of Ind AS 115, ‘Revenue from contract
with customers’.

The Financial guarantees issued to third parties
on behalf of subsidiaries/Jointly Controlled
Operations are recorded at fair value. The same
is recognised as Other income in the statement
of Profit and Loss.

3.20.6 Derecognition of financial liabilities

The Company derecognises financial liabilities
when, and only when, the Company’s obligations
are discharged, cancelled or have expired.
An exchange with a new lender of debt instruments
with substantially different terms is accounted for as
an extinguishment of the original financial liability and
the recognition of a new financial liability. Similarly, a
substantial modification of the terms of an existing
financial liability (whether or not attributable to the
financial difficulty of the debtor) is accounted for as an
extinguishment of the original financial liability and the
recognition of a new financial liability. The difference
between the carrying amount of the financial liability
derecognised and the consideration paid and payable
is recognised in the Statement of Profit and Loss.

3.20.7 Trade Acceptances

Trade Acceptances represents amount payable
towards arrangements wherein banks and financial
institutions make direct payments to the Company’s
suppliers for materials and services. The banks and
financial institutions are subsequently repaid by the
Company at the due date of such acceptances.
Under such arrangements, the Company is
eligible to receive extended credit period benefit.
Further, the bank charges interest to the Company
for extended credit period. For the purposes of
cash flow presentation, the economic substance of
these transactions is determined to be operating in
nature, and accordingly, settlement of such trade
acceptances by the Company is treated as cash flows
from operating activity.

3.21 Derivative financial instruments

The Company enters into a variety of derivative financial
instruments to manage its exposure to foreign exchange
rate risks and commodity price risks. These instruments
include foreign exchange forward contracts and
commodity contracts - Over the Counter (OTC) derivatives.
Derivatives are only used for economic hedging purposes
and not as a speculative investment.

Derivatives are initially recognised at fair value at the
date the derivative contracts are entered into and are
subsequently remeasured to their fair value at the end
of each reporting period. The resulting gain or loss is
recognised in the Statement of Profit and Loss immediately
unless the derivative is designated and effective as a
hedging instrument, in which event the timing of the
recognition in the Statement of Profit and Loss depends
on the nature of the hedging relationship and the nature of
the hedged item.

3.22 Hedge accounting

The Company designates certain hedging instruments,
which include derivatives in respect of foreign currency risk
and commodity price risk as cash flow hedges. Hedges of
foreign exchange risk and commodity price risk for highly
probable forecast transactions are accounted for as cash
flow hedges. Hedges of the fair value of recognised assets
or liabilities are accounted for as fair value hedges.

At the inception of the hedge relationship, the entity
documents the relationship between the hedging instrument
and the hedged item, along with its risk management
objectives and its strategy for undertaking various hedge
transactions. Furthermore, at the inception of the hedge and
on an ongoing basis, the Company documents whether the
hedging instrument is highly effective in offsetting changes
in fair values or cash flows of the hedged item attributable
to the hedged risk.

3.22.1 Cash flow hedges that qualify for hedge accounting

The effective portion of changes in the fair value of
derivatives that are designated and qualify as cash
flow hedges is recognised in other comprehensive
income and accumulated under the heading of cash
flow hedging reserve. The gain or loss relating to the
ineffective portion is recognised immediately in the
Statement of Profit and Loss. For cash flow hedging
relationships that span multiple reporting periods,
the ineffectiveness for the period is calculated as the
difference between the cumulative ineffectiveness
as at reporting date (based on the ‘lesser of’ the
cumulative change in the fair value of the hedging
instrument and the hedged item), and the cumulative
ineffectiveness reported in prior periods.

Amounts previously recognised in other comprehensive
income and accumulated in equity relating to effective
portion as described above are reclassified to the
Statement of Profit and Loss in the periods when the
hedged item affects profit or loss, in the same line
as the recognised hedged item. However, when the
hedged forecast transaction results in the recognition

of a non-financial asset or a non-financial liability,
such gains and losses are transferred from equity (but
not as a reclassification adjustment) and included in
the initial measurement of the cost of the non-financial
asset or non-financial liability.

Hedge accounting is discontinued when the hedging
instrument expires or is sold, terminated, or when it
no longer qualifies for hedge accounting. Any gain or
loss recognised in other comprehensive income and
accumulated in equity at that time remains in equity
and is recognised when the forecast transaction
is ultimately recognised in the Statement of Profit
and Loss. When a forecast transaction is no longer
expected to occur, the gain or loss accumulated in
equity is recognised immediately in the Statement of
Profit and Loss.

