Sadbhav Engineering Ltd Directors Report

Directors Report

To,

The Members,

The Directors have the pleasure in presenting the Thirty Seven Annual Report together with the audited financial statement for the financial year ended on March 31, 2026.

Financial Result

The Companys financial performance for the Year ended on March 31, 2026 is summarized below:

				(Rs. in Crores)
	Standalone		Consolidated
Particulars	Current Year 2025-26	Previous Year 2024-2025	Current Year 2025-26	Previous Year 2024-2025
Total Income	204.40	256.00	1066.11	1132.50
Profit (Loss) before Finance Cost, Depreciation & amortization Expense and Tax Expense	56.46	28.63	624.73	513.08
Less : Finance Cost	177.40	156.60	414.52	457.40
Depreciation and amortization Expense	3.61	9.39	139.19	127.02
Profit /(Loss) before Exceptional Item and Tax	(124.55)	(137.36)	71.03	(71.35)
Exceptional Item (Net of expenses)	191.43	25.44	106.84	(21.02)
Profit /(Loss) Before Tax	66.88	(111.92)	177.87	(92.37)
Less : Tax Expenses	(7.09)	1.07	26.00	29.82
Less:-Deferred tax liability /(asset)(Including MAT Credit)	60.59	40.56	57.18	42.42
Profit /(Loss) for the period from continuing	13.38	(153.55)	94.69	(165.70)
Add:- Share of Loss Transferred to Minority Interest			68.37	(23.78)
Net Profit for the period after tax	13.38	(153.55)	26.32	(189.48)
Balance brought forward from last year	-194.99	-41.44	(1668.00)	(1575.19)
Loss of Subsidiary for earlier year transferred (net)
Other Comprehensive Income (OCI)	0.14	(0.12)	(0.21)	(0.24)
Amount available for Appropriations	-181.61	(194.99)	(1668.00)	(1575.19)
Appropriations
Dividend & Tax paid thereon	0.00	0.00	0.00	0.00
Adjustment on account of acquisition of noncontrolling interest	0.00	0.00		40.73
Equity Transactions/Share Issue Expenses	0.00	0.00
Transfer of amount from non-controlling interest	0.00	0.00		3.33
Adjustment Provision for impairment of	0.00	0.00	72.28	100.00
Adjustment on account of carve out of asset	0.00	0.00
Closing Balance in Retain earnings	-181.61	(194.99)	(1713.95)	(1668.00)

Dividend:

In view of losses incurred, your directors do not recommend any dividend for the financial year ended on 31st March, 2026.

Dividend Distribution Policy:

Securities and Exchange Board of India (SEBI), by its notification dated 8th July, 2016, has amended the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations), introducing new Regulation 43A and further amended the same on 5th May, 2021 mandating the top 1000 listed entities, based on market capitalization calculated as on 31st March of every financial year, to formulate a Dividend Distribution Policy and disclose the same on the website of the listed entity and a web-link shall also be provided in their annual reports.

The Company has adopted a Dividend Distribution Policy on August 20, 2016, which is available on the website of the Company at the link: https://www.sadbhaveng.com/wp-content/uploads/2018/02/Dividend Distribution Policy SEL.pdf. There has been no change to the policy during the year.

Business Overview Standalone Basis

The total revenue during the year under review was Rs. 204.40 Crores against Rs. 256 Crores for the previous year. Profit (Loss) before Finance Cost, Depreciation & amortization Expense and Tax Expense for the current year is Rs. 28.76 Crores against Rs. (51.76) Crores in previous year. Net Profit (Loss) after tax amounted to Rs. 13.38 Crores against Rs. (153.55) Crores in previous year.

Consolidated Basis

As per the Consolidated Financial Statements, the Total Income of the Group, operating profit (PBDIT), and net loss for the year were Rs. 1066.11 Crores, Rs. 513.08 Crores and Rs.94.69 Crore respectively.

Transfer to Investor Education and Protection Fund

The Company has transferred a sum of Rs. 0.38 lakhs to the Investor Education and Protection fund established by the Central Government during the financial year 2025-26, in compliance with Section 124 of the Companies Act, 2013. The said amount represents unclaimed dividend amount for the financial year 2016-17 which were lying with the Company for a period of 7 years from their due dates of payment. Prior to transferring the aforesaid sum, the Company has sent reminders to the shareholders for submitting their claims for unclaimed dividend for the financial year 2017-18.

Reserves

The Board of Directors of the Company has decided not to transfer any amount into General Reserve for the financial year ended on March 31, 2026.

Change in the Nature of Business, if any

There are no changes in the nature of business during the year.

Material changes and commitments affecting financial position between end of the financial year and date of report

1. Signing of Master Restructuring Agreement ("MRA") executed with a majority of the consortium lenders for the debt restructuring plan of the Company as on March 25, 2026:

The MRA has been entered into in relation to various underlying agreements including loan agreement was entered into on March 18, 2008 as supplemented by first supplemental working capital consortium agreement dated February 19, 2010, by second supplemental working capital consortium agreement dated August 29, 2011, by amended and restated working capital consortium agreement dated March 18, 2016, by fourth supplemental working capital consortium agreement dated September 27, 2018, and by fifth supplemental working capital consortium agreement dated August 12, 2021.

The MRA has been executed in relation to debt aggregating to Rs. 1,516.71 Crores (comprising of a fund-based exposure of Rs. 906.35 Crore and non-fund based limits of Rs. 610.36 Crore). The fund-based exposure will be restructured as non-convertible debentures.

Existing security available with the consortium will be extended for securing the debentures.

2. Implementation of Resolution Plan Regarding Debt Restructuring of the Company on April 01, 2026:

Sadbhav Engineering Limited informed to the Stock exchange vide announcement dated April 01, 2026, and pleased to inform to the Board that, Punjab National Bank vide its letter dated 01/04/2026 has confirmed that based on the consortium meeting dated 30/03/2026 and subsequent confirmation from the majority lenders led by PNB Consortium constituting 77.83% by value and 60% by number, the Restructuring Plan of the Company has been duly implemented on 31/03/2026 as per the Reserve Bank of India (Commercial Banks Resolution of Stressed Assets) Directions, 2025 dated 28/11/2025.

Share Capital

During the year, there was no change in total allotted equity share capital of Rs. 17,15,70,800/- (Face Value of Re. 1/- each). During the year under review, Company has not allotted any shares without differential voting rights. The Company has no scheme of provision of money for purchase of its own shares by employees or by trustees for the benefit of employees. Hence the details under rule 16 (4) of Companies (Share Capital and Debentures) Rules, 2014 are not required to be disclosed.

