Technocraft Ventures Ltd Management Discussions

Our financial year ends on March 31 of each year, and references to a particular fiscal period are to the 12 months ended March 31 of that year. All references to a year are to that Financial Year, unless otherwise noted.

Some of the information contained in this section, including information with respect to our strategies, contain forward-looking statements that involve risks and uncertainties. You should read the section titled "Forward Looking Statements" beginning on page 32 for a discussion of the risks and uncertainties related to those statements and also the section titled "Risk Factors" and "Our Business" beginning on pages 33 and 249, respectively, for a discussion of certain factors that may affect our business, results of operations and financial condition. The actual results of the Company may differ materially from those expressed in or implied by these forward-looking statements.

Unless otherwise stated, references to "the Company", "our Company", "we", "us", and "our" are to Technocraft Ventures Limited.

Business Overview

We are a multidisciplinary public infrastructure development company engaged in the execution of turnkey Engineering, Procurement and Construction ("EPC") contracts. We operate across various infrastructure segments, including Water & Wastewater Infrastructure such as Water Supply Scheme Projects ("WSSPs"), Sewerage Networks, Sewerage Treatment Plants ("STPs"), Wastewater Treatment Plants ("WWTPs"), Transmission mains, Reservoirs, Trenchless & Micro tunnelling Works, Roads and Highways work, Electrical Transmission work, Urban Infrastructure which includes sector-level planning and execution of residential

building projects and Operation and Maintenance ("O&M") of public utilities. We execute projects primarily for state governments and government agencies across Northern & Central India, including Uttar Pradesh, Uttarakhand, Rajasthan and the National Capital Territory of Delhi. Recently, we have expanded our footprint in the State of Madhya Pradesh, Bihar and Odisha.

Our project execution model is predominantly tender-based, with contracts awarded by state agencies, public works departments, urban local bodies, and other government bodies. We operate across multiple project locations and operate through dedicated site teams aligned with the nature and geography of individual contracts.

Incorporated in the year 1998, our Company commenced operations in Uttar Pradesh with residential and road construction projects, including the development of planned housing colonies, sector-level layouts, and execution of road construction, widening and strengthening works under Public Works Departments ("PWD") and National Highways programs. These early projects laid the foundation for our subsequent diversification into water supply, wastewater management, and public utility infrastructure.

We have executed projects under key central and state-sponsored schemes including the Atal Mission for Rejuvenation and Urban Transformation ("AMRUT"), Jawaharlal Nehru National Urban Renewal Mission ("JNNURM"), Urban Infrastructure Development Scheme in Satellite Towns ("UIDSST"), Namami Gange Programme ("Namami Gange"), Jal Jeevan Mission ("JJM"), and Pradhan Mantri Gram Sadak Yojana ("PMGSY"). We also have experience in implementing infrastructure projects funded by Asian Development Bank ("ADB"), which require compliance with rigorous technical and environmental standards.

Our integrated in-house capabilities span civil construction, mechanical and electrical integration, and commissioning. These enable us to offer comprehensive infrastructure solutions from concept to delivery. Additionally, we support long-term asset sustainability through our operations and maintenance ("O&M") services across WWTP, STP and Road projects, reinforcing our lifecycle approach to public infrastructure.

Our growth and strategic direction has significantly benefited from the leadership of our Managing Director, Mr. Sanjay Tyagi, who joined the Company in April 2007. His professional journey began at the Ghaziabad Development Authority, where he served as an Engineer from January 1990 to March 2007. His expertise in civil engineering and infrastructure development, combined with his extensive experience in government contract procurement and execution, has been crucial to the companys success. He is responsible for our Companys operations including, procurement, strategic planning, project execution oversight, quality control, and project delivery, ensuring successful project execution and that the company maintains its high standards of performance. Under his guidance, we diversified into specialized EPC segments, notably entering wastewater treatment infrastructure through our strategic partnership in M/s Ultratech Engineers, a multi-party partnership firm instituted pursuant to a deed executed in March 2009 (with effect from January 25, 2009), which was subsequently acquired by our Company pursuant to a business transfer agreement dated June 02, 2016. This partnership was instrumental in enhancing our technical capabilities and allowed us to qualify for larger, complex infrastructure tenders.

Services Offered:

Principal Factors Affecting Our Results of Operations

Our financial performance and results of operations are influenced by a number of important factors, some of which are beyond our control, including without limitation, intense global and domestic competition, general economic conditions, changes in conditions in the regional markets in which we operate, changes in costs of supplies, and evolving government regulations and policies. Some of the more important factors are discussed below, as well as in the section titled "Risk Factors " beginning on page 3 3.

Increasing Demand for Working Capital Requirements

Our operations across infrastructure segments, including water and wastewater projects, roads, electrical networks, and civil construction are inherently working capital intensive due to significant upfront expenses in procurement, mobilization, and project execution. As per our restated consolidated financial Information, our working capital requirements for the financial year ended March 31, 2026, March 31, 2025 and March 31, 2024 amounted to ? 1,338.16 million, ? 1,400.09 million and ? 1,280.66 million, respectively.

Further, our working capital requirements for Financial Year 2027 are estimated at ? 2,909.29 million out of which an amount of ? 1,500.00 million will be funded out of the Net Proceeds from issue of fresh equity shares in financial year 2027, whereas the balance, if any, would be arranged from our internal accruals and/or borrowings. For details of our working capital requirements and estimation, kindly refer "Objects of the Offer" beginning on page 136.

Cost and availability of Raw material, labour and other inputs

Our operations across infrastructure segments including wastewater treatment, water supply schemes, roads, housing, electrical works, and microtunneling require significant consumption of raw materials, construction equipment, and skilled and unskilled labour. Inputs such as steel, cement, pipes, electrical components, and fuel are critical to our project execution. The cost and availability of these materials are influenced by multiple external factors including domestic and international supply-demand dynamics, local sourcing constraints, transportation costs, and geopolitical developments.

For the financial year ended March 31, 2026, March 31, 2025 and March 31, 2024 our cost of revenue of operations adjusted to change in inventories amounted to ? 2,579.36 million, ? 2,170.50 million and ? 1,839.95 million, respectively, representing 74.76%, 77.64% and 81.38%, respectively of our revenue from operations. For further details, kindly refer "Restated Consolidated Financial Information " beginning on page 364.

Seasonal fluctuations lead to delays or disruptions to our operations during critical periods

Our business operations may be affected by seasonal factors which may restrict our ability to carry on activities

related to our construction projects, laying of water pipes and fully utilize our resources.

The following factors may restrict our ability:

^ Heavy or sustained rainfalls ^ Flood ^ Cyclones or

^ Other extreme weather conditions

The above could result in delays or disruptions to our operations during the critical periods of our projects and cause severe damages to our premises and equipments.

In particular, the monsoon season may adversely affect our ability to carry on activities related to our projects and efficiently utilize our resources, resulting in a slowdown in construction projects. This may lead to delays in project execution and consequently defer the recognition of revenue and profits to subsequent quarters. Adverse seasonal developments may also necessitate the evacuation of personnel, suspension or curtailment of operations, damage to construction sites or delays in the delivery of materials. Such fluctuations may adversely affect our revenues, cash flows, results of operations and financial conditions.

In the past, we have experienced an instance of dispute in relation to project execution. A wastewater infrastructure project was awarded by Rajasthan Urban Infrastructure Development Project ("RUIDP") in Udaipur, certain delays, not attributable to our Company, led to deductions and the imposition of liquidated damages by the client, which we disputed. Pursuant to the final Extension of Time dated February 27, 2025 granted by RUIDP, under which an amount aggregating to ? 5.00 million (towards deductions) and ? 54.06 million (towards price escalation claims) were subsequently released/adjusted in our favour.

Largely concentrated to two states ("States") and is affected by various factors associated with these states. Our project portfolio has historically been concentrated in projects in Uttar Pradesh and Rajasthan. Though we are undertaking projects in other parts of India, including Uttarakhand, Madhya Pradesh, Bihar, Odisha and National Capital Territory of Delhi. This concentration of our business in Uttar Pradesh and Rajasthan subjects us to various risks, including but not limited to:

regional slowdown in construction activities or reduction of infrastructure projects in states;

vulnerability to change of policies, laws and regulations or the political and economic environment of states;

constraint on our ability to diversify across states;

perception by our potential clients that we are a regional construction company, which hampers us from competing for large and complex projects at the national level; and

Limitation on our ability to cluster projects in the states where we intend to conduct business.

While we strive to diversify across states and reduce our concentration risk, there is no guarantee that the above factors associated with the states will not continue to have a significant impact on our business. If we are not able to mitigate this concentration risk, we may not be able to develop our business as we planned and our business, financial condition and results of operations could be materially and adversely affected. As on the date of this Red Herring Prospectus, our Company has executed 18 projects out of which 16 projects were executed in Uttar Pradesh and currently we are executing 19 projects out of which 08 projects are executing in Uttar Pradesh. While our Company has not faced any instance of disqualification, cancellation, or blacklisting of any project in these states in past, there can be no assurance that such circumstances will not arise in the future, which could adversely affect our business, financial condition, and results of operations.

For further information, kindly refer ‘Our Business - "Our Order Book" and "Order Book for Completed Projects" beginning on pages 254 and 268, respectively.

Following are the state wise bifurcation of revenue for the financial year ended March 31, 2026, March 31, 2025 and March 31, 2024:

As certified by Rishi Kapoor & Company, Chartered Accountants pursuant to their certificate dated July 10, 2026 vide UDIN: 26455362LGVDOP3135.

