4.1 Of these 444,600,000 (March 31, 2024: 444,600,000) equity shares have been pledged with SBICAP Trustee Company Limited (Security trustee) on behalf of consortium of working capital lenders.

The carrying value of investment in NCCIHL as at March 31,2025 is higher by ' 271.27 crores (March 31,2024: ' 269.73 crores) as compared to the Company's share of net worth in NCCIHL. Based on the internal assessment, management is of the view that the carrying value is recoverable, considering the future cash flows which include claims filed by NCCIHL and other underlying assets.

In the previous year, the Company had purchased 263,613,095 shares of NCCIHL from its existing shareholder for a consideration of ' 240.24 crores based on an earlier understanding. The latter has assigned its receivable of ' 240.24 crores to NCCIHL against its liability towards NCCIHL. NCC has paid an amount ' 180.00 crores and the balance of ' 60.24 crores is shown under 'Other Financial Liabilities'.

4.2 Of these 123,460,000 (March 31, 2024: 123,460,000) equity shares have been pledged with SBICAP Trustee Company Limited (Security trustee) on behalf of consortium of working capital lender/s.

In the previous year, NCC Urban Infrastructure Limited had bought back 8,889,600 shares held by NCC, with face value of ' 10 at ' 27 after obtaining requisite approvals from its board of directors. The resultant gain of ' 13.33 crores has been shown under 'Exceptional Item'.

4.3 Of these 51,000 equity shares (March 31, 2024 : Nil) have been pledged with SBICAP Trustee Company Limited (Security trustee) on behalf of SBI for term loan and non-disposal undertaking for the balance 9,000 equity shares (March 31, 2024 : Nil).

4.4 UHPFRC Nagpur LLP has changed from a subsidiary to an associate with effect from April 01, 2024, due to an amendment in the shareholding agreement altering the rights and obligations of the parties.

4.5 Paschal Form Work (India) Private Limited ceased to be an associate with effect from September 23, 2024 pursuant to an additional investment by another shareholder resulting in loss of significant influence.

4.6 NCC IHMPL had given an advance of ' 233 crore to a related party in the earlier years, the recoverability of the same was dependent on the realisation from earmarked units in a Dubai real estate project as per the sale and purchase agreement with the buyer for development. The project is currently allotted to a new developer by the local authorities and is under litigation between the related party and the buyer. Based on the legal advice and judicial precedence, management is confident that such amounts are fully recoverable.

4.7 The Company has not traded or invested in Crypto currency or Virtual Currency in the current year (March 31, 2024: ' Nil).

10.1 Trade receivables are generally realisable from customers within a period of 30 days from the date of submission of bill / invoice.

10.2 In determining the allowance for trade receivables the company has used practical expedients based on financial condition of the customer, ageing of the customer receivables and overdues, availability of collaterals and historical experience of collections from customers. The concentration of risk with respect to trade receivables is reasonably low as most of the customers are Government organisations though there may be normal delays in collections.

16.3 Unclaimed equity shares of 11,154 (March 31, 2024: 23,954) are held in "NCC Limited - Unclaimed suspense account" in trust.

16.4 Rights of the share holders

The equity shares of the company having par value of ' 2 per share, rank pari passu in all respects including voting rights and entitlement to dividend. Repayment of the capital in the event of winding up of the Company will inter alia be subject to the provisions of Companies Act 2013, the Articles of Association of the Company and as may be determined by the Company in General Meeting prior to such winding up.

16.5 The Company has not issued any equity shares as bonus / for consideration other than cash and bought back shares during the period of five years immediately preceding the reporting date.

17.4.a For the year ended March 31, 2025, the Board of Directors have proposed a dividend of ' 2.20 per share (March 31, 2024 : ' 2.20 per share). The dividend payable on approval of the shareholders is ' 138.13 crores (March 31,2024 : ' 138.13 crores).

17.6 Nature and purpose of reserves17.6. a Securities premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

17.6. b Capital Reserve

Capital Reserve represents reserve balances which are not available for distribution as dividend to the Company.

17.6. c General reserve

The Company created a General Reserve in earlier years pursuant to the provisions of the Companies Act, 1956 where in certain percentage of profits were required to be transferred to General Reserve before declaring dividends. As per Companies Act, 2013 the requirements to transfer profits to General Reserve is not mandatory. General Reserve is a free reserve available to the Company.

17.6. d Retained Earnings

Retained earnings are the profits/(loss) that the Company has earned/incurred till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. Pursuant to resolution in Board meeting dated May 15, 2025, ' 350 crores (March 31, 2024 : ' 350 crores) is transferred to general reserve.

