1.B.12 Provisions and contingent liabilities

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that the Company will be
required to settle the obligation, and a reliable estimate
can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate
of the consideration required to settle the present
obligation at the end of the reporting period, taking
into account the risks and uncertainties surrounding
the obligation. When a provision is measured using the
cash flows estimated to settle the present obligation, its
carrying amount is the present value of those cash flows
(when the effect of the time value of money is material).

Present obligations arising under onerous contracts are
recognised and measured as provisions. An onerous
contract is considered to exist where the Company has a
contract under which the unavoidable costs of meeting
the obligations under the contract exceed the economic
benefits expected to be received under it.

A contingent liability is disclosed where there is a
possible obligation or present obligations that may,
but probably will not, require an outflow of resources.
Contingent assets are not recognised. Information on
contingent liabilities is disclosed in the notes to standalone
financial statements unless the possibility of an outflow
of resources embodying economic benefits is remote.

1.B.13 Financial instruments

Financial assets and financial liabilities are recognised
when a Company becomes a party to the contractual
provisions of the instruments.

Initial Recognition

Financial assets and financial liabilities are initially
measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets
and financial liabilities (other than financial assets and
financial liabilities at fair value through profit or loss)
are adjusted in the carrying amount of such financial
assets and financial liabilities. Transaction costs directly
attributable to the acquisition of financial assets or
financial liabilities at fair value through profit or loss are
recognised immediately in Standalone Statement of
Profit and Loss.

1.B.14 Financial assets

Classification and subsequent measurement of
financial assets

1.B.14.1 Classification of financial assets

The Company classifies its financial assets in the
following measurement categories:

• those to be measured subsequently at fair value
(either through other comprehensive income, or
through profit or loss), and

• those measured at amortised cost.

The classification is done depending upon the Company's
business model for managing the financial assets and
the contractual terms of the cash flows. Classification
for investments made in debt instruments will depend
on the business model in which the investment is held.
The Company reclassifies debt investments when
and only when its business model for managing those
assets changes.

1.B.14.2 Subsequent measurement
Debt instruments

Subsequent measurement of debt instruments depends
on the Company's business model for managing the
asset and the cash flow characteristics of the asset.
There are three measurement categories into which the
Company classifies its debt instruments:

Amortised cost:

Assets that are held for collection of contractual cash
flows where those cash flows represent solely payments
of principal and interest are measured at amortised cost
e.g. Debentures, Bonds etc. A gain or loss on a debt
investment that is subsequently measured at amortised
cost is recognised in profit or loss when the asset is
derecognised or impaired. Interest income from these
financial assets is included in interest income using the
effective interest rate method.

Fair value through other comprehensive income

Debt instruments that meet the following conditions
are subsequently measured at fair value through other
comprehensive income (except for debt instruments
that are designated as at fair value through profit or loss
on initial recognition):

• the asset is held within a business model whose
objective is achieved both by collecting contractual
cash flows and selling financial assets; and

• t he contractual terms of the instrument give rise
on specified dates to cash flows that are solely
payments of principal and interest on the principal
amount outstanding.

Fair value through profit or loss

Assets that do not meet the criteria for amortised cost
or fair value through OCI, are measured at fair value
through profit or loss e.g. investments in mutual funds.
A gain or loss on a debt investment that is subsequently
measured at fair value through profit or loss is recognised
in profit or loss and presented net in the statement of
profit and loss within other gains/(losses) in the period in
which it arises.

Equity instruments

Investments in equity instruments at FVTPL

Investments in equity instruments are classified as at
FVTPL, unless the Company irrevocably elects on initial
recognition to present subsequent changes in fair value
in other comprehensive income for equity instruments
which are not held for trading.

Investments in equity instruments at FVTOCI

On initial recognition, the Company can make an
irrevocable election (on an instrument-by-instrument
basis) to present the subsequent changes in fair value
in other comprehensive income. This election is not
permitted if the equity investment is held for trading.
These elected investments are initially measured at fair
value plus transaction costs. Subsequently, they are
measured at fair value with gains and losses arising from
changes in fair value recognised in other comprehensive
income and accumulated in the reserve for 'equity
instruments through other comprehensive income'.
The cumulative gain or loss is not reclassified to profit or
loss on disposal of the investments.

1.B.14.3 Impairment of financial assets

The Company applies the expected credit loss model
for recognising impairment loss on financial assets
measured at amortised cost, lease receivables, trade

receivables, contract assets, other contractual rights to
receive cash or other financial asset.

For trade receivables, the Company measures
the loss allowance at an amount equal to lifetime
expected credit losses.

Further, for the purpose of measuring lifetime expected
credit loss allowance for trade receivables and contract
asset, the Company has used a practical expedient as
permitted under Ind AS 109. This expected credit loss
allowance is computed based on a provision matrix which
takes into account historical credit loss experience and
adjusted for forward-looking information. The Company
assesses on a forward-looking basis the expected credit
losses associated with its assets carried at amortised
cost and FVOCI debt instruments. The impairment
methodology applied depends on whether there has
been a significant increase in credit risk. Note 50.8 details
how the Company determines whether there has been a
significant increase in credit risk.

1.B.14.4 Effective interest method

I ncome is recognised on an effective interest basis for
debt instruments other than those financial assets
classified as FVTPL. Interest income is recognised in the
Statement of Profit and Loss.

1.B.14.5 De-recognition of financial assets

A financial asset is derecognised only when Company
has transferred the rights to receive cash flows from
the financial asset. Where the entity has transferred an
asset, the Company evaluates whether it has transferred
substantially all risks and rewards of ownership of
the financial asset. In such cases, the financial asset
is derecognised.

On derecognition of a financial asset in its entirety, the
difference between the asset's carrying amount and the
sum of the consideration received and receivable and
the cumulative gain or loss that had been recognised in
other comprehensive income and accumulated in equity
is recognised in profit or loss if such gain or loss would
have otherwise been recognised in profit or loss on
disposal of that financial asset.

B.15 Financial liabilities and equity instruments
Classification as debt or equity

Debt and equity instruments issued by the Company
are classified as either financial liabilities or as equity
in accordance with the substance of the contractual
arrangements and the definitions of a financial liability
and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a
residual interest in the assets of an entity after deducting
all of its liabilities. Equity instruments issued by a
Company are recognised at the proceeds received, net of
direct issue costs.

Repurchase of the Company's own equity instruments
is recognised and deducted directly in equity. No gain
or loss is recognised in profit or loss on the purchase,
sale, issue or cancellation of the Company's own
equity instruments.

1.B.15.1 Classification and subsequent measurement

Financial liabilities are measured at amortised cost.

Financial liabilities (including borrowings and trade
and other payables) are subsequently measured at
amortised cost using the effective interest method.
The effective interest method is a method of calculating
the amortised cost of a financial liability and of allocating
interest expense over the relevant period. The effective
interest rate is the rate that exactly discounts estimated
future cash payments (including all fees and points paid
or received that form an integral part of the effective
interest rate, transaction costs and other premiums
or discounts) through the expected life of the financial
liability, or (where appropriate) a shorter period, to the net
carrying amount on initial recognition.

