xix. Provisions and Contingent Liabilities

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

Provisions are measured at the present
value of management’s best estimate
of the expenditure required to settle
the present obligation at the end of the
reporting period. The discount rate
used to determine the present value is a
pre-tax rate that reflects current market
assessments of the time value of money
and the risks specific to the liability. The
increase in the provision due to the passage
of time is recognised as interest expense.

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

xx. Employee benefits

(i) Short term obligations

Liabilities for wages and salaries, including
non-monetary benefits that are expected
to be settled wholly within 12 months
after the end of the period in which the
employees render the related service
are recognized in respect of employees’
services up to the end of the reporting
period and are measured at the amounts
expected to be paid when the liabilities
are settled. The liabilities are presented as
current employee benefit obligations in
the Standalone Balance Sheet.

(ii) Other long term employee benefit
obligations

The liabilities for earned leave and sick
leave are not expected to be settled wholly
within 12 months after the end of the
period in which the employees render
the related service. They are therefore
measured as the present value of expected
future payments to be made in respect
of services provided by employees up to
the end of the reporting period using the
projected unit credit method. The benefits
are discounted using the market yields at
the end of the reporting period that have
terms approximating to the terms of the
related obligation. Remeasurements as
a result of experience adjustments and
changes in actuarial assumptions are
recognized in standalone statement of
profit and loss.

The obligations are presented as current
liabilities in the Standalone Balance
Sheet if the Company does not have an
unconditional right to defer settlement
for at least twelve months after the
reporting period, regardless of when the
actual settlement is expected to occur.

(iii) Post-employment obligations

The Company operates the following
post-employment schemes.

• Defined benefit plan i.e. gratuity

• Defined contribution plans such as
provident fund, superannuation etc.

Gratuity obligations (Also, Refer note

2(b))

The liability or asset recognized in the
Standalone Balance Sheet in respect of
defined benefit gratuity plan is the present
value of the defined benefit obligation
at the end of the reporting period
less the fair value of plan assets. The
defined benefit obligation is calculated
annually by actuaries using the projected
unit credit method.

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

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

Remeasurement gains and losses arising
from experience adjustments and changes
in actuarial assumptions are recognized in
the period in which they occur, directly
in other comprehensive income. They
are included in retained earnings in the
statement of changes in equity and in the
Standalone Balance Sheet.

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

Defined contribution plans

The Company pays contribution to
defined contribution schemes such as
provident fund etc. The Company has

no further payment obligation once
the contributions have been paid. The
contributions are accounted for as defined
contribution plans and the contributions
are recognized as employee benefit
expense when they are due.

Bonus plans

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

xxi. Contributed equity

Equity shares are classified as equity. Incremental
costs directly attributable to the issue of new
shares or options are shown in equity as a
deduction, net of tax, from the proceeds.

xxii. Dividends

Provision is made for the amount of any
dividend declared, being appropriately
authorised and no longer at the discretion of
the entity, on or before the end of the reporting
period but not distributed at the end of the
reporting period.

xxiii. Earnings per share

(i) Basic earnings per share

Basic earnings per share is
calculated by dividing:

• The profit attributable to owners of
the Company; and

• By the weighted average number of
equity shares outstanding during the
financial year, adjusted for bonus
elements in equity shares issued
during the year

(ii) Diluted earnings per share

Diluted earnings per share adjusts the
figures used in the determination of basic
earnings per share to take into account:

• the after income tax effect of
interest and other financing costs
associated with dilutive potential
equity shares, and

• the weighted average number of
additional equity shares that would
have been outstanding assuming
the conversion of all dilutive
potential equity shares.

xxiv. Rounding of amounts

All amounts disclosed in the standalone financial
statements and notes have been rounded off to
the nearest million as per the requirement of
Schedule III, unless otherwise stated.

2(b) Critical estimates and judgments

The preparation of the standalone financial
statements requires use of accounting estimates
which, by definition, will seldom equal the actual
results. Management also needs to exercise judgment
in applying the Company’s accounting policies.

This note provides an overview of the areas that
involved a higher degree of judgments 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.
Detailed information about each of these estimates
and judgments is included in relevant notes together
with information about the basis of calculation
for each affected line item in the standalone
financial statements.

The areas involving critical estimates
or judgments are:

(i) Estimation of useful life of Property, plant
and equipment

The Company estimates the useful life of the
Property, plant and equipment as mentioned
in note 2 (a) (xiii) above, which is based on the
expected technical obsolescence of such assets.
However, the actual useful life may be shorter
or longer than the life estimated, depending on
technical innovations and competitor actions.

