RPP Infra Projects Ltd Management Discussions

INDIAN ECONOMY

Indias economy remained resilient in FY 2025-26 despite global geopolitical tensions and trade uncertainties. Real GDP growth is estimated at 7.4-7.6%, supported by strong domestic demand and sustained public capital expenditure, while private investment improved gradually amid external uncertainties.

The RBI maintained an accommodative monetary stance, reducing the repo rate from 6.25% to 5.25% to support growth while preserving price stability. Adequate liquidity, healthy banking sector balance sheets, and steady credit growth continued to underpin economic activity.

Indias external sector faced pressure from subdued merchandise exports, elevated imports, and tariff-related disruptions. However, robust services exports and strong remittances helped contain the current account deficit to around 1.0-1.5% of GDP.

The geopolitical tensions involving the United States-Israel and Iran have increased uncertainty in global energy and commodity markets, resulting in heightened volatility in fuel prices, freight costs, and the availability of certain construction inputs. These developments may lead to higher project execution costs, supply chain disruptions, and scheduling challenges for infrastructure projects, particularly those with significant dependence on imported equipment or energy-intensive materials. However, Indias diversified sourcing strategy, continued emphasis on domestic manufacturing under the Make in India initiative, and sustained public investment in infrastructure are expected to support sector resilience. Continued focus on strengthening logistics, enhancing supply chain diversification, and accelerating investments in energy security and domestic industrial capacity is expected to mitigate the impact of external geopolitical disruptions while supporting long-term infrastructure development.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian construction sector remains one of the largest contributors to the countrys Gross Value Added (GVA) and serves as a key indicator of the broader capital expenditure cycle, accounting for approximately 8% of national GVA.

According to ICRAs sector update released in March 2026, the construction sector experienced a relatively subdued performance in FY2025-26, with operating income growth of approximately 2-4%, primarily due to lower road project awards by the Ministry of Road Transport and Highways (MoRTH) and the National Highways Authority of India (NHAI), along with slower execution under the Jal Jeevan Mission. However, the agency expects operating income growth to recover to 6-8% in FY2026-

27, supported by the extension of the Jal Jeevan Mission through December 2028 and healthy industry-wide order books.

ICRA further notes that diversified Engineering, Procurement and Construction (EPC) companies with exposure to urban infrastructure, irrigation, mining and power are better positioned than road-focused contractors. Such diversified players are expected to deliver operating income growth of approximately 8-10% in FY2026-27, while road-centric contractors are likely to continue facing challenges arising from intense competition and relatively weak order inflows. Sector operating margins are expected to remain broadly stable at approximately 10.3-10.8% in FY2025-26 and 10.1-10.6% in FY2026-27.

The Companys order book is predominantly supported by projects awarded by the Central Government, State Governments and government agencies, thereby mitigating counterparty credit risk and enhancing revenue visibility. Its broad sectoral presence enables management to strategically allocate resources towards projects offering the most attractive demand outlook, execution profile and working-capital characteristics throughout the capital expenditure cycle, thereby supporting sustainable growth and financial resilience.

Key Infrastructure Milestone in India

1. Expansion of Indias Expressway Network: Construction and commissioning of key sections of the Delhi-Mumbai Expressway and other Bharatmala corridors continued, strengthening high-speed road connectivity, reducing travel time and improving logistics efficiency.

2. Development of Dwarka Expressway and Urban Extension Road-II: Major sections of the Dwarka Expressway and Urban Extension Road-II in Delhi were inaugurated during FY 2025-26, supporting decongestion of the National Capital Region, improving connectivity and facilitating smoother movement of people and goods.

3. Accelerated National Highway Development: NHAI constructed 5,313 km of National Highways during FY 2025-26, exceeding its annual target of 4,640 km, reflecting continued government focus on strengthening Indias road connectivity and transport infrastructure.

4. Strengthening Rural Road and Bridge Connectivity:

Under various verticals of PMGSY, 2,905 roads covering 15,647.78 km and 1,042 bridges were completed during FY 2025-26, improving all-weather connectivity to rural and economically important areas.

