Annual Report: Afcons Infrastructure Limited

AFCONS INFRASTRUCTURE LIMITED
ANNUAL REpORT
2020-21
Chenab Railway Bridge, Jammu & Kashmir
World’s highest railway bridge,
35m higher than the Eiffel Tower
Mission
“To be a prominent
transnational infrastructure
company recognised for
business innovations, focussed
Achievement Award for Best
Construction Project at the CIDC
Most Innovative Knowledge on total satisfaction and Vishwakarma Awards 2021
Enterprise (MIKE) Award for 2020
at Global, Asia and India levels enhanced value creation for •Atal Tunnel, Rohtang
all its stakeholders” •Mahatma Gandhi Setu

BOARD OF DIRECTORS BANKERS

S. P. Mistry - Chairman State Bank of India
UCO Bank
K. Subramanian - Executive Vice Chairman
Punjab National Bank
P. S. Mistry
Axis Bank Ltd.
N. D. Khurody
Bank of India
P. N. Kapadia
Bank of Baroda
R. M. Premkumar
BNP Paribas
U. N. Khanna
ICICI Bank Ltd.
R.M. Nentin (Ms.)
Union Bank of India
S. Paramasivan - Managing Director
IDBI Bank Ltd.
Giridhar Rajagopalan - Deputy Managing Director
Standard Chartered Bank
Akhil Kumar Gupta - Executive Director (Operations)
Yes Bank Ltd.
Hongkong and Shanghai Banking Corporation Ltd.
Audit Committee Members Export Import Bank of India
N. D. Khurody - Chairman Indian Bank
P. N. Kapadia DBS Bank Ltd.
R. M. Premkumar
REGISTRARS & SHARE TRANSFER AGENT

COMPANY SECRETARY Cameo Corporate Services Limited
Gaurang M. Parekh Subramanian Building,
1 Club House Road,
Chennai-600002
AUDITORS Tel. no.: 044-28460390
M/s. Price Waterhouse Chartered Accountants LLP, Fax no.: 044-28460129
Email id.: afcons@cameoindia.com
Chartered Accountant
(ICAI registration no. 012754N/N500016)
M/s. HDS & Associates LLP, Chartered Accountants,
(ICAI registration no. W100144) Contents
Page Nos.
REGISTERED OFFICE Boards’ Report 2

“AFCONS HOUSE” 16, Shah Industrial Estate,
Management Discussion Analysis 14
Veera Desai Road, Azad Nagar P.O.
Andheri (West) Mumbai- 400 053 Corporate Governance Report 20
Website: www.afcons.com
Standalone Financial Statement 27
CIN : U45200MH1976PLC019335
Consolidated Financial Statements 91
Financial Information of Subsidiary 155

Companies
Forty-Fifth Annual General Meeting will be held on
Monday, 27th September, 2021 at 4.30 p.m. IST. through
Video Conferencing / Other Audio Visual Means.
BOARDS’ REPORT
Dear Members,
Your Directors are pleased to present the Forty-Fifth Annual Report together with the Audited Financial statement for the year ended
31st March 2021.
1. FINANCIAL RESULTS
Particulars Consolidated Standalone

` in crores ` in crores
st st st st
31 March 2021 31 March 2020 31 March 2021 31 March 2020
Total Income 9,521.13 10,130.69 9,153.82 9,506.01
Profit/(Loss) before Tax 290.50 375.62 253.23 378.41
Provision for Taxation 118.51 122.69 125.16 131.25
Excess/(short) provision for tax in respect of earlier years 2.10 5.24 2.14 5.24
Profit/(Loss) after Tax (before Minority Interest) 169.89 247.69 125.93 241.92
Minority Interest 2.92 -2.10 - -
Profit/ (Loss) for the year 166.97 245.59 125.93 241.92
Balance brought forward from previous years 1,543.79 1,339.27 1,262.82 1,061.97
Other items classified to other comprehensive income 0.86 -5.82 0.86 -5.82
Other Adjustment - - - -
Profit available for Appropriation 1,711.62 1,579.04 1,389.61 1,298.07
Less: Appropriation
(i) Interim Dividend on Equity 25.19 25.19 25.19 25.19
(ii) Dividend on Preference Shares 0.05 0.05 0.05 0.05
(ii) Tax on Dividend - 0.01 - 0.01
(iv) Transferred to/(from) Debenture Redemption Reserve (8.75) 10.00 (8.75) 10.00
Balance Carried Forward to Balance Sheet 1,695.13 1,543.79 1,373.12 1,262.82
2. OPERATIONS
(a) Standalone Results
Your Company has achieved total income of ` 9,153.82 crores for the year compared to the previous year ` 9,506.01 crores
showing decrease of 3.7%. The Profit before Tax for the year was ` 253.23 crores compared to ` 378.41 crores in the previous
year resulting in decrease of 33%. The Profit after Tax for the year was ` 125.93 crores compared to ` 241.92 crores in the
previous year resulting in decrease by 47.95%.
(b) Consolidated Results
Your Company has achieved total income of ` 9,521.13 crores for the year compared to the previous year’s ` 10,130.69 crores
showing a decrease of 6%. The EBIDTA for the year was ` 897.38 crores compared to ` 929.71 crores in the previous year
resulting in a decrease by 3.48%. The Consolidated Profit before Tax for the year was ` 290.50 crores compared to ` 375.62
crores in the previous year resulting in a decrease of 22.66%. The Consolidated Profit after Tax for the year was ` 169.89 crores
compared to ` 247.69 crores in the previous year resulting in a decrease by 31.41%. All intercompany transactions are netted
out at the time of consolidation and hence, the profits and revenues are reduced to that extent. Your Company’s Order book as
on 31st March, 2021 was ` 29,608 crores (including L1 orders of approx ` 3,360 crores).
(c) There has been no material changes and commitments affecting the financial position of the Company which have occurred
between the end of the financial year of the Company to which the financial statements relate and the date of the Report.
(d) During the year under review, the following major works were completed:
i. Extension of water transmission pipeline from Lake Victoria Water Supply Scheme to Tabora, Nzega, and Igunga Towns
(Package III) of The United Republic of Tanzania, Ministry of Water and Irrigation awarded to Joint Venture of the Company
and SMC Infrastructure Pvt.Ltd.
ii. Construction at Grade and Tunnel Entrances and Exits to the Jewel of the Creek Development at three locations in Diera,
at Dubai (Project: R777-4B1) of Road Transport Authority, Dubai awarded to Afcons Construction Mideast LLC, Dubai
(Subsidiary of the Company).
iii. Design and Construction of viaduct in Reach 3 between Jhansi Rani Square and Lokmanya Nagar Stations from Ch 7825
m to Ch 18212 m on the East-West Corridor of Nagpur Metro Rail Project for Nagpur Metro Rail Corporation Limited.
iv. Construction of 8.8 km. long Bidirectional Traffic Dual Lane Single Bore Highway Tunnel across Rohtang pass near Manali
in Himachal Pradesh of Border Roads Organization awarded to Strabag Afcons JV.
v. Widening of Al Rebat Road and Mirdif Interchange Bridges (Project: R1028/2C) at Dubai of Roads and Transport Authority,
Dubai awarded to Afcons Construction Mideast LLC, Dubai (subsidiary of the Company).
(e) During the year under review, the Company has secured the following major Contracts:
i. Construction of elevated viaduct from Sarai Kale Khan Station to New Ashok Nagar DN Ramp including Jangpura Entry
ramp and two nos. of elevated stations viz., Sarai Kale Khan Station and New Ashok Nagar [including Pre-Engineered steel
roof structure but excluding Architectural finishing station] of Delhi–Meerut Regional Rapid Transit System (RRTS) Corridor
for National Capital Region Transport Corporation (NCRTC) of ` 1,062 crores.
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ii. Design and Construction of Tunnels by TBM from near Brahampuri DN Ramp to Begumpul UP Ramp and 3 under Ground
Station at Meerut Central, Bhaisali and Begumpul by Cut & Cover Method including Architectural Finishing and Design,
supply, installation, testing and commissioning of Electrical and Mechanical Systems including fire detection and suppression
Systems and Hydraulic systems on Delhi-Ghaziabad–Meerut RRTS Corridor of NCRTC of ` 1,529 crores.
iii. Construction of i) 8.124 km elevated viaducts and 8 stations from CH. 17343.443m to 25467.443m, ii) 5.420 km elevated
viaducts and 3 stations from GNLU to Gift City and iii) 0.815 km elevated viaducts and additional platform at Koteswar road
station for Ahmedabad Metro Rail Project Phase-II from Motera stadium to Mahatma Mandir and GNLU to Gift City (excl.
E&M, Architectural finishing and roofing) Package- C1, at Gandhinagar of Gujarat Metro Rail Corporation of ` 903 crores.
iv. Rehabilitation & Upgradation of 2-Lane national highway road from Pk24+500 to Pk105+000 on RN1 in the Republic of
Gabon of Societe Autoroutiere Du Republic of Gabon of ` 760 crores.
v. Engineering, Procurement, Supply and Construction of Elevated/ At Grade Road (Length: 8.86 Km) along Eastern side of
Patna-Gaya Railway Line from Mithapur to Ram Govind Singh Mahuli Halt at Patna in the State of Bihar of Bihar State Road
Development Corporation Ltd., of ` 597 crores.
vi. Rehabilitation & Improvement of Water Supply System in Zanzibar- LOT 2 at Tanzania of Zanzibar Water Authority awarded
to Afcons Infrastructure Limited and Vijeta Projects and Infrastructures Ltd., Joint Venture, of which Companies’ shares is
` 208 crores.
vii. Completion of Balance Works for Rehabilitation of the Chalinze Water Treatment Plant, Supply and Installation of Secondary
and Tertiary Distribution Network and Construction of Reservoirs in Chalinze Village, Zanzibar of Zanzibar Water Authority
awarded to Afcons Vijeta Joint Venture, of which Companies’ shares is ` 145 crores.
viii. Upgradation of Deka Pumping Station and River Water Intake System in Zimbabwe of Zimbabwe Power Company awarded
to Afcons Vijeta Joint Venture, of which Companies’ shares is ` 295 crores.
ix. Engineering, Procurement, Supply and Re-Construction of North Jetty at Naval Base, Kochi of Cochin Port Trust of
` 400 crores.
x. Engineering, Procurement, Supply and Construction of New 4-lane Bridge Across River Kosi at Phulaut including
Rehabilitation and Upgradation of existing Birpur-Bihpur Section of NH-106 from km 106.000 to km. 136.000 to 2-lane with
Paved Shoulder in the State of Bihar of Ministry of Road Transport & Highways of ` 890 crores.
xi. Design, Build and Construction of Roads and Drainage System in Addu City, Republic of Maldives. of Ministry of National
Planning, Housing and Infrastructure, Male, Republic of Maldives of ` 535 crores.
xii. Construction of Viaduct, Ramp & Under Ground RCC Box (Cut & Cover, Box Pushing) including related works for 3.520
Km Length form Ch. 25891.527 to Ch. 29410.989 between existing Pier Cp-760 (Near City Centre-II) to merging point
with Metro Railway at Biman Bandar Station Yard including two stations (Rabindra Tirtha and Vip Road) with all allied
works(Architectural, Electrical, Mechanical, Heating, Ventilation, Air Condition, Fire Detection, Fire Suppression System and
Public Health Engineering Works) in New Garia-Airport Metro Corridor of Kolkata Metro Railway Line, West Bengal of Rail
Vikas Nigam Limited of ` 476 crores.
3. CREDIT RATING
During the year, ICRA has assigned us the long term rating of “A+ (with Negative Outlook)” and short term rating of “A1”.
4. DIVIDEND
The Company has declared an Interim dividend to the equity shareholders @ 35% (i.e. ` 3.5 per equity share of ` 10 each) on the
paid-up capital of ` 71,97,02,380 aggregating to total outflow of ` 25.19 crores (i.e. Interim dividend amount of ` 25.19 crores for
the financial year 2020-21 to the equity shareholders of the Company after deducting necessary TDS as per the provisions of the
Income-tax Act, 1961). Your Directors recommend the said Interim dividend on the equity shares as the final dividend for the financial
year 2020-21.
The Directors recommend, for approval of members, dividend of 0.01% on the Convertible Preference Shares of the Company.
5. SHARE CAPITAL
During the year under review, there was no change in the Company’s Share Capital and total paid-up share capital of the Company
as on 31st March, 2021 was ` 521.97 crore.
6. SUBSIDIARIES/ ASSOCIATE/ JOINT VENTURE
(a) During the year under review, your Company has incorporated a Private Limited company under the laws of India in the name
of Afcons Oil & Gas Services Private Ltd. (“AOGS”) for undertaking Oil and Gas Process Platform Projects in association with
PT.Gunanusa Utama Fabricators of Indonesia (“PTG”). The Company holds 74% of the equity share capital of AOGS with the
balance equity share capital held by PTG. By virtue of the above shareholding of the Company, AOGS shall be subsidiary of the
Company under the Companies Act, 2013.
(b) On 28.05.2021, the Company has subscribed 4,30,00,000 (Four Crore Thirty Lakh) equity shares of ` 10/- each of an aggregate
nominal value of ` 43,00,00,000/- (Rupees Forty-Three Crore only) of Shapoorji Pallonji Pandoh Takoli Highway Private Limited
(“SP Pandoh”) pursuant to the renunciation of the rights offer by the existing shareholder (i.e. Shapoorji Pallonji Roads Pvt. Ltd.)
in favour of the Company.
(c) Pursuant to provisions of section 129(3) of the Companies Act, 2013, (“Act”) and other applicable provisions, if any of the Act
read with Rule 5 of Companies (Accounts) Rules, 2014 a statement containing salient features of the financial statements of the
Company’s subsidiaries, associate company and joint venture in Form AOC-1 is attached to financial statement of the Company.
Pursuant to provision of section 136, copy of separate financial statement of subsidiaries will be made available upon request of
any Member of the Company who is interested in obtaining the same.
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(d) The consolidated financial statements presented by the Company include financial statement of the Subsidiaries prepared in
accordance with the applicable accounting standards.
(e) There are no material changes in the nature of business of the Company or any of its subsidiaries or associates.
7. CORPORATE GOVERNANCE
Your Company, being a value driven organization, believes in coherent and self-regulatory approach in the conduct of its business
to achieve the highest levels of good corporate governance practices. Therefore, the Company in the interest of the Stakeholders,
voluntarily complies with the requirements of Corporate Governance. A Report on Corporate Governance is attached separately
to this Annual Report. The details of Committees of the Board, their composition, terms of reference and details of such committee
meetings held are provided in Corporate Governance Report.
8. MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The Management Discussion and Analysis Report for the year under review, is presented in a separate section which forms part of
this Annual Report.
9. DIRECTORS AND KEY MANAGERIAL PERSONNEL OF THE COMPANY
(a) During the year under review there was no change in the composition of Board of Directors.
(b) Mr. Pallon S Mistry (DIN: 05229734) and Ms. Roshen M Nentin (DIN: 00004884), Directors of the Company are liable to retire by
rotation at the ensuing Annual General Meeting of the Company and being eligible offer themselves for re-appointment.
(c) Pursuant to the recommendation of the Nomination and Remuneration Committee and subject to Members approval at
the ensuing Annual General Meeting, the Board of Directors at its meeting held on 22nd October, 2020 have elevated
Mr.Giridhar Rajagopalan (DIN: 02391515) as the Deputy Managing Director of the Company for the remaining tenure of his
appointment i.e. up to 30th June 2022. All other terms of appointment and remuneration of Mr. Giridhar Rajagopalan remain
unchanged.
(d) Details of the above appointment and re-appointment are mentioned in the Notice of the Forty-Fifth Annual General Meeting.
10. POLICY ON DIRECTORS’ APPOINTMENT AND REMUNERATION
The Company’s policy on Directors’ appointment and remuneration and other matters provided in section 178(3) of the Act is posted
on the website of Companies at https://www.afcons.com/sites/default/files/2018-10/NRC%20Policy.pdf. Kindly refer to the heading
“Nomination and Remuneration Committee” in the Corporate Governance Report for matters relating to constitution, meetings,
functions of the Committee and salient features of the Policy.
11. STATEMENT ON EVALUATION OF PERFORMANCE OF DIRECTORS
Pursuant to the provisions of the Act, the Board has carried out the annual performance evaluation of its own performance, Board
Committees and that of Individual Directors of the Company. The performance evaluation of the Independent Directors was carried
out by the entire Board. The performance evaluation of the Chairman and the Non-Independent Directors was carried out by the
Independent Directors. The Directors expressed their satisfaction with the evaluation process.
12. DECLARATION FROM INDEPENDENT DIRECTORS
The Board has received declarations from the Independent Directors as per the requirement of section 149(7) of the Act, that there has
been no change in the circumstances which may affect their status as independent director during the year and the Board is satisfied
that the Independent Directors meet the criteria of independence as mentioned in section 149(6) of the Act.
13. MEETINGS OF BOARD
Six (6) meetings of the Board were held during the financial year. The details of the meetings of the Board, are given in the Corporate
Governance Report which forms part of this Annual Report. The intervening gap between the meetings was within the period prescribed
under the Act.
14. DIRECTORS’ RESPONSIBILITY STATEMENT
Pursuant to the requirement under section 134 of the Act, your Directors hereby state and confirm that:
i. in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation
relating to material departures;
ii. the Directors had selected such accounting policies and applied them consistently and made judgments and estimates that are
reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year
and of the profit of the Company for that period;
iii. the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the
provisions of the Act, for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;
iv. the Directors had prepared the annual accounts on a going concern basis; and
v. the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems
were adequate and operating effectively.
15. QUALITY, HEALTH, SAFETY & ENVIRONMENT
The Company firmly believes that the pursuit of excellence is one of the most critical components for a competitive success. With
Quality, Health, Safety & Environment being an essential part of the Company’s policy, it strives to deliver services by maintaining the
highest level of Quality, Health, Safety & Environmental Standards.
The policy of the Company is to conduct its construction business through an established Quality, Health, Safety & Environmental
(QHSE) Management System, which aims to achieve customer satisfaction and in the process a continual improvement of Company’s
competencies and competitiveness.
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The Company is certified for ISO 9001:2015 for Quality management System, ISO: 14001:2015 & ISO 45001:2018 for Occupational
Health Safety & Environment Management System. All the three systems are well established, documented, implemented and
maintained across the Company.
The Company has a commendable record in terms of safety at our various project sites and has received awards as well as appreciation
letters from our clients, domestic and international associations, some of which are detailed below:
i. British safety Council has issued International Safety Awards for several project sites of the Company.
ii. The Green Organisation has awarded International Green Apple Award for best Environmental practice on pollution & emission
reduction for EPC project in Ivory Cost.
iii. National Safety Council of India has awarded special Jurry Award (Ati Vishisht Suraksha Puraskar) for Chenab project in Jammu
Kashmir.
iv. National Safety Council (Maharashtra Chapter) has issued appreciation letter for excellence in HSE for Nagpur Metro Reach-2
project and Nagpur Mumbai Super Communication Expressway Pkg-14 project.
v. Indian Chamber of Commerce has issued Silver Award in the National Occupational Health & Safety award 2020 for Chhara
breakwater project.
vi. Indian Chamber of Commerce has declared Company as winner of the Innovation contest on prevention strategy for COVID 19
for Kolkata Metro Rail Project.
vii. Global Safety Summit has awarded Safety Award in Industrial construction sector for Pandoh Bypass to Takoli Section & Nagpur
Mumbai Super Communication Expressway Pkg-14 project.
viii. The Royal Society for the Prevention of Accidents has awarded Sliver Award and Confederation of Indian Industry has awarded
Best Health and Safety Practice Award for Katra Dharam Bridge Project.
ix. Confederation of Indian Industry (CII) has awarded Safety, Health & Environment Excellence Awards in Construction Sector for
Gopalpur Port Project.
These awards and appreciations letters from client Domestic and International Association are reflections of the strict HSE standards
followed at the work site and the commitment of AFCONS’ management towards Quality, Health, Safety & Environment.
16. AWARDS AND RECOGNITIONS
During the year, the Company has received several awards and recognitions, some of which are detailed below:
i. Most Innovative Knowledge Enterprise (MIKE) Award at Global, Asia and India levels in 2020 for its Knowledge Management
practices for the Third year in a row. This is a successor of the Most Admired Knowledge Enterprise (MAKE) Award, which
the Company won in 2016 and 2017 and MIKE 2018, 2019 and 2020 awards successively for five years becoming the only
infrastructure company in India to achieve this feat.
ii. Construction World Global Awards for the Second Fastest Growing Construction Company in the Large Category for the year
2020.
iii. National Highway Excellence Awards from Ministry of Road Transport and Highways for the below two projects:
• Atal Tunnel, Rohtang being adjudged Outstanding Project in Challenging Conditions.
• Mahatma Gandhi Setu, Patna for Excellence in Innovation.
iv. CIDC Vishwakarma Awards 2021 for the Best Construction Project for Atal Tunnel, Rohtang and Mahatma Gandhi Setu, Patna.
v. 10th Construction Week India Awards 2020 for Atal Tunnel, Rohtang Project as Roads & Highways Project of the Year.
vi. 14th ICC Environment Excellence Awards 2020 has conferred below awards:
• Special Jury Appreciation Letter (Large Enterprise Category) for Ahmedabad Metro Project.
• Runners-up trophy (Large Enterprise Category) for Kolkata Metro Project shared along with Mahatma Gandhi Setu Project,
Patna in the same category.
vii. 6th Atal Shastra Markenomy Awards 2020 conferred below awards:
• Best Infra award to Atal Tunnel, Rohtang
• Best Water Resources Infra award to Annaram Barrage at Kaleshwaram Irrigation project across Godavari river.
• Mr. S Paramasivan, Managing Director has been felicitated with Lifetime Achievement award in Infra Economy.
• Mr. Satish Paretkar, Director and Hydro & Underground BU Head, has been felicitated with Doyen of the Decade (for India
region) award under Hydro Power & Water Resources Construction category.
viii. World CSR Day Congress & Awards has conferred Three awards:
• Innovation in Irrigation Award to Annaram Barrage project at Kaleshwaram Irrigation project across Godavari river and
• Water Pipeline Project in Tanzania was named as Best Community Project of the Year in Water Sector.
• Mr. Satish Paretkar, Director, Business Unit Head – Hydro Underground & Water works, was named The Global Water
Champion at the World CSR Day Congress & Awards.
ix. 6th StratComm Asia Awards has chosen Afcons’ Covid-19 Awareness Campaign (#AfconsFightsCovid19) as the winner in the
Covid-19 Crisis Management Initiative of the Year category. This recognition comes at the Asia Pacific level. The Campaign has
also won the Bronze at the PR Awards India 2020 in the category Covid-19 Crisis Management Initiative of the Year.
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x. The Company has won the Best Crisis Management award in Corporate Communication category at India Public Relations and
Corporate Communications Awards 2020.
17. AUDITOR AND AUDITOR’S REPORT
(a) STATUTORY AUDITORS AND THEIR REPORT
HDS & Associates LLP, Chartered Accountants (ICAI Firm registration no.W100144) (“HDS”) was appointed as the Joint Statutory
Auditors of the Company at the Fortieth Annual General Meeting held on 29th September, 2016 for a period of five years till the
conclusion of the Forty-Fifth Annual General Meeting. As per the provisions of the section 139 of the Act read with Rules made
there under HDS term of five years expires at the conclusion of this Annual General Meeting, HDS has expressed its availability
for re-appointment for another term of five years. On the recommendation of the Audit Committee, the Board of Directors at its
meeting held on 30th June, 2021, has proposed the re-appointment of HDS, as the Joint Statutory Auditors from the conclusion
of this Annual General Meeting until the conclusion of Fiftieth Annual General Meeting to be held in the calendar year 2026.
Price Waterhouse Chartered Accountants LLP, Chartered Accountants (ICAI Firm Registration no. 012754N/N500016)
(“PWC”) was appointed as the Joint Statutory Auditors of the Company at the Forty-First Annual General Meeting held on
27th September, 2017 for a period of five years till the conclusion of the Forty-Sixth Annual General Meeting to be held in the
calendar year 2022.
PWC and HDS have provided their respective consents, certificates and declarations as required under Section 139 and 141 of
the Act and Companies (Audit and Auditors) Rules, 2014.
The Statutory Auditor’s Report on the Accounts of the Company for the financial year ended 31st March 2021 does not contain
any qualifications.
(b) SECRETARIAL AUDITORS AND THEIR REPORT
Pursuant to section 204 of the Act, and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
the Company has appointed M/s.Parikh Parekh & Associates, Company Secretaries in Practice to undertake the Secretarial
Audit of the Company for the financial year 2020-21. The report of the Secretarial Auditor is enclosed as Annexure I to this
Report. The Secretarial Audit Report does not contain any qualifications, reservations or adverse remarks.
The Company has complied with the Secretarial Standards as applicable to the Company pursuant to the provisions of the Act.
(c) COST AUDITOR
In terms of section 148 of the Act, read with Companies (Cost records and audits) Rules, 2014, as amended, your Company is
covered under the ambit of mandatory cost audit.
On the recommendation of the Audit Committee, the Board of Directors has re-appointed M/s. Kishore Bhatia & Associates,
Cost Accountant (Firm Registration no. 00294) as the Cost Auditors, to carry out the cost audit for the Company in relation to the
financial year from 1st April, 2021 to 31st March, 2022. The Company has received consent from M/s. Kishore Bhatia & Associates
for their re-appointment. The members consent is being sought at the ensuing Annual General Meeting for ratification of the
remuneration of the Cost Auditor for the financial year 2021-22.
18. INTERNAL FINANCIAL CONTROLS
The Company has in place adequate internal financial controls with reference to financial statements. During the year, such controls
were tested and no reportable material weakness in the design or operation were observed.
Your Company has adopted accounting policies which are in line with the Accounting Standards prescribed in the Companies
Accounting Standards) Rules, 2006 that continue to apply under section 133 and other applicable provisions, if any, of the Act, read
with Rule 7 of the Companies (Accounts) Rules, 2014 and relevant provisions of the Companies Act, 1956, to the extent applicable.
During the year under review, no fraud was reported by the auditors to the Board of Directors.
19. TRANSFER TO INVESTOR EDUCATION AND PROTECTION FUND (IEPF)
Pursuant to the provisions of section 124 of the Act, read with the Investor Education and Protection Fund Authority (Accounting,
Audit, Transfer and Refund) Rules, 2016 (“the Rules”) and other applicable provisions if any, the Company is required to transfer the
amount of unclaimed/unpaid dividend lying with the Company to Investor Education and Protection Fund (“IEPF”) established by the
Central Government. Also, the shares in respect of which dividend is unclaimed for 7 consecutive year, is required to be transferred to
IEPF Authority.
The Company has been regularly sending communications to Shareholders whose dividends are unclaimed, requesting them to
provide/update bank details with RTA/Company, so that the dividends paid by the Company are credited to their account on time. Also,
all efforts are been made by the Company in co-ordination with the Registrar to locate the shareholders who have not claimed their
dividend.
Despite several reminders to the shareholders vide registered post at their registered postal addresses and also through newspaper
advertisements calling upon the shareholders to claim their unclaimed dividends, there were 49 shareholders who didn’t claim
dividend aggregating to ` 34,360/- (Rupees Thirty-Four Thousand Three Hundred and Sixty only) for the financial year 2013-14
and which remained unclaimed for seven years as on 17th May 2021. Also, 8 shareholders holding in aggregate 4,700 equity shares
(constituting 0.007% of the total equity shareholders) didn’t claim dividend for seven consecutive years from the financial year
2013-14. Hence, the aforesaid unclaimed dividend of ` 34,360/- and 4700 equity shares have been transferred to IEPF Authority.
Subsequent to the transfer of unclaimed dividend and shares, all corporate benefits accruing on such shares including dividend on
such shares shall be credited to IEPF. The concerned equity shareholders can claim their aforesaid unclaimed dividend /shares along
with the dividend(s) by making an application to IEPF Authority in accordance with the procedure available on www.iepf.gov.in and on
submission of such documents as prescribed under the IEPF Rules.
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20. PARTICULARS OF CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND
OUTGO
(a) Conservation of energy
Whenever you save energy, you not only save money, you also reduce the demand for such fossil fuels as coal, oil and natural
gas. Less burning of fossil fuels also means lower emissions of gases such as CO2, CO, HFC etc., the primary contributor to
global warming and other pollutants.
i. The Company is continuing its effort to convert all sites from fossil power to grid power thereby minimizing the carbon foot
print. This has been implemented at sites wherever feasible. The total conversion of fossil power of 71.72 MVA by Grid power
of 40.08 MVA is likely to reduce GHG (Green House Gas) emission by 32148 tonnes.
ii. The steps taken by the Company for utilizing alternate sources of energy - NIL
iii. The capital investment on energy conservation equipment - NIL
(b) Technology absorption
1. KWH meter become mandatory in all new and old panels installed at site to monitor energy consumption parameter, this is
an ongoing process.
i. Automatic power factor correction panels installed at all sites where grid power is available used for maximum utilization
of Energy.
ii. At project sites and corporate office, we have started implementing LED light fixtures for Area lighting & office area
instead of Fluorescent Light fixtures.
2. Imported technology (imported during the last three years reckoned from the beginning of the financial year) – NIL
(c) FOREIGN EXCHANGE EARNING AND OUTGO (Standalone) (` in crores)
Current year Previous year

Earnings 3,609.00 3,805.21
Outgo 3,064.43 3,064.95
21. PARTICULARS OF LOANS GUARANTEES OR INVESTMENTS
The Company is exempt from the provisions of Section 186 of the Act, except sub-section (1) thereof, pertaining to loans, guarantees
and securities as the Company is engaged in the business of providing infrastructure facilities. In view of non-applicability of section
186 of the Act, the details required to be made thereunder in the financial statements are not applicable in relation to loan made,
guarantee given or security provided. The investments covered under the provisions of section 186 of the Act, are disclosed in the
financial statements.
22. RELATED PARTY TRANSACTIONS
All related party transactions that were entered during the financial year 2020-21 were on an arm’s length basis and were in the
ordinary course of business. All related party transactions are placed before the Audit Committee for approval.
In terms of section 134(3)(h) read with section 188(2) of the Act, there are no material related party transactions entered by your
Company during the year, that individually or taken together with previous transactions during a financial year, exceed the prescribed
limits under Rule 15(3) of Companies (Meeting of Board and its Powers) Rules, 2014, as amended. Accordingly, there being no
information to be disclosed in AOC-2 format, the same is not enclosed. The disclosure of related party transactions is made in the
financial statements of the Company.
23. EXTRACT OF THE ANNUAL RETURN
The Annual Return of the Company as on 31st March 2021 in Form MGT - 7 in accordance with section 92(3) of the Act
read with the Companies (Management and Administration) Rules, 2014, is available on the website of the Company at
https://www.afcons.com/sites/default/files/2021-08/Form_MGT_7%20for%20FY%202020-21.pdf
24. VIGIL MECHANISM POLICY
In accordance with section 177(9) of the Act, read with rule 7 of the Companies (Meeting of Board and its Powers) Rules, 2014,
the Company has established a Vigil Mechanism Policy to provide a framework for responsible whistle blowing and for adequate
safeguards against victimization of persons who use such mechanism. The said vigil mechanism policy is available on the website of
the Company at https://www.afcons.com/sites/default/files/2021-09/Vigil-Mechanism-Policy%20new.pdf
25. RISK MANAGEMENT
The Company has in place a Risk Management Committee to promote a pro-active approach in reporting, evaluating and resolving
risks associated with the business and to ensure sustainable business growth with stability. The Company has formulated and
implemented a Risk Management Policy. There is no risk identified which in the opinion of the Board may threaten the existence of the
Company.
26. CORPORATE SOCIAL RESPONSIBILITY
The Company is committed to conduct business in an economically, socially and environmentally sustainable manner that is
transparent and ethical. The Company has framed Corporate Social Responsibility (CSR) Policy. A brief outline of the CSR Policy of
the Company and the initiatives undertaken by the Company on CSR activities during the financial year is enclosed as Annexure II to
this Report in the format prescribed in the Companies (Corporate Social Responsibility Policy) Rules, 2014. The policy is available on
the website of the Company at https://www.afcons.com/sites/default/files/2021-06/CSR%20Policy%2028.05.2021.pdf
7
27. DISCLOSURES UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND
REDRESSAL) ACT, 2013
In compliance with the provision of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013,
the Company has in place policy for protection of the rights of Women at Workplace. An Internal Complaints committee has also been
set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are
covered under this policy.
The Company periodically conducts sessions for employees across the organization to build awareness about the Policy and the
provisions of Prevention of Sexual Harassment Act. During the year under review, no complaints pertaining to sexual harassment were
received by the Company.
28. OTHER DISCLOSURES/REPORTING
a) No disclosure or reporting is required in respect of the following items as there were no transactions on these items during the
year under review:
• Issue of equity shares with differential rights as to dividend, voting or otherwise.
• Buyback of shares.
• Scheme of provision of money for the purchase of Company’s own shares by employees or by trustees for the benefit of
employees.
• Employee Stock Options Scheme.
• Invitation or Acceptance of fixed Deposit from public or shareholders.
• Issue of shares (including sweat equity shares) to employees of the Company under any scheme.
• Neither the Managing Director nor the Whole-Time Directors of the Company receive any remuneration or commission from
any of its subsidiaries.
b) There are no significant and material orders passed by the regulator or courts or tribunal impacting the going concern and its
operation in future.
c) There is no material change or commitments after closure of the financial year till the date of the report.
29. ACKNOWLEDGEMENT
Your Directors would like to acknowledge with gratitude the continued support and co-operation received by the Company from its
Clients, Bankers, Financial Institutions, Government authorities, Employees and its valued Investors.
FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
K. Subramanian S. Paramasivan
Place: Mumbai Executive Vice Chairman Managing Director
Date: 1st July, 2021 Din: 00047592 Din: 00058445
8
Annexure I to Boards’ Report
FORM No. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31st MARCH, 2021
[Pursuant to section 204 (1) of the Companies Act, 2013 and Rule No. 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
To,
The Members,
Afcons Infrastructure Limited
We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices
by Afcons Infrastructure Limited (hereinafter called “the Company”). Secretarial Audit was conducted in a manner that provided us a
reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.
Based on our verification of the Company’s books, papers, minute books, forms and returns filed and other records maintained by the
Company, the information to the extent provided by the Company, its officers, agents and authorised representatives during the conduct
of secretarial audit, the explanations and clarifications given to us and the representations made by the Management and considering the
relaxations granted by The Ministry of Corporate Affairs warranted due to the spread of the COVID-19 pandemic, we hereby report that in
our opinion, the Company has during the audit period covering the financial year ended on 31st March, 2021, generally complied with the
statutory provisions listed hereunder and also that the Company has proper Board processes and compliance mechanism in place to the
extent, in the manner and subject to the reporting made hereinafter:
We have examined the books, papers, minute books, forms and returns filed and other records made available to us and maintained by the
Company for the financial year ended on 31st March, 2021 according to the applicable provisions of:
(i) The Companies Act, 2013 (the Act) and the rules made thereunder;
(ii) The Securities Contract (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment,
Overseas Direct Investment and External Commercial Borrowings;
(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’):
(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011; (Not applicable
to the Company during the audit period)
(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015; (Not applicable to the Company
during the audit period)
(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 and amendments
from time to time; (Not applicable to the Company during the audit period)
(d) The Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014; (Not applicable to the
Company during the audit period)
(e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008; (Not applicable to the
Company during the audit period)
(f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the
Companies Act and dealing with client; (Not applicable to the Company during the audit period)
(g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; (Not applicable to the Company
during the audit period) and
(h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018; (Not applicable to the Company during
the audit period)
(vi) Other laws applicable specifically to the Company namely:-
1. Contract Labour (Regulation and Abolition) Act, 1970
2. The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996
3. Contract Labour (Regulation and Abolition) central rule, 1971
We have also examined compliance with the applicable clause of the following:
Secretarial Standards issued by The Institute of Company Secretaries of India with respect to board and general meetings which have been
generally complied by the Company.
During the period under review, the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, standards etc.
mentioned above except that the appointment of Dy. Managing Director and payment of remuneration to him is subject to approval of
shareholders.
9
We further report that:
The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and
Independent Directors. The changes in the composition of the Board of Directors that took place during the period under review were
carried out in compliance with the provisions of the Act.
Notice was given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven days
in advance for meetings other than those held at shorter notice, and a system exists for seeking and obtaining further information and
clarifications on the agenda items before the meeting and for meaningful participation at the meeting.
Decisions at the Board Meetings were taken unanimously.
We further report that there are systems and processes in the Company commensurate with the size and operations of the Company to
monitor and ensure compliance with applicable laws, rules, regulations and guidelines etc.
We further report that during the audit period the following events occurred which had bearing on the Company’s affairs in pursuance of the
above referred laws, rules, regulations, guidelines, standards etc:
The Company has made partial redemption of the following Non-Convertible Debentures (“NCD”)
i. Prepaid ` 10 Crore pertaining to 8.60% Unsecured Redeemable Unlisted NCD of ` 10,00,000/- each
ii. Prepaid ` 15 Crore pertaining to 8.65%, NCD of ` 10,00,000/- each.
For Parikh Parekh & Associates
Company Secretaries
Sd/-
Mohammad Pillikandlu
Partner
Place: Mumbai FCS No: 10619 CP No: 14603
Date : June 30, 2021 UDIN: F010619C000549993
This Report is to be read with our letter of even date which is annexed as Annexure A and Forms an integral part of this report.
‘Annexure A’
To,
The Members
Our report of even date is to be read along with this letter.
1. Maintenance of secretarial record is the responsibility of the management of the Company. Our responsibility is to express an opinion
on these secretarial records based on our audit.
2. We have followed the audit practices and process as were appropriate to obtain reasonable assurance about the correctness of the
contents of the secretarial records. The verification was done on test basis to ensure that correct facts are reflected in secretarial
records. We believe that the process and practices, we followed provide a reasonable basis for our opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
4. Where ever required, we have obtained the Management Representation about the Compliance of laws, rules and regulations and
happening of events etc.
5. The Compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of
management. Our examination was limited to the verification of procedure on test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with
which the management has conducted the affairs of the Company.
For Parikh Parekh & Associates
Company Secretaries
Sd/-
Mohammad Pillikandlu
Partner
Place: Mumbai FCS No: 10619 CP No: 14603
Date : June 30, 2021 UDIN:F010619C000549993
10
Annexure II to Boards’ Report
ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES
1. Brief outline on CSR Policy of the Company: A brief outline of the Company’s CSR policy, including overview of projects or
programmes proposed to be undertaken and a reference to the web-link to the CSR policy and projects or Programmes.
Afcons’ CSR Policy aims at implementing its CSR activities in accordance with section 135 of the Companies Act, 2013 and the Rules
thereunder. The CSR Committee shall periodically review the implementation of the CSR. CSR Policy is available on the website of the
Company www.afcons.com/ at the web link: https://www.afcons.com/sites/default/files/2021-06/CSR%20Policy%2028.05.2021.pdf
2. The Composition of the CSR Committee :
Name of the Director Category Position No. of Meetings
Held Attended
Mr.K.Subramanian Executive Vice Chairman Chairman 1 1
Mr.P.N.Kapadia Independent Director Member 1 1
Mr. Umesh Khanna Non-Executive Director Member 1 1
3. Web links where composition of CSR committee, CSR Policy and CSR projects approved by the board are disclosed on the
website of the company:
• The composition of the CSR committee is available on our website, at https://www.afcons.com/en/investors.
• The Committee, with the approval of the Board, has adopted the CSR Policy as required under section
135 of the Companies Act, 2013. The CSR Policy of the Company is available on our website, at
https://www.afcons.com/sites/default/files/2021-06/CSR%20Policy%2028.05.2021.pdf
4. Details of impact assessment of CSR projects carried out in pursuance of sub-rule (3) of Rule 8 of the Companies (Corporate
Social Responsibility Policy) Rules, 2014, if applicable: Not Applicable
5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate Social
responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any: Not Applicable
Sr. No. Financial Year Amount available for set-off from preceding financial Amount required to be setoff for the
years (in `) financial year, if any (in `)
Not Applicable
6. Average net profit of the Company as per Section 135(5) for last three financial years: Nil
7. a. Two percent of average net profit of the Company as per Section 135(5): Nil
b. Surplus arising out of the CSR projects or programs or activities of the previous financial years: Nil
c. Amount required to be set-off for the financial year, if any: Nil
d. Total CSR obligation for the financial year (7a+7b-7c): Nil
8. (a) CSR amount spent or unspent for the financial year: Not Applicable
Total Amount Amount Unspent (` in crore)

Spent for the Total Amount transferred to Unspent CSR Amount transferred to any fund specified under
Financial Year Account as per Section 135(6) Schedule VII as per second proviso to Section 135(5)
(` in crore) Amount Date of transfer Name of the Fund Amount Date of transfer
Not Applicable
(b) Details of CSR amount spent against ongoing projects for the financial year: Not Applicable
Sr. Name of Item from Local Location of the Project Amount Amount Mode of Mode of
No. the the list of area project duration spent transferred to Imple- Implementation
Project activities (Yes/ in the Unspent CSR menta- – Through
in No) current Account for tion - Di- Implementing
Schedule State District financial the project as rect Agency
VII to the Year per Section (Yes/No)
Act (in `) 135(6) Name CSR
(in `) Registration
number
Not Applicable
11
(c) Details of CSR amount spent against other than ongoing projects for the financial year:
Sr. Name of Item from Local Location of the Project Amount Amount Mode Mode of Implementation
No. the the list of area project duration spent transferred of – Through Implementing
Project activities (Yes/ in the to Unspent Imple- Agency
in No) current CSR menta-
Schedule State District financial Account tion -
VII to the Year for the Direct
Act (in `)# project as (Yes/ Name CSR
per Section No) Registration
135(6) number
(in `)
1. Prime (viii) No Pan- Pan- NA 30,53,089 -- No Prime NA
Minister India India Minister
CARES CARES
Fund Fund
2. Eradicating (i) Yes Maha- Mumbai NA 4,00,000 -- No Shree Hari- --
hunger, rashtra haraputra
poverty and Bhajan
malnutrition Samaj
3. Promoting (i) No New -- NA 1,00,00,000 -- No Sri Kanchi --
healthcare Delhi Kamakoti
including Peetam
preventive Cultural
health
care for
Covid by
providing
medical
assistance
Total 1,34,53,089
#Rounded off ` 1,34,53,000

(d) Amount spent in administrative overheads: Nil
(e) Amount spent on impact assessment, if applicable: Not applicable
(f ) Total amount spent for the financial year (8b+8c+8d+8e): ` 1,34,53,000
(g) Details of excess amount for set-off are as follows:
Sr. No. Particular Amount

1 Two percent of average net profit of the Company as per Section 135(5) Nil
2. Total amount spent for the Financial Year ` 1,34,53,000
3. Excess amount spent for the financial year [(ii)-(i)] ` 1,34,53,000
4. Surplus arising out of the CSR projects or programmes or activities of the previous financial Nil
years, if any
5. Amount available for set off in succeeding financial years [(iii)-(iv)] ` 1,34,53,000
9. (a) Details of Unspent CSR amount for the preceding three financial years:
Sr. Preceding Amount Amount spent in Amount transferred to any fund Amount
No. Financial Year transferred to the specified under Schedule VII as per remaining to
Unspent CSR reporting Financial Section 135(6), if any be spent in
Account under Year Name of the Amount Date of Succeeding
Section 135 (6) Fund transfer financial years
1 2018-19 Nil ` 24,00,000/- was Not Nil - Nil
spend in 2019-20 Applicable
(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s): Not applicable.
12
10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through CSR
spent in the financial year (asset-wise details)
(a) Date of creation or acquisition of the capital asset(s) : None
(b) Amount of CSR spent for creation or acquisition of capital asset : NIL
(c) Details of the entity or public authority or beneficiary under whose name such capital asset is registered, their
address etc. : Not Applicable
(d) Provide details of the capital asset(s) created or acquired (including complete address and location of the
capital asset) : Not Applicable
11. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per
Section 135(5) : Not Applicable
Sd/-
K. Subramanian
Din: 00047592
Executive Vice Chairman &
Chairman of the CSR Committee
13
MANAGEMENT DISCUSSION AND ANALYSIS
GLOBAL ECONOMY: OVERVIEW
With more than a year of Covid-19 pandemic, there is still widespread uncertainty about the way forward of the pandemic. Countries relying
on tourism and commodity exports have been hit strongly due to onset of pandemic. Last year was ravaged by output and employment
losses unprecedented in the world, with no country being spared. Around 95 million people are estimated to have fallen below the threshold
of extreme poverty in 2020. Covid-19 pandemic continues to deal heavy toll to human lives. Around 40 lakh lives have been lost due to
pandemic. Pressure on health infrastructure, elevated levels of unemployment, decline in economic activities have caused extreme social
strain. However, due to widespread vaccination across the world, instances and severity of infections is expected to reduce further paving
the road of recovery. The world economy is witnessing an exceptionally strong but highly uneven recovery. 2021 has started with both
hope and fear – on one hand vaccination, although with varying pace, has started at many countries while on the other hand new waves of
infections, resilient and fast spreading mutants forcing authorities to enforce stringent local lockdowns.
IMF projects a strong recovery of global economy in 2021 and 2022. Most economies across the world were impacted in varying degrees
due to pandemic thereby contracting the world economy by an estimated 3.3% in 2020. However, with the beginning of vaccination across
countries, global economy is bound to be back on the path of growth. Global economy is projected to grow by a record 6% in 2021 and by
4.4% in 2022. Due to the unprecedented policy support by various governments, recession caused by Covid-19 is expected to have lower
impact compared to 2008 financial crisis. Government and Central banks across the world had taken several measures to stimulate the
economy through various measures like additional fiscal spending, foregone revenues, capital and debt injections with total lending support
adding up to $16 trillion, ~ 15% of world GDP.
Projected recovery varies across countries, primarily based on severity of health crisis, extent of disruptions in local economy, scale of local
lockdowns, and effectiveness of policy support to limit continual damage. In advanced economies such as US, Europe, rebound is expected
to accelerate in 2nd half of 2021 as broader set of nations pursue widespread vaccination and gradually reopen with growth forecasted to
5.1% in 2021 and then moderate to 3.6% in 2022. On the other hand, emerging markets is forecasted to grow by 6.7% in 2021 and 5% in
2022 as the effects of pandemic wane. Emerging Markets and Developing Countries are projected to face a bigger brunt than advanced
economies and suffer considerable medium-term losses.
INDIAN ECONOMY: OVERVIEW

Indian economy contracted by 7.3% in FY 2020 – 21 according to National Statistical Office, Ministry of Statistics and Programme
Implementation – Government of India. This is the first contraction experienced by India since 1980-81 and the most severe contraction
ever since GDP growth data is recorded. First half H1 FY 2020 – 21 witnessed severe contraction of ~ 16% due to severe Covid induced
lockdowns implemented to curb spread of pandemic. With the easing of restriction in 2nd half of last fiscal year, economy started to show
signs of recovery and has grown in last two quarters of last fiscal.
Central and state governments took several policy decisions to support various sectors of economy in the pandemic. The Aatma Nirbhar
Bharat Package provided support amounting to ~ 15.7% of GDP including liquidity measures taken by RBI. Policy support and measures
provided by central and state governments enabled for a quick turnaround from an unprecedented contraction in Q1 FY 2020-21 to growth
in Q3 FY 2020 – 21.
India is expected to grow by 9.5% in FY 2021 – 22 as per RBI projections. Duration of second wave of infections along with its impact, and
possibilities of subsequent outbreaks forcing authorities to put in stringent local lockdowns remains the biggest risks to the growth outlook
for current financial year.
UNION BUDGET FY 2021 – 22
The Union Budget for FY 2021 – 22 was the first budget in the recent history which has given significant importance to infrastructure
development. Budget highlighted significance of infrastructure development for reviving Indian economy which is battling from Covid-19
jolt. Central government with an eye on economic revival announced several measures to ramp up infrastructure spending. Some of the
highlights from the budget include – Setting up of Development Financial Institution, Formulation of Bad Bank, Asset Monetization plans,
Enhanced outlay towards capital expenditure. It will be interesting to watch out how all these measures are implemented on the ground
level.
14
Union budget FY 2021 – 22 proposed a sharp increase in capital expenditure to ` 5.54 Lakh crores (~ 35% more than last year).
FY22 proposed capex is ~ 2.5% of GDP, highest in last 17 years. On top of this, ` 2 Lakh crores is allocated to states and autonomous
bodies for capital expenditure. This focus on enhanced spending on capital expenditures shows government’s intent in investing in raising
the overall productive capacity of the economy and guiding India towards a sustainable growth.
Funding gap in infrastructure projects in India is a key concern and is a prominent challenge in fulfilling targets of National Infrastructure
Pipeline (NIP). Government has rightly acknowledged this issue and took several steps to bridge financing gap in infrastructure development.
Setting up of a new, professionally managed Development Financial Institution (DFI) is a right step in this direction. DFI is expected to act
as a provider, enabler and catalyst for infrastructure financing. DFI, with initial paid-up capital of ` 20,000 crores and a target of lending to
` 5 Lakh crores of infra projects over next three years, will play a key role in providing long term debt financing for infrastructure projects
under NIP. Budget has proposed Asset Monetization measures to raise resources for investments in new infrastructure projects. A ‘National
Monetization Pipeline’ of potential brownfield infrastructure assets is proposed to be launched. An Asset Monetization dashboard will also
be created for tracking the progress and to provide visibility to investors. Few InvITs are already in pipeline like ` 5,000 crores NHAI InvIT,
` 7,000 crores PGCIL InvIT. Government also plans to monetize Dedicated Freight Corridors (DFCC) for operation and maintenance,
airports in Tier 2 and Tier 3 cities, Oil & Gas pipelines of GAIL, IOCL, HOCL, warehousing assets. To augment foreign funds in infrastructure
projects, budget relaxed conditions for 100% tax exemption on interest income received from Indian infrastructure projects on investments
made by foreign Sovereign Wealth Funds and Pension Funds. Notified Infrastructure Debt funds have been allowed to raise funds through
issuance of Zero-Coupon Bonds, which will further act as alternative financing schemes for infrastructure projects.
Budget FY 2021 – 22 has proposed for setting up of an Asset Reconstruction Company Limited and Asset Management Company. These
entities would help banks to clean up their balance sheets by taking over stressed assets from banks. Construction sector is one of the
top segments within industries which has significant share of NPA and stressed accounts (as per RBI). NPAs and distressed infrastructure
assets could be transferred off from the banks to the Asset Reconstruction Company.
National Infrastructure Pipeline (FY 2020 – FY 2025)
Government of India launched the National Infrastructure Pipeline in Aug 2020 mapping all infrastructure opportunities, both greenfield and
brownfield, expected to be developed over FY 2020 – FY 2025. NIP was launched with 6835 projects and currently the project pipeline is
expanded to around 8,000 projects. Around 217 projects worth ` 1.1 Lakh crores projects under NIP is completed.
15
INDIAN CONSTRUCTION INDUSTRY: STRUCTURE AND DEVELOPMENT
Construction industry in India contributes a significant ~ 7% to overall GDP and is one of biggest employer in the country. As per Fitch
Solutions, Indian construction industry contracted by estimated 3% last year on account of lockdowns imposed across the country due
to Covid-19 pandemic. For most part of 2020, many construction companies in India were facing labour shortages challenge and severe
supply chain disruptions. However, after a year of contraction, construction sector is forecasted to recover and grow by 7.8% in 2021. In the
long term, construction industry is expected to grow by an average of 6+% per year from 2021 to 2030 as per Fitch Solutions.
SURFACE TRANSPORT
Roads
Despite Covid-19 induced lockdowns, highways witnessed record construction. Around 13,298 km of highways were constructed in last
fiscal, ~ 36.4 km of highways constructed every day.
Roads and Highways has seen consistent increase in budget allocation over last several years. Union budget FY 2021 – 22 has allocated
Ministry of Road Transport and Highways (MoRTH) a record amount of ` 1.18 lakh crores. Government has planned several economic
corridors like Madurai-Kollam corridor, Mumbai-Kanyakumari corridor, Delhi-Dehradun economic corridor.
National Highways Authority of India (NHAI) is planning to award highway projects worth ~ ` 2.25 Lakh crores of a total length of
approximately 5,000 km in FY 2021 – 22. In current fiscal year, HAM is expected to be favourable mode of project award, followed by EPC.
Railways
Budget FY 2021 – 22 has allocated an enhanced outlay of ` 1.07 Lakh crores for Railway capex. New dedicated rail freight corridors like
East Coast corridor, East-West Corridor and North-South corridor will further open opportunities for construction companies in Railway
sector. 100% electrification of broad-gauge routes is expected to be completed by 2023.
For preparing a future ready railway system by 2030, Indian Railways has prepared a National Rail Plan for India 2030. Objective of this
plan is to create capacity ahead of demand, so much as to even cater the demand up to 2050 and increase Railways share in freight
traffic to 45%. As part of National Rail plan, Vision 2024 has been launched for accelerated implementation of certain critical projects by
2024 such as 100% electrification, multi-racking of congested routes, upgradation of speed on certain key rail routes like Delhi – Mumbai,
Delhi – Howrah, Golden Quadrilateral – Golden Diagonal (GQ/GD) and elimination of all level crossings on all GQ/GD routes.
URBAN INFRASTRUCTURE
Central and state governments have made metro rail system as an important measure to decongest urban centres. Around 700 km of
metro rail is operational and additional ~ 1,000 km of metro and rapid rail is under construction in 27 cities in India. Central government
has announced two new technologies – MetroLite and MetroNeo. These newer technologies will be deployed at Tier-2 cities and peripheral
areas of Tier-1 cities and will provide same experience as traditional metro rail systems but at lower costs.
16
Union budget FY 2021 – 22 has provided funding for Kochi Metro Railway Phase-II, Chennai Metro Railway Phase-II, Bengaluru Metro
Railway Project Phase 2A and 2B, Nagpur Metro Rail Project Phase-II and Nashik Metro.
MARINE & INDUSTRIAL
Ports are integral to India’s trade and commerce with maritime transport handling around 70% of total India’s trading volumes. Government
of India passed Major Port Authorities Bill, 2020 which aims at reorienting governance model in central ports to landlord port model, which
is in line with successful global practice. This bill will empower major ports to perform with greater efficiency on account of full autonomy in
decision making and modernizing institutional framework of major ports.
Sagarmala initiative undertaken by Central government is focused on ports development/ modernisation including ports mechanisation,
draft enhancement, and new terminal development. Promoting environment friendly Inland waterways and developing it is as a preferred
mode of freight transport is also on the agenda.
HYDRO & UNDERGROUND
Hydro power is emerging as a renewable power source for India as an effective alternative to diversify energy mix. As per International
Energy Association (IEA), between 2021 and 2025, Asia will account for 43% of new hydropower capacities in the world and India will be
a key contributor in Asia. India has recently overtaken Japan as the world 5th largest hydropower producer with installed capacity at over
50 GW.
Government has launched Jal Jeevan Mission with an objective to provide functional tap water and safe drinking water to every household
in rural India by 2024. Various projects under this scheme includes providing water supply infrastructure for tap water connection to
every household and reliable water source development/ augmentation of existing sources in villages. According to National Infrastructure
Pipeline (NIP), capital expenditure of ~ ` 3.6 Lakh crores is estimated to be incurred over FY 2020 – FY 2025 on supplying safe drinking
water to every rural household under Jal Jeevan Mission (Rural) initiative of central government.
OIL & GAS
India has taken a target to reduce import dependency on oil by 10% by 2022. Government has proposed a detailed action plan to boost
oil and gas production of state-run Oil and Natural Gas Corporation (ONGC). This includes hiving off non-core businesses into separate
companies, monetising existing infrastructure, decentralisation of decision-making on operational matters and partnerships with private
energy majors. Capacity additions in both brownfield and greenfield refineries are expected to almost double India’s existing oil refining
capacity over ten years.
GLOBAL CONSTRCUTION INDUSTRY
Global construction sector after contracting by estimated 2.5% in 2020, is projected to grow by 4.1% in 2021 – fastest growth seen in over
20 years. Global construction industry is expected to continue to benefit from vaccine rollout and various measures taken by governments
across the world to stimulate economy and support provided to the sector.
Transport infrastructure is expected to be a key focus of infrastructure development in Sub-Saharan Africa. Across the countries,
governments are planning to overcome a significant gap in transport infrastructure access and quality of infrastructure assets. Roads,
Railways, and ports will be primary focus of investment. Many countries in Sub-Saharan Africa have considerable water infrastructure
needs and water stress as there are limited sources of freshwater. Sourcing freshwater for drinking purpose of general public and for
industrial use remains a key challenge for many countries. Several landlocked countries like Zimbabwe, Botswana relies on building long
distance water pipelines to provide safe water for public purpose and industrial use. Countries that have coast are focused on building
desalination plants to satisfy their water needs.
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BUSINESS OVERVIEW
Afcons bagged new projects worth ` 7,800 crores in FY 2020–21. In addition to this, there are ` 3,360 crores of L1 orders. Pending order
book position of company as on 31st March 2021 stands at ` 29,608 crores (including above L1 orders of ` 3,360 crores).
Competitive intensity continued to rise in domestic market. Number of companies participating in tenders increased and several tenders
witnessed intense underbidding compared to client estimates. While this may pose challenges on profitability of the Company in future,
today it poses a challenge for bagging the job at the right price. Afcons is recognized as a credible construction company in international
markets. Afcons is ranked 7th largest international marine and port facilities contractor and 13th largest Bridge contractor in the world as per
ENR’s (Engineering News-Record, USA) 2020 Top International Contractors Rankings. Existing pending order book provides Afcons with a
revenue visibility for next 3 years. Afcons projects are well spread across countries – India, Africa, Middle East, South Asia. Even in India,
projects are located across different states. Afcons businesses are managed across business units and sub-segments, the projects are
diversified and there is no dependence on one geography or a single business unit.
At the core of its strategy, the Company aims to become a Knowledge Enterprise. On its journey towards becoming a Knowledge Enterprise,
Afcons has made substantial progress. Afcons won the MIKE (Most Innovative Knowledge Enterprise) award for three levels – Global, Asia
and India in 2020 as well. This is the fifth successive year when Afcons has won this prestigious award at all three levels – MAKE award
(Most Admired Knowledge Enterprise, now discontinued and followed by MIKE award) in 2016 & 2017 and MIKE award in 2018, 2019 &
2020.
RISK AND CONCERNS
A. Global Events
• Uncertainly surrounding the duration and impact of Covid-19 pandemic. Subsequent waves of infections and outbreaks
necessitating local lockdowns can hamper operations.
• Diversion of funds from infrastructure projects towards prioritized segment like social infrastructure, health infrastructure.
• Substantial rise in key raw material prices.
• Preference towards localization and favoring local companies can result in discouraging award of new projects to foreign
companies.
• Disruption of global supply chain.
• Implementation of protectionist policies and waning of globalization can impact international trade and raise artificial barriers.
• Lockdowns and ban on air transport, nationals from certain countries can pose challenges in manpower mobilization and talent
crunch.
B. Domestic Events
• Subsequent waves of covid-19 and lockdown measures can significantly derail economic recovery.
• Future events of virus outbreaks can lead to lockdown and stoppage of operations.
• Continued aversion by banks and financial institutions for lending towards EPC companies.
• Non-release of blocked up funds with government clients on account of arbitration.
• Substantial hike in the rise of several key raw material like steel, cement can impact bottom line as complete escalations are not
covered.
• Prioritizing of health infrastructure and social infrastructure to fight pandemic could result in diversion of funds allocated towards
infrastructure sector, especially at state level.
• Disruption of supply chain and logistical challenges.
• Shortage of skilled and semi-skilled labour at construction sites due to large scale labour migration. In the short to medium terms
margins can fall with rise in labour costs.
OUTLOOK
Covid-19 pandemic continues to pose severe challenges to all businesses and fresh waves of infections is a major risk in current fiscal. With
the increased scope and wider access of vaccination across all states in India and other countries, there is healthy optimism and operations
are expected to gradually return to normalcy. Government has undertaken strong measures to focus on infrastructure development to
revive economy and construction sector is expected to play major role in boosting economy.
In the current year, Afcons will work with utmost priority to chart growth plan and maintain focus on operations to deliver projects ahead of
schedule or on time. Afcons would continue its strategy to expand in overseas markets and would further strive to increase international
operations. The Company would continue its journey on becoming a Knowledge enterprise.
The Company is confident to weather the storm of Covid-19 and post decent results even in such challenging times.
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INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACIES
The Company is maintaining an effective system of internal control for facilitating accurate, reliable and speedy compilation of financial
information, safeguarding the assets and interests of the Company and ensuring compliance with all laws and regulations. The internal
control system is managed through continuous internal audit by external professionals who conduct audits of Project sites of the Company
throughout the year to test the adequacy of the internal systems and suggest continual improvements. All significant audit observations
and follow up actions are reported to the Audit Committee along with Internal Audit reports and managements responses/replies thereon.
The operational control exists through well laid out system of checks and balances and hierarchy of reporting from site level to central
management groups to the senior management and the Directors.
HUMAN RESOURCES DEVELOPMENT
The Company continues to excel in the field of Human Capital management with unique practices in the Infrastructure Industry. The
Company strives to achieve the highest levels of employee engagement with multiple focussed initiatives towards effective training and
development of employees at various levels. The healthy status of the Company’s human capital is evident from the trend analysis of
achievement, higher productivity with stable employee numbers and low attrition rate vis-a-vis industry competitors.
Our HR policy derives its mission statement from the Company and focuses on:
• Transnational Presence: The Afcons family presently comprises employees from 20+ nationalities at our projects in more than 13
countries. We believe in equal opportunity and gender equality. We strive to be an equal opportunity employer and at present, your
Company employs more than 110 local women in overseas projects which is a rarity in the infrastructure industry.
• Innovation: We are fully equipped for the next level of Human Capital requirement with the digitisation of all processes in an employee
lifecycle, starting from recruitment to separation.
• Value Creation: We strive to align employees with the strategy & goals of the organization. With unique employee engagement
initiative, employees are enlightened about the strategic direction of the organization and aligned with the organization’s DNA.
• Stakeholders: Afcons and Afconians proactively and selflessly participate in community engagement activities. Many initiatives have
been taken to boost employee morale & engagement like monthly project magazine – Anubandh and Wall-Of-Unity at all projects.
We boast of a healthy organic follower base (more than 2,00,000) on social media platforms like LinkedIn and YouTube due to a
meaningful and enriching experience.
Our efforts towards Human Capital management have been widely appreciated in the infrastructure industry, which is evident from various
awards, recognitions conferred on the Company. We continue to aspire to provide employees a professional, congenial, and safe work
environment with opportunities for personal growth and development. We aspire to innovate and become a strong and positive influence
offering a wholesome experience to everyone in the Afcons family.
CAUTIONARY STATEMENT
The statement in Management Discussions and Analysis describing the Company’s operations and expectations are “forward looking
statements”. Actual results may differ owing to environmental dynamics.
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REPORT ON CORPORATE GOVERNANCE
I. CORPORATE GOVERNANCE PHILOSOPHY
The Corporate Governance philosophy stems from our belief that corporate governance is a key element in improving efficiency and
growth. The Company is committed to sound corporate practices based on conscience, openness, fairness, professionalism and
accountability in building confidence of its various stakeholders in it thereby paving the way for its long term success.
II. BOARD OF DIRECTORS
a. Composition
As on 31st March, 2021 the Board of Directors of the Company comprised of 11 Directors out of which 4 are Executive
Directors and the remaining 7 are Non-Executive Directors (including 3 Independent Directors). The Chairman of the Board is
Non-Executive Director. The composition of the Board is in conformity with the Companies Act, 2013 read with Rules issued
thereunder.
All the Directors possess the requisite qualification & experience in Industry, Management, Finance, Research, Law and other
allied fields enabling them to contribute effectively in their capacity as Directors of the Company.
b. Board meetings and Attendance
During the year 2020-21, Six (6) Board Meetings were held on 18th June 2020, 26th August, 2020, 30th September, 2020,
22nd October, 2020, 22nd December 2020 and 18th March, 2021. Except for the Board Meeting dated 22nd October, 2020 held in
physical mode, all other Board meetings were held through Video Conferencing.
The notices for the Board Meetings and the detailed agenda papers were circulated to all the Directors well in advance to enable
them to attend and take an informed decision at the Meetings.
The minutes of the proceedings of each Board and committee meeting are properly recorded and entered into Minutes book.
There is effective post meeting follow-up, review and reporting process for decision taken by the Board.
None of the Directors are members of more than ten Board level committees nor are they Chairman of more than five committees
in which they are members.
The name and category of the Directors on the Board, their attendance at the Board meetings during the year and at the last
Annual General Meeting, as also the number of Directorship & Committee memberships held by them in other Companies are
given below:
Name of the Director Category Total no. of Board No. of other No of Committee Whether
Meetings during Directorship(s) position held in attended last
the year 2020-21 in other other Public co.2 AGM held on
Public co.1 30.09.2020
Held Attended Member Chairman Member
Mr. S.P. Mistry Chairman, 6 6 2 - - Yes
Non-Executive Director
Mr.K.Subramanian Executive Vice 6 5 - - - Yes
Chairman
Mr.N.D.Khurody Independent Director 6 6 1 - - Yes
Mr.P.N.Kapadia Independent Director 6 6 5 1 6 Yes
Mr.R.M.Premkumar Independent Director 6 6 1 1 1 Yes
Mr. U.N. Khanna Non-Executive Director 6 6 1 - - Yes
Mr.Pallon S Mistry Non-Executive Director 6 6 3 - 1 Yes
Ms.Roshen M Nentin Non-Executive Director 6 6 - - - Yes
Mr.S.Paramasivan Managing Director 6 6 - - - Yes
Mr.Giridhar Deputy Managing 6 6 - - - Yes
Rajagopalan Director
Mr. Akhil Kumar Gupta Executive Director 6 5 - - - Yes
(Operations)
Note:
1. Excludes Directorship in association, Private Companies, Foreign Companies & Companies registered under section 8 of
the Companies Act, 2013 (“Act”).
2. Chairmanships / Memberships of Audit Committee and Stakeholders Relationship Committee in other Public Companies
have been considered.
III. AUDIT COMMITTEE
a. The Audit Committee of the Company was constituted on 7th March, 2001.
b. Terms of reference of the Audit Committee:
In compliance with the provisions of section 177 of the Act, and the Rules made thereunder, the Board of Directors of the
Company at its meeting held on 24th June, 2014 amended the terms of reference of the Audit Committee which are as under:
• Overseeing the Company’s financial reporting process and the disclosure of financial information;
• Recommending the appointment and removal of external auditors and fixing of audit fees;
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• Review with management the annual financial statements and auditor’s report before submission to the Board;
• Review with management, external and internal auditors, the adequacy of internal controls;
• Review and monitor the auditor’s independence and performance, and effectiveness of audit process;
• Approval or any subsequent modification of transactions of the company with related parties;
• Scrutiny of inter-corporate loans and investments;
• Valuation of undertakings or assets of the company, wherever it is necessary;
• Evaluation of internal financial controls and risk management systems;
• Monitoring the end use of funds raised through public offers and related matters;
• To obtain professional advice from external sources and have full access to information contained in the records of the
company;
• To oversee the vigil mechanism;
• In consultation with the Internal Auditor, formulate the scope, functioning, periodicity and methodology for conducting the
internal audit;
• All other powers and duties as per section 177 of the Act and the Rules made thereunder;
c. Four Meetings were held during the year on the following dates:
26th August 2020, 30th September, 2020, 22nd December, 2020 and 18th March, 2021.
d. As on 31st March, 2021 composition of Audit Committee and particulars of meetings attended by the members of the Audit
Committee are given below:

