Notes to Accounts of G R Infraprojects Ltd.

Mar 31, 2025

r. Provisions, contingent liabilities and contingent assets
Provisions

Provision are recognised when the Company had a
present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and reliable estimate can be made of
the amount of the obligation. Provisions are measure
based on management''s estimate required to settle
the obligation at the balance sheet date. The expenses
relating to a provision is presented in the statement of
profit and loss net of any reimbursement. If the effect
of the time value of money is material, provisions
are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the
liability. When discounting is used, the increase in the
provision due to the passage of time is recognized as
a finance cost.

Provisions are reviewed at each balance sheet date
and adjusted to reflect the current best estimate. If
it is no longer probable that the outflow of resources
would be required to settle the obligation, the provision
is reversed in the statement of profit and loss account.

The Company recognises a provision for onerous
contract when the unavoidable costs of meeting the
obligations under a contract exceed the economic
benefits to be received in accordance with Ind AS
37. Such expected loss on a contract is recognised
immediately in the Standalone Statement of
Profit and Loss

Contingent liability

Contingent liability is a possible obligation that
arise from past events and whose existence will be
confirmed only by occurrence or non-occurrence
of one or more uncertain future events not wholly
within the control of the entity or present obligation
that arises from past events but is not recognized
because it is not probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation or the amount of the obligation cannot
be measured with sufficient reliability. The Company
does not recognize a contingent liability but discloses
it existence and other required disclosures in notes to
the financial statements, unless the possibility of any
outflow in settlement is remote.

Contingent assets

Contingent assets is a possible asset that arise from
past events and whose existence will be confirmed
only by occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the entity. The Company does not recognize the
contingent asset in its standalone financial statement
since this may result in the recognition of income that
may never be realized. Where an inflow of economic
benefits is probable, the Company discloses a brief
description of the nature of contingent assets at
the end of the reporting period. However, when
the realization of income is virtually certain, then
the related asset is not contingent assets and the
Company recognizes such assets.

Provision, contingent liability and contingent assets
are reviewed at each reporting date.

>. Earnings per share

periods presented is adjusted for events, such as
bonus shares, other than the conversion of potential
equity shares that have changed the number of
equity shares outstanding, without a corresponding
change in resources.

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

t. Operating segments

Operating segments are reported in a manner
consistent with the internal reporting provided to the
Chief Operating Decision Maker (CODM) of Company.
The CODM is responsible for allocating resources
and assessing performance of the operating
segments of Company.

Segment results that are reported to the CODM
include items directly attributable to a segment as well
as those that can be allocated on a reasonable basis.
Segment capital expenditure is the total cost incurred
during the period to acquire property and equipment
and intangible assets.

u. Cash and cash equivalents

v. Dividend

The Company recognizes a liability to pay dividend
to the equity shareholders when the distribution is
authorized and the distribution is no longer at the
discretion of the Company. A corresponding amount is
recognized directly in equity. As per the corporate laws
in india, a distribution is authorized when it is approved
by the shareholders.

w. Exception item

Exceptional items are generally non-recurring items
of income and expense within profit or loss from
ordinary activities, which are of such size, nature or
incidence that their disclosure is relevant to explain the
performance of the Company for the year.

x. Events after the reporting period

If the Company receives information after the
reporting period, but prior to the date of approved
for issue, about conditions that existed at the end
of the reporting period, it will assess whether the

information affects the amounts that it recognises
in its standalone financial statements. The Company
will adjust the amounts recognized in its standalone
financial statements to reflect any adjusting events
after the reporting period and update the disclosures
that relate to those conditions in light of the new
information. For non-adjusting event, the company will
not change the amounts recognized in its standalone
financial statements, but will disclose the nature of the
non-adjusting event and an estimate of its financial
effect, or a statement that such an estimate cannot be
made, if applicable.

2.3 Significant accounting judgements, estimates and
assumption

The preparation of the standalone financial statements
requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities.
Uncertainty about these assumptions and estimates could
result in outcomes that require a material adjustment
to the carrying amount of assets or liabilities affected in
future periods.

Judgements

In the process of applying the Company''s accounting
policies, management has made the following judgements,
which have the most significant effect on the amounts
recognised in the standalone financial statements:

Revenue from contract with customers

Revenue from construction contracts involves significant
degree of judgements and estimation such as identification
of contractual obligations, measurement and recognition
of contract assets, determination of variable consideration,
change of scope and determination of onerous contract
which include estimation of contract costs. Accordingly,
the company has applied appropriate judgement and
estimate to determine the amount and timing of revenue.
In case of variable consideration, the company recognise
such consideration upon acceptance of the corresponding
variable consideration by the customer and claims under
arbitration/disputes are accounted as income based
on final award.

The Company reassesses judgements and estimates on
periodic basis and makes appropriate revisions accordingly.

Significant influence over InvIT

The Company hold 43.56% in the Indus Infra Trust (formerly
known as Bharat Highways InvIT) (the "InvITâ). The Sponsor
of InvIT is holding 15% in the InvIT. The management has
applied its judgement in terms of its evaluation relationship
between the Company and InvIT''s sponsor. Accordingly,

the InvIT is not considered as common control and the
Company does not exercise control over InvIT in accordance
with Ind AS 110. Considering the nature of relationship, the
management has concluded that the Company exercises
significant influence and investment in InvIT considered
as its associate.

Estimates and assumptions

The key assumptions concerning the future and other key
sources of estimation uncertainty at the reporting date, that
have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the next
financial year, are described below. The Company based
its assumptions and estimates on parameters available
when the Standalone financial statements were prepared.
Existing circumstances and assumptions about future
developments, however, may change due to market changes
or circumstances arising that are beyond the control of the
Company. Such changes are reflected in the assumptions
when they occur.

Fair value measurement of financial instruments

In estimating the fair value of financial assets and financial
liabilities, the Company uses market observable data to the
extent available. Where such Level 1 inputs are not available,
the Company establishes appropriate valuation techniques
including the Discounted Cash Flows (DCF) model and
inputs to the model. The inputs to these models are taken
from observable markets where possible, but where this is
not feasible, a degree of judgment is required in establishing
fair values. Judgments include considerations of inputs
such as liquidity risk, credit risk and volatility. Changes in
assumptions about these factors could affect the reported
fair value of financial instruments.

Impairment of Non-Financial Assets (including
subsidiaries and associate)

Impairment exists when the carrying value of an asset or
cash generating unit exceeds its recoverable amount, which
is the higher of its fair value less costs of disposal and its
value in use. The fair value less costs of disposal calculation
is based on available data for similar assets or observable
market prices less incremental costs for disposing of the
asset. The value in use calculation is based on a DCF model.
The cash flows are derived from the Business Projections
and do not include restructuring activities that the Company
is not yet committed to or significant future investments
that will enhance the asset''s performance of the CGU being
tested. The recoverable amount is sensitive to the discount
rate used for the DCF model as well as the expected future
cash-inflows and the growth rate used for extrapolation
purposes. Further, the management has not considered any
claim or awards which receivable from various authorities in
the impairment assessment of subsidiaries.

Provision for expected credit losses of trade receivables
and contract assets

The company uses a provision matrix to calculate ECLs
for trade receivables and contract assets. The company
exercise judgement to determine provision matrix such as
the Company''s past history, existing condition and forwardÂ¬
looking estimates at the end of each reporting year of
counter party''s credit worthiness.

Share based payment

Estimating fair value for share-based payment transactions
requires determination of the most appropriate valuation
model, which depends on the terms and conditions of the
grant. This estimate also requires determination of the
most appropriate inputs to the valuation model including
the expected life of the share option, volatility and dividend
yield and making assumptions about them. For the
measurement of the fair value of equity-settled transactions
with employees at the grant date, the company uses a
binomial model.

Useful life of Property, Plant and Equipment

Determination of the estimated useful life of property,
plant and equipment and the assessment as to which
components of the cost may be capitalized. Useful life of
these assets is based on the life prescribed in Schedule II to
the Companies Act, 2013 or based on technical estimates,
taking into account the Company''s historical experience
with similar assets, nature of the asset, estimated usage,
expected residual values and operating conditions of the
asset. Management reviews its estimate of the useful
lives of depreciable at each reporting date, based on the
expected utility of the assets. The depreciation for future
periods is revised if there are significant changes from
previous estimates.

Defined benefit plans (gratuity benefits) and accumulated
leaves

The cost of defined benefit gratuity plan and accumulated
leaves are determined using actuarial valuations. An
actuarial valuation involves making various assumptions
that may differ from actual developments in the future.
These include the determination of the discount rate, future
salary increases and mortality rates. Due to the complexities
involved in the valuation and its long-term nature, a defined
benefit obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at each
reporting date. The parameter most subject to change is
the discount rate. In determining the appropriate discount
rate for plans, the management considers the interest rates
of government bonds in currencies consistent with the
currencies of the post-employment benefit obligation. The
mortality rate is based on publicly available mortality tables.
Those mortality tables tend to change only at interval in

response to demographic changes. Future salary increases
and gratuity increases are based on expected future
inflation rates.

Taxes

Uncertainties exist with respect to the interpretation of
complex tax regulations, changes in tax laws, and the
amount and timing of future taxable income. Given the wide
range of business relationships and the long-term nature and
complexity of existing contractual agreements, differences
arising between the actual results and the assumptions
made, or future changes to such assumptions, could
necessitate future adjustments to tax income and expense
already recorded. The Company establishes provisions,
based on reasonable estimates.

Leases - Estimating the Incremental Borrowing Rate

The Company cannot readily determine the interest rate
implicit in the lease, therefore, it uses its incremental
borrowing rate (IBR) to measure lease liabilities. The IBR
is the rate that the Company have to pay to borrow over a
similar term, and with a similar security, the funds necessary
to obtain an asset of similar value to the right-to-use asset
in a similar economic environment. The IBR therefore
reflects what the Company ''would have to pay'', which
require estimation when no observable rates are available
or when they need to be adjusted to reflect the terms and
conditions of the lease. The Company estimates the IBR
using observable inputs when available and is required to
make certain entity / lease transaction specific estimates.

Provisions and Contingencies

The Company has ongoing litigation with various regulatory
authorities. Where an outflow of funds is believed to be
probable and a reliable estimate of the outcome of the disputes
can be made based on management''s assessment of specific
circumstances of each dispute and relevant external advice,
management provides for its best estimate of the liability. Such
accruals are by nature complex estimation uncertainty.

The Company reviews contracts with customer periodically
to assess provisions to be made for onerous contract by
estimating future costs and quantities.

3. Changes in accounting policies and disclosures

3.1. New Standards, Interpretations and Amendments
adopted by the Company

The accounting policies adopted in the preparation of
the standalone financial statements are consistent
except for amendments to the existing Indian Accounting
Standards (Ind AS).

The Company applied for the first-time certain standards
and amendments, which are effective for annual periods
beginning on or after 1 April 2024. The Company has not
early adopted any standard, interpretation or amendment
that has been issued but is not yet effective.

(i) Ind AS 117 Insurance Contracts

The Ministry of corporate Affairs (MCA) notified the
Ind AS 117, Insurance Contracts, vide notification
dated 12 August 2024, under the Companies (Indian
Accounting Standards) Amendment Rules, 2024,
which is effective from annual reporting periods
beginning on or after 1 April 2024.

Ind AS 117 Insurance Contracts is a comprehensive
new accounting standard for insurance contracts
covering recognition and measurement, presentation
and disclosure. Ind AS 117 replaces Ind AS 104
Insurance Contracts. Ind AS 117 applies to all types of
insurance contracts, regardless of the type of entities
that issue them as well as to certain guarantees and
financial instruments with discretionary participation
features; a few scope exceptions will apply.

The application of Ind AS 117 had no impact on the
Company''s standalone financial statements as the
Company has not entered any contracts in the nature
of insurance contracts covered under Ind AS 117.

3.2. Standards notified but not yet effective

There are no new standards that are notified, but not yet
effective, upto the date of issuance of the Company''s
standalone financial statements.

a) Includes equity component of H 659.23 lakhs recognized on fair valuation of Non - cumulative redeemable preference
instruments of subsidiary company recognized as deemed investment.

b) As on 31 March 2024, actual number of pledged shares was 5,100, however, subsequent to year end, the company has
pledged additional shares of 45,84,900 to make the percentage of pledged of shares to 51% as per the requirement of
term loan facilities availed by the respective subsidiaries. Accordingly, the company had disclosed total shares pledged of
45,90,000 as at 31 March 2024.

c) The company has pledged its investment in equity shares of subsidiaries, in favour of lenders for term loan facilities availed
by the respective subsidiary companies.

d) During the year, the Company acquired 100% equity shares in Tumkur-II REZ Power Transmission Limited for total
consideration of H 672.13 lakhs (H 5 Lakhs as equity and H 667.13 lakhs as loan) as per the share purchase agreement entered
with REC Power Development and Consultancy Limited, dated 3rd September 2024 pursuant to bid condition, considering
that the Company has been identified selected bidder vide letter of intent dated August 12, 2024 for the project "Transmission
scheme for integration of Tumkur-II REZ in Karnataka through tariff based competitive bidding process". This has been
accordingly accounted in these standalone financial statements.

e) During the year, the Company acquired 100% equity shares in Bijapur REZ Transmission Limited for total consideration of
H 1,140.59 lakhs (H1 Lakh as equity and H 1,139.59 lakhs as loan) as per the share purchase agreement entered with REC Power
Development and Consultancy Limited, dated 16 January 2025 pursuant to bid condition, considering that the Company
has been identified selected bidder vide letter of intent dated December 12, 2024 for the project "Transmission scheme
for integration of Bijapur REZ in Karnataka through tariff based competitive bidding process". This has been accordingly
accounted in these standalone financial statements.

a) The company has granted interest bearing loan to its subsidiaries. The fund has been advanced to its subsidiaries for
business purpose to the subsidiaries company. Repayment of such loan is as per the terms of Loan agreement.

b) For terms and conditions relating to loan to related parties (refer note 40).

c) Since all loans given by the company are unsecured and considered good, the bifurcation of loans in other categories as
required to be classified as per schedule III of the Companies Act, 2013 viz. Loans Receivables considered good - Secured,
Loans Receivables which have significant increase in Credit Risk; and Loans Receivables - credit impaired considered as not
applicable to the company and hence not disclosed above.

d) There are no Expected Credit Loss (ECL) provision on the considered good loan. Therefore relevant ECL disclosure considered
as not applicable.

e) There is no amount due from director, other officer of the company or firm in which any director is a partner or private
companies in which any director is a director or member at any time during reporting period except loan to wholly owned
subsidiaries where director is director (refer note 40).

f) The company is engaged in business of providing infrastructure facilities and accordingly, the provision of section 186(4) of
the Companies Act, 2013 are not applicable and accordingly disclosure is not given.

g) The company has not granted loans which are either repayable on demand or are without specifying terms of repayment.
Hence, the disclosure as specified in schedule III is not given in the standalone financial statements.

iii) Retained earnings

Retained earnings represents the profit that the company earn till date, which includes re-measurement gain/(loss) of
defined benefit plans, net of tax and can be distributed by the Company as dividends in accordance with provision of the
Companies Act, 2013.

iv) Equity instruments through OCI

The company has elected to recognise changes in fair value of certain investment in equity securities in other comprehensive
income. These changes are accumulated within the equity instruments through other comprehensive income within equity.
The company transfers amount from this reserve to retained earnings when relevant securities are derecognised.

v) Share based payment reserve

The share based payment reserve is used to recognise the grant date fair value of options issued to employees under
Employee stock option plan.

vi) During the year, the Board of Directors has approved in its meeting held on March 7, 2025 for the payment of interim dividend
of H 12.50 per equity share. The said amount has been paid during the year.