(ii) Estimation of defined benefit obligation

The cost of the defined benefit gratuity plan
and other post-employment employee benefits
and the present value of the gratuity 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 and mortality rates. 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. The parameter most subject to change
is the discount rate. In determining the
appropriate discount rate for plans operated in
India, the management considers the interest
rates of government bonds in currencies
consistent with the currencies of the post¬
employment benefit obligation. The mortality
rate is based on publicly available Indian
Assured Lives Mortality (2012-14) Ultimate.
Those mortality tables tend to change only at
interval in response to demographic changes.
Future salary increases and gratuity increases
are based on expected future inflation rates for

the respective countries. Refer note 45 for key
actuarial assumptions.

(iii) Estimation of fair value of level 3 financial
instruments

The fair value of financial instruments that are
not traded in an active market is determined
using valuation techniques. The Company uses
its judgment to select a variety of methods and
make assumptions that are mainly based on
market conditions existing at the end of each
reporting period. Refer note 39 on fair value
measurements where the assumptions and
methods to perform the same are stated.

(iv) Revenue recognition for construction
contract - Refer note 2 (a) (iv) and note 53

(v) Impairment of trade receivables (including
Contract Assets) — Refer note 2(a) (ix) and
7,11, 16(a) and 40 (i)

(i) The investment properties consisted of commercial property in India given on cancellable and non cancellable leases for a
period of 1 to 11 months till March 31, 2025. During the year no lease contracts were in force.

(ii) The Company has no restrictions on the realisability of its investment property and no contractual obligation to develop or
for repair, maintenance and enhancements.

(iii) Amounts recognised in the Standalone statement of profit and loss for investment properties:

Leasing arrangements
(a) Operating leases

The Company had given certain investment properties on operating lease till March 31,2025. These lease arrangements
ranged for a period between one to eleven months and included both cancellable and non-cancellable leases. Most of the
leases were renewable for further period on mutually agreeable terms. With respect to non-cancellable operating lease,
the future minimum lease payment as at Balance Sheet date is as under (Refer Note 48 )

Estimation of fair value

The fair valuation is based on current prices in the active market for similar properties. Where such information is not
available, the Company considers information from a variety of sources including:

• Current prices in an active market for properties of different nature or recent prices of similar properties in less active
markets, adjusted to reflect those differences

• Discounted cash flow projections based on reliable estimates of future cash flows

• Capitalised income projections based upon a property’s estimated net market income, and a capitalisation rate derived
from an analysis of market evidence.

The Company has obtained independent valuations report of investment properties from registered valuers as defined under
rule 2 of Companies ( Registered Valuers & Valuation ) Rule, 2017. The main inputs used are quantum, area, location,
demand, rental growth rates, expected vacancy rates, terminal yields and discount rates.

Note A: The Company secures contracts by submitting bids in response to tenders. Subsequent to award of contract the
Company is required to form Special Purpose Vehicle ( "SPV" ) Companies (subsidiary companies ) to execute the awarded
projects. As at March 31, 2026 the Company has 74 SPVs (except for H.G. Berasar Solar Project Private Limited, H.G.
Foundation, H.G. Green Energy Private Limited (Formerly known as H.G. Solar Projects Private Limited) and H.G. Clean
Energy Solutions Private Limited) ( March 31, 2025: 62 SPVs) as above.

Note B: Terms of optionally convertible unsecured loan

The SPVs have a sole option / discretion to convert loans in whole to equity shares at any time during the tenure of loan. If
the conversion is exercised, loans shall be converted into a fixed number of equity shares at a fixed price of H 10 each. The
equity shares derived from the conversion of the loans shall rank pari passu with the existing shares of the SPVs with respect
to all rights therein and the Company shall have the same rights in respect of such shares as the other shares held by the
existing shareholder(s). Further, the SPVs have a sole option / discretion to redeem loans in whole at any time during the
tenure of the loans.

A description of Company's financial instrument risks, including risk management objectives and policies is given in Note
40. The methods used to measure financial assets reported at fair value are described in Note 39. Also refer note 56 (a).

Note :

1 : Trade receivables include retentions of H 705.83 Million ( March 31,2025: H 794.73 Million ) related to construction contracts.

2 : No trade receivables are due from directors or other officers of the Group either severally or jointly with any other person(s)

or firm(s) or private companies in which any director is a partner, a director or a member, respectively, except for an amount
of H 67.40 Million ( March 31, 2025: H 189.85 Million ).

Certain retention money receivables which are contractually due after one year, but can be released early on submission of bank
guarantee by the Company, have been considered as current considering the past history, the management's expectation and
control exercisable by the Company to recover such money.

