Measurement of fair values(i) Fair value hierarchy:

The fair value of investment property has been determined by independent external Government registered property valuers, having appropriate recognised professional qualifications and recent experience in the location and category of the property being valued.

(ii) Valuation technique:

Valuation of the subject property has been done by Sales Comparison Method under Market Approach at each balance sheet date. A comparison is made for the purpose of valuation with similar properties that have recently been sold in the market and thus have a transaction price. The sales comparison approach is the preferred approach when sales data are available. Comparable properties are selected for similarity to the subject property considering attributes like age, size, shape, quality of construction, building features, condition, design, gentry, etc. Their sale prices are then adjusted for their difference from the subject property. Finally a market value for the subject property is estimated from the adjusted sales price of the comparable properties. Investment property comprises a number of vacant industrial land.

Terms and rights attached to equity shares :

The Company has only one class of equity shares having par value of ' 2/- per share (31 March, 2021: ' 2/-per share). Each holder of equity shares is entitled to one vote per share. The dividend is declared and paid on being proposed by the Board of Directors after the approval of the Shareholders in the ensuing Annual General Meeting.

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 liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

Nature and purpose of reserves(i) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act.

(ii) Debenture redemption reserve

The Company has issued redeemable non-convertible debentures. Accordingly, the Companies (Share capital and Debentures) Rules, 2014 (as amended), requires the Company to create DRR out of profits of the Company available for payment of dividend. DRR is required to be created for an amount which is equal to 25% of the value of debentures issued. However, this requirement is no more applicable w.e.f. April 1, 2018 as per the amendment in the Companies (Share capital and Debentures) Rules, 2014 vide dated August 16, 2019; accordingly the Company has not made any new addition in the said reserve and accounted the reversal of outstanding reserve linked to payment of specific non-convertible debentures.

(iii) General reserve

The General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. General Reserve is created by the transfer from one component of equity to another and is not an item of other comprehensive income. This can be utilised in accordance with the provisions of Companies Act, 2013.

(iv) Cashflow Hedge Reserve

The Company has designated its hedging instruments as cash flow hedges and any effective portion of cashflow hedge is maintained in the said reserve. In case the hedging becomes ineffective, the amount is recognised in the Statement of Profit and Loss.

1 Debentures1,500, 9.95% Secured, Rated, Listed, Redeemable Non-Convertible Debentures (NCDs)

(a) 1,500, 9.95% Secured, Rated, Listed, Redeemable Non-Convertible Debentures (NCDs) of the face value of ' 1,000,000/- (Rupees Ten Lakhs Only) each, for an aggregate nominal value of ' 15,000 Lakhs divided in Series I Debentures (300 Nos.), Series II Debentures (450 Nos.) and Series III Debentures (750 Nos.) on private placement basis. The said NCDs are listed on the Wholesale Debt Market segment of BSE Limited.

(b) Interest on debentures is payable anually @ 9.95%. Accrued interest upto 31 March, 2022 is ' 706.59 Lakhs (31 March, 2021 is ' 883.23 Lakhs) and the same is due on 27 August, 2022 and 29 August, 2022.

(c) Unamortised cost related to debenture of ' 13.21 Lakhs (31 March, 2021 is ' 27.91 Lakhs) has been reduced from the borrowings.

(d) NCDs secured against 5,916,820 equity shares constituting 26% of the paid up equity capital of Brij Bhoomi Expressway Private Limited (refer note: 6(a))

1,000, 10.55%, Unsecured, Rated, Listed, Redeemable Non-Convertible Debentures (NCDs)

(a) 1,000, 10.55% Unsecured, Rated, Listed, Redeemable Non-Convertible Debentures (NCDs) of the face value of ' 1,000,000/- (Rupees Ten Lakhs Only) each, for an aggregate nominal value of ' 10,000 Lakhs on private placement basis. The said NCDs are listed on the Wholesale Debt Market segment of BSE Limited.

(b) I nterest on debentures is payable quarterly @ 10.55%. Accrued interest upto 31 March, 2022 is ' 179.89 Lakhs (31 March, 2021: ' 196.55 Lakhs) and the same is due on 25 April, 2022.

