k) Provisions, Contingent Liabilities and
Contingent Assets

i) Provisions

The Company recognizes a provision when: it has a
present legal or constructive obligation as a result of
past events; it is likely that an outflow of resources
will be required to settle the obligation; and the
amount has been reliably estimated. Provisions
are not recognized for future operating losses.
Provisions are reviewed at each balance sheet and
adjusted to reflect the current best estimates.

ii) Contingent liabilities and Contingent Assets

"A contingent liability recognised in a business
combination is initially measured at its fair value.
Subsequently, it is measured at the higher of the
amount that would be recognised in accordance
with the requirements for provisions above or the
amount initially recognised less, when appropriate,
cumulative amortisation recognised in accordance
with the requirements for revenue recognition.

A contingent assets is not recognised unless it
becomes virtually certain that an inflow of economic
benefits will arise. When an inflow of economic
benefits is probable, contingent assets are disclosed

in the revised financial statements. Contingent
liabilities and contingent assets are reviewed at each
balance sheet date.

l) Employee Benefits

Retirement benefit in the form of provident fund is
a defined contribution scheme. The Company has
no obligation, other than the contribution payable
to the provident fund. The company recognizes
contribution payable to the provident fund scheme
as an expense, when an employee renders the
related service.

Gratuity, a defined benefit obligation is provided on
the basis of an actuarial valuation made at the end of
each year/period on projected Unit Credit Method.

The cost of providing benefits under the defined
benefit plan is determined using the projected unit
credit method.

Remeasurements, comprising of actuarial gains
and losses, the effect of the asset ceiling,
excluding amounts included in net interest on
the net defined benefit liability and the return on
plan assets (excluding amounts included in net
interest on the net defined benefit liability), are
recognised immediately in the balance sheet with a
corresponding debit or credit to retained earnings
through OCI in the period in which they occur.
Remeasurements are not reclassified to profit or loss
in subsequent periods.

"Past service costs are recognised in profit or loss
on the earlier of:

? The date of the plan amendment or curtailment,
and

? The date that the Company recognises related
restructuring costs "

Net interest is calculated by applying the discount
rate to the net defined benefit liability or asset.

m) Termination Benefits

Termination benefits are payable as a result of the
company's decision to terminate employment
before the normal retirement date, or whenever
an employee accepts voluntary redundancy
in exchange for these benefits. The company
recognizes these benefits when it has demonstrably
undertaken to terminate current employees'
employment in accordance with a formal detailed
plan that cannot be withdrawn, or to provide

severance indemnities as a result of an offer made to
encourage voluntary redundancy. Benefits that will
not be paid within 12 months of the balance sheet
date are discounted to their present value.

n) Employee Share - based payment plans
(‘ESOP')

The Company accounts for the benefits of Employee
share based payment plan in accordance with IND
AS 102 "Share Based Payments" except for the
ESOP granted before the transition date which are
accounted as per the previous GAAP as provided in
IND AS 101 first time adoption

o) Foreign Currencies

Transactions and Balances

Transactions in foreign currencies are initially
recorded in reporting currency by the Company at
spot rates at the date of transaction. The Company's
functional currency and reporting currency is same
i.e. INR.

Monetary assets and liabilities denominated in
foreign currencies are translated at the functional
currency spot rates of exchange at the reporting
date.

Exchange differences arising on settlement or
translation of monetary items are recognised in
profit or loss.

Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated
using the exchange rates at the dates of the initial
transactions.

p) Cash and cash equivalents

Cash and cash equivalents include cash in hand,
demand deposits in banks and other short-term
highly liquid investments with original maturities
of three months or less. Bank overdrafts are
shown within bank borrowings in current liabilities
on the balance sheet.

q) Fair Value Measurement

"The Company measures financial instruments, such
as, derivatives at fair value at each balance sheet
date. Fair value is the price that would be received
to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at
the measurement date. The fair value measurement

is based on the presumption that the transaction
to sell the asset or transfer the liability takes place
either:

? In the principal market for the asset or liability,
or

? In the absence of a principal market, in the most
advantageous market for the asset or liability
The principal or the most advantageous market
must be accessible by the Company.

The fair value of an asset or a liability is
measured using the assumptions that market
participants would use when pricing the asset
or liability, assuming that market participants act
in their economic best interest.

r) Financial instruments

A Initial recognition

i) Financial Assets & Financial Liabilities

The Company recognizes financial assets and
financial liabilities when it becomes a party to the
contractual provisions of the instrument. All financial
assets and liabilities are recognized at fair value on
initial recognition, Transaction costs that are directly
attributable to the acquisition or issue of financial
assets and financial liabilities, that are not at fair
value through profit or loss, are added to the fair
value on initial recognition. Regular way purchase
and sale of financial assets are accounted for at
trade date.

ii) Equity Instruments

Financial liabilities and equity instruments issued
by the Company are classified according to the
substance of the contractual arrangements entered
into and the definitions of a financial liability and an
equity instrument.

An equity instrument is any contract that evidences
a residual interest in the assets of the Company after
deducting all of its liabilities. Equity instruments
which are issued for cash are recorded at the
proceeds received, net of direct issue costs. Equity
instruments which are issued for consideration other
than cash are recorded at fair value of the equity
instrument.

B Subsequent measurement

i) Financial assets carried at amortised cost

A financial asset is subsequently measured at

amortised cost if it is held within a business model
whose objective is to hold the asset in order to
collect contractual cash flows and the contractual
terms of the financial asset give rise on specified
dates to cash flows that are solely payments of
principal and interest on the principal amount
outstanding.

ii) Financial assets at fair value through other
comprehensive income

A financial asset is subsequently measured at fair
value through other comprehensive income if it is
held within a business model whose objective is
achieved by both collecting contractual cash flows
and selling financial assets and the contractual terms
of the financial asset give rise on specified dates
to cash flows that are solely payments of principal
and interest on the principal amount outstanding.
The Company has made an irrevocable election
for its investments which are classified as equity
instruments to present the subsequent changes in
fair value in other comprehensive income based
on its business model. Further, in cases where the
Company has made an irrevocable election based
on its business model, for its investments which are
classified as equity instruments, the subsequent
changes in fair value are recognized in other
comprehensive income.

iii) Financial assets at fair value through profit or loss

A financial asset which is not classified in any of
the above categories are subsequently fair valued
through profit or loss.

iv) Financial liabilities at amortised cost

Financial liabilities are subsequently carried at
amortized cost using the effective interest method,
except for contingent consideration recognized
in a business combination which is subsequently
measured at fair value through profit and loss. For
trade and other payables maturing within one year
from the Balance Sheet date, the carrying amounts
approximate fair value due to the short maturity of
these liabilities.

v) Financial liabilities at fair value through profit or
loss

Financial liabilities at FVPL include financial liabilities
held for trading and financial liabilities designated

upon initial recognition as at FVPL. Financial liabilities
are classified as held for trading if they are incurred
for the purpose of repurchasing in the near term.
Gains or losses on liabilities held for trading are
recognised in the Statement of Profit and Loss.

