(s) Provisions

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

Where there are a number of similar obligations, the
likelihood that an outflow will be required in settlement is
determined by considering the class of obligations as a
whole. A provision is recognised even if the likelihood of an
outflow with respect to any one item included in the same
class of obligations may be small.

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

(t) Contingent Liabilities and Contingent Assets

A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain
future events beyond the control of the Company or a
present obligation that is not recognized because it is
probable that an outflow of resources will not be required to
settle the obligation. However, if the possibility of outflow of
resources, arising out of present obligation, is remote, the
same is not disclosed as contingent liability.

A contingent liability also arises in extremely rare cases
where there is a liability that cannot be recognized because
it cannot be measured reliably. The Company does not
recognize a contingent liability but discloses its existence in
the notes to standalone financial statements. A Contingent
asset is not recognized in standalone financial statements,
however, the same are disclosed where an inflow of
economic benefit is probable.

(u) Impairment of Non-financial Assets

Assessment for impairment is done at each Balance
Sheet date as to whether there is any indication that a
non-financial asset may be impaired. For the purpose of
assessing impairment, the smallest identifiable group of
assets that generates cash inflows from continuing use
that are largely independent of the cash inflows from

other assets or group of assets is considered as a cash
generating unit. If any indication of impairment exists, an
estimate of the recoverable amount of the individual asset/
cash generating unit is made. Asset/cash generating unit
whose carrying value exceeds their recoverable amount
are written down to the recoverable amount by recognizing
the impairment loss as an expense in the Statement of
Profit and Loss.

(v) Cash and Cash Equivalents

Cash and cash equivalents in the Balance Sheet comprise
of cash on hand, demand deposits with Banks, other short¬
term, highly liquid investments with original maturities of
three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant
risk of changes in value.

(z) Earnings per Share (EPS)

Basic earnings per share are calculated by dividing
the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity
shares outstanding during the year.

For the purpose of calculating diluted earnings per share,
the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of
all dilutive potential equity shares.

Both Basic earnings per share and Diluted earnings per
share have been calculated with and without considering
exceptional item

(aa) Leases

The Company, at the inception of a contract, assesses
whether a contract is, or contains a lease. A contract is,
or contains, a lease if the contract conveys the right to
control the use of an identified asset for a period of time
in exchange for consideration. A lessee recognises a
right-of-use (“ROU”) asset representing its right to use
the underlying asset and a lease liability representing its
obligation to make lease payments. Also, the Company
has elected not to recognise right-of-use of assets and

lease liabilities for short term leases that have a lease
term of 12 months or less and leases of low value assets.
The Company recognizes the lease payments associated
with these leases as an expense on a straight-line basis
over the lease term. The right-of-use assets are initially
recognised at cost, which comprises the initial amount of
the lease liability adjusted for any lease payments made
at or prior to the commencement date of the lease plus
any initial direct costs less any lease incentives. They
are subsequently measured at cost less accumulated
depreciation and impairment losses, if any. Right-of-use
assets are depreciated from the commencement date
on a straight line basis over the shorter of the lease term
and useful life of the underlying asset. The lease liability
is initially measured at the present value of the future
lease payments. The lease payments are discounted
using the interest rate implicit in the lease or, if not
readily determinable, using the incremental borrowing
rates. The lease liability is subsequently remeasured by
increasing the carrying amount to reflect interest on the
lease liability, reducing the carrying amount to reflect the
lease payments made.

A lease liability is remeasured, with a corresponding
adjustment to the ROU asset, upon the occurrence of
certain events such as a change in the lease term or a
change in an index or rate used to determine lease
payments. Lease liabilities and ROU assets have been
separately presented in the Balance Sheet and lease
payments have been classified as financing cash flows.

(bb) Non-current assets (or disposal group) held for sale
and discontinued operations

Non-current assets (or disposal group) are classified as held
for sale if their carrying amount will be recovered principally
through a sale transaction rather than through continuing
use and a sale is considered highly probable. They are
measured at the lower of their carrying amount and fair
value less costs to sell, except for assets such as deferred
tax assets, assets arising from employee benefits, financial
assets and contractual rights under insurance contracts,
which are specifically exempt from this requirement.

An impairment loss is recognized for any initial or
subsequent write-down of the asset (or disposal group)
to fair value less costs to sell. A gain is recognized for
any subsequent increases in fair value less costs to sell
of an asset (or disposal group), but not in excess of any
cumulative impairment loss previously recognized. A gain
or loss not previously recognized by the date of the sale of
the non-current asset (or disposal group) is recognized at
the date of de-recognition.

Non-current assets (including those that are part of a
disposal group) are not depreciated or amortized while they
are classified as held for sale. Interest and other expenses
attributable to the liabilities of a disposal group classified as
held for sale continue to be recognized.

Non-current assets classified as held for sale and the
assets of a disposal group classified as held for sale are
presented separately from the other assets in the balance
sheet. The liabilities of a disposal group classified as held
for sale are presented separately from other liabilities in
the balance sheet.

A discontinued operation is a component of the entity
that has been disposed of or is classified as held for sale
and that represents a separate major line of business or
geographical area of operations, is part of a single co¬
ordinated plan to dispose of such a line of business or area
of operations, or is a subsidiary acquired exclusively with a
view to resale.

The results of discontinued operations are presented
separately in the Statement of Profit and Loss.

(cc) Interest in Joint Operations

The Company has joint operations within its Engineering
and Construction segment and participates in several
unincorporated joint operations which involve the joint
control of assets used in Engineering and Construction
activities. Accordingly, assets and liabilities as well as
income and expenditure are accounted on the basis of
available information on a line-by-line basis with similar
items in the standalone financial statements, according to
the participating interest of the Company.

(dd) Business Combinations

Business combinations involving entities or businesses
under common control are accounted for using the pooling
of interests method, the assets and liabilities of the
combining entities are reflected at their carrying amounts,
the only adjustments that are made are to harmonise
accounting policies.

(ee) Recent Accounting Pronouncements:

Ministry of Corporate Affairs (“MCA”) notifies new
standards or amendments to the existing standards under
Companies (Indian Accounting Standards) Rules as issued
from time to time. In May 2025, MCA notified amendments
to Ind AS 21 - The Effects of Changes in Foreign Exchange
Rates, applicable w.e.f. April 1, 2025. The Company has
reviewed the amendment and based on its evaluation has
determined that it does not have any significant impact in
its financial statements.

In August 2025, MCA notified the following amendments to:

(a) Ind AS 1, Presentation of Financial Statements,
applicable w.e.f. 1st April, 2025 - The amendment
relates to classification of liabilities as current or non¬
current and non-current liabilities with covenants.
In the context of classifying a liability as current, it
removes the requirement of existence of a right to defer
settlement for at least 12 months after the reporting
date and instead requires that the said right should
exist on the reporting date and have substance. The
amendment also introduces guidance on classification
of liabilities with covenants. The Company has no
impact of these amendments in its classification
criteria of current and non-current liabilities.

(b) Ind AS 7, Statement of Cash Flows and Ind AS 107,
Financial Instruments: Disclosures, applicable w.e.f.
1st April, 2025 - The amendment in Ind AS 7 requires to
inform users of financial statements of the existence of
supplier finance arrangements and explain the nature
of the arrangements, the carrying amount of liabilities
and the range of payment due dates. Ind AS 107 has
been amended to add supplier finance arrangements
as a factor that may cause concentration of liquidity
risk. The Company has reviewed the amendments
and based on its evaluation has determined that is

does. not have any significant impact in its standalone
financial statements.

