2.2.16 Provisions, contingent assets and contingent
liabilities
Provisions

Provisions are recognised when the Company has
a present obligation (legal or constructive) as a
result of a 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.

i) Right-of-use assets

The Company recognises right-of-use assets at
the commencement date of the lease (i.e., the
date the underlying asset is available for use).
Right-of-use assets are measured at cost, less
any accumulated depreciation and impairment
losses, and adjusted for any re-measurement
of lease liabilities. The cost of right-of-use
assets includes the amount of lease liabilities
recognised, initial direct costs incurred,
and lease payments made at or before the
commencement date less any lease incentives
received. Right-of-use assets are depreciated
on a straight-line basis over the shorter of the
lease term and the estimated useful lives of
the assets.

If ownership of the leased asset transfers to the
Company at the end of the lease term or the
cost reflects the exercise of a purchase option,
depreciation is calculated using the estimated
useful life of the asset.

The right-of-use assets are also subject to
impairment.

ii) Lease liabilities

At the commencement date of the lease, the
Company recognises lease liabilities measured
at the present value of lease payments to
be made over the lease term. The lease
payments include fixed payments (including
in substance fixed payments) less any lease
incentives receivable, variable lease payments
that depend on an index or a rate, and
amounts expected to be paid under residual
value guarantees.

In calculating the present value of lease
payments, the Company uses its incremental
borrowing rate at the lease commencement
date because the interest rate implicit in the
lease is not readily determinable. After the
commencement date, the amount of lease
liabilities is increased to reflect the accretion
of interest and reduced for the lease payments
made. In addition, the carrying amount of
lease liabilities is re-measured if there is a
modification, a change in the lease term, a
change in the lease payments (e.g., changes
to future payments resulting from a change in
an index or rate used to determine such lease
payments) or a change in the assessment of an
option to purchase the underlying asset.

The Company's lease liabilities are included in
financial liabilities.

iii) Short term lease and leases of low value
assets

The Company applies the short-term lease
recognition exemption to its short-term
leases contracts including lease of residential
premises and offices (i.e., those leases that
have a lease term of 12 months or less from
the commencement date and do not contain
a purchase option). It also applies the lease
of low-value assets recognition exemption to
leases of office equipment that are considered
to be low value. Lease payments on short¬
term leases and leases of low-value assets are
recognised as expense on a straight-line basis
over the lease term.

b) Company as a lessor

Leases in which the Company does not transfer
substantially all the risks and rewards incidental
to ownership of an asset are classified as
operating leases. Rental income arising is
accounted for on a straight-line basis over
the lease terms and is included in revenue
in the statement of profit or loss due to its
operating nature. Initial direct costs incurred in
negotiating and arranging an operating lease
are added to the carrying amount of the leased
asset and recognised over the lease term on
the same basis as rental income.

2.2.18 Financial instruments

The Company recognises financial assets and
financial liabilities when it becomes a party to the
contractual provisions of the instrument.

a) Financial assets

Initial recognition and measurement
All financial assets (excluding trade receivables
which do not contain a significant financing
component, being measured at transaction
price) are recognised initially at fair value plus
transaction costs that are directly attributable
to the acquisition of financial asset. Transaction
costs directly attributable to the acquisition of
financial assets carried at fair value through
profit or loss (FVTPL) are expensed in statement
of profit and loss.

Subsequent measurement

For purposes of subsequent measurement,

financial assets are classified in below

categories based on the Company's business

model and the cash flow characteristics of the

asset:

• Financial assets at amortised cost

After initial measurement, the financial assets

that are held for collection of contractual
cash flows where those cash flow represent
solely payments of principal and interest
(SPPI) on the principal amount outstanding
are measured at amortised cost using
the effective interest rate (EIR) method.
Interest income from these financial assets is
included in other income.

• Financial assets at fair value through other
comprehensive income (FVTOCI):

A financial asset is subsequently measured
at fair value through other comprehensive
income if it is held within a business model
whose objective is achieved by both
collecting contractual cashflows and selling
financial assets and the contractual terms
of the financial asset give rise on specified
dates to cashflows that are solely payments
of principal and interest on the principal
amount outstanding.

• Financial assets at fair value through profit
or loss (FVTPL):

Assets that do not meet the criteria for
amortised cost or FVTOCI are measured
at fair value through profit or loss (FVTPL).
Debt instruments included within the FVTPL
category are measured at fair value with
all changes recognised in the statement of
profit and loss.

Impairment of financial assets

The Company applies the expected credit loss
(ECL) model for recognising impairment loss on
financial assets measured at amortised cost or
financial assets measured at FVTOCI.

The Company follows 'simplified approach' for
recognition of impairment loss allowance on:

• Trade receivables or contract revenue
receivables; and

• All lease receivables resulting from
transactions within the scope of Ind AS 116

Under simplified approach, impairment loss
allowance is recognised based on lifetime ECLs
at each reporting date.

For recognition of impairment loss on other
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.

Lifetime ECL are the expected credit losses
resulting from all possible default events over

the expected life of a financial asset. The
12-month ECL is a portion of the lifetime ECL
which results from default events that are
possible within 12 months after the reporting
date.

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

The balance sheet presentation of impairment
for various financial instruments is described
below:

• Financial assets measured as at amortised
cost, contractual revenue receivables and
lease receivables: ECL is presented as
an allowance. The impairment 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.

• Loan commitments and financial guarantee
contracts: ECL is presented as a provision in
the balance sheet i.e., as a liability.

• Debt instruments measured at FVTOCI:
For debt instruments measured at FVTOCI,
the expected credit losses do not reduce
the carrying amount in the balance sheet,
which remains at fair value. Instead,
an amount equal to the allowance is
recognised in other comprehensive income
as the 'accumulated impairment amount'.

Derecognition of financial assets
The Company derecognises a financial asset
when the contractual rights to the cash flows
from the financial asset expire or it transfers
the financial asset and the transfer qualifies for
derecognition under Ind AS 109.

The difference between the carrying amount
and the amount of consideration received /
receivable is recognised in the statement of
profit and loss.

b) Financial liabilities

Initial recognition and measurement
All financial liabilities are recognised initially
at fair value and, in the case of borrowings
and payables, net of directly attributable
transaction costs.

The Company's financial liabilities includes
trade payables, borrowings and other financial
liabilities etc.

Subsequent measurement

The measurement of financial liabilities depends

on their classification, as described below:

• Financial liabilities at fair value through
profit or loss.

The company has not designated any
financial liabilities at FVTPL.

• Financial liabilities at amortised cost
Borrowings, trade payables and other
financial liabilities

After initial recognition, borrowings, trade
payables and other financial liabilities are
subsequently measured at amortised cost
using the EIR method. Amortised 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 amortisation is included as finance
costs in the statement of profit and loss.

