2.17 Provisions

Provisions are recognised only when:

a) An entity has a present obligation (legal or
constructive) as a result of a past event

b) It is probable that an outflow of resources embodying
economic benefits will be required to settle the
obligation; and

c) A reliable estimate can be made of the amount of the
obligation.

Reimbursement expected in respect of expenditure
required to settle a provision is recognised only
when it is virtually certain that the reimbursement
will be received.

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.

2.18 Contingent liability, Contingent Assets and

Commitments

i) Contingent liability is disclosed in case of

a) A present obligation arising from past events,
when it is not probable that an outflow
of resources will be required to settle the
obligation

b) A present obligation arising from past events,
when no reliable estimate is possible.

ii) Contingent assets are disclosed where an inflow of
economic benefits is probable.

iii) Commitments are future liabilities for contractual
expenditure. Commitments are classified and
disclosed as follows:

a) Estimated amount of contracts remaining to be
executed on capital account and not provided
for

b) Other non-cancellable commitments, if any,
to the extent they are considered material and
relevant in the opinion of management.

c) Other commitments related to sales/
procurements made in the normal course of
business are not disclosed to avoid excessive
details.

Contingent liabilities, Contingent assets and
Commitments are reviewed at each Balance Sheet
date.

2.19 Revenue recognitionAccounting for Construction contracts

The Company constructs infrastructure projects on
behalf of clients. Delivering the project as per the
contractual terms is the only performance obligation that
has been identified. Under the terms of the contracts, the
company will perform its obligations on time to time as
per the timing schedule indicated in the contract with
the asset having no alternative use to the entity and
the company having an enforceable right to receive
payment for the work done. Hence, Revenue is therefore
recognized over time on a cost to cost method, i.e. based
on the proportion of contract costs incurred for the
work performed to date relative to the estimated total
contract costs. The management considers that this
input method is an appropriate measure of the progress
towards complete satisfaction of these performance
obligations under Ind AS 115.

Provisions for estimated losses, if any, on uncompleted
contracts are recorded in the period in which such
losses become probable based on the expected contract
estimates at the reporting date.

As per the contract, when there is a right to consideration
in exchange for goods or services that have been
transferred to a customer when that right is conditioned
on something other than the passage of time, a contract
asset is recognised to the extent of the consideration due.

Similarly, when there is an obligation to transfer goods or
services to a customer for which the entity has received
consideration from the customer, a contract liability is
recognised to the extent of the obligation.

Accounting for Claims

Claims are accounted as income in the period of receipt
of arbitration award and acceptance by client. Interest
awarded, being in the nature of additional compensation
under the terms of the contract, is accounted as other
Income on receipt of arbitration award and acceptance
by client.

Other Income

Interest income: Finance income is accrued on a time
proportion basis, by reference to the principal outstanding
and the applicable Effective interest rate (EIR). Other
income is accounted for on accrual basis. Where the
receipt of income is uncertain, it is accounted for on
receipt basis.

Dividend income: Dividends are recognised in profit or
loss only when the right to receive payment is established,
it is probable that the economic benefits associated with
the dividend will flow to the company, and the amount of
the dividend can be measured reliably.

Other Items of Income: Other items of income are
accounted as and when the right to receive arises and
it is probable that the economic benefits will flow to the
company and the amount of income can be measured
reliably.

2.20 Employee benefits

a) Short term employee benefits:

All employee benefits falling due wholly within
twelve months of rendering the service are classified
as short-term employee benefits. The benefits like
salaries, wages, and short term compensated
absences etc. Expenses on non-accumulating
compensated absences are recognised in the period
in which the absences occur.

b) Post-employment benefits:

i. Defined contribution plans: The state
governed provident fund scheme, employee
state insurance scheme and employee pension
scheme are defined contribution plans. The
contribution paid/payable under the schemes
is recognised during the period in which the
employee renders the related service.

ii. Defined benefit plans: The employees’ group
gratuity fund schemes are managed by Life
Insurance Corporation of India (L.I.C), and
post-retirement provident fund scheme are the
Company’s defined benefit plans. The present
value of the obligation under such defined
benefit plans is determined based on actuarial
valuation using the Projected Unit Credit
Method.

