3.14 Provisions and contingent liabilities

Provisions for legal claims, service warranties and others are recognised when the Company has a present legal or
constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle
the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is
determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an
outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of management's best estimate of the expenditure required to settle the
present obligation at the end of the reporting period. In case of long term provisions, they are disclosed by discounting
at the rate used to determine the present value, which is a pre-tax rate that reflects current market assessments of the
time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is
recognised as interest expense.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within
the control of the Company or a present obligation, that arises from past events where it is either not probable that
an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

3.15 Employee benefits

Short term obligations:

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12
months after the end of the period in which the employees render the related service are recognised in respect of
employees' services up to the end of the reporting period and are measured at the amounts expected to be paid when
the liabilities are settled.

Accumulated compensated absences, which are expected to be availed or encashed within 12 months from the end
of the year are treated as short term employee benefits. The obligation towards the same is measured at the expected
cost of accumulating compensated absences as the additional amount expected to be paid as a result of the unused
entitlement as at the year end.

The Company recognises a liability and an expense for bonuses. The Company recognises a provision where
contractually obliged or where there is a past practice that has created a constructive obligation.

Other long term employee benefit obligations:

(i) Accumulated compensated absences, which are expected to be availed or encashed is being disclosed under short
term obligations. The Company's liability is determined by an independent actuary (using the projected unit credit
method) at the end of each year.

Post employement defined benefit obligations:

(a) defined benefit plans such as gratuity which is managed by trust.

(b) defined contribution plans - provident fund contributions to employees' provident fund organisation.

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of
the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit
obligation is calculated annually by an independent actuary using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows
by reference to market yields at the end of the reporting period on government bonds that have terms approximating
to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation
and the fair value of plan assets. This cost is included in employee benefit expense in the Statement of Profit and
Loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are
recognised in the period in which they occur, directly in other comprehensive income net of the related tax effect.
They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are
recognised immediately in profit or loss as past service cost.

Plan assets are measured at fair value at the reporting date and comprise investments held in an irrevocable trust to
fund employee benefit obligations. The return on plan assets is recognized in profit or loss as part of net interest on
the net defined benefit liability/(asset).

Contribution towards provident fund is made to the regulatory authorities which is a defined contribution plan. Both
the eligible employees and the Company make monthly contributions to the Government administered provident fund
scheme equal to a specified percentage of the eligible employee's salary. Amounts collected under the provident fund
plan are deposited with in a Government administered provident fund. The Company has no further obligation to the
plan beyond its monthly contributions. The Company's contribution to the provident fund is charged to Statement of
Profit and Loss.

3.16 Share based payments - Executives

Share-based compensation benefits are provided to certain employees of the Company by the ultimate holding
company in the form of employee option plan and restricted stock units (RSU) (equity settled transactions). The stock
options vest rateably over a period of four years and expire at the end of ten years, subject to conditions related to
termination of employment. The RSU will vest equally over two to five years. Once they vest, each unit is converted
into a stock of ultimate holding company.

The fair value of options granted by the ultimate holding company's share based compensation plan is recognised as
an employee benefits expense with a corresponding increase in equity. The estimated fair value of options granted,
determined on the date of grant, is charged to Statement of Profit and Loss on a graded basis over the vesting period
of options.

The total expense is recognised over the vesting period, which is the period over which all of the specified vesting
conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of options that
are expected to vest based on the non-market vesting and service conditions. It recognises the impact of the revision
to original estimates, if any, in Statement of Profit and Loss, with a corresponding adjustment to equity.

3.17 Earning per share

Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the
Company by the weighted average number of equity shares outstanding during the period. Diluted earnings per
equity share is computed by dividing the net profit attributable to the equity holders of the Company by the weighted
average number of equity shares considered for deriving basic earnings per equity share and also the weighted
average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.
The dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually
issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares
are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares
are determined independently for each period presented.

The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented
for any share splits and bonus shares issues including for changes effected prior to the approval of the financial
statements by the Board of Directors.

3.18 Recentpronoucements

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.