Where the hedged item subsequently results in the
recognition of a non-financial asset, the deferred
hedging gains and losses, are included within the initial
cost of the asset. The deferred amounts are ultimately
recognised in profit or loss as the hedged item affects
profit or loss through cost of material consumed.

3.23 Cash and cash equivalents

For the purpose of presentation in statement of cash
flows, cash and cash equivalents include cash on hand,
deposits held at call with financial institutions, other short
term highly liquid investments with original maturities of
3 months or less that are readily convertible to known
amount of cash and which are subject to an insignificant
risk of change in value.

3.24 Segment reporting

The Company delivers projects in key infrastructure sectors
such as power transmission and distribution, railways track
laying, electrification, civil, urban infrastructure, oil and gas
pipelines etc. through its various Strategic Business Units
(SBUs). The nature of the entire business remains within the
boundaries of development of infrastructure, adhering to a
consistent execution methodology used across stages such
as Design/Engineering, Procurement, and Construction.
Each project may have distinct characteristics in terms
of scale and type, but the fundamental process centered
around construction/erection is consistent across all these
SBUs. The class of the customers across segment is
primarily Government, Public Sector undertaking (PSUs),
State Governments, Utilities and large Private Sector.
Over long-term basis, the margin profiles of each of these
SBUs is also in the similar range, however the same may
differ on project to project basis in the short term.

Considering the similarity in the economic characteristics
and nature of these Engineering, Procurement, and
Construction (‘EPC’) businesses, the Company has
applied aggregation criteria for reportable segments under
Ind AS 108 and disclosed EPC segment as one of the
reportable segment.

3.25 Earnings per share

Basic earnings per share is calculated by dividing:

• the profit attributable to owners of the Company

• by the weighted average number of equity shares
outstanding during the financial year, adjusted for
bonus elements in equity shares issued during the
year and excluding treasury shares.

Diluted earnings per share adjusts the figures used
in the determination of basic earnings per share to
take into account:

• the after-income tax effect of interest and other
financing costs associated with dilutive potential
equity shares and

• the weighted average number of additional equity
shares that would have been outstanding assuming
the conversion of all dilutive potential equity shares.

3.26 Exceptional items

Exceptional Items include income/expenses that are
considered to be part of ordinary activities, however of
such significance and nature that separate disclosure
enables the users of financial statements to understand the
impact in more meaningful manner. Exceptional Items are
identified by virtue of their size, nature and incidence.

3.27 Share Issue Expenses

The transaction costs of an equity transaction are
accounted for as a deduction from equity to the extent
they are incremental costs directly attributable to the
equity transaction.

3.28 Rounding off amounts

All amounts disclosed in the financial statements and notes
have been rounded off to the nearest crore as per the
requirement of Schedule III, unless otherwise stated.

4. CRITICAL ESTIMATES AND JUDGEMENTS

In the application of the Company’s accounting policies,
which are described in Note 3, the Management of the
Company are required to make judgements, estimates
and assumptions about the carrying amounts of assets
and liabilities that are not readily apparent from other

During the year, certain land parcels previously classified as Property, Plant and Equipment were reclassified to Investment Property
as the Company commenced holding them for earning rental income . The carrying amount on the date of transfer has been
considered as deemed cost in accordance with Ind AS 40

Note 5.(a)(iii)

Fair value of investment properties

The fair value of investment properties as at 31st March, 2026 have been arrived on the basis of valuation carried out by an external
independent valuer who is registered under Rule 2 of the companies (Registered Valuers and Valuation) Rules, 2017

The fair value measurement for all the investement properties has been categorised as level 3 based on the inputs to valuation
technique used. Considering the type of the assets, market approach (sales comparable method is adopted) to estimate the fair
value of the subject properties. Fair value of investment properties are given below:

Brands include brand of the power transmission business amounting ' 240 crore which was acquired by the Company under the
High Court approved Composite Scheme of Arrangement (the ‘Scheme’) in an earlier year. In terms of the Scheme, the brand is
being amortised by the Company over its useful life, which based on an expert opinion is estimated to be of 20 years. The remaining
amortisation period is NIL (as at March 31,2025 - Nil).