Held Attended
Mr. N.D.Khurody Independent Director Chairman 4 4
Mr. P.N. Kapadia Independent Director Member 4 4
Mr. R.M. Premkumar Independent Director Member 4 4
IV. NOMINATION AND REMUNERATION COMMITTEE
a. The Committee was originally constituted as Remuneration Committee on 25th March, 2003. In compliance with the provisions of
section 178 of the Act and the Rules made thereunder, the Board of Directors of the Company at its meeting held on 24th June,
2014 have renamed the said Committee as “Nomination and Remuneration Committee” (hereinafter “Committee”).
b. Terms of Reference of the Committee, as amended by the Board of Directors of the Company at its meeting held on 24th June,
2014, are as under:
• To identify persons who are qualified to become directors and who may be appointed in senior management.
• To recommend to the Board the appointment/ removal of the Directors or senior management personnel.
• To carry out evaluation of every Director’s performance.
• To formulate the criteria for determining qualifications, positive attributes and independence of a Director.
• To recommend to the Board a policy, relating to the remuneration for the directors, key managerial personnel and other
senior employees.
• All other powers and authorities as provided under the provisions of Schedule V and other applicable provision of the Act
and the Rules made thereunder and any amendment thereof, if any, in granting the approval of remuneration to Whole Time
Directors and the Managing Directors of the Company.
c. As on 31st March, 2021 the composition of Committee and particulars of meetings attended by the members of Committee are
given below:

Held Attended
Mr. S.P Mistry Non-Executive Director Member 2 2
d. Two Meetings were held during the year on the following dates:
17th June 2020, 22nd October, 2020
e. Remuneration Policy
Remuneration policy of the Company is designed to create a high-performance culture. It enables the Company to attract, retain
and motivate employees to achieve results.
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The Salient feature of the Nomination and Remuneration policy are as under:
• The remuneration to Executive Director, KMP and Senior Management Personnel, shall involve a balance between fixed
and incentive pay reflecting short and long-term performance objectives appropriate to the working of the company and its
goals.
• The remuneration (including payment of minimum remuneration) to Executive Directors shall be within the overall ceiling
prescribed under the Act. Within the said overall ceiling of remuneration, the Executive Directors will be entitled to avail of
the perquisites under different heads as may be applicable to the other Senior Management Personnel of the Company.
Such remuneration to the Executive Directors will be determined by the Committee and recommended to the Board for
approval. The remuneration shall be subject to prior/post approval of the shareholders of the Company.
• The annual increments to Executive Directors, will be decided by the Committee and/or the Board of Directors in its absolute
discretion and will be merit based and will also take into account Company’s performance.
• The Committee shall identify and ascertain the integrity, qualification, expertise and experience of the person for appointment
as Director and recommend to the Board his / her appointment.
• Due to reasons for any disqualification mentioned in the Act, rules made thereunder or under any other applicable Act, rules
and regulations, the Committee may recommend, to the Board with reasons recorded in writing, removal of a Director.
• The Committee shall evaluate the performance of the Director as per the requirement of the Act.
• The qualification attributes, terms and conditions of appointment and removal of KMP and Senior Management Personnel
as also their remuneration and the evaluation of their performance shall be as decided by the Executive Vice Chairman in
line with the Company’s policies.
• The Committee shall ratify such appointment and removal of KMP and Senior Management Personnel.
f. Details of Remuneration paid to Directors during the financial year 2020-21:
i. Executive Directors (` in p.a.)
Name of Director Basic Salary PF/SA Perquisites Total Remuneration

Mr.K.Subramanian 72,00,000.00 19,44,000.00 283,04,760.00 374,48,760.00
Mr.S.Paramasivan 63,00,000.00 17,01,000.00 245,31,760.00 325,32,760.00
Mr. Giridhar Rajagopalan 30,00,000.00 8,10,000.00 144,43,926.00 182,53,926.00
Mr. Akhil Kumar Gupta 30,00,000.00 8,10,000.00 137,47,796.00 175,57,796.00
Total 195,00,000.00 52,65,000.00 810,28,242.00 1057,93,242.00
The number of stock options granted till date to the Executive Directors is as under:
Name of the Director Stock options granted till date

Mr. K.Subramanian 35,040
Mr. S.Paramasivan 26,280
ii. Non-Executive Directors
The Non-Executive Directors were not paid any remuneration except sitting fees for attending the meetings of the Board of
Directors and / or Committees thereof. The details of the sitting fees paid to the Non-Executive directors are as under:
Name of the Director Sitting Fees (in `) Equity Shareholding in the Company
No. of Shares % holding
Mr.S.P. Mistry 7,00,000 - -
Mr.N.D.Khurody 14,50,000 - -
Mr.P.N. Kapadia 15,00,000 - -
Mr.U.N.Khanna 9,50,000 - -
Mr.R.M.Premkumar 10,50,000 - -
Mr. P.S. Mistry 6,00,000 - -
Ms. R. M. Nentin 6,00,000 3,310 0.0046
Total 68,50,000 3,310 0.0046
The Company does not have any material pecuniary relation or transactions with its Non-Executive Directors.
V. Corporate Social Responsibility Committee
a. In accordance with the requirement of Section 135 of the Act and the Rules made thereunder, the Board of Directors of the
Company at its meeting held on 24th June, 2014 have constituted a Corporate Social Responsibility (“CSR”) Committee.
b. MCA vide notification dated 22nd January 2021 has amended CSR Rules. Pursuant to said amendment and based on the
recommendation of CSR committee, the Board of Directors at its meeting held on 28th May 2021 has revised the CSR Policy of
the Company. The terms of reference of CSR Committee, as per revised CSR Policy is as under:
• Framing of Corporate Social Responsibility (CSR) Policy (which shall include amendment thereto from time to time) and
recommending to the Board for approval.
• Formulating an Annual Action Plan of the CSR activities to be undertaken during the financial year.
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• Selection of CSR Activity / CSR Programme or CSR Project to be undertaken by the Company.
• Recommend spending of CSR funds to be undertaken in areas or subjects specified in Schedule VII to the Act.
• To decide and recommend to the Board on the manner of utilisation of surplus.
• Implementation & monitoring of CSR activity(ies) / programme(s) or project(s) to be undertaken in accordance with the CSR
Policy.
• Identifying, evaluating and appointment of organisation (including international organisations) for carrying out base line
surveys, guidance on designing, monitoring, evaluating the implementation of CSR activities, project programme and
impact assessment surveys etc.
c. • One Meeting was held during the year on 25th August, 2020.
• As on 31st March, 2021 the Composition and particulars of meetings attended by the members of Corporate Social
Responsibility Committee is as under:

Held Attended
Mr.K.Subramanian Executive Vice Chairman Chairman 1 1
• In addition to the above, Company has vide Circular resolution of the CSR Committee passed on 16th March 2021 approved
the voluntary CSR expenditure of ` 1,34,53,000/- incurred during the financial year 2020-21.
VI. Stakeholders Relationship Committee:
a. The Committee was constituted on 28th November 2006 as Shareholders / Investor’s Grievances Cum Share Transfer Committee.
The Board of Director at its meeting held on 24th September 2008 renamed the said Committee as Shareholders / Investor’s
Grievance Cum Share Transfer cum ESOP Share Allotment Committee. Thereafter the Committee was again renamed at the
meeting of the Board of Directors held on 12th March, 2014 as Shareholder/Investors’ Grievance cum Share Transfer cum Shares
Allotment Committee (“STC”). The Board of Directors again at the meeting held on 22nd March, 2016 has renamed the committee
as Stakeholders Relationship Committee (“SRC”).
b. The broad terms of reference of SRC (including the powers delegated to SRC by Board at the meeting held on 18th June 2020)
are as under:
• To allot equity shares to the employees exercising the ESOP options granted under the ESOP Scheme 2006 of the Company.
• To issue and allot Equity Shares, Convertible Preference shares (fully/partly/optionally convertible).
• To exercise such powers and to do all such act, deed, matters and things in connection with the issue and allotment of the
Equity Shares, Convertible Preference shares (fully/partly/optionally convertible) as the Committee deems fit and proper.
• To approve transfer of the Equity and Preference Shares of the Company and further delegate such powers to the Registrar
for the Transfer of Shares of the Company.
• To allot Debentures to the Investor.
• To approve/record Transfer, Dematerialisation / Rematerialisation of Debentures, issue of duplicate Debenture Certificates,
issue of new Debenture certificates on split / Consolidation.
• To look into matters pertaining to the shareholders and investors complaints like transfer of shares, non-receipt of balance
sheet, non- receipt of declared dividends, redress complaints of Debenture holder pertaining to the issue including non-
receipt of interests, etc.
• To decide on all other matters related to Debentures.
• To investigate into any matter in relation to areas specified above or referred to it by the Board of Directors and for this
purpose will have full access to information contained in the records of the Company.
• To determine the conversion price of the Convertible Preference shares (fully/partly/optionally convertible).
• To sub-delegate any of the said powers and authorities to any of the Committee members and/or to any other person as the
Committee deems fit.
• To pass any resolution by Circulation.
• #To take steps for transfer of any unclaimed dividend amount and equity shares to Investor Education and Protection Fund
(IEPF) as referred under Section 124 and Section 125 of the Companies Act, 2013 and rules framed thereunder;;
• #To consider, monitor, resolve and handle all the matters regarding transmission of securities of the Company;
• #To carry out such other matters as may be delegated to it by the Board from time to time.
#
delegated by Board at the meeting held on 18th June, 2020
c. No meeting held during the year ending 31st March,2021.
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d. Name and Designation of the Compliance Officer:
Mr. Gaurang Parekh, Company Secretary is the Compliance officer & Nodal officer of the Company.
e. Status of Investor’s Complaints
During the financial year all the letters / complaints received by the Registrar and Share Transfer Agent have been redressed and
there were no complaints pending with the Company / Registrar and Share Transfer Agent. All the valid share transfers requests
received during the year were duly attended to and processed in time. There was no valid request pending for share transfer as
on 31st March 2021.
VII. Independent Directors meeting
a. One Meeting was held during the year on 16th March, 2021.
b. As on 31st March, 2021 the composition of Committee and particulars of meetings attended by the members of Committee are
given below:

Held Attended
Mr.R.M.Premkumar Non-Executive Director Member 1 1
c. As per the provisions of Section 149 read with Schedule IV of the Act, at the said Independent Directors meeting, the Independent
Directors discussed & reviewed the performance of the Chairman, Non-Independent Directors, Non-Executive Directors and Executive
Directors & review the performance of the Board of Directors as the whole. All the Independent Directors were present at the Meeting.
VIII. COMMITTEE OF DIRECTORS

a. The Committee of Directors (“COD”) was reconstituted on 27th June, 2016 with revised powers for delegation of certain powers
of the Board of Directors to Committee of Directors which are of routine & urgent nature can be approved/ passed by the said
Committee. On 24th June, 2019 the Board has further delegated to the said Committee certain powers of the Board for taking
decision on matter arising between two Board meetings to authorise the Committee to borrow from any other persons in addition
to Banks, Financial Institutions.
b. The broad terms of reference of COD (including the powers delegated to COD by Board at the meeting held on 24th June, 2019)
are as under:
• To open account(s) in the name of the Company with any Bank(s), Financial Institution(s), as the Committee may deem
fit and necessary, whether designated in Indian Rupees or any foreign currency whether in India or overseas, to authorise
signatories to open, operate and to give instructions to the Banks / Financial Institution in connection with the operations of
the account(s) including specific any terms or limit on such authority and to close any Bank Account(s) of the Company with
any Bank(s), Financial Institution(s).
• To issue Power of Attorney in favour of employees of the Company and other persons pertaining to the business of the
Company under the Common Seal of the Company.
• To authorise representative of the Company for representation before Statutory Authorities in India and Overseas.
• To avail credit facilities / borrowing from time to time (including amendment thereto), within the limits as approved by the
Shareholders, from Banks and/ or Financial Institutions or any other persons from time to time as the Committee may
deem fit and necessary for the purpose of the business of the Company and to authorise signatories to sign and execute
agreements and documents and to do all act, deeds and things to give effect to the availing of the credit facility /borrowing.
• To avail corporate internet Banking with online transaction Rights from Banks/ Financial Institutions for the Bank Account(s)
of the Company for our routine corporate transactions.
• To make loans and/or give guarantees, bonds and /or counter guarantees and indemnities or provide securities on behalf
of the Company and to authorise signatories to sign and execute agreements and documents and to do all act, deeds and
things in this matter on behalf of the Company.
• To incorporate Company and set-up Branch office, representative office and licensing office in India and Overseas.
• To institute, prosecute, defend, oppose, appear or appeal in legal proceedings and demands and to accept services
of notices or processes and to give security or indemnities for costs, to pay money into court and obtain payment of
money lodged in court and to engage Counsel, Advocates, Attorneys, Vakils, Pleaders or other persons and to sign
and give vakalatnamas, retainers and other necessary authorities and such retainer and authorisation from time to
time at pleasure to revoke.
• To approve other transactions of routine nature (other than those matters which are expressly required by Companies Act,
2013 and Rule thereto to be passed at the meeting of the Board of Directors) as the Committee may deem fit and necessary
for the purpose of the business of the Company which cannot be deferred to the next Board meeting.
c. Six meetings were held during the year on the following dates:
2nd June, 2020, 23rd July, 2020, 11th September, 2020, 21st September, 2020, 22nd January, 2021 and 17th February, 2021.
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d. As on 31st March, 2021 the Composition and attendance of members at the meetings of the Committee of Directors is as under:

Held Attended
Mr. N.D. Khurody Independent Director Chairman 6 6
Mr. S Paramasivan Managing Director Member 6 6
IX. GENERAL BODY MEETINGS
a. The details of the Annual General Meetings (AGM) held in the last 3 years:
For Financial Year ended Location Date of AGM Time

31.03.2020 registered office of the Company 30.09.2020 4.30 p.m
b. Details of Extra Ordinary General Meeting (EGM) held in the last 3 years: There was no EGM held in the last 3 years.
c. Details of the special resolutions passed at the Annual General Meeting in the previous 3 years:
44th AGM i. Consent of the Company to re-appoint and revise remuneration of Mr. K. Subramanian, (DIN - 00047592)
dated as an Executive Vice Chairman of the Company for a period of term of 3 years from 1st July, 2020 to
30.09.2020 30th June 2023.
ii. Consent of the Company to re-appoint and revise remuneration of Mr. S.Paramasivan (DIN- 00058445) as
a Managing Director of the Company for a period of term of 3 years from 1st July, 2020 to 30th June 2023.
iii. Consent of the Company to vary the terms of remuneration of Mr.Giridhar Rajagopalan (DIN - 02391515)
as Whole-time Director designated as Executive Director (Technical) of the Company.
iv. Consent of the Company To vary the terms of remuneration of Mr.Akhil Kumar Gupta (DIN-03188873) as
Whole-time Director designated as Executive Director (Operations) of the Company.
v. Consent of the Company to Issue Non-Convertible Debentures/Bonds/other Instruments on private
placement basis up to ` 200 Crores.
43rd AGM i. Consent of the Company for re-appointment of Mr. Pradip Narotam Kapadia (DIN: 00078673) as an
dated Independent Director of the Company.
26.09.2019 ii. Consent of the Company for re-appointment and revise remuneration of Mr. Giridhar Rajagopalan
(DIN:02391515) as Whole-time Director designated as Executive Director (Technical) of the Company for
the period from 1st July, 2019 to 30th June, 2022.
iii. Consent of the Company for re-appointment and revise remuneration of Mr. Akhil Kumar Gupta
(DIN: 03188873) as Whole-time Director designated as Executive Director (Operations) of the Company for
the period from 1st July, 2019 to 30th June, 2022.
iv. Consent of the Company for raising ` 200 Crores (Rupees Two Hundred Crores only) through issue of
Unsecured, Redeemable, Unlisted Non-Convertible Debentures (“NCDs”) on private placement basis.
i. Consent of the Company to issue 0.01% Fully and Compulsorily Convertible, Non-Cumulative, Non-
Participatory Preference Shares aggregating to ` 100 Crores to Shapoorji Pallonji and Company Private
Limited on Preferential Allotment Basis such terms and conditions and in such manner as may be approved,
finalized or decided by the Board from time to time.
42nd AGM i. Consent of the Company for appointment of Mr. K. Subramanian, (DIN:00047592) as an Executive Vice
dated Chairman of the Company for the remaining tenure i.e. up to 30th June, 2020.
27.09.2018 ii. Consent of the Company for appointment of Mr. S.Paramasivan (DIN:00058445) as Managing Director of
the Company for the remaining tenure i.e. up to 30th June, 2020.
iii. Consent of the Company for raising ` 200 Crores (Rupees Two Hundred Crores only) through issue of
Unsecured, Redeemable, Unlisted Non-Convertible Debentures (“NCDs”) on private placement basis.
d. Details of Members approval obtained vide Postal Ballot are given below:
17th July, 2020 Variation of the terms and conditions of 25,00,00,000, 0.01% Fully and Compulsorily Convertible,
Non-Cumulative, Non Participatory Preference Shares having face value of ` 10/- each aggregating to
` 250,00,00,000/- (Rupees Two Hundred Fifty Crores only) of the Company held by Goswami Infratech
Private Limited.
27th July, 2020 i. To modify the second term of appointment of Mr. N. D. Khurody (DIN- 00007150) as an Independent
Director of the Company, not liable to retire by rotation, to hold office up to 26th September 2022.
ii. To modify the second term of appointment of Mr. R.M. Premkumar (DIN- 00328942) as an Independent
Director of the Company, not liable to retire by rotation, to hold office up to 26th September 2022.
X DISCLOSURES
There were no materially significant related party transactions during the financial year 2020-21 that may have potential conflict
with the interests of the Company at large. The detail of the related party transactions as per IND AS 24 are included in the notes to
accounts forming part of the Annual Reports.
25
XI MEANS OF COMMUNICATION
a. The Company has its own website and all the vital information relating to the Company is displayed on the website. Address of
the website is www.afcons.com.
b. Annual Report containing Inter alia, Audited Annual Report, Financial Statements, Directors Report, Auditors Report and other
important information is circulated to the members and others entitled thereto.
XII GENERAL SHAREHOLDERS INFORMATION
a. Annual General Meeting
Date : 27th September, 2021 through video conference or Other Audio Visual Means
Time : 4.30 pm
Venue : Afcons House, 16, Shah Industrial Estate,
Veera Desai Road, Azad Nagar, P.O., Mumbai 400 053
b. Financial Year : 1st April to 31st March
c. Cut – Off Date for AGM : Monday, 20th September 2021
d. Date of Book Closure : 21th September, 2021 to 27th September, 2021 (both days Inclusive)
e. ISIN No. : INE101I01011
f. Registrar & Share Transfer Agent : Cameo Corporate Services Limited
Subramanian Building, 1 Club House Road, Chennai-600002.
Tel. No.:044-28460390
Fax No.:044-28460129
Email id.: afcons@cameoindia.com
g. CIN : U45200MH1976PLC019335
h. Tel : +91 22 67191000
i. Fax : +91 2226730027 /1031/0047
j. Email id : secretarial@afcons.com
k. website : www.afcons.com
XIII SHAREHOLDING PATTERN AS ON 31st MARCH, 2021
Sr. No. Category No. of Shares % of total

1. Promoter’s holding
Indian Promoters -Bodies Corporate 62121581 86.32
Sub total (1) 62121581 86.32
2. Non Promoters Holding
Companies / Bodies Corporate 8082620 11.23
Employees Trust 1191370 1.66
Directors & their Relatives 110057 0.15
Employees / Retired Employees / General Public 461530 0.64
Subtotal (2) 9845577 13.68
3. Investor Education & Protection Fund (3) 3080 0.00
Total (1+2+3) 71970238 100.00
XIV DISTRIBUTION OF SHAREHOLDING AS ON 31st MARCH, 2021
Number of Shares Shareholders Shares

Number % of Total Number % of Total
1 to 100 56 13.63 4341 0.01
101 to 500 230 55.96 63691 0.09
501 to 1000 31 7.54 24674 0.03
1001 to 2000 17 4.14 25824 0.04
2001 to 3000 6 1.46 15116 0.02
3001 to 4000 8 1.95 27737 0.04
4001 to 5000 4 0.97 18548 0.02
5001 to 10000 21 5.11 142096 0.20
10001 & above 38 9.24 71648211 99.55
Total 411 100.00 71970238 100.00
XV Address for Correspondence:
16 Shah Industrial Estate, Veera Desai Road,
Azad Nagar, P.O., Andheri (W), Mumbai – 400053
Tel.no.: +91 22 67191000
Fax.no.: +91 2226730027 /1031/0047
Website: www.afcons.com
26
INDEPENDENT AUDITOR’S REPORT
To the Members of Afcons Infrastructure Limited
Report on the audit of the Standalone financial statements
Opinion
1. We have audited the accompanying standalone financial statements of Afcons Infrastructure Limited (“the Company”), which includes
20 branches at Mauritius, Liberia, Bangladesh (2), Ghana, Zambia, Bhutan, Jordan, Bahrain, Kuwait, Saudi Arabia, Mozambique,
Mauritania, Oman, Abu Dhabi, Qatar, Indonesia, Iraq, Tanzania and Gabon and 14 jointly controlled operations consolidated on
proportionate basis (refer Note 2 to the attached standalone financial statements), which comprise the balance sheet as at March 31,
2021, and the statement of Profit and Loss (including Other Comprehensive Income), statement of changes in equity and statement of
cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and
other explanatory information (hereinafter referred to as “the standalone financial statements”).
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial
statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,
2021, and total comprehensive income (comprising of profit and other comprehensive income), changes in equity and its cash flows
for the year then ended.
Basis for opinion
3. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Standalone Financial
Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute
of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the standalone financial
statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained and the audit
evidence obtained by the other auditors in terms of their reports referred to in paragraph 14 of the Other Matters section below, other
than the unaudited financial statements/ financial information as certified by the management and referred to in paragraph 15 of the
Other Matters section below is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter
4. We draw attention to the following matters:
a) Note 46 to the standalone financial statements which describes the management’s assessment of the impact of the outbreak
of Coronavirus (Covid-19) on the business operations of the Company. The Company believes that no additional adjustments
are required in the standalone financial statements, however, in view of various preventive measures taken (such as complete
lock-down including travel restrictions) and highly uncertain economic environment, a definitive assessment of the impact on the
subsequent periods is highly dependent upon circumstances as they evolve.
b) Note 40 of the standalone financial statements, regarding delay in recovery of ` 181.99 Crores and ` 3.62 crores from a customer
which are disclosed under note 8 ‘Contract assets’ and note 5 ‘Trade receivables” respectively, which are dependent upon
finalisation of arbitration award in favour of the Company. In addition, the Company has preferred two claims in respect of the
same project as mentioned in the note.
c) Note 36 (b) of the Standalone financial statements, regarding delay in recovery of advances of ` 189.98 Crores from Afcons
Gunanusa Joint Venture (a jointly controlled operation) in respect of a project which is dependent upon finalisation of arbitration
award in favour of the jointly controlled operation.
d) Audit report on the Standalone financial statements of Transtonnelstroy Afcons (a jointly controlled operation) issued by an
independent firm of chartered accountants vide its report dated June 29, 2021 includes an emphasis of matter paragraph which
is reproduced by us as under:
“We draw attention to Note 32 to the Financial Statements, which describes the uncertainties relating to the outcome of the
negotiation/arbitration/ Dispute Adjudication Board proceedings in respect of variations recognised by the joint venture in current
and earlier years, on account of cost overruns due to unforeseen geological conditions, delays in handing over of land, change
in scope of work, etc
Based on the Management’s estimates of the timing and amount of recoverability, which is supported by technical evaluation, the
amounts recognised as amount due from customers under construction contract as stated above are considered as good and
fully recoverable by the management.
Our opinion is not modified in respect of this matter.”
Note 32 as described above is reproduced as note 37 (a) to the Standalone Financial Statements.
Further, in respect of the matter emphasized above, we draw attention to Note 37 (b) of the standalone financial statements,
regarding delay in recovery of receivable amount of ` 959.91 Crores from Transtonnelstroy Afcons (the Jointly controlled
operation) in respect of the project, which is dependent upon finalization of arbitration award in favour of the jointly controlled
operation.
e) Audit report on the Standalone financial statements of Afcons Zambia branch issued by an independent firm of auditors vide its
report dated May 27, 2021 includes an emphasis of matter paragraph which is reproduced by us as under:
“We draw attention to Note 23 of the financial statements which indicates the impact of Covid-19.
In January 2020, the World Health Organisation declared COVID -19 to constitute a “Public Health Emergency of International
Concern.” Since then, more cases have been diagnosed, also in other countries.
27
On 11 March 2020, the World Health Organisation (WHO) announced that the coronavirus outbreak can be characterised as a
pandemic and many governments have introduced various measures to combat the outbreak, including travel restrictions and
quarantines. The pandemic has resulted in some businesses closing and others performing lower than the budget and lockdown
of certain areas.
Given the uncertainty of the situation, the duration of any business disruption and related financial impact cannot be reasonably
estimated at this time. Our opinion is not modified in respect of this matter”
Note 23 as described above is reproduced as note 46 .1 (a) to the Standalone Financial Statements.
f) Audit report on the financial statements of Afcons Vijeta PES Joint Venture, Afcons JAL Joint Venture and Afcons Vijeta Joint
Venture issued by an independent firm of chartered accountants vide its report dated June 29, 2021 includes an emphasis of
matter paragraph which is reproduced by us as under:
“We draw attention to Note 24 to the Ind AS Financial Statements as regards to the management evaluation of COVID – 19
impact on the future performance of the Joint Venture. Our opinion on the financial statements is not modified in respect of the
above matter.”
Note 24 as described above is reproduced as note 46 .1 (b) to the Standalone Financial Statements.
g) Audit report on the financial statements of Afcons Sibmost Joint Venture, Afcons SMC Joint Venture and Afcons Infrastructure
Limited and Vijeta Projects and Infrastuctures Limited Joint Venture issued by an independent firm of chartered accountants vide
its report dated June 29, 2021 includes an emphasis of matter paragraph which is reproduced by us as under:
impact on the business operations and future performance of the Joint Venture. Our opinion on the financial statements is not
modified in respect of the above matter.
Further, our attendance at the physical inventory verification done by the management was impracticable under the current lock-
down restrictions imposed by the government and we have therefore, relied on the related alternative audit procedures to obtain
comfort over the existence and condition of inventory at year end.”
Note 24 as described above is reproduced as note 46 .1 (c) to the Standalone Financial Statements.
h) Audit report on the financial statements of Afcons Sener LNG Construction Projects Private Limited issued by an independent
firm of chartered accountants vide its report dated June 29, 2021 includes an emphasis of matter paragraph which is reproduced
by us as under:
“Material uncertainty related to going concern
We draw attention to Note 19 to the standalone financial statements regarding, the company having incurred significant operational
losses since earlier years whereby it’s net worth has been completely eroded. These conditions indicate the existence of a
material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern. However, the
financial statements of the Company have been prepared on a going concern basis for the reasons stated in the said Note.”
Note 19 as described above is reproduced as note 46 .2 (a) to the Standalone Financial Statements.
i) Audit report on the Standalone financial statements of Afcons Infrastructure Ltd- Kuwait Operations branch issued by an
“Kuwait is considered a branch of the company, and its financial statements are consolidated with those of the company. The
financial statements have been prepared on the basis of accounting policies applicable to a going concern, presuming that funds
will be available to finance future operations, and that realization of assets and settlement of liabilities and commitments will occur
in the ordinary course of business.
The outbreak of the Coronavirus -The COVID-19 epidemic; has significantly impacted businesses around the world and led to
disruption of businesses and economic activity.
As informed to us, the operations of the branch were partially impacted, following lockdown, nonetheless, the branch resumed
operations in a phased manner and has been able to continue its operations till the year end. Based on written representations,
the Management is closely monitoring the impact the COVID-19 pandemic on all aspects of its operations including significant
accounting judgements and estimates, inter-alia including its liquidity position, recoverability/carrying values of its trade
receivables and contract assets as at balance sheet date, and has evaluated and assessed the impact and future uncertainties
resulting from Covid-19 based on internal and external sources of information including, discussions and views from experts
and industry participants, market estimates, etc. based on the information available till the date of approval of these financial
statements.
The management expects that the carrying amount of its assets as reflected in the Balance Sheet as at March 31, 2021 will
be recovered. However, the impact assessment of COVID19 is a continuing process given the uncertainties associated with its
nature and duration and accordingly the actual impact on the business operations, may be different from that estimated as at the
date of approval of these financial statements. The Management has confirmed that it will continue to monitor developments to
identify significant uncertainties and material changes in future periods that may have an impact on the operations of the branch.”
Our opinion is not modified in respect of the above matters.
28
Key Audit Matters
5. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone
financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter How our audit addressed the key audit matter
Estimation of contract cost and revenue Our procedures over the recognition of construction revenue included the
recognition following:
(Refer note 1.B.3 and 22 to the standalone financial ● Understood and evaluated the design and tested operating effectiveness
statements) of key internal financial controls, including those related to review and
The Contract prices for engineering, procurement approval of estimated project cost and review of provision for estimated
and construction contracts, which usually extend loss by the authorised personnel.
over a period of 2-3 years are fixed / subject to price ● For sample of contracts, we obtained the percentage of completion
variance clauses. calculations, agreed key contractual terms back to signed contracts,
The contract revenue is measured based on the tested the mathematical accuracy of the cost to complete calculations
proportion of contract costs incurred for work and re-performed the calculation of revenue recognized during the year
performed to date relative to the estimated total based on the percentage of completion.
contract costs, except where this would not be ● For costs incurred till date, we tested samples to appropriate supporting
representative of the stage of completion. documentation and performed cut-off procedures.
This method requires the Company to perform an ● To test the forecasted cost to complete, we obtained the breakdown
initial assessment of total estimated cost and further, of forecasted costs and tested elements of the forecast by obtaining
reassess the total construction cost at each reporting executed purchase orders and agreements, evaluating reasonableness
period to determine the appropriate percentage of of the assumptions underlying management’s judgements (including
completion. those related to contract performance under the lockdown and other
We considered the estimation of construction contract restrictions imposed by government), using past trends and comparing
cost as a key audit matter given the involvement the estimated costs to the actual costs incurred for the similar completed
of significant management judgement which has projects.
consequential impact on revenue recognition. ● Checked the appropriateness of disclosures made in the standalone
financial statements pursuant to requirements of applicable accounting
standards.
Based on the procedures performed above, we considered manner of
estimation of contract cost and recognition of revenue to be reasonable.
Valuation of contract assets and accounts Our audit incorporated the following procedures with regard to accounts
receivable in view of risk of credit losses receivables and contract assets;
(Refer to Note 5 and 8 to the standalone financial ● Understood and evaluated the accounting policy of the Company for
statement) provisioning against expected credit losses.
Accounts receivables and contract assets amounting ● Evaluated the design and tested the operating effectiveness of key
to ` 2,839.46 crores and ` 3,825.91 crores respectively controls in relation to determination of expected credit losses and
(including retention receivables) are significant item in provisioning against the same.
the Company’s standalone financial statements as at ● Inquired with senior management regarding status of collectability of
March 31, 2021 and assumptions used for estimating the receivable / contract assets.
the credit loss on receivables and contract assets is an
area which is influenced by management’s judgment. ● Held discussions with the audit committee on the basis of provision
against significant and long outstanding balances.
The Company makes an assessment of the estimated
credit losses basis credit risk, project status, past ● Reviewed the correspondence with customers to assess recoverability
of the receivables.
history, latest discussion / correspondence with the
customer. ● Perused the chartered engineer reports obtained by the management
in respect of status of various on-going projects, to assess the validity
The Company has a concentration of credit exposure
of Company’s claims.
on certain customers, which include government and
private organisations as well where there are delays in ● Perused the legal opinions obtained by the management to assess the
collections due to various reasons. The management recoverability of claims in respect of disputed matters, and with the
has assessed the appropriateness of provisions involvement of auditor’s experts assessed the adequacy and necessity
recognised on receivables and contract assets, basis of provision against the receivables.
factors such as the credit risk of the customer, status ● Assessed appropriateness of the underlying information used by the
of the project, discussions with the customers and Management to determine the expected credit losses by considering
contractual terms. This involves significant judgement. credit risk of the customer, cash collection, performance against
Given the relative significance of these receivables/ historical trends, status of projects and the level of credit loss charges
contract assets to the standalone financial statements over time;
and the nature and extent of audit procedures involved Based on our procedures as stated above, no significant deviations were
to assess the recoverability of receivables/contract observed in respect of management’s assessment of valuation of accounts
assets, we determined this to be a key audit matter. receivables and contract assets.
29
Other Information
6. The Company’s Board of Directors are responsible for the other information. The other information comprises the information included
in the Board report but does not include the financial statements and our auditor’s report thereon. The Board report is expected to be
made available to us after the date of this auditor’s report.
Our opinion on the financial statements does not cover the other information and we will not express any form of assurance conclusion
thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above
when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. When we read the Board
report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with
governance and take appropriate action as applicable under the relevant laws and regulations.
Responsibilities of management and those charged with governance for the standalone financial statements
7. The Company’s Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation of
these standalone financial statements that give a true and fair view of the financial position, financial performance, changes in equity
and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting
Standards specified under section 133 of the Act This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable
and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively
for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
8. In preparing the standalone financial statements, management is responsible for assessing the Company’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so. Those Board
of Directors are also responsible for overseeing the Company’s financial reporting process.
Auditor’s responsibilities for the audit of the standalone financial statements
9. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
10. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the
audit. We also:
● Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
● Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company
has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such
controls.
● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management.
● Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the standalone financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Company to cease to continue as a going concern.
● Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and
whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
● Obtain sufficient appropriate audit evidence regarding the financial statement/information of the branches and jointly controlled
operations or business activities within the Company to express an opinion on the standalone financial statements. The other
Branches or Jointly controlled operation included in the Standalone financial statements, which have been audited by other
auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them.
We remain solely responsible for our audit opinion.
11. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
12. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
30
13. From the matters communicated with those charged with governance, we determine those matters that were of most significance
in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
Other Matter
14. We did not audit
i) financial statements/ financial information of 1 branch and 14 jointly controlled operations included in the standalone financial
statements of the Company, whose financial statements (before eliminating intercompany transactions) reflect total assets
of ` 2,519.32 Crores and net liabilities of ` 177.17 Crores as at March 31, 2021, total revenue of ` 1,019.49 Crores, total
comprehensive loss (comprising of net loss and other comprehensive loss) of ` 268.87 Crores and net cash outflows amounting
to ` 1.90 Crores for the year then ended. These financial statements and other financial information have been audited by other
auditors whose reports have been furnished to us by the management, and our opinion on the standalone financial statements
(including other information) to the extent they have been derived from such standalone financial statements is based solely on
the report of such other auditors.
ii) financial statements/ information of 6 branches included in the standalone financial statements of the Company, whose financial
statements (before eliminating intercompany transactions) reflect total assets of ` 1,694.63 Crores and net assets of ` 1,395.70
crores as at March 31, 2021, total revenue of ` 2,390.55 Crores, total comprehensive income (comprising of net profit and other
comprehensive income) of ` 532.90 crores and net cash flows amounting to ` 12.09 Crores for the year then ended.
These financial statements/financial information have been prepared in accordance with accounting principles generally accepted
in their respective countries and have been audited by other auditors under generally accepted auditing standards applicable in
their respective countries whose reports have been furnished to us by the Management, and our opinion on the Statement insofar
as it relates to the amounts and disclosures included in respect of these branches is based solely on the reports of the other
auditors. The Company’s management has converted the financial statements of such branches from the accounting principles
generally accepted in their respective countries to comply with the accounting principles generally accepted in India. We have
audited these conversion adjustments made by the Company’s management. Our opinion in so far as it relates to the balances
and affairs of such branches located outside India, is based on the report of other auditors and the conversion adjustments
prepared by the management of the Company and audited by us.
15. We did not audit the standalone financial information of 13 Branches included in the standalone financial statements of the Company,
whose financial statements (before eliminating intercompany transactions) reflect total assets of ` 701.30 Crores and net assets of
` 717.95 Crores as at March 31, 2021, total revenue of ` 180.09 Crores, total comprehensive income (comprising of net profit and
other comprehensive income) of ` 9.52 Crores and net cash flows amounting to ` 38.67 Crores for the year then ended. The unaudited
financial information have been provided to us by the management, and our opinion on the standalone financial statements of the
Company to the extent they relate to these branches and jointly controlled operations is based solely on such unaudited financial
information furnished to us.
16. Audit report on the financial statements of Bhutan Branch issued by an independent firm of chartered accountants vide its report dated
May 31, 2021 includes Other matter paragraph which is reproduced by us as under:
“Covid-19 Limitation Clause
The audit has been conducted remotely with documents obtained electronically from the client due to restriction in physical movement
by the auditor and the audit team for lockdown state imposed by the government of both India and Bhutan due to Covid-19 pandemic
Hence, our opinion expressed in the present report is based on limited information, facts and information made available to us through
electronic means by the management of the Company. However, we have exercised all the requirement audit procedures prescribed
by the ICAI’s standards on Auditing and the guidelines issued by AASB-ICAI in relation to audit reporting amid Covid-19 pandemic.”
17. Our opinion on the Standalone financial statements, and our report on Other Legal and Regulatory requirements below is not modified
in respect of above matters with respect to our reliance on the work done and the reports of the other auditors and the financial
statements / financial information certified by the Management.
Report on other legal and regulatory requirements
18. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure B, a statement on the matters specified in paragraphs 3 and 4 of
the Order, to the extent applicable.
19. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary
for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our
examination of those books and records and reports of other auditors.
(c) The reports on the accounts of the branch offices of the Company audited under Section 143(8) of the Act by branch auditors
have been sent to us and have been properly dealt with by us in preparing this report.
(d) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in
Equity and Cash Flow Statement dealt with by this Report are in agreement with the books of account and with the returns
received from the branches not visited by us.
(e) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133
of the Act.
31
(f) On the basis of the written representations received from the directors as on March 31, 2021 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2021 from being appointed as a director in terms of Section 164
(2) of the Act.
(g) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the
operating effectiveness of such controls, refer to our separate Report in “Annexure A”.
(h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at March 31, 2021 on its financial position in its standalone
financial statements – Refer Note 30, 36, 37, 39, 40 and 41 to the financial statements;
ii. The Company has made provision as at March 31, 2021, as required under the applicable law or accounting standards, for
material foreseeable losses, if any, on long-term contracts – Refer Note 18 to the standalone financial statements. Further
the Company did not have any material foreseeable losses on derivative contracts as at March 31, 2021.
iii. There have been no delays in transferring amounts, required to be transferred, to the Investor Education and Protection
Fund by the Company during the year ended March 31, 2021.
iv. The reporting on disclosures relating to Specified Bank Notes is not applicable to the Company for the year ended March
31, 2021.
20. The Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions
of Section 197 read with Schedule V to the Act.
For Price Waterhouse For HDS & Associates LLP
Chartered Accountants LLP Chartered Accountants
Firm Registration No: 012754N/N5000016 Firm Registration No: W100144
Sarah George Suresh K. Joshi

Partner Partner
Membership Number: 045255 Membership Number: 030035
UDIN: 21045255AAAAJL6996 UDIN: 21030035AAAACN7238
Place: Mumbai Place: Mumbai

Date: July 01, 2021 Date: July 01, 2021
32
Annexure A to Independent Auditors’ Report
Referred to in paragraph 19(g) of the Independent Auditors’ Report of even date to the members of Afcons Infrastructure Limited on the
standalone financial statements for the year ended March 31, 2021
Report on the Internal Financial Controls with reference to standalone financial statements under Clause (i) of Sub-section 3 of
Section 143 of the Act
1. We have audited the internal financial controls with reference to standalone financial statements of Afcons Infrastructure Limited (“the
Company”) as of March 31, 2021 in conjunction with our audit of the standalone financial statements of the Company for the year
ended on that date, which includes the internal financial control over financial reporting of the Company’s 20 branches.
Management’s Responsibility for Internal Financial Controls
2. The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control
over financial reporting criteria established by the Company considering the essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of
India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that
were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies,
the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial information, as required under the Act.
Auditors’ Responsibility
3. Our responsibility is to express an opinion on the Company’s internal financial controls with reference to standalone financial
statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls
Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing deemed to be prescribed under section 143(10) of the
Act to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both
issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to standalone financial
statements was established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with
reference to standalone financial statements and their operating effectiveness. Our audit of internal financial controls with reference to
standalone financial statements included obtaining an understanding of internal financial controls with reference to standalone financial
statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of
internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment
of the risks of material misstatement of the standalone financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of their reports
referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the Company’s
internal financial controls system with reference to standalone financial statements.
Meaning of Internal Financial Controls with reference to standalone financial statements
6. A company’s internal financial controls with reference to standalone financial statements is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of standalone financial statements for external purposes
in accordance with generally accepted accounting principles. A company’s internal financial controls with reference to standalone
financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of standalone financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations
of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the standalone financial
statements.
Inherent Limitations of Internal Financial Controls with reference to standalone financial statements
7. Because of the inherent limitations of internal financial controls with reference to standalone financial statements, including the
possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not
be detected. Also, projections of any evaluation of the internal financial controls with reference to standalone financial statements
to future periods are subject to the risk that the internal financial control controls with reference to standalone financial statements
may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may
deteriorate.
Opinion
8. In our opinion, the Company including its branches has, in all material respects, an adequate internal financial controls system with
reference to standalone financial statements and such internal financial controls with reference to standalone financial statements
were operating effectively as at March 31, 2021, based on the internal control over financial reporting criteria established by the
Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls
Over Financial Reporting issued by the Institute of Chartered Accountants of India. Also Refer paragraph 4 (a) of main audit report.
Other Matter
9. Our aforesaid reports under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls
with reference to standalone financial statements insofar as it relates to the 4 branches of the Company, is based on the corresponding
reports of the auditors of such branches of the Company. Our opinion is not qualified in respect of this matter.
Partner Partner
Place: Mumbai
Date: July 01, 2021 Place: Mumbai
Date: July 01, 2021
33
Annexure B to Independent Auditors’ Report
Referred to in paragraph 18 of the Independent Auditors’ Report of even date to the members of Afcons Infrastructure Limited on the
standalone financial statements as of and for the year ended March 31, 2021
i. (a) The Company is maintaining proper records showing full particulars, including quantitative details and situation, of fixed assets.
(b) The fixed assets are physically verified by the Management according to a phased programme designed to cover all the items
over a period of 3 years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets.
Pursuant to the programme, a portion of the fixed assets has been physically verified by the Management during the year and no
material discrepancies have been noticed on such verification.
(c) The title deeds of immovable properties, as disclosed in Note 3 on fixed assets to the standalone financial statements, are held
in the name of the Company.
ii. The physical verification of inventory have been conducted at reasonable intervals by the Management during the year. The
discrepancies noticed on physical verification of inventory as compared to book records were not material and have been appropriately
dealt with in the books of accounts.
iii. The Company has not granted any loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties
covered in the register maintained under Section 189 of the Act. Therefore, the provisions of Clause 3(iii), (iii)(a), (iii)(b) and (iii)(c) of
the said Order are not applicable to the Company.
iv. In our opinion, and according to the information and explanations given to us, the Company is engaged in providing infrastructural
facilities as specified in schedule VI of the Act and accordingly, the provisions of Section 186, except sub section (1), of the Act are not
applicable to the Company. In our opinion, and according to the information and explanations given to us, the Company has complied
with the provisions of Section 185 and 186(1) of the Companies Act, 2013 in respect of the loans and investments made it. Also refer
note 38 of the standalone financial statements.
v. The Company has not accepted any deposits from the public within the meaning of Sections 73, 74, 75 and 76 of the Act and the Rules
framed there under to the extent notified.
vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under
Section 148(1) of the Act in respect of its products.
We have broadly reviewed the same, and are of the opinion that, prima facie, the prescribed accounts and records have been made
and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are
accurate or complete.
vii. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the
Company is generally regular in depositing undisputed statutory dues, including provident fund, income tax, professional tax and
goods and services tax, though there has been a slight delay in a few cases, and is regular in depositing undisputed statutory
dues, including employees’ state insurance, duty of customs, with the appropriate authorities. Also refer note 30 to the standalone
financial statements regarding management’s assessment on certain matters relating to provident fund.
Further, for the months April, 2020 and May, 2020, the company has paid Goods and Service Tax and filed GST 3B after the
due date but within the timelines allowed by Central Board of Indirect Taxes and Customs, under Notification No. 31/2020 and
Notification No. 36/2020 dated April 3, 2020 on fulfilment of conditions specified therein.
(b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues
of goods and service tax, which have not been deposited on account of any dispute. The particulars of dues of income tax, sales
tax, service tax and value added tax as at March 31, 2021 which have not been deposited on account of a dispute, are as follows:
Name of the statute Nature of Amount Period to which the Forum where the dispute
dues (` In lacs) amount relates is pending
Local Sales Tax Acts applicable in Sales Tax 55.11 FY 1985 to 1990 and 1992 to Appellate Authority – up to
respective States (West Bengal, 1999 Commissioner’s level
Andhra Pradesh, Tamilnadu and
Madhya Pradesh)
Local Sales Tax Acts applicable Sales Tax 0.28 FY 1987 to 1989 and Appellate Authority –
in respective States (West Bengal 1997 to 1998 Tribunal Level
and Andhra Pradesh)
Local Sales Tax Acts applicable in Sales Tax 30.63 FY 1999 to 2000 At High court
respective States (Orissa)
Value Added Tax Acts applicable in Value 398.36 FY 2004 to 2005, 2007 to Appellate Authority – up to
respective states (Delhi, Karnataka, Added Tax 2009 and 2012 to 2017 Commissioner’s level
Madhya Pradesh, Maharashtra,
Orissa, Uttar Pradesh and West
Bengal, Telangana)
Central Sales Tax (Telangana) Central 30.67 FY 2017 to 2019 Yet to be appealed
Sales Tax
The Finance Act 1994 Service Tax 12,639.58 Financial Years 2007 to 2018 Appellate Authority –
Tribunal
The Income Tax Act, 1961 Income Tax 2,086.35 Financial Years 2011 to 2015 Appellate Authority –
Tribunal
Note: For above purpose, only statutory dues payable in India have been considered
34
viii. According to the records of the Company examined by us and the information and explanation given to us, the Company has not
defaulted in repayment of loans or borrowings to any bank or dues to debenture holders as at the balance sheet date. Further, as the
Company does not have any loans or borrowings from Government and financial institutions as at balance sheet date, the provisions
of Clause 3(viii) of the order, to the extent, are not applicable to the Company.
ix. The Company has not raised any moneys by way of initial public offer, further public offer (including debt instruments) and term loans.
Accordingly, the provisions of Clause 3(ix) of the Order are not applicable to the Company.
x. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance
of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we
been informed of any such case by the Management.
xi. The Company has paid/ provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions
of Section 197 read with Schedule V to the Act.
xii. As the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it, the provisions of Clause 3(xii) of the Order
are not applicable to the Company.
xiii. The Company has entered into transactions with related parties in compliance with the provisions of Sections 177 and 188 of the Act.
The details of such related party transactions have been disclosed in the financial statements as required under Indian Accounting
Standard (Ind AS) 24, Related Party Disclosures specified under Section 133 of the Act.
xiv. The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during
the year under review. Accordingly, the provisions of Clause 3(xiv) of the Order are not applicable to the Company.
xv. The Company has not entered into any non-cash transactions with its directors or persons connected with him. Accordingly, the
provisions of Clause 3(xv) of the Order are not applicable to the Company.
xvi. The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the provisions
of Clause 3(xvi) of the Order are not applicable to the Company.