Increasing share of business from government and government initiatives in the water and wastewater infrastructure sector

Our business is driven by public infrastructure projects funded under various Central and State Government programs. These include sector-specific schemes such as Atal Mission for Rejuvenation and Urban Transformation ("AMRUT"), Jal Jeevan Mission ("JJM"), National Mission for Clean Ganga ("NMCG"), as well as broader infrastructure initiatives like the Pradhan Mantri Gram Sadak Yojana ("PMGSY"), the Rajiv Gandhi Grameen Vidyutikaran Yojana ("RGGVY") and Restructured Accelerated Power Development and Reforms Programme ("RAPDRP") and electrification schemes by utility agencies such as Paschimanchal Vidyut Vitaran Nigam Limited ("PVVNL") and Dakshinanchal Vidyut Vitaran Nigam Limited ("DVVNL"). These schemes have collectively contributed to a significant portion of our order book across sectors such as wastewater treatment, water supply, sewerage, roads, and power distribution. For further details of our ongoing projects, kindly refer "Our Business - Our Order Book" on page 254.

As of July 15, 2026, we are executing 06 projects under AMRUT 2.0. Apart from these projects, the bid of our Company has also been recently awarded as L1 status by Delhi Jal Board under AMRUT 2.0 valuing ?1964.68 million. Our continued participation in such government-led initiatives is crucial to maintaining project flow and sustaining our growth.

However, the ability to secure contracts under these schemes depends on various factors, including adherence to evolving eligibility norms, timely availability of internal and external resources, and responsiveness to tendering requirements. Any failure to qualify, delays in bidding processes, or inability to execute awarded projects in line with prescribed benchmarks may curtail our ability to grow in these sectors. We intend to continue participating in tenders issued under these and similar schemes. However, our ability to secure and successfully execute such projects depends on various factors including availability of financial and technical resources, management bandwidth, and responsiveness to tender conditions. Any inability or delay in capitalizing on these schemes, or failure to meet qualification or execution standards, could restrict our growth trajectory. Moreover, the scope and funding of these schemes are contingent upon government budgetary allocations and policy priorities. A reduction in outlay, reallocation of funds, delays in disbursement, or a shift in implementation strategy such as moving from EPC to Public-Private Partnership (PPP) or Hybrid Annuity Model (HAM) models could reduce the availability of new projects or alter risk-sharing frameworks unfavourably. Any such development may materially affect our future business pipeline and financial performance.

The table below sets forth our revenue from Government & Government authorities and from Private clients for the financial years ended March 31, 2026, March 31, 2025 and March 31, 2024 indicated:

As certified by Rishi Kapoor & Company, Chartered Accountants pursuant to their certificate dated July 10, 2026 vide UDIN: 26455362MFNQNB9135.

SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO THE LAST FINANCIAL PERIOD

Except as listed below, in the opinion of the Board of Directors of our Company, since the date of the last financial statements disclosed in this Red Herring Prospectus, there have not arisen any circumstance that materially or adversely affect or are likely to affect the business activities or profitability of our Company or the value of its assets or its ability to pay its material liabilities:

1. Company has received work order of Construction of Underground Sewerage System for Town Planning Scheme amounting ? 1,487.01 million from Managing Director, WATCO Ground Floor, Unnati Bhawan, Satyanagar, Bhubaneswar, Odisha.

2. The Company has also been recently awarded as L1 status by Delhi Jal Board under AMRUT 2.0 valuing ? 1,964.68 million.

SIGNIFICANT ACCOUNTING POLICIES 1. Corporate Information

Technocraft Constructions Private Limited was incorporated on October 21, 1998 with Registrar of Companies (ROC), Delhi under the provisions of Companies Act 1956. Thereafter, the name of our Company was changed from ‘Technocraft Constructions Private Limited to ‘Technocraft Ventures Private Limited on February 09, 2024 and thereafter conversion of our Company from private to public company, pursuant to a special resolution passed by the shareholders of our Company on March 13, 2024 and a fresh certificate of incorporation consequent to change of name from Technocraft Ventures Private Limited to Technocraft Ventures Limited (" The Company") was issued by the ROC on June 11, 2024. The Companys Corporate Identity Number is U70101DL1998PLC096763. The Registered office of company is situated at S 553/54, Ground Floor, School Block, Shakarpur, New Delhi, Delhi, India, 110092 and Corporate Office of the company is B-137, Sector 2, Noida, Gautam Buddha Nagar, Uttar Pradesh, India-201301. It has no holding, Subsidiaries or associate companies but has investment in Partnership Firm in which the company holds 26% share. The company is engaged in the business of executing turnkey projects in the domains of Engineering, Procurement and Construction (EPC) of Roads, Building Construction, Highways, Sewage Networks, Sewage Treatment Plants and Power.

2.1 Basis Of Preparation (a) Statement Of Compliance

The Restated Consolidated Financial Information comprise the Restated Consolidated Statement of Asset and Liabilities as at March 31, 2026, March 31, 2025 and March 31, 2024, the Restated Consolidated Statement of Profit and Loss (including other comprehensive income), for the financial years ended March 31, 2026, March 31, 2025 and March 31, 2024, the Restated Consolidated Statement of Cash Flows for the financial years ended March 31, 2026, March 31, 2025 and March 31, 2024, the Material Accounting Policies and Other Explanatory Notes to the Restated Consolidated Financial Information, Statement of Restated Adjustments to the Audited Financial Information and Notes to the Restated Consolidated Financial Information (collectively, the "Restated Consolidated Financial Information"). The Restated Consolidated Financial Information of the Company have been prepared to comply in all material respects with the Indian Accounting Standards ("Ind AS") as prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time), presentation requirements of Division II of Schedule III to the Companies Act, 2013, as applicable to the Restated Consolidated Financial Information and other relevant provisions of the Act. These Restated Consolidated Financial Information have been prepared by the management as required under the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements Regulations, 2018, as amended ("ICDR Regulations") issued by the Securities and Exchange Board of India (SEBI), in pursuance of the Securities and Exchange Board of India Act, 1992, for the purpose of inclusion in the Offer Documents in connection with the proposed initial public offering, prepared by the Company in terms of 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; and

c) The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of India (ICAI) (the "Guidance Note").

These Restated Consolidated Financial Information have been compiled from the audited financial statements for the financial years ended March 31, 2026, March 31, 2025 and March 31, 2024 which have been approved by the Board of Directors in their meeting held on July 01, 2026, July 02, 2025 and September 02, 2024 respectively.

The Company has decided to voluntarily adopt Indian Accounting Standards notified under Section 133 of the Companies Act 2013, read with Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and other accounting principles generally accepted in India. For the purpose of the preparation of Restated Consolidated Financial Statement for the financial years ended March 31, 2026, March 31, 2025 and March 31, 2024 of the Company, the transition date is considered as April 01, 2022. Accordingly, the Company has applied the same accounting policy and accounting policy choices (both mandatory exceptions and optional exemptions availed as per Ind AS 101, as applicable) as on April 01, 2022.

(b) Basis Of Measurement

The Restated Consolidated Financial Information have been prepared on a historical cost basis except certain items that are measured at fair value as explained in accounting policies.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability, if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for leasing transactions that are within the scope of Ind AS 116 - Leases, and measurements.

2.2 Basis Of Consolidation

The Restated Consolidated financial information presented for the reporting years include the financial statements of the Company and its share in associate accounted in accordance with the relevant Indian Accounting Standards (Ind AS) specified under Section 133 of the Companies Act, 2013.

Associates are entities over which the Company exercise significant influence but does not control. Significant influence is assessed annually with reference to the voting power (usually arising from equity shareholdings and potential voting rights) and other rights (usually contractual) enjoyed by the Company in its capacity as an investor that provides it the power and consequential ability to direct the investees activities and significantly affect the Companys returns from its investment. Such assessment requires the exercise of judgement and is disclosed by way of a note to the restated financial information. Investment in Associates is accounted as per Equity Method as per IND AS in the Consolidated Restated Financial Statement.

2.3 USE OF ESTIMATES

The preparation of the Restated Consolidated financial information is in conformity with Ind AS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the financial years. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates.

The estimates and underlying assumptions are reviewed on going concern basis.

Revisions to accounting estimates are recognized in the period in which the estimate is revised, if the revision affects only that period. If the revision affects both current and future years, the same is recognised accordingly. Key source of estimation of uncertainty at the date of financial statements, which may cause material adjustment to the carrying amounts of assets and liabilities within the next financial year, is in respect of impairment, useful lives of property, plant and equipment and intangible assets, valuation of deferred tax assets, provisions and contingent liabilities, fair value measurements of financial instruments and retirement benefit obligations as disclosed below:

Impairment

The Company estimates the value in use of the cash generating unit (CGU) based on future cash flows after considering current economic conditions and trends, estimated future operating results and growth rates and anticipated future economic and regulatory conditions. The estimated cash flows are developed using internal forecasts. The cash flows are discounted using a suitable discount rate in order to calculate the present value.

Useful lives of property, plant and equipment and intangible assets

The Company reviews the useful life of property, plant and equipment and intangible assets at the end of each reporting period. This reassessment may result in change in depreciation and amortisation expense in future periods.

Valuation of deferred tax assets

The Company reviews the carrying amount of deferred tax assets at the end of each reporting period.

Allowances for expected credit loss

The Company makes provision for expected credit losses through appropriate estimations of irrecoverable amount. The identification of expected credit loss requires use of judgment and estimates. The Company evaluates trade receivables ageing and makes a provision for those debts as per the provisioning policy. Where the expectation is different from the original estimate, such difference will impact the carrying value of the trade and other receivables and doubtful debts expenses in the period in which such estimate has been changed.

Retirement benefit obligations

The Companys retirement benefit obligations are subject to number of assumptions including discount rates, inflation and salary growth. Significant assumptions are required when setting these criteria and a change in these assumptions would have a significant impact on the amount recorded in the Companys balance sheet and the statement of profit and loss. The Company sets these assumptions based on previous experience and third-party actuarial advice.