Financial guarantee contracts issued by the
Company are those contracts that require a
payment to be made to reimburse the holder for
a loss it incurs because the specified debtor fails
to make a payment when due in accordance with
the terms of a debt instrument. Financial guarantee
contracts are recognised initially as a liability at fair
value, adjusted for transaction costs that are directly
attributable to the issuance of the guarantee.
Subsequently, the liability is measured at the higher
of the amount of loss allowance determined as per
impairment requirements of Ind AS 109 and the
amount recognised less cumulative amortisation.
Amortisation is recognised as finance income in the
Statement of Profit and Loss.

C De-recognition of Financial Assets

The Company de-recognises a financial asset only
when the contractual rights to the cash flows from
the asset expire, or it transfers the financial asset and
substantially all risks and rewards of ownership of
the asset to another entity. If the Company neither
transfers nor retains substantially all the risks and
rewards of ownership and continues to control
the transferred asset, the Company recognizes its
retained interest in the assets and an associated
liability for amounts it may have to pay. If the
Company retains substantially all the risks and
rewards of ownership of a transferred financial asset,
the Company continues to recognise the financial
asset and also recognises a collateralised borrowing
for the proceeds received.

D Offsetting of financial instruments

Financial assets and financial liabilities are offset and
the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset
the recognised amounts and there is an intention to
settle on a net basis, to realise the assets and settle
the liabilities simultaneously.

s) Exceptional Items

When items of income and expense within profit
or loss from ordinary activities 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 material
items are disclosed separately as exceptional items.

t) Trade Payables

A payable is classified as a 'trade payable' if it is in
respect of the amount due on account of goods
purchased or services received in the normal course
of business. These amounts represent liabilities for
goods and services provided to the Company prior
to the end of the financial year which are unpaid.
These amounts are unsecured and are usually settled
as per the payment terms stated in the contract.
Trade and other payables are presented as current
liabilities unless payment is not due within 12 months
after the reporting period. They are recognised
initially at their fair value and subsequently measured
at amortised cost using the EIR method.

u) Trade Receivable

A receivable is classified as a 'trade receivable' if
it is in respect of the amount due on account of
goods sold or services rendered in the normal
course of business. Trade receivables are recognised
initially at fair value and subsequently measured at
amortised cost using the EIR method, less provision
for impairment.

a) The company has not taken any fresh term loan from banks and financial institutions during the year.

b) Intercorporate Deposit (Secured)

During the previous year, the Company has taken loan from Ambica Capital Markets Limited (ACML) vide
agreement dated April 7, 2022. The said ICD needs to be used for various lawful purpose in respect of lawful
business including general corporate purpose. The loan is to be repaid after 730 days.

Security: pledge by the Company by way of deed of pledge, unencumbered equity shares in dematerialised form
3,22,51,680 shares of Indira Containers Terminal Private Limited and 1,44,49,994 shares of Youngthang Ventures
Private limited in the name of the Company.

Interest: Interest @11% per annum payable on a quarterly basis during the tenor of loan. In the event of default
additional interest @1% per annum is applicable. However as per letter dated June 6, 2022 the term of interest is
modified where the payment of interest is to be made on yearly basis.

c) Intercorporate Deposit (Unsecured)

During the year the Company has taken unsecured loan from Kasam Holdings Private Limited as per details below :
Security : Unsecured

Tenure : 3 Yrs with option to prepay as per mutual understanding without any prepayment penalty.

Interest: Interest @12% per annum payable on yearly basis / Repayment ( whichever is earlier ) .

(a) Details of Recall of credit facility covered under Corporate guarantee of SSRPL

During the earlier years bankers to Sidhi Singrauli Road Project Limited (SPV) have recalled loan facility amouting
to ' 30,892.45 lacs and also written to Company for encashment of Corporate Guarantee issued towards loan
availed by SPV. Company has disclosed liability towards bankers for amount of loan or CG whichever is lower and
shown as receivable from the SPV.

(b) Details of Recall of credit facility covered under Corporate guarantee of RGBL

During the earlier years bankers to Rajahmundry Godavari Bridge Limited (SPV) have recalled loan facility
amounting to ' 78,052.00 lacs and also written to Company for encashment of Corporate Guarantee issued
towards loan availed by SPV. Company has disclosed liability towards bankers for amount of loan or CG
whichever is lower and shown as receivable from the SPV.

(c) Margin money of 100 lacs (Previous year 100 lacs) was received towards a Performance Bank Guarantee issued by
AJR Infra and Tolling Limited (Formerly Gammon Infrastructure Projects Limited) in favour of MbPT as required in
the L.A. The margin money deposit carries an interest of 6% p.a.

(d) "The Company was engaged in arbitration proceedings with BIF India Holdings PTE Limited along with its Project
companies ( as Claimants ) related to their Indemnification / Tax related claims . Without any admission of liability,
the parties have agreed for a full and final settlement of the released claims vide agreement dated 20^th May,2022
according to which the Company is liable to pay the Claimants a sum of ' 4000 lacs ( plus applicable interest )
and tax related claims in a manner as set out in the agreement.

(e) Details of ICD from VSPL :

The amounts due to VSPL have been restructured from time to time in earlier periods, and certain specific cash
flows of the Company are earmarked towards repayment. Further as per the terms of the new arrangement,
the Company has stopped accruing the interest on the amount with effect from April 1, 2020. The specific
award of Patna Buxar highway Limited, a subsidairy of the Company , presently at approx ' 9300 lacs including
interest accrued has been assigned to the VSPL and the balance will be paid from the sale of partial stake of the
Company.

3 i) The Company have received a letter for transfer of shares of one of its divested subsidiary from a party
who has paid advance for the same. The Company does not acknowledge the Claim due to non
satisfaction of certain conditions and is in the process of refunding the said advance to the party.

ii) The project of the Company with Madhya Pradesh Road Development Corporation Limited (MPRDC)
has been terminated . The concession Agreement provide for Stringent penalties for delayed and Non
completion of the project , taken into above consideration the Liquidated Damages payable by the
Company would be ' 4482.32 lakhs from the date of last extension granted by MPRDC i.e. October
19,2017 till August 13, 2020. However the amount is recoverable from the sub Contractor i.e. Techno
Unique Infratech Pvt Ltd as per the terms of agreement.

