III. Significant Accounting Policies

a) Functional and Presentation Currency

The financial statements are presented in Indian Rupees (INR). All values are rounded to the nearest lakhs with two
decimals, except when otherwise indicated.

b) Use of Estimates and Critical Accounting Judgements

Preparation of financial statements in conformity with Ind AS requires management to make estimates, judgements and
assumptions affecting the application of accounting policies, reported amounts of assets and liabilities, disclosures of
contingent assets and liabilities, and reported revenues and expenses. Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions are recognised prospectively in the period of revision and in future periods affected. Actual
results may differ from such estimates.

c) Current - Non-current Classification

All assets and liabilities are classified as current or non-current based on the Company''s normal operating cycle and other
criteria prescribed under Schedule III to the Companies Act, 2013.

An asset is classified as current when it is expected to be realised, sold or consumed in the normal operating cycle; held
primarily for trading; expected to be realised within twelve months after the reporting date; or represents cash or a cash
equivalent not restricted from use for at least twelve months. All other assets are classified as non-current.

A liability is classified as current when it is expected to be settled in the normal operating cycle; held primarily for trading;
due to be settled within twelve months after the reporting date; or the Company does not have an unconditional right to
defer settlement for at least twelve months. All other liabilities are classified as non-current.

The Company has ascertained its normal operating cycle as twelve months for the purpose of current/non-current
classification.

d) Revenue Recognition

Revenue from contracts with customers is recognised when the Company satisfies a performance obligation by transferring
control of the promised goods or services to the customer.

Sale of Products: Revenue is recognised at a point in time, generally upon receipt of goods by the customer, when control is
transferred. Revenue is recognised to the extent of the transaction price allocated to the performance obligation satisfied.

Sale of Services: Revenue is recognised over time as services are rendered, based on the relevant agreements or
arrangements.

Transaction price excludes amounts collected on behalf of third parties. Variable consideration is estimated using the
expected value method or the most likely amount, as appropriate. Payment terms are as per normal business practice and
generally do not contain a significant financing component.

Interest Income: Recognised on a time-proportion basis considering the amount outstanding and the applicable interest
rate.

Dividend Income: Recognised when the right to receive payment is established.

Other Income: Recognised when the right to receive such income arises, it is probable that economic benefits will flow to
the Company, and the amount can be measured reliably.

e) Property, Plant and Equipment

Freehold land is carried at historical cost. Other property, plant and equipment are stated at cost of acquisition or
construction less accumulated depreciation and accumulated impairment losses, if any.

Cost includes purchase price, taxes, non-refundable duties, freight and other directly attributable costs necessary to bring
the asset to its intended location and condition. Applicable borrowing costs for qualifying assets are capitalised.

Subsequent expenditure is capitalised when it meets the recognition criteria. Routine repairs and maintenance are charged
to the Statement of Profit and Loss as incurred. Significant components having different useful lives are accounted for
separately. Replaced components are derecognised.

An item of property, plant and equipment is derecognised on disposal or when no future economic benefits are expected.
Gain or loss on disposal is recognised in the Statement of Profit and Loss.

Residual values, useful lives and depreciation methods are reviewed at each financial year-end. Spares used only with
specific plant and machinery and expected to be used for more than one accounting period are capitalised. Assets under
construction are recognised as capital work-in-progress.

f) Goodwill and Other Intangible Assets

Goodwill arising on acquisition of a business is measured at cost less accumulated impairment losses and is assessed for
impairment at each balance sheet date.

Intangible assets are recognised when it is probable that future economic benefits will flow to the Company. Non-compete
and customer relationship intangibles acquired in a business combination are recognised at fair value at the acquisition
date. Separately acquired software is initially measured at cost.

Intangible assets with finite useful lives are subsequently carried at cost less accumulated amortisation and accumulated
impairment losses. Gains or losses on derecognition are recognised in the Statement of Profit and Loss.

g) Depreciation of Property, Plant and Equipment

Depreciation is computed using the written-down value method based on management''s estimate of useful lives. Land is
not depreciated but is subject to impairment testing. Depreciation commences when the asset is available for its intended
use.

Capitalised spares are depreciated over the useful life or remaining useful life of the related plant and machinery.

Useful lives and residual values are reviewed at least annually, and changes are accounted for as changes in accounting
estimates.

h) Amortisation of Intangible Assets

Intangible assets, other than goodwill, are amortised in the Statement of Profit and Loss over their estimated useful lives
from the date they are available for use, based on the expected pattern of consumption of economic benefits. At present,
amortisation is on the written-down value basis.

i) Impairment of Non-financial Assets

The carrying amounts of property, plant and equipment, capital work-in-progress and intangible assets are reviewed at
each balance sheet date for indicators of impairment. Where an indication exists, recoverable amount is estimated.

Recoverable amount is the higher of fair value less costs to sell and value in use. For value-in-use calculations, estimated
future cash flows are discounted using an appropriate pre-tax discount rate. Assets are grouped into cash-generating units
where appropriate.

Impairment losses are recognised when carrying amount exceeds recoverable amount. Previously recognised impairment
losses are reassessed at each reporting date and may be reversed, subject to the limitation that the revised carrying
amount does not exceed the amount that would have been determined had no impairment been recognised.

j) Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are capitalised as
part of the cost of such assets. Capitalisation is suspended during extended periods of delay other than temporary
interruption. Other borrowing costs are recognised in the Statement of Profit and Loss as incurred.

k) Inventories

Raw materials, components, stores and spare parts are valued at the lower of cost and net realisable value. Cost includes
purchase price, duties and taxes not recoverable from taxing authorities, inward freight and other costs incurred in bringing
inventories to their present location and condition. Cost is determined using the FIFO method.