(b) Terms and rights attached to equity shares

The Company has only one class of equity shares having face value of H 10 per share. Accordingly, all equity rank equally with
regard to dividends and share in the Company's residual assets. The equity shares are entitled to receive dividend as declared
from time to time. The dividend proposed by the board of directors is subject to the approval of shareholders in annual
general meeting. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to its share
of the paid-up equity capital that has not been paid. On winding up of the Company, the holders of equity shares will be
entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts in proportion
to the number of equity shares held.

As per the records of the Company, including its registers of shareholders (members) and other declarations received from
shareholders regarding beneficial interest, the above shareholding represents legal and beneficial ownerships.

(d) There are no shares allotted as fully paid up pursuant to contracts without being received in cash since incorporation.

(e) There are no shares which are reserved to be issued under options and there are no securities issues / outstanding which are
convertible into equity shares.

(f) No class of shares have been issued as bonus shares or for consideration other than cash by the Company during the period
of five years immediately preceding the current year end.

(g) No class of shares have been bought back by the Company during the period of five years immediately preceding the
current year end.

c) Secured vehicles loans from banks

All vehicles loans are secured by hypothecation of respective vehicles financed though the loan arrangements. ( Refer Note 46 )

d) Senior, rated, listed, unsecured, redeemable, non-convertible debentures (’Unsecured NCDs)

The Company issued, on a private placement basis, 40,000 Unsecured NCDs of face value of H 1,00,000 each, aggregating
to H 4,000.00 million, listed on BSE Limited. The NCDs carry a fixed coupon of 8.55% per annum payable semi-annually
(subject to a step-up / step-down of 25 basis points upon a change in credit rating) and are redeemable at par in two equal
instalments of 50% each on February 29, 2028 and August 29, 2028. The Debenture Trust Deed ("DTD") dated August 28,
2025 executed with Catalyst Trusteeship Limited (the "Debenture Trustee").

*1) Nature of Security in relation to Working Capital loans

a) Primary Security - First Pari Passu charge in favour of the Banks by way of Hypothecation of the Company's entire
current assets (present and future) including, but not limited to, stocks of raw materials, work in progress, finished
goods, stores and spares and receivables, margin money deposits, security deposits etc.

b) Collateral Security - First Pari Passu charge in favor of Banks by way of mortgage of certain identified immovable
properties of the Company and personal and corporate guarantors as per the collateral agreement.

Second Charge on movable fixed assets/equipments/machineries of the company lying at all projet sites, offices and any
other locations.

c) All the working capital loans are also secured by personal guarantee of Mr. Hodal Singh, Mr. Girishpal Singh,
Mr. Vijendra Singh, Mr. Harendra Singh, Mr. Shailesh Patel, Mr. Vaibhav Choudhary and Corporate Guarantee of M/s
Hotel Marudhar (Partnership Firm), M/s H.G. Luxury Hotels Private Limited, M/s H.G. Acerage Developers Private
Limited and M/s Valencia Leisure Private Limited, H.G. Atulyam Educare Private Limited and H.G. Ekaaya Resort
Private Limited.

During the previous year the Company submitted a request letter to the Lead Bank of the Consortium and obtained the
approval to restrict the liability of Corporate Guarantors to the extent of higher of:

1) The value of the immovable properties as on date of guarantee; (or)

2) The value of the immovable properties as per the latest valuation report obtained at the time of invocation from
valuer acceptable to the bank; (or)

3) The market value of the properties as on date of enforcement, subject to a floor value for guaranteed obligations.
Accordingly, the extent of guarantees given are mentioned in Note 44 against each of the guarantor."

d) The working capital loans are repayable on demand and interest rate on the above loan from banks in consortium are
linked to the respective bank base rate/ T bill Rate/ MCLR which are floating in nature. The interest rate ranges from
7.40% to 10.65% per annum on rupees working capital loans.

**2) The Loan from Directors - Mr. Harendra Singh and Mr. Vijendra Singh, is unsecured. Interest is charged on the outstanding
principal amount at 8.25% p.a.. The loan must be repaid within 7 days after the Directors issue a written notice of demand
to the Company. During the year such loan has been repaid whenever demand has been made by the lender.

3) Compliance of Debt Covenants (Refer note 41(c))

The Company has not defaulted of any loans payables during the year ended March 31, 2026.

Note - Refer Note 40 ( ii ) for liquidity risk management for all borrowings and Refer Note 46 for Assets pledged as security
for secured borrowings.