18.1 Term Loans from Banks:

(i) Kotak Mahindra Bank Limited, Indus Ind Bank Limited, YES Bank Limited and Karnataka Bank Ltd.

- Secured by hypothecation of specific assets purchased out of the loan

(ii) Bank of Bahrain & Kuwait

- Exclusive charge on the entire equipment and machinery purchased out of the loan facility with a cover of minimum 1.15 times to be maintained throughout the tenor of the loan.

(iii) Karur Vysya Bank Ltd

- Commercial paper (CP) is a short-term, unsecured debt instrument issued by corporations to raise funds for working capital needs

20.1 In accordance with the Payment of Gratuity Act, 1972 the company provides for gratuity covering eligible employees. The liability on account of gratuity is covered partially through a recognized gratuity fund managed by Life Insurance Corporation of India (LIC) and balance is provided on the basis of valuation of the liability by an independent actuary as at the year end. The management understands that LIC overall portfolio of assets is well diversified and as such, the long term return on the policy is expected to be higher than the rate of return on Central Government bonds.

A Defined benefit plans

(i) Liability for gratuity as on March 31,2025 is ' 103.05 crores (March 31,2024: ' 93.82 crores) of which ' 2.78 crores (March 31, 2024: ' 2.96 crores) is funded with the Life Insurance Corporation of India. The balance of ' 100.27 crores (March 31, 2024: ' 90.86 crores) is included in Provision for Gratuity.

(ii) Details of the Company's post-retirement gratuity plans for its employees including whole-time directors are given below, which is certified by the actuary.

21.1 Working Capital Demand Loans and Cash Credit facilities availed from consortium of banks are secured by:

a) Hypothecation against first charge on stocks, book debts and other current assets of the Company, (excluding specific projects) both present and future, ranking pari passu amongst consortium banks.

b) Collateral Security pari passu first charge (Hypothecation / Pledge) amongst the members of consortium on unencumbered movable fixed assets of the Company at WDV (specific assets) and Shares of NCC Infrastructure Holdings Limited (Refer note 4.1) and NCC Urban Infrastructure Limited (Refer note 4.2).

c) Equitable mortgage of sixteen properties (Land & Buildings).

d) Personal Guarantee of Sri. A A V Ranga Raju, Sri A G K Raju & Sri A S N Raju.

These facilities carry an interest rate of 8.00% to 11.50% per annum.

21.2 The Company used the borrowings from banks and financial institutions for the specific purpose for which it was taken.

21.3 The Company has borrowings from banks on the basis of security of current assets, and the quarterly returns and statements of current assets filed by the Company with banks are in agreement with the books of accounts.

21.4 The Company is not declared as a wilful defaulter by any bank or financial Institution or other lender during the financial year.

21.5 The Company participates in a supply chain financing arrangement (SCF) with banks, which is disclosed under borrowings. Under this arrangement, suppliers are paid by the bankers and the Company has to honor these dues to the bankers. This facility carries interest of Repo rate 2.25% spread and is repayable within 150 days from the date of invoice.

21.6 The Company availed unsecured working capital demand loan from CSB Bank at an interest rate of 9.10% p.a. during the year.

33.3 The Company does not have any transaction which is not recorded in the books of accounts that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

Transaction of purchase of goods including services provided are carried out at arm's length basis and in the normal course of business and determined based on the comparable prices with unrelated parties. Loans and guarantees provided to related parties are also on terms comparable with market rates.

36 Segment Reporting:

In accordance with Ind AS 108 "Operating Segments", segment information has been given in the consolidated financial statements of NCC Limited and therefore no separate disclosure on segment information is given in these financial statements.

Customer Concentration

One customer (March 31, 2024: one customer) with revenues of ' 3,437.96 crores (March 31, 2024: ' 5,983.54 crores), has exceeded 10% of the revenue from operations of the Company.

38.1 Capital management

The Company's capital management objective is to maximise the total shareholder return by optimising cost of capital through flexible capital structure that supports growth. Further, the Company ensures optimal credit risk profile to maintain / enhance credit rating.

The Company determines the amount of capital required on the basis of annual operating plan and long-term strategic plans. The funding requirements are met through internal accruals and long-term/short-term borrowings. The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

For the purpose of capital management, capital includes issued equity capital, securities premium and all other revenue reserves. Net debt includes all long and short-term borrowings as reduced by cash and cash equivalents.