Partner Partner

35
Standalone Balance Sheet as at 31st March, 2021 (` in Crores)

Particulars Note As at As at
No. 31st March, 2021 31st March, 2020
A ASSETS
1 Non-current assets
(a) Property, plant and equipments 3.A 1,958.57 1,867.99
(b) Capital work-in-progress 145.52 17.94
(c) Right-of-use assets 3.C 26.22 43.47
(d) Other Intangible assets 3.B 0.45 0.62
(e) Financial assets
(i) Investments 4 11.92 11.66
(ii) Trade receivables 5 474.36 536.40
(iii) Loans 6 51.96 -
(iv) Other financial assets 7 273.67 278.06
(f) Contract assets 8 1,493.02 1,723.94
(g) Non-current tax assets (net) 11 110.64 155.01
(h) Other non-current assets 8.2 181.11 187.79
Total Non-current Assets 4,727.44 4,822.88
2 Current assets
(a) Inventories 9 886.52 1,019.57
(b) Financial assets
(i) Trade receivables 5 2,365.10 2,286.63
(ii) Cash and cash equivalents 10 363.61 293.59
(iii) Bank balances other than (ii) above 10.1 90.22 108.09
(iv) Loans 6 18.54 60.90
(v) Other financial assets 7 113.26 57.61
(c) Contract assets 8 2,332.89 2,962.55
(d) Other current assets 8.2 946.51 819.57
Total Current Assets 7,116.65 7,608.51
Total Assets (1+2) 11,844.09 12,431.39
B EQUITY AND LIABILITIES
1 Equity
(a) Equity share capital 12 521.97 521.97
(b) Other equity 13 1,498.40 1,393.52
Equity attributable to shareholders of the Company 2,020.37 1,915.49
2 Liabilities
(A) Non-current liabilities
(a) Financial liabilities
(i) Borrowings 14 472.64 572.82
(ii) Trade payables 15
(a) Total outstanding due to micro and small enterprises 4.57 -
(b) Total outstanding due to creditors other than micro and small enterprises 447.69 557.12
(iii) Lease Liabilities 50(i)b 13.12 16.47
(iv) Other financial liabilities 16 248.59 129.46
(b) Contract liabilities 17 1,576.73 1,942.73
(c) Provisions 18 28.80 33.27
(d) Deferred tax liabilities (net) 21.C 211.93 206.08
Total Non-current Liabilities 3,004.07 3,457.95
(B) Current liabilities
(i) Borrowings 20 835.72 936.23
(a) Total outstanding due to micro and small enterprises 344.69 55.56
(b) Total outstanding due to creditors other than micro and small enterprises 2,562.95 3,055.58
(c) Provisions 18 43.33 23.64
(d) Current tax liabilities (net) 19 46.04 17.25
(e) Other current liabilities 17.1 52.11 66.67
Total Current Liabilities 6,819.65 7,057.95
Total Liabilities (A+B) 9,823.72 10,515.90
Total Equity and Liabilities (1+2) 11,844.09 12,431.39
See accompanying notes 1 to 52 forming part of the financial statements
In terms of our report attached For and on behalf of the Board of Directors
For PRICE WATERHOUSE For HDS & ASSOCIATES LLP K.SUBRAMANIAN S.PARAMASIVAN
CHARTERED ACCOUNTANTS LLP CHARTERED ACCOUNTANTS Executive Vice Chairman Managing Director
Firm Registration No. 012754N/N500016 Firm Registration No. W100144 Din:00047592 Din:00058445
SARAH GEORGE SURESH K. JOSHI ASHOK G.DARAK GAURANG M. PAREKH

Partner Partner Chief Financial Officer Company Secretary
Membership No. 045255 Membership No. 030035
Place: Mumbai Place: Mumbai Place: Mumbai
Date: 1st July, 2021 Date: 1st July, 2021 Date: 30th June, 2021
36
Statement of Standalone Profit and Loss for the year ended 31st March, 2021 (` in Crores)
Sr. Particulars Note For the year ended For the year ended
No. No. 31st March, 2021 31st March, 2020
1 Revenue from operations 22 8,930.67 9,254.97
2 Other income 23 223.15 251.04
3 Total income ( 1 + 2 ) 9,153.82 9,506.01
4 Expenses
(a) Cost of material consumed 24 2,404.43 2,514.25
(b) Cost of construction 24.1 3,987.11 4,415.51
(c) Cost of traded goods 25 45.51 50.74
(d) Employee benefits expense 26 867.51 884.18
(e) Finance costs 27 465.53 385.78
(f) Depreciation and amortisation expense 28 245.33 234.04
(g) Other expenses 29 885.17 643.10
Total expenses 8,900.59 9,127.60
5 Profit before tax ( 3 - 4 ) 253.23 378.41
6 Tax expense: 21
(a) Current tax 115.41 129.89
(b) Deferred tax 9.75 1.36
(c) Tax expense/(income) relating to prior year (net) 2.14 5.24
127.30 136.49
7 Profit for the year ( 5 - 6 ) 125.93 241.92
8 Other comprehensive income
A) Items that will not be reclassified to profit or loss
(a) Changes in fair value of equity investment measured at FVTOCI 0.26 (0.40)
(b) Remeasurements of defined benefit plans 1.32 (8.94)
(c) Tax relating to above (0.46) 3.12
B) Items that may be reclassified to profit or loss
(a) Exchange differences on translating the financial statements of a 3.07 (28.28)
foreign operation
4.19 (34.50)
9 Total comprehensive income (net of income tax) for the year (7 + 8) 130.12 207.42
10 Earnings per share (Face value of ` 10 each):
(a) Basic earnings per share (rupees) 17.49 33.61
(b) Diluted earnings per share (rupees) 3.70 7.10


37
Statement of changes in equity for the year ended 31st March, 2021
a) Equity share capital (` in Crores)
Particulars
Balance as at 1st April, 2019 71.97
Changes in equity share capital during the year -
Balance as at 31st March, 2020 71.97
b) Instruments entirely equity in nature

Preference share capital (` in Crores)
Particulars
Changes in preference share capital during the year -
c) Other Equity (` in Crores)

Particulars Reserve and surplus Other comprehensive income Total
Capital Capital Securities Contin- Debenture General Retained Exchange Equity In-
reserve redemption premium gencies redemption reserve earnings differences struments
reserve reserve reserve reserve on through other
translating comprehen-
the financial sive income
statements
of a foreign
operation
Balance as at
1st April, 2019 0.19 0.13 10.28 8.00 42.50 65.70 1,061.97 3.23 19.35 1,211.35
Profit for the year - - - - - - 241.92 - - 241.92
Other comprehensive
income for the year
(Net of Income tax) - - - - - - (5.82) (28.28) (0.40) (34.50)
Total comprehensive
income for the year 0.19 0.13 10.28 8.00 42.50 65.70 1,298.07 (25.05) 18.95 1,418.77
Dividends including
tax thereon - - - - - - (25.25) - - (25.25)
Transferred to / (from)
retained earnings - - - - 10.00 - (10.00) - - -
Balance as at
31st March, 2020 0.19 0.13 10.28 8.00 52.50 65.70 1,262.82 (25.05) 18.95 1,393.52
Balance as at
1st April, 2020 0.19 0.13 10.28 8.00 52.50 65.70 1,262.82 (25.05) 18.95 1,393.52
Other comprehensive
income for the year
(Net of Income tax) - - - - - - 0.86 3.07 0.26 4.19
Total comprehensive
income for the year 0.19 0.13 10.28 8.00 52.50 65.70 1,389.61 (21.98) 19.21 1,523.64
Dividends including
tax thereon - - - - - - (25.24) - - (25.24)
Transfer (from) / to
debenture redemption
reserve - - - - (8.75) - 8.75 - - -
Balance as at 31st
March, 2021 0.19 0.13 10.28 8.00 43.75 65.70 1,373.12 (21.98) 19.21 1,498.40

38
Standalone Cash Flow Statement for the year ended 31st March, 2021 (` in Crores)
Particulars For the year ended For the year ended
31st March, 2021 31st March, 2020
Net cash flow from operating activities
Profit before tax 253.23 378.41
less: Tax expense 127.30 136.49
Profit after tax 125.93 241.92
Adjustments for :
Depreciation and amortisation expense 245.33 234.04
(Profit) / loss on property, plant and equipment sold / scrapped (net) 7.03 8.39
Dividend income (73.66) (49.47)
Interest income recognised in profit or loss (105.20) (28.39)
Insurance claim received (7.22) (68.83)
Finance costs 465.53 385.78
Remeasurement of defined benefit liabilities / (assets) through OCI 0.86 (5.82)
Bad debts / unbilled revenue and sundry debit balances written off 209.14 94.20
Creditors / excess provision written back (2.39) (7.89)
Provision for expected credit loss 16.00 10.89
Provision for projected losses on contract (net) 23.20 8.32
Operating profit before working capital changes 1,031.85 959.63
(Increase) / decrease in trade receivables (including retention monies) (16.43) (728.20)
(Increase) / decrease in inventories 133.05 (201.67)
(Increase) / decrease in contract assets 844.58 (950.22)
(Increase) / decrease in financial assets (124.08) 1.23
(Increase) in non-financial assets (317.29) (501.83)
Increase / (decrease) in trade payables (305.97) 1,067.97
Increase / (decrease) in contract liabilities (520.24) 1,153.28
Increase in financial liabilities 139.45 133.05
(Decrease) / increase in non financial liabilities (22.54) 13.16
Cash from Operations 842.38 946.40
Refund / (Payment) of Income Tax (Net) (48.28) (122.45)
Net cash flow (used in) operating activities 794.10 823.95
Cash flow from investing activities
Payments for property, plant and equipments (452.38) (407.63)
Proceeds from sale of property, plant and equipments 3.72 11.49
Dividend received 73.66 49.47
Deposits with bank (net) 17.87 (89.36)
Interest received 168.42 32.95
Insurance claims received 7.22 68.83
Net cash flow (used in) investing activities (181.49) (334.25)
Cash flow from financing activities
(Repayment) / Proceeds from long-term borrowings 175.00 (47.84)
Repayment of long-term borrowings (96.03) (61.72)
(Repayment) / Proceeds from short term borrowings - net (100.51) 142.04
Finance costs paid (464.27) (386.16)
Principal element of lease payments (net) (31.54) (27.02)
Dividend paid on equity shares (including tax thereon) (Interim) (25.19) (25.19)
Dividend paid on preference shares (including tax thereon) (0.05) (0.06)
Net cash flow (used in) financing activities (542.59) (405.95)
Net increase in cash and cash equivalents 70.02 83.75
Cash and cash equivalents at the beginning of the year 293.59 209.84
Cash and cash equivalents at the end of the year (Refer note 10) 363.61 293.59
Notes
1. The above Cash flow statement has been prepared under the "Indirect Method" set out in Ind As 7 'Cash Flow Statements'.
2. Figures relating to previous year have been recast where necessary to conform to figures of the current year.
39
Standalone Cash Flow Statement for the year ended 31st March, 2021 (Continued)
Net debt reconciliation (` in Crores)
Particulars 31 March, 2021
st
31 March, 2020
st
Cash and cash equivalents 363.61 293.59

Liquid investments 90.22 108.29
Finance lease obligations (27.65) (45.70)
Current borrowings (1,026.04) (1,125.29)
Non-current borrowings (564.64) (485.67)
Net Debt (1,164.50) (1,254.78)
Particulars Other assets Liabilities from financing activities Total

Cash and bank Liquid Finance lease Non-current Current
overdraft investment obligations borrowings borrowings
Net Debt as on 1st April, 2019 209.84 18.73 - (595.23) (983.63) (1,350.29)
Recognised on adoption of Ind As 116 - - (54.04) - - (54.04)
Cash flows 83.75 89.56 - 109.56 (142.04) 140.83
Acquisitions / disposals - finance leases - - 13.28 - - 13.28
Foreign exchange adjustments - - (0.40) - - (0.40)
Interest expense - - (4.54) (69.81) (236.03) (310.38)
Interest paid - - - 69.81 236.41 306.22
Net debt as on 31st March, 2020 293.59 108.29 (45.70) (485.67) (1,125.29) (1,254.78)
Cash flows 70.02 (18.07) - (78.97) 100.51 73.49
Foreign exchange adjustments - - 0.07 - - 0.07
Interest paid - - - 62.61 280.82 343.43
Net debt as on 31st March, 2021 363.61 90.22 (27.65) (564.64) (1,026.04) (1,164.50)

40
Notes forming part of the standalone financial statements as at and for the year ended 31st March, 2021
Note 1: General information
Afcons Infrastructure Limited (the “Company” or “Afcons”) is a limited company incorporated in India. Its parent company is Shapoorji
Pallonji Company Private Limited.
The address of its registered office is “Afcons House”, 16 Shah Industrial Estate, Veera Desai Road, Andheri (West), Mumbai 400 053
and principal place of business is Mumbai, India. The principal activity of the Company and its subsidiaries and control operations (the
“Company”) are infrastructure activities. Afcons has a presence in almost the entire spectrum of infrastructure activities in India and
overseas. The Company is engaged in marine works, highways, bridges, metro works, power houses, tunnels, oil and gas, LNG tanks and
other general civil engineering projects both in India and overseas.
A. Basis of Preparation
i) Compliance with Ind AS
The standalone financial statements of Afcons Infrastructure Limited (“The Company” or “Afcons”) comply in all material aspects
with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian
Accounting Standards) Rules, 2015] and other relevant provisions of the Act.
ii) Historical cost convention
The standalone financial statements have been prepared on the historical cost basis except for certain financial instruments
that are measured at fair values at the end of each reporting period, as explained in the accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date, regardless of whether that price is directly observable or estimated using another
valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics
of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at
the measurement date. Fair value for measurement and/or disclosure purposes in these standalone financial statements is
determined on such a basis, except for leasing transactions that are within the scope of Ind AS 116, and measurements that
have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 or value in use in Ind AS 36.
In addition, for standalone financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on
the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value
measurement in its entirety, which are described as follows:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date;
Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either
directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.
iii) New standards or interpretations adopted by the Company
The Company has applied the following standards and amendments for the first time for the annual reporting period commencing
April 1, 2020:
- Definition of Material – amendments to Ind AS 1 and Ind AS 8
- Definition of a Business – amendments to Ind AS 103
- COVID-19 related concessions – amendments to Ind AS 116
- Interest Rate Benchmark Reform – amendments to Ind AS 109 and Ind AS 107
The amendments listed above did not have any material impact on the current period and are not expected to significantly affect
the future period.
iv) Operating cycle
The standalone balance sheet presents current and non-current assets, and current and non-current liabilities, as separate
classifications. For this purpose, an asset is classified as current if:
 It is expected to be realised, or is intended to be sold or consumed, in the normal operating cycle; or
 It is held primarily for the purpose of trading; or
 It is expected to realise the asset within 12 months after the reporting period; or
 The asset is a cash or equivalent unless it is restricted from being exchanged or used to settle liability for at least 12
months after the reporting period.
All other assets are classified as non-current.
Similarly, a liability is classified as current if:
 It is expected to be settled in the normal operating cycle; or
 It is due to be settled within 12 months after the reporting period; or
 The Company does not have an unconditional right to defer the settlement of the liability for at least 12 months after the
reporting period. Terms of a liability that could result in its settlement by the issue of equity instruments at the option of the
counterparty does not affect this classification.
All other liabilities are classified as non-current.
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Notes forming part of the standalone financial statements as at and for the year ended 31st March, 2021 (Continued)
B. Significant accounting policies
B.1. Goodwill
Goodwill represents the cost of acquired business as established at the date of acquisition of the business in excess of the acquirer’s
interest in the net fair value of the identifiable assets, liabilities and contingent liabilities less accumulated impairment losses, if any.
Goodwill is tested for impairment annually or when events or circumstances indicate that the implied fair value of goodwill is less than
its carrying amount.
For the purposes of impairment testing, goodwill is allocated to each of the Company’s cash-generating units (or groups of cash-
generating units) that is expected to benefit from the synergies of the combination.
A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an
indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than its carrying amount, the
impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of
the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised directly in
profit or loss. An impairment loss recognised for goodwill is not reversed in subsequent periods.
On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or
loss on disposal.
B.2. a) Interests in Jointly Controlled Operations
A Jointly Controlled Operations is a joint arrangement whereby the parties that have joint control of the arrangement have rights to
the assets and obligations for the liabilities, relating to the arrangements. Joint control is the contractually agreed sharing of control
of an arrangement, which exist only when decisions about the relevant activities require unanimous consent of the parties sharing
control.
When a Company entity undertakes its activities under joint operations, the Company as a joint operator recognises in relation to its
interest in a joint operation:
a) Its assets, including its share of any assets held jointly;
b) Its liabilities, including its share of any liabilities incurred jointly;
c) Its revenue from the sale of the output arising from the joint operation;
d) Its share of the revenue from the sale of the output by the joint operation and
e) Its expenses, including its share of any expenses incurred jointly.
The Company accounts for the assets, liabilities, revenues and expenses relating to its interest in a joint operation in accordance
with the Ind AS applicable to the particular assets, liabilities, revenues and expenses.
When a Company entity transacts with a joint operation in which a Company entity is a joint operator (such as a sale or contribution
of assets), the Company is considered to be conducting the transaction with the other parties to the joint operation, and gains and
losses resulting from the transactions are recognised in the Company’s standalone financial statements only to the extent of the
other parties’ interests in the joint operation.
When a Company entity transacts with a joint operation in which a Company entity is a joint operator (such as a purchase of assets),
the Company does not recognise its share of the gains and losses until it resells those assets to a third party.
B.2. b) Interest in unincorporated Joint ventures
When the Company enters into a joint venture (JV) arrangement with other parties and an unincorporated vehicle is formed which
has a separate status for tax purposes (i.e. Association of person/Body of individual etc.) and if as per the terms of agreement, the
Company remains liable for all the liabilities of the unincorporated vehicle and is also responsible for funding or contributing assets
to the unincorporated vehicle for construction activity, this unincorporated vehicle (also considered and called as Jointly Controlled
Operation) has been considered as an extension of Company from accounting point of view and assets, liabilities, revenue and
expenses have been consolidated on the basis of its share in the operations in the separate financial statement of the Company.
B 3. Revenue recognition
Sale of goods
Revenue from sale of goods is recognised upon satisfaction of performance obligations, i.e. at a point of time, which occurs when the
control is transferred to the customer. Customers obtain control as per the incoterms. Invoices are issued according to contractual
terms and are usually payable as per the credit period agreed with the customer.
Rendering of services:
Revenue from providing services is recognised in the accounting period in which the services are rendered.
Invoices are issued according to contractual terms and are usually payable as per the credit period agreed with the customer.
Construction contracts:
The Company recognises revenue from engineering, procurement and construction contracts (‘EPC’) over the period of time, as
performance obligations are satisfied over time due to continuous transfer of control to the customer. EPC contracts are generally
accounted for as a single performance obligation as it involves complex integration of goods and services.
The performance obligations are satisfied over time as the work progresses. The Company recognises revenue using input method
(i.e. Percentage-of-Completion Method), based primarily on contract cost incurred to date compared to total estimated contract
costs. Changes to total estimated contract costs, if any, are recognised in the period in which they are determined as assessed at the
contract level. If the consideration in the contract includes price variation clause or there are amendments in contracts, the Company
estimates the amount of consideration to which it will be entitled in exchange for work performed.
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Due to the nature of the work required to be performed on many of the performance obligations, the estimation of total revenue and
cost at completion is complex, subject to many variables and requires significant judgment. Variability in the transaction price arises
primarily due to liquidated damages, price variation clauses, changes in scope, incentives, discounts, if any. The Company considers
its experience with similar transactions and expectations regarding the contract in estimating the amount of variable consideration to
which it will be entitled and determining whether the estimated variable consideration should be constrained. The Company includes
estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognised will
not occur when the uncertainty associated with the variable consideration is resolved. The estimates of variable consideration are
based largely on an assessment of anticipated performance and all information (historical, current and forecasted) that is reasonably
available. Consideration payable on behalf of customer is reduced from the transaction price.
Progress billings are generally issued upon completion of certain phases of the work as stipulated in the contract. Billing terms of the
over-time contracts vary but are generally based on achieving specified milestones. The difference between the timing of revenue
recognised and customer billings result in changes to contract assets and contract liabilities. Payment is generally due upon receipt
of the invoice, payable within 90 days or less. Contractual retention amounts billed to customers are generally due upon expiration
of the contract period.
The contracts generally result in revenue recognised in excess of billings which are presented as contract assets on the statement
of financial position. Amounts billed and due from customers are classified as receivables on the statement of financial position. The
portion of the payments retained by the customer until final contract settlement is not considered a significant financing component
since it is usually intended to provide customer with a form of security for Company’s remaining performance as specified under
the contract, which is consistent with the industry practice. Contract liabilities represent amounts billed to customers in excess
of revenue recognised till date. A liability is recognised for advance payments and it is not considered as a significant financing
component since it is used to meet working capital requirements at the time of project mobilization stage. The same is presented as
contract liability in the statement of financial position.
Estimates of revenues, costs or extent of progress toward completion are revised if circumstances change. Any resulting increases
or decreases in estimated revenues or costs are reflected in profit or loss in the period in which the circumstances that give rise to
the revision become known by management.
For construction contracts the control is transferred over time and revenue is recognised based on the extent of progress towards
completion of the performance obligations. When it is probable that total contract costs will exceed total contract revenue, the
expected loss is recognised as an expense immediately. The percentage of completion is based primarily on contract cost incurred
to date compared to total estimated contract cost for each contract in order to reflect the effective completion of the project. This
percentage of completion could be based on technical milestones or as per the contractual terms specified. A construction contract
is considered completed when the last technical milestone is achieved, which occurs upon contractual transfer of ownership of the
asset.
Dividend and interest income
Dividend income from investments is recognised when the shareholder’s right to receive payment has been established (provided
that it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably).
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the
amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and
at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected
life of the financial asset to that asset’s net carrying amount on initial recognition.
B.4. Foreign currencies
(i) Functional and presentation currency
Items included in the standalone financial statements of each of the Company’s entities are measured using the currency of
the primary economic environment in which the entity operates (‘the functional currency’). The standalone financial statement
is presented in Indian Rupee (INR), which is Company’s functional and presentation currency.
A) Foreign Branches of the Company :-
1. Income and expense items are translated at the exchange rates at the dates of the transactions and all resulting exchange
differences are recognised in the Statement of Profit and Loss.
2. Non-monetary assets and liabilities are measured in terms of historical cost in foreign currencies and are not translated at
the rates prevailing at the reporting period. Monetary assets and liabilities are translated at the rates prevailing at the end
of each reporting period. Exchange differences on translations are recognised in the Consolidated Statement of Profit and
Loss.
(ii) Transactions and balances
In preparing the standalone financial statements of each individual Company entity, transactions in currencies other than
the entity’s functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the
transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates
prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at
the rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical
cost in a foreign currency are not retranslated.
Any exchange difference arising on settlement / restatement of long-term foreign currency monetary items recognized in the
financial statements until the year ended March 31, 2016, are capitalised as a part of the depreciable fixed assets to which the
monetary item relates and depreciated over the remaining useful life of such assets.
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Exchange differences on monetary items are recognised in profit or loss in the period in which they arise except for:
• Exchange differences on transactions entered into in order to hedge certain foreign currency risks; and
• Exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither
planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognised
initially in other comprehensive income and reclassified from equity to profit or loss on repayment of the monetary items.
For the purposes of presenting the financial statements, the assets and liabilities of the Company’s foreign operations are
translated into Indian Rupees using exchange rates prevailing at the end of each reporting period. Income and expense items
are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in
which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are recognised
in other comprehensive income and accumulated in equity (and attributed to non-controlling interests as appropriate).
On the disposal of a foreign operation (i.e. a disposal of the Company’s entire interest in a foreign operation, a disposal involving
loss of control over a foreign operation, or a partial disposal of an interest in a foreign operation of which the retained interest
becomes a financial asset), all of the exchange differences accumulated in equity in respect of that operation attributable to the
owners of the Company are reclassified to profit or loss.
In addition, in relation to a partial disposal of a foreign operation that does not result in the Company losing control over the
foreign operation, the proportionate share of accumulated exchange differences are re-attributed to non-controlling interests
and are not recognised in profit or loss. For all other partial disposals (i.e. partial disposals of associates or joint arrangements
that do not result in the Company losing significant influence or joint control), the proportionate share of the accumulated
exchange differences is reclassified to profit or loss.
Goodwill and fair value adjustments to identifiable assets acquired and liabilities assumed through acquisition of a foreign
operation are treated as assets and liabilities of the foreign operation and translated at the rate of exchange prevailing at the
end of each reporting period. Exchange differences arising are recognised in other comprehensive income.
B.5. Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that
necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until
such time as the assets are substantially ready for their intended use or sale.
Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is
deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
B.6. Employee benefits
B.6.1 Retirement benefit costs and termination benefits
Employee benefits include provident fund, superannuation fund, employee state insurance scheme, gratuity fund, compensated
absences and leave encashment.
Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service
entitling them to the contributions.
For defined retirement benefit plans, the cost of providing benefits is determined using the Projected Unit Credit Method, with
actuarial valuations being carried out at the end of each annual reporting period. 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.
Remeasurement 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 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 benefit costs are categorised as follows:
• Service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);
• Net interest expense or income; and
• Re-measurement
The Company presents the first two components of defined benefit costs in profit or loss in the line item ‘Employee benefits expense’.
Curtailment gains and losses are accounted for as past service costs.
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market
yields at the end of the reporting period on government bonds.
The retirement benefit obligation recognized in the special purpose financial statements represents the actual deficit or surplus in the
Company’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits
available in the form of refunds from the plans or reductions in future contributions to the plans.
A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the termination
benefit and when the entity recognises any related restructuring costs.
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B.6.2 Short-term and other long-term employee benefits
A liability is recognised for benefits accruing to employees in respect of salaries, wages and other short-term employee benefits
in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that
service.
Provision for leave benefits to employees is based on actuarial valuation done by Projected Accrued Benefit Method at the reporting
date.
B.7. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
B.7.1 Current tax
The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable
income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences
and to unused tax losses
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting
period in the countries where the company operates and generates taxable income. Management periodically evaluates positions
taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions
where appropriate on the basis of amounts expected to be paid to the tax authorities.
B.7.2 Deferred tax
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the standalone financial statements. However, deferred tax liabilities are not recognized if
they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an
asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting profit
nor taxable profit (tax loss). Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially
enacted by the end of the reporting period and are expected to apply when the related deferred income tax is realised or the deferred
income tax liability is settled.
Deferred tax assets are recognized for all deductible temporary differences and unused tax losses only if it is probable that future
taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax liabilities are not recognized for temporary differences between the carrying amount and tax bases of investments
in branches and interest in joint arrangements where the Company is able to control the timing of the reversal of the temporary
differences and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets are not recognized for temporary differences between the carrying amount and tax bases of investments in
branches and interest in joint arrangements where it is not probable that the differences will reverse in the foreseeable future and
taxable profit will not be available against which the temporary difference can be utilised.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and
when the deferred tax balances relate to the same taxation authority. 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 recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive
income or directly in equity. In this case, the tax is also recognized in other comprehensive income.
B.7.3 Current and deferred tax for the year
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive
income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or
directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax
effect is included in the accounting for the business combination.
B.8 Property, plant and equipment
Property, plant and equipment are carried at cost less accumulated depreciation and impairment losses, if any. The cost of property,
plant equipment comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than
those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its
intended use, other incidental expenses and interest on borrowings attributable to acquisition of qualifying fixed assets up to the date
the asset is ready for its intended use. It also includes initial estimate of the costs of dismantling and removing the item and restoring
the site on which it is located. Replacement cost of an item of property, plant and equipment is capitalised if replacement meets the
recognition criteria.
Carrying amount of items replaced is derecognised. Cost of major inspections is recognised in the carrying amount of property,
plant and equipment as a replacement, if recognition criteria are satisfied and any remaining carrying amount of the cost of previous
inspection is derecognised. Machinery spares which can be used only in connection with an item of fixed asset and whose use is
expected to be irregular are capitalised (if they meet the asset recognition criteria) and depreciated over the useful life of the principal
item of the relevant assets. Subsequent expenditure on property, plant and equipments after its purchase / completion is capitalised
only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of
performance.
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Estimated useful lives of the assets are as follows:
Buildings - 60 years
Furniture and fixtures - 10 years
Vehicles - 10 years
Office equipments - 5 years
Freehold land is not depreciated
For following assets estimated useful life is different than the useful life prescribed in schedule II to the Companies Act, 2013 and
has been assessed on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating
conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance
support, etc.
Plant & Equipment (except Tunnel Boring Machines) which includes Cranes < 100 mt., Concreting, Crushing, Piling, Road making,
Laboratory & Welding Equipments, Floating Equipments - 20 Years.
Tunnel Boring Machines - Length of the tunnel bored over life of the construction project for where it is used.
Cost of shuttering materials, issued to jobs, is charged off equally over a period of four years.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise
from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment
is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
B.8.1 Capital work-in-progress
Property, plant and equipment that are not yet ready for their intended use are carried at cost, comprising direct cost, related
incidental expenses and attributable interest.
B.9 Intangible assets
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and
accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated
useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being
accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost
less accumulated impairment losses. Useful life is as below:
Computer software - 5 years
An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or
losses from derecognition of an intangible asset, measured at the difference between the net disposal proceeds and the carrying
amount of the assets, are recognised in profit or loss when the asset is derecognised.
B.10 Impairment of tangible and intangible assets other than goodwill
At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to determine
whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate
the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which
the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated
to individual cash-generating units, or otherwise they are allocated to the smallest Company of cash-generating units for which a
reasonable and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future
cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount
of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit
or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation
decrease.
When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the
revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that
would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A
reversal of an impairment loss is recognised immediately in profit or loss.
B.11 Inventories
Inventories are stated at the lower of cost and net realisable value. Net realisable value represents the estimated selling price for
inventories less all estimated costs of completion and costs necessary to make the sale. Cost is determined on the basis of weighted
average method.
B.12 Provisions and contingent liabilities
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable
that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of
the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using
the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect
of the time value of money is material).
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A contingent liability is disclosed where there is a possible obligation or present obligations that may, but probably will not, require
an outflow of resources. Contingent assets are not recognised. Information on contingent liabilities is disclosed in the notes to
standalone financial statements unless the possibility of an outflow of resources embodying economic benefits is remote.
B.13 Financial instruments
Financial assets and financial liabilities are recognised when a Company becomes a party to the contractual provisions of the
instruments.
Initial Recognition
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through
profit or loss). Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through
profit or loss are recognised immediately in statement of profit and loss.
B.14 Financial assets
Classification and subsequent measurement of financial assets
B.14.1 Classification of financial assets
The Company classifies its financial assets in the following measurement categories:
• those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and
• those measured at amortised cost.
The classification is done depending upon the Company’s business model for managing the financial assets and the contractual
terms of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income.
For investments in debt instruments, this will depend on the business model in which the investment is held.
The Company reclassifies debt investments when and only when its business model for managing those assets changes.
B.14.2 Subsequent measurement
Debt instruments
Subsequent measurement of debt instruments depends on the Company’s business model for managing the asset and the cash flow
characteristics of the asset. There are two measurement categories into which the Company classifies its debt instruments:
Amortised cost
Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and
interest are measured at amortised cost e.g. Debentures, Bonds etc. A gain or loss on a debt investment that is subsequently
measured at amortised cost is recognised in profit or loss when the asset is derecognised or impaired. Interest income from these
financial assets is included in investment income using the effective interest rate method.
Fair value through other comprehensive income
Debt instruments that meet the following conditions are subsequently measured at fair value through other comprehensive income
(except for debt instruments that are designated as at fair value through profit or loss on initial recognition):
• the asset is held within a business model whose objective is achieved both by collecting contractual cash flows and selling
financial assets; and
• the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
Fair value through profit or loss
Assets that do not meet the criteria for amortised cost or fair value through OCI, are measured at fair value through profit or loss e.g.
investments in mutual funds. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss is
recognised in profit or loss and presented net in the statement of profit and loss within other gains/(losses) in the period in which it
arises.
Equity instruments
Investments in equity instruments at FVTPL
Investments in equity instruments are classified as at FVTPL, unless the Company irrevocably elects on initial recognition to present
subsequent changes in fair value in other comprehensive income for equity instruments which are not held for trading.
Investments in equity instruments at FVTOCI
On initial recognition, the Company can make an irrevocable election (on an instrument-by-instrument basis) to present the
subsequent changes in fair value in other comprehensive income. This election is not permitted if the equity investment is held for
trading. These elected investments are initially measured at fair value plus transaction costs. Subsequently, they are measured at
fair value with gains and losses arising from changes in fair value recognised in other comprehensive income and accumulated in
the reserve for ‘equity instruments through other comprehensive income’. The cumulative gain or loss is not reclassified to profit or
loss on disposal of the investments.
B.14.3 Impairment of financial assets
The Company applies the expected credit loss model for recognising impairment loss on financial assets measured at amortised
cost, lease receivables, trade receivables, other contractual rights to receive cash or other financial asset.
For trade receivables, the Company measures the loss allowance at an amount equal to lifetime expected credit losses.
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Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables, the Company has used a
practical expedient as permitted under Ind AS 109. This expected credit loss allowance is computed based on a provision matrix
which takes into account historical credit loss experience and adjusted for forward-looking information.
B.14.4 Effective interest method
Income is recognised on an effective interest basis for debt instruments other than those financial assets classified as FVTPL.
Interest income is recognised in the statement of profit and loss.
B.14.5 De-recognition of financial assets
A financial asset is derecognised only when Company has transferred the rights to receive cash flows from the financial asset.
Where the entity has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of
ownership of the financial asset. In such cases, the financial asset is derecognised.
On derecognition of a financial asset in its entirety, the difference between the asset’s carrying amount and the sum of the
consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive income
and accumulated in equity is recognised in profit or loss if such gain or loss would have otherwise been recognised in profit or loss
on disposal of that financial asset.
B.14.6 Foreign exchange gains and losses
The fair value of financial assets denominated in a foreign currency is determined in that foreign currency and translated at the spot
rate at the end of each reporting period.
For foreign currency denominated financial assets measured at amortised cost and FVTPL, the exchange differences are recognised
in profit or loss except for those which are designated as hedging instruments in a hedging relationship.
B.15 Financial liabilities and equity instruments
Classification as debt or equity
Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the
substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.
Equity instruments issued by a Company are recognised at the proceeds received, net of direct issue costs.
Repurchase of the Company’s own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in
profit or loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments.
Treasury shares
In the standalone financial statements, when any entity within the Company purchases the Company’s ordinary shares, the
consideration paid, including any directly attributable incremental cost, is presented as a deduction from total equity, until they are
cancelled, sold or reissued. When treasury shares are sold or reissued subsequently, the amount received is recognised as an
increase in equity and the resulting surplus or deficit on the transaction is transferred to/ from share premium.
B.15.1 Classification and subsequent measurement
Financial liabilities are measured at amortised cost.
Financial liabilities (including borrowings and trade and other payables) are subsequently measured at amortised cost using the
effective interest method. The effective interest method is a method of calculating the amortised cost of a financial liability and of
allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash
payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and
other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net
carrying amount on initial recognition.
B.15.2 De-recognition of financial liabilities
The Company derecognises financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or have
expired. An exchange with a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the
original financial liability and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an existing
financial liability (whether or not attributable to the financial difficulty of the debtor) is accounted for as an extinguishment of the
original financial liability and the recognition of a new financial liability. The difference between the carrying amount of the financial
liability derecognised and the consideration paid and payable is recognised in profit or loss.
For financial liabilities that are denominated in a foreign currency and are measured at amortised cost at the end of each reporting
period, the foreign exchange gains and losses are determined based on the amortised cost of the instruments and are recognised
in ‘Other income’ as ‘Net foreign exchange gains/(losses)’.
B.16 Derivative financial instruments
The Company enters into derivative financial instruments viz. foreign exchange forward contracts, interest rate swaps and cross
currency swaps to manage its exposure to interest rate, foreign exchange rate risks and commodity prices. The Company does not
hold derivative financial instruments for speculative purposes.
Derivatives are initially recognised at fair value at the date the derivative contracts are entered into and are subsequently remeasured
to their fair value at the end of each reporting period. The resulting gain or loss is recognised in profit or loss immediately.
48
B.17 Leases:
Till 31st March, 2019:
Leases (including lease arrangements for land) are classified as finance leases whenever the terms of the lease transfer substantially
all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
Operating lease (The Company as lessee): Lease payments under an operating lease are recognized as expense in the statement
of profit and loss, on a straight-line or other systematic basis over the lease term. Where the rentals are structured solely to increase
in line with expected general inflation to compensate for the Lessor’s expected inflationary cost increases, such increases are
recognised in the year in which such liability accrues.
Operating lease (The Company as lessor): Rental income from operating lease is recognised on straight-line basis over the term of
the relevant lease. Initial direct cost incurred in negotiating and arranging an operating lease are added to the carrying amount of
leased asset and recognised on a straight-line basis over the lease term.
With effect from 1st April, 2019:
The Company as lessee:
From April 1 2019, leases are recognised as a right-of-use assets and a corresponding liability at the date at which the leased asset
is available for use by the company. Contracts may contain both lease and non-lease components. The Company has elected not to
separate lease and non-lease components and instead accounts for these as a single lease component.
1) Lease Liabilities
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present
value of the lease payments. The lease payments include fixed payments (including in substance fixed payments) less any
lease incentives receivable, variable lease payments that 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. Lease payments to be made under reasonably certain
extension options are also included in the measurement of the liability. The lease payments are discounted using the lessee’s
incremental borrowing rate (since the interest rate implicit in the lease cannot be easily determined). Incremental borrowing
rate is the rate of interest that the Company would have to pay to borrow over a similar term, and a similar security, the funds
necessary to obtain an asset of a similar value to the right of-use asset in a similar economic environment.
Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease
period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
2) Right-of-use assets
Right-of-use assets are measured at cost comprising the amount of the initial measurement of lease liability and lease payments
made before the commencement date.
Right-of-use assets are depreciated over the lease term on a straight-line basis. Right-of-use assets are measured at cost, less
any accumulated depreciation and impairment losses, and adjusted for any re-measurement of lease liabilities.
3) Short term leases and leases of low value assets
Payments associated with short-term leases of equipment and all leases of low-value assets are recognised on a straight-line
basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets
comprise assets having value less than ` 350,000.
The Company as 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 and is included
in revenue in the statement of profit or loss due to its operating nature. 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.
B.18 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss) for the year by the weighted average number of equity shares
outstanding during the year.
Ordinary shares to be issued upon conversion of a mandatorily convertible instrument are included in the calculation of basic
earnings per share from the date the contract is entered into. Diluted earnings per share is computed by dividing the profit / (loss)
for the year as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the
dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share
and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity
shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per
share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the
period, unless they have been issued at a later date.
49
B.19 Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.
The board of directors of Afcons Infrastructure Limited assesses the financial performance and position of the Company and makes
strategic decisions. The board of directors, which has been identified as being the chief operating decision maker, consists of the
key managerial personnel and the directors who are in charge of the corporate planning. Refer note 34 for segment information
presented.
B.20 Credit Risk
The Company assess on a forward-looking basis the expected credit losses associated with its assets measured at amortised
cost which includes lease receivables, trade receivables, other contractual rights to receive cash etc. The impairment methodology
applied depends on whether there has been a significant increase in the credit risk since initial recognition of these financial assets.
For the evaluation, the Company considers historical credit loss experience and adjusted for forward-looking information. Note 48.8
details how the Company determines whether there has been a significant increase in credit risk.
B.21 Government grants, subsidies and export incentives
Government grants are not recognised until there is reasonable assurance that the Company will comply with the conditions attaching
to them and that the grants will be received.
Government grants are recognised in profit or loss on a systematic basis over the periods in which the Company recognises as
expenses the related costs for which the grants are intended to compensate.
C. Critical estimates and judgements
a) Revenue recognition
The Company’s revenue recognition policy, which is set out in Note B.3, is central to how the Company values the work it has
carried out in each financial year.
These policies require forecasts to be made of the outcomes of long-term construction services, which require assessments
and judgements to be made on changes in scope of work and claims and variations.
Across construction services there are several long-term and complex projects where the Company has incorporated significant
judgements over contractual entitlements. The range of potential outcomes could result in a materially positive or negative
change to underlying profitability and cash flow.
Estimates are also required with respect to the below mentioned aspects of the contract.
• Determination of stage of completion;
• Estimation of project completion date;
• Provisions for foreseeable losses; and
• Estimated total revenues and estimated total costs to completion, including claims and variations.
These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.
Revenue and costs in respect of construction contracts are recognized by reference to the stage of completion of the contract
activity at the end of the reporting period, measured based on the proportion of contract costs incurred for work performed to
date relative to the estimated total contract costs, except where this would not be representative of the stage of completion.
Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably
and its receipt is considered probable. When it is probable that total contract costs will exceed total contract revenue, the
expected loss is recognized as an expense immediately.
b) Taxation
The Company is subject to tax in a number of jurisdictions and judgement is required in determining the worldwide provision for
income taxes. The Company provides for future liabilities in respect of uncertain tax positions where additional tax may become
payable in future periods and such provisions are based on management’s assessment of exposures.
The uncertain tax positions are measured at the amount expected to be paid to taxation authorities when the Company
determines that the probable outflow of economic resources will occur. Where the final tax outcome of these matters is different
from the amounts that were initially recorded, such differences will impact the current and deferred income tax assets and
liabilities in the period in which such determination is made.
c) Contingencies
In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. There
are certain obligations which managements have concluded based on all available facts and circumstances are not probable
of payment or difficult to quantify reliably and such obligations are treated as contingent liabilities and disclosed in the notes
but are not provided for in the standalone financial statements. Although there can be no assurance of the final outcome of the
legal proceedings in which the Company is involved it is not expected that such contingencies will have material effect on its
financial position or profitability.
d) Useful lives of property, plant and equipment
As described in note B.8 above, the Company reviews the estimated useful lives of property, plant and equipment and residual
values at the end of each reporting period. There was no change in the useful life and residual values of property, plant and
equipment as compared to previous year.
50
e) Impairment of trade receivables and contract assets

The Company has recognised trade receivables with a carrying value of ` 2,839.46 Crores (as at March 31, 2020: ` 2,823.03
Crores). The recoverability of trade receivables is regularly reviewed in the light of the available economic information specific
to each receivable and specific provisions are recognised for balances considered to be irrecoverable.
The impairment provisions for trade receivables are based on assumptions about risk of default and expected loss rates.
The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based
on Company’s past history, credit risk, existing market conditions as well as forward looking estimates at the end of each
reporting period. The expected credit loss allowance for trade receivables is made based on a provision matrix. The provision
matrix takes into account historical credit loss experience and adjusted for forward-looking information. Where the actual cash
shortfalls vary from those estimated, these could impact the level of profit or loss recognised by the Company. The same
policies are followed for contract assets.
f) Retirement benefit obligations
Details of the Company’s defined benefit pension schemes are set out in Note B.6, including tables showing the sensitivity of
the pension scheme obligations and assets to different actuarial assumptions.
The present value of defined benefit obligations is determined by discounting the estimated future cash outflows by reference
to market yields at the end of reporting period that have terms approximating to the terms of the related obligation.
g) Arbitration claims
The forecast profit on contracts includes key judgements over the expected recovery of costs arising from the following:
variations to the contract requested by the customer, compensation events, and claims made by the Company for delays
or other additional costs for which the customer is liable. These claims could result in disputes that get settled through an
arbitration process wherein the outcome of these awards including the timing and the amount (including interest thereon)
requires a reasonable degree of estimation. The inclusion of these amounts requires estimation of their recoverability and could
impact the level of profit or loss recognized by the Company.
h) Classification of assets / liabilities as Current and Non-current
The balance sheet presents current and non-current assets and current and non-current liabilities, as separate classifications.
This classification involves managements estimate on expected realization of assets and settlement of liabilities within 12
i) Classification of Joint Arrangement as a Jointly Controlled Operations /Joint Venture
A Jointly Controlled Operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights
to the assets and obligations for the liabilities, relating to the arrangements. Joint control is the contractually agreed sharing
of control of an arrangement, which exist only when decisions about the relevant activities require unanimous consent of the
parties sharing control.
When an entity undertakes its activities under joint operations, the Company as a joint operator recognises in relation to its
interest in a joint operation:
Accordingly, the Company has evaluated all its joint arrangements based on the contractual arrangements entered into between
the parties to the joint arrangements for execution of the project irrespective of the legal form.
Note No. 2. Details of Jointly Controlled Operations at the end of the reporting period are as follows.
Name of Jointly Controlled Operations Country of Place of Activity Principle Activity Percentage
Incorporation holding-share
Afcons Vijeta PES Joint Venture India India Infrastructure 100%
Afcons Sibmost Joint Venture India India Infrastructure 100%
Dahej Standby Jetty Project Undertaking India India Infrastructure 100%
Afcons Gunanusa Joint Venture India India Infrastructure 100%
Afcons Pauling Joint Venture India India Infrastructure 100%
Afcons SMC Joint Venture India Tanzania Infrastructure 100%
Afcons - Vijeta Joint Venture India India Infrastructure 100%
Afcons JAL Joint Venture India India Infrastructure 100%
Transtonnelstroy Afcons Joint Venture India India Infrastructure 99%
Afcons KPTL Joint Venture India Bangladesh Infrastructure 51%
Afcons Sener LNG Construction Projects Pvt.Ltd. India India Infrastructure 49%
Ircon Afcons Joint Venture India Bangladesh Infrastructure 47%
Strabag AG Afcons Joint Venture India India Infrastructure 40%
Afcons Infrastructure Ltd and Vijeta Projects and
India Tanzania Infrastructure 100%
Infrastructures Ltd Joint Venture
51
Note No 3. Property, plant and equipments
A. Tangible assets (` in Crores)
Particulars Gross block Depreciation Net Block
Balance as at Additions Disposals Balance as at Balance as at Depreciation for Disposals Balance as at Balance as at
1st April, 2020 31st March, 2021 1st April, 2020 the year 31st March, 2021 31st March, 2021
(a) Freehold land 204.47 - - 204.47 - - - - 204.47
(b) Buildings 52.39 - - 52.39 18.62 1.11 - 19.73 32.66
(c) Plant and equipments 2,255.69 213.44 (21.39) 2,447.74 1,006.89 120.05 (11.73) 1,115.21 1,332.53
(d) Furniture and fixtures 52.77 10.19 (2.60) 60.36 19.98 5.12 (2.14) 22.96 37.40
(e) Vehicles 38.03 2.65 (0.20) 40.48 16.97 3.91 (0.20) 20.68 19.80
(f) Office equipments 57.09 4.66 (11.31) 50.44 40.22 6.05 (10.70) 35.57 14.87
(g) Leasehold improvements 2.79 - - 2.79 2.79 - - 2.79 -
(h) Floating equipments 257.76 11.33 (1.07) 268.02 71.26 15.45 (1.05) 85.66 182.36
(i) Laboratory equipments 3.98 0.09 - 4.07 0.86 0.18 - 1.04 3.03
(j) Shuttering materials 240.59 57.24 - 297.83 159.41 50.33 - 209.74 88.09
(k) Accessories and attachments 85.73 16.16 - 101.89 46.30 12.23 - 58.53 43.36
Total 3,251.29 315.76 (36.57) 3,530.48 1,383.30 214.43 (25.82) 1,571.91 1,958.57
52
Previous year (` in Crores)
Balanceas at Additions Disposals Balance as at Balanceas at Depreciation for Disposals Balance as at Balance as at
1st April, 2019 31st March, 2020 1st April, 2019 the year 31st March, 2020 31st March, 2020
(a) Freehold land 204.47 - - 204.47 - - - - 204.47
(b) Buildings 42.34 10.05 - 52.39 17.55 1.07 - 18.62 33.77
(c) Plant and equipments 2,031.55 296.51 (72.37) 2,255.69 951.90 109.86 (54.87) 1,006.89 1,248.80
(e) Vehicles 36.24 2.36 (0.57) 38.03 12.90 4.53 (0.46) 16.97 21.06
(h) Floating equipments 218.26 39.50 - 257.76 56.85 14.41 - 71.26 186.50
(j) Shuttering materials 186.42 54.48 (0.31) 240.59 106.46 52.95 - 159.41 81.18
(k) Accessories and attachments 72.34 13.74 (0.35) 85.73 35.84 10.46 - 46.30 39.43
Total 2,896.66 434.39 (79.76) 3,251.29 1,238.90 204.28 (59.88) 1,383.30 1,867.99
Notes:
(1) Freehold land with a carrying amount of ` 204.47 crores (as at 31st March 2020 ` 204.47 crores) has been secured by equitable mortgage with consortium banks. Refer Note No. 20.
Buildings carrying amount of ` 32.66 crores (as at 31st March 2020 ` 33.77 crores) has been secured by equitable mortgage with consortium banks. Refer Note No. 20.
Movable plant and machinery, construction equipments, machinery spares, tools and accessories with a carrying amount of ` 1595.95 crores (as at 31st March 2020 ` 1,515.78 crores) has
been secured by way of hypothecation in favour of term lenders and consortium banks have been secured through indenture of mortgage. Refer Note No. 14.
Note No. 3. Property, plant and equipments (continued)
B. Other Intangible assets (` in Crores)
Particulars Gross block (At cost) Amortisation Net Block
Balance as at Additions Disposals Balance as at Balance as at Amortisation Disposals Balance as at Balance as at
1st April, 2020 31st March, 2021 1st April, 2020 for the year 31st March, 2021 31st March, 2021
Computer software - acquired 12.92 - - 12.92 12.30 0.17 - 12.47 0.45
Total 12.92 - - 12.92 12.30 0.17 - 12.47 0.45
Previous year
Computer software - acquired 12.93 - (0.01) 12.92 11.80 0.51 (0.01) 12.30 0.62
Total 12.93 - (0.01) 12.92 11.80 0.51 (0.01) 12.30 0.62
C. Right-of-use assets (` in Crores)

Balance as at Additions Deletions due Balance as at Balance as at Depreciation Depreciation Balance as at Balance as at
1st April, 2020 to discontinued 31st March, 2021 1st April, 2020 for the year on deletions 31st March, 2021 31st March, 2021
agreements
Land 20.08 11.28 - 31.36 7.47 8.50 - 15.97 15.39
53
Buildings 52.64 3.28 (1.08) 54.84 21.78 22.79 (0.56) 44.01 10.83
Total 72.72 14.56 (1.08) 86.20 29.25 31.29 (0.56) 59.98 26.22
Previous year
Balance as at Additions Deletions due Balance as at Balance as at Depreciation Depreciation Balance as at Balance as at
1st April, 2019 to discontinued 31st March, 2020 1st April, 2019 for the year on deletions 31st March, 2020 31st March, 2020
agreements
Land 15.45 4.63 - 20.08 - 7.47 - 7.47 12.61
Buildings 38.59 14.61 (0.56) 52.64 - 21.78 - 21.78 30.86
Total 54.04 19.24 (0.56) 72.72 - 29.25 - 29.25 43.47
Critical judgements in determining the lease term
In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension
options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). For leases of Land, Office Premises, Houses
and Godowns the following factors are normally the most relevant:
- If there are significant penalties to terminate (or not extend), the Company is typically reasonably certain to extend (or not terminate).
- Otherwise, the Company considers other factors including historical lease durations and the costs and business disruption required to replace the leased asset.
- Most extension options in office leases have not been included in the lease liability, because the Company could replace the assets without significant cost or business disruption.
- As at 31st March 2021, potential future cash outflows have not been included in the lease liability because it is not reasonably certain that the leases will be extended (or not terminated) is not
material in nature.
The lease term is reassessed if an option is actually exercised (or not exercised) or the Company becomes obliged to exercise (or not exercise) it. The assessment of reasonable certainty is only
revised if a significant event or a significant change in circumstances occurs, which affects this assessment, and that is within the control of the lessee. During the current financial year, the financial
effect of revising lease terms to reflect the effect of exercising extension and termination options was an increase in recognized lease liabilities and right-of-use assets is not material in nature.
Note No. 4. Non-current investments
Particulars Face As at 31st March, 2021 As at 31st March, 2020
Value Quantity Amount Quantity Amount
(` in Crores) (` in Crores)
A. Investments at cost
Unquoted investments (fully paid)
(a) Investment in equity instruments :
(i) of subsidiaries
Hazarat & Co.Pvt.Ltd. ` 10 2,02,610 0.20 2,02,610 0.20
Afcons Hydrocarbons Engineering Pvt. Ltd. ` 10 1,00,000 0.26 1,00,000 0.26
Afcons Corrosion Protection Pvt. Ltd. ` 10 80,000 0.06 80,000 0.06
Afcons Oil & Gas Services Pvt. Ltd. ` 10 7,400 0.01 - -
Afcons Construction Mideast LLC.* AED 1000 147 0.18 147 0.18
Afcons Infrastructures Kuwait for Building, Road & Marine
Contracting WLL.* KD 1200 49 0.96 49 0.96
Afcons Mauritius Infrastructure Ltd. Euro 1 11,00,000 9.17 11,00,000 9.17
Afcons Overseas Singapore Pte. Ltd. SGD 1 50,000 0.24 50,000 0.24
Afcons Saudi Constructions LLC SAR 100 4,750 0.80 4,750 0.80
(ii) of other related parties
Afcons (Mideast) Constructions & Investments Pvt. Ltd. ` 100 1 # 1 #
11.88 11.87
Less: Provision for diminution in value of investment ^ 0.36 0.36
11.52 11.51
^ Provision is for Afcons Saudi Constructions LLC
* Subsidiary on the basis of control on the composition of the
board of directors.
Investments carried at Cost (A) 11.52 11.51
B. Investment in equity instruments at fair value through
other comprehensive income
Quoted investments (fully paid)
Hindustan Oil Exploration Co. Ltd. ` 10 40,072 0.39 40,072 0.14
Hindustan Construction Co. Ltd. `1 2,000 # 2,000 #
Simplex Infrastructures Ltd. `2 500 # 500 #
ITD Cementation India Ltd. `1 1,000 0.01 1,000 0.01
Gammon India Ltd. `2 250 # 250 #
Total aggregate quoted investments 0.40 0.15
(b) Investment in equity instruments :
Simar Port Ltd. ` 10 1,000 # 1,000 #
Total aggregate unquoted investments # #
# Amount is below the rounding off norms adopted by the Company.
Total investments carrying value (A+B) 11.92 11.66
Aggregate amount of quoted investments 0.30 0.30

Aggregate market value of quoted investments 0.40 0.15
Aggregate amount of unquoted investments 11.52 11.51
Category-wise other investments - as per Ind-AS 109 classification: (` in Crores)

Particulars As at 31st March, 2021 As at 31st March, 2020
Financial assets carried at FVTOCI - equity instruments 0.40 0.15
Financial assets carried at amortised cost 11.52 11.51
11.92 11.66
54
Note No 5. Trade receivables (` in Crores)
Current Non Current Current Non Current
From Customers:
Unsecured, considered good (including retention monies) 1,989.70 484.76 2,121.95 546.80
Doubtful - 65.45 - 15.28
1,989.70 550.21 2,121.95 562.08
Less: Provision for doubtful debts - 65.45 - 15.28
Less: Allowance for expected credit losses - 13.56 - 13.56
1,989.70 471.20 2,121.95 533.24
From Related parties 375.40 3.16 164.68 3.16
Total 2,365.10 474.36 2,286.63 536.40
Note No. 5.1.A. Movement in the expected credit loss allowance (` in Crores)
Particulars As at 31 March, 2021
st
As at 31 March, 2020
st

Opening balance for loss allowance - 13.56 - 11.67
Add: Loss allowance assessed for the current year (net of reversal) - - - 1.89
Less: Reversal of loss allowance on account of debts written-off - - - -
Closing balance for loss allowance - 13.56 - 13.56
Note No. 5.1.B. Movement in the provision for doubtful debts (` in Crores)
Opening balance for doubtful debts - 15.28 - 15.28
Add: Addition during the year - 50.17 - -
Less: Reversal during the year - - - -
Closing balance for doubtful debts - 65.45 - 15.28
Note No 6. Loans and advances (` in Crores)

st
st

Advances to related parties (unsecured, considered good) (Refer Note 35)
To Subsidiaries / fellow subsidiaries 0.89 51.96 53.20 -
To Jointly Controlled Operations 17.65 - 7.70 -
18.54 51.96 60.90 -
Total 18.54 51.96 60.90 -
These financial assets are carried at amortised cost.
Note No 7. Other financial assets (` in Crores)

(a) Interest on trade receivables as per arbitration awards 63.03 167.60 30.32 263.53
(b) Deposits (unsecured, considered good)
(i) Security deposits 10.22 19.98 5.89 12.98
(ii) Other deposits 0.48 1.48 0.53 1.35
10.70 21.46 6.42 14.33
(c) Others 39.53 65.24 20.87 -
(d) Other loans and advances (doubtful) - 0.16 - 0.16
Less: provision for other doubtful loans and advances - 0.16 - 0.16
- - - -
(e) Bank deposits having maturity of more than 12 months - 19.37 - 0.20
(given towards margin money / under lien)
Total 113.26 273.67 57.61 278.06
55
Note No 8. Contract assets (` in Crores)
Contract assets
Amounts due from customer under construction contracts
Unsecured, considered good 2,332.89 1,518.02 2,962.55 1,723.94
Doubtful - - - 9.00
2,332.89 1,518.02 2,962.55 1,732.94
Total 2,332.89 1,493.02 2,962.55 1,723.94
Note No. 8.1 Movement in the expected credit loss allowance (` in Crores)
Opening balance for loss allowance - 9.00 - -
Add: Loss allowance assessed for the current year (net of reversal) - 16.00 - 9.00
Note No 8.2 Other non-current and current assets (` in Crores)

st
st

(a) Capital advances - 15.20 - 6.16
(b) Pre-paid expenses 40.86 18.13 43.49 12.61
(c) Balances with government authorities
(i) GST / VAT credit receivable 455.37 114.83 331.17 120.90
(ii) Service tax credit receivable - 30.23 2.45 27.78
(iii) Duty credit receivable 7.27 - 0.73 -
462.64 145.06 334.35 148.68
(d) Others
(i) Advance to vendors and others 407.27 2.72 419.76 20.34
(ii) Other receivables 30.92 - 16.67 -
(iii) Advances to employees 4.82 - 5.30 -
443.01 2.72 441.73 20.34
Total 946.51 181.11 819.57 187.79
Note No 9. Inventories - at lower of cost or net realisable value (` in Crores)

Construction materials
Steel 367.48 481.52
Cement 15.27 10.24
Aggregate 30.32 31.45
Other construction material 201.25 217.42
614.32 740.63
Stores and spares 272.20 278.94
272.20 278.94
Total 886.52 1,019.57
Note No 10. Cash and cash equivalents (` in Crores)

Balances with banks 360.70 290.02
Cash on hand 2.91 3.57
Total cash and cash equivalents 363.61 293.59
56
Note No 10.1. Bank balance other than cash and cash equivalents (` in Crores)
Earmarked balance with banks
- Unpaid dividend accounts 0.13 0.68
- Balances held as margin money or security against borrowings,
guarantees and other commitments 84.03 64.81
- Other earmarked accounts / escrow accounts 3.90 2.85
Deposits having maturity of more than 3 months but less than 12 months 2.16 39.75
Total 90.22 108.09
Note No 11. Non-current tax assets (Net) (` in Crores)

Advance income tax (net of provisions ` 169.74 crores) 110.64 155.01
(As at 31st March, 2020 ` 179.35 crores)
Total 110.64 155.01
Note No 12 (A). Equity share capital