Debentures

During the financial year 2025-26 and up to the date of approval of the Directors Report, the Company issued the following unlisted, unrated, secured, taxable, redeemable Non-Convertible Debentures (NCDs) having a face value of ^1,00,000 each:

a) 46,224 NCDs under Tranche I bearing ISIN: INE226H07171; and

b) 44,411 NCDs under Tranche II bearing ISIN: INE226H07189.

Accordingly, the Company raised an aggregate amount of ^713.25 crore through the aforesaid issuances.

In addition to the above, the Company allotted and redeemed NCDs during the year as detailed below:

	Allotted as on M	/larch 25, 2026	Redeemed as or	March 30, 2026
Name of Lenders	NCDs- I	NCDs - II	NCDs - I	NCDs - II
Punjab National Bank	13,364	12,840	1,363	1,310
Axis Bank Limited	6,522	6,266	665	639
Bank of India	1,572	1,511	160	154
Union Bank of India	8,001	7,687	816	784
Assets Care & Reconstruction Enterprise Limited	6,917	6,645	706	678
TOTAL	36,376	34,949	3,710	3,565

Credit Rating

CRISIL Ratings Limited and ICRA Limited (Rating Agencies) have issued independent credit evaluation (ICE) of RP-4 for the bank facilities (residual debt) of the Company based on a resolution plan submitted for the Company by Lead Bank.

Subsidiaries, Joint Ventures and Associates Companies

During the year, No Companies has become/ceased to be companys subsidiaries, joint ventures or associate company.

Pursuant to Section 134 of the Companies Act, 2013 and Rule 8(1) of the Companies (Accounts) Rules, 2014 the report on performance and financial position of subsidiaries, associates and joint venture companies is attached as a part of Annual Report in Form AOC- 1 prepared under section 129(3) of the Companies Act, 2013 to the consolidated Financial Statements of the Company which forms part of this report.

Consolidated Financial Statements

In compliance with the applicable provisions of Companies Act, 2013 including the Indian Accounting Standard (Ind AS)-33 on Consolidated Financial Statements, this Annual Report also includes Consolidated Financial Statements for the financial year 20252026.

Board of Directors and Key Managerial Personnel Retirement by Rotation

Mr. Siddharth Vyas, is the director liable to retire by rotation at the ensuing Annual General Meeting and, being eligible, offer himself for reappointment. The board recommends his reappointment.

Declaration from Independent Directors of the Company

The terms and conditions of appointment of Independent Directors are in accordance with the applicable Regulations of the SEBI (Listing Obligations and Disclosure Regulations) Regulations, 2015 and also as per the provisions of the Companies Act, 2013 (Act) read with Schedule IV to the Act.

Your Company has received declaration from all the independent Directors of the Company as required under Sec. 149(7) confirming that they meet with the criteria of independence provided in Section 149(6) of the Companies Act, 2013 and Regulation 16(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and there has been no change in the circumstances which may affect their status as Independent Director during the year.

Change in Directors and KMPs

1. During the year 2025-26 and upto the approval of Directors Report following changes made in Director and KMPs.

2. Mr. Hitesh Chelani has been appointed as a Chief Financial Officer (CFO) of the Company w.e.f. 30.05.2026

3. Mrs. Radhika Bhavin Tanna has been appointed as a Company Secretary and Compliance Officer of the Company w.e.f. 30.05.2026.

4. Mr. Ankit Kishorbhai Shah (DIN: 11821847) has been appointed as an Additional Director in category of Non-Executive Independent Director of the Company w.e.f. 13.08.2026.

5. Mr. Jaldeep Prakashbhai Patel (DIN: 11821907) has been appointed as an Additional Director in category of Non-Executive Independent Director of the Company w.e.f. 13.08.2026

6. Mr. Hardik Modi, Company Secretary and Compliance Officer of the Company resigned w.e.f. 02.04.2026.

7. Mr. Jatin Thakkar (DIN: 09312406), Executive Director of the Company resigned w.e.f. 13.11.2025.

Evaluation of Board Performance

The Board adopted a formal mechanism for evaluating its performance and as well as that of its Committees and individual Directors, including the Chairman of the Board. The exercise was carried out through a structured evaluation process covering various aspects of the Boards functioning such as composition of the Board and Committees, experience and competencies, performance of specific duties and obligations, contribution at the meetings and otherwise, independent judgment, governance issues etc. At the Board Meeting that followed the above-mentioned meeting of the Independent Directors, the performance of the Board, its committees, and individual Directors was also discussed. Performance evaluation of Independent Directors was done by the entire Board, excluding the Independent Director being evaluated. More details on the same are given in the Corporate Governance Report.

Audit Committee

The Audit Committee comprises Directors namely Mrs. Shefali M. Patel (Chairman), Mr. Shashin Patel and Dr. Tarang Desai. The composition of the Audit Committee is in compliance with the requirement of Section 177 of the Companies Act, 2013 and Regulation 18 of the SEBI (LODR) Regulations, 2015.

Stakeholder Relationship Committee

The Stakeholder Relationship Committee comprises Directors namely Dr. Tarang Desai (Chairman), Mr. Shashin V. Patel, and Mrs. Shefali M. Patel. The composition of the Stakeholder Relationship Committee is in compliance with the requirement of Section 178 of the Companies Act, 2013 and Regulation 20 of the SEBI (LODR) Regulations, 2015.

Risk Management Committee

Board constitute Risk Management Committee comprises Directors namely Mr. Shashin V. Patel (Chairman), Mrs. Shefali Patel and Mr. Hitesh Chelani. More details on the same are given in the Corporate Governance Report.

Pursuant to the provisions of Regulation 21 of the Listing Regulations, the Company is not required to constitute a Risk Management Committee. Although not mandatory, as a measure of good governance, the Company has constituted a Risk Management Committee of the Board. The Committee reviews the Companys performance against identified risks, formulates strategies towards identifying new and emergent risks that may materially affect the Companys overall risk exposure and reviews the Risk Management Policy and structure.

Committees of Board

Details of various committees constituted by the Board of Directors along with dates of meetings and attendance of members of committees as per provisions of the Listing Regulations and Companies Act, 2013 are given in the Corporate Governance Report and forms part of this report.

As on date, the Nomination and Remuneration Committee comprises Directors namely Dr. Tarang Desai (Chairperson), Mr. Ambalal Patel, and Mrs. Shefali Patel.

As on date, the Corporate Social Responsibility Committee comprises Directors namely Mr. Shashin V. Patel (Chairman), Mrs. Shefali M. Patel and Dr. Tarang Desai.