In May 2025, MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange Rates, applicable
w.e.f. April 1, 2025. The Company has reviewed the amendment and based on its evaluation has determined that it
does not have any material impact in its financial statements.

In August 2025, MCA notified the following amendments to:

1. Ind AS 1, Presentation of Financial Statements, applicable w.e.f April 1, 2025 - The amendment relates to
classification of liabilities as current or non-current and non-current liabilities with covenants. In the context of
classifying a liability as current, it removes the requirement of existence of a right to defer settlement for at least
12 months after the reporting date, and instead requires that the said right should exist on the reporting date
and have substance. The amendment also introduces guidance on classification of liabilities with covenants. The
Company has no impact of these amendments in its classification criteria of current and non-current liabilities.

2. Ind AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments - Disclosures, applicable w.e.f April 1,
2025 - The amendment in Ind AS 7 requires to inform users of financial statements of the existence of supplier
finance arrangements and explain the nature of the arrangements, the carrying amount of liabilities and the
range of payment due dates. Ind AS 107 has been amended to add supplier finance arrangements as a factor
that may cause concentration of liquidity risk. The Company has reviewed the amendment and based on its
evaluation has determined that it does not have any material impact in its financial statements.

3. Ind AS 12, International Tax Reform - Pillar Two Model Rules applicable immediately - The amendments provide
a temporary mandatory relief from deferred tax accounting for top-up tax and disclose that they have applied
the relief. This relief is immediate and applies retrospectively. The Company has reviewed the amendment and
based on its evaluation has determined that it does not have any material impact in its financial statements.

10 Equity share capital and other equity (Contd.)

10.1 Equity share capital (Contd.)

(ii) Terms and rights attached to equity shares

Equity shares have a par value of Rs.10. They entitle the holder to participate in dividends, and to share in the
proceeds of winding up of the Company in proportion to the number of and amounts paid on the shares held.
Every holder of equity shares present at a meeting in person or by proxy, is entitled to one vote, and upon a poll
each share is entitled to one vote.

Notes:

General reserve

General reserve was created when the Company had declared dividend to share holders as per the provisions of
Companies Act, 1956. The reserve is utilised in accordance with the provisions of the Act.

Retained earnings

Retained earnings comprises of the amounts that can be distributed by the Company as dividends to its equity
share holders.

Other reserve

This reserve relates to share based compensation received by the employees from Ingersoll Rand Inc., USA, the
ultimate holding company. Refer note 20(e).

Other comprehensive income/(loss)

Other comprehensive income consist of remeasurement of net defined benefit obiligation.

Provision for Litigations/ disputes

Provision for litigations/ disputes relates to certain employees compensation with respect to termination of
employment. Such provision is recognised based on estimates made by the Company.

Provision for Warranties

Warranties against manufacturing and other defects, as per terms of contract(s) with the customer, are provided for
based on estimates made by the Company. It is expected that this provision will be settled in the remaining unexpired
warranty period ranging from twelve to eighteen months.

Sales tax

Provision for sales tax relates to non-submission of statutory forms by customers to the Company. It is expected that
this provision will be settled as and when the tax assessments are completed.

The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be
recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize
these amounts in revenue. Remaining performance obligation estimates are subject to change and are affected by
several factors, including terminations, changes in the scope of contracts, periodic revalidations, adjustment for
revenue that has not materialized and adjustments for currency.

Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the remaining performance
obligation related disclosures for contracts where the revenue recognized corresponds directly with the value to the
customer of the Company's performance completed to date, typically those contracts where invoicing is on time and
material, unit price basis and no information is provided about remaining performance obligations at March 31, 2026
that have an original expected duration of one year or less, as allowed by Ind AS 115.

(b) Other long term benefits (Compensated absences)

The Company provides compensated absences benefits to certain employees, which can be carried forward to
future years. They are therefore accrued using actuarial valuations and are measured as the present value of
expected future obligation to be made in respect of services provided by employees.

Note: The actuarial assumptions used for valuation of compensated absences are same as those used for gratuity.