Number of ` in Crores Number of ` in Crores
shares shares
1. Authorized:
Equity share capital of ` 10 each
Opening Balance 35,00,00,000 350.00 35,00,00,000 350.00
Add: Increase during the year - - - -
Closing Balance 35,00,00,000 350.00 35,00,00,000 350.00
2. Issued, subscribed and fully paid up:
Equity shares of ` 10 each. (Refer note 12.1 below)
Opening Balance 7,19,70,238 71.97 7,19,70,238 71.97
Closing Balance 7,19,70,238 71.97 7,19,70,238 71.97
12.1. Rights, preferences and restrictions attached to equity shares:
A member has a right to receive dividend as may be proposed by the board and approved at the annual general meeting. The equity shares
are not repayable except in the case of a buyback, reduction of capital or winding up in terms of the provision of the Act. Every member of
the Company holding equity shares has a right to attend the General Meeting of the Company and has a right to speak and on a show of
hands, has one vote if he is present in person and on a poll shall have the right to vote in proportion to his share of the paid-up capital of
the Company.
12.2. Details of shares held by each shareholder holding more than 5% of shares of the Company:
Class of shares / name of shareholders As at 31st March, 2021 As at 31st March, 2020
Number of % holding Number of % holding
shares held shares held
Equity shares
Shapoorji Pallonji & Company Private Limited 4,91,05,652 68.23 4,91,05,552 68.23
Floreat Investments Private Limited 1,30,15,929 18.09 1,30,15,929 18.09
Renaissance Commerce Private Limited - - 40,16,250 5.58
Hermes Commerce Private Limited - - 40,16,250 5.58
12.3. Reconciliation of number of Equity Shares of the Company and amount outstanding at the beginning and at the end of the
year.
Particulars Authorised Issued, subscribed and
fully paid up
Numbers (` in crores) Numbers (` in crores)
(in crores) (in crores)
Equity shares outstanding as at 31st March, 2019 35.00 350.00 7.20 71.97
Add: Shares issued during the year - - - -
57
Note No 12 (B). Instruments entirely equity in nature
Number of (` in Crores) Number of (` in Crores)
shares shares
1. Authorized:
Preference shares of ` 10 each. 65,00,00,000 650.00 65,00,00,000 650.00
Total 65,00,00,000 650.00 65,00,00,000 650.00
(a) 0.01% Non-cumulative and non profit participatory convertible
preference shares of ` 10 each. (Refer note 12.4 below)
Opening Balance 10,00,00,000 100.00 10,00,00,000 100.00
Closing Balance 10,00,00,000 100.00 10,00,00,000 100.00
(b) 0.01% Fully and compulsorily convertible non-cumulative,
non-participatory preference shares of ` 10 each.
(Refer note 12.5 below)
Opening Balance 25,00,00,000 250.00 25,00,00,000 250.00
Closing Balance 25,00,00,000 250.00 25,00,00,000 250.00
(c) 0.01% Fully and compulsorily convertible non-cumulative,
non-participatory preference shares of ` 10 each.
Opening Balance 10,00,00,000 100.00 10,00,00,000 100.00
Closing Balance 10,00,00,000 100.00 10,00,00,000 100.00
12.4. Rights, preferences and restrictions attached to 0.01% Non-Cumulative and non-profit participatory convertible preference
shares:
(a) The preference shares shall be non-cumulative and non profit participating convertible preference shares carrying a fixed rate of
dividend of 0.01% per annum to be paid in priority to the holders of any other class of shares.
(b) The terms of these preference shares have been varied with consent of the Preference Shareholder and the special resolution
passed with requisite majority of the members of the Company vide Postal Ballot effective from 30th November, 2018 whereby the
preference shares shall be deemed to be converted into common equity shares of the Company at a price of ` 68.25 per equity
share (consisting of par of ` 10 and a premium of ` 58.25) immediately, automatically and without any further act of the parties in
the event of conversion of the preference shares mentioned in note 12.5 (a) below.
(c) Every member of the Company holding preference shares has a right to vote in the general meeting of the Company on resolutions
placed before the Company which directly affect the rights attached to these preference shares.
12.5. Rights, preferences and restrictions attached to 0.01% fully and compulsorily convertible non-cumulative, non participatory
preference shares:
(a) The preference shares are automatically and mandatorily converted into equity shares on 13th January, 2024 (“mandatory
conversion date”) i.e. on the sixteenth year from the issue date.
(b) On mandatory conversion date or the early conversion date, as the case maybe, the preference shares shall be converted
into such number of equity shares of the Company constituting 74% of the outstanding equity share capital and convertible
preference shares of the Company calculated on a fully diluted basis on the date of issue (i.e. 14th January, 2008) resulting into
24,65,40,258 equity shares in terms of the consent obtained from the preference shareholder and the special resolution passed
with requisite majority of the members of the Company vide Postal Ballot effective from 17th July, 2020.
(c) The preference shares shall be entitled to fixed non-cumulative preference dividend at the fixed rate of 0.01% per annum which
shall be paid in priority to the holder of any other class of shares.
(d) On return of capital on a liquidation or otherwise of the assets of the Company, the holder of preference shares shall be entitled,
in priority to any payment to the holders of any other class of shares, to be repaid a sum equal to the capital paid up or credited
as paid up on the preference shares held by it and all arrears and accruals (if any) of the preferential dividend calculated up to
the date of the commencement of the winding-up (in case of winding-up) or the return of capital (in any other case).
(e) The preference shares shall not confer any further right to participate in the profits or assets of the Company except as mentioned
above.
(f) Every member of the Company holding preference shares has a right to vote in the general meeting of the Company on resolutions
(g) The preference shares shall be transferable in accordance with the terms and conditions of the Articles and other provisions
agreed between the Company and the preference share holders.
(h) The equity shares of the Company issued upon conversion of the preference shares will rank pari passu with the other equity
shares existing on the conversion date and shall be transferable in accordance with the terms and conditions of the Articles.
58
12.6. Rights, preferences and restrictions attached to 0.01% fully and compulsorily convertible non-cumulative, non participatory
preference shares:
(a) The preference shares shall be automatically and mandatorily converted into equity shares on 21st March, 2024 (“mandatory conversion
date”) i.e. on the expiry of ten years from the issue date. The mandatory conversion date of the 0.01% fully and compulsorily convertible
non-cumulative, non participatory preference shares has been revised from 21st March, 2019 (5th year from the date of issue) to
21st March, 2024 (10th year from the date of issue) in terms of the consent obtained from the preference shareholders and the special
resolution passed with requisite majority of the members of the Company vide Postal Ballot effective from 30th November, 2018.
(b) On mandatory conversion date, the preference shares shall be converted into such number of equity shares of the Company at the
price of ` 132 per equity shares (consisting of par of ` 10 and a premium of ` 122).
(c) The preference shares shall be entitled to fixed non-cumulative dividend at the fixed rate of 0.01% per annum which shall be paid in
priority to the holder of any other class of shares.
(d) On return of capital on a liquidation or otherwise of the assets of the Company, the holder of preference shares shall be entitled, in
priority to any payment to the holders of any other class of shares, to be repaid a sum equal to the capital paid up or credited as paid
up on the preference shares held by it.
(e) Every member of the Company holding preference shares has a right to vote in the general meeting of the Company on resolutions
0.01% Non-cumulative and non-profit participatory convertible
preference shares
0.01% Fully and compulsorily convertible non-cumulative
non-participatory preference shares
Goswami Infratech Private Limited 25,00,00,000 100.00 25,00,00,000 100.00
0.01% Fully and compulsorily convertible non-cumulative
non-participatory preference shares
Note No 12.8. Details of shares held by the holding company, the ultimate holding company, their subsidiaries and associates:
Equity 0.01% Non- 0.01% Equity 0.01% Non- 0.01% Fully
shares cumulative Fully and shares cumulative and com-
and non- compulsorily and non- pulsorily
profit convertible profit convertible
participatory non- participatory non-cumu-
convertible cumulative convertible lative non-
preference non- preference participatory
shares participatory shares preference
preference shares
shares
Number of shares Number of shares
Shapoorji Pallonji & Company Private 4,91,05,652 - 10,00,00,000 4,91,05,552 - 10,00,00,000
Limited, the holding company
Subsidiaries of the holding company:
Floreat Investments Private Limited 1,30,15,929 10,00,00,000 - 1,30,15,929 10,00,00,000 -
Renaissance Commerce Private Limited - - - 40,16,250 - -
Hermes Commerce Private Limited - - - 40,16,250 - -
Note No 12.9. The word Company used in the Balance Sheet and Statement of Profit & Loss including the accompanying notes to accounts
is defined as “Afcons Infrastructure Limited” including all of its branches and Jointly Controlled Operations.
Note No 13. Other Equity (` in Crores)

Capital reserve 0.19 0.19
Capital redemption reserve 0.13 0.13
Securities premium account 10.28 10.28
Contingency reserve 8.00 8.00
Debenture redemption reserve 43.75 52.50
General reserve 65.70 65.70
Foreign exchange translation reserve through other comprehensive (21.98) (25.05)
income
Retained earnings 1,373.12 1,262.82
Reserve for equity instruments through other comprehensive income 19.21 18.95
Total 1,498.40 1,393.52
59
Movement in other equity (Continued) (` in Crores)

Particulars As at As at
(a) Capital reserve
Opening balance 0.19 0.19
Closing balance 0.19 0.19
(b) Capital redemption reserve
(c) Securities premium account
(d) Contingencies reserve
(e) Debenture redemption reserve
Add : Transferred from / (to) surplus in Statement of Profit and Loss (8.75) 10.00
(f) General reserve
(g) Foreign currency translation reserve
Opening balance (25.05) 3.23
Add : Effect of foreign exchange rate variations during the year 3.07 (28.28)
Closing balance (21.98) (25.05)
(h) Retained earnings
Opening balance 1,262.82 1,061.97
Add: Profit for the year 125.93 241.92
Add: Other items classified to other comprehensive income 0.86 (5.82)
Less: Appropriations
Interim dividend on equity shares (` 3.50 per share) 25.19 25.19
(previous year ` 3.50 per share)
Dividend on preference shares (` 0.001 per share) 0.05 0.05
(previous year ` 0.001 per share)
Dividend distribution tax - 0.01
Transferred to / (from) Debenture redemption reserve (8.75) 10.00
Closing balance 1,373.12 1,262.82
(i) Reserve for equity instruments through other comprehensive income
Net fair value gain/(loss) on investments in equity instruments measured 0.26 (0.40)
at FVTOCI
Total 1,498.40 1,393.52
60
Nature and purpose of each reserve within other equity
Capital reserve
The capital reserve is on account of acquisition of subsidiary companies.
Capital redemption reserve
As per the provisions of Companies Act, capital redemption reserve is created out of the general reserve for the amount equivalent to the
paid up capital of shares bought back by the company.
Securities premium account
Where Company issued shares at a premium, a sum equal to the aggregate amount of the premium received on those shares shall
be transferred to a “securities premium account” as per the provisions of applicable Companies Act. This reserve is utilized as per the
provisions of the Companies Act.
Debenture redemption reserve
The Companies Act requires that where a company issues debentures, it shall create a debenture redemption reserve out of profits of the
company available for payment of dividend. The amounts credited to the debenture redemption reserve may not be utilized by the company
except to redeem debentures.
General reserve:
The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. There is no policy
of regular transfer. As the general reserve is created by a transfer from one component of equity to another and is not an item of other
comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.
Foreign currency translation reserve:
Exchange differences relating to the translation of the results and net assets of the foreign operations from their functional currencies to the
presentation currency (i.e. `) are recognised directly in other comprehensive income and accumulated in the foreign currency translation
reserve. The cumulative amount is reclassified to profit or loss when the net investment is disposed-off.
Retained earning and dividend on equity shares:
This represent the surplus / (deficit) of the profit or loss. The amount that can be distributed by the Company to its equity shareholders is
determined considering the requirements of the Companies Act, 2013. Thus, the amount reported above are not distributable in entirety.
On 18th March, 2021, an interim dividend of ` 3.50 per share (total dividend ` 25.19 crores) was paid to holders of fully paid equity shares.
Reserve for equity instrument measured through other comprehensive income
This reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through
other comprehensive income. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities
are derecognized.
Note No 14. Non-current borrowings (` in Crores)
Measured at amortised cost
(a) Debentures (Unsecured) (Refer note 14.1) - 200.00
(b) Equipment loan (Secured) (Refer note (14.2)
From banks
Rupee loan 472.64 372.82
Total 472.64 572.82
14.1 Details of debentures (` in Crores)

Particulars Terms of repayment As at 31st March, 2021 As at 31st March, 2020
Secured Unsecured Secured Unsecured
Unsecured, redeemable, unlisted,
non-convertible debentures (NCDs)
i) 8.85% NCDs Refer note 14.1 (i) below - - - 100.00
Refer note 14.1 (ii) below
ii) 8.90% NCDs - - - 100.00
Total Non-Convertible Debentures - - - 200.00
14.1 (i) The NCDs carry interest @ 8.85% per annum payable annually and are redeemable in full on 6th September, 2021 (i.e. at the end
of 5 years from the date of issue).
14.1 (ii) The NCDs carry interest @ 8.90% per annum payable annually and are redeemable in full on 23rd February, 2022 (i.e. at the end
61
14.2 Details of terms of repayment of long-term borrowings from banks and security provided in respect thereof:
14.2 (i) Equipment loan from banks (` in Crores)
Particulars Terms of security As at 31st March, 2021 As at 31st March, 2020
Rupee loan:
Axis Bank 80.00 - 120.00 -
HSBC Bank 43.75 - 50.00 -
State Bank of India Refer 160.00 - 202.82 -
note 14.2 (ii)
SBM Bank below 38.89 - - -
Export Import Bank of India 150.00 - - -
Total - Equipment loan 472.64 - 372.82 -
Total long-term borrowings from banks 472.64 - 372.82 -
14.2 (ii) Secured by first pari passu charge on plant & machinery. The rupee loan of Axis Bank Limited carry interest @ 7.90% per annum,
State Bank of India carry interest @ 7.75% per annum,HSBC Bank carry interest @ 8.25% per annum, SBM Bank carry interest
@ 9.20% per annum and Export Import Bank of India carry interest @ 8.30% per annum. The repayment schedule of the loans
are as follows:
As at 31st March, 2021

Nature Bank name Loan amount Repayment schedule
Axis Bank Ltd. 80.00 Each annual installment of ` 40 crores upto 2023-24
HSBC Bank 43.75 Semi annual installment of ` 6.25 crores upto 2025-26
Rupee Loan State Bank of India 160.00 Semi annual installment of ` 20 crores upto 2025-26
SBM Bank 38.89 Semi annual installment of ` 5.56 crores upto 2025-26
Export Import Bank of India 150.00 Each monthly installment of ` 2.78 crores upto 2026-27
Note No 15. Trade payables (` in Crores)

Trade payables
(a) Total outstanding due to micro and small enterprises 344.69 4.57 55.56 -
(b) Total outstanding due to creditors other than micro and small 2,562.95 447.69 3,055.58 557.12
enterprises
Total 2,907.64 452.26 3,111.14 557.12
Disclosures as required under the Micro, Small And Medium Enterprises Development Act, 2006 (MSMED Act)
(` in Crores)
st
st
Principal amount due to suppliers registered under the MSMED Act and
remaining unpaid as at year end 324.76 51.98
Interest due to suppliers registered under the MSMED Act and remaining
unpaid as at year end 13.76 1.02
Principal amounts paid to suppliers registered under the MSMED Act,
beyond the appointed day during the year 153.74 88.33
Interest paid, other than under section 16 of MSMED Act, to suppliers
registered under the MSMED Act, beyond the appointed day during the
year - -
Interest paid, under section 16 of MSMED Act, to suppliers registered
under the MSMED Act, beyond the appointed day during the year - -
Interest due and payable towards suppliers registered under MSMED
Act, for payments already made 7.16 2.48
Further interest remaining due and payable for earlier years 3.58 0.08
62
Note No 16. Other financial liabilities (` in Crores)
(a) Current maturities of long-term debts (Refer note 16.1 below) 275.18 - 96.03 -
(b) Interest accrued but not due on borrowings 7.14 - 5.88 -
(c) Unclaimed / unpaid dividends # 0.11 - 0.68 -
(d) Interest accrued on advance from customers 55.06 - 78.37 -
(e) Other payables
(i) Trade / security deposits received 56.48 - 32.79 -
(ii) Amount received on invocation of bank guarantees - 76.54 - 75.05
(iii) Distribution of profit payable to member of JV - 0.01 - 0.01
(iv) Others 91.60 172.04 71.09 54.40
148.08 248.59 103.88 129.46
Total 485.57 248.59 284.84 129.46
# The figures reflect the position as at year end. The actual amount to be transferred to the Investor Education and Protection Fund in this
respect shall be determined on the due dates.
Note No 16.1 (` in Crores)

Non-Convertible Debentures (Unsecured) 175.00 - - -
Equipment loans from banks (Rupee Loan) (Secured) # 100.18 - 73.33 -
Foreign currency loans (External Commercial Borrowings) (Secured) # - - 22.70 -
Total 275.18 - 96.03 -
# For nature of security and interest rate refer note no.14.1 & 14.2
Note No 17. Contract liabilities (` in Crores)

Contract liabilities
Amount due to customers 1,460.00 - 1,123.65 -
Advances from customers 974.71 1,576.73 1,465.30 1,942.73
Total 2,434.71 1,576.73 2,588.95 1,942.73
Note No 17.1 Other non-current and current liabilities (` in Crores)

st
st

Statutory remittances (VAT, GST, Service tax, Contributions to PF, 44.37 - 58.78 -
Superannuation, ESIC, Withholding taxes, Labour welfare cess, etc.)
Other payables
Advance against sale of scrap 0.05 - 0.02 -
Advance from subsidiaries 7.69 - 7.87 -
Total 52.11 - 66.67 -
Note No 18. Provisions (` in Crores)

Provision for employee benefits:
Provision for compensated absences (Refer note 31) 2.31 25.73 3.05 25.83
Provision for gratuity (Refer note 31) 8.00 3.07 10.77 7.44
10.31 28.80 13.82 33.27
Provision - Others:
Provision for foreseeable losses for onerous contracts 33.02 - 9.82 -
(Refer note 18.1)
Total 43.33 28.80 23.64 33.27
(i) The provision for employee benefits includes annual leave and vested long service leave entitlements accrued and gratuity.
63
Note No. 18.1 - Movement in the provision for foreseeable losses for onerous contracts (` in Crores)
Opening Balance 9.82 - 1.50 -
Add: Additions made during the year 23.83 - 9.19 -
Less: Reversals made during the year 0.63 - 0.87 -
Less: Exchange differences - - - -
Closing Balance 33.02 - 9.82 -
Note No 19. Current tax liabilities (net) (` in Crores)

st
st
Provision for tax (net of advance tax ` 68.21 crores) 46.04 17.25
Total 46.04 17.25
Note No 20. Current borrowings (` in Crores)

(a) Working capital demand loans from banks
Secured (Refer note 20.1 below) 805.53 830.90
(b) Cash credit facility from banks
(c) Book Overdraft (Refer note 20.1 below) 1.57 15.73
(d) Acceptances - 38.62
(e) From related parties (Unsecured) 4.71 -
Total 835.72 936.23
Note No. 20.1 Details of security for the secured short-term borrowings: (` in Crores)
Particulars Terms of security As at 31 March, 2021
st
st
Working capital demand loans (WCDL)

From banks:
State Bank of India 300.00 300.00
HSBC Bank - 31.01
Indian Bank 30.00 30.00
Export Import Bank of India 200.00 175.00
ICICI Bank 45.00 45.00
Bank of Baroda - 49.89
Union Bank of India Refer note 20.2 below 15.00 -
UCO Bank 30.00 -
Bank of India 29.79 -
Axis Bank 78.00 78.00
OBC Bank 71.74 72.00
BNP PARIBAS - 50.00
IDBI Bank 6.00 -
805.53 830.90
Cash credit facility and book overdraft Refer note 20.2 below 25.48 66.71
Note 20.2:
(i) Security:
Secured by first charge by way of equitable mortgage on the immovable properties of the Company situated at Andheri, Mumbai
on a pari passu basis. The Company’s stock of construction material, stores, WIP, book debt is further secured under indenture of
mortgage and first charge on movable plant & machinery of the Company upto 50% of the fund based limits with other term lenders
on pari passu basis. Cash credit facility / working capital demand loan is further secured by the Company's proportionate share of
current assets in all the joint ventures both present and future.
(ii) Interest:
Cash credit facility and working capital demand loan from banks carry interest ranging from 7.35% to 9.25% per annum (as on
31st March, 2020 interest ranging from 7.96% to 9.90% per annum).
64
Note No 21. Current tax and deferred tax
(a) Income tax expense (` in Crores)
Current tax:
Current tax in respect of current year 115.41 129.89
Adjustments in respect of previous years 2.14 5.24
Deferred tax
In respect of current year 9.75 1.36
Total income tax expense recognised in the statement of profit and
loss account 127.30 136.49
(b) Reconciliation of tax expense and the accounting profit multiplied by India’s tax rate: (` in Crores)
Amount Tax rate Amount Tax rate
Income tax using the Company's domestic tax rate # 88.49 34.94% 132.23 34.94%
Effect of income that is exempt from taxation
Non-taxable income (2.95) (1.16%) (0.09) (0.02%)
Loss in respect of which deferred tax assets not recognised due to 33.03 13.04% 2.10 0.55%
uncertainty
Disallowable expenses 9.01 3.56% 1.43 0.38%
Effect of tax rates differences of entities operating in other jurisdictions 9.70 3.83% 8.75 2.31%
having different tax rates
Charge/(credit) in respect of previous years 0.27 0.11% 0.75 0.20%
Effect of change in tax rates (17.27) (6.82%) (8.64) (2.28%)
Others 7.02 2.77% (0.04) (0.01%)
Income tax expenses recognised in Statement of Profit and Loss 127.30 50.27% 136.49 36.07%
# The tax rate used for the reconciliation above is the corporate tax rate of 30%, surcharge of 12% on corporate tax, education cess 3%
and secondary and higher education cess of 1% on corporate tax.
(c) Movement of deferred tax (` in Crores)
Particulars For the Year ended 31st March 2021
Opening Recognised in Recognised Others Closing
balance profit and loss in OCI balance
Tax effect of items constituting deferred tax liabilities
Property, plant and equipments 78.50 9.20 - (0.16) 87.54
Arbitration awards 191.07 (4.57) - - 186.50
269.57 4.63 - (0.16) 274.04
Tax effect of items constituting deferred tax assets
Employee benefits (16.46) 2.33 0.46 - (13.67)
Adjustment on adoption of Ind AS 116 (0.78) 0.28 - - (0.50)
Expected credit loss (7.88) (5.59) - - (13.47)
Provisions (8.61) (25.86) - - (34.47)
Minimum alternate tax credit (29.76) 33.96 - (4.20) -
(63.49) 5.12 0.46 (4.20) (62.11)
Net tax liabilities 206.08 9.75 0.46 (4.36) 211.93
(` in Crores)
Particulars For the Year ended 31 March 2020
st

balance profit and Loss in OCI balance
Property, plant and equipment 74.20 4.30 - - 78.50
Arbitration awards 185.70 5.37 - - 191.07
259.90 9.67 - - 269.57
Employee benefits (12.53) (0.81) (3.12) - (16.46)
Adjustment on adoption of Ind AS 116 - (0.78) - - (0.78)
Provisions (7.59) (1.02) - - (8.61)
Minimum alternate tax credit (72.49) - - 42.73 (29.76)
Other items (0.30) 0.30 - - -
(94.79) (8.31) (3.12) 42.73 (63.49)
Net tax liabilities 165.11 1.36 (3.12) 42.73 206.08
65
Note No 22. Revenue from operations (` in Crores)
(a) Revenue from sale of goods (Construction Materials) 35.96 23.86
(b) Construction contract revenue (Refer note 22.1 below) 8,804.60 9,179.72
(c) Other operating income (Refer note 22.2 below) 90.11 51.39
Total 8,930.67 9,254.97
(` in Crores)
22.1 Construction contract revenue comprises:
Construction revenue 8,804.60 9,179.72
Total - Sale of services 8,804.60 9,179.72
22.2 Other operating income comprises:
Sale of scrap 42.20 15.44
Others 47.91 35.95
Total - Other operating revenues 90.11 51.39
Note No 23. Other income (` in Crores)

(a) Interest income on financial assets at amortised cost 105.20 28.39
(b) Dividend income 73.66 49.47
(c) Other non-operating income (Refer note 23.2 below) 44.29 173.18
Total 223.15 251.04
(` in Crores)
23.1 Interest income comprises:
Interest on arbitration awards 85.55 15.78
Other interest 19.65 12.61
Total - Interest income 105.20 28.39
23.2 Other non operating income comprises:
Creditors / Excess provision written back 2.39 7.89
Insurance claim received 7.22 68.83
Provision for projected loss on contract written back 0.63 0.87
Net gain on foreign currency transactions and translation 20.23 72.27
Miscellaneous income 13.82 23.32
Total - Other non-operating income 44.29 173.18
Note No 24. Cost of material consumed (` in Crores)

Cost of construction materials consumed (Including bought out Items) 2,404.43 2,514.25
Total 2,404.43 2,514.25
Note No 24.1. Cost of construction (` in Crores)

Stores and spare consumed 390.63 379.64
Subcontracting expenses 2,167.25 2,448.15
Equipments hire / rent charges 438.23 491.95
Site installation 84.19 174.64
Technical consultancy 138.56 295.06
Power and fuel consumed 375.08 349.37
Freight and handling charges 393.17 276.70
Total 3,987.11 4,415.51
Note No 25. Cost of traded goods (` in Crores)

Construction materials 45.51 50.74
Total 45.51 50.74
66
Note No 26. Employee benefit expenses (` in Crores)
Salaries, wages and bonus 714.71 755.99
Contributions to provident and other funds: (Refer note 31)
Contribution to provident fund 23.42 21.44
Gratuity expense 6.08 4.55
Leave encashment expense 2.73 12.97
Other post-employment benefits 22.05 20.41
Staff welfare expenses 98.52 68.82
Total 867.51 884.18
Note No 27. Finance costs (` in Crores)

Interest and finance charges on lease liabilities and financial liabilities not
at fair value through profit or loss
Bank overdrafts and loans 166.72 194.87
Advance from clients 136.31 89.37
Lease liabilities 3.18 4.54
Others 50.14 21.60
356.35 310.38
Other borrowing costs:
Bank guarantee commission including bank charges 99.67 70.25
Others 9.51 5.15
Total 465.53 385.78
Note No 28. Depreciation and amortisation expenses (` in Crores)

Depreciation on tangible assets 214.43 204.28
Amortisation on intangible assets 0.17 0.51
Depreciation on right-of-use assets 30.73 29.25
Depreciation and amortisation as per statement of profit and loss 245.33 234.04
Note No 29. Other expenses (` in Crores)

Water and electricity 11.19 10.45
Rent / Hire charges 31.30 29.84
Repairs and maintenance - Machinery 21.22 18.14
Repairs and maintenance - Others 16.37 20.46
Insurance charges 79.64 57.64
Rates and taxes 72.39 51.33
Communication 9.83 10.34
Travelling and conveyance 81.43 93.52
Security charges 47.64 41.70
Donations and contributions 9.47 0.75
Expenditure on corporate social responsibility (CSR) 1.35 1.47
Legal and professional 139.02 118.64
Payment to auditors (Refer note below) 1.77 1.48
Advances written-off 0.65 0.08
Provision for Doubtful Debtors 50.17 -
Bad debts / unbilled revenue and sundry debit balances written-off 208.49 94.12
Expected credit loss on contract assets 16.00 10.89
Provision for foreseeable losses for onerous contracts 23.83 9.19
Loss on sale of fixed assets 7.03 8.39
Miscellaneous expenses 56.38 64.67
Total 885.17 643.10
67
Note 29.1: Details of payment to auditors (` in Crores)
Auditors remuneration comprises
(a) To auditors
For statutory audit 1.09 0.95
For tax audit 0.13 0.03
For other services (taxation matters, GST, certification work) 0.53 0.48
Reimbursement of expenses # #
# Amount is below the rounding off norms adopted by the Company.
1.75 1.46
(b) To cost auditors 0.02 0.02
0.02 0.02
Total (a + b) 1.77 1.48
Note 30: Contingent liabilities and commitments (to the extent not provided for) (` in Crores)
(i) Contingent liabilities
(a) Claims against the Company not acknowledged as debts (excluding claims
where amounts are not ascertainable)
i) Differences with sub-contractors/vendors in regard to rates and quantity of 88.17 310.66
materials.
ii) Royalty Claims* 483.64 239.00
(b) Guarantees
i) Bank guarantees given on behalf of subsidiaries and counter guaranteed by 71.37 113.93
the Company.
(c) Sales tax and entry tax
Represents demands raised by sales tax authorities in matters of a) disallowance 27.01 24.23
of labour and service charges, consumables etc. b) Tax on AS7 turnover c)
Entry tax and d) Interest and penalty etc. for which appeal is pending before
various appellate authorities. The Company is confident that the cases will be
successfully contested.
(d) VAT
Represents partial disallowance by West Bengal VAT Authorities for the year 0.84 1.18
2016-17. In matters of disallowance of subcontractor charges, labour charges, PF
contribution, architectural charges, cost of consumables, cost of establishment,
etc. for which appeal is pending before higher appellate authority. The entity is
confident that the case will be successfully contested.
(e) Excise duty
Represents demands raised by central excise department for excisability of 0.66 0.66
girders. The Company is confident that the cases will be successfully contested.
(f) Service tax
Represents demand confirmed by the CESTAT / Asst. commissioner of service tax 128.84 118.25
for a) disallowance of cenvat credit, since abatement claimed by the Company, b)
disallowance of general exemption of private transport terminals and c) taxability
under "Commercial or Industrial Construction Service", etc. The Company has
appealed / in the process of appeal against the said order with commissioner of
service tax Mumbai,CESTAT / High court and is confident that the cases will be
successfully contested. The Company has received the stay order for some case
from the CESTAT. Amount disclosed does not include penalties in certain matters
for which amount is unascertainable.
Note:- In respect of items mentioned under paragraphs (a), (c), (d), (e) and
(f) above, till the matters are finally decided, the financial effect cannot be
ascertained and future cashflows in respect of above matters are determinable
only on receipts of judgements / decisions pending at various forums / authorities.
(ii) Commitments
Estimated amount of contracts remaining to be executed on capital account and 76.44 191.18
not provided for
(iii) Income tax
Demand raised by income tax department on account of disallowance of 26.24 26.24
expenses and addition made in respect of receipt of income. The Company has
obtained stay order from tax department. Company is confident that the case will
be successfully contested before concerned appellate authorities.
68
Notes:
* The Company has received a demand and a show cause notice amounting to ` 238 crores and ` 244 crores respectively with respect
to liability on account of royalty payable on Murrum used in one of the projects. Subsequent to the show cause notice, the Company has
obtained a stay order on the same. Further, based on legal opinion, the Company expects that the claim is highly unlikely to materialise.
The Company has implemented the decision given in the Supreme Court Judgement in case of “Vivekananda Vidyamandir And Others
Vs The Regional Provident Fund Commissioner (II) West Bengal” and the related circular (Circular No. C-I/1(33)2019/Vivekananda
Vidya Mandir/284) dated March 20, 2019 issued by the Employees’ Provident Fund Organisation in relation to non-exclusion of certain
allowances from the definition of “basic wages” of the relevant employees for the purposes of determining contribution to provident
fund under the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 w.e.f. April 01, 2019. Basis the assessment of the
management, which is supported by legal advice, the aforesaid matter is not likely to have significant impact in respect of earlier periods.
Note No 31. Employee benefit plans

a. Defined contribution plan
(i) Provident fund
(ii) Superannuation fund
(iii) State defined contribution plans
The provident fund and the state defined contribution plan are operated by the regional provident fund commissioner and the
superannuation fund is administered by the Life Insurance Corporation (LIC). Under the schemes, the Company is required to
contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits.
The total expense recognised in profit or loss of ` 42.49 crores (for the year ended March 31, 2020: ` 37.46 crores) represents
contributions payable to these plans by the Company at rates specified in the rules of the plans.
b. Defined benefit plans
(i) Gratuity
The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in
continuous service for a period of 4 years and 240 days are eligible for gratuity. The amount of gratuity payable on retirement/
termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the
number of years of service without any ceiling limit as given under Payment of Gratuity Act, 1972.
Whereas on death of an employee the amount of gratuity payable is amount equivalent to one month salary, payable for each
completed year of service or part thereof in excess of six months in terms of Gratuity scheme of the Company or as per payment
of the Gratuity Act, whichever is higher.
The gratuity plan of the Company is unfunded and the Company accounts for gratuity benefits payable in future based on an
independent external actuarial valuation carried out at the end of the year using Projected Unit Credit Method.
Investment risk
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to
market yields at the end of the reporting period on government bonds.
Interest risk
A decrease in the bond interest rate will increase the plan liability.
Longevity risk
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan
participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the
plan’s liability.
Salary risk
The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such,
an increase in the salary of the plan participants will increase the plan’s liability.
The risk relating to benefits to be paid to the dependents of plan members (widow and orphan benefits) is re-insured by an
external insurance company.
No other post-retirement benefits are provided to these employees.
In respect of the plan, the most recent actuarial valuation of the present value of the defined benefit obligation were carried out
as at March 31, 2021 by an actuary. The present value of the defined benefit obligation, and the related current service cost and
past service cost, were measured using the Projected Unit Credit Method.
The Company has recognised following amounts in the statement of profit and loss: (` in Crores)
Particulars March 31, 2021 March 31, 2020
Superannuation Fund 19.07 16.02
Provident Fund 23.42 21.44
State defined contribution plans - -
Gratuity 6.08 4.55
Compensated absences 2.73 12.97
Total 51.30 54.98
69
c. Details of defined benefit plan - Gratuity
The principle assumptions used for the purpose of actuarial valuation (considered for the Company)
Expected Return on Plan Assets 6.87% 6.86%
Rate of Discounting 6.87% 6.86%
Rate of Salary Increase 6.00% 6.00%
Rate of Employee Turnover For service 4 years and below 6.00% p.a. & For service
5 years and above 2.00% p.a
Mortality Rate During Employment* Indian Assured Lives Mortality (2006-08)
*Based on India’s standard mortality table with modification to reflect expected changes in mortality.
The estimate of rate of escalation in salary considered in actuarial valuation takes into account inflation, seniority, promotion and
other relevant factors including supply and demand in the employment market.
(i) Components of defined benefit cost (` in Crores)

Particulars Year ended March 31, 2021 Year ended March 31, 2020
Service cost:
Current service cost 4.83 3.47
Past service cost and (gain)/loss from settlements - -
Interest cost on benefit obligation (Net) 1.25 1.08
Return on plan assets - -
(excluding amounts included in net interest expense)
Total defined benefit costs recognised in profit or loss 6.08 4.55
Actuarial losses arising from changes in demographic (0.39) 0.28
assumptions
Actuarial losses arising from changes in financial assumptions (0.04) 3.48
Actuarial losses arising from experience adjustments (0.89) 5.18
Total defined benefit costs recognised in OCI (1.32) 8.94
Total defined benefit costs recognised in profit or loss
and OCI 4.76 13.49
(ii) Net (liabilities) recognised in the Balance Sheet (` in Crores)

Present value of defined benefit obligation 47.63 44.34
Fair value of plan asset 36.56 26.13
Net liabilities recognised in the Balance Sheet (11.07) (18.21)
(iii) Movements in the present value of the defined benefit obligation are as follows. (` in Crores)
Opening defined benefit obligation 44.34 32.31
Interest cost 3.04 2.52
Remeasurement (gains) / losses:
Actuarial (gains) / losses arising from changes in financial (0.04) 3.48
assumptions
Past service cost, including losses on curtailments - -
Liabilities extinguished on settlements - -
Benefits paid (3.65) (2.62)
Closing defined benefit obligation 47.63 44.34
(iv) Movements in the fair value of plan assets are as follows. (` in Crores)
Opening fair value of plan assets 26.13 18.43
Interest income 1.79 1.44
Remeasurement gain / (loss):
Return on plan assets 0.39 (0.28)
Contributions from the employer 11.90 9.16
Closing fair value of plan assets 36.56 26.13
The Company pays premium to the group gratuity scheme of LIC and the fund is managed by LIC
70
(v) Sensitivity Analysis
Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase
and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the respective
assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
1) If the discount rate is 100 basis points higher / (lower), the defined benefit obligation would decrease by ` 4.00 crores (increase by
` 4.70 crores) (as at March 31, 2020: decrease by ` 3.72 crores (increase by ` 4.37 crores)).
2) If the expected salary growth increases / (decreases) by 1%, the defined benefit obligation would increase by ` 4.70 crores
(decrease by ` 4.06 crores) (as at March 31, 2020: increase by ` 4.37 crores (decrease by ` 3.78 crores)).
3) If the employee turnover increases / (decreases) by one year, the defined benefit obligation would increase by ` 0.23 crores
(vi) Sensitivity analysis method
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is
unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated
using the Projected Unit Credit Method at the end of the reporting period, which is the same as that applied in calculating the
defined benefit obligation liability recognised in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
The average duration of the benefit obligation at March 31, 2021 is 15 years (as at March 31, 2020: 16 years).
The Company expects to make a contribution of ` 8.00 crores (as at March 31, 2020: ` 10.77 crores) to the defined benefit plans
during the next financial year.
(vii) Maturity profile of defined benefit obligation:
Projected benefits payable in future years from the date of reporting
Particulars (` in Crores)
1st following year 2.95
2nd following year 3.32
3rd following year 4.24
4th following year 3.02
Sum of years 6 to 10 19.90
d. Compensated Absences
The liability for Compensated absences (non-funded) as at year end is ` 28.04 crores (as at March 31, 2020 ` 28.88 crores) covers
the Company’s liability for sick and privilege leave and is presented as current liabilities, since the Company does not have an
unconditional right to defer the settlement of any of these obligations.
The Company makes provision for compensated absences based on an actuarial valuation carried out at the end of the year using the
Projected Unit Credit Method
The amount of the provision of ` 28.04 crores (as at March 31, 2020 ` 28.88 crores) is presented as current liabilities,since the
Company does not have an unconditional right to defer settlement for any of these obligations.
71
Note No 32. Earnings per share (EPS)
EPS is calculated by dividing the profit attributable to the equity shareholders by the weighted average number of equity shares outstanding
during the year, as under :
` `
Basic earnings per share 17.49 33.61
Diluted earnings per share 3.70 7.10
Basic earnings per share

The earnings and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows:
(` in Crores)
Profit for the year attributable to shareholders of the Company - earnings
used in calculation of basic earnings per share 125.93 241.92
Dividends paid on convertible non-participating preference shares (0.05) (0.05)
Earnings used in the calculation of basic earnings per share 125.88 241.87
Profits used in the calculation of basic earnings per share 125.88 241.87
The weighted average number of equity shares for the purpose of basic earnings per share is as follows:
Number Number
Weighted average number of shares used in calculation of basic earnings
per share 7,19,70,238 7,19,70,238
Diluted earnings per share

The earnings and weighted average number of ordinary shares used in the calculation of diluted earnings per share are as follows:
(` in Crores)
Profit for the year attributable to shareholders of the Company -
earnings used in calculation of basic earnings per share 125.93 241.92
Earnings used in the calculation of diluted earnings per share 125.93 241.92
Profits used in the calculation of diluted earnings per share 125.93 241.92
The weighted average number of equity shares for the purpose of diluted earnings per share reconciles to the weighted average number
of equity shares used in the calculation of basic earnings per share as follows:
Number Number
Weighted average number of shares used in calculation of basic earnings 7,19,70,238 7,19,70,238
per share
Shares deemed to be issued for no consideration in respect of:
- Convertible preference shares 26,87,68,030 26,87,68,030
Weighted average number of shares used in calculation of diluted 34,07,38,268 34,07,38,268
earnings per share
Note No 33. Corporate social responsibility: (` in Crores)

Gross amount required to be spent by the Company during the year: (Previous year ` 0.81 crores) Nil
Amount spent during the year on:

CSR activities (in cash) Paid To be paid Total
(i) Construction/acquisition of an asset 1.35 - 1.35
(ii) Purposes other than (i) above - - -
Total 1.35 - 1.35
72
Note 34: Segment information : (` in Crores)
Segment Profit before tax (before exceptional items)
India (100.59) (204.62)
Other Countries 353.82 583.03
253.23 378.41
Add: Unallocated income - -
Less: Unallocated expenses - -
(` in Crores)
Revenue from external customers As at 31st March, 2021 As at 31st March, 2020
India 6,026.27 6,094.98
Other Countries 2,904.40 3,159.99
Total 8,930.67 9,254.97
(` in Crores)
Segment Assets As at 31st March, 2021 As at 31st March, 2020
India 11,018.00 11,597.69
13,540.06 14,357.83
Intersegment eliminations (1,818.53) (2,093.11)
Unallocated
Investments 11.92 11.66
Non-current tax assets 110.64 155.01
Total assets as per balance sheet 11,844.09 12,431.39
(` in Crores)
Non-current assets As at 31st March, 2021 As at 31st March, 2020
India 2,222.51 2,612.85
Total non-current assets 2,422.16 2,726.19
(` in Crores)
Segment Liabilities As at 31 March, 2021
st
st
India 6,286.57 6,479.84

9,117.31 9,579.47
Intersegment eliminations (859.94) (795.96)
Unallocated
Current Borrowings 835.74 936.23
Non-current Borrowings 472.64 572.82
Deferred Tax Liability 211.93 206.09
Current Tax Liability 46.04 17.25
Shareholders Fund 2,020.37 1,915.49
Total liabilities as per balance sheet 11,844.09 12,431.39
(` in Crores)
Non-current liabilities As at 31st March, 2021 As at 31st March, 2020
India 1,384.46 1,609.46
Other Countries 935.04 1,069.58
Total non-current liabilities 2,319.50 2,679.04
Information about major customers:

During the current year ended March 31, 2021, revenue of ` 1,695.71 crore arising from a customer in India (viz Nagpur Mumbai Super
Communication Expressway Limited) contributes to more than 10% of the company’s revenue.
73
Note 35: Related party disclosures
(a) Details of related parties:
Related Party where Control exists
Holding Company
Shapoorji Pallonji & Co. Pvt. Ltd.
Subsidiaries of the Company
Hazarat & Company Private Limited
Afcons Corrosion Protection Private Limited
Afcons Hydrocarbons Engineering Private Limited
Afcons Construction Mideast LLC
Afcons Infrastructures Kuwait for Building, Road and Marine Contracting WLL
Afcons Gulf International Project Services FZE
Afcons Mauritius Infrastructure Ltd (AMIL)
Afcons Overseas Singapore Pte Ltd.
Afcons Infra Projects Kazakhstan LLP
Afcons Saudi Constructions LLC
Afcons Overseas Project Gabon SARL
Afcons Oil and Gas Services Private Limited
Fellow Subsidiary(s)
Floreat Investments Private Limited
Forvol International Services Limited
Forbes & Company Ltd.
Shapoorji & Pallonji Qatar, WLL
Eureka Forbes Ltd.
Forbes Facility Services Pvt.Ltd.
S.D.Corporation Pvt. Ltd.
Shapoorji Pallonji Infrastructure Capital Co Pvt. Ltd.
Shapoorji Pallonji Pandoh Takoli Highway Pvt. Ltd.
Shapoorji Pallonji Oil and Gas Pvt Ltd.
Forbes Enviro Solutions Ltd.
SP Oil and Gas Malaysia SDN BHD
Jointly Controlled Operations
Transtonnelstroy Afcons Joint Venture
Dahej Standby Jetty Project Undertaking
Afcons Gunanusa Joint Venture
Afcons Pauling Joint Venture
Strabag AG Afcons Joint Venture
Ircon Afcons Joint Venture
Afcons Sener LNG Construction Projects Pvt.Ltd.
Afcons Sibmost Joint Venture
Afcons Vijeta PES Joint Venture
Afcons SMC Joint Venture
Afcons Vijeta Joint Venture
Afcons JAL Joint Venture
Afcons KPTL Joint Venture
Afcons - SPCPL Joint Venture
Afcons Infrastructure Ltd and Vijeta Projects and Infrastructures Ltd Joint Venture
Key Management Personnel
Mr. S. P. Mistry – Chairman
Mr. K. Subramanian – Executive Vice Chairman
Mr. S. Paramasivan – Managing Director
Mr. Giridhar Rajagopalan
Mr. Akhil Kumar Gupta
74
Note 35 : Related party disclosures (Contd)
(b). Details of transactions with related party for the period 01.04.2020 to 31.03.2021 (` in Crores)
Nature of Transaction Holding Subsidiaries Fellow Jointly Controlled Key Management Total
Company(s) subsidiary(s) Operations Personnel
CY 20-21 PY 19-20 CY 20-21 PY 19-20 CY 20-21 PY 19-20 CY 20-21 PY 19-20 CY 20-21 PY 19-20 CY 20-21 PY 19-20
Managerial Remuneration paid
a) Short Term Employee Benefit
K.Subramanian - - - - - - - - 2.83 3.78 2.83 3.78
S.Paramasivan - - - - - - - - 2.45 3.33 2.45 3.33
Giridhar Rajagopalan - - - - - - - - 1.44 2.04 1.44 2.04
Akhil Kumar Gupta - - - - - - - - 1.37 1.96 1.37 1.96
b) Post Employment Benefits
K.Subramanian - - - - - - - - 0.64 0.59 0.64 0.59
S.Paramasivan - - - - - - - - 0.59 0.55 0.59 0.55
c) Other Long Term Benefits
K.Subramanian - - - - - - - - 0.43 0.36 0.43 0.36
S.Paramasivan - - - - - - - - 0.36 0.32 0.36 0.32
Sitting Fees paid
S.P.Mistry - - - - - - - - 0.07 0.04 0.07 0.04
Dividend on Preference Shares
Floreat Investments Private Limited - - - - 0.01 0.01 - - - - 0.01 0.01
Shapoorji Pallonji & Co. Pvt. Ltd. 0.01 0.01 - - - - - - - - 0.01 0.01
Interim Dividend on Equity Shares
Floreat Investments Private Limited - - - - 4.56 4.56 - - - - 4.56 4.56
Hermes Commerce Private Limited - - - - - 1.41 - - - - - 1.41
Renaissance Commerce Private Ltd. - - - - - 1.41 - - - - - 1.41
K.Subramanian - - - - - - - - 0.02 0.02 0.02 0.02
S.Paramasivan - - - - - - - - 0.01 0.01 0.01 0.01
Overhead Charges Recovered
Strabag-AG Afcons Joint Venture - - - - - - - 8.92 - - - 8.92
Interest Income
Afcons Sener LNG Construction - - - - - - 0.29 0.25 - - 0.29 0.25
Projects Pvt. Ltd.
Afcons Construction Mideast, LLC - - 3.74 7.49 - - - - - - 3.74 7.49
Income from Services charges
Afcons Overseas Singapore Pte Ltd. - - 2.95 1.92 - - - - - - 2.95 1.92
Strabag-AG Afcons Joint Venture - - - - - - 3.53 5.28 - - 3.53 5.28
Afcons - SPCPL Joint Venture - - - - - - 0.16 0.41 - - 0.16 0.41
Afcons Overseas Project Gabon - - 0.12 0.92 - - - - - - 0.12 0.92
SARL
Other Income
Afcons Overseas Project Gabon - - - 3.49 - - - - - - - 3.49
SARL
Transtonnelstroy-Afcons Joint Venture - - - - - - 0.01 0.02 - - 0.01 0.02
Strabag-AG Afcons Joint Venture - - - - - - - 0.59 - - - 0.59
Forbes Facility Services Pvt Ltd - - - - 0.02 - - - - - 0.02 -
Subcontract Income
Shapoorji Pallonji Pandoh Takoli - - - - 376.94 552.16 - - - - 376.94 552.16
Highway Pvt. Ltd
Shapoorji Pallonji Infrastructure - - - - 43.78 63.54 - - - - 43.78 63.54
Capital Co Pvt Ltd
HPCL Shapoorji Energy Pvt. Ltd - - - - 202.30 14.96 - - - - 202.30 14.96
75
(b). Details of transactions with related party for the period 01st April 2020 to 31st March 2021 (` in Crores)
Income from Equipment Hire
Strabag-AG Afcons Joint Venture - - - - - - 0.05 - - - 0.05 -
Dividend Received
Distribution of Profit / (Loss) from
Joint Ventures
Ircon-Afcons Joint Venture - - - - - - 7.48 - - - 7.48 -
Sale of Spares/Materials/Assets
Afcons Overseas Project Gabon - - - 0.04 - - - - - - - 0.04
SARL
Afcons - KPTL Joint Venture - - - - - - - 18.36 - - - 18.36
Advance Given
Afcons Infrastructures Kuwait for - - 0.20 0.22 - - - - - - 0.20 0.22
Building,Road & Marine Contracting
WLL.
Ircon-Afcons Joint Venture - - - - - - 0.02 - - - 0.02 -
Afcons Corrosion Protection Pvt Ltd - - - 0.02 - - - - - - - 0.02
SARL
Hazarat & Company Private Limited - - 0.02 0.02 - - - - - - 0.02 0.02
Afcons Saudi Constructions LLC - - 0.06 - - - - - - - 0.06 -
Projects Pvt. Ltd.
Afcons - KPTL Joint Venture - - - - - - 70.00 3.80 - - 70.00 3.80
Afcons Oil & Gas Services Pvt Ltd - - 0.01 - - - - - - - 0.01 -
Afcons Hydrocarbons Engineering - - 0.01 - - - - - - - 0.01 -
Pvt Ltd
Advance Received back
Afcons Construction Mideast, LLC - - (2.89) (115.15) - - - - - - (2.89) (115.15)
Afcons Infrastructures Kuwait for - - - (3.33) - - - - - - - (3.33)
WLL.
Transtonnelstroy-Afcons Joint Venture - - - - - - (1.30) (2.10) - - (1.30) (2.10)
Afcons Overseas Singapore Pte Ltd. - - (1.80) (3.32) - - - - - - (1.80) (3.32)
Afcons Corrosion Protection Pvt Ltd - - - (0.06) - - - - - - - (0.06)
Hazarat & Company Private Limited - - (0.02) (0.02) - - - - - - (0.02) (0.02)
Afcons Sener LNG Construction - - - - - - (0.48) (0.72) - - (0.48) (0.72)
Projects Pvt. Ltd.
Afcons - KPTL Joint Venture - - - - - - (48.94) (2.51) - - (48.94) (2.51)
Service Charges paid
SARL
SP Oil and Gas Malaysia SDN BHD - - - - 0.32 - - - - - 0.32 -
Housekeeping services paid
Forbes Facility Services Pvt Ltd - - - - 10.59 10.49 - - - - 10.59 10.49
Rent Expense
Hazarat & Company Private Limited - - 0.02 0.02 - - - - - - 0.02 0.02
Legal and Professional Fees
(Strategic Support Services)
(Consultancy Services)
76
Subcontract Expenses
Shapoorji Pallonji Qatar WLL - - - - - 18.94 - - - - - 18.94
Travelling Expenses
Forvol International Service Ltd - - - - 1.45 14.29 - - - - 1.45 14.29
Equipment Hire Charges Paid
WLL.
Purchase of Spares/Materials/
Assets
SARL
Afcons Construction Mideast, LLC - - - 1.08 - - - - - - - 1.08
Eureka Forbes Ltd. - - - - 0.49 0.20 - - - - 0.49 0.20
Guarantees Given for / (Released)
Afcons Gunanusa Joint Venture - - - - - - 22.48 22.48 - - 22.48 22.48
Strabag-AG Afcons Joint Venture - - - - - - (1.01) 7.03 - - (1.01) 7.03
Transtonnelstroy-Afcons Joint Venture - - - - - - (115.81) (20.72) - - (115.81) (20.72)
Afcons Overseas Singapore Pte Ltd. - - - (70.93) - - - - - - - (70.93)
Afcons Overseas Project Gabon - - - (47.42) - - - - - - - (47.42)
SARL
Afcons SMC Joint Venture, Tanzania - - - - - - 2.60 (58.31) - - 2.60 (58.31)
Afcons - Vijeta - PES Joint Venture - - - - - - 68.22 (65.19) - - 68.22 (65.19)
Afcons - Vijeta Joint Venture - - - - - - (5.50) (3.68) - - (5.50) (3.68)
Afcons – Sibmost – Joint Venture - - - - - - (132.23) (35.76) - - (132.23) (35.76)
Afcons JAL Joint Venture - - - - - - (14.71) 1.00 - - (14.71) 1.00
SBLC Given for / (Released)
Afcons Overseas Singapore Pte Ltd. - - (42.56) 61.70 - - - - - - (42.56) 61.70
Outstanding amount of guarantee
given/ (taken)
Afcons Gunanusa Joint Venture - - - - - - 469.48 447.00 - - 469.48 447.00
Dahej Standby Jetty Project - - - - - - 58.33 58.33 - - 58.33 58.33
Undertaking (DJPU)
WLL.
Afcons SMC Joint Venture, Tanzania - - - - - - 41.47 38.87 - - 41.47 38.87
Afcons - Vijeta - PES Joint Venture - - - - - - 37.30 70.14 - - 37.30 70.14
Afcons - Vijeta Joint Venture - - - - - - 107.62 12.06 - - 107.62 12.06
Afcons – Sibmost – Joint Venture - - - - - - 124.20 256.42 - - 124.20 256.42
Afcons - KPTL Joint Venture - - - - - - 119.48 119.48 - - 119.48 119.48
Afcons JAL Joint Venture - - - - - - 45.84 53.55 - - 45.84 53.55
Outstanding amount of SBLC
given/ (taken)
77
Outstanding Amount Loans &
Advances Dr/ (Cr)
Ircon-Afcons Joint Venture - - - - - - - (0.02) - - - (0.02)
Afcons Saudi Constructions LLC - - 0.85 0.81 - - - - - - 0.85 0.81
Projects Pvt. Ltd.
Afcons Overseas Project Gabon - - (4.71) 1.39 - - - - - - (4.71) 1.39
SARL
Afcons - KPTL Joint Venture - - - - - - 9.33 (11.74) - - 9.33 (11.74)
Afcons Oil & Gas Services Pvt Ltd - - 0.01 - - - - - - - 0.01 -
Afcons Hydrocarbons Engineering - - 0.01 0.00 - - - - - - 0.01 0.00
Pvt Ltd
Outstanding Amount - Debtors
Afcons Overseas Singapore Pte Ltd. - - - 7.51 - - - - - - - 7.51
SARL
Afcons - SPCPL Joint Venture - - - - - - - 0.21 - - - 0.21
Capital Co Pvt Ltd
Highway Pvt. Ltd
SP Oil and Gas Malaysia SDN BHD - - - - 0.04 0.04 - - - - 0.04 0.04
Forbes Facility Services Pvt Ltd 0.03 - 0.03 -
Outstanding Amount - Creditors
Forvol International Service Ltd - - - - 0.36 0.58 - - - - 0.36 0.58
Forbes Facility Services Pvt Ltd - - - - 6.07 3.73 - - - - 6.07 3.73
Capital Co Pvt Ltd
Highway Pvt. Ltd
Shapoorji Pallonji Qatar WLL - - - - 50.33 52.04 - - - - 50.33 52.04
Eureka Forbes Ltd. - - - - 0.05 0.03 - - - - 0.05 0.03
SP Oil and Gas Malaysia SDN BHD - - - - - 0.26 - - - - - 0.26
Forbes Enviro Solutions Ltd - - - - - 0.02 - - - - - 0.02
Shapoorji Pallonji & Co. Pvt. Ltd. (8.37) 0.49 - - - - - - - - (8.37) 0.49
WLL.
SARL
Afcons Overseas Singapore Pte Ltd. - - 0.45 - - - - - - - 0.45 -
Afcons Infrastructure Limited & Vijeta - - - - - - 0.01 - - - 0.01 -
Projects And Infrastructures Ltd. Joint
Venture
78
Note 36. Afcons Gunanusa Joint Venture (AGJV)
(a) AGJV had submitted claims for change orders aggregating to ` 751.77 crores to ONGC. The AGJV has invoked arbitration in respect
of the aforesaid change orders, as the same were not approved by the Outside Expert Committee (OEC). Further, claims against
change orders and counter claims by ONGC aggregating to ` 64.00 crores will be discussed in arbitration. Based on the legal opinion
obtained and facts of the matter, the management is confident of its recovery.
Pursuant to discussions between AGJV, Afcons and PT Gunanusa (PTG), the parties decided to settle all claims and counterclaims
between PTG, Afcons and AGJV arising from the Project, subject to the terms of the Settlement Agreement dated 26/07/2018. As per
the terms, it was agreed that the amount payable by PTG to Afcons shall be adjusted against the money due by AGJV to PTG and the
necessary book entries were passed in the books of account of the AGJV to reflect the settlement arrived at between the parties.
As per the terms of the settlement agreement it is further agreed that PTG’s liability towards liquidated damages (LD) under the
subcontract shall be limited to USD 3.6 million equivalent ` 26.35 crores only and the liability shall be imposed on PTG only if AGJV is
confirmed to be liable for liquidated damages in the ONGC Arbitration, where PTG’s share of liability for LD is 20%. Also, in the event
AGJV is not successful in the ONGC Arbitration, Afcons agrees to absorb all the losses in the project without claiming anything against
PTG. If AGJV receives an award from the ONGC Arbitration for amount above USD 35 million equivalent ` 256.19 crores, Afcons
agrees to share 20% of the amount above USD 35 million equivalent ` 256.19 crores to PTG.
b) AGJV has a total exposure of ` 138.52 Crs in a customer (ONGC) with respect to construction of ICP-R Offshore Process Platform
project. AGJV has invoked an arbitration which is under discussion.
Afcons Infrastructure Limited has given advances aggregating to ` 189.98 Crores which are receivable from AGJV. The recovery of
this amount is dependent upon finalization of the arbitration award.
Note 37. Transtonnelstroy Afcons Joint Venture (TAJV)
(a) The Joint Venture (“the JV”) had submitted variations to the client for two projects arising on account of cost overruns due to unforeseen
geological conditions, delays in handing over of land, change in scope of work etc., which the Management believes is attributable
to the client and the matters are under negotiation with the client / in arbitration / has been referred to Dispute Adjudication Board for
determination and recovery of the amounts. In the earlier years, Joint Venture had received arbitration awards in few of the matters.
The Client has further challenged these arbitration awards before the Hon’ble High Court, Madras. Pending disposal of these matters
in the court, client has, upon submission of the bank guarantee by the Joint Venture, deposited part of the award amount with the Joint
Venture, pursuant to an interim stay order from Hon’ble High Court, Madras.
During the year, Client issued a notice to invoke the Performance Bank Guarantee issued on behalf of the Joint Venture amounting
`143.29 Crores vide email dated July 06, 2020 addressed to issuing banks. The guarantees were issued by two banks. JV filed
applications before High Court challenging the invocation and encashment of the said BGs and also sought an injunction restraining
Client from invoking the BG. By order dated July 08, 2020, the learned Single Judge granted an order of status-quo till July 17,
2020. The order of the Court had been communicated to both the Banks, but so far as one bank is concerned, they have immediately
released the amount of ` 25.77 Crores. As far as the another bank is concerned, in adherence to the order passed by Court, they have
restrained themselves from making the payment to client, in adherence to the order of maintaining Status Quo.
The order for maintaining status quo was reversed on August 14, 2020. Aggrieved, JV filed against the order before Hon’ble High
Court, Madras. The Division Bench, after hearing both sides, issued a common judgement on March 24, 2021 and directed the
parties to refer the dispute before Arbitration Tribunal along with an injunction issued on invocation of Bank Guarantee till the matter is
disposed off by the Arbitration Tribunal. Client filed Special Leave Petition against the aforesaid order before Hon’ble Supreme Court,
which was dismissed at the admission stage itself. Hon’ble Supreme Court declined to interfere with the order passed by Hon’ble
High Court, Madras. Accordingly, both the parties (Client and JV) referred all disputes related to extension of time, associated cost
to extended stay, release of withheld amount and encashment of bank guarantees to a new panel of Arbitrators formed in May 2021.
The amount of encashed Bank Guarantee has been recorded by the JV as Receivable from Client (Note No (6 ii) and Payable to JV
Partner (Note No 15-ii).
The arbitration proceeding has reached an advanced stage and after the year end, two awards has been granted in relation to
the claim for ‘Extension of time’. Arbitration Tribunal suggested that cost compensation for extension of time should be calculated
based on principle adopted while issuing earlier Arbitration Awards. Accordingly, compensation claimed for extended stay has been
reassessed. Based on the assessment of the timing and amount of recoverability, carried out by Joint Venture’s Management after
considering the current status of negotiation with the client/in arbitration proceeding/Dispute Adjudication Board proceedings, an
amount of ` 186.24 Crores has been impaired in the Statement of Profit and Loss as Impairment of Contract assets - Amount due from
Customers under Construction contracts. Balance amounts which is supported by legal opinion and technical evaluation recognized
towards the variations/claims as at the year-end are included in Note 7 ‘Amounts due from Customers under Construction contracts’
as Other Current and Non-current assets amounting to `167.93 Crores and ` 582.53 Crores respectively (Previous Year ` 174.07
Crores and ` ` 757.00 Crores respectively) and have been considered as good and fully recoverable by the Management and it does
not anticipate any further loss to be recognized at this stage.
(b) TAJV has a total exposure of ` 920.66 Crores in Chennai Metro Rail Ltd. project (CMRL) which includes trade receivables of ` 175.83
Crores and unbilled receivables of ` 744.83 Crores.
TAJV has claimed variations amounting to ` 2,214 Crores on CMRL which are pending at different stages as follows:
- Variations of ` 1,128 Crores on account of extended stay Cost (March 2016 to December 2018).
- Variations of ` 169 Crores with internal Dispute Adjudicating Board (DAB)
- Variations of ` 374 Crores on account of change in site condition/soil strata (unforeseeable Sub-surface condition)
- Variations under arbitration of ` 543 Crores on account of extended stay cost until March 30, 2016.
79
Afcons Infrastructure Limited has a total receivable of ` 959.91 Crores from TAJV as on March 31, 2021. Afcons Infrastructure Limited
is not the party to the arbitration / claims and the recovery of this amount is dependent upon finalization of arbitration award and
clearance / acceptance of claims by CMRL.
Note 38.
(a) The Company has been legally advised that outstanding interest free advances aggregating to ` 893.59 crores before elimination
(As at 31st March, 2020 ` 1,140,87 crores) made towards financing the unincorporated joint operations do not come under the purview
of Section 186 of Companies Act, 2013 as the Company is in the business of constructing and developing infrastructure facilities.
(b) In view of non-applicability of section 186 of the Companies Act, 2013, the details of particulars required to be made thereunder in the
financial statements are not applicable in relation to loan made, guarantee given or security provided. For investments made refer to
Note no. 4.
Note 39.
(a) The Company had entered into a contract with Jordan Phosphate Mines Construction (JPMC) on April 20, 2010 for the construction
of “New Phosphate Rock Terminal at Aqaba - Jordan” with a contract value of ` 909.13 crores (142.23 Million JOD).
The Company had submitted various claims on account of extra works, release of bank guarantee and delay in completion of the
project. The Company filed the issues for arbitration with the International Chamber of Commerce (ICC) on November 2016.
On October 30, 2019, the ICC rendered an unfavourable award of ` 178.26 crores to the Company and a favourable award of ` 86.75
crores on account of final bill and variation.
The Management has challenged the award in the French Court on the grounds that the award is against the Jordanian law and that
ICC has failed to acknowledge material evidences presented by the Company. Management is confident about the recovery of the
amounts involved in the matter.
During the year JPMC has invoked a bank guarantee of ` 65.24 Cr against the terms of the International Arbitration Award. We have
initiated legal action against JPMC as well as Arab Bank for this fraudulent and illegal BG encashment.
(b) On the JPMC project as explained above, the supply and execution contract was subcontracted to M/s FL Smidth (FLS). FLS did
not perform their part of their contract and consequently Afcons had to undertake that part of work. Hence, Afcons invoked bank
guarantee amounting to ` 69.03 crores against the sub-contractor for lack of performance in respect of this project. In addition to this
the Company has a liability amounting to ` 60.66 crores payable to FLS in its books. Hence, there exists no substantial exposure in
the books.
The outflow of this liability is contingent upon the finalisation of the arbitration ongoing with JPMC as mentioned in note 39(a) above.
Note 40.
Konkan Railway Corporation Limited (KRCL) had issued a contract for construction of Arch Steel Bridge across river Chenab on 24th
August, 2004. The DBN (Design Basis Note) submitted by KRCL during the tender stage was revised in 2005 and subsequently in 2006
and 2010. The project got delayed due to various reasons such as changes in design parameters, wind load during service condition, arch
span, finalization of slope stabilization etc.
Due to the above, the Company has raised two arbitration claims amounting to ` 1,625.85 Crores which are towards additional expenses on
account of extended stay, categorization of excavation works, compensation due to loss of productivity, expenses incurred due to change in
alignment, pend period cost etc. These variation costs have already been charged off to profit and loss account in past. In the previous year,
the Company had received an unfavourable award for major portion of its claims. The awards are challenged before Bombay High Court.
The total receivables amounting to ` 185.61 crores as at March 31, 2021 (unbilled receivable of ` 181.99 crores and retention of ` 3.62
crores ) includes ` 115 crores on account of increase in steel quantity due to change in design.
Based on the opinion from independent expert and the facts of the case, the management is confident of getting a favorable judgement and
recover all the dues related to this project.
Note 41.
The Company had executed project awarded by the Board of Trustees of the port of Mumbai (MbPT) for Modernization of the existing
Marine Oil Terminal and berths/jetties J1, J2 and J3 at the Multi-cargo Marine Oil Terminal of Jawahar Dweep based in Mumbai Harbor.
The project had completed in June 2003.
The Company had gone into arbitration with MbPT for compensation for extended stay related to projects and was successful in getting
an award of ` 96.02 Crores including interest till the date of award, in its favour on November 2011. However, the Award was challenged
by MbPT u/s 34 of Arbitration and Conciliation Act, 1996 to the Single Bench of Bombay High Court. The Single Bench had set aside the
award and passed the order in favor of MbPT. The Company filed an appeal with the High Court of Mumbai for a two bench Judge as
against order of Single Bench. The appeal was admitted by the High Court for a hearing by a two bench Judge in the month of April 2018.
Considering the legal opinion obtained and facts of the matter, the Company is confident of winning the case and recovering the entire
amount from MbPT in future.
Note 42.
The Company had executed project awarded by Uttar Pradesh Expressways Industrial Development Authority for Construction of Six-lane
green field Kannauj to Unnao Expressway (package IV). During the execution of the project the client issued various change orders which
required additional deployment of resources. The expressway was inaugurated and put to use in Dec 2016. The project was completed 13
months ahead of schedule.
Due to the various change orders, the Company has raised various claims amounting to ` 211 Crores which are towards additional
expenses on account of change of scope, additional works, royalty claim etc. Based on the facts of the matter and on going discussions
with customer, the management is confident to recover all the dues related to this project.
80
Note 43.
(a) The Company has unbilled receivables towards various ongoing and completed projects disclosed under Note no. 8 ‘Contract assets’.
This unbilled work also includes variations on account of cost overruns due to unforeseen geological conditions, delays in handling
over land, change in scope of work, etc. which are under discussions at various levels including customer, in arbitration, Dispute
Adjudication Board etc. Based on the discussions and merits of the claims, the management is confident about the recovery of these
pending variations with respect to unbilled receivables disclosed under note no. 8 ‘Contract assets’.
(b) The Company has a total net receivable of ` 850.69 crores (including interest on arbitration awards ` 230.63 crores) which is a part
of Trade Receivables shown under note no. 5 towards arbitration awards which are won by the Company in past, these arbitration
awards have been further challenged by the customers before the session court or higher courts of law. Pending disposal of these
matters in the courts, management has recognized the amount as per the arbitration award and part payment has been received by
management under Niti Aayog Scheme upon submission of a bank guarantee by the Company. Management is confident about the
recovery of the amounts involved in the pending matters at various levels.
Note 44.
The Joint control operation and subsidiaries have mentioned in their financial statement that as per the terms of agreement the Afcons
Infrastructure Limited is committed to provide additional funds as may be required to meet the working capital requirements of Jointly
Controlled Operations. The aforementioned has been disclosed by a few subsidiaries as well.
Basis management’s assessment, Afcons is committed to provide and can adequately source additional funds as may be required to meet
the working capital requirements of these Jointly Controlled Operation/Subsidiary.
Note 45.
The Company is currently evaluating the options to integrate Transtonnelstroy Afcons Joint Venture with Afcons. The said integration will be
subject to necessary approvals of shareholders, creditors, clients, bankers and other authorities as may be required.
Note 46.
On accounts of second wave of Covid 19, most of the states have declared lock down but have allowed infrastructure activity to be
continued.
The Management and the Board of Directors have evaluated the impact of the pandemic on its business operations. The Company
currently has a strong order book in excess of ` 30,000 crores (including L1), leading to a clear visibility of revenue over the next 18-24
months. Collection from customers have been normal during the lockdown period enabling the Company to meet all its liabilities (including
employee payables) in a timely manner and without availing any moratorium as announced by the Reserve Bank of India. The Company
has adequate unutilized fund-based credit facilities available, to take care of any urgent requirement of funds. The Company throughout
the lockdown period and even subsequently has been able to maintain adequate control of its assets and there have been no significant
changes to its control environment during the period.
Based on the above assessment, the Company strongly believes that there is no material impact of Covid 19 on these standalone financial
statements. The Company has also made a detailed assessment of its liquidity position for the next 12 months from the balance sheet date.
Further, there is no material impact foreseen on revenue and operating cash flow of the Company.
Accordingly, the pandemic is not likely to have a significant impact on the future operations, its profitability and recoverability of the carrying
value of its assets, as at March 31, 2021 and on its control environment. The Company will continue to closely monitor material changes to
future economic conditions, if any, as and when they arise.
46.1 Notes pertaining to entities where Note on Covid 19 has been given by the auditors in their respective financial statements:
(a) Afcons Zambia Branch
“We draw attention to Note 23 of the financial statements which indicates the impact of Covid-19.In January 2020, the World Health
Organisation declared COVID -19 to constitute a “Public Health Emergency of International Concern.” Since then, more cases have
been diagnosed, also in other countries. On 11th March 2020, the World Health Organisation (WHO) announced that the coronavirus
outbreak can be characterised as a pandemic and many governments have introduced various measures to combat the outbreak,
including travel restrictions and quarantines. The pandemic has resulted in some businesses closing and others performing lower than
the budget and lockdown of certain areas.
estimated at this time. Our opinion is not modified in respect of this matter.”
(b) Afcons Vijeta PES Joint Venture, Afcons JAL Joint Venture and Afcons Vijeta Joint Venture
“We draw attention to Note 24 to the Ind AS Financial Statements as regards to the management evaluation of COVID – 19 impact on
the future performance of the Joint Venture. Our opinion on the financial statements is not modified in respect of the above matter.”
(c) Afcons Sibmost Joint Venture Joint Venture, Afcons SMC Joint Venture and Afcons Infrastructure Limited and Vijeta Projects
and Infrastructures Limited Joint Venture
“We draw attention to Note 24 to the Ind AS Financial Statements as regards to the management evaluation of COVID – 19 impact on
the business operations and future performance of the Joint Venture. Our opinion on the financial statements is not modified in respect
of the above matter.
Further, our attendance at the physical inventory verification done by the management was impracticable under the current lock-down
restrictions imposed by the government and we have therefore, relied on the related alternative audit procedures to obtain comfort
over the existence and condition of inventory at year end.”
81
Notes forming part of the standalone financial statements as at and for the year ended 31st March, 2021 (Continued))
(d) Transtonnelstroy Afcons Joint Venture
“The coronavirus (Covid-19) outbreak (including the second wave) has impacted businesses globally in various forms and magnitude.
In India as well, the emergency measures, in form of lock-down, imposed by governments to contain the spread of Covid-19 have
led to disruption of businesses and economic activity. Pursuant to nationwide lockdown, as per the terms of contract, the Joint
venture invoked Force Majeure clause in the ongoing project of Kolkata Metro and suspended /partially stopped works at all project
sites (plants and offices). The Joint Venture, as far as ongoing UG-01 Project is concerned, invoked the ‘change in law’ clause by
linking time to time imposition of various statutory restrictions imposed by the Govt. of India and Govt. of West Bengal and notified
that the performance has been impacted. The Joint Venture has resumed operations in a phased manner as per directives from the
Government of India and State Government. The Employer (KMRCL/GC) considered the invocation of Force Majeure Clause, (in
place of “change in law” as requested by Joint Venture) of Contract and agreed to relief in the form of extension of time only, without
costs. The Joint Venture, in response, made contract clarifications in support of its claim of invocation of “change in law. Currently the
matter is under discussion.
The Supervisory Board is closely monitoring the impact of coronavirus pandemic on all aspects of its operations, including its liquidity
position, recoverability/carrying values of its trade receivables, inventory, property, plant and equipment, and contract assets as at
balance sheet date. The Supervisory Board has assessed this impact and future uncertainties resulting from Covid-19 based on the
information available till the date of approval of these financial statements, including discussions with various stakeholders, views from
experts and industry participants, forecasts by various agencies and organisations, market estimates, etc.
The Supervisory Board, based on assumptions and current estimates expects that the ongoing Kolkata metro project to be executed
by December 2021 and also the carrying amount of its assets as reflected in the balance sheet as at March 31, 2021 will be recovered.
Since the metro work at Chennai packages are completed there is no significant disruption on account of Covid-19 in those projects.
The actual impact of Covid-19 on the business operations may, however, differ from that assessed by the Supervisory Board as at the
date of approval of these financial statements. Due to the evolving nature of the pandemic and its response by various government
authorities, the Supervisory Board will continue to monitor developments to identify significant uncertainties in future periods that may
have an impact on our operations.”
(e) Dahej Standby Jetty Project Undertaking
“The coronavirus (Covid-19) outbreak (including the second wave) has impacted businesses globally in various forms and magnitude.
In India as well, the emergency measures, in form of lock-down, imposed by central and state governments to contain the spread of
Covid-19 have led to disruption of businesses and economic activity. Since the project executed by the Joint Venture is completed
and only the arbitration hearing for settlement of the claims against the customer is currently in process, the Supervisory Board do
not foresee any significant impact of Covid-19 on the Joint Venture and expects that the carrying amount of its assets as reflected in
the balance sheet as at 31st March 2021 will be recovered. The Supervisory Board will continue to monitor developments to identify
significant uncertainties in future periods that may have impact on Joint Venture.”
(f) Afcons Kuwait Branch
“The outbreak of the Coronavirus -The COVID-19 epidemic; has significantly impacted businesses around the world and led to
operations in a phased manner and has been able to continue its operations till the year end. Based on written representations, the
Management is closely monitoring the impact the COVID-19 pandemic on all aspects of its operations including significant accounting
judgements and estimates, inter-alia including its liquidity position, recoverability/carrying values of its trade receivables and contract
assets as at balance sheet date, and has evaluated and assessed the impact and future uncertainties resulting from Covid-19 based
on internal and external sources of information including, discussions and views from experts and industry participants, market
estimates, etc. based on the information available till the date of approval of these financial statements.
The management expects that the carrying amount of its assets as reflected in the Balance Sheet as at March 31, 2021 will be
recovered. However, the impact assessment of COVID19 is a continuing process given the uncertainties associated with its nature
and duration and accordingly the actual impact on the business operations, may be different from that estimated as at the date of
approval of these financial statements. The Management has confirmed that it will continue to monitor developments to identify
significant uncertainties and material changes in future periods that may have an impact on the operations of the branch.”
46.2 Notes pertaining to entities where Note on Going Concern has been given by the auditors in their respective financial
statements:
(a) Afcons Sener LNG Constructions Projects Pvt. Ltd.
Material uncertainty related to going concern:
“We draw attention to Note 19 to the standalone financial statements regarding, the company having incurred significant operational
losses since earlier years whereby it’s net worth has been completely eroded. These conditions indicate the existence of a material
uncertainty that may cast significant doubt about the company’s ability to continue as a going concern. However, the financial
statements of the Company have been prepared on a going concern basis for the reasons stated in the said Note.”
(b) Afcons Kuwait Branch
“Kuwait is considered a branch of the company, and its financial statements are consolidated with those of the company. The financial
statements have been prepared on the basis of accounting policies applicable to a going concern, presuming that funds will be
available to finance future operations, and that realization of assets and settlement of liabilities and commitments will occur in the
ordinary course of business.”
82
Note 47.
Tropical Cyclonic Storm Tauktae which originated in the Arabian Sea hit the western coast of India in Mid-May, 2021 and impacted Afcons,
which was carrying out revamp of offshore platforms for one of its customer with its consortium partner Halani-Tes-Nauvata. Cyclone
Tauktae caused damaged to project material, loss of life and vessels involved in the revamping of the offshore platforms. Company has
taken adequate insurance cover for damage of material and also insurance policies required to be maintained for its employees and sub-
contractors employees. Besides the statutory compensation eligible to employees from insurance companies, Afcons has agreed to pay
additional ex-gratia payment to all employees including sub-contracted employees, which is estimated to cost around ` 18 Crs. For the
chartered vessels the risk liabilities for damages lie with the vessel owner and no liabilities will involve on Afcons or its customer.
Note 48. Financial instruments
48.1 Capital management
The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to stakeholders
through the optimisation of the debt and equity balance.
The capital structure of the Company consists of net debt (borrowings as detailed in notes 14 ,16 and 20 offset by cash and bank balances)
and total equity of the Company.
The Company reviews the capital structure on a regular basis. As part of this review, the Company considers the cost of capital and the
risks associated with each class of capital. The gearing ratio at March 31, 2021 is 0.60 (net debt/equity).
48.1.1 Gearing ratio
The gearing ratio at end of the reporting period was as follows. (` in Crores)

st
st
Debt (i) 1,583.54 1,605.08

Cash and bank balances 363.61 293.59
Net debt 1,219.93 1,311.49
Total Equity (ii) 2,020.37 1,915.49
Net debt to equity ratio 0.60 0.68
(i) Debt is defined as long-term and short-term borrowings (excluding derivative, financial guarantee contracts as described in notes 14,
16 and 20 and includes interest accrued but not due on borrowings)
(ii) Equity includes all capital and reserves of the Company that are managed as capital.
48.2 Categories of financial instruments

The following table provides categorisation of all financial instruments at carrying value except non-current investments in un-quoted equity
instruments, which are carried at cost.
(` in Crores)
Financial assets
Measured at fair value through profit or loss (FVTPL)
(a) Mandatorily measured:
(i) Mutual fund investments - -
(a) Trade receivables 2,839.46 2,823.03
(b) Cash and bank balances 363.61 293.59
(c) Bank balance other than (b) above 90.22 108.09
(d) Loans 70.50 60.90
(e) Other financial assets 386.93 335.68
Measured at FVTOCI
(a) Investments in equity instruments 0.40 0.15
Total Financial Assets 3,751.12 3,621.44
Financial liabilities
(a) Borrowings 1,583.54 1,605.08
(b) Trade payables 3,359.90 3,668.26
(c) Other financial liabilities 458.98 318.27
Total Financial Liabilities 5,402.42 5,591.61
48.3 Financial risk management objectives

The Company’s corporate treasury function provides services to the business, co-ordinates access to domestic and international financial
markets, monitors and manages the financial risks relating to the operations of the Company through internal risk assessment and analyses
forex exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price
risk), credit risk and liquidity risk.
83
The risk management is governed by the Company’s policy approved by the board of directors, which provide written principles on foreign
exchange risk, interest rate risk, the use of financial derivatives and non-derivative financial instruments. Compliance with policies and
exposure limits is reviewed on a continuous basis. The Company does not enter into or trade financial instruments, including derivative
financial instruments for speculative purposes.
48.4 Market risk
The Company’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The
Company enters into a variety of derivative financial instruments to manage its exposure to foreign currency risk and interest rate risk.
Derivatives instruments are only used for economic hedging purposes and not as speculative investments. All such transactions are carried
out within the guidelines set by the Board of Directors.
48.5 Foreign currency risk management
The Company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions in various
countries. Foreign currency risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency
that is not the Company’s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows.
The objective of the hedges is to minimize the volatility of the INR cash flows. Company enters into a board approved list of derivative
financial instruments to manage its exposure to foreign currency and mainly uses a combination of foreign currency option contracts,
foreign exchange forward contracts to hedge its exposure in foreign currency risk.
The carrying amounts of the Company’s unhedged foreign currency denominated monetary assets and monetary liabilities at the end of
the reporting period are as follows:
Particulars Liabilities Assets

As at 31st March, 2021 As at 31st March, 2021
Amount in foreign (` in Crores) Amount in foreign (` in Crores)
currency (in Crores) currency (in Crores)
USD Currency 2.77 203.12 4.06 296.97
EURO Currency 2.32 198.97 0.22 19.15
QAR Currency 13.19 265.34 13.69 275.36
OMR Currency 0.00 0.17 - -
MUR Currency 214.96 387.09 237.05 426.85
UAE Currency 0.16 3.19 5.04 100.53
JOD Currency 0.85 88.41 0.87 89.68
BHD Currency 0.01 2.53 0.00 0.01
KWD Currency 1.10 265.68 1.27 308.95
GBP Currency 0.00 0.23 - -
JPY Currency 13.40 8.86 - -
BDT Currency 432.63 373.75 332.48 287.23
SAR Currency - - 0.04 0.85
GHS Currency 47.17 601.66 19.59 249.90
SGD Currency 0.01 0.64 - -
GNF Currency 25.12 0.19 - -
ZMW Currency 113.62 377.00 - -
MZN Currency 156.53 164.54 191.38 201.17
MRU Currency 161.34 329.61 96.50 197.13
BTN Currency 27.45 27.45 0.52 0.52
TZS Currency 691.16 21.84 117.63 3.72
XAF Currency 271.56 35.57 - -
84

Amount in foreign (` in Crores) Amount in foreign (` in Crores)
currency (in Crores) currency (in Crores)
USD Currency 3.42 258.95 4.06 307.18
EURO Currency 0.89 74.07 0.17 13.84
QAR Currency 3.90 81.03 4.21 87.46
OMR Currency 0.00 0.09 0.00 0.00
MUR Currency 208.55 403.55 220.65 426.96
UAE Currency 0.15 3.08 4.57 94.16
JOD Currency 0.94 100.75 0.90 95.98
BHD Currency 0.01 2.73 0.00 0.01
KWD Currency 1.67 403.27 2.42 585.62
BDT Currency 29.85 26.64 96.33 85.98
SAR Currency 0.00 0.04 0.04 0.81
GHS Currency 72.35 960.54 40.97 543.94
CHF Currency 0.01 0.43 - -
ZMW Currency 138.73 578.93 - -
MZN Currency 123.66 141.61 113.63 130.12
MRU Currency 111.21 227.72 - -
BTN Currency 49.91 49.91 19.68 19.68
48.5.1 Foreign currency sensitivity analysis

The Company is mainly exposed to the currency of USD, EURO,KWD,GHS,ZMW,MUR, MZN and MRU.
The following table details the Company’s sensitivity to a 5% increase and decrease in the Indian Rupee against the relevant foreign
currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents
management’s assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the exposure
outstanding on receivable and payables in the Company at the end of the reporting period.The sensitivity analysis includes only outstanding
foreign currency denominated monetary items and adjusts their translation at the period end for a 5% change in foreign currency rates. A
positive number below indicates an increase in the profit or equity where the Indian Rupee strengthens 5% against the relevant currency.
For a 5% weakening of the Rupee against the relevant currency , there would be a comparable impact on the profit or equity, and the
balances below would be negative. The impact of 5 % is also applicable on outstanding foreign currency loans as on the reporting date.
Particulars USD Currency Impact Euro Currency Impact KWD Currency Impact
2020-2021 2019-2020 2020-2021 2019-2020 2020-2021 2019-2020
Impact on profit or loss for the year
Increase in exchange rate by 5% 4.69 2.41 (8.99) (3.01) 2.16 9.12
Decrease in exchange rate by 5% (4.69) (2.41) 8.99 3.01 (2.16) (9.12)
Particulars GHS currency impact ZMW currency impact MUR currency impact
2020-2021 2019-2020 2020-2021 2019-2020 2020-2021 2019-2020
Increase in exchange rate by 5% (17.59) (20.83) (18.85) (28.95) 1.99 1.17
Decrease in exchange rate by 5% 17.59 20.83 18.85 28.95 (1.99) (1.17)
Particulars MZN currency impact MRU currency impact

2020-2021 2019-2020 2020-2021 2019-2020
Increase in exchange rate by 5% 1.83 (0.57) (6.62) (11.39)
Decrease in exchange rate by 5% (1.83) 0.57 6.62 11.39
In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end
of the reporting period does not reflect the exposure during the year.
48.5.2 Derivative financial instruments
There are no derivative financial instruments outstanding at the end of the reporting period.
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48.6 Interest rate risk management
The Company is exposed to interest rate risk because entities in the company borrow foreign currency and local currency funds at floating
interest rates. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite, ensuring the most cost-
effective hedging strategies are applied.
The Company’s exposure to interest rate changes at the end of reporting period are as follows: (` in Crores)
Particulars Year ended Year ended
Borrowing at Fixed Rate 1,006.01 1,136.23
Borrowing at Floating Rate 572.82 468.85
Total Borrowings 1,578.83 1,605.08
48.6.1 Interest rate sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to interest rates for both derivatives and non-derivative
instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability
outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when
reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible
change in interest rates.
If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Company’s profit for the year ended
March 31, 2021 would decrease/increase by ` 2.86 crores (March 31, 2020: decrease/increase by ` 2.34 crores). This is mainly attributable
to the Company’s exposure to interest rates on its variable rate borrowings.
48.7 Other price risks
The Company is exposed to equity price risks arising from mutual funds and equity investments. Certain of the Company’s equity
investments are held for strategic rather than trading purposes.
Mutual fund investments are susceptible to market price risk, mainly arising from changes in the interest rates or market yields which may
impact the return and value of such investments. However, due to the very short tenure of the underlying portfolio in the liquid schemes,
these do not hold any significant price risks.
48.7.1 Equity price sensitivity analysis

The sensitivity analyses below have been determined based on the exposure to equity price risks at the end of the reporting period.
If equity prices had been 5% higher/lower:
Other comprehensive income for the year ended March 31, 2021 would increase / decrease by ` 0.01 crores (2019-2020: increase /
decrease by ` 0.02 crores) as a result of the changes in fair value of equity investments measured at FVTOCI.
48.8 Credit risk management
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial
loss. Credit risk arises from investment in debt instruments, loans, trade receivables, other receivables, cash and bank balance and
derivative financial instruments.
The Company is exposed to credit risk on its financial assets, which comprise cash and cash equivalents, bank deposits, trade receivables
and loan receivables. The exposure to credit risks arises from the potential failure of counterparties to meet their obligations. The maximum
exposure to credit risk at the reporting date is the carrying amount of the financial instruments.
Cash and cash equivalents, bank deposits are held with only high rated banks/financial institutions, credit risk on them is therefore
insignificant.
Trade receivables and loan receivable
The Company assesses and manages credit risk on an internal credit evaluation system. It is performed by the finance team in conjunction
with the relevant business teams depending on the nature and type of the financial asset being evaluated.
The customer base of the Company, is highly comprises of government parties and Holding Company. Further, Company is having certain
short term loan receivables from the Group entities. Collateral is generally not obtained from customers. Other customers are subject to
credit verification procedures including an assessment of their independent credit rating, financial position, past experience and industry
reputation.
(A) To measure the expected credit losses on (a) trade receivables from government parties, and (b) trade receivables and loan receivables
from group companies, they have been considered to enjoy the low credit risk as they meet the following criteria:
i) they have a low risk of default,
ii) the counterparty is considered, in the short term, to have a strong capacity to meet its obligations in the near term, and
iii) the Company expects, in the longer term, that adverse changes in economic and business conditions might, but will not
necessarily, reduce the ability of the borrower to fulfill its obligations.
(B) Cash and cash equivalents, bank deposits are held with only high rated banks/financial institutions, credit risk on them is therefore
insignificant.
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(C) For other trade receivables (including contract assets), the Company uses “General Model” for the measurement of expected credit
loss (ECL) for trade receivables as well as contract asset
The measurement of ECL under general model depends on whether credit risk has increased significantly since initial recognition.
These credit risk is regularly monitored based on historic turnover activity and credit performance of every customer. In addition,
overdue receivable balances are monitored and actioned on a regular basis. When the credit risk has not increased significantly after
initial recognition, a provision shall be made for the 12-month expected loss, otherwise shall be made for the entire lifetime.
The Company considers the probability of default upon initial recognition of asset and whether there is a significant increase in
credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk, the
Company compares the risk of default occurring on the asset as at the reporting date with the risk of default as at the date of initial
recognition. It considers available reasonable and supportive forward-looking information which considers multiple factors such as:
- internal credit rating
- external credit rating (as far as available)
- actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a
significant change to the borrower’s ability to meet its obligations
- actual or expected significant changes in the operating results of the borrower
- significant increase in credit risk on other financial instruments of the same borrower
- significant changes in the value of the collateral supporting the obligation or in the quality of third-party guarantees or credit
enhancements
- significant changes in the expected performance and behaviour of the borrower, including changes in the payment status of
borrowers in the Company and changes in the operating results of the borrower.
The Company has used practical expedient by computing expected credit loss allowance for trade receivable by taking into consideration
payment profiles of sales over a period of 60 months before the reporting date and the corresponding historical credit loss experiences
within this period. The historical loss rates are adjusted to reflect current and forward looking information on macro economic factors
affecting the ability of the customers to settle the receivables. The expected credit loss is based on the Ageing of the days, the receivables
due and the expected credit loss rate. In addition, in case of event driven situation as litigations, disputes, change in customer’s credit risk
history, specific provisions are made after evaluating the relevant facts and expected recovery.
Refer note 5 and note 8 for reconciliation of expected credit loss balance on financial assets.
48.9 Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the management, which has established an appropriate liquidity risk
management framework for the management of the Company’s short-term, medium-term, and long-term funding and liquidity management
requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by
continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
48.9.1 Liquidity risk table
The following table details the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment
periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which
the Company can be required to pay. The tables include principal cash flows along with interest. To the extent that interest flows are floating
rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on
the earliest date on which the Company may be required to pay.
(` in Crores)
Particulars Weighted average effective Upto 1 year 1 to 5 years 5+years Total
interest rate (%)
31st March, 2021
Borrowings 8.26% 1,171.09 533.90 17.07 1,722.06
Trade payables 2,907.64 452.26 - 3,359.90
Other financial liabilities 203.25 248.59 - 451.84
4,281.98 1,234.75 17.07 5,533.80
31st March, 2020
Borrowings 8.51% 1,085.96 619.90 48.91 1,754.77
Trade payables 3,111.14 557.12 - 3,668.26
4,380.03 1,306.48 48.91 5,735.42
The Company is exposed to credit risk in relation to guarantees given. The Company’s maximum exposure in this respect is the maximum
amount the Company could have to pay if the guarantee is called on. Based on expectations at the end of the reporting period, the
Company considers that it is more likely that such an amount will not be payable under the arrangement. However, this estimate is subject
to change depending on the probability of the counterparty claiming under the guarantee which is a function of the likelihood that the
beneficiary under the guarantee may default.
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48.10 Fair value measurements
This note provides information about how the Company determines fair values of various financial assets and financial liabilities.
48.10.1 Fair value of the Company’s financial assets and financial liabilities that are measured at fair value on a recurring basis
Some of the Company’s financial assets and financial liabilities are measured at fair value at the end of each reporting period. The following
table gives information about how the fair values of these financial assets and financial liabilities are determined (in particular, the valuation
technique(s) and inputs used).
(` in Crores)
Financial assets / financial Fair value Fair value Valuation technique(s) and key input(s)
liabilities As at As at hierarchy
Investments in equity 0.40 0.15 Level 1 The investment in quoted instruments are
instruments at FVTOCI measured at fair value based on quoted prices
(quoted) (see note 1) in active market.
Note 1: These investments in equity instruments are not held for trading. Instead, they are held for medium or long-term strategic purpose.
Upon the application of Ind AS 109, the group has chosen to designate these investments in equity instruments as at FVTOCI as the
directors believe that this provides a more meaningful presentation for medium or long-term strategic investments, than reflecting changes
in fair value immediately in profit or loss.
48.10.2 Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are
required)
The carrying amounts of the following financial assets and financial liabilities (other than Long Term Borrowings) are a reasonable
approximation of their fair values. Accordingly, the fair values of such financial assets and financial liabilities have not been disclosed
separately.
a) Financial Assets
Cash and bank balances
Bank balance other than above
Trade receivables
Loans
Other financial assets
b) Financial Liabilities
Short-term borrowings
Trade payables
Other financial liabilities
Lease Liabilities
The carrying amount and fair value of Long Term Borrowings, which are measured at amortised cost is disclosed in table below :
(` in Crores)
Carrying amount Fair value Carrying amount Fair value
Financial liabilities held at amortised cost: 747.82 750.74 668.85 676.99
- Borrowings 747.82 750.74 668.85 676.99
Note No 49. Disclosure pursuant to Ind AS 115, “Revenue from Contracts with Customers”.
(i) Disaggregation of revenue from contracts with customers into geographical areas for the year ended March 31, 2021
recognised in the statement of profit & loss
(` in Crores)
Segment revenue
India 6,026.27 6,094.98
Outside India 2,904.40 3,159.99
Revenue from external customers 8,930.67 9,254.97
Timing of revenue recognition
At a point in time 126.07 75.25
Over time 8,804.60 9,179.72
8,930.67 9,254.97
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(ii) Unsatisfied performance obligations:
The aggregate amount of transaction price allocated to performance obligation that are unsatisfied as at the end of reporting period
is ` 28,276.92 Crores (Previous year ` 27,847.18 Crores). Management expects that about 30% of the transaction price allocated to
unsatisfied contracts as of 31st March, 2021 will be recognized as revenue during next reporting period depending upon the progress
of each contracts. The remaining amount is expected to be recognised in subsequent years..
(iii) Reconciliation of contract price with revenue recognised during the year: (` in Crores)
Particulars Amount
Revenue as per contract price 9,130.91
Adjustments for:
Payments on behalf of customer (200.24)
Revenue from Operations 8,930.67
(iv) Significant changes to Contract Asset and Contract Liability from April 1, 2020 to March 31, 2021
(` in Crores)
Particulars Contract Assets Contract Liabilities
April 1, 2020 4,686.49 4,531.68
Changes in Contract Asset/ Liabilities (860.58) (520.24)
March 31, 2021 3,825.91 4,011.44
* The contract assets and liabilities undergo a change periodically, due to changes in the contractual estimates for the projects on
account of any change in scope of work, unprecedented delays, etc. During the year the Company has additionally recognised a loss
allowance for contract assets in accordance with Ind AS 109. The company has also estimated additional costs to be incurred on
various projects due to Covid-19 pandemic.
(v) - For movement in Expected Credit Loss of Trade Receivables and Contract Assets, refer Note 8.1 of the financial statement.
- For Trade Receivables refer Note 5 of the financial statement.
- For Contract liabilities of the Consolidated refer Note 17 of the financial statement.
(vi) Contracts assets and liabilities balance (` in Crores)
Contracts in progress at the end of the reporting period:
Construction cost incurred plus recognised profits less recognised loss to date 31,314.00 22,522.66
Less : Progress billings 28,948.09 18,959.82
2,365.91 3,562.84
Recognised and included in the financial statements as amounts due :
- from customers under construction contracts 3,825.91 4,686.49
- to customers under construction contracts (1,460.00) (1,123.65)
2,365.91 3,562.84
(vii) The Company recognised revenue amounting to ` 933.64 crores in the current reporting year (Previous year ` 604.53 crores) that was
included in the contract liability as of April 01, 2020
Note 50 - Disclosure pursuant to Ind AS 116 “Leases”.
The Company leases land and buildings. Rental contracts are typically made for fixed periods of 12 months to 6 years, but may have
extension options as described in (ii) below.
(i) Amounts recognised in the balance sheet
a. Right-to-use assets (` in Crores)
Land 3.C 15.38 12.61
Building 3.C 10.84 30.86
b. Lease Liabilities (` in Crores)

Current - 14.53 29.23
Non-current - 13.12 16.47
89
(ii) Amounts recognised in the statement of profit and loss (` in Crores)
Particulars Note Year ended Year ended
Expense relating to short-term leases (included in other expenses) 29 364.46 368.45
Expense relating to leases of low-value assets that are not shown 29 0.16 0.30
above as short-term leases (included in other expenses)
Expense relating to variable lease payments not included in lease 29 - -
liabilities
Interest on lease liability 27 3.18 4.54
Depreciation during the year 28 30.73 29.25
Total 398.53 402.54
** Rent expense relating to short term leases of identified assets and variable lease payments under Ind AS 116 included in Note 24.1
and Note 29 as mentioned above stands to ` 364.46 Cr. However, the total of rent and hire charges included in Note 24.1 and Note
29 stands at ` 510.62 Cr, the differential of ` 146.16 Cr is on account of hire charges of the assets which are unidentified assets under
Ind AS 116.
(iii) Maturities of lease liabilities as at March 31, 2021 (` in Crores)

Particulars Upto 1 year 1-5 years 5 and More years Total
Lease liabilities 15.01 16.10 0.28 31.39
15.01 16.10 0.28 31.39
(iv) Total cash outflow for leases for the year ended 31st March, 2021 was ` 31.54 cr
(v) Extension and termination options
Extension and termination options are included in a number of Land, Office Premises, Houses and Godowns leases across the
company. These are used to maximise operational flexibility in terms of managing the assets used in the Company’s operation. The
majority of extension and termination options held are exercisable only by the Company and not by the respective lessor.
(vi) Practical expedients applied :
In applying Ind AS 116 for the first time, the Company has used the following practical expedients permitted by the standard:
- applying a single discount rate to a portfolio of leases with reasonably similar characteristics
- accounting for operating leases with a remaining lease term of less than 12 months as at 1st April, 2020 as short-term leases
- using hindsight in determining the lease term where the contract contains option to extend or terminate the lease
- excluding initial direct costs for the measurement of the right-of-use asset at the date of initial application.
(vii) Lessor accounting
The Company did not need to make any adjustments to the accounting for assets held as lessor under operating leases as a result of
the adoption of Ind AS 116.
Note 51.
The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the Company towards
Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on
November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company
will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the
period in which, the Code becomes effective and the related rules to determine the financial impact are published.
Note 52.
The financial statement was approved and adopted by the board of directors during the Board Meeting held on 30th June, 2021

90
Consolidated financial statement of afcons infrastructure limited
and its subsidiaries, associates and joint ventures (afcons group)
INDEPENDENT AUDITOR’S REPORT

To the Members of Afcons Infrastructure Limited
Report on the Audit of the Consolidated Financial Statements
Opinion
1. We have audited the accompanying consolidated financial statements of Afcons Infrastructure Limited (the “Parent”) which includes
20 branches at Mauritius, Liberia, Bangladesh (2), Ghana, Zambia, Bhutan, Jordan, Bahrain, Kuwait, Saudi Arabia, Mozambique,
Mauritania, Oman, Abu Dhabi, Qatar, Indonesia, Iraq, Tanzania and Gabon and 14 jointly controlled operations consolidated on a
proportionate basis and its 12 subsidiaries (Parent, branches, jointly controlled operations and its subsidiaries together referred
to as “the Group”) (refer Notes 2(a) and 2(b ) to the attached consolidated financial statements), which comprise the consolidated
Balance Sheet as at March 31, 2021, and the consolidated Statement of Profit and Loss (including Other Comprehensive Income) ,
the consolidated statement of changes in equity and the consolidated cash flows Statement for the year then ended, and notes to the
consolidated financial statements, including a summary of significant accounting policies and other explanatory information prepared
based on the relevant records. (hereinafter referred to as “the consolidated financial statements”).
2. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid consolidated financial
statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view
in conformity with the accounting principles generally accepted in India, of the consolidated state of affairs of the Group as at March
31, 2021, of consolidated total comprehensive income (comprising of profit and other comprehensive income), consolidated changes
in equity and its consolidated cash flows for the year then ended.
Basis for Opinion
3. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial
Statements section of our report. We are independent of the Group, in accordance with the ethical requirements that are relevant to
our audit of the consolidated financial statements in India in terms of the Code of Ethics issued by ICAI and the relevant provisions
of the Act, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit
evidence we have obtained and the audit evidence obtained by the other auditors in terms of their reports referred to in paragraph 15
of the Other Matters section below, other than the unaudited financial statements/ financial information as certified by the management
and referred to in paragraph 16 of the Other Matters section below, is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter
4. We draw attention to the following matters:
a) Note 47 to the Consolidated financial statements which describes the management’s assessment of the impact of the outbreak of
Coronavirus (Covid-19) on the business operations of the Group. The Group believes that no additional adjustments are required
in the financial statements, however, in view of various preventive measures taken (such as complete lock-down including travel
restrictions) and highly uncertain economic environment, a definitive assessment of the impact on the subsequent periods is
highly dependent upon circumstances as they evolve.
b) Note 40 of the Consolidated financial statements, regarding delay in recovery of ` 181.99 Crores and ` 3.62 crores from a
customer which are disclosed under note 8 ‘Contract assets’ and note 5 ‘Trade receivables” respectively, which is dependent
upon finalization of arbitration award in favour of the Company. In addition, the Company has preferred two claims in respect of
the same project as mentioned in the note.
c) Note 36 (b) of the Consolidated financial statements, regarding delay in recovery of advances of ` 189.98 Crores from Afcons
Gunanusa Joint Venture (a jointly controlled operation) in respect of a project which is dependent upon finalisation of arbitration
award in favour of the jointly controlled operation.
d) Audit report on the Standalone financial statements of Transtonnelstroy Afcons (a jointly controlled operation) issued by an
“We draw attention to Note 32 to the Financial Statements, which describes the uncertainties relating to the outcome of the
negotiation/arbitration/ Dispute Adjudication Board proceedings in respect of variations recognised by the joint venture in current
and earlier years, on account of cost overruns due to unforeseen geological conditions, delays in handing over of land, change
in scope of work, etc. Based on the Management’s estimates of the timing and amount of recoverability, which is supported by
technical evaluation, the amounts recognised as amount due from customers under construction contract as stated above are
considered as good and fully recoverable by the management.
Our opinion is not modified in respect of this matter.”
Note 32 as described above is reproduced as note 37(a) to the Consolidated Financial Statements.
Further, in respect of the matter emphasized above, we draw attention to Note 37(b) of the Consolidated financial statements,
regarding delay in recovery of receivable amount of ` 959.91 Crores from Transtonnelstroy Afcons (the Jointly controlled
operation) in respect of the project, which is dependent upon finalization of arbitration award in favour of the jointly controlled
operation.
e) Audit report on the financial statements of Afcons Zambia branch issued by an independent firm of auditors vide its report dated
May 27, 2021 includes an emphasis of matter paragraph which is reproduced by us as under:
“We draw attention to Note 23 of the financial statements which indicates the impact of Covid-19.
In January 2020, the World Health Organisation declared COVID -19 to constitute a “Public Health Emergency of International
Concern.” Since then, more cases have been diagnosed, also in other countries.
91
On 11 March 2020, the World Health Organisation (WHO) announced that the coronavirus outbreak can be characterised as a
pandemic and many governments have introduced various measures to combat the outbreak, including travel restrictions and
quarantines. The pandemic has resulted in some businesses closing and others performing lower than the budget and lockdown
of certain areas.
estimated at this time. Our opinion is not modified in respect of this matter”
Note 23 as described above is reproduced as 47.1 (a) to the Consolidated Financial Statements.
f) Audit report on the financial statements of Afcons Vijeta PES Joint Venture, Afcons JAL Joint Venture and Afcons Vijeta Joint
Venture issued by an independent firm of chartered accountants vide its report dated June 29, 2021 includes an emphasis of
matter paragraph which is reproduced by us as under:
above matter.”
Note 24 as described above is reproduced as 47.1 (b) to the Consolidated Financial Statements.
g) Audit report on the financial statements of Afcons Sibmost Joint Venture, Afcons SMC Joint Venture and Afcons Infrastructure
Limited and Vijeta Projects and Infrastuctures Limited Joint Venture issued by an independent firm of chartered accountants vide
its report dated June 29, 2021 includes an emphasis of matter paragraph which is reproduced by us as under:
Note 24 as described above is reproduced as 47.1 (c) to the Consolidated Financial Statements.
h) Audit report on the financial statements of Afcons Sener LNG Construction Projects Private Limited issued by an independent
firm of chartered accountants vide its report dated June 29, 2021 includes an emphasis of matter paragraph which is reproduced
by us as under:
“Material uncertainty related to going concern
losses since earlier years whereby it’s net worth has been completely eroded. These conditions indicate the existence of a
material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern. However, the
financial statements of the Company have been prepared on a going concern basis for the reasons stated in the said Note.”
Note 19 as described above is reproduced as note 47.2 (a) to the Consolidated Financial Statements.
i) Audit report on the Standalone financial statements of Afcons Infrastructure Ltd- Kuwait Operations branch issued by an
“Kuwait is considered a branch of the company, and its financial statements are consolidated with those of the company. The
financial statements have been prepared on the basis of accounting policies applicable to a going concern, presuming that funds
will be available to finance future operations, and that realization of assets and settlement of liabilities and commitments will occur
in the ordinary course of business.
statements.
j) Audit report on the financial statements of Afcons Overseas Singapore Pte Ltd. (a subsidiary) issued by an independent firm of
chartered accountants vide its report dated June 23, 2021 includes an emphasis of matter paragraph which is reproduced by us
as under:
“The outbreak of the Coronavirus – The Covid -19 epidemic; has significantly impacted business around the world and led to
disruption of business and economic activity.
As informed to us, the operations of the subsidiary were partially impacted, following lockdown, nonetheless, the subsidiary
resumed operations in a phased manner and has been able to continue operations till the year end. Based on written
representations, the Management is closely monitoring the impact of Covid-19 pandemic on all aspects of its operations including
92
significant accounting judgements and estimates, inter-alia including assets as at balance sheet date, and has evaluated and
assessed the impact and future uncertainties resulting from Covid-19 based on internal and external sources of information
including, discussion and views from experts and industry participants, market estimates, etc. based on the information available
till date of approval of these financial statements.
be recovered. However, the impact assessment of Covid-19 is a continuing process given the uncertainties associated with its
nature and duration and accordingly the actual impact on the business operations, may be different from that estimated as at
the date of approval of these financial statements. The management has confirmed that it will continue to monitor developments
to identify significant uncertainties and material changes in future periods that may have an impact on the operations of the
subsidiary.”
k) Audit report on the financial statements of Afcons Construction Mideast LLC Dubai (a Subsidiary) issued by an independent firm
of chartered accountants vide its report dated June 23, 2021 includes an emphasis of matter which is reproduced by us as under:
“Without qualifying our opinion, we draw attention to note 2 to the financial statements relating to the going concern consideration.
The continuance of the Company’s operations is dependent on the introduction of sufficient funds by the shareholders and its
future profitability.
resumed operations in a phased manner and has been able to continue its operations till the year end. Based on written
representations, the Management is closely monitoring the impact the COVID-19 pandemic on all aspects of its operations
including significant accounting judgements and estimates, inter-alia including its liquidity position, recoverability/carrying values
of its trade receivables and contract assets as at balance sheet date, and has evaluated and assessed the impact and future
uncertainties resulting from Covid-19 based on internal and external sources of information including, discussions and views
from experts and industry participants, market estimates, etc. based on the information available till the date of approval of these
recovered. However, the impact assessment of COVID-19 is a continuing process given the uncertainties associated with its
the date of approval of these financial statements. The Management has confirmed that it will continue to monitor developments
subsidiary.”
Note 2 as described above is reproduced as note 47.2 (c) to the Consolidated Financial Statements.
Our opinion is not modified in respect of the above matters.
Key Audit Matters
5. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated
financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Estimation of contract cost and revenue recognition Our procedures over the recognition of construction revenue included the
(Refer note 1.B.3 and 22 to the consolidated financial following:
statements) • Understood and evaluated the design and tested operating
The Contract prices for engineering, procurement and effectiveness of key internal financial controls, including those
construction contracts, which usually extend over a related to review and approval of estimated project cost and review of
period of 2-3 years, are fixed / subject to price variance provision for estimated loss by the authorised personnel.
clauses. • For sample of contracts, we obtained the percentage of completion
The contract revenue is measured based on the calculations, agreed key contractual terms back to signed contracts,
proportion of contract costs incurred for work performed tested the mathematical accuracy of the cost to complete calculations
to date relative to the estimated total contract costs, and re-performed the calculation of revenue recognized during the
except where this would not be representative of the year based on the percentage of completion.
stage of completion. • For costs incurred till date, we tested samples to appropriate
This method requires the w to perform an initial supporting documentation and performed cut-off procedures.
assessment of total estimated cost and further, • To test the forecasted cost to complete, we obtained the breakdown
reassess the total construction cost at each reporting of forecasted costs and tested elements of the forecast by
period to determine the appropriate percentage of obtaining executed purchase orders and agreements, evaluating
completion. reasonableness of the assumptions underlying management’s
We considered the estimation of construction contract judgements (including those related to contract performance under
cost as a key audit matter given the involvement the lockdown and other restrictions imposed by government), using
of significant management judgement which has past trends and comparing the estimated costs to the actual costs
consequential impact on revenue recognition. incurred for the similar completed projects.
• Checked the appropriateness of disclosures made in the consolidated
financial statements pursuant to requirements of applicable accounting
standards.
Based on the procedures performed above, we considered manner of
estimation of contract cost and recognition of revenue to be reasonable.
93
Valuation of contract assets and accounts Our audit incorporated the following procedures with regard to accounts
receivable in view of risk of credit losses receivables and contract assets;
(Refer to Note 5 and 8 to the consolidated financial • Understood and evaluated the accounting policy of the Group for
statement) provisioning against expected credit losses.
Accounts receivables and contract assets amounting • Evaluated the design and tested the operating effectiveness of key
to ` 3049.40 crores & ` 3948.40 crores respectively controls in relation to determination of expected credit losses and
(including retention receivables) are significant item provisioning against the same.
in the Group’s consolidated financial statements as at • Inquired with senior management regarding status of collectability of
March 31, 2021 and assumptions used for estimating the receivable /contract assets.
the credit loss on receivables and contract assets is an
area which is influenced by management’s judgment. • Held discussions with the audit committee on the basis of provision
against significant and long outstanding balances.
The Group makes an assessment of the estimated
credit losses basis credit risk, project status, past • Reviewed the correspondence with customers to assess recoverability
history, latest discussion/ correspondence with the of the receivables.
customer. • Perused the chartered engineer reports obtained by the management
The Group has a concentration of credit exposure in respect of status of various on-going projects, to assess the validity
on certain customers, which include government and of Group’s claims.
private organisations as well where there are delays in • Perused the legal opinions obtained by the management to assess
collections due to various reasons. The management the recoverability of claims in respect of disputed matters, and with
has assessed the appropriateness of provisions the involvement of auditor’s experts assessed the adequacy and
recognised on receivables and contract assets, basis necessity of provision against the receivables.
factors such as the credit risk of the customer, status • Assessed appropriateness of the underlying information used by the
of the project, discussions with the customers and Management to determine the expected credit losses by considering
contractual terms. This involves significant judgement. credit risk of the customer, cash collection, performance against
Given the relative significance of these receivables/ historical trends, status of projects and the level of credit loss charges
contract assets to the consolidated financial statements over time;
and the nature and extent of audit procedures involved Based on our procedures as stated above, no significant deviations were
to assess the recoverability of receivables/contract observed in respect of management’s assessment of valuation of accounts
assets, we determined this to be a key audit matter. receivables and contract assets.
Other Information
6. The Parent’s Board of Directors are responsible for the other information. The other information comprises the information included
in the Board report but does not include the consolidated financial statements and our auditor’s report thereon. The Board report is
expected to be made available to us after the date of this auditor’s report.
Our opinion on the consolidated financial statements does not cover the other information and we will not express any form of
assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above
when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the consolidated
financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. When we read the Board
reports, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with
governance and take appropriate action as applicable under the relevant laws and regulations .
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
7. The Parent’s Board of Directors are responsible for the preparation and presentation of these consolidated financial statements in term
of the requirements of the Act that give a true and fair view of the consolidated financial position, consolidated financial performance
and consolidated cash flows, and changes in equity of the Group in accordance with the accounting principles generally accepted in
India, including the Accounting Standards specified under section 133 of the Act. The respective Board of Directors of the companies
included in the Group are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act
for safeguarding the assets of the Group and for preventing and detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation
and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated
financial statements by the Directors of the Parent, as aforesaid.
8. In preparing the consolidated financial statements, the respective Board of Directors of the companies included in the Group are
responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
9. The respective Board of Directors of the companies included in the Group are responsible for overseeing the financial reporting
process of the Group.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
10. Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial
statements.
94
11. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the
audit. We also:
● Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control.
● Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Parent
has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such
controls.
● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management.
● Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
ability of the Group to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the Group to cease to continue as a going concern.
● Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and
whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
● Obtain sufficient appropriate audit evidence regarding the financial information of the entities including branches and jointly
controlled operations and business activities within the Group to express an opinion on the consolidated financial statements.
For the other entities including branches and jointly controlled operations included in the consolidated financial statements, which
have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the
audits carried out by them. We remain solely responsible for our audit opinion.
12. We communicate with those charged with governance of the Parent and such other entities included in the consolidated financial
statements of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
13. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
14. From the matters communicated with those charged with governance, we determine those matters that were of most significance in
the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
Other Matters
15. We did not audit
i) financial statements/ financial information of 1 branch, 14 jointly controlled operations and 6 subsidiaries whose financial
statements (before eliminating intercompany transactions) reflect total assets of ` 3,405.91 Crores and net assets of ` 124.50
Crores as at March 31, 2021, total revenue of ` 1,714.29 Crores, total comprehensive income (comprising of net profit and other
comprehensive income) of ` 28.17 Crores and net cash flows amounting to ` 24.47 Crores for the year ended on that date,
as considered in the consolidated financial statements. These financial statements/ financial information have been audited
by other auditors whose reports have been furnished to us by the Management, and our opinion on the consolidated financial
statements insofar as it relates to the amounts and disclosures included in respect of these branch, jointly controlled operations
and subsidiaries and our report in terms of sub-section (3) of Section 143 of the Act including report on Other Information insofar
as it relates to the aforesaid branch, jointly controlled operations and subsidiaries, is based solely on the reports of the other
auditors.
ii) financial statements/ financial information of 6 branches and 1 subsidiary whose financial statements (before eliminating
intercompany transactions) reflect total assets of ` 1,706.24 Crores and net assets of ` 1,407.23 crores as at March 31, 2021,
total revenue of ` 2,391.64 Crores, total comprehensive income (comprising of net profit and other comprehensive income) of
` 533.87 crores and net cash flows amounting to ` 12.91 Crores for the year then ended, have been prepared in accordance with
accounting principles generally accepted in their respective countries and have been audited by other auditors under generally
accepted auditing standards applicable in their respective countries whose reports have been furnished to us by the Management,
and our opinion on the Statement insofar as it relates to the amounts and disclosures included in respect of these branches and
subsidiary is based solely on the reports of the other auditors. The Parent’s management has converted the financial statements
of such branches and subsidiary located outside India from the accounting principles generally accepted in their respective
countries to the accounting principles generally accepted in India. We have audited these conversion adjustments made by the
Parent’s management. Our opinion insofar as it relates to the balances and affairs of such branches, subsidiary located outside
India, including other information, is based on the report of other auditors and the conversion adjustments prepared by the
management of the Parent and audited by us.
95
16. We did not audit the financial statements/ financial information 13 branches and 5 subsidiaries whose financial statements (before
eliminating intercompany transactions) reflect total assets of Rs 769.09 Crores and net assets of ` 776.99 Crores as at March 31,
2021, total revenue of ` 194.73 Crores, total comprehensive income (comprising of net profit and other comprehensive income) of
` 18.01 Crores and net cash flows amounting to ` 31.43 Crores for the year ended on that date, as considered in the consolidated
financial statements. These financial statements are unaudited and have been furnished to us by the Management, and our opinion
on the consolidated financial statements insofar as it relates to the amounts and disclosures included in respect of these branches
and subsidiaries and our report in terms of sub-section (3) of Section 143 of the Act including report on Other Information insofar as it
relates to the aforesaid subsidiaries, is based solely on such unaudited financial statements/ financial information. In our opinion and
according to the information and explanations given to us by the Management, these financial statements/ financial informations are
not material to the Group.
17. Audit report on the financial statements of Bhutan Branch issued by an independent firm of chartered accountants vide its report dated
May 31, 2021 includes Other matter paragraph which is reproduced by us as under:
“Covid-19 Limitation Clause
The audit has been conducted remotely with documents obtained electronically from the client due to restriction in physical movement
by the auditor and the audit team for lockdown state imposed by the government of both India and Bhutan due to Covid-19 pandemic
Hence, our opinion expressed in the present report is based on limited information, facts and information made available to us through
electronic means by the management of the Company. However, we have exercised all the requirement audit procedures prescribed
by the ICAI’s standards on Auditing and the guidelines issued by AASB-ICAI in relation to audit reporting amid Covid-19 pandemic.”
18. Our opinion on the consolidated financial statements, and our report on Other Legal and Regulatory Requirements below, is not
modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors and the
financial statements / financial information certified by the Management.
Report on Other Legal and Regulatory Requirements
19. As required by Section 143(3) of the Act, we report, to the extent applicable, that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary
for the purposes of our audit of the aforesaid consolidated financial statements.
(b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidated financial
statements have been kept so far as it appears from our examination of those books and the reports of the other auditors.
(c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss (including other comprehensive income),
Consolidated Statement of Changes in Equity and the Consolidated Cash Flow Statement dealt with by this Report are in
agreement with the relevant books of account and records maintained for the purpose of preparation of the consolidated financial
statements.
(d) In our opinion, the aforesaid consolidated financial statements comply with the Accounting Standards specified under Section
133 of the Act.
(e) On the basis of the written representations received from the directors of the Parent as on March 31, 2021 taken on record by the
Board of Directors of the Parent and the reports of the statutory auditors of its subsidiary companies incorporated in India, none
of the directors of the Group is disqualified as on March 31, 2021 from being appointed as a director in terms of Section 164(2)
of the Act.
(f) With respect to the adequacy of internal financial controls with reference to financial statements of the Group and the operating
effectiveness of such controls, refer to our separate report in Annexure A.
(g) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and
Auditor’s) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The group has disclosed the impact of pending litigation as at March 31, 2021 on the consolidated financial statement –
Refer Note 29, 36, 37, 39, 40 and 42 to the consolidated financial statements.
ii. The group has made provision as at March 31, 2021, as required under the applicable law or accounting standards, for
material foreseeable losses, if any, on long-term contracts– Refer Note 18 to the consolidated financial statements in
respect of such items as it relates to the Group. Further the Group operations did not have any material foreseeable losses
on derivative contracts as at March 31, 2021.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund
during the year ended March 31, 2021 by the Parent and its subsidiaries incorporated in India.
iv. The reporting on disclosures relating to Specified Bank Notes is not applicable to the Group for the year ended March 31,
2021.
20. The Group has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of
Section 197 read with Schedule V to the Act.