As on date, the Finance and Investment Committee comprises Directors namely Mr. Shashin V. Patel (Chairman), Mr. Hitesh Chelani, Mr. Kaivan Vora and Mr. Ambalal Patel.

Independent Directors Meeting

The Independent Directors met on 14th February, 2026, without the attendance of Non-Independent Directors and members of the management. The Independent Directors reviewed the performance of Non-Independent Directors, the Committees and the Board as a whole along with the performance of the Chairman of the Company, taking into account the views of Executive Director and assessed the quality, quantity and timeliness of flow of information between the management and the Board that is necessary for the Board to effectively and reasonably perform their duties.

Disclosures as per the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

The Company has zero tolerance for sexual harassment at workplace and has adopted a policy on prevention, prohibition and redressal of sexual harassment at workplace in line with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the rules made thunder and no complaint has been received on sexual harassment during the financial year 2025-26. Further Company has complied with the provisions relating to the constitution of Internal Complaint Committee under the Sexual Harassment of Woman at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

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.

Nomination and Remuneration Policy

The policy on Director s appointment and remuneration including criteria for determining qualifications, positive attributes, independence of Director, and also remuneration for Key Managerial Personnel and other employees has been provided under Corporate Governance Report. The weblink for the same is https://www.sadbhaveng.com/wp-content/uploads/2018/02/REMUNERATION-POLICY.pdf

Whistle Blower Policy

The Company has a vigil mechanism named Whistle Blower Policy for directors and employees to report to the management instances of unethical behavior, actual or suspected, fraud or violation of the Companys code of conduct or ethics policy. The details of the said Policy is explained in the Corporate Governance Report and also posted on the website of the Company. The weblink for the same is https://www.sadbhavene.com/wp-content/uploads/2018/02/Whistle Blower Policy-1.pdf

Development and implementation of Risk Management Policy

In accordance with the Regulation 17 of SEBI (LODR) Regulations, 2015, the Board formally adopted steps for framing, implementing and monitoring the risk management plan for the Company by way of Risk Management Policy.

Board of Directors of the Company has identified the risks in two categories i.e. (1) Internal and Business Risk and (2) External Risk. The Management has also envisaged the minimization procedure and its perception in respect of each identified risk.

Further, the Company identifies risks with its degree and control systems are instituted to ensure that the risks in business process are mitigated. The Board provides oversight and reviews the Risk Management Policy periodically. In the opinion of the Board there has been no identification of elements of risk that may threaten the existence of the Company.

Meetings of Board

During the year 2025-26, 6 (Six) Board Meetings were held on May 29, 2025, August 14, 2025, September 02, 2025, November 14, 2025, December 17, 2025 and February 14, 2026. The details of attendance of Directors are mentioned in Corporate Governance Report which forms part of this report.

Directors Responsibility Statement

Pursuant to the requirement in section 134(3) (c) of the Companies Act, 2013, the Directors state that:

a. in the preparation of the annual accounts for the year ended March 31, 2026, the applicable accounting standards had been followed and there are no material departures from the same;

b. the directors had selected such accounting policies and applied them consistently and made judgments and estimates thatare reasonable and prudent so as to give a true and fair view of the state of affairs of the company as at March 31, 2026 and of the profit and loss of the Company for the year ended on that date;

c. the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance withthe provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d. the directors had prepared the annual accounts on a going concern basis;

e. that the directors had laid down internal financial controls to be followed by the company and that the financial controls are adequate and are operating effectively; and

f. that the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are adequate and operating effectively.

Statutory Auditors

Statutory Auditor of the company is M/s. Manubhai & Shah LLP, Chartered Accountants, Ahmedabad (Firm Registration No. 106041W/ W100136).

M/s. Manubhai & Shah LLP, Chartered Accountants (Firm Registration Number: 106041W/W100136), Statutory Auditors of the Company to hold office for further the period of 5 (Five) consecutive years from the conclusion of the 36th Annual General Meeting until the conclusion of 41st Annual General Meeting to be held in the year 2030.

Qualifications, reservations or adverse remarks made by Statutory Auditors in their report for the Financial Year ended on March 31, 2026 are given in the Standalone and Consolidated Independent Auditors Report.

Explanation or Comments on Qualifications, Reservations or Adverse remarks or disclaimers made by the auditors and the practicing company secretary in their reports

The Statutory Auditors Report contain following qualification on Standalone and Consolidated Results.

Reply of Directors with respect to qualifications /observations raised by Statutory Auditors Report:

Details of Audit Qualification (Standalone):

Qualification 1:

We draw attention to Note 9 to the accompanying Standalone Financial Results regarding impairment assessment of investment of Rs. 54,864.44 Lakhs, stated at cost and outstanding loan (including interest accrued) of Rs. 32,938.49 lakhs as at March 31, 2026 to one of the subsidiary, Sadbhav Infrastructure Project Limited. It is noted that the subsidiarys consolidated net worth as at March 31, 2026, is substantially eroded. Management asserts that the investment and loan outstanding are fully recoverable, based on factors outlined in the said note.

However, we are unable to obtain sufficient appropriate audit evidence to substantiate the significant judgments and estimates made by management regarding the underlying assumptions adopted by the management for impairment assessment. Consequently, we are unable to provide a conclusive comment on the adjustments, if any, necessary to the carrying value of the said investment and loan and the consequential impact, if any, on the standalone financial position and standalone financial results of the Company as at reporting date and for the quarter and year ended on March 31, 2026.

Our Audit Report on financial statements for the year ended on March 31, 2025 and review reports on financial results for the quarter ended on June 30, 2025, September 30, 2025 and December 31, 2025 were also qualified with respect to this matter.

Reply to qualification 1:

The Company has investment in Sadbhav Infrastructure Project Limited (SIPL) amounting Rs. 54864.44 lakhs and loan given amounting Rs. 32938.49 lakhs as on March 31, 2026. As per the consolidated financial statements of the Sadbhav Infrastructure Project Limited (SIPL) and its subsidiaries, there is negative net worth of the Group of SIPL and its subsidiaries.

The management has carried out impairment assesment of these assets as on March 31, 2026 considering the projected cash flow from revenue of operating SPVs, arbitration award of SPV and realization of GST claims. Based on the assessment it is concluded receoverable amounts of these assets are more than the carrying value. Hence no impairment is required to the carrying value of investment in equity shares and loan to SIPL as on March 31, 2026.