Derecognition of financial liabilities

A financial liability (or a part of a financial
liability) is derecognised from the Company's
Balance Sheet when the obligation specified
in the contract is discharged or cancelled
or expires. The difference in the respective
carrying amounts is recognised in the
statement of profit and loss.

c) Financial guarantee contracts

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

d) Offsetting of financial instruments

Financial assets and financial liabilities are
offset, and the net amount is reported in the
balance sheet if there is a currently enforceable
contractual legal right to offset the recognised
amounts and there is an intention to settle on
a net basis, to realise the assets and settle the
liabilities simultaneously.

2.2.19 Fair value measurement

The Company measures financial instruments at fair
value at each reporting period.

The fair value of an asset or a liability is measured
using the assumptions that market participants
would use when pricing the asset or liability,
assuming that market participants act in their
economic best interest.

All assets and liabilities for which fair value is
measured or disclosed in the financial statements
are categorised within the fair value hierarchy
and are disclosed accordingly in the financial
statements.

External valuers are involved for valuation of
significant assets and liabilities, if any. At each
reporting date, the Company analyses the
movements in the values of assets and liabilities
which are required to be remeasured or re-assessed
as per the Company's accounting policies.

2.2.20 Earnings per Share

In determining basic earnings per share, the
company considers the net profit attributable to
equity shareholders. The number of shares used in
computing basic earnings per share is the weighted
average number of shares outstanding during the
period.

In determining diluted earnings per share, the
net profit attributable to equity shareholders and
weighted average number of shares outstanding
during the period are adjusted for the effect of all
dilutive potential equity shares. The Company does
not have any dilutive potential equity shares.

2.2.21 Non - current asset held for sale
Non-current assets (or disposal groups) are
classified as assets held for sale when their carrying
amount is to be recovered principally through a
sale transaction and a sale is considered highly
probable. The sale is considered highly probable
only when the asset or disposal group is available
for immediate sale in its present condition, it is
unlikely that the sale will be withdrawn, and sale
is expected within one year from the date of the
classification. Disposal groups classified as held
for sale are stated at the lower of carrying amount
and fair value less costs to sell. Property, plant and
equipment, investment property and intangible
assets are not depreciated or amortised once
classified as held for sale. Assets classified as held
for sale/distribution are presented separately in the
balance sheet.

If the criteria stated by IND AS 105 "Non-current
Assets Held for Sale" are no longer met, the

disposal group ceases to be classified as held for
sale. Non-current asset that ceases to be classified
as held for sale are measured at the lower of (i) its
carrying amount before the asset was classified as
held for sale, adjusted for depreciation that would
have been recognised had that asset not been
classified as held for sale, and (ii) its recoverable
amount at the date when the disposal group ceases
to be classified as held for sale. The depreciation
reversal adjustment related property, plant and
equipment, investment property and intangible
assets is charged to statement of profit and loss in
the period when non-current assets held for sale
criteria are no longer met.

2.2.22 Prior Period Adjustment

Errors/omissions discovered in the current year
relating to prior periods are treated as immaterial
and adjusted during the current year, if all such
errors and omissions in aggregate does not exceed
0.50% of total operating revenue as per last audited
financial statement of the Company.

2.2.23 Significant accounting estimates and judgments

The preparation of Standalone Financial Statements
requires the management to make judgements,
accounting estimates and assumptions that affect
the reported amounts of revenues, expenses,
assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent
liabilities. Uncertainty about these assumptions
and estimates could result in outcomes that require
a material adjustment to the carrying amount of
assets or liabilities affected in future periods.

This policy provides an overview of the areas
that involved a higher degree of judgement or
complexity, and of items which are more likely
to be materially adjusted due to estimates and
assumptions turning out to be different than those
originally assessed.

Significant areas of estimation and judgements as
stated in the respective accounting policies that
have the most significant effect on the financial
statements are as follows:

Allowances for uncollected trade receivables
Trade receivables do not carry interest and are
stated at their nominal values as reduced by
appropriate allowances for estimated irrecoverable
amount are based on ageing of the receivables
balances and historical experiences. Individual
trade receivables are written off when management
deems not be collectible.

Defined benefit plans

The costs of post-retirement benefit obligation are
determined using actuarial valuations. An actuarial

valuation involves making various assumptions that
may differ from actual developments in the future.
These include the determination of the discount
rate, future salary increases, mortality rates and
future pension increases. Due to the complexities
involved in the valuation and its long-term nature,
a defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are
reviewed at each reporting date.

Contingencies

In the normal course of business, contingent
liabilities may arise from litigation and other claims
against the Company. There are certain obligations
which managements have concluded based on all
available facts and circumstances are not probable
of payment or difficult to quantify reliably and such
obligations are treated as contingent liabilities and
disclosed in notes.

Impairment of financial assets
The impairment provision for financial assets is
based on assumptions about risk of default and
expected loss rates. The company uses judgement
in making these assumptions and selecting the
inputs to the impairment calculation, based on the
Company's past history, existing market conditions
as well as forward looking estimates at the end of
each reporting period.

Taxes

Uncertainties exist with respect to the interpretation
of complex tax regulations, changes in tax laws, and
the amount and timing of future taxable income.
Given the nature of business differences arising
between the actual results and the assumptions
made, or future changes to such assumptions,
could necessitate future adjustments to tax income
and expense already recorded. The Company
establishes provisions, based on reasonable
estimates. The amount of such provisions is based
on various factors, such as experience of previous
tax audits and differing interpretations of tax
regulations by the taxable entity and the responsible
tax authority. Such differences of interpretation
may arise on a wide variety of issues depending on
the conditions prevailing in the respective domicile
of the companies.

Deferred tax assets are recognised for unused tax
losses to the extent that it is probable that taxable
profit will be available against which the losses can
be utilised. Significant management judgement is
required to determine the amount of deferred tax
assets that can be recognised, based upon the
likely timing and the level of future taxable profits
together with future tax planning strategies.

Impairment of non-financial assets

The entity assesses at each reporting date
whether there is an indication that an asset may
be impaired. Determining the recoverable amount
of the assets is judgmental and involves the use
of significant estimates and assumptions. The
estimates are based upon assumptions believed to
be reasonable, but which are inherently uncertain
and unpredictable and do not reflect unanticipated
events and circumstances that may occur.
Non-current asset held for sale
Non-current assets (or disposal groups) are
classified as assets held for sale when their carrying
amount is to be recovered principally through a
sale transaction and a sale is considered highly
probable. The sale is considered highly probable
only when the asset or disposal group is available
for immediate sale in its present condition, it is
unlikely that the sale will be withdrawn, and sale
is expected within one year from the date of the
classification.

