Auditor Report of HG Infra Engineering Ltd.

Mar 31, 2025

We have audited the accompanying standalone financial
statements of H.G. Infra Engineering Limited which
includes one jointly controlled operation consolidated
on a proportionate basis (herein after referred to as
“the Company”) (Refer Note 52 to standalone financial
statements), which comprises the Standalone Balance
Sheet as at March 31, 2025, Standalone Statement of
Profit and Loss (including Other Comprehensive Income),
Standalone Statement of Changes in Equity and Standalone
Statement of Cash Flows for the year then ended, and
notes to the standalone financial statements, including
material accounting policies and other explanatory
information (hereinafter referred to as the “standalone
financial statements”).

In our opinion and to the best of our information and
according to the explanations given to us, and based on
the consideration of report of other auditor on separate
audited financial information of jointly controlled
operation, the aforesaid standalone financial statements
give the information required by the Companies Act,
2013 (“the Act”) in the manner so required and give a true
and fair view in conformity with the Indian Accounting
Standards prescribed under Section 133 of the Act read
with Companies (Indian Accounting Standards) Rules,
2015, as amended (“Ind AS”) and other accounting
principles generally accepted in India, of the state of
affairs of the Company as at March 31, 2025, and its total
comprehensive income (comprising of profit and other

comprehensive income), its changes in equity and its cash
flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial
statements in accordance with the Standards on Auditing
(SAs) specified under Section 143(10) of the Act.
Our responsibilities under those Standards are further
described in the ‘Auditor’s Responsibilities for the
Audit of the Standalone Financial Statements’ section
of our report. We are independent of the Company in
accordance with the Code of Ethics issued by the Institute
of Chartered Accountants of India (“ICAI”) together with
the ethical requirements that are relevant to our audit of
the standalone financial statements under the provisions
of the Act and the Rules thereunder, and we have fulfilled
our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe
that the audit evidence obtained by us and by other
auditors referred to in the “Other Matters” paragraph
below is sufficient and appropriate to provide a basis
for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
standalone financial statements for the year ended March
31, 2025. These matters were addressed in the context
of our audit of the standalone financial statements as a
whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters. We have
determined the matters described below to be the key
audit matters to be communicated in our report.

Key Audit Matter

Our audit procedures in respect of this area included the following:

1. Estimation of contract cost and revenue recognition. (Refer to Note 1 (iv) (i), 2 (d), 29 and 53) of the Standalone Financial Statements) Revenue from construction contracts is recognised over a period of time in accordance with the requirements of Ind AS 115, ‘Revenue from Contracts with Customers’. The contract revenue amounts to H 59,961.84 Million for engineering, procurement and construction contracts, which usually extends over a period of 2-3 years, and the contract prices are fixed and, in few cases, subject to clauses with price variances and variable consideration.

i. Evaluated the accounting policy for revenue recognition and assessed compliance of the policy with the principles enunciated under Ind AS 115 - ‘Revenue from Contracts with Customer’. ii. Understood and evaluated the design and implementation and tested the operating effectiveness of key internal financial controls, including those related to review and approval of estimated costs and review of provision for foreseeable losses, if any, by the authorised representatives.

Key Audit Matter	Our audit procedures in respect of this area included the following:
In accordance with Input method prescribed under Ind	iii. We obtained the revenue workings (percentage
AS 115, the contract revenue is measured based on the		of completion calculations) from the Company’s
proportion of contract costs incurred for work performed		management, for all contracts, containing actual costs
to date relative to the estimated total costs. This method		incurred, estimated costs (comprising of actual costs
requires the Company to perform an initial assessment		and remaining costs to completion), estimated contract
of total estimated cost and reassess the total construction		revenue and actual revenues recognised during the year
cost at the end of each reporting period to determine the		based on proportion of actual costs to estimated costs.
appropriate percentage of completion.		For sample of contracts, we agreed contract revenue
The estimation of total cost to complete the contract		with key contractual terms, agreed actual costs with
involves significant judgement and estimation throughout		system generated reports and agreed estimated costs
the period of contract, as it is subject to revision as the		with costs sheets for individual contracts approved
contract progresses - based on latest available information		by the authorised representatives. Reperformed the
including physical work done on the ground, changes in		calculation of revenues during the year using proportion
cost estimates and need to accrue provision for onerous		of actual costs to estimated costs and compared the
contracts, if any. Besides recognition of revenues based		results with workings provided by the Company.
on actual costs and estimated costs to complete the work,	iv.	For actual costs incurred during FY 2024-25,
at the period end, the measurement and recognition of		we tested the samples to appropriate supporting
contract assets (unbilled revenue) and contract liabilities		documents.
(unearned revenue) related to each of the contracts is also	v.	To validate the remaining costs to completion,
dependent on cost estimates.		for sample contracts, we obtained the approved
In view of above, we have considered the estimation of		costs sheets (for each of such sample contracts)
construction contract costs as a key audit matter.		containing the breakdown of such costs. Evaluated the reasonableness of management’s judgements and assumptions through comparison of actual margins during the year with base margins estimated at the beginning, comparison between financial progress (proportion of actual costs to estimated costs) and physical progress certified by the Independent Engineer, past trends of recovery of price escalation with incremental costs incurred and comparison of actual costs within similar contracts.
	vi.	Assessed the adequacy and appropriateness of the disclosures made in standalone financial statements in compliance with the requirements of Ind AS 115.
2. Valuation of accounts receivable and contract assets	i.	Understood and evaluated the design and tested the
in view of risk of credit losses. (Refer Note 1 (ix),		operating effectiveness of key internal financial
40(i), 7, and 11 - Trade Receivables and Note 16(a) for		controls in relation to determination of expected
Contract Asset to Standalone Financial Statements)		credit loss.
Accounts receivable and Contract assets are significant	ii.	Obtained confirmation from parties, for sample
items in the Company’s standalone financial statements		balances, with respect to outstanding balances.
aggregating to H 27,868.07 Million as of March 31, 2025		Wherever confirmations are not received for the
and provision for impairment of receivables and contract		samples, performed alternate procedures through
assets amounted to H 631.98 Millions as at March 31, 2025.		verification of Company’s invoices approved
The Company has a concentration of credit exposure on		by the respective customers which represents
certain customers, which include government and private		acknowledgement of work delivered.
organisations, where there are delays in collections due to	iii.	Performed inquiry procedures with senior
various reasons.		management of the Company regarding status of collectability of the receivable and contract assets.

