3.8 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

A provision is recognised when:

i) The Company has a present obligation (legal or constructive) as a result of a past event;

ii) It is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

iii) A reliable estimate can be made of the amount of the obligation.

A disclosure for a contingent liability is made when there 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 may, but probably may not, require an outflow of resources. A
contingent liability also arises in extreme cases where there is a probable liability that cannot be recognized because
it cannot be measured reliably.

Where there is a possible obligation or a present obligation such that the likelihood of outflow of resources is remote,
no provision or disclosure is made.

Contingent assets are disclosed in case a possible asset 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 Company.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the
passage of time is recognized as a finance cost.

Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date and
adjusted to reflect the current best estimates.

3.9 EMPLOYEE BENEFITS

A) Short term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term
employee benefits. Benefits such as salaries, wages etc. and the expected cost of ex-gratia are recognised in the
period in which the employee renders the related service. A liability is recognised for the amount expected to be paid
when there is a present legal or constructive obligation to pay this amount as a result of past service provided by the
employee and the obligation can be estimated reliably.

B) Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into
a separate entity and will have no legal or constructive obligation to pay further amounts. The Company makes
specified monthly contributions towards Government administered provident fund & employee state insurance
scheme. Obligations for contributions to defined contribution plans are recognised as an employee benefit expense
in profit or loss in the periods during which the related services are rendered by employees.

C) Defined benefit plans

For defined benefit retirement plans (i.e. gratuity) the cost of providing benefits is determined using the projected unit
credit method, with independent actuarial valuations being carried out at the end of each annual reporting period. Re¬
measurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling and the return on
plan assets (excluding interest), is reflected immediately in the statement of financial position with a charge or credit
recognised in other comprehensive income in the period in which they occur. Defined benefit costs are categorised
as follows:

- Service cost (including current service cost, past service cost, as well as gains and losses on curtailments and
settlements)

- Net interest expense or income; and

- Re-measurement

D) Other employee benefits

Leave encashment is recognised as an expense in the statement of profit and loss account as and when they accrue.
The Company determines the liability using the projected unit credit method, with actuarial valuations carried out as
at balance sheet date. Actuarial gains and losses are recognized in the statement of other comprehensive income.

3.10 LEASES

The Company as a lessee

The Company assesses at the inception of a contract whether the contract is, or contains, a lease. A contract is, or
contains, a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for
consideration.

The Company has elected to apply the recognition exemptions available under Ind AS 116 for short-term leases, i.e.,
leases with a lease term of twelve months or less that do not contain a purchase option, and for leases of low-value
assets. Lease payments relating to low-value and short-term leases are recognised as an expense on a straight-line
basis over the lease term or on another systematic basis, if that basis is more representative of the pattern of the
lessee's benefit (Refer Note No. 26).

Leasehold land, which was acquired prior to the date of transition to Ind AS 116 and in respect of which the Company
holds the substantive rights of use for the lease term, is presented within Property, Plant and Equipment under
"Assets under Lease - Land” and is amortised on a straight-line basis over the term of the lease

3.11 EARNING PER SHARE

Basic earnings per share is calculated by dividing the net profit / (loss) for the year attributable to equity shareholders
(after deducting preference dividends and attributable taxes) by weighted average number of equity shares
outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit / (loss) for the year attributable to equity
shareholders and the weighted average numbers of shares outstanding during the year are adjusted for the effects
of all dilutive potential equity shares.

The weighted average number of equity shares outstanding during the year is adjusted for events of bonus issue and
buy back.

3.12 BORROWING COST

Borrowing costs that are directly attributable to the acquisition / construction of qualifying assets are capitalized as
part of their costs. Borrowing costs are considered as part of the asset cost when the activities that are necessary to
prepare the assets for their intended use or sale are in progress.

Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing of
funds. Other borrowing costs are recognized as an expense, in the period in which they are incurred.

4. USE OF JUDGMENTS AND ESTIMATES

The preparation of standalone financial statements in conformity with Ind AS requires management to make
judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, income, expenses and
disclosures of contingent assets and liabilities at the reporting date. However, uncertainty about these assumptions
and estimates could result in outcomes that require material adjustment to the carrying amount of the asset or
liability affected in future periods.