(ii) During the year ended March 31, 2024, the Company sold its 100% stake in its seven subsidiaries to Indus Infra Trust
(formerly known as Bharat Highways InvIT) ("the InvITâ) on February 29, 2024. The Company received 13,75,30,405 units
with issue price of H 100 per unit as consideration against above sale of shares and 5,54,08,300 units with issue price of
H 100 per unit towards assignment of loan receivable from above subsidiaries. The InvIT has carried out fair valuation of
above subsidiaries by independent valuer using inputs generally used by market participants in similar transactions resulting
in fair value of H 194,093 lakhs. The Company has received units worth of H 137,530.41 lakhs as consideration for sale. This
has resulted in difference of H 56,562.60 lakhs mainly on account of (a) difference in Weighed Average Cost of Capital on
account of different cost of equity (including debt-equity ratio) (b) InvIT Issue expenses, and (c) Net present value of InvIT
related expenses (including fees payable to investment manager) amounting to H 30,175.20 lakhs, H 5,899.30 lakhs and
H 2,0488.10 lakhs, respectively. Basis the above, the company recorded net gain on sale of investment of H 137,196.35 lakhs
which was disclosed as exceptional item.

(iii) During the year, the Company sold its 100% stake in its wholly owned subsidiary namely GR Aligarh Kanpur Highway Private
Limited ("GRAKHPL'') to Indus Infra Trust on September 16, 2024 for sale consideration of H 9,860.90 lakhs and received
H 24,085.61 lakhs for assignment of loan receivable from GRAKHPL and the resultant gain of H 3,560.90 lakhs has been
disclosed as an exceptional item in these standalone financial statements.

(iv) During the year, the Company sold its 100% stake in its wholly owned subsidiary namely GR Galgalia Bahadurganj Highway
Private Limited ("GRGBHPE) to Indus Infra Trust on March 27, 2025 for sale consideration of H 4,636.84 lakhs and received
H 17,921.17 lakhs for assignment of loan receivable from GRGBHPL and the resultant gain of H 3,736.84 lakhs has been
disclosed as an exceptional item in these standalone financial statements.

(v) During the year, Indus Infra Trust (formerly known as Bharat Highways InvIT) ("the InvITâ) claimed sum of H 4,940.60 lakhs for
loss incurred by one of its wholly owned subsidiary i.e. Varanasi Sangam Expressway Private Limited ("VSEPL'') as a result of
change in completion cost by Authority retrospectively, which affected all past and future payments of annuity, interest on
annuity and O&M. The said loss has been covered under indemnity provided by the Company to the InvIT under share purchase
agreement dated February 20, 2024. Accordingly, the Company has compensated for this loss and therefore recorded such
expenses through profit and loss account which is disclosed under exceptional item in the standalone financial statement.

33 Leases

Company as a lessee :

The Company has lease contracts for various items of land, building, plant and machinery, vehicles and other equipment used in its
operations. Leases of land generally have lease terms between 1 to 99 years, while Building have lease term between 1 to 9 years. Plant
and machinery, vehicles and other equipment generally have a short term leases. The Company''s obligation under its leases are secured
by the lessor''s title to the leased assets. Generally, the Company is restricted from assigning and subleasing the leased assets. The
Company has certain leases term of twelve months or less or cancellable or with low value. The Company applies the ''short term lease''
and ''low value lease'' recognition exemption for the lease. The lease payments associated with these leases are recognized as an expense.

The lease arrangements have extension/ renewal / termination options exercisable by either parties which may make up
assessment of lease term uncertain while determining the lease term, all facts and circumstances that creates an economic
incentive to exercise an extension option, or not exercise a termination option considered.

B. Defined Benefits Plans:

The Company operates a defined benefit plan (the gratuity plan) covering eligible employees, which provides a lump sum payment
to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective
employee''s salary and tenure of employment. The scheme is funded with the HDFC Life Insurance Company Limited, SBI life
Insurance Company Limited, ICICI Prudential Life Insurance and Life Insurance Corporation of India (LIC) in form of a Group
Gratuity Policy. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed
five years of services is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and
salary at retirement age.

ix. Asset Liability Matching Strategies

The Company has purchased insurance policy, which is basically a year-on-year cash accumulation plan in which the interest
rate is declared on yearly basis and is guaranteed for a period of one year. The insurance Company, as part of the policy
rules, makes payment of all gratuity outgoes happening during the year (subject to sufficiency of funds under the policy). The
policy, thus, mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared
to the duration of liabilities. Thus, the Company is exposed to movement in interest rate (in particular, the significant fall in
interest rates, which should result in a increase in liability without corresponding increase in the asset).

x. Effect of Plan on Entity''s Future Cash Flows

a) Funding arrangements and Funding Policy

The Company has purchased an insurance policy to provide for payment of gratuity to the employees. Every year, the
insurance Company carries out a funding valuation based on the latest employee data provided by the Company. Any
deficit in the assets arising as a result of such valuation is funded by the Company.

xii. The average expected future duration of the defined benefit plan obligation at the end of the reporting period is 5 years
(31 March 2024: 4 years).

C. Other long-term employee benefits

The compensated absences expenses charged for the year ended March 31,2025 is H 101.20 lakhs (reduced for the year ended
March 31,2024 is H 56.80 lakhs.) based on actuarial basis which is recognised in the standalone statement of profit and loss.

36 Share based payment

Employees Stock Option Scheme - 2021

The Shareholders at the Annual General Meeting held on September 27, 2021 has passed the special resolution and approved the
Employee Stock Option Scheme titled ''G R Infraprojects Limited Employees Stock Option Scheme - 2021''(ESOP 2021 Plan). The
ESOP 2021 Plan is the primary arrangement under which plan to provide incentives to employees who are in the employment of
the Company, its subsidiaries or associate company or group company, including the eligible Directors of the Company, at the
time the grant is made under the Plan. Under this Plan, the exercise price for Options shall not be less than the Nominal value and
shall not be more than fair market value (FMV) of an equity share of the company at the time of grant of option as determined by
the nomination and remuneration committee from time to time after complying the condition as mentioned in the Securities and
Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.

The maximum number of Options that may be granted pursuant to this ESOP 2021 Plan shall not exceed 9,66,890 Options which
shall be convertible into equal number of shares.

Nomination and Remuneration committee in their meeting dated August 10, 2023 has granted 3,13,196 employee stock options
(ESOPs) to its eligible employees under the ESOP 2021 Plan. The Employee stock option has been granted on August 10, 2023
and 25% of the grant would vest at the end of the first year i.e 2024, 25%of the grant would vest at the end of the second year, i.e

2025, 25%of the grant would vest at the end of the third year i.e, 2026, and 25% of the grant would vest at the end of the forth year,
i.e. 2027, with a vesting condition that the employee is in continuous employment with the Company till the date of vesting. The
exercise period would be 3 years from the date of respective vesting.

The options will lapse if the employment is terminated prior to vesting. Even after the options are vested, the expired options may
be forefeited if the employee is terminated to gross misconduct

These options are equity settled and are accounted for in accordance with the requirement applying to equity settled transactions.

The fair value of these options can be determined using the Black- Scholes model which takes into account the exercise price, the
term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield
and the risk free interest rate for the term of the option.

37 Segment Reporting

As permitted by paragraph 4 of Ind AS 108, "Operating Segments", notified under section 133 of the Companies Act, 2013, read
together with the relevant rules issued thereunder, if a single financial report contains both consolidated financial statements
and the standalone financial statements of the parents, segment information need to be presented only on the basis of the
consolidated financial statements. Thus disclosures regarding ''Operating segment'' under Ind AS 108 is presented in Consolidated
Financial Statements. The company operates only in India, hence no separate geographical segment is disclosed.

iii The projects under subsidiary companies has been funded through various credit facility agreements with banks. Against the
said facilities availed by the subsidiary companies from the lenders, the Company has executed agreements with respective
lenders whereby the Company has committed to hold minimum shareholding and pledge of its holding in the respective
subsidiary companies. The Company has also agreed with lender of subsidiaries company for non-disposal undertaking
of 21% apart from shares pledged (refer note 5) in (i) Nagaur Mukundgarh Highways Private Limited, (ii) GR Amritsar
Bathinda Highway Private Limited, (iii) GR Ludhiana Rupnagar Highway Private Limited, (iv) GR Bandikui Jaipur Highway
Private Limited, (v) GR Govindpur Rajura Highway Private Limited, (vi) GR Madanapalli Pileru Highway Private Limited, (vii)
GR Ujjain Badnawar Highway Private Limited, (viii) GR Venkatpur Thallasenkesa Highway Private Limited, (ix) GR Belgaum
Raichur (Package-5) Highway Private Limited , (x) GR Belgaum Raichur (Package-6) Highway Private Limited, (xi) GR Hasapur
Badadal Highway Private Limited, (xii) Pachora Power Transmission Limited, and (xiii) Rajgarh Transmission Limited.

iv In accordance with the Share Purchase Agreement ("SPAâ) entered into between the Company and Indus Infra Trust (InvIT), the
Company has provided certain indemnities in connection with the sale of certain subsidiaries. Under the terms of the SPA, the
Company has agreed to indemnify InvIT against specified losses that may arise due to breach of representations or warranties
made by the Company, pre-acquisition tax or regulatory liabilities and other specific matters identified and agreed upon in the SPA.

As at March 31, 2025, no claims have been made or are expected to be made under the indemnity clause. Accordingly, no
provision has been recognized in the financial statements considering the possibility of an outflow of resources embodying
economic benefits is considered remote.

H. Terms & Condition with Related Parties

i) The Company has entered into contracts with related parties for the providing various services, including sub-contracting
for EPC works, operations and maintenance of road infrastructure and shared services in an arm''s length transaction and in
the ordinary course of business. The Company mutually negotiates and agrees the price with the related parties based on
assessments carried out by an independent third party / lender''s expert considering the nature of the services. Such services
generally include payment terms as per payment milestone mentioned in the agreement and any balance outstanding related
to service is unsecured and interest free.

ii) The Company has entered into contracts with related parties for the receipts of various services, including sub-contracting
service, lease arrangement and purchase of materials in an arm''s length transaction and in the ordinary course of business.
The Company mutually negotiates and agrees the price and payment terms with the related parties by benchmarking against
comparable market transactions. Such services generally include payment terms of 30 to 90 days from the date of invoice
and any balance outstanding related to service is unsecured and interest free.

iii) Short term employee benefits amounts disclosed in the above table are the amounts recognised as an expense during the
financial year related to key managerial personnel. The amounts do not include expense, if any, recognised toward postÂ¬
employment benefits and other long-term benefits of key managerial personnel. Such expenses are measured based on an
actuarial valuation done for the Company as a whole. Hence, amounts attributable to KMPs are not separately determinable.

iv) The loans granted to subsidiaries for their business purpose. The loan has been utilised by subsidiaries for the purpose it was
obtained. The loan is unsecured and carries interest rate of 10.50%p.a. (31 March 2024: 10.50% p.a.)

v) The Company has invested in equity shares (including perpetual debt) of its subsidiaries company to finance its business
operation. The investment has been utilized by the subsidiaries for the purpose it was obtained. Subsidiaries has only one
class of equity shares having par value of INR 10 per share. Each holder of equity shares is entitled to one vote per share.
Subsidiaries declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of subsidiaries, the holders
of equity shares will be entitled to receive its remaining assets, after distribution of all preferential amounts. Refer note 5
regarding details of Equity Shares of the subsidiaries held by the Company. Further, the unsecured perpetual debts issued
with redemption only at the option of the subsidiaries and carry zero coupon rate.

vi) The Company has taken fund and non-fund based financing facility from lenders for the purpose of finance its operation. The
facility has been utilized by the company for the purpose it was obtained. In addition to other securities, the related parties
has given a guarantee to the bank against loan obligation of the Company. As per the Guarantee arrangement, the related
parties will be required to make specified payments to reimburse the bank for the loss incurs if the Company fails to make
payment when due in accordance with the facility arrangement.

vii) The Company has not provided any other commitment to the related party as at 31 March 2025 and 31 March 2024.

viii) The company has granted 21,700 option to key managerial personal on 10 August 2023 under ''G R Infraprojects Limited
employee stock option scheme 2021'' with exercise price of H 1,000 per share which will expire on February 2029. Accordingly,
The company recognised expenses of H 44.85 lakhs (31 March 2024 H 49.44 lakhs) towards employee stock options granted
to key managerial personnel. The same has not been considered as managerial remuneration of current year as defined
under section 2(78) of the companies Act, 2013 as the option have not been exercised.

ix) The company has pledged its investment in equity shares of subsidiaries of H 9,267.31 lakhs (31 March 2024 : H 12,479.29
lakhs) in favour of the lender for term loan facilities availed by the respective subsidiaries companies.

