Awfis Space Solutions Ltd இன் கணக்கு குறிப்புகள்

Mar 31, 2025

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 Ministry of Corporate Affairs ("MCA") notified new
standards or amendment to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. The Company applied
following amendments for the first-time during the
current year which are effective from 1 April 2024:

Amendments to Ind AS 116 - Lease liability in a
sale and leaseback

The amendments require an entity to recognise lease
liability including variable lease payments which are not

linked to index or a rate in a way it does not result into
gain on right-of-use assets it retains.

The amendments had no impact on the Company''s
standalone financial statements.

Introduction of Ind AS 117

MCA notified Ind AS 117, a comprehensive standard that
prescribe, recognition, measurement and disclosure
requirements, to avoid diversities in practice for
accounting insurance contracts and it applies to all
companies i.e., to all "insurance contracts" regardless
of the issuer. However, Ind AS 117 is not applicable
to the entities which are insurance companies
registered with IRDAI.

The Company has reviewed the new pronouncements
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

The Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. There is amendment to
Ind AS 21 "Effects of Changes in Foreign Exchange
Rates" such amendments would have been applicable
from 01 April 2025.

The Effects of Changes in Foreign Exchange Rates
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 amendments are effective for the period on or
after 01 April 2025. When applying the amendments, an
entity cannot restate comparative information.

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.

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

Equity shares

The Company has only one class of equity shares having a par value of H 10 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 H 100 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 H 10 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.

On 25 April 2024, these 0.0001% Series F1 compulsory convertible cumulative preference share were converted into equity
shares in the manner as stated in the Shareholder Agreement.

0.0001% optionally convertible redeemable preference share (Series F)

The Company had only one class of optionally convertible redeemable preference share (OCRPS) having a par value of H 10
per share fully paid up. Each holder of OCRPS was entitled to one vote per share held and were eligible to receive cumulative
dividend at the rate of 0.0001% on the face value of the share. Each holder of OCRPS had the right of redemption along
with redemption premium by cash or it can be convertible into CCCPS which, further, may be converted into equity shares
in the ratio of 1:1 at anytime at the option of the holder. On 25 July 2023, the said shares were converted into CCCPS in the
manner as stated in the Shareholder Agreement.

(f) During the year ended 31 March 2024, the Company has issued 150,000 equity shares of face value H10/- each fully paid
up, for consideration other than cash, in lieu of fund raise bonus given to the promoter of the Company vide board
resolution dated 24 August 2023. Apart from this no shares have been issued pursuant to contract without payment being
received in cash, allotted as fully paid up shares by way of bonus issues nor has any shares been bought back during the
period of 5 years immediately preceeding the reporting date.

(g) The Board of Directors of the Company in their meeting dated 12 October 2022 approved a scheme of selective reduction
of capital held by certain existing shareholders DOIT Urban Ventures (India) Private Limited and RAB Enterprises (India)
Private Limited ("identified shareholders") at an agreed price equivalent to fair value of the shareholding held by them.
Consequently, the Company filed a petition before the National Company Law Tribunal Delhi (NCLT) under Section 66 of the
Companies Act, 2013 read with NCLT (Procedure for Reduction of Share Capital of Company) Rules, 2016 bearing Company
Petition No. 204/ND/2022 for reduction of share capital, wherein the Company proposed a reduction, cancellation and
extinguishment of the issued, subscribed and paid-up share capital comprising of Equity Shares of H 10 each, Compulsorily
Convertible Preference Shares of H 100 each, held by identified shareholders. The Company represented to NCLT that the
capital reduction would be exercised by utilizing the funds being made available by an investor group comprising of QRG
Investments and Holdings Limited, Emerge Capital Opportunity Scheme, VBAP Holdings Private Limited, Karmav Real
Estate Holdings LLP and other individuals ("Incoming investors") and Peak XV Partners Investments V (Formerly known