1.B.15.2 De-recognition of financial liabilities

The Company derecognises financial liabilities when, and
only when, the Company's obligations are discharged,
cancelled, or have expired. An exchange with a lender
of debt instruments with substantially different terms
is accounted for as an extinguishment of the original
financial liability and the recognition of a new financial
liability. Similarly, a substantial modification of the terms
of an existing financial liability (whether or not attributable
to the financial difficulty of the debtor) is accounted for
as an extinguishment of the original financial liability and
the recognition of a new financial liability. The difference
between the carrying amount of the financial liability
derecognised and the consideration paid and payable is
recognised in profit or loss.

1.B.15.3 Foreign exchange gains and losses

For financial liabilities that are denominated in a foreign
currency and are measured at amortised cost at the end
of each reporting period, the foreign exchange gains and
losses are determined based on the amortised cost of
the instruments and are recognised in 'Other income' as
'Net foreign exchange gains/(losses)'.

1.B.16 Derivative financial instruments

The Company enters into derivative financial instruments
viz. foreign exchange forward contracts, interest
rate swaps and cross currency swaps to manage its
exposure to interest rate, foreign exchange rate risks and
commodity prices. The Company does not hold derivative
financial instruments for speculative purposes.

Derivatives are initially recognised at fair value at the
date the derivative contracts are entered into and are
subsequently remeasured to their fair value at the end
of each reporting period. The resulting gain or loss is
recognised in profit or loss immediately.

1.B.17 Leases:

The Company as lessee:

Leases are recognised as a right-of-use asset and
a corresponding liability at the date at which the
leased asset is available for use by the company.
Contracts may contain both lease and non-lease
components. The Company has elected not to separate
lease and non-lease components and instead accounts
for these as a single lease component.

1) Lease Liabilities

Assets and liabilities arising from a lease are initially
measured on a present value basis. Lease liabilities
include the net present value of the lease payments.
The lease payments include fixed payments
(including in substance fixed payments) less any
lease incentives receivable, variable lease payments
that are initially measured using the index or a rate at
the commencement date, and amounts expected to
be paid under residual value guarantees. The lease
payments also include the exercise price of a
purchase option reasonably certain to be exercised
by the Company and payments of penalties for
terminating the lease, if the lease term reflects
the Company exercising the option to terminate.
Variable lease payments that do not depend on an
index or a rate are recognised as expenses in the
period in which the event or condition that triggers
the payment occurs. Lease payments to be made
under reasonably certain extension options are
also included in the measurement of the liability.
The lease payments are discounted using the
lessee's incremental borrowing rate (since the
interest rate implicit in the lease cannot be easily
determined). Incremental borrowing rate is the
rate of interest that the Company would have to
pay to borrow over a similar term, and a similar

security, the funds necessary to obtain an asset of
a similar value to the right of-use asset in a similar
economic environment.

Lease payments are allocated between principal
and finance cost. The finance cost is charged to
profit or loss over the lease period so as to produce
a constant periodic rate of interest on the remaining
balance of the liability for each period.

2) Right-of-use assets

Right-of-use assets are measured at cost
comprising the amount of the initial measurement
of lease liability, lease payments made before the
commencement date, any initial direct costs and
restorations costs.

Right-of-use assets are depreciated over the lease
term on a straight-line basis. Right-of-use assets
are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted
for any re-measurement of lease liabilities.

Extension and termination options are included
in many of the leases. In determining the lease
term the management considers all facts and
circumstances that create an economic incentive
to exercise an extension option, or not exercise a
termination option.

Deferred tax on the deductible temporary difference
and taxable temporary differences in respect of
carrying value of right of use assets and lease
liability and their respective tax bases are recognised
on a net basis.

3) Short term leases and leases of low value assets

Payments associated with short-term leases of
equipment and all leases of low-value assets are
recognised on a straight-line basis as an expense
in profit or loss. Short-term leases are leases with a
lease term of 12 months or less. Low-value assets
comprise assets having value less than ' 350,000.

B.18 Securities Premium

(i) Securities premium includes the difference
between the face value of the equity shares and the
consideration received in respect of shares issued.

(ii) The issue expenses of securities which qualify
as equity instruments are written off against
securities premium.

1 .B.19 Earnings per share

Basic earnings per share is computed by dividing the
profit / (loss) for the year by the weighted average
number of equity shares outstanding during the year.

Ordinary shares to be issued upon conversion of a
mandatorily convertible instrument are included in the
calculation of basic earnings per share from the date
the contract is entered into. Diluted earnings per share
is computed by dividing the profit / (loss) for the year
as adjusted for dividend, interest and other charges to
expense or income (net of any attributable taxes) relating
to the dilutive potential equity shares, by the weighted
average number of equity shares considered for deriving
basic earnings per share and the weighted average
number of equity shares which could have been issued
on the conversion of all dilutive potential equity shares.
Potential equity shares are deemed to be dilutive only
if their conversion to equity shares would decrease the
net profit per share from continuing ordinary operations.
Potential dilutive equity shares are deemed to be
converted as at the beginning of the period, unless they
have been issued at a later date.

1.B.20 Segment Reporting

Operating segments are reported in a manner consistent
with the internal reporting provided to the chief operating
decision maker.

The board of directors of Afcons Infrastructure Limited
assesses the financial performance and position of the
Company and makes strategic decisions. The board of
directors, which has been identified as being the chief
operating decision maker, consists of the key managerial
personnel and the directors who are in charge of
the corporate planning. Refer note 34 for segment
information presented.

1.B.21 Credit Risk

The Company assess on a forward-looking basis
the expected credit losses associated with its assets
measured at amortised cost which includes lease
receivables, trade receivables, other contractual rights
to receive cash etc. The impairment methodology
applied depends on whether there has been a significant
increase in the credit risk since initial recognition of
these financial assets. For the evaluation, the Company
considers historical credit loss experience and adjusted
for forward-looking information. Note 50.8 details how
the Company determines whether there has been a
significant increase in credit risk.

1.B.22 Government grants, subsidies and export incentives

Government grants are not recognised until there is
reasonable assurance that the Company will comply
with the conditions attaching to them and that the grants
will be received.

Government grants are recognised in profit or loss on a
systematic basis over the periods in which the Company
recognises as expenses the related costs for which the
grants are intended to compensate.

1.B.23 Share-based payments

Share-based payment transactions of the Company.

Equity-settled share-based payments to employees are
measured at the fair value of the equity instruments at
the grant date. Details regarding the determination of the
fair value of equity-settled share-based transactions are
set out in note 53.

The fair value determined at the grant date of the
equity-settled share-based payments is expensed on
a straight-line basis over the vesting period, based
on the Company's estimate of the number of equity
instruments that will eventually vest. At each reporting
date, the Company revises its estimate of the number of
equity instruments expected to vest. The impact of the
revision of the original estimates, if any, is recognised in
profit or loss such that the cumulative expense reflects
the revised estimate, with a corresponding adjustment to
equity-settled employee benefits reserves.

C. Critical estimates and judgements

a) Revenue recognition

The Company's revenue recognition policy, which is set
out in Note 1.B.3, is central to how the Company values
the work it has carried out in each financial year.

These policies require forecasts to be made of the
outcomes of long-term construction services, which
require assessments and judgements to be made on
changes in scope of work and claims and variations.

Across construction services there are several long-term
and complex projects where the Company has
incorporated significant judgements over contractual
entitlements. The range of potential outcomes could
result in a materially positive or negative change to
underlying profitability and cash flow.

Estimates are also required with respect to the below
mentioned aspects of the contract.