â¢ Inputs included in Level 3 of Fair Value Hierarchy have been valued using acceptable valuation techniques such as Net Asset
Value and/or Discounted Cash Flow Method.

Note: All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy
described as above, based on the lowest level input that is significant to the fair value measurement as a whole.

The fair values of the financial assets and financial liabilities included in the level 2 category above has been determined in
accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs
being the discount rate that reflects the credit risk of counterparties.

46 Financial risk management objectives and policies

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s board of directors have overall responsibility for
establishment and oversees the Company''s risk management framework. All derivative activities for risk management purposes
are carried out by finance team which has appropriate skills, experience and supervision. It is the Company''s policy that no trading
in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each
of these risks, which are summarised below.

A. Market risk

Market risk is the risk that the fair value of future cash flow of financial instrument will fluctuate because of changes in market
prices. Market risk comprises three types of risk: interest rates risk, currency risk and other price risk, such as equity prices
risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, debt and equity
investments and derivative financial instruments.

The sensitivity analyses in the following sections relate to the position as at 31 March 2025 and 31 March 2024.

The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of
the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant and on the basis of hedge
designations in place at 31 March 2025. The analysis excludes the impact of movements in market variables on the carrying values
of gratuity and other post-retirement obligations and provisions.

The following assumptions have been made in calculating the sensitivity analyses:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on
the financial assets and financial liabilities held at 31 March 2025 and 31 March 2024.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company is exposed to interest risk of changes in market interest rates relate primarily to the Company''s
long-term debt obligations with floating interest rates. While most of long-term borrowings from debenture holders are on fixed
rate basis, certain borrowings consist of floating rate obligations linked to the applicable benchmark rates, which may typically
be adjusted at certain intervals in accordance with prevailing interest rates. As at 31 March 2025, approximately 79% of the
Company''s borrowings are at fixed rate (31 March 2024: 74%). Increases in interest rates would increase interest expenses relating
to outstanding floating rate borrowings and increase the cost of new debt. In addition, an increase in interest rates may adversely
affect ability to service long-term debt and to finance development of new projects, all of which in turn may adversely affect results
of operations. The Company seeks to mitigate such risk by maintaining an adequate proportion of floating and fixed interest
rate borrowings.

Commodity Price Risk

The Company requires materials for construction, operation and maintenance of the projects, such as cement, bitumen, steel and
other construction materials. The Company has hedged its commodity risk in respect of aggregates for production of aggregates.
The Company is able to manage its exposure to price increases in project materials through bulk purchases and better negotiations.
Further, the company has arrangement with its customers to charge price escalation which mitigate any increase in price risk.
Hence, the sensitivity analysis is not required.

Equity price risk

The Company''s exposure to price risk in the investment in mutual funds and equity shares arises from investments held by the
Company and classified in the balance sheet as fair value through profit or loss including OCI (refer note 5). The fair value of these
instruments is marked to active market. The Company manages the equity price risk through diversification and by placing limits
on individual and total equity instruments. The Company''s Board of Directors reviews and approves all equity investment decisions.
The investments in mutual funds are designated as FVTPL while investment in equity shares are designated as FVOCI.

B. Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The Company is exposed to credit risk primarily trade receivables, contract assets and other financial assets
including deposits with banks. The Company''s exposure and credit ratings of its counterparties are continuously monitored and
the aggregate value of transactions is reasonably spread amongst the counterparties. The maximum exposure to credit risk at the
reporting date is the carrying value of each class of financial assets disclosed in note 43.

Trade receivable and contract assets

The Company''s exposure to customer credit risk is influenced mainly by the individual characteristics of each customer. However,
management also considers the factors that may influence the credit risk of its customer base. Ageing has been disclosed in note 11.
The Company''s customer profile includes public sector enterprises, state owned companies, group companies and corporates
customers. General payment terms include mobilisation advance, monthly progress payments with a credit period ranging from 30
to 90 days. Further, trade receivables include retention money receivable from the customers on expiry of the defect liability period.
However, the Company has an option to get the refund of the above receivables if bank guarantee is provided. The Company has
a detailed review mechanism of customer receivables at various levels within organisation to ensure proper attention and focus
for realisation. Credit risk on trade receivables and contract assets is limited as the customers of the Company mainly consists of
the government promoted entities having a strong credit worthiness. The provision matrix takes into account available external and
internal credit risk factors such as company''s historical experience for customers.

The information about movement of impairment allowance due to the credit risk exposure is given in note 11.

The significant change in the balance of trade receivables and contract assets are disclosed in note 49.

Concentration of credit risk

At 31 March 2025, the Company had eighteen customers (31 March 2024: eighteen customers) that accounted for approximately
85% (31 March 2024: 85%) of all the outstanding receivables and contract asset.

Financial instruments and bank deposits

This comprises mainly of deposits with banks, investments in mutual funds and other intercompany receivables. The Company''s
maximum exposure to credit risk for the components of the balance sheet at 31 March 2025 and 31 March 2024 is the carrying
amounts as illustrated in note 43.

C. Liquidity risk

Liquidity risk is the risk that the Company may encounter difficulty in meeting its present and future obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity
is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and
stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation. The Company invest
in liquid mutual funds and deposit with bank to meet the immediate obligations.

47 Capital management

For the purpose of the Company''s capital management, capital includes paid-up equity capital and all other equity reserves
attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to ensure that
it maintains a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of
the business and maximise shareholder value.

The Company manages its capital structure and makes adjustments in the light of changes in economic conditions and the
requirements of the financial covenants. Breaches in meeting the financial covenants would permit the lenders to immediately call
loans and borrowings. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders,
return capital to shareholders or issue new shares. The Company monitors capital using Debt-Equity ratio, which is net debt divided
by total equity. The Company''s policy is to keep the net debt to equity ratio below 3. Net debt consist of interest bearing borrowings,
interest accrued thereon less cash and cash equivalents. Equity includes equity attributes to the equity shareholders.

D. Performance obligation

i) Sales of goods :

Performance obligation is satisfied upon delivery of goods. Payment is generally taken in advances or due within 30 to 90
days after delivery of goods.

ii) Sales of Services:

The performance obligation is satisfied over time as the assets is under control of customer and they simultaneously receives
and consumes the benefits provided by the Company. The Company received payment toward provision of services upon
completion of milestone as per terms of contract.

E. Transaction price allocated to remaining performance obligation

The aggregate amount of transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied)
as at March 31,2025, is H 19,17,926.67 lakhs (31 March 2024 - H 16,55,415.44 lakhs) and the Company will recognise this revenue
as the projects are completed, which is expected to occur over the next 24-30 months.

The joint venture agreements related to above joint operations require unanimous consent from all parties for relevant activities.
The partners have direct rights to the assets of joint arrangement and are jointly and severally liable for the liabilities incurred by
joint arrangement. Thus, the above entities are classified as joint operations and the Company recognises its direct right to the
jointly held assets, liabilities, revenue and expenses.

52 The Company has used accounting software, for maintaining its books of account which has a feature of recording audit trail
(edit log) facility and the same has been operated throughout the year for all relevant transactions recorded in the accounting
software. However, the audit trail feature is not enabled for the certain direct changes to data when using certain privilege
administrative access rights to the accounting software and the underlying database. Further, no instances of audit trail feature
being tampered with, was occurred in respect of the accounting software where such feature is enabled. Additionally, the audit trail
has been preserved by the Company as per statutory requirements for records retention.

53 The Code on Social Security, 2020 (Code) relating to employee benefits during the employment and post-employment benefits,
received Presidential assent in September 2020. The Code has been published in Gazette of India. Certain sections of the Code
came into effect on 3 May 2023. However, the final rules/interpretation have not yet been issued. The management will evaluate
and assess the impact once the corresponding rules are notified. However, based on preliminary assessment, the management
believes that the impact of the changes will not be significant.

54 The law enforcement agency had taken into custody two NHAI officials posted at Regional office, Guwahati along with three
employees of the Company on June 12, 2022 and registered case under the Prevention of Corruption Act, 1988 read with the
Indian Penal Code, 1860. Subsequently, all these three employees were released on bail and the Company had also received
summons and appeared through its authorized representative to Ld. Court of Special judge, CBI, Assam (Ld. Court).

During the year, the hearing took place before Ld. Court and the matter was listed for Consideration of Charges. However, no
charges are framed against the Company or its employees yet. Simultaneously, the Company has filed an application before the
Hon''ble High Court of Gauhati, Assam (Hon''ble High court) to challenge its involvement in the said matter wherein the Hon''ble
High Court has passed stay order on proceeding in Ld Court during the year and the matter now pending with Hon''ble High Court.
Considering this, any impact on the matter on the financial statements would be dependent on conclusion of the matter.

55 Other Statutory Information

(i) No proceeding has been initiated or are pending against the Company for holding any Benami property under the Benami
(prohibition) transaction Act, 1988.

(ii) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(iii) The Company have not advanced or loaned or invested funds (either from borrowed funds or share premium or any other sources
or kind of funds) by the company to or any other persons or entity, including foreign entities (Intermediaries) with the understanding
whether recorded in writing or otherwise that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(iv) The Company have not received any fund from any persons or entities, including foreign entities (Funding Party) with the
understanding, whether recorded in writing or otherwise that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(v) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any
other relevant provisions of the Income Tax Act, 1961).

(vi) The Company has not been declared as willful defaulter by any bank or financial institution or other lender.

56 Events occurring after Balance sheet date :

The Company evaluates events and transactions that occur subsequent to the Balance sheet date but prior to approval of the
financial statements to determine the necessary for recognition and/or reporting of any of these events and transactions in the
financial statem

Mar 31, 2024

q. Provisions, contingent liabilities and contingent assets

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are measure based on management''s estimate required to settle the obligation at the balance sheet date and are discounted the expected future cash flows (representing the best estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent liability is disclosed when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources embodying economic benefits or the amount of

such obligation cannot be measured reliably. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources embodying economic benefits is remote, no provision or disclosure is made.

Contingent assets are not recognized but are disclosed in the notes where an inflow of economic benefits is probable.

r. Earnings per share

Basic earnings per share is computed by dividing the net profit for the period attributable to the equity shareholders of the Company by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.

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

s. Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM) of Company. The CODM is responsible for allocating resources and assessing performance of the operating segments of Company.

Segment results that are reported to the CODM include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Segment capital expenditure is the total cost incurred during the period to acquire property and equipment and intangible assets.

t. Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, that are readily convertible to a known amount of cash and subject to an insignificant risk of changes in value. Net of outstanding bank overdrafts if any, as they are considered an integral part of the Company''s cash management.

u. Exceptional item

Exceptional items are generally non-recurring items of income and expense within profit or loss from

ordinary activities, which are of such size, nature or incidence that their disclosure is relevant to explain the performance of the Company for the year.

v. Assets Classified as Held for Sale

The Company classifies non-current assets as held for sale if their carrying amounts will be recovered principally through a sale rather than through continuing use. The Company has classified noncurrent assets as held for sale when the sale is highly probable, and the asset is available for immediate sale in its present condition. The Company has committed to the sale and the sale expected within one year from the date of classification.

Non-current assets classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of an asset excluding finance costs and income tax expense. Assets and liabilities classified as held for sale are presented separately from other items in the balance sheet.

2.3 Significant accounting judgements, estimates and assumption

The preparation of the standalone financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the Standalone financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.

The following are the key judgement, estimation and assumptions concerning the future, and other key sources of

estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Revenue recognition

Revenue recognition from construction contracts involves significant degree of judgements and estimation such as identification of contractual obligations, measurement and recognition of contract assets, determination of variable consideration, change of scope and determination of onerous contract which include estimation of contract costs. The Company reassesses these estimates on periodic basis and makes appropriate revisions accordingly.

Fair value measurement of financial instruments

In estimating the fair value of financial assets and financial liabilities, the Company uses market observable data to the extent available. Where such Level 1 inputs are not available, the Company establishes appropriate valuation techniques including the Discounted Cash Flows (DCF) model and inputs to the model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

Impairment of Non-Financial Assets (including subsidiaries and associate)

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The cash flows (consisting of annuity, Interest rate, discount rate, future operating income and cost as well as finance cost) are derived from the Business Projections and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset''s performance of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes. Further, the management has not considered any claim or awards which receivable from various authorities in the impairment assessment of subsidiaries.

Significant influence over InvIT

The Company hold 43.56% in the Bharat Highways InvIT ("InvITâ) as result of sale of its seven subsidiaries to InvIT. The

Aadharshila Infratech Private Limited ("Sponsor of InvITâ) is holding 15% in the InvIT The management has applied its judgement in terms of its evaluation relationship between the Company and InvIT''s sponsor based on ownership, relationship between both entities along with legal evaluation, voting arrangement, financial position, funding arrangement of the InvIT''s Sponsor to acquire investment in InvIT, lending / security arrangement and all other business relationship etc, and is not an agent or de-facto agent of the Company as per Ind AS 110. Accordingly, the above sale transaction with InvIT is not considered as common control and the Company does not exercise control over InvIT in accordance with Ind AS 110. Considering the nature of relationship, the management has concluded that the Company exercises significant influence and investment in InvIT considered as its associate.

Impairment of financial assets (including Trade Receivables and contract assets)

Impairment testing for financial assets (other than trade receivables and contract assets) is done at least once annually and upon occurrence of an indication of impairment. The recoverable amount of the individual financial assets is determined based on value-in-use calculations which required use of assumption. These assumptions are about risk of default and expected credit loss. The Company makes judgement in making these assumptions and selecting inputs to the impairment calculation, based on the Company''s past history, existing condition and forward-looking estimates at the end of each reporting year of counter party''s credit worthiness.

Allowances for doubtful trade receivables and contract assets represent the estimate of losses that could arise due to inability of the customer to make payments when due. These estimates are based on the Company''s past history, performance issues, existing market conditions as well as forward looking estimates at the end of each reporting period.