5. Expansion of Jal Jeevan Mission: Continued

implementation of the Jal Jeevan Mission expanded rural

household tap-water connectivity, strengthening drinking- water infrastructure and supporting the Governments objective of providing reliable and sustainable piped water supply to rural households.

Government Schemes and Policy Support Driving the EPC Sector

The Government of India continues to prioritise infrastructure development through large-scale investments and policy initiatives, creating significant opportunities for Engineering, Procurement and Construction (EPC) companies across transportation, water, urban infrastructure, and industrial sectors.

• National Infrastructure Pipeline (NIP): Provides a longterm roadmap for infrastructure investments across key sectors, supporting sustained project opportunities for EPC players.

• PM Gati Shakti National Master Plan: Enables integrated planning and execution of multimodal infrastructure projects, improving project coordination, reducing execution bottlenecks and enhancing infrastructure development efficiency.

• Bharatmala Pariyojana: Continues to drive investments in highways, expressways, economic corridors, bypasses and related road infrastructure, providing opportunities for EPC companies in the transportation sector.

• Jal Jeevan Mission: The continued focus on rural water supply infrastructure, including water treatment plants, pipelines and distribution networks, is expected to support demand for EPC companies operating in the water segment.

• Urban Infrastructure Development: Programmes such as AMRUT 2.0 and Smart Cities Mission continue to support investments in water supply, sewage management, urban mobility and other municipal infrastructure.

• National Logistics Policy and Multimodal Connectivity:

Focus on logistics efficiency through freight corridors, logistics parks and multimodal infrastructure is expected to drive demand for integrated infrastructure development.

These initiatives, coupled with sustained public capital expenditure, provide a strong growth platform for EPC companies with diversified execution capabilities and expertise across multiple infrastructure segments.

OPPORTUNITIES

Urbanisation and Demand for Urban Infrastructure

Indias rapid urbanisation is emerging as a key structural driver of infrastructure growth. With the urban population expected to increase significantly over the coming decades, demand

for transport networks, housing, water supply, sanitation, utilities and digital infrastructure is expected to remain strong. Expansion of metro networks, multimodal connectivity, urban redevelopment and affordable housing initiatives are creating long-term opportunities for infrastructure and EPC companies.

Infrastructure Growth Beyond Metropolitan Cities

Infrastructure development is increasingly expanding beyond major urban centres, with Tier-2 and Tier-3 cities emerging as important growth hubs. Rising industrial activity, regional connectivity requirements and government-led urban development programmes are driving demand for urban mobility, water infrastructure, sanitation, housing and logistics facilities. Initiatives such as AMRUT, Smart Cities Mission and Jal Jeevan Mission continue to support infrastructure creation across emerging cities.

Increasing Role of Public-Private Partnerships (PPP)

The Governments focus on infrastructure investment and private sector participation is expected to accelerate the adoption of PPP models across various sectors. While developer-led models may reshape the traditional EPC opportunity landscape, they also create opportunities for EPC companies through strategic partnerships, specialised execution capabilities and participation in complex infrastructure projects. Companies with strong technical expertise, execution capabilities and disciplined bidding practices are well positioned to benefit from this evolving ecosystem.

SEGMENT WISE / PRODUCT WISE PERFORMANCE

Your Company has maintained its focus on the following three business segments:

(i) Buildings:

(ii) Water Management;

(iii) Infrastructure.

However, these three segments are not totally different and are not identifiable segments for reporting.

The revenue contribution during the financial year 2025-26 of each of the business segment is given below:

Business Segments	Revenue in Crores	Percentage Revenue
Buildings	195.36	13.21%
Water Management	221.69	71.80%
Infrastructure	1061.72	14.99%

The Company has carefully carved its niche area and continues to remain focused on its established geographical presence as well as its operating verticals and ventures, with a prudent approach

towards capitalizing on emerging opportunities. Your Company continues to focus on short-term projects with an execution period of less than 24 months and a project size ranging from ?250 Crores to ?500 Crores, which enables the Company to achieve superior profitability of around 12-13% EBITDA in each project. At the same time, the Company has a ?1,125 Crores longterm fabrication project in hand, which provides strong business visibility and supports the Company for the next four years.

