2.18 Provisions

A provision is recognised if, as a result of a past event, the
Company has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an
outflow of economic benefits will be required to settle the
obligation. Provisions are recognised at the best estimate
of the expenditure required to settle the present obligation
at the reporting date, taking into account the risks and
uncertainties surrounding the obligation. Provisions are
determined by discounting the expected future cash flows
at a pre-tax rate that reflects current market assessments
of the time value of money and the risk specific to the
liability. The unwinding of discount is recognised as
finance cost.

Provisions for onerous contracts are recognised when the
expected benefits to be derived by the Company from a
contract are lower than the unavoidable costs of meeting
the future obligations under the contract. Provisions for
onerous contracts are measured at the present value of
lower of the expected net cost of fulfilling the contract and
the expected cost of terminating the contract.

2.19 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. Financial instruments
are recognised in the Company’s balance sheet when the
Company becomes a party to the contractual provisions
of the instrument.

a) Recognition and initial measurement

Trade receivables and debt securities issued are
initially recognised when they are originated.
All other financial assets and financial liabilities are
initially recognised when the Company becomes a
party to the contractual provisions of the instrument.

All financial instruments are recognised initially at fair
value except for trade receivables which are initially
measured at transaction price. Transaction costs that
are attributable to the acquisition of the financial
asset (other than financial assets recorded at fair
value through profit or loss) are included in the fair

value of the financial assets. Regular way purchase
and sale of financial assets are accounted for at
trade date.

b) Financial assets

(i) Classification and subsequent measurement

For the purpose of subsequent measurement, a
financial asset is classified and measured at

• amortised cost;

• fairvaluethrough othercomprehensive income
(FVTOCI) - debt investment;

• fairvaluethrough othercomprehensive income
(FVTOCI) - equity investment; or

• fair value through profit and loss (FVTPL).

1. A financial asset is measured at amortised cost if both
the following conditions are met:

• t he asset is held within a business model whose
objective is to hold assets to collect contractual cash
flows; and

• t he contractual terms of the financial assets give
rise on a specified date to cash flows that are solely

payments of principal and interest on the principal
amounts outstanding.

2. A debt investment is measured at FVTOCI if both of
the following conditions are met:

• t he asset is held within a business model whose
objective is achieved by both collecting contractual
cash flow and selling financial assets ; and

• t he contractual terms of the financial assets give
rise on a specified date to cash flows that are solely
payments of principal and interest on the principal
amounts outstanding.

3. On initial recognition of an equity investment that is
not held for trading, the Company irrevocably elects
to present subsequent changes in the fair value
in OCI (designated as FVTOCI-equity investment).
This election is made on an investment-to-
investment basis.

4. All financial assets not classified as amortised cost or
FVTOCI as described above are measured at FVTPL.
On initial recognition, the Company may irrevocably
designate a financial asset that otherwise meets
the requirements to be measured at amortised cost
or at FVOCI as at FVTPL, if doing so eliminates or
significantly reduces an accounting mismatch that
would otherwise arise.

(ii) Impairment of financial assets

In accordance with Ind AS 109, the Company applies
expected credit loss (“ECL”) model for measurement
and recognition of impairment loss. The Company
follows 'simplified approach' for recognition of
impairment loss allowance on trade receivables
(billed and unbilled) based on expected lifetime
credit losses at each reporting date after initial
recognition.

For recognition of impairment loss on other financial
assets, the Company determines 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
period, credit quality of the instrument improves
such that there is no longer a significant increase in
credit risk since initial recognition, then the Company
reverts to recognising impairment loss allowance
based on 12-month ECL.

As a practical expedient, the Company uses a
provision matrix to determine impairment loss
on portfolio of its trade receivable and contract
assets. Depending on the diversity of its customer
base, the company has considered to group its
customers into two types: government customers
and non-government customers.

The provision matrix for non-government customers
is based on its historically observed default rates
over the expected life of the trade receivable
and is adjusted for forward-looking estimates.
The provision matrix for government customers is
primarily based on the time-based movement within
the life cycle of customer receivable further adjusted
for forward-looking estimates

ECL impairment loss allowance (or reversal) is
recognised as an income/expense in the statement
of profit and loss during the period.