Useful life of Property, Plant and Equipment

asset. Management reviews its estimate of the useful lives of depreciable at each reporting date, based on the expected utility of the assets. The depreciation for future periods is revised if there are significant changes from previous estimates.

Defined benefit plans (gratuity benefits) and accumulated leaves

The cost of defined benefit gratuity plan and accumulated leaves are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans, the management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation.

Taxes

Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income. Given the wide range of business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Company establishes provisions, based on reasonable estimates.

Determination of lease term & discount rate Determination of lease term

The Company makes assessment on the expected lease term on lease by lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of lease and the importance of the underlying to the Company''s operations taking into account the location of the underlying asset and the availability of the suitable alternatives. The lease term in

future periods is reassessed to ensure that the lease term reflects the current economic circumstances.

Estimating the Incremental Borrowing Rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate that the Company have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of similar value to the right-to-use asset in a similar economic environment. The IBR therefore reflects what the Company ''would have to pay'', which require estimation when no observable rates are available or when they need to be adjusted to reflect the terms and conditions of the lease. The Company estimates the IBR using observable inputs when available and is required to make certain entity / lease transaction specific estimates.

Provisions and Contingencies

The Company has ongoing litigation with various regulatory authorities. Where an outflow of funds is believed to be probable and a reliable estimate of the outcome of the disputes can be made based on management''s assessment of specific circumstances of each dispute and relevant external advice, management provides for its best estimate of the liability. Such accruals are by nature complex estimation uncertainty.

3. Changes in accounting policies and disclosures

3.1. New Standards, Interpretations and Amendments adopted by the Company

The accounting policies adopted in the preparation of the standalone financial statements are consistent except for amendments to the existing Indian Accounting Standards (Ind AS).

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023

dated 31 March 2023 to amend the following Ind AS which are effective for annual periods beginning on or after 1 April 2023. The Company applied for the first-time these amendments.

(i) Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates, changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates. The amendments had no impact on the Company''s Standalone financial statements.

(ii) Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ''significant'' accounting policies with a requirement to disclose their ''material'' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures. The amendments have had an impact on the Company''s disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the Company''s standalone financial statements.

Apart from these, consequential amendments and editorials have been made to other Ind AS like Ind AS 101, Ind AS 102, Ind AS 103, Ind AS 107, Ind AS 109, Ind AS 115 and Ind AS 34.

3.2. Standards notified but not yet effective

There are no new standards that are notified, but not yet effective, upto the date of issuance of the Company''s standalone financial statements.

c) The company has pledged its investment in equity shares of subsidiaries, in favour of lenders for term loan facilities availed by the respective subsidiary companies.

d) The company has been incorporated during the year.

e) The Company has signed a framework agreement dated December 21, 2022 with Indigrid Investment Managers Limited ("IGIâ) (Acting as Investment manager of India Grid Trust "IGT"). whereby its specified that the Company''s entire shareholding in the Rajgarh Transmission Limited (RTL) will be transferred to IGT upon achievement of Commercial Operation Date of RTL, subject to fulfilment of other terms and conditions and receipts of necessary approvals as mentioned in framework agreement.

f) Pursuant to share purchase agreement dated October 31,2023, the Company sold its 21% stake in one of its wholly owned subsidiary i.e. Naguar Mukundgarh Highways Private Limited ("NMHPE) for total consideration of H 1,116.58 lakhs and resultant gain of H 830.35 lacs has been disclosed as an exceptional item in these standalone financial statements.

g) The Company had acquired 100% equity shares in Pachora Power Transmission Limited ("PPTLâ) for total consideration of H655.30 lakhs as per the share purchase agreement entered with REC Power Development and Consultancy Limited ("RECDCL''), dated 14 February 2024 pursuant to bid condition, as the company has been identified selected bidder vide letter of intent dated December 31,2023 for the project "Transmission system for Evacuation of Power from RE Projects in Rajgarh (1000 MW) SEZ in Madhya Pradesh-Phase II". This has been accordingly accounted in these standalone financial statements.

Notes:

a) The company has granted interest bearing loan to its subsidiaries. The fund has been advanced to its subsidiaries for business need of the subsidiaries company. Repayment of such loan is as per the terms of Loan agreement.

b) For terms and conditions relating to loan to related parties (refer note 39).

c) Since all loans given by the company are unsecured and considered good, the bifurcation of loans in other categories as required to be classified as per schedule III of the Companies Act, 2013 viz. Loans Receivables considered good - Secured, Loans Receivables which have significant increase in Credit Risk; and Loans Receivables - credit impaired considered as not applicable to the company and hence not disclosed above. Also, there are no Expected Credit Loss (ECL) provision on the considered good loan. Therefore relevant ECL disclosure are not provided.

d) There is no amount due from director, other officer of the company or firm in which any director is a partner or private companies in which any director is a director or member at any time during reporting period except loan to wholly owned subsidiaries where director is director (refer note 39).

e) The company is engaged in business of providing infrastructure facilities and accordingly, the provision of section 186(4) of the Companies Act, 2013 are not applicable and accordingly disclosure is not given.

f) The company has not granted loans which are either repayable on demand or are without specifying terms of repayment. Hence, the disclosure as specified in schedule III is not given in the standalone financial statements.

Notes : -

i) Securities premium

Securities premium is used to record the premium received on issue of shares. The reserve can be utilised only for limited purpose such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

ii) Capital redemption reserve

The reserve has been created on redemption of redeemable preference shares in accordance with the sub-section (2) of section 55 of the Companies Act, 2013. The reserve can be utilised in accordance with provisions of the Companies Act, 2013.

iii) Retained earnings

Retained earnings represents the profit that the company earn till date, which includes re-measurement gain/(loss) of defined benefit plans, net of tax and can be distributed by the Company as dividends in accordance with provision of the Companies Act, 2013.

iv) Equity instruments through OCI

The company has elected to recognise changes in fair value of certain investment in equity securities in other comprehensive income. These changes are accumulated within the equity instruments through other comprehensive income within equity. The company transfers amount from this reserve to retained earnings when relevant securities are derecognised.

v) Share based payment reserve

The share based payment reserve is used to recognise the grant date fair value of options issued to employees under Employee stock option plan.

Notes:

i) Term loans from banks in foreign currency are secured by:

(a) Hypothecation of first pari passu charge on all existing and future moveable assets of the company at lease 1.25x (other than specifically charged to financial instruments)

(b) Unconditional, irrevocable and continuing personal guarantee from Mr. Vinod Kumar Agarwal and Mr. Purshottam Agarwal

ii) Redeemable non-convertible debentures are secured by:

(a) a first ranking charge, created by way of hypothecation/charge of the past, present and future plant and machinery of the company covering 1.25x of the security cover on the outstanding debenture.

iii) Unsecured debentures of H 15,893.75 lakhs as at March 31, 2024 (31 March 2023 : H 28,885.21) are secured by way of Unconditional, irrevocable and continuing personal guarantee of Mr. Vinod Kumar Agarwal and Mr. Ajendra Kumar Agarwal.

Notes:-

i) Working capital demand loan is secured by hypothecation of all present as well as entire future current assets including inventories, trade receivables, etc. excluding work in progress (real estate) and first pari pasu charge by way of mortgage of the immovable properties, lien over deposit with bank and second pari passu charge over Plant & Machinery to the extent of 10.63% of total working capital limits sanctioned under Consortium.

Security to the lenders also include:

1. Unconditional, irrevocable and continuing personal guarantee of Mr. Vinod Kumar Agarwal and Mr. Ajendra Kumar Agarwal for the value of the outstanding limits where personal guarantee is provided.

2. Unconditional, irrevocable and continuing personal guarantee of Mr. Purshottam Agarwal for outstanding value of the term loans where guarantee is provided and for working capital limits to the value of the property mortgaged and Mr. Mahendra Kumar Agarwal only to the value of the property mortgaged.

3. Corporate Guarantee of the following related company to the extent of the value of the property mortgaged:-

A. Grace Buildhome Private Limited

B. Rahul Infrastructure Private Limited

The loan repayable on demand with interest rate ranging from 7.35% p.a.

ii) Unsecured working capital demand loan repayable on between 0 to 6 months with interest rate in the range of 7.17% to 7.60% p.a. The said loan fully repaid during the year.

iii) The quarterly returns/statements filed by the Company with the banks and financial institutions are in agreement with the books of accounts of the Company.

32 Leases

Company as lessee :

The Company has lease contracts for various items of land, building, plant, machinery, vehicles and other equipment used in its operations. Leases of land generally have lease terms between 1 to 99 years, while Building have lease term between 1 to 9 years. Plant and machinery, vehicles and other equipment generally have a short term leases. The Company''s obligation under its leases are secured by the lessor''s title to the leased assets. Generally, the Company is restricted from assigning and subleasing the leased assets. The Company has elected not to apply the requirements of Ind AS 116 to short term leases of all the assets that have a lease term of twelve months or less or cancellable or with low value. The lease payments associated with these leases are recognized as an expense under the head of "Expenses relating to short term leasesâ on a straight line basis over the lease term.

The lease arrangements have extension/ renewal / termination options exercisable by either parties which may make up assessment of lease term uncertain while determining the lease term, all facts and circumstances that creates an economic incentive to exercise an extension option, or not exercise a termination option considered.

vii Sensitivity analysis

The sensitivity analysis given below have been determined based on a method that extrapolates the impact on defined obligation as result of reasonable changes of the key assumptions occurring at the end of the reporting period. The sensitivity analysis are based on a change in a significant assumptions keeping all other assumptions constant. The sensitivity analysis may not be representative of an actual change in the defined benefit obligation as it is unlikely that changes in assumptions would occur in isolation from one another. The quantitative sensitivity analysis for significant assumption is as shown below:

ix. Asset Liability Matching Strategies

The Company has purchased insurance policy, which is basically a year-on-year cash accumulation plan in which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The insurance Company, as part of the policy rules, makes payment of all gratuity outgoes happening during the year (subject to sufficiency of funds under the policy). The policy, thus, mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Company is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should result in a increase in liability without corresponding increase in the asset).

x. Effect of Plan on Entity''s Future Cash Flows

a) Funding arrangements and Funding Policy

The Company has purchased an insurance policy to provide for payment of gratuity to the employees. Every year, the insurance Company carries out a funding valuation based on the latest employee data provided by the Company. Any deficit in the assets arising as a result of such valuation is funded by the Company.

C. Other long-term employee benefits

The compensated absences expenses reduced by H 56.80 lakhs for the year ended March 31, 2024 (charged for the year ended March 31,2023 is H 8.87 lakhs) based on acturial basis which is recognised in the standalone statement of profit and loss.

35 Employee share based payment

Employees Stock Option Scheme - 2021

The Shareholders at the Annual General Meeting held on September 27, 2021 has passed the special resolution and approved the Employee Stock Option Scheme titled ''G R Infraprojects Limited Employees Stock Option Scheme - 2021''(ESOP 2021 Plan). The ESOP 2021 Plan is the primary arrangement under which plan to provide incentives to employees who are in the employment of the Company, its subsidiaries or associate company or group company, including the eligible Directors of the Company, at the time the grant is made under the Plan. Under this Plan, the exercise price for Options shall not be less than the face value and shall not be more than fair market value (FMV) of an equity share of the company at the time of grant of option as determined by the nomination and remuneration committee from time to time after complying the condition as mentioned in the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.

The maximum number of Options that may be granted pursuant to this ESOP 2021 Plan shall not exceed 9,66,890 Options which shall be convertible into equal number of shares.

During the year, the Nomination and Remuneration committee in their meeting dated August 10, 2023 has granted 3,13,196 employee stock options (ESOPs) to its eligible employees under the ESOP 2021 Plan. The Employee stock option has been granted on August 10, 2023 and 25% of the grant would vest at the end of the first year, 25%of the grant would vest at the end of the second year, 25%of the grant would vest at the end of the third year and 25% of the grant would vest at the end of the forth year with a vesting condition that the employee is in continuous employment with the Company till the date of vesting. The exercise period would be 3 years from the date of respective vesting.

These options are equity settled and are accounted for in accordance with the requirement applying to equity settled transactions.

The fair value of these options can be determined using the Black- Scholes model which takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option.

36 Segment Reporting

As permitted by paragraph 4 of Ind AS 108, "Operating Segmentsâ, notified under section 133 of the Companies Act, 2013, read together with the relevant rules issued thereunder, if a single financial report contains both consolidated financial statements and the standalone financial statements of the parents, segment information need to be presented only on the basis of the consolidated financial statements. Thus disclosures regarding ''Operating segment'' under Ind AS 108 is presented in Consolidated Financial Statements. The company operates only in India, hence no separate geographical segment is disclosed.

G. Reason for shortfall

The shortfall amounting to Nil (31 March 2023: shortfall of H 992.70 lakhs) pertains to ongoing projects which has been transferred to separate unspent CSR account subsequent to year end in accordance with the provisions of section 135 (6) of the Companies Act, 2013.

H. Nature of CSR activities: -

(i) Construction and maintenance of education institution and heath care infrastructure

(ii) Provide sponsorship for education to under privilege and disable children''s.

(iii) Animal welfare by way of construction of Gaushala and contribution for green husk.

(iv) Water conservation by way of construction of ponds.

(v) Promotion of sports by way of providing sports equipments and setting up sports events.

