of services amounting to 60.00 million in Fiscal 2025. During Fiscal 2025, the Company had witnessed revenue growth from its project Signature which contributed revenue of 3,403.37 million in Fiscal 2025 which increased from 2,664.49 million in Fiscal 2024 and project Arc One which contributed revenue of 1,034.15 million in Fiscal 2025 which increased from 501.50 million in Fiscal 2024.

This revenue growth in Signature and Arc One was also due to increase in selling price wherein average selling price per square feet has increased to 69,115 in Fiscal 2025 from 39,063 in Fiscal 2024 for project Signature and to 43,246 for Fiscal 2025 from 34,619 in Fiscal 2024.

Other Income

Our other income increased by 324.74% from 46.13 million in Fiscal 2024 to 195.95 million in Fiscal 2025, primarily as a result of an increase in interest income from fixed deposits with banks from 44.37 million in Fiscal 2024 to 155.18 million in Fiscal 2025, unwinding of deferred interest income of 0.95 million in Fiscal 2025 and recovery of maintenance cost of 33.66 million in Fiscal 2025, interest income on financial assets measured at amortised cost from 0.22 million in Fiscal 2024 to 0.23 million in Fiscal 2025,increase in interest income from others from 0.02 million in Fiscal 2024 to 0.84 million in Fiscal 2025, income tax refund of 0.32 million in Fiscal 2024 to 1.40 million in Fiscal 2025. This was offset by a decrease in profit from sale of shares of 0.85 in Fiscal 2024 to NIL in Fiscal 2025, and a share of profits from partnership firms from 0.11 million in Fiscal 2024 to NIL in Fiscal 2025.

Expenses

Our total expenses, which primarily included cost of construction and development, changes in inventories of finished goods and project work-in-progress, employee benefits expense, finance costs. depreciation and amortization expenses, and other expenses, decreased by 13.97% from 3,050.73 million in Fiscal 2024 to

2,624.55 million in Fiscal 2025.

Cost of construction and development

Our Cost of construction and development decreased by 23.20% from 3,188.79 million in Fiscal 2024 to

2,448.99 million in Fiscal 2025, primarily due to a decrease in Construction cost from 1,942.21 million in Fiscal 2024 to 1,204.56 million in Fiscal 2025, a decrease in Permission and approval fees from 362.11 million in Fiscal 2024 to 303.14 million in Fiscal 2025, an increase in Other construction cost from 169.10 million in

Fiscal 2024 to 229.51 million in Fiscal 2025, a decrease in Employee benefits expense from 84.16 million in Fiscal 2024 to 38.01 million in Fiscal 2025 and an increase in Finance cost from 38.48 million in Fiscal 2024 to 55.55 million in Fiscal 2025.

Changes in inventories of finished goods and work-in-progress

There was a net decrease in inventory of 567.69 million in Fiscal 2024, as compared to a decrease in inventory of 462.99 million in Fiscal 2025.

Employee Benefits Expense

Our employee benefits expense, which primarily included salaries & wages, gratuity expenses, and staff welfare expenses which was transferred to construction and development was capitalised, increased by 1,640.62% from 7.21 million in Fiscal 2024 to 125.50 million in Fiscal 2025 due to an increase in salaries & wages from 88.66 million in Fiscal 2024 to 157.45 million in Fiscal 2025, increase in gratuity expenses from 2.56 million in Fiscal

2024 to 3.87 million in Fiscal 2025, increase in staff welfare expenses from 0.14 million in Fiscal 2024 to 2.07 million in Fiscal 2025 and contribution to provident and other funds of 0.12 million in Fiscal 2025. This was offset by a decrease in capitalisation to cost of construction and development from 84.16 million in Fiscal 2024 to 38.01 million in Fiscal 2025.

Finance Costs

Our finance costs increased by 23.89% from 1.57 million in Fiscal 2024 to 1.95 million in Fiscal 2025 primarily due an increase in capitalisation to cost of construction and development from 38.48 million in Fiscal 2024 to

55.55 million in Fiscal 2025, a decrease in interest expenses on Term Loan from 11.09 million in Fiscal 2024 to NIL in Fiscal 2025, and a decrease in interest on debentures from 15.50 million in Fiscal 2024 to 11.49 million in Fiscal 2025. This was offset by an increase in interest expenses on Unsecured Loan from 12.16 million in Fiscal 2024 to 40.98 million in Fiscal 2025, and an increase in interest expenses on OCDs from NIL in Fiscal 2024 to 0.66 million in Fiscal 2025.