(iii) Derecognition of financial assets

A financial asset is derecognised only when
the Company:

• has transferred the rights to receive cash flows
from the financial asset; or

• 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.

Where the company has transferred an asset, the Company
evaluates whether it has transferred substantially all risks
and rewards of ownership of the financial asset. In such
cases, the financial asset is derecognised. Where the entity
has not transferred substantially all risks and rewards of
ownership of the financial asset, the financial asset is not
derecognised.

The Company writes off a financial asset when there is
information indicating that the trade receivables (billed
and unbilled) is in severe financial difficulty or the dispute
with the customer is not resolved and there is no realistic
prospect of recovery. Any recoveries made are recognised
in profit or loss.

Where the company has neither transferred a financial
asset nor retains substantially all risks and rewards of
ownership of the financial asset, the financial asset is
derecognised if the Company has not retained control of
the financial asset.

c) Financial liabilities

(i) Classification, subsequent measurement and
gains and losses

Financial liabilities are initially measured at fair value,
net of transaction costs, and are subsequently
measured at amortised cost through effective
interest method. Financial liabilities are subsequently
carried at amortised cost using the effective interest
method, except for contingent consideration
recognised in a business combination which is
subsequently measured at fair value through profit
or loss. For trade and other payables maturing within
one year from the balance sheet date, the carrying
amounts approximate fair value due to the short
maturity of these instruments.

(ii) Financial guarantee contracts

Financial guarantee contracts are those contracts
that require the issuer to make specified payments
to reimburse the holder for a loss it incurs because
the specified party fails to make payments when due
in accordance with the terms of a debt instrument.
Financial guarantee contracts are initially recognised
at fair value, adjusted for transaction costs that are
directly attributable to the issuance of the guarantee.
Subsequently, the liability is measured at the higher
of the amount of loss allowance determined as
per impairment requirements of Ind AS 109 and
the amount initially recognised less cumulative
amortisation.

(iii) Derecognition

A financial liability is derecognised when the
Company’s obligations are discharged or cancelled
or have expired. An exchange with a lender of debt
instruments with substantially different terms is
accounted for as an extinguishment of the original
financial liability and the recognition of a new
financial liability. Similarly, a substantial modification
of the terms of an existing financial liability (whether
or not attributable to the financial difficulty of the
debtor) is accounted for as an extinguishment of the
original financial liability and the recognition of a new
financial liability. The difference between the carrying
amount of the financial liability derecognised and
the consideration paid and payable is recognised in
profit or loss.

(iv) Offsetting

Financial assets and financial liabilities are offset
and the net amount presented in the balance sheet
when, and only when, the Company currently has a
legally enforceable right to set off the amounts and
it intends either to settle on a net basis or to realise
the asset and settle the liability simultaneously.

2.20 Measurement of fair values

Fair values are categorised into different levels in a fair
value hierarchy based on the degree to which the fair
value measurements are observable and significance of
the inputs to fair value measurements:

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

• Level 2: inputs other than quoted prices included in
Level 1 that are observable for the asset or liability,
either directly or indirectly

• Level 3: inputs for the asset or liability that are not based
on observable market data (unobservable inputs)

I n determining the fair value of an asset or a liability, the
Company uses different methods and assumptions based
on observable market inputs. All methods of assessing fair
value result in general approximation of value, and such
value may not actually be realised.

The Company recognises transfers between levels of
the fair value hierarchy at the end of the reporting period
during which the change has occurred. For financial assets
and liabilities maturing within one year from the balance
sheet date and which are not carried at fair value, the

carrying amounts approximate fair value due to the short
maturity of these instruments.

2.21 Revenue recognition

The Company derives revenue primarily from integrated
facility management, client asset maintenance services,
food and hospitality services, integrated security solutions,
and digital hiring services.

Revenues from customer contracts are considered for
recognition and measurement when the contract has
been approved by the parties to the contract, the parties
to contract are committed to perform their respective
obligations under the contract, and the contract is legally
enforceable. Revenue is recognised upon transfer of
control of promised products or services (“performance
obligations”) to customers in an amount that reflects the
consideration the Company has received or expects
to receive in exchange for these products or services
(“transaction price”). When there is uncertainty as to
collectability, revenue recognition is postponed until such
uncertainty is resolved.

