H.G. Infra Engineering Limited — Audit Report / Information 2020

Jun 24, 2020

June 24, 2020

BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai- 400 001

National Stock Exchange of India Limited Exchange Plaza, C-1, Block G Bandra Kurla Complex, Bandra (East) Mumbai- 400 051

Scrip Code- 541019

Scrip Symbol- HGINFRA

Dear Sir"adam,

Sub: Audited Standalone and Consolidated Financial Results of the Comoan`r for the ciuarter and Year ended March 31. 2020

Pursuant to Regulation 33 and other applicable regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we enclosed herewith the Audited Standalone and Consolidated Financial Results of the Company for the quarter and year ended March 31, 2020 along with Auditors' Reports issued by our Statutory Auditors on the said results. The results were duly approved by the Board of Directors at its meeting held today i.e, June 24, 2020.

We also enclose herewith the declaration on Unmodified Opinion on Auditors' Report issued by our Statutory Auditors under Regulation 33(3)(d) of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015.

The above information is also being uploaded on the Company's website at www.hginfra.com

The Board Meeting commenced at 2:48 p.in. and concluded at 4.10 p.in.

This is for your information and records.

Thanking you,

Yours faithfully For H.G. Infra Engine9ring Limited`

Company Secretary & Co

INDEPENDENT AUDITOR'S REPORT

To the Board of Directors of H.G. Infra Engineering Limited

Report on the Audit of Standalone Financial Results

Opinion

• We have audited the standalone annual financial results of H.G. Infra Engineering Limited $1.$ (hereinafter referred to as the 'Company") which includes 4 jointly controlled operations consolidated on a proportionate basis, for the year ended March 31, 2020 and the standalone statement of assets and liabilities and the standalone statement of cash flows as at and for the year ended on that date, attached herewith, being submitted by the Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ('Listing Regulations').
• In our opinion and to the best of our information and according to the explanations given to $2.$ us, the aforesaid standalone financial results:
  • are presented in accordance with the requirements of Regulation 33 of the Listing i. Regulations in this regard; and
  • give a true and fair view in conformity with the recognition and measurement principles ii. laid down in the applicable accounting standards prescribed under Section 133 of the Companies Act, 2013 (the "Act") and other accounting principles generally accepted in India, of profit and other comprehensive income and other financial information of the Company and jointly controlled operations for the year ended March 31, 2020 and the standalone statement of assets and liabilities and the standalone statement of cash flows as at and for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specified under 3. section $143(10)$ of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Our responsibilities under those Standards are further described in the 'Auditor's Responsibilities for the Audit of the Standalone Financial Results' section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our opinion.

Price Waterhouse & Co Chartered Accountants LLP, 252, Veer Savarkar Marg, Shivaji Park, Dadar (West) Mumbai - 400 028

$T: +91(22) 66691500, F: +91(22) 66547804 / 07$

Registered office and Head office: Plot No. Y-14, Block EP, Sector V, Salt Lake Electronic Complex, Bidhan Nagar, Kolkata 700 091

Price Waterhouse & Co. (a Partnership Firm) converted into Price Waterhouse & Co Chartered Accountants LLP (a Limited Liability Partnership with LLP identity no:LLPIN AAC-4362) with effect from July 7, 2014∔Post its conv 304026E/E-300009 (ICAI registration number before conversion was 304026E)

INDEPENDENT AUDITOR'S REPORT To the Board of Directors of H.G. Infra Engineering Limited Report on the Standalone Financial Results Page 2 of 4

Emphasis of Matter

1. We draw attention to note 9 to the standalone financial statements, which describes the management's assessment of the financial impact of the outbreak of Coronavirus (Covid-19) pandemic situation, for which a definitive assessment of the impact in the subsequent period is dependent upon the circumstances as they evolve. Our opinion is not modified in respect of this matter.

Board of Directors' Responsibilities for the Standalone Financial Results

• These Standalone financial results have been prepared on the basis of the standalone annual 5. financial statements. The Company's Board of Directors are responsible for the preparation and presentation of these standalone financial results that give a true and fair view of the profit and other comprehensive income and other financial information of the Company and the standalone statement of assets and liabilities and the standalone statement of cash flows in accordance with the recognition and measurement principles laid down in the Indian Accounting Standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. The Board of Directors of the Company are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the standalone financial results by the Directors of the Company, as aforesaid.
• In preparing the standalone financial results, the Board of Directors of the Company are 6. responsible for assessing the ability of the Company to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
• The Board of Directors of the Company are responsible for overseeing the financial reporting 7. process of the Company.

Auditor's Responsibilities for the Audit of the Standalone Financial Results

Our objectives are to obtain reasonable assurance about whether the standalone financial 8. results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial results.

INDEPENDENT AUDITOR'S REPORT To the Board of Directors of H.G. Infra Engineering Limited Report on the Standalone Financial Results Page 3 of 4

• 1. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
  • Identify and assess the risks of material misstatement of the standalone financial results, $\bullet$ whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
  • Obtain an understanding of internal control relevant to the audit in order to design audit $\bullet$ procedures that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls (Refer paragraph 14 below).
  • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors.
  • Conclude on the appropriateness of the Board of Directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Company to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the standalone financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
  • Evaluate the overall presentation, structure and content of the standalone financial results, including the disclosures, and whether the standalone financial results represent the underlying transactions and events in a manner that achieves fair presentation.
• 1. We communicate with those charged with governance of the Company regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
• 1. We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the Listing Regulations, as amended, to the extent applicable.

