2.12 Provisions, Contingent Liabilities and
Contingent Assets
Provisions involving substantial degree of
estimation in measurement are recognized when
there is a present obligation as a result of past
events and it is probable that there will be an
outflow of resources to settle the obligation in
respect of which reliable estimate can be made as
on the balance sheet date.
Contingent Liabilities are present obligations
arising from a past event, when it is not probable /
probability is remote that an outflow of resources
will be required to settle the obligation and they
are not recognized but are disclosed in the notes.
Contingent Assets are neither recognized nor
disclosed in the financial statements except
where it has become virtually certain that an
inflow of economic benefit will arise, the asset
and the related income are recognized in financial
statements of the period in which the change
occurs Provisions for Contingent Liabilities and
Contingent Assets are reviewed at the end of
Balance Sheet date.
2.13 Foreign Currency Transactions and Translation
The reporting currency of the company is Indian
Rupee. Foreign Currency Transactions are
translated at the functional currency spot rates
prevailing on the date of transactions.
Monetary assets and current liabilities related
to foreign currency transactions remaining
unsettled are translated at the functional currency
spot rates prevailing on the balance sheet date.
The difference in translation of monetary assets
and liabilities and realized gains and losses on
foreign exchange transactions are recognized in
the Statement of Profit and Loss.
Non-monetary foreign currency items are carried
at historical cost denominated in a foreign
currency are reported using the exchange rate at
the date of the transaction.
2.14 Employee Benefits
Payments to Defined Contribution schemes are
charged as an expense as they fall due. Company's
contribution to provident fund in respect of
certain employees is made to a government
administrated fund and charged as an expense to
the Statement of Profit and Loss.
Liability for employee benefits, both short and
long term, for present and past service which
are due as per the terms of employment are
recorded in accordance with Indian Accounting
Standard 19 "Employee Benefits" issued by the
Companies (Accounting Standard) Rules, 2015. Re¬
measurement gains /losses on post-employment
defined benefits comprising gains/ losses is
reflected immediately in the balance sheet with a
charge or credit to other comprehensive income
in the period in which it arises.
i) Gratuity
In accordance with the Payment of Gratuity
Act, 1972 the Company provides for Gratuity
covering eligible employees. The liability on
account of Gratuity is provided on the basis
of valuation of the liability by an independent
actuary as at the year end.
ii) Provident Fund
In accordance with applicable local laws,
eligible employees of the Company are
entitled to receive benefits under the
provident fund, a defined contribution plan
to which both the employee and employer
contributes monthly at a determined rate
(currently up to 12% of an employee's
salary). These contributions are either made
to the respective Regional Provident Fund
Commissioner, or the Central Provident
Fund under the State Pension Scheme, and
are recognized as expenses incurred.
iii) Compensated Absences
The employees are entitled to accumulate
leave subject to certain limits, for future
encashment and availment, as per the policy
of the Company.
The liability towards such unutilized leave
as at the end of each balance sheet date is
determined based on independent actuarial
valuation and recognized in the Statement
of Profit and Loss.
2.15 Deferred Revenue Expenditure
Projects and other related expenditure incurred
up to 31st March, 2025, the benefit of which is
spread over more than one year is accounted
as Project Promotion Expenses grouped under
Other Advances and is amortized over the period
in which benefits would be derived.
2.16 Leases
Assets taken on lease are accounted as right-of-
use assets and the corresponding lease liability
is accounted at the lease commencement date.
Initially the right-of-use asset is measured at cost
which comprises the initial amount of the lease
liability adjusted for any lease payments made at
or before the commencement date, plus any initial
direct costs incurred and an estimate of costs to
dismantle and remove the underlying asset or to
restore the underlying asset or the site on which it
is located, less any lease incentives received.
The lease liability is initially measured at the
present value of the lease payments, discounted
using the Company's incremental borrowing
rate. It is re-measured when there is a change in
future lease payments arising from a change in
an index or a rate, or a change in the estimate of
the guaranteed residual value, or a change in the
assessment of purchase, extension or termination
option. When the lease liability is re-measured in
this way, a corresponding adjustment is made to
the carrying amount of the right of-use asset, or
is recorded in the Statement of Profit and Loss if
the carrying amount of the right-of-use asset has
been reduced to zero.
The right-of-use asset is measured by applying
cost model i.e., right-of-use asset at cost less
accumulated depreciation and cumulative
impairment, if any. The right-of-use asset is
depreciated using the straight-line method
from the commencement date to the end of the
lease term or useful life of the underlying asset
whichever is earlier. Carrying amount of lease
liability is increased by interest on lease liability
and reduced by lease payments made.
Lease payments associated with following leases
are recognised as expense on straight-line basis:
(i) Low value leases; and
(ii) Leases which are short-term.
2.17 Earnings per Share (EPS)
In arriving at the EPS, the Company's Net Profit
After Tax, is divided by the weighted average
number of equity shares outstanding. The EPS
thus arrived at is known as 'Basic EPS'. To arrive at
the diluted EPS, the net profit after tax, referred
above, is divided by the weighted average number
of equity shares, as computed above and the
weighted average number of equity share that
could have been issued on conversion of shares
having potential dilutive effect subject to the
terms of issue of those potential shares. The
date(s) of issue of such potential shares determine
the amount of the weighted average number of
potential equity shares.
2.18 Taxation
i) Current Tax
Provision for Current tax is made based on
the liability computed in accordance with
the relevant tax rates and provisions of
Income Tax Act, 1961 as at the balance sheet
date and any adjustments to taxes in respect
of the previous years, penalties if any related
to income tax are included in the current tax
expense.
ii) Deferred Taxes
Deferred Tax is the tax expected to be
payable or recoverable on differences
between the carrying amount of the assets
and liabilities for financial reporting purpose
and the corresponding tax bases used in
computation of taxable profit. Deferred tax
assets are recognized and carried forward
only to the extent that there is a reasonable
certainty that sufficient future taxable
income will be available against which such
Deferred Tax Assets can be realized.
Current and deferred tax is recognized
in profit or loss, except to the extent that
it related to items recognized in other
comprehensive income or directly in equity.