The obligation is measured at the present value
of the estimated future cash flows. The discount
rate used for determining the present value of the
obligation under defined benefit plans, is based
on the market yield on government securities of a
maturity period equivalent to the weighted average
maturity profile of the related obligations at the
Balance Sheet date.

Re measurement, comprising actuarial gains and
losses, the return on plan assets (excluding net
interest) and any change in the effect of asset
ceiling (wherever applicable) are recognised in other
comprehensive income and is reflected immediately
in retained earnings and is not reclassified to profit
and loss.

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 statement of profit and loss.

I n case of funded plans, the fair value of the plan
assets is reduced from the gross obligation under
the defined benefit plans to recognize the obligation
on a net basis.

Gains or losses on the curtailment or settlement of
any defined benefit plan are recognised when the
curtailment or settlement occurs. Past service cost
is recognised as expense at the earlier of the plan
amendment or curtailment and when the Company
recognizes related restructuring costs or termination
benefits.

2.21 Taxes on Income

I ncome tax comprises of current and deferred tax. It is

recognized in profit or loss except to the extent that it

relates to an item recognized directly in equity or in other

comprehensive income.

i. Current tax

Current tax comprises the expected tax payable or
receivable on the taxable income or loss for the year
and any adjustment to the tax payable or receivable
in respect of previous years. The amount of current
tax reflects the best estimate of the tax amount
expected to be paid or received after considering
the uncertainty, if any, related to income taxes. It is
measured using tax rates (and tax laws) enacted or
substantively enacted by the reporting date.

Current tax assets and current tax liabilities are
offset only if there is a legally enforceable right to
set off the recognised amounts, and it is intended to
realise the asset and settle the liability on a net basis
or simultaneously.

ii. Deferred tax

Deferred tax is recognised on temporary differences
between the carrying amounts of assets and liabilities
in the financial statements and the corresponding
tax bases used in the computation of taxable profit.
Deferred tax liabilities are generally recognised
for all taxable temporary differences. Deferred tax
assets are generally recognised for all deductible
temporary differences to the extent that it is
probable that taxable profits will be available against
which those deductible temporary differences can
be utilized. Such deferred tax assets and liabilities
are not recognised if the temporary differences arise
from the initial recognition (other than in a business
combination) of assets and liabilities in a transaction
that affects neither the taxable profit nor the
accounting profit. In addition, deferred tax liabilities
are not recognised if the temporary difference arises
from the initial recognition of goodwill.

The carrying amount of deferred tax assets is
reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable
that sufficient taxable profits will be available to allow
all or part of the asset to be recovered. Deferred tax
assets and liabilities are measured at the tax rates
that are expected to apply in the period in which
the liability is settled or the asset realised, based on
tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting
period.

2.22 Foreign currencies

a) The Functional Currency of the Company is Indian
Rupees (INR), and these financial statements are
presented in Indian rupees (Lakhs).

b) Foreign Currency transactions are recorded on
initial recognition in the reporting currency, using the
exchange rate on the date of the transaction.

c) At each Balance Sheet date, foreign currency
monetary items are reported using the closing rate
or at amount likely to be realized from or required
to disburse. Exchange differences that arise on
settlement of Long Term monetary items or on
reporting of Long Term Monetary items at each
Balance sheet date, at the closing rate are charged
to Statement of Profit and loss.

2.23 Cash Flow Statement

The Cash flow statement is prepared in accordance with
Ind AS 7 by using indirect method by segregating as cash
flows from operating, investing and financing activities.
Under the Cash flow from operating activities, the net
profit is adjusted for the effects of Non-cash items,
Changes in working capital and other items for which the
cash effects are investing or financing cash flows.

Cash and cash equivalents (including bank balances) are
reflected as such in the Cash Flow Statement.

Cash comprises cash on hand. Cash equivalents are
balances with banks including cheques on hand and
short-term balances (with an original maturity of three
months or less from the date of acquisition).

2.24 Dividend to equity shareholders

Dividend to equity shareholders is recognised as a liability
and deducted from shareholders equity, in period in which
the dividends are approved by the equity shareholders in
general meeting.

2.25 Earnings per share

a) Basic Earnings per share

Basic earnings per share are calculated by dividing:

• the profit attributable to owners of the company

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

b) Diluted earnings per share

Diluted earnings per share adjust 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.