Classification of Leases

The Company enters into leasing arrangements for Leasehold Land. The classification of the leasing arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessees option to purchase and estimated certainty of exercise of such option, proportion of lease term to the assets economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialized nature of the leased asset.

2.4 Significant Accounting Policies

The material accounting policies applied by the Company in the preparation of the Restated Consolidated Financial Information are listed below. Such accounting policies have been applied consistently to all the financial years presented in this Restated Consolidated Financial Information, unless otherwise indicated.

i) Current V/S Non-Current Classification

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

• Expected to be realised or intended to sold or consumed in normal operating cycle

• Held primarily for the purpose of trading.

• Expected to be realised 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.

The Company classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as non- current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. Based on the nature of service and the time between rendering of services and their realization in cash and cash equivalents, 12 months has been considered by the company for the purpose of current / non- current classification of assets and liabilities.

ii) Functional And Presentation Currency

Amounts in the financial statements are presented in millions rounded off to two decimal places except number of shares.

iii) Property, Plant and Equipment (PPE):

PPE is recognised when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. PPE is stated at original cost net of tax/duty credits availed, if any less accumulated depreciation and cumulative impairment, if any. All directly attributable costs related to the acquisition of PPE and, borrowing costs case of qualifying assets are capitalised in accordance with the Companys accounting policy.

Subsequent costs are included in the assets carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably.

PPE not ready for the intended use on the date of the Balance Sheet are disclosed as "capital work-in-progress" Depreciation Methods, Estimated Useful Life

Depreciation is recognised using written down value method so as to write off the cost of the assets (other than freehold land and capital work-in-progress) less their residual values over their useful lives specified in Schedule II to the Companies Act, 2013, or in the case of assets where the useful life was determined by technical evaluation, over the useful life so determined.

Depreciation on additions to deductions from, owned assets is calculated on pro rata basis according to the period of use. PPE is de-recognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition is recognised in the Statement of Profit and Loss in the same period.

The estimated useful lives, residual values and depreciation method are reviewed at each financial year end and the effect of any change is accounted for on prospective basis.

The carrying amount of all the property, plant and equipment are de-recognized on its disposal or when no future economic benefits are expected from its use or disposal and the gain or loss on de-recognition is recognized in the statement of profit & loss. Other Fixed Assets include Dumper, BPD, Tandom Roller, Paver, Sensor Paver, Tar Boiler and Bitumin Tank.

The useful life of assets is as follows:

iv) Impairment Of Non-Financial Assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the assets recoverable amount. An assets recoverable amount is the higher of an assets or cash-generating units (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

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. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.

Impairment losses of continuing operations, including impairment on inventories, are recognised in the statement of profit and loss.

For assets an assessment is made at each reporting date to determine whether there is an indication that previously recognised impairment losses no longer exist or have decreased. If such indication exists, the Company 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. Such reversal is recognised in the statement of profit or loss unless the asset is carried at a revalued amount in which case, the reversal is treated as a revaluation increase.

(v) Borrowing and Borrowing costs

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in Statement of profit and loss over the period of the borrowings using the effective interest method. Borrowings are derecognised from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a borrowings that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred

or liabilities assumed, is recognised in Statement of profit and loss as other gains/(losses). Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

Borrowing costs directly attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of the assets up to the date the asset is ready for its intended use. All other borrowing costs are recognised as an expense in the Restated Statement of Profit and Loss account in the year in which they are incurred.

vi) Financial Instruments-Initial Recognition, Subsequent Measurement And Impairment

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

(a) Initial recognition and measurement: All financial assets are recognised initially at fair value and, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.

(b) Subsequent measurement: For purposes of subsequent measurement financial assets are classified in two broad categories:

- Financial assets at fair value

- Financial assets at amortised cost

(c) Classification: The Company classifies financial assets as subsequently measured at amortised cost, fair value through other comprehensive income or fair value through profit or loss on the basis of its business model for managing the financial assets and the contractual cash flows characteristics of the financial asset.

(d) Financial assets measured at amortised cost: Financial assets are measured at amortised cost when asset is held within a business model, whose objective is to hold assets for collecting contractual cash flows and contractual terms of the asset give rise on specified dates to cash flows that are solely for payments of principal and interest. Such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. The losses arising from impairment are recognised in the Statement of profit and loss. This category generally applies to trade and other receivables.

(e) Financial assets measured at fair value through other comprehensive income (FVTOCI): Financial assets under this category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income.

(f) Financial assets measured at fair value through profit or loss (FVTPL): Financial assets under this category are measured initially as well as at each reporting date at fair value with all changes recognised in profit or loss.

(g) Investment in Equity Instruments: Equity instruments which are held for trading are classified as at FVTPL. All other equity instruments are classified as FVTOCI. Fair value changes on the instrument, excluding dividends, are recognized in the other comprehensive income. There is no recycling of the amounts from other comprehensive income to profit or loss. There are no investments in Equity Shares by the Company.

(h) Derecognition of Financial assets: A financial asset is primarily derecognised when the rights to receive cash flows from the asset have expired or the Company has transferred its rights to receive cash flows from the asset, if an entity transfers a financial asset in a transfer that qualifies for derecognition in its entirety and retains the right to service the financial asset for a fee, it shall recognise either a servicing asset or a servicing liability for that servicing contract. If the fee to be received is not expected to compensate the entity adequately for performing the servicing, a servicing liability for the servicing obligation shall be recognised at its fair value. If the fee to be received is expected to be more than adequate compensation for the servicing, a servicing asset shall be recognised for the servicing right at an amount determined on the basis of an allocation of the carrying amount of the larger financial asset.

(i) Impairment of Financial assets: In accordance with Ind AS 109, the company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the financial assets that are debt instruments and trade receivables. For recognition of impairment loss on other financial assets and risk exposure, the company determines that whether there has been a significant increase in the credit risk since initial recognition.

Financial Liabilities

(a) Initial recognition and measurement: All financial liabilities are recognised initially at fair value and, in the case of loans, borrowings and payables, net of directly attributable transaction costs. Financial liabilities include trade and other payables, loans and borrowings including bank overdrafts.

(b) Classification & Subsequent measurement: If a financial instrument that was previously recognised as a financial asset is measured at fair value through profit or loss and its fair value decreases below zero, it is a financial liability measured in accordance with IND AS. Financial liabilities are classified as held for trading, if they are incurred for the purpose of repurchasing in the near term.

The Company classifies all financial liabilities as subsequently measured at amortised cost, except for financial liabilities at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, shall be subsequently measured at fair value. However, there is no derivative transactions in the company.

(c) Derecognition of Financial Liabilities: A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the Statement of Profit and Loss.

(d) Offsetting financial instruments: Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis to realise the asset and settle the liability simultaneously. Subsequent recoveries of amounts previously written off are credited to Other Income.

vii) Cash And Cash Equivalents:

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, that are readily convertible to a known amount of cash and subject to an insignificant risk of changes in value. Bank balances other than cash & cash equivalents includes fixed deposits of original maturity of 3 Months to 12 Months. It also includes fixed deposits of original maturity of less than 3 Months which are lien with Bank against Bank Guarantee & Others as it is not liquid in nature and restricted for use.

viii) Provisions, Contingent Liabilities And Contingent Assets

(a) General: Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to

settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, the amount of a provision shall be the present value of expense expected to be required to settle the obligation. Provisions are therefore discounted, when effect is material, The discount rate shall be pre-tax rate that reflects current market assessment of time value of money and risk specific to the liability. Unwinding of the discount is recognised in the Statement of Profit and Loss as a finance cost. Provisions are reviewed at each balance sheet date and are adjusted to reflect the current best estimate.

(b) Contingencies: 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 company 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 or a reliable estimate of the amount cannot be made. Information on contingent liability is disclosed in the Annexures to the Restated Consolidated Financial Information.

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity, Contingent assets are not recognised but are disclosed in the notes. However, when the realisation of income is virtually certain, then the related asset is no longer a contingent asset, but it is recognised as an asset.

ix) Share Capital and Securities Premium

Ordinary shares are classified as Equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds.

Par value of the equity share is recorded as share capital and the amount received in excess of the par value is classified as securities premium.

x) Revenue Recognition

Revenue is measured at the fair value of consideration received or receivable by the Company for goods supplied and services provided, excluding trade discounts and other applicable taxes. Revenue is recognised upon transfer of control of promised goods or services under a contract. Revenue is recognised when the amount can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the Company, the costs incurred or to be incurred can be measured reliably, and when the criteria for each of the Companys different activities has been met.

The Company derives revenues from following types of activities:

a) Sewerage Construction Contracts, Road & Highway Construction & Maintenance, Building Construction, Water Supply Projects and Electrical Works- The Company is engaged in execution of sewerage construction projects, road and highway construction and maintenance contracts, building construction works, water supply projects and electrical works under contracts entered into with government authorities.

b) Operation and maintenance contracts - Customer contracts towards operation and maintenance of sewerage construction projects & road and highway construction.

The Company determines its performance obligations included in the contracts signed with customers. When a customer contract includes both a construction and operation & maintenance, the performance obligations are separately identified and revenue is recognised in accordance with the principles of Ind AS 115.

Sewerage Construction Contracts, Road & Highway Construction & Maintenance, Building Construction, Water Supply Projects and Electrical Works:

The Company is engaged in the execution of sewerage construction projects, road and highway construction and maintenance contracts, building construction works, water supply projects, electrical transmission and distribution works, and other infrastructure projects on an Engineering, Procurement and Construction (EPC) basis.

Revenue is recognized in accordance with Ind AS 115, Revenue from Contracts with Customers. The transaction price is generally based on contractually agreed rates and may include variable consideration such as price escalation, incentives, variation orders, claims, liquidated damages and penalties. Variable consideration is included in the transaction price only to the extent that it is highly probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with such consideration is subsequently resolved.