In this case, the tax is also recognized in
other comprehensive income or directly in
equity, respectively.
2.19 Commitments
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. Uncalled liability on shares and other
investments partly paid;
c. Funding related commitment to subsidiary,
associate and joint venture companies and
d. Other non-cancellable commitments, if any,
to the extent they are considered material
and relevant in the opinion of management.
Other commitments related to sales/
procurements made in the normal course of
business are not disclosed to avoid excessive
details.
2.20 Operating cycle for current and non-current
classification
Operating cycle for the business activities of the
Company covers the duration of the specific
project/contract including the defect liability
period, wherever applicable and extends up to
the realization of receivables (including retention
monies) within the agreed credit period normally
applicable to the respective lines of business.
2.21 Statement of Cash Flows
Statement of Cash Flows is prepared segregating
the cash flows from operating, investing and
financing activities. Cash flow from operating
activities is reported using indirect method. Under
the indirect method, the net profit is adjusted for
the effects of:
i. transactions of a non-cash nature;
ii. any deferrals or accruals of past or future
operating cash receipts or payments;
iii. items of income or expense associated from
investing or financing cash flows; and
Cash and cash equivalents (including
bank balances) are reflected as such in the
Statement of Cash Flows.
2.22 Exceptional Items:
Items of income and expenditure within profit
and loss from such activities other than ordinary
business activities which are of such size, nature
or incidence that their disclosure is relevant to
explain the performance of the enterprise for the
period, the nature and amount of such items are
disclosed separately as Exceptional Items.
2.23 Borrowing Cost
Borrowing costs net of any investment income
from the temporary investment of related
borrowings, that are attributable to the acquisition
or construction 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 charged to the Statement of Profit and Loss in
the period in which they are incurred. Borrowing
costs include interest expense calculated using
the effective interest method, finance charges in
respect of assets acquired on finance lease and
exchange differences arising on foreign currency
borrowings to the extent they are regarded as an
adjustment to interest costs.
4.1) 6,23,00,000 Equity shares of Gayatri Highways limited (GHL) have been pledged to Il&FS Securities Services
Limited (Security Trustee) for the credit facilities availed by GHL from IL&FS Financial Services Limited.
4.2) 48,27,482 Equity shares Gayatri Energy Ventures Private Limited have been pledged to IDBI Trusteeship Services
Limited for the credit facilities availed by the company from consortium lenders.
4.3) 25,500 Equity shares of Bhandara Thermal Power Corporation Limited have been pledged to IL & FS is yet to be
released by the IL & FS as the loan is repaid by the step-down subsidiary company.
4.4) 16,77,00,300 9% Non Convertible Cumulative Redeemable Preference Shares held by the Company in
M/s. Gayatri Highways Limited have been pledged to IDBI Trusteeship Services Limited for the credit facilities
availed by the company from consortium lenders.
4.5) 7,82,87,796 4% Compulsorily Convertible Cumulative Preferential Shares held by the Company in Gayatri Hi¬
Tech Hotels Ltd have been pledged to IDBI Trusteeship Services Limited for the credit facilities availed by the
company from consortium lenders.
20.1 Equipment Loans from Banks and Others
The Equipment loans are secured by hypothecation of specific equipments acquired out of the said loans and
all these loans are guaranteed by the promoter directors. The rate of interest on these loans varies between
11% to 15%.
20.2 Term loans
The secured term loans are secured by hypothecation of construction equipments not specifically charged
to other banks, equitable mortgage of immovable properties of group companies, pledge of unencumbered
equity shares of promoters in Gayatri Projects Ltd and personal guarantees of the promoter Directors. The rate
of interest varies between 11% to 13% with an average yield of 12.04% p.a.
20.3 Vehicle Loans:
The Vehicle loans availed are secured by hypothecation of specific vehicles purchased out of the said loans.
The vehicle loans carry interest rate between 11% to 15% p.a.
20.4 Working Capital Facilities (Secured)
The working capital facilities from the consortium of Banks are secured by:
• Hypothecation against first charge on stocks, book debts and other current assets of the Company both
present and future ranking paripassu with consortium banks.
• Hypothecation against first charge on all unencumbered fixed assets of the Company both present and
future ranking paripassu with consortium banks.
• Equitable mortgage of properties belonging to promoters, directors, group companies.
• Personal guarantee of promoter directors and relatives. Corporate guarantees of entities in which KMPs
are interested.
20.5 Short Term Loan (COVID FITL)
• Hypothecation against first charge on stocks, book debts and other current assets of the Company both
present and future ranking paripassu with consortium banks.
• Hypothecation against first charge on all unencumbered fixed assets of the Company both present and
future ranking paripassu with consortium banks.
• Equitable mortgage of properties belonging to promoters, directors, group companies.
• Personal guarantee of promoter directors and relatives. Corporate guarantees of entities in which KMPs
are interested.
20.6 Secured Inter Corporate Loan from Others
The secured Intercorporate loans are secured by equitable mortagage of Land of Group Company and
personal guarantees of the Managing Director. The rate of interest is 16.00% p.a.
20.7 Un-secured Inter Corporate Loan from Others
The unsecured Intercorporate loans rate of interest is 18.00% p.a.
20.8 Amount of default as on the Balance Sheet date in repayment of borrowings including interest thereon:
The company has defaulted in repayment of the dues to the lenders and the accounts have been declared as
NPA and further Corporate Insolvency Process having been commenced w.e.f. 15-11-2022 (Refer note no. 1).
In the absence of loan statements / information from the lenders, the actual date of default of various loans
/ financial facilities was not available with the company as there was adjustment of margin money deposits,
repayments from TRA account against outstanding dues on different dates. Accordingly, the date of declaring
the account as NPA/ recalling of the loans is considered as default date for the purpose of reporting in this
clause.
20.9 Unsecured Loans from Promoters is due to shares held by promoters given as collateral sold by lenders of the
company during the year.