(c) Unamortised cost related to debenture of ' 14.66 Lakhs (31 March, 2021: ' 40.87 Lakhs) has been reduced from the borrowings.

990, 9.80% Unsecured, Rated, Listed, Redeemable, Non-Convertible Debentures (NCDs)

(a) 990, 9.80% Unsecured, Rated, Listed, Redeemable Non-Convertible Debentures (NCDs) of the face value of ' 1,000,000/- (Rupees Ten Lakhs Only) each, for an aggregate nominal value of ' 9,900 Lakhs divided in Series A Debentures (250 Nos.), Series B Debentures (250 Nos.), Series C Debentures (250 Nos.) and Series D Debentures (240 Nos.)on private placement basis. The said NCDs are listed on the Wholesale Debt Market segment of BSE Limited.

(b) Interest on debentures is payable quarterly @ 9.80%. Accrued interest upto 31 March, 2022 is ' 45.19 Lakhs (31 March, 2021: ' NIL) and the same is due on 15 June, 2022.

(c) Unamortised cost related to debenture of ' 66.34 Lakhs (31 March, 2021: ' NIL) has been reduced from the borrowings.

2 Rupee loans from banks

(i) Term loan from a bank amounting to ' NIL (31 March, 2021: ' 794.61 Lakhs) is secured exclusively by first charge on movable Property, plant and equipment funded out of the said facility. Term loan is repayable in unequal quarterly instalments with 31 March, 2022 as maturity date with varying interest rate linked to base rate of bank from time to time.

(ii) Term loan from a bank amounting to ' 3,988.02 Lakhs (31 March, 2021: ' 8,095.15 Lakhs) is secured by first pari passu charge on entire movable Property, plant and equipment excluding assets charged exclusively to the Term Lenders. Term loan is repayable in 16 unequal quarterly instalments to be paid at the end of each financial quarter, with 31 March, 2023 as a date of maturity and interest payable on monthly basis at varying interest rate linked to 1 year MCLR.

(iii) Term loan from a bank amounting to ' NIL (31 March, 2021: ' 5.97 Lakhs) is secured exclusively by first charge on movable Property, plant and equipment funded out of the said facility. Term loan is repayable in unequal quarterly instalments ending in 31 July, 2021 with varying interest rate linked to base rate of bank from time to time.

(iv) Term loan from a bank amounting to ' 360.78 Lakhs (31 March, 2021: ' 410.95 Lakhs) is secured exclusively by first charge on movable Property, plant and equipment funded out of the said facility. Term loan is repayable in unequal quarterly instalments ending in 31 July, 2025 with varying interest rate linked to base rate of bank from time to time.

(v) Term loan from a bank amounting to

' 1,406.25 Lakhs (31 March, 2021:

' 2,343.75 Lakhs) is secured exclusively by first charge on movable Property, plant and equipment funded out of the said facility. Term loan is repayable in unequal quarterly instalments with 30 November, 2022 as maturity date with varying interest rate linked to base rate of bank from time to time.

(vi) Term loan from a bank amounting to

' 2,125.00 Lakhs (31 March, 2021:

' 2,500.00 Lakhs) is secured by first pari passu charge on entire movable Property, plant and equipment excluding assets charged exclusively to the Term Lenders. Term loan is repayable in unequal quarterly instalments with 31 March, 2025 as maturity date with varying interest rate linked to base rate of bank from time to time.

(vii) Term loan from a bank amounting to ' 111.72 Lakhs (31 March, 2021: ' 179.29 Lakhs) is secured exclusively by first charge on movable Property, plant and equipment

(xii) Term loan from a bank amounting to ' 228.36 Lakhs (31 March, 2021: ' 1,106.34 Lakhs) is secured exclusively by first charge on entire current assets and second charge on movable Property, plant and equipment excluding assets charged exclusively to the Term Lenders. Term loan is repayable in unequal monthly instalments with 30 June, 2022 as maturity date with varying interest rate linked to base rate of bank from time to time.

(xiii) Term loan from a bank amounting to ' 364.98 Lakhs (31 March, 2021: ' 439.36 Lakhs) is secured exclusively by first charge on movable Property, plant and equipment funded out of the said facility. Term loan is repayable in unequal monthly instalments with 31 March, 2026 as maturity date with varying interest rate linked to base rate of bank from time to time.