H. Terms & Condition with Related Party:

i) The terms and conditions of the transactions with key management personnel and their related parties were no more favourable than those available, or those which might reasonably be expected to be available, in respect of similar transactions with non-key management personnel related entities on an arm''s length basis.

ii) The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free except loan given and settlement occurs in cash as per the terms of the agreement.

iii) Key Managerial Personnel who are under the employment of the Company are entitled to post employment benefits and other long term employee benefits recognised as per Ind AS 19 - Employee Benefits in the standalone financial statements. The Remuneration disclosed above is for short term employee benefits and does not includes post employee benefits as the same is not material and hence not disclosed separately.

iv) The loans given to subsidiaries companies is based on their business needs in accordance with Loan agreements of the respective entities. The loan carries interest rate of 10.50% p.a. (31 March 2023 : 10% p.a.)

v) The company has granted 21,700 option to key managerial personal on 10 August 2023 under ''G R Infraprojects Limited employee stock option scheme 2021'' with exercise price of H 1,000 per share which will expire on February 2029. Accordingly, The company recognised expenses of H 49.44 lakhs (31 March 2023 Nil) towards employee stock options granted to key managerial personnel. The same has not been considered as managerial remuneration of current year as defined under section 2(78) of the companies Act, 2013 as the option have not been exercised.

vi) The company has pledged its investment in equity shares of subsidiaries of H 12,479.29 lakhs (31 March 2023 : H 13,701.37 lakhs) in favour of the lender for term loan facilities availed by the respective subsidiaries companies.

Note: All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy described as above, based on the lowest level input that is significant to the fair value measurement as a whole.

The fair values of the financial assets and financial liabilities included in the level 2 category above has been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties.

45 Financial risk management objectives and policies

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s board of directors have overall responsibility for establishment and oversees the Company''s risk management framework. All derivative activities for risk management purposes are carried out by finance team which has appropriate skills, experience and supervision. It is the Company''s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

A. Market risk

The sensitivity analyses in the following sections relate to the position as at 31 March 2024 and 31 March 2023.

The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant and on the basis of hedge designations in place at 31 March 2024. The analysis excludes the impact of movements in market variables on the carrying values of gratuity and other post-retirement obligations and provisions.

The following assumptions have been made in calculating the sensitivity analyses:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March 2024 and 31 March 2023.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest risk of changes in market interest rates relate primarily to the Company''s long-term debt obligations with floating interest rates. While most of long-term borrowings from debenture holders are on fixed rate basis, certain borrowings consist of floating rate obligations linked to the applicable benchmark rates, which may typically be adjusted at certain intervals in accordance with prevailing interest rates. As at 31 March 2024, approximately 64% of the Company''s borrowings are at fixed rate (31 March 2023: 57%) including borrowings at variable rates hedged by Interest Rate Swaps for fixed rate of interest. Increases in interest rates would increase interest expenses relating to outstanding floating rate borrowings and increase the cost of new debt. In addition, an increase in interest rates may adversely affect ability to service long-term debt and to finance development of new projects, all of which in turn may adversely affect results of operations. The Company seeks to mitigate such risk by maintaining an adequate proportion of floating and fixed interest rate borrowings.

Foreign currency risk

The functional currency of the Company is Indian Rupees (""H""). Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign currency).

The Company manages its foreign currency risk by hedging transactions. When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure. The Company hedges its exposure to fluctuations by using foreign currency swaps and forwards.

Commodity Price Risk

The Company requires materials for construction, operation and maintenance of the projects, such as cement, bitumen, steel and other construction materials. The Company has hedged its commodity risk in respect of aggregates for production of aggregates. The Company is able to manage its exposure to price increases in project materials through bulk purchases and better negotiations. Further, the company has arrangement with its customers to charge price escalation which mitigate any increase in price risk. Hence, the sensitivity analysis is not required.

Equity price risk

The Company''s exposure to price risk in the investment in mutual funds and equity shares arises from investments held by the Company and classified in the balance sheet as fair value through profit or loss including OCI (refer note 5). The Company manages the equity price risk through diversification and by placing limits on individual and total equity instruments. The Company''s Board of Directors reviews and approves all equity investment decisions.

The investments in mutual funds are designated as FVTPL while investment in equity shares are designated as FVOCI.

Equity price sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in Investment in mutual funds and equity price.

B. Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk primarily trade receivables, contract assets and other financial assets including deposits with banks. The Company''s exposure and credit ratings of its counterparties are continuously monitored and the aggregate value of transactions is reasonably spread amongst the counterparties. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in note 42.

Trade receivable and contract assets

The Company''s customer profile includes public sector enterprises, state owned companies, group companies and corporates customers. General payment terms include mobilisation advance, monthly progress payments with a credit period ranging from 30 to 90 days. Further, trade receivables include retention money receivable from the customers on expiry of the defect liability period However, the Company has an option to get the refund of the above receivables if bank guarantee is provided. The Company has a detailed review mechanism of overdue customer receivables at various levels within organisation to ensure proper attention and focus for realisation.

The information about movement of impairment allowance due to the credit risk exposure is given in Note 11.

The significant change in the balance of trade receivables and contract assets are disclosed in note 48.

Concentration of credit risk

At 31 March 2024, the Company had four customers (31 March 2023: five customers) that accounted for approximately 44% (31 March 2023: 63%) of all the outstanding receivables and contract asset.

Financial instruments and bank deposits

This comprises mainly of deposits with banks, investments in mutual funds and other intercompany receivables. The Company''s maximum exposure to credit risk for the components of the balance sheet at 31 March 2024 and 31 March 2023 is the carrying amounts as illustrated in Note 42.

C. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation. The Company invest in liquid mutual funds and deposit with bank to meet the immediate obligations.

46 Capital management

For the purpose of the Company''s capital management, capital includes paid-up equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to ensure that it maintains a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business and maximise shareholder value.

The Company manages its capital structure and makes adjustments to it in the light of changes in economic conditions and the requirements of the financial covenants. Breaches in meeting the financial covenants would permit the lenders to immediately call loans and borrowings. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using Debt-Equity ratio, which is net debt divided by total equity. The Company''s policy is to keep the net debt to equity ratio below 3. Net debt consist of interest bearing borrowings, interest accrued thereon less cash and cash equivalents. Equity includes equity attributes to the equity shareholders.

51 Exceptional item

(i) Pursuant to Board of Director''s approval dated October 26, 2023 and share purchase agreement dated October 31, 2023, the Company has sold its 21% stake in one of its wholly owned subsidiary i.e. Naguar Mukundgarh Highways Private Limited (NMHPL) for total consideration of H 1,116.58 lakhs and resultant gain of H 830.35 lakhs has been disclosed as an exceptional item in these standalone financial statements.

(ii) The Company had originally obtained approval for sale of 100% stake in seven subsidiaries to Bharat Highways InvIT (InvIT) from the Audit committee on May 27, 2022, the Board of Directors on July 28, 2022 and minority shareholders on August 25, 2022 whereby the minority shareholders have authorised the Board to take necessary action for carrying out the transaction. Subsequently, there has been a change in the Sponsor whereby the Company no longer continued as Sponsor of the InvIT and the change was approved by the Board on November 30, 2022. Also, on the same date, as per the approval given by the board, the Company transferred GR Highways Investment Manager Private Limited (Investment Manager of InvIT) to Lokesh Builders Private Limited for a consideration of H1,500 lakhs representing book value as on that date. On continuous basis, the board was briefed about the status of the transaction on February 12, 2024, which was closer to the date of transaction, the board discussed and approved the tentative price range for the transaction and certain board members and KMP were authorised to close the same accordingly. Basis the above approval and upon finalisation of consideration, the Company has entered into share purchase agreement date February 20, 2024 to sell its 100% stake in its Seven subsidiaries namely GR Phagwara Expressway Limited, Porbandar Dwarka Expressway Private Limited, GR Gundugolanu Devarapalli Highway Private Limited, GR Akkalkot Solapur Highway Private Limited, Varanasi Sangam Expressway Private Limited, GR Sangli Solapur Highway Private Limited and GR Dwarka Devariya Highway Private Limited to the Bharat Highways InvIT(""The InvIT""). The equity shares of above subsidiaries got transferred on February 29, 2024. The Company has received 13,75,30,405 units with issue price of H 100 per unit as consideration against above sale of shares and 5,54,08,300 units with issue price of H 100 per unit towards assignment of loan receivable from above subsidiaries, which has resulted in the Company holding 43.56% stake in the InvIT The management believes that the transaction has been carried at basis mutual negotiation between parties as per the approval and the authority granted by minority shareholders to the board of directors of the Company, for negotiating and agreeing the terms of deal. Also, all subsequent changes in the InvIT structure as well pricing adjustments are duly approved by the board as per the authority given.

The InvIT has carried out fair valuation of above subsidiaries by independent valuer using inputs generally used by market participants in similar transactions resulting in fair value of net assets of H 194,093.00 lakhs. As stated above, the Company has received units worth of H 137,530.41 lakhs as a consideration for sale. This has resulted in difference of H 56,562.60 lakhs mainly on account of (a) difference in Weighed Average Cost of Capital on account of different cost of equity (including debt-equity ratio) (b) InvIT Issue expenses, and (c) Net present value of InvIT related expenses (including fees payable to investment manager) amounting to H 30,175.20 lakhs, H 5,899.30 lakhs and H 2,0488.10 lakhs, respectively.

Based on substance of relationship, the Company has treated the aforesaid difference, net of adjustment of holding of other unitholders of the InvIT considering that economic benefits to the extent given away by the Company, considered as additional investment in associate resulting value of Investment is H 2,17,577.37 lakhs on date of transfer and the management has also assessed the recoverable value of this investment at the yearend wherein the difference between carrying value and recoverable value amounting to H 6,193.72 lakhs has been charged off to profit and loss. As a result of above, the Company has recorded net gain on sale of investment of H1,37,196.35 lakhs as exceptional item in these standalone financial statements.

52 The Company has used accounting software, for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has been operated throughout the year for all relevant transactions recorded in the accounting software. However, the audit trail feature is not enabled for the certain direct changes to data when using certain privilege administrative access rights to the accounting software and the underlying database. Further, no instances of audit trail feature being tampered with, was occurred in respect of the accounting software. Subsequent to year end, the log has been activated in the accounting software and the privilege access to the database has been restricted.

53 The Indian Parliament has approved the Code on Social Security, 2020 (''Code'') which may likely impact the contributions made by the Company towards Provident Fund and Gratuity. The Company will assess the impact once the corresponding rules are notified and will give appropriate impact in the standalone financial statement in the period in which the Code becomes effective and the related rules are notified.

54 The law enforcement agency had taken into custody two NHAI officials posted at Regional office, Guwahati along with three employees of the company on June 12, 2022 and registered case under the Prevention of Corruption Act, 1988 read with the Indian Penal Code, 1860. Subsequently, all three employees of the Company were released on bail and the Company had also received summons and appeared through its authorized representative to Ld. Court. Currently matter is sub-judice and pending with Ld. Court.

The Company is in process of filing appropriate applications/petitions, challenging its involvement in the said matter before the concerned Ld. Court. However, as the matter is sub-judice and pending with Court, any impact of the matter on the Standalone financials statements would be depended on conclusion of the matter.

55 Other Statutory Information

(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(iii) The Company have not advanced or loaned or invested funds either from borrowed funds or share premium or any other sources or kind of funds to any other persons or entities, including foreign entities (Intermediaries) with the understanding recorded in writing or otherwise that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(iv) The Company have not received any fund from any persons or entities, including foreign entities (Funding Party) with the understanding, whether recorded in writing or otherwise that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(v) The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(vi) The Company has not been declared as willful defaulter by any bank or financial institution or other lender.

56 Events occurring after Balance sheet date :

The Company evaluates events and transactions that occur subsequent to the Balance sheet date but prior to approval of the financial statements to determine the necessary for recognition and/or reporting of any of these events and transactions in the financial statements. As on May 29,2024, there are no subsequent events recognised or reported.

As per our report of even date

For S R B C & CO LLP For and on behalf of the Board of Directors of

Chartered Accountants G R Infraprojects Limited

ICAI Firm''s Registration No :324982E/E300003 (CIN: L45201GJ1995PLC098652)

per Sukrut Mehta Ajendra Kumar Agarwal Vikas Agarwal

Partner Managing Director Wholetime Director

Membership No: 101974 DIN: 01147897 DIN: 03113689

Place : Gurugram Place : Gurugram

Date : 29 May 2024 Date : 29 May 2024

Anand Rathi Sudhir Mutha

Chief Financial Officer Company Secretary

ICAI Mem. No. 078615 ICSI Mem. No. ACS18857

Place : Ahmedabad Place : Gurugram Place : Udaipur

Date : 29 May 2024 Date : 29 May 2024 Date : 29 May 2024

Mar 31, 2023

b) For terms and conditions relating to loan to related parties (refer note 38.)

c) Since all loans given by the company are unsecured and considered good, the bifurcation of loans in other categories as required to classified by schedule III of the Companies Act, 2013 viz. Loans Receivables considered good - Secured, Loans Receivables which have significant increase in Credit Risk; and Loans Receivables - credit impaired considered as not applicable to the company and hence not disclosed above.

a) Trade Receivables are non interest bearing and generally have credit period of 30-90 days in case of sale of goods. In case of sale of services, payment is generally due upon completion of milestone as per terms of contract.

b) For terms and conditions relating to related party receivables, refer note 38

c) Above carrying value of trade receivable are subject to a charge to secure the company''s secured borrowing. (refer note 15 and 17).

d) No trade or other receivable are due from directors or other officers of the company either severally or jointly with any other person. Nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member except transaction with wholly owned subsidiaries where director is director (refer note 38).

e) There are no unbilled revenue included in trade receivable and hence the same is not disclosed in ageing schedule.

B. Terms/Rights attached to equity shares

The Company has a only one class of equity shares having par value of '' 5 per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by board of directors is subject to the approval of the shareholders in the annual general meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

C. Employee stock options

The Shareholders at the Annual General Meeting held on 27 September 2021 have passed a special resolution and approved the Employee Stock Option Scheme titled ''G R Infraprojects Limited Employees Stock Option Scheme -2021''(the scheme) for employees which are in the employment of the Company, its subsidiaries or associate company or group company, including the eligible Directors of the Company, at the time the grant is made under the Plan. The maximum number of Options that may be granted pursuant to this Scheme shall not exceed 1% of the paid up capital of the Company as on March 31, 2021, comprising 9,66,890 Options which shall be convertible into equal number of shares. Under this Scheme, the exercise price for Options shall not be less than the face value and shall not be more than fair market value (FMV) of an equity share of the company at the time of grant of option as determined by the nomination and remuneration committee from time to time after complying the condition as mentioned in the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. No equity stock option have been granted under the Plan from the date of the aforesaid resolution till the date of the balance sheet.

i) Securities premium

ii) Capital redemption reserve

iii) Equity instruments through OCI

The company has elected to recognise changes in fair value of certain investment in equity securities in other comprehensive income. These changes are accumulated within the equity instruments through other comprehensive income within equity. The company transfers amount from this reserve to retained earnings when relevant securities are derecognised.

iv) Retained earnings

Retained earnings represents the profit that the company earn till date, less re-measurement gain (loss) of defined benefit plans and can be distributed by the Company as dividends in accordance with provision of the Companies Act, 2013.

i) Term loans from banks in Indian rupees were secured by:

(a) Subservient charge over current assets

(b) Charge over bank deposits / cash deposits

(c) Unconditional, irrevocable and continuing personal guarantee from Mr. Vinod Kumar Agarwal, Mr. Purshottam Agarwal and Mr. Ajendra Kumar Agarwal, being the Guarantor

ii) Term loans from banks in foreign currency are secured by:

(a) Hypothecation of first pari passu charge on all moveable assets of the company

(b) Unconditional, irrevocable and continuing personal guarantee from Mr. Vinod Kumar Agarwal and Mr. Purshottam Agarwal

iii) Redeemable non-convertible debentures are secured by:

(b) a first ranking charge, created by way of mortgage over immovable property of the company.

iv) Unsecured debentures of '' 28,885.21 lakhs as at March 31,2023 ( 31 March 2022 : '' 33,031.95) are secured by way of Unconditional, irrevocable and continuing personal guarantee of Mr. Vinod Kumar Agarwal and Mr. Ajendra Kumar Agarwal.

i) Working capital demand loan is secured by hypothecation of all present as well as future current assets including inventories, trade receivables, etc. excluding work in progress (real estate), charge against immovable properties and second pari passu charge over Plant & Machinery to the extent of 9.52% of total working capital limits sanctioned under Consortium. Security to the lenders also include:

1. Unconditional, irrevocable and continuing personal guarantee of Mr. Vinod Kumar Agarwal and Mr. Ajendra Kumar Agarwal for the value of the outstanding limits where personal guarantee is provided.

3. Corporate Guarantee of the following relating company to the extent of the value of the property mortgaged:-

A. Grace Buildhome Private Limited

B. Rahul Infrastructure Private Limited

The loan repayable on demand with interest rate ranging from 4.21%to 7.24% p.a.

ii) Unsecured working capital demand loan repayable on between 0 to 6 months with interest rate of 6.45% p.a.

iii) Inter-corporate loan from others were interest free and the same fully repaid during the year.

iv) Short term Indian rupee loan is unsecured and repayable in 10 equal monthly installments along with interest at the rate of 7.50% p.a.

v) The quarterly returns/statements filed by the Company with the banks and financial institutions are in agreement with the books of accounts of the Company.

32 Leases

The Company has lease contracts for various items of land, building, plant, machinery, vehicles and other equipment used in its operations. Leases of land generally have lease terms between 1 to 99 years, while Building have lease term between 1 to 9 years. Plant and machinery, vehicles and other equipment generally have a short term leases. Generally, the Company is restricted from assigning and subleasing the leased assets. The Company has elected not to apply the requirements of Ind AS 116 to short term leases of all the assets that have a lease term of twelve months or less or cancellable. The lease payments associated with these leases are recognized as an expense under the head of "Expenses relating to short term leases" on a straight line basis over the lease term.

B. Defined Benefits Plans:

The Company operates a defined benefit plan (the gratuity plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and tenure of employment. The scheme is funded with the HDFC Standard Life Insurance Company Limited, SBI life Insurance Company Limited and Life Insurance Corporation (LIC) in form of a Group Gratuity Policy. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of services is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at retirement age.

ix. Asset Liability Matching Strategies

The Company has purchased insurance policy, which is basically a year-on-year cash accumulation plan in which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The insurance Company, as part of the policy rules, makes payment of all gratuity outgoes happening during the year (subject to sufficiency of funds under the policy). The policy, thus, mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Company is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should result in a increase in liability without corresponding increase in the asset).

x. Effect of Plan on Entity''s Future Cash Flows

a) Funding arrangements and Funding Policy

The Company has purchased an insurance policy to provide for payment of gratuity to the employees. Every year, the insurance Company carries out a funding valuation based on the latest employee data provided by the Company. Any deficit in the assets arising as a result of such valuation is funded by the Company.

xii. The average expected future duration of the defined benefit plan obligation at the end of the reporting period is 4 years (31 March 22: 5 years).

C. Other long-term employee benefits

The compensated absences for the year ended March 31, 2023 is H 8.87 lakhs. (March 31, 2022 H 215.19 lakhs.) based on acturial basis which is recognised in the statement of profit and loss.

35 Segment Reporting

As permitted by paragraph 4 of Ind AS 108, "Operating Segments", notified under section 133 of the Companies Act, 2013, read together with the relevant rules issued thereunder, if a single financial report contains both consolidated financial statements and the standalone financial statements of the parents, segment information need to be presented only on the basis of the consolidated financial statements. Thus disclosures regarding Operating segment is presented in Consolidated Financial Statements.

36 Contingent liabilities and commitments (to the extent not provided for)
	As at 31 March 2023	As at 31 March 2022
	'' in Lakhs	'' in Lakhs
A Contingent liabilities
(a) Claims against the Company not acknowledged as debts
(i) Direct tax matters*	898.47	-
(ii) Indirect tax matters*	1,825.23	2,561.86
(iii) Other matters **	9,217.48	2,216.44
(b) Guarantees :-
Corporate guarantees given to lenders for financial assistance extended to subsidiaries #	2,511.00	24,591.00
Total	14,452.18	29,369.30

*Direct tax matter comprises of penalty levied in respect of claim of deduction of education cess paid for assessment year 2020-21 and Indirect tax matter comprises of open litigations in respect of Custom duty, Service Tax, Value Added Tax and Goods and Service Tax for various financial years. The above litigation are currently pending with various authorities. Against above litigation, the company has paid tax under protest of H 160.08 lakhs (31 March 2022 : H 241.00 lakhs) to various authorities as at March 31,2023.

** Other matters consist of various civil claims filed against company related to contracts and same are pending before various legal authorities. Pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above as it is determinable only on receipt of judgments/decisions pending with various forums/authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its standalone financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial position. The Company does not expect any reimbursements in respect of the above contingent liabilities.

B Commitments
	As at	As at
	31 March 2023	31 March 2022
	'' in Lakhs	'' in Lakhs
i Estimated amount of contracts remaining to be executed on capital account (net of advances H 152.48 lakhs as at March 31,2023 and H 3,902.00 as at March 31,2022 ) and not provided for	7,041.17	4,084.58
ii Funding commitments in various subsidiaries	2,35,820.00	1,24,657.67

iii The hybrid annuity projects under subsidiary companies has been funded through various credit facility agreements with banks. Against the said facilities availed by the subsidiary companies from the lenders, the Company has executed agreements with respective lenders whereby the Company has committed to hold minimum shareholding and pledge of its holding in the respective subsidiary companies (refer note 5). The Company has also agreed with lender of subsidiaries company for non-disposal undertaking of 21% in (i) Nagaur Mukundgarh Highways Private Limited, (ii) GR Amritsar Bathinda Highway Private Limited, (iii) GR Ludhiana Rupnagar Highway Private Limited, (iv) GR Bandikui Jaipur Highway Private Limited, (v) GR Govindpur Rajora Highway Private Limited, (vi) GR Madanapalli Pileru Highway Private Limited, and (vii) GR Ujjain Badnawar Highway Private Limited apart from share pledged.

H. Terms & Condition with Related Party

iii) Key Managerial Personnel who are under the employment of the Company are not entitled to post employment benefits and other long term employee benefits recognised as per Ind AS 19 - Employee Benefits in the standalone financial statements except "Chief Financial Officer" and "Company Secretary". The Remuneration disclosed above given to "Chief Financial Officer" and "Company Secretary" to short term employee benefits and does not includes post employee benefits as the same is not material and hence not disclosed separately.

There have been no transfers between level 1 and level 2 during the years.

Valuation technique used to determine fair value:

â¢ Inputs included in Level 1 of Fair Value Hierarchy are based on prices quoted in stock exchange and/or NAV declared by the Funds.

â¢ Inputs included in Level 2 of Fair Value Hierarchy have been valued based on inputs from banks and other recognised institutions.

â¢ Inputs included in Level 3 of Fair Value Hierarchy have been valued using acceptable valuation techniques such as Net Asset Value and/or Discounted Cash Flow Method.

Note: All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy described as above, based on the lowest level input that is significant to the fair value measurement as a whole.

The fair values of the financial assets and financial liabilities included in the level 2 category above has been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties.

Inputs included in Level 3 of Fair Value Hierarchy have been valued using acceptable valuation techniques such as Net Asset Value and/or Discounted Cash Flow Method.

44 Financial risk management objectives and policies

The Company''s principal financial liabilities, other than derivatives, comprise of borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations and to provide guarantees to support its operations. The Company''s financial assets comprise mainly of investments, loans, cash and cash equivalents, other balances with banks, loans, trade receivables and other receivables other than derivative that derive directly from its operations. The Company also holds investments in equity instruments and enters into derivative transactions. The Company is exposed to market risk, credit risk and liquidity risk. The Company''s board of directors have overall responsibility for establishment and oversees the Company''s risk management framework. All derivative activities for risk management purposes are carried out by finance team which has appropriate skills, experience and supervision. It is the Company''s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below :

A. Market risk

Market risk is the risk that the fair value of future cash flow of financial instrument will fluctuate because of changes in market prices. Market Risk comprises three types of risk: interest rates risk, currency risk and other price risk, such as equity prices risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, debt and equity investments and derivative financial instruments. The sensitivity analysis in the following sections relate to the position as at 31 March 2023 and 31 March 2022. The sensitivity analysis have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant and on the basis of hedge designations in place at 31 March 2023. The analysis excludes the impact of movements in market variables on the carrying values of gratuity and other post-retirement obligations and provisions.

The following assumptions have been made in calculating the sensitivity analyses:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March 2023 and 31 March 2022."

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest risk of changes in market interest rates relate primarily to the Company''s long-term debt obligations with floating interest rates. While most of long-term borrowings from debenture holders are on fixed rate basis, project specific borrowings primarily consist of floating rate obligations linked to the applicable benchmark rates, which may typically be adjusted at certain intervals in accordance with prevailing interest rates. As at 31 March 2023, approximately 57% of the Company''s borrowings are at fixed rate (31 March 2022: 77%) including borrowings at variable rates hedged by Interest Rate Swaps for fixed rate of interest. Increases in interest rates would increase interest expenses relating to outstanding floating rate borrowings and increase the cost of new debt. In addition, an increase in interest rates may adversely affect ability to service long-term debt and to finance development of new projects, all of which in turn may adversely affect results of operations. The Company seeks to mitigate such risk by maintaining an adequate proportion of floating and fixed interest rate borrowings.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected, after the impact of hedge accounting. The risk estimates provided assume a parallel shift of 100 basis points interest rate across all yield curves while all other variables held constant. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The year end balances are not necessarily representative of the average debt outstanding during the year.

Foreign currency risk

The functional currency of the Company is Indian Rupees ("H"). Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign currency).

Commodity Price Risk

The Company requires materials for construction, operation and maintenance of the projects, such as cement, bitumen, steel and other construction materials. The Company has hedged its commodity risk in respect of aggregates for production of aggregates. The Company is able to manage its exposure to price increases in project materials through bulk purchases and better negotiations. Further, the company has arrangement with its customers to charge price escalation which mitigate any increase in price risk. Hence, the sensitivity analysis is not required.

Equity price risk

The Company''s exposure to price risk in the investment in mutual funds and equity shares arises from investments held by the Company and classified in the balance sheet as fair value through profit or loss including OCI. (refer note 5). The Company manages the equity price risk through diversification and by placing limits on individual and total equity instruments. The Company''s Board of Directors reviews and approves all equity investment decisions. The investments in mutual funds are designated as FVTPL while investment in equity shares are designated as FVOCI.

B. Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk primarily trade receivables, contract assets and other financial assets including deposits with banks. The Company''s exposure and credit ratings of its counterparties are continuously monitored and the aggregate value of transactions is reasonably spread amongst the counterparties. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in note 41.

Trade receivable and contract assets

The Company''s customer profile includes public sector enterprises, state owned companies, group companies and corporates customers. General payment terms include mobilisation advance, monthly progress payments with a credit period ranging from 30 to 90 days. Further, trade receivables include retention money receivable from the customers on expiry of the defect liability period. However, the Company has an option to get the refund of the above receivables if performance bank guarantee is provided. The Company has a detailed review mechanism of overdue customer receivables at various levels within organisation to ensure proper attention and focus for realisation.

Credit risk on trade receivables and contract assets is limited as the customers of the Company mainly consists of the government promoted entities having a strong credit worthiness. The provision matrix takes into account available external and internal credit risk factors such as companies historical experience for customers. The information about movement of impairment allowance due to the credit risk exposure us given in Note 11. The significant change in the balance of trade receivables and contract asset are disclosed in note 47.

Concentration of credit risk

At 31 March 2023, the Company had two customers (31 March 2022: two customers) that accounted for approximately 47% (31 March 2022: 62%) of all the receivables and contract asset outstanding.

Financial instruments and bank deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments. This comprises mainly of deposits with banks, investments in mutual funds and other intercompany receivables. The Company''s maximum exposure to credit risk for the components of the balance sheet at 31 March 2023 and 31 March 2022 is the carrying amounts as illustrated in Note 41.

C. Liquidity risk

45 Capital management

For the purpose of the Company''s capital management, capital includes paid-up equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to ensure that it maintains a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business and maximise shareholder value.

D. Performance obligation

i) Sales of goods :

Performance obligation is satisfied upon delivery of goods. Payment is generally taken in advances or due within 30 to 90 days after delivery of goods.

ii) Sales of Services:

The performance obligation is satisfied over time as the assets is under control of customer and they simultaneously receives and consumes the benefits provided by the Company. The Company received progressive payment toward provision of services.