INDEPENDENT AUDITOR'S REPORT To the Board of Directors of H.G. Infra Engineering Limited Report on the Standalone Financial Results Page 4 of 4

Other Matters

• 1. The Standalone Financial Results include the results for the quarter ended March 31, 2020 being the balancing figures between the audited figures in respect of the full financial year and the published unaudited year to date figures up to the third quarter of the current financial year, which were subjected to limited review by us. The said results for the quarter ended March 31, 2020 were neither subject to limited review nor audited by us.
• 1. We did not audit the financial statements of 4 jointly controlled operations included in the standalone financial results of the Company, which constitute total assets of Rs. 69.10 million and net assets of Rs. 8.60 million as at March 31, 2020, total revenue of Rs. 88.10 million and Rs. 3.64 million, net profit/ (loss) after tax of Rs. 0.43 million and Rs. (0.87) million and total comprehensive income of Rs. 0.43 million and Rs. (0.87) million for the year ended March 31, 2020 and for the period January 1, 2020 to March 31, 2020 respectively and net cash flows amounting to Rs 0.12 Million for the year then ended. These financial statements have been audited by other auditors whose reports have been furnished to us by the Management, and our opinion on the Statement insofar as it relates to the amounts and disclosures included in respect of these jointly controlled operations is based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph 11 above. Our opinion is not modified in respect of this matter.
• 1. The standalone annual financial results dealt with by this report has been prepared for the express purpose of filing with Bombay Stock Exchange and National Stock Exchange. These results are based on and should be read with the audited standalone financial statements of the Company for the year ended March 31, 2020 on which we issued an unmodified audit opinion vide our report dated June 24, 2020.

For Price Waterhouse & Co Chartered Accountant LLP Firm Registration Number: 304026E/E-300009

NITIN LOKUMAL Digitally signed by NITIN KHATRI

Nitin Khatri

Place: Mumbai Date: June 24, 2020 Date: 2020 06 24 15:50:54 $+05'30'$

Partner Membership Number: 110282 UDIN: 20110282AAAACK9647

H.G. Infra Engineering Limited Regd Office: 14, Panchwati Colony, Ratanada, Jodhpur-342001, Rajasthan Tel: - 91 141 -4106 040 Fax: +91-141- 4106 044 Email: cs@hginfra.com Website: www.hginfra.com CIN No. - L45201RJ2003PLC018049

Statement of Standalone results for the Quarter and Year ended March 31, 2020

	(Amount in Rs. Millions)
		Year endedQuarter ended
Sr.	Particulars	March 31,	December	March 31,	March 31,	March 31,
No		2020	31, 2019	2019	2020	2019
		(Refer note 4)	(Unaudited)	(Refer note 4)	(Audited)	(Audited)
1	Revenue from operations	6,228.56	5,729.82	5,799.70	21,961.42	20,098.32
$\overline{2}$	Other income	37.86	38.70	23.10	136.53	115.31
3	Total Income (1+2)	6,266.42	5,768.52	5,822.80	22,097.95	20,213.63
4	Expenses
	(a) Cost of materials consumed	2,380.62	2,538.99	2,002.16	8,926.41	8,919.31
	(b) Contract and site expenses	2,425.74	1,942.92	2,442.83	8,137.15	6,665.36
	(c) Employee benefits expense	290.52	270.08	289.20	1,113.80	1,191.06
	(d) Finance cost	158.63	134.71	164.19	523.57	490.29
	(e) Depreciation and amortisation expense	208.20	190.66	202.67	756.26	754.54
	(g) Other Expenses	117.71	96.27	133.38	360.23	290.62
	Total Expenses	5,581.42	5,173.63	5,234.43	19,817.42	18,311.18
5	Profit before tax (3-4)	685.00	594.89	588.37	2,280.53	1,902.45
6	Income tax expense
	(a) Current Tax	199.00	162.54	252.48	624.39	689.26
	(b) Deferred Tax	(26.52)	17.19	(31.52)	(1.08)	(22.49)
	Total Tax Expense	172.48	179.73	220.96	623.31	666.77
7	Profit after Tax (5-6)	512.52	415.16	367.41	1,657.22	1,235.68
8	Other Comprehensive Income
	Items that may be reclassified to profit or loss
	Items that will not be reclassified to profit or loss
	Remeasurements of post-employment benefit
	obligations	23.41	(5.11)	(18.81)	8.08	(19.92)
	Income tax relating to these items	(5.96)	1.31	6.57	(2.03)	6.96
	Other Comprehensive Income net of tax	17.45	(3.80)	(12.24)	6.05	(12.96)
9	Total Comprehensive Income for the period (7+8)	529.97	411.36	355.17	1,663.27	1,222.72
	10 Paid-up equity share capital
	(Face Value of Rs. 10 per share)	651.71	651.71	651.71	651.71	651.71
	11 Other Equity (excluding Revaluation Reserve) as
	shown in the Audited Balance Sheet				7,564.33	5,940.35
	12 Earnings per equity Share (of Rs. 10 per share):
	Basic and Diluted	$7.86*$	$6.37*$	$5.65*$	25.43	18.96

* Not annualised

See accompanying notes forming part of the standalone financial results

H.G. Infra Engineering Limited Regd Office : 14, Panchwati Colony, Ratanada, Jodhpur-342001, Rajasthan Tel: - 91 141 -4106 040 Fax: +91-141- 4106 044 Email: cs@hginfra.com Website: www.hginfra.com CIN No. - L45201RJ2003PLC018049