Leases - Estimating the incremental borrowing
rate

The Company cannot readily determine the
interest rate implicit in the lease, therefore, it uses
its incremental borrowing rate (IBR) to measure
lease liabilities. The IBR is the rate of interest that
the Company would have to pay to borrow over a
similar term, and with a similar security, the funds
necessary to obtain an asset of a similar value
to the right-of-use asset in a similar economic
environment.

Determining the lease term of contracts with
renewal and termination options - Company as
lessee

The Company determines the lease term as the
non-cancellable term of the lease, together with
any periods covered by an option to extend the
lease if it is reasonably certain to be exercised, or
any periods covered by an option to terminate the
lease, if it is reasonably certain not to be exercised.
The Company applies judgement in evaluating
whether it is reasonably certain whether or not
to exercise the option to renew or terminate the
lease. After the commencement date, the Company
reassesses the lease term if there is a significant
event or change in circumstances that is within
its control and affects its ability to exercise or not
to exercise the option to renew or to terminate
(e.g., construction of significant leasehold
improvements or significant customisation to the
leased asset).

Revenue recognition

The Company's revenue recognition policy is
central to how the Company values the work it has
carried out in each financial year.

These policies require forecasts to be made of the
outcomes of Contracts, which require, assessments
and judgements to be made on changes in scope of
work and claims and variations.

There are several long term and complex projects
where the Company has incorporated significant
judgements over contractual entitlements. The
range of potential outcomes could result in a

materially positive or negative change to underlying
profitability and cash flow.

Estimates are also required with respect to the
below mentioned aspects of the contract:

• Determination of stage of completion

• Estimation of project completion date

• Provisions for foreseeable losses

• Estimated total revenues and estimated total
costs to completion, including claims and
variations.

These are reviewed at each reporting date and
adjust to reflect the current best estimates.

Note:

(i) These valuations are based on valuations performed by a registered valuer as defined under rule 2 of Companies
(Registered Valuers and Valuation) Rules, 2017 applying valuation model acceptable internationally. Fair Values are
based on income/cost/market value approach.

(ii) The fair value measurement is categorised in Level 3 of fair value hierarchy.

(iii) The investment property in Noida comprises three locations, having lease term of 90 years. Additionally, the
properties in Gurugram and Bangalore are located at single location and are freehold.

(iv) Other provisions amounting to ?0.57 crore has been created towards capital work in progress in FY 2023-24 for
the Sector 125, Noida property due to pending resolution of the dispute with the Noida Authority.

Note:

(i) (a) The Company vide board approval dated 12th August, 2021 has waived interest on its loan given to IRCON
PB Tollway Limited for the period 1st October, 2019 till 31st March, 2024 and deferment of balance interest
till repayment of principal. The said waiver has been considered as Investment in subsidiary by the Company
in accordance with provision of Ind AS. Accordingly ^62.60 crore (31st March, 2024: ?60.75 crore) has been
included in above.

(b) Includes fair value of the financial guarantee of ?0.19 crore (31st March, 2024 ?0.19 crore) issued by Ircon to State
Bank of India on behalf of and in respect of term loan facility availed by Ircon Shivpuri Guna Tollway Limited
(ISGTL).

(c) BoD has approved the Equity participation (committed), not exceeding ?10.00 crore in Wholly Owned Subsidiary,
Ircon Vadodara Kim Expressway limited (IVKEL) Further, BoD has approved interest free loan not exceeding
?195.74 crore for IVKEL which has been paid. Further, this includes fair value of the financial guarantee of ?0.24
crore issued by IRCON to Bank of Baroda on behalf of and in respect of term loan facility availed by IVKEL.

(d) Includes fair value of the financial guarantee of ?0.83 crore (as on 31st March, 2024 ?0.83 crore) issued by IRCON
to Punjab National Bank on behalf of and in respect of term loan facility availed by Ircon Davangere Haveri
Highway Limited ( IDHHL), Wholly Owned Subsidiary. Further, BoD has approved interest free loan not exceeding
?13.86 crore for IDHHL which has been paid.

(e) BoD has approved the Equity participation (committed), not exceeding ?5 Lakh in Wholly Owned Subsidiary, Ircon
Gurgaon Rewari Highway Limited(IGRHL). Further, BoD has approved interest free loan not exceeding ?103.18 crore
for IGRHL out of which ^88.35 crore (31st March, 2024: 88.35 crore) has been paid. Additionally, this includes fair
value of the financial guarantee of ?0.18 crore issued by IRCON to Indian Overseas Bank on behalf of and in respect
of term loan facility availed by IGRHL.

(f) BoD has approved the Equity participation (committed), not exceeding ?17.16 crore, out of which 4.34 crore has been
paid to Ircon Akloli-Shirsad Expressway Limited (IASEL). Further, BoD has approved interest free loan not exceeding
?171.54 crore for IASEL out of which ?104.98 crore (31st March, 2024 ?51.54 crore) has been paid. Additionally, this
includes fair value of the financial guarantee of ?0.19 crore issued by IRCON to Bank of Baroda on behalf of and in
respect of term loan facility availed by IASEL.

(g) BoD has approved the Equity participation (committed), not exceeding ?14.27 crore, out of which 11.11 crore has
been paid to Ircon Ludhiana Rupnagar Highway Limited (ILRHL). Further, BoD has approved interest free loan
not exceeding ?128.43 crore for ILRHL out of which ?99.97 crore (31st March, 2024 ?54.42 crore) has been paid.
Additionally, this includes fair value of the financial guarantee of ?0.19 crore issued by IRCON to Bank of Baroda on
behalf of and in respect of term loan facility availed by ILRHL.

(h) BoD has approved the Equity participation (committed), not exceeding ?20.58 crore, out of which 10.60 crore has
been paid Ircon Bhoj Morbe Expressway Limited (IBMEL). Further, BoD has approved interest free loan not exceeding
?185.27 crore for IBMEL out of which ?81.42 crore (31st March, 2024 ?51.42 crore) has been paid. Additionally, this
includes fair value of the financial guarantee of ?0.14 crore issued by IRCON to Bank of Baroda on behalf of and in
respect of term loan facility availed by IBMEL.

(i) BoD has approved the Equity participation (committed), not exceeding ?5 lakh for WOS, Ircon Haridwar Byepass
Limited (IHBL). Further, BoD has approved interest free loan not exceeding ?111.85 crore for IHBL out of which
?82.37 crore (31st March, 2024 ?82.37 crore) has been paid. Additionally, this includes fair value of the financial
guarantee of ?0.24 crore issued by IRCON to State Bank of India on behalf of and in respect of term loan facility
availed by IHBL.