20.10 Unsecured Loans from step down subsidiary is interest free with no fixed repayment schedule.
20.11 As per the information available with the company the lenders of the company had sent notices to the company
as to why the company and its directors/gurantors shall not be declared as "willful defaulters”. The company
and the directors/gurantors had responded to the various notices received and as on 31/03/2025, none of the
lenders have conclusively declared the company and its directors/gurantors as "Wilful Defaulters". As on date
of signing these financial statements certain lenders have declared the company, directors/gurnators as wilful
defaulters, however, the said parties have approached the Hon'ble Courts and got appropriate reliefs. Further,
As a part of the OTS u/s 12A of the IBC 2016 in order to facilitate the OTS, the diretors/ promoters/ gurantors
had asked the lenders to withdraw the proceedings for "Wilful Default" and the same has been accepted by the
lenders subject to payment of amounts as per the OTS. In view of payment of entire fund based amounts as
per OTS U/s.12A, the Company is in active correspondence with the lenders to withdraw the willfull defaluter
proceedings.
20.12 During the Financial year 2022-23, Corporate Insolvency Resolution process ("CIRP") was initiated against the
company w.e.f 15th November, 2022 as per the order of the Hon'ble National Company Law Tribunal ("the
NCLT"), Hyderabad Bench. Consequently during the Financial Year 2024-25 the company has not submitted
quarterly returns/statements to its lenders.
20.13 (A) To the best of the knowledge and belief the management has not advanced or loaned or invested funds
of the Company to any other person(s) or entity(ies), 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 on or behalf of the company (Ultimate Beneficiaries) or
b) Provide any guarantee, security, or the like to or on behalf of the ultimate beneficiaries.
(B) The management has not received for the company funds 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 company (Ultimate Beneficiaries), or
b) Provide any guarantee, security, or the like to or on behalf of the ultimate beneficiaries.
d) Details of claims filed by the lenders in respect of Bank guarantees (BGs) and Corporate Guarantees,
Amount of claims filed and admitted by the Resolution Professional during the CIRP period of the
company and status of the same as on 31st March, 2025:-
a. During the course of the CIRP, the lenders have filed claims before the resolution professional in
respect of Bank guarantees (BGs) given by the company towards Performance and Contractual
commitments despite the fact that these BGs were not invoked by the BG beneficiary / holder.
The Resolution professional has admitted the claims in respect of these BGs though the liability is
not established in this case. As the BGs were not invoked and liability is not established in respect
of these claims pertaining to BGs, the same cannot be disclosed under borrowings or loans
and hence the same is disclosed as contingent liabilities amounting to C 65,244.42 Lakhs in the
audited standalone Financial Statements for the year ending 31st March, 2025. In respect of the
above contingent liabilities the promoters of the company have submitted a One-time full & final
debt settlement (OTS) proposal with the lenders. The OTS proposal was accepted by 97.20% COC
members (lenders) and thereafter, the application filed under section 12A of the Insolvency and
Bankruptcy Code, 2016 has been approved by the Hon'ble NCLT as the Company Petition IB/308/
HDB/2022 under Section 7 is allowed to be withdrawn. Accordingly, the CIRP against the company
is also withdrawn. As per the said OTS proposal the company has to safeguard invoked Bank
guarantees given towards performance and contractual commitments
b. Details of claims filed by the lenders in respect of Corporate Guarantees given by the company and
the details as on 31st March, 2025 are as follows:-
i. During the course of the CIRP, the lenders of the associate company have filed claims of
C 6,800.00 lakhs in respect of the corporate guarantee given by the company and the same
was admitted by the resolution professional even though the corporate guarantee was not
invoked and the liability is not established and hence the same is disclosed as a contingent
liability in the audited standalone Financial Statements for the year ended 31st March, 2025.
ii. During the course of the CIRP, the lenders of SMTL have filed claims before the Resolution
professional for an amount of C 2,15,018.00 Lakhs which was admitted by the Resolution
professional even though the corporate guarantee was not invoked by the lenders of SMTL
and the liability is not established. However, the company as approved in its board meeting,
has given corporate guarantee for C 1,82,735.00 Lakhs only and accordingly, C 1,82,735.00
Lakhs only is disclosed as a contingent liability in the audited standalone Financial Statements
for the year ended 31st March, 2025.
iii. During the course of the CIRP, the Lenders of IDTL have filed claims before the Resolution
Professional (RP) amounting to C 60,068.00 Lakhs which was admitted by the Resolution
professional even though the corporate guarantee was not invoked by the lenders of IDTL
and the liability is not established and hence the same is disclosed as a contingent liability in
the audited standalone Financial Statements for the year ended 31st March, 2025.
iv. In respect of the above corporate guarantee which are disclosed as contingent liabilities
the promoters of the company have submitted One time full & final debt settlement (OTS)
proposal with the lenders including above stated CGs & BGs holders / lenders. The OTS
proposal was accepted by 97.20% COC members (lenders) and thereafter, the application
filed under section 12A of the Insolvency and Bankruptcy Code, 2016 has been approved by
the Hon'ble NCLT as the Company Petition IB/308/HDB/2022 under Section 7 is allowed to be
withdrawn. Accordingly, the CIRP against the company is also withdrawn. As per the aforesaid
OTS proposal an amount of C 500 lakhs is assigned against the above stated CGs holders and
the impact of the same shall be recognized in the financial statements during the financial
year 2025-26 or subsequent years in which the payment is made. Accordingly, in the opinion
of the management, in view of the above settlement for C 500 lakhs for CG holders which will
be accounted in subsequent years upon payment, the accounting of admitted claims as loans
/ borrowings in the books is not required in the audited standalone Financial Statements for
the year ended 31st March, 2025.
The promoters of the company have submitted One time full & final debt settlement (OTS)
proposal in respect of the above corporate guarantees which are disclosed as contingent
liabilities, with the lenders including above stated CGs & BGs holders / lenders. The OTS
proposal was accepted by 97.20% COC members (lenders) and thereafter, the application
filed under section 12A of the Insolvency and Bankruptcy Code, 2016 has been approved by
the Hon'ble NCLT as the Company Petition IB/308/HDB/2022 under Section 7 is allowed to be
withdrawn. Accordingly, the CIRP against the company is also withdrawn. As per the aforesaid
OTS proposal, an amount of C 500 lakhs is assigned against the above stated CGs holders and
the impact of the same shall be recognized in the financial statements during the financial
year 2025-26 or subsequent years in which the payment is made. Accordingly, in the opinion
of the management, in view of the above settlement for C 500 lakhs for CG holders which will
be accounted in subsequent years upon payment, the accounting of admitted claims as loans
/ borrowings in the books is not required in the Standalone Audited Financial Statements for
the year ended 31st March, 2025.