2.26 Borrowing Costs

Borrowing costs include interest expense calculated
using the effective interest method. Borrowing costs
that are attributable to the acquisition, construction or
production of a qualifying asset are capitalized as part
of cost of such asset till such time the asset is ready for
its intended use or sale. A qualifying asset is an asset
that necessarily requires a substantial period of time to
get ready for its intended use or sale. All other borrowing
costs are recognised in profit or loss in the period in which
they are incurred.

2.27 Exceptional Items

Exceptional Items represents the nature of transactions
which are not in recurring nature during the ordinary
course of business but lead to increase / decrease in
profit / loss for the year.

2.28 Key accounting estimates and judgements

The preparation of these financial statements in
conformity with Ind AS requires the management to make
estimates and assumptions considered in the reported
amounts of assets, liabilities (including contingent
liabilities), income and expenses. The Management
believes that the estimates used in preparation of the
financial statements are prudent and reasonable. Actual
results could differ due to these estimates and the
differences between the actual results and the estimates
are recognized in the periods in which the results are
known / materialize. Estimates include the property
plant and equipment, inventory; future obligations in
respect of retirement benefit plans, provisions, fair value
measurement and taxes etc.

a) Revenue Recognition

The Company follows the percentage completion
method, based on the proportion that contract cost
incurred as on reporting date to the total estimated
contract cost including escalations/variations, this
method is followed when reasonably dependable
estimates of costs applicable to various elements
of the contract can be made. Key factors that
are reviewed in estimating the future costs to
complete include estimates of future labor costs
and productivity efficiencies. Because the financial
reporting of these contracts depends on estimates

that are assessed continually during the term of
these contracts, recognized revenue and profit are
subject to revisions as the contract progresses to
completion. When estimates indicate that a loss will
be incurred, the loss is provided for in the period in
which the loss becomes probable.

b) Property, plant and equipment

The company reviews the estimated useful lives of
property plant and equipment at the end of each
reporting period. During the current year, there has
been no change in life considered for the assets.

c) Fair value measurement of financial instruments

When the fair values of financials assets and
financial liabilities recorded in the Balance Sheet
cannot be measured based on quoted prices in
active markets, their fair value is measured using
valuation techniques, including the discounted cash
flow model, which involve various judgements and
assumptions.

d) Leases

The Company evaluates if an arrangement qualifies
to be a lease as per the requirements of Ind AS
116. Identification of a lease requires significant
judgment. The Company uses significant judgement
in assessing the lease term including anticipated
renewals and the applicable discount rate

The Company determines the lease term as the
non-cancellable period of a lease, together with both
periods covered by an option to extend the lease
if the Company is reasonably certain to exercise
that option; and periods covered by an option to
terminate the lease if the Company is reasonably
certain not to exercise that option.

I n assessing whether the Company is reasonably
certain to exercise an option to extend a lease,
or not to exercise an option to terminate a lease,
it considers all relevant facts and circumstances
that create an economic incentive for the Company
to exercise the option to extend the lease, or not
to exercise the option to terminate the lease. The
Company revises the lease term if there is a change
in the non-cancellable period of a lease. The discount
rate is generally based on the incremental borrowing
rate.

e) Provision for employee benefits

The Company uses actuarial assumptions to
determine the obligations for employee benefits at
each reporting period. These assumptions include
the discount rate, expected long-term rate of return
on plan assets, rate of increase in compensation
levels and mortality rates.

f) Income Taxes

Significant judgments are required in determining
the provision for income taxes, including the amount
expected to be paid/ recovered for uncertain tax
positions.

g) Estimation of net realisable value of inventories

In estimating the net realisable value of Inventories
the Company makes an estimate of future selling
prices and costs necessary to make the sale.

h) Impairment of trade receivables and advances

Significant estimates are required in ascertaining
the provision to be made for impairment of trade
receivables and advances.