as SCI Investments V), Bisque Limited & Link Investment Trust (""Existing Investors"") committing to infuse funds only
upon approval of capital reduction from NCLT and resultant cancellation/extinguishment of the shareholding held by
the said identified shareholders in the Company giving effect to the NCLT order. For the above purpose, the identified
shareholders, incoming investors and existing investors operated through escrow accounts and appointed trustees
to act on their behalf. The NCLT vide its order dated 25 May 2023 confirmed the Company''s petition for reduction of
aforesaid share capital. Consequently, a sum of H 2,499.99 deposited by the incoming investors and existing investors in
the escrow accounts was transferred by the Trustee to the Company''s escrow account towards consideration for issue of
Compulsory Convertible Preference Shares, for which shares were allotted on 04 June 2023. The consideration payable
to the identified shareholders was paid and the shares held by identified shareholders were cancelled and extinguished
on 04 June 2023, pursuant to the directions of NCLT and thus these identified shareholders ceased to be shareholders
effective from 04 June 2023.

(h) Pursuant to the Right to Subscribe Agreement, on 16 August 2023, the Board of Directors of the Company approved and
allotted 251,143 equity shares having a face value of H 10/- per share and premium of H 134.27/- per share on a private
placement basis to Cigam Developers Limited against their loan amount.

(i) Pursuant to the Right to Subscribe Agreement, on 16 August 2023, the Board of Directors of the Company approved and
allotted 693,144 equity shares having a face value of H 10/- per share and premium of H 134.27/- per share on a private
placement basis to Divi''s Properties Private Limited against their loan amount.

(j) On 20 September 2023, pursuant to conversion of 346,575 Series F Compulsorily Convertible Cumulative Preference
Shares of H 100/- each to equity shares in the conversion ratio of 1:1, 346,575 equity shares of H 10/- each were issued.
Such equity shares were issued at a price of H 144.27/- per equity share.

(k) On 27 October 2023, the Company allotted 2,620,366 Equity Shares of face value H10/- each for cash, at a price of H 273.10/-
per equity share (including premium of H 263.10/- per share), aggregating to H 715.62 to the existing shareholders on a
"rights'''' basis in the ratio of 8 Equity Share for every 49 equity shares held by equity shareholders.

(l) On 25 April 2024, the company has converted the following Compulsorily Convertible Cumulative Preference Shares and

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16 Other equity (Contd..) 1

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) has been issued to Bisque Limited at face value of H 10,000 per CCD. Each
CCD shall bear a coupon rate of 0.001%. Each CCD shall be converted into equity shares at any time at the option of the
holder. Each CCD shall 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 unsecured loan

The Company has taken unsecured loan carrying interest rate of 12%. The unsecured loan is repayable as bullet payment on
maturity. As per the loan agreement, lender has a right to subscribe to equity shares or compulsorily convertible preference
shares of the Company for an amount equal to the outstanding amount of loan and accrued interest thereon. Based on the
mutual agreement, the loan agreement was foreclosed, and the Company repaid the loan amount with interest. Pursuant to
the Right to Subscribe Agreement, on 16 August 2023, the Board of Directors of the Company approved and allotted 944,287
equity shares having a face value of H 10/- per share and premium of H 134.27/- per share on a private placement basis. Refer
note 15(h) and 15(i) for details. Accordingly, the equity component has been transferred to retained earnings.

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.

(a) H 250 obtained from Tata Capital Financial Services Limited drawn on 23 June 2023 carries 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 interest rate as on 31 March 2025 is 11.10% (31 March 2024: 12%).
The amount outstanding as at 31 March 2025 is H 156.04 (adjusted with processing fee) (31 March 2024: H 218.03), which
has exclusive charge by way of hypothecation of all the moveable fixed assets in the form of fit outs installed at certain
locations which are taken on lease by the Company and present and future cash flows from rental receivables from such
locations along with non-disposal undertaking upto 15% is provided by Director of the Company.