Estimates and underlying assumptions are reviewed at each reporting date. Any revision to accounting estimates
and assumptions is recognized prospectively, i.e. recognised in the period in which the estimate is revised and future
periods affected.

The following are significant management judgements, estimates and assumptions in applying the accounting
policies of the Company that have a significant effect on the financial statements.

A) Revenue Recognition

Ind AS 115 requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances
when applying each step of the model to contracts with their customers. The Company has evaluated and generally
concluded that the recognition of revenue over the period of time criteria are not met owing to non-enforceable right
to payment for performance completed to date and, therefore, recognises revenue at a point in time. The Company
has further evaluated and concluded that based on the analysis of the rights and obligations under the terms of the
contracts relating to the sale of property, the revenue is to be recognised at a point in time when control transfers
which coincides with receipt of Occupation Certificate.

B) Classification of property

The Company determines whether a property is classified as investment property or as inventory:

i) Investment property comprises land and buildings that are not occupied for use by, or in the operations of,
the Company, nor for sale in the ordinary course of business, but are held primarily to earn rental income and
capital appreciation. These buildings are held for capital appreciation and are not intended to be sold in the
ordinary course of business.

ii) Inventory comprises property that is held for sale in the ordinary course of business. Principally these are
properties that the Company develops and intends to sell.

C) Classification of assets and liabilities into current and non-current

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

D) Recognition of deferred tax assets

The extent to which deferred tax assets can be recognised is based on an assessment of the probability of the
Company's future taxable income against which the deferred tax assets can be utilized.

E) Impairment of assets

In assessing impairment, management estimates the recoverable amounts of each asset or CGU (in case of
non-financial assets) based on expected future cash flows and uses an estimated interest rate to discount them.
Estimation relates to assumptions about future cash flows and the determination of a suitable discount rate.

F) Useful lives of depreciable / amortisable assets (Property, plant and equipment, intangible assets and investment
property)

Management reviews its estimate of the useful lives of depreciable / amortisable assets at each reporting date, based
on the expected usage of the assets. Uncertainties in these estimates relate to technical and economic obsolescence
that may change the usage of certain assets.

G) Defined benefit obligation

The cost of defined benefit gratuity plan and the present value of the gratuity obligation along with leave salary
are determined using actuarial valuations. An actuarial valuation involves making various assumptions such as
standard rates of inflation, mortality, discount rate, attrition rates and anticipation of future salary increases. Due to
the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are reviewed at each reporting date.

H) Fair value measurements

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

I) Provisions

The timing of recognition and quantification of liability (including litigations) requires the application of judgement to
existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities
are reviewed regularly and revised to take account of changing facts and circumstances.

Notes:

1) Trade receivables are valued considering provision for allowance using expected credit loss method. This assessment
is considering the nature of industries, impact immediately seen in the demand outlook of these industries and the
financial strength of the customers in respect of whom amounts are receivable.

2) No trade or other receivable are due from directors or other officers of the company either severally or jointly with any
other person. Nor any trade or other receivable are due from firms or private companies respectively in which any
director is a partner, a director or a member.

3) Please refer Note 43 of Notes to Accounts with respect to Ageing of Trade Receivables.

Contribution to various funds includes expenses debited in profit & loss accounts as well as capitalized in work in
progress of inventories.

b) Defined Benefit Plan

The employee's gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The
present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which
recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each
unit separately to build up the final obligation.

c) The Government of India has implemented four new Labour Codes ("Code") with effect from 21st November 2025,
namely Code on Wages 2019, Code on Social Security, 2020, Industrial Relations Code, 2020, and Occupational
Safety, Health and Working Conditions Code, 2020. The Company has assessed the impact of the new Code and
has accounted for the incremental impact based on actuarial valuation, which is not material. While the process of
evaluation continues, including for contract workforce, the company monitor notifications and publications of rules
and clarification in this regard, the impact of which unlikely to be material.

Notes:

1. Remuneration includes Expenses debited in profit & loss accounts as well as capitalized in work in progress of
inventories.

2. The transaction amount specified above is inclusive of taxes.

3. Value of transaction during the reporting period for "Loan given" is Loan disbursed to related party under revolving Loan
facility within the sanctioned Limit during the period. However, at any point of time outstanding Loan amount did not
exceed sanctioned Limit.

