HCCl SECI 2021

February 9,2021

BSE Limited	National Stock Exchange of lndia Ltd
The Corporate Relationship Dept,	Exchange Plaza,
1st Floor. Phiroze Jeejeebhoy Towers,	Bandra-Kurla Complex,
Dalal Street,	Bandra (East),
Mumbai-400 001.	Mumbai-400 051.
Scrip Code - 500185	Scrip Code - HCC

Sub: Unaudited Financial Results of the Companv for the auarter and nine months ended December 31,2020

As per Regulation 33 and 52 of the Securities and Exchange Board of lndia (Listing Obligations and Disclosure Requirements) Regulations, 2015, we enclose herewith the Unaudited Standalone and Consolidated Financial Results of the Company for the quarter and nine months ended December 31, 2020 along with the "Limited Review" Report of the Statutory Auditors, which were approved and taken on record by the Board of Directors of the Company at their meeting held today i.e. February 09, 2021.

The meeting of the Board of Directors of the Company commenced at 2.00 p.m. and concluded at 4.00 p.m.

A copy of the press release is also enclosed herewith.

We request you to kindly take the above on your record.

Thanking you,

Co. Ltd

Vithal P Company Secretary

Encl: as above

Hindustan Consauction Co Ltd

Hir&~n Hums, LW 1w~. vamTr (IN&,

Press Release

HCC revenue grows 76% sequentially to 7822.3 cr

Project pace picks up post easing of pandemic restrictions

Mumbai, February 09, 2021: HCC recorded Consolidated Gross Revenue of ? 2,416.9 crore for the quarter ended December 31, 2020, and Net Profit of? 118.6 crore compared to Revenue of ? 2,363.8 crore and Net Profit of ? 223.3 crore in the corresponding period last year. With labour at various project sites reaching pre-Covid levels, the revenue for HCC E&C standalone picked up to ? 822.3 crore in Q3 FY21, achieving sequential growth of 76%. However, revenues declined by 14% y-o-y due to lingering impact of the pandemic.

The company registered EBITDA of ? 115.7 crore in Q3 FY21 with sequential growth of 210% and decline of 42% y-o-y. The Company reported a net loss of? 79 crore in Q3 FY21 against net profit of 7222.2 crore in Q3 FY20 (mainly due to write-back of ? 331 crore of provisions taken in Q4 FY19).

The Company continues to ramp up operational performance while adhering to strict safety norms, and while working with clients to improve cashflow measures. HCC's registered order backlog stood at ? 18,541 crore at the end of Q3 FY21.

During the quarter, HCC won two orders worth ? 236 crore (in JV) from the Northeast Frontier Railway to construct Railway Tunnels on the New BG Rail line in Manipur. HCC share in the JV is 55% (i.e. -? 130 crore). Also, two bids were submitted worth ? 1,936 crore, which are under evaluation.

The debt carve-out resolution plan with lenders is at an advanced stage and final approval from lenders is expected in due course.

Financial highlights:

Un-audited Standalone results for Q3 FY21 vs. Q3 FY20

Net Loss of B 79 crore vs. Net Profit of ? 222.2 crore
Total Income of? 822.3 crore vs. ? 955.6 crore
EBITDA of 9 115.7 crore vs. ? 201.4 crore and EBITDA Margins of 14.2% vs 21.2%
Order book at ? 18,541 crore as of December 31,2020

Performance of HCC subsidiaries:

Steiner AG: Steiner AG reported revenues of CHF 196.2 million (? 1,587.5 crore) in Q3 FY21 as compared to CHF 192.91 million (? 1,395.63 crore) in the previous year quarter and a net profit of CHF 26.1 million (? 206.86 crore) as compared to a net profit of CHF 4.24 million (? 29.76 crore). The Company secured fresh orders worth CHF 222.1 million (? 1,776.67 crore). The order book stood at CHF 1.36 billion (7 10,879.23 crore) at the end of Q3 FY21. In addition to this, the Company has secured orders for CHF 145 million (? 1 ,I 59.92 crore), where contracts are yet to be signed.