The statutory auditors have expressed qualified opinion on financial statements for the year ended March 31, 2026 and March 31, 2025 and financial results for the quarter ended December 31, 2025 in respect of investment in equity shares of Sadbhav Infrastructure Project Limited (SIPL) and loan given to SIPL

Qualification 2:

We draw attention to Note 5 to the accompanying Standalone Financial Results with respect to termination of concession agreement by Rohtak Panipat Tollway Private Limited step-down subsidiary of the Company. As at March 31, 2026, aggregate amount of Rs 20,178.30 lakhs is outstanding towards loan, trade receivable and reimbursement of expenses as receivable from the said step-down subsidiary (RPTPL). The said step-down subsidiary has issued notice of termination of concession agreement to National Highway Authority of India (NHAI) on account of Force Majeure Event as per concession agreement. As explained in the said note, the Company has carried out impairment assessment of outstanding balance in this step-down subsidiary duly considering the expected payment arising out of aforesaid termination and other claims filed with NHAI and based on the above assessment, management has concluded that no impairment/adjustment to the carrying value of the loan, and other receivables balance is necessary as at March 31, 2026.

However, we have not been able to corroborate the managements contention of realizing the carrying value of loan and other receivables aggregating to Rs. 20,178.30 Lakhs as on the reporting date, related to the said step-down subsidiary

Accordingly, we are unable to comment on appropriateness of the carrying value of such loan and other receivable and the consequential impact on the standalone financial position and standalone financial result of the Company as at reporting date and for the quarter and year ended on March 31, 2026.

Our Audit Report on financial statements for the financial year ended on March 31, 2025 and review reports on the financial results for the quarter ended on June 30, 2025, September 30, 2025 and December 31, 2025 were also qualified with respect to this matter.

Reply to Qualification 2:

The Company has outstanding loan, Trade and other receivable aggregating to of Rs. 20178.30 lakhs given to Rohtak Panipat Tollway Private Limited (RPTPL), a step-down subsidiary company which is engaged in construction, operation and maintenance of road projects under concession agreement with National Highways Authorities of India (NHAI). The net worth of RPTPL has fully eroded. RPTPL has issued the termination notice on July 27, 2021, to NHAI by exercising the criteria of "Event of Defaults" under the concession agreement.

In this regard the management of RPTPL has lodged total claims aggregating to Rs. 1,93,792 Lakhs relating to termination payments, O&M cost due to force majeure, Covid claim & demonetization etc. In respect of such claims, RPTPL has given notice invoking Arbitration vide letter dated March 27, 2023. The Arbitral proceedings for the same are completed and the Arbitral Award is declared on 23.01.2025 unanimously. Counter Claim of NHAI regarding Premium is rejected completely by Ld. Arbitrator. As per the said Majority award, the net awarded amount after deducting all dues of NHAI including Premium works out to Rs. 1,08,054.50 lakhs (principal of Rs. 77,963.10 lakhs and interest of Rs. 30,091.40 lakhs).

In respect of Arbitration Claim for competing road, the award by Majority was passed on May 30, 2023 against the RPTPL. The RPTPL has filed the application under section 34 of the Arbitration and Conciliation Act, 1996 before the Honourable Delhi High Court.

Considering the management assessment of probability and tenability of receiving above claims from NHAI as per the terms of concession agreement, which is backed by legal opinion and pendency of the matter before Honourable Delhi high Court, the management has assessed that there is no impairment in the value of loan given to RPTPL and consequently no provision/adjustment to the carrying value of loan and other receivable as at March 31, 2026 is considered necessary.

The statutory auditors have expressed qualified opinion on financial statements for the quarter and year ended March 31, 2026 and March 31,2025 in respect of above as regards recoverable value of Companys outstanding loan, Trade and other receivable to RPTPL..

The Statutory Auditors Report contain following qualification on Standalone financial statements on the basis of Report on the Internal Financial Controls:

Qualification 1 :

The Company has not complied with the requirements of Section 203 of the Companies Act, 2013 read with the applicable rules framed thereunder due to the non-appointment of Chief Financial Officer (CFO) with effect from April 8, 2024.

The financial impact of this non-compliance is not ascertainable.

Reply to Qualification 1:

To ensure effective financial and internal control and discipline in the company the board of directors have appointed Mr. Hitesh Chelani as a Chief Financial Officer (CFO) of the company w.e.f. 30-05-2026 under section 203 of companies Act, 2013 and relevant SEBI (LODR) Regulations, 2015.

Qualification 2:

We draw attention to Note 6 to accompanying Standalone Financial Results regarding expected recoverability of Contract Assets amounting to Rs 35,019.32 lakhs outstanding as at March 31, 2026 which represent receivables in respect of closed/ substantially closed/ suspended projects. The Company is at various stages of negotiation/ discussion with the clients or matters under arbitration/ litigation in respect of aforementioned receivables.

Considering the contractual tenability, progress of negotiations/ discussions/ arbitration/litigations and as legally advised in certain contentious matters, the Management has represented that these contract assets amounting to Rs 35,019.32 lakhs are fully recoverable within a period of one year, based on factors detailed in the said note and hence classified under other current assets in the financial statement.

However, we were unable to obtain sufficient appropriate audit evidence to substantiate the significant judgments and estimates made by the management in relation to the expected recoverability of these contract assets within a period of one year. Accordingly, we are unable to determine whether any adjustments are required to the carrying value of the said contract assets and the consequential impact, if any, on the standalone financial position and results of the Company as at and for the quarter and year ended March 31, 2026.

Our Audit Report on financial statements for the financial year ended on March 31, 2025 and review reports on the financial results for the quarter ended on June 30, 2025, September 30, 2025 and December 31, 2025 were also qualified with respect to this matter.

Reply to Qualification 2:

Contract Assets of Rs. 35019.32 lakhs and other non-current financial assets of Rs. 11300.60 lakhs outstanding as at March 31, 2026 which represents various claims raised on the Clients based on the terms and conditions implicit in the Engineering, Procurement & Construction Contracts/Mining Contract in respect of closed/suspended/under construction projects. These claims are mainly in respect of cost over run arising due to suspension of works, client caused delays, changes in the scope of work, deviation in design and other factors for which Company is at various stages of negotiation/ discussion with the clients or under Arbitration/ litigation. On the basis of the contractual tenability, progress of negotiations/ discussions/ arbitration/ litigations/ legal opinions, the Management is of the view that these receivables are recoverable.

The statutory auditors have expressed qualified opinion on financial statements for the quarter and year ended March 31, 2026 in respect of above Contract Assets of Rs. 35019.32 lakhs.