(b) H 5.19 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 2025 is 8.5% (31 March 2024: 8.5%). The amount outstanding as at 31 March 2025 is H 3.74 (31 March 2024:
H 4.69), which has exclusive charge by way of hypothecation of vehicle.

(c) H 100 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 2025 is 10.45% (31 March 2024: 10.35%).
The amount outstanding as at 31 March 2025 is H 73.98 (adjusted with processing fee) (31 March 2024: H 99.02), which has
pari passu charge on current assets with ICICI Bank (excluding rentals charged to Tata Capital Financial Services Limited
and Kotak Mahindra Bank Limited) for both present and future rentals of the borrower.

(d) The Company had an overdraft facility of Nil (31 March 2024: H 100) 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 for the year ending 31 March 2025 was 10.45% (31 March 2024: 10.25%). The said facility was withdrawn on
24 March 2025. The outstanding amount as of 31 March 2025 was Nil (31 March 2024: Nil). 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 has an overdraft facility of H 100 from ICICI Bank Limited, which is valid upto 12 months, starting from 03 June
2024. This facility carries a floating interest rate based on the applicable I-MCLR 6M rate plus 1.75%. Currently, the interest rate
is 10.75%. The outstanding amount as of 31 March 2025 is Nil (31 March 2024: Nil). This facility is secured by a pari passu charge
on the current assets of the borrower and exclusive charge over fixed deposits of the Company for 30% of the facility amount.

(f) The Company has an working capital demand loan of H 200 from ICICI Bank Limited, which is valid upto 12 months, starting from 03
June 2024. This facility carries a floating interest rate based on the applicable I-MCLR 3M rate plus 1.50%. Currently, the interest rate
is 10.15%. The outstanding amount as of 31 March 2025 is Nil (31 March 2024: Nil). This facility is secured by a pari passu charge on
the current assets of the borrower and exclusive charge over fixed deposits of the Company for 30% of the facility amount.

(g) The Company has used the borrowings from banks and financial institutions for general corporate purposes/reimbursement
of capital expenditure for which such term loan was taken.

(ii) Corporate Social Responsibility:

Since the Company does not meet the criteria specified in section 135 of the Companies Act, 2013, the Company is not
required to spend any amount on activities related to corporate social responsibility for the year ended 31 March 2025
and 31 March 2024.

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 H 275. Further, the cash consideration of H 275 also included a consideration of H 20, 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 H 251.02 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.

32 Related party disclosures (Contd..)

Terms and conditions of transactions with related parties

All transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions.
Outstanding balances at the year end are unsecured and their settlement occurs in cash. The Director of the Company has
given a non-disposal undertaking upto 15% with respect to a borrowings obtained from the lender (refer note 17(a)). For
the year ended 31 March 2025, the Company has not recorded any impairment of receivables relating to amounts owed
by related parties (31 March 2024 : Nil).

33 Contingent liabilities and commitments
(i) Contingent liabilities

The Company has no contingent liability as at 31 March 2025 (31 March 2024 : Nil).

While certain legal proceedings are currently ongoing against the Company, 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 favorable 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.

34 Capital management

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 capital structure of the Company consists of total equity of the Company.

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 average duration of the defined benefit plan obligation at the end of the reporting year is: Rental and
others: 2.62 years and Facility management: 1.12 years (31 March 2024: Rental and others: 2.04 years and Facility
management: 1.33 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.

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'')".

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.

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 H 10 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 H 10 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.

41 Segment information has been provided under the notes forming part of the consolidated financial statements for the
year ended 31 March 2025 as per para 4 of Indian Accounting Standard (Ind AS) 108 "Operating Segments", specified
under Section 133 of the Companies Act, 2013.