HCC Concessions Ltd.: Baharampore Farakka Highways Ltd registered turnover off 47.3 crore in Q3 FY21 vs f 40.5 crore in Q3 FY20, a y-o-y increase of 16.9%. Post the sale of Farakka Raiganj Highways Ltd to Cube Highways in Q2 FY21, HCC has completed the construction work of the Malda Bypass (a greenfield development of 10.3 km by-passing the busy town of Malda) and which will boost the toll by -50% from current levels.

About HCC:

HCC is a business group of global scale developing and building responsible infrastructure through next practices. With an engineering heritage of nearly 100 years, HCC has executed a majority of India's landmark infrastructure projects, having constructed 27% of India's Hydro Power generation and 60% of India's Nuclear Power generation capacities, over 3,960 lane km of Expressways and Highways, more than 360 km of complex Tunnelling and 383 Bridges. Today, HCC Ltd. selves the infrastructure sectors of Transportation, Power and Water. The HCC Group, with a group turnover of 7 9,437 crore, comprises of HCC Ltd., HCC Infrastructure Co. Ltd., and Steiner AG in Switzerland.

A r For further information:

Sandeep Sawant Hindustan Construction Company Ltd +91 22 2575 1000. Mobile: +91 98339 92874

Walker Chandiok & Co LLP 1 lth floor, Tower II, One International Center, SB Marg, Prabhadevi (W) Mumbai - 400 013 lndia

lndependent Auditor's Review Report on Standalone Unaudited Quarterly Financial Results and Year to Date Results of the Company Pursuant to the Regulation 33 of the SEBl (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

To the Board of Directors of Hindustan Construction Company Limited

1. We have reviewed the accompanying statement of standalone unaudited financial results ('the Statement') of Hindustan Construction Company Limited ('the Company') and its joint operations (Refer Annexure 1 for the list of joint operations included in the Statement) for the quarter ended 31 December 2020 and the year to date results for the period 01 April 2020 to 31 December2020, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBl (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), including relevant circulars issued by the SEBl from time to time. Attention is drawn to the fact that the Note 2 to the Statement regarding 'total balance value of work on hand as at 31 December 20201, as included in the Statement has been approved by the Board of Directors but has not been subjected to audit or review.
The Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, lnterim Financial Reporting ('lnd AS 347, prescribed under Section 133 of the Companies Act, 2013 ('the Act'), and other accounting principles generally accepted in lndia and is in compliance with the presentation and disclosure requirements of Regulation 33 of the SEBl (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), including relevant circulars issued by the SEBl from time to time. Our responsibility is to express a conclusion on the Statement based on our review.
1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, Review of Interim Financial Information Performed by the lndependent Auditor of the Entity, issued by the Institute of Chartered Accountants of India. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the Standards on Auditing specified under section 143(10) of the Act, and consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Page 1 of 6

Olces in Bengaluru. Chandigarh. Chennai, Gurugram, Hyderabad. Kochi, Kolkala, Mumbai, New Delhi, Noida and Pune number AAC-2085 and its registered oRce

Chartered Accountanh Walker Chandiok d Co LLP is registered with limited liability with identification at L41 Connaught Circus. New Delhi, 11 0001, lndia

Hindustan Construction Company Limited

Independent Auditor's Review Report on Standalone Unaudited Quarterly Financial Results and Year to Date Results of the Company Pursuant to the Regulation 33 of the SEBl (Listing Obligations and Disclosure Requirements) Regulations, 201 5 (as amended)

4. As stated in:
(i) Note 5 to the accompanying Statement, the Company has accounted for managerial remuneration paid1 payable to Whole Time Directors (including Chairman and Managing Director) of the Company aggregating t 23.70 crore for the financial year ended 31 March 2020 and for the nine month ended 31 December 2020, in excess of the limits prescribed under Section 197 of the Act, in respect of which approvals from the shareholders have been obtained, however prior approval from the lenders of the Company in accordance with Section 197 has not been obtained by the Company.

During the current quarter, the Company has adjusted excess remuneration paid to the Chairman and Managing Director for the financial year ended 31 March 2014 with remuneration accrued but not paid for the financial year ended 31 March 2015. Further, the Company has not recovered the excess remuneration aggregating ? 8.69 crore paid to the Chairman and Managing Director for the financial year ended 31 March 2016. In the absence of the requisite prior approval from lenders in accordance with Section 197, the above adjustments and non-recovery of excess managerial remuneration of the Chairman and Managing Director is not in compliance with the provisions of the Section 197 of the Act.