34.4 Disclosure pursuant to Indian Accounting Standard (Ind AS) - 19 "Employee's Benefits":
The summarized position of post-employment benefits and long-term employee benefits recognized in the
statement of Profit & Loss and Balance Sheet as required in accordance with Indian Accounting Standard - 19
are as under: -
Employees of the Company receive benefits from a provident fund, which is a defined benefit plan. Both, the
employees and the Company make monthly contributions to the provident fund plan equal to a specified
percentage of the covered employee's salary. The Company contributed C 61.45 Lakhs and C 92.34 Lakhs
during the years ended 31st March, 2025 and 31st March, 2024 respectively and the same has been recognized
in the Statement of Profit and Loss under the head employee benefit expenses.
(f) The entire present value of gratuity and leave encashment at the year-end is unfunded and hence, fair
value of assets is not furnished.
34.5 Segment Reporting
The Company's operations predominantly consist of construction/project activities. Hence, there are no
reportable segments under Ind AS - 108. During the year under report, the Company's business has been
carried out only in India. The conditions prevailing in India are uniform, no separate geographical disclosures
are considered necessary.
34.6 Leases
The Company has taken on lease various assets such as plant & equipment, and vehicles. Details in respect of
right of use of assets:
iii) Total cash outflow for leases amounts to C Nil (lakhs) including cash outflow of short-term and low value
leases.
iv) Company is recognizing the lease liability, lease assets and depreciation thereon as per the Indian
accounting standards.
v) As stated in Note No. 1, all lease liabilities have been settled under the OTS proposal and the impact of
the same will be accounted and recognized in the year in which payment is made to the lessors.
As the company was undergoing CIRP during the financial year 2024-25, no Deferred Tax Asset has been
recognized for the financial year as there is no enviable probability that the temporary difference will reverse
in the foreseeable future and taxable profit will be available against which the deductible temporary difference
can be utilised, based on the status of the company as on 31st March, 2025. However, as stated in note no. 1 the
OTS proposal is accepted by the lenders during the financial year 2025-26 and the company will evaluate and
analyse the effect of deductible temporary differences arising from investments in subsidiaries, branches and
associates, and interests in joint ventures and also the impact of OTS proposal and accordingly, the company
shall make any adjustment to the DTA/DTL in the F.Y. 2025-26 or subsequent years.
34.9 The Code on Social Security, 2020 became effective from 21st November. 2025. The Company will assess the
impact of the Code on employee benefit obligations and account for the same in F.Y. 2025-26, as applicable.
34.10 There are no amounts due and outstanding to be credited to the Investors Education & Protection Fund as on
31-03-2025 and amounts which are required to be transferred to such funds have been transferred.
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. The Company strives to safeguard its ability
to continue as a going concern so that they can maximize returns for the shareholders and benefits for other
stakeholders. The aim is to maintain an optimal capital structure and minimize the cost of capital.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions
and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may
return capital to shareholders, issue new shares or adjust the dividend payment to shareholders (if permitted).
Consistent with other entities in the industry, the Company monitors its capital using the gearing ratio which
is net debt divided by total equity.
The Company's activities expose to a variety of financial risks like market risk, credit risk and liquidity risks. The
Company's focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse
effects on its financial performance.
(i) 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 three types of risk: interest rate risk, currency risk and
other price risk, such as equity price risk. Major financial instruments affected by market risk, includes
loans and borrowings.
a. Interest rate risk
As the company had defaulted in repayment of loans/financial facilities, the interest rate risk is very
limited to the Company at present.
b. Foreign Currency Risk:
• The Company's foreign Currency exposure details are as follows:
Credit risk is the risk that a customer or a counterparty to a financial instrument fails to perform or
pay amounts causing financial loss to the company. The maximum exposure of the financial assets is
contributed by trade receivables, investments, work-in-progress/ unbilled revenue, cash and cash
equivalents and receivables/loans from group and other companies, sub-contractor advances.
Credit risk on trade receivables, work in progress/unbilled revenue is limited as the customers of the
company mainly consist of the Government promoted entities, having strong credit worthiness. The
company takes into account ageing of accounts receivables and the company's historical experience
of the customers and financial conditions of the customers. During the current year the company had
identified credit risk on certain financial instruments as below.
(iii) Liquidity Risk:
Liquidity Risk is defined as the risk that the Company will not be able to settle or meet its obligations
on time or at a reasonable price. For the reasons stated in Note No. 1 and on account of initiation of
CIRP against the company, the company faces liquidity risk and there is Material uncertainty about
the going concern of the company for the year ended 31.03.2025. The Company's management and
finance department is responsible for liquidity, funding as well as settlement management. In addition,
processes and policies related to such risks are overseen by the senior management. However, in view
of the acceptance of OTS proposal u/s 12A by the COC, the company foresees the liquidity risk as a
temporary event.
34.16 Pursuant to the introduction of the Goods and Service Tax (GST) applicable indirect taxes have got subsumed
into GST. The company has executed various Construction Contracts/projects of NHAI /other state and central
government Departments and in majority of the cases, the work orders for these contracts were issued under
the erstwhile previous tax laws and the additional impact on account of GST including the impact of change
in GST rate/change in law during the year on works contract is recognized as other receivables under "Other
Current Assets". During the previous years the company had retained certain amounts against receivables and
the balance is receivable in due course.