(j) BoD has approved the Equity participation (committed), not exceeding ?3.80 crore in Ircon

Renewal Power Limited (IRPL). Further, BoD has approved interest free loan not exceeding
?108.03 crore in IRPL, out of which ?108.03 crore (31st March, 2024: ?88.24 crore) has been paid.
Additionally, BoD has approved the interest-bearing Optionally Convertible Debentures (OCDs) of ?88.89 crore, out
of which ?66.00 crore (31st March,2024 : Nil) has been paid.

(ii) (a) Includes fair value of the financial guarantee for ?0.28 crore issued by IRCON to Punjab National Bank on behalf of
and in respect of term loan facility availed by ISTPL. Loan outstanding as on 31st March, 2025 is Nil (as on 31st March,
2024 Nil).

(b) "Ministry of Railways" (MoR) vide its letter No. 2011/LMB/22/1/39 dated 18.10.2021 had communicated

'in-principle' approval for the closure of Indian Railway Station Development Corporation

Limited (IRSDC), a Joint Venture Company and transfer/handover of its business to RLDA/MoR.
During the financial year 2024-25, with the consent of all joint venture partners i.e. IRCON, RITES & RLDA, it has
been decided to transfer the assets and liabilities of IRDSC (except investments in SITCO and GARUD/Station
Facility Management (SFM)) to RLDA on a slump sale basis at book value as on 31.12.2024 (i.e. approx. ?39.89
crores based on detailed working /- 5%). Subsequently, the Business Transfer Agreement was signed on 09
April 2025, and the consideration was received by IRSDC from RLDA on 11 April 2025 of ?39.89 crores. Further,
consideration against SITCO has also been received from RLDA against their share of ?6.30 crore in FY 2023-24.
As at the balance sheet date i.e. 31 March 2025, closure related activities initiated in FY 2021-22 are yet to be
completed and the Liquidation process shall commence upon completion of these activities and handing over
of assets and liabilities to RLDA/MoR. Financial statement of IRSDC has been prepared on liquidation basis and
the distribution of the slump sale proceeds and settlement of liabilities will be done after appointment of the
liquidator and completion of the liquidation process under voluntary winding up. The Group continues to monitor
the developments closely and does not foresee any impairment in the value of investment as at the reporting date
as the Group's share in the reported net worth of IRSDC is ?61.76 crore i.e. 26% of ?237.52 crore.

(c) Ministry of Railway (MoR) has granted in-principle approval for closure of Bastar Railway Private Limited, a joint
venture company and transfer of its assets and liabilities to MoR. The legal formalities, pricing and related modalities
are in process and the Company does not foresee any impairment in the value of investment at this stage.

(d) Board of Directors have approved Interest free loan of ?114.11 crore in favour of Jharkhand Central Railway Limited
(JCRL), out of which ?114.11 crore (31st March, 2024: ?114.11 crore) has been paid.

(e) Board of Directors have approved Interest free loan, of ?84.50 crores (31st March, 2024 ?84.50 crore) in favour of
Mahanadi Coal Railway Limited (MCRL) which has been paid. Further, It has been decided to handover Phase- I
(Angul - Balram, 14 KM already operational) and Phase- II (Balram-Putgadia-Tentuloi,54 KM under construction)of
MCRL Project to Ministry of Railways (MoR). The legal formalities, pricing and related modalities are in process and
the Company does not foresee any impairment in the value of investment at this stage.

(f) BoD has approved interest free loan of ?64.27 crore in favour of Chhattisgarh East Railway Limited (CERL), out of
which ^46.20 crore (31st March, 2024 30.60 crore) has been paid.

(g) BoD has approved interest free loan of ?193.36 crore in favour of Chhattisgarh East-West Railway Limited (CEWRL),
out of which ?64.48 crore (?16.12 crore) has been paid.

(iii) The Interest free loan as per above will be repaid only on winding up of the SPVs/JV or end of concession period
which ever is later.

(d) Terms / Rights attached to Equity Shares :

(i) Voting

The Company has only one class of equity shares having a par value of ?2 per share. Each holder of equity share is
entitled to one vote per share.

(ii) Liquidation

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets
of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number
of equity shares held by the shareholders

(iii) Dividend

The dividend proposed by the Board of Directors is subject to the approval of the shareholders in ensuing Annual
General Meeting

19.2 Other Provisions :

Disclosures as per Ind AS 37 regarding nature of provisions and movements in provisions are as follows :

a) Demobilisation Provisions

The Company has made provision for demobilisation to meet the expenditure towards demobilisation of manpower
and plant & equipment in respect of foreign projects.

b) Maintenance Provisions

- In Cost Plus contract, no provision for maintenance is required to be made where cost is reimbursable.

- Item Rate and Lump Sum turnkey contracts, provision is made for maintenance to cover company's liability
during defect liability period keeping into consideration the contractual obligations, obligations of the sub¬
contractor, operating turnover and other relevant factors

c) Onerous Contracts

The Company has a contract where total contract cost exceeds the total contract revenue. In such situation as
per Ind AS 115 and Ind AS 37 the Company has to provide for these losses. The provision is based on the estimate
made by the management.

d) Legal Cases

Provision for legal cases represents liabilities that are expected to materialise in respect of matters in courts,
arbitrations and appeal.

e) Provisions for Other Expenses

Provision for other expenses represents expected liabilities in respect of indirect taxes and Others

The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts and
other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these
instruments.

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

i) The fair value of investments in mutual fund units is based on the Net Asset Value ('NAV') as stated by the issuers of
these mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which
the issuer will issue further units of mutual fund and the price at which issuers will redeem such units from the
investors

ii) Investment in subsidiaries and joint ventures are classified as equity investments have been accounted at historical
cost. since these are scope out of Ind AS 109 for the purposes of measurement, the same have not been disclosed
in the tables above.

* During the financial year 2024-25 and 2023-24, there were no transfer between Level 1, Level 2 and Level 3 fair value
measurements.

31 B. Financial Risk Management

The Company's principal financial liabilities comprise borrowings, trade, lease liability and other payables. The
Company's principal financial assets include loans to related parties, trade and other receivables, and cash and
4 short-term deposits that derive directly from its operations. The Company also holds investment in mutual funds,
tax free bonds and Government securities. The Company's activities expose it to some of the financial risks:

a) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of
changes in market prices. Market risk comprises Foreign currency risk and Interest rate risk. Financial instruments
affected by market risk includes borrowings, trade receivables, trade payable and other non derivative financial
instruments.