Depreciation and Amortization Expense

Our depreciation and amortization expense increased by 26.47% from 12.21 million in Fiscal 2024 to 15.44 million in Fiscal 2025 primarily due to an increase in depreciation on Property, plant and equipment and Amortisation on Right of use asset.

Other Expenses

Our other expenses accounted for 8.77% and 8.71% of our total income in Fiscals 2024 and 2025, respectively. Our other expenses increased by 21.29% from 408.64 million in Fiscal 2024 to 495.66 million in Fiscal 2025 to, primarily due to the following: i. An increase in stamp duty and registration charges from 258.68 million in Fiscal 2024 to 308.85 million in Fiscal 2025 ii. A decrease in brokerage from 48.29 million in Fiscal 2024 to 48.14 million in Fiscal 2025 iii. An increase in business promotion expenses from 1.39 million in Fiscal 2024 to 8.98 million in Fiscal 2025 iv. An increase in corporate social responsibility expenses from 3.70 million in Fiscal 2024 to 13.86 million in Fiscal 2025.

Total Tax Expense

Our total income tax expense increased by 88.07% from 419.71 million in Fiscal 2024 to 789.36 million in Fiscal 2025, due to an increase in Current tax from 392.36 million in Fiscal 2024 to 771.22 million in Fiscal 2025 which was offset by a decrease in deferred tax amounting from 27.35 million in Fiscal 2024 to 18.15 million in Fiscal 2025.

Profit for the Year

The revenue from operations increased by 19.09% from 4,615.75 million in Fiscal 2024 to 5,496.82 million in

Fiscal 2025, primarily due to an increase in sales of projects and sale of services. During Fiscal 2025, the Company had witnessed revenue growth from its project Signature which contributed revenue of 3,403.37 million in Fiscal 2025 which increased from 2,664.49 million in Fiscal 2024 and project Arc One which contributed revenue of 1,034.15 million in Fiscal 2025 which increased from 501.50 million in Fiscal 2024. This revenue growth in Signature and Arc One was also due to increase in selling price wherein average selling price per square feet has increased to 69,115 in Fiscal 2025 from 39,063 in Fiscal 2024 for project Signature and to 43,246 for Fiscal

2025 from 34,619 in Fiscal 2024. As a result of the foregoing factors, the profit for the year in Fiscal 2025 was

2,278.86 million compared to a profit for the year of 1,198.09 million in Fiscal 2024 which is an increase by 90.21%. In comparison of total income, Profit for the Year increased from 25.70% of total income in Fiscal 2024 to 40.03% of total income in Fiscal 2025.

Fiscal 2024 compared to Fiscal 2023 Income

Our total income increased by 174.32% from 1699.46 million in Fiscal 2023 to 4,661.88 million in Fiscal 2024, primarily due to an increase in our revenue from operations and other income as discussed below:

Revenue from operations

Our revenue from operations increased by 176.61% from 1,668.71 million in Fiscal 2023 to 4,615.75 million in Fiscal 2024, primarily due to an increase in revenue from sale of residential and commercial units. During Fiscal 2024, the Company added one commercial project Arc One which contributed an additional revenue of

501.50 million. Further, Fiscal 2024 earned higher revenue from the project Ananya and Ayana to the tune of 250.36 million and 63.57 million respectively in comparison to Fiscal 2023. However, the Company has witnessed highest growth from its project Signature which contributed an additional revenue to the tune of

2,131.61 million in Fiscal 2024. This revenue growth in Signature was primarily due to completion of the project in June 2023 which attracted various customers as well as increase in selling price wherein average selling price per square feet has increased to 39,063 in Fiscal 2024 against 17,430 for Fiscal 2023.