Note 8.2 :

Non Compete fees paid on acquisition of KEC Spur Infrastructure Private Limited (formerly known as Spur Infrastructure Private
Limited) are amortized on a straight line basis over the term of Non Compete agreement i.e. 3 years. The remaining amortisation
period is Nil. (as at March 31,2025 Nil).

Note 9.1

This represents investment in preference shares of KEC Investment Holdings, Mauritius. These shares are compulsorily convertible
into equity shares with a conversion ratio of one is to four. The issuer has the option of early conversion as well with above fixed
ratio. There is no mandatory dividend payout year on year. Considering the said terms, the investment has been classified as equity.

Note 9.2

As per Article of Association of the ‘RP Goenka Group of Companies Employees Welfare Association (Entity)’, no portion of income
or property shall be paid or transferred directly or indirectly, by way of dividend, bonus or otherwise by way of profit to members
of the Entity. Any surplus upon winding up or dissolution of the Entity shall not be distributed amongst the members of the Entity
but shall be given or transferred to such other companies having objects similar to the objects of this Entity, to be determined by

the members of the Entity at or before the time of dissolution or in default thereof, by the High Court of Judicature that has or may
acquire jurisdiction in the matter.

As, there are significant restrictions on the ability of the Entity to transfer funds to the Company in the form of cash dividends, the
fair value of the Company’s investment in the Entity is concluded to be equal to cost.

Note 9.3

a) I n earlier years, the Company had recognised an impairment provision of ' 172.79 crore in respect of its investments in
KEC Investment Holdings, Mauritius due to significant losses incurred by the Company’s step down subsidiary in Brazil i.e.
SAE Towers Brasil Torres de Transmissao Ltda (a wholly owned subsidiary of SAE Towers Holdings LLC, USA). Provision for
impairment of investment was recognised to the extent the recoverable value of investments was lower than the carrying value of
investments. The recoverable value of investments was calculated using value in use method. The value in use was determined
based on discounted cash flow projections prepared after considering significant judgments while finalizing assumptions on
growth in revenues, EBITDA and discount rates.

During the year, the Company has reversed the provision for impairment of its investment in KEC Investment Holdings, Mauritius
amounting to ' 166 crores, based on the increase in recoverable amount as compared to the carrying value of the investment
and has been credited to the Statement of Profit and Loss under “’’Exceptional Items””. During the year, the Board of directors
of the Company have approved the sale of 99% of equity shares (ordinary shares) and 100% preference shares held by the
Company in its wholly owned subsidiary, KEC Investment Holdings, Mauritius to another wholly owned subsidiary, KEC Towers
LLC, for which the consideration will be shares of KEC Towers LLC, which is subject to approval from regulatory authorities.

b) In earlier years, the Company had also made below impairment provisions for its investments in various subsidiaries.

Impairment was provided due to losses incurred by these subsidiaries from its operations. Provision for impairment of

investment was calculated by comparing the recoverable value of these investments (as per value in use) and the carrying
value of investments.

i) Impairment of Investment in RPG Transmission Nigeria Limited : ' 0.17 crore.

ii) Impairment of Investment in KEC Power India Private Limited : ' 0.50 crore.

Note 9.4

During the previous year, the Company (including nominee shareholders) has acquired 4,845,000 shares of ' 10 each at premium of
' 240 per share in its wholly owned subsidiary KEC Asian Cables Limited. (Refer note 76).

Note 9.5

During the previous year, the Company has acquired 2,50,000 shares of ' 10 each at premium of ' 240 per share in its wholly owned
subsidiary of KEC Power India Private Limited.

b) (i) KEC International Limited (the Company) holds 51.10% share capital in ‘Al-Sharif Group and KEC Limited’, located in
Saudi Arabia (Al Sharif JV), having a joint arrangement with the JV partner Power Line Contracting Company which hold
48.90% in Al Sharif JV. Al Sharif JV is a “Subsidiary” of the Company under the Companies Act, 2013. However, based
on the control assessment under Ind AS, considering the nature of arrangement, Al Sharif JV has been classified as jointly
controlled operation.

In addition to this, Al Sharif JV is a limited liability company whose legal form confers separation between the parties to
the joint arrangement and the Company itself, the internal agreements (contractual arrangements) entered into between
the parties to the joint arrangements for the execution of projects (turnkey contracts) reverses or modifies the rights
and obligations conferred by the legal form, and establishes and define their respective rights and obligations on these
projects. As per these contractual arrangements, the parties to the joint arrangement have rights to the assets, and
obligations for the liabilities, relating to the arrangement.

ii) The Company accounts for assets, liabilities, revenue and expenses relating to its interest in jointly controlled operations
based on the internal agreements/ arrangements entered into between the parties to the joint arrangements for execution
of projects, which in some cases are different than the ownership interest disclosed above.