Construction contracts generally comprise a single performance obligation involving the design, engineering, procurement, construction, installation, testing, commissioning, maintenance and handover of infrastructure facilities. The Company transfers control of goods and services continuously over the contract period and therefore satisfies its performance obligations over time.

Revenue is recognized over time using the percentage of completion method, measured by reference to the proportion of contract costs incurred up to the reporting date relative to the total contract costs of the contract (cost-to-cost method). This method faithfully depicts the transfer of control of goods and services to the customer. Only those costs that reflect work performed are included in costs incurred for determining the stage of completion.

Where the outcome of a contract cannot be measured reliably, revenue is recognized only to the extent of contract costs incurred that are expected to be recoverable.

Contract modifications, variation orders and claims are accounted for when approved or when it is highly probable that the customer will approve the modification and the amount can be measured reliably.

Unbilled revenue represents the Companys right to consideration for work performed but not yet billed as well as certified by the principal as at the reporting date and is disclosed within Trade Receivables, as appropriate.

Retention money withheld by customers as per contractual terms is recognized when the Company has an enforceable right to receive the consideration and collection is considered probable. Long-term retention receivables are disclosed under Other Financial Assets (Non-Current), while short-term retention receivables are disclosed under Other Financial Assets (Current).

Operation & Maintenance contracts - Revenue from Operation and Maintenance contracts relating to sewerage construction projects & road and highway construction are recognized as the services are provided and invoiced to the customer, as per the terms of the contract.

(b) Other Income

Interest income: Interest income is recognised on a time proportion basis using the effective interest rate method.

xi) Taxation

(a) Current tax: Current tax is expected tax payable on the taxable income for the year, using the tax rate enacted at the reporting date, and any adjustment to the tax payable in respect of the earlier periods.

Current tax assets and liabilities are offset where the company has legal enforceable right to offset and intends either to settle on net basis, or to realize the assets and settle the liability simultaneously.

(b) Deferred tax: Deferred tax is recognized for all taxable temporary differences and is calculated based on the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.

Deferred tax is measured at the tax rates that are expected to be applied when the asset is realized or the liability is settled, based on the laws that have been enacted or substantively enacted at the reporting date.

Deferred tax assets are recognized only to the extent that it is probable that future taxable profits will be available against which the assets can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset and when the deferred tax balances relate to taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but the company intends to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.

(c) Current and Deferred Tax for the Year: Current and deferred tax are recognized in the statement of profit & loss, except when they relates to items that are recognized in other comprehensive income or directly in equity, in which case, the current tax and deferred tax is recognized directly in other comprehensive income or equity respectively.

xii) Earning Per Share

Basic Earnings Per Share is computed by dividing the net profit attributable to the equity shareholders of the company to the weighted average number of Shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit attributable to the equity shareholders of the company after adjusting the effect of all dilutive potential equity shares that were outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue that have changed the number of equity shares outstanding, without a corresponding change in resources.

xiii) Leases As a Lessee

The Companys lease asset classes primarily consist of leases for Land. The Company 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 company assesses whether: (i) the contract involves the use of an identified asset (ii) the company has substantially all of the economic benefits from use of the asset through the period of the lease and (iii) the company has the right to direct the use of the asset.

At the date of commencement of the lease, the Company 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 Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease.

Certain lease arrangements include the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities include these options when it is reasonably certain that they will be exercised. The right-of-use assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in- use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of these leases.

Lease liabilities are remeasured with a corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an extension or a termination option. Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

The entire lease rent pertaining to the leased asset was paid in full by the previous owner of the asset, prior to the transfer of ownership to the company. Accordingly, there is no future lease rent liability payable by the company. Consequently, there is no recognition of lease liability (current or non-current) in the financial statements. Since there are no future lease payments, the requirements of Ind AS 116 with respect to recognition of lease liability and corresponding right-of-use asset and subsequent finance cost adjustments are not applicable in this case. No adjustments related to interest (finance cost) under Ind AS 116 have been made in the financial statements. This treatment is based on the managements representation and the absence of enforceable future lease payment obligations.

xiv) Employee Benefits:

The company provides for the various benefits plans to the employees. These are categorized into Defined Benefits Plans and Defined Contributions Plans. Defined contribution plans include the amount paid by the company towards the liability for Provident fund to the employees provident fund organization and Employee State Insurance fund in respect of ESI and defined benefits plans includes the retirement benefits, such as gratuity.

a. In respect Defined Contribution Plans, contribution made to the specified fund based on the services rendered by the employees are charged to Statement of Profit & Loss in the year in which services are rendered by the employee.

b. Liability in respect of Defined Long Term benefit plan is determined at the present value of the amounts payable determined using actuarial valuation techniques performed by an independent actuarial at each balance sheet date using the projected unit credit methods. Re-measurement, comprising actuarial gain and losses, the effects of assets ceiling (if applicable) and the return on plan assets (excluding interest), is reflected immediately in the statement of Financial Position with a charge or credit recognized in other comprehensive income in the period in which they occur. Past Service cost is recognized in the statement of profit & loss in the period of plan amendment.

c. Liabilities for short term employee benefits are measured at undiscounted amount of the benefits expected to be paid and charged to Statement of Profit & Loss in the year in which the related service is rendered.

xv) Inventories:

Material at Site & Work in Progress- valued at Cost or NRV, whichever is lower.

Cost is determined using FIFO basis and includes all costs incurred in bringing the inventories to their present location and condition. Raw materials, stores and spares, consumables and materials at site are valued at the lower of cost and net realizable value. Project Work-in-Progress represents costs incurred in respect of incomplete EPC projects and comprises direct material, direct labour, subcontracting charges and other directly attributable project costs incurred up to the reporting date. Project Work-in-Progress is valued at the lower of cost and net realizable value.

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

In the accounting policies forming part of the previously issued Restated Balance Sheets, Material at Site and Project Work-in-Progress (WIP) were stated at cost. For the Restated Financial Information for the year ended March 31, 2026, the accounting policy has been aligned with the applicable accounting standards by stating that

inventories, including Material at Site and Project Work-in-Progress, are valued at the lower of cost and net realizable value (NRV). Cost is determined using the FIFO method and includes all costs incurred in bringing the inventories to their present location and condition. It is hereby clarified that this revision represents only a refinement in the wording of the accounting policy and does not result in any change in the basis of valuation or the carrying amount of inventories. Based on the valuation carried out by the management, the Net Realizable Value (NRV) is higher than the cost for all reporting periods presented. Accordingly, the inventories continue to be carried at cost, which remains the lower of cost and NRV.

Therefore, there is no change in the valuation methodology or the values reported in the Restated Financial Information, and the modification is only to ensure that the accounting policy appropriately reflects the applicable accounting requirements.

xvi) Earnings And Expenditure in Foreign Currency:

The company has earned no income in foreign currency during the financial year ended March 31, 2026, March 31, 2025 and March 31, 2024.

(A) EARNINGS IN FOREIGN CURRENCY

(B) EXPENDITURE IN FOREIGN CURRENCY

xvii) New and Amended IND AS:

(a) Ind AS 117 Insurance Contracts: The Ministry of Corporate Affairs (MCA) notified the Ind AS 117, Insurance Contracts, vide notification dated 12 August 2024, under the Companies (Indian Accounting Standards) Amendment Rules, 2024.

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

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

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

The application of Ind AS 117 does not have a material impact on the Restated Consolidated Financial Information as the Group has not entered any contracts in the nature of insurance contracts covered under Ind AS 117.

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

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

The amendment does not have a material impact on the Restated Consolidated Financial Information.

(c) Amendments to Ind AS 21 - Lack of exchangeability: The MCA notified amendments to Ind AS 21 The

effects of changes in foreign exchange rates to specify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking.

The amendments also require disclosure of information that enables users of its Ind AS financial statements to understand how the currency not being exchangeable into the other currency affects, or is expected to affect, the entitys financial performance, financial position and cash flows. The amendments are effective for annual reporting periods beginning on or after 1 April 2025. When applying the amendments, an entity cannot restate comparative information.

The amendments are not expected to have a material impact on the Restated Consolidated Financial Information.

(d) Amendments to Ind AS 1 - Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants: The Ministry of Corporate Affairs notified amendments to paragraphs 69 to 76 of Ind AS 1 Presentation of Financial Statements to specify the requirements for classifying liabilities as current or non-current. The amendments clarify:

• What is meant by a right to defer settlement

• That a right to defer must exist at the end of the reporting period

• That classification is unaffected by the likelihood that an entity will exercise its deferral right

• That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability not impact its classification

In addition, a requirement has been introduced to require disclosure when a liability arising from a loan agreement is classified as non-current and the entitys right to defer settlement is contingent on compliance with future covenants within twelve months. The amendments are effective for annual reporting periods beginning on or after 1 April 2025 and must be applied retrospectively. The Company is currently assessing the impact the amendments will have on current practice and whether existing loan agreements may require renegotiation

(e) Amendments to Ind AS 7 and Ind AS 107 - Supplier Finance Arrangements: The Ministry of Corporate Affairs notified amendments to Ind AS 7 Statement of Cash Flows and Ind AS 107 Financial Instruments: Disclosures to clarify the characteristics of supplier finance arrangements and require additional disclosure of 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 amendments will be effective for annual reporting periods beginning on or after April 01, 2025.

The amendments are not expected to have a material impact on the Companys Restated Consolidated Financial Information.

PRINCIPAL COMPONENTS OF STATEMENT OF PROFIT AND LOSS

Set forth below are the principal components of statement of profit and loss from our continuing operations:

Income

Our total income comprises revenue from operations & other income as mentioned below:

Revenue from Operations

Our revenue from operations primarily includes income from contracts related to Water & Wastewater Infrastructure work, Roads and Highways work, Electrical Transmission work, Operation & Maintenance Work, and other operating revenue.