Details of Audit Qualification (Consolidated):

The Statutory Auditors have provided following qualification in their audit report -

1. We refer to Note No 10 of the accompanying Consolidated Financial Results, regarding expected recoverability of Contract Assets amounting to Rs 35,019.32 lakhs outstanding as at March 31, 2026, relating to closed, substantially closed, or suspended projects. The Company is at various stages of negotiation/ discussion with the clients or matters under arbitration/litigation in respect of aforementioned receivables.

Considering the contractual tenability, progress of negotiations/ discussions/ arbitration/litigations and as legally advised in certain contentious matters, the Management has represented that these contract assets amounting to Rs 35,019.32 lakhs are fully recoverable within a period of one year, based on factors detailed in the said note and hence classified under other current assets in the financial statement.

However, we were unable to obtain sufficient appropriate audit evidence to substantiate the significant judgments and estimates made by the management in relation to the expected recoverability of these contract assets within a period of one year.

Accordingly, we are unable to determine whether any adjustments are required to the carrying value of the said contract assets and the consequential impact, if any, on the standalone financial position and results of the Company as at and for the quarter and year ended March 31, 2026.

2. As detailed in Note no. 4 & 5 to the accompanying Consolidated Financial Results, with respect to Rohtak Panipat Tollway Private Limited (RPTPL) and Rohtak Hisar Tollway Private Limited (RHTPL), step down subsidiaries of the Group in which interest on rupee term loan from banks and financial institutions have not been accounted considering the fact that both subsidiaries have issued termination notices and lenders of both step down subsidiaries have classified all the secured borrowings as nonperforming assets. This has resulted in the understatement of finance cost and the related interest liability and corresponding understatement of losses, amount of which is unascertained. Further financial statement of RPTPL and RHTPL are prepared on non-going concern basis.

The auditors of RPTPL and RHTPL have expressed qualified opinion on the financial statements for the year ended March 31, 2026 and March 31, 2025, as well as qualified review conclusion on financial results for the quarter ended December 31, 2025 in respect of this matter.

Reply of Directors with respect to qualifications /observations raised by Statutory Auditors Report:

Reply to qualification 1

Contract Assets of Rs. 35019.32 lakhs and other non-current financial assets of Rs. 14789.09 outstanding as at March 31, 2025 which represents various claims raised on the Clients based on the terms and conditions implicit in the Engineering, Procurement & Construction Contracts/Mining Contract in respect of closed/suspended/under construction projects. These claims are mainly in respect of cost over run arising due to suspension of works, client caused delays, changes in the scope of work, deviation in design and other factors for which Company is at various stages of negotiation/ discussion with the clients or under Arbitration/ litigation. On the basis of the contractual tenability, progress ofnegotiations/ discussions/ arbitration/ litigations/ legal opinions, the Management is of the view that these receivables are recoverable. The statutory auditors have expressed qualified opinion on financial results for the quarter and year ended March 31, 2025 in respect of above Contract Assets of Rs. 35019.32 lakhs.

Reply to qualification 2:

One of the step-down subsidiaries of the Group namely Rohtak Panipat Tollways Private Limited (RPTPL) has issued the termination notice on July 27, 2021, to National Highway Authority of India (NHAI) by exercising the criteria of "Event of Defaults" under the concession agreement. Since the project of the Company has been terminated, the management of RPTPL is of the view that going concern assumption for preparation of accounts is not appropriate and accounts have been drawn accordingly on non-going concern basis.

The management of RPTPL has lodged a total claim amounting to Rs. 193792 lakhs relating to termination payment, Force Majeure Costs due to Force Majeure event of Farmers Agitation, COVID-19, & Demonetization, and NPV of extension entitled due to Force Majeure event of Farmers agitation and Covid 19. The NHAI had lodged its counter Claims amounting to Rs. 62270 lakhs. The Company had submitted its reply on such counter claims The Arbitral proceedings for the same are completed and the Arbitral Award is declared on 23.01.2025 unanimously, except for Counter Claim of NHAI regarding Premium that one Ld. Arbitrator has rejected it completely. As on the date of the said Majority award, the net awarded amount after deducting all dues of NHAI including Premium works out to Rs. 108054.50 lakhs (principal of Rs. 77963.10 lakhs and interest of Rs. 30091.40 lakhs)

The Arbitration matter of Competing Road was referred to Arbitration. In the said matter, the majority award was passed on May 30, 2023 in favour of NHAI setting aside claims of Company and Minority Award dated 05.06.2023 in favour of Company amounting to Rs. 85098 lakhs. The Company has challenged the Majority Award dated 30.05.2023 and filed a petition under Section 34 of Arbitration & Conciliation Act 1996 before the Honble Delhi High Court to set aside the Majority Award dated 30.05.2023. The same is sub-judice before Honble Delhi High Court.

The dispute of Claim for Additional Cost on account of ban of quarrying of stone and loss of Toll collection due to delayed issuance of Provisional Certificate was referred to Arbitration. A unanimous Award dated 06.10.2017 by Arbitral Tribunal was awarded in favour of Company amounting to Rs. 89020 lakhs (amount inclusive of costs & interest pendente lite). This Award was challenged by NHAI under Section 34 before the Delhi High Court. The Delhi High Court in its Judgment dated 16.02.2023, the value of award payable by NHAI to RPTPL as on 15.10.2023 works out to Rs. 12119 lakhs. NHAI had challenged the said award under Section 37 before Division Bench of Delhi High Court. The said matter is now withdrawn by NHAI on account of ongoing Vivad se Vishwas II settlement proposal.

NHAI had claimed on RPTPL a claim on account of negative FRL which was referred to Arbitration. The Majority Award on 31.10.2020 by Tribunal was in favour ofNHAI amounting to Rs. 2034 lakhs. The interest on delayed payment is awarded at 7.4% simple interest, as on 15.10.2023 works out to Rs. 2479 lakhs. The dissenting note by the Minority of the Tribunal had stated to reject the claim ofNHAI. The Company has challenged the said Majority Award under Section 34 before the Delhi High Court, which is sub-judice. The Company hadchallenged the said Majority Award under Section 34 before the Delhi High Court.

The Arbitration Award dated 06.10.2017 and Arbitration Award dated 31.10.2020 has been settled through Settlement Agreement dated 20.03.2025 under Vivad se Vishwas II Scheme of Govt. of India for the net settlement amount of about Rs. 6500 lakhs. Also, RPTPL has received intimation letter dated April 08, 2024 from National Asset Reconstruction Company Limited (NARCL) intimating that the deed of assignment dated March 22, 2024 under the provisions of Section 5 of the SARFASI Act, the consortium of lenders except one lender have assigned/ transferred the outstanding debt /financial assets alongwith underline securities interest, pledged of shares, guarantees, receivables etc charge for such financial assistance granted to RPTPL in favour of NARCL and NARCL acting in its capacity as trustee of NARCL Trust.