The contract with customers, generally contains a single
performance obligation and is measured based on the
transaction price, which is the consideration, adjusted
for volume discounts, service level credits, performance
bonuses, price concessions and incentives, if any, as
specified in the contract with the customer. Revenue also
excludes taxes collected from customers.

Revenue are recognised over time as the customer
simultaneously receives and consumes the benefits as the
Company renders the services. The invoicing for these
services is either based on cost plus a service fee or fixed
fee model.

The Company has concluded that it is the principal in all
of its revenue arrangements since it is the primary obligor
and has pricing latitude which establishes control before
transferring products and services to the customer.

The Company’s receivables are rights to consideration
that are unconditional. Unbilled revenues comprising
revenues in excess of invoicing are classified as financial
asset when the right to consideration is unconditional and
is due only after a passage of time. Unbilled revenues
are presented under Trade receivables, while invoicing in
excess of revenues are classified as unearned revenue.

Other income

Other income comprises primarily interest income on
deposits, dividend income and gain/ (loss) on disposal of
financial assets and non-financial assets. Interest income

termination of employment based on the last drawn
salary and years of employment with the Company.
The Company's gratuity fund is managed by Life
Insurance Corporation of India (LIC) and State Bank
of India (SBI). The present value of gratuity obligation
under such defined benefit plan is determined based
on actuarial valuations carried out by an external
actuary using the Projected Unit Credit Method.
The Company recognises the net obligation of a
defined benefit plan in its balance sheet as an asset
or liability.

The Company recognises the following changes in
the net defined benefit obligation as an expense in
the statement of profit and loss:

• Service costs comprising current service
costs, past service costs, gains and losses on
curtailments and non-routine settlements; and

• Net interest expense or income.

Actuarial gains or losses are recognised in other
comprehensive income. Further, the statement of
profit and loss does not include an expected return
on plan assets. Instead, net interest recognised in the
statement of profit and loss is calculated by applying
the discount rate used to measure the defined
benefit obligation to the net defined benefit liability
or asset. The actual return on the plan assets above
or below the discount rate is recognised as part
of re-measurement of net defined liability or asset
through other comprehensive income.

Re-measurement comprising actuarial gains or
losses and return on plan assets (excluding amounts
included in net interest on the net defined benefit
liability) are not reclassified to the statement of profit
and loss in subsequent periods.

2.23 Borrowing Cost

Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time
to get ready for their intended use or sale, are added to
the cost of those assets, until such time as the assets are
substantially ready for their intended use or sale.

I nvestment income earned on the temporary investment
of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs
eligible for capitalisation.

All other borrowing costs are recognised in profit or loss
in the period in which they are incurred.

2.24 Exceptional Items

When items of income and expense within profit or loss
from ordinary activities are of such size, nature or incidence
that their disclosure is relevant to explain the performance
of the Company for the period, the nature and amount of
such items is disclosed separately as Exceptional items.

2.25 Taxes

I ncome tax expense comprises current and deferred
income tax. Income tax expense is recognised in the
statement of profit and loss except to the extent that it
relates to items recognised directly in equity or in other
comprehensive income.

Current income tax for current and prior periods is
recognised at the amount expected to be paid to or
recovered from the tax authorities, using the tax rates
and tax laws that have been enacted or substantively
enacted by the reporting date. Deferred income tax
assets and liabilities are recognised for all temporary
differences arising between the tax bases of assets and
liabilities and their carrying amounts in the standalone
financial statements. Deferred tax assets are reviewed at
each reporting date and are reduced to the extent that
it is no longer probable that the related tax benefit will
be realised.

Deferred income tax assets and liabilities are measured
using tax rates and tax laws that have been enacted
or substantively enacted by the reporting date and are
expected to apply to taxable income in the years in which
those temporary differences are expected to be recovered
or settled. The effect of changes in tax rates on deferred
income tax assets and liabilities is recognised as income
or expense in the period that includes the enactment or
the substantive enactment date.

Deferred tax assets are recognised to the extent that it
is probable that future taxable profits will be available
against which the deductible temporary differences can
be used. Deferred income tax liabilities are recognised
for all taxable temporary differences. Deferred tax assets,

unrecognised or recognised, are reviewed at each
reporting date and are recognised/reduced to the extent
that it is probable/no longer probable respectively that the
related tax benefit will be realised.