Statement of Standalone Assets and Liabilities as at March 31, 2020

		(Amount in Rs. Millions)
Particulars	As at	As at
	March 31, 2020	March 31, 2019
ASSETS
Non-current assets
Property, plant and equipment	4,758.41	4,584.83
Right-of-use assets	33.72
Capital work-in-progress	111.37
Intangible assets	32.20	34.09
Financial assets
i. Investment	908.25	200.00
ii. Trade receivables	32.81	29.70
iii. Other financial assets	197.14	119.63
Deferred tax assets	86.91	83.79
Non-currrent tax assets	9.31	11.01
Other non-current assets	44.74	78.21
Total non-current assets	6,214.86	5,141.26
Current assets
Inventories	1,055.30	1,160.97
Financial assets
i. Trade receivables	8,077.87	6,213.97
ii. Cash and cash equivalents	239.82	30.99
iii. Bank balances other than (ii) above	904.59	971.26
iv. Loans	74.40	12.91
iv. Other financial assets	109.60	130.00
Contract assets	3,508.31	1,595.51
Other current assets	500.16	554.03
Total current assets	14,470.05	10,539.64
Total assets	20,684.91	15,680.90
EQUITY AND LIABILITIESEquityEquity share capital	651.71	651.71
Other equity
Reserves and surplus	7,564.33	5,940.35
Total equity	8,216.04	6,592.06
LIABILITIES
Non-current liabilities
Financial liabilities
i. Borrowings	640.32	593.13
ii. Lease liabilities	6.88
iii. Trade Payable	788.66	533.09
Employee benefit obligations	13.56	41.75
Total non-current liabilities	1,449.42	1,167.97
Current liabilities
Financial liabilities
i. Borrowings *	1,912.15	1,823.42
ii. Trade payables
(a) total outstanding dues of micro and small enterprises	100.86	56.65
(b) total outstanding dues other than (ii) (a) above	5,336.07	3,404.14
iii. Lease liabilities	30.17
iv. Other financial liabilities	1,260.67	1,435.58
Contract liabilities	2,088.56	872.55
Employee benefit obligations	71.65	121.04
Current tax liabilities	47.67	154.72
Other current liabilities	171.65	52.78
Total current liabilities
Total liabilities	11,019.4512,468.87	7,920.879,088.84
Total equity and liabilities	20,684.91	15,680.90

*Includes Payable under MSMED trade receivable discounting system (TReDS) Rs. 728.90 (March 31, 2019 Rs. NIL) See accompanying notes forming part of the standalone financial results

H.G. Infra Engineering Limited Regd Office: 14, Panchwati Colony, Ratanada, Jodhpur-342001, Rajasthan Tel: - 91 141 -4106 040 Fax: +91-141- 4106 044 Email: cs@hginfra.com Website : www.hginfra.com CIN No. - L45201RJ2003PLC018049

Statement of Standalone cashflow for the year ended March 31, 2020

			(Amount in Rs. Millions)
Particulars		As atMarch 31, 2020Audited	As atMarch 31, 2019Audited
A)	Cash flow from operating activities
	Profit before tax	2,280.53	1,902.45
	Adjustments for:
	Depreciation and amortisation expense	756.26	754.54
	Interest Income from financial assets at amortised cost	(66.76)	(91.81)
	Loss allowances	145.00	85.24
	Net (gain)/loss on disposal of property, plant and equipment	4.51	(0.10)
	Net finance costs	523.57	490.29
	Operating Profit before Working Capital Changes	3,643.11	3,140.61
	Changes in working capital:
	(Increase) in trade receivables	(2,012.01)	(1,986.09)
	(Increase) / decrease in inventories	105.67	(93.44)
	Decrease in other current financial assets		2,032.82
	(Increase) in contract assets	(1,912.80)	(1,595.51)
	(Increase) in other current assets	(76.13)	(54.59)
	(Increase) in other non current financial assets	(24.67)	(12.25)
	Decrease in other current financial assets	20.40
	Decrease in other non current assets	47.88	13.17
	Increase in trade payables	2,231.72	712.60
	Increase in contract liabilities	1,216.01	872.55
	(Decrease) in other current financial liabilities	(5.00)	(29.07)
	Increase / (decrease) in other current liabilities	118.87	(1,618.99)
	Increase / (decrease) in employee benefit obligations	(71.52)	56.50
	Cash generated from operations	3,281.53	1,438.30
	Income taxes paid (Net of refunds)	(731.78)	(577.55)
	Net cash generated from / (used in) Operating Activities	2,549.75	860.75
B)	Cash Flow From Investing Activities
	Investment in a subsidiary	(708.25)	(200.00)
	Payment for property, plant and equipment	(1,031.61)	(1,288.35)
	Sale of property, plant and equipment	99.37	6.37
	Fixed deposits (placed) / redemption of fixed deposits (Net)	13.82	1,288.62
	Interest received	66.76	91.81
	Loan to employees and related parties	(61.49)	(10.33)
	Net Cash (used in) Investing Activities	(1,621.40)	(111.87)
C)	Cash Flow From Financing Activities
	Proceeds from of Long Term Borrowings	1,967.29	2,479.72
	(Repayment) of Long Term Borrowings	(2, 184.66)	(2,795.84)
	Proceeds from / (Repayment) of Short term Borrowings (Net)	271.62	250.31
	(Repayment) of Loans taken from Directors (Net)	(461.45)	(871.65)
	Loans taken from Directors	278.56	683.03
	Dividend paid to Company's shareholders (including dividend distribution tax of	(39.29)	(39.29)
	Rs. 6.70 million)
	Principal elements of lease payments	(20.10)
	Finance cost paid	(531.49)	(488.35)
	Net Cash generated from Financing Activities	(719.52)	(782.07)
	Net increase in cash and cash equivalents	208.83	(33.19)
	Cash and Cash Equivalents as at the beginning of the year	30.99	64.18
	Cash and cash equivalents at the end of the year	239.82	30.99
	Reconciliation of Cash and cash equivalents as per the cash flow statement
	Cash and cash equivalents comprise of the following:
	Cash on hand	3.78	3.24
	Bank Balance on current account	236.04	27.75
	Total	239.82	30.99

See accompanying notes forming part of the standalone financial results.

Notes:

• 1 The Statement include the results of H.G. Infra Engineering Limited (the 'Company') and its jointly controlled operations (HGIEPL - Colossal JV, HGIEPL - Ranjit JV, HGIEPL- MGCPL JV and HGIEPL - RPS JV). This statement has been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS) prescribed under Section 133 of the Companies Act, 2013 and other recognised accounting practices and policies to the extent applicable.
• 2 In terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Standalone financial results of the Company and its jointly controlled operations have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meeting held on June 24, 2020.
• 3 Effective April 1, 2019, the Company has adopted Ind AS 116, 'Leases'. Ind AS 116 introduces a single lessee accounting model and requires a lessee to recognise right-of-use assets and lease liabilities for all leases with a term of more than twelve months, unless the underlying asset is of a low value.

The Company has used the 'modified retrospective approach' for transition from the previous standard- Ind AS 17, and consequently, comparatives for previous periods have not been retrospectively adjusted. On transition, the Company has recorded the lease liability at the present value of future lease payments discounted using the incremental borrowing rate and has also chosen the practical expedient provided in the standard to measure the right-of-use at the same value as the lease liability.

The adoption of the new standard resulted in recognition of 'Right-of-use' asset and an equivalent lease liability as on April 1, 2019. The effect of Ind AS 116 on the profit before tax, profit for the period and earnings per share is not material.

• 4 Figures for the quarters ended March 31, 2020 and March 31, 2019 are balancing figures between audited figure for the full financial year ended on March 31, 2020 and March 31, 2019 and the published year to date figures upto the third quarter of the respective financial years.
• 5 The Company elected to exercise the option permitted under section 115BAA of the Income -tax Act, 1961 as introduced by the taxation Laws (amendment) ordinance, 2019. Accordingly, the Company has recognized Provision for Income Tax and remeasured its Deferred Tax Assets basis the rate prescribed in the said section.
• 6 The Company and its jointly controlled operations are primarily engaged in the business of Engineering, Procurement and Construction (EPC) relating to roads, bridges, flyovers and infrastructure contract works and related activities. As such there is no separate reportable operating segment as defined by Ind AS 108 "Operating Segments".
• 7 During the year ended, one of the jointly controlled operations namely HGIEPL Colossal JV has been dissolved on May 27, 2019.
• 8 During the year ended, 2 wholly owned subsidiaries HG Ateli Narnaul Highway Private Limited and HG Rewari Ateli Highway Private Limited have been incorporated by the Company.

9 The construction work of the Company was impacted due to the shutdown of project sites and offices following the lockdown imposed in India from March 25, 2020 on all the locations due to COVID - 19. The Company has subsequently commenced its operations starting from April 24, 2020, in line with the directives from the National Highway Authority of India (NHAI) and Ministry of Road Transport and Highways (MoRTH). The Management and the Board of Directors have evaluated the impact of the pandemic on its business operations. The Company currently has a strong order book in excess of Rs. 71,000 Million, leading to a clear visibility of revenue over the next 18-24 months. Collection from customers have been normal during the lockdown period enabling the Company to meet all its liabilities (including employee payables) in a timely manner and without availing any moratorium as announced by the Reserve Bank of India. The Company has adequate unutilized fund-based credit facilities available, to take care of any urgent requirement of funds. The Company through the lockdown period and even subsequently has been able to maintain adequate control of its assets and there have been no significant changes to its control environment during the period.

Based on the above assessment, the Company strongly believes that there is no material impact of Covid 19 on these financial results. The Company has also made a detailed assessment of its liquidity position for the next 12 months from the balance sheet date. Further, there is no material impact foreseen on revenue and operating cashflow of the Company. Further, the timely steps announced by the Government of India, allowing extension of contract delivery period up to six months, additional Liquidity through relief given by NHAI, MoRTH and additional investment in infrastructure projects, will enable the Company to further consolidate its position.

Management believes that it has considered all the known impacts arising from COVID - 19 pandemic in the preparation of the standalone financial results. However, the impact assessment of COVID - 19 is a continuing process given the uncertainties associated with its nature and duration. Management will continue to monitor any material changes to future economic conditions and the impact thereof on the Company, if any. The eventual outcome of the impact of the COVID 19 pandemic on the Company's business may be different from that estimated as on the date of approval of these standalone financial results.

• 10 The above standalone financial results of the Company are available on the Company's website (www.hginfra.com) and also on the website of BSE (www.bseindia.com) and NSE (www.nseindia.com), where the equity shares of the Company are listed.
• 11 Figure for corresponding previous year have been regrouped / reclassified wherever necessary.

Digitally signed by NITIN LOKUMAL KHATRI Date: 2020.06.24 $15:56:17 + 05'30'$

For and on behalf of the Board of Directors

Harendra Singh Chairman and Managing Director Place: Jaipur Date: June 24, 2020

INDEPENDENT AUDITOR'S REPORT

To the Board of Directors of H.G. Infra Engineering Limited

Report on the Audit of Consolidated Financial Results

Opinion

• We have audited the consolidated annual financial results of H.G. Infra Engineering Limited in $11$ which are incorporated 4 jointly controlled operations, (hereinafter referred to as the 'Holding Company"), its subsidiaries (Holding Company and its subsidiary together referred to as "the Group") and its associate (Refer note 8 to the consolidated annual financial results) for the year ended March 31, 2020 and the consolidated statement of assets and liabilities and the consolidated statement of cash flows as at and for the year ended on that date, attached herewith, being submitted by the Holding Company pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ('Listing Regulations').
• 1. In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of reports of other auditors on separate audited financial results of the subsidiary and associate, the aforesaid consolidated financial results:
  • include the annual financial results of the following entities: HGIEPL Colossal JV, $\mathbf{i}$ . HGIEPL - Ranjit JV, HGIEPL - MGCPL JV and HGIEPL - RPS JV being jointly controlled operations. Gurgaon Sohna Highway Private Limited, HG Ateli Narnaul Highway Private Limited and HG Rewari Ateli Highway Private Limited being subsidiaries and TPL -HGIEPL being associate.
  • are presented in accordance with the requirements of Regulation 33 of the Listing ii. Regulations in this regard; and
  • give a true and fair view in conformity with the recognition and measurement principles iii. laid down in the applicable accounting standards prescribed under Section 133 of the Companies Act, 2013 (the "Act") and other accounting principles generally accepted in India, of net profit and other comprehensive income and other financial information of the Group and its associate for the year ended March 31, 2020 and the consolidated statement of assets and liabilities and the consolidated statement of cash flows as at and for the year ended on that date.

Basis for Opinion

1. We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section $143(10)$ of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. Our responsibilities under those Standards are further described in the 'Auditor's Responsibilities for the Audit of the Consolidated Financial Results' section of our report. We are independent of the Group and its associate in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us and other auditors in terms of their reports referred to in "Other Matters" paragraph below, is sufficient and appropriate to provide a basis for our opinion.

Price Waterhouse & Co Chartered Accountants LLP, 252, Veer Savarkar Marg, Shivaji Park, Dadar (West) Mumbai - 400 028

$T: +91(22)66691500, F: +91(22)66547804/07$

Registered office and Head office: Plot No. Y-14, Block EP, Sector V, Salt Lake Electronic Complex, Bidhan Nagar, Kolkata 700 091

Price Waterhouse & Co. (a Partnership Firm) converted into Price Waterhouse & Co Chartered Accountants LLP (a Limited Liability Partnership with LLP identity no: CLPIN AAC-4362) with effect from July 7, 2014. Post its conversion to Price Waterhouse & Co Chartered Accountants LLP, its ICAI registration number isLLPIN AAC-4362) with effect from July 7, 2014. Post its conversion to P

INDEPENDENT AUDITOR'S REPORT To the Board of Directors of H.G. Infra Engineering Limited Report on the Consolidated Financial Results Page 2 of 5

Emphasis of Matter

1. We draw attention to Note 10 to the consolidated financial results which describes the management's assessment of the financial impact of the outbreak of Coronavirus (Covid-19) pandemic situation, for which a definitive assessment of the impact in the subsequent period is dependent upon the circumstances as they evolve. Our opinion is not modified in respect of this matter.

Board of Directors' Responsibilities for the Consolidated Financial Results

• These Consolidated financial results have been prepared on the basis of the consolidated 5. annual financial statements. The Holding Company's Board of Directors are responsible for the preparation and presentation of these consolidated financial results that give a true and fair view of the net profit and other comprehensive income and other financial information of the Group including its associate and the consolidated statement of assets and liabilities and the consolidated statement of cash flows in accordance with the recognition and measurement principles laid down in the Indian Accounting Standards prescribed under Section 133 of the Act read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. The respective Board of Directors of the companies included in the Group and of its associate are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Group and its associate and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring accuracy and completeness of the accounting records, relevant to the preparation and presentation of the consolidated financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated financial results by the Directors of the Holding Company, as aforesaid.
• 1. In preparing the consolidated financial results, the respective Board of Directors of the companies included in the Group and of its associate are responsible for assessing the ability of the Group and its associate to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the respective Board of Directors either intends to liquidate the Group and its associate or to cease operations, or has no realistic alternative but to do so.
• The respective Board of Directors of the companies included in the Group and of its associate 7. are responsible for overseeing the financial reporting process of the Group and of its associate.

INDEPENDENT AUDITOR'S REPORT To the Board of Directors of H.G. Infra Engineering Limited Report on the Consolidated Financial Results Page 3 of 5

Auditor's Responsibilities for the Audit of the Consolidated Financial Results

• 1. Our objectives are to obtain reasonable assurance about whether the consolidated financial results as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial results.
• 1. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
  • Identify and assess the risks of material misstatement of the consolidated financial results. $\bullet$ whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
  • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls. (Refer paragraph 16 below)
  • Evaluate the appropriateness of accounting policies used and the reasonableness of $\bullet$ accounting estimates and related disclosures made by the Board of Directors.
  • Conclude on the appropriateness of the Board of Directors use of the going concern basis $\bullet$ of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group and its associate to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial results or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group and its associate to cease to continue as a going concern.
  • Evaluate the overall presentation, structure and content of the consolidated financial results, including the disclosures, and whether the consolidated financial results represent the underlying transactions and events in a manner that achieves fair presentation.

INDEPENDENT AUDITOR'S REPORT To the Board of Directors of H.G. Infra Engineering Limited Report on the Consolidated Financial Results Page 4 of 5

• Obtain sufficient appropriate audit evidence regarding the financial results of the entities within the Group and its associate to express an opinion on the consolidated Financial Results. We are responsible for the direction, supervision and performance of the audit of financial information of such entities included in the consolidated financial results of which we are the independent auditors. For the other entities included in the consolidated financial results, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.
• 1. We communicate with those charged with governance of the Holding Company and such other entities included in the consolidated financial results of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
• 1. We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the Listing Regulations, as amended, to the extent applicable.

Other Matters

• 1. We did not audit the financial results of 4 jointly controlled operations included in the standalone financial results of the Holding Company whose financial results reflect total assets of Rs. 69.10 million and net assets of Rs. 8.60 million as at March 31, 2020 and total revenue of Rs. 88.19 Million and Rs. 3.64 Million, net profit/ (loss) after tax of Rs. 0.43 Million and Rs. (0.87) Million and total comprehensive income of Rs. 0.43 Million and Rs. (0.87) Million for the year ended March 31, 2020 and for the period January 1, 2020 to March 31, 2020 respectively and cash flows (net) amounting to Rs 0.12 Million for the year then ended on March 31, 2020, as considered in the respective standalone audited financial results of the entities included in the Group. The financial results of these jointly controlled operations have been audited by the other auditors whose reports have been furnished to us and our opinion in so far as it relates to the amounts and disclosures included in respect of these branches and joint operations, is based solely on the reports of such other auditors, and the procedures performed by us as stated in paragraph 11 above.
• 1. We did not audit the three subsidiaries included in the consolidated financial results, whose financial results reflect total assets of Rs. 4,247.35 million and net assets of Rs. 955.63 million as at March 31, 2020, total revenue of Rs. 5,070.99 million and Rs. 2,833.06 million, total net profit after tax of Rs. 37.41 million and Rs. 30.70 million, and total comprehensive income of Rs. 57.32 million and Rs. 30.70 million for the for the year ended March 31, 2020 and for the period January 1, 2020 to March 31, 2020 respectively and cash flows (net) of Rs. 5.75 million for the year ended March 31, 2020, as considered in the consolidated financial results. These financial results have been audited by other auditors whose reports have been furnished to us by the Management and our opinion on the consolidated financial results, in so far as it relates to the amounts and disclosures included in respect of these subsidiary, is based solely on the reports of the other auditors and the procedures performed by us as stated in paragraph 11 above.