Note B - Supplier financing arrangement

a) Factoring

The Company implemented a supplier financing program available to its suppliers. Participation in this program is voluntary
for suppliers. Suppliers opting into this arrangement are eligible to receive early payment for invoices issued to the Company
through a third party financial institution. The suppliers pay a fee and/or interest to the financial institution for this early
payment service. To authorise early payments, the Company must first verify that the goods or services have been received
and that the related invoices have been approved. The financial institution processes early payments before the original
invoice due date. Regardless of early payment, the Company settles the full invoice amount directly with the financial
institution based on the original payment terms. This arrangement does not alter the existing payment terms with supplier.

Key terms and conditions of the arrangement are:

• The Company decides which invoices will be financed.

• The financier pays the supplier once the vendors present the invoices for factoring.

• The Company pays the financier as per the routine date of payment, based on the terms agreed in the invoice.

• The Company has not provided comparative information in respect of the amendments to Ind AS 7 and Ind AS 107 relating to supplier finance
arrangements, as it has applied the transitional relief available on initial adoption of these amendments, which allows entities not to present comparative
disclosures for prior periods.

b) Reverse Factoring

The Company has entered into a reverse factoring arrangement for its trade payables to micro, small and medium enterprises
(MSME suppliers or “sellers”). For this purpose, the Company, as “buyer”, has executed an agreement with Mynd Solutions
Private Limited and Receivable Exchange of India Limited (the “Exchanges”) for supplier financing. The Exchanges act as an
Intermediary that connect the buyer, the seller, and participating financiers on a common platform for the factoring or reverse
factoring of invoices. The primary objective of this facility is to ensure MSME suppliers are paid by their statutory due dates
while enhancing the Company’s working capital position through access to financing.

Key terms and conditions of the arrangement are:

• The Company decides which invoices will be financed.

• The financier pays the supplier once the vendors present the invoices for factoring.

• The Company pays the financier as per the routine date of payment, based on the terms agreed in the invoice.

Amounts are reclassified from trade payables to borrowings once those trade payables become part of supplier finance
arrangement. This reclassification is treated as a non-cash change, as no cash payment occurs at that point.

The trade payables subject to the supplier financing program described above are included in current borrowings in the
standalone balance sheet. Refer note 21.1 for details of interest and other terms and conditions.

* Investments in subsidiaries and associates classified as equity investments have been accounted at historical cost. Since these are scope out of Ind AS 109
"Financial Instruments" for the purposes of measurement, the same have not been disclosed in the tables above.

**’The Investment in H.G. Khammam Devarapalle Pkg-1 Private Limited ( currently classfied as Asset held for sale ) has been recognised at historical cost.
The fair value as per note 56 ( b ) has been determined at price per share in accordance with the terms and conditions agreed with the buyer.

(ii) Fair value hierarchy

This section explains the judgments and estimates made in determining the fair value of the financial instruments that are
measured at amortised cost and for which fair value are disclosed in the Standalone financial statements.

Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices. This includes instruments like listed
equity instruments, traded bonds and mutual funds that have quoted price.

The carrying amounts of short term loans, trade receivables, cash and cash equivalents, bank balances other than cash and
cash equivalents, other receivables, trade payables, current borrowings, interest accrued, capital creditors and other payables
are considered to be the same as their fair value due to their short-term nature. The impact of fair value on non-current
financial assets and non-current financial liabilities ( including borrowings, as disclosed above ) is not expected to have
material impact on the standalone financial statements, hence not dislcosed above.

The fair value of security deposits were not calculated based on their future cash flows discounted at current lending rate as
these security deposits are expected to continue to remain till the existence of the Company.

Note 40 - Financial Risk Management

The Company’s activities expose it to a variety of financial risks namely credit risk, liquidity risk and market risk. The Company’s
focus is to foresee the unpredictability offinancial markets and seek to minimize potential adverse effects on its financial performance.

(i) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. Financial instruments that are subject to credit risk and concentration thereof principally consist of
trade receivables, contract assets, security deposits, deposit with banks, loans, others receivables and cash and cash equivalents.

Impairment of Financial Assets :

The Company has three types of financial assets that are subject to expected credit loss model:

1. Trade Receivables for construction contracts

2. Contract Assets relating to construction contracts

3. Loans and Other receivables

While deposits with banks are subject to impairment requirements of Ind AS 109, the identified impairment on these
assets is not material.

For Trade receivables and Contract assets for construction contracts : The Company’s exposure to credit risk from
trade receivables is driven primarily by the individual characteristics of each customer, together with the broader factors
affecting its customer base. Ageing of trade receivables and contract assets is disclosed in Table below. The customer
profile comprises public sector enterprises, state-owned companies, group companies and corporate customers.
Payment terms generally comprise a mobilisation advance and monthly progress payments, with credit periods ranging
up to 90 days.