The Company's business activities exposed to a variety of financial risk viz., market risk, credit risk and liquidity risk. The Company's focus is to estimate a vulnerability of financial risk and to address the issue to minimize the potential adverse effects of its financial performance.

i) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Company's exposure to market risk is primarily on account of the following:

• Interest rate risk

Out of total borrowings, large portion represents short term borrowings (WCDL) and the interest rate primarily basing on the Company's credit rating and also the changes in the financial market. The Company continuously monitors all factors influencing rating and determination of the interest rates by the banks to minimize the interest rate risks.

The Company's exposure to changes in interest rates relates primarily to the Company's outstanding floating rate borrowings. Out of the total borrowings of ' 1484.04 crores (March 31, 2024: ' 1,005.03 crores) as of March 31, 2025, the floating rate borrowings are ' 1124.67 crores (March 31, 2024: ' 904.03 crores). For every 50 base points change in the interest rate when no change in other variables, it will affect the profit before tax by ' 5.62 crores for the year ended March 31, 2025 (March 31, 2024:' 4.52 crores).

• Foreign currency risk

The Company has several balances in foreign currency and consequently the Company is exposed to foreign exchange risk. The exchange rate between the rupee and foreign currencies has changed substantially in recent years, which has affected the results of the Company, and may fluctuate substantially in the future. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

We summarize below the financial instruments which have the foreign currency risks as at March 31,2025 and March 31, 2024.

The Company's exposure to foreign currency changes for all other currencies is not material.

ii) Credit risk management

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk on trade receivables and contract assets is limited as the customers of the Company mainly consists of the Government promoted entities having a strong credit worthiness. As a practical expedient, the Company uses a provision matrix to determine impairment loss of its trade receivables and unbilled revenue. The provision matrix is based on its historically observed default rates over the expected life of the trade receivable and unbilled revenue. Accordingly, the Company creates provision of 1.50% to 2.00% of the closing receivables and 1.50% to 3.50% of the closing unbilled revenue. Refer note 6, 10, 15 and 15.1 for provision made against trade receivable and unbilled revenue.

Credit risks from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. The Company only deals with parties which has good credit rating/ worthiness given by external rating agencies or based on Company's internal assessment.

iii) Liquidity risk management

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuous planning and monitoring of actual cash flows and by matching the maturity profiles of financial assets and liabilities.

The table below provides details regarding the contractual maturities of financial liabilities including estimated interest payments as at March 31, 2025:

iv) Commodity price risk management

A major portion of the Company's costs for execution includes procurement of various equipment and materials which may have direct or indirect linkages to commodity prices like steel, cement etc. Accordingly, the Company is exposed to the price risk on these commodities. To mitigate the risk of commodity prices, the Company relies on contractual provisions like price variation provisions. The residual risk carried by the Company is not material.

38.4 Fair value measurements:

Some of the Company's financial assets and financial liabilities are measured at fair value at the end of the reporting period. The following table gives information about how the fair values of these financial assets and financial liabilities are determined (in particular, the valuation techniques and inputs used):

43 Reconciling the amount of revenue recognised in the statement of profit and loss with the contracted price:

Revenue from contracts with customer of current year does not have material amount towards performance obligations fulfilled in the previous year. During the previous year, the revenue from contracts with customer includes net revenue recognised for performance obligations fulfilled in the earlier years of ' (199.39 crores).

44 Performance obligation:

The transaction price allocated to the remaining performance obligations (excluding obligations towards operations and maintenance works beyond three years and non-moving orders) is ' 62,471.18 crores (March 31, 2024: ' 51,843.00 crores), which will be recognised as revenue over the respective project durations. Generally the project duration of contracts with customers is ranging 1 to 3 years.

45 The accounting software used for maintaining its books of account have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software, except that audit trail feature in respect of one of the accounting software is not enabled for certain changes made using access rights and/or the underlying SQL database. The Company has obtained relevant SOC reports from service organisation related to such accounting software and these reports do not highlight any other exception for the control objectives in scope of the reports. Further, there are no instance of audit trail feature being tampered with in respect of the accounting software. Additionally, the audit trail of prior year has been preserved by the Company as per the statutory requirements for record retention to the extent it was enabled and recorded in the respective years for one of the accounting software and in absence of specific mention of audit trail and its retention in the aforesaid SOC reports obtained for another accounting software, we are unable to assess whether the audit trail has been preserved as per the statutory requirements for record retention.

b) The Company has not received any fund from any persons or entities, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

48 No transactions made with the Struck off Companies in the current year (March 31, 2024: ' Nil).

50 No charges are pending for registration with Registrar of Companies (ROC) beyond the statutory period except for certain cases where the Company is yet to receive No Objection Certificate (NOC) from the lenders.