The Company offsets current tax assets and current tax
liabilities, where it has a legally enforceable right to set
off the recognised amounts and where it intends either to
settle on a net basis, or to realise the asset and settle the
liability simultaneously.

2.26 Contingent liability

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 arises from past events where 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 measured reliably. The Company does not recognise
a contingent liability but discloses its existence in the
standalone financial statements.

2.27 Cash flow statement

Cash flows are reported using the indirect method,
whereby profit for the period is adjusted for the effects of
transactions of a non-cash nature, any deferrals or accruals
of past or future operating cash receipts or payments and
item of income or expenses associated with investing
or financing cash flows. The cash flows from operating,
investing and financing activities of the Company are
segregated.

2.28 Segment reporting

I n accordance with Ind AS 108, Operating segments,
segment information has been disclosed in the
consolidated financial statements of the Company and
no separate disclosure on segment information is given
in these standalone financial statements.

22.1 The demand pertains to non contribution of Provident fund, Pension fund, Deposit Linked Insurance Fund and administration
charges in accordance with the definition of basic wages as contained in Section 2(b) of Employees’ Provident Funds and
Miscellaneous Provisions Act, 1952. The Company, based on an expert’s opinion, is of the view that a part of the claim of
the department is without foundation, while some part is still under debate and accordingly, provision is recorded based on
the management estimate. The Company has appealed against the ruling which is pending in Employees’ Provident Fund
Appellate Tribunal, New Delhi.

22.2 The demands pertains to Aravon Services Private Limited (“ASPL”) which was merged with Quess Corp Limited w.e.f 1
April 2019. The amounts provided represents the best estimate of likely outflow of resources relating to this matter.

22.3 The demands pertain to Avon Facility Management Services Limited (“Avon”) which was merged with Quess Corp Limited w.e.f
1 January 2014. The demand pertains to non-payment of services tax on training services provided under Government of
India initiative, the Company has not created any provision considering that Avon is a registered vocational training provider
associated with the National Council for Vocational Training and service tax is not applicable on rendering of vocational
education and training course.

22.4 The demands pertains to Hofincons Infotech & Industrial Services Private Limited which was merged with Quess Corp Limited
w.e.f 1 July 2014. The Company, based on assessment of the demand, is of the view that the claim made by the department
is not probable.

(i) Disaggregation of revenue

The above break up presents disaggregated revenues from contracts with customers for various services. 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.”

(ii) Trade receivables and advance from customers

The Company classifies the right to consideration in exchange for deliverables as either a trade receivable billed or unbilled.
Invoicing in excess of earnings are classified as unearned revenue.

Trade receivables are presented net of impairment in the Balance Sheet.

The following table provides information about trade receivables and advance from customers from contracts with
customers.

31.1 The Company reassessed its value in use of all the Cash Generating Units (CGUs). As the value in use of Security Services
CGU was lower than the carrying value, the Company recognized an impairment of investment in Terrier Security Services
(India) Private Limited amounting to ' 850 million.

31.2 The Company redeemed 2,300 Compulsorily Convertible Debentures (“CCDs”) amounting to ' 23.03 million and reversed
impairment booked earlier amounting to ' 23.03 million, disclosed as exceptional items in statement of profit and loss.

31.3 Balance consideration receivable of ' 46.00 million on sale of one of the subsidiaries during earlier period has been written off.

31.4 The Company incurred certain demerger expenses for professional services, stamp duty and certain employee benefit
expense aggregating to ' 71.24 million for the period ended 31 March 2025.

Fair value hierarchy

“The section explains the judgment and estimates made in determining the fair values of the financial instruments that are:

a) recognised and measured at fair value

b) measured at amortised cost and for which fair values are disclosed in the standalone financial statements.

To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial
instruments into the three levels prescribed under the Indian Accounting Standard:”

Fair value hierarchy

Level 1: This hierarchy includes financial instruments measured using quoted prices.

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.
Fair valuation method

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions
were used to estimate the fair values.

A Financial assets:

1) Loans, trade receivables, cash and cash equivalents, bank balances other than cash and cash equivalents and investment
in compulsorily convertible preference shares and other financial assets are short term and their carrying amounts are
reasonable approximation of their fair value.