(c) Ind AS 12, International Tax Reform - Pillar Two Model
Rules applicable immediately - The Company has
reviewed the amendment and based on its evaluation
has determined that it does not have any significant
impact on its standalone financial statements.

3. Critical estimates and judgments

The presentation of standalone financial statements
under Ind AS requires management to take decisions and
make estimates and assumptions that may impact the
value of revenues, costs, assets and liabilities and the
related disclosures concerning the items involved as well
as contingent assets and liabilities at the balance sheet
date. Estimates and judgements are continually evaluated
and are based on historical experience and other factors,
including expectations of future events that are believed
to be reasonable under the circumstances. The Company
makes estimates and assumptions concerning the future.
The resulting accounting estimates will, by definition,
seldom equal the related actual results. The estimates
and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of assets and
liabilities within the next financial year are discussed below.

• Estimation of deferred tax assets recoverable

Deferred tax assets are recognised to the extent
that it is probable that taxable profit will be available
against which the same can be utilised. Significant
management judgement is required to determine
the amount of deferred tax assets that can be
recognised, based upon the likely timing and the
level of future taxable profits together with future tax
planning strategies.

• Estimated fair value of unlisted securities

The fair value of financial instruments that are not
traded in an active market is determined using valuation
techniques. The Company uses its judgement to
select a variety of methods and make assumptions
that are mainly based on market conditions existing
at the end of each reporting period. Refer Note No. 53
on fair value measurements where the assumptions
and methods to perform the same are stated.

• Estimation of defined benefit obligation

The cost of the defined benefit gratuity plan and other
post-employment employee benefits and the present
value of the gratuity obligation are determined using
actuarial valuations. An actuarial valuation involves
making various assumptions that may differ from
actual developments in the future. These include
the determination of the discount rate, future salary
increases and mortality rates.

Due to the complexities involved in the valuation and
its long-term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount
rate. In determining the appropriate discount rate for

plans operated in India, the management considers
the interest rates of government bonds in currencies
consistent with the currencies of the post-employment
benefit obligation.

The mortality rate is based on publicly available
Indian Assured Lives Mortality (2012-14) Urban.
Those mortality tables tend to change only at
interval in response to demographic changes.
Future salary increases and gratuity increases
are based on expected future inflation rates for the
respective countries. Refer Note No. 49 for key
actuarial assumptions.

> Impairment of trade receivables, loans and other
financial assets

The impairment provisions for financial assets 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 the
Company’s past history, existing market conditions as
well as forward looking estimates at the end of each
reporting period.

Refer Note No. 53 on financial risk management
where credit risk and related impairment
disclosures are made.

11.1 No Loans or advances are due from directors or other officers of the Company either severally or jointly with any other person,
firms or private companies in which any director is a partner, a director or a member.

11.2 Loan to Related Parties represent 62.24 % as at March 31,2026 (Previous Year as at March 31,2025: 62.58%) of Total Loan
(Before Considering Provision).

11.3 During the year, pursuant to Assignment agreement executed between Reliance Power Limited and its subsidiaries i.e. Reliance
NU Suntech One Private Limited (erstwhile Tato Hydro Power Private Limited), the Company adjusted secured intercorporate
borrowings of t 122.00 crore and accrued interest of t 23.82 crore relating to Reliance NU Suntech One Private Limited against
intercorporate deposit given outstanding from Reliance Power Limited.

15. Non Current Assets Held for Sale

(a) KM Toll Road Private Limited (KMTR), a subsidiary of the Company and part of road SPVs, has terminated the Concession
Agreement with National Highways Authority of India (NHAI) for Kandla Mundra Road Project (Project) on May 7, 2019, on
account of Material Breach and Event of Default under the provisions of the Concession Agreement (Agreement) by NHAI.
The operations of the Project had been taken over by NHAI. The Investments in the KMTR are classified as Non-Current
Assets held for sale as per Ind AS 105, “Non-Current Assets held for sale and discontinued operations”.

17.1 Nature and purpose of Other Reserves

(a) Capital Reserve:

The Reserve is created based on statutory requirement under the Companies Act, 2013, on account of forfeiture of equity
shares warrants and schemes of Amalgamation and arrangements. This is not available for distribution of dividend but can
be utilised for issuing bonus shares.

(b) Security Premium:

This reserve is used to record the premium on issue of shares. The same can be utilized in accordance with the
provisions of the Act.

(c) Capital Redemption Reserve:

The Capital Redemption Reserve is required to be created on buy-back of equity shares. The Company may issue fully
paid-up bonus shares to its members out of the capital redemption reserve account.

(d) Debenture Redemption Reserve:

During the previous year, the Company has repaid its outstanding liabilities towards Non-Convertible Debentures.
Accordingly, in pursuance of Rule 18(7)(b)(iii) of the Companies (Share Capital and Debentures) Rules, 2014, the balance
in the Debenture Redemption Reserve has been transferred to the General Reserve.

(e) Treasury Shares:

Reliance Infrastructure ESOS Trust has in substance acted as an agent and the Company as a sponsor retains the majority
of the risks rewards relating to funding arrangement. Accordingly, the Company has recognised issue of shares to the Trust
as the issue of treasury shares by consolidating Trust into standalone financial statements of the Company.

(f) Employee Stock Option Outstanding

The fair value of the equity-settled share based payment transactions is recognised in the standalone statement of profit
and loss with corresponding credit to Employee Stock Options Outstanding Account.

(g) Retained Earning

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or
other distributions paid to shareholders.

(h) Other comprehensive Reserve

Cumulative gains and losses arising from fair value changes of equity investments measured at fair value through other
comprehensive income are recognised in other comprehensive income. The reserve balance represents such changes
recognised net of amounts reclassified to retained earnings on disposal of such investments.

17.2 Money received against share warrants

During the previous year, the Company allotted 12.56 crore warrants, at a price of H 240 per warrant (including a premium of
H 230 per warrant on equity share of face value of H 10 each), convertible into equivalent number of equity shares of the
Company. The Company has received application and allotment money H 753.60 crore during the previous year and H 225 crore
during the current year. The proceeds were utilised during the current year and previous year towards expansion of business
operations directly and/ or through investment in subsidiaries and general corporate purpose.

During the current year, upon exercise of an equivalent number of warrants, the Company issued and allotted 1.25 crore fully
paid up equity shares to a promoter group company. Remaining 11.31 crore warrants that were not exercised by the warrant
holders within the stipulated period lapsed and the warrant subscription amount of H 678.60 crore has been forfeited in the month
of April 2026 in accordance with the provisions of SEBI ICDR Regulations.

17.3 During the financial year 2019-20, due to unforeseen circumstances beyond the control of the Company, on account of invocation
of pledge by a lender on the Company's strategic investment in equity shares of Reliance Power Limited and sale thereafter
had resulted in significant losses and also reduction in the fair value of the remaining investment on mark to market basis. The
Company, based on expert opinion, adjusted such loss and reduction in the value aggregating to H 5,024.88 crore of its strategic
investments against the capital reserve. The aforesaid accounting treatment had been addressed by the statutory auditors in
their audit reports. During the current year, the Company has changed such accounting treatment in accordance with Ind AS 1,
'Presentation of Financial Statements'; Ind AS 109, 'Financial Instruments' and Ind AS 28, 'Investment in Associates and Joint
Ventures' and in accordance with Ind AS 8 'Accounting Policies, Changes in Accounting Estimates and Errors' loss on invocation
and fair valuation of investment adjusted against retained earnings, retrospectively.