34.17 The Company has an investment in Gayatri Hi-tech Hotels Limited ("Investee Company") amounting to
C 19,571.95 lakhs as at 31st March, 2025, in the form of 4% Compulsorily Convertible Cumulative Preferential
Shares ("CCCPS") which is convertible into equity shares of the investee company during the financial year
2027-28. As per the audited financials of the said investee company it has incurred substantial losses and there
is a complete erosion in net worth of the investee company. However, as per the unaudited financials of the
said investee company for the period ended as on 30th September, 2025 and further as per the information
available with the company, the business operations of the investee company have substantially improved,
the net-worth of the investee company has turned positive and investee company is able to meet its financial
obligations independently. In view of the above and also based on the managements internal evaluations/
assessments done on the investment and also the fact that the CCCPS are convertible into equity shares of the
investee company during the financial year 2027-28 which is a long period for realization of the investment or
to analyze the actual investment value, the company has opined that no provision for diminution / impairment
for carrying value of the investment is required in the audited standalone Financial Statements for the year
ended 31st March, 2025.
34.18 Gayatri Highways Limited, an associate company
in which the company made investments during
the previous financial years and the balance
of these investments as at 31st March, 2025 are
C 16,770.03 Lakhs in the form of Non-Convertible
Preference Shares ('NCPS'), Equity Share Capital
investment C 1,248.00 Lakhs, subordinate
debt C 17,967.01 Lakhs and unsecured loan
C 7,858.37 lakhs. As stated in the audited financial
statements of the Associate Company, it has been
incurring operating losses during the past few
years. However, the financial statements of the
said associate company have been prepared on
a going concern basis as the promoters of the
associate company have guaranteed support to
the company and its management believes that its
investments in several road projects will generate
sufficient cash flows to support the company in
foreseeable future. As per the representations
and explanations given by the management of the
associate company till the F.Y. 2021-22, the said
associate company is holding portfolio in several
road projects and further they had stated that the
future cash flows of the said associate company
from the road projects on account of various
claims filed, annuities, Toll collections receivable,
and arbitration awards awarded will be sufficient
to repay the amounts invested/advanced to the
associate company and hence, no provision was
made in respect of NCPS investments made by the
company and unsecured loan/subordinate debt
receivable by the company from the said associate
till the year ended 31st March, 2022.
Upon initiation of CIRP against the company as
stated in Note No. 1 above, the management
of the affairs of the Company is vested with the
Interim Resolution Professional / Resolution
Professional appointed by the Hon'ble NCLT
during the financial year 2022-23. During the
course of CIRP, the Resolution Professional (RP)
on behalf of the company had sent a demand
notice to the associate company asking them to
repay the entire unsecured loan and sub-ordinate
debt. In response to such notice, the associate
company has confirmed that the amounts due
to the company are towards preference shares
of C 16,770.03 lakhs and unsecured loans as at
31st March, 2023, but surprisingly, the associate
company had stated that during the financial year
2022-23 it has written-off an amount of C 17,967.01
Lakhs being the subordinate debt payable to the
company citing the reason that the subordinate
debt was given by the company to the associate
company towards funding of shortfalls in two
major road projects i.e., SMTL and IDTL, and as the
said road projects owned by SMTL and IDTL have
incurred significant losses and were terminated
by NHAI and on account of this, the associate
company has incurred significant losses which
cannot be recovered in future and accordingly, the
associate company has unilaterally written off the
subordinate amount of C 17,967.01 Lakhs deeming
the same as no longer payable to the company as
there will be no surplus cash flows to the associate
company from the said road projects. As per
the information available with the company, the
resolution professional has neither responded
nor taken proper recourse to recover the sub¬
ordinate debt receivable from the said associate
company. In these circumstances, as stated in
Note No. 1 above, the One Time Debt Settlement
proposal was accepted and the management
affairs of the company are vested back with the
promoters of the company w.e.f. 16th September,
2025. The management of the company has
corresponded with the associate company
asking the associate company to confirm on the
outstanding subordinate debt payable to the
company and in response to such letter , GHL vide
its letter dated 29th November, 2025 has stated
that the amount are no longer payable to the
company citing the reason that the subordinate
debt was given by the company to the associate
company towards funding of shortfalls in two
major road projects i.e., SMTL and IDTL, and as the
said road projects owned by SMTL and IDTL have
incurred significant losses and were terminated
by NHAI and on account of this, the associate
company has incurred significant losses which
cannot be recovered in future. The company is
in the process of deciding the future steps to be
taken against the associate company in order to
recover its dues. As per the information made
available to the company, the associate company
may receive the claims awards in its favour and
substantial amounts from sale of investments held
by the associate company and the same shall be
utilized to repay amounts due to the company.
However, based on the prudence concept of
accounting and the fact that the subordinate
debt of C 17,967.01 Lakhs has been already being
unilaterally written off by the associate company
in the financial year 2022-23 as not payable to the
company, the management of the company has
made a provision in respect of subordinate debt of
C 17,967.01 lakhs and accordingly this provision was
disclosed as an exceptional item (Net of Expected
Credit Loss) in the Standalone Audited Financial
Statements for the year ended 31st March, 2023. It
is further viewed that if this amount is recovered
in future years, the same shall be accounted in
the year of recovery in the books of account
and in the financial statements. Further, as on
date of these results GHL has paid an amount of
C 2,962.16 Lakhs against the unsecured loan and
accordingly, the management of the company
is of the view that remaining dues receivable in
the form of NCPS and unsecured loan are fully
recoverable and hence, no provision is required
to be made in the Audited Standalone Financial
Statements for the year ended 31st March, 2025 for
the NCPS investments made by the company and
unsecured loan receivable by the company from
the said associate company.
