Notes to Accounts of Ashoka Buildcon Ltd.

Mar 31, 2025

15. Provisions & Contingencies

Provisions are recognised when the Company has a
present legal or constructive obligation as a result of
past events for which it is probable that an outflow
of resources will be required to settle the obligation
and the amount can be reliably estimated as at the
balance sheet date. Provisions are measured based
on management’s estimate required to settle the
obligation at the balance sheet date and are discounted
using a rate that reflects the time value of money. When
discounting is used, the increase in the provision due
to the passage of time is recognised as a finance cost.

Other Litigation claims

Provision for litigation related obligation represents
liabilities that are expected to materialize in respect of
matters in appeal.

Onerous contracts

A provision for onerous contracts is measured at
the present value of the lower expected costs of
terminating the contract and the expected cost of
continuing with the contract. Before a provision is
established, the Company recognizes impairment on
the assets with the contract.

Contingencies

A disclosure for a contingent liability is made when
there is a possible obligation or a present obligation
that may, but will probably not, require an outflow
of resources. Information on contingent liabilities is
disclosed in the notes to financial statements unless
the possibility of an outflow of resources embodying
economic benefit is remote.

A contingent asset is not recognised but disclosed in
the financial statements where an inflow of economic
benefit is probable and are reviewed at each balance
sheet date.

16. Provision for Defect liability period

The Company provides for contractual obligations to
periodically service, repair or rectify any defective
work during the defect liability period as well
as towards contractual obligations to restore the
infrastructure at periodic intervals. Provisions are
measured based on management’s estimate required
to settle the obligation at the balance sheet date and
are discounted using a rate that reflects the time value
of money. When discounting is used, the increase in
the provision due to the passage of time is recognised
as a finance cost. The same is reviewed at each balance
sheet date and adjustments if any to the carrying
amount is provided for accordingly.

17. Leases

Company as a lessee

The Company applies a single recognition and
measurement approach for all leases, except for short¬
term leases and leases of low-value assets.

Lease term which is a non-cancellable period together
with periods covered by an option to extend the lease
if the Company is reasonably certain to exercise that
option; and periods covered by an option to terminate
the lease if the Company is reasonably certain not to
exercise that option. The Company uses judgement
in assessing the lease term (including anticipated
renewals/ termination options).

The Company recognizes lease liabilities to make
lease payments and right-of-use assets representing
the right to use the underlying assets.

i. Right-of-use assets

The Company recognizes right-of-use assets at
the commencement date of the lease. Right-of-use
assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted
for any remeasurement of lease liabilities. The
cost of right-of-use assets includes the amount
of lease liabilities recognised, initial direct costs
incurred, lease payments made at or before the
commencement date less any lease incentives
received. Right-of-use assets are depreciated on
a straight-line basis from the commencement
date to the end of lease term.

If ownership of the leased asset transfers to the
Company at the end of the lease term or the
cost reflects the exercise of a purchase option,
depreciation is calculated using the estimated
useful life of the asset.

The right-of-use assets are also subject to
impairment. Refer to the accounting policies of
Impairment of non-financial assets.

ii. Lease liabilities

At the commencement date of the lease, the
Company recognizes lease liabilities measured
at the present value of lease payments to be
made over the lease term. The lease payments
include fixed payments less any lease incentives
receivable, variable lease payments that depend
on an index or a rate, and amounts expected to
be paid under residual value guarantees. The
lease payments also include the exercise price
of a purchase option reasonably certain to be
exercised by the Company and payments of
penalties for terminating the lease, if the lease
term reflects the Company exercising the option

to terminate. Variable lease payments that do
not depend on an index or a rate are recognised
as expenses in the period in which the event or
condition that triggers the payment occurs.

In calculating the present value of lease
payments, the Company uses its incremental
borrowing rate at the lease commencement date
because the interest rate implicit in the lease is
not readily determinable.

After the commencement date, the amount of
lease liabilities is increased to reflect the accretion
of interest and reduced for the lease payments
made. In addition, the carrying amount of lease
liabilities is remeasured if there is a modification,
a change in the lease term, a change in the lease
payments or a change in the assessment of an
option to purchase the underlying asset.

iii. Short term leases and leases of low value of
assets

The Company applies the short-term lease
recognition exemption to its short-term leases
of machinery and equipment. It also applies the
lease of low-value assets recognition exemption
to leases that are considered to be low value.
Lease payments on short-term leases and leases
of low-value assets are recognised as expense on
a straight-line basis over the lease term.

Company as a lessor

Leases in which the Company does not transfer
substantially all the risks and rewards incidental
to ownership of an asset are classified as operating
leases. Rental income arising is accounted for on
a straight-line basis over the lease terms. Initial
direct costs incurred in negotiating and arranging an
operating lease are added to the carrying amount of
the leased asset and recognised over the lease term on
the same basis as rental income. Contingent rents are
recognised as revenue in the period in which they are
earned.

Leases are classified as finance leases when
substantially all of the risks and rewards of ownership
transfer from the Company to the lessee.

18. Taxes

Income tax expense for the period is the tax payable
on the current period’s taxable income based on the
applicable income tax rate and changes in deferred
tax assets and liabilities attributable to temporary
differences. The current income tax charge is
calculated in accordance with the provisions of the
Income Tax Act 1961.

Tax expense comprises current tax expense and
deferred tax.

Deferred income tax is determined using tax rates (and
laws) that have been enacted or substantially enacted
at the end of the reporting period and are expected to
apply when the related deferred income tax asset is
realised, or the deferred income tax liability is settled.

Deferred tax liabilities are recognized for all taxable
temporary differences and deferred tax assets are
recognized for all deductible temporary differences
and brought forward losses only if it is probable that
future taxable profit will be available to realize the
temporary differences, excluding exceptions cases.

Current tax assets and tax liabilities are offset where
the entity has a legally enforceable right to offset and
intends either to settle on a net basis, or to realize the
asset and settle the liability simultaneously.

Current and deferred tax is recognised in profit
or loss, except to the extent that it relates to items
recognised in other comprehensive income or directly
in equity. In this case, the tax is also recognised in
other comprehensive income or directly in equity,
respectively.

19. Employee benefits

a. Short-term obligations

All employee benefits falling due wholly within
twelve months of rendering the service are
classified as short-term employee benefits. These
are expensed as the related service is provided.
A liability is recognised for the amount expected
to be paid if the Company has a present legal or
constructive obligation to pay this amount as a
result of past service provided by the employee
and the obligation can be estimated reliably.

b. Post-employment obligations i.e.

• Defined benefit plans and

• Defined contribution plans.

Defined benefit plans:

The employees’ gratuity fund scheme, managed
by Life Insurance Corporation (LIC) is a defined
benefit plan. The present value of obligation is
determined based on actuarial valuation carried
out as at the end of each financial year using the
Projected Unit Credit Method.

The obligation is measured at the present value
of the estimated future cash flows. The discount
rate used for determining the present value of the
obligation under defined benefit plans, is based
on the market yield on government securities,
of a maturity period equivalent to the weighted
average maturity profile of the related obligations
at the Balance Sheet date.

Re-measurement, comprising actuarial gains
and losses, the effect of the changes to the asset
ceiling (if applicable) and the return on plan assets
(excluding net interest), is reflected immediately
in the balance sheet with a corresponding
debit or credit to other comprehensive income
(OCI) in the period in which they occur. Re¬
measurements are not reclassified to profit or
loss in subsequent periods. Past service cost is
recognised in the statement of profit or loss in
the period of a plan amendment. Net interest is
calculated by applying the discount rate at the
beginning of the period to the net defined benefit
liability or asset.

Defined contribution plans:

The Company’s contribution to provident fund,
employee state insurance scheme, superannuation
fund and National Pension Scheme (NPS) are
considered as defined contribution plans and are
charged as an expense as they fall due based on
the amount of contribution required to be made
and when services are rendered by the employee.

c. Other long term employee benefits

The Company’s net obligation in respect of
long-term employee benefits other than post¬
employment benefits is the amount of future
benefit that employees have earned in return for
their service in the current and prior periods; that
benefit is discounted to determine its present
value, and the fair value of any related assets is
deducted.

The obligation is measured on the basis of an
annual independent actuarial valuation using the
projected unit credit method. Remeasurements
gains or losses are recognised in profit or loss in
the period in which they arise.

20. Cash and cash equivalents

Cash and cash equivalent in the balance sheet
comprise cash at banks and on hand and short-term
deposits with an original maturity of three months
or less, which are subject to an insignificant risk of
changes in value.

For the purpose of the statement of cash flows, cash
and cash equivalents consist of cash and short-term
deposits, as defined above.

21. Segment Reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to
the Chief Operating Decision Maker, who regularly
monitors and reviews the operating result for
following operating segments of the Company:

i. “Construction & Contract Related Activity”,
includes Engineering, Procurement and
Construction activity for Road, Rail, Power
projects etc.;

ii. “Built, Operate and Transfer (BOT) / Annuity
Projects” includes business operation with
respect to Toll collection and Hybrid Annuity
road projects;

iii. “Sale of Goods” consist mainly Sale of
construction material which includes Ready Mix
Concrete and Real estate.

22. Business Combination

Acquisition of business are accounted for using the
acquisition method. The consideration transferred in
business combination is measured at the aggregate of
fair values of assets given, liabilities incurred by the
Company to the former owners of the acquiree and
consideration paid by the Company in exchange for
control of the acquire. Acquisition related costs are
recognised in the statement of profit and loss.

23. Revenue recognition
A) Revenue

Revenue from contracts with customers is
recognised when control of the goods or services
are transferred to the customer at an amount that
reflects the consideration to which the Company
expects to be entitled in exchange for those
goods or services. The Company has generally
concluded that it is the principal in its revenue
arrangements because it typically controls the
goods or services before transferring them to the
customer.

Revenue from construction contracts

Performance obligation in case of long - term
construction contracts is satisfied over a period
of time, since the Company creates an asset that
the customer controls as the asset is created and
the Company has an enforceable right to payment
for performance completed to date if it meets the
agreed specifications.

Revenue from long term construction contracts,
where the outcome can be estimated reliably and
5% of the project cost is incurred, is recognized
under the percentage of completion method

by reference to the stage of completion of the
contract activity. For projects wherein progress
achieved via the Percentage of completion
methods is less than 5%, revenue is recognized
upto the extent of cost incurred.

The stage of completion is measured by input
method i.e. the proportion that costs incurred
to date bear to the estimated total costs of a
contract. The percentage-of-completion method
(an input method) is the most faithful depiction
of the company’s performance because it directly
measures the value of the services transferred to
the customer.

The total costs of contracts are estimated based
on technical and other estimates. In the event
that a loss is anticipated on a particular contract,
provision is made for the estimated loss after
review of budgets and if contract cost exceed
contract price.

Contract revenue earned in excess of billing is
reflected under as “contract asset” and billing
in excess of contract revenue is reflected under
“contract liabilities”.

Retention money receivable from project
customers does not contain any significant
financing element, these are retained for
satisfactory performance of contract.

The major component of contract estimate is
“budgeted cost to complete the contract” and on
assumption that contract price will not reduce
vis-a-vis agreement values. While estimating
the various assumptions are considered by
management such as:

• Work will be executed in the manner
expected so that the project is completed
timely unless there are circumstances to
indicate that the project due dates will not
be met, in which case, costs are estimated
upto the expected date of completion;

• Consumption norms will remain same;

• Cost escalation comprising of increase in
cost to compete the project are considered
as a part of budgeted cost to complete the
project including known contingencies etc.

Due to technical complexities involved in the
budgeting process, contract estimates are highly
sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date.

Service Contracts

For service contracts (including maintenance
contracts) in which the Company has the right

to consideration from the customer in an amount
that corresponds directly with the value to
the customer of the Company’s performance
completed to date, revenue is recognized when
services are performed and contractually billable.

Revenue from sale of Ready Mix Concrete
(RMC) and other materials

Revenue from sale of goods is recognized at
the point in time when control of the asset is
transferred to the customer, generally on delivery
of the goods. The normal credit term is 30 to 90
days upon delivery.

Revenue from scrap sales and other ancillary
sales is recognised when the control over the
goods is transferred to the customers.

Variable Consideration

The nature of the Company’s contracts gives
rise to several types of variable consideration,
including claims, unpriced change orders, award
and incentive fees, change in law, liquidated
damages and penalties. The company recognizes
variable consideration in the transaction price
/ revenue when it is probable that a significant
reversal in the amount of cumulative revenue
recognized will not occur. The Company
estimates the amount of revenue to be recognized
on variable consideration using the expected
value (i.e., the sum of a probability-weighted
amount) or the most likely amount method,
whichever is expected to better predict the
amount.

The Company’s claim for extra work, incentives
and escalation in rates relating to execution of
contracts are recognized as revenue in the year
in which said claims are finally accepted by
the clients. Claims under arbitration/disputes
are accounted as income based on final award.
Expenses on arbitration are accounted as
incurred. Claims - are recognized on its approval
from client/authority/court decision or its surety
of receipt (Not on assessment).

Contract modifications

Contract modifications are accounted for when
additions, deletions or changes are approved
either to the contract scope or contract price.
The accounting for modifications of contracts
involves assessing whether the services added to
the existing contract are distinct and whether the
pricing is at the standalone selling price. Services
added that are not distinct are accounted for on a
cumulative catch-up basis, while those that are
distinct are accounted for prospectively, either
as a separate contract, if additional services are

priced at the standalone selling price, or as a
termination of existing contract and creation of
a new contract if not priced at the standalone
selling price.

B) Contract Balances
Contract Assets

A contract asset is the right to consideration
in exchange for goods or services transferred
to the customer. If the Company performs by
transferring goods or services to a customer
before the customer pays consideration or before
payment is due, a contract asset is recognised for
the earned consideration that is conditional.

Contract assets represent revenue recognized
in excess of amounts billed and include
unbilled receivables. Unbilled receivables,
which represent an unconditional right to
payment subject only to the passage of time, are
reclassified to accounts receivable when they are
billed under the terms of the contract.

Trade Receivables

A receivable represents the Company’s right to
an amount of consideration that is unconditional
(i.e., only the passage of time is required before
payment of the consideration is due). Refer to
accounting policies of financial assets in point 9
of Accounting Policies - Financial Instruments.

Contract Liabilities

A contract liability is the obligation to transfer
goods or services to a customer for which
the Company has received consideration (or
an amount of consideration is due) from the
customer. If a customer pays consideration
before the Company transfers goods or services
to the customer, a contract liability is recognised
when the payment is made, or the payment is
due (whichever is earlier). Contract liabilities
are recognised as revenue when the Company
performs under the contract.

Contract liabilities include unearned revenue
which represents amounts billed to clients
in excess of revenue recognized to date and
advances received from customers. For contracts
where progress billing exceeds, the aggregate of
contract costs incurred to date plus recognised
profits (or minus recognised losses, as the case
may be), the surplus is shown as contract liability
and termed as unearned revenue. Amounts
received before the related work is performed
are disclosed in the balance sheet as contract
liability and termed as advances received from
customers.

24. Significant accounting judgments, estimates &
assumptions

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

Estimates and assumptions

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

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

Significant Estimates in Application of Ind AS 115

The Company applied the following estimates that
significantly affect the determination of the amount
and timing of revenue from contracts with customers:

Project revenue and costs

The percentage-of-completion method places
considerable importance on accurate estimates of the
extent of progress towards completion (i.e actual costs
incurred / total estimated costs of the project). These
estimates include costs to complete the contract,
estimating expected dates of completion in case of
delays, contingencies and various contract risks,
including technical, political and regulatory risks,
and other judgement. The Company re-assesses these
estimates on periodic basis and makes appropriate
revisions accordingly.

Determining method to estimate variable
consideration and assessing the constraint

Before including any amount of variable consideration
in the transaction price, the Company estimates
whether the amount of variable consideration is
constrained in similar projects based on its historical
experience, various correspondence with customer,

time expectation to settle the amount of variable
consideration etc.

Other Significant Accounting judgements,
estimates and assumptions

Taxes

Uncertainties exist with respect to the interpretation of
complex tax regulations, changes in tax laws, and the
amount and timing of future taxable income. Given
the wide range of business relationships and the long¬
term nature and complexity of existing contractual
agreements, differences arising between the actual
results and the assumptions made, or future changes to
such assumptions, could necessitate future adjustments
to tax income and expense already recorded. The
Company establishes provisions, based on reasonable
estimates. The amount of such provisions is based on
various factors, such as experience of previous tax
audits and differing interpretations of tax regulations
by the taxable entity and the responsible tax authority.
Such differences of interpretation may arise on a
wide variety of issues depending on the conditions
prevailing in the respective domicile of the companies.

Significant management judgment is required to
determine the amount of deferred tax assets that can
be recognised, based upon the likely timing and the
level of future taxable profits together with future tax
planning strategies.

Employee benefit plans

The cost of defined benefit gratuity plan and other
post-employment benefits are determined using
actuarial valuations.

An actuarial valuation involves making various
assumptions that may differ from actual developments
in the future. These include the determination of the
discount rate, future salary increases and mortality
rates. Due to the complexities involved in the valuation
and its long-term nature, a defined benefit obligation
is highly sensitive to changes in these assumptions.
All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount
rate. In determining the appropriate discount rate for
plans operated in India, the management considers
the interest rates of government bonds in currencies
consistent with the currencies of the post-employment
benefit obligation.

The mortality rate is based on publicly available
mortality tables for India. Those mortality tables tend
to change only at interval in response to demographic
changes. Future salary increases and gratuity increases
are based on expected future inflation rates for the
respective countries.

Further details about gratuity obligations are given in
Note 51.

Fair value measurement of financial instruments

When the fair values of financial assets and financial
liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets,
their fair value is measured using valuation techniques
including the Discounted Cash Flows (DCF) model.
The inputs to these models are taken from observable
markets where possible, but where this is not feasible,
a degree of judgement is required in establishing fair
values with respect to estimated cash flows, growth
rates, discount rates etc. Changes in assumptions
about these factors could affect the reported fair value
of financial instruments.

Impairment of financial assets

The impairment provision for financial assets are
based on assumptions about risk of default and
expected loss rates. The Company uses judgement in
making these assumptions and selecting the inputs to
the impairment calculation, based on the Company’s
past history, existing market conditions as well as
forward looking estimates at the end of each reporting
period.

