O. Provisions and contingent liabilities

Provision

A provision is recognized when the Company has
a present obligation as a result of 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. Provisions are
not discounted to their present value and are
determined based on the best estimate required
to settle the obligation at the reporting date. These
estimates are reviewed at each reporting date and
adjusted to reflect the current best estimates.

Contingent liabilities

A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence
of one or more uncertain future events beyond the
control of the Company or a present obligation that
is not recognized because it is not probable that
an outflow of resources will be required to settle
the obligation. A contingent liability also arises
in extremely rare cases where there is a liability
that cannot be recognized because it cannot be
measured reliably. The Company does not recognize
a contingent liability but discloses its existence in
the standalone financial statements.

P. Cash and cash equivalents

The Company considers all highly liquid financial
instruments, which are readily convertible into
known amounts of cash that are subject to an
insignificant risk of change in value and having
original maturities of three months or less from the
date of purchase, to be cash equivalents.

Q. Financial instruments

A financial instrument is any contract that gives
rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.

(i) Financial assets

Recognition and initial measurement

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

Subsequent measurement

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

a) at amortized cost; or

b) at fair value through other
comprehensive income; or

c) at fair value through profit or loss.

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

Amortized cost

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

Fair value through other comprehensive
income (FVTOCI)

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

Fair value through profit or loss (FVTPL)

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

Equity instruments

All equity investments in scope of Ind AS 109
are measured at fair value. Equity instruments
which are held for trading and contingent
consideration recognized by an acquirer in
a business combination to which Ind AS103
applies are classified as at FVTPL. For all other
equity instruments, the Company may make
an irrevocable election to present in other
comprehensive income subsequent changes
in the fair value. The Company makes such
election on an instrument- by-instrument
basis. The classification is made on initial
recognition and is irrevocable.

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

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

Impairment of financial assets

In accordance with Ind AS 109, Financial
Instruments, the Company applies expected
credit loss (ECL) model for measurement and
recognition of impairment loss on financial
assets that are measured at amortized
cost and FVTOCI.

For recognition of impairment loss on financial
assets and risk exposure, the Company
determines that whether there has been a
significant increase in the credit risk since initial
recognition. If credit risk has not increased
significantly, 12-month ECL is used to provide
for impairment loss. However, if credit risk has
increased significantly, lifetime ECL is used. If in
subsequent years, credit quality of the instrument
improves such that there is no longer a significant
increase in credit risk since initial recognition,
then the entity reverts to recognizing impairment
loss allowance based on 12 month ECL.

Life time ECLs are the expected credit losses
resulting from all possible default events over
the expected life of a financial instrument.
The 12 month ECL is a portion of the lifetime
ECL which results from default events that are
possible within 12 months after the year end.

ECL is the difference between all contractual cash
flows that are due to the Company in accordance
with the contract and all the cash flows that
the entity expects to receive (i.e. all shortfalls),
discounted at the original EIR. When estimating
the cash flows, an entity is required to consider
all contractual terms of the financial instrument
(including prepayment, extension etc.) over the
expected life of the financial instrument. However,
in rare cases when the expected life of the financial
instrument cannot be estimated reliably, then the
entity is required to use the remaining contractual
term of the financial instrument.

In general, it is presumed that credit risk has
significantly increased since initial recognition
if the payment is more than 30 days past due.

In respect of trade receivables, the Company
applies the simplified approach of Ind AS
109 'Financial Instruments', which requires
measurement of loss allowance at an amount
equal to lifetime expected credit losses. Lifetime
expected credit losses are the expected credit
losses that result from all possible default events
over the expected life of a financial instrument.

ECL impairment loss allowance (or reversal)
recognized during the year is recognized as
income/expense in the statement of profit
and loss. In standalone balance sheet ECL for
financial assets measured at amortized cost is
presented as an allowance, i.e. as an integral
part of the measurement of those assets in
the standalone balance sheet. The allowance
reduces the net carrying amount. Until the asset
meets write off criteria, the Company does not
reduce impairment allowance from the gross
carrying amount.

A financial asset is derecognized only when:

a) the rights to receive cash flows from the
financial asset is transferred or

b) retains the contractual rights to receive
the cash flows of the financial asset, but
assumes a contractual obligation to pay
the cash flows to one or more recipients.

(ii) Financial liabilities

Recognition and initial measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss and at amortized cost,
as appropriate.

All financial liabilities are recognized initially
at fair value and, in the case of borrowings
and payables, net of directly attributable
transaction costs.

Subsequent measurement

The measurement of financial liabilities depends
on their classification, as described below:

Financial liabilities at fair value through profit
or loss

Financial liabilities at fair value through profit or
loss include financial liabilities held for trading
and financial liabilities designated upon initial
recognition as at fair value through profit or loss.

Loans and borrowings

After initial recognition, interest-bearing loans
and borrowings are subsequently measured
at amortized cost using the EIR method. Gains
and losses are recognized in Statement of Profit
and Loss when the liabilities are derecognized
as well as through the EIR amortization process.
Amortized cost is calculated by taking into
account any discount or premium on acquisition

and fees or costs that are an integral part of the
EIR. The EIR amortization is included as finance
costs in the Statement of Profit and Loss.