INDEPENDENT AUDITOR'S REPORT To the Board of Directors of H.G. Infra Engineering Limited Report on the Consolidated Financial Results Page 5 of 5

• 1. Our opinion on the consolidated Financial Results is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors.
• 1. The Consolidated Financial Results include the results for the quarter ended March 31, 2020 being the balancing figures between the audited figures in respect of the full financial year and the published unaudited year to date figures up to the third quarter of the current financial year, which were subjected to limited review by us. The said results for the quarter ended March 31, 2020 were neither subject to limited review nor audited by us.
• 1. The consolidated annual financial results dealt with by this report have been prepared for the express purpose of filing with Bombay Stock Exchange and National Stock Exchange. These results are based on and should be read with the audited consolidated financial statements of the group and its associate, for the year ended March 31, 2020 on which we have issued an unmodified audit opinion vide our report dated June 24, 2020.

For Price Waterhouse & Co Chartered Accountant LLP Firm Registration Number: 304026E/E-300009

NITIN LOKUMAL Digitally signed by NITIN

KHATRI

Date: 2020.06.24 15:52:08 $+05'30'$

Place: Mumbai Date: June 24, 2020 Nitin Khatri Partner Membership Number: 110282 UDIN: 20110282AAAACL3527

H.G. Infra Engineering Limited Regd Office: 14, Panchwati Colony, Ratanada, Jodhpur-342001, Rajasthan Tel: - 91 141 -4106 040 Fax: +91-141- 4106 044 Email: cs@hginfra.com Website: www.hginfra.com CIN No. - L45201RJ2003PLC018049

Statement of Consolidated results for the Quarter and Year ended March 31, 2020

	(Amount in Rs. Millions)
		Quarter endedYear ended
Sr.No	Particulars	March 31,2020	December 31,2019	March 31,2019	March 31,2020	March 31,2019
		(Refer note 4)	Unaudited	(Refer note 4)	(Audited)	(Audited)
1	Revenue from operations	6,341.24	5,714.90	5,841.06	22,170.68	20,144.95
$\overline{2}$	Other income	18.31	38.70	22.32	136.53	114.53
3	Total Income (1+2)	6,359.55	5,753.60	5,863.38	22,307.21	20,259.48
4	Expenses
	(a) Cost of materials consumed	2,380.62	2,538.99	2,002.16	8,926.41	8,919.31
	(b) Contract and site expenses	2,441.26	1,943.96	2,443.01	8,157.78	6,665.54
	(c) Employee benefits expense	293.40	272.20	289.39	1,122.74	1,194.19
	(d) Finance cost	178.18	160.70	164.21	597.70	490.31
	(e) Depreciation and amortisation expense	208.21	190.70	202.67	756.39	754.54
	(f) Other Expenses	136.65	110.80	156.96	408.28	320.09
	Total Expenses	5,638.32	5,217.35	5,258.40	19,969.30	18,343.98
5	Profit for the period before share of Profit / (Loss)of associates and tax (3-4)	721.23	536.25	604.98	2,337.91	1,915.50
6	Share of Profit of associate		(33.75)	5.62	(28.54)	28.54
$\overline{\phantom{a}}$	Profit before tax (5+6)	721.23	502.50	610.60	2,309.37	1,944.04
8	Income tax expense
	(a) Current Tax	194.50	150.32	256.28	634.30	693.06
	(b) Deferred Tax	(16.51)	17.20	(31.48)	8.96	(22.45)
	Total Tax Expense	177.99	167.52	224.80	643.26	670.61
9	Profit after Tax (7-8)	543.24	334.98	385.80	1,666.11	1,273.43
10	Other Comprehensive IncomeItems that may be reclassified to profit or loss
	Items that will not be reclassified to profit or lossRemeasurements of post-employment benefit
	obligations	23.41	(5.11)	(18.81)	8.08	(19.92)
	Income tax relating to these items	(5.96)	$1.31,$	6.57	(2.03)	6.96
	Total Other Comprehensive Income	17.45	(3.80)	(12.24)	6.05	(12.96)
11	Total Comprehensive Income for the period (9+10)	560.69	331.18	373.56	1,672.16	1,260.47
12	Paid-up equity share capital(Face Value of Rs. 10 per share)	651.71	651.71	651.71	651.71	651.71
13	Other Equity (excluding Revaluation Reserve) asshown in the Audited Balance Sheet				7,610.95	5,978.10
14	Earnings Per Share (of Rs. 10 per share):Basic and Diluted	$8.34*$	$5.14*$	$5.93*$	25.57	19.54

* Not annualised

See accompanying notes forming part of the consolidated financial results

H.G. Infra Engineering Limited Regd Office: 14, Panchwati Colony, Ratanada, Jodhpur-342001, Rajasthan Tel: - 91 141 -4106 040 Fax: +91-141- 4106 044 Email: cs@hginfra.com Website: www.hginfra.com CIN No. - L45201RJ2003PLC018049

Statement of Consolidated Assets and Liabilities as at March 31, 2020

(Amount in Rs. Millions)
Particulars	As at	As at
	March 31, 2020	March 31, 2019
ASSETS
Non-current assets
Property, plant and equipment	4,761.00	4,587.56
Right-of-use assets	33.72
Capital work-in-progress	111.37
Intangible assets	32.20	34.09
Financial assets
i. Investment		28.54
ii. Trade receivables	32.81	29.70
iii. Other financial assets	1,117.42	119.63
Deferred tax assets	86.91	83.74
Non-currrent tax assets	57.18	11.01
Other non-current assets	44.74	78.21
Total non-current assets	6,277.35	4,972.48
Current assets
Inventories	1,055.30	1,160.97
Financial assets
i. Trade receivables	6,849.05	6,145.65
ii. Cash and cash equivalents	245.75	31.17
iii. Bank balances other than (ii) above	904.59	971.26
iv. Loans	6.21	4.21
v. Other financial assets	2,351.53	387.98
Contract assets	3,508.31	1,595.51
Other current assets	967.71	456.98
Total current assets	15,888.45	10,753.73
Total assets	22,165.80	15,726.21
EQUITY AND LIABILITIES
Equity
Equity share capital	651.71	651.71
Other equity
Reserves and surplus	7,610.95	5,978.10
Total equity	8,262.66	6,629.81
LIABILITIES
Non-current liabilities
Financial liabilities
i. Borrowings	2,129.55	593.23
ii. Lease liabilities	6.88
iii. Trade Payable	788.66	533.09
Deferred tax liabilities	10.08
Employee benefit obligations	13.56	41.75
Total non-current liabilities	2,948.73	1,168.07
Current liabilities
Financial liabilities
i. Borrowings *	1,912.15	1,823.42
ii. Trade payables
(a) total outstanding dues of micro and small enterprises	100.86	56.65
(b) total outstanding dues other than (ii) (a) above	5,336.07	3,404.91
iii. Lease liabilities	30.17
iv. Other financial liabilities	1,290.17	1,435.58
Contract liabilities	1,959.66	872.55
Employee benefit obligations	72.34	121.45
Current tax liabilities	47.67	158.15
Other current liabilities	205.32	55.62
Total current liabilities	10,954.41	7,928.33
Total liabilities	13,903.14	9,096.40
Total equity and liabilities	22,165.80	15,726.21