27 Project related notes: In respect of the following
projects/Special Purpose Vehicles (SPVs) of the
Company where the company has investment
there are legal issues, arbitration proceedings or
negotiations with the Concession Grantor for which
the Management is taking necessary steps to resolve
the matters -

a) Indira Container Terminal at Mumbai: The Project
was delayed due to non-fulfilment of certain
obligations by the Mumbai Port Trust (MbPT)
under the License Agreement (LA) signed
by the SPV with MbPT. The Roll-On-Roll-Off
(RORO) operations was allowed by MbPT as
an interim measure for alternate use of the 2
(two) berths for a mix of cargo of container,
steel and RORO and is still continuing. However,
the revenue generated through alternative use
is inadequate for repayment of principal and
interest of the Lenders and the credit facility
account was declared NPA (Non-Performing
asset) by the Lenders of the SPV. The draft
settlement agreement between the SPV,

Ministry of Shipping (MoS), Mumbai Port Trust
(MbPT) has been rejected by MbPT. The SPV
has issued a Dispute Notice for the Licensor's
Event of Default against MbPT and called upon
the Licensor to refer the disputes for amicable
settlement under the LA and the matter is
pending with MbPT. A petition was filed by the
SPV under section 9 and an application under
section 11 of the Arbitration and Conciliation
Act, 1996 was also filed where in Order dated
1^st August 2019 is passed and interim protection
by way of prayer is allowed for carrying ad-hoc
RORO operations.

The SPV and the MBPT have nominated
their arbitrators and they in turn have jointly
appointed the Presiding Arbitrator/Umpire
arbitrator and accordingly, the Arbitral Tribunal
(AT) is formed. The SPV has duly filed its
Statement of Claim (SOC) against MbPT for an
amount of ' 296,736 lacs on 8^th November 2019.
MbPT has filed their Statement of Defense (SOD)
and filed their Counter Claim of ' 240,000 lacs
with the Tribunal.

In the meantime, MbPT has sent letters dated
May 28, 2021 / October 08, 2021, and invited
ICTPL for a settlement of all disputes raised
with the Arbitral Tribunal, to which ICTPL
has replied and given their concurrence and

the process is under active discussion. Both
the parties have sought permission to keep
the ongoing arbitration in abeyance for the
next 6 months since the parties have started
conciliation proceedings. A virtual hearing was
held by the Tribunal on 01-11-2021 to determine
if the above application for keeping the matter
in abeyance for a period of 6 months can be
allowed and if the same would be in compliance
of Arbitration and Conciliation Act,1996. After
initial review, the extension was allowed and
both the parties were directed to intimate the
conciliation proceedings to the tribunal by
25^th May,2022. Since there was no outcome,
both the parties jointly opined for the further
extension and accordingly filed the application
for extension from time to time to wait for the
outcome of the conciliation proceedings which
is still pending before the CSC. On the last
hearing date of Arbitration Proceedings i.e.,
on 19.04.2023 virtual hearing was conducted
and on joint request of both the parties the
Hon'ble Tribunal was pleased to adjourn the
matter to 27^th July, 2023 , directing parties to
appraise the tribunal on the next date and that
for any extension henceforth, both the parties
shall jointly approach the Hon'ble High Court,
Bombay. Since the last date of Arbitration
Proceedings was 31^st August,2023, hence the
SPV has moved an application under section
29(A) before the High court of Mumbai for
extension of Arbitration Proceedings. The said
application has been allowed by Hon'ble High
Court and the mandate of the arbitral tribunal
is extended from 01.09.2023 for a period of
one year. The matter is next listed on 21^st
August,2024 for update on the further progress
on the conciliation process.

The SPV's submission of a One-Time Settlement
(OTS) proposal to the consortium of Lenders',
and the decision on acceptance, which is
dependent upon fulfilment of certain conditions,
is in advanced stages of negotiation/settlement
with the lenders. In the meantime, the lead
Bank had approached NCLT Mumbai Bench
against its outstanding dues and submitted its
application under Section 7 of the Insolvency
and Bankruptcy code, 2016. After a series of
submission and counter submissions , the
Hon'ble NCLT passed an order On 9th May,2024
for the admission of the captioned Petition

and the appointment of Interim Resolution
Professional.

The Company filed an appeal under Section
61 of the Insolvency and Bankruptcy Code,

2016 before Hon'ble NCLAT, Delhi against the
impugned order dated 9 May 2024 passed by
the Hon'ble NCLT, Mumbai. Hon'ble NCLAT,

Delhi taking cognizance of the OTS proposal
submitted by the Company and the fact that
the committed amount already deposited in the
designated NO LIEN account of the Lenders has
passed an order dated 16th May,2024 staying
the above order dated 9^th May 2024.

The Company has recently taken legal opinion
on account of claims that the Company
proposes to make against the MbPT, the legal
update from the lawyer on record states that
the possible realisation on the settlement of
the SPV claim arising out of arbitration will be
sufficient to cover the value of the asset and
therefore in the opinion of the management no
impairment will be necessary. The Company
is also seeking another opinion from a techno
legal expert on arbitration matters whose
assessment of the possible amounts due is
under quantification.

The exposure of the Company in the SPV /
project is ' 13,243.29 lacs.

b) Sidhi Singrauli Road Project Limited (SPV of the
company) had signed a Concession Agreement
(CA) for 30 years for upgradation of the existing
highway from two-lane to four-lane with Madhya
Pradesh Road Development Corporation
Limited (MPRDC). AJR Infra and Tolling Limited
(Formerly Gammon Infrastructure Projects
Limited) is the EPC contractor for the Project.

The Project was scheduled to commence
commercial operations from 19thSeptember
2015. However, delays on account of MPRDC in
providing the required clearances and the Right
of Way (ROW), have resulted in the extension of
the Commercial Operations Date (COD). These
delays have also resulted in increase in project
cost, primarily due to increase in interest during
construction period resulting from the time
overruns and the credit facility with consortium
of banks / lenders was classified as Non¬
Performing Asset (NPA).

Meanwhile, the Lead Bank has also issued

notice dated October 15, 2019, for invocation
of Corporate Guarantee (CG) issued by the
Company in favor of the SPV's Banks / Lenders,
due to financial default by the SPV. The SPV
and the company have filed its response dated
November 11, 2019, to the said notices issued
by the Lead Bank. The Lead bank has also
sent Demand cum loan recall notice dated
30^th December 2021 demanding repayment of
loan availed from the Consortium of Lenders
(Including Indian Bank e-Allahabad Bank and
IIFCL). The SPV has duly replied to the notice
vide letter dated 31st January,2022. Meanwhile
, Hon'ble Debt Recovery Tribunal Delhi (DRT
3) has issued Summon/notice under section
19(4) of the Act on the application filed against
the SPV by Punjab National Bank (Lead Bank)
for recovery of debts with directions to file
the written statement and to appear before
Registrar on February 21, 2024. The SPV has
filed the written statement on 27.01.2024.

On 15.05.2024 the IA filed by the SPV for
condonation of delay for filing written statement
was rejected against which we are intending
to file an appeal in DRAT. IA for condonation
of delay and discharge of directors is listed for
filing reply by the respondents till next date of
4^th July,2024.

During the year ended March 2021, the SPV
had received notice of intention to terminate
the Project vide letter dated July 17, 2020, from
MPRDC followed by a Termination Notice dated
August 13, 2020, and advised the SPV vide their
letter dated August 24, 2020 to comply with
the divestment rights and interest under the
provisions of the Concession Agreement and
handover the Project to MPRDC.

Pursuant to the Termination Notice issued by
MPRDC, SPV has contested the Termination
Notice vide their letter dated 1st October 2020
and has approached MPRDC and Ministry of
Road Transport and Highways (MoRTH) to find
an amicable resolution under the circular dated
March 09, 2020, on stuck BOT projects issued
by MoRTH in the interest of all the stakeholders.
The Company is exploring options to find an
amicable resolution for the Project. Meanwhile,
the company has also invoked the Arbitration
process vide letter dated 22nd February ,2021
and a 3-member Arbitration Tribunal has been

constituted. Two virtual hearings were held
and the SPV has submitted its Statement of
claims amounting to ' 284,804.32 Lacs to the
Arbitral Tribunal on 8^th September,2021 as
per its procedural order dated 2nd June,2021
/ extensions granted thereunder. The
respondents have also filed their SOD. The SPV
has duly replied to the SOD and counter claim
filed by MPRDC and also filed rejoinder to the
written statement. In the previous hearings,
the order was pronounced with a decision that
MORTH should be a party to the arbitration
proceedings. In the meantime, the Arbitrator
nominated by the SPV has excused himself
from the Arbitration due to an age ailment.
Accordingly, SPV is seeking a replacement
for the said Arbitrator. The SPV has moved an
application under 29 (A) before High Court of
Madhya Pradesh for the extension of Arbitration
proceedings which is due to be next heard on
29^th May,2024.

The conciliation process as agreed between
the parties is going on simultaneously in which
lenders of the SPV are also a part of the said
conciliation process. Couple of meetings have
taken place in the last 3 to 4 months' time and
issues are moving forward.

In view of the issues and problems associated
with the progress of the project including
the final notice to terminate the project and
subsequent developments in various arbitration
hearings as detailed above the Company on a
prudent basis during the year ended March 31,
2022 on a prudent basis had made provision
for impairment of its investments and written
off/(back) project balances in the books of
accounts. The exposure of the Company net
of provision in the SPV is ' 54,640.27 lacs
(non-fund basis). The Auditors of the SPV have
highlighted material uncertainty regarding
going concern issue in their audit report as at
March 31, 2024.

c) Bridge project at Cochin: The Greater Cochin
Development Authority (GCDA) has sought to
end the toll collection by unilaterally sealing
the toll booth. Cochin Bridge Infrastructure
Company Limited (SPV) has initiated arbitration
/ settlement process. The SPV has also in
parallel filed a writ in the matter before
the Hon'ble Kerala High Court for specific

performance. However, the Government of
Kerala approached the Hon'ble High Court for
further extension of time and the Court granted
extension to settle the matter, subsequent to
which the SPV has filed amended plaint. The
said SPV pursuant to the assurance given by
GCDA and State Government filed a fresh writ
petition for directions to GCDA to pay the dues
of SPV. The arbitration process was kept in
abeyance.

Matter was last listed on 10^th July 2019 wherein it
was argued and after considering the points of
arguments, the Hon'ble High Court passed the
orders that the writs petition stands dismissed
with reserving the liberty to seek appropriate
resolution before the Arbitral Tribunal. The
SPV is in the process of re-constituting the
Arbitral Tribunal and has intimated GCDA vide
its letter dated 3rd January 2020 for revival of
the Arbitration proceedings and to appoint
their nominee arbitrator. Since, GCDA is
neither responding nor appointing its nominee
arbitrator, the SPV has filed an application
under section 11 & section 14 of the Arbitration
and Conciliation Act with the Hon'ble Kerala
High Court and duly informed that they have
nominated their new arbitrator with regard to
reconstitution of the Ld. Arbitral Tribunal. The
matter was listed on 21st June,2022 whereby
the Hon'ble Kerala High Court appointed the
sole arbitrator to adjudicate the disputes.
Statement of Claim and Statement of defense
has been filed by both the Parties. The parties
have filed rejoinder on March 18, 2023. The SPV
has filed additional documents on 3rd August,
2023. The matter was listed on various dates for
cross examination of witness and arguments,
which has been concluded . The matter is
now listed on 19^th June,2024 for compliance
of Fees. The SPV had filed the joint extension
application under section 29A of the Arbitration
and Conciliation Act for the extension of the
Arbitration period which has been granted.

The exposure of the Company in the SPV is '
2,370.49 lacs (funded). The company has made
provision for an amount of ' 583.36 lacs being
the excess of the exposure over the claim
amount submitted without considering the
interest which may be awarded by the courts.

d) Hydro power project at Himachal Pradesh - the

Project is stalled due to local agitation relating
to environment issues. The SPV has received
letter from the Government of Himachal Pradesh
(GoHP), to discuss the matter mutually towards
amicable resolution. After the SPV invoked
arbitration on 19^th February 2018, the arbitration
is now concluded, and the Arbitral Award was
pronounced by the Hon'ble Tribunal on 23^rd
January 2023 in favour of the SPV. Government
of Himachal Pradesh has moved Sec 34 against
the captioned award and the SPV has also filed
reply as well as the execution petition for the
same. Matter pertaining to Section 34 was
listed on 10^th April,2024 wherein the Advocate
General had appeared and sought time for
settlement. The captioned matter as well as
the execution petition is now adjourned to 12^th
June,2024.

The amount of award due to the SPV is
expected to be in excess of exposure of
' 7,120.20 lacs (funded) and therefore the
management does not expect any impairment
towards the exposure. The Management is
hopeful of an early settlement in the matter
and is confident of recovering the amount of
exposure.

e) The Company has incorporated a SPV for
developing Rangit-II Hydroelectric Power
Project in Sikkim on Build, Own, Operate and
Transfer (BOOT) basis. The Project involves
the development of a 66 MW run-of-the-
river Hydroelectric Power Project on Rimbi
river, a tributary of river (COD). The Project
is presently in a state of limbo pending the
signing of PPA and achieving financial closure.
The Management is of the view that the present
situation in the power business is temporary and
does not foresee any need for impairment. The
matter before NCLT of one of the operational
creditors of the SPV has been settled favorably
in favor of the SPV.

Post withdrawal of the CIRP proceedings,
the company has been in discussion with
prospective buyers for Sale or otherwise
dilution of Company's investment in the SPV
and have also obtained in principal approval
vide special resolution at the EGM dated 12th
August,2022. Subsequently the Company had
entered into a Share Purchase agreement.

There were some conditions precedents which

are yet to be fulfilled as on date. Though the
company has been actively pursuing the matter,
there have been delays in completing some of
the condition's precedent to the agreement
with the prospective buyer, due to which the
captioned Share purchase agreement has been
terminated.

The company has made provision in the books
of accounts as at March 31,2024 towards its
entire exposure amounting to ' 10,892.51
lakhs(funded) on a prudent basis. "

f) Pravara Renewable Energy Limited (SPV of the
company) - Pravara has entered into a Project
Development Agreement (PDA) with Karkhana
(Padmashri Dr. Vithalrao Vikhe Patil Sahakari
Sakhar Karkhana Limited) for the development
of a 30 MW Cogeneration Project on Build-Own-
Operate-Transfer (BOOT) basis. The Concession
period is 25 years from Commercial Operation
Date (COD).

The viability of the project and the ability to
continue as a going concern depends upon the
ability of the Company to procure Bagasse/
alternate Fuel at a viable price either from
Karkhana under the arrangement to supply
them power in return or from the open Market.

In view of the pending settlement between
the Company and Karkhana, the availability of
adequate Bagasse to run the plant at optimum
capacity is a matter of significant uncertainty."

The Company had filed an application under
Sec 9 of Arbitration and conciliation Act, 1996
against Karkhana seeking interim reliefs which
was heard by the Single judge of Hon'ble High
Court on 30^th October 2021 and after elaborately
dealing with the contentions of both the
parties, passed an Order dated 11th April 2022
to restrain Karkhana and any representative
acting on behalf of the Karkhana, from entering
the premises of the Co-generation Plant
pending the hearing/final disposal and until final
execution of the Arbitral Award. In fact the court
in it's order vide paragraph 110 stated "In my
opinion, it is unheard of in a civilized society and
much less in a commercial transaction of such
magnitude that when the parties have agreed
to specific terms and conditions on transfer
of assets, it would become permissible for a
contracting party like the respondent to take
over the assets/co-gen plant of the petitioner,

for pure commercial gains, in a manner unknown
to the process of law. Even in commercial
transactions the parties are bound by the
rule of law, apart from due adherence to the
principles of trust, honesty, fairness and ethics,
which are the backbone of any long commercial
relation between the parties. Any untoward
dent to such commercial relationship at the
hands of a contracting party would lead to an
instability not conducive to commerce and
the commercial image of a contracting party.
There is all the likelihood that for quick and
undeserving gains or profits, a party may resort
to such business tactics and unfair practices,
however, in doing so, they are oblivious that
in the longer run, it is no real commercial gain
when it comes to such actions being tested in
law. This, even assuming that the respondent
has spent amounts on repairing or maintenance
of the plant as alleged by the petitioner, which
would entitle the respondent only to make a
monetary claim against the petitioner."

Subsequently, on 2nd May, 2022, after dealing
with the submissions of Karkhana' s appeal
and contentions of both the parties, Division
Bench of the Hon'ble Bombay High Court had
admitted the Karkhana' s appeal filed under
section 37 of the Arbitration & Conciliation Act
("the Act"), and granted stay of the Order dated
11th April, 2022 passed by the Single Judge in
Commercial Arbitration Petition (L.) No. 23525
of 2021 (filed under Section 9 of the Act by the
Petitioner).

The Company subsequently filed Special Leave
Petition (SLP) in the Supreme Court against the
impugned Order dated 2nd May 2022 passed
by the Hon'ble High Court of Judicature at
Bombay and after hearing both the parties,
Supreme Court had directed the Company
vide order dated 20th May 2022 to approach
Arbitration Tribunal for relief since the tribunal
is constituted. Accordingly, PREL has filed its
relief application under Sec 17 of Arbitration and
conciliation Act, 1996 on 18th July 2022 against
Karkhana before the Arbitral Tribunal.

The Company subsequently filed Special Leave
Petition (SLP) in the Supreme Court against the
impugned Order dated 2nd May 2022 passed
by the Hon'ble High Court of Judicature at
Bombay and after hearing both the parties,

Supreme Court had directed the Company
vide order dated 20th May 2022 to approach
Arbitration Tribunal for relief since the tribunal
is constituted. Accordingly, PREL has filed its
relief application under Sec 17 of Arbitration and
conciliation Act, 1996 on 18th July 2022 against
Karkhana before the Arbitral Tribunal.

In the meantime, Karkhana approached Debts
Recovery Tribunal, Aurangabad and the matter
was listed with objections on the maintainability
and the Interlocutory application No 1239/2021
for seeking certain directions for stay. On 29^th
December 2021, Hon'ble DRT Aurangabad,
without issuing any notice to the Company,
passed an Ex-party order of "Status quo" and
granted the liberty to the Karkhana to settle
the matter with the Lenders. The Company
had challenged the said Ex-party Order before
the Hon'ble DRAT, Mumbai. Subsequently,
by virtue of order dated 8^th September 2022
the court receiver has been appointed by
DRT Aurangabad, wherein the Company's
consent had been wrongly recorded for the
appointment of a receiver. The Company
thereafter filed Civil Writ Petition (L) No.
8044/2022 before the Bombay High Court,
Aurangabad Bench against the appointment of
Court Receiver and appraised the court that the
Presiding officer of DRAT had excused himself
in the matter and since then an alternate bench
has still not been assigned. The Bombay High
Court, Aurangabad Bench was pleased to direct
the Registry of DRAT vide its order dated 29th
March 2023 to file its report with respect to
the appointment of an alternate bench. The
report was duly filed by the Registry of DRAT
and based on the same, the bench passed an
order that the matter would be heard at DRAT
Chennai and the writ petition was disposed off
accordingly. The next date of hearing is yet to
be notified.

The company has also challenged the award
passed by the Arbitral Tribunal under Section 34
of Arbitration and Conciliation Act, 1996, passed
in favor of Ask Energy, an Operational Creditor.

In the meantime, Ask Energy has moved
the execution petition before the Hon'ble
High Court with a request to issue notice
to Garnishee, Maharashtra State Electricity
Development Corporation (MSEDCL) as well

as Karkhana. On the directions of the Hon'ble
High Court MSEDCL has deposited a sum of '
386.00 lacs under protest and the company
has opposed the above execution petition at
Hon'ble High Court.

The borrowing facility of the company has
been marked as non-performing assets by the
lenders, hence no interest has been debited
by the lenders in the Loan Statements. The
company has made provision for interest on
the basis of the last sanction and last revision
of terms. Therefore, the loan balances and
finance cost are subject to confirmation and
consequent reconciliation, if any. Recall notice
date 27/09/2021 and 22/11/2021 were issued
by the Lenders, Central Bank of India and Union
Bank of India respectively vide which both the
lenders recalled the entire outstanding amounts
owed by the Company (Term loan and Cash
credit) to which the company has suitably
replied.

Also, both the lenders have jointly filed an
Original Application No. 69/2021 before the
DRT-II, New Delhi, against the Company and
others for the enforcement of the claims of
lenders against the Company, in respect of the
Term Loan and Working Capital Loan sanctioned
to the Company by the lenders. Ex Parte Order
was passed by DRT II, Delhi with a direction
to maintain status quo in respect of assets as
per section 19 (4) of the Recovery of Debts
and Bankruptcy Act 1993." The company has
challenged the Order passed by DRT II, Delhi.
Written statements and counter claim has been
filed by the company, however there has been
no reply from the applicants. The matter was
kept in abeyance following the admission order
of NCLT and appointment of IRP. The matter was
heard on 24th November ,2023 and has been
adjourned for next hearing on 1st July,2024.

Also, on 9th March 2022 / 26th May 2022,

Union Bank of India / Central Bank of India
respectively affixed the impugned notice under
Section 13(4) of the SARFAESI Act 2002 at the
premises of the Company's Co-gen plant and
taken symbolic possession. The Company has
challenged both the notices in DRT, Mumbai.
Both the matters are pending for filing replies
by the Respondents. In the meantime, Lead
bank Central Bank of India has moved ahead

and issued notice for sale under Rule 8(6)
of the Security Interest (Enforcement) Rules
of SARFAESI Act, 2002 vide letter dated 16^th
February 2023. The Company filed an IA for
Stay before DRT Mumbai and order dated 3^rd
March 2023 was passed by DRT that based
on the submission of the Bank no bids were
received and therefore Auction has failed.

An operational creditor of the Company
had approached NCLT Mumbai against its
outstanding dues and submitted its application
under Insolvency and Bankruptcy code, 2016
in 2018. Though the company had cleared all
the dues in the meantime, final order C.P.(IB)-
2976(MB)/2018 dated 6th January,2023 was
passed by Hon'ble NCLT Mumbai bench Court-II
under Insolvency and Bankruptcy code, 2016 for
admission of the petition and Interim Resolution
Professional was appointed to carry the
functions as mentioned under the Insolvency
& Bankruptcy Code, 2016. The Company filed
an Appeal in NCLAT on against the aforesaid
impugned order and Hon'ble NCLAT wherein
was pleased grant an interim stay vide order
dated 3^rd February,2023. The interim stay was
further adjourned for 4 weeks from 28.03.2023.
The matter has now been tagged along with
the similar appeal filed by one on the lenders
of the SPV against the impugned order and is
adjourned to 31^st July,2024 for next hearing.

The Credit facilities are marked as Non¬
Performing Assets. The use of coal as an
alternate fuel has other issues of cost and
operations. The lenders also are not providing
any further funding for the procurement of the
inventory for the running of the plant. All these
conditions indicate a material uncertainty in
the Company's ability to continue as a going
concern. Also, Karkhana has taken illegal /
unauthorized possession of the Plant and has
been running the plant without authorization /
consent of the Company. In view of the above
situation, power generated for the period Jan
22 to till date exported to the Grid has not
been accounted for as Revenue in the books
of the Company. Similarly, Fuel (Bagasse)
and electricity consumed at the Plant for the
generation of power for the captioned period
of Jan 22 till date has not been accounted as
expense / Inventory in the books of accounts.

The management, however, is hopeful of
resolving the issues and accordingly these
financials are prepared on a going concern
basis. In view of the multiple legal issues going
on at various forums and the SPV still being not
in possession of the Plant, the funded exposure
of the Company in the SPV amounting to '
10,745.53 lacs has been provided in the books
as at March 31, 2024 on a prudent basis. The
Company has provided a letter of Comfort to
the lenders towards their credit facilities.

In view of the above-mentioned facts the
management of the SPV contends that

1. The litigation is outstanding since more
than 2 years and there is no progress in the
matter before the courts.

2. The receiver appointed by the DRT does
not report the transactions to the Company
and takes decisions of the Company
Management.

3. Since there is no progress in the matter
in accordance with IND AS 110 para 7 the
Company has effectively lost control over
the operations and is unable to direct
the variable rights from its exposure in its
favour.

4. It has no record of transaction entered into
on its accounts nor it has access to its cash
flows.

Therefore, pending the settlement of the
litigation, the Company contends it has no
control and does not satisfy para 7 of INDAS 110.

The Statutory Auditors of the SPV on account
of non-inclusion of aforesaid transactions
conducted by the receiver has given a
disclaimer of opinion.

28 Material Uncertainty related to Going
Concern

There is a continuing mismatch of cash flows
including the dues to the subsidiary which are
due for repayment pursuant to negotiation., The
current liabilities are in excess of current assets by
' 1,49,228.65 lacs as at March 31 ,2024. The liquidity
crunch is affecting the Company's operation with
increasing severity. Further, various projects of the
Company as stated in detail in Note 27 above are
under stress and the outcome of the continuance of
these projects would be dependent upon favorable

decision being received by the Management on the
outstanding litigations. The resolutions planned by
the Management are pending since a long time and
are not concluding in favor of the Company.

The Management, however, is confident that the
going concern assumption and the carrying values
of the assets and liabilities in these Standalone
Financial Results are appropriate. Accordingly,
the Revised Financial Statements do not include
any adjustments that may result from these
uncertainties.

29 Other Fi nancial Assets includes ' 1,514.01 lacs due
from Western Coalfields Limited (WCL) on account
of wrongful encashment of bank guarantee against
which the Company has filed a suit for Recovery
of damages. Subsequent to the encashment, the
Company has filed an application for converting
earlier injunction application to suit for recovery of
damages. The Company has sought a legal opinion
in this matter and has been advised that it has a
good case for recovery of the amount. On the last
hearing dated 29^th November, 2023 evidence was
filed and the matter has next been listed next on 19^th
June,2024. The Management is hopeful of getting
favourable decision on the matter and recovery

of damages based on legal advice on the matter.
However, due to considerable elapse of time and
in view of the delay in the legal proceedings, the
company has made full provision of ' 1,514.01 lacs
towards this amount receivable from Western
Coalfields Limited (WCL) in the books of accounts as
at March 31, 2024 on a prudent basis.

30 During the previous periods, in respect of 2 (two)
of its subsidiary companies, Corporate Insolvency
Resolution Proceedings (CIRP) were initiated by
financial creditors of the respective subsidiaries
by filing a petition before the Hon'ble National
Company Law Tribunal (NCLT). The NCLT admitted
the petition and accordingly, the Boards of the
respective subsidiaries were superseded, and
Interim Resolution Professional/ Resolution
Professional (RP) were appointed. Accordingly,
the Company, namely, AJR Infra and Tolling
Limited (Formerly Gammon Infrastructure Projects
Limited) lost control over these 2 subsidiaries. The
subsidiaries are:

a) Patna Highway Projects Limited (PHPL): Patna
Highway Projects Limited (PHPL): One of the
Lender i.e., Corporation Bank (merged with

Union Bank of India w.e.f. 1st April 2020) had
filed an application under the provisions of
Insolvency and Bankruptcy Code, 2016 (IBC)
with NCLT which had been admitted and an
Interim Resolution Professional (IRP) had been
appointed on 7^th January 2020.

Resolution Plan submitted by Silver Point
had been accepted by the COC/ Resolution
Professional (RP) and application was filed
by RP before NCLT for approval of Resolution
plan of Silver Point. The Company had also
filed an application for approval of Company's
Resolution Plan before NCLT. The NCLT vide
order dated May 10, 2022, has approved the
resolution plan oof Silver Point and rejected
the application for approval of Resolution Plan
submitted by the company. The Company had
filed two appeals on 13^th July 2022 against the
impugned order in NCLAT. Appeal/920/2022
was filed against approval of Resolution Plan
of Silver Point and Appeal/922/2022 was filed
against rejection of Company's Resolution
plan. The matters were taken up on 10.05.2023,
wherein Appeal/920/2022 was reserved for
order and finally the captioned appeal was
dismissed by Hon'ble NCLAT vide order dated
25^th May, 2023.

The Company has filed Civil Appeal in the
Supreme Court against the impugned Order on
3^rd July,2023. The, Appeal/922/2022 which was
filed against rejection of Company's Resolution
plan was also thereafter dismissed and the
Company has filed the Civil appeal before
Supreme Court against the impugned order
dated 20.10.2023. The Company has also filed
IA (I.B.C)-5000/2023 on September 6, 2023,
in NCLT New Delhi under Section 65 of the
Insolvency and Bankruptcy Code against RP and
others for Fraudulent and Malicious Initiation of
the Corporate Insolvency Resolution Process by
the RP in active connivance of the Banks, ARC,
SRA. The Matter was heard on 6th February,2024
wherein it was dismissed with liberty to
restore. The Company has filed the Restoration
Application and accordingly the matter has
been restored and listed next on 9th July,2024.

Vide letter dated 7th November,2023, the
Corporate Guarantee provided by the Company
amounting to ' 1,19,024.39 Lacs has been
invoked by Phoenix ARC Private Limited in

favour of whom the lender's of PHPL had
earlier assigned their respective debts. The
Company has taken legal opinion and is in the
process of contesting the Corporate Guarantee
invocation in Court. In the meantime Phoenix
ARC Private Limited has filed an application to
initiate Corporate insolvency process against
the company under Sec 7 of IBC ,2016. The
Company has filed IA under section 60 (5)
of IBC, 2016 seeking sine die Adjournment
to the said proceedings before the Hon'ble
High Court, Mumbai and the next date of
hearing is 28^th June,2024. The Company has
not accounted the invocation of the Corporate
Guarantee as it is contesting the same.

The Net exposure of the Company is ' 21,294.65
lacs (funded). Pending the outcome, in view
of the long pendency of the matter under
litigation, although the Lawyers have advised
the management that it has a good case for
a favourable outcome of the litigation, the
Company out of abundant caution and on the
principle of prudence has impaired the entire
exposure in the books as at March 31, 2024 in its
books for accounting purposes while retaining
its right to litigate.

b) Rajahmundry Godavari Bridge Limited (RGBL):
One of the Consortium Banks of RGBL had
initiated and filed an application under the
provisions of Insolvency and Bankruptcy Code,
2016 (IBC) with NCLT. The Hon'ble NCLT had
passed an order dated 27^th February 2020
admitting the matter to Corporate Insolvency
Resolution Process (CIRP) under the IBC and
appointing an Interim Resolution Professional
(IRP) on 27^th February 2020. The IRP has been
replaced with a new Resolution Professional
(RP) pursuant to the Hon'ble NCLT order
dated August 21, 2020, which was issued on
September 08, 2020, based on an application
filed by the Committee of Financial Creditors
/ Lenders and the new RP has taken charge of
RGBL from the erstwhile IRP and the Project.

The Company had filed an Intervention
Application at Hon'ble NCLT being aggrieved
by the rejection of COC to consider the
proposal dated 24.02.2022 of the applicant
under section 12A of IBC. The matter was
listed on 7^th June,2022 for admission of the
petition. The Hon'ble Members were pleased

to direct the RP to file reply to the subject IA and further stated that upon approval of the resolution plan
by the CoC, application under section 12A is not maintainable. At the next hearing dated 21^st June,2022 the
company requested for time to file an affidavit in rejoinder to the reply filed by the Resolution Professional.
Resolution Plan submitted by M/s. Prakash Asphaltings & Toll Highways (India) Limited has been accepted by
the COC/ RP against which the company had filed an intervention application before NCLT, challenging the
Resolution Plan, which has since been rejected by Hon'ble NCLT. The NCLT vide order dated August 10, 2022,
has approved the resolution plan. The company has filed an appeal against the impugned order in NCLAT
which was pending admission. The Company has subsequently withdrawn the appeal pending and the same
was approved vide Hon'ble NCLAT order dated 16^th May, 2023. The company had made full provision in the
books of accounts as on date towards its entire funded exposure in the SPV amounting to ' 1,08,190.66 lacs
on a prudent basis. The balance non funded exposure in SPV is ' 9,811.02 lacs as at March 31,2024. No notice
for recovery against the corporate guarantee has been received by the Company.

31 Disclosure in accordance with Ind AS - 116 "Leases”, of the Companies (Indian Accounting
Standards) Rules, 2015.

a) The Company has taken office premises on leave and license basis which are cancellable contracts.

32 Disclosure in accordance with Ind AS - 108 "Operating Segments”, of the Companies (Indian
Accounting Standards) Rules, 2015.

The Company's operations constitutes a single business segment namely "Infrastructure Development" as per
INDAS 108. Further, the Company's operations are within single geographical segment which is India. As such,
there is no separate reportable segment under Ind AS - 108 on Operating Segments.

There is no revenue from operations and therefore the disclsosure of major customer is not provided.

33 Disclosure in accordance with Ind AS - 24 "Related Party Disclosures”, of the Companies (
Indian Accounting Standards) Rules, 2015

Details are given in Annexure -1

34 Derivative Instruments and Unhedged Foreign Currency Exposure

There are no derivative instruments outstanding as at March 31, 2024 and March 31, 2023 . The Company has no
foreign currency exposure towards liability outstanding as at March 31, 2024 and March 31, 2023.

The management assessed that fair value of cash and short-term deposits, trade receivables, trade payables,
book overdrafts and other current financial assets and liabilities approximate their carrying amounts largely due to
the short-term maturities of these instruments.

36 Fair Value Hierarchy

This section explains the judgments and estimates made in determining the fair values of the financial instruments
that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values
are disclosed in the revised financial statements. To provide an indication about the reliability of the inputs used
in determining fair value, the group has classified its financial instruments into the three levels prescribed under
the accounting standard. An explanation of each level follows underneath the table.