Other Income

Our other income increased by 50.04% from 30.75 million in Fiscal 2023 to 46.13 million in Fiscal 2024, primarily as a result of an increase in interest income on financial assets measured at amortised cost from 0.10 million in Fiscal 2023 to 0.22 million in Fiscal 2024, interest income from fixed deposits with banks from 29.12 million in Fiscal 2023 to 44.37 million in Fiscal 2024, interest income from others from 0.01 million in Fiscal 2023 to 0.02 million in Fiscal 2024, profit from sale of shares was NIL in Fiscal 2023 to 0.85 million in Fiscal 2024, and a share of profits from partnership firms from 0.07 million in Fiscal 2023 to 0.11 million in Fiscal

2024. This was offset by a decrease in interest income from income-tax refund from 1.21 million in Fiscal 2023 to 0.32 million in Fiscal 2024. Rental income remained constant at 0.24 million for Fiscal 2023 and Fiscal 2024.

Expenses

Our total expenses, which primarily included cost of construction and development, changes in inventories of finished goods and project work-in-progress, employee benefits expense, finance costs. depreciation and amortization expenses, and other expenses, increased by 107.45% from 1470.62 million in Fiscal 2023 to 3,050.73 million in Fiscal 2024.

Cost of construction and development

Our Cost of construction and development increased by 143.36% from 1,310.29 million in Fiscal 2023 to 3,188.79 million in Fiscal 2024, primarily due to an increase in Land and development right expenses from 113.70. million in Fiscal 2023 to 592.73 million in Fiscal 2024, an increase in Construction cost from 990.89 million in Fiscal 2023 to 1,942.21 million in Fiscal 2024, an increase in Permission and approval fees from 48.61 million in Fiscal 2023 to 362.11 million in Fiscal 2024, an increase in Other construction cost from 62.14 million in Fiscal 2023 to 169.10 million in Fiscal 2024, an increase in Employee benefits expense from 65.78 million in Fiscal 2023 to 84.16 million in Fiscal 2024 and an increase in Finance cost from 29.17 million in Fiscal 2023 to 38.48 million in Fiscal 2024

Changes in inventories of finished goods and work-in-progress

There was a net decrease in inventory of 567.69 million in Fiscal 2024, as compared to net decrease in inventory of 55.55 million in Fiscal 2023.

Employee Benefits Expense

Our employee benefits expense, which primarily included salaries & wages, gratuity expenses, and staff welfare expenses which was transferred to construction and development was capitalised, decreased by 27.89% from 10.00 million in Fiscal 2023 to 7.21 million in Fiscal 2024 due to an increase in capitalisation to cost of construction and development from 65.78 million in Fiscal 2023 to 84.16 million in Fiscal 2024. This was offset by an increase in salaries & wages from 73.43 million in Fiscal 2023 to 88.66 million in Fiscal 2024, increase in gratuity expenses from 2.21 million in Fiscal 2023 to 2.56 million in Fiscal 2024, and a decrease in staff welfare expenses from 0.15 million in Fiscal 2023 to 0.14 million in Fiscal 2024.

Finance Costs

Our finance costs decreased by 75.43% from 6.40 million in Fiscal 2023 to 1.57 million in Fiscal 2024 primarily due an increase in capitalisation to cost of construction and development from 29.17 million in Fiscal 2023 to 38.48 million in Fiscal 2024, a decrease in interest expenses on Term Loan from 20.45 million in Fiscal 2023 to 11.09 million in Fiscal 2024, a decrease in bank guarantee charges from 0.33 million in Fiscal 2023 to 0.15 million in Fiscal 2024, and a decrease in other finance costs from 0.36 million in Fiscal 2023 to 0.05 million in Fiscal 2024. This was offset by an increase in interest expenses on Unsecured Loan from 5.57 million in Fiscal 2023 to 12.16 million in Fiscal 2024, an increase in interest expenses on debentures from 8.03 million in Fiscal 2023 to 15.50 million in Fiscal 2024, and an increase in interest expenses on Lease Liabilities from 0.83 million in Fiscal 2023 to 1.11 million in Fiscal 2024.

Depreciation and Amortization Expense

Our depreciation and amortization expense increased by 34.54% from 9.07 million in Fiscal 2023 to 12.21 million in Fiscal 2024 primarily due to an increase in depreciation on Property, plant and equipment and Amortisation on Right of use asset.