34.19 During the previous financial years, in the
ordinary course of business, the Company had
given Contract Advances to a sub-contractor
which on mutual consent was converted into
an interest-bearing inter-corporate loan. The
said Inter corporate loan of C 8,849.39 Lakhs
and interest thereon of C 25,555.00 Lakhs is
pending for recovery as at 31st March, 2025. The
recovery of this loan along with interest thereon
is delayed due to extraneous reasons like changes
in government policies, delays in execution of
projects, etc. In the preceding financial years, the
company had recovered considerable amounts
from the said sub-contractor against the loan and
the same was adjusted to the principal amount of
the Inter corporate loan (ICL). In order to expedite
the recovery of the balance amounts during the
preceding Financial Years, the said sub-contractor
had given an undertaking to the company,
wherein they had agreed to assign proceeds from
sale of immovable properties to the company for
repayment of the Intercorporate loan and interest
thereon. During the F.Y. 2023-24 and the current
financial year i.e. 2024-25, the Sub-contractor
had based on the aforesaid undertaking paid an
cumulative amount of C 9,826.75 Lakhs and the
same was adjusted against the principal amount
of the loan. During the current financial year, the
Inter Corporate Loan along with interest thereon
was due for payment as per the terms of the ICL
agreement. However, as the company was under
CIRP no steps were taken to renew/extend the
loan agreement neither were any steps taking
during the year to recover the balance amounts
due. In these circumstances as stated in Note
No.1 above, the OTS proposal was accepted
and the management affairs of the company
are vested back with the promoters with effect
from 16th September, 2025. The management
of the company has corresponded with the sub¬
contractor for recovery of the balance amount
due and is hopeful of a positive outcome in
the best interest of the company and pending
outcome of the same the management of the
company is of the view that no interest income
shall be accounted during the year on the ICL.
In view of the above, given the fact that the said
sub-contractor has paid an cumulative amount
of C 9,826.75 Lakhs to the company during the
F.Y. 2023-24 & 2024-25 against its dues. The
management of the company is of the view that
no provision for the same is required to be made
in the Audited Standalone Financial Statements
for the year ended 31st March, 2025.
34.20 One of the subsidiaries of the associate company
(hereinafter called as "concessionaire company"
or Sai Matarani Tollways Limited "SMTL"), which
has been awarded a Build-Operate-Transfer
(BOT) work for the construction of Four Laning
of Panikoili-Rimuli section of NH-215 Road. The
company has an EPC receivable of C 23,715.65 Lakhs
from M/s. Sai Matarani Tollways Limited "SMTL" as
at 31th March, 2025. Additionally, the company had
given an irrevocable and unconditional Corporate
Guarantee of C 1,82,735.00 Lakhs to the lenders of
SMTL. SMTL had given termination notice to the
National Highways Authority of India (NHAI) due
to irreparable loss of toll revenue from the road
project and requested for termination payment
of C 2,29,667.00 Lakhs. Apart from the above-said
termination payment, it had filed claims including
EPC claims with the NHAI under Concessionaire's
right to recover losses/ damages from the
Authority on account of material default of the
Authority. SMTL Road Project was terminated by
the NHAI on 28th January, 2020 and toll collection
rights were handed over to the NHAI from 30th
January, 2020. SMTL had requested the NHAI
for referring the disputes such as Termination
Payment and Claims to the Conciliation
Committee of Independent Experts ("CCIE") as per
NHAI policy. The CCIE has suggested that there
should be a give and take policy for both parties
SMTL and accordingly, the termination payment
was finalized to C 79,650.00 Lakhs by NHAI. SMTL
has requested its lenders to accept the above¬
said payment of C 79,650.00 Lakhs towards full
and final settlement of all existing past and future
dues etc. Upon acceptance of the above stated
proposal, the said lenders shall waive all future
claims against SMTL and its guarantors including
corporate guarantor i.e., Gayatri Projects Limited
and drop all legal proceedings. In addition to
above termination payment finalized by NHAI
which will be utilized for payment of lenders dues,
SMTL had filed EPC claims before NHAI and the
amount of claim is C 974.49 crores as per initial
assessment before CCIE. The management of the
SMTL was confident of getting claims from NHAI
and assured to repay entire dues to the company
till 31/03/2022. In these circumstances, during the
Financial year 2022-23, the management of the
company had informed its board that as a part of
SMTL settlement with its lenders and for release
of Corporate guarantee given by the company to
the lenders of SMTL, the company was directed
to waive its EPC receivable of C 23,715.65 Lakhs
from SMTL which was considered by the board of
the company in its board meeting but the same
was subject to approval of the consortium of
the lenders of the Company. Subsequently, CIRP
proceedings were initiated against the company
and during the CIRP, the resolution professional of
the company had written a letter to SMTL asking
them to pay the EPC dues immediately. In response
to the letter, SMTL had responded stating that
there were shortfalls in the EPC executed by
the company which all led to termination of Toll
project by NHAI and the same had ultimately
caused huge loss the SMTL and accordingly SMTL
had stated that the amounts are no longer payable
and had written off the same during the financial
year 2022-23. As per the information available
with the company, the RP has neither responded
to the letter received from SMTL nor taken
proper recourse to recover the EPC receivable
from SMTL. Subsequently, as per the information
available with the company during the F.Y. 2022¬
23, based on the settlement agreement between
NHAI and SMTL, the EPC claim amount receivable
from NHAI was settled to C 171.53 crores as against
initial claim assessment before CCIE of C 974.49
crores and further, this claim amount of C 171.53
crores was recovered /adjusted by the lenders
of SMTL over and above the agreed settlement
amount of C 79,650.00 Lakhs. Subsequently, SMTL
was admitted into CIRP as per the application filed
by its lenders before the Hon'ble NCLT. In view of
the above matters, during the financial year 2022¬
23 the company has made a full provision for bad
and doubtful debts against the EPC receivable and
during the current financial year 2024-25 in the
quarter ended 31st March, 2025 the company has
written off the entire EPC receivable from SMTL.
However, no provision is required to be made
in respect of corporate guarantee given by the
company to the lenders of SMTL for the detailed
reasons explained in Note No. 34.1b above.
34.21 An amount of C 3,620.49 Lakhs was receivable
from M/s Western UP Tollways Limited ('Erstwhile
Associate Company or WUTPL') operating Meerut
and Muzaffarnagar Section of NH-58 Road on
BOT basis against the EPC works executed by
the company during the previous years and the
amounts were to be recovered out of claims
amounts received by the erstwhile associate
company from NHAI. During the previous financial
years, the Arbitration Tribunal has pronounced
arbitration award of C 12,443.03 Lakhs which
includes interest thereon of C 6,405.00 Lakhs and
extension of concession period by 348 days. In
order to avoid future disputes and litigations in
higher courts, at the request of the M/s. Western
UP Tollways Limited, the above awarded claims
and the termination payment have been referred
to the Conciliation Committee of Independent
Experts ("CCIE") as per NHAI policy. During the
course of CIRP of the company, the CCIE has
arrived a final settlement amount of C 9,850.00
Lakhs and the same was accepted by the company
for which the Resolution Professional on behalf
of the company has entered into a settlement
agreement with NHAI, GHL, and WUPTL, wherein
the Resolution Professional of the company had
accepted an amount of C 1,133.08 Lakhs, as full
and final settlement against its receivables and
the same was paid by NHAI on 27/08/2024 during
the course of CIRP. Accordingly, the management
of the company has written of the balance
EPC receivable of C 2,487.40 Lakhs during the
current financial year and the same is disclosed
as an exceptional item in the audited standalone
Financial Statements.