2.29 Recent Accounting Pronouncements

Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. For the year ended March 31,
2026, MCA has notified the following amendments to the
existing standards applicable to the Company.

i. Ind AS 1 - Presentation of Financial Statements

ii. Ind AS 7 - Statement of Cash flows

iii. I nd AS 21 - The effects of changes in foreign

currency exchange rates

iv. Ind AS 107 - Financials Instruments

The Company believes that the aforementioned
amendments will not materially impact the financial
statements of the Company

4 | INVESTMENTS (CONTD.)_

4.3 5,33,333 Shares (P.Y. 5,33,333) equity share have been pledged with SBI Cap Trustee services Limited for the term loan availed
by KNR Guruvayur Infra Private Limited

4.4 5,73,750 Shares (P.Y. 5,73,750) equity share have been pledged and 5,50,762 shares (P.Y. 5,50,762 shares) are given under non
disposable undertaking with Catalyst Trustee services Limited for the term loan availed by KNR Ramanattukara Infra Private
Limited

4.5 2,45,183 Shares (P.Y. 2,45,183) equity share have been pledged and 2,35,077 shares (P.Y. 2,35,077 shares) are given under non
disposable undertaking with Axis Trustee services Limited for the term loan availed by KNR Ramagiri Infra Private Limited

4.6 510 Shares (P.Y. 510) equity share have been pledged with Axis Trustee services Limited for the term loan availed by KNR
Sriranganatha Infra Private Limited

4.7 510 Shares (P.Y. 510) equity share have been pledged with Catalyst Trustee services Limited for the term loan availed by KNR
Kaveri Infra Private Limited

4.8 2,23,125 Shares (P.Y. 510) equity share have been pledged with SBI Cap Trustee services Limited for the term loan availed by
KNR Ramatheertham Infra Private Limited

15 | EQUITY SHARE CAPITAL (CONTD.)_

Terms/ Rights attached to equity shares

The Company has only one class of shares referred to as equity shares having a par value of ' 2/- . Each holder of equity shares
is entitled to one vote per share.

The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting.

The Board of Directors has proposed in their meeting held on May 29, 2026 dividend of ' 0.25/- per fully paid equity share of
' 2/- each.

During the year ended March 31,2026, the Company paid the final dividend of ' 0.25/- per equity share for the year ended March
31,2025 amounting to ' 703.09 crore.

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

17.1 Working Capital Facilities: Cash Credit facilities from consortium of banks are secured by:

a. Hypothecation of all chargable current assets on pari passu basis with other participating banks

b. First pari passu charge on equitable mortgage of certain land & buildings

c. Hypothecation of certain movable fixed assets of the Company, which are not encumbered/charged to the term lenders

d. First pari passu charge on fixed deposit of ' 3,303.00 Lakhs made with SBI

e. Personal guarantee of Director

17.2 The interest rate for working capital demand loan and cash credit facilities varies from 7.90% to 9.80% per annum

17.3 The quarterly returns of current assets filed by the Company with banks are in agreement with the books of account

17.4 Un-secured Loans

The company availed un-secured loan from directors, which are repayable on demand and carries interest at SBI 1 year MCLR
and the interest rate will be changed according to the changes in SBI MCLR from time to time.

35 | CAPITAL MANAGEMENT_

For the purpose of the Company’s capital management, capital includes issued capital and all other equity reserves attributable to
the equity shareholders of the Company, the company’s policy is to maintain a strong capital base so as to safeguard its ability to
continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders and for
the future development of the Company. In order to maintain or achieve an optimal capital structure, the Company may adjust the
amount of dividend payment, return on capital to shareholders or issue of new shares.

The management assessed the financial assets and liabilities measured at amortised cost are approximate to the fair values
since the Company does not anticipate that the carrying amounts would be significantly different from the values that would
eventually be received or settled.

B. Financial risk management

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

a) credit risk

b) liquidity risk

c) market 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.

a) 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; loans and investments
in debt securities.

The carrying amounts of financial assets represent the maximum credit risk exposure.

Credit risk on trade receivables is limited as the customers of the company mainly consists of the Government promoted
entities having a strong credit worthiness. Accordingly, the Companies customer credit risk is low. The Company’s average
project execution cycle is around 24 to 36 months. General payment terms are with a credit period ranging from 45 to 90
days and retention money to be released at the end of the project. however, in some cases retention money can released
by substituting with bank guarantees. The Company has a detailed review mechanism for review of overdue receivables at
various levels to ensure realisation of the such receivables.

b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to
ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and
stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. The Company
uses activity-based costing to cost its products and services, which assists it in monitoring cash flow requirements and
optimising its cash return on investments.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross
and undiscounted, and include contractual interest payments and exclude the impact of netting agreements.

c) Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices
- will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

i) Foreign currency risk

Foreign Currency risk is the risk that fair value or future cash flow of a financial instrument will fluctuate because of
changes in foreign exchange rate.