Other Expenses

Our other expenses accounted for 11.20% and 8.77% of our total income in Fiscals 2023 and 2024, respectively. Our other expenses increased by 114.61% from 190.41 million in Fiscal 2023 to 408.64 million in Fiscal 2024, primarily due to the following: v. An increase in stamp duty and registration charges from 83.39 million in Fiscal 2023 to 258.68 million in Fiscal 2024 vi. An increase in brokerage from 24.55 million in Fiscal 2023 to 48.29 million in Fiscal 2024 vii. An increase in GST expenses on sales from 76.27 million in Fiscal 2023 to 88.60 million in Fiscal 2024 viii. An increase in corporate social responsibility expenses from 1.30 million in Fiscal 2023 to 3.70 million in Fiscal 2024

Total Tax Expense

Our total income tax expense increased by 624.66% from 57.92 million in Fiscal 2023 to 419.71 million in Fiscal 2024, due to an increase in Current tax from 97.57 million in Fiscal 2023 to 392.36 million in Fiscal 2024, deferred tax amounting from 27.35 million to (39.62) million in Fiscal 2023.

Profit for the Year

The revenue from operations increased by 176.61% from 1,668.71 million in Fiscal 2023 to 4,615.75 million in Fiscal 2024, primarily due to an increase in sales of projects. During Fiscal 2024, the Company added one commercial project Arc One which contributed an additional revenue of 501.50 million. Further, during Fiscal 2024, the Company earned higher revenue from the project Ananya and Ayana to the tune of 250.36 million and 63.57 million respectively in comparison to Fiscal 2023. However, the Company has witnessed higher growth from its project Signature which contributed an additional revenue to the tune of 2,131.61 million in Fiscal 2024.

This revenue growth in Signature was primarily due to completion of the project in June 2023 which attracted various customers as well as an increase in selling price wherein average selling price per square feet has increased to 39,063 in Fiscal 2024 against 17,430 for Fiscal 2023. As a result of the foregoing factors, the profit for the year in Fiscal 2024 was 1,198.09 million compared to a profit for the year of 162.88 million in Fiscal 2023 which is an increase by 635.57%. In comparison of total income, Profit for the Year increased from 9.58% of total income in Fiscal 2023 to 25.70% of total income in Fiscal 2024.

Liquidity and Capital Resources

We have historically financed the expansion of our business and operations primarily through equity capital and debt from promoter and promoter group, inter-corporate loans and debt from the partners in projects and other inter-corporate deposits including others loans.

Cash Flows

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

( in million)

		For Fiscal
Particulars
	2025	2024	2023
Net cash generated from operating activities	(195.00)	461.56	711.36
Net cash (used in)/generated from investing activities	158.63	276.61	(147.70)
Net cash (used in)/generated from financing activities	2,499.55	(442.71)	(110.37)
Net (decrease)/ increase in Cash and Cash equivalents	2,463.18	295.46	453.29
Cash and cash equivalents at the end of the year	3,481.80	1,018.62	723.16

Operating Activities

Net cash flow generated from operating activities in Fiscal 2025 was (195.00) million, while our operating profit before working capital changes was 2,931.67 million. The difference was primarily attributable to an increase in trade receivables by 1,621.26 million, an increase in inventories by 252.17 million, an increase in non-current financial assets by 13.19 million, increase in current financial assets by 272.82 million, an increase in other current assets by 40.35 million, an increase in other financial liabilities (current and non-current) by 0.36 million, a decrease in trade payables by 27.06 million, a decrease in other current liabilities by 159.62 million, and taxes paid of 740.57 million. Net cash flow generated from operating activities in Fiscal 2024 was 461.56 million, while our operating profit before working capital changes was 1,588.28 million. The difference was primarily attributable to an increase in trade receivables by 303.09 million, an increase in inventories by 468.21 million, an increase in non-current financial assets by 28.29 million, decrease in current financial assets by 129.35 million, a decrease in other current assets by 176.10 million, an increase in other financial liabilities (current and non-current) by 62.27 million, an increase in trade payables by 59.41 million, a decrease in other current liabilities by 393.10 million, and taxes paid of 361.16 million. Net cash flow generated from operating activities in Fiscal 2023 was 711.36 million, while our operating profit before working capital changes was 210.87 million. The difference was primarily attributable to an increase in trade receivables by 4.09 million, an increase in inventories by 194.86 million, an increase in non-current financial assets by 2.86 million, decrease in current financial assets by 245.40 million, an increase in other current assets by 122.64 million, an increase in other financial liabilities (current and non-current) by 14.44 million, an increase in trade payables by 36.02 million, an increase in other current liabilities by 627.66 million, and taxes paid of 98.58 million.