Accordingly, the Company has recognised its share in total income from operations ' 3,904.11 crore (for the year ended
March 31,2025'3,292.26 crore), total expenditure (including tax) ' 3,618.01 crore (for the year ended March 31, 2025
' 3,092.23 crore), total assets as at March 31,2026'4,301.45 crore (as at March 31,2025'3,308.79 crore crore) and total
liabilities as at March 31, 2026'3,516.26 crore (as at March 31,2025'2,692.39 crore) in Jointly Controlled Operations.

iii) Apart from the Joint Venture (JV) agreements disclosed above in note no. 49 (a), the Company has entered into certain
Joint Venture (JV) agreements with other entities for execution of various projects. Though the legal form of all these
joint arrangements is a “joint venture”, these JVs are not jointly controlled by both the parties as per the requirements
of “IND-AS 111 - Joint Arrangements”. The work is carried out by each JV partner based on the scope defined for
respective parties. Accordingly, the Company has recognised revenue, expenses, assets and liabilities related to its own
share of work in financial statement and respective financial statement of these JVs are not considered for the purpose
of consolidation.

iv) Figures in respect of the Company’s Jointly Controlled Operations as mentioned above, have been incorporated on the
basis of financial statements audited by the auditors of the respective Jointly Controlled Operations.

The Company recognised revenue amounting to ' 228.02 crore (for the year ended March 31, 2025: ' 128.39 crore) in the current
reporting period that was included in the amount due to customers for contract works balance i.e. contract liabilities as of
March 31,2025.

Note 50.2 Unsatisfied performance obligations

The aggregate amount of transaction price allocated to performance obligations that are unsatisfied as at the end of reporting period
March 31, 2026 is ' 31,230 crore (as at year ended March 31, 2025, ' 28,193 crore). On an average, transmission, distribution,
transportation and civil composite contracts have a life cycle of 2-3 years and other businesses performance obligations are met
over a period of one or less than one year. Management expects that around 60% to 70% of the transaction price allocated to
unsatisfied contracts as of March 31, 2026 will be recognised as revenue during the next reporting period depending upon the
progress on each contract. The remaining amount is expected to be recognised in subsequent years, largely in year 2. The amount
disclosed above does not include variable consideration.

Note 50.3

In case of transmission and distribution projects, where the goods are procured from a third party, the Company makes
on the impact of revenue recognition with respect to uninstalled materials. Considering, the Company is significa
designing and manufacturing the procured material and there is no significant time gap involved between transfer
installation, there is no material impact on revenue recognized. There is a significant management judgement invo
this assessment.

(a) Total cash outflow for leases during current financial year is ' 52.27 crore (previous year : ' 30.78 crore)

(b) Additions to the right of use assets during the current financial year is ' 51.97 crore (previous year : ' 128.18 crore)

(c) During the previous year ended 31st March 2025, the Company has sold and leased back assets with written down value
aggregating ' 69.08 crore for a sale consideration of ' 70.07 crore. The assets were leased back for a lease term of 5
years and all the payments in the lease agreements have been included in the measurement of lease liabilities. As per the
requirements of Ind AS 116, the right of use assets was recognised to the extent of the written down value of the assets
and no profit or loss has been recognised in respect of this transaction. The cash flow from sale of assets have been
presented separately as part of investing activity in the Statement of cash flows.

(d) Payments associated with short-term leases of equipment and vehicles are recognised on straight line basis as an
expense in profit or loss.

(e) Short term leases are leases with a lease term of 12 months or less. There are no leases of low value assets during the
current and previous year.

(f) When measuring lease liabilities for leases that were classified as operating leases, the Company discounted lease
payments using its incremental borrowing rate. The weighted average incremental borrowing rate applied is 8.96% p.a.
(Previous year: 9.10% p.a.)

NOTE 52 - CAPITAL MANAGEMENT

The Company manages its capital to ensure that the Company will be able to continue as a going concern while maximising the
return to shareholders through the optimisation of the debt and equity. The capital structure of the Company consists of net debt
(borrowings as detailed in Notes 24 and 29 offset by cash and cash equivalents in Note 16) and total equity of the Company.
The Company is not subject to any externally imposed capital requirements.The Company monitors capital using a gearing ratio,
which is net debt divided by total equity.