Our audit report dated 9 July 2020 on the standalone financial results for the year ended 31 March 2020 and review reports dated 12 November 2020 and 6 February 2020 on the standalone financial results of the Company for the quarter and six month ended 30 September 2020 and quarter and nine month ended 31 December 2019, respectively, were also qualified in respect of this matter.

(ii) Note 7 to the accompanying Statement, the Company's non-current borrowings, current borrowings and other current financial liabilities as at 31 December 2020 include balances amounting to t 273.56 crore, f 9.57 crore and ? 399.68 crore, respectively, in respect of which confirmationsl statements from the respective banksl lenders have not been provided to us by the management of the Company. Further, in respect of certain loans while the principal balances have been confirmed from the confirmationsl statements issued by banks I lenders, the interest accrued amounting to t 87.50 crore has not been confirmed by the banksl lenders. The aforesaid balances have been classified into current and non-current, basis the original maturity terms stated in the agreements which is not in accordance with the terms of the agreements relating to the implications in the event of default. Further, confirmations1 statements from banks have not been received for earmarked balances (included under bank balances other than cash and cash equivalents) as at 31 December 2020 amounting to t 20.97 crore.

In the absence of such confirmationsl statements from banksl lenders or sufficient and appropriate alternate audit evidence, we are unable to comment on the adjustments and changes in classification of balances in accordance with the principles of Ind AS 1, Presentation of financial statements, if any, that may be required to the carrying value of the aforementioned balances in the accompanying Statement. Our audit report dated 9 July 2020 on the standalone financial results for the year ended 31 March 2020 and review report dated 12 November 2020 on the standalone financial results of the Company for the quarter and six month ended 30 September 2020 were also qualified in respect of this matter.

(iii) Note Il(b) to the accompanying Statement, the Company had written back a loss provision aggregating t 331.40 crore during the quarter ended 31 December 2019, which was earlier recognised by the Company during the year ended 31 March 2019 in cognizance of the assignment of beneficial interests I rights in a portfolio of identified arbitration awards and claims based on a non-binding term sheet with a consortium of investors along with a letter of commitment, due to cancellation of the said proposed transaction. However, such write-back is inconsistent with the continued intent of the Company to sell I assign the arbitration awards and claims of the Company to other potential investors as evidenced in the proposed resolution plan with lenders. Pending the finalization of the proposed resolution plan with lenders, we are unable to comment on the extent of loss provision required to be provided for in the financial results as at 31 December 2020. Our audit report dated 9 July 2020 on the standalone financial results for the year ended 31 March 2020 and review reports dated 12 November 2020 and 6 February 2020 on the standalone financial results of the Company for the quarter and six month ended 30 September 2020 and quarter and nine month ended 31 December 2019, respectively, were also qualified in respect of this matter.

Chartered Account.nt.

Page 2 of 6

Hindustan Construction Company Limited

(iv) Note 10 to the accompanying Statement, the Company has recognised net deferred tax assets amounting to t 670.14 crore outstanding as at 31 December 2020, on account of carried forward unused tax losses, unused tax credits and other taxable temporary differences which are continued to be recognised by the Company on the basis of expected availability of future taxable profits for utilization of such deferred tax assets. However, in view of the continued losses incurred by the Company, uncertainty with respect to outcome of the resolution plan and the impact of COVID-19 on business operations, we are unable to obtain sufficient appropriate audit evidence with respect to the current projections prepared by the management and therefore, are unable to comment on any adjustments that may be required to the carrying value of aforesaid net deferred tax assets as at 31 December 2020. Our audit report dated 9 July 2020 on the standalone financial results for the year ended 31 March 2020 and review report dated 12 November 2020 on the standalone financial results of the Company for the quarter and six month ended 30 September 2020 were also qualified in respect of this matter.
5. Based on our review conducted as above and consideration of the review report of the other auditor referred to in paragraph 8 below, except for the effects1 possible effects of the matters described in previous section, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in Ind AS 34, prescribed under Section 133 of the Act, and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in accordance with the requirements of Regulation 33 of the SEBl (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), including the manner in which it is to be disclosed, or that it contains any material misstatement.