Impairment of investments in / loans given to
subsidiaries and associates

Impairment exists when the carrying value of an
asset or cash generating unit exceeds its recoverable
amount, which is the higher of its fair value less costs
of disposal and its value in use. The fair value less
costs of disposal calculation is based on available data
for similar assets or observable market prices less
incremental costs for disposing of the asset. The value
in use calculation is based on a DCF model. The cash
flows are derived from the budget generally covering
a period of the concession agreements using long
terms growth rates and do not include restructuring
activities that the Company is not yet committed to
or significant future investments that will enhance
the asset’s performance being tested. The recoverable
amount is sensitive to the discount rate used for the
DCF model as well as the expected future cash-inflows
and the growth rate used for extrapolation purposes.
Further, the Company considers favorable arbitration
awards towards its claim from various authorities
in the impairment assessment of subsidiaries and
associates on the basis of probability assessment.

Allowance for expected credit loss

The Company uses a provision matrix to calculate
Expected Credit Loss (ECL) for trade receivables
and contract assets. The provision rates are based on
days past due for Companyings of various customer

segments that have similar loss patterns (i.e., by
project type, customer type and other identifiable
factors).

The provision matrix is initially based on the
Company’s historical observed default rates. The
Company will calibrate the matrix to adjust the
historical credit loss experience with forward-looking
information. At every reporting date, the historical
observed default rates are updated and changes in the
forward-looking estimates are analysed.

The assessment of the correlation between historical
observed default rates, forecast economic conditions
and ECLs is a significant estimate. The amount of
ECLs is sensitive to changes in circumstances and
of forecast economic conditions. The Company’s
historical credit loss experience and forecast of
economic conditions may also not be representative
of customer’s actual default in the future.

Litigations and Contingencies - Refer Note 15
above

25. New and Amended standards

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

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

• A specific adaptation for contracts with
direct participation features (the variable
fee approach)

• A simplified approach (the premium
allocation approach) mainly for short-
duration contracts.

The application of Ind AS 117 does not have
a material impact on the Company’s financial
statements.

ii. Amendments to Ind AS 116 Leases - Lease
Liability in a Sale and Leaseback. The MCA
notified the Companies (Indian Accounting
Standards) Second Amendment Rules, 2024,
which amend Ind AS 116, Leases, with respect
to Lease Liability in a Sale and Leaseback. The
amendment specifies the requirements that a
seller-lessee uses in measuring the lease liability
arising in a sale and leaseback transaction,
to ensure the seller-lessee does not recognise
any amount of the gain or loss that relates to
the right of use it retains. The amendment is
effective for annual reporting periods beginning
on or after April 01, 2024 and must be applied
retrospectively to sale and leaseback transactions
entered into after the date of initial application of
Ind AS 116.

The amendments do not have a material impact on the

Company’s financial statements.

Nature and purpose of Reserves
Securities Premium :

Securities Premium is used to record the premium on issue of shares and utilised in accordance with the provisions of the
Companies Act, 2013.

General Reserve :

General Reserve is used from time to time to transfer profits from Retained Earnings for appropriation purposes. As the
General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive
income, items included in General Reserve will not be reclassified subsequently to Statement of Profit and Loss.

Debenture Redemption Reserve :

The Company had created a Debenture Redemption Reserve at the time of issue of Non Convertible Debentures out of the
profits which are available for payment of dividend to be utilised for Redemption of these Debentures. During the year ended
March 31, 2020, the Company had redeemed all the outstanding Non Convertible Debentures, and transferred the balance of
Debenture Redemption Reserve to the General Reserve.

Retained Earning : Retained Earnings are the profits of the Company earned till date net of appropriation

Valuation technique used to determine fair value:

• Level 1 - This level includes those financial instruments which are measured by reference to quoted prices (unadjusted) in
active markets for identical assets or liabilities.

• Level 2 - This level includes financial assets and liabilities measured using inputs other than quoted prices included within
Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

• Level 3 - This level includes financial assets and liabilities measured using inputs that are not based on observable market data
(unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are
neither supported by prices from observable current market transactions in the same instrument nor are they based on available
market data.

Note: All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy
described as above, based on the lowest level input that is significant to the fair value measurement as a whole. Recoverable value
of investment in Ashoka Concessions Limited is determined based on the fair value as per the share purchase agreements executed
with respect to its investments in toll / annuity assets.

Note 48 : Financial risk management objectives and policies

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate
risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly
to reflect changes in market conditions and the Company’s activities.

The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework.
The Company has exposure to the following risks arising from financial instruments:

(A) Credit risk:

(B) Liquidity risk: and

(C) Market risk:

(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Company’s receivables from customers and loans and advances.

The Company’s customer profile include public sector enterprises, state owned companies, group companies, individual and
corporates customer. General payment terms include mobilisation advance, monthly progress payments with a credit period
ranging from 45 to 90 days and certain retention money to be released at the end of the project. In some cases retentions are
substituted with bank/corporate guarantees. The Company has a detailed review mechanism of overdue customer receivables
at various levels within organisation to ensure proper attention and focus for realisation.

Cash and cash equivalents

Cash and cash equivalents (excluding cash on hand) of ? 13,470.36 Lakhs at March 31, 2025 (March 31, 2024: ? 35,762.35
Lakhs) The cash and cash equivalents (excluding cash on hand) are held with bank and financial institution counterparties
with good credit rating.

Bank Balances other than Cash & cash equivalents

Bank Balances other than Cash and cash equivalents of ? 10,505.50 Lakhs at March 31, 2025 (March 31, 2024: ? 15,271.57
Lakhs). The Bank Balances other than cash and cash equivalents are held with bank and financial institution counterparties
with good credit rating.

Investments & Loan

Investments & Loan are with only group companies in relation to the project execution which are closely monitored to avoid
any impairment risk on there investment / loans.

(B) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity
to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or
risking damage to the Company’s reputation.

The Company manages liquidity risk by maintaining sufficient cash and marketable securities and by having access to
funding through an adequate amount of committed credit lines. Management regularly monitors the position of cash and cash
equivalents vis-a-vis projections. Assessment of maturity profiles of financial assets and financial liabilities including debt
financing plans and maintenance of Balance Sheet liquidity ratios are considered while reviewing the liquidity position.

Maturities of financial liabilities noted in Note 23, 24, 25, 28, 29 & 30 is given below at undiscounted value :-

Interest Rate Risk

As infrastructure development and construction business is capital intensive, the Company is exposed to interest rate
risks. The Company''s infrastructure development and construction projects are funded to a large extent by debt and
any increase in interest expense may have an adverse effect on our results of operations and financial condition. The
Company current debt facilities carry interest at variable rates with the provision for periodic reset of interest rates. As
of March 31, 2025, majority of the Company''s indebtedness was subject to variable/fixed interest rates.

The interest rate risk exposure is mainly from changes in floating interest rates. The interest rate are disclosed in the
respective notes to the financial statement of the Company. The following table analysis the breakdown of the financial
assets and liabilities by type of interest rate:

Note 50 : Leases

Disclosures pursuant to Ind AS 116 "Leases"

The Company has elected not to apply the requirements of Ind AS 116 to short term leases of all the assets that have a lease term of
twelve months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases are
recognized as an expense on a straight line basis over the lease term.

The Company had total cash outflows for leases of '' 339.06 Lakhs for the year ended March 31, 2025 (March 31, 2024 : '' 476.98
Lakhs)

Refer Note 2A for additions to right-of-use assets and the carrying amount of right-of-use assets as at March 31, 2025.

The effective interest rate for lease liabilities is between the range of 9% to 10%

5. Terms and conditions of transations with related parties

i) Contract billings to related parties and concerned balances

Contract billings with related parties are made under the terms that are consistent with those applied to third-party
transactions, adhering to the principles of arm''s length pricing. These billings are based on contracts entered with related
parties, reflecting prevailing prices / costs estimated at the time of bidding, as well as standard industry practices. Such
billings generally include payment terms requiring related party to make payment within 30 to 90 days from the date of
invoice. Trade receivables outstanding balances are unsecured, interest free and require settlement in cash. No guarantee
or other security has been received against these receivables.

ii) Purchases of goods / availing of services and concerned balances

Purchases of goods and services from related parties are made on the same terms as applicable to third parties in an arm’s
length transaction and in the ordinary course of business. Purchase transactions are made on normal commercial terms,
conditions and market rates. Trade payables outstanding balances are unsecured, interest free and require settlement in
cash. No guarantee or other security has been given against these payables.

iii) Loans (including perpetual debt) given to related parties

The Company has given unsecured loans (including perpetual debt) to related parties for general corporate purposes.
Perpetual debts are interest free loans given by the Company to its subsidiaries, associates and joint venture which are
repayable at the discretion of the borrower and the Company has classified these investments as Equity Instrument in
the Financial Statements. The other loans carries interest reflecting prevailing market rates / standard industry practices.
These loans have been utilized by the related parties for the purpose it was given. For the year ended March 31, 2025, the
Company has recorded impairment on loans (including perpetual debt) due from subsidiaries amounting to '' 900 lakhs
(March 31, 2024: '' 375 lakhs).

iv) Loans taken from the related parties

The Company has taken borrowings from related parties for general corporate purposes. These borrowings are unsecured
and carries interest reflecting prevailing market rates / standard industry practices (refer Note 28 & 23). The loans has
been utilized by the Company for the purpose it was obtained.

v) Guarantees given on behalf of related parties

Guarantees provided to the lenders of the subsidiaries are for availing term loans facilities from the lender banks. The
Company expects that subsidiaries will make payment to the banks when these loans are repayable. For the year ended
March 31, 2025, the Company has not recorded any impairment on guarantee arrangement (3l March 2024: Nil).

vi) Remuneration paid to Key managerial personnel (KMPs)

The amounts represents the expense recognised, which includes remuneration paid during the financial year related to
KMPs as approved by the respective committees. The amounts do not include expense, if any, recognised toward post¬
employment benefits and other long-term benefits of key managerial personnel. Such expenses are measured based on an
actuarial valuation done for the Company as a whole. Hence, amounts attributable to KMPs are not separately determinable.

vii) The transactions other than mentioned above are also in the ordinary course of business and at arms’ length basis.

Note 53 : Segment Reporting

As permitted by paragraph 4 of Ind AS 108, "Operating Segments", notified under section 133 of the Companies Act, 2013, read
together with the relevant rules issued thereunder, if a single financial report contains both consolidated financial statements and
the Separate financial statements of the parents, segment information need to be presented only on the basis of the consolidated
financial statements. Thus disclosures regarding Operating segment is not presented in Standalone Financial Statements.

Note 54 : Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for year attributable to equity holders by the weighted average number
of Equity shares outstanding during the year.

Note: During the year ended March 31, 2018, pursuant to the search proceedings carried out in April 2016, the Company had
received income tax assessment orders under section 153A for the financial year 2010-11 to 2016-17. Income tax authorities had
disallowed certain sub-contractors payments by treating them as not genuine. The Company had the underlying documents to
substantiate the genuineness of the work performed by these sub-contractors and no incriminating documents were found during the
search proceedings. Accordingly, the Company had filed appeals against these assessment orders before the first appellate authority.
Accordingly, as the outcome of the appeal is pending, additional tax payable for these years amounting to '' 72,489.00 Lakhs
(including interest) is treated as contingent liability.

Note 57 : Other Matter

Pursuant to the first information report filed by a law enforcement agency (‘CBI’) in earlier year alleging bribery of certain NHAI
officials by Company personnel for providing undue advantage to the aforesaid persons and the Company with respect to a project
executed in Bihar, on February 28, 2025, the Company has received the final chargesheet dated February 15, 2024 from the Ld.
Court of Special Judge, CBI, Bihar (‘Ld. Court’) whereby the Company has been arraigned in the matter primarily for alleged non¬
completion / deviation in the executed work and minor irregularities in quality of work during the period from April 2021 to August
2022.

As of March 31, 2025, the execution of the said project has been substantially completed and the management believes that the
Company has adhered to the contractual obligations and is of view that there would not be any material impact on the financial
statements in this regard. Further, the Company is in the process of reviewing and evaluating the chargesheet in consultation with
its legal experts for the next steps to challenge the matter, including filing of a writ petition with the High Court for quashing of the
allegations made in the chargesheet.

As the matter is sub-judice, pending outcome of the same with the Ld. Court, no adjustments have been made to the standalone
financial statements.

Note 58 : Financial Guarantees and Other Commitments

a) Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the
holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt
instrument and it is based on the maximum amount that can be called for under the financial guarantee contract.

Note 64: Ashoka Concessions Limited (ACL), a subsidiary company, had issued Compulsorily Convertible Debentures (CCD) to its
investors and to the Company (Parent) which has been classified as equity instrument in the separate financial statements of ACL.
The Company has agreed additional terms with the investors and assumed obligations towards investors which would be settled
through the some portion of equity shares to be received from ACL on conversion of CCDs held by parent Company. Accordingly
the said obligations has been recognised at its fair value as at March 31, 2025 amounting to '' 36,131.28 Lakhs (March 31, 2024 -
'' 37,200 Lakhs).

Note 65: Exceptional items:

During the year ended March 31, 2024, pursuant to compliance with the conditions precedent in the share purchase agreement
(‘SPA’) entered into with Mahanagar Gas Limited (‘MGL’), the Company had sold its investment in Unison Enviro Private Limited
(''UEPL''), a subsidiary of the Company to MGL for a consideration of '' 28,666.71 lakhs. Accordingly, the Company had recognised
the gain on sale of investment of '' 21,663.93 lakhs in the statement of profit and loss for the year ended March 31, 2024 and
disclosed the same as an exceptional item.

Note 66: Assets Held for Sale :

i) The Company and its subsidiary Ashoka Concessions Limited (''ACL'') have entered into share subscription and purchase
agreements and other transaction documents for sale of its entire stake in five of its wholly owned subsidiaries namely Ashoka
Belgaum Dharwad Tollway Limited, Ashoka Highways (Durg) Limited, Ashoka Highways (Bhandara) Limited, Ashoka
Dhankuni Kharagpur Tollway Limited and Ashoka Sambalpur Baragarh Tollway Limited which are engaged in construction
and operation of road projects on Build Operate Transfer (BOT) basis. Further, the Company and ACL have executed the
share subscription and purchase agreements and other transaction documents for divestment of their entire stake in certain
subsidiaries (completed projects), engaged in construction and operation of Road Projects on Hybrid Annuity Mode (HAM)
basis awarded by National Highways Authority of India (''NHAI''). The above transactions are subject to completion of certain
conditions precedent including approval from the lenders of the respective subsidiaries and other regulatory approvals.
Besides the above, the Company is also in the process of divesting its 100% stake in GVR Ashoka Chennai ORR Limited.
Considering the high probability of the sale transactions getting completed, as per Ind AS 105, the investments made, loans
given to these subsidiaries and related current assets/liabilities have been classified as held for sale. Out of the above, BOT
subsidiaries have been classified as held for sale in the current year.

ii) During the year, the Company along with its subsidiaries viz. Viva Highways Ltd (“VHL”) and ACL have entered into an
agreement on October 30, 2024, with Macquarie SBI Infrastructure Investments Pte. Limited and SBI Macquarie Infrastructure
Trust (collectively, the “Investors”) to acquire entire investments of Investors in ACL (comprising of equity shares and
Compulsorily Convertible Debentures) and in Jaora Nayagaon Toll Road Company Private Limited (‘JTCL’), which is subject
to completion of certain conditions precedent including sale of certain project assets of ACL and the Company.

Note 67: Impact on Indexation benefit on assets held for sale

Pursuant to the enactment of the Finance (No.2) Bill, 2024, ‘index cost of acquisition’ has been replaced with ''cost of acquisition''
for the purposes of computation of long-term capital gains, resulting in withdrawal of indexation benefits available to the Company.
As a result, the deferred tax asset of ? 1,268.64 lakhs recognised earlier with respect to taxable temporary difference between the
carrying value and tax base of investments in equity shares (index cost of acquisition) classified as held for sale has been reversed
during the year ended March 31, 2025.

Note 68: The Code on Social Security, 2020

The Code on Social Security 2020 (''Code'') has been notified in the Official Gazette on 29th September, 2020.The Code is not yet
effective and related rules are yet to be notified. Impact if any of the change will be assessed and recognized in the period in which
said Code becomes effective and the rules framed thereunder are notified.

Note 69: Other Statutory Information

1. No proceedings have been initiated or are pending against the Company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 and rules made thereunder.

2. The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013
read with the Companies (Restriction on number of Layers) Rules, 2017 (as amended).

3. The Company has neither traded nor it holds any investment in Crypto currency or Virtual Currency.

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

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

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

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

6. The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.

7. Returns and statements of current assets filled by the Company with bank are in agreement with the books of accounts and there
are no material discrepancies

8. The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

9. The Company has used two accounting software’s for maintaining its books of account which has a feature of recording audit
trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software,
except that audit trail feature is not enabled for certain changes made using privileged/ administrative access rights to the
SAP HANA application and the underlying HANA database. Tally ERP accounting software used for maintaining its books
of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for
all relevant transactions recorded in the software. Further no instance of audit trail feature being tampered with was noted
in respect of accounting software where the audit trail has been enabled. Additionally, the audit trail of prior years has been
preserved by the Company as per the statutory requirements for record retention to the extent it was enabled and recorded in
the respective years.

10. The Company is currently operating on two softwares - SAP HANA and Tally ERP Systems. With respect to the Tally ERP
system, the Company has a defined process to take daily back-up of books of account maintained electronically however
the current accounting application does not support maintenance of logs of backups taken on a daily basis. The management
is in the process of taking necessary steps to configure systems to ensure that logs of daily backup for books of account is
maintained in order to ensure compliance with the requirements of the applicable statute.

Note 70: Events after reporting period

There were no significant adjusting events that occurred subsequent to the reporting period other than the events disclosed in the

relevant notes.

As per our report of even date attached

For S R B C & CO LLP For & on behalf of the Board of Directors of Ashoka Buildcon Limited

Chartered Accountants

ICAI Firm Registration Number:

324982E/E300003

---

Mar 31, 2024

15. Provisions & Contingencies

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events for which it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated as at the balance sheet date. Provisions are measured based on management’s estimate required to settle the obligation at the balance sheet date and are discounted using a rate that reflects the time value of money. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

Other Litigation claims

Provision for litigation related obligation represents liabilities that are expected to materialize in respect of matters in appeal.

Onerous contracts

A provision for onerous contracts is measured at the present value of the lower expected costs of terminating the contract and the expected cost of continuing with the contract. Before a provision is established, the Company recognizes impairment on the assets with the contract.

Contingencies

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but will probably not, require an outflow of resources. Information on contingent liabilities is disclosed in the notes to financial statements unless the possibility of an outflow of resources embodying economic benefit is remote.

A contingent asset is not recognised but disclosed in the financial statements where an inflow of economic benefit is probable and are reviewed at each balance sheet date.