Finished goods are valued at the lower of cost and net realisable value on an item-by-item basis. Cost includes direct
materials, labour and an appropriate portion of production overheads, with fixed production overheads allocated based on
normal capacity.

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

l) Leases

The Company applies Ind AS 116, "Leases", to its lease contracts.

Company as Lessee: A right-of-use asset and lease liability are recognised when a contract conveys the right to control the
use of an identified asset. Right-of-use assets are initially measured based on the lease liability, lease payments made at or
before commencement and initial direct costs, and subsequently carried at cost less accumulated depreciation and
impairment losses, adjusted for lease remeasurements. They are depreciated on a straight-line basis over the shorter of the
lease term and useful life.

Lease liabilities are measured at the present value of unpaid lease payments, discounted using the interest rate implicit in
the lease or, where not readily determinable, the incremental borrowing rate. Short-term and low-value leases are
recognised as an operating expense on a straight-line basis.

Company as Lessor: Rental income from operating leases is recognised in the Statement of Profit and Loss on a straight-line
basis over the lease term, unless another systematic basis better reflects the pattern of benefit.

m) Employee Benefits

Short-term Benefits: Benefits payable wholly within twelve months are recognised as an expense as the related service is
rendered. Provision for bonuses is recognised where the Company has a contractual or constructive obligation.

Defined Contribution Plans: Contributions to publicly administered provident funds are recognised as employee benefit
expense when due. Prepaid contributions are recognised as an asset to the extent that a refund or reduction in future
payments is available.

Defined Benefit Plans: Gratuity, superannuation and other defined benefit obligations are measured using the Projected
Unit Credit Method with actuarial valuation at each balance sheet date. Remeasurements are recognised immediately in
Other Comprehensive Income and are not reclassified to profit or loss. Service cost and net interest are recognised within
employee costs.

Other Long-term Benefits: Compensated absences are measured at the present value of estimated future cash outflows
using the Projected Unit Credit Method. Actuarial gains and losses are recognised in the Statement of Profit and Loss.

Termination Benefits: Recognised at the earlier of the date when the Company can no longer withdraw the offer and the
date on which restructuring costs involving termination benefits are recognised.

Employee Stock Option Plans: Fair value at the grant date, considering time and performance vesting conditions, is
recognised as employee benefit expense over the vesting period.

n) Foreign Exchange Transactions

Foreign currency transactions are recorded at the exchange rate prevailing on the transaction date. Year-end monetary
assets and liabilities denominated in foreign currencies are translated at closing exchange rates.

Non-monetary items measured at historical cost are translated using the transaction-date exchange rate. Non-monetary
items measured at fair value are translated using the exchange rate when fair value was determined. Exchange differences
are recognised in the Statement of Profit and Loss, except where recognition follows the treatment of the related fair value
gain or loss in Other Comprehensive Income.

The Company applies the expected credit loss ("ECL”) model for measurement and recognition of impairment
loss on trade receivables. For this purpose, the Company follows a "simplified approach” for recognition of
impairment loss allowance on the trade receivable balances. As a practical expedient, the Company uses a
provision matrix to determine impairment loss allowance on portfolio of its trade receivables. The provision
matrix is based on its historically observed default rates over the expected life of the trade receivables and is
adjusted for forwardlooking estimates. Further, need for incremental provisions have been evaluated on a case
to case basis considering forward-looking information based on the financial health of a customer if available,
litigations/disputes etc.

Note: 6,341,514 equity shares were issued during the year ended March 31, 2024, consequent of business
combination to and as part of the slum sale business transfer arrangement.

b) Terms/ rights attached to equity shares

The Company has a single class of equity shares. Accordingly all equity shares rank equally with regard
to dividend and share in the Company''s residual assets. The equity shareholders are entitled to receive
dividend as declared from time to time. The voting rights of an equity shareholders on a poll (not on show
of hands) are in proportion to its share of the paid-up equity capital of the Company. Voting rights cannot
be exercised in respect of shares on which any call or other sums presently payable have not been paid.

On winding up of the company, the holders of equity shares will be entitled to receive the residual assets of the
company, remaining after distribution of all preferential amounts in proportion to the number of equity shares
held.

Note : As per records of the Company, including its register of shareholders/ members and other declaration
received from shareholders regarding beneficial interest, the above shareholding represent both legal and
beneficial ownership of shares.

. Equity shares allotted as fully paid-up (during 5 years preceding ending March 31, 2025) pursuant to contracts
e)

without payment being received in cash.

During the year ended March 31, 2024, the Company has acquired Stallion Enterprise, a proprietary concern
owned by Mr. Shazad Rustomji, under slum sale through business transfer agreement dated September 30,
2023. This transaction was approved by the Shareholder of the Company on September 28, 2023 and was
consummated on September 30, 2023 through preferential issue of 6,341,514 equity shares of the Company to
Mr. Shazad Rustomji at a price of INR 51.20 per equity share. Accordingly, the Equity Share capital and Securities
Premium has been credited with INR 664.20 lacs and INR 2,736.50 lacs respectively on the settlement of the
purchase consideration. The effect of the said transaction is reflected in the Statement of Changes in Equity.

b) Nature and purpose of reserves

(i) Securities Premium

Securities premium is used to record premium received on issue of shares. The reserve is utilised in accordance
with the provisions of the Indian Companies Act, 2013 (the "Companies Act”).

(ii) Retained Earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve,
dividends or other distributions paid to shareholders.

(iii) Other Comprehensive Income

This Reserve represents the cumulative gains (net of losses) arising on the revaluation of items measured
at fair value through Other Comrehensive Income, net of amounts reclassified, If any, to Retained Earnings
when those instruments are disposed off.