E. Transaction price allocated to remaining performance obligation

The aggregate amount of transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) as at March 31,2023, is H 19,52,944.64 lakhs (31 March 2022 - H 13,10,390.26 lakhs) and the Company will recognise this revenue as the projects are completed, which is expected to occur over the next 24-30 months.

50 Exceptional item

The company had sold its entire shareholding in two of its subsidiaries i.e. GR Building and Construction Nigeria Limited, Nigeria and G R Infrastructure Limited, Nigeria (collectively referred to as the "Nigerian Subsidiaries") for total consideration amounting to H 22.32 lakhs pursuant to Share Transfer Agreement dated December 19, 2021. The resultant loss of H 308.29 lakhs had been disclosed as exceptional items in these standalone financial statements during the year ended March 31,2022.

51 Assets classified as held for sale

Pursuant to shareholders approval in Annual General Meeting dated August 25, 2022 for the proposed sale and transfer of entire stake of the company in its Seven subsidiaries namely GR Phagwara Expressway Limited, Porbandar Dwarka Expressway Private Limited, GR Gundugolanu Devarapalli Highway Private Limited, GR Akkalkot Solapur Highway Private Limited, Varanasi Sangam Expressway Private Limited, GR Sangli Solapur Highway Private Limited and GR Dwarka Devariya Highway Private Limited to the Bharat Highways InvIT ("the Trust"), subject to regulatory approval, lender''s consent and other applicable approvals, the carrying value of the investments and loans given to these subsidiaries as at Balance sheet date have been classified as assets held for sale in accordance with Ind AS 105 - "Non-Current Assets Held for Sale and Discontinuing Operations". Further, the company is not a sponsor to the trust with effect from December 08, 2022 as per the amended and resultant trust deed on that date.

52 The Indian Parliament has approved the Code on Social Security, 2020 (''Code'') which may likely impact the contributions made by the Company towards Provident Fund and Gratuity. The Company will assess the impact and its evaluation once the corresponding rules are notified and will give appropriate impact in the standalone financial statement in the period in which the Code becomes effective and the related rules are notified.

53 The law enforcement agency had taken into custody two NHAI officials posted at Regional office, Guwahati along with three employees of the company on June 12, 2022 and registered case under the Prevention of Corruption Act, 1988 read with the Indian Penal Code, 1860. Subsequently, all three employees of the Company were released on bail. The Company had received summons to appear before the Ld. Court of Special Judge, CBI, Assam (Ld. Court) on December 30, 2022. The Company has appeared through its authorized representative and received the report along with supporting documents which were filed by CBI under Section 173 of Criminal Procedure Code, 1973 to Ld. Court. Currently matter is sub-judice and pending with Ld. Court.

The management has performed its assessment on the matter and basis of the same, they believe that there would not be any significant impact on the operation and financial position of the Company. As the matter is sub-judice and pending with Ld. Court, any impact of the matter on the standalone financial statements would be depended on conclusion of the matter.

54 Other Statutory Information

(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(iii) The Company have not advanced or loaned or invested funds to any other persons or entities, including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(iv) The Company have not received any fund from any persons or entities, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

55 Previous year figures have been regrouped/reclassified whenever necessary to confirm this year''s classification.

Mar 31, 2022

a) Includes equity component of '' 659.23 lakhs recognized on fair valuation of Non - cumulative redeemable preference instruments of subsidiary company recognized as deemed investment.

b) As on 31 March 2022, actual number of pledged shares was 2,42,54,990, however subsequent to the year end the company has additionally pledged 9,90,010 shares to make the percentage of pledged shares to 51%. Accordingly, the company has disclosed total pledged shares of 2,52,45,000.

c) The company has pledged its investment in equity shares of subsidiaries, in favour of lenders for term loan facilities availed by the respective subsidiary companies.

d) Investment in GR Building and Construction Nigeria Limited, Nigeria and GR Infrastructure Limited, Nigeria has classified as assets held for sale during previous year.

b) For terms and conditions relating to loan to related parties (refer note 38.)

c) Since all loans given by the company are unsecured and considered good, the bifurcation of loans in other categories as required to classified by schedule III of the Companies Act, 2013 viz. Loans Receivables considered good - Secured, Loans Receivables which have significant increase in Credit Risk; and Loans Receivables -credit impaired considered as not applicable to the company and hence not disclosed above.

a) Lien with banks against bank guarantee and performance guarantee

given for the projects 1,552.98 1,559.71

b) There is no amount due from director, other officer of the company or firm in which any director is a partner or private companies in which any director is a director or member at any time during reporting period.

c) The fair value of non current assets is not materially different from the carrying value presented.

d) Above carrying value of receivable are subject to a charge to secure the company''s secured borrowing. (refer note 15).

a) There is no amount due from director, other officer of the company or firm in which any director is a partner or private companies in which any director is a director or member at any time during reporting period.

b) Above carrying value of receivable are subject to a charge to secure the company''s secured borrowing. (refer note 15).

c) There is no impairment allowance for expected credit losses on contract assets.

a) Trade Receivables are non interest bearing and generally have credit period of 30-90 days in case of sale of products. In case of construction contract, payment is generally due upon completion of milestone as per terms of contract.

b) For terms and conditions relating to related party receivables, (refer Note 38)

c) Above carrying value of trade receivable are subject to a charge to secure the company''s secured borrowing. (refer note 15 and 17).

e) The Company applies the expected credit loss (ECL) model for measurement and recognition of impairment losses on trade receivables. The Company follows the simplified approach for recognition of impairment allowance on trade receivables. The application of the simplified approach does not require the Company to track changes in credit risk. Rather, it recognizes impairment allowance based on lifetime ECLs at each reporting date. ECL impairment loss allowance (or reversal) recognized during the period is recognized in the Statement of Profit and Loss. The amount is reflected under the head âOther expensesâ in the Statement of Profit and Loss

* The Company had bought back 2,73,210 equity shares of '' 5 each from its existing shareholders at a buy back price of '' 5 each, resulting into total outflow on account of buy back of '' 13.66 lakhs, pursuant to resolution passed by Board of Directors of the Company on 18th March 2021. The consideration for Buy Back of equity shares was paid on 26th March 2021.

B. Terms/Rights attached to equity shares

The Company has a only one class of equity shares having par value of '' 5 per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees, The dividend proposed by board of directors is subject to the approval of the shareholders in the annual general meeting.

C. Employee stock options

(i) Pursuant to a special resolution passed by the Shareholders at the Extra Ordinary General Meeting held on 27 August 2011, the Company intends to adopt the Employee Stock Option Scheme titled ''G R Infraprojects Employee Stock Option Plan'' (''the Plan'') for employees, including the eligible Directors of the Company, which are in the permanent employment of the Company or its subsidiaries (''Covered Employees'') at the time the grant was made under the Plan. The total number of equity shares reserved under the said plan was 2,486,212 equity shares of '' 5 each, fully paid for which exercise price had not been determined. No equity shares had

been granted under the Plan from the date of the aforesaid resolution till March 18, 2021. The Company had formed a trust and issued shares to that Trust. Accordingly the same was considered as treasury shares and had been eliminated from equity share capital in accordance with requirement of Ind AS 32 âFinancial instruments: Presentationâ. The Company had brought back these equity shares, pursuant to resolution passed by Board of Directors of the Company on 18th March 2021.

(ii) Pursuant to a special resolution passed by the Shareholders at the Annual General Meeting held on 27 September 2021, the Company intends to adopt the Employee Stock Option Scheme titled ''G R Infraprojects Limited Employees Stock Option Scheme - 2021''(the scheme) for employees which are in the employment of the Company, its subsidiaries or associate company or group company, including the eligible Directors of the Company, at the time the grant is made under the Plan. The maximum number of Options that may be granted pursuant to this Scheme shall not exceed 1% of the paid up capital of the Company as on March 31, 2021, comprising 9,66,890 Options which shall be convertible into equal number of shares. Under this Scheme, the exercise price for Options shall not be less than the face value and shall not be more than fair market value (FMV) of an equity share of the company at the time of grant of option as determined by the nomination and remuneration committee from time to time after complying the condition as mentioned in the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. No equity shares have been granted under the Plan from the date of the aforesaid resolution till the date of the balance sheet

F. Aggregate number of shares issued for consideration other than cash during the period of five years immediately preceding the reporting date:

(i) Issue of Bonus Shares : The Company has issued 24,240,555 equity shares as bonus in ratio of 1:1 on 18 June 2016, by capitalisation of securities premium.

(ii) Issue of Preference Shares : The Holding Company has issued 4,121,907 9.50% non-convertible preference shares of face value '' 10 each on 12 March 2018 by virtue of final order from Hon''ble National Company Law Tribunal (âthe Schemeâ), Ahmedabad dated 22 February 2018 approving amalgamation between GR Infratech Private Limited (âTransferor Companyâ) and G R Infraprojects Limited (âTransferee Companyâ). These 9.50% Non-Convertible Preference Shares were redeemed on 17 March 2018

# Securities Premium has been debited to the extent of '' 62.15 lakhs which represents the face value of fully paid bonus shares issued by the Company from securities premium in earlier years to the ESOP trust. This reduction in Securities Premium was not recognised in the financial statements earlier as these were considered to be treasury shares and accordingly netted off from issued share capital. The said shares have been bought back in the previous years and hence the utilisation of securities premium had been re-instated.

Notes : -

i) Securities premium

ii) capital redemption reserve

The reserve has been created on redemption of redeemable preference shares in accordance with the subsection (2) of section 55 of the Companies Act, 2013. The reserve can be utilised in accordance with provisions of the Companies Act, 2013. During the previous year, the Company has transferred amount from security premium as results of brought back of 2,486,212 equity shares from G R Infraprojects Employees Welfare Trust (formed by the company for employee stock option) and 273,210 equity shares form its existing shareholders pursuant to resolution passed by Board of Directors of the Company on March 18, 2021. (refer note 13)

iii) Equity instruments through OCI

The company has elected to recognise changes in fair value of certain investment in equity securities in other comprehensive income. These changes are accumulated within the equity instruments through other comprehensive income within equity. The company transfers amount from this reserve to retained earnings when relevant securities are derecognised.

iv) Retained earnings

Retained earnings represents the profit that the company earn till date, less re-measurement gain (loss) of defined benefit plans and can be distributed by the Company as dividends considering the requirements of the Companies'' Act, 2013.

i) Term loans from banks in Indian rupees are secured by:

(a) Subservient charge over current assets

(b) Charge over bank deposits / cash deposits

(c) Unconditional, irrevocable and continuing personal guarantee from Mr. Vinod Kumar Agarwal, Mr. Purshottam Agarwal and Mr. Ajendra Kumar Agarwal, being the Guarantor

ii) Term loans from banks in foreign currency are secured by:

(a) Hypothecation of first pari passu charge on all moveable fixed assets of the company

(b) Unconditional, irrevocable and continuing personal guarantee from Mr. Vinod Kumar Agarwal and Mr. Purshottam Agarwal

iii) Redeemable non-convertible debentures are secured by:

(b) a first ranking charge, created by way of mortgage over immovable property of the company.

(c) Unconditional, irrevocable and continuing personal guarantee from Mr. Vinod Kumar Agarwal and Purshottam Agarwal, being the Guarantors.

iv) Unsecured debentures of '' 33,031.95 are covered by way of Unconditional, irrevocable and continuing personal guarantee of Mr. Vinod Kumar Agarwal and Mr. Ajendra Kumar Agarwal.

vi) Debt Covenants:

The Company has satisfied all the debts covenants prescribed in the terms of respective loan/debenture agreement as at reporting date. The company has not defaulted in any loans/debenture payable.

vii) Undrawn borrowing facility

The company has availed of undrawn committed borrowing facilities (excluding non-fund based facilities) towards future projects to be executed by the Company is '' 35,000 lakhs (31 March 2021''21,639.21 lakhs).

viii) The company has complied with charges or satisfactions of charges registered with the registrar of companies (ROC) within the time limit defined in the Companies Act.

i) Working capital demand loan is secured by hypothecation of all present as well as future current assets including inventories, trade receivables, etc. excluding work in progress (real estate) and charge against immovable properties to the extent of 10% of total working capital limits sanctioned under Consortium.

Security to the lenders also include:

1. Unconditional, irrevocable and continuing personal guarantee of Mr. Vinod Kumar Agarwal and Mr. Ajendra Kumar Agarwal for the value of the outstanding limits where personal guarantee is provided.

2. Unconditional, irrevocable and continuing personal guarantee of Mr. Purshottam Agarwal for outstanding value of the term loans where guarantee is provided & for working capital limits to the value of the property mortgaged and Mr. Mahendra Kumar Agarwal only to the value of the property mortgaged.

3. Corporate Guarantee of the following relating company to the extent of the value of the property mortgaged:-

A. Jasamrit Premises Private Limited

B. Grace Buildhome Private Limited

C. Gumaniram Agarwal Contractors Private Limited

D. Lokesh Builders Private Limited

E. Rahul Infrastructure Private Limited

The loan repayable on demand with interest rate ranging from 3.29%to 7.05% p.a.

ii) Unsecured working capital demand loan repayable on between 3 to 6 equal instalments with interest rate of 4.25%-5.00% p.a. The said loan has been fully repaid during the year.

iii) Inter-corporate loan from others are interest free and repayable on demand.

iv) The quarterly returns/statements filed by the Company with the banks and financial institutions are in agreement with the books of accounts of the Company.

The disclosure in respect of the amount payable to enterprises which have provided goods and services to the Company and which qualify under the definition of micro and small enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006 has been made in the standalone financial statements as at the reporting date based on the information received and available with the Company. This has been relied upon by the auditors.

a) Impact of tax ordinance

On 20 September 2019, the Government of India had brought in the Taxation Laws (Amendment) Ordinance 2019 to make certain amendments in the Income Tax Act, 1961 (''the Act'') and the Finance (No.2) Act, 2019. The ordinance was promulgated by the President of India to effect tax reforms announced by the Government. Key amendments are summarized as follows:

âTax concession for domestic companies (âNew Tax Regimeâ): A new section 115BAA was introduced w.e.f. Financial Year (FY) 2019-20 (Assessment Year (AY) 2020-21 to provide an option for concessional tax at the rate of 25.17% (inclusive of surcharge and cess) in case of a domestic company.â

The amendment to the Income Tax Act states that the option to adopt the New Tax Regime is to be exercised by the person in the prescribed manner on or before the due date specified under sub-section (1) of section 139 for furnishing the returns of income for any previous year relevant to the assessment year commencing on or after the 1st day of April 2020 and such option once exercised shall apply to all subsequent assessment years.