• Determination of stage of completion;

• Estimation of project completion date;

• Provisions for foreseeable losses; and

• Estimated total revenues and estimated total costs
to completion, including claims and variations.

These are reviewed at each balance sheet date and
adjusted to reflect the current best estimates.

Revenue and costs in respect of construction contracts
are recognized by reference to the stage of completion
of the contract activity at the end of the reporting
period, measured based on the proportion of contract
costs incurred for work performed to date relative to
the estimated total contract costs, except where this
would not be representative of the stage of completion.
Variations in contract work, claims and incentive
payments are included to the extent that the amount
can be measured reliably and its receipt is considered
probable. When it is probable that total contract costs
will exceed total contract revenue, the expected loss is
recognized as an expense immediately.

b) Taxation

The Company is subject to tax in a number of jurisdictions
and judgement is required in determining the worldwide
provision for income taxes.

The uncertain tax positions are measured at the amount
expected to be paid to taxation authorities when the
Company determines that the probable outflow of
economic resources will occur. Where the final tax
outcome of these matters is different from the amounts
that were initially recorded, such differences will impact
the current and deferred income tax assets and liabilities
in the period in which such determination is made.

c) Contingencies

I n the normal course of business, contingent liabilities
may arise from litigation and other claims against
the Company. There are certain obligations which
managements have concluded based on all available
facts and circumstances are not probable of payment
or difficult to quantify reliably and such obligations are
treated as contingent liabilities and disclosed in the
notes but are not provided for in the standalone financial
statements. Although there can be no assurance of
the final outcome of the legal proceedings in which
the Company is involved it is not expected that such
contingencies will have material effect on its financial
position or profitability.

d) Useful lives of property, plant and equipment

As described in note 1.B.8 above, the Company
reviews the estimated useful lives of property, plant
and equipment and residual values at the end of each
reporting period. There was no change in the useful life
and residual values of property, plant and equipment as
compared to previous year.

e) Impairment of trade receivables and contract assets

The Company has recognised trade receivables with a
carrying value of ' 3,917.40 Crores (as at March 31,2025:
' 3,364.64 Crores). The recoverability of trade receivables
is regularly reviewed in the light of the available economic
information specific to each receivable and specific
provisions are recognised for balances considered to
be irrecoverable.

The impairment provisions for trade receivables are
based on assumptions about risk of default and
expected loss rates. The Company uses judgement
in making these assumptions and selecting the inputs
to the impairment calculation, based on Company's
past history, credit risk, existing market conditions as
well as forward looking estimates at the end of each
reporting year. The expected credit loss allowance for
trade receivables is made based on a provision matrix.
The provision matrix takes into account historical
credit loss experience and adjusted for forward-looking
information. Where the actual cash shortfalls vary from
those estimated, these could impact the level of profit or
loss recognised by the Company. The same policies are
followed for contract assets.

f) Retirement benefit obligations

Details of the Company's defined benefit pension
schemes are set out in Note 1.B.6, including tables
showing the sensitivity of the pension scheme obligations
and assets to different actuarial assumptions.

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

g) Variable Consideration

The forecast profit on contracts includes key judgements
over the expected recovery of costs arising from the
following: variations to the contract requested by the
customer, compensation events, and claims made by
the Company for delays or other additional costs for
which the customer is liable. These claims could result in
disputes that get settled through an arbitration process
wherein the outcome of these awards including the timing

and the amount (including interest thereon) requires a
reasonable degree of estimation. The inclusion of these
amounts requires estimation of their recoverability
and could impact the level of profit or loss recognized
by the Company.

h) Classification of assets / liabilities as Current and
Non-current

The balance sheet presents current and non-current
assets and current and non-current liabilities, as
separate classifications. This classification involves
managements estimate on expected realization of
assets and settlement of liabilities within 12 months
after the reporting year.

i) Classification of Joint Arrangement as a Joint
Operation/Joint Venture

A Joint Operation is a joint arrangement whereby the
parties that have joint control of the arrangement
have rights to the assets and obligations for the
liabilities, relating to the arrangements. Joint control
is the contractually agreed sharing of control of an
arrangement, which exist only when decisions about
the relevant activities require unanimous consent of the
parties sharing control.

When an entity undertakes its activities under joint
operations, the Company as a joint operator recognises
in relation to its interest in a joint operation:

a) Its assets, including its share of any

assets held jointly;

b) Its liabilities, including its share of any liabilities
incurred jointly;

c) Its revenue from the sale of the output arising from
the joint operation;

d) Its share of the revenue from the sale of the output
by the joint operation and

e) Its expenses, including its share of any expenses
incurred jointly.

Accordingly, the Company has evaluated all its
joint arrangements on the basis of the contractual
arrangements entered into between the parties to
the joint arrangements for execution of the project
irrespective of the legal form.

D. Recent Indian Accounting Standards (Ind AS)

Ministry of Company Affairs notifies new standards
or amendments to the existing standards. There is no
such notification which would have been effective from
1^st April, 2026.

Nature and purpose of each reserve within other equity

Capital reserve

The capital reserve is on account of acquisition of subsidiary companies
Capital redemption reserve

As per the provisions of Companies Act, capital redemption reserve is created out of the general reserve for the amount
equivalent to the paid up capital of shares bought back by the company.

Securities premium reserve

Where Company issued shares at a premium, a sum equal to the aggregate amount of the premium received on those shares
shall be transferred to a "securities premium account” as per the provisions of applicable Companies Act. This reserve is utilized
as per the provisions of the Companies Act.

Share-based payments reserve

The share-based payments reserve is used to recognise the value of equity settled share-based payments provided to employees,
including key management personnel, as part of their remuneration. Refer to Note 53 for further details of these plans.

Contingency reserve

The contingency reserve was created to protect against loss for amounts due from a partnership firm.

General reserve:

The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. There is no
policy of regular transfer. As the general reserve is created by a transfer from one component of equity to another and is not an
item of other comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

Foreign currency translation reserve:

Exchange differences relating to the translation of the results and net assets of the foreign operations from their functional
currencies to the presentation currency (i.e. ') are recognised directly in other comprehensive income and accumulated in
the foreign currency translation reserve. The cumulative amount is reclassified to profit or loss when the net investment
is disposed-off.

Retained earning and dividend on equity shares:

This represent the surplus / (deficit) of the profit or loss. The amount that can be distributed by the Company to its equity
shareholders is determined considering the requirements of the Companies Act, 2013. Thus, the amount reported above are not
distributable in entirety.

Reserve for equity instrument measured through other comprehensive income

This reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair
value through other comprehensive income. The Company transfers amounts from this reserve to retained earnings when the
relevant equity securities are derecognized.

Note No. 20.3:

(i) Security:

Secured by first charge by way of equitable mortgage on the immovable properties of the Company situated at Andheri,
Mumbai and Delhi on a pari passu basis. The Company's stock of construction material, stores, WIR Trade Receivables
is further secured under indenture of mortgage (excluding current assets of High Speed Rail project) and first charge on
movable plant & machinery of the Company upto ' 900 Crores with other term lenders and project specific limit on a pari
passu basis. Cash credit facility / working capital demand loan is further secured by the Company's proportionate share of
current assets in all the joint ventures, both present and future.