Derecognition

A financial liability is derecognized when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the
terms of an existing liability are substantially
modified, such an exchange or modification
is treated as the derecognition of the original
liability and the recognition of a new liability. The
difference in the respective carrying amounts is
recognized in the Statement of Profit and Loss
as finance costs.

R. Segment reporting

The Company has the policy of reporting the
segments in a manner consistent with the internal
reporting provided to the Chief Operating Decision
Maker (CODM). The chief operating decision maker
is considered to be the Board of Directors who
makes strategic decisions and is responsible for
allocating resources and assessing performance of
the operating segments.

S. Convertible preference shares/ debentures

Convertible preference shares / debentures are
separated into liability and equity components
based on the terms of the contract.

On issuance of the convertible preference shares /
debentures, the fair value of the liability component
is determined using a market rate for an equivalent
non-convertible instrument. This amount is classified
as a financial liability measured at amortised cost
(net of transaction costs) until it is extinguished on
conversion or redemption.

The remainder of the proceeds is allocated to the
conversion option that is recognised and included
in equity since conversion option meets Ind AS 32
criteria for conversion right. Transaction costs are
deducted from equity, net of associated income tax.
The carrying amount of the conversion option is not
re-measured in subsequent years.

Transaction costs are apportioned between the
liability and equity components of the convertible
preference shares / debentures based on
the allocation of proceeds to the liability and
equity components when the instruments are
initially recognised.

T. Standards issued/amended and
became effective

The MCA notified new standards or amendment
to existing standards under Companies (Indian
Accounting Standards) Rules as issued from
time to time. The Company has applied following
amendments for the first-time during the current
year which are effective from 01 April 2025.

Amendments to Ind AS 1 - Classification of liabilities
as current or non-current liabilities with covenants

MCA via notification dated 13 August 2025
announced amendments to Ind AS 1, Presentation of
Financial Statements, which elaborate on guidance
set out in Ind AS 1 by:

• Clarifying that the right to defer settlement
of a liability for at least 12 months after the
reporting period;

- Must have substance; and

- Must exist at the end of the reporting period;

• Stating that management's expectations
around whether the settlement of a liability
would be deferred or not, does not impact the
classification of the liability;

• Including requirements of liabilities that can be
settled using an entity's own instruments; and

• Stating that at the reporting date, the entity
does not consider covenants that will need to
be complied with in the future when considering
the classification of the debt as current
and non-current.

In addition an entity is required to disclose when a
liability arising from a loan agreement is classified
as non-current and the entity's right to defer
settlement is contingent on compliance with future
covenants within twelve months.

The Company has reviewed the new pronouncement
and based on its evaluation has determined that
these amendments do not have a significant impact
on the Company's standalone financial statements.

Amendments to Ind AS 21 - Lack of exchangeability

MCA via notification dated 07 May 2025, announced
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 financial statements to understand
how the currency not being exchangeable into the
other currency affects, or is expected to affect, the
entity's financial performance, financial position
and cash flows.

The Company has reviewed the new pronouncement
and based on its evaluation has determined that
these amendments do not have a significant impact
on the Company's standalone financial statements.

Amendments to Ind AS 7 and Ind AS 107 - Supplier
finance arrangements.

MCA via notification dated 13 August 2025 announced
amendments to Ind AS 7, Statement of Cash Flows
and Ind AS 107, Financial Instrument: Disclosures and
which introduced disclosure requirements with the
objective to enable users of financial statements to
assess how supplier finance arrangements affects
an entity's liabilities, cashflows and exposure to
liquidity risk.

The Company has reviewed the new pronouncement
and based on its evaluation has determined that
these amendments do not have a significant impact
on the Company's standalone financial statements.

Amendments to Ind AS 12 - International tax
reform - pillar two model rules

MCA via notification dated 13 August 2025
announced amendments to Ind AS 12, Income taxes,
which includes:

• A temporary exception to the recognition
and disclosure of deferred taxes arising

from the implementation of the pillar two
model rules; and

• Additional disclosure requirements targeted
at a reporting entity's exposure to income
taxes in period in which the pillar two model
legislation is enacted or substantively enacted
but not yet in effect.

The Company has reviewed the new pronouncement
and based on its evaluation has determined that
these amendments do not have a significant impact
on the Company's standalone financial statements.

U. Standards notified but not yet effective

MCA has issued Ind AS 118 - Presentation and
Disclosure in Financial Statements, which will replace
Ind AS 1 - Presentation of Financial Statements and
is effective for annual reporting periods beginning
on or after 01 April 2027.

Ind AS 118 introduces revised presentation
requirements in the statement of profit and loss and
enhanced disclosure requirements. The standard is
expected to impact presentation and disclosures
but not the recognition and measurement.

The Company is currently evaluating the impact of
this standard on the standalone financial statements.

All other new standards or amendments that are not
yet effective that have been issued by the MCA are
not applicable or material to the Company.