ORDER BOOK POSITION

The Company maintains a robust order book of Rs. 3,978.33 crore providing strong revenue visibility and a stable foundation for future growth. The Company continues to focus on maintaining optimal margins through disciplined bidding, efficient project execution and effective cost management. The entire order book is currently derived from Government and Government-related agencies, providing stability in project inflows and reducing counterparty credit risk.

The order book size in the financial year 2025-26 is as below:

Business Segments	Amount (in INR Cr)	Percentage Order Book	Embedded EBITDA Margins
Buildings	161.26	4.05	10-12%
Water Management	583.79	14.67	15-18%
Infrastructure	3233.79	81.27	12-14%

Following were the major work order inflow in financial year 2025-26:

Name of Work	Amount (INR- Crores)	Segment	State
Selection of Contractor for Development of UPSIDA Industrial Area at Bharapaehpera-Pilibhit (UP) on EPC basis	282.88 Crores	Infrastructure	Uttar Pradesh
Supply of Factory Finished Fabricated Structure of Boiler (Columns (Plus, Plus-I and Box etc.), Bracings, Wall beams, Floor Beams, Trusses etc.) up- to Project Site, based on input design & detailed drawing, Quality Work Instructions (QWIs) and Technical Specification as provided by BHEL for Unit#1 and Unit#2 of 2X800 MW Koderma Project	154.43 Crores	Infrastructure	Jharkhand
Establishment of a fabrication shop to supply factory finished structures to BHEL project	1327.50 Crores	Infrastructure	Uttar Pradesh
Detailed EPC of roofing shed to the Railway lines in the marshaling yard at New Mangalore Port Authority, Mangalore	78.18 Crores	Infrastructure	Karnataka
Civil works for construction of office cum training building and residential accommodation for officers and staff of National Academy of Defence Financial Management (NADFM) Pune.	125.00 Crores	Infrastructure	Maharashtra
improvements at Km 23/0 - 36/5 of Thirumazhisai - Uthukottai road (SH—50) including Reconstruction of Box culvert at km 23/6, 23/ 10, 24/2, 24/ 4,24/6, 25/6, 27/8, 28/4, 29/8, 30/6,32/2,36/2, Widening of Box culvert at Km 23/2,25/6, 28/8, Widening of Minor bridge at km 27/4 and Construction of additional bridge at Km 35/8	69.36 Crores	Infrastructure	Tamil Nadu
widening from Two Lane to Four Lane and Strengthening at km 97/0 100/0 and only Widening from Two Lane to Four Lane at Km 101/0 - 103/0, 106/2- 106/4 of Hogenakkal - Pennagaram - Dharmapuri Thirupathur road including Reconstruction of Box Culvert at Km 96/10, 97/4, 98/4, Widening of Minor Bridge at Km 96/6 and Construction of RCC Retaining wall at Km 95/850 96/475, 97/2-97/270 [SH60]- TVM-92	26.91 Crores	Infrastructure	Tamil Nadu
W.R.D - Flood Mitigation Works for the Establishment of Global Sports City at Semmancheri, Chennai: Formation of New Tanks, Construction of Peripheral Earthen Drains, Cut & Cover Channels and Capacity Enhancement of Surrounding Tanks	52.17 crores	Infrastructure	Tamil Nadu
SDAT - Establishment of Global Sports City, Chennai - Appointment of Contractor for Design, Engineering, Procurement & Construction of Global Sports City (EPC 1 Mode)	205.89 Crore	Infrastructure	Tamil Nadu
Retrofitting work for providing water supply through FHTC as per JJM Guidelines in 202 Main Habitation and 355 other habitations of Ajmer Rural, Arain and Silaro blocks of District Ajmer from Bisalpur Dam system under Jal Jeevan Mission with O&M for 10 years RPP-BCC JV	365.85 Crore	Water Management	Rajasthan

With a continued focus on sustainable growth and value creation, the management regularly reviews and realigns its strategies in line with evolving market conditions. The Company remains committed to optimising costs, improving operational efficiency and enhancing stakeholder value while maintaining a prudent risk management approach.