(i) Foreign Currency Risk

The Company operates internationally and is exposed to insignificant foreign currency risk (since receipts
& payments in foreign currency are generally matched) arising from foreign currency transactions, primarily
with respect to the USD, EURO, BDT, DZD, LKR, JPY, MMK and ZAR. Significant foreign currency risk of group
are naturally hedged.

As of March 31, 2025 and March 31, 2024, every 5% increase or decrease of the respective foreign currency
would impact our profit before tax by approximately ?28.96 crore and ?2.45 crore respectively.

The Company's significant exposure to foreign currency risk at the end of reporting period are as follows:

Interest rate risk is the risk that the fair value of future cash flows of a financial instruments will fluctuate because of
change in market interest rate. The company manages its interest risk in accordance with the companies policies
and risk objective. Financial instruments affected by interest rate risk includes tax free bonds, Govt. Securities
and deposits with banks. Interest rate risk on these financial instruments are very low as interest rate is fixed for
the period of financial instruments. Also, the Company does not have any interest risk on loans / borrowings as it
bears fixed rate of interest.

b) Credit Risk

The Company's customer profile include Ministry of Railways, Public Sector Enterprises, State Owned Companies
in India and abroad. Accordingly, the Company's customer credit risk is low. The Company's average project
execution cycle is around 24 to 36 months. General payment terms include mobilisation advance, monthly
progress payments with a credit period ranging from 45 to 60 days and certain retention money to be released at
the end of the project. In some cases retentions are substituted with bank / corporate guarantees. The Company
has a detailed review mechanism of overdue customer receivables at various levels within organisation to ensure
proper attention and focus for realisation.

The Company is exposed to credit risk for guarantees given. The Company's maximum exposure in this respect
is the maximum amount the Company may have to pay if the guarantee is called on (see Note 37). Based on
expectations at the end of the reporting period, the Company considers that it is more likely that such an amount
will not be payable under the arrangement.

Trade and other receivable

The Company's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The
demographics of the customer, including the default risk of the industry and country in which the customer operates,
also has an influence on credit risk assessment.

c) Liquidity risk

The Company manages liquidity risk by maintaining sufficient cash and marketable securities and by having access
to funding through an adequate amount of committed credit lines. The treasury department regularly monitors the
position of Cash and Cash Equivalents vis-a-vis projections. Assessment of maturity profiles of financial assets and
financial liabilities and maintenance of Balance Sheet liquidity ratios are considered while reviewing the liquidity
position.

The Company's investment policy and strategy are focused on preservation of capital and supporting the
Company's liquidity requirements. The senior Management of the Company oversees its investment strategy and
achieve its investment objectives. The Company typically invests in government of India debt bonds and mutual
funds. The policy requires investments generally to be investment grade, with the primary objective of minimising
the potential risk of principal loss.

The NHAI bonds bear a fixed rate of interest thus they are not affected by the change in bond yield rates and the
mutual funds are highly liquid assets which are paid out monthly and re-invested.

The table below provides details regarding the significant financial liabilities as at 31st March, 2025 and 31st March,
2024

d) Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities
in the same geographical region, or have economic features that would cause their ability to meet contractual
obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate
the relative sensitivity of the Company's performance to developments affecting a particular industry.

In order to avoid excessive concentrations of risk, the Company's policies and procedures include specific
guidelines to focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are
controlled and managed accordingly.

The BoD has recommended a final Dividend of ?1 per equity share on face value of ?2/- for the financial year 2024-25,
subject to the approval of the shareholders at the AGM. This is in addition to Interim Dividend paid @ 1.65 per equity
share on face value of ?2/-.

Further, the Company manages its capital structure to make adjustments in light of changes in economic conditions
and the requirements of the financial covenants.

32. Employee Benefits

Disclosures in compliance with Ind AS 19 "Employee Benefits" are as under:

(a) Defined Contribution Plans - General Description

(i) Pension

The Company has implemented IRCON Defined Contribution Superannuation Pension Scheme, 2009 i.e. April 01, 2009,
for all regular employees drawing pay in IDA scale irrespective of their length of service except for those employees
who joined before January 01, 2017 but would superannuate/resign after January 01, 2017, before completing 15 years
of service, in such case Employer contribution towards pension would be effective from January 01, 2017 only. The
scheme was managed by a Separate Trust formed in the year 2015-16 for this purpose and approved by the Income
Tax Authorities.

In FY 2023-24, the Board of Directors in its 286^th meeting held on 11th May, 2023 has approved for shifting of IRCON
Defined Contribution Superannuation Pension Scheme, 2009 maintained with LIC to National Pension System (NPS).

Company's share of contribution to NPS during the FY 2024-25 amounts to ?9.44 crore (?4.72 crore to NPS & ?4.63
crore to Pension Trust) .

(ii) Post Retirement Medical Benefit (PRMB)

The Company had established an irrevocable trust by initial one-time contribution of ?12.00 crore during the year
2000-01 for providing annuity, medical and other benefits to the spouse of employees who die in harness as a voluntary
welfare measure for which the Company is not liable for providing such benefit to its employees. Further, the Company
provides medical benefits to its employees (and spouse) who superannuate from the Company. The Company has
contributed ?5.02 crore (?5.17 crore) based on DPE guidelines on Superannuation Benefits.

(b) Defined Benefit Plans - General Description

(i) Provident fund

The Company pays fixed contribution of Provident Fund at a pre-determined rate to a separate trust ( IRCON
Contributory Provident Fund Trust), which invests the funds in permitted securities. The trust is required to pay
a minimum rate of interest on contribution to the members of the trust. The trust is approved by the Income Tax
Authorities. The Company has an obligation to make good the shortfall, if any, between the return form the investment
of the trust and the interest payment based on the notified interest rate.

During the period, the Company has contributed ?19.86 crore (?15.78 crore) to the trust towards employer's contribution
for provident fund which includes ?6.58 Cr. towards reimbursement on account of loss on investment.

(ii) Gratuity

The Company has implemented IRCON Employees Group Gratuity Scheme to provide financial assistance to the
employees of the Company as a social security measure on the termination of their employment due to superannuation,
retirement, resignation, physical incapacitation or death. The scheme is managed by a separate trust formed in the
year 2015-16 for this purpose and approved by the Income Tax Authorities. Funds of the Trust are managed by LIC of
India. As at March 31, 2025 a liability of ?4.64 crore (?3.81 crore) has been provided in the books of accounts based on
the actuarial valuation.

(iii) Other Retirement Benefits - General Description

Other retirement benefits include settlement at home-town or to the place where he/she or his/her family intends
to settle in India including Baggage Allowance. The liability on this account is recognized on the basis of actuarial
valuation.