Other Income

Other income includes (i) interest income on FDRs, and Income Tax Refund; (ii) Miscellaneous Income etc. Expenses

Our total expenses include the below mentioned expenses:

Cost of Revenue of Operations

Cost of revenue of operations is the aggregate of our cost of materials consumed which includes purchases and change in inventory of raw materials and Job Work Charges, Labour Processing, Testing and other direct costs.

Changes in Inventories of Work-in-Process

Changes in inventories of work-in-progress denote increase/ decrease in inventories of work in progress between opening and closing dates of a reporting period.

Employee benefit expenses

Employee benefit expenses primarily include (i) salaries and wages, (ii) director salaries, (iii) contributions to ESI, PF and other funds, (v) gratuity expense, (vi) staff welfare expenses and (vi) workmen compensation expense.

Finance Cost

Our finance costs primarily include interest, bank charges and other borrowing cost.

Depreciation and Amortization Expense

Depreciation expenses primarily include (i) depreciation expenses on our property, plant and equipment including buildings, plant & machinery, office equipment, computers, furnitures & fixtures and vehicles and other fixed assets; and (ii) amortization expenses include amortization of leasehold land.

Other Expenses

Other expenses include travelling and conveyance, electricity and generator charges, legal and professional charges, insurance, printing and stationery expenses, tender fee, corporate social responsibility expenses, repair and maintenance expense, watch & ward, rent, rates and taxes, etc.

Tax Expense

Our tax expenses primarily include current tax, deferred tax and adjustment for tax of earlier years.

CHANGES IN ACCOUNTING POLICIES

There have been no changes in the accounting policies of the Company except for the changes arising from the first-time adoption of the Indian Accounting Standards ("Ind AS") in the Audited Financial Statements for the year ended March 31, 2026.

NON-GAAP MEASURES

EBITDA and EBITDA Margin, (together, "Non-GAAP Measures"), presented in this Red Herring Prospectus is a supplemental measure of our performance and liquidity that is not required by, or presented in accordance with, Ind AS, IFRS or US GAAP. Further, these Non-GAAP Measures are not a measurement of our financial performance or liquidity under Ind AS, IFRS or US GAAP and should not be considered in isolation or construed as an alternative to cash flows, profit/ (loss) for the years 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, IFRS or US GAAP.

In addition, these Non-GAAP Measures are not standardised terms, hence a direct comparison of these Non- GAAP Measures between companies may not be possible. Other companies may calculate these Non-GAAP Measures differently from us, limiting its usefulness as a comparative measure. Although such Non-GAAP Measures are not a measure of performance calculated in accordance with applicable accounting standards, our Companys management believes that they are useful to an investor in evaluating us as they are widely used measures to evaluate a companys operating performance.

Financial Key Performance Indicator (KPIs) of our Company:

In evaluating our business, we consider and use certain key performance indicators that are presented below as supplemental measures to review and assess our operating performance. The presentation of these key performance indicators is not intended to be considered in isolation or as a substitute for the Restated Consolidated Financial Information included in this Red Herring Prospectus. We present these key performance indicators because they are used by our management to evaluate our operating performance. Further, these key performance indicators may differ from the similar information used by other companies, including peer companies, and hence their comparability may be limited. Therefore, these matrices should not be considered in isolation or construed as an alternative to AS measures of performance or as an indicator of our operating performance, liquidity, profitability or results of operation. A list of our KPIs for the Financial Year ended March 31, 2026, March 31, 2025 and March 31, 2024 is set out below:

As certified by Rishi Kapoor & Company, Chartered Accountants pursuant to their certificate dated July 10, 2026 vide UDIN: 26455362NHPDQM8185.

Notes:

(1) Revenue from operation means revenue from sales and other operating revenues.

(2) Total Income represents the total turnover of our business i.e. Revenue from Operations and Other Income, if any.

(3) EBITDA is calculated as restated profit/(loss) before tax plus finance costs, depreciation and amortization

expenses.

(4) EBITDA Margin is calculated as EBITDA divided by Revenue from Operations.

(5) PAT Margin is calculated as restated profit/(loss) for the financial year divided by Revenue from Operations.

(6) Net Worth is aggregate value of the paid-up share capital and all reserves created out of the profits and securities premium account and debit or credit balance of profit and loss account, after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off, but does not include reserves created out of revaluation of assets/fair value gain, write back of depreciation and amalgamation.

(7) Net debt = non-current borrowing (including lease liability) + current borrowing (including lease liability) - Cash and Cash Equivalent.

(8) Debt equity ratio means ratio of total debt (long term plus short-term including current maturity of long- term debt) and Equity Share capital plus other equity (including minority interest).

(9) ROE is calculated as Profit for the financial year divided by total shareholders equity (including minority interest).

(10) ROCE is calculated as EBIT (i.e. restated profit/(loss) before tax plus finance costs) divided by capital employed (i.e. sum of:(i) Total Shareholders Equity (including Minority interest); (ii) Long-Term Borrowings (including Lease Liabilities, if any); (iii) Short-Term Borrowings (including Lease Liability, if any).

STATEMENT OF RESTATED ADJUSTMENTS

Part A: Reconciliation of Profit and Other Comprehensive Income

Reconciliation of Equity

1. Provision for Gratuity Expense & Actuarial Gain/Loss on Defined benefit Plan

Provision for Gratuity Expense for the financial years ended March 31, 2025 and March 31, 2024 was not created, same has been reinstated as per Actuarial valuation report obtained for the financial years ended March 31, 2025 and March 31, 2024. Consequently, impact on Actuarial Gain/Loss on Defined benefit plan has been reinstated in the Ind AS Restated Consolidated Financial Statement. Under IND AS, all actuarial gains and losses are recognised in Other Comprehensive Income. Benefit paid during the respective financial years is adjusted in the provision for Gratuity as per Actuarial Valuation Report and hence appropriate adjustments are made in the Restated Consolidated Financial Information.

2. Impact of IND AS 116 Leases

For the purpose of preparation of Restated Consolidated Financial Information, the Company has adopted Ind AS 116: Leases from the date of transition i.e. April 01, 2022 and management has evaluated the impact of change in accounting policies required due to adoption of Ind AS 116 for the financial years ended March 31, 2025 and March 31,2024 and made the necessary adjustments. The entire lease rent pertaining to the leased asset was paid in full by the previous owner of the asset, prior to the transfer of ownership to the company. Accordingly, there is no future lease rent liability payable by the company. Consequently, there is no recognition of lease liability (current or non-current) in the financial statements. Since there are no future lease payments, the requirements of Ind AS 116 with respect to recognition of lease liability and corresponding right- of-use asset and subsequent finance cost adjustments are not applicable in this case. No adjustments related to interest (finance cost) under Ind AS 116 have been made in the financial statements. This treatment is based on the managements representation and the absence of enforceable future lease payment obligations.

3. Deferred Tax

Under Previous GAAP, Deferred Tax is calculated using the income statement approach which focuses on differences between taxable profits and accounting profits for the period. Under Ind AS 12, deferred tax is calculated using balance sheet approach which focuses on difference between taxable profits and accounting profits for the period. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under IGAAP. In addition, the various transitional adjustments has led to temporary differences. According to the accounting policies, the company has to account for such differences. According to the accounting policies, the company has to account for such differences. Deferred

Tax adjustments are recognised in correlation to the transactions either in retained earnings profit and loss respectively.

4. Expected Credit Loss

Under Ind AS, the company has to provide loss allowance on Trade Receivables based on the Expected Credit Loss (ECL) model which is measured following the "simplified approach". The Company uses a provision matrix to measure the expected credit losses of trade receivables. The provision matrix is based on its historical observed default rates, adjusted for forward looking estimates. The Company has impaired its Trade Receivables by ? 0.16 million as on March 31, 2025, ? 0.44 million as on March 31, 2024 and its corresponding effect in statement of profit and loss in the respective financial years.

5. Provision for Tax impact on Associate

An Accounting Adjustment has been made where the provision for tax impact is shown in the Audited Financial Statement for the financial year ended March 31, 2025, although it pertains to March 31, 2024. Thus the appropriate adjustment has been made in the Restated Consolidated Financial Information for the financial years ended March 31, 2025 and March 31, 2024 respectively.

6. Interest on delayed payment on MSME

An Accounting adjustment was identified in respect of interest on delayed payments to MSMEs, which had been incorrectly recorded in the audited financial statements for the financial year ended March 31, 2025, amounting to ? 0.14 million. This error has been duly corrected, and the appropriate adjustment has been reflected in the restated consolidated financial information for the financial year ended March 31, 2025.

Part B: Material Regrouping

Appropriate regroupings have been made in the Restated Ind AS Consolidated Statement of Assets and Liabilities, Restated Ind AS Consolidated Statement of Profit and Loss and Restated Ind AS Consolidated Statement of Cash Flows, wherever required, by reclassification of the corresponding items of income, expenses, assets, liabilities and cash flows, in order to bring them in line with the accounting policies and classification as per Ind AS financial information of the Company for the financial years ended March 31, 2026, March 31, 2025 and March 31, 2024 prepared in accordance with Schedule III of Companies Act, 2013, requirements of Ind AS 1 and other applicable Ind AS principles and the requirements of the Securities and Exchange Board of India (Issue of Capital & Disclosure Requirements) Regulations 2018, as amended.

Part C: Non-Adjusting items:

There are no audit qualifications for the respective years, which do not require any adjustments in the Restated Consolidated Financial Information.