Impact on the Company

At the time of finalizing the financial statements for the year ended 31 March 2020, the Management had estimated the adoption of New Tax Regime from the financial year 2021-22 and accordingly, Tax expenses for the year ended 31 March 2020 reflect the impact of expected adoption of this option by the Company basis the Management''s internal evaluation.

However, during year ended 31 March 2021, the management observed that the tax liability under the Old Tax Regime may be higher as compared and the New Tax Regime would be more beneficial and therefore, the Company decided to compute tax liability under the New Tax Regime for the year ended 31 March 2021. Accordingly, tax expenses for the year ended 31 March 2021 include reversal of deferred tax liability of ''1,394.72 lakhs and reversal of MAT credit amounting to '' 3,222.67 lakhs (net deferred tax charge of '' 1,827.95 Lakhs).

34 DISCLOSURE AS REQUIRED BY IND AS -19 EMPLOYEE BENEFITS:

A. Defined Contribution Plan:

The Company operates defined contribution plan in the form of provident and other funds. The Company has no obligation, other than the contribution payable to the provident and other funds. The Company recognizes contribution payable to the provident and other funds as an expenses in statement of profit and loss, when an employee renders the related services.

B. Defined Benefits Plans:

The Company operates a defined benefit plan (the gratuity plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and tenure of employment. The scheme is funded with the HDFC Standard Life Insurance Company Limited, SBI life Insurance Company Limited and Life Insurance Corporation (LIC) in form of a Group Gratuity Policy. The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of services is entitled to specific benefit. The level of benefits provided depends on the member''s length of service and salary at retirement age.

ix. Asset Liability Matching Strategies

The Company has purchased insurance policy, which is basically a year-on-year cash accumulation plan in which the interest rate is declared on yearly basis and is guaranteed for a period of one year. The insurance Company, as part of the policy rules, makes payment of all gratuity outgoes happening during the year (subject to sufficiency of funds under the policy). The policy, thus, mitigates the liquidity risk. However, being a cash accumulation plan, the duration of assets is shorter compared to the duration of liabilities. Thus, the Company is exposed to movement in interest rate (in particular, the significant fall in interest rates, which should result in a increase in liability without corresponding increase in the asset).

xii. The average future duration of the defined benefit plan obligation at the end of the reporting period is 5 years (31 March 21: 5 years).

C. Other long-term employee benefits

The compensated absences expenses for the year ended March 31, 2022 is '' 215.19 lakhs.(March 31, 2021''391.98) lakhs based on acturial basis which is recognised in statement of profit and loss.

35 SEGMENT REPORTING

As permitted by paragraph 4 of Ind AS 108, âOperating Segmentsâ, notified under section 133 of the Companies Act, 2013, read together with the relevant rules issued thereunder, if a single financial report contains both consolidated financial statements and the Separate financial statements of the parents, segment information need to be presented only on the basis of the consolidated financial statements. Thus disclosures regarding Operating segment is presented in Consolidated Financial Statements.

36 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR) A contingent liabilities '' in Lakhs
particulars	As at 31 march 2022	As at 31 march 2021
(a) claims against the company not acknowledged as debts
(i) Indirect tax matters¹	2,561.86	2,588.92
(ii) Other matters ²	2,216.44	2,562.12
(b) guarantees :-
Corporate guarantees given to lenders for financial assistance extended to subsidiaries #	24,591.00	26,874.80
Total	29,369.30	32,025.84

B Commitments		'' in Lakhs
Particulars	As at 31 March 2022	As at 31 March 2021
i Estimated amount of contracts remaining to be executed on capital account (net of advances '' 3,902.00 lakhs as at March 31, 2022 and '' 3,137.97 as at March 31, 2021) and not provided for	4,084.58	14,157.25
ii Funding commitments in various subsidiaries	1,24,657.67	1,30,505.99

iii The HAM projects under subsidiary companies has been funded through various credit facility agreements with banks. Against the said facilities availed by the subsidiary companies from the lenders, the Company has executed agreements with respective lenders whereby the Company has committed to hold minimum shareholding and pledge of its holding in the respective subsidiary companies (refer note 5). The Company has also agreed with lender of subsidiaries company for non-disposal undertaking of 21% in (i) Nagaur Mukundgarh Highways Private Limited, (ii) GR Amritsar Bathinda Highway Private Limited, and (iii) GR Ludhiana Rupnagar Highway Private Limited apart from share pledged._

H. Terms & Condition with Related Party

iii) Key Managerial Personnel who are under the employment of the Company are not entitled to post employment benefits and other long term employee benefits recognised as per Ind AS 19 - Employee Benefits in the standalone financial statements except âChief Financial Officerâ and âCompany Secretaryâ. The Remuneration disclosed above given to âChief Financial Officerâ and âCompany Secretaryâ is mainly related to short term employee benefits and does not includes post employee benefits as the same is not material and hence not disclosed separately.

iv) The loans given to subsidiaries companies is based on business needs of the subsidiaries companies in accordance with Loan agreements of the respective entities. The loan carries interest rate of 9%.

i) The carrying amount of financial assets and financial liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

ii) The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

There have been no transfers between level 1 and level 2 during the years.

Valuation technique used to determine fair value:

â¢ Inputs included in Level 1 of Fair Value Hierarchy are based on prices quoted in stock exchange and/or NAV declared by the Funds.

â¢ Inputs included in Level 2 of Fair Value Hierarchy have been valued based on inputs from banks and other recognised institutions.

â¢ Inputs included in Level 3 of Fair Value Hierarchy have been valued using acceptable valuation techniques such as Net Asset Value and/or Discounted Cash Flow Method.

Note: All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy described as above, based on the lowest level input that is significant to the fair value measurement as a whole.

The fair values of the financial assets and financial liabilities included in the level 2 category above has been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties.

44 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s board of directors have overall responsibility for establishment and oversees the Company''s risk management framework. All derivative activities for risk management purposes are carried out by finance team which has appropriate skills, experience and supervision. It is the Company''s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

A. Market risk

The sensitivity analyses in the following sections relate to the position as at 31 March 2022 and 31 March 2021.

The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant and on the basis of hedge designations in place at 31 March 2022. The analysis excludes the impact of movements in market variables on the carrying values of gratuity and other post-retirement obligations and provisions.

the following assumptions have been made in calculating the sensitivity analyses:

â¢ The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March 2022 and 31 March 2021.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest risk of changes in market interest rates relate primarily to the Company''s long-term debt obligations with floating interest rates. While most of long-term borrowings from debenture holders are on fixed rate basis, project specific borrowings primarily consist of floating rate obligations linked to the applicable benchmark rates, which may typically be adjusted at certain intervals in accordance with prevailing interest rates. As at 31 March 2022, approximately 89% of the Company''s borrowings are at fixed rate (31 March 2021: 77%) including borrowings at variable rates hedged by Interest Rate Swaps for fixed rate of interest. Increases in interest rates would increase interest expenses relating to outstanding floating rate borrowings and increase the cost of new debt. In addition, an increase in interest rates may adversely affect ability to

Interest rate sensitivity

Foreign currency risk

The functional currency of the Company is Indian Rupees (ââ''ââ). Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign currency).

Commodity Price Risk

The Company requires for implementation (construction, operation and maintenance) of the projects, such as cement, bitumen, steel and other construction materials. The Company has hedged its commodity risk in respect of aggregates for production of aggregates. The Company is able to manage its exposure to price increases in project materials through bulk purchases and better negotiations. Hence, the sensitivity analysis is not required.

Equity price risk

The Company''s exposure to price risk in the investment in mutual funds and equity shares arises from investments held by the Company and classified in the balance sheet as fair value through profit or loss including OCI. (refer note 5). The Company manages the equity price risk through diversification and by placing limits on individual and total equity instruments. The Company''s Board of Directors reviews and approves all equity investment decisions.

The investments in mutual funds and preference instruments are designated as FVTPL while investment in equity shares are designated as FVOCI.

Equity price sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in Investment in mutual funds, preference instruments and equity price.

B. Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk primarily trade receivables and other financial assets including deposits with banks. The Company''s exposure and credit ratings of its counterparties are continuously monitored and the aggregate value of transactions is reasonably spread amongst the counterparties. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in note 41.

Trade receivable and contract assets

The Company''s customer profile includes public sector enterprises, state owned companies, group companies and corporates customers. General payment terms include mobilisation advance, monthly progress payments with a credit period ranging from 30 to 90 days. Further, trade receivables include retention money receivable from the customers on expiry of the defect liability period. However, the Company has an option to get the refund of the above receivables if performance bank guarantee is provided. The Company has a detailed review mechanism of overdue customer receivables at various levels within organisation to ensure proper attention and focus for realisation.

The information about movement of impairment allowance due to the credit risk exposure us given in Note 11.

The significant change in the balance of trade receivables and contract asset are disclosed in note 47.

Concentration of credit risk

At 31 March 2022, the Company had two customers (31 March 2021: three customers) that accounted for approximately 62% (31 March 2021: 55%) of all the receivables and contract asset outstanding.

Financial instruments and bank deposits

This comprises mainly of deposits with banks, investments in mutual funds and other intercompany receivables. The Company''s maximum exposure to credit risk for the components of the balance sheet at 31 March 2022 and 31 March 2021 is the carrying amounts as illustrated in Note 41.

C. Liquidity risk

45 CAPITAL MANAGEMENT

For the purpose of the Company''s capital management, capital includes paid-up equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to ensure that it maintains a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business and maximise shareholder value.

D. Performance obligation

i) Sales of goods :

Performance obligation is satisfied upon delivery of goods. Payment is generally taken in advances or due within 30 to 90 days after delivery of goods

ii) Sales of Services:

The performance obligation is satisfied over time as the assets is under control of customer and they simultaneously receives and consumes the benefits provided by the Company. The Company received progressive payment toward provision of services.

E. Transaction price allocated to remaining performance obligation

The aggregate amount of transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) as at March 31, 2022, is '' 13,10,390.26 lakhs (31 March 2021 - '' 16,98,732.62 lakhs) and the Company will recognise this revenue as the projects are completed, which is expected to occur over the next 24-30 months.

Applying the practical expedient in paragraph 94 of Ind AS 115, the Company recognises the incremental costs of fulfilling contracts as an expense when incurred if the amortisation period of the assets that the company otherwise would have recognised is one year or less.

The joint venture agreements related to above joint operations require unanimous consent from all parties for relevant activities. The partners have direct rights to the assets of joint arrangement and are jointly and severally liable for the liabilities incurred by joint arrangement. Thus, the above entities are classified as joint operation and the Company recognises its direct right to the jointly held assets, liabilities, revenue and expenses.

49 EXCEPTIONAL ITEM

During the year, pursuant to Share Transfer Agreement dated December 19, 2021, the company has sold its entire shareholding in two of its subsidiaries i.e. GR Building and Construction Nigeria Limited, Nigeria and G R Infrastructure Limited, Nigeria (collectively referred to as the âNigerian Subsidiariesâ) for total consideration amounting to '' 22.32 lakhs. The resultant loss of '' 308.29 lakhs has been disclosed as exceptional items in these standalone financial statements.

50 The Company has completed Initial Public Offer (âIPOâ) through an offer for sale of 11,508,704 Equity Shares of the face value of '' 5 each at an issue price of '' 837 per equity share. The equity shares of the Company were listed on BSE Limited (âBSEâ) and National Stock Exchange of India Limited (âNSEâ) on 19 July 2021. The total offer expenses has been recovered by the Company from the selling shareholders as defined in the Prospectus.

51 The Indian Parliament has approved the Code on Social Security, 2020 (''Code'') which may likely impact the contributions made by the Company towards Provident Fund and Gratuity. The Company will assess the impact and its evaluation once the corresponding rules are notified and will give appropriate impact in the audited standalone financial statement in the period in which the Code becomes effective and the related rules are notified.

52 The Company has assessed the possible impact of COVID-19 pandemic on its business operations, liquidity position and recoverability of its asset balances as at March 31, 2022 based on the internal and external sources of information upto the date of approval of these audited standalone financial statement. Also, the management does not see any risks in the Company''s ability to continue as a going concern and meeting its liabilities as and when they fall due. The Company has adequate funds and/or unutilized fund-based credit facilities available, to take care of any urgent requirement of funds. Accordingly, the Company believes that there is no material impact of Covid 19 on these audited standalone financial statement. The final impact of COVID-19 may be different from that estimated as at the date of approval of these audited standalone financial statement and hence management will continue to monitor any material changes to the future economic conditions.

53 OTHER STATUTORY INFORMATION

(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company do not have any transactions with companies struck off.

(iii) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

(iv) The Company have not advanced or loaned or invested funds to any other persons or entities, including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(v) The Company have not received any fund from any persons or entities, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(vi) The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

54 Previous year figures have been regrouped/reclassified whenever necessary to confirm this year''s classification. The financial statements for the previous year were audited by a firm of Chartered Accountants other than S R B C & Co. LLP.

As per our report of even date

Pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above as it is determinable only on receipt of judgments/decisions pending with various forums/authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its standalone financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial position. The company has paid under protest of '' 241.00 lakhs to various authorities against above litigations.

Other matters consist of various civil claim filed against company related to construction contracts and same are pending before various legal authorities. The management does not expect any material adverse effect on its financial position

# The company has provided corporate guarantee to the lenders of the subsidiaries company to make good the shortfall, if any, between the secured obligations of the subsidiary company i.e. âNagaur Mukundgarh Highways Private Limitedâ and âGR Ena Kim Expressway Private Limitedâ (refer note 38)

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