Key Audit Matter	Our audit procedures in respect of this area included the following:
The management periodically assess the adequacy of	iv.	In respect of material contract balances, corroborated
provisions recognised, as applicable, on receivables		our inquiry procedures with the correspondence
and contract assets, based on factors such as credit risk		between the Company and the customers, contracts
of the customer, status of the project, discussions with		and other documents.
the customers and underlying contractual terms and	v.	Assessed the inputs used by the Management to
conditions. This involves significant judgement.		determine the amount of allowances by considering
Given the relative significance of these receivables and		factors such as credit risk of the customer, cash
contract assets to the standalone financial statements		collections, past history and status of the project,
and the nature and extent of audit procedures involved		and correspondence with customers.
to assess the recoverability of receivables and contract	vi.	Presented the results of our audit procedures to the
assets, we determined this to be a key audit matter.		audit committee.
	vii.Assessed the adequacy and appropriateness of
		the disclosures made in the standalone financial statements in this regard.

Information Other than the Standalone
Financial Statements and Auditor’s Report
Thereon

The Company’s Management and Board of Directors
are responsible for the other information. The other
information comprises the information included in
the annual report, but does not include the financial
statements and auditor’s report thereon. The annual report
is expected to be made available to us after the date of this
auditor''s report.

Our opinion on the standalone financial statements does
not cover the other information and we do not express
any form of assurance conclusion thereon.

In connection with our audit of the standalone financial
statements, our responsibility is to read the other
information identified above when it becomes available
and, in doing so, consider whether the other information
is materially inconsistent with the standalone financial
statements, or our knowledge obtained in the audit or
otherwise appears to be materially misstated.

When we read the annual report, if we conclude that there
is a material misstatement therein, we are required to
communicate the matter to those charged with governance
and describe actions applicable under the applicable laws
and regulations.

Responsibilities of Management and Board
of Directors for the standalone financial
statements

The Company’s Management and Board of Directors are
responsible for the matters stated in Section 134(5) of the
Act with respect to the preparation of these standalone
financial statements that give a true and fair view of
the financial position, financial performance and other

comprehensive income, changes in equity and cash
flows of the Company in accordance with the accounting
principles generally accepted in India, including the
Indian Accounting Standards (“IND AS”) specified
under Section 133 of the Act. This responsibility also
includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding
of the assets of the Company and for preventing and
detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making
judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness
of the accounting records, relevant to the preparation
and presentation of the standalone financial statement
that give a true and fair view and are free from material
misstatement, whether due to fraud or error.

In preparing the standalone financial statements, the
Management and Board of Directors are responsible for
assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting
unless the Board of Directors either intends to liquidate
the Company or to cease operations, or has no realistic
alternative but to do so. The Board of Directors are also
responsible for overseeing the Company’s financial
reporting process.

Auditor’s Responsibilities for the Audit of the
Standalone Financial Statements

Our objectives are to obtain reasonable assurance about
whether the standalone financial statements as a whole
are free from material misstatement, whether due to fraud
or error, and to issue an auditor’s report that includes

our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted
in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the
basis of these standalone financial statements.

We give in “Annexure A” a detailed description of
Auditor’s responsibilities for Audit of the standalone
financial statements.

Other Matter

We did not audit the financial information of one jointly
controlled operation (dissolved w.e.f January 9, 2025)
included in the standalone financial statements of the
Company, whose financial statements reflect total
revenues of H 0.04 Million, total net profit/(loss) after
tax of H (0.04) Million and total comprehensive income
of H (0.04) Million for the period ended April 1, 2024
to January 9, 2025 (being its date of dissolution), and
cash flows (net) of H 0.48 Million for the period then
ended. The financial information of this jointly controlled
operation has been audited by other auditor whose report
has been furnished to us by the Management, and our
opinion on the standalone financial statements (including
other information) in so far relates to the amounts and
disclosures included in respect of this jointly controlled
operation, is based solely on the report of other auditor.

Our opinion is not modified in respect of the above matter
with respect to our reliance on the work done and the
reports of the other auditors.

Report on Other Legal and Regulatory
Requirements

1. As required by the Companies (Auditor’s Report)
Order, 2020 (“the Order”), issued by the Central
Government of India in terms of Sub-Section (11)
of Section 143 of the Act, we give in “Annexure B”
a statement on the matters specified in paragraphs 3
and 4 of the Order, to the extent applicable.

2. A. As required by Section 143(3) of the Act,

we report that:

(a) We have sought and obtained all the
information and explanations which to
the best of our knowledge and belief were
necessary for the purposes of our audit.

(b) In our opinion, proper books of account
as required by law have been kept by the

Company so far as it appears from our
examination of those books, except for the
matters stated in

i. in paragraph 2B(f) below on reporting
under Rule 11(g); and

ii. In our opinion, proper books of account
as required by law have been kept by
the Company so far as it appears from
our examination of those books except
that back-up of the books of account
and other books and papers maintained
in electronic mode, has not been kept
in servers physically located in India
on a daily basis as the backup server
is outside India.

(c) The Standalone Balance Sheet, the
Standalone Statement of Profit and Loss
(including Other Comprehensive Income),
the Statement of Changes in Equity and
the Statement of Cash Flow dealt with
by this Report are in agreement with the
books of account.

(d) In our opinion, the aforesaid standalone
financial statements comply with the
Indian Accounting Standards specified
under Section 133 of the Act.

(e) On the basis of the written representations
received from the directors as on March
31, 2025 taken on record by the Board
of Directors, none of the directors are
disqualified as on March 31, 2025 from
being appointed as a director in terms of
Section 164 (2) of the Act.

(f) With respect to the adequacy of the
internal financial controls with reference
to standalone financial statements of the
Company and the operating effectiveness
of such controls, refer to our separate
Report in “Annexure C”.

(g) The reservation relating to the maintenance
of accounts and other matters connected
therewith are as stated in paragraph 2A(b)
above on reporting under Section 143(3)

(b) and paragraph 2B(f) below on reporting
under Rule 11(g).