Results of Operations based on Restated Consolidated Financial Information

The following table sets forth select financial data from our restated consolidated statement of profit and loss & the components of which are also expressed as a percentage of

total revenue:

Income

The table below sets forth details in relation to our revenue for Fiscal 2026 and Fiscal 2025:

Our revenue from operations increased by ? 654.32 million or 23.41% to ? 3,449.96 million for Fiscal 2026 as compared to ? 2,795.64 million for Fiscal 2025. This increase in revenue from operations was primarily due to increased income from following activities:

The increase in revenue from operations by ? 654.32 million, or 23.41%, was primarily attributable to the following factors:

i. During the year, our Company commenced execution of five new Water & Wastewater Infrastructure work, which collectively contributed revenue of ? 329.82 million. Out of these five projects, two projects were located in New Delhi, two in Uttar Pradesh and one in Madhya Pradesh, contributing revenue of ? 188.96 million, ? 102.36 million and ? 38.50 million, respectively.

ii. In March 2025, our Company has received order for a Road work amounting ? 665.75 million and Company has completed work amounting ? 444.04 million during the financial year 2025-26.

iii. The increase in revenue from operations was partially offset by the completion of the urban infrastructure work and electrical transmission work orders during Fiscal 2025. Accordingly, these projects did not contribute any revenue during Fiscal 2026.

Other operating revenue decreased by ? 48.90 million or 98.84% to ? 0.57 million for Fiscal 2026 compared to ? 49.47 million for Fiscal 2025.

Further, the increase in other income was primarily due to increase in interest income earned on FDRs, the interest income on FDR increased by ? 5.57 million by 38.65% to ? 19.97 million for Fiscal 2026 compared to ? 14.40 million for Fiscal 2025.

Expenses

The table below sets forth details in relation to our total expenses for Fiscal 2026 compared to our total expenses for Fiscal 2025:

Our total expenses increased by ? 456.83 million or 18.80% to ? 2,886.42 million for Fiscal 2026 compared to ? 2,429.59 million for Fiscal 2025. This was primarily attributable to:

Cost of Revenue from Operations

The table below sets forth details in relation to our cost of Revenue from operations for the financial years indicated below:

Our cost of revenue from operations decreased by ? 127.68 million, or 5.17%, to ? 2,340.16 million for Fiscal 2026 from ? 2,467.84 million for Fiscal 2025. The decrease was primarily attributable to a reduction in the purchase of materials by ? 300.82 million, or 27.82%, to ? 780.51 million for Fiscal 2026 from ? 1,081.33 million for Fiscal 2025. The reduction in material consumption was primarily due to certain work orders being in the final stages of execution during Fiscal 2026, which required comparatively lower material inputs. Further, our Company commenced execution of certain new work orders during the year, where the initial stages of execution primarily involved subcontracting and job work activities, with material consumption expected to increase in the subsequent stages of execution. Further the order awarded & partially executed during the financial year 2026 were better profit margin orders. Consequently, the growth in revenue outpaced the cost of revenue from operations, leading to an improvement in our gross profit margin during Fiscal 2026.

Accordingly, our job work charges increased by ? 157.59 million, or 12.08%, to ? 1,461.77 million for Fiscal 2026 from ? 1,304.18 million for Fiscal 2025, reflecting the higher level of subcontracting activities undertaken during the initial stages of execution of such newly awarded projects.

Although revenue from operations increased by 23.41% during Fiscal 2026, the cost of revenue from operations decreased by 5.17%. This was primarily attributable to changes in the project mix and the stage of execution of various work orders as explained in above paragraphs.

Change in inventories of work-in-progress

The table below sets forth details in relation to changes in inventories for the financial years indicated below:

Employee benefits expense

Our employee benefits expense increased by t 18.00 million or 17.93% to t 118.35 million for Fiscal 2026 from t 100.35 million for Fiscal 2025. The increase primary due to increase in:

Our Employees benefit expense increased primarily due to increase in salaries and wages by t 16.10 million or 21.56% to t 90.78 million for Fiscal 2026 from t 74.68 million for Fiscal 2025 due to increment and incentives provided by our Company. The Company expenses towards the staff welfare expenses & gratuity expense has also increased by 72.99% & 32.78% or t 1.30 million & t 0.51 million, respectively.

Further, as a percentage of our total revenue, the cost of employee benefit expenses has decreased to 3.41% in Fiscal 2026 from 3.57% in Fiscal 2025.

Other expenses

Our other expenses increased by t 5.54 million or 11.51% to t 53.65 million for Fiscal 2026 as compared to t 48.11 million for Fiscal 2025. This increase was primarily due to increase in legal and professional charges of t 7.76 million, increase in repair and maintenance of t 2.03 million and increase in Corporate Social Responsibility of t 2.07 million. Further, there was a decrease in interest on late payment of MSME by t 3.79 million and decrease in fee & subscription of t 3.02 million.

Further, as a percentage of our total revenue, the other expenses also decreased to 1.55% in Fiscal 2026 from 1.71% in Fiscal 2025.

EBITDA

For the reasons described above, our EBITDA increased by t 225.48 million, or 45.43%, to t 721.75 million for Fiscal 2026 from t 496.27 million for Fiscal 2025.

Finance costs

The table below sets forth details in relation our finance cost for the financial years indicated below:

Our finance costs increased by t 22.64 million or 24.50% to t 115.02 million for Fiscal 2026 compared to t 92.39 million for Fiscal 2025. This increase was primarily due to increase in commission which is due to increase in bank guarantee of our Company by t 567.17 million or 50.95% to t 1,680.33 million for Fiscal 2026 from t 1113.16 million for Fiscal 2025. Additionally, there is also an increase in interest cost on secured & unsecured loans & others by t 2.86 million and t 7.51 million respectively.

Depreciation and Amortisation Expense

Our depreciation and amortisation expense increased by t 1.80 million or 9.86% to t 20.04 million for Fiscal 2026 compared to t 18.24 million for Fiscal 2025. This increase was due to increase in the value of Property, plant and equipment as our Company added depreciable assets of t 13.91 million in Fiscal 2026 and t 33.09 million in Fiscal 2025.

Restated Profit before Tax

As a result of the foregoing factors, our profit before tax increased by t 201.04 million or 52.13% to t 586.69 million for Fiscal 2026 as compared to t 385.65 million for Fiscal 2025. This increase was on account of increased order flow, higher operations and better realizations.

Tax Expenses

Our tax expenses increased by t 49.93 million or 48.19% to t 153.54 million for Fiscal 2026 compared to t 103.61 million for Fiscal 2025. The increase in tax expenses during Fiscal 2026 is mainly on account of increase in current tax by t 50.59 million, or 48.21%, to t 155.53 million for Fiscal 2026 from t 104.94 million for Fiscal 2025. The increase in current tax was primarily on account of increase in taxable income for Fiscal 2026.

Restated Profit for the Year

Our profit for the year increased by t 151.11 million or 53.58% to t 433.15 million for Fiscal 2026 compared to t 282.04 million for Fiscal 2025 primarily due to the following factors:

i. During the year, our Company commenced execution of five new water and wastewater infrastructure works, which collectively contributed revenue of t 329.82 million. Out of five projects, two projects were located in New Delhi, two in Uttar Pradesh and one in Madhya Pradesh, contributing revenue of t 188.96 million, t 102.36 million and t 38.50 million, respectively.

ii. In March 2025, our Company has received order for a Road work amounting t 665.75 million and Company has completed work amounting t 444.04 million during the financial year 2025 - 26.

iii. During the year, there was a reduction in the purchase of materials by t 300.82 million, or 27.82%, to t 780.51 million for Fiscal 2026 from t 1,081.33 million for Fiscal 2025, due to certain work orders being in the final stages of execution commenced execution of certain new work orders during the year.

iv. During the year, the changes in inventory of work in progress has been increased by t 536.54 million or 180.45% to t 239.20 million for Fiscal 2026 from t (297.34) million for Fiscal 2025.

FISCAL 2025 COMPARED TO FISCAL 2024

Income

The table below sets forth details in relation to our revenue for Fiscal 2025 and Fiscal 2024:

Our revenue from operations increased by ? 534.62 million or 23.65% to ? 2,795.64 million for Fiscal 2025 as compared to ? 2,261.02 million for Fiscal 2024. This increase in revenue from operations was primarily due to increased income from following activities:

The revenue from operations has increased by 23.65% or ? 534.62 million mainly due to:

i. Company has started the work of urban infrastructure work in Fiscal 2025 & Company has earned ? 248.38 million from the said segment in the same fiscal and

ii. Company has also started work of electrical work in Fiscal 2025 & Company has earned ? 210.30 million from the said segment in the same fiscal.

Apart from the above reasons, the revenue from water & wastewater infrastructure works and revenue from Operation and Maintenance works has also increased by ? 187.13 million & 10.71 million, respectively.

Other operating revenue decreased by ? 142.27 million or 74.20% to ? 49.47 million for Fiscal 2025 compared to ? 191.75 million for Fiscal 2024.

The increase in other income was primarily due to increase in interest income earned on deposits/FDRs, the interest income on FDR increased by ? 2.92 million by 25.43% to ? 14.40 million for Fiscal 2025 compared to ? 11.48 million for Fiscal 2024.

Expenses

The table below sets forth details in relation to our total expenses for Fiscal 2025 compared to our total expenses for Fiscal 2024:

Our total expenses increased by ? 414.38 million or 20.56% to ? 2,429.59 million for Fiscal 2025 compared to ? 2,015.20 million for Fiscal 2024.

This was primarily attributable to:

Cost of Revenue from Operations

The table below sets forth details in relation to our cost of Revenue from operations for the financial years indicated below:

Our cost of revenue for operations increased by ? 559.85 million or 29.34% to ? 2,467.84 million for Fiscal 2025 compared to ? 1,907.99 million for Fiscal 2024. This increase was primarily due to increase in purchases of material for construction, store & consumables, freight charges, Labour Processing, Testing and Car & Machinery Hire Charges, Rent, job work charges and other expenses due to increase in sales of services.

The cost of material purchases has increased by 24.72% or ? 214.35 million and at the same time Company has paid job work charges of ? 1,304.18 million for Fiscal 2025, which has increased by 34.05% as compared to ? 972.90 million for Fiscal 2024.