B Financial liabilities:

1) Borrowings: The current borrowings which includes cash credit and overdraft facilities and working capital loan, are classified
and subsequently measured in the financial statements at amortised cost. Considering that the interest rate on the loan is
reset on a monthly/quarterly basis, the carrying amount of the loan would be a reasonable approximation of its fair value.

2) Trade payables and other financial liabilities: Fair values of trade payables and other financial liabilities are measured at
carrying value, as most of them are settled within a short period and so their fair values are assumed to be almost equal to
the carrying values.

33 FINANCIAL RISK MANAGEMENT

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

• Credit risk;

• Liquidity risk; and

• Market risk

The Company was incorporated on 11 February 2024 and core business of the Company acquired from Quess Corp Limited
was operating as division of Quess Corp Limited till 31 March 2025. This Financial risk management is extracted from Quess
Corp Limited to the extent it is applicable till 31 March 2025. Subsequent to the period end, Board of Directors of the Company
approved its own Risk Management policy.

Risk management framework

The Board of Directors of the Company has overall responsibility for the establishment and oversight of the Company’s risk
management framework. The Company’s risk management policies are established to identify and analyse 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. The Company, through its
training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which
all employees understand their roles and obligations.

The Company’s audit committee oversees how management monitors compliance with the Company’s risk management policies
and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.
The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews
of risk management controls and procedures, the results of which are reported to the audit committee.

i) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Company’s receivables (both billed and unbilled) from customers,
loans and other financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets.
The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience
and other factors. The carrying amount of financial asset represent the maximum credit exposure.

Credit risk on cash and cash equivalents and other bank balances and bank deposits is limited as the Company generally
invests in deposits with banks with high credit ratings assigned by domestic credit rating agencies. Other financial assets
represent security deposits given to suppliers, lessors and others. Credit risk associated with such deposits is relatively low.
Loans are given to subsidiaries and are tested for impairment where there is an indicator.

Trade receivables (including unbilled)

Trade receivables (including unbilled) are typically unsecured and are derived from revenue from customers primarily located in India.
The Company has established a credit policy under which each customer is analysed individually for creditworthiness before
the Company’s standard payment and delivery terms and conditions are offered.

Expected credit loss assessment for customers are as follows:

The Company uses an allowance matrix to measure the expected credit loss (“ECL”) of trade receivable (billed and unbilled).
There are certain customer contracts which are not novated from Quess Corp Limited (“Quess”) to the Company as at 31
March 2025 and Quess has billed those customers during the period ended 31 March 2025. The Company follows the same
allowance matrix to compute ECL on those trade receivables outstanding from the billing done by Quess. The Company’s
customers are bifurcated into two groups - Government and Non-Government customers. For Non-Government customers, the
Company derives the loss rates based on historical credit loss experience, which is adjusted for forward looking information
over the expected collection period. Exposure to customers is diversified and there is no single customer contributing more
than 10% of trade receivable billed and unbilled. For government customers, given the insignificant credit risk, provision is

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 approach to managing liquidity is to
ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and
stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

Management monitors rolling forecast of the Company’s liquidity position and cash and cash equivalents on the basis of
expected cash flows. The Company’s objective is to maintain a balance between cash outflow and inflow. Usually, the excess
of funds is invested in fixed deposits and other financial instruments. This is generally carried out in accordance with practice
and limits set by the Company. The limits vary to take into account the liquidity of the market in which the Company operates.

Financing arrangement

The table below provides details regarding the contractual maturities of significant financial liabilities as at 31 March 2025.
The amounts are gross and undiscounted contractual cash flows and includes contractual interest payments and exclude
netting arrangements.

The Company has a strong focus on liquidity and maintains a robust cash position to ensure adequate cover for responding
to potential short-term market dislocation. Cash generated through operating activities remains the primary source for liquidity
along with undrawn borrowing facilities and levels of cash and cash equivalents.

iii) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity 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 foreign currency receivables and payables and long term debt. The objective of
market risk management is to manage and control market risk exposures within acceptable parameters, while optimising
the return.

33 FINANCIAL RISK MANAGEMENT (CONTINUED)

a) Currency risk

The Company is not significantly exposed to currency risk as the Company’s functional currency in ' and revenues
and costs are primarily denominated in ' and therefore disclosures required under “Ind AS 107 - Financial Instruments:
Disclosures” have not been given.

b) Interest rate risk

I nterest 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’s borrowing comprises of working capital loan and cash credit facilities
which carries variable rate of interest.