B Financial risk management

The Company’s Corporate Treasury function provides services to the business, co-ordinates access to domestic and
international financial markets, monitors and manages the financial risks relating to the operations of the Company. These risks
include market risk (including currency risk, interest rate risk and commodity price risk), credit risk and liquidity risk.

Note 53B.1: Market risk

The Company seeks to minimise the effects of currency risk and commodity price risk by using derivative and non derivative financial
instruments to hedge risk exposures. The Company has Risk Management Policies to mitigate the risks in commodity prices and
foreign exchange. The use of financial derivatives and non-derivatives is governed by the Company’s policies approved by the Board
of Directors (BOD), which provide written principles to use financial derivatives and non-derivative financial instruments, to hedge
currency risk and commodity price risk. The Company does not enter into or trade financial instruments, including derivative financial
instruments and non-derivative financial instruments, for speculative purposes.

The Treasury Department prepares and submits the report on performance along with the other details relating to forex and
commodity transaction to the Risk Management Committee. The periodical forex management report and commodity risk report as
reviewed and approved by the Risk Management Committee is placed before the Audit Committee for review.

The Company’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates
(see Notes 53B.1 (a) and 53B.1 (b) below) and commodity prices (see Note 53B.1 (c) below). The Company enters into a variety of
derivative financial instruments to manage its exposure to foreign currency risk, interest rate risk and commodity price risk including:

- foreign currency forward contracts to hedge the exchange rate risk arising from execution of international projects.

- Commodity Over the Counter (OTC) derivative contracts to hedge the price risk for base metals such as Copper,
Aluminium, Zinc and Lead.

Derivatives are only used for economic hedging purposes and not as speculative investments. All such transactor
out within the approved guidelines set by the Board of Directors.

(a) Foreign currency risk management

The Company operates internationally and is exposed to foreign exchange risk arising from foreign currency
in various currencies. Foreign currency risk arises from future commercial transactions and recognised assets
denominated in a currency that is not the Company’s functional currency (INR). The risk is measured through

(b) Interest rate risk management

The Company is exposed to interest rate risk because the Company borrows funds at both fixed and floating interest rates.
The Company’s exposure to changes in interest rates relates primarily to the Company’s outstanding floating rate debt.
Local currency debts are on fixed rate basis and hence not subject to interest rate risk. Foreign currency debts which are linked
to international interest rate benchmarks like SOFR are subject to interest rate risk.

Following is the foreign currency exposure of the Company:Sensitivity for above net exposures:

The sensitivity of profit or loss to changes in the exchange rates arises mainly from foreign currency denominated
financial instruments.

The impact on other components of equity arises from financial instruments in the books of jointly controlled operations and
branches whose functional currency is other than INR and also on account of Foreign currency derivative contracts which are
designated as Cash flow Hedges.

5% appreciation / depreciation in the foreign currency will have following impact on profit / (loss) before tax and equity
[gains / (losses)]:

Interest rate sensitivity

The sensitivity analysis below have been determined based on the exposure to interest rates for non-derivative instruments
at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability
outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used
for the purpose of sensitivity analysis.

If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Company’s :

Profit for the year ended March 31, 2026 would decrease/increase by ' 10.93 crore (for the year ended March 31, 2025:
decrease/increase by ' 4.95 crore). This is mainly attributable to the Company’s exposure to interest rates on its variable
rate borrowings.

(c) Commodity price risk

The Company is exposed to movement in metal commodity prices of Copper, Aluminium, Zinc and Lead. Most of the Company’s
contracts with the Indian customers are backed by a price variation for most of these metals. However, profitability in case
of firm price orders is impacted by movement in the prices of these metals. The Company has a well defined hedging policy
approved by Board of Directors of the Company, which to a large extent takes care of the commodity price fluctuations and
minimizes the risk. For base metals like Aluminium, Copper, Zinc and Lead, the Company either places a firm order on the
supplier or hedges its exposure on the London Metal Exchange (LME) directly. Refer Note 53C, for further details on commodity
derivative contracts

Note 53B.2 Liquidity risk management

The Board of Directors of the Company have established an appropriate liquidity risk management framework for the management
of the Company’s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages
liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast
and actual cash flows, and by matching the maturity profiles of the financial assets and liabilities.