16. Provision for Defect liability period/Resurfacing obligations

The Company provides for contractual obligations to periodically service, repair or rectify any defective work during the defect liability period as well as towards contractual obligations to restore the infrastructure at periodic intervals. Provisions are measured based on management’s estimate required to settle the obligation at the balance sheet date and are discounted using a rate that reflects the time value of money. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. The same is reviewed at each balance sheet date and adjustments if any to the carrying amount is provided for accordingly.

In case of service concession arrangements classified as financial assets, expenses recognised in the period in which such costs are actually incurred.

17. Leases

Company as a lessee

The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets.

Lease term which is a non-cancellable period together with periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option; and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. The Company uses judgement in assessing the lease term (including anticipated renewals/ termination options).

The Company recognizes lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

i. Right-of-use assets

The Company recognizes right-of-use assets at the commencement date of the lease. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis from the commencement date to the end of lease term.

If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.

The right-of-use assets are also subject to impairment.

Refer to the accounting policies of Impairment of non-financial assets.

ii. Lease liabilities

At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable.

After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments or a change in the assessment of an option to purchase the underlying asset.

iii. Short term leases and leases of low value of assets

The Company applies the short-term lease recognition exemption to its short-term leases of machinery and equipment. It also applies the lease of low-value assets recognition exemption to leases that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

Company as a lessor

Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.

Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Company to the lessee.

18. Taxes

Income tax expense for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate and changes in deferred tax assets and liabilities attributable to temporary differences. The current income tax charge is calculated in accordance with the provisions of the Income Tax Act 1961.

Tax expense comprises current tax expense and deferred tax.

Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted at the end of the reporting period and are expected to apply when the related deferred income tax asset is realised, or the deferred income tax liability is settled.

Deferred tax liabilities are recognized for all taxable temporary differences and deferred tax assets are recognized for all deductible temporary differences and brought forward losses only if it is probable that future taxable profit will be available to realize the temporary differences, excluding exceptions cases.

Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

19. Employee benefits

a. Short-term obligations

All employee benefits falling due wholly within twelve months of rendering the service are classified as shortterm employee benefits. These are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

b. Post-employment obligations i.e.

• Defined benefit plans and

• Defined contribution plans.

Defined benefit plans:

The employees’ gratuity fund scheme, managed by Life Insurance Corporation (LIC) is a defined benefit

plan. The present value of obligation is determined based on actuarial valuation carried out as at the end of each financial year using the Projected Unit Credit Method.

The obligation is measured at the present value of the estimated future cash flows. The discount rate used for determining the present value of the obligation under defined benefit plans, is based on the market yield on government securities, of a maturity period equivalent to the weighted average maturity profile of the related obligations at the Balance Sheet date.

Re-measurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. Re-measurement recognised in other comprehensive income is reflected immediately in retained earnings and is not reclassified to profit or loss. Past service cost is recognised in the statement of profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset.

Defined contribution plans:

The Company’s contribution to provident fund, employee state insurance scheme, superannuation fund and National Pension Scheme (NPS) are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made and when services are rendered by the employee.

c. Other long term employee benefits

The Company’s net obligation in respect of longterm employee benefits other than post-employment benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any related assets is deducted.

The obligation is measured on the basis of an annual independent actuarial valuation using the projected unit credit method. Remeasurements gains or losses are recognised in profit or loss in the period in which they arise.

!0. Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise

cash at banks and on hand and short-term deposits with an

original maturity of three months or less, which are subject

to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company’s cash management.

21. Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker, who regularly monitors and reviews the operating result for following operating segments of the Company:

i. “Construction & Contract Related Activity”, includes Engineering, Procurement and Construction activity of infra projects;

ii. “Built, Operate and Transfer (BOT)” includes Annuity to develop infra developer under BOT & Annuity

i. “Sale of Goods” consist mainly Sale of construction material which includes RMC and Real estate

22. Business Combination

Acquisition of business has been accounted for using the acquisition method. The consideration transferred in business combination is measured at the aggregate of the acquisition date fair values of assets given, liabilities incurred by the Company to the former owners of the acquiree and consideration paid by the Company in exchange for control of the acquiree. Acquisition related costs are recognised in the statement of profit and loss.

23. Revenue recognition A) Revenue

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company has generally concluded that it is the principal in its revenue arrangements because it typically controls the goods or services before transferring them to the customer.

Revenue from construction contracts

Performance obligation in case of long - term construction contracts is satisfied over a period of time, since the Company creates an asset that the customer controls as the asset is created and the Company has an enforceable right to payment for performance completed to date if it meets the agreed specifications.

Revenue from long term construction contracts, where the outcome can be estimated reliably and 5% of the project cost is incurred, is recognized under the

percentage of completion method by reference to the stage of completion of the contract activity.

The stage of completion is measured by input method i.e. the proportion that costs incurred to date bear to the estimated total costs of a contract. The percentage-of-completion method (an input method) is the most faithful depiction of the company’s performance because it directly measures the value of the services transferred to the customer.

The total costs of contracts are estimated based on technical and other estimates. In the event that a loss is anticipated on a particular contract, provision is made for the estimated loss after review of budgets and if contract cost exceed contract price.

Contract revenue earned in excess of billing is reflected under as “contract asset” and billing in excess of contract revenue is reflected under “contract liabilities”.

Revenue - Billing to be done based on milestone completion basis or Go-live of project basis can be mentioned.

Retention money receivable from project customers does not contain any significant financing element, these are retained for satisfactory performance of contract.

In case of long - term construction contracts payment is generally due upon completion of milestone as per terms of contract. In certain contracts, shortterm advances are received before the performance obligation is satisfied.

The major component of contract estimate is “budgeted cost to complete the contract” and on assumption that contract price will not reduce vis-avis agreement values. While estimating the various assumptions are considered by management such as:

• Work will be executed in the manner expected so that the project is completed timely;

• Consumption norms will remain same;

• Cost escalation comprising of increase in cost to compete the project are considered as a part of budgeted cost to complete the project etc.

Due to technical complexities involved in the budgeting process, contract estimates are highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

Service Contracts

For service contracts (including maintenance contracts) in which the company has the right to consideration from the customer in an amount that

corresponds directly with the value to the customer of the company’s performance completed to date, revenue is recognized when services are performed and contractually billable.

Revenue recognition under Service Concession Arrangements

In case of entities involved in construction and maintenance of roads, revenue are recognised in line with the Appendix C to Ind AS 115 - Service Concession Arrangements. The revenue is recognized in the period of collection which generally coincides as and when the traffic passes through toll plazas.

Revenue from sale of Ready Mix Concrete (RMC) and other materials

Revenue from sale of goods is recognized at the point in time when control of the asset is transferred to the customer, generally on delivery of the goods. The normal credit term is 30 to 90 days upon delivery.

Revenue from scrap sales and other ancillary sales is recognised when the control over the goods is transferred to the customers.

Warranty Obligation

The Company provides for contractual obligations to periodically service, repair or rectify any defective work during the defect liability period as well as towards contractual obligations to restore the infrastructure at periodic intervals. Provisions are measured based on management’s estimate required to settle the obligation at the balance sheet date and are discounted using a rate that reflects the time value of money. When discounting is used, the increase in the provision due to the passage of time is recognized as finance cost. The same is reviewed at each balance sheet date and adjustments if any to the carrying amount is provided for accordingly.

In case of service concession arrangement classified as financial assets, expenses recognized in the period in which such costs are actually incurred.

Variable Consideration

The nature of the Company’s contracts gives rise to several types of variable consideration, including claims, unpriced change orders, award and incentive fees, change in law, liquidated damages and penalties. The company recognizes revenue for variable consideration when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The company estimates the amount of revenue to be recognized on variable consideration using the expected value (i.e., the sum of a probability-weighted amount) or the most likely amount method, whichever is expected to better predict the amount.

The Company’s claim for extra work, incentives and escalation in rates relating to execution of contracts are recognized as revenue in the year in which said claims are finally accepted by the clients. Claims under arbitration/disputes are accounted as income based on final award. Expenses on arbitration are accounted as incurred. Claims - are recognized on its approval from client/authority/court decision or its surety of receipt. (Not on assessment)

Before including any amount of variable consideration in the transaction price, the Company considers whether the amount of variable consideration is constrained. The Company determined that the estimates of variable consideration are not constrained based on its historical experience, business forecast and the current economic conditions. In addition, the uncertainty on the variable consideration will be resolved within a short time frame.

Contract modifications

Contract modifications are accounted for when additions, deletions or changes are approved either to the contract scope or contract price. The accounting for modifications of contracts involves assessing whether the services added to the existing contract are distinct and whether the pricing is at the standalone selling price. Services added that are not distinct are accounted for on a cumulative catch-up basis, while those that are distinct are accounted for prospectively, either as a separate contract, if additional services are priced at the standalone selling price, or as a termination of existing contract and creation of a new contract if not priced at the standalone selling price.

B) Contract Balances Contract Assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional.

Contract assets represent revenue recognized in excess of amounts billed and include unbilled receivables. Unbilled receivables, which represent an unconditional right to payment subject only to the passage of time, are reclassified to accounts receivable when they are billed under the terms of the contract.

Trade Receivables

A receivable represents the Company’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Refer to accounting policies

of financial assets in point 9 of Accounting Policies -Financial Instruments.

Contract Liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made, or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under the contract.

Contract liabilities include unearned revenue which represents amounts billed to clients in excess of revenue recognized to date and advances received from customers. For contracts where progress billing exceeds, the aggregate of contract costs incurred to date plus recognised profits (or minus recognised losses, as the case may be), the surplus is shown as contract liability and termed as unearned revenue. Amounts received before the related work is performed are disclosed in the balance sheet as contract liability and termed as advances received from customers.

24. Significant accounting judgments, estimates & assumptions

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

Estimates and assumptions

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

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

Significant Estimates in Application of Ind AS 115

The Company applied the following estimates that significantly affect the determination of the amount and timing of revenue from contracts with customers:

Project revenue and costs

The percentage-of-completion method places considerable importance on accurate estimates of the extent of progress towards completion and may involve estimates on the scope of deliveries and services required for fulfilling the contractually defined obligations. These significant estimates include total contract costs, total contract revenue, contract risks, including technical, political and regulatory risks, and other judgement. The Company reassesses these estimates on periodic basis and makes appropriate revisions accordingly.

Determining method to estimate variable consideration and assessing the constraint

Before including any amount of variable consideration in the transaction price, the Company considers whether the amount of variable consideration is constrained. The Company determined that the estimates of variable consideration are not constrained based on its historical experience, business forecast and the current economic conditions. In addition, the uncertainty on the variable consideration will be resolved within a short time frame.

Other Significant Accounting judgements, estimates and assumptions

Taxes

Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income. Given the wide range of business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Company establishes provisions, based on reasonable estimates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective domicile of the companies.

Significant management judgment is required to determine the amount of deferred tax assets (including MAT credit) that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

Employee benefit plans

The cost of defined benefit gratuity plan and other postemployment benefits are determined using actuarial valuations.

An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation.

The mortality rate is based on publicly available mortality tables for India. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates for the respective countries.

Further details about gratuity obligations are given in Note 50.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flows (DCF) model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

Impairment of financial assets

The impairment provision for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

Impairment of subsidiaries and associates

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data for similar assets or observable

market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are derived from the budget generally covering a period of the concession agreements using long terms growth rates and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset’s performance being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes. Further, the Company considers favorable arbitration awards towards its claim from various authorities in the impairment assessment of subsidiaries and associates on the basis of probability assessment.

Allowance for uncollectible trade receivables

Trade receivables do not carry interest and are stated at their nominal values as reduced by appropriate allowances for estimated irrecoverable amounts. Estimated irrecoverable amounts are based on the aging of the receivable balances and historical experiences. Individual trade receivables are written off when management deems them not be collectible.

Litigations and Contingencies - Refer Note 16 above

25. Changes in Ind AS and related pronouncements effective at a future date

A. New and Amended standards.

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated 31 March 2023 to amend the following Ind AS which are effective for annual periods beginning on or after 1 April 2023. The Company applied for the first-time these amendments.

i. Disclosure of Accounting Policies - Amendments

to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ‘significant’ accounting policies with a requirement to disclose their ‘material’ accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

The amendments have had an impact on the Company’s disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the Company’s financial statements.

ii. Definition of Accounting Estimates -Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates.

The amendments had no impact on the Company’s financial statements.

iii. Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to Ind AS 12.

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases.

The Company previously recognised for deferred tax on leases on a net basis. As a result of these amendments, the Company has recognised a separate deferred tax asset in relation to its lease liabilities and a deferred tax liability in relation to its right-of-use assets. Since, these balances qualify for offset as per the requirements of paragraph 74 of Ind AS 12, there is no impact in the balance sheet.

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

B. Standards notified but not yet effective.

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. There are no standards that have been issued but not yet effective.

Note 44 : Capital management

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

Debt is defined as long-term borrowings, current maturities of long-term borrowings, short-term borrowings and interest accrued thereon (excluding financial guarantee contracts).

Capital includes equity attributable to the equity holders to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximise shareholder value. The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions or its business requirements. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes during the year ended March 31, 2024 and March 31, 2023.

• This level includes those financial instruments which are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities.

• This level includes financial assets and liabilities measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

• This level includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

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

Note 47 : Financial risk management objectives and policies

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities.

The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company has exposure to the following risks arising from financial instruments:

(A) Credit risk:

(B) Liquidity risk: and

(C) Market risk:

(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and loans and advances.

The Company’s customer profile include public sector enterprises, state owned companies, group companies, individual and corporates customer. General payment terms include mobilisation advance, monthly progress payments with a credit period ranging from 45 to 90 days and certain retention money to be released at the end of the project. In some cases retentions are substituted with bank/corporate guarantees. The Company has a detailed review mechanism of overdue customer receivables at various levels within organisation to ensure proper attention and focus for realisation.

Credit risk on trade receivables and unbilled work-in-progress is limited as the customers of the Company mainly consists of the government promoted entities having a strong credit worthiness. The provision matrix takes into account available external and internal credit risk factors such as companies historical experience for customers.

Cash and cash equivalents

Cash and cash equivalents (excluding cash on hand) of ? 35,762.35. Lakhs at March 31, 2024 (March 31, 2023: ? 5,641.41 Lakhs) The cash and cash equivalents (excluding cash on hand) are held with bank and financial institution counterparties with good credit rating. .

Bank Balances other than Cash & cash equivalents

Bank Balances other than Cash and cash equivalents of ? 15,271.57 Lakhs at March 31, 2024 (March 31, 2023: ? 12,989.05 Lakhs). The Bank Balances other than cash and cash equivalents are held with bank and financial institution counterparties with good credit rating. .

Investments & Loan

Investments & Loan are with only group company in relation to the project execution which are closely monitored to avoid any impairment risk on there investment / loans. .

(B) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company manages liquidity risk by maintaining sufficient cash and marketable securities and by having access to funding through an adequate amount of committed credit lines. Management regularly monitors the position of cash and cash equivalents vis-a-vis projections. Assessment of maturity profiles of financial assets and financial liabilities including debt financing plans and maintenance of Balance Sheet liquidity ratios are considered while reviewing the liquidity position.

Maturities of financial liabilities noted in Note 23, 24, 25, 28, 29 & 30 is given below at undiscounted value

(C) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk:

i. Currency risk

ii. Interest rate risk

iii Other price risk such as Commodity risk and Equity price risk.

The following table summaries the carrying amount of financial assets and liabilities recorded at the end of the year by categories:

Interest Rate Risk

As infrastructure development and construction business is capital intensive, the Company is exposed to interest rate risks. The Company''s infrastructure development and construction projects are funded to a large extent by debt and any increase in interest expense may have an adverse effect on our results of operations and financial condition. The Company current debt facilities carry interest at variable rates with the provision for periodic reset of interest rates. As of March 31, 2023, majority of the Company''s indebtedness was subject to variable/fixed interest rates.

The interest rate risk exposure is mainly from changes in floating interest rates. The interest rate are disclosed in the respective notes to the financial statement of the Company. The following table analysis the breakdown of the financial assets and liabilities by type of interest rate:

Note 49 : Leases

Disclosures pursuant to Ind AS 116 "Leases"

"The Company has elected not to apply the requirements of Ind AS 116 to short term leases of all the assets that have a lease term of twelve months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases are recognized as an expense on a straight line basis over the lease term."

The Company had total cash outflows for leases of '' 476.98 Lakhs for the year ended March 31, 2024 (March 31, 2023 : '' 536.69 Lakhs)

Refer Note 2A for additions to right-of-use assets and the carrying amount of right-of-use assets as at March 31, 2024.

The effective interest rate for lease liabilities is 10%,

Note: During the year ended March 31, 2018, pursuant to the search proceedings carried out in April 2016, the Company had received income tax assessment orders under section 153A for the financial year 2010-11 to 2016-17. Income tax authorities had disallowed certain sub-contractors payments by treating them as not genuine. The Company had the underlying documents to substantiate the genuineness of the work performed by these sub-contractors and no incriminating documents were found during the search proceedings. Accordingly, the Company had filed appeals against these assessment orders before the first appellate authority. Accordingly, as the outcome of the appeal is pending, additional tax payable for these years amounting to ''2,489.00 Lakhs (including interest) is treated as contingent liability.

Note 56 : Other Matter

During the previous year, a first information report was filed against certain National Highway of Authority India (‘NHAI’) officials, Company and certain employees of the Company by a law enforcement agency (CBI) alleging bribery of such NHAI officials by Company personnel, for providing undue advantage to the aforesaid persons and the Company. Consequently, CBI had arrested five persons, including two NhAI officials and three officials of the Company. The CBI also conducted searches at the residences of the Company officials and the Patna office of the Company and had confiscated cash of the Company amounting to Rs 6.43 lakhs from it''s Patna office. Further, The Ministry of Road Transport and Highways, Government of India (MoRTH) had debarred the Company for 45 days from participating in any bids with NHAI / MoRTH which period ended on April 15, 2023. During the year ended March 31, 2024 , the employees of the Company have been released on bail. The Company has completed the execution of one of the project stretch from Arah - Parana (NH-319) as referred to in the FIR as per agreed contractual timelines and NHAI has issued completion certificate for the same. In view of the foregoing and pending the outcome of the investigation by CBI, management of the Company has decided to carry out independent investigation in the matter when the relevant chargesheets are filed. Pending final outcome of the above mentioned matters, no adjustments have been made to the standalone financial statements in this regard.

Note 57 : Financial Guarantees and Other Commitments

a) Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument and it is based on the maximum amount that can be called for under the financial guarantee contract.

Note 63: Ashoka Concessions Limited (ACL), a subsidiary company, had issued Compulsorily Convertible Debentures (CCD) to its investors and to the Company (Parent) which has been classified as equity instrument in the separate financial statements of ACL. The Company has agreed additional terms with the investors and assumed obligations towards investors which would be settled through the some portion of equity shares to be received from ACL on conversion of CCDs held by parent Company. Accordingly the said obligations has been recognised at its fair value as at March 31, 2024 amounting to '' 37,200 Lakhs (March 3l, 2023 - '' 38,400 Lakhs). Note 64: Exceptional items:

a) During the year ended March 31, 2024, pursuant to compliance with the conditions precedent in the share purchase agreement (‘SPA’) entered into with Mahanagar Gas Limited (‘MGL’), the Company has sold its investment in Unison Enviro Private Limited (''UEPL''), a subsidiary of the Company to MGL for a consideration of '' 28,666.71 lakhs. Accordingly, the Company has recognised the gain on sale of investment of '' 21,663.93 lakhs in the statement of profit and loss.

b) During the previous year, the Company had recorded reversal of impairment on its investment in ACL and reversal of obligation towards investor in ACL amounting to '' 36,718.14 lakhs due to increase in valuation of ACL mainly on account of increased cash flow in its Hybrid Annuity Model projects consequent to increase in interest receivable on annuity payments. Further the Company had recorded impairment on loans given to certain subsidiaries amounting to '' 1,803.03 lakhs. "

Note 65: Assets Held for Sale :

i) The Company and its subsidiary Ashoka Concessions Limited (‘ACL’) are at advanced stage in respect of divestment of their entire stake in certain subsidiaries engaged in construction and operation of Road Projects on Hybrid Annuity Mode (HAM) basis awarded by National Highway Authority of India (‘NHAI’). Considering, high probability of the sale getting completed as per Ind AS 105 - Non-current Assets Held for Sale and Discontinued Operations, the investments made, loans given to these subsidiaries (completed projects) and related current assets/liabilities continued to be classified as held for sale.

ii) During the year, the Company has acquired the remaining 50% equity stake in GVR Ashoka Chennai ORR Limited (‘CORR’, erstwhile joint venture of the Company) from the other joint venturer for a consideration of '' 18,500 lakhs. The Company has obtained control over CORR on the acquisition date (i.e on March 15, 2024). On acquisition of control, Company is progressively proceeding on divestment of its 100% stake in CORR and considering the high probability of the sale getting completed as per Ind AS 105, the investments made, loans given and related current assets/liabilities continued to be classified as held for sale."

Note 66: Build Operate Transfer Assets

In addition to Note no 65 (i) with respect to the ACL’s stake in five of its wholly owned subsidiaries which are engaged in construction and operation of Road Projects on Build Operate Transfer (BOT) basis (referred to as ‘BOT assets’) and a subsidiary of the Company, in view of the management experience in disposal of these assets since classification as ‘held for sale’, time taken for approvals to be received from authorities and lenders, expiry of long stop date of share purchase agreement for the subsidiary company, and considering that the exclusivity clause in the term sheet signed with the potential investors for BOT assets have expired on March 31, 2024, management has reassessed the ‘held for sale’ criteria under Ind AS 105 and has ceased this classification for the purpose of the financial results. Accordingly, the Company has accounted for this change in accordance with Ind AS 105 and the financial results of the previous periods presented have been reclassified / re-presented including deferred tax adjustments. However, ACL and the Company continues to pursue the process for disposal of its stake in these subsidiaries.

Note 67: The Code on Social Security, 2020

The Code on Social Security 2020 (''Code'') has been notified in the Official Gazette on 29th September, 2020.The Code is not yet effective and related rules are yet to be notified. Impact if any of the change will be assessed and recognized in the period in which said Code becomes effective and the rules framed thereunder are notified.

Note 68: Other Statutory Information

1. No proceedings have been initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

2. The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 (as amended).

3. The Company has neither traded nor it holds any investment in Crypto currency or Virtual Currency.

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

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

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

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

6. The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.

7. Returns and statements of current assets filled by the company with bank are in agreement with the books of accounts and there are no material discrepancies

8. The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

9. “The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software, except that audit trail feature is not enabled for certain changes made using privileged access rights to the SAP HANA and / or the underlying HANA database. Further no instance of audit trail feature being tampered with was noted in respect of the accounting software.”

Note 69: Events after reporting period

There were no significant adjusting events that occurred subsequent to the reporting period other than the events disclosed in the relevant notes.

Note 70: Previous year comparatives

Previous year''s figures have been regrouped/reclassified, wherever necessary, to conform to current year classification.

As per our report of even date attached

For S R B C & CO LLP For & on behalf of the Board of Directors of Ashoka Buildcon Limited

Chartered Accountants

ICAI Firm Registration Number:

324982E/E300003

Sd/- Sd/- Sd/- Sd/- Sd/-

per Shyamsundar R Pachisia Ashok Katariya Satish Parakh Paresh Mehta Manoj Kulkarni

Partner Chairman Managing Director Chief Financial Officer Company Secretary

Membership No.: 049237 DIN : 00112240 DIN : 00112324 Membership No.: FCS-7377

Place: Mumbai Place: Nashik

Date: May 22, 2024 Date: May 22, 2024

---

Mar 31, 2023

1) Trade receivables are non interest bearing and are generally on terms of 30 to 90 days in case if sale of products and in case of long term construction contracts, payment is generally due upon completion of milestone as per terms on contract. In certain contracts, advances are received before the performance obligation is satisfied.

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

(III) Terms/rights attached to equity shares:

The Company has only one class of share capital, i.e. equity shares having face value of '' 5 per share. Each holder of equity share is entitled to one vote per share. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be proportion to the number of Equity Shares held by the shareholders.

(VII) The aggregate number of equity shares issued by way of bonus shares in immediately preceding five financial years ended March 31, 2023 - 9,35,74,406 (previous period of five years ended March 31, 2022 - 9,35,74,406).

The Board of Directors at its meeting held on May 29, 2018 proposed a bonus issue of equity shares, in the ratio of one equity share of '' 5 each for every two equity shares of the Company, held by the shareholders as on a record date. Subsequently, the shareholders approved the same and the Company issued the bonus shares on record date i.e. July 13, 2018.

Nature and purpose of Reserves Securities Premium :

Securities Premium is used to record the premium on issue of shares and utilised in accordance with the provisions of the Companies Act, 2013.

General Reserve :

General Reserve is used from time to time to transfer profits from Retained Earnings for appropriation purposes. As the General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in General Reserve will not be reclassified subsequently to Statement of Profit and Loss.

Retained Earning : Retained Earnings are the profits of the Company earned till date net of appropriation

Note 40 : Capital management

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

Debt is defined as long-term borrowings, current maturities of long-term borrowings, short-term borrowings and interest accrued thereon (excluding financial guarantee contracts).

Capital includes equity attributable to the equity holders to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximise shareholder value. The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions or its business requirements. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes during the year ended March 31, 2023 and March 31, 2022.

In order to achieve its overall objective, the Company''s management amongst other things, aims to ensure that it meets the financial covenants attached to the borrowings. Breaches in meeting the financial covenants would permit the bank to seek action as per terms of the agreement. There have been no breaches in the financial covenants of any borrowings in the current year.

1. The management assessed that carrying amount of all financial instruments are reasonable approximation of the fair value.

2. The fair value of borrowings is estimated by discounting future cash flows, currently available for debt on similar terms, credit risk and remaining maturity.

Note 42 : Fair Value Hierarchy

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of March 31, 2023:

Valuation technique used to determine fair value:

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

• Inputs included in Level 2 of Fair Value Hierarchy have been valued based on inputs from banks and other recognised institutions such as FIMMDA/FEDAI.

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

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

Note 43 : Financial risk management objectives and policies

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities.

The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework.

The Company has exposure to the following risks arising from financial instruments:

(A) Credit risk:

(B) Liquidity risk: and

(C) Market risk:

(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and loans and advances.

The Company’s customer profile include public sector enterprises, state owned companies, group companies, individual and corporates customer. General payment terms include mobilisation advance, monthly progress payments with a credit period ranging from 45 to 90 days and certain retention money to be released at the end of the project. In some cases retentions are substituted with bank/corporate guarantees. The Company has a detailed review mechanism of overdue customer receivables at various levels within organisation to ensure proper attention and focus for realisation.

Credit risk on trade receivables and unbilled work-in-progress is limited as the customers of the Company mainly consists of the government promoted entities having a strong credit worthiness. The provision matrix takes into account available external and internal credit risk factors such as companies historical experience for customers.

Impairment allowance on Doubtful debts / Doubtful advances : The provisions are made against Trade receivable/Advances based on "expected credit loss" model as per Ind AS 109.

Management believes that the unimpaired amounts which are past due are collectible in full.

Cash and cash equivalents

Cash and cash equivalents (excluding cash on hand) of ? 5,641.41 Lakhs at March 31, 2023 (March 31, 2022: ? 3,855.56 Lakhs) The cash and cash equivalents (excluding cash on hand) are held with bank and financial institution counterparties with good credit rating.

Bank Balances other than Cash & cash equivalents

Bank Balances other than Cash and cash equivalents of ? 12,989.05 Lakhs at March 31, 2023 (March 31, 2022: ? 10,521.66 Lakhs). The Bank Balances other than cash and cash equivalents are held with bank and financial institution counterparties with good credit rating.

Investments & Loan

Investments & Loan are with only group company in relation to the project execution which are closely monitored to avoid any impairment risk on there investment / loans.

(B) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company manages liquidity risk by maintaining sufficient cash and marketable securities and by having access to funding through an adequate amount of committed credit lines. Management regularly monitors the position of cash and cash equivalents vis-a-vis projections. Assessment of maturity profiles of financial assets and financial liabilities including debt financing plans and maintenance of Balance Sheet liquidity ratios are considered while reviewing the liquidity position.

Note 45 : Leases

Disclosures pursuant to Ind AS 116 "Leases"

The Company applied the available practical expedients wherein it:

• Used a single discount rate to a portfolio of leases with reasonably similar characteristics

• Relied on its assessment of whether leases are onerous immediately before the date of initial application

• Applied the short-term leases exemptions to leases with lease term that ends within 12 months of the date of initial application

• Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application

• Used hindsight in determining the lease term where the contract contained options to extend or terminate the lease

• Applied the standard only to contracts that were previously identified as leases applying Ind AS 17 at the date of initial application.

The Company has lease contracts for various items of plant, machinery, land, building, vehicles and other equipment used in its operations. Leases of land generally have lease terms between 1 to 80 years, while Building, Plant and machinery, motor vehicles and other equipment generally have lease terms between 1 and 5 years. Generally, the Company is restricted from assigning and subleasing the leased assets.

The Company has elected not to apply the requirements of Ind AS 116 to short term leases of all the assets that have a lease term of twelve months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases are recognized as an expense on a straight line basis over the lease term.

The Company had total cash outflows for leases of '' 536.69 Lakhs for the year ended March 31, 2023 (March 31, 2022 : '' 538.02 Lakhs)

Refer Note 2A for additions to right-of-use assets and the carrying amount of right-of-use assets as at March 31, 2023.

The effective interest rate for lease liabilities is 10%,

The maturity analysis of lease liabilities are disclosed in Note 43(b).

(i) Gratuity

The Company operates one defined plan of gratuity for its employees. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure @ 15 days of last drawn salary for each completed year of service. The Gratuity benefit is funded through a defined benefit plan. For this purpose the Company has obtained a qualifying insurance policy from Life Insurance Corporation of India.

Note 48 : Segment Reporting

As permitted by paragraph 4 of Ind AS 108, "Operating Segments", notified under section 133 of the Companies Act, 2013, read together with the relevant rules issued thereunder, if a single financial report contains both consolidated financial statements and the Separate financial statements of the parents, segment information need to be presented only on the basis of the consolidated financial statements. Thus disclosures regarding Operating segment is not presented in Standalone Financial Statements.

Nature of Provisions:

i. Provision for Defect Liability Period : The Company provides for contractual obligations to periodically service, repair or rectify any defective work during the defect liability period as well as towards contractual obligations to restore the infrastructure at periodic intervals. Provision made as at March 31, 2023 represents the amount of the expected estimated cost of meeting such obligations of repair/rectification.

ii. Provision for Schedule Maintenance : Provision for Schedule Maintenance represents the estimated cost that the Company is likely to incur during concession period as per the contract obligations in respect of completed construction contracts accounted under Ind AS 115 “Revenue from Contracts with Customers”.

Note 51 : Contingent liabilities and Commitments (to the extent not provided for) ('' In Lakhs)
Sr. No.	Particulars	As at 31-Mar-23	As at 31-Mar-22
(i)	Contingent liabilities
a	Bank Guarantees Issued:
	i) on behalf of Group Companies for compliance with Debt Service Reserve account and Major Maintenance Reserve account	7,665.34	16,278.33
	ii) to third party for deposit held other than relating to performance	5.00	5.00
b	Claims against the Company not acknowledged as debts	416.62	311.06
c	Taxation matters:
	i) Income Tax (Refer Note below)	7,714.21	7,666.12
	ii) Sales Tax	14,521.77	11,906.65
	iii) Custom Duty	-	39.18
	iv) Service Tax	-	71.06
	v) GST	270.44	310.28
	vi) Others (Labour Cess)	587.00	587.00
	Total:	31,180.38	37,174.68
(ii)	Commitments:
	i) Capital Commitment	41.90	34.56
	ii) Funding Commitment towards Group Companies	16,952.30	33,809.20
Total:		16,994.20	33,843.76
Total		48,174.58	71,018.44

Note: During the year ended March 31, 2018, pursuant to the search proceedings carried out in April 2016, the Company had received income tax assessment orders under section 153A for the financial year 2010-11 to 2016-17. Income tax authorities had disallowed certain sub-contractors payments by treating them as not genuine. The Company had the underlying documents to substantiate the genuineness of the work performed by these sub-contractors and no incriminating documents were found during the search proceedings. Accordingly, the Company had filed appeals against these assessment orders before the first appellate authority. Accordingly, as the outcome of the appeal is pending, additional tax payable for these years amounting to 5,924.01 Lakhs (including interest) is treated as contingent liability.

Note 52 : Other Matter

During the last week of September 2022, a law enforcement agency (CBI) arrested four persons in the Patna region, including two National Highway of Authority India (NHAI) officials and two officials of the Company in an alleged bribery case. The law enforcement agency also conducted searches at the residences of the Company officials and the Patna office of the Company and had confiscated cash amounting to '' 6.43 lakhs from the Patna office which was reflected in the books and has been considered as recoverable in the accompanying standalone financial statements. The employees of the Company have been released on bail subsequent to year end.

Further on March 2, 2023 the Ministry of Road Transport and Highways, Government of India (MoRTH) debarred the Company for 45 days from participating in any bids with NHAI or MoRTH. The said period of debarment was completed on April 15, 2023 and the Company is now eligible to participate in the bids.

The Company is currently performing a review of the matter and exploring all possible legal remedies available. Pending, the outcome of the Company’s review and investigation of the regulatory authorities, impact of the said matter is currently not ascertainable and would be dependent on the outcome of the investigation. Accordingly, no adjustments have been made to the standalone financial statements in this regard.

Note 59: Ashoka Concessions Limited (ACL), a subsidiary company, had issued Compulsorily Convertible Debentures (CCD) to its investors and to the Company (Parent) which has been classified as equity instrument in the separate financial statements of ACL. The Company has agreed additional terms with the investors and assumed obligations towards investors which would be settled through the some portion of equity shares to be received from ACL on conversion of CCDs held by parent Company. Accordingly the said obligations has been recognised at its fair value as at March 31, 2023 amounting to '' 38,400 Lakhs (March 31, 2022 -'' 42,400 Lakhs).

Note 60: Exceptional Items:

a) Pursuant to the SSPA entered by ACL in previous year with respect of sale of five of its wholly owned subsidiaries as mentioned in point 61 (iii) below , the Company had recorded an impairment on its investment in ACL and remeasured its obligation towards Investors in ACL and had accordingly recognised an expense of '' 76,960.00 lakhs (impairment of investment in ACL '' 32,718.17 lakhs, impairment of asset held for sale '' 1,900 lakhs, write off accrued interest of ''20,681.83 lakhs on loans given and remeasurement of obligation towards investors in ACL '' 21,660 lakhs).

During the current year, the Company has recorded reversal of impairment on its investment in ACL and reversal of obligation towards investor in ACL amounting to '' 36,718.17 lakhs due to increase in valuation of ACL mainly on account of increased cash flow in its Hybrid Annuity Mode (HAM) projects consequent to increase in interest receivable on annuity payments .

Further, the Company has recorded impairment on loans / other financial assets given to certain subsidiaries amounting to ''1,803.03 lakhs (impairment on loans '' 1,632.92 lakhs and on other financial asset '' 167.11 lakhs).

Note 61: Assets Held for Sale :

i) During the year, the Company has entered into a Share Purchase Agreement (“SPA”) with Mahanagar Gas Limited (“MGL”) for the sale of its stake in Unison Enviro Private Limited (“UEPL”), a subsidiary of the Company, subject to certain adjustments as specified in SPA. Pursuant to the said SPA, the investments made in the subsidiary is classified as held for sale.

ii) During the previous year, the Company had initiated the sale of its investment in GVR Ashoka Chennai ORR Limited (a joint venture of the Company) for which Share Purchase Agreement (SPA) with the buyer has been signed in the current year, subject to certain adjustments specified in SPA towards its equity investments, loans given and other receivables from the said joint venture.

iii) The Company and Ashoka Concessions limited (‘ACL’) intend to divest their entire stake in the subsidiaries, engaged in construction and operation of Road Projects on Hybrid Annuity Mode (HAM). Considering, high probability of the sale getting completed in next 12 months, the assets and liabilities of these subsidiaries (completed projects) are classified as held for sale.

iv) During the previous year, ACL had entered into Share Subscription cum Purchase agreements (“SSPA”) for sale of its stake in five of its wholly owned subsidiaries namely Ashoka Belgaum Dharwad Tollway Limited (‘ABDTL’), Ashoka Highways (Durg) Limited (‘AHDL’), Ashoka Highways (Bhandara) Limited (‘AHBL’), Ashoka Dhankuni Kharagpur Tollway Limited (‘ADKTL’), Ashoka Sambalpur Baragarh Tollway Limited (‘ASBTL’), subject to requisite approvals and adjustment on account of changes in working capital as at closing date. Accordingly, the investments and loan given to these entities were classified as assets held for sale.Subsequent to the year end, ACL and the Investor have mutually agreed to terminate the SSPAs. Management is committed to sell these assets and believes that it continues to meet the definition of asset held for sale.

v) During the year, the subsidiaries of the Company being Ashoka Concessions Limited (‘ACL’) and Viva Highways Limited (‘VHL’) entered into a Share Purchase Agreement (SPA) for sale of 100% stake in Jaora Nayagaon Toll Road Company Private Limited (‘JTCL’) (a step-down subsidiary of the Company), subject to certain adjustments as specified in SPA towards its equity investments and loans taken from JTCL and acquiring the balance stake from other shareholders of JTCL. Pursuant to the said SPA, the assets and liabilites in realtion to JTCL is classified as held for sale.

Note 62: The Code on Social Security, 2020

The Code on Social Security 2020 (''Code'') has been notified in the Official Gazette on 29th September, 2020.The Code is not yet

effective and related rules are yet to be notified. Impact if any of the change will be assessed and recognized in the period in which

said Code becomes effective and the rules framed thereunder are notified.

Note 63: Other Statutory Information

1. No proceedings have been initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

2. The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 (as amended).

3. The Company has neither traded nor it holds any investment in Crypto currency or Virtual Currency.

4. The Company has not received any fund from any persons or entities, including foreign entities (Funding Party) with the

understanding (whether recorded in writing or otherwise) that the Company shall:

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

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

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

6. The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.

7. The quarterly returns or statements of Current assets filed by the Company with the banks or financial institutions are in

agreement with the books of accounts.

8. The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period. Note 64: Events after reporting period

There were no significant adjusting events that occurred subsequent to the reporting period other than the events disclosed in the relevant notes.

Note 65: Previous year comparatives

Previous year''s figures have been regrouped/reclassified, wherever necessary, to conform to current year classification.

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Mar 31, 2018

Note: Number of units in brackets denotes number of units for the year ended March 31, 2017_

(i) In one of the subsidiary companies, viz. Ashoka Infrastructure Limited toll collection has been discontinued at the directive of the Employer, The subsidiary Company has initiated arbitration proceeding towards such discontinuance. The subsidiary is confident of receiving additional compensation from the employer. Further, The subsidiary has started venturing into real estate business, Consequently the value of investment of the Company in the subsidiary continues to be at its full value.

(ii) The Company has entered into various Joint arrangements for execution of various projects. Which are classified as Joint operations or Joint ventures, as under :_

@ The Ashoka Brideways reflects credit balance due to the partnership firm , the balance amount payable is reflected as ''Other Payable''

(iv) The company has initiated a transaction of sale of Equity shares in GVR Ashoka Chennai ORR Ltd. to one of its subsidiary company. The Company has received an advance of '' 11,701.25 Lakh against such sale. The lead banker of GVR Ashoka Chennai ORR Ltd. has currently declined to give consent for transfer of such shares. Consequently, since the said transaction does not seem a ''Highly Probable'' sale transaction, the aforesaid Investment in GVR Ashoka Chennai ORR Ltd. has not been disclosed as ''Non-Current Asset Held for Sale''.

(III) Terms/rights attached to equity shares:

The Company has only one class of share capital, i.e., equity shares having face value of '' 5 per share. Each holder of equity share is entitled to one vote per share., In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be proportion to the number of Equity Shares held by the shareholders.

Note:

The shareholding of the above shareholders (*) was more than 5 % in FY 15-16, but holding in FY 16-17 and FY 17-18 has fallen below 5 %. Hence, Number of shares held by those shareholders for FY 16-17 and FY 17-18 has not been disclosed.

(VI) The aggregate number of equity shares issued by way of bonus shares in immediately preceding five financial years ended March 31, 2018 - 5,26,51,030 (previous period of five years ended March 31, 2017 - 5,26,51,030)

The Board has recommended issue of One (1) equity shares as bonus for every Two (2) equity share of '' 5/- held on record date, subject to approval of shareholder.

Nature and purpose of Reseves Securities Premium Reserve :

Securities Premium Reserve is used to record the premium on issue of shares and utilised in accordance with the provisions of the Companies Act, 2013.

General Reserve :

General Reserve is used from time to time to transfer profits from Retained Earnings for appropriation purposes. As the General Reserve is created by a transfer from one component of equity to another and is not an item of other compressive income, Items included in General Reserve will not be reclassified subsequently to statement of profit and loss.

Debenture Redemption Reserve :

The Company is required to create a Debenture Redemption Reserve out of the profits which are available for payment of Dividend and for the purpose of Redemption of Debenture.

Retained Earning :

Retained Earnings are the profit of the Company earned till date net of appropriation.

Note 36 : Capital management

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

Debt is defined as long-term borrowings, current maturities of long-term borrowings, short-term borrowings and interest accrued thereon (excluding financial guarantee contracts).

Capital includes equity attributable to the equity holders to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximise shareholder value. The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions or its business requirements. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. No changes were

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

Note 39 : Financial risk management objectives and policies

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities.

The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company has exposure to the following risks arising from financial instruments:

(A) Credit risk:

(B) Liquidity risk: and

(C) Market risk:

(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and loans and advances.

The Company’s customer profile include public sector enterprises, state owned companies, group entities, individual and corporate customer. General payment terms include mobilisation advance, monthly progress payments with a credit period ranging from 45 to 90 days and certain retention money to be released at the end of the project. In some cases retentions are substituted with bank/ corporate guarantees. The Company has a detailed review mechanism of overdue customer receivables at various levels within organisation to ensure proper attention and focus for realisation.

Credit risk on trade receivables and unbilled work-in-progress is limited as the customers of the Company mainly consists of the government promoted entities having a strong credit worthiness. The provision matrix takes into account available external and internal credit risk factors such as Company''s historical experience for customers.

Impairment allowance on Doubftful debts / Doubftul advances : The provisions are made against Trade receivable/Advances based on "expected credit loss" model as per Ind AS 109.

Management believes that the unimpaired amounts which are past due are collectible in full.

Cash and cash equivalents

Cash and cash equivalents (excluding cash on hand) of '' 8,989.12 lakh at March 31, 2018 (March 31, 2017: '' 2,820.36 lakh. The cash and cash equivalents (excluding cash on hand) are held with bank and financial institution counterparties with good credit rating.

Bank Balances other than Cash & cash equivalents

Bank Balances other than Cash and cash equivalents of '' 3,304.26 lakh at March 31, 2018 (March 31, 2017: '' 3,493.08 lakh). The Bank Balances other than cash and cash equivalents are held with bank and financial institution counterparties with good credit rating.

Investments & Loan

Investments & Loan are with only group company in relation to the project execution hence the credit risk is very limited.

(B) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company manages liquidity risk by maintaining sufficient cash and marketable securities and by having access to funding through an adequate amount of committed credit lines. Management regularly monitors the position of cash and cash equivalents vis-a-vis projections. Assessment of maturity profiles of financial assets and financial liabilities including debt financing plans and maintenance of Balance Sheet liquidity ratios are considered while reviewing the liquidity position.

(C) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk:

i. Currency risk

ii. Interest rate risk

iii. Other price risk such as Commodity risk and Equity price risk.

The following table summarises the carrying amount of financial assets and liabilities recorded at the end of the year by categories:

i. Currency risk

The Company has several balances in foreign currency and consequently the Company is exposed to foreign exchange risk. The exchange rate between the rupee and foreign currencies has changed substantially in recent years, which has affected the results of the Company, and may fluctuate substantially in the future. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

The following table analysis foreign currency risk from financial instruments:

The sensitivity analyses in the following sections relate to the position as at March 31, 2018, March 31, 2017 and April 1, 2016

The following table details the Company’s sensitivity to a '' 1/- increase and decrease in the '' against the relevant foreign currencies. Sensitivity indicates Management’s assessment of the reasonable possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a '' 1 change in foreign currency rates.

Interest Rate Risk

As infrastructure development and construction business is capital intensive, the Company is exposed to interest rate risks. The Company''s infrastructure development and construction projects are funded to a large extent by debt and any increase in interest expense may have an adverse effect on our results of operations and financial condition. The Company current debt facilities carry interest at variable rates with the provision for periodic reset of interest rates. As of March 31, 2018, the majority of the Company indebtedness was subject to variable/fixed interest rates.

The interest rate risk exposure is mainly from changes in floating interest rates. The interest rate are disclosed in the respective notes to the financial statement of the Company. The following table analysis the breakdown of the financial assets and liabilities by type of interest rate:

Note 40 : Ind AS 11 - Accounting for Construction Contracts

Revenue from fixed price construction contracts are recognized on the percentage of completion method, measured by reference to the percentage of cost incurred up to the year end to estimated total cost for each contract. For the purpose of determining percentage of work completed, estimates of contract cost and contract revenue are used.

Note 42 : Leases

Disclosures pursuant to Ind AS 17 "Leases"

(a) The Company has taken various commercial premises and plant and equipment under cancellable operating leases.

Contribution to Provident Fund is charged to accounts on accrual basis. The Company operates a defined contribution scheme with recognized provident fund. For this Scheme, contributions are made by the company, based on current salaries, to recognized Fund maintained by the company. In case of Provident Fund scheme, contributions are also made by the employees. An amount of '' 362.85 Lakh (Previous Period '' 290.30 Lakh) has been charged to the Profit & Loss Account on account of this defined contribution scheme.

(b) Defined benefit plan

The following amount recognized as an expense in Statement of profit and loss on account of Defined Benefit plans.

(i) Gratuity

The company operates one defined plan of gratuity for its employees. Under the gratuity plan, every employee who has completed atleast five years of service gets a gratuity on departure @ 15 days of last drawn salary for each completed year of service. The Gratuity benefit is funded through a defined benefit plan. For this purpose the Company has obtained a qualifying insurance policy from Life Insurance Corporation of India.

The following tables summaries the components of net benefit expense recognised in the Statement of profit and loss and the funded status and amounts recognised in the balance sheet for the gratuity plan:

Note 44 : Related Party Disclosures_

1. Name of the Related Parties and Description of Relationship:_

Nature of Relationship_Name of Entity_

Wholly Owned Subsidiaries__1) Ashoka Infrastructure Ltd_

2) Ashoka Infraways Ltd

3) Viva Highways Ltd

4) Ashoka Technologies Pvt. Ltd.

5) Ashoka Cuttak Angul Tollway Ltd

6) Viva Infrastructure Ltd.

7) Ashoka Highways Reseach Centre Pvt Ltd

8) Ashoka Bagewadi Saundatti Road Ltd

9) Ashoka Hungund Talikot Road Ltd

10) Ashoka Path Nirman (Nashik) Pvt.Ltd

11) Unison Enviro Pvt Ltd

12) Ashoka Aerospace Pvt Ltd.

13) Ashoka Highway Ad.

Subsidiaries__1) Ashoka-DSC Katni Bypass Road Ltd_

2) Ashoka Pre-Con Pvt Ltd.

3) Ashoka Concessions Ltd

4) Ashoka GVR Mudhol Nipani Roads Ltd

5) Jaora Nayagaon Toll Road Co. Pvt.Ltd

Stepdown Subsidiaries__1) Ashoka Highways (Bhandara) Ltd_

2) Ashoka Highways (Durg) Ltd

3) Ashoka Sambalpur Baragarh Tollway Ltd

4) Ashoka Belgaum Dharwad Tollway Ltd

5) Ashoka Dhankuni Kharangpur Tollway Ltd

6) Ashoka Kharar Ludhiana Road Ltd

7) Ashoka Ranastalam Anandpuram Road Ltd.

8) Blue Feather Infotech Pvt. Ltd.

9) Ratnagiri Natural Gas Pvt. Ltd.

10) Endurance Road Developers Pvt. Ltd.

11) Tech Berater Pvt Ltd

Associates__1) Abhijeet Ashoka Infrastructure Pvt Ltd_

_2) PNG Tollway Ltd_

Joint Ventures__1) ABL BIPL JV_

2) GVR Ashoka Chennai ORR Ltd

3) Ashoka Bridgeways

Joint Operations__1) Ashoka Infrastructures_

2) Mohan Mutha Ashoka Buildcon LLP

Key Managerial Personnel 1) Ashok M Katariya (Chairman)

2) Satish D Parakh (Managing Director)

3) Sanjay P Londhe (Whole Time Director)

4) Milapraj Bhansali (Whole Time Director)

5) Paresh C Mehta (Chief Financial Officer)

6) Manoj A. Kulkarni ( Company Secretary)

Independent Director__1) Gyan Chand Daga (Non-Executive Director)_

2) Michael Pinto (Non-Executive Director)

3) Sharadchandra Abhyankar (Non-Executive Director)

4) Albert Tauro (Non-Executive Director)

5) Sunanda Dandekar (Non-Executive Director)

Relatives of Key Managerial Personnel 1) Asha A. Katariya (Wife of Ashok M Katariya)_

with whom transactions have taken 2) Ashish A. Katariya (Son of Ashok M Katariya)_

place during the year_3) Astha A. Katariya (Daughter In Law of Ashok M Katariya)

4) Shewta K. Modi (Daughter of Ashoka M Katariya)

5) Satish D Parakh (HUF) (HUF of Satish D Parakh)

6) Shobha Satish Parakh (Wife of Satish D Parakh)

7) Aditya S. Parakh (Son of Satish D Parakh)

8) Snehal Manjit Khatri (Daughter of Satish D Parakh)

Promoter Group__1) Ashoka Township_

2) Hotel Evening Inn Pvt Ltd

3) Ashoka Education Foundation

4) Ashoka Institute of Medical Sciences & Research

5) Ashoka Builders (Nashik) Pvt Ltd

6) Ashoka Biogreen Pvt Ltd

7) Ashoka Buildwell & Developer Pvt Ltd

8) Ashoka Construwell Pvt Ltd

9) Ashoka Industrial Park Pvt Ltd

10) Precrete Technologies Pvt Ltd

11) Ashoka Universal Academy Pvt Ltd

12) Shweta Agro Farm

Note 45 : Segment Reporting

As permitted by paragaraph 4 of Ind AS 108, "Operating Segments", notified under section 133 of the Companies Act, 2013, read together with the relevant rules issued thereunder, if a single financial report contains both consolidated financial statements and the Separate financial statements of the parents, segment information need to be presented only on the basis of the consolidated financial statements. Thus disclosures regarding Operating segment is not presented in Standalone Financial Statements.

Note 46 : Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for year attributable to equity holders by the weighted average number of Equity shares outstanding during the year.

The following reflects the income and share data used in the basic and diluted EPS computations:

Nature of Provisions

i. Provision for DLP : The Company gives warranties on certain products and services, undertaking to repair the defect or replace the items that fail to perform satisfactorily during the warranty period. Provision made as at March 31, 2018 represents the amount of the expected estimated cost of meeting such obligations of rectification/replacement.

ii. Provision for Schedule Maintance : Contractual resurfacing cost represents the estimated cost that the Company is likely to incur during concession period as per the contract obligations in respect of completed construction contracts accounted under Ind AS 11 “Construction Contracts”.

iii. Provision for Onerous Contract: The provision for onerous contract represents the value of expected losses recoganised in accordance with Ind AS 37 on few onerous project.

Notes :

1. Ashoka Concessions Limited (ACL), a subsidiary company, had issued Compulsorily Convertible Debentures (CCD) to its investors and to the Company (Parent) which has been classified as equity instrument in the separate financial statements of ACL. The Company has agreed additional terms with the investors and assumed obligations towards investors which would be settled through the some portion of equity shares to be received from ACL on conversion of CCDs held by parent Company. During the current year, the Company has reviewed the said accounting treatment and recorded these obligations at its fair value as at April 1, 2016 amounting to '' 13,700 Lakhs and as at March 31, 2017 amounting to '' 15,400 Lakhs, the corresponding impact has considerd in the ‘Other equity’.

The impact recorded in the statement of profit and loss account for the year ended March 31, 2017 amounting to '' 1,700 Lakhs.

2. The Company has recorded deferred tax assets (net) as at April 1, 2016 amounting to Rs. 340.01 Lakhs and March 31, 2017 amounting to Rs, 1,253.00 Lakhs, resulting the charge of Rs, 913.00 Lakhs in the statement of profit and loss account for the year ended March 31, 2017.

3. The company has reclassified retention money receivable after one year from ‘Current Trade receivables’ to ‘Non Current Trade receivables’ amounting to Rs, 13,000.39 Lakhs and Rs, 18,479.44 Lakhs as at 31st March, 2017 and 1st April, 2016, respectively.

4. The Company has reclassifed Unbilled revenue from ‘Non Current assets’ to ‘Non Current Other financial assets’ amounting to '' 1.024.38 Lakhs as at March 31, 2017 and '' 1,399.48 Lakhs as at April 1, 2016.

Further, the Company has also reclassified advance given for shares purchase (GVR Infra Projects Limited) amounting to '' 2,112.27 from ‘Other Current assets’ to ‘Non current financials assets’ as at March 31, 2017.

5. The Company has reclassified Unbilled revenue from ‘Inventories’ to ‘Current financial assets’ amounting to '' 84,402.20 Lakhs and '' 77,370.83 Lakhs as at March 31, 2017 and as at April 1, 2016, respectively.

6. The company has reclassified Provision for expenses from ‘Other current financial assets’ to ‘Trade payable current’ amounting to '' 4164.77 Lakhs and '' 3,661.33 Lakhs as at 31st March, 2017 and April 1, 2016, respectively.

7. Value Added Tax (VAT) collected from the Customer was included in ‘Revenue from operation’ has now been netted off against the corresponding VAT payments (expense) made by the Company.

Note 8:The Company was subject to search under 132 of the Income Tax Act,1961 in the month April,2016. The Income Tax Department had issued notices u/s 153A to file revised return for last six years in the month of January, 2017. Ashoka Buildcon Ltd filed revised return u/s 153A under protest in the month of March, 2017 claiming some additional expenditure and deduction based on recent judgments pronounced, subject to these additional deduction there is no change in return of Income as was filed in original return of Income of respective years.

Note 9 :Ashoka Concessions Limited (ACL), a subsidiary company, had issued Compulsorily Convertible Debentures (CCD) to its investors and to the Company (Parent) which has been classified as equity instrument in the separate financial statements of ACL. The Company has agreed additional terms with the investors and assumed obligations towards investors which would be settled through the some portion of equity shares to be received from ACL on conversion of CCDs held by parent Company. Accordingly the said obligations has been recognised at its fair value as at April 1, 2016, March 31, 2017 and March 31, 2018 amounting to '' 13,700 Lakhs, '' 15,400 and '' 17,400 Lakhs respectively.

Note 10 : Events after reporting period

No subsequent event has been observed which may required on adjustment to the balance sheet.