(c) Defined contribution plans

Contribution towards provident fund is made to the regulatory authorities which is a defined contribution plan.
Both the eligible employees and the Company make monthly contributions to the government administered
provident fund scheme equal to a specified percentage of the eligible employee's salary. Amounts collected
under the provident fund plan are deposited with in a government administered provident fund. The Company
has no further obligation to the plan beyond its monthly contributions. The Company's contribution to the
provident fund is charged to Statement of Profit and Loss.

(d) Risk Exposure

Through its defined benefit plan, the Company is exposed to a number of risks. The most significant risks are:

(i) Interest rate risk : The defined benefit obligation calculated uses a discount rate based on government
bonds. If bond yields fall, the defined benefit obligation will tend to increase.

(ii) Fund return risk : Lower the return on fund, higher the expected shortfall.

(iii) Salary inflation risk : Higher than expected increases in salary will increase the defined benefit obligation.

(iv) Demographic risk : This is the risk of variability of results due to factors like mortality, withdrawal, disability
and retirement. The effect of these on the defined benefit obligation is not straight forward and depends
upon the combination of salary increase, discount rate and attrition rate.

(v) Investment risk: The Company ensures that the investment positions are managed within an asset-
liability matching (ALM) framework that has been developed to achieve long-term investments that are
in line with the obligations under the employee benefit plans. Within this framework, the Company's
ALM objective is to match assets to the obligations by investing in long-term interest bearing securities
with maturities that match the benefit payments as they fall due. A large portion of assets consists of
government and corporate bonds. The Company believes that investment in government and corporate
bonds offer the best returns over the long term with an acceptable level of risk.

(e) Employee stock option compensation

2017 Omnibus Incentive Plan ("2017 plan")

In May 2017, the Board of the ultimate holding company approved the 2017 Plan, which authorises the ultimate
holding company to grant stock-based compensation awards to employees, directors and advisers. All the share
based incentives vests over a period of two to four years.

A Employee option plan

Certain executives of the Company are eligible to participate in the employee share based payment plans
of 'Ingersoll-Rand Inc., the ultimate holding company. The share based plans are assessed, managed and
administered by the ultimate holding company. Under the plan, participants are granted options which
vests over four years of service from the grant date. Once vested, the options remain exercisable till ten
years from the date of grant.

Fair value of options granted

The fair value at grant date of options granted during the year ended March 31,2026 was USD 37.92 per option
(March 31, 2025: USD 34.54). The fair value at grant date is determined using the Black Scholes model which
takes into account the exercise price, the term of the option, the share price at grant date and expected price
volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the
option.

Note:

On November 21,2025, the Government of India notified provisions of the Code on Wages, 2019; the Industrial
Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health and Working
Conditions Code, 2020 (the "Labour Codes"), which consolidate twenty-nine existing labour laws into a unified
framework governing employee benefits during employment and post-employment.

The Labour Codes, amongst other things, introduce changes including a uniform definition of wages and
enhanced benefits relating to leave. Based on the requirements of the Labour Codes and relevant Indian
Accounting Standards, the Company has estimated the liability for employee benefits, which has resulted in
an incremental expense on account of recognition of past service costs amounting to Rs.1,179.82 during the
year ended March 31, 2026. Considering the impact is arising out of an enactment of the new legislation and
is non-recurring in nature, the Company has presented this amount as "Exceptional item" in the Statement of
Profit and Loss.

Note: The management assessed that for amortised cost instruments, fair value approximate largely to the carrying
amount. The Company does not have any financial instrument designated at FVTPL or FVOCI to be valued as per level
1, level 2, level 3, hence this disclosure is not presented.

30 Financial Risk Management

The Company's activities expose it to market risk, liquidity risk and credit risk. The Company's risk management is
carried out by the management under the policies approved by the Board of Directors that help in identification,
measurement, mitigation and reporting all risks associated with the activities of the Company. These risks are identified
on a continuous basis and assessed for the impact on the financial performance. Information on risks and the response
strategy is escalated in a timely manner to facilitate timely decision making. Risk response strategy is formulated for
key risks by management.