B. With respect to the other matters to be
included in the Auditor’s Report in accordance
with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014, in our opinion and to

the best of our information and according to the

explanations given to us:

(a) The Company has disclosed the impact of
pending litigations on its financial position
in its standalone financial statements
- Refer Note 47 to the standalone
financial statements;

(b) The Company has long-term contracts for
which there were no material foreseeable
losses as at March 31, 2025. Refer
note 16(a) to the standalone financial
statements. Further, the Company did not
have any outstanding derivative contracts
as at March 31, 2025;

(c) There were no amounts which were required
to be transferred to the Investor Education
and Protection Fund by the Company
during the year ended March 31, 2025.

(d) 1 The Management has represented

that, to the best of its knowledge and
belief, no funds have been advanced
or loaned or invested (either from
borrowed funds or share premium
or any other sources or kind of
funds) by the Company to or in any
other persons or entities, including
foreign entities (“Intermediaries”),
with the understanding, whether
recorded in writing or otherwise,
that the Intermediary shall, directly
or indirectly lend or invest in other
persons or entities identified in
any manner whatsoever (“Ultimate
Beneficiaries”) by or on behalf of the
Company or provide any guarantee,
security or the like on behalf of the
Ultimate Beneficiaries;

2 The Management has represented, that,
to the best of its knowledge and belief,
no funds have been received by the
Company from any persons or entities,
including foreign entities (“Funding

Parties”), with the understanding,
whether recorded in writing or
otherwise, as on the date of this
audit report, that the Company shall,
directly or indirectly, lend or invest
in other persons or entities identified
in any manner whatsoever (“Ultimate
Beneficiaries”) by or on behalf of
the Funding Party or provide any
guarantee, security or the like on
behalf of the Ultimate Beneficiaries.

3 Based on the audit procedures
performed that have been considered
reasonable and appropriate in the
circumstances, and according to
the information and explanations
provided to us by the Management in
this regard, nothing has come to our
notice that has caused us to believe that
the representations under sub-clause
(i) and (ii) of Rule 11(e) as provided
under (1) and (2) above, contain any
material mis-statement.

(e) The dividend declared and paid during the
year by the Company is in compliance with
Section 123 of the Act.

(f) Based on our examination which
included test checks, the Company has
used a software and certain SAAS based
applications (related to processing of leave
and travel related data of employees, vendor
registration and inviting quotations for few
materials to be procured or scrapped) for
maintaining its books of accounts. The
software has a feature of recording audit
trail (edit log) facility, except that audit
trail feature was not enabled throughout
the year for certain relevant tables and
also, was not enabled at the database level
to log any direct changes. Also, we were
not able to verify this aspect in SAAS
based applications as no underlying
evidence, related to audit trail (edit log)

been preserved by the Company as per the
statutory requirements for record retention
to the extent it was enabled and recorded in
respective years.

facility, could be arranged by the Company
from the service providers who manage
these applications.

Further, wherever enabled, the audit
trail feature has operated for the relevant
transactions recorded in the software.
Also, during the course of our audit, we
did not come across any instance of the
audit trail feature being tampered with,
in respect of such software. Additionally,
the audit trail feature of previous year has

C. In our opinion, according to information and
explanations given to us, the remuneration paid
and provided by the Company to its directors
during the current year is within the limits
laid prescribed under Section 197 read with
Schedule V of the Act and the rules thereunder.

For M S K A & Associates For Shridhar & Associates

Chartered Accountants Chartered Accountants

ICAI Firm Registration No. 105047W ICAI Firm Registration No. 134427W

Rahul Aggarwal Abhishek Pachlangia

Partner Partner

Membership No. 505676 Membership No.: 120593

UDIN: 25505676BMOBKV1917 UDIN: 25120593BMHZKL3824

Place: Jaipur Place: Jaipur

Date: May 21, 2025 Date: May 21, 2025

---

Mar 31, 2024

H.G. Infra Engineering Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of H.G. Infra Engineering Limited (“the Company”), which includes two jointly controlled operations consolidated on a proportionate basis (Refer Note 51 to standalone financial statements), which comprise the Standalone Balance Sheet as at March 31, 2024, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Changes in Equity and Standalone Statement of Cash Flows for the year then ended, and notes to the standalone financial statements, including material accounting policies and other explanatory information (hereinafter referred to as the “standalone financial statements”).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under Section 133 of the Act read with Companies (Indian Accounting Standards) Rules, 2015, as amended (“Ind AS”) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2024, and its total comprehensive income (comprising of profit and other comprehensive income), its changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the ‘Auditor’s Responsibilities for the Audit of the standalone financial statements’ section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (“ICAI”) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us and the audit evidence obtained by other auditors in terms of their reports referred to in “Other Matters” paragraph below, is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements for the year ended March 31, 2024. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key Audit Matter

Our audit procedures in respect of this area included the following:

1. Estimation of contract cost and revenue recognition. (Refer to Note 1 (iv) (i), 2 (c), 29 and 52) of the Standalone Financial Statements) Revenue from construction contracts is recognised over a period of time in accordance with the requirements of Ind AS 115 ‘Revenue from Contracts with Customers’. The contract revenue amounts to H 50,695.19 million for engineering, procurement and construction contracts, which usually extends over a period of 2-3 years, and the contract prices are fixed and, in few cases, subject to clauses with price variances and variable consideration. In accordance with Input method prescribed under Ind AS 115 ‘Revenue from Contracts with Customers’, the contract revenue is measured based on the proportion of contract costs incurred for work performed to date relative to the estimated total costs. This method requires the Company to perform an initial assessment of total estimated cost and reassess the total construction cost at the end of each reporting period to determine the appropriate percentage of completion.

i. Evaluated the accounting policy for revenue recognition and assessed compliance of the policy with the principles enunciated under Ind AS 115 - ‘Revenue from Contracts with Customer’. ii. Understood and evaluated the design and implementation and tested the operating effectiveness of key internal financial controls, including those related to review and approval of estimated costs and review of provision for foreseeable losses, if any, by the authorised representatives. iii. We obtained the revenue workings (percentage of completion calculations) from the Company’s management, for all contracts, containing actual costs incurred, estimated costs (comprising of actual costs and remaining costs to completion), estimated contract revenue and actual revenues recognised during the year based on proportion of actual costs to estimated costs. For sample of contracts, we agreed contract revenue with key contractual terms, agreed actual costs with system generated reports and agreed estimated costs with costs sheets for individual contracts approved by the authorised representatives.