34.22 The Advances to Suppliers, Sub-contractors and
others as at 31st March, 2025, includes an amount
of C 14,722.65 Lakhs given to one sub- contractor
in the normal course of business during previous
years. The recovery of this advance is delayed due
to certain extraneous factors not attributable to
the sub-contractor. During the previous financial
years, the company had recovered C 18,000.00
Lakhs from the sub-contractor. However, for the
conditions stated in note no. 34.25 below and the
company got admitted into CIRP, the contract
works awarded to the company got transferred or
cancelled by the contractees and in this process,
the works awarded to the company which were
allotted to this sub-contractor also got cancelled
and due to the same the company anticipates a
delay in recovery of amounts from the said sub¬
contractor. In view of the delayed recovery, in
order to comply with the Accounting Standards
requirement, the company has till date provided
an expected credit loss of C 6,580.92 Lakhs. The
management of the company is in the process
of corresponding with the sub-contractor and
evaluating the effect of cancellation of work the
company and sub-contractor and analyzing the
possibility to make claims in this regard in order to
recover the dues at the earliest in the best interest
of the business operations of the company.
34.23 Gayatri Energy Ventures Private Limited (GEVPL),
a wholly owned subsidiary company incorporated
for the purpose of investment in power projects,
in which the Company had invested Equity Share
Capital of C 63,983.28 Lakhs and also funded
as and when required in the form of unsecured
loan, the balance loan as at 31st March, 2025 is
C 3,691.53 Lakhs (including BG encashment of
C 2,421.00 Lakhs). During the previous financial
year, the bank guarantee given by the company
in favour of western Coalfields Limited (WCL) for
C 2,421.00 Lakhs on behalf of Jinbhuvish Power
Generation Private Limited (JPGPL) was arbitrarily,
illegally invoked and en-cashed by WCL. As
against this illegal encashment of the bank
guarantee, the company has taken necessary
legal recourse against WCL at the appropriate
Hon'ble Court which is pending for disposal.
The company is confident of recovering this BG
amounts based on legal opinion and merits of
the matter. During the previous financial years,
the subsidiary company has incurred a loss of
C 7,204.35 Lakhs, on account of impairments of its
assets/receivables. Additionally, the step-down
subsidiary of the company i.e. Bhandara Thermal
Power corporation limited (BTPCL) has received
SARFARESI notices from the lenders of GPL as the
land held by BTPCL was given as a collateral for
the loans taken by GPL and as per the information
available with the company, during the financial
year 2025-26, the said lenders have sold the land
and recovered dues of GPL. During the current
financial year 2024-25, the subsidiary company
has received the earnouts amount of C 19,103.43
Lakhs due to occurrence of liquidity event in SEIL
Energy India Limited (SEIL) pursuant to the "Share
Purchase Agreement" entered for the sale of the
Investment. In view of the above, the management
of the company is of the opinion that the company
shall recover the BG amount en-cashed by WCL
and the earn out amounts received from SEIL
are sufficient to cover the erosion in net-worth
of GEVPL and accordingly, no impairment on its
investment made in GEVPL is required to be made
in audited standalone Financial Statements for the
year ended 31st March, 2025.
34.24The recovery of work and other advances and
receivables from one sub-contractor amounting
to C 7,483.05 Lakhs as at 31st March, 2025 got
delayed due to mis-match in cash flows of the
sub-contractor and non-extension of adequate
financial facilities. During the previous financial
years, the said sub-contractor had arranged a
payment of C 2,452.80 Lakhs, to the lenders of
the company, and accordingly the management
is confident of recovery of the balances amounts
and is of the opinion that no provision is required
to be made in the audited Standalone Financial
Statements for the year ended 31st March, 2025.
34.25 Due to changes in business conditions on account
of the Covid-19 pandemic, there has been delay
in recovery of Trade Receivables from various
parties including state governments, central
government, NHAI, increase in materials cost and
increase in cost of services, non-availability of
adequate working capital to execute the contract
works on hand, non-awarding of fresh contract
works due to lenders reluctant to provide bank
guarantee or other facilities, etc., have severely
affected the business operations and billing cycle
(raising of RA bills on the contractors) of the
company which have resulted that the Company
defaulted in repayment of dues to its lenders
and devolvement of significant Non-Fund based
facilities and most of the lenders have recalled
their financial facilities extended to the company.
The loans and other facilities sanctioned to the
company have been classified by the lenders as
Non-Performing Assets (NPA) and the interest/
finance cost on financial liabilities up to the period
of initiation of CIRP has been recognized on the
basis of the loan/credit facilities sanction letters
and other documents available with the company.
In these circumstances, forensic audit on the
accounts of the company has been initiated and
completed as per the directions of the lenders and
the management of the company has submitted
detailed replies to the observations made in the
said forensic audit report. Without considering
the submissions made by the company, certain
lenders have taken unilateral decisions which have
affected the business operations of the company.
As aggrieved with the unilateral decisions, the
management / company has approached Hon'ble
courts and got appropriate reliefs. As stated in
Note No. 1, the Corporate Insolvency Resolution
process ("CIRP") has been initiated against the
company w.e.f. 15th November, 2022 as per the
order of the Hon'ble National Company Law
Tribunal ("the NCLT"), Hyderabad Bench vide its
Order dated 15th November, 2022. As stated in
Note No. 1, the promoters of the company have
submitted One time full & final debt settlement
proposal with the lenders of the company which
was accepted by 97.20% COC members (lenders).