The below note explains the sources of risk which the Company is exposed to and how the Company manages the risk
in the financial statements..

A Credit risk

Credit risk arises from cash and cash equivalents, security deposits carried at amortised cost and deposits with
banks, as well as credit exposures to customers including outstanding receivables.

(i) Credit risk management

Credit risk is managed and assessed on an ongoing basis. Only high rated banks are accepted for banking
transactions and placement of deposits. For other financial assets, the Company assesses and manages credit risk
based on internal credit rating system. Internal credit rating is performed for each class of financial instruments
with different characteristics. The Company assigns the following credit ratings to each class of financial assets
based on the assumptions, inputs and factors specific to the class of financial assets.

A : High quality assets, negligible credit risk.

B : Low quality assets, high credit risk.

C : Doubtful assets, credit-impaired.

The Company considers the probability of default upon initial recognition of asset and whether there has been a
significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there
is any significant increase in credit risk, the Company compares the risk of default occurring on the asset as at
the reporting date with the risk of default as at the date of initial recognition. It considers below indicators to
assess credit risk :

1. Internal credit rating.

2. External credit rating (to extent available).

3. Any significant change in business, financial or economic conditions that are expected to cause a significant
change in the payer's ability to meet its obligations, including changes in operating results and payment
status.

Macro economic information (such as regulatory changes, legal changes, interest rate changes) are incorporated
as a part of the internal rating model.

Default of a financial asset is when the counterparty fails to make contractual payments within 365 days of
when they fall due. This definition of default is determined by considering the business environment in which
entity operates and other macro-economic factors.

Exposure to credit risk

The carrying amount of financial assets, net of any impairment losses recognised represents the maximum credit
exposure. The maximum exposure to credit risk as at March 31,2026 and March 31,2025 are as follows:

B Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and cash equivalents and the availability of
funding through adequate amount of committed credit facilities to meet obligations when due. Due to the dynamic
nature of the underlying business, the Company maintains flexibility in funding by maintaining surplus cash in short¬
term deposits. Management monitors the rolling forecasts of the Company's liquidity position and cash and cash
equivalents on the basis of expected cash flows.

C Market risk

Foreign currency risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect
to USD. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities
denominated in a currency that is not the Company's functional currency (Rupees). The risk is measured through a
forecast of highly probable foreign currency cash flows.

A Risk management

The Company's objectives when managing capital are to:

(i) safeguard their ability to continue as a going concern, so that they can continue to provide returns for
shareholders and benefits for other stakeholders and;

(ii) maintain an optimal capital structure to reduce the cost of capital.

The Company does not have any exposure in the nature of debt except lease liability. Management regularly
monitors rolling forecasts of liquidity position and cash on the basis of expected cash flows. In addition, the
Company projects cash flows in major currencies and considers the level of liquid assets necessary to meet these.

B Leases accounted as ROU assets (as lessee)

(a) The Company leases office premises facilities. The leases typically run for a period of 4 to 9 years, with an option
to renew the lease after that date. For certain leases, the Company is restricted from entering into any sub-lease
arrangements. The Company also leases vehicles for its employees where the leases typically run from 2 to 5
years and land with lease period upto 99 years.

33 Segment Information:

Description of segments and principal activities

The Company's Chief Operating Decision Maker (CODM) consists of the managing director, executive director and
the chief financial officer. The Company's Chief Operating Decision Maker (CODM) reviews the performance of the
Company as a whole. Consequently, there is only one segment Air Solutions. Accordingly, there are no additional
disclosure to be provided under Ind AS 108, other than those already provided in the financial statements.

Major customer

There are no customers which contributes more than 10% of the company total revenue for the year ended March
31,2026 and March 31,2025.

34 Events occurring after the reporting period

The Management has evaluated subsequent events till May 29, 2026, the date at which the financial statements were
approved by the Board of Directors.

(h) Terms and conditions

(1) All transactions including sale of goods were made on normal commercial terms and conditions.

(2) All outstanding balances are unsecured and are repayable in cash.

(3) No amount is/ has been written off or written back during the year in respect of dues from / to related parties.