Key Audit Matter	Our audit procedures in respect of this area included the following:
The estimation of total cost to complete the contract involves significant judgement and estimation throughout the period of contract, as it is subject to revision as the contract progresses - based on latest available information including physical work done on the ground, changes in cost estimates and need to accrue provision for onerous contracts, if any. Besides recognition of revenues based on actual costs and estimated costs to complete the work, at the period end, the measurement and recognition of contract assets (unbilled revenue) and contract liabilities (unearned revenue) related to each of the contracts is also dependent on cost estimates. In view of above, we have considered the estimation of construction contract costs as a key audit matter.	Reperformed the calculation of revenues during the year using proportion of actual costs to estimated costs and compared the results with workings provided by the Company. iv. For actual costs incurred during FY 2023-24, we tested the samples to appropriate supporting documents. v. To validate the remaining costs to completion, for sample contracts, we obtained the approved costs sheets (for each of such sample contracts) containing the breakdown of such costs. Evaluated the reasonableness of management’s judgements and assumptions through comparison of actual margins during the year with base margins estimated at the beginning, comparison between financial progress (proportion of actual costs to estimated costs) and physical progress certified by the Independent Engineer, past trends of recovery of price escalation with incremental costs incurred and comparison of actual costs within similar contracts. vi. Assessed the adequacy and appropriateness of the disclosures made in standalone financial statements in compliance with the requirements of Ind AS 115 ‘Revenue from Contracts with Customers’.
2. Valuation of accounts receivable and contract assets in view of risk of credit losses. (Refer Note 1 (ix), 39(i), 7, 11 and 15 - Trade Receivables and Note 16(a) for contract asset to Standalone Financial Statements) Accounts receivable and Contract assets are significant items in the Company''s standalone financial statements aggregating to H 19,725.29 million as of March 31, 2024 and provision for impairment of receivables and contract assets amounted to H 571.99 millions as at March 31, 2024. The Company has a concentration of credit exposure on certain customers, which include government and private organisations, where there are delays in collections due to various reasons. The management periodically assess the adequacy of provisions recognised, as applicable, on receivables and contract assets, based on factors such as credit risk of the customer, status of the project, discussions with the customers and underlying contractual terms and conditions. This involves significant judgement. Given the relative significance of these receivables and contract assets to the standalone financial statements and the nature and extent of audit procedures involved to assess the recoverability of receivables and contract assets, we determined this to be a key audit matter.	i. Understood and evaluated the design and tested the operating effectiveness of key internal financial controls in relation to determination of expected credit loss. ii. Obtained confirmation from parties, for sample balances, with respect to outstanding balances. Wherever confirmations are not received for the samples, performed alternate procedures through verification of Company’s invoices approved by the respective customers which represents acknowledgement of work delivered. iii. Performed inquiry procedures with senior management of the Company regarding status of collectability of the receivable and contract assets. iv. In respect of material contract balances, corroborated our inquiry procedures with the correspondence between the Company and the customers, contracts and other documents. v. Assessed the inputs used by the Management to determine the amount of allowances by considering factors such as credit risk of the customer, cash collections, past history and status of the project, and correspondence with customers. vi. Presented the results of our work done to the audit committee. vii. Assessed the adequacy and appropriateness of the disclosures made in the standalone financial statements in this regard.

Information Other than the Standalone Financial Statements and Auditor’s Report Thereon

The Company’s Management and Board of Directors are responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements and auditor’s report thereon. The annual report is expected to be made available to us after the date of this auditor’s report.

Our opinion on the standalone financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

When we read the annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and describe actions applicable under the applicable laws and regulations.

Responsibilities of Management and Board of Directors for the standalone financial statements

The Company’s Management and Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (“IND AS”) specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, the Management and Board of Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. The Board Annual Report 2023-24

of Directors are also responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the standalone financial statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

We give in “Annexure A” a detailed description of Auditor’s responsibilities for Audit of the standalone financial statements.

Other Matter

1. We did not audit the Company’s share in two jointly controlled operations included in the standalone financial statements of the Company, which reflects total assets of H 2.36 millions as at March 31,2024, and total revenues of H 11.36 millions, total net profit after tax of H (0.05) million and total comprehensive income of H (0.05) million for the year ended March 31,2024, and cash outflows (net) of H (0.05) million for the year then ended. The financial statements of these jointly controlled operations have been audited by other auditors whose reports have been furnished to us by the Management, and our opinion on the standalone financial statements (including other information) in so far relates to the amounts and disclosures included in respect of these Jointly controlled operations, is based solely on the report of other auditors.

Our opinion is not modified in respect of the above matter with respect to our reliance on the work done and the reports of the other auditors.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in “Annexure B” a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. A. As required by Section 143(3) of the Act, we report that:

(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books, except for certain matters in respect of audit trail as stated in the paragraph 2B(f) below.

(c) The standalone balance sheet, the standalone statement of profit and loss (including other comprehensive income), the standalone statement of changes in equity and the standalone statement of cash flow dealt with by this Report are in agreement with the books of account.

(d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.

(e) On the basis of the written representations received from the directors as on March 31,2024 taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 2024 from being appointed as a director in terms of Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate report in “Annexure C”.

(g) The modifications relating to the maintenance of accounts and other matters connected therewith in respect of audit trail are as stated in the paragraph 2A(b) above on reporting under Section 143(3)(b) of the Act and paragraph 2B(f) below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.

B. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

(a) The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note 46 to the standalone financial statements;

(b) The Company has long-term contracts for which there were no material foreseeable losses as at March 31,2024. Refer Note 16(a) to the standalone financial statements. Further, the Company did not have any outstanding derivative contracts as at March 31,2024;

(c) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company during the year ended March 31,2024;

(d) 1. The Management has represented that,

to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Company or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

2. The Management has represented, that, to the best of its knowledge and belief, no funds have been received by the Company from any persons or entities, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, as on the date of this audit report, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever (“Ultimate Beneficiaries”) by or on behalf of the Funding Party or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

3. Based on the audit procedures performed that have been considered reasonable and appropriate in the circumstances, and according to the information and explanations provided to us by the Management in this regard, nothing has come to our notice that has caused us to believe that the representations under subclause (i) and (ii) of Rule 11(e) as provided under (1) and (2) above, contain any material mis-statement.

(e) The dividend declared and paid during the year by the Company is in compliance with Section 123 of the Act.