17.4 The Scheme of Arrangement (“Scheme”) between the Company (“Transferee Company” or “Reliance Infra”) and its
wholly owned Subsidiary, Reliance Velocity Limited (“Transferor Company” or “RVL”) and their respective shareholders
and creditors under Sections 230 - 232 of the Companies Act, 2013 was sanctioned by the Hon’ble National Company
Law Tribunal by its order dated September 1,2025, and became effective on the Appointed date i.e. September 30, 2025.
In accordance with the requirements for common control transactions under Ind AS 103 ‘Business Combinations’, the
amalgamation has been accounted for using the ‘Pooling of Interests method’. The comparative figures of statement of
profit and loss for the year ended March 31,2025, and Balance Sheet as at 31 March 2025 and 01 April 2024 have been
restated to give effect to the amalgamation. Pursuant to the Scheme, (a) the Company has adjusted the debit balance
in the Profit and Loss account (Retained Earnings) as on the Appointed Date i.e. September 30, 2025 against (i) Capital
Redemption Reserve of H 130.03 crore (ii) Capital Reserve of H 5,179.96 crore, (iii) General Reserve of H 497.41 crore
and (iv) Securities Premium Account of H 5,533.49 crore. Further, with effect from the Appointed Date, (b) the balance
in other comprehensive income account of H 18,142.17 crore, combined with the existing balance of securities premium
account. The said adjustment is in accordance with the NCLT Order and overriding the applicable Ind AS requirements
to this extent.

18.1 Intercorporate secured Deposit from others H 85 crore (Previous year H 85 crore) are secured by first ranking exclusive mortgaged
over the Identified Fixed assets buildings situated in Mumbai and all of the Company’s rights, title, interest and benefits in, to and
under a specific bank account of Company (Creation/modification of charges pending with RoC). The rate of Interest is 11.50%.

18.2 Inter Corporate Deposit from related parties are secured by First Pari-Passu charge on all Current and Non-Current Assets of the
borrower present and future including movable and immovable, without limitation Investments, book debts, receivables, claims,
securities, stocks etc.

18.3 The Company, at its Board Meeting held on November 11,2025, approved seeking enabling authorisation from the members for
the issuance of Foreign Currency Convertible Bonds (FCCBs) aggregating up to U.S.$ 600 million. The said authorisation was
subsequently approved by the shareholders through a Postal Ballot on December 18, 2025. The proposed issuance of FCCBs
is subject to receipts of requisite necessary approval.

18.4 Interest rate on Inter Corporate Deposit ranges from 0% to 14.25%.

18.5 Refer Note 11.3.

18.6 Intercorporate Deposit from Others of t 85.00 crore (Principal undiscounted) is due for repayment on or before March, 2028 and
t 196.00 Crore (Principal undiscounted) is due for repayment September, 2031 onwards.

18.7 During the year, the Company has not been declared willful defaulter by any bank, financial institution or any other lender.

18.8 Working Capital Loans (Non Fund Based) from Banks are secured by way of first pari-passu charge on stock, book debts, other
current assets and additionally secured by a specific immovable property of the Company located at Mumbai. Statements of
Current Assets filed by the Company with its bankers are in agreement with books of account.

18.9 The Company has not taken any new facility during the year.

20.1 Pursuant to the Settlement Agreement dated May 23, 2025 entered into with Cosmea Business Acquisitions Private Limited,
the guarantee holder, the Company settled its obligation towards the corporate guarantees aggregating H 1,673 crore issued
on behalf of the EPC company and other entities, for an amount of H 425 crore out of which H 25 crore along with interest due
thereon has been paid in current year. Pursuant to the Settlement Agreement, no cash call shall be made against the Company
for next 10 years and the Company can settle the obligation with interest, at its discretion anytime on or before the expiry of
10 years, on cash or non-cash basis including by issue of shares, subject to the applicable provisions of law and requisite
permissions, sanctions and approvals. The said liability is secured against the current assets, present and future of the Company
on the subservient charge basis (modification of charges pending with ROC), before the settlement this security was given for
underlined Corporate Guarantees.

20.2 Other Financial Liabilities includes a Recompense and premium on recompense of H 253.77 crore (Previous Year H 238.70
crore), payable to the lenders, Pursuant to the Settlement Agreement dated March 28, 2025 entered into by the Company
with the lenders, wherein the lenders have the right to recompense from the Company in the event any amount is received by
the Company from any liquidity event. Upon exercise of this right, the recompense amount shall be secured by a first-ranking
exclusive mortgage over the identified fixed assets (buildings) situated in Mumbai (Creation of charges pending with ROC).

32 (a) Contingent Liabilities:

i) Claims against the Company not acknowledged as debts and under litigation aggregates to H 766.67 crore (March
31,2025 H 1,118.91 crore). These include claim from suppliers H 96.90 crore (March 31,2025 H 91.76 crore), income
tax claims H 406.34 crore (March 31, 2025 H 599.57 crore), indirect tax claims H 173.65 crore (March 31, 2025
H 356.89 crore) and other claims H 89.79 crore (March 31,2025 H 70.69 crore). The above claims do not include
claims/arbitration against the Company by the suppliers where the Company has also filed counter claims as the
Company does not expect any liability.

ii) With respect of Energy Purchase Agreement (EPA) entered with Dhursar Solar Power Private Limited (DSPPL),
The Maharashtra Electricity Regulatory Commission (MERC) vide order dated October 21,2016 allowed partial cost
claimed by the Company. Aggrieved by the said order, the Company had challenged the said order before Appellate
Tribunal for Electricity (APTEL). The APTEL has upheld the findings of MERC and the Company filed an appeal before
the Supreme Court of India against the APTEL Order. The matter is currently pending before the Supreme Court of
India. Post transfer of Mumbai Power Business to Reliance Electric Generation and Supply Limited (REGSL), inter¬
se agreement was entered between REGCL, DSPPL and the Company, whereby the Company has agreed that the
liability of REGSL to make tariff payments for the energy supplied by DSPPL is limited to the MERC approved tariff
and the Company has agreed to pay the differential amount between tariff payment as per EPA and MERC approved
tariff to the DSPPL thorough an agreement cum indemnity. Pending outcome of the matter, the Company continues
to account differential expenditure as cost on monthly basis. The Company has also legally been advised that it has
good case on merit and have fair chance to succeed. Based on the above facts the Company has not considered the
said agreement cum indemnity as an Onerous Contract.

(b) Capital and Other Commitments:

i) Uncalled liability on partly paid warrants H199.87 crore (March 31, 2025 H 199.87 crore) out of which H Nil crore
(March 31,2025 H 188.94 crore) will be adjusted against existing inter corporate deposit given to the Warrant Issuer.
(Refer Note 6 $$)

ii) The Company has given equity / fund support / other undertakings for setting up of projects / cost overrun in respect
of various infrastructure and power projects being set up by Company’s subsidiaries and associates; the amounts of
which currently are not ascertainable.

(c) During the financial year 2020-21, the Company, as a part of settlement with Yes Bank Limited, had sold its investment
property including Property, plant and equipment at Santacruz at a total transaction value of H 1,200 crore through the
conveyance deed entered with Yes Bank Limited. The Company is entitled to exercise its rights/option to buy back this
property after 8.5 years from the date of sale, subject to fulfilment of the condition precedents at an agreed price as per
option agreement entered between parties.

33. Related Party Disclosures:

As per Ind AS - 24 “Related Party Disclosures”, the Company’s related parties and transactions with them in the ordinary course

of business are disclosed below:

(iii) Investing Party - Risee Infinity Private Limited (RIPL) and Reliance Project Ventures and Management Private
Limited (RPVMPL).

(iv) Persons having control over the Investing Party - Shri Anil D Ambani and Family, being part of promoter / promoter
group of the Company.

(v) Enterprises over which person described in (iv) has control / significant influence - Reliance Transport and Travels
Private Limited and Vihaan43 Realty Private Limited.

Pursuant to the Special Resolution dated March 23, 2025 approving the alteration of the Articles of Association of the
Company, Shri Anil D. Ambani and Family ceased to exercise control over the Company. Accordingly, person / entities
referred to in (iii), (iv) and (v) above are not related parties of the Company as per Ind AS 24 with effect from March 23, 2025.

(ii) Balance sheet heads (Closing balance- Gross)

March 31,2026

Trade Payables, Advances received and other liabilities for receiving of services: SsPoL H 276.50 crore, DSPPL
H 324.62 crore.

Investment in Equity of RePL H 1297.54 crore, TKTRPL H 168.39 crore, CBDT H 166.03 crore, BRPL H 12,897.19
crore, BYPL H 5,964.95 crore, BKPL H 244.07 crore, RDL H 953.7 crore, UPL H 66.84 crore. Inter Corporate Deposit
(ICD) Taken: DSPPL H 40.35 crore, BKPL H 118.10 crore and DSTRPL H179.43 crore. Inter Corporate Deposit
(ICD) Given: MMOPL H 283.79 crore, DAMEPL H 74.12 crore, PSTRPL H 147.55 crore, RAL H 110.51 crore, TDTRPL
H 119.00 crore, JRTRPL H 89.3 crore, RPTL H 55.56 crore, SUTRPL H 36.31 crore, RePL H 127.03 crore and RDL
H 26.57 crore and RBGTL H 28.67 crore. Subordinate debt given to PSTL H 1,078.51 crore, DAMEPL H 787.53
crore, HKTRPL H 302.26 crore, JRTRPL H 156.18 crore, TKTRPL H 215.04 crore, NKTRL H 110.66 crore and
MMOPL H 237.99 crore, RDL H 70.89 crore, RPTL H 54.63 crore and TDTRPL H 34.67 crore. CCD issued : RDL
H 225 crore Investment in Share Warrants: Repl H 89.02 crore. Trade Receivables, Advances given and other
receivables for rendering services SaPol H. 1,932.24 crore and TKTR H 36.26 crore. Non-Current Assets Held
for sale and Discontinued Operations of KMTL H 510.94 crore. Interest receivable on ICD & Sub Debts: MMOPL
H 249.86 crore, NKTRL H 100.06 crore, RDL H 51.85 crore and RAL H 40.56 crore. Interest Payable on ICD : DSTRPL
H 33.04 crore and Dhursar Power H 28.67 crore.

March 31,2025

Trade Payables, Advances received and other liabilities for receiving of services: SaPoL H 276.50 crore, DSPPL
H 302.44 crore.

Investment in Equity of RePL H 971.50 crore, MMOPL H 799.54 crore, DSTRPL H 80.09 crore, TDTRPL H 99.82 crore,
TKTRPL H 189.73 crore, GFTRPL H 195.12 crore, CBDT H 166.03 crore, BRPL H 12,200.07 crore, BYPL H 6,058.83
crore, BKPL H 148.76 crore, RADL H 85.42 crore, RDL H 1042.72 crore and UPL H 66.84 crore. Inter Corporate Deposit
(ICD) Taken: DSPPL H 40.35 crore. Inter Corporate Deposit (ICD) Given: MMOPL H 283.79 crore, DAMEPL H 69.06
crore, PSTRPL H 147.50 crore, RAL H 104.25 crore, TDTRPL H 119.00 crore, JRTRPL H 75.52 crore, RPTL H 55.56
crore, RAL H 128.51 crore, RePL H 238.09 crore. Subordinate debt given to PSTL H 1,078.51 crore, DAMEPL H 787.53
crore, HKTRPL H 302.26 crore, GFTRPL H 128.59 crore, JRTRPL H 156.18 crore, TKTRPL H 215.04 crore, NKTRL
H 110.66 crore and MMOPL H 237.99 crore, DSTRL H 46.80 crore, RDL H 70.89 crore, RPTL H 54.63 crore.
Investment in Share Warrants: Repl H 415.06 crore.Trade Receivables, Advances given and other receivables for
rendering services SaPol H 1,932.24 crore., TKTRPL H 36.25 crore, Non-Current Assets Held for sale and Discontinued
Operations of KMTL H 544.94 crore. Interest receivable on ICD & Sub Debts: MMOPL H 249.86 crore, NKTRL
H 194.74 Crore, RDL H 40.82 crore.

(iii) Guarantees and Collaterals
March 31,2026

PSTL H 490.01 crore, RPTL H 44.38 Crore and DAMEPL H 19.36 crore
March 31,2025

PSTL H 597.99 crore, RPTL H 44.38 crore and DAMEPL H 19.36 crore

Notes:

1) The above disclosure does not include transactions with/as public utility service providers, viz, electricity, travelling,
telecommunications etc. in the normal course of business.

2) Transactions with Related Party which are in excess of 10% of the total revenue of the Company as per standalone
financial statements are considered as Material Related Party Transactions.

34. Interest in Jointly Controlled Operations

(i) Block SP(N) - CBM - 2005 / III (Coal Bed Methane): The Company along with M/s. Geopetrol International Inc. and
Reliance Power Limited *(the consortium) was allotted 4 Coal Bed Methane (CBM) blocks from Ministry of Petroleum and
Natural Gas (Mo PNG) covering an acreage of 3,266 square kilometres in the States of Madhya Pradesh, Andhra Pradesh
and Rajasthan. The consortium had entered into a contract with Government of India for exploration and production of CBM
gas from these four CBM blocks. The Company as part of the consortium had 45% share in each of the four blocks. M/s.
Geopetrol International Inc was appointed the operator on behalf of the consortium for all the four CBM blocks. In SP (N)
CBM block, Company subsequently acquired 10% share and Operatorship from M/s. Geopetrol International Inc.

The Board of Directors of the Company has approved the transfer of operatorship from M/s. Geopetrol International Inc
to the Company on February 14, 2015. Mo PNG approved the same on April 28, 2016 and amendment to Contract has
been conveyed on January 29, 2018. DGH approved exploration Phase-II commencement date as February 28, 2018 with
Company as Operator. Currently the company is awaiting the change of ownership of Environment clearance which was
applied to Ministry of Environment Forest and Climate Change on March 28, 2018.

(ii) RInfra Astaldi Joint Venture (Metro): The Company along with ASTALDI S.p.A. (ASTALDI), a company incorporated
under the law of Italy, consortium was allotted a project for Part Design and Construction of Elevated Viaduct and Elevated
Stations [Excluding Architectural Finishing & Pre-engineered steel roof structure of Stations] from Chainage (-) 550 M TO
31872.088 M of LINE-4 CORRIDOR [Wadala-Ghatkopar-Mulund-Thane Kasarvadavali] of Mumbai Metro Rail Project of
MMRDA. Company has entered into subcontract agreement with Milan Road Buildtech LLP (MILAN) for balance project
work with effective date from 01st October 2021.

(iii) Rinfra & Construction Association Interbudmntazh JT Stock Co. Ukraine (JV): The Company along with “Construction
Association Interbudmontazh” (CAI), a company registered at Ukraine, consortium was allotted a project from Ministry of
Road Transport & Highways (MoRTH) through PWD, Maharashtra for Rehabilitation and Upgradation of NH-66 (Erstwhile
NH-17) including 6 Lanes near Parshuram village in the State of Maharashtra under NHDP-IV on EPC Mode of Contract.

35. Segment Reporting

(a) Description of segments and principal activities

The Company is predominantly engaged in the business of Engineering and Construction (E&C). E&C segment renders
comprehensive, value-added services in construction, erection and commissioning. All other activities of the Company are
integrally related to the E&C business and do meet the criteria for separate reporting. Accordingly, the Company has no
separate reportable segments in terms of Ind AS 108- Operating Segments.

(b) Information about Major Customer

Revenue from operations includes H 228.49 crore (Previous Year H 203.85 crore) from three customer having more than
10% of the total revenue.

(c) Geographical Segment:

The Company’s operations are mainly confined in India. The Company does not have material earnings from business
segment outside India. As such, there are no reportable geographical segments.

36. As per Section 135 of the Companies Act, 2013 every Company is under obligation to incur expenses towards Corporate Social
Responsibilities (CSR), being 2% of the average net profit during the three immediately preceding financial years calculated in
the manner as stated in the Act. However, in view of losses incurred by the Company during the three immediately preceding
financial years, the Company’s CSR obligation is H Nil (Previous Year H Nil). However, the Company has a duly constituted
Corporate Social Responsibility and Sustainability Committee (CSRS Committee) in compliance with the provisions of Section
135 of the Act read with the Companies (Corporate Social Responsibility Policy) Rules, 2014.

37. During the previous year, pursuant to the consent terms / settment agreement, the entire dues of the EPC Company of
H 6,503.13 crore and dispute in regards the same stands fully settled by payment, assignment / transfer of the assets/ economic
interest in assets for H 5,777.13 crore, at fair value, based on valuation carried out by IBBI registered independent valuers and
fairness opinion on the same from a Merchant Banker and the balance amount of H 726 crore being Decreed Amount which is
converted to a secured loan and which is provided for as a matter of prudence.

Pursuant to the Consent Terms, as part of the assignment, the EPC Company has;

a. Assigned entire economic rights of its shareholding in Western Electricity Supply Company of Odisha Limited, North
Eastern Electricity Supply Company of Odisha Limited and Southern Electricity Supply Company of Odisha Limited,
(“collectively referred as Odisha Discoms”) at an aggregate value of H 4,593.10 crore and shares and securities in certain
unlisted entities at an aggregate value of H 155.01 crore (Refer Note 6 (D));

b. Assigned its receivables pertaining to Arbitration Awards and Claims of certain road SPVs of the Company, at a fair value
of H 896.29 crore. Considering the contingent nature of the same, the Company has as a matter of prudence provided for
the same during the previous year;

c. Assigned / transferred Loans & Advances of H 90.12 crore, Trade Receivables of H 38.61 crore and cash aggregating to H 4 crore.

d. The amount of H 726 crore, being Decreed Amount stands converted to a secured loan, which is provided for as a matter of
prudence during the previous year.

During the current year, Company has received H 30 crore against decree amount and provision of the same has been
reversed. The Company holds investments in economic rights in shares and securities of Odisha Discoms and certain
unlisted entities, with an aggregate fair value of H 4,705.74 crore. The management conducted a fair valuation of these
economic rights, by an independent external valuation expert. The determination of the fair value involves the application of
judgement and estimates, particularly in relation to key assumptions used in the valuation process. Based on the outcome
of this assessment, the Company is positive of recovering the fair value of investments in economic rights.

38. Exceptional Items:

Exceptional Items for the year ended March 31, 2026 includes, (i) Income from reversal of provision for financial guarantee
obligation H 264.30 crore, Reversal of amount due to customer for contract work H 242.19 crore, Reversal of Impairment Provision
of Investment in Sub debt H 128.60 crore, Reversal of Impairment Provision for Interest Accrued H 43.90 crore, Reversal of
Allowance for Expected Credit Loss ('ECL') of ICD Given of H 31.50 crore, Reversal of Allowance for ECL on Trade Receivable
H 24.58 crore, Arbitration claim received H 20.00 crore and Recovery from Investment written off H 5.00 crore (ii) Expenditures for
Impairment on Investment in Subdebts H 526.01 crore, Allowance for ECL on Trade Receivable H 311.79 crore, Allowance for ECL
on ICD Given H 251.20 crore, Investment in subdebts written off H 128.60 crore, Interest expenses on delayed payment of energy
purchase invoices H 92.68 crore, Impairment on Investment in Share Warrants H 89.02 crore, Allowance for ECL on Contract
assets H 34.56 crore, Written off Trade Receivable H 24.58 crore, Impairment of Investment in Preference Shares H 17.49 crore,
Allowance for ECL on Balance with Government Authorities H 11.15 crore, Written off ICD Given H 1.50 crore, Allowance for ECL
on Interest Accrued H 1.20 crore, Allowance for ECL on Advance to Vendor H 0.66 crore.

39. i) The Company is engaged in the business of providing infrastructural facilities as per Section 186 (11) read with Schedule

VI of the Act. Accordingly, Section 186 of the Act is not applicable to the Company.

ii) There are no transactions with struck off company during the year and there are no balances outstanding with struck off
companies as per Section 248 of the Companies Act, 2013.

iii) No Fund have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by the Company to or in any person or entity, including foreign entities (‘Intermediaries’) with the understanding,
whether recorded in writing or otherwise, that the intermediary shall land or invest in party identified by or on behalf of the
Company (‘ultimate beneficiaries’). The Company has not received any funds from the any party with the understanding
that the Company shall whether, directly or indirectly lend or invest in other person or entities identified by or on behalf of
the Company (‘ultimate beneficiaries’) or provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

iv) The Company has complied with the provision of section 2(87) of the Companies Act, 2013 read with the Companies
(Restrictions on number of layers) Rules, 2017.

v) The Company has not traded and invested in Crypto currency or virtual currency during the current year or previous
financial year.

40. As on March 31,2026 the Company has net exposure except investment in equity share aggregating to (i) H 170.00 crore in
it one subsidiary (road SPV) and (ii) H 771.64 crore in Mumbai Metro One Private Limited (MMOPL), another subsidiary of
the Company. The management has performed an impairment assessment of these investments, through valuation of the
business of these subsidiaries carried out by independent external valuation expert. The determination of the fair value involves
judgement and estimates in relation to various assumptions including growth rates, discount rates, terminal value etc. Based
on this exercise, the Company is positive for recovering the said exposure from these subsidiaries. Accordingly, no further
impairment is required.

41. HK Toll Road Private Limited (HKTR), a wholly owned subsidiary, has been awarded the Concession on Build, Operate, and
Transfer (BOT) basis, for six laning of Hosur-Krishnagiri section of National Highway No. 7 (Km 33.130 to Km 93.000) in the
state of Tamil Nadu under the Concession Agreement (CA) dated July 2, 2010. NHAI issued a Termination Notice on January 22,
2024. On January 23, 2024 HKTR filed petition under Section 9 of the A&C Act, before DHC for stay on the Termination Notice.
DHC vide its order dated January 25, 2024 disposed of the petition and directed the Arbitral Tribunal (about to be constituted) to
treat the petition as an application u/s 17 of the A&C Act. The Arbitral Tribunal pronounced its order on the section 17 application
on August 08, 2024, directing that the Termination Notice be kept in abeyance till the final adjudication of disputes between the
parties and NHAI to deposit into the Escrow Account the toll collections from January 22, 2024 onwards till the date of handover
of the Project to HKTR. NHAI challenged the same before the DHC on August 12, 2024. DHC on April 17, 2025 set aside the
order dated August 08, 2024 of the Arbitral Tribunal. HKTR has filed a Special Leave Petition before the SC and Notice is issued
to NHAI on May 02, 2025 and the SLP was listed on May 19, 2026 for final arguments. The SC will decide the question of law
in the matter. Meanwhile, the pleadings in the main arbitration are completed and HKTR filed its evidence affidavits in August/
September 2025. Cross-examination of the witnesses are pending. As HKTR has defaulted on its loan repayments, one of its
lenders has filed a petition u/s 7 of the IBC before NCLT for initiation of CIRP which is reserved for orders. As on March 31,
2026, the Company's net exposure to HKTR stands at HNil (Net of Provision H318.13 crore), comprising of subordinated debt and
receivables. As a matter of prudence, the Company has fully provided the same in previous year.

42. Pursuant to orders issued by the Maharashtra Industrial Development Corporation (MIDC) dated April 8, 2025, MIDC has
resumed possession of the lands leased to five step-down subsidiaries (Airport SPVs) of the Company—namely Baramati
Airport Limited, Osmanabad Airport Limited, Latur Airport Limited, Nanded Airport Limited, and Yavatmal Airport Limited—along
with all buildings and structures situated thereon. In response the Airport SPVs by their letters dated April 22, 2025 had opposed
these actions and clarified that the Resumption Order was contrary to the terms of the Lease Deed and ought to be withdrawn
by MIDC. Further, May 12, 2025, the Airport SPVs have issued their respective Notice for Conciliation in accordance with the
Lease Deeds. Response from MIDC to the conciliation notice is awaited. During the contemporaneous period, the SPVs was
in discussion with MIDC Officials for an amicable resolution of the matter and a favourable consideration of the SPVs request.
However, in view of the fact that no favourable consideration is received, as a matter of prudence, the Company has recognised
impairment H44.61 crore against Airport SPVs.

43. On March 06, 2024, Hon’ble Delhi High Court (DHC) had allowed the appeal filed against the Company by Shanghai Electric
Group Co Ltd (SEC) against the judgement of Single Judge of Hon’ble DHC dismissing its petition under Section 9 of A & C Act.
The appeal proceedings initiated by the Company before the Court of Appeal, Republic of Singapore, in proceedings against
the award of December 2022 for a sum of U.S.$ 146 million (~ H 1,384 crore), and interest thereon, was taken up for hearing
and dismissed. The detailed Judgement in this regard has been pronounced on December 17, 2024. In addition to above,
on November 15, 2024, the Singapore International Arbitration Centre (“SIAC”) arbitral tribunal awarded a sum of U.S.$ 6.84
million (~ H 82 crore) and interest thereon, in favour of SEC, in another arbitration matter. The Company is currently contesting
proceedings initiated by SEC. The Company has made adequate provision in the standalone financial statement of the Company.

44. Pursuant to an application under Section 9 of Insolvency and Bankruptcy Code, 2016 filed by a creditor, the National Company
Law Tribunal, Mumbai (NCLT) passed an order dated May 30, 2025 admitting the Company into Corporate Insolvency Resolution
Process (CIRP). The Company, having already made full payment of the entire amount claimed by the creditors, preferred an
appeal before the Hon’ble National Company Law Appellate Tribunal, New Delhi (NCLAT). The NCLAT, vide its order dated June
4, 2025, was pleased to suspend the impugned order and vide order dated July 18, 2025, to stay the said order and the CIRP
against the Company until further order. The matter is currently pending.

In another matter which was earlier disposed-off by NCLT vide its order dated August 21,2025 on account of settlement between
the parties, the operational creditor has filed a restoration application and the same is pending.

45. The Company has used accounting software for maintaining its books of account for the year ended March 31,2026, which has
an audit trail (edit log) feature enabled at the application level, and such feature operated throughout the year for all relevant
transactions recorded in the software. In addition to the application-level audit trail, the Company has enabled database-level
audit logging as an additional monitoring mechanism. The current database logging configuration has been designed based
on operational and performance considerations and captures key database activities. While the level of detail available in such
logs differs from the application-level audit trail and may not include extended SQL-level change information for all scenarios,
the Company relies primarily on the application-level audit trail for tracking changes to accounting records and transactions.
Further, no instance of tampering with the application-level audit trail feature was identified during the year. The audit trail records
generated by the system have been preserved in accordance with the Company's record retention practices. Management
will continue to evaluate opportunities for enhancing database logging configurations in line with business, operational, and
monitoring requirements.

46. Impact of change in Accounting Policy for fair valuation of investments in equity share of subsidiaries
through other comprehensive income (FVTOCI)

The majority of investments in the Company's balance sheet are comprised of investments made in its Subsidiaries. The
Company had so far maintained an accounting policy of carrying investments in equity shares of subsidiaries at cost less
accumulated impairment losses. The Company has voluntarily changed its accounting policy to provide more timely visibility
into the performance of invested capital and reflect the true value of its subsidiaries, in keeping with the provisions of Ind AS
8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’ to measure its equity investments in subsidiaries in the
standalone financial statement from cost less impairment as per Ind AS 27 ‘Separate Financial Statements’ to fair value through
other comprehensive income as per Ind AS 109 ‘Financial instruments’ with retrospective effect. Investments in equity share of
subsidiaries are now classified as fair value through other comprehensive income (FVTOCI) with changes in fair value of such
investments being recognised through other comprehensive income (OCI) as on each reporting date. The impact of the change
in accounting policy is presented below:

47. During the year, the Enforcement Directorate ('ED') conducted search operations at theCompany's premises in exercise of its
powers under Prevention of Money Laundering Act, 2002 ('PMLA') Subsequently, the ED (i) provisionally attached 37 immovable
properties owned by the Company, including its shareholding in its subsidiaries i.e. BSES Rajdhani Power Limited, BSES Yamuna
Power Limited and Mumbai Metro One Private Limited. Further under Foreign Exchange Management Act, 1999 ('FEMA') a lien
aggregating to H 77.86 crore has been provisionally marked on balances held across 13 bank accounts of the Company. The
Company has filed a Writ Petition before the Bombay High Court ("BHC") assailing the actions of ED. The matter is pending.
The provisional attachment orders related to with regard to 37 immovable properties have been confirmed by the Adjudicating
Authority in April 2026 under PMLA for a period of 365 days and the Company is in the process of filing an Appeal challenging
the same. Further, the adjudication proceedings in respect of the provisional attachment orders related to shareholding in its
subsidiaries and the marking of lien on the bank account of the Company are underway before the authorities.

Separately, the Company has received a Show Cause Notice ("SCN") dated September 30, 2025 on October 06, 2025 from the
Securities and Exchange Board of India (SEBI) alleging violation of SEBI (Prohibition of Fraudulent and Unfair Trade Practices)
Regulations, 2003 read with SEBI Act, 1992. The Company has filed application for settlement with SEBI and the adjudication
process arising of the SCN is pending.

On November 19, 2025, a communication has been received from the Serious Frauds Investigation Office ("SFIO") seeking certain
information. The Company has filed a Writ Petition before the BHC seeking disclosure of the order passed by the Ministry of
Corporate Affairs basis which information is sought from the Company by SFIO. In such proceedings, the BHC vide order dated
December 24, 2025 extended the time granted to the Company to submit complete details pursuant to the communication received
from SFIO and expressly restrained SFIO from taking any coercive action in the event of non-compliance. The matter is pending.
The requisite disclosures to the stock exchanges in accordance with Regulation 30 of the SEBI (LODR) Regulations, 2015 have
been intimated to the Stock Exchanges by the Company in this regard and pending final outcomes of these proceedings, and given
the current stage of the matters, no adjustment has been made in the standalone audited financial statement as on March 31,2026.

48. The Company in its Board Meeting dated October 1, 2024 had approved an Employees Stock Option Scheme (ESOS)
under the “Reliance Infrastructure Employee Stock Option Scheme, 2024”, which will be administered by the Nomination and
Remuneration Committee (NRC), designated as the Compensation Committee of the Company. The Scheme provides for grant
upto 2,60,00,000 stock options to eligible employee of the Company or group company(ies), its subsidiaries and its associates
(present and future, if any) across all cadres in accordance with the Securities and Exchange Board of India (Share Based
Employee Benefits and Sweat Equity) Regulations, 2021, as amended.

Pursuant to the above Scheme, the NRC at its meeting held on November 11,2025, approved the grant of 51,20,312 Employee
Stock Options (ESOPs) to eligible employees of the Company and its subsidiaries in accordance with the provisions of the SEBI
(Share Based Employee Benefits and Sweat Equity) Regulations, 2021..

In accordance with Ind AS 102,’ Share-based Payment’, the Company has recognized an expense of H 3.42 crore towards ESOP
during the year. The expense has been recognized over the vesting period based on the fair value of options determined on the
grant date and is included under Employee Benefits Expense, with a corresponding credit to Other Equity (“Employee Stock
Option Outstanding”).

Valuation of stock options

The fair value of stock options granted during the period has been measured using the Black-Scholes option pricing model
at the date of the grant. The Black-Scholes option pricing model includes assumptions regarding dividend yields, expected
volatility, expected terms and risk free interest rates. The key inputs and assumptions used are as follows:

Stock Price: The closing Equity price as per the information available on NSE one day prior to the date of grant.

Exercise Price: Exercise Price is the market price or face value or such other price as determined by the Remuneration
and Compensation Committee.

Volatility: The historical volatility over the expected life has been considered to calculate the fair value of options.

Time to Maturity: Time to Maturity / Expected Life of options is the period for which the Company expects the
options to be live.

Risk-free rate of return: The risk-free interest rate being considered for the calculation is the interest rate applicable for a
maturity equal to the expected life of the options based on the zero-coupon yield curve for Government Securities.

Expected dividend yield: Expected dividend yield has been calculated as dividend paid divided by market price as on
the date of grant.

(b) Defined Benefit Plan
Provident Fund

Eligible employees of the Company receive benefits from a provident fund, which is a defined benefit plan. Both, the eligible
employee and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the
covered employee's salary. The trust invests in specific designated instruments as permitted by Indian law. The remaining
portion is contributed to the government administered pension fund. The rate at which the annual interest is payable to the
beneficiaries by the trust is being administered by the Government of India. The Company has an obligation to make good
the shortfall, if any, between the return from the investments of the Trust and the notified interest rate. The Company has
made contribution to providend fund H 2.77 crore (March 31,2025 : H 2.02 crore).

Gratuity

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees as per the
Payment of Gratuity Act,1972. The plan provides for a lump-sum payment to vested employees at retirement, death while
in employment or on termination of employment of an amount equivalent to 15 salary drawn for each completed years of
service in line with the Payment of Grauity Act, 1972 or Company scheme whichever is beneficial. Vesting occurs upon
completion of five years of service. The Company makes annual contributions to gratuity funds established as trusts or

The above sensitivity analysis is performed by varying a single parameter while keeping all the other parameters unchanged

Sensitivity analysis fails to focus on the interrelationship between underlying parameters. Hence, the results may vary if two

or more variables are changed simultaneously.

The method used does not indicate anything about the likelihood of change in any parameter and the extent of

the change if any.

Risk Exposure:

Actuarial Risk: It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:

a) Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an
increase in Obligation at a rate that is higher than expected

b) Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than the
Gratuity Benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the
acceleration of cashflow will lead to an actuarial loss or gain depending on the relative values of the assumed salary
growth and discount rate.

c) Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption than the
Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested
as at the resignation date.

Investment Risk: The present value of the assets is independent of the future discount rate. This can result in wide
fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter¬
valuation period.

Liquidity Risk: Employees with high salaries and long durations or those higher in hierarchy, accumulate significant
level of benefits. If some of such employees resign/retire from the company there can be strain on the cashflows.

Market Risk: Market risk is a collective term for risks that are related to the changes and fluctuations of the financial
markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time
value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice
versa. This assumption depends on the yields on the corporate/government bonds and hence the valuation of liability
is exposed to fluctuations in the yields as at the valuation date.

Legislative Risk: Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to
change in the legislation / regulation. The government may amend the Payment of Gratuity Act thus requiring the
companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit
Obligation and the same will have to be recognized immediately in the year when any such amendment is effective.

51. During the previous year, the Company had repaid / settled nearly all its debt obligations payable to banks and financial institutions
including debenture holders. The Company remains confident in its ability to meet its balance obligations, from arbitral awards
and claims, monetization of assets and other sources. Accordingly, the Company continues to prepare its Standalone Financial
Statement on a ‘Going Concern’ basis.

52. Lease

a) The Company has entered into cancellable leasing agreement for office, residential and warehouse premises renewable
by mutual consent on mutually agreeable terms. The Company has accounted H 3.36 crore as short term lease rental for
the financial year ended March 31,2026 (H 3.47 crore for the financial year ended March 31,2025).

b) The Company’s leased assets consist of office premises. Leases of office premises have lease term of 9 years. The leases
include non-cancellable periods of 3 years and renewable option at the discretion of lessee. The effective interest rate for
lease liability is 12.35% per annum with maturity of 9 years.

(b) 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. The carrying amount of financial
assets and financial liabilities measured at amortised cost in the Financial Statements are a reasonable approximation
of their fair values since the Company does not anticipate that the carrying amounts would be significantly different
from the values that would eventually be received or settled. To provide an indication about the reliability of the inputs
used in determining fair value, the Company has classified its financial instruments into the three levels prescribed
under the accounting standard. An explanation of each level follows underneath the table.

There have been no transfers between Level 1 and Level 2 for the year ended March 31,2026 and March 31,2025.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes mutual funds
and equity shares that have a quoted price. The fair value of all equity instruments which are traded in the stock
exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market (for example over-the-counter
derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as
little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable,
the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in
level 3. This is the case for unlisted equity securities, economic rights, debentures and financial guarantee which are
included in level 3.

(c) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include

• the use of quoted market prices or dealer quotes for similar instruments

• the fair value of the remaining financial instruments is determined using discounted cash flow analysis / Earnings
/ EBITDA multiple method.

Investments in Mutual Fund carried at fair value are generally based on market price quotations. Investments in
equity shares of subsidiaries and economic rights included in Level 3 of the fair value hierarchy have been valued
primarily using the Discounted Cashflow Method, Comparable Company Method, Estimated recoverable value or
Net Assets Value method to arrive at their fair value. Financial Guarantee obligation have been valued using credit
default spread to arrive at their fair value. Fair values are determined in whole or in part, using a valuation model
based on assumptions that are neither supported by prices from observable current market transactions in the
same instrument nor are they based on available market data. The valuation requires management to make certain
assumption about the model inputs including forecast cash flows, discount rate and volatility. Cost of other unquoted
equity instruments has been considered as an appropriate estimate of fair value because of a wide range of possible
fair value measurements and cost represents the best estimate of fair value within that range.