(ii) Interest:

Cash credit facility and working capital demand loan from banks carry interest ranging from 7.55% to 9.95% per annum (As
at 31^st March, 2025 interest ranging from 9.09% to 10.35% per annum). Buyers Credit carry interest ranging from @ 2.60%
to 4.31% per annum (As at 31^st March, 2025 interest ranging from @ 3.07% to 5.39% per annum)

a. Defined contribution plan

(i) Provident fund

(ii) Superannuation fund

(iii) State defined contribution plans

The provident fund and the state defined contribution plan are operated by the regional provident fund commissioner and
the superannuation fund is administered by the Life Insurance Corporation (LIC). Under the schemes, the Company is
required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits.

The total expense recognised in statement of profit or loss of ' 76.14 Crore (for the year ended 31^st March, 2025'70.40
Crore) represents contributions payable to these plans by the Company at rates specified in the rules of the plans.

b. Defined benefit plan

Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who
are in continuous service for a period of 4 years and 240 days are eligible for gratuity. The amount of gratuity
payable on retirement/termination is the employees last drawn basic salary per month computed proportionately
for 15 days salary multiplied for the number of years of service without any ceiling limit as given under Payment of
Gratuity Act, 1972.

Whereas on death of an employee the amount of gratuity payable is amount equivalent to one month salary, payable
for each completed year of service or part thereof in excess of six months in terms of Gratuity scheme of the Company
or as per payment of the Gratuity Act, whichever is higher.

The gratuity plan of the Company is funded and the Company accounts for gratuity benefits payable in future based
on an independent external actuarial valuation carried out at the end of the year using Projected Unit Credit Method.

Investment risk

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by
reference to market yields at the end of the reporting year on government bonds.

Interest risk

A decrease in the bond interest rate will increase the plan liability.

Longevity risk

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of
plan participants both during and after their employment. An increase in the life expectancy of the plan participants
will increase the plan's liability.

Salary risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants.
As such, an increase in the salary of the plan participants will increase the plan's liability.

The risk relating to benefits to be paid to the dependents of plan members (widow and orphan benefits) is re-insured
by an external insurance company.

No other post-retirement benefits are provided to these employees.

In respect of the plan, the most recent actuarial valuation of the present value of the defined benefit obligation were
carried out as at 31^st March, 2026 by an actuary. The present value of the defined benefit obligation, and the related
current service cost and past service cost, were measured using the Projected Unit Credit Method.

(vi) Sensitivity analysis method

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation
as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions
may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been
calculated using the Projected Unit Credit Method at the end of the reporting year, which is the same as that applied in
calculating the defined benefit obligation liability recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

The average duration of the benefit obligation at 31^st March, 2026 is 8 years (as at 31^st March, 2025: 7 years).

The Company expects to make a contribution of ' 12.00 Crore (as at 31^st March, 2025: ' 18.69 Crore) to the defined benefit
plans during the next financial year.

(vii) Maturity profile of defined benefit obligation:

Projected benefits payable in future years from the date of reporting

(v) Sensitivity Analysis

Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary
increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the
respective assumptions occurring at the end of the reporting year, while holding all other assumptions constant.

1) If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by ' 9.67 Crore
(increase by '11.07 Crore) (as at 31^st March, 2025: decrease by ' 6.00 Crore (increase by ' 6.80 Crore)).

2) If the expected salary growth increases (decreases) by 1%, the defined benefit obligation would increase by

' 11.02 Crore (decrease by ' 9.80 Crore) (as at 31^st March, 2025: decrease by ' 6.65 Crore (increase by ' 5.98 Crore)).

3) If the employee turnover increases (decreases) by one year, the defined benefit obligation would decrease by

' 0.10 Crore (increase by ' 0.08 Crore) (as at 31^st March, 2025: decrease by ' 0.78 Crore (increase by ' 0.85 Crore)).

d. Compensated Absences

The liability for Compensated absences (non-funded) as at year end is ' 87.44 Crore (as at 31^st March, 2025'61.58 Crore)
covers the Company's liability for sick and privilege leave and is presented as current liabilities, since the Company does
not have an unconditional right to defer the settlement of any of these obligations.

The Company makes provision for compensated absences based on an actuarial valuation carried out at the end of the
year using the Projected Unit Credit Method.

NOTE NO. 33. CORPORATE SOCIAL RESPONSIBILITY:

Disclosure of Corporate Social Responsibility (CSR) expenditure in line with the requirement with Guidance Note on "Accounting
for Expenditure on Corporate Social Responsibility Activities”.

As per Section 135 of the Companies Act 2013, a CSR Committee has been formed by the Company, The areas for CSR
activities are eradication of hunger and malnutrition, promoting education, art, culture, healthcare, destitute care and rural
development projects.

NOTE NO. 36. AFCONS GUNANUSA JOINT VENTURE (AGJV)

AGJV had submitted claims to ONGC, arising on account of cost overruns due to change orders, in terms of the provisions of
the contract. The Joint venture had invoked arbitration in respect of the aforesaid change orders.

The Arbitration award was published on 10^th March 2026, whereby most of the Claims of AGJV were rejected and the counter
claims of ONGC were entirely rejected The Arbitral Tribunal (AT) has adjudicated and allowed only three claims, which collectively
amount to ' 17,100,000/- and USD 182,617. In addition to these, the AT has permitted the Claimant's request for the release of
Bank Guarantee (BG) submitted in lieu of Liquidated Damages (LD).

The award is not acceptable to the JV and accordingly the JV is in the process of filing appeal against the same. However, as a
matter of abundance caution, AGJV has made a provision for doubtful debtors for '124.12 Crores.

NOTE NO. 37. TRANSTONNELSTROY AFCONS JOINT VENTURE (TAJV)

The Transtonnelstroy Afcons Joint Venture ("the JV”) had submitted variations to the client for two projects (package UAA-01
and package UAA-05) arising on account of cost overruns, due to unforeseen geological conditions, delays in handing over
of land and change in scope of work etc., in terms of the provisions of the contract with the Chennai Metro Rail Limited (""the
client'"'), which the Management believes is attributable to the client.

During Financial Year 2021-22, Arbitration Panel issued a unanimous award in favour of Joint Venture granting extension
of time in terms of number of days (the "claim no. 1 and 2”). The Arbitral Awards on Extension of Time matters (Claim No.
1 and 2) of Contract UAA-01 and UAA-05 were challenged by CMRL before the Ld. Single Judge of Madras High Court and
succeeded. The order of the Ld. Single Judge was then challenged by TTA JV before the Hon'ble Division Bench and the same
was dismissed vide order dated 01^st February 2023. The said order of the Hon'ble Division Bench has been challenged before the
Hon'ble Supreme Court by TTA JV. The Hon'ble Supreme Court was pleased to admit the SLP filed by TTA JV and the same is
registered as Civil Appeal. An early hearing application is filed by TTAJV to list the matters early. However, the Hon'ble Supreme
Court did not allow the said application.

Based on the assessment made, both the orders were not challenged by CMRL on the Merits of the Arbitral Award but on the
alleged procedural lapses on part of the Tribunal (i.e., no opportunity provided to CMRL on account of two particular documents
sought by the Tribunal from TTA JV). Further, the Ld. Single Judge in its Order has also granted liberty to the Parties to go back
to the existing Tribunal to get opportunity on the two documents. Also, the Hon'ble Division bench after hearing prima facie case
has sought consent of parties on remanding the matter to the same Tribunal. However, since CMRL did not agree for consenting
to the same and also the Hon'ble bench does not have special power to direct the parties to go before the same Tribunal, the
Hon'ble bench proceeded to hear the matter and pronounced the order.

Arbitration proceedings related to claims for cost of extension of time granted in claim no. 1 and 2 and related cost i.e. Claim No.
3 and 3A along with EOT claimed beyond Arbitration Award and associated cost, forming part of Claim No 8 have been kept
on hold and shall be initiated based on outcome, Civil Appeal of the SLP filed with Hon'ble Supreme Court. Disputes related to
release of withheld amount, release of retained amount, refund of amount encashed against Bank Guarantees amounting to
' 25.77 Crore (as at March 31, 2025: ' 25.77 Crore) and issuance of final taking over certificate (the "claim no. 8”) were being
heard before arbitration tribunal. Further, there are counter claims submitted by CMRL amounting ' 1,945.81 Crore, which was
rejected by Arbitration Tribunal on a unanimous order passed on 02^nd Aug 2024 and 16^th Aug 2024. Also, in the same orders,
effective date for issuance of Taking over certificate and issuance of Performance certificate by CMRL for both the packages
were prescribed.

In the earlier years, Joint Venture had received two favourable arbitration awards, amounting ' 106.64 Crore and ' 14.67
Crore in few of the other matters. The Client has challenged these arbitration awards before the Hon'ble High Court, Madras.
Pending disposal of these matters in the court, client has, upon submission of the bank guarantee by the Joint Venture,
deposited part of the award amount with the Joint Venture, pursuant to an interim stay order from Hon'ble High Court, Madras.
The arbitration awards amounting to ' 120.81 Crore (as at March 31,2025: ' 120.81 Crore) and interest on arbitration award of
' 30.63 Crore (as at March 31,2025: ' 30.63 Crore) has been recognized as "Non-current Trade Receivables”, "Other non-current
financial assets - Interest on Trade Receivables as per Arbitration Awards” respectively, and the amount of ' 79.28 Crore (as at
March 31, 2025: ' 79.28 Crore) received against such award has been recognized as "Other Non-current Liabilities -Contract
Liabilities- Advances from customers”. During the previous year single bench of High court has passed judgment on June 21,2024
and January 31,2025, setting aside the Arbitration Award of ' 106.64 Crore and ' 14.67 Crore respectively. TTA JV made an
appeal to Division Bench High Court against the Order. The matter didn't reach for hearing and is yet to be listed.

Based on the assessment, historical experience in similar circumstances and technical evaluation of the aforesaid matters
related to claims and counter claims, carried out by Joint Venture's management, after considering the current facts and status
of negotiation/amicable settlement with the client/ proceedings in arbitration, High Court and Supreme Court as of date, which is
supported by legal opinion, management of Joint Venture is of the view that the "amount due from customer under construction
contracts” recorded in the books of accounts is based on cost actually incurred and so claimed but not duly compensated.
Management of joint venture is confident of getting favourable order/ award and is of the opinion that amount of ' 659.87 Crore
(as at March 31, 2025: ' 659.87 Crore) recognized towards such variations/ claims in 'Amounts due from customers under
construction contracts' as non-current assets, an amount of ' 120.81 Crore (as at March 31,2025: ' 120.81 Crore) towards the
arbitration award recognized as 'Non-current Trade Receivables', an amount of ' 30.63 Crore (as at March 31, 2025: ' 30.63
Crore) interest on arbitration award as "Other non-current financial assets - Interest on Trade Receivables as per Arbitration
Awards” and an amount of ' 25.77 Crore (as at March 31, 2025: ' 25.77 Crore) bank guarantee encashed by client as "Other
financial assets- non-current: Other Receivables”, is appropriate and the same is considered as good and fully recoverable.
Joint Venture management does not anticipate any loss to be recognized or contingent liability to be disclosed at this stage.
However, considering that the negotiation, proceedings in arbitration, High Court and Supreme Court are ongoing, the duration
and outcome is uncertain."

NOTE NO. 38. DAHEJ STANDBY JETTY PROJECT UNDERTAKING (DJPU)

Management of Dahej Standby Jetty Project Undertaking ("DJPU”) has submitted variations towards the amount of claims in
terms of the provisions of the contract, which were not approved by the Petronet LNG Limited (""the client""). During the year
2018-19, management has invoked arbitration for settlement of their claims against the client.

During the earlier year, an unfavourable award was granted in Arbitration, towards claims of liquidated damages for delay in
completion of works by Joint Venture for ' 79.28 Crore (including interest of ' 20.45 Crore). Client has subsequently encashed
the bank guarantees given by a Joint Venturer Partner, Afcons Infrastructure Limited of ' 79.28 Crore and recovered the award
amount. The amount of encashed Bank Guarantee has been recorded by the Joint Venture as Other Receivables from customer
(Other non-current assets) and Payable to JV Partner (non-current borrowings). Thereafter, the Joint Venture has filed petition
at Hon'ble High Court, Delhi for setting aside the unfavourable award and also submitted claims for additional cost incurred
w.r.t extended stay and acceleration cost, considering that the delay is attributable to the client and in terms of the contractual
provisions. This petition is admitted by Hon'ble High Court, Delhi and hearings is currently in process. The Hon'ble High Court
Delhi on 22^nd November 2022 directed client to submit an undertaking signed by President (Finance) of client, to the effect that it
shall restitute the entire amount in the event Joint Venture succeeds in its challenge to the award. The next hearing is scheduled
on 17^th August, 2026.

Based on the assessment, historical experience in similar circumstances and technical evaluation of the aforesaid matters
related to claims, carried out by Joint Venture's management, after considering the current facts and status of proceedings
in High Court as of date, which is supported by legal opinion, management of Joint Venture is of the view that the amount
recoverable from the client of ' 79.28 Crore (as at 31^st March, 2025 : ' 79.28 Crore) disclosed as 'Other Receivables' and the
'amount due from customer under construction contract' of ' 11.10 Crore (as at 31^st March, 2025: ' 11.10 Crore) is appropriate
and no further provision for aforesaid claims and receivables is required to be made as these have been considered as good
and fully recoverable by the Management. However, considering that the proceedings in High Court are ongoing, the duration
and outcome is uncertain.

NOTE NO. 39.

(a) The Company has been legally advised that outstanding interest free advances aggregating to ' 689.41 Crore (as at
31^st March, 2025'894.68 Crore) before elimination made towards financing the unincorporated joint operations do not
come under the purview of Section 186 of Companies Act, 2013 as the Company is in the business of constructing and
developing infrastructure facilities.

(b) In view of non-applicability of section 186 of the Companies Act, 2013, the details of particulars required to be made
thereunder in the financial statements are not applicable in relation to loan made, guarantee given or security provided.
For investments made refer to Note no. 4.

NOTE NO. 40. CHENAB BRIDGE PROJECT UNDERTAKING ("CBPU")

Konkan Railway Corporation Limited (""KRCL¹") had issued a contract for the construction of Steel Arch Bridge across the
river Chenab on 24^th August. 2004.The project was completed on 3^rd August. 2023. The Company has raised claims towards
reimbursement of additional expenses on account of extended stay, categorisation of excavation works, compensation due
to loss of productivity, expenses incurred due to a change in alignment, etc., in terms of the provisions of the contract, which
the management believes are attributable to the client. These claims are in various stages of arbitration and the High Court.
In December 2025, the company has received a favourable arbitration award for one of its claims amounting to ' 243.53 Crore.