Material Uncertainty on Going Concern

1. We draw attention to Note 9 to the accompanying Statement which indicates that the Company has incurred a net loss of t 476.26 crore during the nine months ended 31 December 2020 and, as of that date, the Company's accumulated losses amounts to t 2,243.92 crore which have resulted in substantial erosion of net worth of the Company and the current liabilities have exceeded its current assets by t 2,064.84 crore as at 31 December 2020. As further disclosed in aforesaid note, the Company has continued to default in repayment of principal and interest in respect of its borrowings and has overdue operational creditors outstanding as at 31 December 2020. A financial creditor and certain operational creditors have also applied to the National Company Law Tribunal ('NCLT') for the debt resolution under the Insolvency and Bankruptcy Code, 2016, which have not been admitted by the NCLT for further proceedings as of the date of this report. The above factors, together with uncertainties relating to the impact of the ongoing COVID-19 pandemic on the operations of the Company as described in Note 8 to the Statement, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. However, based on ongoing discussion and re-negotiations with lenders, including lenders of an erstwhile subsidiary, for restructuring of loans which are subject to their internal approvals, revised business plans and other mitigating factors as mentioned in the Note 9, management is of the view that going concern basis of accounting is appropriate for preparation of the accompanying Statement. Our conclusion is not modified in respect of this matter.
1. We draw attention to:
(i) Note 8 to the accompanying Statement, which describes the effects of uncertainties relating to COVID-19 pandemic outbreak on the Company's operations and management's evaluation of its impact on the accompanying Statement as at the reporting date, the extent of which is significantly dependent on future developments.

Chartered Accountants

Hindustan Construction Company Limited

(ii) Note 6 to the accompanying Statement in relation to the rectification of the method of measuring the progress towards satisfaction of performance obligation for revenue recognition from output method to input method. Consequent to the aforementioned rectification and the resultant change in accounting policy, the Company has restated the comparative financial information for the quarter ended 31 December 2019 and year to date results for the period 01 April 2019 to 31 December 2019 included in the accompanying Statement, in accordance with the requirements of Ind-AS 8 - 'Accounting Policies, Changes in Accounting Estimates and Errors'.
(iii) Note 3 to the accompanying Statement, regarding the Company's non-current investment (including deemed investment) in a subsidiary company, HCC Infrastructure Company Limited, aggregating f 1,571.65 crore as at 31 December 2020. The consolidated net-worth of the aforesaid subsidiary is fully eroded; however, based on certain estimates and other factors, including subsidiary's future business plans, growth prospects, valuation report from an independent valuer and expected outcome of the negotiation1 discussion1 arbitrationl litigations and legal advice in respect of certain claims, as described in the said note, management believes that the realizable amount is higher than the carrying value of the non-current investment due to which this is considered as good and recoverable.
(iv) Note 4 to the accompanying Statement, regarding uncertainties relating to recoverability of unbilled work-in-progress (other current assets) and current trade receivables amounting to f 863.48 crore and f 387.72 crore, respectively, as at 31 December 2020, which represent various claims raised in the earlier years in respect of projects closed1 substantially closedl suspended. Further, non-current trade receivables and current trade receivables as at 31 December 2020 includes ? 2,062.68 crore and f 924.39 crore, respectively, representing favourable arbitration awards (including interest thereon) which have subsequently been challenged by the clients in courts. Further, during the previous quarters, the Company had initiated and settled two favourable arbitration awards with one of the customers amounting to f 578.12 crore at a loss of? 326.83 crore, which has been considered as an exceptional item as further described in Note I l(a) to the accompanying Statement. The Company is also in active discussions with one of its customers to conciliate another favourable arbitration awards received and the claims made by the Company with respect to non-current trade receivables, current trade receivables and unbilled work-in-progress (Other current assets) amounting to t 118.34 crore, f 215.94 crore and f 470.71 crore. The aforementioned receivables are presently under various stages of negotiations1 arbitration1 litigation with client. Based on the current progress in each case1 related legal opinions, management is of the view that the aforementioned balances are fully recoverable.

Our conclusion is not modified in respect of the above matters.

8. We did not review the interim financial statements of one (1) joint operation, whose interim financial statements reflects revenues off 60.65 crore and f 125.20 crore, net profit after tax of t 11.60 crore and t 8.31 crore, total comprehensive income off 11.60 crore and f 8.31 crore for the quarter and nine month ended 31 December 2020, respectively, as considered in the accompanying Statement. This interim financial statements has been reviewed by other auditor whose report has been furnished to us by the management, and our conclusion in so far as it relates to the amounts and disclosures included in respect of this joint operation is based solely on the review report of such other auditor, and the procedures performed by us as stated in paragraph 3 above.