(b) Rights, Preferences and Restrictions attached to shares:

Equity shares

The Company has only one class of equity shares having a par value of H10 per share. Each holder of equity shares
is entitled to one vote per share. In the event of liquidation of the Company, holders of equity shares will be entitled
to receive remaining assets of the Company after settlement of all the preferential liabilities. The distribution will
be in proportion to the number of equity shares held by the shareholders.

0.0001% compulsory convertible cumulative preference share (Series B to Series F)

The Company had issued Series B, C, C1, C2, D, D1, D2, E, E1 and F of 0.0001% fully and compulsorily convertible
cumulative preference shares (CCCPS) having a par value of H100 per share fully paid up.

Each holder of Series B, C, C1, C2, D, D1, D2, E, E1 and F CCCPS were entitled to one vote per share held assuming
conversion of CCCPS in the manner set out in the Shareholder Agreement and Article of Association of the
Company and was eligible to receive cumulative dividend at the rate of 0.0001% on the face value of the share.
CCCPS shall be converted to equity shares in the ratio of one equity share for each CCCPS held at anytime at
the option of the holder or before the expiry of 20 years from the date of issuance of the CCCPS or filing of the
prospectus by the Company in connection with an Initial Public Offer, whichever is earlier.

On 25 April 2024, these 0.0001% compulsory convertible cumulative preference share (Series B to Series F) were
converted into equity shares in the manner as stated in the Shareholder Agreement.

0.0001% Series F1 compulsory convertible cumulative preference share

The Company had issued Series F1 of 0.0001% fully and compulsorily convertible cumulative preference shares
(CCCPS) having a par value of H10 per share fully paid up.

Each holder of Series F1 CCCPS was entitled to one vote per share held assuming conversion of CCCPS in the
manner set out in the Shareholder Agreement and Article of Association of the Company and were eligible to
receive cumulative dividend at the rate of 0.0001% on the face value of the share. CCCPS shall be converted
to equity shares in the ratio of one equity share for each CCCPS held at anytime at the option of the holder or
before the expiry of 20 years from the date of issuance of the CCCPS or filing of the prospectus by the Company in
connection with an Initial Public Offer, whichever is earlier.

16 Other equity (Contd..)

Nature and purpose of other reserves:

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. Retained earnings is a free reserve available to the Company.

Securities premium reserve

Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes
such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

Share based payment reserve

"The Company has "Awfis Employees' Stock Option Scheme 2015 (EDSOP 2015)" and ’"'Awfis Space Solutions Employee
Stock Option Scheme - 2024 (Scheme)"" share option schemes under which options to subscribe for the Company's
shares have been granted to eligible employees.

The employee’s stock options reserve is used to recognise the value of equity-settled share-based payments provided
to employees, including key management personnel, as part of their remuneration. Refer note 37 for further details
of these plans.

Equity component of 0.001% compulsorily convertible debenture (Series D, D1 and D2)

"0.001% Compulsorily convertible debentures (CCD) had been issued to Bisque Limited at face value of H10,000 per CCD.
Each CCD shall bear a coupon rate of 0.001%. Each CCD should be converted into equity shares at any time at the option
of the holder. Each CCD should automatically convert into equity shares in the ratio of 61.4628 shares for each debenture
held, at the conversion price in effect, upon the earlier of one day before expiry of 10 years from the date of issuance of
such CCD or in case of occurrence of initial public offer (IPO).

On 25 April 2024 these 0.001% compulsorily convertible debenture (Series D, D1 and D2) were converted into equity shares
in the manner as stated in the Shareholder Agreement. Accordingly, the equity component has been transferred to
securities premium or equity share capital as appropriate.

Equity component of 0.0001% compulsory convertible cumulative preference share

For compulsorily convertible cumulative preference shares (Series B to Series F1) (refer note 15 (b)).

On 25 April 2024, these 0.0001% compulsory convertible cumulative preference share (Series B to Series F) were converted
into equity shares in the manner as stated in the Shareholder Agreement. Accordingly, the equity component has been
transferred to securities premium or equity share capital as appropriate.

17 Borrowings (Contd..)

(a) H250 obtained from Tata Capital Financial Services Limited drawn on 23 June 2023 carried a floating interest rate
based upon long-term lending rate minus 9.80% i.e. 11.80% and is repayable in 43 equal installments commencing
from 20 July 2023 with the last instalment due on 20 April 2027. The amount outstanding as at 31 March 2026 is
Nil (31 March 2025 is H156.04) (adjusted with processing fee). During the year, the Company has fully prepaid
its term loan availed from Tata Capital Financial Services Limited. Upon prepayment, the related security and
charges, including hypothecation of movable fixed assets and assignment of rental receivables along with the
non-disposal undertaking of 15% provided by the Director of the company, stand satisfied/released in accordance
with the terms of the loan agreement.