The cost of revenue from operations has increased by 29.34% while revenue has increased by 23.65% at the same time.

Change in inventories of work-in-progress

The table below sets forth details in relation to changes in inventories for the financial years indicated below:

Employee benefits expense

Our employee benefits expense increased by ? 40.03 million or 66.36% to ? 100.35 million for Fiscal 2025 from ? 60.32 million for Fiscal 2024. The increase primary due to increase in:

The salaries and wages have increased by t 32.00 million or 74.97% due to increase in number of employees. Further the directors salary has also increased by 52.17%. The Company expenses towards the staff welfare expenses & gratuity expense has also increased by 157.78% & 52.31%, respectively.

Further, as a percentage of our total revenue, the cost of employee benefit expenses has increased to 3.57% in Fiscal 2025 from 2.65% in Fiscal 2024.

Finance costs

The table below sets forth details in relation our finance cost for the financial years indicated below:

Our finance costs increased by t 13.10 million or 16.52% to t 92.39 million for Fiscal 2025 compared to t 79.29 million for Fiscal 2024. This increase was primarily due to increase in interest cost on secured & unsecured loans & finance charges paid by the Company.

Depreciation and Amortisation Expense

Our depreciation and amortisation expense increased by t 7.88 million or 76.02% to t 18.24 million for Fiscal 2025 compared to t 10.36 million for Fiscal 2024. This increase was due to increase in the value of plant & machinery, office equipments. and other assets. Company added depreciable assets of t 33.09 million in Fiscal 2025 and t 34.44 million in Fiscal 2024.

Other expenses

Our other expenses increased by t 22.83 million or 90.31% to t 48.11 million for Fiscal 2025 as compared to t 25.28 million for Fiscal 2024. This increase was primarily due to increase in interest paid on late payment of MSME of t 10.16 million, increase in Fee & Subscription charges by t 3.38 million, increase in Travelling & Conveyance charges by t 5.59 million. Further, the other charges such as printing & stationery, advertisement & business promotion expenses, insurance charges, Tender fee, charity & donation, Electricity & Generator charges, Repairs & Maintenance, Rent, rates & taxes, Watch & Ward, Interest on Government Dues, CSR Expenses which was increased due to increase in operations during the year. Further, as a percentage of our total revenue, the other expenses also increased to 1.71% in Fiscal 2025 from 1.11% in Fiscal 2024.

EBITDA

For the reasons described above, our EBITDA increased by t 146.03 million, or 41.69%, to t 496.27 million for Fiscal 2025 from t 350.25 million for Fiscal 2024.

Restated Profit before Tax

As a result of the foregoing factors, our profit before tax increased by t 125.05 million or 47.98% to t 385.65 million for Fiscal 2025 as compared to t 260.60 million for Fiscal 2024. This increase was on account of increased order flow, higher operations and better realizations.

Tax Expenses

Our tax expenses increased by t 33.55 million or 47.90% to t 103.61 million for Fiscal 2025 compared to t 70.06 million for Fiscal 2024. The increase in tax expenses during Fiscal 2025 is mainly on account of increase in current

tax by t 34.50 million, or 48.98%, to t 104.94 million for Fiscal 2025 from t 70.44 million for Fiscal 2024. The increase in current tax was primarily on account of increase in taxable income for Fiscal 2025.

Restated Profit for the Year

As a result of the foregoing factors, our profit for the year increased by t 91.49 million or 48.02% to t 282.04 million for Fiscal 2025 compared to t 190.54 million for Fiscal 2024.

CASH FLOW BASED ON RESTATED CONSOLIDATED FINANCIAL INFORMATION

For further details, kindly refer "Restated Consolidated Financial Information " beginning on page 364.

Net Cash Flow from Operating activities

Net cash flow from operating activities comprises cash consumed / generated from operations, increase / decrease in working capital and increase / decrease in non-current / current liabilities.

Fiscal 2026

During the Fiscal 2026, our net cash flow from operating activities was t 286.95 million. Profit before tax stood at t 586.69 million. Non-cash adjustments were on account of interest expense of t 115.02 million, depreciation and amortisation expenses on property, plant and equipment of t 20.04 million, interest received of t 19.97 million, gain from associates of t 3.13 million, provision for expected credit loss of t 1.20 million and remeasurement gain on defined benefit plan of t 1.04 million.

Operating profit before working capital changes was at t 700.90 million during Fiscal 2026. Changes in working capital included decrease in inventories of t 206.07 million, an increase in trade payables of t 440.81 million, an decrease in short term borrowings of t 6.45 million, an increase in other current assets of t 18.93 million, an increase in other financial assets (Non-Current other than bank deposits) of t 260.47 million, an decrease in other financial assets (Current other than bank deposits) of t 33.19 million, an decrease in other financial liabilities (Current) of t 161.44 million, an increase in other current liabilities of t 37.47 million, an increase in provisions of t 1.04 million, an increase in trade receivables of t 599.12 million, an increase in other non-current assets of t 1.89 million.

Cash generated from operation was t 371.18 million and an income tax paid of t 84.23 million, consequently, Cash inflow from operations during Fiscal 2026 was t 286.95 million.

The increase in our trade receivables as at March 31, 2026 was primarily attributable to the timing of billing during Fiscal 2026, with approximately 40% of our revenue from operations of t 3,449.96 million being billed during the fourth quarter while approximately 56% was billed during the third and fourth quarters combined. Consequently, a substantial portion of the invoices remained outstanding as at the fiscal year-end, resulting in trade receivables of t 1,179.76 million, of which t 1,131.08 million were outstanding for less than six months.

Our trade payables increased by t 440.81 million to t 565.84 million as at March 31, 2026 from t 125.03 million as at March 31, 2025. As our working capital requirements increased due to higher deployment towards long-term customer retention deposits, which increased by t 273.38 million during the financial year to t 563.35 million as at March 31, 2026 from t 289.97 million as at March 31, 2025. Owing to these factors, including higher receivables and increased working capital deployment.

Fiscal 2025

During the Fiscal 2025, net cash inflow from operating activities was t 216.84 million. Profit before tax stood at t 385.65 million. Non-cash adjustments were on account of interest expense of t 92.39 million, depreciation and

amortisation expenses on property, plant and equipment of t 18.24 million, interest received of t 14.40 million, Gain from associates of t 5.19 million, provision for expected credit loss of t 0.16 million and Remeasurement gain on defined benefit plan of t 0.01 million.

Operating profit before working capital changes was at t 476.84 million during Fiscal 2025. Changes in working capital included increase in inventories of t 331.88 million, an decrease in trade payables of t 85.60 million, an increase in short term borrowings of t 77.36 million, an decrease in other current assets of t 52.62 million, an increase in other financial assets (Non Current other than bank deposits) of t 69.52 million, an increase in other financial assets (Current other than bank deposits) of t 58.15 million, an decrease in other financial liabilities (Non Current) of t 47.07 million, an increase in other financial liabilities (Current) of t 5.56 million, a decrease in other current liabilities of t 106.62 million, an increase in provisions of t 1.48 million, a decrease in trade receivables of t 419.83 million, an increase in other non current assets of t 7.00 million and an income tax paid of t 111.01 million. Cash inflow from operations during Fiscal 2025 was t 216.84 million.

Fiscal 2024

During the Fiscal 2024, net cash inflow from operating activities was t 13.99 million. Profit before tax stood at t 260.60 million. Non-cash adjustments were on account of interest expense of t 79.29 million, depreciation and amortisation expenses on property, plant and equipment of t 10.36 million, interest received of t 11.66 million, Gain from associates of t 2.82 million, provision for expected credit loss of t 0.44 and Remeasurement loss on defined benefit plan of t 0.14 million.

Operating profit before working capital changes was at t336.07 million during the Fiscal 2024. Changes in working capital included increase in inventories of t 84.91 million, an decrease in trade payables of t 75.58 million, an increase in short term borrowings of t 246.33 million, an increase in other current assets of t 20.50 million, an decrease in other financial assets (Non Current other than bank deposits) of t 65.83 million, an increase in other financial assets (Current other than bank deposits) of t 231.63 million, an increase in other financial liabilities (Non Current) of t 47.07 million, an increase in other financial liabilities (Current) of t 140.26 million, an increase in other current liabilities of t 117.02 million, a increase in provisions of t 1.17 million, an increase in trade receivables of t 493.23 million, a decrease in other non current assets of t 3.08 million and an income tax paid of t 37.00 million. Cash inflow from operations during the Fiscal 2024 was t 13.99 million.

The trade receivables of our Company were high as at March 31, 2024 because out of the total turnover achieved by the Company for FY 2023-24 of t 2,261.02 million, 60% turnover was billed during the 4th quarter and 80% was billed during 3rd & 4th Quarter combined. Hence the trade receivables of the Company for less than six months were t 974.57 million out of the total trade receivables of t 1,001.83 million as at March 31, 2024, because major billing was done in last two quarters of FY 2023-24.

Investing Activities

Net cash flow from investing activities comprises proceeds from purchase and sale of fixed assets including capital work-in-progress, sale/adjustment of property, plant and equipment, and increase in Investment Property.

Fiscal 2026

Net cash used in investing activities stood of t 75.85 million as at the end of Fiscal 2026, primarily on account of net investment made in property, plant and equipment including capital work in progress is t 16.45 million and interest received of t 19.97 million, decrease in investment in associates of t 53.30 million and negative movement in bank balances other than cash and cash equivalent including fixed deposits of t 132.66 million.

Fiscal 2025

Net cash used in investing activities stood of t 126.38 million as at the end of Fiscal 2025, primarily on account of net investment made in property, plant and equipment including capital work in progress is t 41.51 million and increase in investment in associates of t 45.18 million, interest received of t 14.40 million and negative movement in bank balances other than cash and cash equivalent including fixed deposits of t 54.09 million.