(f) Based on our examination which included test checks, the Company has used an accounting software and two SAAS based applications

(related to processing of leave and travel related data of employees) for maintaining its books of accounts. While the accounting software has a feature of recording audit trail (edit log) facility and same has been operated throughout the year for all relevant transactions, we were not able to verify this aspect in SAAS based applications as no underlying evidence, related to audit trail (edit log) facility, could be arranged by the Company from the service providers who manage these applications.

For audit trail (edit log) facility which was enabled and operated throughout the year for the accounting software, we did not come across any instance of audit trail feature being tempered with.

C. In our opinion and according to information and explanations given to us, the remuneration paid and provided by the Company to its directors during the current year is within the limits prescribed under Section 197 of the Act and the rules thereunder.

For M S K A & Associates For Shridhar & Associates

Chartered Accountants Chartered Accountants

ICAI Firm Registration No.105047W ICAI Firm Registration No.134427W

Rahul Aggarwal Abhishek Pachlangia

Partner Partner

Membership No.: 505676 Membership No.: 120593

UDIN: 24505676BKGPQA3233 UDIN: 24120593BKCAMB9221

Place: Gurugram Place: Jaipur

Date: May 08, 2024 Date: May 08, 2024

---

Mar 31, 2023

H.G. infra Engineering Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of H.G. Infra Engineering Limited ("the Company"), which includes three jointly controlled operations consolidated on a proportionate basis (Refer note 51 to Standalone Financial Statements), which comprises the Standalone Balance Sheet as at March 31, 2023, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as the "standalone financial statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards ("Ind AS") prescribed under Section 133 of the Act read with Companies (Indian Accounting Standards) Rules, 2015 and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, its total comprehensive income (comprising of profit and other comprehensive income), its changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the standalone financial statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us, and the audit evidence obtained by the other auditors in terms of their reports referred to in "Other Matters" paragraph below, is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements for the year ended March 31, 2023. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key Audit Matter

Our audit procedures in respect of this area included the following:

1. Estimation of contract cost and revenue recognition. (Refer to note 1 (F) (i), 2 (d), 29 and 52) of the Standalone Financial Statements) Revenue from construction contracts is recognised over a period of time in accordance with the requirements of Ind AS 115, ''Revenue from Contracts with Customers. The contract revenue amounts to H43,071.01 million for engineering, procurement and construction contracts, which usually extends over a period of 2-3 years, and the contract prices are fixed and, in few cases, subject to clauses with price variances and variable consideration.

i. Evaluated the accounting policy for revenue recognition and assessed compliance of the policy with the principles enunciated under Ind AS 115 - ''Revenue from Contracts with Customer. ii. Understood and evaluated the design and tested the operating effectiveness of key internal financial controls, including those related to review and approval of estimated costs and review of provision for foreseeable losses, if any, by the authorised representatives.

Key Audit Matter	Our audit procedures in respect of this area included the following:
n accordance with Input method prescribed under Ind AS 115, the contract revenue is measured based on the proportion of contract costs incurred for work performed to date relative to the estimated total costs. This method requires the Company to perform an initial assessment of total estimated cost and reassess the total construction cost at the end of each reporting period to determine the appropriate percentage of completion. The estimation of total cost to complete the contract involves significant judgement and estimation throughout the period of contract, as it is subject to revision as the contract progresses -based on latest available information including physical work done on the ground, changes in cost estimates and need to accrue provision for onerous contracts, if any. Besides recognition	iii. We obtained the revenue workings (percentage of completion calculations) from the Company''s management, for all contracts, containing actual costs incurred, estimated costs (comprising of actual costs and remaining costs to completion), estimated contract revenue and actual revenues recognised during the year based on proportion of actual costs to estimated costs. For sample of contracts, we agreed contract revenue with key contractual terms, agreed current year''s actual costs with system generated reports and agreed estimated costs with costs sheets for individual contracts approved by the authorised representatives. Reperformed the calculation of revenues during the year using proportion of actual costs to estimated costs and compared the results with workings provided by the Company.
of revenues based on actual costs and estimated costs to	iv. For actual costs incurred during FY 2022-23, we tested the
complete the work, at the period end, the measurement and	samples to appropriate supporting documents.
recognition of contract assets (unbilled revenue) and contract liabilities (unearned revenue) related to each of the contracts is also dependent on cost estimates.	v. To validate the remaining costs to completion, for sample contracts, we obtained the approved costs sheets (for each of such sample contracts) containing the breakdown of such
n view of above, we have considered the estimation of construction contract costs as a key audit matter.	costs. Evaluated the reasonableness of management''s judgements and assumptions through comparison of actual margins during the year with base margins estimated at the beginning, comparison between financial progress (proportion of actual costs to estimated costs) and physical progress certified by the Independent Engineer, past trends of recovery of price escalation with incremental costs incurred and comparison of actual costs within similar contracts.
	vi. Assessed the adequacy and appropriateness of the disclosures made in standalone financial statements in compliance with the requirements of Ind AS 115.
2. Valuation of accounts receivable and contract assets in	i. Understood and evaluated the design and tested the
view of risk of credit losses. (Refer note 1 (K), 39(i), 7 and	operating effectiveness of key internal financial controls in
11 - Trade Receivables and Note 16(a) for contract asset	relation to determination of expected credit loss.
to Standalone Financial Statements)	i. Obtained confirmation from parties, for sample balances,
Accounts receivable and Contract assets are significant	with respect to outstanding balances. Wherever confirmations
items in the Company''s standalone financial statements	are not received for the samples, performed alternate procedures
aggregating to H14,63 7.81 million as of March 31, 2023	through verification of Company''s invoices approved by the
and provision for impairment of receivables and contract	respective customers which represents acknowledgement of
assets amounted to H317.64 millions as at March 31, 2023.	work delivered.
The Company has a concentration of credit exposure on certain customers, which include government and private organisations, where there are delays in collections due to various reasons.	iii. Performed inquiry procedures with senior management of the Company regarding status of collectability of the receivable and contract assets.
The management periodically assess the adequacy of provisions recognised, as applicable, on receivables and contract assets, based on factors such as credit risk of the customer, status of the project, discussions with the customers and underlying contractual terms and conditions. This involves significant judgement.	iv. In respect of material contract balances, corroborated our inquiry procedures with the correspondence between the Company and the customers, contracts and other documents.