*Includes Payable under MSMED trade receivable discounting system (TReDS) Rs. 728.90 (March 31, 2019 Rs. NIL) See accompanying notes forming part of the consolidated financial results

H.G. Infra Engineering Limited Regd Office: 14, Panchwati Colony, Ratanada, Jodhpur-342001, Rajasthan Tel: - 91 141 -4106 040 Fax: +91-141- 4106 044 Email: cs@hginfra.com Website: www.hginfra.com CIN No. - L45201RJ2003PLC018049

Statement of Consolidated cashflow for the year ended March 31, 2020

		(Amount in Rs. Millions)
	As at	As at
Particulars	March 31, 2020	March 31, 2019
	Audited	Audited
A) Cash flow from operating activities
Profit before tax	2,337.91	1,915.50
Adjustments for:
Depreciation and amortisation expense	756.39	754.54
Interest Income from financial assets at amortised cost	(66.76)	(91.81)
Loss allowances	145.00	85.24
Net (gain)/ loss on disposal of property, plant and equipment	4.51	0.68
Net finance costs	597.70	490.31
Operating Profit before Working Capital Changes	3,774.75	3,154.46
Changes in working capital:
(Increase) in trade receivables	(756.51)	(1, 917.77)
(Increase) / decrease in inventories	105.67	(93.44)
(Increase) / decrease in other current financial assets	(3,770.44)	1,774.84
(Increase) in contract assets	(1,912.80)	(1,595.51)
(Increase) / decrease in other current assets	(76.13)	(87.54)
(Increase) in other non current financial assets	(24.67)	(12.25)
Decrease in other current financial assets	20.40
Decrease in other non current assets	47.88	13.17
Increase in trade payables	2,135.94	713.37
(Increase) in contract liabilities	1,087.12	872.55
Increase / (decrease) in other current financial liabilities	471.35	(29.07)
Increase / (decrease) in other current liabilities	118.87	(1,616.15)
Increase in employee benefit obligations	(71.52)	56.92
Cash generated from operations	1,149.91	1.233.58
Income taxes paid (Net of refunds)	(792.96)	(577.91)
Net cash generated from / (used in) Operating Activities	356.95	655.67
B) Cash Flow From Investing Activities
Payment for property, plant and equipment	(1,031.61)99.37	(1,288.56)3.07
Sale of property, plant and equipment
Fixed deposits (placed) / redemption of fixed deposits (Net)	13.82	1,288.62
Interest received	66.76	91.81
Loan to employees and related parties	(1.94)	(1.63)
Net Cash (used in) Investing Activities	(853.60)	93.31
C) Cash Flow From Financing Activities
Proceeds from of Long Term Borrowings	3,456.41	2,479.82
(Repayment) of Long Term Borrowings	(2, 184.66)	(2,795.84)
Proceeds from / (Repayment) of Short term Borrowings (Net)	271.62	250.31
(Repayment) of Loans taken from Directors	(461.45)	(871.65)
Loans taken from Directors	278.56	683.03
Dividend paid to Company's shareholders (including dividend
distribution tax of Rs. 6.70 million)	(39.29)	(39.29)
Principal elements of lease payments	(20.10)
Finance cost paid	(589.86)	(488.37)
Net Cash generated from Financing Activities	711.23	(781.99)
Net increase in cash and cash equivalents	214.58	(33.01)
Cash and Cash Equivalents as at the beginning of the year	31.17	64.18
Cash and cash equivalents at the end of the year	245.75	31.17
Reconciliation of Cash and cash equivalents as per the cash flow statement
Cash and cash equivalents comprise of the following:
Cash on hand	3.78	3.24
Bank Balance on current account	241.97	27.93
Total	245.75	31.17

See accompanying notes forming part of the standalone financial results.

Notes:

• 1 The Statement include the results of H.G. Infra Engineering Limited (including 4 jointly controlled operation) ("the Holding Company"), 3 subsidiaries and an associate (the Holding Company, its subsidiaries and an associate together referred to as "the Group"). This statement has been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS) prescribed under Section 133 of the Companies Act, 2013 and other recognised accounting practices and policies to the extent applicable.
• 2 In terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Consolidated financial results of the Group have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meeting held on June 24, 2020.

Summary of key standalone financial results is as follows:					(Amount in Rs. Millions)
Particulars	Quarter EndedMarch 31, 2020	Quarter EndedDecember 31, 2019	Quarter EndedMarch 31, 2019	Year endedMarch 31, 2020	Year endedMarch 31, 2019
Revenues from operations	6,228.56	5,729.82	5,799.70	21,961.42	20,098.32
Profit before tax	685.00	594.89	588.37	2,280.53	1.902.45
Profit after tax	512.52	415.16	367.41	1.657.22	1,235.68

$\mathbf{3}$

Note: The above Standalone financial results of the Company are available on the Company's website (www.hginfra.com) and also on the website of BSE (www.bseindia.corn) and NSE (www.nseindia.com), where the equity shares of the Company are listed. The information above has been extracted from the published standalone financial results.