The Companys strategy is centred on achieving profitable growth through disciplined project selection, efficient resource utilisation, timely execution and focused expansion across identified geographies and sectors. These strategic initiatives enable the Company to strengthen its market position, enhance execution capabilities and create long-term value for stakeholders.

FINANCIAL PERFORMANCE/ OPERATIONAL PERFORMANCE

The financial statements have been prepared in accordance with the applicable requirements of the Companies Act, 2013, guidelines issued by the Securities and Exchange Board of India (SEBI), and the Indian Accounting Standards (Ind AS) notified under the relevant provisions of law.

The management is responsible for ensuring the integrity, objectivity and accuracy of the financial statements, including the appropriateness of accounting policies, estimates and judgments applied in their preparation. Such estimates and judgments have been made on a prudent and reasonable basis, considering the circumstances prevailing at the time of preparation, to ensure that the financial statements present a true and fair view of the Companys financial position, financial performance and cash flows, while faithfully reflecting the substance of the underlying transactions.

Standalone Performance:

Your Company has posted total revenue of Rs.1478.77 Crores in financial year 2025-26 as compared to Rs. 1431.55 Crores in financial year 2024-25. Total cost increased to Rs.1488.12 Crores in financial year 2025-26 as against 1361.21 Crores in the in financial year 2024-25.

The EBITDA for the financial year 2025-26 reduced to Rs.34.93 Crores as compared to Rs. 107.08 Crores in financial year 2024-

25. The Profit after Tax (PAT) for the financial year 2025-26 stood at Rs.7.79 Crores as compared to ?65.47 Crores in the previous financial year 2024-25, reflecting a marginal decrease.

Consolidated Performance:

During the financial year, none of the Companys subsidiaries qualified as a material subsidiary. The operations of these subsidiaries remained limited in scale and primarily comprised routine administrative and operational expenses. During the year, the Company incorporated a new subsidiary, the details of which have been appropriately disclosed in the relevant sections of this report.

The total consolidated revenue stood at Rs 1495.10 Crores in financial year 2025-26 as compared to Rs 1439.43 Crores in financial year 2024-25. Total consolidated expenses increased to Rs.1504.65 Crores in financial year 2025-26 as against Rs. 1369.27 Crores in financial year 2024-25. Profit after tax for the financial year 2025-26 increase to 7.45 Rs Crores as compared to Rs. 65.29 Crores during the financial year 2024-25.

BUSINESS OUTLOOK

The financial year under review witnessed a stable performance in terms of revenue, with the Company maintaining its turnover at a level comparable to the previous year. However, profitability was impacted primarily due to the stage of execution of the Companys projects, with a significant portion of projects being either at the finishing stage or at the initial stage. Both stages involve additional operating and establishment costs, thereby temporarily impacting project margins. Further, escalation and Price Variation ("PV") claims in finishing-stage projects are subject to the clients operational and approval processes and may take time to be recognised and realised.

Despite the moderation in profitability, the Company has maintained its turnover, supported by revenue contribution from back-to-back contracts and continued execution across its project portfolio. The Company expects the impact of the additional costs incurred at the initial and finishing stages of projects to moderate as the new projects progress to normal execution levels and the existing projects move towards closure and realisation of pending claims.

With a strong order pipeline and healthy business prospects, the Company continues to focus on securing additional projects while maintaining a prudent approach towards project selection and execution. The continued Government focus on infrastructure development and increased capital expenditure in India is expected to provide significant opportunities for the Company in the coming years.