(b) H5.19 obtained from HDFC Bank Limited drawn on 5 August 2023 carries a fixed interest rate of 8.5% and is repayable
in 60 equal installments commencing from 7 September 2023 with the last instalment due on 7 August 2028.The
interest rate as on 31 March 2026 is 8.5% (31 March 2025: 8.5%). The amount outstanding as at 31 March 2026 is
H2.76 (31 March 2025: H3.74), which has exclusive charge by way of hypothecation of vehicle.

(c) H100 obtained from Kotak Mahindra Bank Limited drawn on 20 March 2024 carries a floating interest rate based
upon applicable K-MCLR 6M rate plus 1.05% i.e. 10.25% and is repayable in 48 equal instalments commencing
from 20 April 2024 with the last instalment due on 20 March 2028. The interest rate as on 31 March 2026 is 9.60%
(31 March 2025: 10.45%). The amount outstanding as at 31 March 2026 is H49.75 (adjusted with processing fee) (31
March 2025: H73.98), which has pari passu charge on current assets with ICICI Bank (excluding rentals charged to
Kotak Mahindra Bank Limited) for both present and future rentals of the borrower.

(d) The Company had an overdraft facility of H100 from Kotak Mahindra Bank Limited, which was repayable on
demand. This facility carried a floating interest rate based on the applicable K-MCLR 6M rate plus 1.05%. The
interest rate was 10.45% . The said facility was withdrawn on 24 March 2025.This facility was secured by a pari
passu charge on the current assets (excluding rentals charged to Tata Capital Financial Services Limited and
Kotak Mahindra Bank Limited) of the borrower, both present and future, shared equally with ICICI Bank.

(e) The Company had an overdraft facility of £100 from ICICI Bank Limited, valid for 12 months commencing from 03
June 2024. The facility carried a floating interest rate based on the applicable I-MCLR 6M rate plus 1.75%.

(f) The Company had a working capital demand loan facility of £200 from ICICI Bank Limited, valid for 12 months
commencing from 03 June 2024. The facility carried a floating interest rate based on the applicable I-MCLR 3M
rate plus 1.50%.

Both the facilities referred to in clause (e) and clause (f) were secured by a pari passu charge on the entire current
assets of the Company and an exclusive charge over fixed deposits of the Company equivalent to 30% of the total
facility amounts. These facilities stood discontinued as at 31 March 2026.

(g) During the current year, £500 has been obtained from ICICI Bank Limited against a sanctioned limit of £800,
comprising a term loan of £500 and an overdraft facility of £300. The term loan was drawn down in three tranches:
£150 on 3 September 2025, £150 on 17 November 2025, and £200 on 2 January 2026. The facility carries a floating
interest rate based on I-MCLR (1 Year) plus the applicable spread (presently 8.35% 0.70%) and is repayable in
48 equal instalments commencing from 30 September 2025, with the last instalment due on 30 September 2029.

The interest rate as at 31 March 2026 is 9.05% (31 March 2025: Nil). The amount outstanding as at 31 March 2026 is
£446.77 (adjusted for processing fee) (31 March 2025: Nil).

The facility is secured by a first pari passu charge over the entire current assets of the Company (excluding rentals
charged in favour of Kotak Mahindra Bank Limited), including present and future receivables, cash-in-hand and
bank balances, together with an exclusive charge by way of hypothecation over the movable fixed assets of
identified centres, DSRA maintained by the borrower and the cash flows of such identified centres through an
escrow mechanism.

(h) £10 has been obtained on 24 March 2026 from ICICI Bank Limited against a new sanctioned Rupee Term Loan
facility of £500. The facility carries a floating interest rate based on I-MCLR (1 Year) plus the applicable spread

22 Revenue from operations (Contd..)

(a) Performance obligation

During the year, the Company has not entered into long term contracts with customers and accordingly disclosure
of unsatisfied or remaining performance obligation (which is affected by several factors like changes in scope
of contracts, periodic revalidations, adjustment for revenue that has not been materialized, tax laws etc.) is not
applicable to the Company.

(b) Disaggregation of revenue

In the following tables, revenue is disaggregated by geography. This is consistent with the revenue information
that is disclosed for each reportable segment under Ind AS 108 (refer note 42). The Company believes that this
disaggregation best depicts how the nature, amount, timing and uncertainty of our revenues and cash flows are
affected by industry, market and other economic factors.

29 Other expenses (Contd..)

(ii) Corporate Social Responsibility ('CSR'):

As per Section 135 of the Companies Act, 2013, a Corporate Social Responsibility ('CSR') committee has been
formed by the Board of Directors. The primary function of the Committee is to assist the Board of Directors in
formulating a CSR Policy and review the implementation and progress of the same from time to time. However,
since the average net profits of the Company computed in accordance with Section 198 of the Companies Act,
2013 for the three immediately preceding financial years is negative, the Company is not required to spend any
amount on activities related to corporate social responsibility for the year ended 31 March 2026.

30 Exceptional item

Pursuant to approval of the Board of Directors of the Company at their meeting held on 09 September 2024, the
Company has entered into a Business Transfer Agreement ("BTA") with SMS Integrated Facility Services Private Limited
('Acquirer') for divestiture of its facility management division namely AWFIS Care, as a going concern and on a slump
sale basis for cash consideration of H275. Further, the cash consideration of H275 also included a consideration of H20,
being the Holdback amount which has been recognized upon fulfilment of the terms and conditions as specified in
the BTA. The Company has recognized an exceptional gain amounting to H251.02 for the year ended 31 March 2025 on
account of this BTA.

31 Earnings per share

Basic EPS amounts is calculated by dividing the profit/(loss) for the year attributable to equity shareholders by the
weighted average number of equity shares outstanding during the year including ordinary shares that will be issued
upon the conversion of a mandatorily convertible instrument. Diluted earnings per share is computed using the weighted
average number of common and dilutive common equivalent shares outstanding during the year, except where the
result would be anti-dilutive.

Terms and conditions of transactions with related parties

(i) All transactions with related parties are made on terms equivalent to those that prevail in arm’s
length transactions.

(ii) Outstanding balances at the year end are unsecured and interest free and their settlement occurs in cash.

(iii) The Director of the Company had given a non-disposal undertaking upto 15% with respect to a
borrowings obtained from the lender (refer note 17(a)). The said undertaking has been released upon
prepayment of the loan.

(iv) There is no allowance for receivables in relation to any outstanding balances, and no loss allowance has
been recognised during the current and previous year in respect of receivables due from related parties.

(v) All transaction with related party are exclusive of goods and service tax

33 Contingent liabilities and commitments

(i) Contingent liabilities

The Company has certains legal proceedings including direct taxation, indirect taxation, vendors, customer,
erstwhile shareholders and others. While these legal proceedings are currently ongoing against the Company,
however, based on a detailed evaluation of the facts and circumstances of each case, including, where applicable,
legal opinions obtained, the management believes that the ultimate outcome of these proceedings is expected
to be favourable to the Company and hence the likelihood of an economic outflow is remote. Accordingly, these
matters do not meet the recognition or disclosure criteria of a contingent liability under Ind AS 37 and no provision
has been considered necessary in the standalone financial statements in this regard.

For the purpose of the Company's capital management, capital includes issued equity share capital and all other equity
reserves attributable to the equity holders of the Company. The primary objective of the Company when managing
capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to
maximize shareholder value.

The Company's management reviews the capital structure of the Company on a regular basis. As part of this review,
the management considers the cost of capital and the risks associated with each class of capital requirements and
maintenance of adequate liquidity. The Company is not subject to externally imposed capital requirements.

The liability or asset recognised in the Standalone Balance Sheet in respect of provident fund plan is the present
value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The
discount rate used for determining the present value of the obligation under defined benefit plans is based on the
market yields on government bonds as at the date of actuarial valuation. Actuarial gains and losses (net of tax)
are recognised immediately in the Other Comprehensive Income (OCI).

The following table summarises the components of net benefit expense recognised in the Standalone Statement
of Profit and Loss and the amounts recognised in the Standalone Balance Sheet:

35 Employee benefits

(a) Other long-term benefits

The Company has a defined benefit leave encashment plan for its employees. Under this plan, they are entitled to
encashment of earned leaves subject to certain limits and other conditions specified for the same. The liabilities
towards leave encashment have been provided on the basis of actuarial valuation.

(b) Defined contribution plans

The Company makes Provident Fund contributions to defined benefit plan for qualifying employees. Under the
Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits.
The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

(c) Defined benefit plans

The Company's gratuity scheme provide for lump sum payment to vested employees at retirement, death
while in employment or on termination of employment of an amount equivalent to 15 days basic salary for each
completed year of service or part thereof in excess of six months in terms of Provisions of Gratuity Act, 1972. Vesting
occurs upon completion of five years of service.

The present value of defined benefit obligation and the related current service cost were measured using the
projected unit credit method with actuarial valuations being carried out at each standalone balance sheet date.

35 Employee benefits (Contd..)

(v) Sensitivity analysis

Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected
salary increase and mortality. The sensitivity analyses below have been determined based on reasonably
possible changes of the respective assumptions occurring at the end of the reporting period, while holding
all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the defined
benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as
some of the assumptions may be correlated. Sensitivity due to mortality and withdrawal are not material to
the standalone financial statements and hence impact of change not calculated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit
obligation has been calculated using the projected unit credit method at the end of the reporting period,
which is the same as that applied in calculating the defined benefit obligation liability recognised in the
Standalone Balance Sheet.

The average duration of the defined benefit plan obligation at the end of the reporting year is: Rental and
others : 3.13 years and Facility management : 1.91 years (31 March 2025: Rental and others: 2.62 years and
Facility management: 1.12 years).

(vii) Risk exposure:

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which
are detailed below:

Interest Risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result
in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the
value of the liability.

Liquidity Risk: This is the risk that the Company is not able to meet the short-term gratuity payouts. This may
arise due to non availability of enough cash / cash equivalent to meet the liabilities or holding of illiquid
assets not being sold in time.

Salary Escalation Risk: The present value of the defined benefit plan is calculated with the assumption of
salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan
participants from the rate of increase in salary used to determine the present value of obligation will have a
bearing on the plan's liability.

Demographic Risk: This is the risk of variability of results due to unsystematic nature of decrements that
include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit
obligation is not straight forward and depends upon the combination of salary increase, discount rate and
vesting criteria.

Regulatory Risk: Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act,
1972 (as amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts.

36Financial instruments - Fair values and risk management

A. Financial instruments by category

The Company's financial liabilities comprise mainly of borrowings, lease liabilities, trade payables and other
payables. The Company's financial assets comprise mainly of investments, trade receivables, cash and cash
equivalents, other bank balances and other receivables. The fair value of financial instruments has been classified
into three categories depending on the inputs used in the valuation technique as referred to in note B below.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity
instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments
(including bonds) which are traded in the stock exchanges is valued using the closing price as at the
reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds,
over-the counter derivatives) is determined using valuation techniques which maximise the use of observable
market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value
an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included
in level 3. This is the case for unlisted equity securities.

To provide an indication about the reliability of inputs used in determining fair value, the Company has classified
its financial instrument into three levels prescribed under the accounting standard. There are no assets and
liabilities which have been fair valued through profit and loss or fair valued through other comprehensive income
for the year ended 31 March 2026 and year ended 31 March 2025.

Fair value of instruments measured at amortised cost:

Fair value of instruments measured at amortised cost for which fair value is disclosed is as follows, these fair
values are calculated using Level 3 inputs:

C. Financial risk management

The Company’s activities expose it to credit risk, liquidity risk and market risk. The Company's management
oversees the management of these risks. The Company's senior management is supported by a Risk Management
Compliance Board that advises on financial risks and the appropriate financial risk governance framework for the
Company. The financial risk committee provides assurance to the Company's management that the Company's
financial risk activities are governed by appropriate policies and procedures and that financial risks are identified,
measured and managed in accordance with the Company's policies and risk objectives. The management
reviews and agrees policies for managing each of these risks, which are summarised below:

i. Credit risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company's
exposure to credit risk is influenced mainly by trade receivables, cash and cash equivalents, bank balance
other than cash and cash equivalents and other financial assets measured at amortised cost. The Company
continuously monitors defaults of customers and other counterparties and incorporates this information into
its credit risk controls.

The Company assesses and manages credit risk based on internal credit rating system. Internal credit
rating is performed for each class of financial instruments with different characteristics. The Company
assigns the following credit ratings to each class of financial assets based on the assumptions, inputs
and factors specific to the class of financial assets.

(i) Low credit risk

(ii) Moderate credit risk

(iii) High credit risk

Based on business environment in which the Company operates, a default on a financial asset is
considered when the counter party fails to make payments within the agreed time period as per contract.
Loss rates reflecting defaults are based on actual credit loss experience and considering differences
between current and historical economic conditions.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring
bankruptcy or a litigation decided against the Company. The Company continues to engage with parties
whose balances are written off and attempts to enforce repayment. Recoveries made are recognised in
the Standalone Statement of Profit and Loss (if any).

(b) Expected credit losses for financial assets

(i) Financial assets (other than trade receivables)

Company provides for expected credit losses on financial assets other than trade receivables by
assessing individual financial instruments for expectation of any credit losses.

For cash and cash equivalents and bank balance other than cash and cash equivalents - Since
the Company deals with only high-rated banks and financial institutions, credit risk in respect of
cash and cash equivalents, bank balance other than cash and cash equivalents and bank deposits is
evaluated as very low.

For security deposits paid - Credit risk is considered low because the Company is in possession of
the underlying asset.

The interest payments on variable interest rate borrowings in the table above reflect current interest
rates at the reporting date and these amounts may change as market interest rates change.

iii. Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates and interest
rates - will affect the Company's income or the value of its holdings of financial instruments. The
objective of market risk management is to manage and control market risk exposures within
acceptable parameters, while optimising the return. The Company does not uses derivatives to
manage market risks.

a) Currency risk

The currency risk is the exchange-rate risk, arises from the change in price of one currency in
relation to another.

There is no foreign currency exposure as at 31 March 2026 and 31 March 2025.

b) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument
will fluctuate because of changes in market interest rates. The Company exposure to the
risk of changes in market interest rates relates primarily to the Company's long-term debt
obligations with floating interest rates. The Company having a fixed and floating interest rates
borrowings, the Company's profit before tax is affected through the impact on floating rate
borrowings, as follows:

The Company exposure to price risk arises from investments held and classified in the balance
sheet either as fair value through other comprehensive income or at fair value through
profit or loss. To manage the price risk arising from investments, the Company diversifies its
portfolio of assets.

There are no investments held by the company which are measured at fair value either through
profit and loss or fair value through other comprehensive income, hence the Company is not
exposed to price risk.

37 Employees' stock option plan

The Company has two ESOP Schemes namely "Awfis Space Solutions Employee Stock Option Scheme - 2024
("Scheme")" and "Awfis Employees' Stock Option Scheme 2015 ('EDSOP 2015')".

The Nomination and Remuneration committee ("Committee") of the Company formulated and approved "Awfis
Space Solutions Employee Stock Option Scheme - 2024 ("Scheme") at its meeting held on 11 November 2024 which is
also approved by the board of director of the Company at its meeting held on 11 November 2024. Under this scheme,
the maximum number of options that can be granted to any eligible employee during one year shall not be equal to
or exceed 1% of the issued equity share capital of the Company at the time of grant. The committee decide to grant
such number of options equal to or exceeding 1% of the issued equity share capital to any eligible employee as the
case may be, subject to the separate approval of the shareholders in a general meeting. The maximum number of
options that may be granted in one or more tranches, pursuant to this scheme shall not exceed twenty two lakhs
options which shall be convertible into equal number of shares not exceeding twenty two lakhs equity shares having
face value of H10 each.

The shareholders of the Company approved "Awfis Employees' Stock Option Scheme 2015 ('EDSOP 2015')" at the
Extraordinary General Meeting held on 15 June 2015 to grant a maximum of not exceeding 5% of the equity share
capital of the Company to specified categories of employees of the Company. Each option granted and vested under
EDSOP 2015 shall entitle the holder to acquire one equity share of face value of H10 each of the Company.

The fair value of the share options is estimated at the grant date using the Black- Scholes option pricing model, taking
into account the terms and conditions upon which the share options were granted. However, the above performance
condition is only considered in determining the number of instruments that will ultimately vest.

38 Leases

(l) Company as lessee

The Company leases office premises and office and IT related equipments. These leases typically run for 5-10
years which is further extendable on mutual agreement by both lessor and lessee.

Information about the leases for which the Company is a lessee is presented below:

Right-of-use assets:

Set out below are the carrying amounts of right-of-use assets and the movement during the year:

38 Leases (Contd..)

Cash flows from operating activities include cash flows from short-term lease and leases of low-value assets.
Cash flows from financing activities include the payment of interest and the principal portion of lease liabilities.

The Company has several lease contracts that include extension and termination options. These options are
negotiated by management to provide flexibility in managing the leased-asset portfolio and align with the
Company's business needs. Management exercises significant judgement in determining whether these extension
and termination options are reasonably certain to be exercised.

The Company has elected not to recognise a lease liability for short term leases (leases with an expected term of
12 months or less) or for leases of low value assets. Payments made under such leases are expensed as incurred.
In addition, certain variable lease payments are not permitted to be recognised as lease liabilities and are
expensed as incurred.

(II) Company as lessor

Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the
lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a
finance lease. All other leases are classified as operating leases.

a) Finance leases

i) Maturity analysis of minimum undiscounted lease receivables and the present value of minimum lease
payments receivables is as under:

38 Leases (Contd..)

ii) Lease income of H8,970.35 (31 March 2025: H7,322.92) has been recognised in accordance with the underlying
contract with customers in the standalone statement of profit and loss.

iii) Future minimum rentals undiscounted receivable under non-cancellable operating leases as at year
are as follows:

b) Operating leases

i) The Company has given its office premises through operating lease arrangements. Income from operating
leases is recognised as revenue on a straight-line basis over the lease term.

40 Discontinued operations

Pursuant to approval of the Board of Directors of the Company at their meeting held on 23 December 2025,
the Company has entered into a Business Transfer Agreement ("BTA") with Awfis Transform Private Limited
('Acquirer'/'ATPL') a wholly-owned subsidiary of the Company, incorporated on 03 December 2025, for sale of
the Company's segment engaged in the business of construction and fit-out project ('Undertaking'), as a going
concern and on a slump sale basis for a consideration of H265.91 million ("Initial Purchase Price"). The same was
approved by the shareholders through special resolution passed through postal ballot.

The Board of Directors at their meeting held on 26 February 2026 considered and approved the extension of the
timeline for completion of the transfer of the Undertaking, which is now expected to be completed by 31 December
2026 due to procedural, administrative, operational and transition-related requirements. The Company will
continue to operate the undertaking in the ordinary course of business until the revised completion date.

The consideration for the sale of the Business Undertaking shall be determined as per an updated valuation report
for the Business Undertaking to be obtained by the Company in accordance with all applicable laws, with the
reference date of valuation being the revised date of completion of the transaction and shall be discharged by
ATPL as provided under the business transfer agreement executed between the company and ATPL.

Accordingly, the assets and liabilities as at 31 March 2026 related to undertaking have been classified as "disposal
group, held for sale" and the net results of undertaking for the current and previous year are disclosed separately
as "discontinued operations" in the standalone statement of profit and loss, as required by Ind AS 105 and Division
II of Schedule III of the Act.

42 Segment information has been provided under the notes forming part of the consolidated financial statements for
the year ended 31 March 2026 as per para 4 of Indian Accounting Standard (Ind AS) 108 "Operating Segments", specified
under Section 133 of the Companies Act, 2013.