Thereafter, the application filed under section 12A
of the Insolvency and Bankruptcy Code, 2016 has
been approved by the Hon'ble NCLT vide its order
dated 10th September, 2025 as the Company
Petition IB/308/HDB/2022 under Section 7 is
allowed to be withdrawn. Accordingly, the CIRP
against the company is also withdrawn. The
company has paid the entire fund-based amount
as stated in the approved 12A plan as on the date
of these audited standalone Financial Statements.
34.26 The Cabinet Committee on Economic Affairs
(CCEA) vide its "measure to revive construction
sector - reg" had approved partial (75%)
interim payment of challenged arbitral awards
by the Government entities to contractors/
concessionaires against a bank guarantee.
Pursuant to such measures announced, the
company had received a sum of C 21,044.83 lakhs
as partial (75%) interim payment towards an
arbitration amount and the amount so received
during the previous financial years has been
reduced from the outstanding claims receivables
disclosed in other current assets.
34.27 During the previous year, the company has
assigned some of its contract works on back-to-
back basis to sub-contractors / other contractors
as the company is unable to achieve the work
progress targets due to working capital issue
and non-availability of funds for the detailed
reasons stated in note no. 34.25. The assignment
of these contract works to sub-contractors /
other contractors is done in the best interest of
the company in order to avoid huge termination
penalties and other hindered consequences.
Due to assignment of contract works to sub¬
contractors / other contractors, the company
could not raise bill for contract work executed
till the date of assignment which has resulted in
reduction of contract revenue and thereby caused
huge losses.
34.28 During the financial year 2024-25, the company
has incurred a loss of C 6,879.61 Lakhs and as on 31st
March, 2025 the company has accumulated losses
of C 2,00,993.96 Lakhs for the detailed reasons
stated in the note no. 34.25 and 34.27, and there is
complete erosion in the net worth of the company
on account of huge losses incurred. The company
has defaulted in repayment of outstanding loans
to its lenders and the company bank accounts are
declared as NPA and the CIRP initiated against the
company as per the order of the Hon'ble NCLT
w.e.f 15th November, 2022. As on 31st March, 2025,
the current liabilities exceed the current assets by
C 2,36,891.28 Lakhs. The audited standalone
financial statements have been prepared on a
Going-Concern basis as the Hon'ble NCLT has
directed to continue the operations on a going
concern basis. Further as on the date of these
audited standalone financial statements, the One¬
time full & final debt settlement proposal submitted
by the promoters of the company with the lenders
of the company was accepted by 97.20% COC
members (lenders) and the application filed under
section 12A of the Insolvency and Bankruptcy
Code, 2016 has been approved by the Hon'ble NCLT vide its order dated 10th September, 2025 as the Company
Petition IB/308/HDB/2022 under Section 7 is allowed to be withdrawn. Accordingly, the CIRP against the
company is also withdrawn. The company has paid the entire fund-based amount as stated in the approved
12A plan as on the date of these audited standalone financial statements. Therefore, in view of the above, the
management of the company has opined that the company will continue as a going concern and there is no
uncertainty in this. Accordingly, the audited standalone financial statements of the company are prepared on
Going-Concern basis.
34.29 During the year ended 31st March, 2025, NHAI has arbitrarily invoked Performance Bank Guarantees amounting
to C 330.43 Lakhs due to slow progress of works for the detailed reasons stated in Note No. 34.25 and 34.27, and
the same was charged to the Statement of Profit and Loss as exceptional items.
34.30 Due to matters stated at note 34.27, several project sites which were terminated/given on back-to-back basis,
the Property, Plant and Equipment (PPE) situated at such sites were handed over to the sub-contractors for
completion of the project works and, in some cases, the said equipment was given on Hire basis. As the
company was under CIRP during the year, the company could not conduct the physical verification of the PPE.
As on date of signing of these financial statements, the company is in the process of conducting the physical
verification of the PPE and any impact of the same shall be recognized in the subsequent financial years.
34.31 Corporate Social Responsibility:
The amount required to be spent by the Company as per the provisions of section 135(5) of Companies Act,
2013 on Corporate Social Responsibility (CSR) related activities during the year is C NIL (previous year: C Nil
Lakhs).
The amount recognised as expense in the Statement of Profit and Loss on CSR related activities is (previous
year: C Nil Lakhs), which comprises: -
34.33 The company was under CIRP process for the year ended 31st March, 2025 and the management affairs of the
company were vested with the Resolution professional appointed by the Hon'ble NCLT. Lenders and most
of the creditors have filed claims with the company. Certain works got either cancelled or transferred and
receivables in respect of contract work were directly taken by them from the contractees. Therefore, the
balances of receivables, loans & advances, creditors as at 31st March, 2025 are subject to reconciliation and
receipt of confirmation.
Note on Ratios: Substantial Variances noted above in the Ratios is due to corporate insolvency as the Net
worth of the Company is eroded substantially and the Company has overdue to the financial creditors as well
as operational creditors.
34.35 Previous year figures are regrouped/reclassified to match with the current year presentation.
34.36 Additional Regulatory Information as required by Schedule III of the Companies Act, 2013:
a) No charges are pending for registration with Registrar of Companies (ROC) beyond the statutory period.
b) No transactions made with the Struck off Companies in the current year and previous year.
c) The Company has not traded or invested in Crypto Currency or Virtual Currency during the current or
previous year.
d) 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.
e) The Company has not entered into any Scheme of Arrangement in terms of sections 230 to 237 of the
Companies Act, 2013. Hence there will be no accounting impact on the current or previous financial year.
f) The Company has complied with clause (87) of section 2 of the Act read with Companies (Restriction on
number of Layers) Rules, 2017.
34.37 All amounts are rounded off to the nearest Thousands.
For Atmakuri & Co For and on behalf of the Board
Chartered Accountants
T.Vivekananda Reddy T.V.Sandeep Kumar Reddy T.Sarita Reddy
Partner Chairman & Managing Director Executive Director
DIN: 00 005573 DIN: 00017122
Place: Hyderabad N.Seshagiri Rao Shashank Jain
Date: 29th December, 2025 Chief Financial Officer Company Secretary
& Compliance Officer
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