Partner Partner
UDIN: 21045255AAAAJM8300 UDIN: 21030035AAAACO4279

96
Annexure A to Independent Auditors’ Report

Referred to in paragraph 19(f) of the Independent Auditors’ Report of even date to the members of Afcons Infrastructure Limited on the
consolidated financial statements for the year ended March 31, 2021
Report on the Internal Financial Controls with reference to consolidated financial statements under Clause (i) of Sub-section 3 of
Section 143 of the Act
1. We have audited the internal financial controls with reference to consolidated financial statements of Afcons Infrastructure Limited
(hereinafter referred to as “Parent”) as of March 31, 2021 in conjunction with our audit of the consolidated financial statements of the Group
for the year ended on that date, which includes the internal financial controls over financial reporting of the Company’s 20 branches and its
4 subsidiary companies which are Companies incorporated in India.
Management’s Responsibility for Internal Financial Controls
2. The respective Board of Directors of the Parent and its subsidiary companies, to whom reporting under clause (i) of sub section 3 of Section
143 of the Act in respect of the adequacy of the internal financial controls with reference to consolidated financial statements is applicable,
which are companies incorporated in India, are responsible for establishing and maintaining internal financial controls based on internal
controls over financial reporting criteria established by the Company considering the essential components of internal controls stated in
the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of
India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were
operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the respective company’s policies,
the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records,
and the timely preparation of reliable financial information, as required under the Act.
Auditor’s Responsibility
3. Our responsibility is to express an opinion on the Company’s internal financial controls with reference to consolidated financial statements
based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the “Guidance Note”) issued by the ICAI and the Standards on Auditing deemed to be prescribed under section 143(10) of
the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial
controls and both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to consolidated
financial statements was established and maintained and if such controls operated effectively in all material respects.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system with
reference to consolidated financial statements and their operating effectiveness. Our audit of internal financial controls with reference to
consolidated financial statements included obtaining an understanding of internal financial controls with reference to consolidated financial
statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of
internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the
risks of material misstatement of the consolidated financial statements, whether due to fraud or error.
5. We believe that the audit evidence we have obtained, and the audit evidence obtained by the other auditors in terms of their reports referred
to in the Other Matters section below, is sufficient and appropriate to provide a basis for our audit opinion on the Parent’s internal financial
controls system with reference to consolidated financial statements.
Meaning of Internal Financial Controls with reference to consolidated financial statements
6. A company’s internal financial control with reference to financial statements is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal financial control with reference to financial statements includes those policies and
procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the
company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have
a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference to consolidated financial statements
7. Because of the inherent limitations of internal financial controls with reference to consolidated financial statements, including the possibility
of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls with reference to consolidated financial statements to future periods are
subject to the risk that the internal financial control with reference to financial statements may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Parent including its branches and its 12 subsidiaries, which are companies incorporated in India, have, in all material
respects, an adequate internal financial controls system with reference to consolidated financial statements and such internal financial
controls with reference to financial statements were operating effectively as at March 31, 2021, based on the internal control over financial
reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit
of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. (Refer para 4 (a) of our
main Audit Report)
Other Matters
9. Our aforesaid reports under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls with
reference to consolidated financial statements insofar as it relates to the 4 branches of the Parent and 4 subsidiary companies, which are
Companies incorporated in India, is based on the corresponding report of the auditors of the branches and report of the auditors of such
Companies incorporated in India. Our opinion is not qualified in respect of this matter.
Partner Partner
UDIN: 21045255AAAAJM8300 UDIN: 21030035AAAACO4279
Date: July 01, 2021 97 Date: July 01, 2021
Consolidated Balance Sheet as at 31st March, 2021 (` in Crores)

No. 31st March, 2021 31st March, 2020
A ASSETS
1 Non-current assets
(a) Property, plant and equipments 3.A 1,975.80 1,888.17
(b) Capital work-in-progress 145.52 17.94
(c) Right-of-use assets 3.D 26.22 43.47
(d) Goodwill 3.B 0.14 5.55
(e) Other Intangible assets 3.C 0.46 0.64
(f) Financial assets
(i) Investments 4 0.40 0.15
(ii) Trade receivables 5 474.36 536.40
(iii) Other financial assets 7 273.87 278.77
(g) Contract assets 8 1,493.02 1,723.94
(h) Non-current tax assets (net) 11 110.65 155.01
(i) Other non-current assets 8.2 181.11 187.79
Total Non-current Assets 4,681.55 4,837.83
2 Current assets
(a) Inventories 9 938.39 1,067.16
(b) Financial assets
(i) Trade receivables 5 2,575.04 2,475.19
(ii) Cash and cash equivalents 10 612.52 522.54
(iii) Bank balances other than (ii) above 10.1 98.42 116.10
(iv) Loans 6 50.13 40.58
(v) Other financial assets 7 114.20 58.44
(c) Contract assets 8 2,455.38 3,149.76
(d) Other current assets 8.2 964.32 829.18
Total Current Assets 7,808.40 8,258.95
Total Assets (1+2) 12,489.95 13,096.78
B EQUITY AND LIABILITIES
1 Equity
(a) Equity share capital 12 521.97 521.97
(b) Other equity 13 1,868.04 1,721.35
Equity attributable to shareholders of the Company 2,390.01 2,243.32
Non controlling interest (10.53) (13.45)
Total Equity 2,379.48 2,229.87
2 Liabilities
(A) Non-current liabilities
(i) Borrowings 14 472.64 572.82
(a) Total outstanding due to micro and small enterprises 4.57 -
(b) Total outstanding due to creditors other than micro and small enterprises 447.69 557.12
(c) Provisions 18 28.80 33.27
(d) Deferred tax liabilities (net) 21.C 211.90 212.75
Total Non-current Liabilities 3,004.04 3,464.62
(B) Current liabilities
(i) Borrowings 20 833.63 953.16
(a) Total outstanding due to micro and small enterprises 344.69 55.56
(b) Total outstanding due to creditors other than micro and small enterprises 2,767.27 3,305.65
(c) Provisions 18 43.33 23.64
(d) Current tax liabilities (net) 19 46.10 17.33
(e) Other current liabilities 17.1 49.14 58.16
Total Current Liabilities 7,106.43 7,402.29
Total Liabilities (A+B) 10,110.47 10,866.91
Total Equity and Liabilities (1+2) 12,489.95 13,096.78

98
Consolidated Statement of Profit and Loss for the year ended 31st March, 2021 (` in Crores)
Sr. Particulars Note For the year ended For the year ended
No. No. 31st March, 2021 31st March, 2020
1 Revenue from operations 22 9,375.57 9,934.19
2 Other income 23 145.56 196.50
3 Total income ( 1 + 2 ) 9,521.13 10,130.69
4 Expenses
(a) Cost of material consumed 24 2,544.56 2,676.88
(b) Cost of construction 24.1 4,112.64 4,731.12
(c) Employee benefits expense 25 924.16 971.37
(d) Finance costs 26 467.57 390.79
(e) Depreciation and amortisation expense 27 249.97 240.30
(f) Other expenses 28 931.73 744.61
Total expenses 9,230.63 9,755.07
5 Profit before tax ( 3 - 4 ) 290.50 375.62

6 Tax expense: 21
(a) Current tax 115.46 129.97
(b) Deferred tax 3.05 (7.28)
(c) Tax expense/(income) relating to prior year (net) 2.10 5.24
120.61 127.93
7 Profit for the year ( 5 - 6 ) 169.89 247.69
8 Other comprehensive income
A) Items that will not be reclassified to profit or loss
(a) Changes in fair value of equity investments measured at FVTOCI 0.26 (0.31)
(b) Remeasurements of defined benefit plans 1.32 (8.94)
(c) Tax relating to above (0.46) 3.12
B) Items that may be reclassified to profit or loss
(a) Exchange differences on translating the financial statements of a 3.84 6.32
foreign operation
4.96 0.19
9 Total comprehensive income (net of income tax) for the year (7 + 8) 174.85 247.88
Profit for the year attributable to:
- Owners of the Company 166.97 245.59
- Non-controlling interest 2.92 2.10
169.89 247.69
Other comprehensive income for the year attributable to:
- Non-controlling interest - -
4.96 0.19
Total comprehensive income (net of income tax) for the year attributable to:
- Non-controlling interest 2.92 2.10
174.85 247.88
10 Earnings per share (Face value of ` 10 each):
(a) Basic earnings per share (`) 23.60 34.41
(b) Diluted earnings per share (`) 4.99 7.27

99
Consolidated statement of changes in equity for the year ended 31st March, 2021
a) Equity share capital (` in Crores)
Particulars
b) Instruments entirely equity in nature
Preference share capital (` in Crores)
Particulars
c) Other equity (` in Crores)
Particular Reserve and surplus Other comprehensive income Total
Capital Capital Securities Contin- Debenture General Retained Exchange Equity In-
reserve redemption premium gencies redemption reserve Earnings differences struments
reserve reserve reserve reserve on translating through
the financial other com-
statements prehensive
of a foreign income
operation
Balance as at 1st April, 2019 0.84 0.13 10.28 8.00 42.50 65.75 1,339.27 14.41 19.64 1,500.82
Other comprehensive income
for the year (Net of Income tax) - - - - - - (5.82) 6.32 (0.31) 0.19
Total comprehensive
income for the year 0.84 0.13 10.28 8.00 42.50 65.75 1,579.04 20.73 19.33 1,746.60
Dividends including tax thereon - - - - - - (25.25) - - (25.25)
Transferred to / (from) retained
earnings - - - - 10.00 - (10.00) - - -
Balance as at
31st March, 2020 0.84 0.13 10.28 8.00 52.50 65.75 1,543.79 20.73 19.33 1,721.35
Balance as at 1st April, 2020 0.84 0.13 10.28 8.00 52.50 65.75 1,543.79 20.73 19.33 1,721.35
Other comprehensive income
for the year (Net of Income tax) - - - - - - 0.86 3.84 0.26 4.96
Total comprehensive
income for the year 0.84 0.13 10.28 8.00 52.50 65.75 1,711.62 24.57 19.59 1,893.28
Dividends including tax thereon - - - - - - (25.24) - - (25.24)
Transfer (from) / to debenture
redemption reserve - - - - (8.75) - 8.75 - - -
Balance as
at 31st March, 2021 0.84 0.13 10.28 8.00 43.75 65.75 1,695.13 24.57 19.59 1868.04

100
Consolidated Cash Flow Statement for the year ended 31st March, 2021 (` in Crores)
Net cash flow from operating activities
less: Tax expense 120.61 127.93
Profit after tax 169.89 247.69
Adjustments for :
Depreciation and amortisation expense 249.97 240.30
(Profit) / loss on property, plant and equipments sold/scrapped (net) 7.91 10.63
Interest income recognised in profit or loss (102.03) (22.25)
Insurance claim received (8.45) (70.23)
Finance costs 467.57 390.79
Remeasurement of defined benefit liabilities / (assets) through OCI 0.86 (5.82)
Bad debts / unbilled revenue and sundry debit balances written off 214.67 94.34
Provision for expected credit loss 16.00 10.89
Creditors / excess provision written back (14.90) (7.89)
Provision for projected losses on contract (net) 23.20 5.49
Operating profit before working capital changes 1,145.30 1,021.87
(Increase) / decrease in trade receivables (including retention monies) (37.81) (725.65)
(Increase) / decrease in inventories 128.77 (210.16)
(Increase) / decrease in contract assets 909.30 (834.87)
(Increase) / decrease in financial assets (123.63) 18.79
(Increase) in non-financial assets (324.84) (445.99)
Increase / (decrease) in trade payables (339.21) 1,049.00
Increase / (decrease) in contract liabilities (518.55) 1,157.54
Increase in financial liabilities 139.45 133.05
(Decrease) / Increase in non-financial liabilities (17.00) 8.43
Cash from operations 961.78 1,172.01
Refund / (Payment) of Income Tax (Net) (48.32) (122.49)
Net cash flow (used in) operating activities 913.46 1,049.52
Cash flow from investing activities
Payments for property, plant and equipments (455.74) (410.16)
Proceeds from sale of property, plant and equipments 4.52 11.90
Purchase of Investments 0.01 2.69
Deposits with bank (net) 17.68 (91.00)
Interest received 165.25 26.81
Net cash flow (used in) investing activities (259.83) (389.53)
Cash flow from financing activities
Proceeds / (Repayment) from long-term borrowings 175.00 (47.84)
Repayment of long-term borrowings (96.03) (61.72)
Proceeds from short-term borrowings - net (119.53) 98.11
Finance costs paid (466.31) (391.17)
Principal element of lease payments (net) (31.54) (27.02)
Dividend paid on equity shares (including tax thereon) (Interim) (25.19) (25.19)
Dividend paid on preference shares (including tax thereon) (0.05) (0.06)
Net cash flow (used in) financing activities (563.65) (454.89)
Net increase in cash and cash equivalents 89.98 205.10
Cash and cash equivalents at the beginning of the year 522.54 317.44
Cash and cash equivalents at the end of the year (Refer note 10) 612.52 522.54
Notes
1. The above Cash flow statement has been prepared under the "Indirect Method" set out in Ind AS 7 'Cash Flow Statements'.
2. Figures relating to previous year have been recast where necessary to conform to figures of the current year.
101
Consolidated Cash Flow Statement for the year ended 31st March, 2021 (Continued)
Net debt reconciliation (` in crores)
Particulars 31st March, 2021 31st March, 2020

Cash and cash equivalents 612.52 522.54
Liquid investments 98.42 116.30
Finance lease obligations (27.65) (45.70)
Current borrowings (1,023.05) (1,141.32)
Non-current borrowings (565.54) (486.57)
Net Debt (905.30) (1,034.75)
Particulars Other assets Liabilities from financing activities Total

Cash and Liquid Finance Non-current Current
bank overdraft investment lease borrowings borrowings
obligations
Net Debt as on 1st April,2019 317.44 25.10 - (596.13) (1,043.59) (1,297.18)
Recognised on adoption of Ind As 116 - - (54.04) - - (54.04)
Cash flows 205.10 91.20 - 109.56 (98.11) 307.75
Foreign exchange adjustments - - (0.40) - - (0.40)
Interest paid - - - 69.81 239.82 309.63
Net debt as on 31 March, 2020
st
522.54 116.30 (45.70) (486.57) (1,141.32) (1,034.75)
Cash flows 89.98 (17.88) - (78.97) 119.53 112.66
Foreign exchange adjustments - - 0.07 - - 0.07
Interest paid - - - 62.61 284.56 347.17
Net debt as on 31 March, 2021
st
612.52 98.42 (27.65) (565.54) (1,023.05) (905.30)

102
Notes forming part of the consolidated financial statements as at and for the year ended 31st March, 2021
Note 1: General information
Afcons Infrastructure Limited (the “Company” or “Afcons”) is a limited company incorporated in India. Its parent company is Shapoorji
Pallonji Company Private Limited. The Company together with its Jointly controlled operations and subsidiaries (as detailed in note 2.a &
2.b) is herein after referred to as the ‘Group’.
The address of its registered office is “Afcons House”, 16 Shah Industrial Estate, Veera Desai Road, Andheri (West), Mumbai 400 053 and
principal place of business is Mumbai, India. The principal activity of the Company and its subsidiaries and jointly controlled operations (the
“Group”) are infrastructure activities. Afcons has a presence in almost the entire spectrum of infrastructure activities in India and overseas.
The Group is engaged in marine works, highways, bridges, metro works, power houses, tunnels, oil and gas, LNG tanks and other general
civil engineering projects both in India and overseas.
A. Basis of preparation and presentation
i) Compliance with Ind AS
These consolidated financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified
under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other
relevant provisions of the Act.
ii) Historical cost convention
The consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments
that are measured at fair values at the end of each reporting period, as explained in the accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date, regardless of whether that price is directly observable or estimated using another
valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of
the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at
the measurement date. Fair value for measurement and/or disclosure purposes in these consolidated financial statements is
determined on such a basis, except for leasing transactions that are within the scope of Ind AS 116, and measurements that
have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 or value in use in Ind AS 36.
In addition, for consolidated financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based
on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair
value measurement in its entirety, which are described as follows:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date;
Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either
directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.
iii) New standards or interpretations adopted by the Group
The Group has applied the following standards and amendments for the first time for the annual reporting period commencing
April 1, 2020:
- Definition of Material – amendments to Ind AS 1 and Ind AS 8
- Definition of a Business – amendments to Ind AS 103
- COVID-19 related concessions – amendments to Ind AS 116
- Interest Rate Benchmark Reform – amendments to Ind AS 109 and Ind AS 107
The amendments listed above did not have any impact on the amounts recognised in prior periods and are not expected to
significantly affect the current or future periods.
iv) Operating cycle
The consolidated balance sheet presents current and non-current assets, and current and non-current liabilities, as separate
classifications. For this purpose, an asset is classified as current if:
 It is expected to be realised, or is intended to be sold or consumed, in the normal operating cycle; or
 It is expected to realise the asset within 12 months after the reporting period; or
 The asset is a cash or equivalent unless it is restricted from being exchanged or used to settle liability for at least 12
All other assets are classified as non-current.
Similarly, a liability is classified as current if:
 It is expected to be settled in the normal operating cycle; or
 It is due to be settled within 12 months after the reporting period; or
 The Group does not have an unconditional right to defer the settlement of the liability for at least 12 months after the
reporting period. Terms of a liability that could result in its settlement by the issue of equity instruments at the option of the
counterparty does not affect this classification.
All other liabilities are classified as non-current.
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Notes forming part of the consolidated financial statements as at and for the year ended 31st March, 2021 (Continued)
v) Basis of consolidation
The consolidated financial statement incorporates the financial statement of the Company and its subsidiaries. Control is
achieved when the Company:
 has power over the investee;
 is exposed, or has rights, to variable returns from its involvement with the investee; and
 has the ability to use its power to affect its returns.
The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one
or more of the three elements of control listed above.
When the Group has less than a majority of the voting rights of an investee, it has power over the investee when the voting
rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Group considers
all relevant facts and circumstances in assessing whether or not the Group’s voting rights in an investee are sufficient to give it
power, including:
 the size of the Group’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders;
 potential voting rights held by the Group, other vote holders or other parties;
 rights arising from other contractual arrangements; and
 any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct
the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’
meetings.
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company
loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are
included in the consolidated statement of profit and loss from the date the Company gains control until the date when the
Company ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the
non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the
non-controlling interests even if this results in the non-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial statement of subsidiaries to bring their accounting policies into line with
the Group’s accounting policies.
All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the
group are eliminated in full on consolidation.
The Group’s share of the results, assets and liabilities of contracts carried out in conjunction with another party are included
under each relevant heading in the consolidated financial statement.
B. Significant accounting policies
B.1. Goodwill
Goodwill represents the cost of acquired business as established at the date of acquisition of the business in excess of the acquirer’s
interest in the net fair value of the identifiable assets, liabilities and contingent liabilities less accumulated impairment losses, if any.
Goodwill is tested for impairment annually or when events or circumstances indicate that the implied fair value of goodwill is less than
its carrying amount.
For the purposes of impairment testing, goodwill is allocated to each of the Group’s cash-generating units (or groups of cash-
generating units) that is expected to benefit from the synergies of the combination.
A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an
indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than its carrying amount, the
impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of
the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised directly in
profit or loss. An impairment loss recognised for goodwill is not reversed in subsequent periods.
On disposal of the relevant cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or
loss on disposal.
B.2. a) Interests in Jointly Controlled Operations
Company enters into Joint Venture arrangement with other parties for execution of construction arrangements for which an
unincorporated vehicle is formed having an independent legal status for the tax purpose i.e. Association of person/Body of individual
etc. Such arrangement (also called as Jointly Controlled Operations) is considered as extension of business, if in accordance with
the terms of the arrangement, Company acts as a principal and remains solely liable for the executing the entire project on its own,
funding or contributing assets and is also responsible for all the liabilities in the unincorporated vehicle. Accordingly, all the assets,
liabilities, revenue and expenses pertaining to such unincorporated vehicle is consolidated in the separate financial statements of
the Company.
Similarly, in case the Company is acting as an agent in such kind of arrangements, where the other party to the arrangement is
solely liable for the executing the entire project on its own, funding or contributing assets and is also responsible for all the liabilities
in the unincorporated vehicle. Accordingly, the Company recognises its share of profits/fees as determined in the arrangement in the
separate financial statements of the Company.
104
B.2. b) Interest in unincorporated Joint ventures
When the Company enters into a joint venture (JV) arrangement with other parties and an incorporated vehicle is formed which
has a separate status for tax purposes (i.e. Association of person/Body of individual etc.) and if as per the terms of agreement, the
Company remains liable for all the liabilities of the unincorporated vehicle and is also responsible for funding or contributing assets
to the unincorporated vehicle for construction activity, this unincorporated vehicle (also considered and called as Jointly Controlled
Operation) has been considered as an extension of the Company from accounting point of view and assets, liabilities, revenue and
expenses are consolidated on the basis of its share in the operations in the separate financial statement of the Company.
B.3. Revenue recognition
Sale of goods
Revenue from sale of goods is recognised upon satisfaction of performance obligations, i.e. at a point of time, which occurs when the
control is transferred to the customer. Customers obtain control as per the incoterms. Invoices are issued according to contractual
terms and are usually payable as per the credit period agreed with the customer.
Rendering of services:
Revenue from providing services is recognised in the accounting period in which the services are rendered.
Invoices are issued according to contractual terms and are usually payable as per the credit period agreed with the customer.
Construction contracts:
The Group recognises revenue from engineering, procurement and construction contracts (‘EPC’) over the period of time, as
performance obligations are satisfied over time due to continuous transfer of control to the customer. EPC contracts are generally
accounted for as a single performance obligation as it involves complex integration of goods and services.
The performance obligations are satisfied over time as the work progresses. The Group recognises revenue using input method (i.e.
Percentage-of-Completion Method), based primarily on contract cost incurred to date compared to total estimated contract costs.
Changes to total estimated contract costs, if any, are recognised in the period in which they are determined as assessed at the
contract level. If the consideration in the contract includes price variation clause or there are amendments in contracts, the Group
estimates the amount of consideration to which it will be entitled in exchange for work performed.
Due to the nature of the work required to be performed on the performance obligations, the estimation of total revenue and cost
at completion is complex, subject to many variables and requires significant judgment. Variability in the transaction price arises
primarily due to liquidated damages, price variation clauses, changes in scope, incentives, discounts, if any. The Group considers
its experience with similar transactions and expectations regarding the contract in estimating the amount of variable consideration
to which it will be entitled and determining whether the estimated variable consideration should be constrained. The Group includes
estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognised will
not occur when the uncertainty associated with the variable consideration is resolved. The estimates of variable consideration are
based largely on an assessment of anticipated performance and all information (historical, current and forecasted) that is reasonably
available. Various agreements are entered with customers wherein the Group pays a certain portion of the finance cost to the funding
agencies of the project. In practice, these payments are considered as payment on behalf of the customer. These payments are not
related to a distinct service or product by customer. An estimated amount to be paid over the lifecycle of the project is calculated and
accordingly the same is accounted for as a reduction of contract revenue.
Progress billings are generally issued upon completion of certain phases of the work as stipulated in the contract. Billing terms
of the over-time contracts vary but are generally based on achieving specified milestones. The difference between the timing of
revenue recognised and customer billings result in changes to contract assets and contract liabilities. Payment is generally due upon
receipt of the invoice, payable within 90 days or less. Contractual retention amounts billed to the customers are generally due upon
expiration of the contract period or any other conditions as mentioned in the contract.
The contracts generally result in revenue recognised in excess of billings which are presented as contract assets on the statement
of financial position. Amounts billed and due from customers are classified as receivables on the statement of financial position. The
portion of the payments retained by the customer until final contract settlement is not considered a significant financing component
since it is usually intended to provide customer with a form of security for Group’s remaining performance as specified under the
contract, which is consistent with the industry practice. Contract liabilities represent amounts billed to customers in excess of revenue
recognised till date. A liability is recognised for advance payments and it is not considered as a significant financing component since
it is used to meet working capital requirements at the time of project mobilization stage. The same is presented as contract liability
in the statement of financial position.
Estimates of revenues, costs or extent of progress toward completion are revised if circumstances change. Any resulting increases
or decreases in estimated revenues or costs are reflected in profit or loss in the period in which the circumstances that give rise to
the revision become known by management.
For construction contracts the control is transferred over time and revenue is recognised based on the extent of progress towards
completion of the performance obligations. When it is probable that total contract costs will exceed total contract revenue, the
expected loss is recognised as an expense immediately. The percentage of completion is based primarily on contract cost incurred
to date compared to total estimated contract cost for each contract in order to reflect the effective completion of the project. This
percentage of completion could be based on technical milestones or as per the contractual terms specified. A construction contract
is considered completed when the last technical milestone is achieved, which occurs upon contractual transfer of ownership of the
asset.
Dividend and interest income
Dividend income from investments is recognised when the shareholder’s right to receive payment has been established (provided
that it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably).
105
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Group and the
amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and
at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected
life of the financial asset to that asset’s net carrying amount on initial recognition.
Other operating income
Income from export incentives is recognised on cash basis to the extent the ultimate realisation is reasonably certain.
B.4. Foreign currencies
(i) Functional and presentation currency
Items included in the consolidated financial statements of each of the Group’s entities are measured using the currency of the
primary economic environment in which the entity operates (‘the functional currency’). The consolidated financial statement
is presented in Indian Rupee (INR), which is Group’s functional and presentation currency. For each entity (subsidiaries and
Jointly Controlled Operations), the Group determines the functional currency and items included in the financial statements of
each entity are measured using that functional currency.
In preparing these consolidated financial statements, the Group has applied following policies:
A) Foreign Branches of the Group: -
1. Income and expense items are translated at the exchange rates at the dates of the transactions and all resulting
exchange differences are recognised in the Statement of Profit and Loss.
2. Non-monetary assets and liabilities are measured in terms of historical cost in foreign currencies and are not translated
at the rates prevailing at the reporting period. Monetary assets and liabilities are translated at the rates prevailing at
the end of each reporting period. Exchange differences on translations are recognised in the Consolidated Statement
of Profit and Loss.
B) Joint Operations and subsidiaries outside India with functional currency other than presentation currency:
1. Assets and liabilities, both monetary and nonmonetary are translated at the rates prevailing at the end of each
reporting period.
2. Income and expense items are translated at the average exchange rates for the period, unless exchange rates
fluctuate significantly during that period, in which case the exchange rates at the dates of the transactions are used.
Exchange differences arising, if any, are recognised in other comprehensive income and accumulated in equity (and
attributed to non-controlling interests as appropriate).
(ii) Other Transactions and balances
In preparing the consolidated financial statements of each individual Group entity, transactions in currencies other than the
entity’s functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions.
At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing
at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates
prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in
a foreign currency are not retranslated.
Any exchange difference arising on settlement / restatement of long-term foreign currency monetary items recognized in the
financial statements until the year ended March 31, 2016, are capitalized as a part of the depreciable fixed assets to which the
monetary item relates and depreciated over the remaining useful life of such assets.
In case of consideration paid or received in advance for foreign currency denominated contracts, the related expense or income
is recognised using the rate on the date of transaction on initial recognition of a related asset or liability.
Exchange differences on monetary items are recognised in profit or loss in the period in which they arise except for:
• Exchange differences on transactions entered into in order to hedge certain foreign currency risks; and
• Exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither
planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognised
initially in other comprehensive income and reclassified from equity to profit or loss on repayment of the monetary items.
On the disposal of a foreign operation (i.e. a disposal of the Group’s entire interest in a foreign operation, a disposal involving
loss of control over a foreign operation, or a partial disposal of an interest in a foreign operation of which the retained interest
becomes a financial asset), all of the exchange differences accumulated in equity in respect of that operation attributable to the
owners of the Group are reclassified to profit or loss.
In addition, in relation to a partial disposal of a foreign operation that does not result in the Group losing control over the foreign
operation, the proportionate share of accumulated exchange differences is re-attributed to non-controlling interests and are not
recognised in profit or loss. For all other partial disposals (i.e. partial disposals of associates or joint arrangements that do not
result in the Group losing significant influence or joint control), the proportionate share of the accumulated exchange differences
is reclassified to profit or loss.
Goodwill and fair value adjustments to identifiable assets acquired and liabilities assumed through acquisition of a foreign
operation are treated as assets and liabilities of the foreign operation and translated at the rate of exchange prevailing at the
end of each reporting period. Exchange differences arising are recognised in other comprehensive income.
106
B.5. Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that
necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until
such time as the assets are substantially ready for their intended use or sale.
Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is
deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
B.6. Employee benefits
B.6.1 Retirement benefit costs and termination benefits
Employee benefits include provident fund, superannuation fund, employee state insurance scheme, gratuity fund, compensated
absences and leave encashment.
Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service
entitling them to the contributions.
For defined retirement benefit plans, the cost of providing benefits is determined using the Projected Unit Credit Method, with
actuarial valuations being carried out at the end of each annual reporting period. 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.
Remeasurement 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 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 benefit costs are categorised as follows:
• Service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements);
• Net interest expense or income; and
• Re-measurement
The Group presents the first two components of defined benefit costs in profit or loss in the line item ‘Employee benefits expense’.
Curtailment gains and losses are accounted for as past service costs.
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market
yields at the end of the reporting period on government bonds.
The retirement benefit obligation recognized in the special purpose financial statements represents the actual deficit or surplus in
the Group’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits
available in the form of refunds from the plans or reductions in future contributions to the plans.
A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the termination
benefit and when the entity recognises any related restructuring costs.
B.6.2 Short-term and other long-term employee benefits
A liability is recognised for benefits accruing to employees in respect of salaries, wages and other short term employee benefits in the
period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service.
Provision for leave benefits to employees is based on actuarial valuation done by Projected Accrued Benefit Method at the reporting
date.
B.7 Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
B.7.1 Current tax
The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable
income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences
and to unused tax losses
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting
period in the countries where the Company and its subsidiaries operates and generates taxable income. Management periodically
evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It
establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
B.7.2 Deferred tax
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognized
if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an
asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting profit
nor taxable profit (tax loss). Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially
enacted by the end of the reporting period and are expected to apply when the related deferred income tax is realised or the deferred
income tax liability is settled.
Deferred tax assets are recognized for all deductible temporary differences and unused tax losses only if it is probable that future
taxable amounts will be available to utilise those temporary differences and losses.
107
Deferred tax liabilities are not recognized for temporary differences between the carrying amount and tax bases of investments
in subsidiaries, branches and interest in joint arrangements where the Group is able to control the timing of the reversal of the
temporary differences and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets are not recognized for temporary differences between the carrying amount and tax bases of investments in
subsidiaries, branches and interest in joint arrangements where it is not probable that the differences will reverse in the foreseeable
future and taxable profit will not be available against which the temporary difference can be utilised.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and
when the deferred tax balances relate to the same taxation authority. 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 realise the asset and settle the liability
simultaneously.
Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive
income or directly in equity. In this case, the tax is also recognized in other comprehensive income.
B.7.3 Current and deferred tax for the year
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive
income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or
directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax
effect is included in the accounting for the business combination.
B.8 Property, plant and equipments
Property, plant and equipments are carried at cost less accumulated depreciation and impairment losses, if any. The cost of property,
plant and equipment comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other
than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its
intended use, other incidental expenses and interest on borrowings attributable to acquisition of qualifying fixed assets up to the date
the asset is ready for its intended use. It also includes initial estimate of the costs of dismantling and removing the item and restoring
the site on which it is located. Replacement cost of an item of property, plant and equipments is capitalised if replacement meets the
recognition criteria.
Carrying amount of items replaced is derecognised. Cost of major inspections is recognised in the carrying amount of property, plant
and equipments as a replacement, if recognition criteria are satisfied and any remaining carrying amount of the cost of previous
inspection is derecognised. Machinery spares which can be used only in connection with an item of fixed asset and whose use is
expected to be irregular are capitalised (if they meet the asset recognition criteria) and depreciated over the useful life of the principal
item of the relevant assets. Subsequent expenditure on property, plant and equipments after its purchase / completion is capitalised
only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of
performance.
Estimated useful lives of the assets are as follows:
Buildings - 60 years
Furniture and fixtures - 10 years
Vehicles - 10 years
Office equipments - 5 years
Freehold land is not depreciated
For following assets estimated useful life is different than the useful life prescribed in schedule II to the Companies Act, 2013 and
has been assessed on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating
conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance
support, etc.
Plant & Equipment (except Tunnel Boring Machines) which includes Cranes < 100 mt., Concreting, Crushing, Piling, Road making,
Laboratory & Welding Equipments, Floating Equipments - 20 Years.
Tunnel Boring Machines - Length of the tunnel bored over life of the construction project for where it is used.
Cost of shuttering materials, issued to jobs, is charged off equally over a period of 4 years.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise
from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment
is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.
B.8.1 Capital work-in-progress
Property, plant and equipment that are not yet ready for their intended use are carried at cost, comprising direct cost, related
incidental expenses and attributable interest.
B.9 Intangible assets
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and
accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated
useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being
accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost
less accumulated impairment losses. Useful life is as below:
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Computer software - 5 years
An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or
losses from derecognition of an intangible asset, measured at the difference between the net disposal proceeds and the carrying
amount of the asset, is recognised in profit or loss when the asset is derecognised.
B.10 Impairment of tangible and intangible assets other than goodwill
At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible assets to determine
whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate
the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which
the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated
to individual cash-generating units, or otherwise they are allocated to the smallest Group of cash-generating units for which a
reasonable and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future
cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount
of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit
or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation
decrease.
When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the
revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that
would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A
reversal of an impairment loss is recognised immediately in profit or loss.
B.11 Inventories
Inventories are stated at the lower of cost and net realisable value. Net realisable value represents the estimated selling price for
inventories less all estimated costs of completion and costs necessary to make the sale. Cost is determined on the basis of weighted
average method.
B.12 Provisions and contingent liabilities
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable
that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of
the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using
the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect
of the time value of money is material).
A contingent liability is disclosed where there is a possible obligation or present obligations that may, but probably will not, require
an outflow of resources. Contingent assets are not recognised. Information on contingent liabilities is disclosed in the notes to
consolidated financial statements unless the possibility of an outflow of resources embodying economic benefits is remote.
B.13 Financial instruments
Financial assets and financial liabilities are recognised when a Group becomes a party to the contractual provisions of the instruments.
Initial Recognition
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through
profit or loss). Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through
profit or loss are recognised immediately in statement of profit and loss.
B.14 Financial assets
Classification and subsequent measurement of financial assets
B.14.1 Classification of financial assets
The Group classifies its financial assets in the following measurement categories:
• those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and
• those measured at amortised cost.
The classification is done depending upon the Group’s business model for managing the financial assets and the contractual terms
of the cash flows. Classification for investments made in debt instruments will depend on the business model in which the investment
is held. The Group reclassifies debt investments when and only when its business model for managing those assets changes.
B.14.2 Subsequent measurement
Debt instruments
Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the cash flow
characteristics of the asset. There are three measurement categories into which the Group classifies its debt instruments:
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Amortised cost
Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and
interest are measured at amortised cost e.g. Debentures, Bonds etc. A gain or loss on a debt investment that is subsequently
measured at amortised cost is recognised in profit or loss when the asset is derecognised or impaired. Interest income from these
financial assets is included in investment income using the effective interest rate method.
Fair value through other comprehensive income
Debt instruments that meet the following conditions are subsequently measured at fair value through other comprehensive income
(except for debt instruments that are designated as at fair value through profit or loss on initial recognition):
• the asset is held within a business model whose objective is achieved both by collecting contractual cash flows and selling
financial assets; and
• the contractual terms of the instrument give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
Fair value through profit or loss
Assets that do not meet the criteria for amortised cost or fair value through OCI, are measured at fair value through profit or loss e.g.
investments in mutual funds. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss is
recognised in profit or loss and presented net in the statement of profit and loss within other gains/(losses) in the period in which it
arises.
Equity instruments
Investments in equity instruments at FVTPL
Investments in equity instruments are classified as at FVTPL, unless the Group irrevocably elects on initial recognition to present
subsequent changes in fair value in other comprehensive income for equity instruments which are not held for trading.
Investments in equity instruments at FVTOCI
On initial recognition, the Group can make an irrevocable election (on an instrument-by-instrument basis) to present the subsequent
changes in fair value in other comprehensive income. This election is not permitted if the equity investment is held for trading. These
elected investments are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with
gains and losses arising from changes in fair value recognised in other comprehensive income and accumulated in the reserve for
‘equity instruments through other comprehensive income’. The cumulative gain or loss is not reclassified to profit or loss on disposal
of the investments.
B.14.3 Impairment of financial assets
The Group applies the expected credit loss model for recognising impairment loss on financial assets measured at amortised cost,
lease receivables, trade receivables, contract assets, other contractual rights to receive cash or other financial asset.
For trade receivables, the Group measures the loss allowance at an amount equal to lifetime expected credit losses.
Further, for the purpose of measuring lifetime expected credit loss allowance for trade receivables, the Group has used a practical
expedient as permitted under Ind AS 109. This expected credit loss allowance is computed based on a provision matrix which takes
into account historical credit loss experience and adjusted for forward-looking information.
B.14.4 Effective interest method
Income is recognised on an effective interest basis for debt instruments other than those financial assets classified as FVTPL.
Interest income is recognised in the statement of profit and loss.
B.14.5 De-recognition of financial assets
A financial asset is derecognised only when the Group has transferred the rights to receive cash flows from the financial asset.
Where the entity has transferred an asset, the Group evaluates whether it has transferred substantially all risks and rewards of
ownership of the financial asset. In such cases, the financial asset is derecognised.
On derecognition of a financial asset in its entirety, the difference between the asset’s carrying amount and the sum of the
consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive income
and accumulated in equity is recognised in profit or loss if such gain or loss would have otherwise been recognised in profit or loss
on disposal of that financial asset.
The fair value of financial assets denominated in a foreign currency is determined in that foreign currency and translated at the spot
rate at the end of each reporting period.
For foreign currency denominated financial assets measured at amortised cost and FVTPL, the exchange differences are recognised
in profit or loss except for those which are designated as hedging instruments in a hedging relationship.
B.15 Financial liabilities and equity instruments
Classification as debt or equity
Debt and equity instruments issued by the Group are classified as either financial liabilities or as equity in accordance with the
substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.
Equity instruments issued by the Group are recognised at the proceeds received, net of direct issue costs.
110
Repurchase of the Group’s own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in
profit or loss on the purchase, sale, issue or cancellation of the Group’s own equity instruments.
Treasury shares
In the consolidated financial statements, when any entity within the Group purchases the Group’s ordinary shares, the consideration
paid, including any directly attributable incremental cost, is presented as a deduction from total equity, until they are cancelled, sold
or reissued. When treasury shares are sold or reissued subsequently, the amount received is recognised as an increase in equity
and the resulting surplus or deficit on the transaction is transferred to/ from share premium.
B.15.1 Classification and subsequent measurement
Financial liabilities are measured at amortised cost.
Financial liabilities (including borrowings and trade and other payables) are subsequently measured at amortised cost using the
effective interest method. The effective interest method is a method of calculating the amortised cost of a financial liability and of
allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash
payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and
other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net
carrying amount on initial recognition.
B.15.2 De-recognition of financial liabilities
The Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or have expired.
An exchange with a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original
financial liability and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an existing financial
liability (whether or not attributable to the financial difficulty of the debtor) is accounted for as an extinguishment of the original
financial liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability
derecognised and the consideration paid and payable is recognised in profit or loss.
For financial liabilities that are denominated in a foreign currency and are measured at amortised cost at the end of each reporting
period, the foreign exchange gains and losses are determined based on the amortised cost of the instruments and are recognised
in ‘Other income’ as ‘Net foreign exchange gains/(losses)’.
B.16 Derivative financial instruments
The Group enters into derivative financial instruments viz. foreign exchange forward contracts, interest rate swaps and cross
currency swaps to manage its exposure to interest rate, foreign exchange rate risks and commodity prices. The Group does not hold
derivative financial instruments for speculative purposes.
Derivatives are initially recognised at fair value at the date the derivative contracts are entered into and are subsequently remeasured
to their fair value at the end of each reporting period. The resulting gain or loss is recognised in profit or loss immediately.
B.17 Leases:
Till 31st March, 2019:
Leases (including lease arrangements for land) are classified as finance leases whenever the terms of the lease transfer substantially
all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
Operating lease (The Group as lessee): Lease payments under an operating lease are recognized as expense in the statement of
profit and loss, on a straight-line or other systematic basis over the lease term. Where the rentals are structured solely to increase
in line with expected general inflation to compensate for the Lessor’s expected inflationary cost increases, such increases are
recognised in the year in which such liability accrues.
Operating lease (The Group as lessor): Rental income from operating lease is recognised on straight line basis over the term of the
relevant lease. Initial direct cost incurred in negotiating and arranging an operating lease are added to the carrying amount of leased
asset and recognised on a straight-line basis over the lease term.
With effect from 1st April, 2019:
The Group as lessee:
From April 1, 2019, leases are recognised as a right-of-use assets and a corresponding liability at the date at which the leased
asset is available for use by the group. Contracts may contain both lease and non-lease components. The Group has elected not to
separate lease and non-lease components and instead accounts for these as a single lease component.
1) Lease Liabilities
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present
value of the lease payments. The lease payments include fixed payments (including in substance fixed payments) less any
lease incentives receivable, variable lease payments that 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 Group and payments of penalties for terminating the lease, if the lease term reflects the Group exercising
the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses in the
period in which the event or condition that triggers the payment occurs. Lease payments to be made under reasonably certain
extension options are also included in the measurement of the liability. The lease payments are discounted using the lessee’s
incremental borrowing rate (since the interest rate implicit in the lease cannot be easily determined). Incremental borrowing rate
is the rate of interest that the Group would have to pay to borrow over a similar term, and a similar security, the funds necessary
to obtain an asset of a similar value to the right-of-use assets in a similar economic environment.
111
Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease
period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
2) Right-of-use assets
Right-of-use assets are measured at cost comprising the amount of the initial measurement of lease liability and lease payments
made before the commencement date.
Right-of-use assets are depreciated over the lease term on a straight-line basis. Right-of-use assets are measured at cost, less
any accumulated depreciation and impairment losses, and adjusted for any re-measurement of lease liabilities.
3) Short term leases and leases of low value assets
Payments associated with short-term leases of equipment and all leases of low-value assets are recognised on a straight-line
basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets
comprise assets having value less than ` 350,000.
The Group as lessor:
Leases in which the Group 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 and is
included in revenue in the statement of profit or loss due to its operating nature. 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.
B.18 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss) for the year by the weighted average number of equity shares
outstanding during the year.
Ordinary shares to be issued upon conversion of a mandatorily convertible instrument are included in the calculation of basic
earnings per share from the date the contract is entered into. Diluted earnings per share is computed by dividing the profit / (loss)
for the year as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the
dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share
and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity
shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per
share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the
period, unless they have been issued at a later date.
B.19 Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.
The board of directors of Afcons Infrastructure Limited assesses the financial performance and position of the Group, and makes
strategic decisions. The board of directors, which has been identified as being the chief operating decision maker, consists of the
key managerial personnel and the directors who are in charge of the corporate planning. Refer note 32 for segment information
presented.
B.20 Credit Risk
The Group assess on a forward-looking basis the expected credit losses associated with its assets measured at amortised cost
which includes lease receivables, trade receivables, other contractual rights to receive cash etc. The impairment methodology
applied depends on whether there has been a significant increase in the credit risk since initial recognition of these financial assets.
For the evaluation, the Group considers historical credit loss experience and adjusted for forward-looking information. Note 49.8
details how the Group determines whether there has been a significant increase in credit risk.
B.21 Government grants, subsidies and export incentives
Government grants are not recognised until there is reasonable assurance that the Group will comply with the conditions attaching
to them and that the grants will be received.
Government grants are recognised in profit or loss on a systematic basis over the periods in which the Group recognises as
expenses the related costs for which the grants are intended to compensate.
C. Critical estimates and judgements
a) Revenue recognition
The Group’s revenue recognition policy, which is set out in Note B.3, is central to how the Group values the work it has carried
out in each financial year.
These policies require forecasts to be made of the outcomes of long-term construction services, which require assessments
and judgements to be made on changes in scope of work and claims and variations.
Across construction services there are several long-term and complex projects where the Group has incorporated significant
judgements over contractual entitlements. The range of potential outcomes could result in a materially positive or negative
change to underlying profitability and cash flow.
Estimates are also required with respect to the below mentioned aspects of the contract.
• Determination of stage of completion;
• Estimation of project completion date;
• Provisions for foreseeable losses; and
• Estimated total revenues and estimated total costs to completion, including claims and variations.
112
These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.
Revenue and costs in respect of construction contracts are recognized by reference to the stage of completion of the contract
activity at the end of the reporting period, measured based on the proportion of contract costs incurred for work performed to
date relative to the estimated total contract costs, except where this would not be representative of the stage of completion.
Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably
and its receipt is considered probable. When it is probable that total contract costs will exceed total contract revenue, the
expected loss is recognized as an expense immediately.
b) Taxation
The Group is subject to tax in a number of jurisdictions and judgement is required in determining the worldwide provision for
income taxes. The Group provides for future liabilities in respect of uncertain tax positions where additional tax may become
payable in future periods and such provisions are based on management’s assessment of exposures.
The uncertain tax positions are measured at the amount expected to be paid to taxation authorities when the Group determines
that the probable outflow of economic resources will occur. Where the final tax outcome of these matters is different from the
amounts that were initially recorded, such differences will impact the current and deferred income tax assets and liabilities in
the period in which such determination is made.
c) Contingencies
In the normal course of business, contingent liabilities may arise from litigation and other claims against the Group. There
are certain obligations which managements have concluded based on all available facts and circumstances are not probable
of payment or difficult to quantify reliably and such obligations are treated as contingent liabilities and disclosed in the notes
but are not provided for in the consolidated financial statements. Although there can be no assurance of the final outcome of
the legal proceedings in which the Group is involved it is not expected that such contingencies will have material effect on its
financial position or profitability.
d) Useful lives of property, plant and equipment
As described in note B.8 above, the Group reviews the estimated useful lives of property, plant and equipment and residual
values at the end of each reporting period. There was no change in the useful life and residual values of property, plant and
equipment as compared to previous year.
e) Impairment of trade receivables and contract assets
The Group has recognised trade receivables with a carrying value of ` 3,049.40 Crores (as at March 31, 2020: ` 3,011.59
Crores). The recoverability of trade receivables is regularly reviewed in the light of the available economic information specific
to each receivable and specific provisions are recognised for balances considered to be irrecoverable.
The impairment provisions for trade receivables are based on assumptions about risk of default and expected loss rates. The
Group uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on Group’s
past history, credit risk, existing market conditions as well as forward looking estimates at the end of each reporting period.
The expected credit loss allowance for trade receivables is made based on a provision matrix. The provision matrix takes into
account historical credit loss experience and adjusted for forward-looking information. Where the actual cash shortfalls vary
from those estimated, these could impact the level of profit or loss recognised by the Group. The same policies are followed for
contract assets.
f) Retirement benefit obligations
Details of the Group’s defined benefit pension schemes are set out in Note B.6.1, including tables showing the sensitivity of the
pension scheme obligations and assets to different actuarial assumptions.
The present value of defined benefit obligations is determined by discounting the estimated future cash outflows by reference
to market yields at the end of reporting period that have terms approximating to the terms of the related obligation.
g) Arbitration claims
The forecast profit on contracts includes key judgements over the expected recovery of costs arising from the following:
variations to the contract requested by the customer, compensation events, and claims made by the Group for delays or other
additional costs for which the customer is liable. These claims could result in disputes that get settled through an arbitration
process wherein the outcome of these awards including the timing and the amount (including interest thereon) requires a
reasonable degree of estimation. The inclusion of these amounts requires estimation of their recoverability and could impact
the level of profit or loss recognized by the Group.
h) Classification of assets / liabilities as Current and Non-current
The balance sheet presents current and non-current assets and current and non-current liabilities, as separate classifications.
This classification involves managements estimate on expected realization of assets and settlement of liabilities within 12
i) Classification of Joint Arrangement as a Jointly Controlled Operation / Joint Venture
A Jointly Controlled Operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights
to the assets and obligations for the liabilities, relating to the arrangements. Joint control is the contractually agreed sharing
of control of an arrangement, which exist only when decisions about the relevant activities require unanimous consent of the
parties sharing control.
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When an entity undertakes its activities under joint operations, the Group as a joint operator recognises in relation to its interest
in a joint operation:
Accordingly, the Group has evaluated all its joint arrangements on the basis of the contractual arrangements entered into
between the parties to the joint arrangements for execution of the project irrespective of the legal form.
Note 2(a): Details of subsidiaries at the end of the reporting period are as follows.
Name of subsidiary Country of Place of Activity Principle Percentage

incorporation Activity holding-share
Hazarat and Company Pvt. Ltd. India India Other 100%
Afcons Corrosion Protection Pvt. Ltd. India India Cathodic 100%
Protection
Afcons Hydrocarbons Engineering Pvt. Ltd. India India Other 100%
Afcons Oil & Gas Services Pvt.Ltd. India India Infrastructure 74%
Afcons Infrastructures Kuwait for Building, Road and
Marine Contracting WLL* Kuwait Kuwait Infrastructure 49%
Afcons Construction Mideast LLC* U.A.E U.A.E Infrastructure 49%
Afcons Gulf International Projects Services FZE # U.A.E. U.A.E. Investment 100%
Afcons Mauritius Infrastructure Ltd. Mauritius India Investment 100%
Afcons Overseas Singapore Pte Ltd. Singapore Guinea, Mauritinia Infrastructure 100%
Afcons Infra Projects Kazakhstan LLP % Kazakhstan Kazakhstan Infrastructure 100%
Afcons Saudi Constructions LLC Saudi Arabia Saudi Arabia Infrastructure 100%
(in the process of winding-up)
Afcons Overseas Project Gabon SARL % Gabon Gabon Infrastructure 100%
# Subsidiary of Afcons Mauritius Infrastructure Ltd.
% Subsidiary of Afcons Overseas Singapore Pte Ltd.
* Although, the parent Company has less than a majority of the voting rights of the investee, it has power over the investee as the voting
rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally.
Note 2(b): Details of Jointly Controlled Operations at the end of the reporting period are as follows.
Name of Jointly Controlled Operations Country of Place of Activity Principle Percentage

incorporation Activity holding-share
Dahej Standby Jetty Project Undertaking India India Infrastructure 100%
Afcons Gunanusa Joint Venture India India Infrastructure 100%
Afcons Pauling Joint Venture India India Infrastructure 100%
Afcons Sibmost Joint Venture India India Infrastructure 100%
Afcons Vijeta PES Joint Venture India India Infrastructure 100%
Afcons SMC Joint Venture India Tanzania Infrastructure 100%
Afcons - Vijeta Joint Venture India India Infrastructure 100%
Afcons JAL Joint Venture India India Infrastructure 100%
Transtonnelstroy Afcons Joint Venture India India Infrastructure 99%
Afcons KPTL Joint Venture India Bangladesh Infrastructure 51%
Afcons Sener LNG Construction Projects Pvt.Ltd. India India Infrastructure 49%
Ircon Afcons Joint Venture India Bangladesh Infrastructure 47%
Strabag AG Afcons Joint Venture India India Infrastructure 40%
Afcons Infrastructure Ltd and Vijeta Projects and
India Tanzania Infrastructure 100%
Infrastructures Ltd Joint Venture
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Note No 3. Property, plant and equipments
A. Tangible assets (` in Crores)
Balance Additions Disposals Balance Balance Depreciation Disposals Balance Balance
as at as at as at for the year as at as at
1st April, 2020 31st March, 2021 1st April, 2020 31st March, 2021 31st March, 2021
(a) Freehold land 204.47 - - 204.47 - - - - 204.47
(b) Buildings 52.39 - - 52.39 18.61 1.11 - 19.72 32.67
(c) Plant and equipments 2,265.98 213.45 (21.83) 2,457.60 1,009.68 120.95 (11.90) 1,118.73 1,338.87
(e) Vehicles 44.89 2.67 (0.20) 47.36 19.75 4.70 (0.20) 24.25 23.11
(h) Floating equipments 257.76 11.33 (1.07) 268.02 71.26 15.45 (1.04) 85.67 182.35
(j) Shuttering materials 258.31 57.15 - 315.46 175.07 51.19 - 226.26 89.20
(k) Accessories and attachments 91.68 19.37 - 111.05 49.85 13.54 - 63.39 47.66
Total 3,299.28 319.12 (39.54) 3,578.86 1,411.11 219.06 (27.11) 1,603.06 1,975.80
115
Previous year (` in Crores)
Balance Additions Disposals Balance Balance Depreciation Disposals Balance Balance
as at as at as at for the year as at as at
1st April, 2019 31st March, 2020 1st April, 2019 31st March, 2020 31st March, 2020
(a) Freehold land 204.47 - - 204.47 - - - - 204.47
(b) Buildings 42.35 10.04 - 52.39 17.54 1.07 - 18.61 33.78
(c) Plant and equipments 2,041.44 297.47 (72.93) 2,265.98 954.03 110.74 (55.09) 1,009.68 1,256.30
(e) Vehicles 43.75 2.36 (1.22) 44.89 15.39 5.32 (0.96) 19.75 25.14
(h) Floating equipments 218.26 39.50 - 257.76 56.85 14.41 - 71.26 186.50
(j) Shuttering materials 203.91 54.81 (0.41) 258.31 119.42 55.65 - 175.07 83.24
(k) Accessories and attachments 79.01 14.91 (2.24) 91.68 38.61 11.24 - 49.85 41.83
Total 2,945.91 436.92 (83.55) 3,299.28 1,261.63 210.52 (61.04) 1,411.11 1,888.17
Notes:
(1) Freehold land with a carrying amount of ` 204.47 crores (as at 31st March 2020 ` 204.47 crores) has been secured by equitable mortgage with consortium banks. Refer Note No. 20.
Buildings carrying amount of ` 32.66 crores (as at 31st March 2020 ` 33.77 crores) has been secured by equitable mortgage with consortium banks. Refer Note No. 20.
Movable plant and machinery, construction equipments, machinery spares, tools and accessories with a carrying amount of ` 1,610.36 Crores (as at 31st March 2020 ` 1,530.81 Crores) has
been secured by way of hypothecation in favour of term lenders and consortium banks have been secured through indenture of mortgage. Refer Note No. 14
Consolidated financial statement of afcons infrastructure limited and its
subsidiaries, associates and joint ventures (afcons group)
Note No 3. Property, Plant and Equipments (Continued)
B. Goodwill (` in Crores)
Cost or deemed cost Balance as at 31st March, 2021 Balance as at 31st March, 2020
Balance at beginning of the year 5.55 5.16
Effect of foreign currency exchange differences (5.41) 0.39
Balance at end of the year 0.14 5.55
C. Other Intangible assets (` in Crores)
Computer software - acquired 12.97 - - 12.97 12.33 0.18 - 12.51 0.46
Total 12.97 - - 12.97 12.33 0.18 - 12.51 0.46
Previous Year
Computer software - acquired 13.05 - (0.08) 12.97 11.86 0.53 (0.06) 12.33 0.64
Total 13.05 - (0.08) 12.97 11.86 0.53 (0.06) 12.33 0.64
D. Right-of-use assets (` in Crores)
116
Balance as at Additions Deletions due to Balance as at Balance as at Depreciation Depreciation Balance as at Balance as at
1st April, 2020 discontinued agreements 31st March, 2021 1st April, 2020 for the year on deletions 31st March, 2021 31st March, 2021
Land 20.08 11.28 - 31.36 7.47 8.50 - 15.97 15.39
Buildings 52.64 3.28 (1.08) 54.84 21.78 22.79 (0.56) 44.01 10.83
Total 72.72 14.56 (1.08) 86.20 29.25 31.29 (0.56) 59.98 26.22
Previous Year
Balance as at Additions Deletions due to Balance as at Balance as at Depreciation Depreciation Balance as at Balance as at
1st April, 2019 discontinued agreements 31st March, 2020 1st April, 2019 for the year on deletions 31st March, 2020 31st March, 2020
Land 15.45 4.63 - 20.08 - 7.47 - 7.47 12.61
Buildings 38.59 14.61 (0.56) 52.64 - 21.78 - 21.78 30.86
Total 54.04 19.24 (0.56) 72.72 - 29.25 - 29.25 43.47
Critical judgements in determining the lease term
In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option.
Extension options (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). For leases of Land, Office
Premises, Houses and Godowns the following factors are normally the most relevant:
- If there are significant penalties to terminate (or not extend), the Group is typically reasonably certain to extend (or not terminate).
- Otherwise, the Group considers other factors including historical lease durations and the costs and business disruption required to replace the leased asset.
- Most extension options in offices leases have not been included in the lease liability, because the Group could replace the assets without significant cost or business disruption.
- As at 31st March 2021, potential future cash outflows have not been included in the lease liability because it is not reasonably certain that the leases will be extended (or not terminated)
is not material in nature.
The lease term is reassessed if an option is actually exercised (or not exercised) or the Group becomes obliged to exercise (or not exercise) it. The assessment of reasonable certainty is only
revised if a significant event or a significant change in circumstances occurs, which affects this assessment, and that is within the control of the lessee. During the current financial year, the
financial effect of revising lease terms to reflect the effect of exercising extension and termination options was an increase in recognized lease liabilities and right-of-use assets is not material
in nature.
Note No. 4. Non-current investments