4. The rate of interest charged on loans given is not lower than the prevailing yield of one year, three year, five year or ten
year Government Security closest to the tenor of the loan, as required by section 186(7) of the Companies Act, 2013.

5. All transactions with related parties were entered into in the ordinary course of business and on an arm's length basis.
Transactions requiring the approval of the Audit Committee and the Board under section 177 and section 188 of the
Companies Act, 2013 and Regulation 23 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
2015 have been so approved.

6. No guarantees have been given or received in respect of related party balances, and no related party balance is secured.
No expense has been recognised during the year in respect of bad or doubtful debts due from related parties, and no
provision is held against any related party balance (Previous Year: Nil).

NOTE 31: SEGMENT INFORMATION

Operating segments are defined as components of an enterprise for which discrete financial information is available that is
evaluated regularly by the chief operating decision maker, in deciding how to allocate resources and assessing performance.

The Company has identified business segments as reportable segments. The business segments comprise of Real Estate,
Financial Services & Others.

II. Capital Commitments

i. The Company has committed during the year a total investment of ?10,000.00 Lakhs to Anchorage Capital
Scheme-III (Category II AIF). Against this commitment, the Fund has raised capital calls amounting to
? 2,000.00 Lakhs as on reporting date, which has been duly paid by the Company. Balance uncalled capital as
on balance sheet date is ? 8,000.00 Lakhs. This investment is measured at Fair Valued through Profit & Loss
(FVTPL) in accordance with Indian Accounting Standards (IndAS).

ii. The Company has committed a total investment of ? 5,000.00 Lakhs (Previous Year ? 5,000.00 Lakhs) to Anchorage
Capital Scheme-I (Category II AIF). Against this commitment, the Fund has raised capital calls amounting to
? 2,303.10 Lakhs as on reporting date (Previous Year ? 2,303.10 Lakhs), which has been duly paid by the
Company. Balance uncalled capital as on balance sheet date is ? 2,696.90 Lakhs (Previous Year ? 2,696.90
Lakhs). This investment is measured at Fair Valued through Profit & Loss (FVTPL) in accordance with Indian
Accounting Standards (IndAS).

iii. The Company has committed a total investment of ? 500.00 Lakhs (Previous Year ? 500.00 Lakhs) to Welspun
One Logistics Park Fund 1. Against this commitment, the Fund has raised capital calls amounting to ? 475.00
Lakhs as on reporting date (Previous Year ? 475.00 Lakhs), which has been duly paid by the Company. As on the
balance sheet date, the uncalled capital stands at ? 25.00 Lakhs (Previous Year ? 25.00 Lakhs). This investment
is measured at Fair Valued through Profit & Loss (FVTPL) in accordance with Indian Accounting Standards
(IndAS).

iv. The Company has subscribed to 2,85,714 convertible warrants of Welspun Enterprises Limited ("WEL') at an
issue price of Rs. 525 per warrant, aggregating to approximately ? 1,500.00 Lakhs. The Company has paid 25%
of the issue price amounting to approximately ? 375.00 Lakhs. The balance 75% amounting to approximately
? 1,125.00 Lakhs is payable upon exercise of the warrants.

B. Fair valuation techniques

The fair value of cash and cash equivalents, other bank balances, trade receivable, other financial assets, trade payables
and other financial liabilities approximate their carrying amount.

The fair value of investments in mutual fund units is based on the Net Asset Value ('NAV') as stated by the issuers of
these mutual fund units in the published statements at reporting date.

The fair value of quoted investment in equity shares is based on the closing price on recognized stock exchange of
respective investment as at the reporting date. The fair value of unquoted investments, whose value can be verified from
publicly available sources, including websites of brokers dealing in unlisted securities, and investments in AIFs, based on
NAV reports provided by the respective AIFs, has been classified under Level 2 of the fair value hierarchy. The fair value
of the remaining financial instruments is determined using discounted cash flow analysis.

D. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

• Credit risk

• Liquidity risk and

• Market risk

Risk management framework

The Company's Board of Directors has overall responsibility for the establishment and oversight of the Company's
risk management framework. The Board of Directors is responsible for developing and monitoring the Company's risk
management policies. The committee reports regularly to the Board of Directors on its activities.