Note 11 : Previous year comparatives

Previous year''s figures have been regrouped/reclassified, wherever necessary, to conform to current year classification.

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Mar 31, 2017

1. First-time adoption of Ind AS

These standalone financial statements of the Company for the year ended March 31, 2017 have been prepared in accordance with Ind AS. For the purposes of transition to Ind AS, the Company has followed the guidance prescribed in Ind AS 101, First-Time Adoption of Indian Accounting Standards, with April 1, 2015 as the transition date and IGAAP as the previous GAAP.

The transition to Ind AS has resulted in changes in the presentation of the financial statements, disclosures in the notes thereto and accounting policies and principles. The accounting policies set out as above have been applied in preparing the standalone financial statements for the year ended March 31,2017 and the comparative information.

An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s Balance Sheet and Statement of Profit and Loss, is set out in Note no. 51 and Exemptions on the first-time adoption of Ind AS availed in accordance with Ind AS 101 have been set out below.

2. Exemptions and Exceptions availed on first-time adoption of Ind AS

a. Derecognition of financial assets and financial liabilities The Company has elected to apply derecognition requirements for financial assets and financial liabilities in Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS.

b. Classification and measurement of financial assets

The Company has classified financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist at the date of transition to Ind AS.

c. Use of Deemed Cost

The Company has elected to continue with the carrying value of all of its Property, Plant and Equipment and other intangible assets (software) recognized as at April 01, 2015 measured as per the previous GAAP and use that carrying value as the deemed cost of the Property, Plant and Equipment.

The Company has elected to carry its Intangible Assets Under Service concession Arrangements recognized as at April 01, 2015 measured as per cost model prescribed under Ind AS, hence cost of such assets is recomputed as per Ind AS.

The Company has elected to continue the policy of revenue based Amortization on toll road assets under service concession arrangements recognized in the financial statements for the period ending immediately before the beginning of the first Ind AS financial reporting period as per the previous GAAP.

d. Investments in Subsidiaries, Joint Ventures and associates

In Standalone Financial Statements, the Company has measured investments at deemed cost i.e. the previous GAAP carrying amount at the date of transition.

e. Estimates

An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates are based on conditions/information that existed at the date of transition to Ind AS i.e. April 01 2015 and are consistent with the estimates as at the same date made in conformity with previous GAAP. The company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Investment in equity instruments carried at FVTPL or FVOCI;

- Impairment of financial assets based on expected credit loss model;

- Margins related to construction activity in respect of Service Concession Arrangements;

- Discount Rates considered for measurement of financial instruments and provisions.

(VI) The aggregate number of equity shares issued by way of bonus shares in immediately preceding last five financial years ended on March 31,2017- 5,26,51,030 shares (previous period of five years ended March 31,2016 - 5,26,51,030 shares)

(VII) Shares held under Employees'' Stock Option:

The Board of Directors of the company has approved creation of an Employee Stock Option on December 13, 2007. The company has granted stock options for 7,80,050 shares on December 15, 2007 at an exercise price of''190 per share. Options granted to be vested over a period of five years, first such vesting has occurred in December 15, 2010. Pursuant to the share split and the declaration of Bonus by the company, the ESOP scheme has been amended by the Board of Directors to fairly adjust the exercise price and revise the number of options. In accordance with the split of shares and declaration of bonus, the exercise price of the share is now '' 63.33

(a) Guidance Note on ‘Accounting for employee share based payments’ issued by the Institute of Chartered Accountants of India establishes financial accounting and reporting principles for employee share based payment plans.

(b) The Company has applied Intrinsic Value Method of Accounting. The difference between the Fair Value of the Equity Share as at March 31, 2008 (as determined by the Category I Merchant banker) and the exercise price is '' Nil. Accordingly no Compensation Cost needs to be amortized over the vesting period. Since the vesting period of the options granted to the employee has expired during the year, the disclosures on Net Income and Basic and Diluted Earnings Per Share as described in the guidance note have not been given for year 2015-16.

(c) The vesting and exercise period has concluded as on December, 2015._

(VIII) On May 30, 2017, the Board of Directors has recommended the final dividend of'' 0.80 paise per equity share for the year ended March 31, 2017 subject to approval from shareholders. On approval, the total dividend payment based on number of shares outstanding as at March 31, 2017 is expected to be Rs, 1497.19 lakh and the payment of dividend distribution tax is expected to be Rs, 304.79 lakh.

Note 35 : Capital management

The primary objective of the Company''s capital management is to maximize the shareholder value. For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company.

Debt is defined as long-term borrowings, current maturities of long-term borrowings, short-term borrowings and interest accrued thereon (excluding financial guarantee contracts).

Capital includes equity attributable to the equity holders to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximize shareholder value. The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions or its business requirements. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes during the period ended March 31,2017 and March 31,2016.

Valuation technique used to determine fair value:

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

- Investments included in Level 2 of Fair Value Hierarchy have been valued based on inputs from banks and other recognized institutions such as FIMMDA/FEDAI.

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

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

Note 38 : Financial risk management objectives and policies

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities.

The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company has exposure to the following risks arising from financial instruments:

(A) Credit risk:

(B) Liquidity risk: and

(C) Market risk:

(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Company’s receivables from customers and loans and advances.

The Company’s customer profile include public sector enterprises, state owned companies, group entities, individual and corporate customer. General payment terms include mobilization advance, monthly progress payments with a credit period ranging from 45 to 90 days and certain retention money to be released at the end of the project. In some cases retentions are substituted with bank/ corporate guarantees. The Company has a detailed review mechanism of overdue customer receivables at various levels within organization to ensure proper attention and focus for realization.

Credit risk on trade receivables and unbilled work-in-progress is limited as the customers of the Company mainly consists of the government promoted entities having a strong credit worthiness. The provision matrix takes into account available external and internal credit risk factors such as companies historical experience for customers.

The exposure to credit risk for trade and other receivables by type of counterparty was as follows :

Management believes that the unimpaired amounts which are past due are collectible in full.

Cash and cash equivalents

Cash and cash equivalents (excluding cash on hand) ofRs, 2,820.36 lakh at March 31, 2017 (March 31, 2016: Rs, 2,193.83 lakh, March 31, 2015: Rs, 500.13 Lakh). The cash and cash equivalents (excluding cash on hand) are held with bank and financial institution counterparties with good credit rating.

Bank Balances other than Cash & cash equivalents

Bank Balances other than Cash and cash equivalents ofRs, 3,493.08 lakh at March 31, 2017 (March 31, 2016: Rs, 484.97 lakh, March 31, 2015: Rs, 1,874.17 lakh). The Bank Balances other than cash and cash equivalents are held with bank and financial institution counterparties with good credit rating.

Investments & Loan

Investments & Loan are with only group company in relation to the project execution hence the credit risk is very limited.

(B) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company manages liquidity risk by maintaining sufficient cash and marketable securities and by having access to funding through an adequate amount of committed credit lines. Management regularly monitors the position of cash and cash equivalents vis-a-vis projections. Assessment of maturity profiles of financial assets and financial liabilities including debt financing plans and maintenance of Balance Sheet liquidity ratios are considered while reviewing the liquidity position.

(C) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk:

i. Currency risk

ii. Interest rate risk

iii. Other price risk such as Commodity risk and Equity price risk.

The following table summarizes the carrying amount of financial assets and liabilities recorded at the end of the year by categories:

i. Currency risk

The Company has several balances in foreign currency and consequently the Company is exposed to foreign exchange risk. The exchange rate between the rupee and foreign currencies has changed substantially in recent years, which has affected the results of the Company and may fluctuate substantially in the future. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

The following table analysis foreign currency risk from financial instruments:

The sensitivity analysis in the following sections relate to the position as at March 31,2017, March 31, 2016 and April 01, 2015. The following table details the company’s sensitivity to a '' 1/- increase and decrease in the '' against the relevant foreign currencies. Sensitivity indicates Management’s assessment of the reasonable possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a ''1 change in foreign currency rates.

ii) Interest Rate Risk

As infrastructure development and construction business is capital intensive, the company is exposed to interest rate risks. The company''s infrastructure development and construction projects are funded to a large extent by debt and any increase in interest expense may have an adverse effect on our results of operations and financial condition. The company current debt facilities carry interest at variable rates with the provision for periodic reset of interest rates. As of March 31, 2017, the majority of the company indebtedness was subject to variable/fixed interest rates.

The interest rate risk exposure is mainly from changes in floating interest rates. The interest rate are disclosed in the respective notes to the financial statement of the Company. The following table analysis the breakdown of the financial assets and liabilities by type of interest rate:

(i) Gratuity

The company operates one defined plan of gratuity for its employees. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure @15 days of last drawn salary for each completed year of service. The Gratuity benefit is funded through a defined benefit plan. For this purpose the Company has obtained a qualifying insurance policy from Life Insurance Corporation of India.

The following tables summaries the components of net benefit expense recognized in the Statement of profit and loss and the funded status and amounts recognized in the balance sheet for the gratuity plan:

The estimates of future salary increases, considered in actuarial valuation, is based on inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled. There has been significant change in expected rate of return on assets due to change in the market scenario.

(ii) Leave encashment

The Company provides benefits to its employees under the Leave Encashment pay plan which is a non-contributory defined benefit plan. The employees of the Company are entitled to receive certain benefits in lieu of the annual leave not availed of during service, at the time of leaving the services of the Company. The benefits payable are expressed by means of formulae which takes into account the Salary and the leave balance to the credit of the employees on the date of exit.

The estimates of future salary increases, considered in actuarial valuation, is based on inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled. There has been significant change in expected rate of return on assets due to change in the market scenario.

Note 43 : Related Party Disclosures 1. Name of the Related Parties and Description of Relationship:

Nature of Relationship Name of Entity

Wholly Owned Subsidiary Ashoka Infrastructure Ltd.

Wholly Owned Subsidiary Ashoka Infraways Ltd.

Wholly Owned Subsidiary Viva Highways Ltd.

Wholly Owned Subsidiary Ashoka Technologies Pvt. Ltd.

Wholly Owned Subsidiary Ashoka Cuttak Angul Tollway Ltd.

Wholly Owned Subsidiary Viva Infrastructure Ltd.

Wholly Owned Subsidiary Ashoka Highways Reseach Centre Pvt. Ltd.

Wholly Owned Subsidiary Ashoka Bagewadi Saundatti Road Ltd.

Wholly Owned Subsidiary Ashoka Hungund Talikot Road Ltd.

Wholly Owned Subsidiary Ashoka Path Nirman (Nasik) Pvt.Ltd.

Wholly Owned Subsidiary Unison Enviro Pvt. Ltd.

Subsidiary Ashoka-DSC Katni Bypass Road Ltd.

Subsidiary Ashoka Pre-Con Pvt Ltd.

Subsidiary Ashoka Concessions Ltd.

Subsidiary Ashoka GVR Mudhol Nipani Roads Ltd.

Subsidiary Jaora Nayagaon Toll Road Co. Pvt.Ltd.

Stepdown Subsidiary Ashoka Highways (Bhandara) Ltd.

Stepdown Subsidiary Ashoka Highways (Durg) Ltd.

Stepdown Subsidiary Ashoka Sambalpur Baragarh Tollway Ltd.

Stepdown Subsidiary Ashoka Belgaum Dharwad Tollway Ltd.

Stepdown Subsidiary Ashoka Dhankuni Kharangpur Tollway Ltd.

Stepdown Subsidiary Ashoka Kharar Ludhiana Road Ltd.

Stepdown Subsidiary Blue Feather Infotech Pvt. Ltd.

Stepdown Subsidiary Ratnagiri Natural Gas Pvt. Ltd.

Stepdown Subsidiary Endurance Road Developers Pvt. Ltd.

Joint Ventures GVR Ashoka Chennai ORR Ltd.

Joint Ventures Abhijeet Ashoka Infrastructure Pvt. Ltd.

Joint Ventures Mohan Mutha Ashoka Buildcon LLP

Joint Ventures Cube Ashoka JV Co.

Joint Ventures PNG Tollway Ltd.

Joint Operations Ashoka Infrastructures

Joint Operations Ashoka Valecha JV

Joint Operations ABL BIPL JV

Joint Operations BIPL ABL JV

Partnership Firm Ashoka Bridgeways

Partnership Firm Ashoka Highway Ad.

Key Managerial personnel :

Key Managerial Personnel Ashok M Katariya (Chairman)

Key Managerial Personnel Satish D Parakh (Managing Director)

Key Managerial Personnel Sanjay P Londhe (Whole Time Director)

Key Managerial Personnel Milapraj Bhansali (Whole Time Director)

Key Managerial Personnel Paresh C Mehta (ChiefFinancial Officer)

Key Managerial Personnel Manoj A. Kulkarni ( Company Secretary)

Independent Directors :

Independent Director Gyan Chand Daga (Non Executive Director)

Independent Director Michael Pinto (Non Executive Director)

Independent Director Sharadchandra Abhyankar (Non Executive Director)

Independent Director Albert Tauro (Non Executive Director)

Independent Director Sunanda Dandekar (Non Executive Director)

Relatives of Key Managerial Personnel with whom transactions have taken place during the year:

Relatives ofKey Managerial Personnel Asha A. Katariya (Wife of Ashok M. Katariya)

Relatives ofKey Managerial Personnel Ashish A. Katariya (Son of Ashok M. Katariya)

Relatives ofKey Managerial Personnel Astha A. Katariya (Daughter In Law of Ashok M. Katariya)

Relatives ofKey Managerial Personnel Shewta K. Modi (Daughter of Ashoka M. Katariya)

Relatives of Key Managerial Personnel Satish D Parakh (HUF) (HUF of Satish D. Parakh)

Relatives of Key Managerial Personnel Shobha Satish Parakh (Wife of Satish D. Parakh)

Relatives of Key Managerial Personnel Aditya S. Parakh (Son of Satish D. Parakh)

Relatives of Key Managerial Personnel Snehal Manjit Khatri (Daughter of Satish D. Parakh)

Related party with whom transaction have taken place during the year:

Other Related Party Ashoka Township

Other Related Party Hotel Evening Inn Pvt. Ltd.

Other Related Party Ashoka Education Foundation

Other Related Party Ashoka Institute of Medical Sciences & Research

Other Related Party Ashoka Builders (Nasik) Pvt. Ltd.

The transition from IGAAP to Ind AS has not had a material impact on the Statement of Cash Flows.

Notes :

1. Reclassification of certain materials held as inventory to Property, Plant & Equipment’s with a concomitant impact on depreciation.

2. Recognition of Rights to collect Toll/Tariff held under public to private arrangements (service concession arrangements) under BOT model at fair value of construction services.

3. Reclassification of certain interest free loans given to subsidiary carried at cost as investment in Equity vis-a-vis the earlier classification of Loan.

4. Investment in preference shares of subsidiary recognized at fair value through profit & loss account vis-a-vis the earlier method of carrying at cost.

5. Recognition of corporate guarantees given to banks on behalf of its Subsidiaries/Associates and Joint Ventures as investment in equity at their fair value. Subsequently, Amortization guarantee commission is recognized in profit or loss over the tenure of the loan for which guarantee was provided as per Ind AS 18.

6. Recognition of provision against trade receivables based on “expected credit loss” model as per Ind AS 109 vis-a-vis the earlier provision made on doubtful trade receivable by assessment on case to case basis.

7. Under Ind AS the proposed final dividend including related tax is recognized in the period in which the obligation to pay is established. Under IGAAP a provision was required to be made in the financial statements for the proposed final dividend in the period to which the liability related.

8. Actuarial gains and losses pertaining to defined benefit obligations and re-measurement pertaining to return on plan assets are recognized in statement of Other Comprehensive Income in accordance with Ind AS 19 and are subsequently not reclassified to profit or loss.

9. Recognition of Loans at their present value as compared to cost in IGAAP. This adjustment includes the difference between the book value and the present value of an interest free loan. The interest on the present value of this loan is recognized over the tenure of the loan using the EIR method.

10. Recognition of Long term provisions at their present value using discounting techniques vis-a-vis the current method of carrying at full value.

11. Under the previous GAAP, revenue from sale of goods was presented exclusive of excise duty. Under Ind AS revenue from sale of goods is presented inclusive of excise duty.

Note 12 : Exceptional Item

PNG Tollways Limited (‘PNG’), an associate of the Company, had entered into a service concession agreement with National Highways Authority of India (‘NHAI’) for construction, operation and maintenance of six laning of Pimpalgaon - Nashik - Gonde on built operate and transfer model basis. PNG has terminated the said service concession agreement after giving notice to NHAI in accordance with the termination clauses of the service concession agreement and claimed compensation from NHAI. The company has also been involved in executing the said project.

The Company based on its legal and commercial evaluation has assessed the probable amount of claims to be received from NHAI by PNG and PNG’s obligation towards its lenders and other creditors. On the basis of the said evaluation, the management has also assessed the recoverability of its exposure to PNG in the form of, project receivables, interest receivable and construction work in progress. Accordingly, the management has recognized following provisions/write off in the statement of profit and loss and disclosed as an “Exceptional Items”.

Note 13 :

The Company was subject to search under 132 of the Income Tax Act,1961 in the month April,2016. The Income Tax Department had issued notices u/s 153A to file revised return for last six years in the month of January, 2017. Ashoka Buildcon Ltd filed revised return u/s 153A under protest in the month of March, 2017 claiming some additional expenditure and deduction based on recent judgments pronounced, subject to these additional deduction there is no change in return of Income as was filed in original return of Income of respective years.

Note 14 :

The company has registered under Employees Provident Fund Act for employees of the company as well as employees of certain group companies.

Note 15:

Balance of Debtors, Creditors, Advances, Deposits, Unsecured Loan etc. are subject to confirmation and reconciliation if any.

Note 16 : Events after reporting period

No subsequent event has been observed which may required on adjustment to the balance sheet.

Note 17 : Previous year comparatives

Previous year’s figures have been regrouped/reclassified, wherever necessary, to conform to current year classification.

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Mar 31, 2016

COMPANY OVERVIEW:

The Company was incorporated in 1993. It is presently in the business construction of infrastructure facilities on Engineering, Procurement and Construction Basis (EPC) and Built, Operate and Transfer (BOT) Basis and Sale of Ready Mix Concrete and Bitumen. The Company has promoted Special Purpose Vehicles (SPVs) for some of its projects, wherein ''Toll Collection Rights'' are received in exchange of the Construction Cost. For this, the SPVs significantly engage the services of the Company for contract related activities due to inherent execution capabilities / expertise and experience of the Company.

(I) AS - 17 - Segment Reporting

The Company has identified three reportable segments i.e. Construction & Contract related activities, BOT Projects and Sales of Goods. Segments have been identified taking in to account the nature of activities of the Company, differing risks and returns and internal reporting systems.

(II) AS - 18 Related Party Transactions

(A) List of Related Parties

(a) Parties where control exists

(i) Ashoka-DSC Katni Bypass Road Ltd.

(ii) Ashoka Highways (Bhandara) Ltd.

(iii) Ashoka Highways (Durg) Ltd.

(iv) Ashoka Infrastructure Ltd.

(v) Ashoka Infraways Ltd.

(vi) Viva Highways Ltd.

(vii) Ashoka Pre - Con Pvt Ltd.

(viii) Ashoka Technologies Pvt. Ltd.

(ix) Ashoka Sambalpur Bargarh Tollway Ltd.

(x) Ashoka Belgaum Dharwad Tollway Ltd.

(xi) Ashoka Dhankuni Kharagpur Tollway Ltd.

(xii) Ashoka Concessions Ltd.

(xiii) Ashoka Cuttak Angul Tollway Ltd

(xiv) Viva Infrastructure Ltd.

(xv) Ashoka GVR Mudhol Nipani Roads Ltd.

Enterprises in which Key Management Personnel / Directors have significant influence (Only with whom there have been transaction during the year / there was balance outstanding at the year end)

(i) Ashoka Education Foundation

(ii) Ashoka Township (AOP)

(iii) Hotel Evening Inn Pvt. Ltd.

(iv) Ashoka Institute of Medical Sciences & Research

(v) Ashoka Highways Reseach Centre Pvt Ltd.

(vi) Ashoka Bagewadi Saundatti Road Ltd.

(vii) Ashoka Hungund Talikot Road Ltd.

(viii) Ashoka Path Nirman (Nasik) Pvt.Ltd.

(ix) Unison Enviro Pvt. Ltd.

(c) Key Management Personnel

(i) Ashok M Katariya

(ii) Satish D Parakh

(iii) Sanjay P Londhe

(iv) Milapraj Bhansali

(v) Paresh C Mehta

(vi) Manoj A Kulkarni

(d) Directors and their relatives

(i) Asha A. Katariya

(ii) Ashish A. Katariya

(iii) Astha A. Katariya

(iv) Satish D Parakh (HUF)

(v) Aditya S. Parakh

(vi) Shewta A Katariya

(e) Associates & Joint Ventures

(i) Ashoka Bridgeways

(ii) Ashoka Highway AD.

(iii) Ashoka Infrastructures

(iv) Jaora Nayagaon Toll Road Co. PvtLtd.

(v) Ashoka Valecha JV

(vi) Abhijeet Ashoka Infrastructures Pvt. Ltd.

(vii) Cube Ashoka Joint Venture

(viii) PNG Tollway Ltd.

(ix) GVR Ashoka Chennai ORR Limited

(x) Mohan Mutha Ashoka Buildcon LLP

(xi) ABL BIPL Joint Venture

(III) AS - 19 - Accounting for Operating Leases

The Company has various operating leases for equipments and premises, the leases are renewable on periodic basis and cancellable in nature.

(IV) PNG Tollways Limited (''PNG''), an associate of the Company, had entered into a service concession agreement with National Highways Authority of India (''NHAI'') for construction, operation and maintenance of six laning of Pimpalgaon – Nashik – Gonde on built operate and transfer model basis. PNG has terminated the said service concession agreement after giving notice to NHAI in accordance with the termination clauses of the service concession agreement and claimed compensation from NHAI. The company has also been involved in executing the said project.

The Company based on its legal and commercial evaluation has assessed the probable amount of claims to be received from NHAI by PNG and PNG''s obligation towards its lenders and other creditors. On the basis of the said evaluation, the management has also assessed the recoverability of its exposure to PNG in the form of, project receivables, interest receivable and construction work in progress. Accordingly, the management has recognised following provisions/write off in the statement of profit and loss and disclosed as an "Exceptional Items".

(V) The company has registered under Employees Provident Fund Act for employees of the company as well as employees of certain group companies.

(VI) Balance of Debtors, Creditors, Advances, Deposits, Unsecured Loan etc. are subject to confirmation and reconciliation if any.

(VII) The company was subject to a search under Section 132 of The Income Tax Act, 1961 in the month of April 2016. The Income Tax Department is in the process of assessing the final amount of tax payable by the Company, if any, and has not raised any demand on the company till date. Consequently, no impact for the same has been given in the financial statements for the F.Y. 2015-16.

(VIII) Corresponding figures of previous year have been regrouped / rearranged wherever necessary

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Mar 31, 2015

Note 1.

(i) Controlled special purpose entities are subsidiary companies incroporated to execute the specific project on Build Operate Transfer / Design Build Finance Operate Transfer

(ii) In one of the subsidiary companies, viz. Ashoka Infrastructure Limited toll collection has been discontinued at the directive of the Employer, The subsidiary Company has initiated arbitration proceeding towards such discontinuance. The subsidiary is confident of receiving additional compensation from the employer. Consequently the value of investment of the Company in the subsidiary continues to be at its full value.

(iii) The Company has entered into Joint Venture in the nature of Jointly Controlled Operations, wherein there is no capital contribution with Valecha Engineering Ltd for execution of the construction of Chittorgarh Bypass. The work is to be executed separately as per agreed terms and conditions and the obligations and fortunes of the respective works is being accounted individually of the Venturers.

(iv) The Company has also entered into a Joint Venture with Ashoka Buildwell & Developers Pvt. Ltd. by the name of Ashoka Infrastructures, to implement the Dhule Project on BOT basis with a sharing of 99.99% and 0.01% in favour of the company and Ashoka Buildwell & Developers Pvt. Ltd. respectively. The said AOP has applied to PWD Maharashtra for a further increase in toll period. However, approval for the same has not been received till the date of adoption of the financial statements resulting in a material uncertainty of future toll collections and operations of the enterprise. Proportionate interest of the company in the said Joint venture.

Note 2. * Advance recoverable in cash or kind or for value to be received includes Rs. 1,433 Lacs against a contract awarded by Kalyan Dombivili Municipal Corporation (KDMC) for Commercial Development on a PPP basis. The cost includes upfront fees paid to KDMC. The management have initiated arbitration proceedings with KDMC. Pending this provision for doubtful advance has been considered.

Note 3.

Contingent Liabilities (Rs. in Lacs)

Sr. Particulars As at 31-Mar-15 Asat31-Mar-14 No.

(a) Bank Guarantees issued by bankers in favour of third parties 85,066.79 70,856,94

(b) Corporate Guarantee issued by the Company infavour of Banks/Financial 111,142.20 117,000.00 Institutions for finance raised by Companies under the same management and against mobilisation advance.

(c) Claims against the Company not acknowledged as debts 350.65 23.90

(d) Liability against capital commitments outstanding (Net of Advances) 13.18 40.86

(e) Liability of Duty against Export Obligations 39.18 39.18

(f) Disputed Duties / Tax Demands (net of taxes paid) 4,538.50 1,259.14

(g) Resurfacing obligation as per concession agreement 237.06 709.77

Note 4.

The company has registered under Employees Provident Fund Act for employees of the company as well as employees of certain group companies.

Note 5.

Balance of Debtors, Creditors, Advances, Deposits, Unsecured Loan etc. are subject to confirmation and reconciliation if any.

Note 6.

Corresponding figures of previous period have been regrouped / rearranged wherever necessary

Note 7.

AS - 18 Related Party Transactions

(A) List of Related Parties

(a) Parties where control exists

(i) Ashoka-DSC Katni Bypass Road Ltd.

(ii) Ashoka Highways (Bhandara) Ltd.

(iii) Ashoka Highways (Durg)Ltd.

(iv) Ashoka Infrastructure Ltd.

(v) Ashoka Infraways Ltd.

(vi) Viva Highways Ltd.

(vii) Ashoka Precon P. Ltd.

(ix) Ashoka Sambalpur Bargarh Tollway Ltd.

(x) Ashoka Belgaum Dharwad Tollway Ltd.

(xi) Ashoka Dhankuni Kharagpur Tollway Ltd.

(xii) Ashoka Concessions Ltd

(xiii) Ashoka Cuttak Angul Tollway Limited

(xiv) Viva Infrastructure Ltd.

(b) Enterprises in which Key Management Personnel / Directors have significant influence

(i) Ashoka Buildwell & Developers P. Ltd.

(ii) Ashoka Builders (Nasik) P. Ltd.

(iii) Ashoka Engineering Co.

(iv) Ashoka Vastuvaibhav

(v) Ashoka E-Tech

(vi) Shweta Agro Farm

(vii) Ashoka Construwell P. Ltd.

(ix) Ashoka Biogreen Pvt Ltd

(x) Ashoka City Tower construction

(xi) Ashoka Shilp Akruti Pvt Ltd

(xii) Ashoka Vastukala Nirman Pvt Ltd

(xiii) Ashoka Housing Construction Pvt Ltd

(xiv) Ashoka Township (AOP)

Hotel Evening Inn Pvt Ltd

(c) Key Management Personnel

(i) Ashok M Katariya

(ii) Satish D Parakh

(iii) Sanjay P Londhe

(iv) Milapraj Bhansali

(d) Directors and their relatives

(i) Asha A. Katariya

(ii) Ashish A. Katariya

(iii) Astha A. Katariya

(iv) S D Parakh HUF

(v) Aditya Parakh

(vi) Shewta A Katariya

(e) Associates & Joint Ventures

(i) Ashoka Bridgeways

(ii) Ashoka Highway AD.

(iii) Ashoka Infrastructures

(iv) Jaora Nayagaon Toll Road Co. P.Ltd.

(v) Ashoka Valecha JV

(vi) Abhijeet Ashoka Infrastructures Pvt. Ltd.

(vii) Cube Ashoka Joint Venture

(viii) PNG Tollways Ltd.

(ix) GVR Ashoka Chennai ORR Limited

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Mar 31, 2014

Not Available

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Mar 31, 2013

(i) Controlled special purpose entities are subsidiary companies incroporated to execute the specific project on Build Operate Transfer / Design Build Finance Operate Transfer

(ii) In one of the subsidiary company, viz. Ashoka Infrastructure Limited toll collection has been discontinued at one out of the two toll plazas at the directive of the Employer, the loss of which the subsidiary expects to be compensated by the Employer. Based on additional directives of the employer, major maintenance work was carried out during the F.Y 2010-11. Both these factors have led to decline of the net worth of the company. However, the subsidiary is confident of receiving additional compensation from the employer. Consequently the value of investment of the Company in the subsidiary continues to be at its full value.

(iii) The Company has entered into Joint Venture in the nature of Jointly Controlled Operations, wherein there is no capital contribution with Valecha Engineering Ltd for execution of the construction of Chittorgarh Bypass. The work is to be executed separately as per agreed terms and conditions and the obligations and fortunes of the respective works is being accounted individually of the Venturers.

(iv) The Company, Ashoka Concessions Limited (ACL), a subsidiary and Macquarie SBI Infrastructure Investments Pte Limited, Singapore (MSIIPL) and SBI Macquarie Infrastructure Trust, Mumbai (SMIT) [MSIIPPL & SMIT have been referred to as Investors) have entered into a multi party agreement. Pursuant to this agreement the Company and Investors have to subscribe to the equity shares of ACL in a manner to have the inter-se holding in the ratio of 66:34.

Pursuant to this agreement the investments of ABL in following subsidiaries have been transferred to ACL during the year:-

1. Ashoka Highways (Bhandara) Limited

2. Ashoka HIghways (Durg) Limited

3. Ashoka Belgaum Dharwad Tollway Limited

4. Ashoka Sambalpur Bargarh Tollway Limited

5. Ashoka Dhankuni Kharagpur Tollway Limited

6. PNG Tollways Limited

7. Jarora Nayagaon Toll Road Co. Pvt Limited

(v) The Company has also entered into a Joint Venture with Ashoka Buildwell & Developers Pvt. Ltd. by the name of Ashoka Infrastructures, to implement the Dhule Project on BOT basis with a sharing of 99.99% and 0.01% in favour of the company and Ashoka Buildwell & Developers Pvt. Ltd. respectively.The said AOP has applied to PWD Maharashtra for a further increase in toll period. However, approval for the same has not been received till the date of adoption of the financial statements resulting in a material uncertainty of future toll collections and operations of the enterprise Proportionate interest of the company in the said Joint venture is as under:

(vi) Further to the Search u/s 132 of the Income Tax Act, 1961 in the month of April, 2010 the Company, with a view to avoid acrimonious and long drawn litigation, has preffered to file an application u/s 245C(1) to the Income Tax Settlement Commission, in pursuance of which the company has provided and paid as of 31.12.2012 a sum of Rs. 1081 Lac. The same has been provided as Tax for earlier years

(a) PWD Maharashtra vide its Notification dated November 14, 2012 directed the Company to stop collection of toll of the Ahmednagar (Nagar Karmala) Project. The Company has challenged this order and the matter is under arbitration. The company is confident that the arbitration award will be in its favour and it will be permitted to restart collection of toll. However, on a prudent basis the Company estimated the value in use of the intangible asset, Right to collect Toll and has impaired fifty percent of the written down value of Rs. 3137.70 which is presented as Exceptional item in the Profit & Loss account. The balance value of the asset of Rs. 1568.85 lakhs is classified as OtherNon-Current Assets.

Percentage completion method for income recognition on long term contracts involves technical estimates by engineers/ technical officials, of percentage of completion and costs to completion of each project/contract on the basis of which profit/ loss is allocated.

(b) PWD Maharashtra vide its Notification dated November 14, 2012 directed the Company to stop collection of toll of the Ahmednagar (Nagar Karmala) Project, Consequently the Company no longer retains the right to collect toll on the project, the written down value of the the project aggregating to Rs. 3137.70 lakhs has been fully amortised during the year. The Company has initiation aribitration proceedings on PWD against the said stoppage.

i) Contribution to Provident Fund is charged to accounts on accrual basis. The Company operates a defined contribution scheme with recognized provident fund. For this Scheme, contributions are made by the company, based on current salaries, to recognized Fund maintained by the company. In case of Provident Fund scheme, contributions are also made by the employees. An amount of Rs. 89.29 Lacs (Previous Period Rs. 81.20 Lacs) has been charged to the Profit & Loss Account on account of this defined contribution scheme.

(ii) The Gratuity benefit is funded through a defined benefit plan. For this purpose the Company has obtained a qualifying insurance policy from Life Insurance Corporation ofIndia.

(iii) The Company provides benefits to its employees under the Leave Encashment pay plan which is a non-contributory defined benefit plan. The employees of the Company are entitled to receive certain benefits in lieu of the annual leave not availed of during service, at the time of leaving the services of the Company. The benefits payable are expressed by means of formulae which takes into account the Salary and the leave balance to the credit of the employees on the date of exit.

(II) AS - 18 Related Party Transactions (A) List of Related Parties

(a) Parties where control exists

(i) Ashoka-DSC Katni Bypass Road Ltd.

(ii) Ashoka Highways (Bhandara) Ltd.

(iii) Ashoka Highways (Durg)Ltd.

(iv) Ashoka Infrastructure Ltd.

(v) Ashoka Infraways Ltd.

(vi) Viva Highways Ltd.

(vii) Ashoka Precon P. Ltd.

(viii) Ashoka Technologies P. Ltd.

(ix) Ashoka High-Way Ad.

(x) Ashoka Infrastructures

(xi) Ashoka Sambalpur Bargarh Tollway Ltd.

(xii) Ashoka Belgaum Dharwad Tollway Ltd.

(xiii) Ashoka Dhankuni Kharagpur Tollway Ltd.

(xiv) Ashoka Concessions Ltd

(xv) Ashoka Cuttak Angul Tollway Limited

(xvi) Viva Infrastructure Ltd.

(d) Directors and their relatives

(i) Asha A. Katariya

(ii) Ashish A. Katariya

(iii) Astha A. Katariya

(iv) S D Parakh HUF

(v) Aditya Parakh

(vi) Shewta V Kasera

(b) Enterprises in which Key Management Personnel / Directors have significant influence

(i) Ashoka Buildwell & Developers P. Ltd.

(ii) Ashoka Builders (Nasik) P. Ltd.

(iii) Jaora Nayagaon Toll Road Co. P.Ltd.

(iv) Ashoka Engineering Co.

(v) Ashoka Vastuvaibhav

(vi) Ashoka E-Tech

(vii) Shweta Agro Farm

(viii) Ashoka Construwell P. Ltd.

(ix) Ashoka Education Foundation

(x) Ashoka Biogreen Pvt Ltd

(xi) Ashoka City Tower construction

(xii) Ashoka Shilp Akruti Pvt Ltd

(xiii) Ashoka Vastukala Nirman Pvt Ltd

(xiv) Ashoka Housing Construction Pvt Ltd

(xv) Ashoka Township (AOP)

(c) Key Management Personnel

(i) Ashoka M Katariya

(ii) Satish D. Parakh

(iii) Sanjay P Londhe

(e) Associates & Joint Ventures

(i) Ashoka Bridgeways

(ii) Ashoka Highway AD.

(iii) Ashoka Infrastructures

(iv) Ashoka Valecha JV

(v) Abhijeet Ashoka Infrastructures Pvt. Ltd.

(vi) Cube Ashoka Joint Venture

(vii) PNG Tollways Ltd.

Note: Figures in brackets denote figures of previous period ended March 31,2012

(b) The Company has provided Rs. 3233.49 Lacs (Previous Period Rs. 667.00 Lacs) for Maintenance work arising out of Contractual Obligations during the defect liability period of the contracts, which is charged to the Profit & Loss Account.

(c) The Company has contractual obligation to periodically maintain, replace or restore infrastructure as per the terms of the concession agreement. The Company has recongnied the provision ofRs. 709.76 (Previous YearRs. Nil) in accordance with Account Standard - 29 ''Provision, Contingent Liabilities and Contingent Assets'' i.e., at the best estimate of the expenditure required to settle the present obligation at the balance sheet date.

(vii) The company has registered under Employees Provident Fund Act for employees of the company as well as employees of certain group companies.

(viii) Balance ofDebtors, Creditors, Advances, Deposits, Unsecured Loan etc. are subject to confirmation and reconciliation if any.

(ix) As per the requirement of Revised Schedule VI, the company has re-classified its assets and liabilities into current and non-current, based on the normal operating cycle, as determined by the management. Previous years figures have been accordingly re-grouped and re-classifed.