Key Audit Matter

Our audit procedures in respect of this area included the following:

Given the relative significance of these receivables and contract assets to the standalone financial statements and the nature and extent of audit procedures involved to assess the recoverability of receivables and contract assets, we determined this to be a key audit matter.

v. Assessed the inputs used by the Management to determine the amount of allowances by considering factors such as credit risk of the customer, cash collections, past history and status of the project, and correspondence with customers. vi. Presented the results of our work done to the audit committee. vii. Assessed the adequacy and appropriateness of the disclosures made in the standalone financial statements in this regard.

information Other than the Standalone Financial Statements

The Company''s Management and Board of Directors are responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Director''s Report, Corporate Governance Report and Other Information included in the Annual Report but does not include the standalone financial statements and our auditor''s report thereon.

Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of Management and Board of Directors for the Standalone Financial Statements

The Company''s Management and Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards ("Ind AS") specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal

financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, Management and Board of Directors are responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.

Auditor''s Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

We give in "Annexure A" a detailed description of Auditor''s responsibilities for Audit of the Standalone Financial Statements.

Other Matters

1. We did not audit the financial statements of three jointly controlled operations included in the standalone financial statements of the Company, whose financial statements reflect total assets of H40.26 millions as at March 31, 2023, and total revenues of H63.45 millions, total net profit after tax of H0.11 million and total comprehensive income of H0.11 million for the year ended March 31, 2023, and cash inflows (net) of H0.23 million for the year then ended. The

financial statements of these jointly controlled operations have been audited by other auditors whose reports have been furnished to us by the Management, and our opinion on the standalone financial statements (including other information) in so far relates to the amounts and disclosures included in respect of these Jointly controlled operations, is based solely on the report of other auditors.

Our opinion is not modified in respect of the above matter with respect to our reliance on the work done and the reports of the other auditors.

2. The standalone financial statements of the Company for the year ended March 31,2022, were audited by another firm of Chartered Accountants along with the joint auditors i.e. M/s Shridhar & Associates, Chartered Accountants, whose report dated May 23, 2022 expressed an unmodified opinion on those standalone financial statements.

Our opinion is not modified in respect of the above matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. As required by Section 143(3) of the Act, we report that:

(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;

(c) The Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including other comprehensive income), the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flow dealt with by this Report are in agreement with the books of account;

(d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act;

(e) On the basis of the written representations received from the directors as on March 31, 2023 taken on record by the Board of Directors, none of the directors are disqualified as on March 31,2023 from being appointed as a director in terms of Section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial

controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure C";

(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements. Refer Note 46 to the standalone financial statements;

ii. The Company has long-term contracts for which there were no material foreseeable losses as at March 31,2023. Refer Note 16(a) to the standalone financial statements. Further, the Company did not have any outstanding derivative contracts as at March 31, 2023;

iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company during the year ended March 31, 2023;

iv. 1. The Management has represented that,

to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

2. The Management has represented, that, to the best of its knowledge and belief, no funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, as on the date of this audit report, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate

Beneficiaries") by or on behalf of the Funding Party or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

3. Based on the audit procedures performed that have been considered reasonable and appropriate in the circumstances, and according to the information and explanations provided to us by the Management in this regard nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e) as provided under (1) and (2) above, contain any material mis-statement.

v. The dividend declared and paid during the year by the Company is in compliance with section 123 of the Act.

vi. As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the company only w.e.f. April 1, 2023, reporting under this clause is not applicable.

3. In our opinion and according to information and explanations given to us, the remuneration paid and provided by the Company to its directors during the current year is within the limits prescribed under Section 197 of the Act and the rules thereunder.

For MSKA & Associates For Shridhar & Associates

Chartered Accountants Chartered Accountants

ICAI Firm Registration No.105047W ICAI Firm Registration No.134427W

Rahul Aggarwal Abhishek Pachlangia

Partner Partner

Membership No.: 505676 Membership No.: 120593

UDIN: 23505676BGXENT7371 UDIN: 23120593BGWJLX6234

Place: Jaipur Place: Jaipur

Date: May 10, 2023 Date: May 10, 2023

---

Mar 31, 2022

Report on the Audit of the Standalone financial

statements

Opinion

1. We have audited the accompanying standalone financial statements of H.G. Infra Engineering Limited (“the Company") which includes 3 jointly controlled operations consolidated on a proportionate basis (Refer Note 51 to the attached Standalone Financial Statements), which comprise the Balance Sheet as at March 31,2022, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Cash Flow Statement for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information(hereinafter referred to as “standalone financial statements").

2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (“the Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2022, and total comprehensive income (comprising of profit and other comprehensive income), changes in equity and its cash flows for the year then ended.

Basis for Opinion

3. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the “Auditor''s Responsibilities for the Audit of the Financial Statements" section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained, and the audit evidence obtained by the other auditors in terms of their reports referred to in sub-paragraph 13 of the Other Matter Paragraphbelow, is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter	How our audit addressed the key audit matter
1) Estimation of contract cost and revenue recognition	Our procedures over the recognition of revenue included the
(Refer to note 1 (f)(i), 2(d), 29 and 52 of the standalone	following:
financial statements)	• Understood and evaluated the design and tested the operating
The contract revenue amounts to ''35,573.66 Million for engineering, procurement and construction contracts, which usually extends over a period of 2-3 years, and the contract prices are fixed and, in some cases, subject to price	effectiveness of key internal financial controls, including those related to review and approval of estimated project cost and review of provision for estimated loss by the authorised representatives.
variance clauses.	• For a sample of contracts, we obtained the percentage of
The contract revenue is measured based on the proportion of contract costs incurred for work performed to date relative to the estimated total contract costs.	completion calculations, agreed key contractual terms to the signed contracts, tested the mathematical accuracy of the cost to complete calculations and re-performed the calculation of revenue recognized during the year based on the percentage of
This method requires the Company to perform an initial	completion.
assessment of total estimated cost and reassess the total construction cost at each reporting period end to determine the appropriate percentage of completion.	• For costs incurred to date, we tested samples to appropriate supporting documentation and performed cut off procedures.

Key audit matters	How our audit addressed the key audit matter
We considered the estimation of construction contract cost	• To test the forecast cost to complete, we obtained the breakdown
as a key audit matter given the involvement of significant	of costs forecasts and tested elements of the forecast by
management judgement which has consequential impact on	obtaining executed purchase orders and agreements, evaluating
revenue recognition.	reasonableness of management''s judgements and assumptions using past trends and comparing the estimated costs to the actual costs incurred for the similar completed projects.
	• Checked the related disclosures in the financial statements.
	Based on the above procedures performed, we considered the manner of estimation of contract cost and recognition of revenue to be reasonable.
2) Valuation of accounts receivable and contract assets	Our audit procedures included the following:
in view of risk of credit losses	• Understanding, evaluating the design and testing the operating
(Refer to the Note 1(k), 39(i), 7, 11 and 15 - Trade receivables	effectiveness of Key Internal financial controls in relation to
and Note 16(a) for contract assets).	determination of estimated credit loss.
Accounts receivable and contract assets are significant items	• Obtaining confirmation from parties, on a sample basis, with
in the Company''s standalone financial statements aggregating	respect to outstanding balances.
to ''10,792.68 Million as of March 31, 2022 and provision for impairment of receivables and contract assets is an area which is influenced by management''s estimates and judgment. The	• Inquiry procedures with senior management of the Company
	regarding status of collectability of the receivable and contract assets.
provision for impairment of receivables and contract assets
amounted to INR 187.94 million as at March 31,2022.	• Perusal of correspondences with the customers.
The Company has a concentration of credit exposure on	• Assessing the inputs used by the Management to determine the
certain customers, which include government and private	amount of allowances by considering factors such as credit risk
organisations, where there are delays in collections due	of the customer, cash collections, past history and status of the
to various reasons. The management has assessed the	project, and correspondence with customers.
appropriateness of provisions recognised, as applicable, on receivables and contract assets, based on factors such as the	• Checked the related disclosures in the financial statements.
credit risk of the customer, status of the project, discussions	Based on our work as stated above, no significant deviations were
with the customers and contractual terms. This involves	observed in respect of management''s assessment of valuation of
significant judgement.	accounts receivables and contract assets.
Given the relative significance of these receivables and contract assets to the standalone financial statements and the nature and extent of audit procedures involved to assess the recoverability of receivables and contract assets, we determined this to be a key audit matter.

Other Information

5. The Company''s Board of Directors are responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Director''s Report, Corporate Governance Report and Other Information included in the Annual Report but does not include the financial statements and our auditor''s report thereon.

Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

I n connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the

audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of management and those chargedwith governance for the financial statements

6. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

7. In preparing thestandalone financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.

Auditor''s responsibilities for the audit of the Standalonefinancial statements

8. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they

could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

9. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to standalone financial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

10. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

11. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

12. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matter

13. We did not audit the standalone financial statements of 3 jointly controlled operations included in the standalone financial statements of the Company, which constitute total assets of ''54.65 Million and net assets of ''3.24 Million as at March 31, 2022, total revenue of ''50.98 Million, total comprehensive income (comprising of profit and other comprehensive income) of ''0.15 Million and net cash outflows amounting to ''0.31 Million for the year then ended. These financial statements and other financial information have been audited by other auditors whose reports have been furnished to us by the management, and our opinion on the standalone financial statements (including other information) in so far as it relates to the amounts and disclosures included in respect of these jointly controlled operationsis based solely on the reports of such other auditors.

Our opinion on the standalone financial statements, and our report on Other legal and regulatory requirements below, is not modified in respect of the above matter with respect to our reliance on the work done and the reports of the other auditors.

Report on other legal and regulatory requirements

14. As required by the Companies (Auditor''s Report) Order, 2020 (“the Order"), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the Annexure B a statement on the matters

specified in paragraphs 3 and 4 of the Order, to the extent

applicable.

15. As required by Section 143(3) of the Act, we report that:

(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

(b) I n our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.

(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act.

(e) On the basis of the written representations received from the directors as on March 31, 2022 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2022 from being appointed as a director in terms of Section 164(2) of the Act.

(f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure A".

(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 46 to the financial statements;

ii. The Company has made provision as at March 31,2022, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts - Refer Note 16(a). The Company did not have any derivative contracts as at March 31,2022.

iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company during the year ended March 31,2022.

iv. (a) The management has represented that,

to the best of its knowledge and belief, as disclosed in the notes to the accounts, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities (“Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries (Refer Note 55 (vii) to the Standalone Financial Statements.);

(b) The management has represented that, to the best of its knowledge and belief, as disclosed in the notes to the accounts, no

funds have been received by the Company from any persons or entities, including foreign entities (“Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries(Refer Note 55 (vii) to the Standalone Financial Statements.); and

(c) Based on such audit procedures that we considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (a) and (b) contain any material misstatement.

v. The dividend declared and paid during the year by the Company is in compliance with Section 123 of the Act.

16. The Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.

---

Mar 31, 2018

INDEPENDENT AUDITORS'' REPORT

To The Members of

H.G. Infra Engineering Limited

Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements

1. We have audited the accompanying standalone financial statements of H.G. Infra Engineering Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies and other explanatory information, in which are incorporated 4 jointly controlled operations as referred to in Note 47 in the standalone financial statements.

Management''s Responsibility for the Standalone Ind AS Financial Statements

2. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone Ind AS financial statements to give a true and fair view of the financial position, financial performance (including other comprehensive income), cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditors'' Responsibility

3. Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.

4. We have taken into account the provisions of the Act and the Rules made thereunder including the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

5. We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditors'' judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the standalone Ind AS financial statements that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, and its total comprehensive income (comprising of profit and other comprehensive income), its cash flows and the changes in equity for the year ended on that date.

Other Matters

9. We did not audit the financial statements of 4 jointly controlled operations included in the standalone financial statements of the Company, which constitute total assets of RS,15.92 crore and net assets of RS,14.80 crore as at March 31, 2018, total revenue of RS,94.67 crore, net profit of RS,0.44 Crore for the year then ended.

These financial statements have been audited by other auditors whose reports have been furnished to us by the Management, and our opinion on the standalone financial statements insofar as it relates to the amounts and disclosures included in respect of these jointly controlled operations is based solely on the reports of the other auditors.

10. The transition date opening balance sheet as at April 1, 2016 included in these standalone Ind AS financial statements, is based on the previously issued statutory financial statements for the year ended March 31, 2016 prepared in accordance with the Companies (Accounting Standards) Rules, 2006 (as amended) which were audited by the predecessor auditor who expressed an unmodified opinion vide reports dated July 26, 2016. The adjustments to those financial statements for the differences in accounting principles adopted by the Company on transition to the Ind AS have been audited by us.