Considering the strong order pipeline, ongoing project execution and focus on securing new opportunities, the Company expects the next financial year to deliver improved performance. As the

newly commenced projects progress and the existing projects move towards completion and realisation of claims, the Company remains confident of further improvement in its operational performance and profitability in the subsequent years.

Your Company continues to stay focused in three business segment of infrastructure, water management and building. These sectors are also of prime importance for the government. Below are few initiative by Government for its impetus to infrastructure/ growth for improving the quality of life and these initiatives also provides opportunity for the Company:

Business Segments	Name of New projects	Other Works
Roads	Bharat mala, Pradhan Mantri Gram Sadak Yojana	Four-laning of national highways, upgradation of state highways into national highways
Urban Infra	Schemes such as Swachh Bharat Abhiyan, Smart Cities, Green Mode of transport	Mass rapid transit, metro train, water supply and sanitation projects
Irrigation and River Linking	50% of cultivated land in India is still not irrigated	Governments aggressive river linking targets provides huge opportunity

Your Company continues to focus on growth and expects to deliver improved performance during the financial year 2025-26.

Growth Strategies

The Company follows a prudent business strategy by focusing primarily on Government-funded EPC projects, which provide greater stability and resilience across different market cycles. As a pure-play niche EPC company, it has developed strong execution capabilities across key infrastructure segments such as highways, roads and bridges, water management, irrigation and power projects. This diversified presence enables the Company to reduce dependence on any single segment while maintaining a balanced and resilient project portfolio.

The Company has established a strong presence across key micromarkets in South India and is steadily expanding its geographical footprint into Maharashtra, Madhya Pradesh, Uttar Pradesh and Chhattisgarh. This expansion is aimed at increasing market opportunities, strengthening the Companys presence across high-growth regions and reducing regional concentration risk. The Company continues to evaluate opportunities across new geographies and infrastructure segments to support sustainable and diversified growth.

The Companys strategy of focusing on relatively smaller-sized Government projects provides several operational advantages, including shorter execution cycles, better project monitoring and enhanced revenue visibility. Its efficient execution capabilities enable the Company to maintain consistent project delivery while exercising greater control over costs and operations. Overall, the Companys combination of Government-focused projects,

diversified infrastructure capabilities, expanding geographical presence and efficient execution positions it for stable and sustainable growth.

The Company has de-risked business, which ensures superior profitability projects as below:

Maximum Project Duration	Upto 60 Months	Short Duration Projects 12 Months
Maximum Project Size	Around Rs. 1125 Crore	Low Tickets Projects Rs. 8 crore
EBITDA Margins	12 -13 %	Superior Profitability Projects Irrigation project

The Company has implemented diversified geographical location, yet maintains strong presence at a few places, which can be observed below through its order book position:

States/ Countries	Order Book Percentage	States/ Countries	Order Book Percentage
Tamil Nadu	19.17	Jharkhand	3.91
Uttar Pradesh	52.27	Karnataka	2.50
Maharashtra	12.62	Rajasthan	8.62
Kerala	0.60	Andaman	0.30

The Company also ensures its efficient operation through its business cycle, which comprises of small ticket size projects coupled with stringent onsite operational control, which accelerates project completion, which helps the company to raise milestone bill faster ensuring enhance liquidity.

The Company has large talent pool comprising of over 500 plus employees. It has good captive equipment of around Rs. 202.09 Crores. It also has strategic sub-contracting partnership for project and applies accurate project modelling through cutting edge IT tools. These culminates and ensures efficient operations.