Fiscal 2024

Net cash received through investing activities stood of t 2.63 million as at the end of Fiscal 2024, primarily on account of net investment made in property, plant and equipment including capital work in progress is t 24.81 million, decrease in investments of t 3.35 million, decrease in investment in associates of t 2.00 million, interest received of t 11.66 million and positive movement in bank balances other than cash and cash equivalent including fixed deposits of t 10.43 million.

Financing activities

Net cash flow from financing activities comprises impact due to business combination, proceeds / repayment of borrowing, interest and financial charges.

Fiscal 2026

Net cash used in financing activities stood of t 85.23 million as at the end of Fiscal 2026, primarily on account of interest paid of t 115.02 million and proceeds from long-term borrowings of t 29.79 million.

Fiscal 2025

Net cash used in financing activities stood of t 96.55 million as at the end of Fiscal 2025, primarily on account of interest paid of t 92.39 million and repayment of long-term borrowings of t 4.17 million.

Fiscal 2024

Net cash used in financing activities stood of t 32.56 million as at the end of Fiscal 2024, primarily on account of interest paid of t 79.29 million and proceeds from long-term borrowings of t 46.73 million.

INDEBTEDNESS

For the information relating to our outstanding indebtedness as of May 31, 2026, kindly refer "Financial Indebtedness" beginning on page 473.

CAPITAL EXPENDITURES

Our capital expenditure towards additions to fixed assets (property, plant and equipments and intangible assets) and capital work-in-progress for the financial years ended March 31, 2026, March 31, 2025 and March 31, 2024 were t16.45 million, t 41.51 million and t 24.81 million, respectively.

The following table sets forth our Net block of fixed assets for the financial years indicated:

CONTINGENT LIABILITIES AND COMMITMENTS

For further details, kindly refer "Restated Consolidated Financial Information - Annexure 46 - Contingent Liabilities " beginning on page 438.

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.

RELATED PARTY TRANSACTIONS

We enter into various transactions with related parties in the ordinary course of business. These transactions principally include purchase of materials and equipment from entities where any of our KMPs or their relatives have control or significant influence and sale of services to our group Companies/joint ventures, interest expense paid and unsecured loan taken/repaid from related parties and entities where any of our KMPs or their relatives have control or significant influence, remuneration paid to KMPs, and relatives, investment in our joint ventures, expenses incurred on behalf of joint ventures.

For further details, kindly refer "Restated Consolidated Financial Information - Annexure 44 - Related Party Transactions" on page 435.

AUDITORS OBSERVATIONS

There are no audit qualifications which have not been given effect in the restated consolidated financial information.

KEY RATIOS

For details in respect of key ratios, kindly refer "Restated Consolidated Financial Information- Annexure 61 - Ratio Analysis" beginning on page 469.

SIGNIFICANT DEPENDENCE ON SINGLE OR FEW CUSTOMERS

Our business is substantially dependent on Water & Wastewater Infrastructure such as Water Supply Scheme Projects ("WSSPs"), Sewerage Networks, Sewerage Treatment Plants ("STPs"), Wastewater Treatment Plants ("WWTPs"), Transmission mains, Reservoirs, Trenchless & Micro tunnelling Works, Roads and Highways work, Electrical Transmission work, Urban Infrastructure which includes sector-level planning and execution of residential building projects and Operation and Maintenance ("O&M") of public utilities in India awarded by government authorities and other entities funded by the central and/ or state governments. We derive almost all of our revenue from contracts awarded by government entities. Our business could be materially and adversely affected if there are adverse changes in the policies and delays in awarding contracts by these authorities, among other risks.

We bid for projects funded by the Central and State Governments and derive our revenues from the contracts awarded to us. Any reduction in budgetary allocation to this sector may affect the number of projects that the government authorities/bodies may plan to develop in a particular period. Our business is directly and significantly dependent on projects awarded by them.

EXTENT TO WHICH MATERIAL INCREASES IN NET SALES OR REVENUE ARE DUE TO INCREASEDSALES VOLUME, INTRODUCTION OF NEW PRODUCTS OR SERVICES OR INCREASED SALES PRICES

Our business has been affected with uncertainties described in the section "Risk Factors " on page 3 3. Changes in revenue in the last three Fiscals are as described in "Results of Operations Information for the Fiscal 2026 compared with Fiscal 2025 and Fiscal 2025 compared with Fiscal 2024".

COMPETITIVE CONDITIONS

We expect competition in our industry from existing and potential competitors to intensify. For further details on competitive conditions that we face across our various business segments, kindly refer "OurBusiness", "Industry Overview " and "RiskFactors" beginning on pages 249, 167 and 33, respectively.

NEW PRODUCT OR BUSINESS SEGMENTS

As on the date of this Red Herring Prospectus, there are no new products or business segments that have or are expected to have a material impact on our business prospects, results of operations or financial condition.

FUTURE RELATIONSHIP BETWEEN COSTS AND INCOME

Other than as described in "Risk Factors", "Our Business" and "Managements Discussion and Analysis of Financial Conditions and Results of Operations" beginning on pages 33, 249 and 486, respectively, to our knowledge there are no known factors that might affect the future relationship between costs and revenue.

KNOWN TRENDS OR UNCERTAINTIES

Our business has been subject, and we expect it to continue to be subject, to significant economic changes arising from the trends identified above in "Managements Discussion and Analysis of Financial Conditions and Results of Operations - Results of Operations based on Restated Consolidated Financial Information " and the uncertainties described in "Risk Factors " beginning on pages 509 and 3 3, respectively. To our knowledge, except as discussed in this Red Herring Prospectus, there are no known trends or uncertainties that have or had or are expected to have a material adverse impact on sales, revenue or income of our Company from continuing operations.

SIGNIFICANT ECONOMIC CHANGES THAT MATERIALLY AFFECT OR ARE LIKELY TO AFFECTINCOME FROM CONTINUING OPERATIONS

Our business has been subject, and we expect it to continue to be subject, to significant economic changes that materially affect or are likely to affect income from continuing operations identified above in "Managements Discussion and Analysis of Financial Condition and Results of Operations - Results of Operations based on Restated Consolidated Financial Information " and the uncertainties described in "Risk Factors" beginning on pages 507 and 33 respectively.

CHANGES IN THE ACCOUNTING POLICIES, IF ANY, IN THE FISCAL 2026, 2025 AND 2024 AND THEIR EFFECT ON OUR PROFITS AND RESERVES

There have been no changes in our accounting policies in the last three financial years except adoption of Indian Accounting Standard for the purpose of preparation of Restated Consolidated Financial Statement.

UNUSUAL OR INFREQUENT EVENTS OR TRANSACTIONS

Except as described in this Red Herring Prospectus, to our knowledge, there have been no unusual or infrequent events or transactions that have in the past or may in the future affect our business operations or future financial performance.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS

The Companys principal financial liabilities comprise loans, borrowings and trade and other payables. The main purpose of these financial liabilities is to finance the Companys operations. The Companys principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company also holds investments in Partnership Firms. The Company is exposed to market risk, credit risk and liquidity risk. The Companys senior management oversees the management of these risks. The Companys senior management ensures that the Companys financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Companys policies and risk objective. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

(a) 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 risk: interest rate risk, currency risk and other price risk, such as equity price risk. Financial instruments affected by market risk include loans and borrowings.

The Company has no direct exposure to foreign currency risk.

-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 Companys exposure to the risk of changes in market interest rates relates primarily to the Companys long-term debt obligations with floating interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. The Companys policy is to borrow funds at fixed and floating rate of interest.

Interest rate sensitivity

The following table illustrates the sensitivity of profit and equity to a reasonably possible change in interest rates of +/- 1%. These changes are considered to be reasonably possible based on observation of current market conditions. Sensitivity calculations are based on an annualised interest cost on the borrowings at floating rate

as of the reporting dates March 31, 2026, March 31, 2025 and March 31, 2024. All other variables are held constant.

(b) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including investments, deposits with banks and financial institutions and other financial instruments.

(i) Trade receivables

Customer credit risk is managed by the Companys established policies, procedures and controls relating to customer credit risk management. Credit quality of a customer is assessed based on an individual credit limits and are defined in accordance with managements assessment of the customer. Outstanding customer receivables are regularly monitored. The concentration of credit risk is limited due to the fact that the customer base is large. An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses. The Company uses ageing buckets and provision matrix for the purpose of computation of expected credit loss. The provision rates are based on past trend of recoverability. The calculation reflects the probability-weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions. The Company makes provision of expected credit losses on trade receivables using a provision matrix. The provision matrix is based on its historical observed default rates, adjusted for forward looking estimates. At every reporting date, the historical observed default rates are updated and Company makes appropriate provision wherever outstanding is for longer period and involves higher risk

Credit risk from balances with banks is managed by the management in accordance with the Companys policy. Investments of surplus funds are made only with approved counterparties based on limits defined by the management. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterpartys potential failure to make payments.

(c) Liquidity risk

Liquidity risk is the risk that the Company may encounter difficulty in meeting its present and future obligations associated with financial liabilities that are required to be settled by delivering cash or another financial asset. The Companys objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank loans and finance leases. The Company closely monitors its liquidity position and deploys a robust cash management system. It aims to minimise these risks by generating sufficient cash flows from its current operations, which in addition to the available cash and cash equivalents and sufficient committed fund facilities, will provide liquidity. The liquidity risk is managed on the basis of expected maturity dates of the financial liabilities. The carrying amounts are assumed to be reasonable approximation of fair value.

B) Capital management

For the purpose of the Companys capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity holders. The primary objective of the Companys capital management is to maximise the shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Companys policy is to keep the gearing ratio between 0% and 25%. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.

The Companys objectives when maintaining capital are:

(a) to safeguard the entitys ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders, and

(b) to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk