Notes to Accounts of Afcons Infrastructure Ltd.

Mar 31, 2025

Critical judgements in determining the lease term

In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension options (or periods after termination options)Â are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). For leases of LandÂ or Building and equipment, the following factors are normally the most relevant:

- Â Â Â If there are significant penalties to terminate (or not extend), the Company is typically reasonably certain to extendÂ (or not terminate);

- Â Â Â If any leasehold improvements are expected to have a significant remaining value, the Company is typically reasonablyÂ certain to extend (or not terminate);

- Â Â Â The Company also considers other factors including the costs and business disruption required to replace the leasedÂ asset;

- Â Â Â Most extension options in the leases have not been included in the lease liability, because the Company could replaceÂ the assets without significant cost or business disruption.

A member has a right to receive dividend as may be proposed by the board and approved at the annual general meeting. The Equity shares are not repayable except in the case of a buyback, reduction of capital or winding up in terms of theÂ provision of the Act. Every member of the Company holding equity shares has a right to attend the General Meeting of theÂ Company and has a right to speak and on a show of hands, has one vote if he is present in person and on a poll shall haveÂ the right to vote in proportion to his share of the paid-up capital of the Company.

The Board of Directors via Circular Resolution approved on 31^stÂ July, 2024 has identified Shapoorji Pallonji Mistry, Firoz Cyrus Mistry and Zahan Cyrus Mistry as additional promoters of the Company with effect from 31^stÂ July, 2024. None ofÂ the said additional promoters holds any shares of the Company as on 31^stÂ March, 2025.

NOTE-12.5 : RIGHTS, PREFERENCES AND RESTRICTIONS ATTACHED TO 0.01% NON CUMULATIVE AND NON PROFIT PARTICIPATORY CONVERTIBLE PREFERENCE SHARES:

(a) Â Â Â The Preference Shares issued were non- cumulative and non profit participating convertible Preference Shares whichÂ were carrying a fixed rate of dividend of 0.01% per annum to be paid in priority to the holders of any other class ofÂ shares.

(b) Â Â Â The terms of these Preference Shares were varied with consent of the Preference Shareholder and the special resolutionÂ was passed with requisite majority of the members of the Company vide Postal Ballot effective on 30^thÂ November, 2018Â whereby the preference shares shall be deemed to be converted into common equity shares of the Company at a priceÂ ofÂ 'Â 68.25 per equity share (consisting of par ofÂ 'Â 10 and a premium ofÂ 'Â 58.25) immediately, automatically and withoutÂ any further act of the parties in the event of conversion of the preference shares by Goswami Infratech Private Limited.

(c) Â Â Â Every member of the Company holding preference shares were having right to vote in the general meeting of theÂ Company on resolutions placed before the Company which directly affect the rights attached to this preference shares.

(d) Â Â Â On Mandatory conversion date i.e.13^thÂ January, 2024, pursuant to the resolution passed by the Stakeholders RelationshipÂ Committee of the Company on 13^thÂ January, 2024 and in terms of the conversion terms stated in 12.4 (b) above, the saidÂ Preference shares were converted into equity shares of the Company and the said Preference shareholder (i.e. FloreatÂ Investments Private Limited) was allotted 1,46,52,015 equity shares of ' 10 /- each against the conversion of 10,00,00,000Â Preference shares of ' 10/- each held by it. Accordingly, the Preference Shares held by Floreat Investments Private LimitedÂ stands extinguished. Resultantly, the equity shareholding of Floreat Investments Private Limited as on 31^stÂ March 2024Â stands increased from 1,30,15,929 equity shares to 2,76,67,944 equity shares of face value of ' 10/- each.

(a) Â Â Â The preference shares issued were entitled to fixed non-cumulative preference dividend at the fixed rate of 0.01%Â per annum which were be paid in priority to the holder of any other class of shares. According to the terms andÂ conditions, which were approved by the equity shareholders via passing special resolution on 17^thÂ July, 2020, theÂ preference shares had early conversion rights at any time on or after 31^stÂ July, 2020 ("Early conversion date") prior toÂ 13^thÂ January 2024 ("Mandatory conversion date").

(b) Â Â Â Every member of the Company holding preference shares has a right to vote in the general meeting of the CompanyÂ on resolutions placed before the Company which directly affect the rights attached to this preference shares, inÂ accordance with the provision of section 47 of Companies Act, 2023.

(c) Â Â Â The preference share and all equity shares issued on the conversion of the preference shares shall be freelyÂ transferable at the option of the holders of the preference shares. The Company confirms that the Board of DirectorsÂ of the Company has duly approved the issuance and the terms of the preference share, including the right of theÂ preference shareholder to freely transfer the preference shares and the equity shares issued on the conversion of theÂ preference shares and the Board of Directors of the Company shall not raise any objections under Article 37 of theÂ Articles to any such transfer.

(d) Â Â Â On return of capital on a liquidation or otherwise of the assets of the Company, the holder of preference sharesÂ were entitled, in priority to any payment to the holders of any other class of shares, to be repaid a sum equal to theÂ capital paid up or credited as paid up on the preference shares held by it and all arrears and accruals (if any) of theÂ preferential dividend calculated up to the date of the commencement of the winding-up (in case of winding-up) orÂ the return of capital (in any other case).The preference shares were not conferred any further right to participate inÂ the profits or assets of the Company except as mentioned above.

(e) Â Â Â The terms and conditions of compulsory convertible preference shares held by Goswami Infratech Private LimitedÂ (GIPL) were amended in 2022 by varying / deferring the Early Conversion date 'on or after 31^stÂ January 2023 from 'anyÂ date on or after 31^stÂ July 2020 via passing a special resolution. Accordingly the preference shares were carrying rightsÂ of automatically and mandatorily be converted into equity shares on 13^thÂ January, 2024 ("mandatory conversionÂ date") or any early date of conversion at the instruction of the Preference shareholder ("early conversion date").

(f) Â Â Â As per the terms and conditions, on mandatory conversion date or the early conversion date, as the case maybe, theÂ preference shares were to be converted into such number of equity shares of the Company constituting 74% of theÂ outstanding equity share capital and convertible preference shares of the Company calculated on a fully diluted basisÂ on the date of issue (i.e. 14^thÂ January, 2008) resulting into 24,65,40,258 equity shares of the Company. Such equityÂ shares of the Company shall at all times constitute at least 72% (seventy-two per cent) of the outstanding equityÂ shares of the Company on a fully diluted basis.

(g) Â Â Â During the year ended 31^stÂ March, 2024, on mandatory conversion date, pursuant to the resolution passed by theÂ Stakeholders Relationship Committee of the Company on 13^thÂ January, 2024 , the said preference shares wereÂ converted into equity shares of the Company and the said Preference shareholder (i.e.Goswami Infratech PrivateÂ Limited) were allotted 24,65,40,258 equity shares ofÂ 'Â 10/- each against the conversion of 25,00,00,000 preferenceÂ shares ofÂ 'Â 10/- each held by GIPL. Accordingly, the preference shares held by Goswami Infratech Private LimitedÂ stands extinguished. Resultantly, the equity shareholding of Goswami Infratech Private Limited as on 31^stÂ MarchÂ 2024 was 24,65,40,258 equity shares of face value ofÂ 'Â 10/- each.

NOTE-12.7 : RIGHTS, PREFERENCES AND RESTRICTIONS ATTACHED TO 0.01% FULLY AND COMPULSORILY CONVERTIBLE NON-CUMULATIVE, NON PARTICIPATORY PREFERENCE SHARES:

(a) Â Â Â The preference shares issued were entitled to fixed non-cumulative preference dividend at the fixed rate of 0.01%Â per annum which were be paid in priority to the holder of any other class of shares. According to the terms andÂ conditions, the preference shares had early conversion rights at any time on or after 14^thÂ February, 2024 ("EarlyÂ conversion Date") prior to 21^stÂ March, 2024 ("Mandatory Conversion Date").

(c) Â Â Â On return of capital on a liquidation or otherwise of the assets of the Company, the holder of preference sharesÂ were entitled, in priority to any payment to the holders of any other class of shares, to be repaid a sum equal to theÂ capital paid up or credited as paid up on the preference shares held by it and all arrears and accruals (if any) of theÂ preferential dividend calculated up to the date of the commencement of the winding-up (in case of winding-up) orÂ the return of capital (in any other case).The preference shares were not conferred any further right to participate inÂ the profits or assets of the Company except as mentioned above.

(d) Â Â Â As per the terms and conditions, on Mandatory Conversion Date or the Early Conversion Date( as the case may be) theÂ preference shares shall be converted into such number of equity shares of the Company at the price ofÂ 'Â 132 per equityÂ shares (consisting of par ofÂ 'Â 10 and a premium ofÂ 'Â 122 per share) provided that in case of any fraction arising onÂ conversion of preference shares into equity shares, such fraction equity shares shall be rounded off to the nearest number.

(e) Â Â Â Pursuant to the consent of the preference shareholder received vide their letter dated 29^thÂ December, 2023 and thereÂ other class preference shareholder on 1^stÂ January, 2024 and 2^ndÂ January, 2024 respectively , the Board of DirectorsÂ of the Company had pursuant to its resolutions taken at its meeting held on 5^thÂ January, 2024 initiated the action toÂ obtain shareholders approval to the variation of the terms of the preference shares held by the preference shareholderÂ (Shapoorji Pallonji and Company Private Limited) to provide for an option to the preference shareholders for exerciseÂ of right of an early conversion of the said preference shares on any day on or after 14^thÂ February, 2024 but prior to theÂ mandatory conversion date of 21^stÂ March, 2024. Accordingly, the requisite approval of the equity shareholder to theÂ said variation of the terms of the preference shares was accorded on 8^thÂ February, 2024 vide Postal Ballot Process.

(f) Â Â Â Shapoorji Pallonji and Company Private Limited vide its letter date 12^thÂ February, 2024 requested for early conversionÂ of the said preference shares on 14^thÂ February, 2024. Accordingly, pursuant to the resolution passed by the Board ofÂ Directors of the Company on 14^thÂ February, 2024, the said preference shares were converted into equity shares ofÂ the Company and the said Preference shareholder (i.e. Shapoorji Pallonji and Company Private Limited) was allottedÂ 75,75,758 equity shares ofÂ 'Â 10 /- each against the conversion of 10,00,00,000 preference shares ofÂ 'Â 10/- each heldÂ by it. Accordingly, the preference shares held by Shapoorji Pallonji and Company Private Limited stands extingushed.Â Resultantly, the equity shareholding of Shapoorji Pallonji and Company Private Limited as on 31^stÂ March, 2024 standsÂ increased from 4,91,05,652 equity shares to 5,66,81,410 equity shares of face value ofÂ 'Â 10/- each.

NOTE-12.9

For the period of Five years immediately preceding the date as at which the Balance Sheet is prepared:

i) Â Â Â Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment beingÂ received in cash: Nil

ii) Â Â Â Aggregate number and class of shares allotted as fully paid up by way of bonus shares: Nil

iii) Â Â Â Aggregate number and class of shares bought back: Nil

NOTE 12.10

The word company used in the Standalone Balance Sheet and Standalone Statement of Profit & Loss including the accompanying notes to accounts is defined as "Afcons Infrastructure Limited" including all of its branches and JointÂ Operations.

NOTE 12.11

The Board at its meeting held on 23^rdÂ May, 2025, has recommended a dividend ofÂ 'Â 2.50 per share on equity share ofÂ 'Â 10 each (25%) subject to approval of members of the Company at the forthcoming Annual General Meeting.

Nature and purpose of each reserve within other equity Capital reserve

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

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

Securities premium account

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

Contingency reserve

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

General reserve:

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

Foreign currency translation reserve:

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

Retained earning and dividend on equity shares:

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

Reserve for equity instrument measured through other comprehensive income

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

(iv)Â Secured by first charge by way of equitable mortgage on the immovable properties of the Company situated at Andheri, Mumbai and Delhi (mortgage during the year) on a pari passu basis. Companyâs stock of constructionÂ material, stores, WIR Trade Receivables is further secured under IOM (excluding current assets of High speed RailÂ project) and first charge on movable plant & machinery of the Company upto 50% of the fund based limits with otherÂ term lenders on pari passu basis and also by goods covered under letters of credit.

NOTE-20.3

(i) Â Â Â Security:

Secured by first charge by way of equitable mortgage on the immovable properties of the Company situated at Andheri, Mumbai and Delhi (mortgage during the year) on a pari passu basis. The Companyâs stock of constructionÂ material, stores, WIR Trade Receivables is further secured under indenture of mortgage (excluding current assets ofÂ High Speed Rail project) and first charge on movable plant & machinery of the Company upto 50% of the fund-basedÂ limits with other term lenders on a pari passu basis. Cash credit facility / working capital demand loan is furtherÂ secured by the Companyâs proportionate share of current assets in all the joint ventures both present and future.

(ii) Â Â Â Interest:

Cash credit facility and working capital demand loan from banks carry interest ranging from @ 9.09% to @ 10.65% per annum (As at 31^stÂ March, 2024 interest ranging from @ 8.15% to @ 10.30% per annum). Buyers Credit carryÂ interest ranging from @ 3.07% to @ 5.39% per annum (As at 31^stÂ March, 2024 interest ranging from @ 4.63% toÂ @ 6.30% per annum)

NOTE-30 : CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR) (' in Crore)
Particulars		As at 31^stÂ March, 2025	As at 31^stÂ March, 2024
(i) Contingent liabilities		Â	Â
(a)	Claims against the Company not acknowledged as debts (excluding claims where amounts are not ascertainable)	Â	Â
	i) Differences with sub-contractors / vendors in regard to rates and quantity of materials.	563.41	444.76
	ii) Royalty Claims*	483.64	483.64
	iii) Fine and restoration fees levied by Environmental Protection Agency, Government of Maldives for environmental damages	38.47	37.54
(b)	Claims against the joint operations not acknowledged as debts	149.35	148.14
(c)	Guarantees	Â	Â
Â	Bank guarantees given on behalf of subsidiaries and counter guaranteed by the Company	4.71	23.06
(d)	Sales tax and entry tax	Â	Â
Â	Represents demands raised by sales tax authorities in matters of: a) Â Â Â disallowance of labour and service charges, consumables etc. b) Â Â Â Tax on AS7 turnover c) Â Â Â Entry tax and, d) Â Â Â Interest and penalty etc. for which appeal is pending before variousÂ appellate authorities. The Company is confident that the cases will be successfully contested.	17.08	17.08
(e)	VAT	Â	Â
Â	Represents partial disallowance by West Bengal VAT Authorities for FY 2016-17. In matters of disallowance of subcontractor charges, labourÂ charges, PF contribution, architectural charges, cost of consumables,Â cost of establishment, etc. for which appeal is pending before higherÂ appellate authority. The entity is confident that the case will beÂ successfully contested.	0.46	0.46
(f)	Service tax	Â	Â
Â	Represents demand confirmed by the CESTAT / Asst. commissioner of service tax for a) disallowance of cenvat credit, since abatementÂ claimed by the Company, b) disallowance of general exemption ofÂ private transport terminals and c) taxability under âCommercial orÂ Industrial Construction Service", etc. The Company has appealed / in theÂ process of appeal against the said order with commissioner of serviceÂ tax Mumbai, CESTAT / High court and is confident that the cases willÂ be successfully contested. The Company has received the stay orderÂ for some case from the CESTAT. Amount disclosed does not includeÂ penalties in certain matters for which amount is unascertainable.	69.63	64.51
(g)	GST	Â	Â
Â	Represents demand confirmed by GST Authorities for various dispute in relation to differential tax rate of GST for works contract, GST onÂ turnover for adjustment of advance, on unbilled revenue, demand forÂ goods confiscated, ITC not paid by the supplier, etc. and Interest andÂ penalty for which appeal is pending before various GST authorities TheÂ Company is confident that the cases will be successfully contested.	67.48	98.57

(' in Crore)
Particulars		As at 31^stÂ March, 2025	As at 31^stÂ March, 2024
(h)	Income tax	Â	Â
Â	Demand raised by income tax department on account of disallowance of expenses and addition made in respect of receipt of income. TheÂ Company has obtained stay order from tax department. Company isÂ confident that the case will be successfully contested before concernedÂ appellate authorities.	7.80	43.49
Â	Note:Â In respect of items mentioned under paragraphs (a), (b), (d), (e), (f), (g) and (h) above, till the matters are finally decided, the financialÂ effect cannot be ascertained and future cashflows in respect of aboveÂ matters are determinable only on receipts of judgements / decisionsÂ pending at various forums / authorities.	Â	Â
(ii) Commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for		582.20	615.89
Other Commitments		Â	Â
The Company has given financial support letter for continuing operation to subsidiary - Afcons Construction Mideast LLC.		-	-

Notes:

* The Company has received a demand and a show cause notice amounting toÂ 'Â 239.00 Crore andÂ 'Â 244.64 Crore respectively with respect to liability on account of royalty payable on Murrum used in one of the projects. Subsequent toÂ the show cause notice, the Company has obtained a stay order on the same. Further, based on legal opinion, the CompanyÂ expects that the claim is highly unlikely to materialise.

The Company has implemented the decision given in the Supreme Court Judgement in case of "Vivekananda Vidyamandir And Others Vs The Regional Provident Fund Commissioner (II) West Bengal" and the related circular (Circular No.Â C-I/1 (33)2019/Vivekananda Vidya Mandir/284) dated 20^thÂ March, 2019 issued by the Employeesâ Provident FundÂ Organisation in relation to non-exclusion of certain allowances from the definition of "basic wages" of the relevantÂ employees for the purposes of determining contribution to provident fund under the Employeesâ Provident Funds &Â Miscellaneous Provisions Act, 1952 w.e.f. 1^stÂ April, 2019. Basis the assessment of the management, which is supported byÂ legal advice, the aforesaid matter is not likely to have significant impact in respect of earlier periods.

a. Defined contribution plan

(i) Â Â Â Provident fund

(ii) Â Â Â Superannuation fund

(iii) Â Â Â State defined contribution plans

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

The total expense recognised in statement of profit or loss ofÂ 'Â 70.40 Crore (for the year ended 31^stÂ March, 2024Â 'Â 64.30 Crore) represents contributions payable to these plans by the Company at rates specified in the rules of theÂ plans.

b. Defined benefit plans(i) Gratuity

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

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

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

Investment risk

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

Interest risk

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

Longevity risk

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

Salary risk

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

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

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

In respect of the plan, the most recent actuarial valuation of the present value of the defined benefit obligation were carried out as at 31^stÂ March, 2025 by an actuary. The present value of the defined benefit obligation, andÂ the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

The Company pays premium ofÂ 'Â 9.68 Crore (Previous yearÂ 'Â 13.23 Crore) to the group gratuity scheme of LIC and the fund is managed by LIC

(v) Â Â Â Sensitivity Analysis

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

1) Â Â Â If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease byÂ 'Â 6.00Â Crore (increase byÂ 'Â 6.80 Crore) (as at 31^stÂ March, 2024: decrease byÂ 'Â 6.82 Crore (increase byÂ 'Â 7.92 Crore)).

2) Â Â Â If the expected salary growth increases (decreases) by 1%, the defined benefit obligation would increase byÂ 'Â 6.65 Crore (decrease byÂ 'Â 5.98 Crore) (as at 31^stÂ March, 2024: decrease byÂ 'Â 7.78 Crore (increase byÂ 'Â 6.83Â Crore)).

3) Â Â Â If the employee turnover increases (decreases) by one year, the defined benefit obligation would decrease byÂ 'Â 0.78 Crore (increase byÂ 'Â 0.85 Crore) (as at 31^stÂ March, 2024: decrease byÂ 'Â 0.67 Crore (increase byÂ 'Â 0.73Â Crore)).

(vi) Â Â Â Sensitivity analysis method

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

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

The average duration of the benefit obligation at 31^stÂ March, 2025 is 8 years (as at 31^stÂ March, 2024: 12 years).

The Company expects to make a contribution ofÂ 'Â 18.69 Crore (as at 31^stÂ March, 2024:Â 'Â 12.00 Crore) to the defined benefit plans during the next financial year.

d. Compensated Absences

The liability for Compensated absences (non-funded) as at year end isÂ 'Â 61.58 Crore (as at 31^stÂ March, 2024Â 'Â 57.67 Crore) covers the Companyâs liability for sick and privilege leave and is presented as current liabilities, sinceÂ the Company does not have an unconditional right to defer the settlement of any of these obligations.

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

NOTE-33 : CORPORATE SOCIAL RESPONSIBILITY

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

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

During FY 2024-25 the Company was required to spendÂ 'Â 4.37 Crore toward CSR activities / projects. However, after adjusting the excess CSR spending ofÂ 'Â 0.63 Crore of the previous years, the CSR obligation of the Company for FY 202425 wasÂ 'Â 3.74 Crore. Accordingly, Company had incurred CSR expenditure ofÂ 'Â 2.84 Crore and the balance unspent CSRÂ amount ofÂ 'Â 0.90 Crore transferred to unspent CSR account.

During the previous year, CSR amount required to be spent by the Company as per section 135 of The Companies Act, 2013 read with Schedule VII thereof during the year i.e. 2% of the last 3 years preceding net profits which comes toÂ 'Â 1.66Â Crore. However, same was eligible for set-off against the accumulated credit of excess voluntary CSR spending ofÂ 'Â 2.12Â Crore in the preceding 3 financial years.

Information about major customers:

During the year ended 31^stÂ March, 2025, revenue ofÂ 'Â 1,293.36 Crore arising from a customer in Liberia (Viz. Arcelor Mittal Liberia Limited) contributes to more than 10% of the Companyâs revenue. (As at 31^stÂ March, 2024, no customer,Â individually, contributed 10% or more to the Companyâs revenue).

NOTE-36 : AFCONS GUNANUSA JOINT VENTURE (AGJV)

AGJV had submitted claims to ONGC, arising on account of cost overruns due to change orders, in terms of the provisions of the contract. The Joint venture has invoked arbitration in respect of the aforesaid change orders. Claims against changeÂ orders and counter claims by ONGC aggregating to approx.Â 'Â 400.00 Crore is currently being discussed in arbitration andÂ cross examination of Claimant's witness is being carried out in arbitration.

NOTE-37 : TRANSTONNELSTROY AFCONS JOINT VENTURE (TAJV)

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

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

Based on the assessment made, both the orders were not challenged by CMRL on the Merits of the Arbitral Award but on the alleged procedural lapses on part of the Tribunal (i.e., no opportunity provided to CMRL on account of two particularÂ documents sought by the Tribunal from TTA JV). Further, the Ld. Single Judge in its Order has also granted liberty to theÂ Parties to go back to the existing Tribunal to get opportunity on the two documents. Also, the Hon'ble Division bench afterÂ hearing prima facie case has sought consent of parties on remanding the matter to the same Tribunal. However, sinceÂ CMRL did not agree for consenting to the same and also the Hon'ble bench does not have special power to direct theÂ parties to go before the same Tribunal, the Hon'ble bench proceeded to hear the matter and pronounced the order.Â Arbitration proceedings related to claims for cost of extension of time granted in claim no. 1 and 2 and related cost i.e.Â Claim No. 3 and 3A along with EOT claimed beyond Arbitration Award and associated cost, forming part of Claim No 8Â have been kept on hold and shall be initiated based on outcome Civil Appeal of the SLP filed with Hon'ble Supreme Court.Â Disputes related to release of withheld amount, release of retained amount, refund of amount encashed against BankÂ Guarantees amounting toÂ 'Â 25.77 Crore (as at 31^stÂ March, 2024:Â 'Â 25.77 Crore) and issuance of final taking over certificateÂ (the "claim no. 8") were being heard before arbitration tribunal. Further, there are counter claims submitted by CMRLÂ amountingÂ 'Â 1,945.81 Crore. The counterclaims lodged by CMRL arose due to the alleged defective works in the tunnellingÂ i .e. excessive steps and lips in the Tunnel Rings. The Counter claims are mainly towards the contingencies that CMRLÂ may have to incur in future in the form of Rectification works, Loss of revenue and additional maintenance costs duringÂ the intended design life due to the said alleged defects in the tunnelling works. On 2^ndÂ August, 2024 and 16^thÂ August, 2024Â Arbitral Tribunal has passed unanimous award pertaining to the Project i.e. UAA 01 and UAA 05 respectively where ClaimÂ no. 8 - counter claim of CMRL pertaining to package UAA 01 and UAA 05 to the tune ofÂ 'Â 1,945.81 Crore. was rejected andÂ also confirmed the effective date for issuance of Taking over certificate and issuance of Performance certificate by CMRL.Â In the earlier years, Joint Venture had received two favourable arbitration awards, amountingÂ 'Â 106.64 Crore andÂ 'Â 14.67Â Crore in few of the other matters. The Client has challenged these arbitration awards before the Hon'ble High Court,Â Madras. Pending disposal of these matters in the court, client has, upon submission of the bank guarantee by the JointÂ Venture, deposited part of the award amount with the Joint Venture, pursuant to an interim stay order from Hon'ble HighÂ Court, Madras. The arbitration awards amounting toÂ 'Â 120.81 Crore (as at 31^stÂ March, 2024:Â 'Â 120.81 Crore) and interest

on arbitration award ofÂ 'Â 30.63 Crore (as at 31^stÂ March, 2024:Â 'Â 30.63 Crore) has been recognised as "Non-current Trade Receivables", "Other non-current financial assets - Interest on Trade Receivables as per Arbitration Awards" respectively,Â and the amount ofÂ 'Â 79.28 Crore (as at 31^stÂ March, 2024:Â 'Â 79.28 Crore) received against such award has been recognisedÂ as "Other Non-current Liabilities -Contract Liabilities- Advances from customers". During the current year single benchÂ of High court has passed judgment on 21^stÂ June, 2024 and 31^stÂ January, 2025, setting aside the Arbitration Award ofÂ 'Â 106.64 Crore andÂ 'Â 14.67 Crore respectively. TTA JV made an appeal to Division Bench High Court against the Order whichÂ is listed and posted for final hearing on 06^thÂ June 2025.

Based on the assessment, historical experience in similar circumstances and technical evaluation of the aforesaid matters related to claims and counter claims , carried out by Joint Ventureâs management, after considering the currentÂ facts and status of negotiation/amicable settlement with the client/ proceedings in arbitration, High Court and SupremeÂ Court as of date, which is supported by legal opinion, management of Joint Venture is of the view that the "amountÂ due from customer under construction contracts" recorded in the books of accounts is based on cost actually incurredÂ and so claimed but not duly compensated. Management of joint venture is confident of getting favourable order/ awardÂ and is of the opinion that amount ofÂ 'Â 659.87 Crore (as at 31^stÂ March, 2024:Â 'Â 659.87 Crore) recognised towards suchÂ variations/ claims in 'Amounts due from customers under construction contractsâ as non-current assets, an amount ofÂ 'Â 120.81 Crore (as at 31^stÂ March, 2024:Â 'Â 120.81 Crore) towards the arbitration award recognised as 'Non-current TradeÂ Receivablesâ, an amount ofÂ 'Â 30.63 Crore (as at 31^stÂ March, 2024:Â 'Â 30.63 Crore) interest on arbitration award as "OtherÂ non-current financial assets - Interest on Trade Receivables as per Arbitration Awards" and an amount ofÂ 'Â 25.77 CroreÂ (as at 31^stÂ March, 2024:Â 'Â 25.77 Crore) bank guarantee encashed by client as "Other financial assets- non-current: OtherÂ Receivables", is appropriate and the same is considered as good and fully recoverable. Joint Venture management doesÂ not anticipate any loss to be recognised or contingent liability to be disclosed at this stage. However, considering that theÂ negotiation, proceedings in arbitration, High Court and Supreme Court are ongoing, the duration and outcome is uncertain.

NOTE-38 : DAHEJ STANDBY JETTY PROJECT UNDERTAKING (DJPU)

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

During the earlier year, an unfavourable award was granted in Arbitration, towards claims of liquidated damages for delay in completion of works by Joint Venture forÂ 'Â 79.28 Crore (including interest ofÂ 'Â 20.45 Crore). Client has subsequentlyÂ encashed the bank guarantees given by a Joint Venturer Partner, Afcons Infrastructure Limited ofÂ 'Â 79.28 Crore andÂ recovered the award amount. The amount of encashed Bank Guarantee has been recorded by the Joint Venture as OtherÂ Receivables from customer (Other non-current assets) and Payable to JV Partner (non-current borrowings). Thereafter,Â the Joint Venture has filed petition at Honâble High Court, Delhi for setting aside the unfavourable award and also submittedÂ claims for additional cost incurred w.r.t extended stay and acceleration cost, considering that the delay is attributable toÂ the client and in terms of the contractual provisions. This petition is admitted by Honâble High Court, Delhi and hearings isÂ currently in process. The Honâble High Court Delhi on 22^ndÂ November 2022 directed client to submit an undertaking signedÂ by President (Finance) of client, to the effect that it shall restitute the entire amount in the event Joint Venture succeeds inÂ its challenge to the award. The next hearing is scheduled on 22^ndÂ July, 2025.

Based on the assessment, historical experience in similar circumstances and technical evaluation of the aforesaid matters related to claims, carried out by Joint Ventureâs management, after considering the current facts and status ofÂ proceedings in High Court as of date, which is supported by legal opinion, management of Joint Venture is of the viewÂ that the amount recoverable from the client ofÂ 'Â 79.28 Crore (as at 31^stÂ March, 2024 :Â 'Â 79.28 Crore) disclosed as 'OtherÂ Receivablesâ and the 'amount due from customer under construction contractâ ofÂ 'Â 11.10 Crore (as at 31^stÂ March, 2024:Â 'Â 11.10 Crore) is appropriate and no further provision for aforesaid claims and receivables is required to be made as theseÂ have been considered as good and fully recoverable by the Management. However, considering that the proceedings inÂ High Court are ongoing, the duration and outcome is uncertain.

(a) Â Â Â The Company has been legally advised that outstanding interest free advances aggregating toÂ 'Â 894.68 Crore (as atÂ 31^stÂ March, 2024'858.14 Crore) before elimination made towards financing the unincorporated joint operations doÂ not come under the purview of Section 186 of Companies Act, 2013 as the Company is in the business of constructingÂ and developing infrastructure facilities.

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

NOTE-40 : CHENAB BRIDGE PROJECT UNDERTAKING ("CBPU")

The Konkan Railway Corporation Limited (KRCL) issued a contract for the construction of a Steel Arch Bridge across the Chenab River on 24^thÂ August, 2004. The project has faced various delays due to revisions in the design basis note (DBN),Â changes to the arch span, and delays in finalising slope stabilisation and various specifications related to works. TheseÂ changes were primarily initiated by KRCL, which the management believes are the root causes of the delays and additionalÂ expenses incurred by the Company.

As a result of these delays and changes, the Company has raised claims for the period upto June 2013, in arbitration proceedings, seeking reimbursement for additional expenses incurred, including loss of productivity, extended stayÂ costs, categorisation of excavation works, change in alignment of the project. However, the majority of these claims wereÂ dismissed unfavourably by the Special Arbitral Tribunal. These unfavourable awards are currently under challenge in theÂ Honâble Bombay High Court.

Claims beyond July 2013 are currently being adjudicated by a Standing Arbitral Tribunal mutually appointed by both parties (the Company and KRCL). The costs arising from the extended duration of the project caused by the delaysÂ attributable to KRCL, which is one of the key claims under adjudication. Further, a key claim involves increased quantitiesÂ of structural steel due to changes in the design. In the process of negotiation with KRCL, a committee was appointed byÂ KRCL through the Railway Board has submitted recommendations that favour the Company. However, KRCL has declinedÂ to implement these recommendations, and as a result, this matter has been referred to the Standing Arbitral Tribunal forÂ further adjudication.

As of 31^stÂ March 2025, the Company has recorded an amount ofÂ 'Â 192.92 Crore (as at 31^stÂ March, 2024, '192.92 Crore) as "Amount due from customer under construction contract" in its books. This includes ' 115.00 Crore related to the increaseÂ in steel quantities due to design changes. This amount reflects costs that have been incurred by the Company but haveÂ not been compensated by KRCL. This amount is claimed by the Company based on costs actually incurred, and despiteÂ the ongoing arbitration and legal proceedings, the Company is confident of recovering the full amount.

The Companyâs management is optimistic about obtaining a favourable judgment in the ongoing arbitration proceedings, as well as the appeal in the Bombay High Court. This optimism is based on the historical experience in similar contractÂ disputes, legal opinion indicating a likely favourable outcome and the technical evaluation of the claims, which suggestsÂ that the claims are reasonable and likely to be upheld.

However, given that the arbitration and High Court proceedings are still ongoing, the duration and outcome remain uncertain. Therefore, the ultimate realisation of the amount due from KRCL is subject to consequences associated withÂ the arbitration and legal processes.

NOTE-41

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

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

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

Due to the various change orders, the Company has raised various claims towards additional expenses on account of change of scope, additional works, royalty claim etc. An amount ofÂ 'Â 221.96 Crore (as at 31^stÂ March, 2024'211.29 Crore)Â is outstanding towards unbilled receivables and disclosed under note no.8 "Contract assets". The matter is referred toÂ Arbitration. Considering the legal opinion obtained and facts of the matter, the Company is confident of winning the caseÂ and recovering the entire amount from Uttar Pradesh Expressways Industrial Development Authority.

' NOTE-43

(a) Â Â Â The Company has unbilled receivables towards various ongoing and completed projects disclosed under NoteÂ no. 8 'Contract assetsâ. This unbilled work also includes variations on account of cost overruns due to unforeseen

geological conditions, delays in handling over land, change in scope of work, etc. which are under discussions at various levels including customer, in arbitration, Dispute Adjudication Board etc. Based on the discussions and meritsÂ of the claims, the management is confident about the recovery of these pending variations with respect to unbilledÂ receivables disclosed under note no.8 "Contract assets".

(b) Â Â Â The Company has a total net receivable ofÂ 'Â 1,163.45 Crore (as at 31^stÂ March, 2024 :Â 'Â 1,455.03 Crore) (includingÂ interest on arbitration awardsÂ 'Â 303.41 Crore (as at 31^stÂ March, 2024 :Â 'Â 389.67 Crore)) which is a part of TradeÂ Receivables shown under note 5 towards arbitration awards which are won by the Company in past, these arbitrationÂ awards have been further challenged by the customers before the session court or higher courts of law. PendingÂ disposal of these matters in the courts, management has recognised the amount as per the arbitration award andÂ part payment has been received by management under Niti Aayog Scheme upon submission of a bank guaranteeÂ by the Company, which is disclosed as advances from customers in note no.17 '

Mar 31, 2024

1.B.12 Provisions and contingent liabilities

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

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

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

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

1.B.13 Financial instruments

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

Initial Recognition

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

1.B.14 Financial assets

Classification and subsequent measurement of financial assets 1.B.14.1 Classification of financial assets

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

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

â¢ those measured at amortised cost.

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

1.B.14.2 Subsequent measurement Debt instruments

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

Amortised cost:

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

Fair value through other comprehensive income

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

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

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

Fair value through profit or loss

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

Equity instruments

Investments in equity instruments at FVTPL

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

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

1.B.14.3 Impairment of financial assets

The Company applies the expected credit loss model for recognising impairment loss on financial assets measured at amortised cost, lease receivables, trade receivables, contract assets, other contractual rights to receive cash or other financial asset.

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

Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables and contract asset, the Company has used a practical expedient as permitted under Ind AS 109. This expected credit loss allowance is computed based on a provision matrix which takes into account historical credit loss experience and adjusted for forward-looking information. The Company assesses on a forward-looking basis the expected credit losses associated with its assets carried at amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk. Note 49.8 details how the group determines whether there has been a significant increase in credit risk.

1.B.14.4 Effective interest method

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

1.B.14.5 De-recognition of financial assets

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

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

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

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

Equity instruments

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

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

1.B.15.1 Classification and subsequent measurement

Financial liabilities are measured at amortised cost.

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

1.B.15.2 De-recognition of financial liabilities

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

1.B.15.3 Foreign exchange gains and losses

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

1.B.16 Derivative financial instruments

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

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

1.B.17 Leases:

The Company as lessee:

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

1) Lease Liabilities

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

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

2) Right-of-use assets

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

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

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

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

3) Short term leases and leases of low value assets

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

1.B.18 Earnings per share

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

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

1.B.19 Segment Reporting

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

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

1.B.20 Credit Risk

The Company assess on a forward-looking basis the expected credit losses associated with its assets measured at amortised cost which includes lease receivables, trade receivables, other contractual rights to receive cash etc. The impairment methodology applied depends on whether there has been a significant increase in the credit risk since initial recognition of these financial assets. For the evaluation, the Company considers historical credit loss experience and adjusted for forward-looking information. Note 49.80 details how the Company determines whether there has been a significant increase in credit risk.

1.B.21 Government grants, subsidies and export incentives

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

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

C. Critical estimates and judgements

a) Revenue recognition

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

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

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

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

â¢ Determination of stage of completion;

â¢ Estimation of project completion date;

â¢ Provisions for foreseeable losses; and

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

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

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

b) Taxation

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

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

c) Contingencies

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

d) Useful lives of property, plant and equipment

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

e) Impairment of trade receivables and contract assets

The Company has recognised trade receivables with a carrying value of '' 3,452.94 Crores (as at 31^st March, 2023: '' 2,696.74 Crores). The recoverability of trade receivables is regularly reviewed in the light of the available economic information specific to each receivable and specific provisions are recognised for balances considered to be irrecoverable. The impairment provisions for trade receivables are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on Company''s past history, credit risk, existing market conditions as well as forward looking estimates at the end of each reporting year. The expected credit loss allowance for trade receivables is made based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward-looking information. Where the actual cash shortfalls vary from those estimated, these could impact the level of profit or loss recognised by the Company. The same policies are followed for contract assets.

f) Retirement benefit obligations

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

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

g) Arbitration claims

The forecast profit on contracts includes key judgements over the expected recovery of costs arising from the following: variations to the contract requested by the customer, compensation events, and claims made by the Company for delays or other additional costs for which the customer is liable. These claims could result in disputes that get settled through an arbitration process wherein the outcome of these awards including the timing and the amount (including interest thereon) requires a reasonable degree of estimation. The inclusion of these amounts requires estimation of their recoverability and could impact the level of profit or loss recognized by the Company.

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

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

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

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

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

a) Its assets, including its share of any assets held jointly;

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

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

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

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

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

D. Recent Indian Accounting Standards (Ind AS)

Ministry of Company Affairs notifies new standards or amendments to the existing standards. There is no such notification which would have been effective from 1^st April, 2024.

12.5. Rights, preferences and restrictions attached to 0.01% Non Cumulative and non profit participatory convertible preference shares:

(a) The Preference Shares issued were non- cumulative and non profit participating convertible Preference Shares which were carrying a fixed rate of dividend of 0.01% per annum to be paid in priority to the holders of any other class of shares.

(b) The terms of these Preference Shares were varied with consent of the Preference Shareholder and the special resolution was passed with requisite majority of the members of the Company vide Postal Ballot effective on 30^th November, 2018 whereby the preference shares shall be deemed to be converted into common equity shares of the Company at a price of '' 68.25/- per equity share (consisting of par of '' 10/- and a premium of '' 58.25/-) immediately, automatically and without any further act of the parties in the event of conversion of the preference shares by Goswami Infratech Private Limited.

(c) Every member of the Company holding preference shares were having right to vote in the general meeting of the Company on resolutions placed before the Company which directly affect the rights attached to this preference shares.

(d) On Mandatory conversion date i.e. 13^th January 2024, pursuant to the resolution passed by the Stakeholders Relationship Committee of the Company on 13^th January 2024 and in terms of the conversion terms stated in 12.4 (b) above, the said Preference shares were converted into equity shares of the Company and the said Preference shareholder (i.e. Floreat Investments Private Limited) was allotted 1,46,52,015 equity shares of '' 10/- each against the conversion of 10,00,00,000 Preference shares of '' 10/- each held by it. Accordingly, the Preference Shares held by Floreat Investments Private Limited stands extinguished. Resultantly, the equity shareholding of Floreat Investments Private Limited as on 31^st March, 2024 stands increased from 1,30,15,929 equity shares to 2,76,67,944 equity shares of face value of '' 10/- each.

(e) The Board of Directors of the Company at its meeting held on 14^th June, 2024 has recommended for approval of the members at the ensuing Annual General Meeting declaration of dividend @ 0.01% for the financial year 2023-24 on the preference shares held by it for the proportionate period of FY 2023-24 (i.e. from 01^st April 2023 until the date of conversion of preference shares into equity shares on 13^th January, 2024).

12.6. Rights, preferences and restrictions attached to 0.01% fully and compulsorily convertible non-cumulative, non participatory

preference shares:

(a) The preference shares issued were entitled to fixed non-cumulative preference dividend at the fixed rate of 0.01% per annum which were be paid in priority to the holder of any other class of shares. According to the terms and conditions, which were approved by the equity shareholders via passing special resolution on 17^th July, 2020, the preference shares had early conversion rights at any time on or after 31^st July, 2020 (âEarly conversion dateâ) prior to 13^th January, 2024 (âMandatory conversion dateâ).

(b) Every member of the Company holding preference shares has a right to vote in the general meeting of the Company on resolutions placed before the Company which directly affect the rights attached to this preference shares, in accordance with the provision of section 47 of Companies Act, 2023.

(c) The preference share and all equity shares issued on the conversion of the preference shares shall be freely transferable at the option of the holders of the preference shares. The Company confirms that the Board of Directors of the Company has duly approved the issuance and the terms of the preference share, including the right of the preference share holder to freely transfer the preference shares and the equity shares issued on the conversion of the preference shares and the Board of Directors of the Company shall not raise any objections under Article 37 of the Articles to any such transfer.

(d) On return of capital on a liquidation or otherwise of the assets of the Company, the holder of preference shares were entitled, in priority to any payment to the holders of any other class of shares, to be repaid a sum equal to the capital paid up or credited as paid up on the preference shares held by it and all arrears and accruals (if any) of the preferential dividend calculated up to the date of the commencement of the winding-up (in case of winding-up) or the return of capital (in any other case).The preference shares were not conferred any further right to participate in the profits or assets of the Company except as mentioned above.

(e) The terms and conditions of compulsory convertible preference shares held by Goswami Infratech Private Limited (GIPL) were amended in 2022 by varying / deferring the Early Conversion date âon or after 31^st January, 2023'' from âany date on or after 31 ^st July, 2020'' via passing a special resolution. Accordingly the preference shares were carrying rights of automatically and mandatorily be converted into equity shares on 13^th January, 2024 (âmandatory conversion dateâ) or any early date of conversion at the instruction of the Preference shareholder (âearly conversion dateâ).

(f) As per the terms and conditions, on mandatory conversion date or the early conversion date, as the case maybe, the preference shares were to be converted into such number of equity shares of the Company constituting 74% of the outstanding equity share capital and convertible preference shares of the Company calculated on a fully diluted basis on the date of issue (i.e. 14^th January, 2008) resulting into 24,65,40,258 equity shares of the Company. Such equity shares of the Company shall at all times constitute atleast 72% (seventy-two per cent) of the outstanding equity shares of the Company on a fully diluted basis.

(g) During the year, on mandatory conversion date, pursuant to the resolution passed by the Stakeholders Relationship Committee of the Company on 13^th January 2024 , the said preference shares were converted into equity shares of the Company and the said Preference shareholder (i.e. Goswami Infratech Private Limited) were allotted 24,65,40,258 equity shares of '' 10/- each against the conversion of 25,00,00,000 preference shares of '' 10/- each held by GIPL. Accordingly, the preference shares held by Goswami Infratech Private Limited stands extinguished. Resultantly, the equity shareholding of Goswami Infratech Private Limited as on 31^st March, 2024 was 24,65,40,258 equity shares of face value of '' 10/- each.

(h) The Board of Directors of the Company at its meeting held on 14^th June, 2024 has recommended for approval of the members at the ensuing Annual General Meeting declaration of dividend @ 0.01% for the financial year 2023-24 on the preference shares held by it for the proportionate period of FY 2023-24 (i.e. from 01^st April 2023 until the date of conversion of preference shares into equity shares on 13^th January, 2024).

12.7. Rights, preferences and restrictions attached to 0.01% fully and compulsorily convertible non-cumulative, non participatory

preference shares:

(a) The preference shares issued were entitled to fixed non-cumulative preference dividend at the fixed rate of 0.01% per annum which were be paid in priority to the holder of any other class of shares. According to the terms and conditions, the preference shares had early conversion rights at any time on or after 14^th February, 2024 (âEarly conversion Dateâ) prior to 21^st March, 2024 (âMandatory conversion dateâ).

(c) On return of capital on a liquidation or otherwise of the assets of the Company, the holder of preference shares were entitled, in priority to any payment to the holders of any other class of shares, to be repaid a sum equal to the capital paid up or credited as paid up on the preference shares held by it and all arrears and accruals (if any) of the preferential dividend calculated up to the date of the commencement of the winding-up (in case of winding-up) or the return of capital (in any other case).The preference shares were not conferred any further right to participate in the profits or assets of the Company except as mentioned above.

(d) As per the terms and conditions, on Mandatory Conversion Date or the Early Conversion Date (as the case may be) the preference shares shall be converted into such number of equity shares of the Company at the price of '' 132/- per equity shares (consisting of par of '' 10/- and a premium of '' 122/- per share) provided that in case of any fraction arising on conversion of preference shares into equity shares, such fraction equity shares shall be rounded off to the nearest number.

(e) Pursuant to the consent of the preference shareholder received vide their letter dated 29^th December 2023 and there other class preference shareholder on 1^st January 2024 and 2^nd January, 2024 respectively , the Board of Directors of the Company had pursuant to it resolution taken at its meeting held on 5^th January, 2024 initiated the action to obtain shareholders approval to the variation of the terms of the preference shares held by the preference shareholder (Shapoorji Pallonji and Company Private Limited) to provide for an option to the preference shareholders for exercise of right of an early conversion of the said preference shares on any day on or after 14^th February 2024 but prior to the mandatory conversion date of 21^st March, 2024. Accordingly, the requisite approval of the equity shareholder to the said variation of the terms of the preference shares was accorded on 8^th February, 2024 vide Postal Ballot Process.

(f) Shapoorji Pallonji and Company Private Limited vide its letter date 12^th February, 2024 requested for early conversion of the said preference shares on 14^th February, 2024. Accordingly, pursuant to the resolution passed by the Board of Directors of the Company on 14^th February, 2024, the said preference shares were converted into equity shares of the Company and the said Preference shareholder (i.e.Shapoorji Pallonji and Company Private Limited) was allotted 75,75,758 equity shares of '' 10/-each against the conversion of 10,00,00,000 preference shares of '' 10/- each held by it. Accordingly, the preference shares held by Shapoorji Pallonji and Company Private Limited stands extingushed. Resultantly, the equity shareholding of Shapoorji Pallonji and Company Private Limited as on 31^st March, 2024 stands increased from 4,91,05,652 equity shares to 5,66,81,410 equity shares of face value of '' 10/- each.

(g) The Board of Directors of the Company at its meeting held on 14^th June, 2024 has recommended for approval of the members at the ensuing Annual General Meeting declaration of dividend @ 0.01% for the financial year 2023-24 on the preference shares held by it for the proportionate period of FY 2023-24 (i.e. from 01^st April, 2023 until the date of conversion of preference shares into equity shares on 14^th February, 2024).

Note No 12.10.

For the period of Five years immediately preceding the date as at which the Balance Sheet is prepared:

i) Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash: Nil

ii) Aggregate number and class of shares allotted as fully paid up by way of bonus shares: Nil

iii) Aggregate number and class of shares bought back: Nil

Note No 12.11.

The word company used in the Balance Sheet and Statement of Profit & Loss including the accompanying notes to accounts is defined as âAfcons Infrastructure Limitedâ including all of its branches and Jointly Controlled Operations.

Note No 12.12.

The Board of Directors at its meeting held on 14^th June, 2024 has recommended to the members for approval, at the ensuing Annual General Meeting of the Company, declaration of equity dividend of 25% (i.e. '' 2.50/- per equity share of '' 10/- each) to the equity shareholders of the Company for the financial year 2023-2024. Goswami Infratech Private Limited, Floreat Investments Private Limited and Shapoorji Pallonji & Company Private Limited (erstwhile holders of Preference shares to whom equity shares have been allotted on 13^th January, 2014 and 14^th February, 2014 respectively) shall be paid proportionate equity dividend on the equity shares (allotted against the convertible preference shares) from the date of the allotment of equity shares until the end of the financial year ending 31^st March, 2024.

Nature and purpose of each reserve within other equity Capital reserve

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

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

Securities premium account

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

Contingency reserve

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

General reserve:

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

Foreign currency translation reserve:

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

Retained earning and dividend on equity shares:

Reserve for equity instrument measured through other comprehensive income

a. Defined contribution plan

(i) Provident fund

(ii) Superannuation fund

(iii) State defined contribution plans

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

The total expense recognised in statement of profit or loss of '' 64.30 Crores (for the year ended 31^st March, 2023: '' 58.14 Crores) represents contributions payable to these plans by the Company at rates specified in the rules of the plans.

b. Defined benefit plans (i) Gratuity

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

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

Investment risk

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

Interest risk

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

Longevity risk

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

Salary risk

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

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

In respect of the plan, the most recent actuarial valuation of the present value of the defined benefit obligation were carried out as at 31^st March, 2024 by an actuary. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

(v) Sensitivity Analysis

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

1) If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by '' 6.82 Crores (increase by '' 7.92 Crores) (as at 31^st March, 2023: decrease by '' 5.43 Crores (increase by '' 6.30 Crores)).

2) If the expected salary growth increases (decreases) by 1%, the defined benefit obligation would increase by '' 7.78 Crores (decrease by '' 6.83 Crores) (as at 31^st March, 2023: increase by '' 6.21 Crores (decrease by '' 5.45 Crores)).

3) If the employee turnover increases (decreases) by one year, the defined benefit obligation would decrease by '' 0.67 Crores (increase by '' 0.73 Crores) (as at 31^st March, 2023: decrease by '' 0.41 Crores (increase by '' 0.45 Crores)).

(vi) Sensitivity analysis method

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the Projected Unit Credit Method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

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

The average duration of the benefit obligation at 31^st March, 2024 is 12 years (as at 31^st March, 2023: 12 years).

The Company expects to make a contribution of '' 12.00 Crores (as at 31^st March, 2023: '' 10.00 Crores) to the defined benefit plans during the next financial year.

Note 36. Afcons Gunanusa Joint Venture (AGJV)

AGJV had submitted claims to ONGC, arising on account of cost overruns due to change orders, in terms of the provisions of the contract. The Joint venture has invoked arbitration in respect of the aforesaid change orders. Claims against change orders and counter claims by ONGC aggregating to approx '' 400.00 Crores is currently being discussed in arbitration and cross examination of Claimant''s witness is being carried out in arbitration.

Note 37. Transtonnelstroy Afcons Joint Venture (TAJV)

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

During Financial Year 2021-22, Arbitration Panel issued a unanimous award in favour of Joint Venture granting extension of time in terms of number of days (the âclaim no. 1 and 2â). The Arbitral Awards on Extension of Time matters (Claim No. 1&2) of Contract UAA-01 & UAA-05 were challenged by CMRL before the Ld. Single Judge of Madras High Court and succeeded. The order of the Ld. Single Judge was then challenged by TTA JV before the Hon''ble Division Bench and the same was dismissed vide order dated 01.02.2023. The said order of the Hon''ble Division Bench was challenged before the Hon''ble Supreme Court by TTA JV and the SLP was admitted and registered as Civil Appeal. The matter is listed for hearing on 12^th July, 2024.

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

Arbitration proceedings related to claims for cost of extension of time granted in claim no. 1 and 2 and related cost i.e. Claim No. 3 and 3A along with EOT claimed beyond Arbitration Award and associated cost, forming part of Claim No 8 have been kept on hold and shall be initiated based on outcome Civil Appeal of the SLP filed with Hon''ble Supreme Court.

Disputes related to release of withheld amount, release of retained amount, refund of amount encashed against Bank Guarantees and issuance of final taking over certificate (the âclaim no. 8â) are currently being heard in arbitration award.

In the earlier years, Joint Venture had received favourable arbitration awards in few of the other matters. The Client has challenged these arbitration awards before the Hon''ble High Court, Madras. Pending disposal of these matters in the court, client has, upon submission of the bank guarantee by the Joint Venture, deposited part of the award amount with the Joint Venture, pursuant to an interim stay order from Hon''ble High Court, Madras. The hearing for this is currently in process. The arbitration award amounting to '' 120.81 Crores ('' 120.81 Crores as on 31^st March, 2023) and interest on arbitration award of '' 30.63 Crores ('' 30.63 Crores as on 31^st March, 2023) has been recognized as âNon-current Trade Receivablesâ and âOther non-current financial assets - Interest on Trade Receivables as per Arbitration Awardsâ, respectively, and the amount of '' 79.28 Crores ('' 79.28 Crores as on 31^st March, 2023) received against such award has been recognized as âOther Non-current Liabilities -Contract Liabilities- Advances from customersâ.

Further, there are counter claims submitted by CMRL amounting '' 1945.81 Crores ('' 1945.81 Crores as on 31^st March, 2023). The counterclaims lodged by CMRL arose due to the alleged defective works in the tunnelling i.e. excessive steps and lips in the Tunnel Rings. The Counter claims are mainly towards the contingencies that CMRL may have to incur in future in the form of Rectification works, Loss of revenue and additional maintenance costs during the intended design life due to the said alleged defects in the tunnelling works. In addition, the Counterclaim was not substantiated by any supporting documents either on effect or on Cost. TTA JV has submitted an expert report to the Arbitral Tribunal wherein it states that the excessive stepping and lipping has no impact on either structural stability or on waterproofing systems. The counterclaims of the CMRL are made as an afterthought, which is evident from the fact that the same was filed by CMRL only in 2022, after issuance of substantial taking over certificate for UAA 01 in December 2019 and UAA 05 in June 2018, and both the packages became commercially operative in 2017 (UAA 05) and in 2019 (UAA 01).

Based on the assessment, historical experience in similar circumstances and technical evaluation of the aforesaid matters related to claims and counter claims , carried out by Joint Venture''s management, after considering the current status of negotiation/amicable settlement with the client/ proceedings in arbitration, High Court and Supreme Court as of date, which is supported by external legal opinion, management of Joint Venture is of the view that the âamount due from customer under construction contractsâ recorded in the books of accounts is based on cost actually incurred and so claimed but not duly compensated. Management of joint venture is confident of getting favourable order/ award and is of that opinion that amount of '' 659.87 Crores ('' 659.87 Crores as on 31^st March, 2023) recognized towards such variations/ claims in âAmounts due from customers under construction contracts'' as Non-Current assets, an amount of '' 120.81 Crores ('' 120.81 Crores as on 31^st March, 2023) towards the arbitration award recognized as âNon-current Trade Receivables'' and an amount of '' 30.63 Crores ('' 30.63 Crores as on 31^st March, 2023) interest on arbitration award as âOther non-current financial assets - Interest on Trade Receivables as per Arbitration Awardsâ, is appropriate and the same is considered as good and fully recoverable. Joint Venture management does not anticipate any loss to be recognized or contingent liability to be disclosed at this stage. However, considering that the negotiations, proceedings in arbitration, High Court and Supreme Court are ongoing, the duration and outcome is uncertain.

Note 38. DAHEJ STANDBY JETTY PROJECT UNDERTAKING (DJPU):

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

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

Based on the assessment, historical experience in similar circumstances and technical evaluation of the aforesaid matters related to claims, carried out by Joint Venture''s management, after considering the current facts and status of proceedings in High Court as of date, which is supported by legal opinion, management of Joint Venture is of the view that the amount recoverable from the client of '' 79.28 Crores disclosed as âOther Receivables'' and the âamount due from customer under construction contract'' of '' 11.10 Crores as on 31^st March, 2024 is appropriate and no further provision for aforesaid claims and receivables is required to be made as these have been considered as good and fully recoverable by the Management. However, considering that the proceedings in High Court are ongoing, the duration and outcome is uncertain.

Note 39.

(a) The Company has been legally advised that outstanding interest free advances aggregating to '' 858.14 Crores (As at 31^st March, 2023''852.50 Crores) before el

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