37 Daily back-up

The Companies (Accounts) Amendments Rules, 2022 mandates maintenance of backup of company's books of
account and other books and papers maintained in electronic mode on servers physically located in India on a daily
basis with effect from August 5, 2022. In this regard, the Company uses accounting software for maintaining its books
of account and has maintained back-up of such books of account on a daily basis in a server physically located in India
except for certain revenue and payroll records wherein back-up is not maintained on a daily basis in a server physically
located in India.

38 Audit trail

The Companies (Accounts) Amendments Rules, 2021 has made it mandatory for companies to maintain audit trail
throughout the year for all the transactions impacting books of accounts. In this regard, the Company has used
accounting software for maintaining its books of account for the year ended March 31, 2026 which has a feature of
recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions
recorded in the software except that:

- in respect on an accounting software, audit trail was not enabled for changes made (if any) by certain privileged
/ administrative users and audit trail was not enabled at audit trail log tables.

- in respect of an software used by the Company for maintaining certain revenue records, audit trail was not
enabled throughout the year.

- in respect of an software operated by a third-party software service provider and used by the Company for
maintaining certain payroll records, Independent auditor's system and organisation controls reports does not
cover audit trail related reporting for the year ended March 31,2026.

The audit trail that was enabled and operated has not been preserved as per the statutory requirements for
record retention.

However, based on management assessment, the aforesaid does not have any impact as the Company has adequate
internal financial controls over financial reporting which have been operating effectively.

39 Additional Regulatory Information

(i) Details of benami property held

The Company does not have any Benami property and no proceedings have been initiated on or are pending
against the Company for holding any benami property under the Benami Property Transactions Act, 1988 (as
amended in 2016) and Rules made thereunder.

(ii) Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the
statutory period.

(iii) Wilful Defaulter

The Company has not been declared wilful defaulter by any bank or financial institution or government or any
government authority.

(iv) Relationship with struck off companies

The Company does not have any transaction with struck off companies under section 248 of the Companies Act,
2013 or section 560 of the Companies Act, 1956 during the current year or previous year.

(v) Compliance with approved scheme(s) of arrangements

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

(vi) Undisclosed income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments
under Income Tax Act, 1961, that has not been recorded in the books of accounts.

(vii) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or any virtual currency during the current or previous
year.

(viii) Valuation of property, plant and equipment, intangible asset and investment property

The Company has not revalued its property, plant and equipment or its intangible assets during the current or
previous year. The Company did not have any investment property during the current or previous year.

(ix) Utilisation of borrowings availed from banks and financial institutions

The company did not have any loans or other borrowings from any lender during the year, therefore, this clause
is not applicable to the Company.

(x) Compliance with number of layers of companies

The Company has not invested in any subsidary companies, therefore, this clause is not applicable to the
Company.

39 Additional Regulatory Information (Contd.)

(xi) Utilisation of borrowed funds and securities premium

The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any
other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities ("Intermediaries")
with the understanding (whether recorded in writing or otherwise) that the Intermediary shall:

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

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

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

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

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

(xii) Loans or advances to specified persons

The Company has not granted any loans or advances to the promoters, Directors, KMPs and related parties
during the year.

(xiii) Working capital facilities

The Company has been sanctioned working capital limits in excess of Rs.500 from banks/financial institutions
on the basis of security of current assets The returns/ statements filed by the Company with such banks/
financial institutions when requested by the bank, are in agreement with the unaudited books of account of the
Company for the respective quarters.

40 Dividends

The Company paid dividend of Rs.25.00 per equity share during the year ended March 31,2026 towards final dividend
for the year ended March 31, 2025. The Company has paid dividend of Rs.55.00 per equity share during the year
ended March 31,2026 towards interim dividend for the year ended March 31,2026.

Dividend declared by the Company are based on profits available for distribution. On May 29, 2026, the Board of
Directors of the Company have proposed a final dividend of Rs.20 per equity share for the year ended March 31,2026
which is subject to the approval of shareholders at the Annual General Meeting, and if approved, would result in an
outflow of approximately Rs. 6,313.60.