The Company operates a multi-level review mechanism over customer receivables to ensure focused attention on
realisation. Credit risk is considered limited, as a significant portion of the customer base comprises government-
promoted entities with strong creditworthiness. The expected credit loss provision matrix incorporates available external
and internal credit risk indicators, including the Company’s historical collection experience across its customers.

For Loans and Other receivables : The Company's investments in debt instruments and certain loans are considered
to be low risk investments.

(A) The following table gives details in respect of percentage of revenue generated from government promoted agencies and
private corporates:

The Company secured contracts by submitting bids in response to tenders in terms of which it is required to form
Special Purpose Vehicle ( SPV ) Companies ( Subsidiary Companies ) to execute the awarded projects. As at March 31,
2026 the Company has 11 SPVs ( As at March 31, 2025 the Company had 12 SPVs ), related to road development
business operations, who have received contracts from government promoted agencies and revenue related to SPVs for
work executed by the Company has been grouped in Revenue from government promoted agencies. Besides above, the
Company has 63 SPVs (As at March 31, 2025 the Company had 50 SPVs), which are engaged into business of generating
and transmitting power to external customers, which are government promoted agencies too. The construction work
relating to PPE of those SPVs has been executed by the Company and the related revenue has been grouped as revenue
from private corporates.

The movement in allowance for expected credit loss on trade and other receivables including contract assets is as below:

(ii) Liquidity risk

Liquidity risk defined is as the risk that the Company will not be able to settle or meet its obligations on time or at a
reasonable price. Company's objective is to, at all time maintain optimum levels of liquidity to meet its financial obligations.
The Company manages liquidity risk by maintaining sufficient cash and cash equivalents and by having access to funding
through an adequate amount of committed credit lines. In addition, processes and policies related to such risks are overseen
by senior management.

Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities
below) and cash and cash equivalents on the basis of expected cash flows. This is generally carried out at by senior management
in accordance with practice and limits set by the Company. These limits take into account the liquidity of the market in
which the entity operates. In addition, the Company’s liquidity management policy involves projecting cash flows in major
currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against
internal and external regulatory requirements and maintaining debt financing plans.

Financing arrangements

The Company had access to the following undrawn borrowing facilities at the end of the reporting period:

The bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice. Subject to the
continuance of satisfactory credit ratings and compliance of financial and other covenants.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due for less than 1 year, equal their
carrying balances as the impact of discounting is not significant.

*Guarantee issued by the Company to the bankers on behalf of H.G. Raipur Visakhapatnam AP-1 Private Limited is with respect to limits availed by it.
These amounts will be payable in case of default by the respective subsidiary. As of the reporting date, the subsidiary companies have not defaulted and
hence, the Company does not have any present obligation to third parties in relation to such guarantee.

(iii) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises two types of risks i.e. interest rate risk and currency risk. Financial instruments affected
by market risk include borrowings and creditors for capital expenditures.

(a) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes
in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates is insignificant
and relates primarily to the Company’s creditors for capital expenditures. The Company’s foreign currency risks are
identified, measured and managed at periodic intervals in accordance with the Company’s policies. As at March 31,
2026, Company's foreign currency exposure amounts to H Nil ( March 31, 2025 H Nil ).

(b) Interest 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 risk of changes in market rate is limited to short term
working capital loans at variable rate taken from banks as the Company's long term borrowings bear fixed interest rate.

Note 41 - Capital Management

(a) Risk Management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves
attributable to the equity holders of the Company and borrowings.

The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to
optimise returns to our shareholders. The capital structure of the Company is based on management’s judgement of the
appropriate balance of key elements in order to meet its strategic and day-to day needs. We consider the amount of capital in
proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of
the underlying assets.

The Company’s aim is to translate profitable growth to superior cash generation through efficient capital management. The
Company's policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor,
creditors and market confidence and to sustain future development and growth of its business. The Company will take
appropriate steps in order to maintain, or if necessary adjust, its capital structure.

Note 42 - Segment Reporting

In terms of Paragraph 4 of Ind AS 108 ‘Operating Segments’, the detailed segment disclosures have been presented in the
consolidated financial statements.

(i) Information about geographical areas

The Company’s activities are predominantly within India and hence no separate geographical segment disclosure is
considered necessary.

(ii) Information about major customers

For the year ended, March 31,2026, the Company has two major customers constituting 51% and 13% of total Company’s
revenue. Correspondingly, these customers constitute 38% and 29% for the year ended, March 31, 2025.

D) Terms and conditions

All Related Party Transactions entered during the year were in ordinary course of the business and are on arm’s length basis.
All outstanding balances are unsecured and repayable in cash.