The Company's risk management policies are established to identify and analyze the risks faced by the Company, to
set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and
systems are reviewed regularly to reflect changes in market conditions and the Company's activities.

I) Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum
exposure to the credit risk at the reporting date is primarily from receivables from customers, investment in various
instruments and loans.

Trade and other receivables

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer pertaining
to real estate business & receivables of power generation business. However, credit risk with regards to trade receivable
is almost negligible in case of its residential sale as the same is due to the fact that company does not handover
possession till the entire outstanding is received & also of trade receivable of power sale as the same is backed by the
state government.

Investment in various instruments

Credit risk on investment in various instruments is limited as we generally invest in financial institutions with high credit
ratings assigned by international and domestic credit rating agencies. Investments primarily include investment in
liquid mutual fund units & overnight mutual funds units, quoted equity securities, quoted & unquoted bonds, alternate
investment funds, debentures & commercial papers issued by organizations with high credit ratings.

Loans

Credit risk on loans has always been managed by the Company through credit approvals, establishing credit limits and
continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal
course of business.

The Company uses the expected credit loss model to assess the impairment loss or gain. The Company uses a
provision matrix to compute the expected credit loss allowance for loans. The provision matrix takes into account
available external and internal credit risk factors such as credit ratings from credit rating agencies and the Company's
historical experience for customers.

II) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset.

The Company's principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from
operations. The Company has no outstanding borrowings. The Company believes that the working capital is sufficient
to meet its current requirements.

As at March 31, 2026, the Company had a cash and cash equivalents of ? 21,869.88 lakhs, other bank balances of
? 1,431.94 lakhs and current investments of ? 811.48 lakhs. As at March 31, 2025, the Company had a cash and cash
equivalents of ? 26,625.30 lakhs, other bank balances of ? 1,019.15 lakhs and current investments of ? 3,986.21 lakhs.

Exposure to liquidity risk

The details regarding the contractual maturities of significant financial liabilities as at March 31, 2026 are as follows:

III) Market risk

Market risk is the risk that changes in market prices - such as interest rates and commodity prices will affect the
Company's income or the value of its holdings of financial instruments. Market risk is attributable to all market risk
sensitive financial instruments including payables and debt. We are exposed to market risk primarily related interest rate
risk and the market value of certain commodities. Thus, our exposure to market risk is a function of investing activities
and revenue generating and operating activities. The objective of market risk management is to avoid excessive exposure
to these risks in our revenues and costs.

A) Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the
risk of changes in fair values of fixed interest-bearing investments because of fluctuations in the interest rates. Cash
flow interest rate risk is the risk that the future cash flows of floating interest-bearing investments will fluctuate because
of fluctuations in the interest rates.

The Company does not have any external borrowing as on March 31,2026.

B) Currency risk

Currency risk is not material, as the Company's primary business activities are within India and do not have any exposure
in foreign currency.

C) Other price risk

The Company's exposure to equity securities price risk arises from investments held by the Company and classified
in the financials as fair value through Other Comprehensive Income and fair value through Profit & Loss. If the equity
prices of investments are 10% higher / lower which are fair valued through Other Comprehensive Income, then the
Other Comprehensive Income for the year ended March 31,2026 would increase / decrease by ? 3,315.42 lakhs (PY - ?
3,739.25 lakhs) respectively with a corresponding increase / decrease in Total Equity of the Company. Similarly, if the
equity prices of quoted investments are 10% higher / lower which are fair valued through profit & loss, then the Revenue
from Operation for the year ended March 31, 2026 would increase / decrease by ? 44.70 lakhs (PY - ? 47.84 lakhs)
respectively with a corresponding increase / decrease in Total Equity of the Company. 10% represents management's
assessment of reasonably possible changes in equity prices.

NOTE 34A: CAPITAL MANAGEMENT

The Company objective in managing capital is to safeguard its ability to continue as a going concern so that it can continue
to provide returns to shareholders and benefits to other stakeholders, and to maintain an optimal capital structure to reduce
the cost of capital. For this purpose, capital includes issued equity share capital and all other equity reserves attributable to
the equity holders of the Holding Company. The Company monitors capital using the gearing ratio, being net debt divided
by total capital plus net debt. The Company had no borrowings as at 31 March 2026 and 31 March 2025 and accordingly
the gearing ratio is nil. No changes were made to the objectives, policies or processes for managing capital during the years
ended 31 March 2026 and 31 March 2025.