(xiv) Term loan from a bank amounting to ' 1,006.00 Lakhs (31 March, 2021: ' NIL) is secured exclusively by first charge on movable Property, plant and equipment funded out of the said facility. Term loan is repayable in unequal monthly instalments with 31 December, 2026 as maturity date with varying interest rate linked to base rate of bank from time to time.

(xv) Term loan from a bank amounting to ' 5,000.00 Lakhs (31 March, 2021: ' NIL) is secured exclusively by first charge on movable Property, plant and equipment funded out of the said facility. Term loan is repayable in unequal quarterly instalments with 31 January, 2027 as maturity date with varying interest rate linked to base rate of bank from time to time.

(xvi) Term loan from a bank amounting to ' 3,950.00 Lakhs (31 March, 2021: ' NIL) is secured exclusively by first charge on movable Property, plant and equipment funded out of the said facility. Term loan is

repayable in unequal quarterly instalments with 30 June, 2026 as maturity date with varying interest rate linked to base rate of bank from time to time.

(xvii) Term loan from a bank amounting to ' 987.50 Lakhs (31 March, 2021: ' NIL) is secured exclusively by first charge on movable Property, plant and equipment funded out of the said facility. Term loan is repayable in unequal quarterly instalments with 30 June, 2026 as maturity date with varying interest rate linked to base rate of bank from time to time.

3 Rupee loans from NBFC

(i) Term loan from NBFC amounting to ' NIL (31 March, 2021: ' 801.16 Lakhs) is secured by first pari passu charge on entire movable Property, plant and equipment excluding assets charged exclusively to the Term Lenders. Term loan is repayable in 18 unequal quarterly instalments to be paid at the end of each financial quarter, with 30 June, 2021 as a date of maturity and interest payable on monthly basis at varying interest rate linked to base rate of NBFC from time to time.

(ii) Term loan from NBFC amounting to ' NIL (31 March, 2021: ' 1,562.50 Lakhs) is secured by first pari passu charge on entire movable Property, plant and equipment excluding assets charged exclusively to the Term Lenders. Term loan is repayable in 16 equal quarterly instalments, 30 June, 2021 as a date of maturity and interest payable on monthly basis at varying interest rate linked to base rate of NBFC from time to time.

(iii) Term loan from NBFC amounting to ' 452.69 Lakhs (31 March, 2021: ' 752.69 Lakhs) is secured by exclusive charge by way of hypothecation for equipment financed by them. Term loans is repayable in 20 equal quarterly instalments with interest payable quarterly at varying interest rate linked to base rate of NBFC.

(iv) Term loan from NBFC amounting to ' 1,250.00 Lakhs (31 March, 2021: ' 1,875.00 Lakhs) is secured by first pari passu charge on entire movable Property, plant and equipment excluding assets charged exclusively to the Term Lenders. Term loan is repayable in 16 equal quarterly instalments, 31 March, 2024 as a date of maturity and interest payable on monthly basis at varying interest rate linked to base rate of NBFC from time to time.

(v) Term loan from NBFC amounting to ' 1,244.11 Lakhs (31 March, 2021: ' 1,875.00 Lakhs) is secured by first pari passu charge on entire movable Property, plant and equipment excluding assets charged exclusively to the Term Lenders. Term loan is repayable in 16 equal quarterly instalments, 31 March, 2024 as a date of maturity and interest payable on monthly basis at varying interest rate linked to base rate of NBFC from time to time.

(vi) Term loan from NBFC amounting to ' 21.00 Lakhs (31 March, 2021: ' 100.53 Lakhs) is unsecured. Term loans is repayable in 20 unequal quarterly instalments with interest payable monthly at varying interest rate linked to base rate of NBFC from time to time.

4 Vehicle / equipment loans

Loans of ' 31.27 Lakhs (31 March, 2021: ' 68.03 Lakhs) are secured by way of charge on specific equipment and vehicles financed by them on different loans. Vehicle Loans is repayable in 60 monthly instalments beginning from the month subsequent to disbursement.

5 Utilisation of Borrowed funds or share premium or other sources of funds

Company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date.