During the quarter ended March 31, 2023, RPTPL has reversed interest of Rs. 10269.40 lakhs provided during the earlier period considering the fact that the project of RPTPL has been terminated and lenders have classified loans as Non Performing Assets. During the year ended March 31, 2025 and March 31, 2024, RPTPL has not accounted for interest on Rupee Term Loan from banks and financial institutions as well as loan from group Company since the lenders of RPTPL has classified borrowing as NPA and financial statements are prepared on non going concern basis, for which the statutory auditors of RPTPL have expressed qualified opinion on financial statements in this regards.

Notice on August 27, 2021, to NHAI by exercising the criteria of "Event of Defaults" under the concession agreement. Since the project of the Company has been terminated, the management of RHTPL is of the view that going concern assumption for preparation of accounts is not appropriate and accounts have been drawn accordingly on non-going concern basis.

In this regard the management of RHTPL has lodged total claim amounting to Rs. 192871 lakhs relating to termination payment, Force Majeure Costs due to Force Majeure event of Farmers Agitation, COVID-19, & Demonetization, and NPV of extension entitled due to Force Majeure event of Farmers agitation and Covid19. The NHAI had lodged its Counter Claims amounting to Rs. 3,6658 lakhs. The

Company had submitted its reply on such counter claims. The Arbitral proceedings for the same are currently ongoing. The current stage of arbitral proceeding is of Arguments which are ongoing.

Also, RHTPL has received intimation letter dated April 08, 2024 from National Asset Reconstruction Company Limited (NARCL) intimating that the deed of assignment dated March 22, 2024 under the provisions of Section 5 of the SARFASI Act, the consortium of lenders have assigned/ transferred the outstanding debt /financial assets alongwith underline securities interest, pledged of shares, guarantees, receivables etc charge for such financial assistance granted to RHTPL in favour of NARCL and NARCL acting in its capacity as trustee of NARCL Trust.

During the quarter ended on March 31, 2023, RHTPL has reversed interest of Rs. 12280.90 lakhs provided during the earlier period considering the fact that the project of RHTPL has been terminated and lenders have classified loans as Non Performing Assets (NPA).

During the year ended March 31, 2025 and March 31, 2024, RHTPL has not accounted for interest on Rupee Term Loan from banks and financial institutions as well as loan from group Company since the lenders of RHTPL has classified borrowing as NPA and financial statements are prepared on nongoing concern basis, for which the statutory auditors of RHTPL have expressed qualified opinion on the financial statements in this regards.

The Statutory Auditors Report contain following qualification on Consolidated financial statements on the basis of Report on the Internal Financial Controls:

Qualification 1: The Holding Company has not complied with the requirements of Section 203 of the Companies Act, 2013 read with the applicable rules framed thereunder due to the non-appointment of Chief Financial Officer (CFO) with effect from April 8, 2024. The financial impact of this non-compliance is not ascertainable

We have expressed qualified opinion on the standalone financial Results and Standalone financial statement of the Holding Company for the quarter and year ended on March 31, 2026 and March 31, 2025 and qualified conclusion on the Standalone financial results for the quarter ended on December 31, 2025 in respect of above matters.

Reply to Qualification 1: To ensure effective financial and internal control and discipline in the company the board of directors have appointed Mr. Hitesh Chelani as a Chief Financial Officer (CFO) of the company w.e.f. 30-05-2026 under section 203 of companies Act, 2013 and relevant SEBI (LODR) Regulations, 2015.

Qualification 2: Accompanying consolidated financial results include audited financial results/information of Sadbhav Infrastructure Project Limited, a subsidiary Company, whose audited consolidated financial results/financial information reflect total revenue of Rs 17,512.60 Lakhs and Rs 82,739.80 Lakhs , total net profit after tax of Rs 8,594.30 Lakhs and Rs 4,510.20 Lakhs and total comprehensive income of Rs 8,491.20 Lakhs and Rs 4,390.70 Lakhs for the quarter and year ended March 31, 2026.

Reply to Qualification 2: The Company has investment in Sadbhav Infrastructure Project Limited (SIPL) amounting Rs. 54864.44 lakhs and loan given amounting Rs. 32938.49 lakhs as on March 31, 2026. As per the consolidated financial statements of the Sadbhav Infrastructure Project Limited (SIPL) and its subsidiaries, there is negative net worth of the Group of SIPL and its subsidiaries.

The management has carried out impairment assesment of these assets as on March 31, 2026 considering the projected cash flow from revenue of operating SPVs, arbitration award of SPV and realization of GST claims. Based on the assessment it is concluded receoverable amounts of these assets are more than the carrying value. Hence no impairment is required to the carrying value of investment in equity shares and loan to SIPL as on March 31, 2026.

The statutory auditors have expressed qualified opinion on financial statements for the year ended March 31, 2026 and March 31, 2025 and financial results for the quarter ended December 31, 2025 in respect of investment in equity shares of Sadbhav Infrastructure Project Limited (SIPL) and loan given to SIPL

Qualification 3: As detailed in Note No. 3.3 to the Consolidated Financial Results in respect of Sadbhav Udaipur Highway Limited (Concessionaire or SUDHL), step down subsidiary of the Group in which SUDHL has entered into endorsement agreement for harmonious substitution of the Concessionaire in favor of new concessionaire. Further, information regarding managements plans for undertaking alternative business activities is not available. There exists a material uncertainty that may cast significant doubt on the SUDHLs ability to continue as a going concern therefore it may be unable to realize its assets and discharge its liabilities in the normal course of business.

We have expressed qualified opinion on the financial statement of SUDHL for the year ended March 31, 2026 regarding material uncertainty relating to going concern.

Reply to Qualification 3: In case of Sadbhav Udaipur Highway Limited (SUDHL or concessionaire), step down subsidiary of the group which is engaged in construction, operation and maintenance of infrastructure project under concession agreement with National Highways Authority of India (NHAI, the project work has been completed and the subsidiary has received the Commercial Operation Date (COD) from NHAI dated July 19, 2024.

However SUDHL has requested the NHAI & Lenders to allow harmonious substitution in terms of the NHAI Policy circular through a nominated company namely — M/S Gawar Construction Limited (Nominated Company) and the Lenders Representative to give its consent for allowing harmonious substitution of the SUDHL.