Investing Activities

Net cash flow generated from investing activities in Fiscal 2025 was 158.63 million which primarily comprised of purchase of property, plant and equipment amounting to (12.39) million, loan granted amounting to (102.53) million, repayment of loan received amounting 150.34 million, investment in fixed deposits amounting to (18.19) million, liquidation of fixed deposit amounting to 4.92 million and interest received of 136.47 million. Net cash flow generated from investing activities in Fiscal 2024 was 276.61 million, which primarily comprised of purchase of property, plant and equipment amounting to (5.45) million, loan granted amounting to (24.02) million, repayment of loan received of 310.79 million, payment for acquisition of subsidiary, net of cash acquired of 179.03 million, sale of equity shares amounting to 0.33 million, investment in fixed capital in LLP amounting to (0.18) million, withdrawal of fixed capital in LLP amounting to 0.11 million, investment in fixed deposits amounting to (286.53) million, liquidation of fixed deposit amounting to 65.06 million and interest received of

37.47 million.

Net cash flow used in investing activities in Fiscal 2023 was 147.70 million, which primarily comprised of purchase of property, plant and equipment amounting to (7.08) million, loan granted amounting to (481.71) million, repayment of loan received of 350.10 million, payment for acquisition of subsidiary, net of cash acquired of 0.62 million, sale of equity shares amounting to 0.05 million, investment in fixed deposits amounting to (38.12) million, and interest received of 28.44 million.

Financing Activities

Net cash flow generated from financing activities in Fiscal 2025 was 2,499.55 million, which comprised of proceeds from equity shares issued(including premium and net off issue expenses) issued of 5,363.88 million, proceeds from unsecured borrowings of 413.90 million, proceeds from issue of OCD by Subsidiaries of 500.00 million, repayment of unsecured borrowing amounted to (3,427.55) million, repayment of Debentures by Subsidiaries of (280.00) million, interest paid of (60.64) million and payment of lease liability of (10.04) million. Net cash flow used in financing activities in Fiscal 2024 was (442.71) million, which primarily comprised of proceeds from unsecured borrowings amounting to 326.62, million repayment of unsecured borrowings amounting to (496.63) million, issuance of debentures by subsidiaries amounting to 100.00 million, repayment of debentures by subsidiaries amounting to (150.00) million, and repayment of term loan amounting to (190.00) million, payment of lease liability amounting to (8.21) million, and interest paid amounting to (24.49) million. Net cash flow used in financing activities in Fiscal 2023 was (110.37) million, which primarily comprised of proceeds from borrowings amounting to 296.02 million, repayment of borrowings amounting to (396.53) million, term loan taken amounting to 20.00 million payment of lease liability amounting to (4.50) million, and interest paid amounting to (25.36) million.

Indebtedness

As of June 30, 2025, we had total outstanding financial indebtedness of 1,488.70 million.

The following table sets forth certain information relating to our outstanding indebtedness as of June 30, 2025, and our repayment obligations in the periods indicated:

For further information on our agreements governing our outstanding indebtedness, see "Financial Indebtedness" on page 389.

Contractual Obligations

The table below sets forth our contractual obligations as of March 31, 2025. These obligations primarily relate to our contractual maturities of financial liabilities such as borrowings, trade payables lease liabilities and other financial liabilities.