NOTE 35: RECENT ACCOUNTING PRONOUNCEMENTS

The Ministry of Corporate Affairs ("MCA”) notifies new Indian Accounting Standards and amendments to the existing Indian
Accounting Standards under the Companies (Indian Accounting Standards) Rules, 2015, from time to time. During the
year ended 31st March 2026, the MCA notified certain amendments to the applicable Indian Accounting Standards. The
Company has evaluated the impact of these amendments and has concluded that they do not have any material impact on
the Company's financial statements.

NOTE 37: DIVIDENDS

The Board of Directors has proposed a final dividend of ? 2/- (i.e. 20%) per equity share of ? 10/- each on 2,09,11,729 fully
paid equity shares for the year ended March 31, 2026, subject to approval of shareholders at the Annual General Meeting,
and if approved, would result in cash outflow aggregating to ? 418.23 lakhs.

NOTE 38: EVENTS AFTER THE REPORTING PERIOD

There was no significant event after the end of the reporting period which requires any adjustment or disclosure in the
Financial Statements.

1. The Company does not have any Benami Property, where any proceedings have been initiated or pending against the
company for holding any Benami Property.

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

3. The Company have not traded or invested in Crypto currency or Virtual currency during the financial year.

4. The Company is not declared as a wilful defaulter by any Bank or Financial Institution or any other lender.

5. There are no transactions executed by the company with companies struck off under section 248 of the Companies
Act, 2013 or section 560 of Companies Act, 1956.

6. During the year, no Scheme of Arrangement has been formulated by the company / pending with competent authority.

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

(i) 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

(ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

8. 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:

(i) 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

(ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

9. The Company has not disclosed any income in terms of any transaction which is not recorded in books of account that
has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

10. The Company has granted unsecured loans to its wholly owned subsidiaries which are repayable on demand, and the
same has been repaid during the year. Details are as under:

11. The Company has complied with the number of layers prescribed under Clause (87) of Section 2 of the Act read with
The Companies (Restriction on number of layer) Rules, 2017.

12. The Title deeds of all the immovable properties are held in the name of the company.

13. The Company has not revalued its Property, Plant and Equipment during the year.

14. The Company has not borrowed any fund from bank or financial institutions on the basis of current assets during the
year or otherwise.

NOTE 41: CORPORATE SOCIAL RESPONSIBILITY

As per the provisions of section 135 of the Companies Act 2013, the Company must incur at least 2% of average net profits
of the preceding three financial years towards Corporate Social responsibility ("CSR”). Accordingly, a CSR committee has
been formed for carrying out CSR activities as per the Schedule VII of the Companies Act, 2013. Details are as under:

NOTE 44: OTHER NOTES

A. All current assets appearing in the Balance Sheet as at March 31, 2026 have a value on realisation in the ordinary
course of the Company's business at least equal to the amount at which they are stated in the Balance Sheet.

B. The Company has recognized real estate business revenue upon Project Completion in accordance with Indian
Accounting Standards. Further, considering the nature of the Company's Financial Services Business, profit or (loss)
may not accrue evenly across reporting periods. Accordingly, revenue and the resultant profit/(loss) of the Company
may not be comparable across reporting periods.

C. Transactions and balances with values below the rounding off norm adopted by the Company have been reflected as
"0” in the financial statements.

D. The Company has maintained proper books of account as prescribed under Section 128(1) of the Companies Act,
2013 (as amended). These books of account are maintained in electronic mode in accordance with Section 128(1) of
the Companies Act, 2013, read with the Companies (Accounts) Rules, 2014 (as amended). The Company has used
accounting software for maintaining its books of accounts for the year ended 31st March, 2026. This software includes
an audit trail (edit log) feature, which was operational throughout the year for all relevant transactions recorded in the
system.

There were no instances of audit trail features being tampered with in respect of these software's. Furthermore, the
Company has preserved the audit trail for the prior year in compliance with statutory record retention requirements, to
the extent enabled by the system.

E. Previous year figures have been regrouped, re-arranged and re-classified wherever necessary to conform to current
year's classification.