RISKS AND CONCERNS

Risk mitigation is an integral part of the Companys overall business strategy and project management framework. The Company adopts a proactive approach towards identifying, assessing and managing potential risks throughout the project lifecycle. Broadly, infrastructure and construction projects are exposed to the following key risks:

Key Industry Risks and Mitigation Measures

Risk	Description	Mitigation
Macroeconomic and Policy Risk	The infrastructure sector remains sensitive to macroeconomic factors such as interest rates, inflation, currency fluctuations and changes in government policies. Economic slowdowns, reduced capital expenditure or policy changes may impact project awards, execution timelines and profitability	The Company mitigates these risks through prudent project selection, disciplined bidding, effective contract management and focus on sectors with sustained infrastructure demand.
Skilled Labour Availability Risk	Availability of skilled manpower remains a key challenge in the construction industry, particularly for large-scale and technically complex projects. Labour shortages may impact productivity, project schedules and execution efficiency	The Company addresses this risk through advance manpower planning, skill development initiatives, workforce training and strong subcontractor management practices.
Cybersecurity Risk	Increasing reliance on digital platforms for project execution, financial systems, supply chain management and remote monitoring has increased exposure to cybersecurity threats.	The Company follows a proactive cybersecurity framework through technology upgrades, continuous monitoring, periodic vulnerability assessments, employee awareness programmes and compliance with applicable cybersecurity standards.
Client and Order Book Concentration Risk	A significant portion of the Companys order book comprises projects from government and public sector entities. Any slowdown in public expenditure, delays in fund allocation or changes in government priorities may impact project flows and working capital cycles.	The Company mitigates this risk through diversification across clients, sectors and geographies, while maintaining a disciplined approach towards project selection based on funding visibility and execution feasibility.
Geopolitical Risk	Global geopolitical uncertainties, including regional conflicts, trade restrictions and supply chain disruptions, may impact commodity prices, energy costs, availability of materials and project execution timelines. International operations may also be exposed to country-specific regulatory, political and economic developments.	The Company mitigates these risks through geographical diversification, proactive monitoring of political and economic developments, robust project planning and effective supply chain management. Appropriate contractual protections, including escalation and time- extension provisions wherever applicable, help manage cost and execution uncertainties. The Companys diversified presence across domestic and international markets, coupled with disciplined project selection and risk assessment processes, supports operational resilience.
Project Execution Risk	Infrastructure projects involve complex execution processes and are subject to various factors including timely mobilisation of resources, availability of equipment and materials, coordination with suppliers and subcontractors, regulatory approvals and adherence to project timelines. Any challenges in project planning, cost management, resource deployment or execution efficiency may impact project completion schedules and profitability.	The Company mitigates this risk through a robust project management framework supported by experienced execution teams, effective deployment of resources, continuous monitoring of project progress and close coordination between project sites and the corporate office. The Company follows structured processes for tracking project timelines, costs, quality parameters, manpower utilisation and equipment deployment. Strong relationships with suppliers and subcontractors, along with prudent project planning and execution capabilities, enable the Company to deliver projects efficiently and maintain operational excellence.
Project Completion and Schedule Risk	Infrastructure projects are exposed to the risk of delays in completion due to factors such as cost overruns, availability of materials, labour and equipment, delayed approvals, changes in project requirements, technology-related challenges or force majeure events. Any delay in project execution may impact project timelines, cost efficiency, contractual obligations and profitability.	The Company mitigates this risk through proactive project planning, timely mobilisation of site teams, equipment and resources, and effective coordination with suppliers, subcontractors and project stakeholders. The Company has established monitoring mechanisms to track project progress, resource requirements, drawings, approvals and client clearances. Advance identification and timely communication of project requirements, supported by proper documentation and regular review processes, enable the Company to minimise execution delays and ensure timely project completion.
Project Cost and Operational Risk	Infrastructure projects are exposed to operational risks arising from cost escalations, unforeseen site conditions, design changes, resource constraints and execution-related challenges. Such risks may adversely impact project costs, operational efficiency, execution timelines and overall profitability.	The Company mitigates these risks through comprehensive project evaluation and detailed site assessments during the tendering stage. Cross-functional teams are involved to identify and assess technical, commercial and operational variables, enabling accurate project planning and risk assessment. Detailed execution plans with clearly defined process linkages, continuous project monitoring and effective cost control measures support efficient project execution and help minimise operational risks.