The company has recorded revenue from operations amounting to '165.62 crore, and balance amount of '77.91 crore is
adjusted from contract assets. The balance amount of '115.00 crore is shown 'Contract assets - Non-current assets.

Total amount of '243.53 crore is considered as Current-trade Receivables. Based on the assessment, historical experience in
similar circumstances and technical evaluation of the aforesaid matters related to claims carried out by the management, after
considering the current facts and status of proceedings in arbitration and High Court as of date, which is supported by legal
opinion, the management is confident of getting a favourable judgement and recover amount recorded in books as 'Contract
assets - Non-current assets' and 'Current-trade Receivables' related to this project. However, considering that the proceedings
in arbitration and High Court are ongoing, the duration and outcome is uncertain.

NOTE NO. 41.

The Company had executed project awarded by the Board of Trustees of the port of Mumbai (MbPT) for Modernization of the
existing Marine Oil Terminal and berths/jetties J1, J2 and J3 at the Multi-cargo Marine Oil Terminal of Jawahar Dweep based in
Mumbai Harbor. The project had completed in June 2003.

The Company had gone into arbitration with MbPT for compensation for extended stay related to projects and was successful
in getting an award of ' 96.02 Crore including interest till the date of award, in its favour on November 2011. However, the Award
was challenged by MbPT u/s 34 of Arbitration and Conciliation Act, 1996 to the Single Bench of Bombay High Court. The Single
Bench had set aside the award and passed the order in favor of MbPT. The Company filed an appeal with the High Court of
Mumbai for a two bench Judge as against order of Single Bench. The appeal was admitted by the High Court for a hearing by
a two bench Judge in the month of April 2018. Considering the legal opinion obtained and facts of the matter, the Company is
confident of winning the case and recovering the entire amount from MbPT in future.

NOTE NO. 42.

The Company had executed projects awarded by Uttar Pradesh Expressways Industrial Development Authority for Construction
of Six-lane green field Kannauj to Unnao Expressway (package IV) and Firozabad to Etavah (package II). During the execution of
these projects the client issued various change orders which required additional deployment of resources. The expressway was
inaugurated and put to use in December 2016. These projects were completed 13 months ahead of schedule.

Due to the various change orders, the Company has raised various claims towards additional expenses on account of
change of scope, additional works, royalty claim etc. An amount of ' 221.96 Crore (as at 31^st March, 2025'221.96 Crore) is
outstanding towards unbilled receivables and disclosed under note no.8 "Contract assets". The matter is referred to Arbitration.
Considering the legal opinion obtained and facts of the matter, the Company is confident of winning the case and recovering the
entire amount from Uttar Pradesh Expressways Industrial Development Authority.

NOTE NO. 43.

(a) The Company has unbilled receivables towards various ongoing and completed projects disclosed under Note no.
8 'Contract assets'. This unbilled work also includes variations on account of cost overruns due to unforeseen geological
conditions, delays in handling over land, change in scope of work, etc. which are under discussions at various levels
including customer, in arbitration, Dispute Adjudication Board etc. Based on the discussions and merits of the claims, the
management is confident about the recovery of these pending variations with respect to unbilled receivables disclosed
under note no.8 ""Contract assets^,in.

(b) The Company has a total net receivable of ' 1,259.08 Crore (as at 31^st March, 2025 : ' 1,163.45 Crore) (including interest
on arbitration awards ' 266.08 Crore (as at 31^st March, 2025 : ' 303.41 Crore)) which is a part of Trade Receivables shown
under note 5 and Other Financial Assets under note 7 towards arbitration awards which are won by the Company in past,
these arbitration awards have been further challenged by the customers before the session court or higher courts of law.
Pending disposal of these matters in the courts, management has recognized the amount as per the arbitration award
and part payment has been received by management under Niti Aayog Scheme upon submission of a bank guarantee by
the Company, which is disclosed as advances from customers in note no.17 'Contract Liability'. Management is confident
about the recovery of the amounts involved in the pending matters at various levels.

NOTE NO. 44.

An EPC Contract was entered into between Afcons Infrastructure Ltd ("Afcons” or "the Company”) and Societe Autoroutiere du
Gabon ("SAG”) on 10^th September, 2020 for the rehabilitation and upgrading of the 2-lane national road in Gabon.

However, due to of several circumstances, not attributable to Afcons, the timelines under the EPC Contract and subsequent
amendments were adversely impacted, resulting in delays in the completion of the Contract works. Consequently, disputes arose
between the parties in relation to delays, alleged non-conformities, penalties, and other matters. Accordingly, the Company is
currently involved in the arbitration proceeding against SAG under ICC Arbitration.

Further, SAG has invoked the Performance Bond and Advance Payment Guarantee, amounting to EUR 17.84 million, and
terminated the EPC Contract vide its purported termination notice dated 18^th February, 2026. The Company has disputed such
actions and maintains that the termination is wrongful, contrary to the contractual framework, and not attributable to any
qualifying breach on the part of the Company.

In addition, pursuant to the purported termination, the Company has notified further claims against SAG, including recovery
of outstanding payments for work performed, demobilisation and termination costs, reimbursement of losses arising from
encashment of guarantees, loss of profit on the balance works, release of retention amounts and other associated damages.

Based on legal advice received and the materials presently available, the management believes that the Company has a
reasonably strong and well-founded case, supported by contractual provisions, contemporaneous project records and expert
analyses. However, the outcome of the arbitration proceedings is subject to the final determination of the Arbitral Tribunal,
including the assessment of evidence, merits of the claims and counterclaims, and quantification of amounts. However, the
Company is making applicable ECL provision as per the requirements of IND-AS.

NOTE NO. 45.

The Joint Operations have mentioned in their financial statement that as per the terms of agreement parent is committed to
provide additional funds as may be required to meet the working capital requirements of such Joint Operations.

Basis management's assessment, parent is committed to provide and can adequately source additional funds as may be
required to meet the working capital requirements of these Joint Operations.

NOTE NO. 46.

As on 31^st March, 2026, an amount of ' 578.88 Crore (as at 31^st March, 2025'558.62 Crore) (excluding Joint Operations) is
receivable towards GST Input Credit which includes unutilised credit of inputs and input service on account of inverted duty
structure. The Company has a robust Order book position of more than ' 32,500 Crore across India. Further, the Company has
initiated Arbitration towards variations and Time related claims with respect to various projects and management expects
favorable awards in these claims/ arbitration. Considering the facts as mentioned above, there is no doubt about the utilization
of the GST input credit balance against the future liabilities and the same is considered good.

NOTE NO. 47.

On 21^st November, 2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the Industrial
Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety. Health and Working Conditions Code,
2020 (collectively "new Labour Codes"} - consolidating 29 existing labour laws.

In accordance with the new Labour Codes, the Company has currently estimated the incremental impact on retiral benefits to
be ' 76.51 crore. Considering material regulatory-driven and non-recurring nature of this impact, this has been presented under
"Exceptional Items" in the standalone financial results. The Company continues to monitor developments on the Rules to be
notified by regulatory authorities, including clarifications/ additional guidance from authorities and will continue to assess the
accounting implications, basis such developments / guidance.