The summarised position of various employee benefits recognised in the statement of profit and loss and balance
sheet as on March 31, 2025 is as under:

1. Shri Brijesh Kumar Gupta (DIN: 10092756), has relinquished the additional charge of the post of Chairman &
Managing Director (CMD) w.e.f. April 29, 2024 hence he ceased to be CMD and CEO of the Company.

2. Shri Ashish Bansal, IRSE, PED/Tr. (M&MC), Railway Board [DIN:10328174] has relinquished the additional charge of
post of Chairman & Managing Director (CMD) with effect from July 01, 2024 hence he ceased to be CMD and CEO
of the Company.

3. Shri Hari Mohan Gupta [DIN:08453476] has assumed the charge of Chairman & Managing Director on the Board of
the Company with effect from July 01, 2024, till the date of superannuation, i.e. 30.06.2026 or until further orders,
whichever is earlier.

4. Shri Naresh Chandra Karmali (DIN: 09103211), IRSE, PED/GS, Railway Board, was entrusted with additional

charge of Director (Works), IRCON,w.e.f. 09.05.2025 (AN) until further orders of the Ministry of Railways.
Shri Naresh Chandra Karmali has relinquished the additional charge of post of Director (Works), IRCON (additional
charge) w.e.f. 15.05.2025 (FN), hence he is ceased to be Director (Works) of the company.

5. Shri Ajit Kumar Mishra (DIN:11108237) has been appointed as Director (Works) w.e.f. 15.05.2025 (AN), for a period
of 5 years or until further orders of the Ministry of Railways, whichever is earlier.

36. Impairment of Assets

During the year, Company has carried out assessment on impairment of individual assets by working out the recover¬
able amount based on lower of the net realizable value and carrying cost in terms of Ind AS 36, "Impairment of Assets"
notified under section 133 of the companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards)
Rules, 2015 and Companies (Indian accounting standards) Amendment Rules 2016. Accordingly, impairment loss of Nil
(Nil) has been provided for.

37. Provisions, Contingencies and Commitments

(i) Provisions

The nature of provisions provided and movement in provisions during the year as per Ind AS 37 'Provisions,
Contingent Liabilities and Contingent Assets' are disclosed in Note 19.

(ii) Contingent Liabilities

Disclosure of Contingent Liabilities as per Ind AS 37 'Provisions, Contingent Liabilities and Contingent Assets'
are as under:

Foot Note:

1 The Income Tax Authority have raised demands on account of various disallowances pertaining to different
assessment years. Many of these matters were adjudicated in favour of Company but are disputed before higher
authorities by the concerned departments. The Company is contesting these demands, which are pending at
various appellate levels. Based on the advice from the independent tax experts and the developments on the
appeals, the management is confident that additional tax so demanded will not be sustained on completion of the
appellate proceedings and accordingly, pending the decision by the appellate authorities, no provision has been
made in these financial statements.

2 There are various disputes pending with authorities of excise, customs, service tax, sales tax, VAT etc. The Company
is contesting these demands raised by concerned authorities and are pending at various appellate authorities.

j Based on the grounds of appeal and advice of the independent legel experts, the management believes that

there is reasonable strong likelihood of succeeding before the various authorities. Pending the final decisions on
the above, no adjustment has been made in these financial statements. The above disputed indirect tax demands
includes ?144.85 Crore which is reimbursable from clients.

3 In case of International Metro Civil Contractor, a Joint Operation of the Company, there is disputed demand
pending with the sales tax authorities amounting to ?3.07 Crore (?3.07 crore) on account of disallowance of labour
expenses. The joint operation had filed appeals before the appropriate appellate authorities against the demand.
The decision is pending before the appellate authorities and therefore, no provision has been made in the financial
statements.

4 The Company is a party to several legal suits on construction contract terms related disputes, pending before
various courts and arbitration proceedings in India and aboard. Some of the contractors have lodged claims
on the company seeking enhancement of the contract price, revision of work schedule with price escalation,
compensation for the extended period of work, idle charges etc. These claims are being contested by the company
as being not admissible in terms of provisions of the respected contracts. Against a total claim of ?592.33 crore
(?613.53 crore), provision of ^64.30 crore (?60.99 crore) has been made and balance ^528.02 crore (?552.54
crore) is shown as contingent liability. The Company has also made counter claims on the contractors admissible
as per the terms of the contract of ^255.02 crore (?222.44 crore). Interest on claims is not considered, being
unascertainable.

5 One of the contractor, M/s Sai Engineers has filed suit against International Metro Civil Contractor for an amount of
?0.02 Crore (?0.02 crore) for dispute on contract terms. The decision is pending before the appellate authorities
and therefore, no provision has been made in the financial statements.

6 There are some cases relating to employees/others are pending in the Courts against the Company in respect of
which the liability is not ascertainable.

7 (i) The Company has given letter of comfort on behalf of its subsidiary company, Ircon Infrastructure and Services

Limited for an amount of ?2.05 crore (?2.05 crore) for performance guarantee submitted to client.

(ii) The Company has given corporate guarantee to various Banks on behalf of and in respect of term loan facility
for its subsidiary companies for an amount of ?3,841.63 crore (?3,841.63 crore). The term loan availed (net of
repayment) by the subsidiary companies as on 31.03.2025 is ^2258.15 crore (?1575.27 crore).

(iii) Contingent Assets

Disclosure of Contingent Assets as per Ind AS 37 'Provisions, Contingent Liabilities and Contingent Assets' is as
under:

a) Claims raised by company on some of its clients and awarded by arbitrators in favour of company against
which clients have gone to court not accounted for as receivables are ^454.60 crore (?461.40 crore) including
interest calculated up to 31.03.2025 as per arbitration award.

b) Counter Claims raised by company on sub-contractors and awarded by arbitrators in favour of company
against which sub-contractors have gone to court, not accounted for as receivables are ?15.36 crore (?14.16
crore).

c) Insurance Claim of USD 0.95 Mn (USD 0.95 Mn) and Ethiopian Birr 1.34 Mn (Birr 1.34 Mn) equivalent to ?8.16
crore (?8.03 crore) including interest calculated upto 31.03.2025 awarded by Honourable Supreme Court of
Ethiopia in favour of company has not been accounted for, pending execution order by High Court of Ethiopia.

4 Company's Non Fund based limits earmarked for issuance of bank guarantee to subsidiary companies amounts to
?747.95 crore (?747.95 crore). Out of the said limit, bank guarantees to the extent of ^245.62 crore (?461.07 crore)
has been utilised as on 31.03.2025.Therefore, the balance limit for issuance of bank guarantee is ?502.33 crore
(?286.88 crore).