The following table details the Company’s remaining contractual maturity for its financial liabilities with agreed repayment periods.
The table has been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the
Company can be required to pay. The table includes both interest and principal cash flows. To the extent that interest flows are linked
to floating rate, the undiscounted amount is derived from interest rate at the end of the reporting period.

The Company has access to various fund and non-fund based bank financing facilities. The amount of unused borrowing facilities
(fund and non-fund based) available for future operating activities and to settle commitments is ' 11,484.84 crore as at March 31,
2026 (' 8,003.79 crore as at March 31,2025).

Note 53B.3 Credit Risk Management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company.
The Company is exposed to credit risk from its operating activities (primarily trade receivables and contract assets) and from its
investing activities, including deposits with banks, foreign exchange transactions and other financial instruments. The Company’s
major customers includes government bodies and public sector undertakings. Further, many of the International projects are funded
by the multilateral agencies such as World Bank, African Development Bank, Asian Development Bank, etc. For private customers,
the Company evaluates the creditworthiness based on publicly available financial information and the Company’s historical
experiences. The Company’s exposure to its counterparties are continuously reviewed and monitored by the Chief Operating
Decision Maker (CODM).

Credit period varies as per the contractual terms with the customers. The Company does not have significant financing component
in the contracts with customers.

The Company directly reduces the gross carrying amount of a financial asset when the Company has no reasonable expectations of
recovering a financial asset in its entirety or a portion thereof. The amounts of financial assets are net of an allowance for expected
credit losses, estimated by the Company and based, in part, on the age of specific receivable balance and the current and expected
collection trends. When assessing the credit risk associated with its receivables, the Company also considers the other financial and
non-financial assets and liabilities recognized within the same project to provide additional indications on the Company’s exposure
to credit risk. As such, in addition to the age of its financial assets, the Company also considers the age of its contracts in progress,
as well as the existence of any deferred revenue or down payments on contracts on the same project or with the same client.

The Company has used practical expedient by computing expected credit loss allowance for trade receivable and contract assets
by taking into consideration payment profiles of sales over a period of 36 months before the reporting date and the corresponding
historical credit loss experiences within this period for each Strategic Business Unit (SBU). The historical loss rates are adjusted to
reflect current and forward looking information taking into account the macro economic factors affecting the ability of the customers
to settle the receivables. The expected credit loss is based on the ageing of the days, the receivables due and the expected credit

In addition, the Company is exposed to credit risk in relation to financial and performance guarantees given by the Company on behalf
of its subsidiaries and jointly controlled operations (net of Company’s share). The Company’s maximum exposure in this respect
is the maximum amount the Company could have to pay if the guarantee is called on (net of Company’s share in jointly controlled
operations), as at March 31, 2026 is ' 2,631.11 crores (as at March 31,2025; ' 1,997.41 crore). These financial and performance
guarantees have been issued to the banks / customers on behalf of the subsidiaries and jointly controlled operations under the
agreements entered into by the subsidiaries / jointly controllled operations with the banks / customers. Based on management’s
assessment as at the end of the reporting period, the Company considers the likelihood of any claim under the guarantee as remote.

Cash and cash equivalents:

The cash and cash equivalents are held with bank and financial institution counterparties with good credit rating.

Other Bank Balances:

Other bank balances are held with bank and financial institution counterparties with good credit rating.

Derivatives:

The derivatives are entered into with bank and financial institution counterparties with good credit rating.

Other financial assets:

Other financial assets are neither past due nor impaired.

Note 53C Derivative Financial instruments

The Company has adopted a Risk Management Policy approved by the Board of Directors of the Company for managing the
foreign currency exposure. The policy enumerates the mechanism for Risk Identification, Risk Measurement and Risk Monitoring.
The policy has approved a set of financial instruments for hedging foreign currency risk. The Company mainly uses forward contracts
to manage the foreign currency risk.

NOTE 54 - EMPLOYEE BENEFIT PLANS
Brief description of the plans1 Defined contribution plans

(A) Superannuation

All eligible employees are entitled to benefits under Superannuation, a defined contribution plan. The Company makes
yearly contributions until retirement or resignation of the employee. The Company recognises such contributions as an
expense when incurred. The Company has no further obligations beyond its yearly contribution.

(B) Provident Fund

The Company makes contribution to respective regional provident fund commissioners in relation to the workers employed
at factories located at Butibori, Jaipur & Jabalpur. The Company recognises such contributions as an expense when
incurred. The Company has no further obligations beyond its yearly contribution.