NOTE NO. 48. GOING CONCERN RELATED ASSESSMENT PERFORMED BY JOINT OPERATIONS.
a) Afcons Sener LNG Constructions Projects Pvt. Ltd.

Material uncertainty related to going concern:

The auditor of Joint Operations "Afcons Sener LNG Constructions Projects Private Limited" has given a note to accounts
in financial statement relating to going concern assumption used for preparation of financial statements. Basis the
Company's assessment company can adequately source the funding required of the mentioned Joint Operations.

NOTE NO. 49: ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III(i) Details of benami property held

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

(ii) Borrowings secured against current assets

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

(iii) Relationship with struck off companies

Relationship with Companies whose name is struck off under section 248 of the Companies Act, 2013 or Section 560 of
Companies Act, 1956.

(iv) Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under the Companies Act, 2013.

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

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

(vi) Utilisation of borrowings availed from banks and financial institutions

The borrowings obtained by Company from banks and financial institutions have been applied for the purposes for which
such loans were taken.

(vii) Undisclosed income

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

(viii) Details of crypto currency or virtual currency

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

(ix) Valuation of PP&E, intangible asset and investment property

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

(x) Utilisation of borrowed funds and share premium

A> 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 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 on behalf of the ultimate beneficiaries

B> 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

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

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

(xii) The Company is not declared as a wilful defaulter by any bank or financial institution or other lender during any
reporting period.

(xiii) The Company does not have any investment property during any reporting period, the disclosure related to fair value of
investment property is not applicable.

NOTE NO. 50. FINANCIAL INSTRUMENTS50.1 Capital management

The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to
stakeholders through the optimisation of the debt and equity balance.

The capital structure of the Company consists of net debt (borrowings as detailed in notes 14 and 20) offset by cash and bank
balances and total equity of the Company.

The Company reviews the capital structure on a regular basis. As part of this review, the Company considers the cost of capital
and the risks associated with each class of capital.

The risk management is governed by the Company's policy approved by the board of directors, which provide written
principles on foreign exchange risk, interest rate risk, the use of financial derivatives and non-derivative financial instruments.
Compliance with policies and exposure limits is reviewed on a continuous basis. The Company does not enter into or trade
financial instruments, including derivative financial instruments, for speculative purposes.

50.4 Market risk

The Company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.

50.5 Foreign currency risk management

The Company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions
in various countries. Foreign currency risk arises from future commercial transactions and recognised assets and liabilities
denominated in a currency that is not the Company's functional currency (INR). The risk is measured through a forecast of
highly probable foreign currency cash flows.

The carrying amounts of the Company's unhedged foreign currency denominated monetary assets and monetary liabilities at
the end of the reporting year are as follows:

50.5.1 Foreign currency sensitivity analysis

The Company is mainly exposed to the currency of USD, EURO, BDT, GHS, XAF, MUR, MZN, TZS and MVR.

The following table details the Company's sensitivity to a 5% increase and decrease in the Indian Rupee against the relevant
foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and
represents management's assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable
to the exposure outstanding on receivable and payables in the Company at the end of the reporting year. The sensitivity analysis
includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5%
change in foreign currency rates. A positive number below indicates an increase in the profit or equity where the Indian Rupee
strengthens 5% against the relevant currency. For a 5% weakening of the Rupee against the relevant currency, there would be a
comparable impact on the profit or equity, and the balances below would be negative. The impact of 5 % is also applicable on
outstanding foreign currency loans as on the reporting date.

In management's opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure
at the end of the reporting year does not reflect the exposure during the year.

50.5.2 Derivative financial instruments

There are no derivative financial instruments outstanding at the end of the reporting year.

50.6 Interest rate risk management

The Company is exposed to interest rate risk because entities in the company borrow foreign currency and local currency funds
at floating interest rates. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite,
ensuring the most cost-effective hedging strategies are applied.

50.6.1 Interest rate sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to interest rates for both derivatives and
non-derivative instruments at the end of the reporting year. For floating rate liabilities, the analysis is prepared assuming
the amount of the liability outstanding at the end of the reporting period was outstanding for the whole period. A 50 basis
point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents
management's assessment of the reasonably possible change in interest rates.

If interest rates had been 50 basis points higher/lower and all other variables were held constant, the company's profit for
the twelve month ended 31^st March, 2026 would decrease/increase by ' 5.52 Crore (31^st March, 2025: decrease/increase by
' 4.21 Crore). This is mainly attributable to the company's exposure to interest rates on its variable rate borrowings.

50.7 Other price risks

The Company is exposed to equity price risks arising from equity investments. Certain of the Company's equity investments are
held for strategic rather than trading purposes.

50.7.1 Equity price sensitivity analysis

The sensitivity analyses below have been determined based on the exposure to equity price risks at the end of the reporting year.
If equity prices had been 5% higher/lower:

Other comprehensive income for the year ended 31^st March, 2026 would increase / decrease by ' 0.01 Crore (31^st March, 2025:
decrease/increase by ' 0.01 Crore) as a result of the changes in fair value of equity investments measured at FVTOCI.

50.8 Credit risk management

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. Credit risk arises from investment in debt instruments, loans, trade receivables, other receivables, cash and
bank balance and derivate financial instruments.

The Company is exposed to credit risk on its financial assets, which comprise cash and cash equivalents, bank deposits, trade
receivables and loan receivables. The exposure to credit risks arises from the potential failure of counterparties to meet their
obligations. The maximum exposure to credit risk at the reporting date is the carrying amount of the financial instruments.

Cash and cash equivalents, bank deposits are held with only high rated banks/financial institutions, credit risk on them is
therefore insignificant.

Trade receivables and loan receivable

The Company assesses and manages credit risk on an internal credit evaluation system. It is performed by the finance team in
conjunction with the relevant business teams depending on the nature and type of the financial asset being evaluated.

The customer base of the Company highly comprises of government parties. Further, Company is having certain short term
loan receivables from the Group entities. Collateral is generally not obtained from customers. Other customers are subject to
credit verification procedures including an assessment of their independent credit rating, financial position, past experience and
industry reputation.

(A) To measure the expected credit losses on (a) trade receivables from government parties, and (b) trade receivables and loan
receivables from group companies, they have been considered to enjoy the low credit risk as they meet the following criteria:

i) they have a low risk of default,

ii) the counterparty is considered, in the short term, to have a strong capacity to meet its obligations in the near term, and

iii) the Company expect, in the longer term, that adverse changes in economic and business conditions might, but will
not necessarily, reduce the ability of the borrower to fulfil its obligations.

(B) Cash and cash equivalents, bank deposits are held with only high rated banks/financial institutions, credit risk on them is
therefore insignificant.

(C) For other trade receivables (including contract assets), the Company applies 'Expected Credit Loss' model for recognising
impairment loss on trade receivables as well as contract asset

The Company's customer profile includes public sector enterprises, state owned companies and large private corporates.
Accordingly, the Company's customer credit risk is low. The Company's average project execution cycle is around 24 to 48
months. Monthly progress payments have a credit period ranging from 45 to 60 days and Retention money to be released
at the end of the project. In some cases, retentions are released / substituted with bond / guarantees. The Company has
a detailed review mechanism of overdue customer receivables at various levels within the organisation to ensure proper
attention and focus for realisation.