Particulars Face As at 31st March, 2021 As at 31st March, 2020
Value Quantity Amount Quantity Amount
(` in Crores) (` in Crores)
A. Investment in equity instruments at fair value through
other comprehensive income
Quoted Investments (fully paid)
Hindustan Oil Exploration Co. Ltd. ` 10 40,072 0.39 40,072 0.14
Hindustan Construction Co. Ltd. `1 2,000 # 2,000 #
Simplex Infrastructures Ltd. `2 500 # 500 #
ITD Cementation India Ltd. `1 1,000 0.01 1,000 0.01
Gammon India Ltd. `2 250 # 250 #
Total aggregate quoted investments 0.40 0.15
(b) Investment in equity instruments :
Simar Port Ltd. ` 10 1,000 # 1,000 #
# Amount is below the rounding off norms adopted by the Group. # #
Total investments carrying value 0.40 0.15
Aggregate amount of quoted investments 0.30 0.30
Aggregate market value of quoted investments 0.40 0.15
Aggregate amount of unquoted investments - -
Category-wise other investments - as per Ind-AS 109 classification: (` in Crores)

Financial assets carried at FVTOCI - equity instruments 0.40 0.15
Financial assets carried at amortised cost - -
0.40 0.15
Note No 5. Trade receivables (` in Crores)

From Customers:
Unsecured, considered good (including retention monies) 2,233.49 484.76 2,340.70 546.80
Doubtful - 65.45 - 15.28
2,233.49 550.21 2,340.70 562.08
Less: Provision for doubtful debts - 65.45 - 15.28
2,233.49 471.20 2,340.70 533.24
From related parties 341.55 3.16 134.49 3.16
Total 2,575.04 474.36 2,475.19 536.40
Note No. 5.1.A. Movement in the expected credit loss allowance (` in Crores)
st
st

Opening balance for loss allowance - 13.56 - 11.67
Add: Loss allowance assessed for the current year (net of reversal) - - - 1.89
Note No. 5.1.B. Movement in the provision for doubtful debts (` in Crores)
Opening balance for doubtful debts - 15.28 - 15.28
Add: Addition during the year - 50.17 - -
Less: Reversal during the year - - - -
Closing balance for doubtful debts - 65.45 - 15.28
117
Note No 6. Loans (` in Crores)

Advances to related parties (unsecured, considered good)
(Refer Note 34)
To Fellow subsidiaries 32.48 - 32.88 -
To Jointly Controlled Operations (net of Group share) 17.65 - 7.70 -
Total 50.13 - 40.58 -
These financial assets are carried at amortised cost.
Note No 7. Other financial assets (` in Crores)
st
st

(a) Interest on trade receivables as per arbitration awards 63.03 167.60 30.32 263.53
(b) Deposits (Unsecured, considered good)
(i) Security deposits 10.60 20.18 6.27 13.69
(ii) Other deposits 0.94 1.48 0.95 1.35
11.54 21.66 7.22 15.04
(c) Others 39.63 65.24 20.90 -
(d) Other Loans and advances (doubtful) - 0.16 - 0.16
Less: Provision for other doubtful loans and advances - 0.16 - 0.16
- - - -
(e) Bank deposits having maturity of more than 12 months - 19.37 - 0.20
(given towards margin money / under lien)
Total 114.20 273.87 58.44 278.77
Note No 8. Contract assets (` in Crores)

Contract assets
Amounts due from customer under construction contracts
Unsecured, considered good 2,455.38 1,518.02 3,149.76 1,723.94
Doubtful - - - 9.00
2,455.38 1,518.02 3,149.76 1,732.94
Total 2,455.38 1,493.02 3,149.76 1,723.94
Note No. 8.1 - Movement in the expected credit loss allowance (` in Crores)
Opening balance for loss allowance - 9.00 - -
Add: Loss allowance assessed for the current year (net of reversal) - 16.00 - 9.00
Note No 8.2 Other non-current & current assets (` in Crores)

(a) Capital advances - 15.20 - 6.16
(b) Pre-paid expenses 41.50 18.13 44.61 12.61
(c) Balances with government authorities
(i) GST / VAT credit receivable 457.30 114.83 333.31 120.90
(ii) Service Tax credit receivable - 30.23 2.45 27.78
(iii) Duty credit receivable 7.27 - 0.73 -
464.57 145.06 336.49 148.68
(d) Others
(i) Advance to vendors and others 422.38 2.72 425.87 20.34
(ii) Other receivables (Sale of scrap,etc.) 30.92 - 16.67 -
(iii) Advances to employees 4.95 - 5.54 -
458.25 2.72 448.08 20.34
Total 964.32 181.11 829.18 187.79
118
Note No 9. Inventories - at lower of cost or net realisable value (` in Crores)
Construction materials
Steel 383.00 502.29
Cement 15.27 10.37
Aggregate 32.17 33.80
Other construction material 215.54 220.98
645.98 767.44
Stores and spares 292.41 299.72
292.41 299.72
Total 938.39 1,067.16
Note No 10. Cash and cash equivalents (` in Crores)

st
st
Balances with banks 609.54 518.57

Cash on hand 2.98 3.97
Total cash and cash equivalents 612.52 522.54
Note No 10.1. Bank balance other than cash and cash equivalents (` in Crores)
Earmarked balance with banks
- Unpaid dividend accounts 0.13 0.68
- Balances held as margin money or security against borrowings,
guarantees and other commitments 84.03 64.81
- Other earmarked accounts / escrow accounts 3.90 2.85
Deposits having maturity of more than 3 months but less than 12 months 10.36 47.76
Total 98.42 116.10
Note No 11. Non-current tax assets (Net) (` in Crores)

Advance income tax (net of provisions ` 169.75 crores) 110.65 155.01
Total 110.65 155.01
Note No 12 (A). Equity share capital

Number of (` in Crores) Number of (` in Crores)
shares shares
1. Authorized:
Equity share capital of ` 10 each
Opening Balance 35,00,00,000 350.00 35,00,00,000 350.00
Closing Balance 35,00,00,000 350.00 35,00,00,000 350.00

Equity shares of ` 10 each. (Refer note 12.1 below)
Opening Balance 7,19,70,238 71.97 7,19,70,238 71.97
Closing Balance 7,19,70,238 71.97 7,19,70,238 71.97
12.1. Rights, preferences and restrictions attached to equity shares:
A member has a right to receive dividend as may be proposed by the board and approved at the annual general meeting. The Equity shares
are not repayable except in the case of a buyback, reduction of capital or winding up in terms of the provision of the Act. Every member of
the Company holding equity shares has a right to attend the General Meeting of the Company and has a right to speak and on a show of
hands, has one vote if he is present in person and on a poll shall have the right to vote in proportion to his share of the paid-up capital of
the Company.
119
Equity shares
Renaissance Commerce Private Limited - - 40,16,250 5.58
Hermes Commerce Private Limited - - 40,16,250 5.58
12.3. Reconciliation of number of Equity Shares of the Company and amount outstanding at the beginning and at the end of the
year.
Particulars Authorised Issued, subscribed and
fully paid up
Numbers (` in Crores) Numbers (` in Crores)
(in crores) (in crores)
Note No 12 (B). Instruments entirely equity in nature

Number of ` in Crores Number of ` in Crores
shares shares
1. Authorized:
Preference shares of ` 10 each. 65,00,00,000 650.00 65,00,00,000 650.00
Total 65,00,00,000 650.00 65,00,00,000 650.00
(a) 0.01% Non-cumulative and non-profit participatory convertible
preference shares of ` 10 each. (Refer note 12.4 below)
Opening Balance 10,00,00,000 100.00 10,00,00,000 100.00
Closing Balance 10,00,00,000 100.00 10,00,00,000 100.00
(b) 0.01% Fully and compulsorily convertible non-cumulative, non-
participatory preference shares of ` 10 each.
Opening Balance 25,00,00,000 250.00 25,00,00,000 250.00
Closing Balance 25,00,00,000 250.00 25,00,00,000 250.00
(c) 0.01% Fully and compulsorily convertible non-cumulative, non-
participatory preference shares of ` 10 each.
Opening Balance 10,00,00,000 100.00 10,00,00,000 100.00
Closing Balance 10,00,00,000 100.00 10,00,00,000 100.00
12.4. Rights, preferences and restrictions attached to 0.01% Non-cumulative and non-profit participatory convertible preference
shares:
(a) The preference shares shall be non-cumulative and non profit participating convertible preference phares carrying a fixed rate of
dividend of 0.01% per annum to be paid in priority to the holders of any other class of shares.
(b) The terms of these preference shares have been varied with consent of the preference shareholders and the special resolution
passed with requisite majority of the members of the Company vide Postal Ballot effective from 30th November, 2018 whereby the
preference shares shall be deemed to be converted into common equity shares of the Company at a price of ` 68.25 per equity share
(consisting of par of ` 10 and a premium of ` 58.25) immediately, automatically and without any further act of the parties in the event
of conversion of the preference shares mentioned in note 12.5 (a) below.
(c) Every member of the Company holding preference shares has a right to vote in the general meeting of the Company on resolutions
120
12.5. Rights, preferences and restrictions attached to 0.01% fully and compulsorily convertible non-cumulative, non-participatory
preference shares:
(a) The preference shares are automatically and mandatorily converted into equity shares on 13th January, 2024 (“mandatory
conversion date”) i.e. on the sixteenth year from the issue date.
(b) On mandatory conversion date or the early conversion date, as the case maybe, the preference shares shall be converted
into such number of equity shares of the Company constituting 74% of the outstanding equity share capital and convertible
preference shares of the Company calculated on a fully diluted basis on the date of issue (i.e. 14th January, 2008) resulting
into 24,65,40,258 equity shares in terms of the consent obtained from the preference shareholders and the special resolution
passed with requisite majority of the members of the Company vide Postal Ballot effective from 17th July, 2020.
(c) The preference shares shall be entitled to fixed non-cumulative preference dividend at the fixed rate of 0.01% per annum which
shall be paid in priority to the holder of any other class of shares.
as paid up on the preference shares held by it and all arrears and accruals (if any) of the preferential dividend calculated up to
the date of the commencement of the winding-up (in case of winding-up) or the return of capital (in any other case).
(e) The preference shares shall not confer any further right to participate in the profits or assets of the Company except as
mentioned above.
(f) Every member of the Company holding preference shares has a right to vote in the general meeting of the Company on
resolutions placed before the Company which directly affect the rights attached to these preference shares.
(g) The preference shares shall be transferable in accordance with the terms and conditions of the Articles and other provisions
agreed between the Company and the preference shareholders.
(h) The equity shares of the Company issued upon conversion of the preference shares will rank pari passu with the other equity
shares existing on the conversion date and shall be transferable in accordance with the terms and conditions of the Articles.
12.6. Rights, preferences and restrictions attached to 0.01% fully and compulsorily convertible non-cumulative, non-participatory
preference shares:
(a) The preference shares shall be automatically and mandatorily converted into equity shares on 21st March, 2024 (“mandatory
conversion date”) i.e. on the expiry of ten years from the issue date. The mandatory conversion date of the 0.01% fully and
compulsorily convertible non-cumulative, non-participatory preference shares has been revised from 21st March, 2019 (5th
year from the date of issue) to 21st March, 2024 (10th year from the date of issue) in terms of the consent obtained from the
preference shareholders and the special resolution passed with requisite majority of the members of the Company vide Postal
Ballot effective from 30th November, 2018.
(b) On mandatory conversion date, the preference shares shall be converted into such number of equity shares of the Company
at the price of ` 132 per equity shares (consisting of par of ` 10 and a premium of ` 122).
(c) The preference shares shall be entitled to fixed non-cumulative dividend at the fixed rate of 0.01% per annum which shall be
paid in priority to the holder of any other class of shares.
as paid up on the preference shares held by it.
(e) Every member of the Company holding preference shares has a right to vote in the general meeting of the Company on
resolutions placed before the Company which directly affect the rights attached to these preference shares.
0.01% Non-cumulative and non-profit participatory convertible
preference shares
0.01% Fully and compulsorily convertible non-cumulative non-
participatory preference shares
Goswami Infratech Private Limited 25,00,00,000 100.00 25,00,00,000 100.00
0.01% Fully and compulsorily convertible non-cumulative non
participatory preference shares
121
Note No 12.8. Details of shares held by the holding company, the ultimate holding company, their subsidiaries and associates:
Equity 0.01% Non- 0.01% Equity 0.01% Non- 0.01%
shares cumulative Fully and shares cumulative Fully and
and non- compulsorily and non- compulsorily
profit convertible profit convertible
participatory non- participatory non-
convertible cumulative convertible cumulative
preference non- preference non-
shares participatory shares participatory
preference preference
shares shares
Number of shares Number of shares
Shapoorji Pallonji & Company Private 4,91,05,652 - 10,00,00,000 4,91,05,552 - 10,00,00,000
Limited, the holding company
Subsidiaries of the holding company:
Floreat Investments Private Limited 1,30,15,929 10,00,00,000 - 1,30,15,929 10,00,00,000 -
Renaissance Commerce Private Limited - - - 40,16,250 - -
Hermes Commerce Private Limited - - - 40,16,250 - -
Note No 12.9.
The word Company used in the Balance Sheet and Statement of Profit & Loss including the accompanying notes to accounts is defined as
“Afcons Infrastructure Limited” including all of its branches and Jointly Controlled Operations.
Note No 13. Other equity (` in Crores)
Capital reserve 0.84 0.84
Capital redemption reserve 0.13 0.13
Securities premium account 10.28 10.28
Contingency reserve 8.00 8.00
Debenture redemption reserve 43.75 52.50
General reserve 65.75 65.75
Foreign exchange translation reserve through other comprehensive income 24.57 20.73
Retained earnings 1,695.13 1,543.79
Reserve for equity instruments through other comprehensive income 19.59 19.33
Total 1,868.04 1,721.35
Movement in other equity: (` in Crores)

st
st
(a) Capital reserve

(b) Capital redemption reserve
(c) Securities premium account
(d) Contingencies reserve
(e) Debenture redemption reserve
Add : Transferred from / (to) surplus in Statement of Profit and Loss (8.75) 10.00
(f) General reserve
122
Movement in other equity (Continued) (` in Crores)
st
st
(g) Foreign currency translation reserve

Add : Effect of foreign exchange rate variations during the year 3.84 6.32
(h) Retained earnings
Opening balance 1,543.79 1,339.27
Add: Profit for the year 166.97 245.59
Add: Other items classified to other comprehensive income 0.86 (5.82)
Less: Appropriations
Interim dividend on equity shares (` 3.50 per share) 25.19 25.19
(previous Year ` 3.50 per share)
Dividend on preference shares (` 0.001 per share) 0.05 0.05
(previous Year ` 0.001 per share)
Dividend distribution tax - 0.01
Transferred to / (from) Debenture redemption reserve (8.75) 10.00
Closing balance 1,695.13 1,543.79
(i) Reserve for equity instruments through other comprehensive income
Add: Net fair value gain/(loss) on investments in equity instruments
measured at FVTOCI 0.26 (0.31)
Total 1,868.04 1,721.35
Nature and purpose of each reserve within other equity

Capital reserve
The capital reserve is on account of acquisition of subsidiary companies.
Capital redemption Reserve
As per the provisions of Companies Act, capital redemption reserve is created out of the general reserve for the amount equivalent to the
paid up capital of shares bought back by the Company.
Securities premium account
Where Company issued shares at a premium, a sum equal to the aggregate amount of the premium received on those shares shall
be transferred to a “securities premium account” as per the provisions of applicable Companies Act. This reserve is utilized as per the
provisions of the Companies Act.
Contingency reserve
The contingency reserve was created to protect against loss for amounts due from a partnership firm.
Debenture redemption reserve
The Companies Act requires that where a company issues debentures, it shall create a debenture redemption reserve out of profits of the
company available for payment of dividend. The amounts credited to the debenture redemption reserve may not be utilized by the company
except to redeem debentures.
General reserve:
The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. There is no policy
of regular transfer. As the general reserve is created by a transfer from one component of equity to another and is not an item of other
comprehensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.
Foreign currency translation reserve:
Exchange differences relating to the translation of the results and net assets of the Group’s foreign operations from their functional currencies
to the Group’s presentation currency (i.e. `) are recognised directly in other comprehensive income and accumulated in the foreign currency
translation reserve. The cumulative amount is reclassified to profit or loss when the net investment is disposed-off.
Retained earning and dividend on equity shares:
This represent the surplus / (deficit) of the profit or loss. The amount that can be distributed by the Company to its equity shareholders is
determined considering the requirements of the Companies Act, 2013. Thus, the amount reported above are not distributable in entirety.
On 18th March, 2021, an interim dividend of ` 3.50 per share (total dividend ` 25.19 Crores) was paid to holders of fully paid equity shares.
Reserve for equity instrument measured through other comprehensive income
This reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through
other comprehensive income. The Group transfers amounts from this reserve to retained earnings when the relevant equity securities are
derecognized.
123
Note No 14. Non-current borrowings (` in Crores)

st
st

(a) Debentures (Unsecured) (Refer note 14.1) - 200.00
(b) Equipment loan (Secured) (Refer note (14.2)
From banks
Rupee loan 472.64 372.82
Total 472.64 572.82
14.1 Details of debentures (` in Crores)

Particulars Terms of repayment As at 31st March, 2021 As at 31st March, 2020
Unsecured, redeemable, unlisted,
non-convertible debentures (NCDs)
i) 8.85% NCDs Refer note 14.1 (i) below - - - 100.00
ii) 8.90% NCDs Refer note 14.1 (ii) below - - - 100.00
Total Non-Convertible Debentures - - - 200.00
14.1 (i) The NCDs carry interest @ 8.85% per annum payable annually and are redeemable in full on 6th September, 2021 (i.e. at the end
14.1 (ii) The NCDs carry interest @ 8.90% per annum payable annually and are redeemable in full on 23rd February, 2022 (i.e. at the end
14.2 Details of terms of repayment of long-term borrowings from banks and security provided in respect thereof: (` in Crores)
Particulars Terms of security As at 31st March, 2021 As at 31st March, 2020
14.2 (i) Equipment loan from banks
Rupee loan:
Axis Bank 80.00 - 120.00 -
HSBC Bank 43.75 - 50.00 -
Refer note 14.2 (ii)
State Bank of India 160.00 - 202.82 -
below
SBM Bank 38.89 - - -
Export Import Bank of India 150.00 - - -
Total - Equipment loan 472.64 - 372.82 -
Total long-term borrowings from banks 472.64 - 372.82 -
14.2 (ii). Secured by first pari passu charge on plant & machinery. The rupee loan of Axis Bank Limited carry interest @ 7.90% per annum,
State Bank of India carry interest @ 7.75% per annum, HSBC Bank carry interest @ 8.25% per annum, SBM Bank carry interest
@ 9.20% per annum and Export Import Bank of India carry interest @ 8.30% per annum. The repayment schedule of the loans
are as follows:
As at 31st March, 2021
Nature Bank name Loan amount Repayment schedule
Axis Bank Ltd. 80.00 Each annual installment of ` 40 crores upto 2023-24
HSBC Bank 43.75 Semi annual installment of ` 6.25 crores upto 2025-26
Rupee Loan State Bank of India 160.00 Semi annual installment of ` 20 crores upto 2025-26
SBM Bank 38.89 Semi annual installment of ` 5.56 crores upto 2025-26
Export Import Bank of India 150.00 Each monthly installment of ` 2.78 crores upto 2026-27
Note No 15. Trade payables (` in Crores)

Trade payables
(a) Total outstanding due to micro and small enterprises 344.69 4.57 55.56 -
(b) Total outstanding due to creditors other than micro and small enterprises 2,767.27 447.69 3,305.65 557.12
Total 3,111.96 452.26 3,361.21 557.12
124
Disclosures as required under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) (` in Crores)
Principal amount due to suppliers registered under the MSMED Act and
remaining unpaid as at year end 324.76 51.98
Interest due to suppliers registered under the MSMED Act and remaining
unpaid as at year end 13.76 1.02
Principal amounts paid to suppliers registered under the MSMED Act,
beyond the appointed day during the year 153.74 88.33
Interest paid, other than under section 16 of MSMED Act, to suppliers
registered under the MSMED Act, beyond the appointed day during the
year - -
Interest paid, under section 16 of MSMED Act, to suppliers registered
under the MSMED Act, beyond the appointed day during the year - -
Interest due and payable towards suppliers registered under MSMED Act,
for payments already made 7.16 2.48
Further interest remaining due and payable for earlier years 3.58 0.08
Note No 16. Other financial liabilities (` in Crores)

(a) Current maturities of long-term debts (Refer note 16.1 below) 275.18 - 96.03 -
(b) Interest accrued but not due on borrowings 7.14 - 5.88 -
(c) Unclaimed / unpaid dividends # 0.11 - 0.68 -
(d) Interest accrued on advance from customers 55.06 - 78.37 -
(e) Other payables
(i) Trade / security deposits received 56.48 - 32.79 -
(ii) Amount received on invocation of bank guarantees - 76.54 - 75.05
(iii) Distribution of profit payable to member of JV - 0.01 - 0.01
(iv) Others 91.60 172.04 71.09 54.40
148.08 248.59 103.88 129.46
Total 485.57 248.59 284.84 129.46
# The figures reflect the position as at year end. The actual amount to be transferred to the Investor Education and Protection Fund in this
respect shall be determined on the due dates.
Note No 16.1 (` in Crores)
Non-Convertible Debentures (Unsecured) 175.00 - - -
Equipment loans from banks (Rupee Loan) (Secured) # 100.18 - 73.33 -
Foreign currency loans (External Commercial Borrowings) (Secured) # - - 22.70 -
Total 275.18 - 96.03 -
# For nature of security and interest rate refer note no.14.1 & 14.2
Note No 17. Contract liabilities (` in Crores)
Contract liabilities
Amount due to customers 1,513.59 - 1,123.65 -
Advances from customers 1,008.58 1,576.73 1,551.07 1,942.73
Total 2,522.17 1,576.73 2,674.72 1,942.73
Note No 17.1 Other non-current and current liabilities (` in Crores)

st
st

Statutory remittances (VAT, GST, Service tax, Contributions to PF,
Superannuation, ESIC, Withholding taxes, Labour welfare cess, etc.) 49.03 - 58.04 -
Other payables
Advance against sale of scrap 0.11 - 0.12 -
Total 49.14 - 58.16 -
125
Note No 18. Provisions (` in Crores)

Provision for employee benefits:
Provision for compensated absences (Refer note 30) 2.31 25.73 3.05 25.83
Provision for gratuity (Refer note 30) 8.00 3.07 10.77 7.44
10.31 28.80 13.82 33.27
Provision - Others:
Provision for foreseeable losses for onerous contracts 33.02 - 9.82 -
Total 43.33 28.80 23.64 33.27
(i) The provision for employee benefits includes annual leave and vested long service leave entitlements accrued and gratuity.
Note No. 18.1 - Movement in the provision for foreseeable losses for onerous contracts (` in Crores)
st
st

Opening Balance 9.82 - 4.10 -
Add: Additions made during the year 23.83 - 9.19 -
Less: Reversals made during the year 0.63 - 3.47 -
Less: Exchange differences - - - -
Closing Balance 33.02 - 9.82 -
Note No 19. Current tax liabilities (net) (` in Crores)

Provision for tax (net of advance tax ` 68.22 crores) 46.10 17.33
Total 46.10 17.33
Note No 20. Current borrowings (` in Crores)

st
st
(a) Working capital loans from banks

(b) Cash credit facility from banks
(c) Book Overdraft (Refer note 20.1 below) 1.57 15.73
(d) Acceptances 1.23 48.34
Total 833.63 953.16
Note 20.1:
Details of security for the secured short-term borrowings: (` in Crores)
Particulars Terms of security As at 31 March, 2021
st
st
Working capital demand loans (WCDL)

From banks:
State Bank of India 300.00 300.00
HSBC Bank - 31.01
Indian Bank 30.00 30.00
Export Import Bank of India 200.00 175.00
ICICI Bank 45.00 45.00
Union Bank of India Refer note 20.2 15.00 -
UCO Bank below 30.00 -
Bank of India 29.79 -
Bank of Baroda - 49.89
Axis Bank 78.00 78.00
OBC Bank 71.74 72.00
BNP PARIBAS - 50.00
IDBI Bank 6.00 -
805.53 830.90
Cash credit facility and book overdraft Refer note 20.2 below 26.87 73.92
126
Note 20.2:
(i) Security:
Secured by first charge by way of equitable mortgage on the immovable properties of the Group situated at Andheri, Mumbai on a
pari passu basis. The Group’s stock of construction material, stores, WIP, book debt is further secured under indenture of mortgage
and first charge on movable plant & machinery of the Group upto 50% of the fund based limits with other term lenders on pari passu
basis. Cash credit facility / working capital demand loan is further secured by the Group’s proportionate share of current assets in all
the joint ventures both present and future.
(ii) Interest:
Cash credit facility and working capital demand loan from banks carry interest ranging from 7.35% to 9.25% per annum (as on
31st March, 2020 interest ranging from 7.96% to 9.90% per annum).
Note No 21. Current tax and deferred tax
(a) Income tax expense (` in Crores)

Current tax:
Current tax in respect of the current year 115.46 129.97
Adjustments in respect of previous years 2.10 5.24
Deferred tax:
In respect of current year 3.05 (7.28)
Total income tax expense recognised in the consolidated
statement of profit and loss account 120.61 127.93
(b) Reconciliation of tax expense and the accounting profit multiplied by India’s tax rate: (` in Crores)
Amount Tax Rate Amount Tax Rate
Income tax using the Group's domestic tax rate # 101.51 34.94% 131.26 34.94%
Effect of tax rates in foreign jurisdictions
Effect of income that is exempt from taxation (23.10) (7.95%) (0.38) (0.10%)
Loss in respect of which deferred tax assets not recognised due
to uncertainty 40.17 13.83% 3.45 0.92%
Disallowable expenses 9.01 3.10% 1.43 0.38%
Effect of tax rates differences of entities operating in other
jurisdictions having different tax rates 9.70 3.34% 8.75 2.33%
Charge/(credit) in respect of previous years 0.23 0.08% 0.75 0.20%
Effect of change in tax rates (17.27) (5.94%) (8.64) (2.30%)
Others 0.36 0.12% (8.69) (2.31%)
Income tax expenses recognised in statement of profit and loss 120.61 41.52% 127.93 34.06%
# The tax rate used for the reconciliation above is the corporate tax rate of 30%, surcharge of 12% on corporate tax, education cess
3% and secondary and higher education cess of 1% on corporate tax.
(c) Movement of deferred tax (` in Crores)
Particulars For the Year ended 31st March, 2021
Property, plant and equipments 78.50 9.20 - (0.16) 87.54
Unremitted earnings of subsidiaries 6.70 (6.70) - - -
Arbitration awards 191.07 (4.57) - - 186.50
276.27 (2.07) - (0.16) 274.04
Employee benefits (16.46) 2.33 0.46 - (13.67)
Adjustment on adoption of Ind AS 116 (0.78) 0.28 - - (0.50)
Provisions (8.61) (25.86) - - (34.47)
Minimum alternate tax credit (29.79) 33.96 - (4.20) (0.03)
(63.52) 5.12 0.46 (4.20) (62.14)
Net tax liabilities 212.75 3.05 0.46 (4.36) 211.90
127
(` in Crores)
Particulars For the Year ended 31st March, 2020
Property, plant and equipments 74.20 4.30 - - 78.50
Unremitted earnings of subsidiaries 15.34 (8.64) - - 6.70
Arbitration awards 185.70 5.37 - - 191.07
275.24 1.03 - - 276.27
Employee benefits (12.53) (0.81) (3.12) - (16.46)
Adjustment on adoption of Ind AS 116 - (0.78) - - (0.78)
Provisions (7.59) (1.02) - - (8.61)
Minimum alternate tax credit (72.52) - - 42.73 (29.79)
Other items (0.30) 0.30 - - -
(94.82) (8.31) (3.12) 42.73 (63.52)
Net tax liabilities 180.42 (7.28) (3.12) 42.73 212.75
Note No 22. Revenue from operations (` in Crores)

(a) Revenue from sale of goods (Construction Materials) 33.90 20.43
(b) Construction contract revenue (Refer note 22.1 below) 9,271.32 9,866.38
(c) Other operating income (Refer note 22.2 below) 70.35 47.38
Total 9,375.57 9,934.19
(` in Crores)
22.1 Construction contract revenue comprises:
Construction revenue 9,271.32 9,866.38
Total - Sale of services 9,271.32 9,866.38
22.2 Other operating income comprises:
Sale of scrap 44.79 18.05
Others 25.56 29.33
Total - Other operating revenues 70.35 47.38
Note No 23. Other income (` in Crores)

(a) Interest income on financial assets at amortised cost 102.03 22.25
(b) Other non operating income (Refer note 23.2 below) 43.53 174.25
Total 145.56 196.50
(` in Crores)
23.1 Interest income comprises:
Interest on arbitration awards 85.55 15.78
Other Interest 16.48 6.47
Total - Interest income 102.03 22.25
23.2 Other non-operating income comprises:
Creditors / Excess provision written back 14.90 7.89
Provision for projected loss on contract written back 0.63 3.70
Net gain on foreign currency transactions and translation 6.09 74.80
Miscellaneous income 13.46 17.63
Total - Other non-operating income 43.53 174.25
128
Note No 24. Cost of material consumed (` in Crores)

Cost of construction materials consumed (Including bought out Items) 2,544.56 2,676.88
Total 2,544.56 2,676.88
Note No 24.1. Cost of construction (` in Crores)

Stores and spare consumed 392.11 383.05
Subcontracting expenses 2,225.54 2,641.85
Equipments hire / rent charges 456.30 518.87
Site installation 86.07 179.93
Technical consultancy 167.93 353.47
Power and fuel consumed 381.58 359.93
Freight and handling charges 403.11 294.02
Total 4,112.64 4,731.12
Note No 25. Employee benefit expenses (` in Crores)

Salaries, wages and bonus 768.73 838.48
Contributions to provident and other funds: (Refer note 30)
Contribution to provident fund 23.42 21.44
Gratuity expense 6.08 4.55
Leave encashment expense 2.73 12.97
Other post-employment benefits 22.05 20.41
Staff welfare expenses 101.15 73.52
Total 924.16 971.37
Note No 26. Finance costs (` in Crores)

Interest and finance charges on lease liabilities and financial liabilities
not at fair value through profit or loss
Bank overdrafts and loans 167.28 196.25
Advance from clients 136.31 89.37
Lease liabilities 3.18 4.54
Others 50.14 23.63
356.91 313.79
Other borrowing costs:
Bank guarantee commission including bank charges 100.74 71.60
Others 9.92 5.40
Total 467.57 390.79
Note No 27. Depreciation and amortisation expenses (` in Crores)

Depreciation on tangible assets 219.06 210.52
Amortisation on intangible assets 0.18 0.53
Depreciation on right-of-use assets 30.73 29.25
Depreciation and amortisation as per statement of profit and loss 249.97 240.30
129
Note No 28. Other expenses (` in Crores)

Water and electricity 11.19 10.45
Rent / Hire charges 37.47 40.49
Repairs and maintenance - Machinery 21.50 18.34
Repairs and maintenance - Others 16.70 21.06
Insurance charges 82.00 66.84
Rates and taxes 72.47 51.58
Communication 10.46 11.40
Travelling and conveyance 86.06 105.16
Security charges 47.73 41.95
Donations and contributions 9.47 0.75
Expenditure on corporate social responsibility (CSR) 1.35 1.47
Legal and professional 157.44 165.34
Payment to auditors (Refer note below) 1.77 1.48
Advances written-off 6.18 0.22
Bad / irrecoverable debtors / unbilled revenue written-off 208.49 94.12
Provision for Doubtful Debtors 50.17 -
Expected credit loss on contract assets 16.00 10.89
Provision for foreseeable losses for onerous contracts 23.83 9.19
Loss on sale of fixed assets (net) 7.91 10.63
Miscellaneous expenses 63.54 83.25
Total 931.73 744.61
Note 28.1: Details of payment to auditors (` in Crores)

Auditors remuneration comprises
(a) To auditors
For statutory audit 1.25 0.95
For tax audit 0.05 0.03
For other services (taxation matters, GST, certification work) 0.45 0.48
Reimbursement of expenses # #
# Amount is below the rounding off norms adopted by the Group.
1.75 1.46
(b) To cost auditors 0.02 0.02
0.02 0.02
Total (a + b) 1.77 1.48
130
Note 29: Contingent liabilities and commitments (to the extent not provided for) (` in Crores)
(i) Contingent liabilities
(a) Claims against the Group not acknowledged as debts (excluding
claims where amounts are not ascertainable)
i) Differences with sub-contractors/vendors in regard to rates 88.17 310.66
and quantity of materials.
ii) Royalty Claims* 483.64 239.00
(b) Sales tax and entry tax
Represents demands raised by sales tax authorities in matters of 27.01 24.23
a) disallowance of labour and service charges, consumables etc. b)
Tax on AS7 turnover c) Entry tax and d) Interest and penalty etc. for
which appeal is pending before various appellate authorities. The
Group is confident that the cases will be successfully contested.
(c) VAT
Represents partial disallowance by West Bengal VAT Authorities 0.84 1.18
for the year 2016-17. In matters of disallowance of subcontractor
charges, labour charges, PF contribution, architectural charges,
cost of consumables, cost of establishment, etc. for which appeal
is pending before higher appellate authority. The entity is confident
that the case will be successfully contested.
(d) Excise duty
Represents demands raised by central excise department for 0.66 0.66
excisability of girders. The Group is confident that the cases will be
successfully contested.
(e) Service tax
Represents demand confirmed by the CESTAT / Asst. commissioner 128.84 118.25
of service tax for a) disallowance of cenvat credit, since abatement
claimed by the Group, b) disallowance of general exemption of
private transport terminals and c) taxability under "Commercial or
Industrial Construction Service", etc. The Group has appealed / in
the process of appeal against the said order with commissioner
of service tax Mumbai,CESTAT / High court and is confident that
the cases will be successfully contested. The Group has received
the stay order for some case from the CESTAT. Amount disclosed
does not include penalties in certain matters for which amount is
unascertainable.
Note:- In respect of items mentioned under paragraphs (a), (b), (c),
(d) and (e) above, till the matters are finally decided, the financial
effect cannot be ascertained and future cashflows in respect of
above matters are determinable only on receipts of judgements /
decisions pending at various forums / authorities
(ii) Commitments
Estimated amount of contracts remaining to be executed on capital 76.44 191.18
account and not provided for
(iii) Income tax
Demand raised by income tax department on account of 26.24 26.24
disallowance of expenses and addition made in respect of receipt
of income. The Group has obtained stay order from tax department.
The Group is confident that the case will be successfully contested
before concerned appellate authorities.
Notes:
* The Group has received a demand and a show cause notice amounting to ` 238 crores and ` 244 crores respectively with respect
to liability on account of royalty payable on Murrum used in one of the projects. Subsequent to the show cause notice, the Group has
obtained a stay order on the same. Further, based on legal opinion, the Group expects that the claim is highly unlikely to materialise.
The Group has implemented the decision given in the Supreme Court Judgement in case of “Vivekananda Vidyamandir And Others
Vs The Regional Provident Fund Commissioner (II) West Bengal” and the related circular (Circular No. C-I/1(33)2019/Vivekananda
Vidya Mandir/284) dated March 20, 2019 issued by the Employees’ Provident Fund Organisation in relation to non-exclusion of
certain allowances from the definition of “basic wages” of the relevant employees for the purposes of determining contribution
to provident fund under the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 w.e.f. April 01, 2019. Basis the
assessment of the management, which is supported by legal advice, the aforesaid matter is not likely to have significant impact in
respect of earlier periods.
131
Note No 30. Employee benefit plans
a. Defined contribution plan
(i) Provident fund
(ii) Superannuation fund
(iii) State defined contribution plans
The provident fund and the state defined contribution plan are operated by the regional provident fund commissioner and the
superannuation fund is administered by the Life Insurance Corporation (LIC). Under the schemes, the Group is required to
contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits.
The total expense recognised in profit or loss of ` 42.49 crores (for the year ended March 31, 2020: ` 37.46 crores) represents
contributions payable to these plans by the Group at rates specified in the rules of the plans.
b. Defined benefit plans
(i) Gratuity
The Group provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous
service for a period of 4 years and 240 days are eligible for gratuity. The amount of gratuity payable on retirement / termination is
the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years
of service without any ceiling limit as given under Payment of Gratuity Act, 1972.
Whereas on death of an employee the amount of gratuity payable is amount equivalent to one month salary, payable for each
completed year of service or part thereof in excess of six months in terms of Gratuity scheme of the Group or as per payment of
the Gratuity Act, whichever is higher.
The gratuity plan of the Group is unfunded and the Group accounts for gratuity benefits payable in future based on an independent
external actuarial valuation carried out at the end of the year using Projected Unit Credit Method.
Investment risk
The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to
market yields at the end of the reporting period on government bonds.
Interest risk
A decrease in the bond interest rate will increase the plan liability.
Longevity risk
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan
participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the
plan’s liability.
Salary risk
The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such,
an increase in the salary of the plan participants will increase the plan’s liability.
The risk relating to benefits to be paid to the dependents of plan members (widow and orphan benefits) is re-insured by an
external insurance company.
No other post-retirement benefits are provided to these employees.
In respect of the plan, the most recent actuarial valuation of the present value of the defined benefit obligation were carried out
as at March 31, 2021 by an actuary. The present value of the defined benefit obligation, and the related current service cost and
past service cost, were measured using the Projected Unit Credit Method.
The Group has recognised following amounts in the statement of profit and loss: (` in Crores)
Superannuation Fund 19.07 16.02
Provident Fund 23.42 21.44
State defined contribution plans - -
Gratuity 6.08 4.55
Compensated absences 2.73 12.97
Total 51.30 54.98
c. Details of defined benefit plan - Gratuity

The principle assumptions used for the purpose of actuarial valuation (considered for the Group)
Expected Return on Plan Assets 6.87% 6.86%
Rate of Discounting 6.87% 6.86%
Rate of Salary Increase 6.00% 6.00%
Rate of Employee Turnover For service 4 years and below 6.00% p.a. & for service 5 years
and above 2.00% p.a
Mortality Rate During Employment* Indian Assured Lives Mortality (2006-08)
*Based on India’s standard mortality table with modification to reflect expected changes in mortality.
132
The estimate of rate of escalation in salary considered in actuarial valuation takes into account inflation, seniority, promotion and other
relevant factors including supply and demand in the employment market.
(i) Components of defined benefit cost (` in Crores)
March 31, 2021 March 31, 2020
Service cost:
Past service cost and (gain)/loss from settlements - -
Interest cost on benefit obligation (Net) 1.25 1.08
Return on plan assets (excluding amounts included in net interest - -
expense)
Total defined benefit costs recognised in profit or loss 6.08 4.55
Actuarial losses arising from changes in demographic assumptions (0.39) 0.28
Actuarial losses arising from changes in financial assumptions (0.04) 3.48
Total defined benefit costs recognised in OCI (1.32) 8.94
Total defined benefit costs recognised in profit or loss and OCI 4.76 13.49
(ii) Net (liabilities) recognised in the Balance Sheet (` in Crores)
March 31, 2021 March 31, 2020
Present value of defined benefit obligation 47.63 44.34
Fair value of plan asset 36.56 26.13
Net liabilities recognised in the Balance Sheet (11.07) (18.21)
(iii) Movements in the present value of the defined benefit obligation are as follows. (` in Crores)
Opening defined benefit obligation 44.34 32.31
Interest cost 3.04 2.52
Remeasurement (gains) / losses:
Actuarial (gains) / losses arising from changes in financial (0.04) 3.48
assumptions
Past service cost, including losses on curtailments - -
Liabilities extinguished on settlements - -
Closing defined benefit obligation 47.63 44.34
(iv) Movements in the fair value of plan assets are as follows. (` in Crores)
Opening fair value of plan assets 26.13 18.43
Interest income 1.79 1.44
Remeasurement gain / (loss):
Return on plan assets 0.39 (0.28)
Contributions from the employer 11.90 9.16
Closing fair value of plan assets 36.56 26.13
The Company pays premium to the group gratuity scheme of LIC and the fund is managed by LIC
(v) Sensitivity Analysis
Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase
and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the respective
assumptions occurring at the end of the reporting period, while holding all other assumptions constant.
1) If the discount rate is 100 basis points higher / (lower), the defined benefit obligation would decrease by ` 4.00 crores
(increase by ` 4.70 crores) (as at March 31, 2020: decrease by ` 3.72 crores (increase by ` 4.37 crores)).
2) If the expected salary growth increases / (decreases) by 1%, the defined benefit obligation would increase by ` 4.70 crores
3) If the employee turnover increases / (decreases) by one year , the defined benefit obligation would increase by ` 0.23 crores
133
(vi) Sensitivity analysis method
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is
unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated
using the Projected Unit Credit Method at the end of the reporting period, which is the same as that applied in calculating the
defined benefit obligation liability recognised in the balance sheet.
There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.
The average duration of the benefit obligation at March 31, 2021 is 15 years (as at March 31, 2020: 16 years).
The Group expects to make a contribution of ` 8.00 crores (as at March 31, 2020: ` 10.77 crores) to the defined benefit plans
during the next financial year.
(vii) Maturity profile of defined benefit obligation:
Projected benefits payable in future years from the date of reporting
Particulars (` in Crores)
1st following year 2.95
2nd following year 3.32
3rd following year 4.24
Sum of years 6 to 10 19.90
d. Compensated Absences
The liability for Compensated absences (non-funded) as at year end is ` 28.04 crores (as at March 31, 2020 ` 28.88 crores) covers
the Group’s liability for sick and privilege leave and is presented as current liabilities, since the Group does not have an unconditional
right to defer the settlement of any of these obligations.
The Group makes provision for compensated absences based on an actuarial valuation carried out at the end of the year using the
Projected Unit Credit Method.
The amount of the provision of ` 28.04 crores (as at March 31, 2020 ` 28.88 crores) is presented as current liabilities,since the Group
does not have an unconditional right to defer settlement for any of these obligations.
Note No 31. Earnings per share (EPS)
EPS is calculated by dividing the profit attributable to the equity shareholders by the weighted average number of equity shares outstanding
during the year, as under :
` `
Basic earnings per share 23.60 34.41
Diluted earnings per share 4.99 7.27
Basic earnings per share

The earnings and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows:
(` in Crores)
Profit for the year attributable to shareholders of the Company - 169.89 247.69
earnings used in calculation of basic earnings per share
Dividends paid on convertible non-participating preference shares (0.05) (0.05)
Earnings used in the calculation of basic earnings per share 169.84 247.64
Profits used in the calculation of basic earnings per share 169.84 247.64
The weighted average number of equity shares for the purpose of basic earnings per share is as follows:
Number Number
per share 7,19,70,238 7,19,70,238
134
Diluted earnings per share

The earnings and weighted average number of ordinary shares used in the calculation of diluted earnings per share are as follows:
(` in Crores)
Profit for the year attributable to shareholders of the Company - earnings
used in calculation of basic earnings per share 169.89 247.69
Earnings used in the calculation of diluted earnings per share 169.89 247.69
Profits used in the calculation of diluted earnings per share 169.89 247.69
The weighted average number of equity shares for the purpose of diluted earnings per share reconciles to the weighted average number
of equity shares used in the calculation of basic earnings per share as follows:
Number Number
per share 7,19,70,238 7,19,70,238
Shares deemed to be issued for no consideration in respect of:
- Convertible preference shares 26,87,68,030 26,87,68,030
Weighted average number of shares used in calculation of diluted
earnings per share 34,07,38,268 34,07,38,268
Note 32: Segment information : (` in Crores)

Segment Profit before tax (before exceptional items)
India (198.68) (254.57)
290.50 375.62
Add: Unallocated income - -
Less: Unallocated expenses - -
(` in Crores)
Revenue from external customers As at 31 March, 2021
st
st
India 6,001.69 6,121.19

Total 9,375.57 9,934.19
(` in Crores)
Segment Assets As at 31st March, 2021 As at 31st March, 2020
India 11,021.25 11,596.17
14,504.29 15,569.95
Intersegment eliminations (2,125.53) (2,633.88)
Unallocated
Investments 0.54 5.70
Non current tax assets 110.65 155.01
Total assets as per balance sheet 12,489.95 13,096.78
(` in Crores)
Non-current assets As at 31st March, 2021 As at 31st March, 2020
India 2,222.51 2,613.56
Total non-current assets 2,422.36 2,726.90
135
(` in Crores)
Segment Liabilities As at 31 March, 2021
st
st
India 6,286.71 6,479.90

9,494.20 9,996.70
Intersegment eliminations (948.00) (885.86)
Unallocated
Current Borrowings 833.63 953.16
Non-Current Borrowings 472.64 572.82
Deferred Tax Liability 211.90 212.75
Current Tax Liability 46.10 17.33
Shareholders Fund 2,379.48 2,229.87
Total liabilities as per balance sheet 12,489.95 13,096.78
(` in Crores)
Non-current liabilities As at 31st March, 2021 As at 31st March, 2020
India 1,384.46 1,609.46
Other Countries 935.04 1,069.58
Total non-current liabilities 2,319.50 2,679.04
Information about major customers:

During the current year ended March 31, 2021, revenue of ` 1,695.71 crore arising from a customer in India (viz Nagpur Mumbai Super
Communication Expressway Limited) contributes to more than 10% of the Group’s revenue.
Note No 33. Corporate social responsibility: (` in Crores)
Gross amount required to be spent by the Group during the year: (Previous year ` 0.81 crores) Nil
Amount spent during the year on:

CSR activities (in cash) Paid To be paid Total
(i) Construction/acquisition of an asset 1.35 - 1.35
(ii) Purposes other than (i) above - - -
Total 1.35 - 1.35
136
Note 34: Related party disclosures
(a) Details of related parties:
Related Party where Control exists
Holding Company
Shapoorji Pallonji & Co. Pvt. Ltd.
Fellow Subsidiary(s)
Floreat Investments Private Limited
Forvol International Services Limited
Forbes & Company Ltd.
Shapoorji & Pallonji Qatar, WLL
Eureka Forbes Ltd.
Forbes Facility Services Pvt.Ltd.
S.D.Corporation Pvt.Ltd.
Shapoorji Pallonji Infrastructure Capital Co Pvt Ltd
Shapoorji Pallonji Pandoh Takoli Highway Pvt. Ltd
Shapoorji Pallonji Oil and Gas Pvt Ltd
Forbes Enviro Solutions Ltd
Sterling & Wilson International
Shapoorji Pallonji Mideast LLC
S P Engineering Service Pte Ltd
S P International
SP International FZE
SP International FZC
SP Oil and Gas Malaysia SDN BHD
Jointly Controlled Operations
Transtonnelstroy Afcons Joint Venture
Dahej Standby Jetty Project Undertaking
Afcons Gunanusa Joint Venture
Afcons Pauling Joint Venture
Strabag AG Afcons Joint Venture
Ircon Afcons Joint Venture
Afcons Sener LNG Construction Projects Pvt.Ltd.
Afcons Sibmost Joint Venture
Afcons Vijeta PES Joint Venture
Afcons SMC Joint Venture
Afcons Vijeta Joint Venture
Afcons JAL Joint Venture
Afcons KPTL Joint Venture
Afcons - SPCPL Joint Venture
Afcons Infrastructure Ltd and Vijeta Projects and Infrastructures Ltd Joint Venture
Key Management Personnel
Mr. S. P. Mistry – Chairman
Mr. K. Subramanian – Executive Vice Chairman
Mr. S. Paramasivan – Managing Director
Mr. Giridhar Rajagopalan
Mr. Akhil Kumar Gupta
137
Note No. 34: Related party disclosures (Continued) (` in Crores)
(b) Details of transactions with related party for the period 01.04.2020 to 31.03.2021
Nature of Transaction Holding Fellow Jointly Controlled Key Management Total
CY 20-21 PY 19-20 CY 20-21 PY 19-20 CY 20-21 PY 19-20 CY 20-21 PY 19-20 CY 20-21 PY 19-20
Managerial Remuneration paid
a) Short Term Employee Benefit
K.Subramanian 2.83 3.78 2.83 3.78
S.Paramasivan 2.45 3.33 2.45 3.33
Giridhar Rajagopalan 1.44 2.04 1.44 2.04
Akhil Kumar Gupta 1.37 1.96 1.37 1.96
b) Post Employment Benefits
K.Subramanian 0.64 0.59 0.64 0.59
S.Paramasivan 0.59 0.55 0.59 0.55
c) Other Long Term Benefits
K.Subramanian 0.43 0.36 0.43 0.36
S.Paramasivan 0.36 0.32 0.36 0.32
Sitting Fees paid
S.P.Mistry 0.07 0.04 0.07 0.04
Dividend on Preference Shares
Floreat Investments Private Limited - - 0.01 0.01 - - - - 0.01 0.01
Shapoorji Pallonji & Co. Pvt. Ltd. 0.01 0.01 - - - - - - 0.01 0.01
Interim Dividend on Equity Shares
Floreat Investments Private Limited - - 4.56 4.56 - - - - 4.56 4.56
Hermes Commerce Private Limited - - - 1.41 - - - - - 1.41
Renaissance Commerce Private Ltd. - - - 1.41 - - - - - 1.41
K.Subramanian - - - - - - 0.02 0.02 0.02 0.02
S.Paramasivan - - - - - - 0.01 0.01 0.01 0.01
Overhead Charges Recovered
Strabag-AG Afcons Joint Venture - - - - - 8.92 - - - 8.92
Interest Income
Afcons Sener LNG Construction Projects Pvt. Ltd. - - - - 0.29 0.25 - - 0.29 0.25
Shapoorji Pallonji Mideast LLC - - - 0.01 - - - - - 0.01
S P Engineering Service Pte Ltd - - 0.65 1.19 - - - - 0.65 1.19
S P International - - - 0.08 - - - - - 0.08
SP International FZC - - - 0.02 - - - - - 0.02
Income from Services charges
Strabag-AG Afcons Joint Venture - - - - 3.53 5.28 - - 3.53 5.28
Afcons - SPCPL Joint Venture - - - - 0.16 0.41 - - 0.16 0.41
Other Income
Transtonnelstroy-Afcons Joint Venture - - - - 0.01 0.02 - - 0.01 0.02
Strabag-AG Afcons Joint Venture - - - - - 0.59 - - - 0.59
Subcontract Income
Shapoorji Pallonji Pandoh Takoli Highway Pvt. Ltd - - 376.94 552.16 - - - - 376.94 552.16
Shapoorji Pallonji Infrastructure Capital Co Pvt Ltd - - 43.78 63.54 - - - - 43.78 63.54
HPCL Shapoorji Energy Pvt. Ltd - - 202.30 14.96 - - - - 202.30 14.96
Shapoorji Pallonji & Co. Pvt. Ltd. - 214.74 - - - - - - - 214.74
138
Income from Equipment Hire
Distribution of Profit / (Loss) from Joint Ventures
Ircon-Afcons Joint Venture - - - - 7.48 - - - 7.48 -
Sale of Spares/Materials/Assets
Afcons - KPTL Joint Venture - - - - - 18.36 - - - 18.36
Advance Given
Ircon-Afcons Joint Venture - - - - 0.02 0.00 - - 0.02 0.00
Afcons - KPTL Joint Venture - - - - 70.00 3.80 - - 70.00 3.80
S.P. Engineering Services Pte. Ltd - - 0.65 1.27 - - - - 0.65 1.27
Shapoorji Pallonji International FZE - - - 8.34 - - - - - 8.34
Advance Received back
Transtonnelstroy-Afcons Joint Venture - - - - (2.10) (3.97) - - (2.10) (3.97)
Afcons Sener LNG Construction Projects Pvt. Ltd. - - - - (0.48) (0.37) - - (0.48) (0.37)
Afcons - KPTL Joint Venture - - - - (48.94) - - - (48.94) -
SP International FZC - - - (1.23) - - - - - (1.23)
S P International - - - (17.84) - - - - - (17.84)
Shapoorji Pallonji International FZC - - - (8.34) - - - - - (8.34)
Shapoorji Pallonji Mideast LLC - - - (18.93) - - - - - (18.93)
Service Charges paid
SP Oil and Gas Malaysia SDN BHD - - 0.32 - - - - - 0.32 -
Housekeeping services paid
Forbes Facility Services Pvt Ltd - - 10.59 10.49 - - - - 10.59 10.49
Legal & Professional Fees
Shapoorji Pallonji & Co. Pvt. Ltd. (Strategic Support 31.27 24.28 - - - - - - 31.27 24.28
Services)
Shapoorji Pallonji & Co. Pvt. Ltd. (Consultancy Services) 1.08 0.04 - - - - - - 1.08 0.04
Subcontract Expenses
Shapoorji Pallonji Qatar WLL - - - 18.94 - - - - - 18.94
Travelling Expenses
Forvol International Service Ltd - - 1.45 14.29 - - - - 1.45 14.29
Purchase of Spares/Materials/Assets
Eureka Forbes Ltd. - - 0.49 0.20 - - - - 0.49 0.20
Guarantees Given for / (Released)
Afcons Gunanusa Joint Venture - - - - 22.48 22.48 - - 22.48 22.48
Strabag-AG Afcons Joint Venture - - - - (1.01) 7.03 - - (1.01) 7.03
Transtonnelstroy-Afcons Joint Venture - - - - (115.81) (20.72) - - (115.81) (20.72)
Afcons SMC Joint Venture, Tanzania - - - - 2.60 (58.31) - - 2.60 (58.31)
Afcons - Vijeta - PES Joint Venture - - - - 68.22 (65.19) - - 68.22 (65.19)
Afcons - Vijeta Joint Venture - - - - (5.50) (3.68) - - (5.50) (3.68)
Afcons – Sibmost – Joint Venture - - - - (132.23) (35.76) - - (132.23) (35.76)
Afcons JAL Joint Venture - - - - (14.71) 1.00 - - (14.71) 1.00
139

