The centre of a square is the point of intersection of its diagonals. This centre is also the centre of the hole in the figure.
Step 1. Using a ruler, draw a line AB equal to 5 cm, say. Using a protractor, draw perpendicular lines at A and B. Using a ruler, mark point P on the perpendicular line at A such that AP = 5 cm. Using a ruler, mark point Q on the perpendicular line at B such that BQ = 5 cm. Join P and Q using a ruler. Erase the lines above P and Q (Fig. 1).

Step 2. Draw diagonals AQ and BP using a ruler. Let the diagonals intersect at C. This point is the centre of the square ABQP. Erase the diagonals AQ and BP. (Fig. 2).

Step 3. With centre at C and a radius of 1.5 cm, say, draw a circle using a compass. (Fig. 3)

Step 4. Fig. 3 is the required “Square with a Hole”.