(i) The Company is making provisions on trade receivables and contract assets based on Expected Credit Loss (ECL)
model. The movement of ECL is disclosed in Note 5.1.(A) and 8.1.

50.9 Liquidity risk management

Ultimate responsibility for liquidity risk management rests with the management, which has established an appropriate liquidity
risk management framework for the management of the Company's short-term, medium-term, and long-term funding and
liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities
and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity
profiles of financial assets and liabilities.

50.9.1 Liquidity risk table

The following table details the company's remaining contractual maturity for its non-derivative financial liabilities with agreed
repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the
earliest date on which the company can be required to pay. The tables include principal cash flows along with interest. To the
extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end of the
reporting period. The contractual maturity is based on the earliest date on which the company may be required to pay.

The Company is exposed to credit risk in relation to guarantees given. The Company's maximum exposure in this respect is
the maximum amount the Company could have to pay if the guarantee is called on. Based on expectations at the end of the
reporting period, the Company considers that it is more likely that such an amount will not be payable under the arrangement.
However, this estimate is subject to change depending on the probability of the counterparty claiming under the guarantee
which is a function of the likelihood that the beneficiary under the guarantee may default.

50.10 Fair value measurements

This note provides information about how the Company determines fair values of various financial assets and financial liabilities.

50.10.1 Fair value of the Company's financial assets and financial liabilities that are measured at fair value on a recurring
basis

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

Note 1: These investments in equity instruments are not held for trading. Instead, they are held for medium or long-term strategic
purpose. Upon the application of Ind AS 109, the group has chosen to designate these investments in equity instruments
as at FVTOCI as the directors believe that this provides a more meaningful presentation for medium or long-term strategic
investments, than reflecting changes in fair value immediately in profit or loss.

50.10.2 Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures
are required)

The carrying amounts of the following financial assets and financial liabilities (other than Long Term Borrowings) are a
reasonable approximation of their fair values. Accordingly, the fair values of such financial assets and financial liabilities have
not been disclosed separately.

a) Financial Assets

Cash and bank balances
Bank balance other than above
Trade receivables
Loans

Other financial assets

b) Financial Liabilities

Short term borrowings
Trade payables
Other financial liabilities
Lease Liabilities

(ii) Unsatisfied performance obligations:

The aggregate amount of transaction price allocated to performance obligation that are unsatisfied as at the end of
reporting period is ' 34,354.45 Crore (as at 31^st March, 2025 ' 39,538.36 Crore). Management expects that about 40%
of the transaction price allocated to unsatisfied contracts as of 31^st March, 2026 will be recognized as revenue during
next 12 months depending upon the progress of each contracts. The remaining amount is expected to be recognised in
subsequent years.

*The contract assets and liabilities undergo a change periodically, due to changes in the contractual estimates for
the projects on account of any change in scope of work, unprecedented delays, etc. During the year the company has
additionally recognised a loss allowance for contract assets in accordance with Ind AS 109.

(i) Contract assets represents balances due from customers under construction contracts that arise when the aggregate
of contract cost incurred to date plus recognised profits (or minus recognised losses as the case may be) exceeds the
progress billing.

(ii) Contract liabilities relating to construction contracts are balances due to customers, these arise when a particular
milestone payment exceeds the revenue recognised to date under the input method and advance received in long
term construction contracts. The amount of advance received gets adjusted over the construction period as and
when invoicing is made to the customer

(v) Extension and termination options

Extension and termination options are included in a number of Land, Office Premises, Houses and Godowns leases across
the Company. These are used to maximise operational flexibility in terms of managing the assets used in the Company's
operation. The majority of extension and termination options held are exercisable only by the Company and not by the
respective lessor.

(vi) Practical expedients applied :

In applying Ind AS 116, the Company has used the following practical expedients permitted by the standard:

- applying a single discount rate to a portfolio of leases with reasonably similar characteristics

- accounting for operating leases with term less than 12 months as short-term leases

- using hindsight in determining the lease term where the contract contains option to extend or terminate the lease

- excluding initial direct costs for the measurement of the right-of-use asset at the date of initial application.

(vii) The lessee's range of weighted average incremental borrowing rate applied to the lease liabilities for the
entire group was 9.25%.(viii) Lessor accounting

The Company did not need to make any adjustments to the accounting for assets held as lessor under operating leases as
a result of the adoption of Ind AS 116.

1 General terms and conditions of ESOP 2025

(i) The Option granted under the ESOP 2025 would Vest not earlier than the minimum Vesting Period of 1 (One) year and not
later than maximum Vesting Period of 5 (Five) years from the date of Grant.

(ii) The Vesting of Options for each Eligible Employee under the ESOP 2025 is on the basis of company and individual
performance and other eligibility criteria.

(iii) The Exercise Period for Vested Options shall be a maximum of 5 (Five) years commencing from the relevant date of Vesting
of Options, or such other shorter period as may be prescribed by the Committee at the time of Grant.

(iv) Method of settlement is through issuance of Equity shares of the Company.

NOTE NO.55.

As of 31^st March, 2026 the Company has an outstanding receivables amounting to ' 108.65 Crore (including interest of ' 15.88
Crore) (outstanding as on 31^st March, 2025'95.51 Crore) from SP Jammu Udhampur Highway Limited (SP Juhi) under the EPC
contract for the Jammu Udhampur Road Project of NHAI. SP Jammu Udhampur Highway Limited (SP Juhi) had assigned the
same to Shapoorji Pallonji Solar Holdings Pvt Ltd. (SP Solar) vide deed of assignment dated 20^th July, 2022 between SP Juhi and
SP Solar, which got subsequently merged with Shapoorji Pallonji Infrastructure Capital Company Private Limited.

NOTE NO.56.

During the previous year, the Company has completed an Initial Public Offering ('IPO') aggregating to ' 5,430.00 Crore comprising
of 117,327,139 equity shares. The issue comprised of Fresh issue of 27,046,362 equity shares aggregating to IPO proceeds
of ' 1,250.00 Crore (i.e. face value of ' 10 per share and securities premium of ' 409/- on 510,592 equity shares allotted
under employee reservation and ' 453/- per share on 26,535,770 equity shares allotted to others) and Offer for Sale ("OFS”) of
90,280,777 equity shares aggregating to proceeds of ' 4,180.00 Crore (i.e.face value of '10 each per share and share premium
of ' 453/- per share). Pursuant to the IPO equity shares were listed on the National Stock Exchange of India Limited (NSE) and
BSE Limited (BSE) on 4^th November, 2024.

The Company's share of total offer expenses are ' 35.37 Crore. The details of IPO proceeds '1,214.63 Crore (net of IPO expenses
of ' 35.37 Crore) which were utilised as at 31^st March, 2026 are summarised in table below.

NOTE NO. 57.

During the previous year, the Income Tax Department ("the Department”) conducted a Survey ("the Survey”) under Section 133A
of the Income Tax Act on the Company. As on the date of issuance of these financial results/statements, the Company has not
received any communication from the Department regarding the outcome of the Survey. While uncertainty exists regarding the
ultimate outcome of the proceeding, the Company after considering available information, as of the date of approval of these
financial results/statements has not identified any adjustments, disclosures or any effect to the current or prior period financial
statements or financial information.

NOTE NO. 58.

The standalone financial statement is approved and adopted by the Board of Directors in it's meeting held on 18^th May, 2026.