Our conclusion is not modified in respect of this matter with respect to our reliance on the work done by and the report of the other auditor.

Hindustan Construction Company Limited

Independent Auditor's Review Report on Standalone Unaudited Quarterly Financial Results and Year to Date Results of the Company Pursuant to the Regulation 33 of the SEBl (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

9. The Statement also includes the interim financial statementsl financial informationl financial results of six (6) joint operations, which have not been reviewed1 audited by their auditor, whose interim financial statementsl financial informationl financial results reflects total revenue of Nil and t 0.76 crore, net profit/ (loss) atler tax oft (0.37) crore and t 0.12 crore, total comprehensive income1 (loss) oft (0.37) crore and t 0.12 crore for the quarter and nine month ended 31 December 2020, respectively, and have been furnished to us by the Company's management. Our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these joint operations, are based solely on such unaudited1 unreviewed interim financial statementsl financial informationl financial results. According to the information and explanations given to us by the management, these interim financial statementsl financial informationl financial results are not material to the Company. Our conclusion is not modified in respect of this matter with respect to our reliance on the financial statementsl informationl results certified by the Board of Directors. ,,- - , CI

Firm F

Place: Mumbai Date: 09 February 2021

Hindustan Construction Company Limited

Annexure 1

List of joint operations included in the Statement

Annexure 1 - List of joint operations included in the Statement Sr. No. Name of the entity 1. Kurnagai-Skanska-HCC-ltochu Group HCC-L & T Purulia Joint Venture 2. Alpine - Sarnsung - HCC Joint Venture 3. 4. Alpine - HCC Joint Venture HCC Sarnsung Joint Venture CC 34 5. HCC - VCCL Joint Venture (w.e.f. 29 January 2020) 6. Nathpa Jhakri Joint Venture 7.








8.	HCC- HDC Joint Venture

	STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTH ENDED 31 DECEMBER 2020
			Quarter ended		? in cmrc Nine month	ended	evcepta,~_g%_pc~h.n~dl Year ended
S r.	PurttcuTars			31 December	31 December	31 December	31 March 202C
NO.		Unaudited	Unaudited	--- 2019 Unaudited Restated -	2020 Unaudited	2019 Unaudited F7eslalod - ReefrNotc B	Audited
1	Income			Rdor Note 6
	(a) Income from operations	814.28	454.12	948.47	1,722.12	2.864.33	3,643.64
	(b) Other income	8.04	12.06	7.11	27.41	24.1 1	32.5C
	TdNll income (a+b)	822.32	466.18	955.58	1,749.53	2,888.44	3.676.14

2	Expenses
	(a) Cost of materials consumed	167.40	91.50	150.87	319.83	528.59	690.76
	(b) Subcontracting expenses	346.08	133.29	395.65	631.68	1,161.20	1,664.80
	(c) Construction expenses (d) Employee benefits expense	69.99	66.29	72.34	171.10	217.23	306.78
	(e) Finance costs	86.42 21 2.72	76.52 195.12	100.99 171.44	244.58 604.87	308.08 527.74	41 3.67 746.15
	(9 Depreciation and amortisation expense	23.11	23.89	27.15	66.92	88.05	109.37
	(g) Other expenses	28.74	49.24	27.25	87.65	80.08	105.53
	Total expenses (a+b+c+d+e+f+g)	934.46	635.85	945.69		2.910.97	4,037.06
3	(Loss) 1 Profit before exceptional items and tax (1-2)	(112.14)	(169.67)	9.89		122.53)	(360.92
4	Exceplional items - gain 1 (loss) (Refer nole 11)	-	(84.46)	-- 331.40		-- 331.40	319.95
5	I Profit before tax (3+4) . (Loss)	(112.141	(254.13)	341.29	(703.93)	308.87	(40.97
6	I Tax expense (credit)
	(a) Current tax	5.30	0.03		5.34	0.05	0.09
	(b) Deferred tax	(38.46)	(74.24)	1 19.07	(233.01)	265.64	127.66
			(74.21)	11907
7 8	(Loss) / Profit for the period / year (5-6) Other comprehensive income 1 (loss) (a) Items not to be reclassified subsequently to profit or loss (net of tax)		f179.92)	222.22
	- Gain 1 (Loss) on fair value of defined benefit plans		0.73	(2.68)
	I - Gain (Loss) on fair value of equity instruments (Refer note 13)		(0.62)	2.20
	(b) Items to be reclassified subsequently to profit or loss I
	Dlhar comprehensive income1 (loss) for the period year, net of tax (a+b)		0.11	(0.48)
9	Total comprehensive (loss) 1 income for the period I year, net of tax (7t8)		(179.81)	221.74	(d69.EO)	31.44	(1 82.59
10	Paid up equity share capital (Face value of T 1 each)		151.31	151.31	151.31	151.31	151.31
11	Other equity (excluding revaluation reserves)						1,027.43
12	Earnings 1 (Loss) per share (Face value off 1 each)
	(a) Basic EPS (not annualised) (in 7)	(0.52)	(1.19)	1.47		0.29
	(b) Diluted EPS (not annualised) (in 7)	(0.52)	(1.19)	1.47	(3.15) (3.15)	0.29	(1.12) (1.12)
	See accompanying notes to the standalone unaudited financial results