11. The financial information of the Company for the year ended March 31, 2017 included in these standalone Ind AS financial statements, are based on the previously issued statutory financial statements for the year ended March 31, 2017 prepared in accordance with the Companies (Accounting Standards) Rules, 2006 (as amended) which were audited by us, on which we expressed an unmodified opinion dated August 28, 2017. The adjustments to those financial statements for the differences in accounting principles adopted by the Company on transition to the Ind AS have been audited by us.

Our opinion on the standalone Ind AS financial statements and our report on Other Legal and Regulatory requirements below is not qualified in respect of these matters.

Report on Other Legal and Regulatory Requirements

12. As required by the Companies (Auditor''s Report) Order, 2016, issued by the Central Government of India in terms of subsection (11) of section 143 of the Act ("the Order"), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the Annexure B a statement on the matters specified in paragraphs 3 and 4 of the Order.

13. As required by Section 143 (3) of the Act, we report that:

(a) We have sought and obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books and report of other auditors.

(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow

Statement and the Statement of Changes in Equity dealt with by this Report are in agreement with the books of accounts of the Company and jointly controlled operations.

(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act.

(e) On the basis of the written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and its jointly controlled operations and the operating effectiveness of such controls, refer to our separate Report in Annexure A.

(g) With respect to the other matters to be included in the Auditors'' Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our knowledge and belief and according to the information and explanations given to us:

i. The Company has disclosed the impact, if any, of pending litigations as at March 31, 2018 on its financial position in its standalone Ind AS financial statements - Refer Note 43;

ii. The Company assesses periodically the foreseeable losses on all its long-term contracts. As at end of the year under report, there were no such foreseeable losses. The Company did not have any derivative contracts as at the date of Balance Sheet;

iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company during the year ended March 31, 2018.

iv. The reporting on disclosures relating to Specified Bank Notes is not applicable to the Company and jointly controlled operations for the year ended March 31, 2018.

Report on the Internal Financial Controls with reference to standalone (Ind AS) financial statements under Clause (i) of Sub-section 3 of Section 143 of the Act

1. We have audited the internal financial controls with reference to standalone financial statements of H.G Infra Engineering Limited ("the Company") as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date. Reporting under clause (i) of sub section 3 of Section 143 of the Act in respect of the adequacy of the internal financial controls over financial reporting is not applicable to 4 jointly controlled operations.

Management''s Responsibility for Internal Financial Controls

2. The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.

Auditors'' Responsibility

3. Our responsibility is to express an opinion on the Company''s internal financial controls with reference to standalone financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing deemed to be prescribed under section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the ICAI. Those Standards and the Guidance Note require that we comply

with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to financial statements was established and maintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with reference to standalone financial statements and their operating effectiveness. Our audit of internal financial controls with reference to standalone financial statements included obtaining an understanding of internal financial controls with reference to financial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system with reference to financial statements.

Meaning of Internal Financial Controls with reference to standalone financial statements

6. A company''s internal financial controls with reference to standalone financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial controls with reference to financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls with reference to standalone financial statements

7. Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to financial statements to future periods are subject to the risk that the internal financial control controls with reference to financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion, the Company has, in all material respects, an adequate internal financial controls system with reference to standalone financial statements and such internal financial controls with reference to standalone financial statements were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

Referred to in paragraph 12 of the Independent Auditors'' Report of even date to the members of H.G. Infra Engineering Limited on the standalone financial statements as of and for the year ended March 31, 2018

1. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets.

(b) The fixed assets are physically verified by the Management according to a phased programme designed to cover all the items over a period of 3 years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to the programme, a portion of the fixed assets has been physically verified by the Management during the year and no material discrepancies have been noticed on such verification.

(c) The title deeds of immovable properties, as disclosed in Note 3 on fixed assets to the financial statements, are held in the name of the Company.

2. The physical verification of inventory have been conducted at reasonable intervals by the Management during the year. The discrepancies noticed on physical verification of inventory as compared to book records were not material.

3. The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Act. Therefore, the provisions of Clause 3(iii), (iii)(a), (iii)(b) and (iii)(c) of the said Order are not applicable to the Company.

4. The Company has not granted any loans or made any investments, or provided any guarantees or security to the parties covered under Section 185 and 186. Therefore, the provisions of Clause 3(iv) of the said Order are not applicable to the Company.

5. The Company has not accepted any deposits from the public within the meaning of Sections 73, 74, 75 and 76 of the Act and the Rules framed there under to the extent notified.

6. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under Section 148(1) of the Act in respect of its products.

We have broadly reviewed the same, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

7. (a) According to the information and explanations given to

us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing undisputed statutory dues in respect of provident fund, value added tax cess, employees'' state insurance and professional tax though there has been a slight delay in a few cases, and in case of income-tax and goods and service tax (with effect from July 1, 2017), have not been regularly deposited with the appropriate authorities and there have been delays in number of cases as explained in note 48 of the standalone financial statements.

(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues of income-tax, sales-tax, service-tax, duty of customs, and duty of excise or value added tax or goods and service tax which have not been deposited on account of any dispute.

8. According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of loans or borrowings to any financial institution or bank or Government as at the balance sheet date.

9. In our opinion, and according to the information and explanations given to us, the moneys raised by way of initial public offer (IPO) and term loans have been applied for the purposes for which they were obtained except in case of IPO funds amounting to H1,647.27 Million pending utilisation, the amounts have been parked in fixed deposits and current account with bank.

10. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.

11. The Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.

12. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3(xii) of the Order are not applicable to the Company.

13. The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act. The details of such related party transactions have been disclosed in the financial statements as required under Indian Accounting Standard (Ind AS) 24, Related Party Disclosures specified under Section 133 of the Act.

14. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to the Company.

15. The Company has not entered into any non-cash transactions with its directors or persons connected with him. Accordingly, the provisions of Clause 3(xv) of the Order are not applicable to the Company.

16. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions of Clause 3(xvi) of the Order are not applicable to the Company.

For Price Waterhouse & Co

Chartered Accountant LLP

Firm Registration Number: 304026E/E-300009

Priyanshu Gundana

Place: Jaipur Partner

Date: May 23, 2018 Membership Number:109553