The Company is not exposed to foreign currency risk as it has no borrowing or no material payables in foreign currency

ii) 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. Since the Company has insignificant variable interest bearing borrowings, the
exposure to risk of changes in market interest rates is minimal.

iii) Price risk

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market prices (other than those arising from interest rate risk or currency risk).

The company is exposed to price risk due to investments in mutual funds and classified as fair value through profit
and loss.

The company measures risk through sensitivity analysis.

The company’s risk management policy is to mitigate the risk by investments in diversified mutual funds.

The Company does not have any closing investments in mutual funds as on 31st March 2026 and 31st March 2025

40 | DISCLOSURE PURSUANT TO IND AS 19 “EMPLOYEE BENEFITS"_

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 recognized Gratuity Funds managed by Life Insurance Corporation of India (LIC)
and the balance is provided as liability on the basis of valuation 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, 2026 is ' 1,503.81 lakhs (31.03.2025: ' 1,313.09 lakhs) of which ' 686.19 lakhs
(31.03.2025: ' 477.07 lakhs) is funded with the Life Insurance Corporation of India. The balance of ' 817.62 lakhs
(31.03.2025: '836.02 lakhs) 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.

42 | DISCLOSURE PURSUANT TO IND AS 115 “REVENUE FROM CONTRACTS WITH CUSTOMERS":_

The Company constructs infrastructure projects on behalf of clients. Delivering the project as per the contractual terms is the only
performance obligation that has been identified. Under the terms of the contracts, the company will perform its obligations on time
to time as per the timing schedule indicated in the contract with the asset having no alternative use to the entity and the company
having an enforceable right to receive payment for the work done. Hence, Revenue is therefore recognized over time on a cost to cost
method, i.e. based on the proportion of contract costs incurred for the work performed to date relative to the estimated total contract
costs. The management consider that this input method is an appropriate measure of the progress towards complete satisfaction of
these performance obligations under Ind AS 115.

47 | SEGMENT INFORMATION_

The Company’s operations predominantly consist of "Construction and Engineering activities". Hence there are no reportable
segments. During the year under report, substantial part of the Company’s business has been carried out in India. The conditions
prevailing in India being uniform, no separate geographical disclosures are considered necessary and the segment report is
reviewed by Chief Operating Decision Maker, accordingly the Company has considered the business as a whole as a single
Operating Segment in accordance with Ind AS 108.

48 | During the year ended March 31,2026, the Company has recognized claims for an amount of ' 16,297.36 lakhs from Clients

on settlement. Further based on such settlements, on assessment of project cost of some of the projects, the company has
revised the cost estimates and accordingly Rs 13,552.14 lakhs has been provided in the standalone financial results.

49 | During the year ended March 31,2025, the Company has received an Arbitration Claim from one of its Associate for an am ount

of ' 3,557.12 lakhs included in Revenue from Operations and ' 10,354.37 lakhs towards interest on such claim included in the
other income and also expenses related to such claims of ' 129.47 lakhs included in Other expenses and the resultant tax of
' 3,468.66 lakhs included in current tax.

50 | During the year ended March 31,2025, the Company received an Arbitration Claim for an amount of ' 2,775.80 lakhs included in

Revenue from Operations and ' 4,307.24 lakhs towards interest on such claim included in the other income and also expenses
related to such claims of ' 93.67 lakhs included in Other expenses and the resultant tax of ' 1,759.08 lakhs included in current tax.

H During year ended March 31,2025, pursuant to the Settlement Agreement dated September 03, 2024 signed by KNR Muzaffarpur
Barauni Tollway Private Limited, one of its subsidiary Company with NHAI-

a) the Company received an amount of ' 14,194.75 lakhs towards interest on unsecured loan included in the other income
and the resultant tax of ' 3,572.53 lakhs included in current tax.

b) the Company made a provision towards impairment of equity of ' 5,450.00 lakhs, towards doubtful advances of ' 3,279.76
lakhs and towards doubtful trade receivables of ' 1,014.42 lakhs, which were included in Other expenses of the statement
of standalone profit and loss for the year ended March 31, 2024. The said provision has been reversed and accounted
during the year ended March 31,2025 which is included in Other Income.