5 The Company has given corporate guarantee to various Banks on behalf of and in respect of term loan facility for
its subsidiary companies for an amount of ^3841.63 crore (?3841.63 crore). The subsidiary companies have availed
term loan of ^2388.66 crore (?1655.52 crore) till 31.03.2025. The subsidiary companies have repaid an amount of
?130.51 crore (?80.25 crore) against these term loans and the term loan balance as on 31.03.2025 is ^2258.15 crore
(?1575.27 crore).

6 (i) The Company along with SECL (Sponsors) have executed Sponsor's Support Agreement on behalf of its Joint
Venture, Chhattisgarh East West Railway Ltd.(CEWRL), wherein it has been stated that in case of termination of
the Concession Agreement due to an event of default by the Borrower prior to the achievement of the Commer¬
cial Operation Date the Sponsors shall meet any shortfall in the Debt Service obligations of the Borrower, to the
satisfaction of the Lenders, without recourse to the Borrower and/or the Project. IRCON's share as per the given
amount of Rupee Term Loan is ?1033.76 crore (26% of total loan of ?3976 crore) as on 31st March 2025 (31st March,
2024: ?1033.76 crore).

(ii) The Company along with CCL (Sponsors) have executed Sponsor's Support Agreement on behalf of its Joint
Venture, Jharkhand Central Railway Ltd. (JCRL), wherein it has been stated that in case of termination of the Con¬
cession Agreement due to an event of default by the Borrower prior to the achievement of the Commercial Oper¬
ation Date the Sponsors shall meet any shortfall in the Debt Service obligations of the Borrower, to the satisfaction
of the Lenders, without recourse to the Borrower and/or the Project. IRCON's share as per the given amount of
Rupee Term Loan is ?327.60 crore (26% of total loan of ?1259.75 crore) as on 31st March 2025 (31st March, 2024:
?327.60 crore)

(iii) The Company along with SECL and CSIDCL (Sponsors) have executed Sponsor's Support Agreement on behalf
of its Joint Venture, Chhattisgarh East Railway Ltd.(CERL Ph-II), wherein it has been stated that in case of termi¬
nation of the Concession Agreement due to an event of default by the Borrower prior to the achievement of the
Commercial Operation Date the Sponsors shall meet any shortfall in the Debt Service obligations of the Borrower,
to the satisfaction of the Lenders, without recourse to the Borrower and/or the Project. IRCON's share as per the
given amount of Rupee Term Loan is ?350.74 crore (26% of total loan of ?1,349.00 crore) as on 31st March 2025 (31st
March, 2024: ?350.74 crore).

7 The Company has committed to grant loan (Unsecured interest free/ Unsecured interest-bearing) upto an ag¬
gregate amount of ?500 crore at any time to Special Purpose Vehicles (SPVs) formed as wholly owned subsidiary
(WOS) companies in India for executing road/ highway project of NHAI, in addition to limits already approved by
BoD.

8 There is an outstanding Letter of Credit as on 31st March, 2025 amounting to ?135.86 crore (31st March, 2024 ?3.42
crore).

9 The Company in it's 273^rd BoD held on 12.11.2021, approved the shareholder's agreement between IRCON and
Ayana Renewable Power Private Limited. As per para 5.2.1 of SSHA, capital to the tune of ?370.80 Crore are to be
infused in IRPL in the form of hybrid securities. The company's share in these securities is ?88.99 Crore, i.e., 24%
share of hybrid securities. As per the schedule 10 of the SSHA, the hybrid securities shall :

(A) be optionally converted to equity shares of the company at anytime after the receipt of second tranche of
VGF, at the option of the holder or

(B) be redeemable at the end of 20 (twenty) years from the date of issuance, which may be extended (subject
to applicable laws) to such date on which any Senior Loan, which were outstanding at the end of the fixed
term, are repaid.

Further, the holders of hybrid securities shall have a right but not an obligation to convert any and/or all of the hy¬
brid securities held by it into equity shares, anytime after the receipt of 2^nd tranche of VGF in one or more tranches
in accordance with the ratio determined in SSHA. In line with the SSHA, IRPL's Board of Directors have approved

the issue of hybrid securities in the form of optionally convertible debentures (OCD's). The salient features of
OCD's are as below:

i) the tenure of OCD's shall be 20 years

ii) the rate of interest shall be 14% p.a. and interest shall be payable only if IRPL has distributable profits, else
interest will get accumulated

iii) interest payable shall remain subordinate to interest and principal payment of senior loans

iv) the OCD will be unsecured

v) the holders of hybrid securities shall have a right but not an obligation to convert the hybrid securities into
equity shares, anytime after the receipt of second tranche of VGF.

During the FY 2024-25, IRCON has already subscribed to ?66.00 crore in above OCD's upon Private Placement by
IRPL and the outstanding commitment of IRCON as 31.03.2025 is ?22.99 crore.

10 The Company has executed Sponsor Support Undertaking in favour of the lenders for loan availed by its Subsidiary
Companies as under:-

(i) Ircon Shivpuri Guna Tollway Limited

(ii) Ircon Davanagere Haveri Highway Limited

(iii) Ircon Vadodara Kim Expressway Limited

(iv) Ircon Gurgaon Rewari Highway Limited

(v) Ircon Akloli-Shirsad Expressway Limited

(vi) Ircon Ludhiana Rupnagar Highway Limited

(vii) Ircon Bhoj Morbe Expressway Limited

(viii) Ircon Haridwar Bypass Limited

(ix) Ircon Renewable Power Limited

38. Segment Reporting

Disclosure as per Ind AS 108 " Operating Segment” is given as under:

A. General information

Operating segments are defined as components of an enterprise for which discrete financial information is available
which is being evaluated regularly by the Chief Operating Decision Maker (CODM) in deciding how to allocate resources
and assessing performance. The Board of Directors of the Company is the Chief Operating Decision Maker (CODM).
The operating segments have been reported in a manner consistent with the internal reporting provided to the Chief
Operating Decision Maker (CODM) for review of performance and allocating resources.

The Company has determined reportable operating segments from geographical perspective.

(i) Trade receivables are non-interest bearing and the customer profile include Ministry of Railways, Public Sector
Enterprises, State Owned Companies in India and abroad. The Company's average project execution cycle is
around 24 to 36 months. General payment terms include mobilisation advance, monthly progress payments with
a credit period ranging from 45 to 60 days.

(ii) Contract Assets are recognised over the period in which services are performed to represent the Company's
right to consideration in exchange for goods or services transferred to the customer. It includes balances due
from customers under construction contracts that arise when the Company receives payments from customers as
per terms of the contracts however the revenue is recognised over the period under input method. Any amount
previously recognised as a contract asset is reclassified to trade receivables on satisfaction of the condition
attached i.e. future service which is necessary to achieve the billing milestone.