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Mar 31, 2012

(i) Controlled special purpose entities are subsidiary companies incroporated to execute the specifc project on Build Operate Transfer

(ii) In one of the subsidiary company, viz. Ashoka Infrastructure Limited toll collection has been discontinued at one out of the two toll plazas at the directive of the Employer, the loss of which the subsidiary expects to be compensated by the Employer. Based on additional directives of the employer, major maintenance work was carried out during the F.Y. 2010-11. Both these factors have led to decline of the net worth of the company. However, the subsidiary is confdent of receiving additional compensation from the employer. Consequently the value of investment of the Company in the subsidiary continues to be at its full value.

(iii) The Company has entered into Joint Venture in the nature of Jointly Controlled Operations, wherein there is no capital contribution with Valecha Engineering Ltd for execution of the construction of Chittorgarh Bypass. The work is to be executed separately as per agreed terms and conditions and the obligations and fortunes of the respective works is being accounted individually of the Venturers.

(iv) The Company is in process of trasfeering some of its existing Investments into an another subsidiary company.

(v) The Company has also entered into a Joint Venture with Ashoka Buildwell & Developers Pvt. Ltd. by the name of Ashoka Infrastructures, to implement the Dhule Project on BOT basis with a sharing of 99.99% and 0.01% in favour of the company and Ashoka Buildwell & Developers Pvt. Ltd. respectively. The said AOP has applied to PWD Maharashtra for a further increase in toll period. However, approval for the same has not been received till the date of adoption of the fnancial statements resulting in a material uncertainty of future toll collections and operations of the enterprise Proportionate interest of the company in the said Joint venture is as under:

(vii) Out of the Investments of the Company following investments are pledged with the Financial Institutions /Banks for security against the fnancial assistance extended to the companies under the same management:

(a) Equity Shares of Rs.10 each of:

(i) 4,000,000 Jayaswals Ashoka Infrastructure Pvt. Ltd.

(ii) 7,257,864 Viva Highways Pvt. Ltd.

(iii) 295,000 Ashoka Infraways Pvt. Ltd.

(iv) 1,530,000 Ashoka-DSC Katni Bypass Road Pvt. Ltd.

(v) 13,317,658 Ashoka Highways (Bhandara) Ltd.

(vi) 15,154,734 Ashoka Highways (Durg) Ltd.

(vii) 142,841 Ashoka Sambalpur Bargarh Tollway Pvt. Ltd.

(viii) 327,664 Ashoka Belgaum Dharwad Tollway Pvt. Ltd.

(ix) 666,000 Ashoka Dhankuni Kharagpur Tollway Ltd.

(x) 11,211,330 PNG Tollways Limited

(b) Preference Shares of Rs.100 each :

(i) 32,383 Ashoka Sambalpur Bargarh Tollway Pvt. Ltd.-1% Convertible

(ii) 21,136 Ashoka Belgaum Dharwad Tollway Pvt. Ltd.-1% Convertible

28 ADDITIONAL NOTES

(I) During the year the Company has changed the method of amortisation in respect of Intangible Assets i.e. Right to Collect Toll from the projected traffc volumes over the toll period to the amortisation method prescribed in Schedule XIV to The Companies Act, 1956. Amortisation has been recalculated in accordance with new method from the date of toll commencement of respective BOT project. This change has resulted into a reduction of accumulated Amortisation by Rs. 1327.00 lakhs upto March 31, 2012 with a increase in the Written Down Value of Intangible Assets. Had the earlier accounting policy of amortisation of projected traffc volumes being followed, the Amortisation for the year would have been lower by Rs. 24.08 lakhs with a corresponding impact on the net results and reserves

(III) AS – 18 Related Party Transactions

(A) List of Related Parties

(a) Parties where control exists

(i) Ashoka-DSC Katni Bypass Road P. Ltd.

(ii) Ashoka Highways (Bhandara) Ltd.

(iii) Ashoka Highways (Durg)Ltd.

(iv) Ashoka Infrastructure Ltd.

(v) Ashoka Infraways P. Ltd.

(vi) Viva Highways P. Ltd.

(vii) Ashoka Precon P. Ltd.

(viii) Ashoka Technologies P. Ltd.

(ix) Ashoka High-Way Ad.

(x) Ashoka Infrastructures

(xi) Ashoka Sambalpur Bargarh Tollway Pvt. Ltd.

(xii) Ashoka Belgaum Dharwad Tollway Pvt. Ltd.

(xiii) Ashoka Dhankuni Kharagpur Tollway Ltd.

(xiv) Ashoka Concessions Pvt Ltd

(xv) Ashoka Cuttak Angul Tollway Limited

(xvi) Viva Infrastructure Pvt. Ltd.

(d) Directors and their relatives

(i) Asha A. Katariya

(ii) Ashish A. Katariya

(iii) Astha A. Katariya

(iv) S D Parakh HUF

(v) Shubham Agencies

(vi) Aditya Parakh

(vii) Shewta V Kasera

(b) Enterprises in which Key Management Personnel / Directors have Significant infuence

(i) Ashoka Buildwell & Developers P. Ltd.

(ii) Ashoka Builders (Nasik) P. Ltd.

(iii) Jaora Nayagaon Toll Road Co. P.Ltd.

(iv) Ashoka Engineering Co.

(v) Ashoka Vastuvaibhav

(vi) Ashoka E-Tech

(vii) Shweta Agro Farm

(viii) Ashoka Construwell P. Ltd.

(ix) Ashoka Education Foundation

(x) Ashoka Biogreen Pvt Ltd

(xi) Ashoka City Tower construction

(xii) Ashoka Shilp Akruti Pvt Ltd

(xiii) Ashoka Vastukala Nirman Pvt Ltd

(xiv) Ashoka Housing Construction Pvt Ltd

(xv) Ashoka Township (AOP)

(c) Key Management Personnel

(i) Ashoka M Katariya (ii) Satish D. Parakh

(e) Associates & Joint Ventures

(i) Ashoka Bridgeways

(ii) Ashoka Highway AD.

(iii) Ashoka Infrastructures

(iv) Ashoka Valecha JV

(v) Jayswals Ashoka Infrastructures Pvt. Ltd.

(vi) Cube Ashoka Joint Venture

(vii) PNG Tollways Ltd.

(IV) AS - 19 – Accounting for Operating Leases

The Company has various operating leases for equipments and premises, the leases are renewable on periodic basis and cancellable in nature.

(X) Contingent Liabilities (Rs. in Lacs)

Sr. Particulars As at 31-Mar-12 As at 31-Mar-11 No.

(a) Bank Guarantees and Letters of Credit issued by bankers in favour of third 73,835.12 47,985.91 parties

(b) Corporate Guarantee issued by the Company in favour of Banks/ Financial 117,623.70 170,363.00 Institutions for finance raised by Companies under the same management

[Including Guarantees given against shortfall in termination payment by customer to lenders of Rs. 1,14,760.56 Lacs (Previous Period Rs. 1,38,400 Lacs)]

(c) Claims against the Company not acknowledged as debts 23.90 23.90

(d) Liability against capital commitments outstanding (Net of Advances) 69.32 4,522.21

(e) Liability of Duty against Export Obligations 39.18 39.18

(f) Disputed Duties / Tax Demands (net of taxes paid) 1,455.69 1,234.02

(XII) The company has registered under Employees Provident Fund Act for employees of the company as well as employees of certain group companies.

(XIII) Balance of Debtors, Creditors, Advances, Deposits, Unsecured Loan etc. are subject to confrmation and reconciliation if any.

(XIV) As per the requirement of Revised Schedule VI, the company has re-classifed its assets and liabilities into current and non-current, based on the normal operating cycle, as determined by the management. Previous years fgures have been accordingly re-grouped and re-classifed.

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Mar 31, 2011

COMPANY OVER VIEW :

The Company is incorporated in 1993. It is presently in the business construction of infrastructure facilities on Engineering, Procurement and Construction Basis (EPC) and Build, Operate and Transfer (BOT) Basis and Sale of Ready Mix Concrete and Bitumen. The Company has promoted Special Purpose Vehicles (SPVs) for some of its projects, wherein 'Toll Collection Rights' are received in exchange of the Construction Cost. For this, the SPVs significantly engage the services of the Company for contract related activities due to inherent execution capabilities / expertise and experience of the Company.

1 "The Company has changed the method of amortisation in respect of Intangible Assets i.e. Right to collect Toll and is now charging depreciation based on the proportion of traffic volume for a particular period to the projected traffic volumes over the toll period instead of straight line method used earlier. Amortisation has been recalculated in accordance with new method from the date of toll commencement of respective BOT project by the company. Change in Amortisation policy has resulted into reduction of accumulated Amortisation by R s9. 62.67 Lacs upto March 31, 2011 with a credit to the Profit & Loss Account and a corresponding increase in the Written Down Value of Intangible Assets. Had the earlier accounting policy of amortisation of straight line basis being followed, the Amortisation for the year would have been higherR b 2sy.49.57 Lacs and profit after tax lower by the same amount."

2 Balance of Untilised Monies raised by Issue amounting to Rs. 1,088.43 Lacs is lying in the Current account with the Scheduled Baks as at march 31, 2011.

3 AS 7 - Accounting for Construction Contracts

(a) Revenue from fixed price construction contracts are recognized on the percentage of completion method, measured by reference to the percentage of cost incurred up to the year end to estimated total cost for each contract. For the purpose of determining percentage of work completed, estimates of contract cost and contract revenue are used.

Percentage completion method for income recognition on long term contracts involves technical estimates by engineers/technical officials, of percentage of completion and costs to completion of each project/contract on the basis of which profit/loss is allocated.

(b) The company has been awarded a contract for Commercial Development on a PPP basis by Kalyan Dombivili Municipal Corporation (KDMC). The work is yet to be started due to pendign approval of plan by the KDMC since 2008-09. The company has incurred a cost of Rs.1465.10 Lacs till date as upfront fees paid to KDMC and others. The management is confident of resuming operations on this project and hence, in the opinion of the management the amount is not impaired. Consequently, no provision for the same has been made in the accounts.

In accordance with the accounting policy of the Company, Profit on Mark to Market aggregating Rs.50.65 (P.Y. Rs.59.32) Lacs has been recongnised as and when realised.

4 Employee Stock Options

The Board of Directors of the company has approved creation of an Employee Stock Option on December 13, 2007. The company has granted stock options for 7,80,050 shares on December 15, 2007 at an exercise price of Rs.190 per share. Options granted will be vested over a period of five years, first such vesting occured on december 15, 2010. The details of the stock option plan are as under:

Guidance Note on ‘Accounting for employee share based payments' issued by the Institute of Chartered Accountants of India establishes financial accounting and reporting principles for employee share based payment plans.

The Company has applied Intrinsic Value Method of Accounting. The difference between the Fair Value of the Equity Share as at March 31, 2008 (as determined by the Category I Merchant banker) and the exercise price is Rs.Nil. Accordingly no Compensation Cost needs to be amortised over the vesting period.

Had the Compensation Cost for the plan applied in a manner consistent with the fair value approach described in the guidance note, the Company's Net Income and Basic and Diluted Earnings Per Share as reported would have reduced to the pro forma amounts as under:

5 Employee Benefit-Gratuity & Leave Encashment

(a) Contribution to Provident Fund is charged to accounts on accrual basis. The Company operates a defined contribution scheme with recognized provident fund. For this Scheme, contributions are made by the company, based on current salaries, to recognized Fund maintained by the company. In case of Provident Fund scheme, contributions are also made by the employees. An amount of Rs.84.61 Lacs (P.Y. Rs.69.73 Lacs) has been charged to the Profit & Loss Account on account of this defined contribution scheme.

(b) The Gratuity benefit is funded through a defined benefit plan. For this purpose the Company has obtained a qualifying insurance policy from Life Insurance Corporation of India.

(c) The Company provides benefits to its employees under the Leave Encashment pay plan which is a non- contributory defined benefit plan. The employees of the Company are entitled to receive certain benefits in lieu of the annual leave not availed of during service, at the time of leaving the services of the Company. The benefits payable are expressed by means of formulae which takes into account the Salary and the leave balance to the credit of the employees on the date of exit.

(d) Details Gratuity and Leave Encashment disclosure as required by AS-15 (Revised) are detailed hereunder:

8 AS - 17 - Segment Reporting

The Company has identified three reportable segments i.e. Construction & Contract related activities, BOT Projects and Sales of Goods. Segments have been identified taking in to account the nature of activities of the Company, differing risks and returns and internal reporting systems.

Note:

1 Construction & Contracting Activity comprises execution of engineering and construction projects to provide solutions in civil and electrical engineering (on turnkey basis or otherwise) to core / infrastructure sectors.

2 BOT Activity relates to execution of the projects on long term basis comprising developing, operating and maintaing the Infrastructure facility.

3 Sale of Goods comprises the activity of selling of Ready Mix Concrete (RMC) and Bitumen.

9 AS - 18

Related Party T ransactions

I List of Related Parties

(a) Parties where control exists

(i) Ashoka-DSC Katni Bypass Road P. Ltd.

(ii) Ashoka Highways (Bhandara) Ltd.

(iii) Ashoka Highways (Durg)Ltd.

(iv) Ashoka Infrastructure Ltd.

(v) Ashoka Infraways P. Ltd.

(vi) Viva Highways P. Ltd.

(vii) Ashoka Precon P. Ltd.

(viii) Ashoka Technologies P. Ltd.

(ix) Ashoka High-Way Ad.

(x) Ashoka Infrastructures

(xi) Ashoka Sambalpur Bargarh Tollway Pvt. Ltd.

(xii) Ashoka Belgam Dharwad Tollway Pvt. Ltd.

(xiii) Ashoka Dhankuni Kharagpur Tollway Ltd.

(d) Directors and their relatives

(i) Asha A. Katariya

(ii) Ashish A. Katariya

(iii) Astha A. Katariya

(iv) S D Parakh HUF

(v) Shubham Agencies

(b) Enterprises in which Key Management Personnel / Directors have significant influence

(i) Ashoka Buildwell & Developers P. Ltd.

(ii) Ashoka Builders (Nasik) P. Ltd.

(iii) Jaora Nayagaon Toll Road Co. P.Ltd.

(iv) Ashoka Engineering Co.

(v) Ashoka Vastuvaibhav

(vi) Ashoka E-Tech

(vii) Shweta Agro Farm

(viii) Ashoka Construwell P. Ltd.

(ix) Ashoka Education Foundation

(c) Key Management Personnel (i) Ashok M. Katariya

(ii) Satish D. Parakh

(iii) Sunil B. Raisoni(Upto March 14, 2011)

(e) Associates & Joint V entures

(i) Ashoka Bridgeways

(ii) Ashoka Highway AD.

(iii) Ashoka Infrastructures

(iv) Ashoka Valecha JV

(v) Jayswals Ashoka Infrastructures Pvt. Ltd.

(vi) Viva Infrastructure Pvt. Ltd.

(vii) PNG Tollways Ltd.

10 AS - 19 – Accounting for Operating Leases

The Company has various operating leases for equipments and premises, the leases are renewable on periodic basis and cancellable in nature.

The Company is claiming deduction u/s 80-IA of The Income Tax Act, 1961 for certain projects. Accordingly, no provision for deferred tax assets/liabilities on timing differences originating and reversing during tax holiday period has been made.

13 The Company was subject to search u/s 132 of The Income Tax Act, 1961 in the month of April 2010. The tax department is in the process of assessing the impact of the said search and has not raised any demand on the company till date.

(b) The Company has provided Rs.1556.00 Lacs for Maintenance work arising out of Contractual Obligations during the defect liability period of the contracts, which is charged to the Profit & Loss Account.

Further, the Company has incurred expenditure aggregating Rs.985.52 Lacs towards periodic maintenance during the year, which is also charged to the Profit & Loss Account.

6 Contingent Liabilities

(Rs. in Lacs)

Sr. Particulars As at As at

No 31-Mar-11 31-Mar-10

(a) Bank Guarantees and Letters of Credit issued by bankers in favour of third parties 47,985.91 35,325.21

(b) Corporate Guarantee issued by the Company in favour of Banks/ Financial Institutions for finance raised by Companies under the same management [Including Guarantees given against shortfall in termination payment by customer to lenders of Rs.1,38,400 Lacs (P.Y. Rs.78,500 Lacs)] 170,363.00 121,063.00

(c) Claims against the Company not acknowledged as debts 23.90 6.71

(d) Liability against capital commitments outstanding (Net of Advances) 4,522.21 21.91

(e) Liability of Duty against Export Obligations 39.18 39.18

(f) Disputed Duties / Tax Demands (net of taxes paid) 1,234.02 645.57

7 (a) The Company has entered into Joint Venture in the nature of Jointly Controlled Operations, wherein there is no capital contribution with Valecha Engineering Ltd for execution of the construction of Chittorgarh Bypass, the work is to be executed separately as per agreed terms and conditions and the obligations and fortunes of the respective works is being accounted individually of the Venturers.

(b) The Company has also entered into a Joint Venture with Ashoka Buildwell & Developers Pvt. Ltd. by the name of Ashoka Infrastructures, to implement the Dhule Project on BOT basis with a sharing of 99.99% and 0.01% in favour of the company and Ashoka Buildwell & Developers Pvt. Ltd. respectively. Proportionate interest of the company in the said Joint venture is as under:

8 Suppliers/Service providers covered under Micro, Small Medium Enterprises Development Act, 2006 have not furnished the information regarding filing of necessary memorandum with the appropriate authority. In view of this, information required to be disclosed u/s 22 of the said Act is not given.

9 Out of the Investments of the Company following investments are pledged with the Financial Institutions /Banks for security against the financial assistance extended to the companies under the same management:

(a) Equity Shares of Rs.10 each of:

(I) 4,000,000 Jayaswals Ashoka Infrastructure Pvt. Ltd.

(ii) 7,257,864 Viva Highways Pvt. Ltd.

(iii) 1,530,000 Ashoka DSC Katni Byapss Road Pvt. Ltd.

(iv) 13,317,658 Ashoka Highways (Bhandara) Ltd.

(v) 15,154,734 Ashoka Highways (Durg) Ltd.

(vi) 86,792 Ashoka Sambalpur Bargarh Tollway Pvt. Ltd.

(Vii) 295,000 Ashoka Infraways Pvt. Ltd.

(b) Preference Shares of:

(i) 27,502 Ashoka Sambalpur Bargarh Tollway Pvt. Ltd.-1% Convertible of Rs.100 each

10 The company has registered under Employees Provident Fund Act for employees of the company as well as employees of certain group companies.

11 Balance of Debtors, Creditors, Advances, Deposits, etc. are subject to confirmation and reconciliation if any.

12 Previous year figures have been regrouped/ rearranged wherever necessary, to make them comparable with current year figures.