23 ESTIMATION OF UNCERTAINTIES RELATING TO THE GLOBAL HEALTH PANDEMIC - COVID-19:

The Company has considered the possible effects that may result from COVID-19 in preparation of the financial statements. The Company continues to monitor the impact of COVID-19 on its business, customers, vendors and employees, etc. The Company has exercised due care in significant accounting judgements and estimates in relation to the recoverability of receivables, investments and loans and advances, based on the information available to date, both internal and external, while preparing the Company’s financial statements for the current year.

28 In the managment opinion, the assets other than Property, plant and equipment and non-current investments have a realisable value, in the ordinary course of business, approximately of the amount at which they are stated in these standalone financial statements.

29 THE DISCLOSURE IN RESPECT OF PROVISIONS IS AS UNDER (Contd.)

Provision for defect liability period expense - The Company has made provision for expenses during defect liability period based on the defect liability period mentioned in contracts. The provision is based on the estimates made from historical data associated with similar project. The Company expects to incur the related expenditure over the defect liability period.

Provision for 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.

31 RETIREMENT BENEFITSa. Defined contribution plan

The Company makes contribution towards provident fund and superannuation fund which are defined contribution retirement plans for qualifying employees. The provident fund plan is operated by the regional provident fund commissioner and the superannuation fund is administered by the LIC. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement contribution schemes to fund benefits.

The Company recognised ' 1,557.43 Lakhs (31 March 2021: ' 1,279.31 Lakhs) for Provident Fund contributions and ' 44.36 Lakhs (31 March, 2021: ' 51.89 Lakhs) for Superannuation contributions in the Standalone Statement of Profit and Loss. The contribution payable to these plans by the Company are at rates specified in the rules.

b. Defined benefit plan

The scheme provides for lump sum payment to vested employees at retirement, upon death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

The present value of the defined benefit obligation and the related current service cost are measured using the projected unit credit method as per actuarial valuation carried out at balance sheet date.

The following table sets out the funded status of the gratuity plan and the amount recognised in the company’s standalone financial statements as at 31 March, 2022.

# Trade receivables

Trade receivables herein are gross amount before adjustment of advances received from clients Terms and conditions of transactions with related parties - The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm’s length transactions. For year ended 31 March 2022, The Company has not recorded any specific impairment of receivables relating to the amounts owned by related parties (31 March, 2021: ' Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

^ Advances taken from clients herein are gross amount before adjustment of trade receivables.

All balances oustanding with the related parties are unsecured.

Figures shown in brackets represent corresponding amounts of previous year.

The terms and conditions of transactions with related parties were no more favourable than those available, or which might be expected to be available, in similar transactions with non related parties on an arm’s length basis.

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.”)

A. Risk management framework

The Company’s activities expose it to a variety of financial risks, including credit risk, liquidity risk and market risk. The Company’s primary risk management focus is to minimise potential adverse effects of market risk on its financial performance. The Company’s risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Board of Directors and the Audit Committee is responsible for overseeing the Company’s risk assessment and management policies and processes.

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

(i) Credit risk

(ii) Liquidity risk

(iii) Market risk (including currency and interest rate risk)

(i) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and investment securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes provision for expected credit loss and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments.

I n assessing the recoverability of receivables and other financial assets, the Company has considered internal and external information upto the date of approval of these financial statements. The impact of the global health pandemic may be different from that estimated as at the date of approval of these financial statements and the Company will continue to closely monitor any material changes to future economic conditions.

Trade receivables

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. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

(i) Credit risk (Contd.)

Expected credit loss assessment for customers as at the reporting date

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses. Given that the macro economic indicators affecting customers of the Company have not undergone any substantial change, the Company expects the historical trend of minimal credit losses to continue. Further, management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk. The impairment loss at 31 March, 2022 mainly due to time value of money.

Accrued value of work done

As at 31 March, 2022 and 31 March, 2021, the Company has accrued value of work done and amounts due on account of construction contracts. The Company has recognised a provision of ' 2,644.37 Lakhs (31 March, 2021: ' 2,582.71 Lakhs). Apart from the provision recognised, the Company does not perceive any credit risk pertaining to accrued value of work done and amount due on account of construction contract.