40. Leases

a) Company as a Lessee

The Company as a lessee has entered into various lease contracts, which includes lease of land, office space, guest
house and vehicles.

The Company also has certain leases of offices and guest house with lease terms of 12 months or less. The Company
applies the 'short-term lease' recognition exemptions for these leases.

Right of Use Assets

The carrying amounts of right-of-use assets recognised and the movements during the year are disclosed in Note 7.
Lease Liabilities

Set out below are the carrying amounts of lease liabilities recognised and the movements during the year:

b) Company as a Lessor

(i) The Company has given buildings under operating lease. Lease income (rental and service charges) aggregating
^28.08 crore (?23.21 crore) has been recognized in the Statement of Profit and Loss as per lease arrangements.

(ii) The Company has given Machinery under operating lease. Lease income aggregating ?3.67 crore (?0.20 crore) has
been recognized in the Statement of Profit and Loss as per lease arrangement.

Comments:-

(i) In computation of the ratio, interest has been offset, and to ensure comparability, the principal loan repayment
has also been adjusted. Additionally, non-cash operating items comprising provisions and Bad Debts written off,
have also been adjusted in the numerator. The change in the ratio is mainly due to these adjustments.

(ii) Average trade receivables has increased in comparison to previous year.

(iii) Average trade payable has increased in comparison to previous year.

(iv) Profit before tax has decreased in comparison to previous year.

(b) The Company do not have any transactions with companies struck off in current year and previous year.

(c) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period in current year and previous year.

(d) The Company has not traded or invested in crypto currency or virtual currency during the current year and
previous year.

(e) The Company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall in current year and previous year:

(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.

(f) The Company has not received any fund from any person(s) or entity(is), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall in current year and
previous year:

(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

(g) The Company does not have any transaction which is not recorded in the books of accounts that has been
subsequently surrendered or disclosed as income during the year as part of the on going tax assessments under
the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961) in
current year and previous year.

(h) The Company do not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property in current year and previous year.

(i) The Company has not been declared as wilful defaulter by any bank or financial institution or government or any
government authority in current year and previous year.

(j) The Company has complied with the number of layers prescribed under the Companies Act, 2013 in current year
and previous year.

46. Recent pronouncement

(a) The Company has adopted certain new accounting standards and amendments effective from April 1, 2024. Ind
AS 117, Insurance Contracts, which replaces Ind AS 104, provides comprehensive guidance on the recognition,
measurement, presentation, and disclosure of insurance contracts. However, it has no impact on the Company's
financial statements as the Company has not entered into any insurance contracts.

(b) Further, an amendment to Ind AS 116, Leases, relating to lease liabilities arising from sale and leaseback transactions,
was also notified. Since the Company has not undertaken any such transaction, the amendment did not affect its
financial statements.

47. Disclosure as required by Ind AS 8 "Accounting Policies, Changes in Accounting Estimates
and Errors

During the current year, the Company has revised its accounting policy regarding the classification and disclosure
of contributions made to the Medical Trust Fund. The liability in respect of Post-Retirement Medical Benefits
(PRMB) has been provided in line with DPE guidelines although actuarial valuation was also done earlier which
is discontinued from FY 2024-25 onwards. Accordingly, the company has now reclassified the contribution to
the medical trust as a Defined Contribution Plan whereas in the previous year, this was disclosed under Defined
Benefit Plan. There is no change in the accounting treatment, recognition, or measurement of these contributions.
The revision relates solely to the presentation and disclosure in the financial statements.

Accordingly, this change has no impact on the previously reported figures in the Statement of Profit and Loss,
Balance Sheet, or the Statement of Cash Flows.

49. Other disclosures

a) (i) The company has been claiming deduction under section 80 IA from assessment years 2000-01 to 2019-20.
The deduction under section 80 IA has been allowed by Income Tax Appellate Tribunal (ITAT). However, Income
Tax Department has filled appeal before High Court against order of ITAT for the assessment year 2000-01.Further
upto assessment year 2019-20 company was offering global income for tax in India after excluding the income in
accordance with DTAA agreements where income earned from foreign countries are excluded from global income
offered for taxation. The company was allowed exclusion method upto assessment year 2005-06, thereafter credit
against taxes paid in foreign countries have been allowed from taxes computed on global income by department.
After paying the due tax the issue has been contested by filing appeals. This issue has been allowed in favour of
the company by ITAT.

(ii) The provision for income tax with respect to earlier years has been written back / income tax expenses has been
reversed amounting to. ?24.32 crore (? NIL) account of favourable orders received from Income tax authorities.

b) There are certain other matters pending in litigations against the Company before various courts and appellate
authorities on account of claims by some contractors in cost plus projects. In such cases, the Company envisages
reimbursement from the Clients in full as per the terms of contract and expects no economic outflow of resources.
In this respect, a total claim of ?1779.99 crore (?1702.41 crore) is under litigation, for which provision of ?NIL (?
NIL) has been made and reimbursed by the client. The Company has also made counter claims on the contractors
of ?112.83 crore (?120.64 crore). Interest on claims is not considered, being unascertainable.

c) Hon'ble High Court has permitted to release an arbitration award, amounting to ?97.96 Crore against NHAI for UP-
05 ,Orai Highway Project against submission of bank guarantee of equivalent amount. The company has provided
liability of equivalent amount till final decision of the Court.

d) The Company has a system of obtaining periodic confirmation of balances from banks and other parties. So far
as trade/other payables and loans and advances are concerned, the balance confirmation letters were sent to
the parties. Balances of some of the Trade Receivables, Other Assets, Trade and Other Payables are subject to
confirmations/reconciliations and consequential adjustment, if any. Reconciliations are carried out on on-going
basis. However, management does not expect to have any material financial impact of such pending confirmations
/ reconciliations.

e) In the opinion of the management, the value of assets, other than property, plant and equipment and non-current
investments, on realisation in the ordinary course of business, will not be less than the value at which these are
stated in the Balance Sheet.

f) Certain reclassifications and recasting have been made to the comparative period's financial statements to
enhance comparability with the current year's financial statements. These reclassifications have no effect on the
reported results of operations.

g) Previous year figures are shown under bracket () to differentiate from current year figures.

As per our Report of even date attached For and on behalf of Board of Directors

For Ramesh C Agrawal and Company Sd/- Sd/-

Chartered Accountants Ragini Advani Hari Mohan Gupta

FRN : 001770C Director (Finance) Chairman & Managing Director

DIN-09575213 and CEO

DIN-08453476

Sd/- Sd/- Sd/-

Monika Agrawal Alin Roy Choudhury Pratibha Aggarwal

Partner Chief Financial Officer Company Secretary

M. No. 093769 FCS No. 8874

Place : New Delhi

Date : 21st May, 2025