Allowance for expected credit loss amounting to H 246.81 Million (March 31, 2025 : H 131.05 Million) has been
recognised during the year in respect of receivable due from related parties.

(i) Compensated Absences

The employees of the Company are entitled to compensated absences as per the policy of the Company. However, based on
past experience, the Company does not expect all employees to take the full amount of accrued leave or require payment
within the next 12 months. The following amounts reflect leave that is not expected to be taken or paid within the next 12
months. Accordingly, these compensated absences have been classified as Non current liabilities as at March 31, 2026.

(ii) Post employment obligations

(a) Defined Contribution Plans:

Provident fund

Employers’ contribution to employees’ pension scheme 1995
Employers’ contribution to Employee State Insurance Corporation ( ESIC )

The provident fund and pension scheme are operated by regional provident fund commissioner. Under the scheme,
the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to
fund the benefits.

(b) Defined Benefit Obligations:

Gratuity

The Company operates a defined benefit gratuity plan for its employees in India in accordance with the Payment of
Gratuity Act, 1972. The new Labour Codes introduced by the Government of India, inter alia, require gratuity to be
calculated based on wages constituting at least 50% of total remuneration. This has resulted in an increase in gratuity
benefits in respect of services rendered in prior periods, and accordingly, the company has recognised past service
cost amounting to INR 14.48 Million during the year. In accordance with Ind AS 19, the past service cost has been
recognised in the statement of profit and loss in the current year in which the plan amendment became effective.

The gratuity obligation has been actuarially valued by an independent actuary using the projected unit credit method,
considering the revised definition of wages for gratuity computation.

The amounts recognised in the Balance Sheet and the movements in the net defined benefit obligation over the year
are as follows:

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In
practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. The methods and types of
assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

(iii) The major categories of plans assets are as follows:

The plan asset for the funded gratuity plan is administered by Life Insurance Corporation of India ('LIC'), Aditya Birla
Sun Life Insurance Company Limited ('ABSLI') & SBI Life Insurance Company Limited ('SBI Life') as per the investment
pattern stipulated for Pension and Group Schemes fund by Insurance Regulatory and Development Authority regulations i.e.
100% of plan assets are invested in insurer managed fund. Quoted price of the same is not available in active market.

(iv) Risk Exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are
detailed below:

Demographic Risk : This is the risk of variability of results due to unsystematic nature of decrements that include mortality,
withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward
and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate
withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as
compared to a long service employee.

Asset volatility : The defined benefit plan liabilities are calculated using a discount rate set with reference to bond yields;
if plan assets underperform this yield, this will create a deficit. 100% of the plan asset investments is in insurer managed
funds. These are subject to interest rate risk and the fund manages interest rate risk with derivatives to minimise risk to an
acceptable level.

Salary Inflation Risk : Higher than expected increases in salary will increase the defined benefit obligation.

(v) Defined Benefit Obligations and Employer Contributions

The Company considers that the contribution rates set at the last valuation date are sufficient to eliminate the deficit over the
agreed period and that regular contributions, which are based on service costs, will not increase significantly.

Expected contributions to defined benefit plans for the year ending March 31, 2027 are H 238.84 Million ( March 31, 2026
H 143.92 million).

The weighted average duration of the defined benefit obligation is 4.09 years (March 31, 2025: 3.06 years). The expected
maturity analysis of undiscounted gratuity is as follows:

Note 48 - Disclosure of operating leases under Ind AS 116

The Company rents out its equipments and flats ( classified in investment property ) on operating lease basis. These lease arrangements
range for a period between one to eleven months and include both cancellable and non-cancellable leases. Most of the leases are
renewable for further period on mutually agreeable terms. There are no contingent rents recognised as income in the period.

Note 50 - Loan and Investment in subsidiaries

The Company has been legally advised that outstanding loan aggregating to H 120.14 Million ( March 31, 2025, H 4.67 Million)
and Investments in instruments entirely equity in nature aggregating to H 13,121.24 Million ( March 31, 2025, H 8,542.57
Million) made towards financing the subsidiary do not come under the preview of Section 186 of Companies Act, 2013 as the
company is in the business of constructing and developing infrastructure facilities.

Note 52 - Impact of New Labour Law

The Government of India has consolidated 29 existing labour legislations into a united framework comprising four Labour Codes
viz Code on Wages, 2019, Industrial Relations Code, 2020, Code on Social Security, 2020, and Occupational Safety, Health and
Working Conditions Code, 2020 (collectively referred to as ‘the New Labour Codes’). The New Labour Codes have been made
effective from November 21, 2025. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable
assessment of the financial impact due to changes in regulations.