42 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 H 10 each have been issued at a price of H 383 per share. The issue comprised of 21.38% fresh issue
aggregating to H 1,280.00 and 78.62% offer for sale aggregating to H 4,709.30. 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 utilization of the IPO proceeds from fresh issue of H 1,170.29 (net of offer expenses of H 109.71 in relation to fresh issue
of shares) is summarized below:

43 The Code on Social Security 2020 (Code), which received the Presidential Assent on 28 September 2020, subsumes nine laws
relating to social security, retirement and employee benefits, including the Employee Provident Fund and Miscellaneous
Provisions Act, 1952 and the Payment of Gratuity Act, 1972. On 03 May 2023, the Ministry of Labour and Employment issued
notifications in compliance of judgement dated 04 November 2022 of Hon''ble Supreme Court in the case pertaining to
Pension on Higher Wages. The Company has not identified any material impact in lieu of such notifications and therefore
not recorded any impact thereon.

44 "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 financial year commencing on 1 April 2024, have used accounting software for maintaining its
books of account which have a feature of recording audit trail (edit log) facility. Furthermore, the Company has preserved
the audit trail as per the statutory requirements for record retention.

45 Subsequent to the year ended 31 March 2025, 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.

46 Other statutory information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company
for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

(ii) The Company has identified transactions with the below companies which have been struck off under section 248 of
Companies Act, 2013:

46 Other statutory information (Contd..)

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

(vi) The Company has not received any funds or further advances in form of any fund from any person(s) or entity(ies),
including guarantee to the Ultimate beneficiaries, with the understanding that the ultimate beneficiaries 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.

(vii) 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.

(viiii) 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.

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

(x) The Company has filed all the required quarterly returns with the lenders as per covenants of the working capital
sanction letter which are in agreement with the books of accounts and there are no material discrepancies in the same.

47 Subsequent to the year ended March 2025, the cheque issued by one of the customer towards the payment of the lease
rentals was returned unpaid and the management has taken appropriate steps under the Negotiable Instruments Act,
1881. Due to the above circumstances, the management has derecognized the lease receivables amounting to Rs. 188.66
million on a prudent basis, as there is uncertainty with respect to ultimate collection of such receivables.

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

The accompanying notes form an integral part of these standalone financial statements
As per our report of even date attached

For Walker Chandiok & Co LLP For and on behalf of the Board of Directors of

Chartered Accountants Awfis Space Solutions Limited

ICAI firm registration no.: 001076N/N500013

Nitin Toshniwal Amit Ramani Rajesh Kharabanda

Partner Chairman and Managing Director Director

Membership no. 507568 DIN: 00549918 DIN: 01495928

Place: New Delhi Amit Kumar Ravi Dugar

Date: 26 May 2025 Company Secretary Chief Financial Officer

Membership no. A31237

---

Mar 31, 2024

O. Provisions, contingent liabilities and contingent assets

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.

Contingent assets

Contingent Assets are disclosed, where the inflow of economic benefits is probable.

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.

For the purpose of the statement of cash flows, cash and cash equivalents consist of unrestricted cash and shortterm deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.

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

Initial recognition and 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.

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

The amendments to Ind AS 1 are applicable for annual periods beginning on or after April 1, 2023. Consequential amendments have been made in Ind AS 107.

The amendments does not have material impact on the Company''s standalone financial statements.

(iii) Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to Ind AS 12

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences.

The amendments should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, at the beginning of the earliest comparative period presented, a deferred tax asset (provided that sufficient taxable profit is available) and a deferred tax liability should also be recognised for all deductible and taxable temporary differences associated with leases and decommissioning

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

Initial recognition and 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. Changes in accounting policies and disclosures

New and amended standards

The Company applied for the first-time certain standards and amendments, which are effective for annual periods beginning on or after April 1,2023.

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standard) Amendment Rules 2022 dated March 23, 2023, to amend the following Ind AS which are effective from April 1, 2023.

(i) Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates.

The amendments are effective for annual reporting periods beginning on or after April 1, 2023 and apply to changes in accounting policies and changes in accounting estimates that occur on or after the start of that period.

The amendments does not have material impact on the Company''s standalone financial statements.

(ii) Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ''significant'' accounting policies with a requirement to disclose their ''material'' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

obligations. Consequential amendments have been made in Ind AS 101. The amendments to Ind AS 12 are applicable for annual periods beginning on or after April 1, 2023.