(i) Interest rate risk exposure

The exposure of the Company’s borrowings to interest rate changes at the end of the reporting period are
as follows:

(Amount in ' millions)

The sensitivity analysis is prepared assuming the amount of the liability outstanding at the end of the reporting
period was outstanding for the whole period. A 100 basis point increase or decrease is used when reporting
interest rate risk internally to key management personnel and represents management’s assessment of the
reasonably possible change in interest rates.

34 CAPITAL MANAGEMENT

The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain
future development of the business. The Company monitors the return on capital as well as the level of dividends on its equity
shares. The Company’s objective when managing capital is to maintain an optimal structure so as to maximise shareholder value.

The Company monitors capital using a ratio of ‘adjusted net debt’ to ‘equity’. For this purpose, adjusted net debt is defined as
aggregate of borrowings and lease liabilities less cash and cash equivalents.

The Company’s policy is to keep the ratio below 2.00. The Company’s adjusted net debt to equity ratio were as follows:

For details about the related employee benefits expense, Refer note 27.

*The Company has a defined benefit gratuity plan in India, governed by the Payment of Gratuity Act,1972. it entities an employee, who has
rendered at least five years of continuous service, to gratuity at the rate of fifteen days wages for every completed year of service or part thereof
in excess of six months, based on the rate of wages last drawn by the employee concerned.

These defined benefit plans expose the Company to actuarial risks, such as longevity risk, interest rate risk and market
(investment) risk.

A Funding

The Company’s gratuity scheme for core and associates employees is administered through a third party manager, the Life
Insurance Corporation of India and SBI Life Insurance Company Limited. The funding requirements are based on the gratuity
funds actuarial measurement framework set out in the funding policies of the plan. The funding is based on a separate
actuarial valuation for funding purpose for which assumptions are same as set out below. Employees do not contribute to
the plan. The Company has determined that, in accordance with the terms and conditions of gratuity plan, and in accordance
with statutory requirements (including minimum funding requirements) of the plan, the present value of refund or reduction
in future contributions is not lower than the balance of the total fair value of the plan assets less the total present value of
obligations.

The Company expects to pay ' 83.87 million contributions to its defined benefit plans in FY 2025-26.

40 SHARE-BASED PAYMENTS

A Description of share based payment arrangement

At 31 March 2025, the Company has the following share-based payment arrangements:

As per the Scheme of Arrangement, the unvested Restricted Stock Units (RSUs) granted to employees who have been
transferred to the Company from Quess Corp Limited, will be cancelled on the Effective Date and shares in the Company will
be issued subject to fair value adjustment. Subsequent to 31 March 2025, the Company adopted a Special Purpose Stock
Ownership Plan 2025 (‘"'Special SOP 2025), based on the principles of the Quess Stock Ownership Plan 2020 (“”QSOP
2020””) of Quess Corp Limited (‘Demerged Company’) on terms and conditions no less favorable than those provided under
the QSOP 2020, to create, offer, issue and allot upto 18,35,490 restricted stock units to eligible employees.

Accordingly, Quess Corp Limited has transferred the opening ESOP Reserve (Stock options outstanding account), relating to
the unvested RSUs of these employees to the Company. Further, ESOP expenses in respect of these employees pertaining
to QSOP 2020 Scheme, has been apportioned on a reasonable basis between the Company, Quess Corp Limited and
Bluspring Enterprises Limited.

#Pursuant to the Scheme of Arrangement and subsequent to 31 March 2025, the Company determined an RSU entitlement ratio of 6.80
new RSUs for every RSU cancelled in Quess Corp Limited. This entitlement ratio is based on a valuation assessment carried out by the
external valuer

^A includes 50,740 RSUs that were forfeited after 31 March 2025, but before the fair value adjustment was made in accordance with the
Scheme of Arrangement.

The options outstanding as at 31 March 2025 have an exercise price of ' 10.00 and a weighted average remaining
contractual life of 4.74 years.

D Expense recognised in standalone statement of profit and loss

For details about the related employee benefits expense, Refer note 27.