( in million)

Particulars	Less than 1 year	1 to 5 years	Above 5 years	Total
Borrowings	927.70	16.00	232.59	1,221.29
Lease Liabilities	9.26	6.86	-	16.12
Trade Payables	117.97	-	-	117.97
Other financial liabilities	149.69	107.23	133.08	389.99
Total	1,249.62	130.09	365.67	1,745.37

Contingent Liabilities

As of March 31, 2025, contingent liabilities as per Ind AS 37 as indicated in our Restated Consolidated Financial Information are as follows:

Particulars	Amount (in million)
Bank Guarantee & Lien Fixed Deposit	503.31
Letter of Credit	-

For further information on our contingencies and commitments, see "Restated Consolidated Financial Information Note 39" on page 278.

Related Party Transactions

We enter into various transactions with related parties in the ordinary course of business. These transactions principally include purchase of goods and services, director renumeration, among others. Related parties with whom transactions have taken place during the period / year include our subsidiaries, associates, key managerial personnel, senior managerial personnel, among others. For Fiscal 2025, Fiscal 2024, and Fiscal 2023, the aggregate amount of such related party transactions reflected in the consolidated restated statement of profit and loss was 78.41 million, 171.58 million and 100.43 million, respectively. The percentage of the aggregate value such related party transactions to our revenue from operations for the Fiscal 2025, Fiscal 2024 and Fiscal 2023 was 1.43%, 3.72% and 6.02%, respectively. For further information, see "Restated Consolidated Financial Information Note 50" on page 278.

Quantitative and Qualitative Disclosures about Market Risk

The Companys principal financial liabilities comprise mainly of borrowings, lease liability, trade and other payables. The main purpose of these financial liabilities is to finance the Companys operations. The Companys principal financial assets include loans and advances, trade and other receivables, cash and cash equivalents and Other financial assets. The Company is exposed through its operations to the following financial risks: - Market risk - Credit risk, and - Liquidity risk. The Companys focus is to ensure liquidity which is sufficient to meet the Companys operational requirements. The Company monitors and manages key financial risks so as to minimise potential adverse effects on its financial performance. The Company has a risk management policy which covers the risks associated with the financial assets and liabilities. The details for managing each of these risks are summarised ahead

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risks: interest rate risk, currency risk and other price risk. Financial instruments affected by market risk includes borrowings, investments, trade payables, trade receivables, loans and derivative financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

A) Foreign currency risk

It is the risk that the fair value or future cash flows of an exposure will fluctuate because of the changes in foreign exchange rates. There is no foreign currency risk as there is no outstanding foreign currency exposure at the year end.

B) 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 has taken term loans from banks and financial institutions. The company does not expose to the risk of changes in market interest rates as companys long and short term debt obligations are of fixed interest rate. Therefore, there are no interest rate risks, since neither the carrying amount nor the future cash flows will fluctuate because of change in market interest rates. The companys variable rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in IND AS 107, since neither the carrying amount nor the future cash flow will fluctuate because of a change in market interest rates.

Credit Risk

Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risks arises from cash and cash equivalents, deposits with banks, financial institutions and others, as well as credit exposures to customers, including outstanding receivables. The company considers factors such as track record, size of institutions, market reputation and service standards to select banks with which balances and deposits are maintained. the balances and fixed deposits are generally maintained with the banks with whom the company has regular transactions. Further, the company does not maintain significant cash in hand other than those required for its day to day operations. Considering the same, the company is not exposed to expected credit loss of cash and cash equivalent and bank balances. Credit risks related to receivables resulting from the sale of property is managed by requiring customers to pay the dues before transfer of ownership, therefore, substantially eliminating the Companys credit risk in this respect.

In respect of trade and other receivables and other current and non current assets, there are no indicators as at the year end that defaults in payment obligation will occur.

Liquidity Risk Management

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows. The Company generates sufficient cash flows from current operations which together with the available cash and cash equivalents provide liquidity both in the short-term as well as in the long-term. Note (ii) below sets out details of additional undrawn facilities that the Company has at its disposal to further reduce liquidity risk. (i) Expected maturity for financial liabilities

( in million)