RISK MANAGEMENT POLICY

The Company has established a robust risk management framework to identify, assess, monitor and mitigate risks that may impact its business and operations. Risk assessments and mitigation measures are reviewed periodically to ensure their effectiveness and to address emerging business risks. A structured reporting mechanism enables timely escalation of significant risks to the management for appropriate action. The Audit Committee of the Board periodically reviews the Companys risk management framework, key risk exposures and the effectiveness of mitigation measures to strengthen the overall governance process.

The company follows the following risk management framework:

- Risk identification

- This function involves pre-emptive strategies to identify potential risks and evolve a framework for mitigation

- Risk assessment and analysis

- Risk assessment is the objective evaluation of the quantitative and qualitative value of risk related to the uncertainties of a specific situation

- Proactive risk governance measures

- This requires the organization to ascertain action plans to address identified issues and forestall potential damage

- Comprehensive risk reporting

- Record the causes and mitigation measures for future reference The Company has established robust reporting and monitoring systems that facilitate timely identification of operational and project-related risks, enabling informed and prompt decisionmaking. Critical risk indicators are continuously monitored, and any significant deviations are escalated to the management for immediate corrective action. This proactive approach enhances operational efficiency, minimises potential disruptions and supports business continuity.

INTERNAL CONTROLS AND THEIR ADEQUACY

The Company has established an adequate and effective internal control system commensurate with the nature, size and complexity of its business and operations. The internal control framework is designed to ensure operational efficiency, safeguard assets, maintain the accuracy and reliability of financial and accounting records, ensure compliance with applicable laws and regulations, and facilitate the prevention and detection of frauds and errors.

The Companys internal financial controls are aligned with the requirements of the Companies Act, 2013. The Statutory Auditors have issued their report on the adequacy and operating effectiveness of the Companys internal financial controls over financial reporting in accordance with Section 143 of the Companies Act, 2013.

The Company has implemented a robust corporate governance framework that promotes ethical business practices, transparency and accountability. An effective Whistle Blower Mechanism is in place to encourage the reporting of genuine concerns and ensure appropriate action.

The internal control framework is periodically evaluated through an independent internal audit function conducted by external professionals. The internal auditors carry out risk-based audits across project sites and corporate functions throughout the year, evaluate the effectiveness of internal controls and recommend corrective measures wherever necessary.

The Audit Committee of the Board provides oversight of the internal control framework by periodically reviewing internal audit reports, significant observations and the status of corrective actions implemented by the management. This continuous review process supports effective risk management, strengthens governance practices and drives continual improvement in the Companys internal control environment.

HUMAN RESOURCE DEVELOPMENT AND INDUSTRIAL RELATIONS

The Company recognises that its employees are a key driver of sustainable growth and operational excellence. Its continued success depends on attracting, developing and retaining skilled professionals with the expertise and experience required to execute complex infrastructure projects. The Companys human resource policies are aligned with its business strategy and are designed to foster a high-performance, merit-based and collaborative work environment. As on March 31, 2026, the Company had 555 employees on its rolls. It continues to invest in employee development through structured training programmes, leadership development initiatives and skill enhancement, while promoting innovation, operational efficiency and timely project execution. The Company places significant emphasis on employee welfare, health and safety by implementing robust safety practices, regular awareness programmes and welfare initiatives across its project sites. These measures contribute to enhancing employee engagement, productivity and overall organisational effectiveness.

DETAILS OF SIGNIFICANT CHANGES

(i) Debtors Turnover: 8.99

(ii) Interest Coverage Ratio: 1.86

(iii) Current Ratio: 1.54

(iv) Debt Equity Ratio: 0.19

(v) Net Profit Margin (%): 0.01

CHANGE IN RETURN ON NET WORTH

The Company has 1.49% return on net worth during the financial year 2025-26 as compared to 13.95% during the previous financial year 2024-25.

DISCLOSURE OF ACCOUNTING TREATMENT

The Company has followed the accounting standards in the preparation of financial statements as applicable to it.