The amendments does not have material impact on the Company''s standalone financial statements.

T. Standards Notified but not yet effective

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. During the year ended March 31,2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

U. Climate-related matters

The Company considers climate-related matters in estimates and assumptions, where appropriate. The Company considers the climate-related risks does not currently have a significant impact on its operations, the Company is closely monitoring relevant changes and developments, such as new climate-related legislation.

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

Equity shares

The Company has only one class of equity shares having a par value of H 10 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 H 100 per share fully paid up.

Each holder of Series B, C, C1, C2, D, D1, D2, E, E1 and F CCCPS is 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 are 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.

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 H 10 per share fully paid up.

Each holder of Series F1 CCCPS is 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 are 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.

(g) The Board of Directors of the Company in their meeting dated October 12, 2022 approved a scheme of selective reduction of capital held by certain existing shareholders DOIT Urban Ventures (India) Private Limited and RAB Enterprises (India) Private Limited ("identified shareholders") at an agreed price equivalent to fair value of the shareholding held by them. Consequently, the Company filed a petition before the National Company Law Tribunal Delhi (NCLT) under Section 66 of the Companies Act, 2013 read with NCLT (Procedure for Reduction of Share Capital of Company) Rules, 2016 bearing Company Petition No. 204/ND/2022 for reduction of share capital, wherein the Company proposed a reduction, cancellation and extinguishment of the issued, subscribed and paid-up share capital comprising of Equity Shares of H10 each, Compulsorily Convertible Preference Shares of H100 each, held by identified shareholders. The Company represented to NCLT that the capital reduction would be exercised by utilizing the funds being made available by an investor group comprising of QRG Investments and Holdings Limited, Emerge Capital Opportunity Scheme, VBAP Holdings Private Limited, Karmav Real Estate Holdings LLP and other individuals ("Incoming investors") and Peak XV Partners Investments V (Formerly known as SCI Investments V), Bisque Limited & Link Investment Trust ("Existing Investors") committing to infuse funds only upon approval of capital reduction from NCLT and resultant cancellation/extinguishment of the shareholding held by the said identified shareholders in the Company giving effect to the NCLT order. For the above purpose, the identified shareholders, incoming investors and existing investors operated through escrow accounts and appointed trustees to act on their behalf. The NCLT vide its order dated May 25, 2023 confirmed the Company''s petition for reduction of aforesaid share capital. Consequently, a sum of H 2,499.99 deposited by the incoming investors and existing investors in the escrow accounts was transferred by the Trustee to the Company''s escrow account towards consideration for issue of Compulsory Convertible Preference Shares, for which shares were allotted on June 04, 2023. The consideration payable to the identified shareholders was paid and the shares held by identified shareholders were cancelled and extinguished on June 04, 2023, pursuant to the directions of NCLT and thus these identified shareholders ceased to be shareholders effective from June 04, 2023.

(h) On August 16, 2023, equity shares of face value of H10/- each were issued to Cigam Developers Private Limited and Divi''s Properties Private Limited. For further details, refer footnote (a) and (b) to note 17.

(i) On September 20, 2023, pursuant to conversion of 346,575 Series F Compulsorily Convertible Cumulative Preference Shares of H 100/- each to equity shares in the conversion ratio of 1:1, 346,575 equity shares of H 10/- each were issued. Such equity shares were issued at a price of H 144.27/- per equity share.

(j) On October 27, 2023, the Company allotted 2,620,366 Equity Shares of face value H10/- each for cash, at a price of H 273.10/- per equity share (including premium of H 263.10/- per share), aggregating to H 715.62 to the existing shareholders on a "rights" basis in the ratio of 8 Equity Share for every 49 equity shares held by equity shareholders.

Note:

(i) Pursuant to the Series F OCRPS Subscription Letter Agreement dated March 29, 2023, the Series F OCRPS Investors waived their "rights of redemption and redemption premium by cash". Upon waiver of rights, the OCRPS, classified as liability upon initial recognition, has been bifurcated between equity component and liability and the equity component is classified under ''other equity'' and the liability component is classified under ''other financial liabilities''. These OCRPS on the date of modification is accounted at fair value and there was no gain/loss on derecognition of liability.

(ii) Subsequent to year end March 31,2024, these CCCPS and CCD have been converted into equity shares.[refer note 43(a)(b)]

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 Space Solutions Stock Option Plan (EDSOP 2015)" 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 to 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) has 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 shall be converted into equity shares at any time at the option of the holder. Each CCD shall 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 occurence of initial public offer (IPO).

Equity component of unsecured loan

The Company has taken unsecured loan carrying interest rate of 12%. The unsecured loan is repayable as bullet payment on maturity. As per the loan agreement, lender has a right to subscribe to equity shares or compulsorily convertible preference shares of the Company for an amount equal to the outstanding amount of loan and accrued interest thereon. Based on the mutual agreement, the loan agreement was foreclosed, and the Company repaid the loan amount with interest. Pursuant to the Right to Subscribe Agreement, on August 16, 2023, the Board of Directors of the Company approved and alloted 944,287 equity shares having a face value of H 10/- per share and premium of H 134.27/- per share on a private placement basis. Refer note 17(a) and 17(b) for details. Accordingly, the equity component has been transferred to retained earnings.

Equity component of 0.0001% compulsory convertible cumulative preference share and 0.0001% optionally convertible redeemable preference shares

For compulsorily convertible cumulative preference shares (Series B to Series F1) and optionally convertible redeemable preference shares (Series F), refer note 15 (b).

Term loan from other parties:

(a) H 30 obtained from Cigam Developers Private Limited carries an interest rate of 12% and was repayable as bullet payment on maturity. Based on the mutual agreement, the loan agreement was foreclosed, and the Company repaid the loan amount with interest. Pursuant to the Right to Subscribe Agreement, on August 16, 2023, the Board of Directors of the Company approved and alloted 251,143 equity shares having a face value of H 10/- per share and premium of H 134.27/- per share on a private placement basis. The amount outstanding as at March 31,2024 is Nil (March 31,2023: H 30.00).

(b) H 100 obtained from Divi''s Properties Private Limited carries an interest rate of 12% and was repayable in 30 equal monthly instalments commencing from January 01, 2022 with the last instalment due on June 01, 2024. Based on the mutual agreement, the loan agreement was foreclosed, and the Company repaid the loan amount with interest. Pursuant to the Right to Subscribe Agreement, on August 16, 2023, the Board of Directors of the Company approved and alloted 693,144 equity shares having a face value of H 10/- per share and premium of H 134.27/- per share on a private placement basis. The amount outstanding as at March 31, 2024 is Nil (March 31, 2023: H 49.33).

(c) H 250 obtained from Tata Capital Financial Services Limited drawn on June 23, 2023 carries 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 July 20,

2023 with the last instalment due on April 20, 2027. The amount outstanding as at March 31, 2024 is H 218.03 (adjusted with processing fee) (March 31, 2023: Nil), which has exclusive charge by way of hypothecation of all the moveable fixed assets in the form of fit outs installed at certain locations which are taken on lease by the Company and present and future cash flows from rental receivables from such locations along with non-disposal undertaking upto 15% is provided by Director of the Company.

(d) H 5.19 obtained from HDFC Bank Limited drawn on August 5, 2023 carries a fixed interest rate of 8.5% and is repayable in 60 equal installments commencing from September 7, 2023 with the last instalment due on August 7, 2028. The amount outstanding as at March 31, 2024 is H 4.69 (adjusted with processing fee) (March 31, 2023: Nil), which has exclusive charge by way of hypothecation of vehicle.