41 COMPOSITE SCHEME OF ARRANGEMENT BETWEEN QUESS CORP LIMITED (“DEMERGED
COMPANY”), DIGITIDE SOLUTIONS LIMITED (“RESULTING COMPANY 1”) AND BLUSPRING
ENTERPRISES LIMITED (“RESULTING COMPANY 2”) AND THEIR RESPECTIVE SHAREHOLDERS AND
CREDITORS:

The Company received a certified true copy of the Hon’ble National Company Law Tribunal, Bengaluru Bench (“NCLT”) order dated
17 March 2025, approving the Scheme of Arrangement between Quess Corp Limited (“Demerged Company”), Digitide Solutions
Limited (“Resulting Company 1”), Bluspring Enterprises Limited (“Resulting Company 2”/ “the Company”), and their respective
shareholders and creditors (‘Scheme of Arrangement’), with an appointed date of 01 April 2024. The certified true copy of the
Order was filed with the Registrar of Companies on 31 March 2025 (the “Effective Date”). The Company considered the receipt of
NCLT approval as an adjusting event and accounted for it in accordance with Appendix C to Ind AS 103 “Business Combinations”.

Pursuant to the approval of the Scheme, the Company recorded the assets (including its related investments in subsidiaries) and
liabilities pertaining to Transferred Businesses 2 (as defined in Scheme of Arrangement) at their carrying values appearing in the
books of accounts of Quess Corp Limited, retrospectively from the appointed date. Consequently, the difference between the
face value of new equity shares required to be issued (net of existing share capital) and the net assets of Transferred Businesses
2 has been credited to Capital Reserve.

45 The Code on Social Security, 2020 (“Code”) relating to employee benefits during employment and post-employment benefits
received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on
which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into
effect and will record any related impact in the period the Code becomes effective.

46 (i) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources

or kind of funds) by the Company to or in any other persons or entities, including foreign entities (‘’Intermediaries’’) with
the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified
by or on behalf of the Company (Ultimate Beneficiaries).

(ii) The Company has not received any fund from any persons or entities, 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.

47 (i) As per the MCA notification dated August 05, 2022, the Central Government has notified the Companies (Accounts)

Fourth Amendment Rules, 2022. As per the amended rules, Companies are required to maintain back-up of the ‘books
of account and other relevant books and papers’ (‘books of account’) in electronic mode that should be accessible in
India at all the time. Also, the Companies are required to create backup of accounts on servers physically located in
India on a daily basis.

The books of account of the Company is maintained in electronic mode on servers physically located in India and are
readily accessible in India at all times. The Company is maintaining backup of books of account on a daily basis, except
for one application where the Company has maintained the backup on weekly basis.”

ii) The Company has used accounting softwares for maintaining its books of account, which have a feature for recording
an audit trail (edit log) facility and the same have operated throughout the year for all relevant transactions recorded in
the software, except that:

• In respect of one accounting software, audit trail feature was not enabled at certain tables and database level to
log any direct data changes.

• The Company has also used two other accounting softwares, which is operated by a third-party software provider,
for maintaining the books of account relating to financial reporting and payroll processes. There is no reporting on
audit trail in the System and Organisation Controls (SOC 1) Type 2 Report of the third-party software provider.

Further, during the course of our audit, there were no instances noted of audit trail feature being tampered with in
respect of the accounting softwares for which the audit trail feature was operating.

48 OTHER DISCLOSURE

48.1 The Company has not been declared wilful defaulter by any bank or financial institution or Other lender.

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

48.3 The Company has not traded or invested in Crypto currency or Virtual Currency during the period.

48.4 No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

49 The Company evaluated subsequent event through 23 June 2025 which is the date on which the financial statements are
approved by the Board of Directors. Subsequent to the Scheme of Arrangement approved by NCLT, the Company received
approvals from Stock Exchanges and SEBI. Subsequent to these approvals, the Company got listed on Bombay Stock Exchange
and National Stock Exchange on 11 June 2025.Apart from this, the Company is not aware of any other event or transaction that
would require recognition or disclosure in these financial statements.

50 These standalone financial statements have been prepared as at, and for the period from, 11 February 2024 (the date of
incorporation) to 31 March 2025. Since this is the first year of preparation and presentation of financial statements, accordingly,
no comparative figures have been presented.