Management uses its best judgement in estimating the fair value of its financial instruments. However, there are
inherent limitations in any estimation technique. Therefore, for substantially all financial instruments, the fair value
estimates presented above are not necessarily indicative of the amounts that the Company could have realised
or paid in sale transactions as of respective dates. As such, fair value of financial instruments subsequent to the
reporting dates may be different from the amounts reported at each reporting date.

(B) Financial Risk Management

The Company’s business activities expose it to a variety of financial risks, namely liquidity risk, market risks and credit
risk. The Company's senior management has overall responsibility for the establishment and oversight of the Company's
risk management framework. The Company has constituted a Risk Management Committee, which is responsible for
developing and monitoring the Company's risk management policies.

The Company’s risk management is carried out by the treasury department under policies approved by the board of directors.
Treasury Department identifies, evaluates and hedge financial risks in close cooperation the Company’s operating units.

(a) Credit Risk

The Company is exposed to credit risk, which is the risk that one party to a financial instrument will cause a financial
loss for the other party by failing to discharge an obligation. Financial instruments that are subject to credit risk and
concentration thereof principally consist of trade receivable, contract assets, loans and other receivable.

(i) Credit risk management

The Company has a policy of dealing only with credit worthy counter parties and obtaining sufficient collateral,
where appropriate as a means of mitigating the risk of financial loss from defaults. The Company has two types
of financial assets that are subject to expected credit loss model:

a) Trade receivables, retentions on contract and contract assets

b) Loans and other receivables

While cash and cash equivalents and other bank balances are subject to impairment requirements of Ind AS
109, the identified impairment on these assets is H Nil.

Trade receivables, retentions on contract and Contract Assets

Management makes the assessment of the credit risk on trade receivables and contract assets considering the
customer profile. Customers of the Company mainly consists of the government promoted entities and some
large private corporates. Considering the nature of business, each contract and its customer is evaluated for
the purpose of assessment of loss allowances. The reasons for loss allowances could be recovery of claims,

disputes with customer, customers ability to pay, delays in approval by government authorities, and expected
time to recover the amount. Management makes an assessment considering facts of each contract, past trends,
terms of the contract and accordingly considers the need for loss allowances, if any.

Other financial assets

Other financial assets are exposed to the risk of loss that may occur in future from the failure of counterparties
or issuers to make payments according to the terms of the contract. The maximum exposure to credit risk
for each class of financial assets is the carrying amount of that class of financial instruments presented in
the balance sheet.

(b) Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability
of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out
market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in
funding by maintaining availability under committed credit lines.

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

Further in view of the certain cash flow mismatches the the time bound monetisation of assets as well as favourable
and timely outcome of various claims will enable the Company to meet its obligation. The Company is confident that
such cash flows would enable it to service its debt, realise its assets and discharge its liabilities in the normal course
of its business.

(c) Market risk

(i) Foreign currency risk

The Company operates in a business that exposes it to foreign exchange risk arising from foreign currency
transactions, primarily with respect to the USD. Foreign exchange 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 objective of
the Company is to minimize the volatility of the INR cash flows of highly probable forecast transactions.

(ii) Cash flow and fair value interest rate risk

Interest rate risk is the risk that the fair value or the future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. In order to optimize Company’s position with regard to interest
income and interest expenses and manage the interest rate risk, treasury performs a comprehensive corporate
interest rate risk management by balancing the proportion of fixed rate and floating rate financial instrument in its
total portfolio. The Company’s fixed rate borrowings are carried at amortised cost. They are therefore not subject
to interest rate risk as defined in Ind AS 107.

(a) Interest rate risk exposure

The exposure of the Company’s borrowing to interest rate changes at the end of the reporting period
are as follows:

The Company does not have any borrowings at variable interest rate and hence, disclosure pertaining to
interest rate sensitivity is not applicable.

54. Capital Management

(a) The Company considers the following components of its Balance Sheet to be managed capital:

1. Total equity - Share Capital and Other reserves

2. Working capital.

(b) The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to
our shareholders. The capital structure of the Company is based on management’s judgement of the appropriate balance
of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk
and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying
assets. The Company’s aim to translate profitable growth to superior cash generation through efficient capital management.

The Company's policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain
investor, creditor, and market confidence and to sustain future development and growth of its business. The Company's
focus is on keeping strong total equity base to ensure independence, security, as well as a high financial flexibility for
potential future borrowings, if required, without impacting the risk profile of the Company. The Company will take appropriate
steps in order to maintain, or if necessary adjust, its capital structure.

a) Debt Service Coverage Ratio (In times): Decrease due to decriease in interest expenses on other financial
liability and provision.

b) Trade Receivables turnover ratio (In times): Increase due to allowance for expected credit loss on trade receivable.

c) Trade payables turnover ratio (In times): Increase due to increase in other expenses during the year compared to
previous year.

d) Return on Capital employed (in %): Decrease mainly due to increase in exceptional items.

56. M/S Chaturvedi & Shah LLP (C&S), Statutory Auditors of the Company, vide their letter dated January 23, 2026 intimated their
intention to resign as Statutory Auditors of the Company after completion of the statutory audit for the financial year ended
March 31, 2026 (FY 2025-26) and filed Form ADT- 4, under section 143(12) of the Companies Act, 2013. The said matter
was deliberated by the Audit Committee at its meeting held on January 31,2026 and it recorded that the reasons cited by the
Statutory Auditors, including filing of Form ADT- 4 were incorrect, invalid, illegal and not tenable in law, including under the
provisions of the Companies Act, 2013. The Audit Committee noted that C&S have been acting as the Statutory Auditors of the
Company for more than five years and, during which period, it has been represented by three different signing partners and
during the said tenure the auditors never raised any issues as regards suspected fraud. The requisite disclosures to the stock
exchanges in accordance with Regulation 30 of the SEBI (LODR) Regulations, 2015 have been duly made by the Company.

Additionally, on February 4, 2026, the Company has initiated disciplinary proceeding before the Institute of Chartered Accountants
India (ICAI) against C&S and its three signing partners for gross professional misconduct, including wrongful invocation of
section 143(12) and mechanical filing of Form ADT-4 and instituted a writ petition before the Bombay High Court on February 17,
2026. The matter is pending with ICAI and Bombay High Court.

57. Effective from November 21,2025, the Government of India has notified of four Labour Codes namely, 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 ('Labour Code'). Accordingly, the incremental impact of these changes, assessed by the Company, on
the basis of the information available, consistent with the guidance provided by the Institute of Chartered Accountants of India,
is not material and has been recognised in the standalone financial statement of the Company for year ended March 31,2026.
Once Central / State Rules are notified by the Government on all aspects of the Codes, the Company will evaluate additional
impact, if any, on the measurement of employee benefits and would provide appropriate accounting treatment.

58. The restated figures for the previous year ended March 31,2025 and April 01,2024 have been regrouped and rearranged to
make them comparable with those of current year. Figures in bracket indicate previous year’s figures. @ - represents figures less
than H 50,000 which have been shown at actual in brackets with @.

59. Pursuant to first proviso to sub-section (3) of section 129 of the Act, read with rule 5 of Companies (Accounts) Rules, 2014, the
Company has attached salient features of the financial statement of its subsidiaries, associates and joint-ventures in form AOC-1
with its Consolidated Financial Statements.