The credit worthiness of such banks is evaluated by the management on an ongoing basis and is considered to be good.

Derivatives

The derivatives are entered into with credit worthy banks and financial institution counterparties. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be good.

Guarantees

The Company’s policy is to provide financial guarantee only for its subsidiaries’ liabilities. At 31 March 2022 and 31 March, 2021, the Company has issued guarantees to certain banks in respect of credit facilities granted to subsidiaries.

Security deposits given to lessors

The Company has given security deposit to lessors for premises leased by the Company as at 31 March, 2022 and 31 March, 2021. The Company monitors the credit worthiness of such lessors where the amount of security deposit is material.

Loans, investments in group companies

The Company does not perceive any credit risk pertaining to loans given to subsidiaries except on the loan given to Kurukshetra Expressway Private Limited, Joint Venture Company and one of its subsidiary, Wainganga Expressway Private Limited. As required by Indian Accounting Standard 109 “Financial Instruments”, Management had performed an impairment assessment of the recoverable amount based on discounted cash flows, which have been determined by external valuation experts. The determination of the discounted cash flows involves significant management judgement and estimates on the valuation methodology and various assumptions including related to growth rates, discount rates, etc. Further, management believed that the above assessment based on value in use appropriately reflects the recoverable amount of loans. Based on this assessment and the valuation reports obtained from independent valuer, provision for expected credit loss was recognised in the standalone statement of profit and loss amounting to ' 7,947.06 Lakhs upto 31 March, 2021 on the loans given to its joint venture.

Kurukshetra Expressway Private Limited (“KEPL” or “Concessionaire”), a Joint venture (49.57%) of the Company, issued a notice of termination of Concession Agreement (“CA”) vide letter dated 7 October, 2021 to the National Highway Authority of India (“NHAI”) on account of continuous disruption and blockade of traffic on National Highway-71 due to farmer agitation with stoppage of toll collection. The provisions of Concession Agreement provides for termination where events which are not in control of KEPL, and obliges NHAI paying KEPL for repayment of Debt Due along with Adjusted Equity after necessary adjustments. During the year, the Company had made provision for impairment of ' 9,826.62 Lakhs against equity investment in KEPL, which is presented as exceptional items and for Expected credit loss of ' 17,936.43 Lakhs against loans given to KEPL / others. Further, the Promoters of KEPL have, jointly and severally given ‘shortfall undertakings’ to the Senior Lenders, should there be any shortfall between amounts received from NHAI and that payable to KEPL’s lenders, KEPL has received copy of the letter dated February 3, 2022 sent by an independent Engineer (“IE”) appointed by NHAI in which the IE has sought to limit the amount payable (net of other deductions) as “Termination Payment”. Accordingly, in light of the above the Company has made further provision for Expected Credit Loss of ' 4,779.12 Lakhs. The Company has also recognised ' 3,977.00 Lakhs towards their share (49.57%) being a potential shortfall, if any, which is disclosed as an exceptional item. The Company has made above provisions without prejudice to it’s and KEPL legal rights and claims against NHAI and will continue to pursue these amounts against KEPL. Further, it will seek KEPL to pursue their claims and termination payment against NHAI notwithstanding the above recognition. Additionally during the year, the Company had recognised provision for impairment of ' 1,543.03 Lakhs against equity investment in a subsidiary namely Wainganga Expressway Private Limited, which is presented as exceptional items.

Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation.

The Company has obtained fund and non-fund based working capital lines from various banks. Furthermore, the Company has access to funds in the form of loans from banks. The Company also constantly monitors funding options available in the debt and capital markets with a view to maintaining financial flexibility.

As of 31 March, 2022, the Company had working capital (Total current assets - Total current liabilities) of ' 65,881.03 Lakhs including cash and cash equivalents of ' 12,186.65 Lakhs. These cash and cash equivalents include investments in term deposits (i.e. bank certificates of deposits having original maturities of less than 3 months) of ' 5,263.13 Lakhs. As of 31 March, 2021, the Company had working capital of ' 83,467.16 Lakhs, including cash and cash equivalents of ' 16,928.72 Lakhs. These cash and cash equivalents include investments in term deposits (i.e. bank certificates of deposits having original maturities of less than 3 months) of ' 7,259.38 Lakhs.