(e) H 100 obtained from Kotak Mahindra Bank Limited drawn on March 20, 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 April 20,

2024 with the last instalment due on March 20, 2028. The amount outstanding as at March 31, 2024 is H 99.02 (adjusted with processing fee) (March 31,2023: Nil), which has pari passu charge on current assets with ICICI Bank (excluding rentals charged to Tata Capital Financial Services Limited and KMBL) for both present and future of the borrower.

(f) The company has an overdraft facility of H 100 from Kotak Mahindra Bank Limited, which is repayable on demand. This facility carries a floating interest rate based on the applicable K-MCLR 6M rate plus 1.05%. Currently, the interest rate is 10.25%. The outstanding amount as of March 31, 2024, is Nil (March 31, 2023: Nil). This facility is 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.

(g) The company has an overdraft facility of H 100 from ICICI Bank Limited, which is valid upto 12 months, starting from June 03, 2023. This facility carries a floating interest rate based on the applicable I-MCLR 6M rate plus 1.75%. Currently, the interest rate is 10.75%. The outstanding amount as of March 31, 2024, is Nil (March 31, 2023: Nil). This facility is secured by a pari passu charge on the current assets of the borrower and exclusive charge over fixed deposits of the company for 30% of the facility amount.

(h) The company has an working capital demand loan of H 200 from ICICI Bank Limited, which is valid upto 12 months, starting from June 03, 2023. This facility carries a floating interest rate based on the applicable I-MCLR 3M rate plus 1.50%. Currently, the interest rate is 10.15%. The outstanding amount as of March 31,2024, is Nil (March 31,2023: Nil). This facility is secured by a pari passu charge on the current assets of the borrower and exclusive charge over fixed deposits of the company for 30% of the facility amount.

(i) The Company has used the borrowings from banks and financial institutions for general corporate purposes/reimbursement of capital expenditure for which such term loan was taken.

31 Segment information

A. Description of segments and principal activities

The Company considers business segment as the basis for primary segmental reporting. The Company is organized into several business segments:

a) Providing co-working space on rent and allied services

b) Facility management services

c) Construction and fit-out services

d) Other services

Certain Items like fixed deposit, balance with government authorities including advance tax and TDS, loan to employee, borrowings, interest on term loan, other finance charges etc. which cannot be allocated to any business segment are reflected in the column ""Unallocated"". Segments are consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM). The CODM 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, in accordance with reporting requirements of Ind AS - 108 on Segment Reporting. Facility management services and other services have been clubbed together as ''Others'' as their revenue, segment result and segment assets are less than 10% of total revenue, total result and total assets of the Company.

34 Capital management

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 objectives of the Company''s capital management are to safeguard the Company''s ability to continue as a going concern.

The capital structure of the Company consists of total equity of the Company.

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 Company is not subject to externally imposed capital requirements.

(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 Gatuity 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 balance sheet date. 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.

35 Employee benefits (Contd..)

(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: The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

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 (e.g. Increase in the maximum limit on gratuity of H 2).

36 Financial instruments - Fair values and risk management

A. Fair value of financial assets and liabilities that are not measured at fair value (but fair value disclosures are required)

The management assessed that security deposits, loans to employee including interest accrued, cash and cash equivalents, term deposit includingother bank balances, trade receivables, other receivables, Balance in payment gateway, short term borrowings, trade payables & retention money approximate their carrying amounts largely due to the short-term maturities of these instruments.

B. Fair value hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:-

Measurement of Fair Value

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.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions.

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 March 31, 2024 and year ended March 31, 2023.

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.

iv. Currency risk

The currency risk is the exchange-rate risk, arises from the change in price of one currency in relation to another. Particulars of unhedged foreign currency exposures as at the reporting date:

37 Employees'' stock option plan

The shareholders of the Company approved "Awfis Employees'' Stock Option Scheme 2015" (''EDSOP 2015'')" at the Extraordinary General Meeting held on on June 15, 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 H 10 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.