Particulars	Less than 1 year	1 to 5 years	Above 5 years	Total
As at March 31, 2025
Borrowings	927.70	16.00	232.59	1,221.29
Lease Liabilities	9.26	6.86	-	16.12
Trade payables
-total outstanding dues of micro enterprise and small enterprise	27.73	-	-	27.73
-total outstanding dues of creditors other than micro enterprise and small enterprise	90.24	-	-	90.24
Other financial liabilities	149.69	107.23	133.08	389.99
As at March 31, 2024
Borrowings	3,966.35	316.00	-	4,282.35
Lease Liabilities	5.63	0.81	-	6.44
Trade payables
-total outstanding dues of micro enterprise and small enterprise	32.05	-	-	32.05
-total outstanding dues of creditors other than micro enterprise and small enterprise	112.96	-	-	112.96
Other financial liabilities	113.95	13.16	-	127.11
As at March 31, 2023
Borrowings	2,991.50	297.78	-	3,289.28
Lease Liabilities	8.09	5.22	-	13.31
Trade payables
-total outstanding dues of micro enterprise and small enterprise	54.45	-	-	54.45
-total outstanding dues of creditors other than micro enterprise and small enterprise	23.43	-	-	23.43
Other financial liabilities	23.09	12.08	-	35.17

Fair value measurements

The carrying amount of financial assets and financial liabilities measured at amortised cost in the standalone financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

( in million)

		Carrying amount				Fair value
As at March 31st, 2025	FVTPL	FVOCI	Amortised cost	Total	Level 1	Level 2	Level 3
Financial assets
Non-current
Investments	-	-	-	-	-	-	-
Loans	-	-	-	-	-	-	-
Other financial assets	-	-	105.90	105.90	-	-	-
Current
Trade receivables	-	-	2,047.57	2,047.57	-	-	-
Cash and cash equivalents	-	-	3,481.80	3,481.80	-	-	-
Other bank balance	-	-	323.27	323.27	-	-	-
Loans	-	-	250.25	250.25	-	-	-
Other financial assets current	-	-	349.71	349.71	-	-	-
Total	-	-	6,558.50	6,558.50	-	-	-
Financial liabilities
Non-current
Borrowings	232.59	-	16.00	248.59	-	232.59	-
Lease liabilities	-	-	6.86	6.86	-	-	-
Other financial liabilities	240.31	-	-	240.31	-	240.31	-
Current
Borrowings	-	-	972.70	972.70	-	-	-
Lease liabilities	-	-	9.26	9.26	-	-	-
Trade payables	-		117.97	117.97	-	-	-
Other financial liabilities	26.81		122.88	149.69	-	26.81	-
Total	499.70	-	1,245.68	1,745.38	-	499.70	-

( in million)

		Carrying Amount				Fair Value
As at March 31st, 2024	FVTPL	FVOCI	Amortised Cost	Total	Level 1	Level 2	Level 3
Financial assets
Non-current
Investments	-	-	-	-	-	-	-
Loans	-	-	1.93	1.93	-	-	-
Other financial assets	-	-	177.66	177.66	-	-	-
Current
Trade receivables	-	-	426.31	426.31	-	-	-
Cash and cash equivalents	-	-	1,018.62	1,018.62	-	-	-
Other bank balance	-	-	224.03	224.03	-	-	-
Loans	-	-	296.14	296.14	-	-	-
Other financial assets current	-	-	58.96	58.96	-	-	-
Total	-	-	2,203.65	2,203.65	-	-	-
Financial liabilities
Non-current
Borrowings	-	-	316.00	316.00	-	-	-
Lease liabilities	-	-	0.81	0.81	-	-	-
Other financial liabilities	-	-	13.16	13.16	-	-	-
Current
Borrowings	-	-	3,966.35	3,966.35	-	-	-
Lease liabilities	-	-	5.63	5.63	-	-	-
Trade payables	-	-	145.00	145.00	-	-	-
Other financial liabilities	-	-	113.95	113.95	-	-	-
Total	-	-	4,560.90	4,560.90	-	-	-

 