• 4 Figures for the quarters ended March 31, 2020 and March 31, 2019 are balancing figures between audited figure for the full financial year ended on March 31, 2020 and March 31, 2019 and the published year to date figures upto the third quarter of the respective financial years.
• 5 Effective April 1,2019, the Group has adopted Ind AS 116, 'Leases'. Ind AS 116 introduces a single lessee accounting model and requires a lessee to recognise right-of-use assets and lease liabilities for all leases with a term of more than twelve months, unless the underlying asset is of a low value.

The Group has used the 'modified retrospective approach' for transition from the previous standard- Ind AS 17, and consequently, comparatives for previous periods have not been retrospectively adjusted. On transition, the Group has recorded the lease liability at the present value of future lease payments discounted using the incremental borrowing rate and has also chosen the practical expedient provided in the standard to measure the right-of-use at the same value as the lease liability. The adoption of the new standard resulted in recognition of 'Right-ot-use' asset and an equivalent lease liability as on April 1, 2019. The effect of Ind AS 116 on the profit before tax, profit for the period and earnings per share is not material.

• 6 The Group elected to exercise the option permitted under section 115BAA of the Income tax Act, 1961 as introduced by the taxation Laws (amendment) ordinance, 2019. Accordingly, the Group has recognized Provision for Income Tax and re-measured its Deferred Tax Assets basis the rate prescribed in the said section.
• 7 The Group is primarily engaged in the business of Engineering, Procurement and Construction (EPC) relating to roads, bridges, flyovers and infrastructure contract works and related activities. As such there is no separate reportable operating segment as defined by Ind AS 108 "Operating Segments".
• 8 The consolidated financial results include the financial results of the Holding Company (including 4 joint controlled operations -HGIEPL - Colossal JV, HGIEPL - Ranjit JV, HGIEPL- MGCPL JV and HGIEPL - RPS JV), its subsidiaries - Gurgaon Sohna Highway Private Limited, HG Ateli Narnaul Highway Private Limited and HG Rewari Ateli Highway Private Limited and its associate TPL -HGIEPL JV. In accordance with the Term Sheet entered into with the associate, an adjustment of Rs. (28.54) millions has been accounted for during the year ended March 31, 2020 in the line 'Share of Profit of associate'. During the year ended, one of the jointly controlled operations namely HGIEPL - Colossal JV has been dissolved on May 27, 2019.
• 9 During the year ended, 2 wholly owned subsidiaries HG Ateli Narnaul Highway Private Limited and HG Rewari Ateli Highway Private Limited have been incorporated by the Company.

10 The construction work of the Group was impacted due to the shutdown of project sites and offices following the lockdown imposed in India from March 25, 2020 on all the locations due to COVID - 19. The Group has subsequently commenced its operations starting from April 24, 2020, in line with the directives from the National Highway Authority of India (NHAI) and Ministry of Road Transport and Highways (MoRTH). The Management and the Board of Directors have evaluated the impact of the pandemic on its business operations. The Group currently has a strong order book in excess of Rs. 71,000 Million, leading to a clear visibility of revenue over the next 18-24 months. Collection from customers have been normal during the lockdown period enabling the Group to meet all its liabilities (including employee payables) in a timely manner and without availing any moratorium as announced by the Reserve Bank of India. The Group has adequate unutilized fund-based credit facilities available, to take care of any urgent requirement of funds. The Group through the lockdown period and even subsequently has been able to maintain adequate control of its assets and there have been no significant changes to its control environment during the period. Based on the above assessment, the Group strongly believes that there is no material impact of Covid - 19 on these financial results. The Group has also made a detailed assessment of its liquidity position for the next 12 months from the balance sheet date. Further, there is no material impact foreseen on revenue and operating cashflow of the Group. Further, the timely steps announced by the Government of India, allowing extension of contract delivery period up to six months, additional Liquidity through relief given by NHAI, MoRTH and additional investment in infrastructure projects, will enable the Group to further consolidate its position.

Management believes that it has considered all the known impacts arising from COVID - 19 pandemic in the preparation of the consolidated financial results. However, the impact assessment of COVID - 19 is a continuing process given the uncertainties associated with its nature and duration. Management will continue to monitor any material changes to future economic conditions and the impact thereof on the Group, if any. The eventual outcome of the impact of the COVID - 19 pandemic on the Group's business may be different from that estimated as on the date of approval of these consolidated financial results.

• 11 The above Consolidated financial results of the Group are available on the Company's website (www.hginfra.com) and also on the website of BSE (www.bseindia.corn) and NSE (www.nseindia.com), where the equity shares of the Company are listed.
• 12 Figure for corresponding previous year have been regrouped / reclassified wherever necessary.

Digitally signed by NITIN LOKUMAL KHATRI Date: 2020.06.24 $15:54:23 + 05'30'$

For and on behalf of the Board of Directors

Date: 2020.06.24 15:14:38 +05'30

Harendra Singh Chairman and Managing Director Place: Jaipur Date: June 24, 2020

June 24, 2020

BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Munbai- 400 001

National Stock Exchange of India Limited Exchange Plaza, (-I BI(>ck (`i Bandra Kurla Complex, Bandra (East) Mumbai-400 051

Scrip Code- 541019

Scrip Symbol-HGINFRA

Dear Sir"adam,

Sub: Declaration pursuant to Regulation 33(3t(d) SEBI (Listing Obligations and Disclosure Reauirementst Regulation` 2015

Pursuant to the provisions of Regulation 33(3Xd) of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, we hereby declare that the Statutory Auditors of the Company, M/s Price Waterhouse & Co Chartered Accountants LLP (Firm Registration Number: 304026E/E-300009), have issued the Audit Reports with unmodified opinion in respect of the Auditecd Standalone and Consolidated Financial Results of the Company for the year ended March 31, 2020.

TThis is for your information and records.

Thanking you.

Yours faithfully For H.G. Infra Engine Chief Financial Officer C-Scheme A-1 |ilak Marg