(C) Employees’ State Insurance Corporation (ESIC)

The Company makes contribution towards Employees State Insurance scheme operated by ESIC Corporation.
The contributions payable to these plans by the Company are at rates specified in the rules of the scheme. The Company
recognises such contributions as an expense when incurred. The Company has no further obligations beyond its
yearly contribution.

(D) Employees’ Pension Scheme (EPS)

The Company pays pension fund contributions to publicly administered pension funds as per regulations. All eligible
employees are entitled to benefits under employees pension scheme, a defined contribution plan. The Company makes
monthly contributions until retirement or resignation of the employee. The Company recognises such contributions as an
expense when incurred. The Company has no further obligations beyond its monthly contribution.

2 Defined Benefit Plans

(A) Gratuity

(i) Company and its Jointly Controlled Operations in India

The Company and its jointly controlled operations (JCO) in India has an obligation towards gratuity, a funded defined
benefit retirement plan covering eligible employees. The plan provides for lump sum payment to vested employees at
retirement, death while in employment or on termination of the employment of an amount equivalent to 15 days / one
month salary, as applicable, payable for each completed year of service or part thereof in excess of six months in terms
of the Gratuity scheme of the Company/JCOs in India or as per payment of the Gratuity Act, 1972, whichever is higher.

The Company has set up an income tax approved trust fund to finance the plan liability. The trustees of the trust fund are
responsible for the overall governance of the plan. The Company makes contribution to the plan. There are no minimum
funding requirement for the plan in India. The trustees of the gratuity fund have a fiduciary responsibility to act according
to the provisions of the trust deed and rules.

(ii) Jointly Controlled operation in Saudi (Al Sharif JV)

The Jointly Controlled Operation has an obligation towards an unfunded defined benefit retirement plan i.e. End Service
Benefit plan, (akin to gratuity) covering eligible employees. The benefits payable are as under:

Note: The above amounts includes applicable interest and penalty under the relevant provisions. Further, future ultimate outflow
of resources embodying economic benefits in respect of the above matters are uncertain as it depends on the final outcome of
the matters involved.

* These mainly relate to the issues of applicability, issue of disallowance of cenvat / VAT credit and in case of Sales Tax / Value added tax,
also relate to the issue of submission of relevant forms and the Company’s claim of exemption for MVAT on export sales and services.

^AA These includes civil suits as well as Industrial relations and labour laws cases.

# Excluding financial guarantees referred to in Note 53B.3

Figures in respect of the Company’s overseas branches in Abu Dhabi, Afghanistan, Algeria, Armenia, Bangladesh, Benin, Bhutan,
Burkina Faso, Burundi, Cameroon, Egypt, Ethiopia, Georgia, Ghana, Guinea, Ivory Coast, Jordan, Kenya, Kuwait, Libya, Malaysia,
Mali, Moldova, Morocco, Mozambique, Nepal, Nigeria, Oman, Papua New Guinea, Philippines, Senegal, Sierra Leone, South Africa,
Sri Lanka, Tanzania, Thailand, Togo, Tunisia, Uganda, and Zambia have been incorporated on the basis of financial statements (the
Branch Returns) audited by the auditors of the respective branches.

NOTE 61:

Commercial papers (CP) raised by the Company are unsecured in nature for tenure upto ninety days. These CP are having a Credit
Rating of CRISIL A1 and IND A1 and are listed on BSE Limited. The Company redeemed CP on the relevant due dates during the
current financial year.

NOTE 62:

In the matter relating to an investigation by a government agency in connection with a transmission project, involving one Public
Sector Undertaking (“PSU”) official and an employee of the Company, the Chargesheet has been filed and the Court has taken
cognizance of the same. The matter is presently sub-judice. The Company upholds the highest standards of corporate governance,
ethics, and compliance in all its operations and conducts its business with integrity, transparency, and adherence to applicable
laws and regulations. The Company is of the view that the case will not have any material impact on the operations and financial
statements of the Company.

NOTE 63:

During the previous year, the Company raised capital of ' 870.16 Crores through Qualified Institutions Placement (“QIP”) of equity
shares. The Committee of Directors of the Company, at its meeting held on September 26, 2024, approved the allotment of 91,11,630
equity shares of face value ' 2 each to eligible investors at an issue price of ' 955 per equity share (including a premium of ' 953 per
equity share). QIP share issue expenses amounting to ' 19.04 crore has been adjusted from securities premium.