		Carrying Amount				Fair Value
As at March 31st, 2023	FVTPL	FVOCI	Amortised Cost	Total	Level 1	Level 2	Level 3
Financial assets
Non-current
Investments	-	-	0.00	0.00	-	-	-
Loans	-	-	-	-	-	-	-
Other financial assets	-	-	41.01	41.01	-	-	-
Current
Trade receivables	-	-	104.44	104.44	-	-	-
Cash and cash equivalents	-	-	723.16	723.16	-	-	-
Other bank balance	-	-	37.35	37.35	-	-	-
Loans	-	-	1,048.24	1,048.24	-	-	-
Other financial assets current	-	-	106.31	106.31	-	-	-
Total	-	-	2,060.51	2,060.51	-	-	-
Financial liabilities
Non-current
Borrowings	-	-	297.78	297.78	-	-	-
Lease liabilities	-	-	5.22	5.22	-	-	-
Other financial liabilities	-	-	12.08	12.08	-	-	-
Current
Borrowings	-	-	2,991.50	2,991.50	-	-	-
Lease liabilities	-	-	8.09	8.09
Trade payables	-	-	77.88	77.88	-	-	-
Other financial liabilities	-	-	945.55	945.55	-	-	-
Total	-	-	4,338.10	4,338.10	-	-	-

The financial instruments are categorised into three levels based on the inputs used to arrive at fair value measurements as described below:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities

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

Level 3: Inputs based on unobservable market data

Capital Expenditures

The following table sets forth our payment towards purchase of property, plant and equipment, investment property in addition to ROU for the periods indicated:

(in million)

Particulars	Fiscal 2025	Fiscal 2024	Fiscal 2023
Property, plant and equipment	32.72	6.88	24.51
Total	32.72	6.88	24.51

For further information, see "Restated Consolidated Financial Information" on page 278.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements, derivative instruments or other relationships with other entities that would have been established for the purpose of facilitating off-balance sheet arrangements.

Changes in accounting policies

There have been no changes to the accounting policies of the Company during the financial years ended March 31, 2023, March 31, 2024 and March 31, 2025 except to the extent of differences in accounting policies adopted due to the effect of transition from IGAAP to Ind AS or where a newly issued accounting standard, if initially adopted or a revision to an existing Ind AS requires a change in the accounting policy hitherto in use. Reconciliations and explanations of the effect of the transition from IGAAP to Ind AS on the companys balance sheet, statement of profit & loss and statement of cash flow are provided in Note No. 2B, 2C and 2D of Annexure - V of Restated Consolidated Financial statements. Management evaluates all recently issued or revised Ind AS on an ongoing basis.

Auditor observations

There are no qualifications, reservations and adverse remarks by our Statutory Auditors in our Restated Consolidated Financial Statements.

Significant Economic Changes

Other than as described above, to the best of the knowledge of our management, there are no other significant economic changes that materially affect or are likely to affect income from continuing operations. For further details, please see "Our Business" and "Risk Factors" on pages 198 and 35, respectively.

Future relationship between cost and income

Other than as described in ‘Risk Factors, ‘Our Business and ‘Managements Discussion and Analysis of Financial Condition and Results of Operations on pages 35, 198 and 368, respectively, there are no known Factors that might affect the future relationship between costs and revenues.

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 "Managements Discussion and Analysis of Financial Condition and Results of Operations" on page 368 and the uncertainties described in the section titled "Risk Factors" beginning on page 35. 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.

Segment Reporting

Our Company only operates 1 segment

Extent to which Material Increases in Net Sales or Revenue are due to Increased Sales Volume, Introduction of New Products or Services or Increased Sales Prices

Changes in revenue in the last three Financial Years are as described in "Managements Discussion and Analysis of Financial Condition and Results of Operations - Fiscal 2025 compared with Fiscal 2024 Revenue from Operations" and "Managements Discussion and Analysis of Financial Condition and Results of Operations - Fiscal 2024 compared with Fiscal 2023 - Revenue from Operations" above on pages 381 and 379, respectively.

Seasonality

Our business is not seasonal in nature.

Competitive Conditions

We expect to continue to compete with existing and potential competitors. For details, please refer to the discussions of our competition in the sections "Risk Factors", "Industry Overview" and "Our Business" on pages 35, 152 and 198, respectively.

Significant Developments after March 31, 2025 that may affect our future results of operations.

Except as set out above and elsewhere in this Red Herring Prospectus, no developments have come to our attention since the date of the Restated Consolidated Financial Information as disclosed in this Red Herring Prospectus which materially and adversely affect or are likely to materially and adversely affect our operations or profitability, or the value of our assets or our ability to pay our material liabilities within the next twelve months.