41 The Code on Social Security 2020 (Code), which received the Presidential Assent on September 28, 2020, subsumes nine laws relating to social security, retirement and employee benefits, including the Employee Provident Fund and Miscellaneous Provisions Act, 1952 and the Payment of Gratuity Act, 1972. On May 03, 2023, the Ministry of Labour and Employment issued notifications in compliance of judgement dated November 4, 2022 of Hon''ble Supreme Court in the case pertaining to Pension on Higher Wages. The Company has not identified any material impact in lieu of such notifications and therefore not recorded any impact thereon.

41A 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, the Companies are required to maintain back-up of the books of account and other relevant books and papers in electronic mode on servers physically located in India on a daily basis. The books of account along with other relevant records and papers of the Company are maintained in electronic mode. These are readily accessible in India at all times and is enabled to take daily backup on the server located in India; However, due to technical glitch (Storage constraints) on certain days during the year, complete back up of books of accounts were not taken and logs for Support Application were not available. As on the reporting date i.e., March 31, 2024, the Company is in compliance with the requirement of maintaining back-up of books of account and other relevant books and papers, on a daily basis, pursuant to the amendment and complete backup & logs for the year was made available as at March 31, 2024.

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

(iv) The Company has not traded or invested in Cryptocurrency transactions / balances or Virtual Currency during the year ended March 31,2024 and year ended March 31,2023.

(v) The Company have 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 Ultimate beneficiaries 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.

(vi) The Company has not received any funds or further advances in form of any fund from any person(s) or entity(ies), including guarantee to the Ultimate beneficiaries, with the understanding that the ultimate beneficiaries 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.

(vii) The Company has not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the 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.

(viii) The Company has not been declared as a wilful defaulter by its lenders.

(ix) The Company has filed all the required quarterly returns with the lenders as per covenants of the Sanction of Working Capital Limit which are in agreement with the books of accounts and there are no material discrepancies in the same.

43 Events after the reporting period

(a) On April 25, 2024, the Company has allotted 37,486,081 equity shares having face value of H 10 each pursuant to conversion of 37,486,081 Class B to F1, 0.0001% compulsory convertible cumulative preference shares (CCCPS) in the conversion ratio of 1:1.

(b) On April 25, 2024, the Company has allotted 9,262,750 equity shares having face value of H 10 each pursuant to conversion of 150,705 Class D, D1 and D2 0.001% compulsory convertible debentures (CCD) in the conversion ratio of 1:61.4628.

(c) Subsequent to the year ended March 31,2024, the Company has completed its Initial Public Offer (IPO) of 1,56,37,736 equity shares of face value H 10 each at an issue price of H 383 per share. The issue comprised of 21.37% fresh issue aggregating to H 1,280.00 and 78.63% offer for sale aggregating to H 4,709.25 . Pursuant to the IPO, the equity shares of the Company were listed on National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) on May 30, 2024.

(d) In accordance with the terms stipulated in the Increment letter dated December 11, 2023, Mr. Amit Ramani was entitled to receive a cash bonus of H 50, contingent upon the successful listing of the company''s shares on recognized stock exchanges. On June 17, 2024, Mr. Ramani formally waived his entitlement to this cash bonus by signing a waiver letter. The Nomination and Remuneration Committee duly noted this waiver during its meeting held on the same date.

As per our report of even date attached

For S.R. Batliboi & Associates LLP For and on behalf of the Board of Directors

Chartered Accountants of Awfis Space Solutions Limited

ICAI firm registration no.: 101049W/E300004

per Nikhil Aggarwal Amit Ramani Rajesh Kharabanda

Partner Chairman and Managing Director Director

Membership no. 504274 DIN: 00549918 DIN: 01495928

Place: New Delhi Place: New Delhi Place: New Delhi

Date: June 19, 2024 Date: June 19, 2024 Date: June 19, 2024

Amit Kumar Ravi Dugar

Company Secretary Chief Financial Officer

Membership no. A31237

Place: New Delhi Place: New Delhi

Date: June 19, 2024 Date: June 19, 2024