The Auditors of Branch located in South Africa have given a Material uncertainty related to going concern paragraph, in relation to
going concern assumption used for preparation of financial statements. Basis Company’s assessment, the Company can adequately
source the funding required at this branch.

NOTE 66 - DETAILS OF BENAMI PROPERTY HELD:

No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

NOTE 67 - WILFUL DEFAULTER:

The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

NOTE 69 - DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY:

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

NOTE 70 - COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES:

The Company has complied with the number of layers prescribed under the Companies Act, 2013.

NOTE 71 - UNDISCLOSED INCOME:

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income
Tax Act, 1961, that has not been recorded in the books of account.

NOTE 72 - VALUATION OF PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSET:

The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during
the current or previous year.

NOTE 73 - REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES:

There is a certain charge which is historical in nature, and it involves practical challenges in obtaining no-objection certificates
(NOCs) and/or getting requisite formalities completed towards charge satisfaction from the charge holder of such charge, despite
repayment of the underlying loans. The Company is in the process of getting the charge satisfaction e-form filed and processed with
MCA, within the timelines, as and when it receives NOCs/confirmation from the respective charge holder.

NOTE 74 - UTILISATION OF BORROWINGS AVAILED FROM BANKS AND FINANCIAL INSTITUTIONS:

The borrowings obtained by the Company from banks and financial institutions have been applied for the purposes for which such
loans were taken.

NOTE 75 - EXCEPTIONAL ITEMS:

(a) Reversal of impairment of investment in subsidiary:

During the year ended March 31, 2026, the Company reassessed the recoverable value of its investment in wholly owned
subsidiary, KEC Investment Holdings, Mauritius. Based on the increase in recoverable amount as compared to the carrying
value of the investment, the Company has reversed the provision for impairment loss of its investment in KEC Investment
Holdings, Mauritius amounting to ' 166 crores.

(b) Implementation of New Labour Codes:

The Government of India notified the four Labour Codes (‘New Labour Codes’) effective November 21, 2025. The Company
has ascertained its estimated employee benefit obligations under the New Labour Codes. Accordingly, the Company has
recognized incremental estimated employee benefit obligations aggregating ' 52.29 crore as an “exceptional item” on account
of employees past services, based on actuarial valuation and best estimate in accordance with Ind AS 19 - ‘Employee Benefits’
and consistent with guidance provided by the Institute of Chartered Accountants of India.

NOTE 76 -

Pursuant to the approval of the Board of Directors on November 04, 2024, the Company has signed the Business Transfer Agreement
(“BTA”) with KEC Asian Cables Limited (“KACL”), a wholly owned subsidiary, on December 30, 2024, for transfer of its cable business
to KACL, as a going concern, on slump sale basis, for a lump sum consideration of ' 125 Crore. The consideration is based on
fair market value determined as per Rule 11UAE of the Income Tax Rules 1962. Further, consequent to the completion of closing
conditions in terms of the said BTA, the cable business of the Company is transferred to KACL effective January 01,2025.

The difference between the consideration received in cash and the carrying value of the net assets of the cable business amounting
to ' 27.03 crores has been accounted as a reduction from the carrying value of investments in KEC Asian Cables Limited taking into
account the substance of the transaction with its wholly owned subsidiary.

NOTE 77:

The Board of Directors of the Company, at their meeting held on May 16, 2026, approved the Scheme of Merger by Absorption of KEC
Spur Infrastructure Private Limited, a wholly owned subsidiary, with the Company, under Sections 230 to 232 and other applicable
provisions of the Companies Act, 2013 read with relevant rules and regulations framed thereunder, subject to requisite approvals.

NOTE 78:

Certain projects of the Company in Afghanistan which were earlier on hold due to a force majeure event in the past, have
resumed execution and the said projects are funded by international agency (World Bank). Further, the Company has signed an
acknowledgement certificate in January 15, 2026 and April 22, 2026 towards full and final settlement of dues in respect of two
projects funded by ADB. The Company’s net assets exposure in these projects, including its Afghanistan branch, is ' 177 crore.

NOTE 79:

Previous period figures have been regrouped / recasted / reclassified wherever necessary to confirm with current year presentation.
NOTE 80:

The Company has approved its financial statements in its board meeting dated May 16, 2026.

Signatures to Notes 1 to 80 which form an integral part of financial statements.