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The following table presents the fair value measurement hierarchy of financial assets and liabilities measured at
fair value on recurring basis as at March 31, 2024 and March 31, 2023

The Company is in the business of infrastructure development and it undertakes projects in multiple infrastructure
segments. The nature of the business is complex and the Company is exposed to multiple sector specific and
generic risks. PPP projects which the Company undertakes are capital intensive and have gestation periods
ranging between 3 to 5 years; coupled with longer ownership periods of 15 to 35 years. Given the nature of the
segments in which the company operates, be it in the Road Sector, Power Sector, Ports or Urban Development,
it is critical to have a robust, effective and agile Risk Management Framework to ensure that the Company's
operational objectives are met and continues to deliver sustainable business performance. Over the years,
several initiatives have been taken by the Company to strengthen its risk management process. An enterprise
wide comprehensive risk management policy including risk appetite, tolerance and risk limits for more effective,
informed and measurable risk management has been developed and it continues to evolve.

The Company's activities expose it to a variety of financial risks: credit risk, liquidity risk, and interest rate risk,
regulatory risk and business risk. The Company's primary focus is to foresee the unpredictability of financial
markets and seek to minimize potential adverse effects on its financial performance. The primary market risk to
the company is interest rate risk.

The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised
below:

Financial risk factors

i) Business / Market Risk

Business/ 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.

One of the first and foremost business risk is the achievement of the traffic projections made at the time
of the bid. This will include the introduction of alternate roads by the state or central government which
impacts the traffic projected to ply on the asset under the control of the Company. The concession
agreement provides some safeguards in this regard but many of them are unforeseen and exposes the
Company / SPV to risk. "

ii) Capital and Interest rate Risk

Infrastructure projects are typically capital intensive and require high levels of long-term debt financing. The
Company intends to pursue a strategy of continued investment in infrastructure development projects. In
the past, the Company was able to infuse equity and arrange for debt financing to develop infrastructure
projects on acceptable terms at the SPV-level of relevant projects. However, the Company believes that its

ability to continue to arrange for capital requirements is dependent on various factors. These factors include:
timing and internal accruals generation; timing and size of the projects awarded; credit availability from
banks and financial institutions; the success of its current infrastructure development projects. Besides, there
are also several other factors outside its control. However, the Company's track record has enabled it to raise
funds at competitive rates. The Company's average cost of debt remains at 11.5% p.a.

iii) Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that
portion of loans and borrowings affected. With all other variables held constant, the Companies profit before
tax is affected through the impact on floating rate borrowings, as follows:

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently
observable market environment, showing a significantly higher volatility than in prior years.

iv) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from the Company's receivables from
customers and investment securities. Credit risk arises from cash held with banks and financial institutions,
as well as credit exposure to clients, including outstanding accounts receivable. The maximum exposure to
credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit
risk is to prevent losses in financial assets.

a) Trade and Other Receivables

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting
to ' 524.41 lacs as at March 31, 2024 and ' 524.41 lacs as at March 31, 2023 , which is primarily from the SPV of
the Company.

(v) Liquidity risk

The company's principal sources of liquidity are cash and bank balances and the cash flow that is generated
from operations.

The company has outstanding borrowings of ' 6,148.76 lacs as at March 31, 2024 and ' 13,928.30 lacs as at
March 31, 2023.

The companies' working capital is not sufficient to meet its current requirements. Accordingly, liquidity risk
is perceived. The Current Liabilities of the Company exceeds current Assets by ' 1,45,078.65 Lacs as at
March 31, 2024 and by ' 1,42,468.05 Lacs as at March 31, 2023. These conditions indicate the existence of an
uncertainty as to timing and realization of cash flow of the company.

(vi) Competition Risk:

The Company is operating in a highly competitive environment with various Companies wanting a pie in the
project. This invariably results in bidding for projects at low margins to maintain a steady flow of the projects
to enable the group to retain the projects team and to maintain sustainable operations for the Company and
the SPVs. The ability of the Company to build the infrastructure at a competitive price and the ability to start
the tolling operations is very important factor in mitigating the competition risk for the group.

(vii) Input cost risk

Raw materials, such as bitumen, stone aggregates cement and steel, need to be supplied continuously to
complete projects undertaken by the group. As mentioned in the earlier paragraph of the business risk and
the competition risk the input cost is a major risk to attend to ensure that the Company is able to contain the
project cost within the estimate projected to the lenders and the regulators. To mitigate this the group sub¬
contracts the construction of the facility at a fixed price contract to various subcontractor within and without
the group.

(viii) Exchange risk

Since the operations of the group are within the country the group is not exposed to any exchange risk
directly. The group also does not take any foreign currency borrowings to fund its project and therefore the
exposure directly to exchange rate changes is minimal. However there are indirect effects on account of
exchange risk changes, as the price of bitumen, which is a by-product of the crude, is dependent upon the
landed price of crude in the country.

For the purpose of the Group's capital management, capital includes issued equity capital, convertible
preference shares, share premium and all other equity reserves attributable to the equity holders of the parent.
The primary objective of the Group's capital management is to maximise the shareholder value.

The Group 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 Group may
adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Group
monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The gearing ratio
in the infrastructure business is generally high. The Group includes within net debt, interest bearing loans and
borrowings, trade and other payables, less cash and cash equivalents, excluding discontinued operations.

39 The information about transaction with struck off Companies (defined under section 248 of the Companies Act,
2013 or section 560 of Companies Act, 1956) has been determined to the extent such parties have been identified
on the basis of the information available with the Company and the same is relied upon by the auditors.

40 Audit Trail

The Ministry of Corporate Affairs (MCA) by the Companies (Accounts) Amendment Rules 2021 has prescribed a
new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted
requiring companies, which uses accounting software for maintaining its books of account, shall use only such
accounting software which has a feature of recording audit trail of each and every transaction, creating an edit
log of each change made in the books of account along with the date when such changes were made and
ensuring that the audit trail cannot be disabled. Company has audit trail enabled at Tally Prime application level
and not at database levels.

As required under above rules, the Company is using Tally Prime application as accounting software for
maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same
has been operated throughout the year for all transactions recorded and the audit trail feature has not been
tampered with. The Tally Data is in an encrypted form and therefore direct access of the data does not provide
any meaningful methodology to edit the data."

41 Analytical Ratios as per requirements of Schedule III are given in Annexue - 2

42 Revision to the Standalone Financial Statements

These Financial Statements are revised for reasons disclosed in Note no 1 (C ) as disclosed herein above.

43 The balance sheet, statement of profit and loss, cash flow statement, statement of changes in equity, statement
of material accounting policy information and the other explanatory notes forms an integral part of the revised
financial statements of the Company for the year ended March 31, 2024

As per our report of even date For and on behalf of the Board of Directors of

For Natvarlal Vepari & Co AJR Infra and Tolling Limited

Chartered Accountants
Firm Registration No. 106971W

Nuzhat Khan Mineel Mali Srinivasu Chaganti

Partner Whole-Time Director Non-Executive Director

M.No. 124960 DIN: 06641595 DIN: 06387528

Place: Mumbai Vinay Sharma Kaushal Shah

Dated : August 14, 2024 Chief Financial Officer Company Secretary

M.No ACA 063188 M. No. ACS 18501