The NHAI vide its letter dt December 27, 2023, conveyed its "InPrinciple" approval for substitution of Original Concessionaire with a new special purpose vehicle to be incorporated by the Nominated Company subject to certain conditions and final approval from the NHAI. Since the conditions precedent to the harmonious substition are under compliance, no adjustment to the carrying value of assets and liabilities related to this project have been made in these consolidated financial results, for which the statutory auditors of SUDHL have expressed qualified opinion of the financial statements for the year ended March 31, 2025 and qualified conclusion for the quarter and nine month ended December 31, 2025.

The Final approval of the NHAI is received and company has signed endorsement agreement date February 27, 2026 with NHAI, Trustee of Lenders and SPV of nominated company. Accordingly, all project assets and Liabilites has been transferred to nominated

SPV. The Group has provided for Rs. 10000 lakhs in the books of accounts and disclosed as an exceptional item in the standalone audited financial results for the year ended March 31, 2025; written off Rs. 3367.60 lakhs towards subordinate debt and made impairment provision of Rs. 2696.60 lakhs towards investment in shares of the SUDHL during the quarter and year ended March 31, 2026.

Qualification 4: As detailed in Note No 13 to the accompanying statement, tax credits amounting to Rs 11,949.20 lakhs are included in the consolidated Balance sheet under the Other Current Assets in respect of following step down subsidiaries

Sr. No Name of Step-Down Subsidiary	Amount of Tax Credit in Lakhs
1 Sadbhav Vidarbh Highway Limited (SVHL)	5,034.50
2 Sadbhav Banglore Highway Private Limited (SBGHPL)	4,206.80
3 Sadbhav Jodhpur Ring Road Private Limited (SJRRPL)	1,521.50
4 Sadbhav Nainital Highway Limited (SNHL)	1,186.40
Total	11,949.20

The management is confident about the utilization of the credit as mentioned in Note no 13 to the accompanying statement.

However, at present the Company does not have any business activity nor are we informed about the management plan for taking up other activity. In view of this, we are unable to comment about the utilization of tax credits in foreseeable future.

In respect SBGHPL, we have qualified our audit opinion on financial statements for the year ended March 31, 2026 and March 31, 2025 as well as qualified review conclusion on financial results for the quarter ended December 31, 2025.

The auditors of SJRRPL, SVHL and SNHL have qualified their audit opinion on financial statements for the year ended March 31 ,2026 and March 31, 2025 as well as qualified review conclusion on financial results for the quarter ended December 31, 2025.

Reply to Qualification 4: GST tax credit receivables amounting to Rs. 11949.20 lakhs are included in the consolidated books of accounts as at March 31, 2026 in respect of following subsidiaries. The management of the Group is evaluating various option for utilising above mention tax credits and is confident about the utilization of the credit.

Secretarial Auditors

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the rules made thereunder, the Company had appointed M/s. Ravi Kapoor and Associates, Practicing Company Secretaries, Ahmedabad to undertake the Secretarial Audit for the financial year 2025-26. The Secretarial Audit Report is annexed herewith as Annexure 1 to this Report. The adverse remarks by Secretarial auditor and management reply are given below

Secretarial Audit Report contains following observations and Board of Directors of the Company submitted responses for the same as follows.

1. Pursuant to Regulation 17(1)(c) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI LODR Regulations"), the Company shall have at least six Directors in the Board. After resignation of Mr. Sandip Patel on 31-07-2024, total number of Directors of the Company were five whereas the requirement was of minimum six directors. Therefore Company has not complied with the provisions Regulation 17(1)(c) of SEBI LODR Regulations

2. Pursuant to regulation 31 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI LODR Regulations"), the company has delayed in filing the shareholding pattern with the stock exchange(s) within the prescribe timeline. There was a delay of 4 days with respect to filing shareholding pattern for the quarter ended on 30th June 2025. Thus, to that extent Company has not complied with the provisions of Regulation 31 of SEBI LODR Regulations.

Reply of Directors with respect to qualifications/Observations raised by Secretarial Auditors are as under:

1. Reply to qualification No. 1: The Company has appointed Mr. Ankit Shah and Mr. Jaldeep Patel as Additional Director in category of Non Executive Non Independent Director as on August 13, 2026 and complied the Regulation 17 (c) of SEBI (LODR) Regulations, 2015.

2. Reply to qualification No. 2: Due to unavailability of required information from RTA, we have no submitted the Shareholding Pattern within the prescribe timeline.

Cost Auditors

The Board had, on the recommendation of the Audit Committee, appointed M/s. Rajendra Patel & Associates, Cost Accountants, Ahmedabad to audit the cost records of the Company for the financial year 2026-2027 will on a remuneration of Rs. 75,000/-p.a. The Cost Audit Report for the year 2025-2026 will be filed before the due date with the Ministry of Corporate Affairs. As required under the Act and Rules made thereunder, the remuneration payable to the Cost Auditors is required to be placed before the Members in a general meeting for ratification. Accordingly, a resolution seeking ratification by members for the remuneration payable to M/s. Rajendra Patel & Associates is included at Item No. 4 of the Notice convening 37th Annual General Meeting.

Compliance with Secretarial Standards

The Company is in compliance with the Secretarial Standards on Meeting of the Board of Directors (SS-1) and General Meetings (SS-2) issued by the Institute of Company Secretaries of India and approved by the Central Government.

Reporting of Frauds by Auditors

During the year under review, the Statutory Auditors, Cost Auditors and Secretarial Auditor have not reported any instances of fraud committed against your Company by its officers or employees to the Audit Committee or the Board, under Section 143(12) of the Act.

Corporate Governance

As per Regulation 27 of SEBI (LODR) Regulations, 2015, a separate section on Corporate governance practices followed by the Company, together with a certificate from M/s. Ravi Kapoor & Associates, Practicing Company Secretaries, Ahmedabad, confirming compliance conditions of Corporate Governance forms an integral part of this Report.

Management Discussion and Analysis (MDA)

MDA, for the year under review, as stipulated under Regulation 34(2)(e) of SEBI (LODR) Regulations, 2015 with the Stock Exchanges is presented in a separate section, which forms a part of the Annual Report.

Corporate Social Responsibility

The Annual Report on CSR activities is annexed as Annexure-2 to this Report. The CSR policy is available on the https://www.sadbhavene.com/wp-content/uploads/2021/09/Corporate-Social-Responsibilitv-Policv.pdf

Particulars of Employees and related disclosures

In terms of the provisions of Section 197(12) of the Companies Act, 2013 read with Rules 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, a statement showing the names and other particulars of the employees drawing remuneration in excess of the limits set out in the said rules is attached as Annexure-3 which forms part of this report.

Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Act read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is attached as Annexure 4 which forms part of this report.

Energy Conservation, Technology Absorption and Foreign Exchange Earning and Outgo

The rules regarding conservation of Energy and Technology Absorption are not applicable to the Company. However, details of Foreign Exchange Earnings and Outgo are mentioned below:

Foreign Exchange Earnings: Nil

Foreign Exchange Outgo: Nil

Particulars of Loans, Guarantees or Investments

The provisions of Section 186 (except sub-section) of the Companies Act, 2013, with respect to a loan, guarantee or security is not applicable to the Company as the Company is engaged in providing infrastructural facilities. The details of investment made during the year under review are disclosed in the financial statements.

Contracts and Arrangements with Related Parties

All contracts/arrangements/transactions entered by the Company during the financial year with related parties were in the ordinary course of business and on an arms length basis. Particulars of contract/arrangement/transaction entered into by the Company with related parties which could be considered material in accordance with the policy of the Company on materiality of related party transactions forms integral part of this report in form AOC-2 as per Annexure -5.

The Company in terms of Regulation 23 of SEBI (LODR) Regulations, 2015 submits disclosures of related party transactions on a consolidated basis for the half yearly period upto March 31, 2026, in the format specified in the relevant accounting standards for annual results to the stock exchanges. The said disclosures can be accessed on the website of the Company at www.sadbhaveng.com.

The Policy on materiality of related party transactions and dealing with related party transactions as approved by the Board may be accessed on the Companys website at the link: https://www.sadbhaveng.com/wp-content/uploads/2021/09/RELATED-PARTY- TRANSACTION-POLICY.pdf Your Directors draw attention of the members to notes no. 46 to the Standalone Financial Statements which sets out related party disclosures.

Annual Return

Pursuant to the provisions of Section 92 (3) of the Companies Act, 2013, read with Companies (Management and Administration) Rules, 2014, Company has placed Annual Return in Form MGT-7 for the financial year ended on March 31, 2026 on the website of the Company at www. sadbhaveng. com and the same can be addressed at weblink https://www.sadbhaveng.com/investors/#agm-egm-documents

Internal Financial Controls

The Company has designed and implemented a process driven framework for Internal Financial Controls [IFC] within the meaning of the explanation to section 134(5)(e) of the Act. For the year ended on March 31, 2026, the Board is of the opinion that the Company has sound IFC commensurate with the size, scale and complexity of its business operations. The IFC operates effectively and no material weakness exists. The Company has a process in place to continuously monitor the same and identify gaps, if any, and implement new and/ or improved controls whenever the effect of such gaps would have a material effect on the Companys operations.

Business Responsibility and Sustainability Reporting

As our Company does not fall in one thousand listed entities based on market capitalization as on 31st March, 2026, therefore, Business Responsibility and Sustainability Reporting does not applicable to our company.

Fixed Deposit

During the year under review, your Company has not accepted any fixed deposits from the public. Pursuant to Section 73 of the Act read with the Companies (Acceptance of Deposits) Rules, 2014. Thus, as on 31st March, 2026, there were no deposits which were unpaid or unclaimed and due for repayment.

Code for Prevention of Insider Trading

Your Company has adopted a Code of Conduct to regulate, monitor and report trading by designated persons and their immediate relatives as per the requirements under the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015. This Code of Conduct also includes code for practices and procedures or fair disclosure of unpublished price sensitive information which has been made available on the Companys website at www.sadbhaveng.com.

The details of application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year and upto the approval of Directors Reports along with their status.

Insolvency Proceedings to which Company is/was Respondent mentioned below:

S Particulars No.	Type of Creditor	Status as at the end of financial year
1 D Thakkar Constructions Pvt. Ltd	Operational Creditor	Pending before the Honble NCLT Bench, Mumbai
2 OM Prakash Bijarnia Sole Proprietor of M/s. Shri Ram Infra	Operational Creditor	Pending before the Honble NCLT Bench, Ahmedabad
3 IDBI Bank Limited	Financial Creditor	Pending before the Honble NCLAT Bench, New Delhi
4 N S Company	Operational Creditor	Pending before the Honble NCLT Bench, Ahmedabad
5 A.R. Company	Operational Creditor	Pending before the Honble NCLT Bench, Ahmedabad
6 Ajay Protech Pvt Ltd	Operational Creditor	Pending before the Honble NCLT Bench, Ahmedabad
7 Potaliya Enterprises Pvt Ltd	Operational Creditor	Pending before the Honble NCLT Bench, Ahmedabad
8 Suwarna Buildcon Private Limited	Operational Creditor	Pending before the Honble NCLT Bench, Ahmedabad
9 Suwarna Buildcon Private Limited	Operational Creditor	Pending before the Honble NCLAT Bench, New Delhi
10 Catalyst Trusteeship Limited	Financial Creditor	Pending before the Honble NCLT Bench, Ahmedabad

The Details of difference between amount of the valuation done at the time of one-time settlement and the valuation done while taking loan from the banks or financial institutions along with the reasons thereof Not Applicable during the year under review.

General

Your Directors state that 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:

Details relating to deposits covered under Chapter V of the Act.

1. Issue of equity shares with differential rights as to dividend, voting or otherwise.

2. Issue of shares (including sweat equity shares) to employees of the Company under any scheme.

3. Neither the Managing Director nor the Whole-time Directors of the Company receive any commission from the Company and

4. not disqualified from receiving any remuneration or commission from any of subsidiaries of the Company.

5. All properties and insurable interests of the company to the extent required have been adequately insured.

6. No significant and material orders were passed by the Regulators or Courts or Tribunals which impact the going concern status and the Companys future operations.

Industrial Relations

The Company maintained healthy, cordial and harmonious industrial relations at all levels. The enthusiasm and unstinting efforts of employees have enabled the Company to remain at the leadership position in the industry and the Management appreciates the employees of all cadres for their dedicated services to the Company.

Acknowledgments

Your Directors place on record their gratitude to the Ministry of Corporate Affairs, BSE Limited, National Stock Exchange of India Limited, Securities and Exchanges Board of India, Central Government, State Governments and Companys Bankers for the assistance, co-operation and encouragement they extended to the Company. Your Directors also wish to place on record their sincere thanks and appreciation for the continuing support and unstinting efforts of investors, vendors, supplier, sub-contractors, business associates and employees in ensuring an excellent all around operational performance.

	For and on behalf of the Board of Directors
	Shashin V. Patel
Place: Ahmedabad	Chairman & Managing Director
Date: August 13, 2026	DIN No.: 00048328