Basis the Company’s assessment, incremental impact aggregating to Rs.14.48 Million and Rs. 6.34 Million has been recognsied
as Employee Benefits Expense in the standalone financial statements for Gratuity and Compensated absences, respectively. The
Company continues to monitor the finalization of Central/State rules and clarifications from the Government on other aspects of
the New Labour Codes and would provide appropriate accounting effect on the basis of such developments, as needed.

The Company recognised revenue amounting to H 2,985.96 Million ( March 31, 2025 H 2,399.64 million ) in the current
reporting period that was included in the contract liability balance of previous year ( Refer Note 16 (b) ).

Note 53.2 - Unsatisfied performance obligations

The aggregate amount of transaction price allocated to performance obligations that are unsatisfied as at the end of reporting
period is H 1,01,470.62 Million (as at March 31, 2025 H 1,52,812.28 Million), primarily represented by Construction Contracts
including Road projects and Railways contracts. These contracts have a life cycle of 2-3 years. Management expects that around
45% - 50% of the transaction price allocated to unsatisfied contracts as of March 31, 2026 will be recognised as revenue during
next reporting period depending upon the progress on each contracts.

Note: The amount disclosed above does not include variable consideration.

Note 53.3 - There are no reconciliation items between revenue from contracts with customers and revenue recognised with
contract price.

Note 54 - Disclosure of operating leases under Ind AS 116

Leases as lessee

The Company has obtained premises ( office, residential and Camp ) and equipments taken on lease. The terms of lease include
terms of renewals, increase in rent in future period, cancellation, etc. The agreements are executed for a period of 1 month to 36

Note 56 - Exceptional items and Investments classified as held for sale

(1) During the year, the Board of Directors in their meeting held on August 13, 2025, have inter alia, considered and approved
the proposal of divestment of 100% investment in five of its wholly owned subsidiaries, namely,

i. H.G. Khammam Devarapalle PKG-1 Private Limited

ii. H.G. Khammam Devarapalle PKG-2 Private Limited

iii. H.G. Raipur Visakhapatnam OD-5 Private Limited

iv. H.G. Raipur Visakhapatnam OD-6 Private Limited

v. H.G. Raipur Visakhapatnam AP-1 Private Limited

Pursuant to such approval, the Company and acquirer (collectively referred to as ‘the parties’) had executed the Share Purchase
Agreement (‘SPA’) in relation to the sale of the aforesaid subsidiaries. Further, the parties have agreed upon modification of
few terms and conditions, including achievement of PCOD/COD. The SPA, read together with the amendments, specify
the closing conditions, which includes approval from the lenders, the customers and the regulatory authorities.

a. The Company transferred its 100% shareholding in one of the subsidiary i.e. H.G. Khammam Devarapalle PKG-2
Private Limited on March 20, 2026 for a total consideration amounting to H 1,077.70 Million. The resultant gain of H
419.36 Million has been recorded as exceptional item in the standalone financial statements.

b. The Company also transferred its 49% shareholding in one of the subsidiary i.e. H.G. Khammam Devarapalle PKG-1
Private Limited on March 30, 2026 for a consideration amounting to Rs. 682.72 Million. Accordingly, a gain of Rs.
292.07 Million has been recorded as exceptional item in the standalone financial statements.

Further, considering the modified terms and conditions, as referred above, the Company has evaluated such terms/
conditions, together with the facts, and concluded that it does not exercise control over the entity. The remaining
investment, therefore, has been recognise an fair value in accordance with para 25 of IND AS 110, “Consolidated
Financial Statements”.

c. The Company has assessed the terms and conditions in SPA, together with modified terms, and concluded that
Investment in its subsidiary (H.G. Raipur Visakhapatnam OD-6 Private Limited) be classified as held for sale in
accordance with Ind AS 105,"Non-current Assets Held for Sale and Discontinued Operations". This subsidiary has
been disposed off on April 23, 2026. Regarding the other subsidiaries, as referred above which are yet to be disposed
off, the Company has assessed and concluded that the conditions for classification of investments (pursuant to such
subsidiaries) as held for sale, are not met.

(2) During the previous year, pursuant to the share purchase agreement (SPA) dated May 03, 2023, the Company sold its entire
shareholding in H.G. Rewari Bypass Private Limited on February 20, 2025, for a total sale consideration amounting to
Rs. 1,330.72 Million. The resultant gain of Rs. 573.71 Million has been disclosed as an exceptional item in the standalone
financial statements for the year ended March 31, 2025.