43 During the year ended 31 March 2025, the Company completed its Initial Public Offer (IPO) where 15,639,638 equity
shares of face value of H10 each have been issued at a price of H383 per share. The issue comprised of 21.38% fresh issue
aggregating to H1,280.00 and 78.62% offer for sale aggregating to H4,709.30. Pursuant to IPO, the equity shares of the
Company were listed on BSE Limited and National Stock Exchange of India Limited on 30 May 2024. The Company is still
in the process of finalization of offer expenses.

The IPO proceeds from fresh issue of H1,170.29 (net of offer expenses of H109.71 in relation to fresh issue of shares) were fully
utilised during the previous financial year ended 31 March 2025.

44 The Government of India has consolidated 29 existing labour legislations into a united framework comprising four
Labour Code viz Code on wages 2019, Code on Social Security 2020, Industrial Relation Code 2020, Occupational Safety,
Health and Working Condition Code 2020 (collectively referred to as the New Labour Codes). These Codes have been
made effective from 21 November 2025. The Company has considered the impact for its own employees which is not
material to the standalone financial statements for the year ended 31 March 2026. The Company will evaluate the impact
on the measurement of employee benefits and provide the appropriate accounting treatment for any further notification
and clarification issued by the authorities in this regard.

45 The Ministry of Corporate Affairs (MCA) has prescribed a requirement for companies under the proviso to Rule 3(1) of the
Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules, 2021 requiring companies,
which uses accounting software for maintaining its books of account, shall use only such accounting software which has
a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books
of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
The Company, in respect of the financial year commencing on 01 April 2025, has used an accounting software for
maintaining books of accounts. The audit trail (edit log) was enabled and operated throughout the year at application
level for such software. The Company has obtained the 'Independent Service Auditor's Assurance Report on the Description
of Controls, their Design and Operating Effectiveness' (Type 2 report' issued in accordance with ISAE 3000 (Revised),
Assurance Engagements Other than Audits or Reviews of Historical Financial Information) for the year commencing on
01 April 2025. However, the report of the service auditor did not demonstrate whether the audit trail feature specifically
captures the details of what data was changed at the database level.

Further, the Company, has used accounting software for invoicing which is operated by a third-party software service
provider. The audit trail (edit log) was enabled and operated throughout the year at application level and database level
for such software. The Company has obtained the 'Independent Service Auditor's Assurance Report on the Description
of Controls, their Design and Operating Effectiveness' (Type 2 report' issued in accordance with ISAE 3000 (Revised),
Assurance Engagements Other than Audits or Reviews of Historical Financial Information) for the year commencing
on 01 April 2025.

46A During the current year, India Ratings & Research (a Fitch Group Company), through its Rating Action Commentary
dated 16 May 2025, has upgraded the credit rating assigned to our bank loan facilities. The revised rating now stands at
IND A with a Stable Outlook, an improvement from the earlier rating of "IND A". This reflects the improved credit profile
of the Company and underscores the rating agency's confidence in our financial stability, operational performance, and
future growth prospects.

46B During the year ended 31 March 2026, one of the Company's customers defaulted on its lease rental payment
obligations despite the execution of a Memorandum of Understanding (MoU) providing for settlement of the outstanding
dues through scheduled instalments. Consequently, the Company issued a demand notice under the Insolvency and
Bankruptcy Code, 2016 and subsequently initiated recovery proceedings before the Hon'ble National Company Law
Tribunal (NCLT), Hyderabad.

Considering the customer's continued default and the uncertainty surrounding the ultimate recovery of the outstanding
amounts, the Company, on a prudent basis, adjusted the related receivable balances against the corresponding lease
liabilities and derecognised lease receiavbles amoutning to J 113.08 million during the year ended 31 March 2026 (31
March 2025: J 188.65 million). Further, based on management's assessment of the recoverability of the remaining
balances, including amounts adjusted against security deposits, an additional impairment loss of f 34.76 million has
been recognised during the year (31 March 2025: Nil).

47 Other statutory information

(i) Details of Benami Property

Company is not holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)
and rules made thereunder as at 31 March 2026 and 31 March 2025. Further, no proceedings have been initiated or
pending against the Company for holding any benami property under the said act and rules mentioned above.

(ii) Struck off companies

The Company has identified transactions with the below companies which have been struck off under section
248 of Companies Act, 2013 or Section 560 of the Companies Act, 1956:

(iii) Registration of charges

The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.

(iv) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency transactions / balances or virtual currency during the
year ended 31 March 2026 and year ended 31 March 2025.

(v) Utilisation of borrowed funds

The Company has not advanced or loaned or invested funds to Intermediaries for further advancing to any
other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the
Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

47 Other statutory information (Contd..)

The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the company shall :

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vi) Undisclosed income

The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the current and preceding year in the tax assessments under the
Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.)

(vii) Compliance with number of layers of companies

The Company has complied with number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.

(viii) Wilful defaulter

The Company has not been declared wilful defaulter by any bank or financial institutions or other lenders.

(ix) Valuation of property plant and equipment

The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible
assets or both during the current year or previous year.

(x) Compliance with approved scheme of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.

48 Previous year figures have been regrouped/reclassified, wherever necessary to conform to this year's classification.
Such regrouping/reclassification are not material to the standalone financial statements.