Exposure to liquidity risk

The table below analyses the Company's financial liabilities into relevant maturity groupings based on their contractual maturities for:

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates, foreign currency exchange rates) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short term and long-term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of its investments. Thus, the Company’s exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currencies.

(a) Currency risk

The fluctuation in foreign currency exchange rates may have potential impact on the profit and loss account and equity, where any transaction references more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the entity.

Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in U.S. dollar, Euro, Ethiopian Birr, Sri Lankan Rupee, Mongolian Tugrik, Maldivian rufiyaa, Ghanaian Cedi and United Arab Emirates Dirham against the respective functional currencies of the Company and its branches.

The Company, as per its risk management policy, uses foreign exchange and other derivative instruments primarily to hedge foreign exchange and interest rate exposure. The Company does not use derivative financial instruments for trading or speculative purposes.

A 10% strenghtening / weakening of the respective foreign currencies with respect to functional currency of Company would result in increase or decrease in profit or loss and equity as shown in table below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. The following analysis has been worked out based on the exposures as of the date of balance sheet.

(b) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to market risk for changes in interest rates relates to fixed deposits and borrowings from financial institutions. The company manages its interest rate risk arising from foreign currency floating rate loans by using interest rate swaps as hedges of variability in cash flows attributable to interest rate risk.

For details of the Company’s short-term and long term loans and borrowings, including interest rate profiles, refer to Note 13 (a) & 13 (b) of these standalone financial statements.

The company's fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in IND AS 107, since neither the carrying amount nor the future cash flow will fluctuate because of a change in market interest rates.

Interest rate sensitivity - variable rate instruments

A reasonably possible change of 100 basis points in interest rates at the reporting date would have increased / decreased equity and profit or loss by amounts shown below. This analyses assumes that all other variables, in particular, foreign currency exchange rates, remain constant. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The year end balances are not necessarily representative of the average debt outstanding during the year.

(c) Derivative Financial Instruments

The company holds derivative financial instruments such as foreign currency Forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures . The counter party for these contracts is generally a Private and PSU banks, financial institution. These derivative financial instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are directly or indirectly observable in the marketplace. Mark to Market gain or loss on derivative instruments is part of other current financial assets.

(i) Accounting classification and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities if the carrying amount is a reasonable approximation of fair value. A substantial portion of the company’s long-term debt has been contracted at floating rates of interest, which are reset at short intervals. Accordingly, the carrying value of such long-term debt approximates fair value.

Valuation techniques and significant unobservable inputs

The following table shows the valuation techniques used in measuring Level 2 and Level 3 fair values for financial instruments measured at fair value in the statement of financial position as well as the significant unobservable inputs used.

Offsetting arrangements

(i) Derivatives

The Company enters into derivative contracts for hedging future sales. In general, under such agreements, the amounts owed by each counterparty on a single day in respect of all the transactions outstanding in the same currency are aggregated into a single net amount that is payable/receivable by one party to the other.

(ii) Working Capital Loans are secured against the inventory, cash and cash equivalents and trade receivables.

36 OPERATING SEGMENTS

The Company is primarily engaged in the business of Engineering, Procurement & Construction (EPC) relating to infrastructure sector comprising of Buildings and Factories, Roads, Bridges, Water pipe lines, Metro, Power, Railways etc. Information reported to and evaluated regularly by the chief operating decision maker (CODM) for the purposes of resource allocation and assessing performance focuses on the business as a whole and accordingly, in the context of operating segment as defined under Indian Accounting Standard 108 "Operating Segments" there is a single reportable segment "Infrastructure EPC".

B. Information about major customers

Revenues from one customer of India represented approximately ' 46,846.56 Lakhs (31 March, 2021: ' 45,527.11 Lakhs) of the Company’s total revenues.

37 PROPOSED DIVIDEND

The Board of Directors at its meeting held on 12 May, 2022 have recommended a payment of final dividend of ' 1.00/- per share (31 March, 2021 : ' 0.70/- per share) of face value of ' 2.00/- each for the financial year ended 31 March, 2022 (31 March, 2021 : ' 2.00/- per share). The same amounts to ' 1,679.05 Lakhs (31 March, 2021 : ' 1,175.34 Lakhs).