Note 57 - Additional regulatory information required by Schedule III

(i) Details of benami property held

No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) Borrowing secured against current assets

During the year the Company has been sanctioned working capital limits in excess of Rs. 50 Million, in aggregate, from
banks on the basis of security of current assets and certain identified immovable properties. Basis discussion between
the Company and the respective lenders, the Company has been filing quarterly statements on mutually agreed basis for
reporting, related to adjusted balances of Accounts receivables (excluding withheld balances of the respective debtors),
Accounts payable (excluding payables to service vendors, provisions and balance for retention payable), Inventory (except
Goods in Transit), Contract assets (upto 3 months outstanding), Advance to suppliers, Mobilisation Advances. The original
statements for the quarter ended June, 2025 and September, 2025, filed by the Company on November 15, 2025, were
not agreement with the unaudited books of account of the Company for such respective quarters. Details of the same
are as below.

Subsequently, the Company has filed revised statements for the above-mentioned quarters along with the original statement
for the quarter ended December, 2025, on May 20, 2026. These statements are in agreement with the unaudited books

of account. Further, as on the date of this report, the Company is yet to file quarterly statement for the quarter ended
March 31, 2026.

(iii) Wilful defaulter

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

(iv) Relationship with struck off companies

The Company has transactions during the year with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of the Companies Act, 1956.

(vi) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the
Companies (Restriction on number of Layers) Rules, 2017.

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

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

(viii) Undisclosed income

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

(ix) Details of crypto currency or virtual currency

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

(x) Valuation of PPE, intangible asset and investment property

The Company has not revalued its property, plant and equipment (including right-of-use assets), Investment Property or
intangible assets or both during the current or previous year.

(xi) Title deeds of immovable properties not held in name of the company

The title deeds of all the immovable properties (other than properties where the company is the lessee and the lease agreements
are duly executed in favour of the lessee), as disclosed in Note 3(a) to the standalone financial statements, are held in the name
of the Company.

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

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

(xiii) The Company has a fund and non fund based facility limit of H 52,000 Million ( March 31, 2025 : H 45,000 Million) with
Bank which is secured by way of first charge on hypothecation of current assets viz. raw materials, stores and spares and
receivables and certain identified immovable properties.

The Company has utilised the fund and non fund based facility during the FY 2025-26 and FY 2024-25 for working
capital purposes.

Further, the charge has been created on hypothecation of the aforesaid current assets and immovable properties.

a) The net debt to equity ratio for the current year increased on account of availment of short term borrowings for payments to
vendors ( including related parties ).

b) The ratio has declined as a direct affect of overall operational profitability of the Company.

c) The ratio has declined on account oflower COGS during the year, however the average inventory has not changed significantly.

d) The ratio has declined on account of higher closing A/R for customers and lower revenue during the year.

e) The ratio has declined because of increase in supplier credit finance - Factored payables, for which the payment period

generally ranges from 60-90 days.

f) The ratio has increased because lower working capital as of current year and as compared to previous year end (on account of
reclassification of Unsecured NCDs to current liabilities).

Note 57 (xv) - Utilisation of borrowed funds and share premium

The Company has not advanced or given loans or invested funds to any other person or entity, including foreign entities

(Intermediaries) with the understanding that the Intermediary shall:.

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

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the

understanding (whether recorded in writing or otherwise) that the Company shall:

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

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

Note 58 - Ongoing regulatory matter

The Central Bureau of Investigation (‘CBI’), Anti-Corruption Bureau, Patna (‘ACB’) (hereinafter referred to as ‘the agency’) has
taken into custody four employees of the Company on January 21, 2026 pursuant to a FIR dated January 21, 2026 invoking
Sections 7, 7A, 8 and 9 of the Prevention of Corruption Act, 1988. Also, the agency has conducted search at a few offices of the
Company and residence of Chairman and Managing Director (‘CMD’). The agency has also confiscated cash amounting to H0.77
million from one out of the four employees (as mentioned above) which was reflected in the books and has been considered as
recoverable in the standalone financial statements. Cash amounting to H 0.93 million has also been confiscated from the CMD’s
residence which belongs to his personal funds.

The Hon’able court extended bail to all the four employees of the Company. No charge sheet has yet been filed by the investigating
agency against the Company or its employees in relation to the said FIR.

Based on the recommendation of the audit committee, the Company has appointed external firm to review few aspects
related to the matter.

While the uncertainty remains as matter is sub-judice, based on the management’s assessment, the opinion of the lawyer appointed
by the Company and outcome of external firm’s report, as mentioned above, the Company has assessed and concluded that there
is no impact on these standalone financial statements. There has not been any impact on the operations and financial position
of the Company.

Note 59

Previous year figures have been regrouped/reclassified, wherever necessary, to conform to the current year’s classifications.