52 | During year ended March 31,2025, One of the Associate Company bought back its 32,71,161 shares of ' 10/- each held by the

Company for a consideration of ' 892.38 lakhs accordingly the resultant profit on such buyback of ' 565.26 lakhs included in
the exceptional items in the statement of Standalone profit and loss.

53 | During year ended March 31,2025, the Company made a provision of ' 1,405.28 lakhs and written off ' 661.19 lakhs aggregating
to ' 2,066.47 lakhs towards receivables from CUBE Highways and Infrastructure III Pte. Ltd included in the exceptional items in
the statement of Standalone profit and loss due to non fulfilment of some of the conditions of the Share Purchase Agreements
executed between the Company, CUBE Highways and Infrastructure III Pte. Ltd and respective SPV’s i.e. KNR Tirumala Infra Pvt
Ltd, KNR Shankarampet Projects Pvt Ltd and KNR Srirangam Infra Pvt Ltd.

54 | During year ended March 31,2025, the Company received following Arbitration Claim/dividend, which has been included in the

statement of Standalone profit and loss:-

a) From one of Company’s JOs, the Company received claim for an amount of ' 6,088.12 lakhs which is included in Revenue
from Operations and also expenses related to such claims of ' 441.29 lakhs included in Other expenses and the resultant
tax of ' 1,421.31 lakhs included in current tax.

b) Received an amount of ' 1,448.92 lakhs as Dividend from one of its Associate Company, which is included in Other Income
and the resultant tax of ' 364.69 lakhs included in current tax.

~| The trade receivables, retention amounts and unbilled amounts includes an amount of ' 1,36,331.90 Lakhs as at March 31,
2026 (' 1,14,480.28 Lakhs as at March 31,2025) relating to Kaleswaram Package 4 Irrigation Project in Telangana. Collections
in this project has been stalled since March 2023 Despite no collections since March 2023, the Company is executing the
projects to comply with the project execution terms and to demonstrate that the Company was not at fault in execution of the
projects. Management, based on contractual terms of the agreement and internal assessments and discussions with Authority,
is confident of recovering it’s present and future dues relating to this project.

56 | During the year ended March 31, 2025, the Company entered into a Share Purchase Agreement dated October 29, 2024 for
transfer of its entire shareholding in one of its stepdown subsidiary i.e. KNR Muzaffarpur Barauni Tollway Pvt Ltd., for an equity
valuation of ' 45.90 Lakhs.

57 | There have been no events after the reporting date that require disclosure in the financial statements.

58 | Contribution to political parties during the FY 2025-26 is ' Nil (for FY 2024-25 is ' Nil)

59 The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company
for holding any Benami property.

60 | The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period

H The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

62 | i. 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.

ii. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding (whether recorded in writing or otherwise) 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.

63 | The Company has not been declared willful defaulter by any bank or financial institution or government or any government

authority.

64 | The Company has no Loans or Advances in the nature of Loans to specified persons that are Repayable on Demand or without

specifying any terms or period of repayment.

65 | The Company had no transactions with Companies struck off under section 248 of the Companies Act, 2013 or section 560 of
the Companies Act, 1956 during the year.

66 | With effect from 1 February 2026, the Company migrated its accounting system from [SAP 1] to [SAP 2]. Both applications

have a feature of recording an audit trail (edit log) of each and every transaction and of creating an edit log of each change
made in the books of account, together with the date on which such change was made, and that feature has not been disabled.
The balances migrated to [SAP 2] as at 1 February 2026 have been reconciled with the balances as at 31 January 2026 in the
erstwhile application.

Consequent upon the migration, the transactional and accounting data maintained in [SAP 1] for the period from 1 May 2024
to 31 January 2026 has been retained in CSV and portable document formats. The audit trail (edit log) relating to that period
is not available in the format in which it was originally generated in [SAP 1]. The Company has, however, taken the necessary
steps to ensure that the data so retained is not modifiable.

The matter does not affect the recognition or measurement of any amount in these financial statements.

70 | APPROVAL OF FINANCIAL STATEMENTS_

The financial statements were approved for issue by the Board of Directors on 29th May, 2026.

71 | Previous year’s figures have been regrouped/reclassified/rearranged wherever considered necessary.