The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is notrecognised as a liability.

38 DISCLOSURE AS PER IND AS 115

(a) The Company undertakes Engineering, Procurement and Construction business. The type of work in the contracts with the customers involve construction, engineering, designing, supply of materials, development of system, installation, project management, operations and maintenance etc. During the previous year the Company has recognised the cumulative effect of applying Ind AS 115 as an adjustment to the opening balance at 1 April 2018.

The contract assets primarily relate to the Company’s rights to consideration for work completed but not billed at the reporting date. The contract assets are transferred to receivables when the rights become unconditional. This usually occurs when the Company issues an invoice to the customer. The contract liabilities primarily relate to the advance consideration received from customers for construction for which revenue is recognised over time.

Amount due from customers on construction contract represents the gross unbilled amount expected to be collected from customers for contract work performed till date. It is measured at cost plus profit recognised till date less progress billings and recognised losses when incurred.

Amount due to customers under construction contracts represents the excess of progress billings over the revenue recognised (cost plus attributable profits) for the contract work performed till date.

Cost includes all expenditure related directly to specific projects and an allocation of fixed and variable overheads incurred in the Company’s contract activity based on normal operating capacity.

As on 31 March, 2022, revenue recognised in the current year from performance obligations satisfied/ partially satisfied in the previous year is ' NIL (31 March, 2021 : ' NIL).

(d) Performance obligation

The Company undertakes Engineering, Procurement and Construction business. The ongoing contracts with customers are for construction of highways, water pipeline projects, construction of residential & commercial buildings, and others. The type of work in these contracts involve construction, engineering, designing, supply of materials, development of system, installation, project management, operations & maintenance etc.

The Company evaluates whether each contract consists of a single performance obligation or multiple performance obligations. Contracts where the Company provides a significant integration service to the customer by combining all the goods and services are concluded to have a single performance obligations. Contracts with no significant integration service, and where the customer can benefit from each unit on its own, are concluded to have multiple performance obligations. In such cases consideration is allocated to each performance obligation, based on standalone selling prices. Where the Company enters into multiple contracts with the same customer, the Company evaluates whether the contract is to be combined or not by evaluating factors such as commercial objective of the contract, consideration negotiated with the customer and whether the individual contracts have single performance obligations or not.

The Company recognises contract revenue over time as the performance creates or enhances an asset controlled by the customer. For such arrangements revenue is recognised using cost based input methods. Revenue is recognised with respect to the stage of completion, which is assessed with reference to the proportion of contract costs incurred for the work performed at the balance sheet date relative to the estimated total contract costs.

Any costs incurred that do not contribute to satisfying performance obligations are excluded from the Company’s input methods of revenue recognition as the amounts are not reflective of our transferring control of the system to the customer. Significant judgment is required to evaluate assumptions related to the amount of net contract revenues, including the impact of any performance incentives, liquidated damages, and other forms of variable consideration.

If estimated incremental costs on any contract, are greater than the net contract revenues, the Company recognises the entire estimated loss in the period the loss becomes known.

Variations in contract work, claims, incentive payments are included in contract revenue to the extent that may have been agreed with the customer and are capable of being reliably measured.

The Company recognises revenue from Operations and Maintenance services using the time-elapsed measure of progress i.e input method on a straight line basis.

Short-term leases and leases of low-value assets

The Company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less and leases of low-value assets, including IT equipment. The Company recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

The Company has an adequate internal control systems and processes in place. The Company also has group assurance function that reviews internal control systems and processes regularly and the same commensurate with the size and nature of its business and are effective. However, during the year the Company has received a Whistle Blower Complaint from a customer for which investigation is in progress. Basis the progress of investigation, the management believes the complaint is frivolous and will not result in any financial loss to the Company.

43 The figures for the previous year have been regrouped / rearranged wherever necessary to conform to the current year classification in order to comply with the requirements of the amended Schedule III to the Companies Act, 2013 effective 1 April 2021.

44 CAPITAL 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’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital, as well as the level of dividends to equity shareholders.

The Company monitors capital using a ratio of ‘net debt’ (total borrowings net of cash and cash equivalents) to ‘total equity’ (as shown in the balance sheet).