Outstanding amount of guarantee given/ (taken)
Afcons Gunanusa Joint Venture - - - - 469.48 447.00 - - 469.48 447.00
Dahej Standby Jetty Project Undertaking (DJPU) - - - - 58.33 58.33 - - 58.33 58.33
Afcons SMC Joint Venture, Tanzania - - - - 41.47 38.87 - - 41.47 38.87
Afcons - Vijeta - PES Joint Venture - - - - 37.30 70.14 - - 37.30 70.14
Afcons - Vijeta Joint Venture - - - - 107.62 12.06 - - 107.62 12.06
Afcons – Sibmost – Joint Venture - - - - 124.20 256.42 - - 124.20 256.42
Afcons - KPTL Joint Venture - - - - 119.48 119.48 - - 119.48 119.48
Afcons JAL Joint Venture - - - - 45.84 53.55 - - 45.84 53.55
Outstanding Amount Loans & Advances Dr/ (Cr)
Ircon-Afcons Joint Venture - - - - - (0.02) - - - (0.02)
Afcons - KPTL Joint Venture - - - - 9.33 (11.74) - - 9.33 (11.74)
S P Engineering Service Pte Ltd - - 32.46 32.88 - - - - 32.46 32.88
Outstanding Amount - Debtors - - -
Afcons - SPCPL Joint Venture - - - - - 0.21 - - - 0.21
SP Oil and Gas Malaysia SDN BHD - - 0.04 0.04 - - - - 0.04 0.04
Outstanding Amount - Creditors
Forvol International Service Ltd - - 0.36 0.58 - - - - 0.36 0.58
Forbes Facility Services Pvt Ltd - - 6.07 3.73 - - - - 6.07 3.73
Shapoorji Pallonji Qatar WLL - - 50.33 52.04 - - - - 50.33 52.04
Eureka Forbes Ltd. - - 0.05 0.03 - - - - 0.05 0.03
SP Oil and Gas Malaysia SDN BHD - - - 0.26 - - - - - 0.26
Forbes Enviro Solutions Ltd - - - 0.02 - - - - - 0.02
Shapoorji Pallonji & Co. Pvt. Ltd. (7.49) 0.49 - - - - - - (7.49) 0.49
Afcons Infrastructure Limited & Vijeta Projects And - - - - 0.01 - - - 0.01 -
Infrastructures Ltd. Joint Venture
140
Note 35: Additional information as required by paragraph 2 of the general instructions for preparation of consolidated financial
statements to schedule III to the Companies Act, 2013
(` in Crores)
Name of the entity % Net Assets, i.e., total Share of profit or loss Share in Other Share in Total
Holding assets minus total Comprehensive Income Comprehensive Income
liabilities
As % of Amount As % of Amount As % of Amount As % of Amount
Consolidated Consolidated Consolidated Consolidated
net assets profit or loss Other total
Comprehensive Comprehensive
Income Income
Parent : Afcons Infrastructure Ltd. 86.84% 2,066.37 121.11% 205.76 22.58% 1.12 118.32% 206.88
Subsidiaries :
Indian:
1) Hazarat & Company Pvt.Ltd. 100% 0.00% 0.02 0.00% - 0.00% - 0.00% -
2) Afcons Corrosion Protection Pvt. 100% 0.07% 1.77 0.04% 0.06 0.00% - 0.03% 0.06
Ltd.
3) Afcons Hydrocarbons 100% 0.06% 1.32 0.01% 0.02 0.00% - 0.01% 0.02
Engineering Private Limited
4) Afcons Oil & Gas Service Pvt. 74% 0.00% - -0.01% (0.01) 0.00% -0.01% (0.01)
Ltd.
Foreign:
1) Afcons Construction Mideast 49% -2.50% (59.52) 6.72% 11.42 60.69% 3.01 8.25% 14.43
LLC
2) Afcons Infrastructures Kuwait 49% 0.57% 13.62 1.18% 2.00 0.60% 0.03 1.16% 2.03
for Building, Road and Marine
Contracting WLL
3) Afcons Gulf International Project 100% 0.20% 4.78 -6.34% (10.77) 0.00% - -6.16% (10.77)
Services FZE
4) Afcons Mauritius Infrastructure 100% 0.48% 11.53 0.55% 0.94 0.00% - 0.54% 0.94
Ltd.
5) Afcons Overseas Singapore Pte 100% 15.56% 370.13 171.28% 290.98 -169.76% (8.42) 161.60% 282.56
Ltd.
6) Afcons Infra Projects 100% -0.02% (0.43) 12.21% 20.75 -1.81% (0.09) 11.82% 20.66
Kazakhstan LLP
7) Afcons Saudi Construction LLC. 100% 0.01% 0.20 -0.01% (0.01) 0.00% - -0.01% (0.01)
8) Afcons Overseas Project Gabon 100% 1.65% 39.35 -5.69% (9.66) 125.81% 6.24 -1.96% (3.42)
SARL
Minority interests in all -0.44% (10.53) 1.72% 2.92 0.00% - 1.67% 2.92
subsidiaries
Joint operations
Indian
1) Afcons Gunanusa Joint Venture 100% -1.44% (34.23) -1.40% (2.38) 0.00% - -1.36% (2.38)
2) Transtonnelstroy Afcons Joint 99% -4.39% (104.56) -48.17% (81.83) 0.00% - -46.80% (81.83)
Venture
3) Dahej Standby Jetty Project 100% 0.05% 1.13 -0.69% (1.18) 0.00% - -0.67% (1.18)
Undertaking
4) Afcons Pauling Joint Venture 100% 0.07% 1.74 0.00% - 0.00% - 0.00% -
5) Strabag AG Afcons Joint 40% 1.71% 40.73 1.62% 2.75 0.00% - 1.57% 2.75
Venture
6) Afcons Sener LNG Construction 49% -0.25% (5.93) -1.50% (2.54) 0.00% - -1.45% (2.54)
Projects Pvt.Ltd.
7) Ircon Afcons Joint Venture 47% 0.03% 0.62 -0.01% (0.01) 35.69% 1.77 1.01% 1.76
8) Afcons Sibmost Joint Venture 100% 0.99% 23.67 2.71% 4.60 0.00% - 2.63% 4.60
9) Afcons Vijeta PES Joint Venture 100% 0.02% 0.43 0.29% 0.49 0.00% - 0.28% 0.49
10) Afcons SMC Joint Venture 100% 0.91% 21.66 6.38% 10.84 27.62% 1.37 6.98% 12.21
11) Afcons Vijeta Joint Venture 100% 0.18% 4.40 -3.80% (6.45) 0.00% - -3.69% (6.45)
12) Afcons JAL Joint Venture 100% 0.09% 2.25 0.21% 0.35 0.00% - 0.20% 0.35
13) Afcons KPTL Joint Venture 100% 0.17% 3.93 1.77% 3.01 0.60% 0.03 1.74% 3.04
11) Afcons Infrastructure Limited
& Vijeta Projects And
Infrastructures Ltd. Joint Venture 100% 0.00% (0.10) 0.00% - -2.02% (0.10) -0.06% (0.10)
Elimination entries -0.62% (14.87) -160.20% (272.16) 0.00% - -155.65% (272.16)
Total 100.00% 2,379.48 100.00% 169.89 100.00% 4.96 100.00% 174.85
Refer note 2(a) for principal activity.
141
Note 36.. Afcons Gunanusa Joint Venture (AGJV)
(a) AGJV had submitted claims for change orders aggregating to ` 751.77 crores to ONGC. The AGJV has invoked arbitration in respect
of the aforesaid change orders, as the same were not approved by the Outside Expert Committee (OEC). Further, claims against change
orders and counter claims by ONGC aggregating to ` 64.00 crores will be discussed in arbitration. Based on the legal opinion obtained and
facts of the matter, the management is confident of its recovery.
Pursuant to discussions between AGJV, Afcons and PT Gunanusa (PTG), the parties decided to settle all claims and counterclaims between
PTG, Afcons and AGJV arising from the Project, subject to the terms of the Settlement Agreement dated 26/07/2018. As per the terms, it
was agreed that the amount payable by PTG to Afcons shall be adjusted against the money due by AGJV to PTG and the necessary book
entries were passed in the books of account of the AGJV to reflect the settlement arrived at between the parties.
As per the terms of the settlement agreement it is further agreed that PTG’s liability towards liquidated damages (LD) under the subcontract
shall be limited to USD 3.6 million equivalent ` 26.35 crores only and the liability shall be imposed on PTG only if AGJV is confirmed to be
liable for liquidated damages in the ONGC Arbitration, where PTG’s share of liability for LD is 20%. Also, in the event AGJV is not successful
in the ONGC Arbitration, Afcons agrees to absorb all the losses in the project without claiming anything against PTG. If AGJV receives an
award from the ONGC Arbitration for amount above USD 35 million equivalent ` 256.19 crores, Afcons agrees to share 20% of the amount
above USD 35 million equivalent ` 256.19 crores to PTG.
(b) AGJV has a total exposure of ` 138.52 Crs in a customer (ONGC) with respect to construction of ICP-R Offshore Process Platform
project. AGJV has invoked an arbitration which is under discussion.
Afcons Infrastructure Limited has given advances aggregating to ` 189.98 Crores which are receivable from AGJV. The recovery of this
amount is dependent upon finalization of the arbitration award.
Note 37. Transtonnelstroy Afcons Joint Venture (TAJV)
(a) The Joint Venture (“the JV”) had submitted variations to the client for two projects arising on account of cost overruns due to unforeseen
geological conditions, delays in handing over of land, change in scope of work etc., which the Management believes is attributable to the
client and the matters are under negotiation with the client / in arbitration / has been referred to Dispute Adjudication Board for determination
and recovery of the amounts. In the earlier years, Joint Venture had received arbitration awards in few of the matters. The Client has further
challenged these arbitration awards before the Hon’ble High Court, Madras. Pending disposal of these matters in the court, client has, upon
submission of the bank guarantee by the Joint Venture, deposited part of the award amount with the Joint Venture, pursuant to an interim
stay order from Hon’ble High Court, Madras.
During the year, Client issued a notice to invoke the Performance Bank Guarantee issued on behalf of the Joint Venture amounting `143.29
Crores vide email dated July 06, 2020 addressed to issuing banks. The guarantees were issued by two banks. JV filed applications before
High Court challenging the invocation and encashment of the said BGs and also sought an injunction restraining Client from invoking the
BG. By order dated July 08, 2020, the learned Single Judge granted an order of status-quo till July 17, 2020. The order of the Court had
been communicated to both the Banks, but so far as one bank is concerned, they have immediately released the amount of ` 25.77 Crores.
As far as the another bank is concerned, in adherence to the order passed by Court, they have restrained themselves from making the
payment to client, in adherence to the order of maintaining Status Quo.
The order for maintaining status quo was reversed on August 14, 2020. Aggrieved, JV filed against the order before Hon’ble High Court,
Madras. The Division Bench, after hearing both sides, issued a common judgement on March 24, 2021 and directed the parties to refer
the dispute before Arbitration Tribunal along with an injunction issued on invocation of Bank Guarantee till the matter is disposed off by the
Arbitration Tribunal. Client filed Special Leave Petition against the aforesaid order before Hon’ble Supreme Court, which was dismissed at
the admission stage itself. Hon’ble Supreme Court declined to interfere with the order passed by Hon’ble High Court, Madras. Accordingly,
both the parties (Client and JV) referred all disputes related to extension of time, associated cost to extended stay, release of withheld
amount and encashment of bank guarantees to a new panel of Arbitrators formed in May 2021. The amount of encashed Bank Guarantee
has been recorded by the JV as Receivable from Client (Note No (6 ii) and Payable to JV Partner (Note No 15-ii).
The arbitration proceeding has reached an advanced stage and after the year end, two awards has been granted in relation to the claim
for ‘Extension of time’. Arbitration Tribunal suggested that cost compensation for extension of time should be calculated based on principle
adopted while issuing earlier Arbitration Awards. Accordingly, compensation claimed for extended stay has been reassessed. Based on
the assessment of the timing and amount of recoverability, carried out by Joint Venture’s Management after considering the current status
of negotiation with the client/in arbitration proceeding/Dispute Adjudication Board proceedings, an amount of ` 186.24 Crores has been
impaired in the Statement of Profit and Loss as Impairment of Contract assets - Amount due from Customers under Construction contracts.
Balance amounts which is supported by legal opinion and technical evaluation recognized towards the variations/claims as at the year-end
are included in Note 7 ‘Amounts due from Customers under Construction contracts’ as Other Current and Non-current assets amounting
to `167.93 Crores and ` 582.53 Crores respectively (Previous Year ` 174.07 Crores and ` ` 757.00 Crores respectively) and have been
considered as good and fully recoverable by the Management and it does not anticipate any further loss to be recognized at this stage.
(b) TAJV has a total exposure of ` 920.66 Crores in Chennai Metro Rail Ltd. Project (CMRL) which includes trade receivables of ` 175.83
Crores and unbilled receivables of ` 744.83 Crores.
TAJV has claimed variations amounting to ` 2,214 Crores on CMRL which are pending at different stages as follows:
- Variations of ` 1,128 Crores on account of extended stay Cost (March 2016 to December 2018).
- Variations of ` 169 Crores with internal Dispute Adjudicating Board (DAB)
- Variations of ` 374 Crores on account of change in site condition/soil strata (unforeseeable Sub-surface condition)
- Variations under arbitration of ` 543 Crores on account of extended stay cost until March 30, 2016.
Afcons Infrastructure Limited has a total receivable of ` 959.91 Crores from TAJV as on March 31, 2021. Afcons Infrastructure Ltd. is not
the party to the arbitration / claims and the recovery of this amount is dependent upon finalization of arbitration award and clearance /
acceptance of claims by CMRL.
142
Note 38.
(a) The Group has been legally advised that outstanding interest free advances aggregating to ` 893.59 crores before elimination (As at
31st March, 2020 ` 1,140,87 crores) made towards financing the unincorporated joint operations do not come under the purview of Section
186 of Companies Act, 2013 as the Group is in the business of constructing and developing infrastructure facilities. The same gets nullified
post elimination, refer note 6.
(b) In view of non-applicability of section 186 of the Companies Act, 2013, the details of particulars required to be made thereunder in the
financial statements are not applicable in relation to loan made, guarantee given or security provided. For investments made refer to Note
no. 4.
Note 39.
(a) The Group had entered into a contract with Jordan Phosphate Mines Construction (JPMC) on April 20, 2010 for the construction of “New
Phosphate Rock Terminal at Aqaba - Jordan” with a contract value of ` 909.13 crores (142.23 Million JOD).
The Group had submitted various claims on account of extra works, release of bank guarantee and delay in completion of the project. The
Group filed the issues for arbitration with the International Chamber of Commerce (ICC) on November 2016.
On October 30, 2019, the ICC rendered an unfavourable award of ` 178.26 crores to the Group and a favourable award of ` 86.75 crores
on account of final bill and variation.
The Management has challenged the award in the French Court on the grounds that the award is against the Jordanian law and that
ICC has failed to acknowledge material evidences presented by the Group. Management is confident about the recovery of the amounts
involved in the matter.
During the year JPMC has invoked a bank guarantee of ` 65.24 Cr against the terms of the International Arbitration Award. We have
initiated legal action against JPMC as well as Arab Bank for this fraudulent and illegal BG encashment.
(b) On the JPMC project as explained above, the supply and execution contract was subcontracted to M/s FL Smidth (FLS). FLS did
not perform their part of their contract and consequently the Group had to undertake that part of work. Hence, the Group invoked bank
guarantee amounting to ` 69.03 crores against the sub-contractor for lack of performance in respect of this project. In addition to this the
Group has a liability amounting to ` 60.66 crores payable to FLS in its books.
The outflow of this liability is contingent upon the finalisation of the arbitration ongoing with JPMC as mentioned in note 39(a) above.
Note 40. Konkan Railway Corporation Limited (KRCL) had issued a contract for construction of Arch Steel Bridge across river Chenab on
24th August, 2004. The DBN (Design Basis Note) submitted by KRCL during the tender stage was revised in 2005 and subsequently in 2006
and 2010. The project got delayed due to various reasons such as changes in design parameters, wind load during service condition, arch
span, finalization of slope stabilization etc.
Due to the above, the Group has raised two arbitration claims amounting to ` 1,625.85 Crores which are towards additional expenses on
account of extended stay, categorization of excavation works, compensation due to loss of productivity, expenses incurred due to change
in alignment, pend period cost etc. These variation costs have already been charged off to profit and loss account in past. In the previous
year, the Group had received an unfavourable award for major portion of its claims. The awards are challenged before Bombay High Court.
The total receivables amounting to ` 185.61 crores as at March 31, 2021 (unbilled receivable of ` 181.99 crores and retention of ` 3.62
crores ) includes ` 115 crores on account of increase in steel quantity due to change in design.
Based on the opinion from independent experts and the facts of the case, the management is confident of getting a favorable judgement
and recover all the dues related to this project.
Note 41. Total receivable from ‘Afcons Construction Mideast LLC’ (ACML) as at March 31, 2021 is ` 97.11 crores which includes ` 51.96
crores towards advances given. ACML is executing various projects including “Al-Awir Road” and “Entrances to the Jewel of the Creek” for
Road and Transport Authority, Dubai (customer). ACML has substantially completed “Al-Awir Road” project and has completed more than
98% of “Entrances to the Jewel of the Creek”.
ACML has raised a substantial claim with the customer for one of the projects and the management is confident of recovery of the same.
The Management of Afcons Infrastructure Limited has plans in place for the recovery of the loans in coming years and is confident of
recovering the entire receivable from ACML.
Note 42. The Group had executed project awarded by the Board of Trustees of the port of Mumbai (MbPT) for Modernization of the existing
Marine Oil Terminal and berths/jetties J1, J2 and J3 at the Multi-cargo Marine Oil Terminal of Jawahar Dweep based in Mumbai Harbor.
The project had completed in June 2003.
The Group had gone into arbitration with MbPT for compensation for extended stay related to projects and was successful in getting an
award of ` 96.02 Crores including interest till the date of award, in its favour on November 2011. However, the Award was challenged by
MbPT u/s 34 of Arbitration and Conciliation Act, 1996 to the Single Bench of Bombay High Court. The Single Bench had set aside the
award and passed the order in favor of MbPT. The Group filed an appeal with the High Court of Mumbai for a two bench Judge as against
order of Single Bench. The appeal was admitted by the High Court for a hearing by a two bench Judge in the month of April 2018. Based
on management’s assessment, legal opinion obtained and facts of the matter, the Group is confident of winning the case and recovering
the entire amount from MbPT in future.
Note 43. The Group had executed project awarded by Uttar Pradesh Expressways Industrial Development Authority for Construction of
Six-lane green field Kannauj to Unnao Expressway (package IV). During the execution of the project the client issued various change
orders which required additional deployment of resources. The expressway was inaugurated and put to use in Dec 2016. The project was
completed 13 months ahead of schedule.
143
Due to the various change orders, the Group has raised various claims amounting to ` 211 Crores which are towards additional expenses
on account of change of scope, additional works, royalty claim etc. Based on the facts of the matter and on going discussions with customer,
the management is confident to recover all the dues related to this project.
Note 44. (a) The Group has unbilled receivables towards various ongoing and completed projects disclosed under Note no. 8 ‘Contract
assets’. This unbilled work also includes variations on account of cost overruns due to unforeseen geological conditions, delays in handling
over land, change in scope of work, etc. which are under discussions at various levels including customer, in arbitration, Dispute Adjudication
Board etc. Based on the discussions and merits of the claims, the management is confident about the recovery of these pending variations
with respect to unbilled receivables disclosed under note no.8 ‘Contract assets’.
(b) The Group has a total net receivable of ` 850.69 crores (including interest on arbitration awards ` 230.63 crores) which is a part of
Trade Receivables shown under Note 5 towards arbitration awards which are won by the Group in past, these arbitration awards have
been further challenged by the customers before the session court or higher courts of law. Pending disposal of these matters in the courts,
management has recognized the amount as per the arbitration award and part payment has been received by management under Niti
Aayog Scheme upon submission of a bank guarantee by the Group. Management is confident about the recovery of the amounts involved
in the pending matters at various levels.
Note 45. The Jointly Controlled Operations have mentioned in their financial statement that as per the terms of agreement parent is
committed to provide additional funds as may be required to meet the working capital requirements of such Jointly Controlled Operations.
The aforementioned has been disclosed by a few subsidiaries as well.
Basis management’s assessment, parent is committed to provide and can adequately source additional funds as may be required to meet
the working capital requirements of these Jointly Controlled Operation / Subsidiary.
Note 46. The Group is currently evaluating the options to integrate Transtonnelstroy Afcons Joint Venture with Afcons. The said integration
will be subject to necessary approvals of shareholders, creditors, clients, bankers and other authorities as may be required.
Note 47.
On accounts of second wave of Covid 19, most of the states have declared lock down but have allowed infrastructure activity to be
continued.
The Management and the Board of Directors have evaluated the impact of the pandemic on its business operations. The Group currently
has a strong order book in excess of ` 30,000 crores (including L1), leading to a clear visibility of revenue over the next 18-24 months.
Collection from customers have been normal during the lockdown period enabling the Group to meet all its liabilities (including employee
payables) in a timely manner and without availing any moratorium as announced by the Reserve Bank of India. The Group has adequate
unutilized fund-based credit facilities available, to take care of any urgent requirement of funds. The Group throughout the lockdown period
and even subsequently has been able to maintain adequate control of its assets and there have been no significant changes to its control
environment during the period.
Based on the above assessment, the Group strongly believes that there is no material impact of Covid 19 on these standalone financial
statements. The Group has also made a detailed assessment of its liquidity position for the next 12 months from the balance sheet date.
Further, there is no material impact foreseen on revenue and operating cash flow of the Group.
Accordingly, the pandemic is not likely to have a significant impact on the future operations, its profitability and recoverability of the carrying
value of its assets, as at March 31, 2021 and on its control environment. The Group will continue to closely monitor material changes to
future economic conditions, if any, as and when they arise.
47.1 Notes pertaining to entities where Note on Covid 19 has been given by the auditors in their respective financial statements:
(a) Afcons Zambia Branch
“We draw attention to Note 23 of the financial statements which indicates the impact of Covid-19. In January 2020, the World
Health Organisation declared COVID -19 to constitute a “Public Health Emergency of International Concern.” Since then, more
cases have been diagnosed, also in other countries. On 11th March 2020, the World Health Organisation (WHO) announced that
the coronavirus outbreak can be characterised as a pandemic and many governments have introduced various measures to
combat the outbreak, including travel restrictions and quarantines. The pandemic has resulted in some businesses closing and
others performing lower than the budget and lockdown of certain areas.
estimated at this time. Our opinion is not modified in respect of this matter.”
(b) Afcons Vijeta PES Joint Venture, Afcons JAL Joint Venture and Afcons Vijeta Joint Venture
above matter.”
(c) Afcons Sibmost Joint Venture Joint Venture, Afcons SMC Joint Venture and Afcons Infrastructure Limited and Vijeta
Projects and Infrastructures Limited Joint Venture
144
(d) Transtonnelstroy Afcons Joint Venture
“The coronavirus (Covid-19) outbreak (including the second wave) has impacted businesses globally in various forms and
magnitude. In India as well, the emergency measures, in form of lock-down, imposed by governments to contain the spread
of Covid-19 have led to disruption of businesses and economic activity. Pursuant to nationwide lockdown, as per the terms
of contract, the Joint venture invoked Force Majeure clause in the ongoing project of Kolkata Metro and suspended /partially
stopped works at all project sites (plants and offices). The Joint Venture, as far as ongoing UG-01 Project is concerned, invoked
the ‘change in law’ clause by linking time to time imposition of various statutory restrictions imposed by the Govt. of India and
Govt. of West Bengal and notified that the performance has been impacted. The Joint Venture has resumed operations in a
phased manner as per directives from the Government of India and State Government. The Employer (KMRCL/GC) considered
the invocation of Force Majeure Clause, (in place of “change in law” as requested by Joint Venture) of Contract and agreed to
relief in the form of extension of time only, without costs. The Joint Venture, in response, made contract clarifications in support
of its claim of invocation of “change in law. Currently the matter is under discussion.”
The Supervisory Board is closely monitoring the impact of coronavirus pandemic on all aspects of its operations, including its
liquidity position, recoverability/carrying values of its trade receivables, inventory, property, plant and equipment, and contract
assets as at balance sheet date. The Supervisory Board has assessed this impact and future uncertainties resulting from
Covid-19 based on the information available till the date of approval of these financial statements, including discussions with
various stakeholders, views from experts and industry participants, forecasts by various agencies and organisations, market
estimates, etc.
The Supervisory Board, based on assumptions and current estimates expects that the ongoing Kolkata metro project to be
executed by December 2021 and also the carrying amount of its assets as reflected in the balance sheet as at March 31, 2021
will be recovered. Since the metro work at Chennai packages are completed there is no significant disruption on account of
Covid-19 in those projects. The actual impact of Covid-19 on the business operations may, however, differ from that assessed by
the Supervisory Board as at the date of approval of these financial statements. Due to the evolving nature of the pandemic and its
response by various government authorities, the Supervisory Board will continue to monitor developments to identify significant
uncertainties in future periods that may have an impact on our operations.”
(e) Dahej Standby Jetty Project Undertaking
“The coronavirus (Covid-19) outbreak (including the second wave) has impacted businesses globally in various forms and
magnitude. In India as well, the emergency measures, in form of lock-down, imposed by central and state governments to
contain the spread of Covid-19 have led to disruption of businesses and economic activity. Since the project executed by the Joint
Venture is completed and only the arbitration hearing for settlement of the claims against the customer is currently in process, the
Supervisory Board do not foresee any significant impact of Covid-19 on the Joint Venture and expects that the carrying amount
of its assets as reflected in the balance sheet as at 31st March 2021 will be recovered. The Supervisory Board will continue to
monitor developments to identify significant uncertainties in future periods that may have impact on Joint Venture.”
(f) Afcons Kuwait Branch
statements.
(g) Afcons Overseas Singapore Pte Ltd.
“The outbreak of the Coronavirus – The Covid -19 epidemic; has significantly impacted business around the world and led to
disruption of business and economic activity.
resumed operations in a phased manner and has been able to continue operations till the year end. Based on written
representations, the Management is closely monitoring the impact of Covid-19 pandemic on all aspects of its operations including
significant accounting judgements and estimates, inter-alia including assets as at balance sheet date, and has evaluated and
assessed the impact and future uncertainties resulting from Covid-19 based on internal and external sources of information
including, discussion and views from experts and industry participants, market estimates, etc. based on the information available
till date of approval of these financial statements.
145
be recovered. However, the impact assessment of Covid-19 is a continuing process given the uncertainties associated with its
the date of approval of these financial statements. The management has confirmed that it will continue to monitor developments
subsidiary.”
(h) Afcons Construction Mideast LLC, Dubai
resumed operations in a phased manner and has been able to continue its operations till the year end. Based on written
representations, the Management is closely monitoring the impact the COVID-19 pandemic on all aspects of its operations
including significant accounting judgements and estimates, inter-alia including its liquidity position, recoverability/carrying values
of its trade receivables and contract assets as at balance sheet date, and has evaluated and assessed the impact and future
uncertainties resulting from Covid-19 based on internal and external sources of information including, discussions and views
from experts and industry participants, market estimates, etc. based on the information available till the date of approval of these
recovered. However, the impact assessment of COVID-19 is a continuing process given the uncertainties associated with its
the date of approval of these financial statements. The Management has confirmed that it will continue to monitor developments
subsidiary.”
47.2 Notes pertaining to entities where Note on Going Concern has been given by the auditors in their respective financial
statements:
(a) Afcons Sener LNG Constructions Projects Pvt. Ltd.
“Material uncertainty related to going concern:
losses since earlier years whereby it’s net worth has been completely eroded. These conditions indicate the existence of a material
uncertainty that may cast significant doubt about the company’s ability to continue as a going concern. However, the financial
statements of the Company have been prepared on a going concern basis for the reasons stated in the said Note.”
(b) Afcons Kuwait Branch
“Kuwait is considered a branch of the company, and its financial statements are consolidated with those of the company. The financial
statements have been prepared on the basis of accounting policies applicable to a going concern, presuming that funds will be
available to finance future operations, and that realization of assets and settlement of liabilities and commitments will occur in the
ordinary course of business.”
(c) Afcons Construction Mideast LLC, Dubai
“Without qualifying our opinion, we draw attention to note 2 to the financial statements relating to the going concern consideration.
The continuance of the Company’s operations is dependent on the introduction of sufficient funds by the shareholders and its future
profitability.”
Note 48. Tropical Cyclonic Storm Tauktae which originated in the Arabian Sea hit the western coast of India in Mid-May, 2021 and impacted
Afcons, which was carrying out revamp of offshore platforms for one of its customer with its consortium partner Halani-Tes-Nauvata.
Cyclone Tauktae caused damaged to project material, loss of life and vessels involved in the revamping of the offshore platforms. Group
has taken adequate insurance cover for damage of material and also insurance policies required to be maintained for its employees and
sub-contractors employees. Besides the statutory compensation eligible to employees from insurance companies, the Group has agreed
to pay additional ex-gratia payment to all employees including sub-contracted employees, which is estimated to cost around ` 18 Crs. For
the chartered vessels the risk liabilities for damages lie with the vessel owner and no liabilities will involve on Afcons or its customer.
Note No 49. Financial instruments
49.1. Capital management
The Group manages its capital to ensure that entities in the Group will be able to continue as going concern while maximising the return to
stakeholders through the optimisation of the debt and equity balance.
The capital structure of the Group consists of net debt (borrowings as detailed in notes 14 ,16 and 20 offset by cash and bank balances as
detailed in notes 10 and 10.1) and total equity of the Group.
The Group is not subject to any externally imposed capital requirements. The Group monitors capital using a gearing ratio, which is net
debt divided by total capital.
The Group sets the amount of capital in proportion to its overall financing structure, i.e. equity and financial liabilities. The Group manages
the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying
assets.
146
49.1.1 Gearing ratio

The gearing ratio at end of the reporting period was as follows. (` in Crores)

st
st
Debt (i) 1,581.45 1,622.01

Cash and bank balances 612.52 522.54
Net debt 968.93 1,099.47
Total equity (ii) 2,379.48 2,229.87
Net debt to equity ratio 0.41 0.49
(i) Debt is defined as long-term and short-term borrowings (excluding derivative, financial guarantee contracts as described in notes 14,
16 and 20 and includes interest accrued but not due on borrowings)
(ii) Equity includes all capital and reserves of the Group that are managed as capital.
49.2. Categories of financial instruments
The following table provides categorisation of all financial instruments at carrying value except non current investments in un-quoted equity
instruments of Subsidiaries and Jointly Controlled Operations, which are carried at cost.
(` in Crores)
Financial assets
Measured at fair value through profit or loss (FVTPL)
(a) Mandatorily measured:
(i) Mutual fund investments - -
(a) Cash and bank balances 612.52 522.54
(b) Bank balance other than (a) above 98.42 116.10
(c) Trade receivables 3,049.40 3,011.59
(d) Loans 50.13 40.58
(e) Other financial assets 388.07 337.21
Measured at FVTOCI
(a) Investments in equity instruments 0.40 0.15
Total financial assets 4,198.94 4,028.17
(a) Borrowings 1,581.45 1,622.01
(b) Trade payables 3,564.22 3,918.33
(c) Other financial liabilities 458.98 318.27
Total financial liabilities 5,604.65 5,858.61
49.3. Financial risk management objectives

The Group’s corporate treasury function provides services to the business, co-ordinates access to domestic and international financial
markets, monitors and manages the financial risks relating to the operations of the Group through internal risk assessment and analysis
forex exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price
risk), credit risk and liquidity risk.
The risk management is governed by the Group’s policy approved by the board of directors, which provide written principles on foreign
exchange risk, interest rate risk, the use of financial derivatives and non-derivative financial instruments. Compliance with policies and
exposure limits is reviewed on a continuous basis. The Group does not enter into or trade financial instruments, including derivative
financial instruments, for speculative purposes.
49.4. Market risk
The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The Group
enters into a variety of derivative financial instruments to manage its exposure to foreign currency risk and interest rate risk. Derivatives
instruments are only used for economic hedging purposes and not as speculative investments. All such transactions are carried out within
the guidelines set by the Board of Directors.
49.5. Foreign currency risk management
The Group operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions in various countries.
Foreign currency risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not
the Group’s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows. The objective
of the hedges is to minimize the volatility of the INR cash flows. Group enters into a board approved list of derivative financial instruments
to manage its exposure to foreign currency and mainly uses a combination of foreign currency option contracts, foreign exchange forward
contracts to hedge its exposure in foreign currency risk.
147
The carrying amounts of the Group’s unhedged foreign currency denominated monetary assets and monetary liabilities at the end of the
reporting period are as follows:

Amount in foreign currency (` in Crores) Amount in foreign currency (` in Crores)
(in Crores) (in Crores)
USD Currency 2.77 203.12 4.06 296.97
EURO Currency 2.32 198.97 0.22 19.15
QAR Currency 13.19 265.34 13.69 275.36
OMR Currency 0.00 0.17 - -
MUR Currency 214.96 387.09 237.05 426.85
UAE Currency 0.16 3.19 5.04 100.53
JOD Currency 0.85 88.41 0.87 89.68
BHD Currency 0.01 2.53 0.00 0.01
KWD Currency 1.10 265.68 1.27 308.95
BDT Currency 432.63 373.75 332.48 287.23
SAR Currency - - 0.04 0.85
GHS Currency 47.17 601.66 19.59 249.90
ZMW Currency 113.62 377.00 - -
MZN Currency 156.53 164.54 191.38 201.17
MRU Currency 161.34 329.61 96.50 197.13
BTN Currency 27.45 27.45 0.52 0.52
TZS Currency 691.16 21.84 117.63 3.72
XAF Currency 271.56 35.57 - -

Amount in foreign currency (` in Crores) Amount in foreign currency (` in Crores)
(in Crores) (in Crores)
USD Currency 3.42 258.95 4.06 307.18
EURO Currency 0.89 74.07 0.17 13.84
QAR Currency 3.90 81.03 4.21 87.46
OMR Currency 0.00 0.09 0.00 0.00
MUR Currency 208.55 403.55 220.65 426.96
UAE Currency 0.15 3.08 4.57 94.16
JOD Currency 0.94 100.75 0.90 95.98
BHD Currency 0.01 2.73 0.00 0.01
KWD Currency 1.67 403.27 2.42 585.62
BDT Currency 29.85 26.64 96.33 85.98
SAR Currency 0.00 0.04 0.04 0.81
GHS Currency 72.35 960.54 40.97 543.94
CHF Currency 0.01 0.43 - -
ZMW Currency 138.73 578.93 - -
MZN Currency 123.66 141.61 113.63 130.12
MRU Currency 111.21 227.72 - -
BTN Currency 49.91 49.91 19.68 19.68
148
49.5.1 Foreign currency sensitivity analysis

The Group is mainly exposed to the currency of USD, EURO,KWD,GHS,ZMW,MUR, MZN and MRU.
The following table details the Group’s sensitivity to a 5% increase and decrease in the Indian Rupee against the relevant foreign currencies.
5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s
assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the exposure outstanding on
receivable and payables in the Group at the end of the reporting period.The sensitivity analysis includes only outstanding foreign currency
denominated monetary items and adjusts their translation at the period end for a 5% change in foreign currency rates. A positive number
below indicates an increase in the profit or equity where the Indian Rupee strengthens 5% against the relevant currency. For a 5%
weakening of the rupee against the relevant currency , there would be a comparable impact on the profit or equity, and the balances below
would be negative. The impact of 5 % is also applicable on outstanding foreign currency loans as on the reporting date.
(` in Crores)
Particulars USD currency impact Euro currency impact KWD currency impact
2020-2021 2019-2020 2020-2021 2019-2020 2020-2021 2019-2020
Increase in exchange rate by 5% 4.69 2.41 (8.99) (3.01) 2.16 9.12
Decrease in exchange rate by 5% (4.69) (2.41) 8.99 3.01 (2.16) (9.12)
Particulars GHS currency impact ZMW currency impact MUR currency impact
2020-2021 2019-2020 2020-2021 2019-2020 2020-2021 2019-2020
Increase in exchange rate by 5% (17.59) (20.83) (18.85) (28.95) 1.99 1.17
Decrease in exchange rate by 5% 17.59 20.83 18.85 28.95 (1.99) (1.17)
Particulars MZN currency impact MRU currency impact

2020-2021 2019-2020 2020-2021 2019-2020
Increase in exchange rate by 5% 1.83 (0.57) (6.62) (11.39)
Decrease in exchange rate by 5% (1.83) 0.57 6.62 11.39
In management’s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end
of the reporting period does not reflect the exposure during the year.
49.5.2 Derivative financial instruments
There are no significant derivative financial instruments outstanding at the end of the reporting period.
49.6. Interest rate risk management
The Group is exposed to interest rate risk because entities in the Group, borrow foreign currency and local currency funds at floating
interest rates. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite, ensuring the most cost-
effective hedging strategies are applied.
The Group’s exposure to interest rate changes at the end of reporting period are as follows: (` in Crores)
Particulars Year ended 31st March, 2021 Year ended 31st March, 2020
Borrowing at Fixed Rate 1,008.63 1,153.16
Borrowing at Floating Rate 572.82 468.85
Total Borrowings 1,581.45 1,622.01
49.6.1. Interest rate sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to interest rates for both derivatives and non-derivative
instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability
outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when
reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible
change in interest rates.
If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Group’s profit for the year ended
March 31, 2021 would decrease/increase by ` 2.86 crores (March 31, 2020: decrease/increase by ` 2.34 crores). This is mainly attributable
to the Group’s exposure to interest rates on its variable rate borrowings.
49.7. Other price risks
The Group is exposed to equity price risks arising from mutual funds and equity investments. Certain of the Group’s equity investments are
held for strategic rather than trading purposes.
Mutual fund investments are susceptible to market price risk, mainly arising from changes in the interest rates or market yields which may
impact the return and value of such investments. However, due to the very short tenure of the underlying portfolio in the liquid schemes,
these do not hold any significant price risks.
149
49.7.1 Equity price sensitivity analysis

The sensitivity analysis below have been determined based on the exposure to equity price risks at the end of the reporting period.
If equity prices had been 5% higher/lower:
i) other comprehensive income for the year ended March 31, 2021 would increase/decrease by ` 0.01 crores (2019-2020: increase/
decrease by ` 0.02 crores) as a result of the changes in fair value of equity investments measured at FVTOCI.
49.8 Credit risk management
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial
loss. Credit risk arises from investment in debt instruments, loans, trade receivables, other receivables, cash and bank balance and
derivative financial instruments.
The Group is exposed to credit risk on its financial assets, which comprise cash and cash equivalents, bank deposits, trade receivables
and loan receivables. The exposure to credit risks arises from the potential failure of counterparties to meet their obligations. The maximum
exposure to credit risk at the reporting date is the carrying amount of the financial instruments.
Trade receivables and loan receivable:
The Group assesses and manages credit risk on an internal credit evaluation system. It is performed by the finance team in conjunction
with the relevant business teams depending on the nature and type of the financial asset being evaluated.
The customer base of the Group is highly comprises of government parties and Holding Company. Further, Group is having certain
short term loan receivables from the Group entities. Collateral is generally not obtained from customers. Other customers are subject to
credit verification procedures including an assessment of their independent credit rating, financial position, past experience and industry
reputation.
(A) To measure the expected credit losses on (a) trade receivables from government parties, and (b) trade receivables and loan receivables
from Group Companies, they have been considered to enjoy the low credit risk as they meet the following criteria:
i) they have a low risk of default,
ii) the counterparty is considered, in the short term, to have a strong capacity to meet its obligations in the near term, and
iii) the Group expects, in the longer term, that adverse changes in economic and business conditions might, but will not necessarily,
reduce the ability of the borrower to fulfil its obligations.
(B) Cash and cash equivalents, bank deposits are held with only high rated banks/financial institutions, credit risk on them is therefore
insignificant.
(C) For other trade receivables (including contract assets), the Group uses “General Model” for the measurement of expected credit loss
(ECL) for trade receivables as well as contract asset.
The measurement of ECL under general model depends on whether credit risk has increased significantly since initial recognition.
These credit risk is regularly monitored based on historic turnover activity and credit performance of every customer. In addition,
overdue receivable balances are monitored and actioned on a regular basis. When the credit risk has not increased significantly after
initial recognition, a provision shall be made for the 12 month expected loss, otherwise shall be made for the entire lifetime.
The Group considers the probability of default upon initial recognition of asset and whether there is a significant increase in credit
risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk, the Group
compares the risk of default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition.
It considers available reasonable and supportive forward-looking information which considers multiple factors such as:
- internal credit rating
- external credit rating (as far as available)
- actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a
significant change to the borrower’s ability to meet its obligations
- actual or expected significant changes in the operating results of the borrower
- significant increase in credit risk on other financial instruments of the same borrower
- significant changes in the value of the collateral supporting the obligation or in the quality of third-party guarantees or credit
enhancements
- significant changes in the expected performance and behaviour of the borrower, including changes in the payment status of
borrowers in the Group and changes in the operating results of the borrower.
Macro-economic information (such as regulatory changes, market interest rate or growth rates) is incorporated as part of the internal rating
model. In general, it is presumed that credit risk has significantly increased since initial recognition if the payments are more than 30 days
past due. A default on a financial asset is when the counterparty fails to make contractual payments within 120 days of when they fall due.
This definition of default is determined by considering the business environment in which entity operates and other macro-economic factors.
Refer note 5 and note 8 for reconciliation of expected credit loss balance on financial assets.
49.9 Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the management, which has established an appropriate liquidity risk
management framework for the management of the Group’s short-term, medium-term, and long-term funding and liquidity management
requirements. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by
continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
150
49.9.1 Liquidity risk table

The following table details the Group’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment
periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which
the Group can be required to pay. The tables include principal cash flows along with interest. To the extent that interest flows are floating
rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period. The contractual maturity is based on
the earliest date on which the Group may be required to pay.
(` in Crores)
Particulars Weighted average effective Upto 1 year 1-5 years 5+years Total
interest rate (%)
31st March, 2021
Borrowings 8.26% 1,169.00 533.90 17.07 1,719.97
Trade payables 3,111.96 452.26 - 3,564.22
4,484.21 1,234.75 17.07 5,736.03
31st March, 2020
Borrowings 8.48% 1,102.89 619.90 48.91 1,771.70
Trade payables 3,361.21 557.12 - 3,918.33
4,647.03 1,306.48 48.91 6,002.42
The Group is exposed to credit risk in relation to guarantees given. The Group’s maximum exposure in this respect is the maximum amount
the Group could have to pay if the guarantee is called on. Based on expectations at the end of the reporting period, the Group considers that
it is more likely that such an amount will not be payable under the arrangement. However, this estimate is subject to change depending on
the probability of the counterparty claiming under the guarantee which is a function of the likelihood that the beneficiary under the guarantee
may default.
49.10 Fair value measurements
This note provides information about how the Group determines fair values of various financial assets and financial liabilities.
49.10.1 Fair value of the Group’s financial assets and financial liabilities that are measured at fair value on a recurring basis
Some of the Group’s financial assets and financial liabilities are measured at fair value at the end of each reporting period. The following
table gives information about how the fair values of these financial assets and financial liabilities are determined (in particular, the valuation
technique(s) and inputs used).
Financial assets / financial Fair value Fair value Valuation technique(s) and key
liabilities hierarchy input(s)
Investments in equity 0.40 0.15 Level 1 The investment in quoted instruments
instruments at FVTOCI are measured at fair value based on
(quoted) (see note 1) quoted prices in active market.
Note 1: These investments in equity instruments are not held for trading. Instead, they are held for medium or long-term strategic purpose.
Upon the application of Ind AS 109, the Group has chosen to designate these investments in equity instruments as at FVTOCI as the
directors believe that this provides a more meaningful presentation for medium or long-term strategic investments, than reflecting changes
in fair value immediately in profit or loss.
49.10.2 Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are
required)
The carrying amounts of the following financial assets and financial liabilities (other than long term borrowings) are a reasonable
approximation of their fair values. Accordingly, the fair values of such financial assets and financial liabilities have not been disclosed
separately.
a) Financial assets
Cash and bank balances
Bank balance other than above
Trade receivables
Loans
Other financial assets
b) Financial liabilities
Short term borrowings
Trade payables
Other financial liabilities
Lease Liabilities
151
The carrying amount and fair value of long term borrowings, which are measured at amortised cost is disclosed in table below :
(` in Crores)
Particulars As at As at As at As at
31st March, 2021 31st March, 2018 31st March, 2020 31st March, 2018
Carrying amount Fair value Carrying amount Fair value
Financial liabilities held at amortised cost: 747.82 750.74 668.85 676.99
- Borrowings 747.82 750.74 668.85 676.99
Note No 50. Disclosure pursuant to Ind AS 115 “Revenue from Contracts with Customers”.
(i) Disaggregation of revenue from contracts with customers into geographical areas for the year ended March 31, 2021
recognised in the statement of profit & loss:
(` in Crores)
st
st
Segment revenue
India 6,001.69 6,121.19
Outside India 3,373.88 3,813.00
Revenue from external customers 9,375.57 9,934.19
Timing of revenue recognition
At a point in time 104.25 67.81
Over time 9,271.32 9,866.38
9,375.57 9,934.19
(ii) Unsatisfied performance obligations:

The aggregate amount of transaction price allocated to performance obligation that are unsatisfied as at the end of reporting period
is ` 28,634.28 Crores (Previous year ` 28,433.43 Crores). Management expects that about 30% of the transaction price allocated to
unsatisfied contracts as of 31st March, 2021 will be recognized as revenue during next reporting period depending upon the progress
of each contracts. The remaining amount is expected to be recognised in subsequent years.
(iii) Reconciliation of contract price with revenue recognised during the year: (` in Crores)
Particulars Amount
Revenue as per contract price 9,575.81
Adjustments for:
Payments on behalf of customer (200.24)
Revenue from Operations 9,375.57
(iv) Significant changes to Contract Asset and Contract Liability from April 1, 2020 to March 31, 2021 (` in Crores)
Particulars Contract Assets Contract Liabilities
April 1, 2020 4,873.70 4,617.45
Changes in Contract Asset / Liabilities (925.30) (518.55)
March 31, 2021 3,948.40 4,098.90
* The contract assets and liabilities undergo a change periodically, due to changes in the contractual estimates for the projects on
account of any change in scope of work, unprecedented delays, etc. During the year, the Group has additionally recognised a loss
allowance for contract assets in accordance with Ind AS 109. The Group has also estimated additional costs to be incurred on various
projects due to Covid-19 pandemic.
(v) For movement in Expected Credit Loss of Trade Receivables and Contract Assets, refer Note 8.1 of the financial statement.
- For Trade Receivables refer Note 5 of the financial statement.
- For Contract liabilities of the Consolidated refer Note 17 of the financial statement.
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(vi) Contracts assets and liabilities balance (` in Crores)

Contracts in progress at the end of the reporting period:
Construction cost incurred plus recognised profits less recognised
loss to date 33,042.00 25,276.69
Less : Progress billings 30,607.19 21,526.64
2,434.81 3,750.05
Recognised and included in the consolidated financial
statements as amounts due :
- from customers under construction contracts 3,948.40 4,873.70
- to customers under construction contracts (1,513.59) (1,123.65)
2,434.81 3,750.05
(vii) The Group recognised revenue amounting to ` 933.64 crores in the current reporting year (Previous year ` 604.53 crores) that was
included in the contract liability as of April 01, 2020
Note 51 - Disclosure pursuant to Ind AS 116 “Leases”.
The Group leases land and buildings. Rental contracts are typically made for fixed periods of 12 months to 6 years, but may have extension
options as described in (ii) below.
(i) Amounts recognised in the balance sheet
Right-to-use assets (` in Crores)
Particulars Note As at 31st March, 2021 As at 31st March, 2020

Land 3.C 15.38 12.61
Building 3.C 10.84 30.86
Lease Liabilities (` in Crores)

Particulars Note As at 31st March, 2021 As at 31st March, 2020
Current - 14.53 29.23
Non-current - 13.12 16.47
(ii) Amounts recognised in the statement of profit and loss (` in Crores)

Particulars Note Year ended 31st March, 2021 Year ended 31st March, 2020
Expense relating to short-term leases 28 364.46 368.45
(included in other expenses)
Expense relating to leases of low-value assets that are 28 0.16 0.30
not shown above as short-term leases
(included in other expenses)
Expense relating to variable lease payments not 28 - -
included in lease liabilities
Interest on lease liability 26 3.18 4.54
Depreciation during the year 27 30.73 29.25
Total 398.53 402.54
** Rent expense relating to short term leases of identified assets and variable lease payments under Ind AS 116 included in Note 24.1
and Note 28 as mentioned above stands to ` 364.46 Cr. However, the total of rent and hire charges included in Note 24.1 and Note
28 stands at ` 493.77 Cr, the differential of ` 129.31 Cr is on account of hire charges of the assets which are unidentified assets under
Ind AS 116.
(iii) Maturities of lease liabilities as at March 31, 2021 (` in Crores)
Particulars Upto 1 year 1-5 years 5 and More years Total

Lease liabilities 15.01 16.10 0.28 31.39
15.01 16.10 0.28 31.39
(iv) Total cash outflow for leases for the year ended 31st March 2021 was ` 31.54 cr.
(v) Extension and termination options
Extension and termination options are included in a number of Land, Office Premises, Houses and Godowns leases across the Group.
These are used to maximise operational flexibility in terms of managing the assets used in the Group’s operation. The majority of
extension and termination options held are exercisable only by the Group and not by the respective lessor.
153
(vi) Practical expedients applied :
In applying Ind AS 116 for the first time, the Group has used the following practical expedients permitted by the standard:
- applying a single discount rate to a portfolio of leases with reasonably similar characteristics
- accounting for operating leases with a remaining lease term of less than 12 months as at 1st April, 2020 as short-term leases
- using hindsight in determining the lease term where the contract contains option to extend or terminate the lease
- excluding initial direct costs for the measurement of the right-of-use asset at the date of initial application.
(vii) Lessor accounting
The Group did not need to make any adjustments to the accounting for assets held as lessor under operating leases as a result of the
adoption of Ind AS 116.
Note 52.
The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the Group towards
Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on
November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Group will
assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the
period in which, the Code becomes effective and the related rules to determine the financial impact are published.
Note 53 - Interest in other entities
Details of aggregrate amount of individually immaterial subsidiaries having non-controlling interest. (` in Crores)
Name of Subsidiary Principal Place of Proportion of Profit/(Loss) allocated Accumulated non- Dividends paid to NCI
Activities Incorporation ownership interests to non-controlling controlling interests
and Principal and voting rights held interest
place of by non-controlling
business interests
As at As at As at As at As at As at As at As at
31.03.2021 31.03.2020 31.03.2021 31.03.2020 31.03.2021 31.03.2020 31.03.2021 31.03.2020
Afcons Infrastructures Infrastructure Kuwait 3% 3% 0.06 0.07 1.52 1.46 - -
Kuwait for Building, Road
and Marine Contracting
WLL
Afcons Construction Infrastructure U.A.E 20% 20% 2.86 2.03 (12.05) (14.91) - -
Mideast LLC
Total 2.92 2.10 (10.53) (13.45) - -
Note 54.
The financial statement was approved and adopted by the board of directors during the Board Meeting held on 30th June, 2021.

154
Form AOC - 1
(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of the Companies (Accounts) Rules, 2014)
Statement containing salient features of the financial statement of the subsidiary / associate companies/ and the joint venture.
Part “A “Subsidiaries (` in Crores)
Sr. Name of the Company Country of Reporting Reporting % of Rate of Share Reserves Total Total Details of Investments (except in case Turnover Profit/ Provision Profit/ Proposed
No Incorporation Currency Period Share Exchange Capital and of investment in subsidiaries) (Incl. Other (Loss) for Current (Loss) Dividend
Surplus Assets Liabilities Shares Mutual Total of Income) before & Deferred after
Funds Investment Tax Tax Tax
1 Hazarat & Company Private Limited India INR 1st April 2020 100% - 0.20 (0.18) 0.03 0.03 - - - 0.02 - - - -
31st March 2021
2 Afcons Corrosion Protection Private Limited India INR 1st April 2020 100% - 0.08 1.69 1.88 1.88 - - - 0.11 0.02 0.04 0.06 -
31st March 2021
3 Afcons Hydrocarbons Engineering Private Limited India INR 1st April 2020 100% - 0.10 1.23 1.38 1.38 - - - 0.04 0.03 (0.01) 0.02 -
31st March 2021
4 Afcons Oil & Gas Services Private Limited India INR 1st April 2020 74% - 0.01 (0.01) 0.01 0.01 - - - - (0.01) - (0.01) -
31st March 2021
5 Afcons Construction Mideast LLC Dubai, UAE AED 1st Jan 2020 49% 19.8722 0.60 (91.36) 310.74 310.74 - - - 147.71 0.13 - 0.13 -
31st Dec 2020
6 Afcons Gulf International Projects Services FZE Fujairah AED 1st Jan 2020 100% 19.8722 1.99 12.79 14.78 14.78 - - - 0.00 (0.29) - (0.29) -
(100 % subsidiary of AMIL) 31st Dec 2020
7 Afcons Infrastructures Kuwait for Building, Roads and Kuwait KWD 1st Jan 2020 49% 239.1435 2.87 12.08 15.04 15.04 - - - 3.41 2.12 - 2.12 -
155
Marine Contracting WLL
31st Dec 2020
8 Afcons Mauritius Infrastructure Limited Mauritius EURO 1st April 2020 100% 85.8420 9.44 2.16 11.68 11.68 - - - 0.85 0.71 (0.03) 0.68 -
31st March 2021
9 Afcons Overseas Singapore Pte Limited Singapore SGD 1st April 2020 100% 54.4422 0.27 369.86 597.66 597.66 - - - 565.41 290.98 - 290.98 -
31st March 2021
10 Afcons Infra Projects Kazakhstan LLP Kazakhstan KZT 1st April 2020 100% 0.1720 0.01 (0.41) 0.48 0.48 - - - 21.20 20.75 - 20.75 -
(Step down subsidiary) 31st March 2021
11 Afcons Saudi Construction LLC Saudi Arabia SAR 1st April 2020 100% 19.5193 0.98 (0.78) 1.05 1.05 - - - - (0.01) - (0.01) -
31st March 2021
12 Afcons Overseas Project Gabon SARL Gabon XAF 1st Jan 2020 100% 0.1361 0.01 163.85 177.61 177.61 - - - 9.32 (8.50) 0.00 (8.50) -
(Step down subsidiary) 31st Dec 2020
Notes:
1) Names of subsidiaries which are yet to commence operations - Afcons Oil & Gas Services Private Limited
2) Indian rupee equivalent of the figures given in foreign currencies in the accounts of the subsidiary companies, are based on the exchange rates as on 31st December 2020 / 31st March 2021.
3) The above statement does not include 28 controlled trust as the same is not as subsidiaries /associates/ joint venture company under Companies Act 2013.
Part “B” Joint Operations
Sr. Name of Associates / Joint Operations Afcons Strabag Ircon Afcons Afcons Transtonnel- Dahej Afcons Afcons Afcons Afcons Afcons Afcons Afcons
No. KPTL Afcons Afcons Joint Sener LNG Gunanusa stroy Afcons Standby Sibmost Pauling Vijeta SMC Joint Vijeta Joint JAL Joint Infrastructure Ltd
Joint Joint Venture Construction Joint Venture Joint Venture Jetty Project Joint Joint PES Joint venture venture venture and Vijeta Projects
venture venture Projects Pvt. Undertaking Venture Venture venture and Infrastructures
Ltd. Ltd Joint venture
Unincorpo- Unincorpo- Unincorpo- Incorporated JO Unincorpo- Unincorporated Unincorporated Unincorpo- Partnership Unincorpo- Unincorpo- Unincorpo- Unincorpo- Unincorporated JO
rated JO rated JO rated JO (Refer Note 3) rated JO JO JO rated JO Firm rated JO rated JO rated JO rated JO
(Refer
Note 3)
1 Latest audited Balance Sheet Date 31st March 31st March 31st March 31st March 2021 31st March 31st March 31st March 31st March 31st March 31st March 31st March 31st March 31st March 31st March 2021
2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021
2 Shares of Associate / Joint operations
held by the company on the year end
No. - - - 4,900 - - - - - - - - - -
Amount of Investment in Joint operations - - - 49,000 - - - - 1,74,00,000 - - - - -
Extend of Holding % 51% 40% 47% 49% 100% 99% 100% 100% 95% 100% 100% 100% 100% 100%
3 Description of how there is significant N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
influence
4 Reason why the associate/Joint operation N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
is not consolidated
5 Networth attributable to Shareholding as 3.93 40.73 0.62 (5.93) (34.23) (104.56) 1.13 23.67 1.74 0.43 21.66 4.40 2.25 (0.10)
156
per latest audited Balance Sheet (` in Crs)
6 Profit / Loss for the year (` in Crs)
i. Considered in Consolidation 3.01 2.75 (0.01) (2.54) (2.38) (81.83) (1.18) 4.60 - 0.49 10.84 (6.45) 0.35 -
i. Not considered in Consolidation - - - - - - - - - - - - - -
Notes:
1) Names of joint operations which are yet to commence operations - Afcons Sener LNG Construction Projects Pvt.Ltd.
2) Names of joint operations which have been liquidated or sold during the year - Nil
3) These entities are accounted in the Standalone/Consolidated Financial Statements in terms IND AS-110 & IND AS-111, however the same are not considered as subsidiaries /associates/ joint
venture company under Companies Act 2013.
Atal Tunnel Rohtang, Himachal Pradesh
World’s longest motorable tunnel
3000m (10,000 feet) above sea level
Atal Tunnel, Rohtang, was adjudged Afcons was named Dream Second Fastest Growing Mahatma Gandhi Setu won the
Outstanding Project in Challenging Employer of the Year and Construction Company in award for Excellence in Innovation
Conditions at the National Highway Dream Companies to Work the Large Category at the at the National Highway Excellence
Excellence Awards, instituted by (Oil & Gas sector) at the Construction World Global Awards, instituted by the Ministry of
the Ministry of Road Transport and World HRD Congress Awards Awards 2020 Road Transport and
Highways (MoRTH) (presented by Times Ascent) Highways (MoRTH)
A Shapoorji Pallonji Group Company
“Afcons House”
16, Shah Industrial Estate, Veera Desai Road,
Azad Nagar P. O., Andheri (West), Mumbai - 400 053
Tel: 67191000 • Fax: 26730047 • Website: www.afcons.com
CIN: U45200MH1976PLC019335
+91 22

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AFCONS INFRASTRUCTURE LIMITED

all its stakeholders” •Mahatma Gandhi Setu

BOARD OF DIRECTORS BANKERS

REGISTRARS & SHARE TRANSFER AGENT

REGISTERED OFFICE Boards’ Report 2

Financial Information of Subsidiary 155

Particulars Consolidated Standalone

Current year Previous year

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

Total Amount Amount Unspent (` in crore)

#Rounded off ` 1,34,53,000

Sr. No. Particular Amount

INDIAN ECONOMY: OVERVIEW

Name of the Director Category Position No. of Meetings

Name of the Director Category Position No. of Meetings

Name of Director Basic Salary PF/SA Perquisites Total Remuneration

Name of the Director Stock options granted till date

Name of the Director Category Position No. of Meetings

Name of the Director Category Position No. of Meetings

VIII. COMMITTEE OF DIRECTORS

Name of the Director Category Position No. of Meetings

For Financial Year ended Location Date of AGM Time

Sr. No. Category No. of Shares % of total

Number of Shares Shareholders Shares

Sarah George Suresh K. Joshi

Place: Mumbai Place: Mumbai

Sarah George Suresh K. Joshi

Place: Mumbai Place: Mumbai

Standalone Balance Sheet as at 31st March, 2021 (` in Crores)

SARAH GEORGE SURESH K. JOSHI ASHOK G.DARAK GAURANG M. PAREKH

SARAH GEORGE SURESH K. JOSHI ASHOK G.DARAK GAURANG M. PAREKH

Place: Mumbai Place: Mumbai Place: Mumbai

b) Instruments entirely equity in nature

c) Other Equity (` in Crores)

SARAH GEORGE SURESH K. JOSHI ASHOK G.DARAK GAURANG M. PAREKH

Cash and cash equivalents 363.61 293.59

Particulars Other assets Liabilities from financing activities Total

SARAH GEORGE SURESH K. JOSHI ASHOK G.DARAK GAURANG M. PAREKH

e) Impairment of trade receivables and contract assets

C. Right-of-use assets (` in Crores)

Aggregate amount of quoted investments 0.30 0.30

Category-wise other investments - as per Ind-AS 109 classification: (` in Crores)

Current Non Current Current Non Current

Note No 6. Loans and advances (` in Crores)

Current Non Current Current Non Current

Particulars As at 31st March, 2021 As at 31st March, 2020

Note No 8.2 Other non-current and current assets (` in Crores)

Current Non Current Current Non Current

Note No 9. Inventories - at lower of cost or net realisable value (` in Crores)

Note No 10. Cash and cash equivalents (` in Crores)

Note No 11. Non-current tax assets (Net) (` in Crores)

Note No 12 (A). Equity share capital

12.1. Rights, preferences and restrictions attached to equity shares:

Note No 13. Other Equity (` in Crores)

Movement in other equity (Continued) (` in Crores)

14.1 Details of debentures (` in Crores)

As at 31st March, 2021

Note No 15. Trade payables (` in Crores)

Note No 16.1 (` in Crores)

Standalone Balance Sheet as at 31st March, 2021 (` in Crores)

Consolidated Balance Sheet as at 31st March, 2021 (` in Crores)