/ . - e:d5<-,-'

Notes:

1 The Company is engaged in a single business segment viz. "Engineeting and Constructlon", which is substantially seasonal in character. Further, the Company's margins in the quarterly results vary based on the accrual of cost and recognition of income In different quarters due to nature of its business, receipt of awards / claims or events which lead to revision In cost to completion. Due to thls reason, quarterly results may vary and may not be indicative of annual results.
2 The total balance value of work on hand as at 31 December 2020 is 1 18,541 crore (31 March 2020 ? 16,857 crore).
3 The Company, as at 31 December 2020, has non-current investments amounting to 7 1,571.65 crore In ~ts subsidiary, HCC Infrastructure Company Limited (HIL) which is holding 85.45% in HCC Concessions Limlted (HCL) having various Bulld, Operate and Transfer (BOT) SPVs under its fold. While HIL has incurred losses and consolidated net-worth as at 31 December 2020 has been fully eroded, the underlying projects are expected to achleve adequate profitability on substantlal completion. The net-worth of this subsidiary does not represent its tnre market value as the value of the underlying Investments I assets, based on valuation report of an independent valuer, IS higher. Further BOT SPV's have several clalms including a favorable arbitration award agalnst its customers malnly in respect of cost-overrun arising due to client caused delays, termination of contracts and change in scope of work whlch are under varlous stages of negotiatlon / discussion wllh cllents or under arbitration 1 lltlgation wherein management has been legally advised that it has good case on merlts. Therefore, based on certain estimates like future business plans, growth prospects as well as considering the contractual tenability, progress of negotiation / discussion / arbitrat~on 1 litigations and legal advlce, the management believes that the realizable amount of the subsidiary is higher than the carrying value of the non-current investments due to which these are considered as good and recoverable as at 31 December 2020.
4 Unbilled work-in-progress (other current assets) and current trade receivables as at 31 December 2020 include 7 863.48 crore and t 387.72 crore, respectlvely, representing various claims raised earller, based on the terms and conditions impllclt In the contracts and other recelvables in respect of closedl suspended projects. Further, non-current trade receivables and current trade receivables as at 31 December 2020 also include 7 2,062.68 crore (net of advances off 470.66 crore) and 7 924.39 crore (net of advances off 2,129.25 crore), respectlvely, representing claims awarded in arbltration, Including interest thereon, in favour of the Company which have been challenged by the customers in higher courts. These recelvables are mainly in respect of cost over-run arlslng due to client caused delays, suspension of projects, deviation in design and change in scope of work; for which Company IS at various stages of negotiation1 discussion wilh the clients or under arbitration1 Iltigatlon. Considering the contractual tenability, progress of negotlatlons/ discussions/ arbiBa6onI lit~gatlons and as legally advised, the management is confident of recovery of the carrying value of the aforement~oned receivables and hence no provision IS considered necessary. Further, while the Company continues to legally pursue the aforementioned receivables, the Company IS also in active discussions with a customer to concil~ate favourable arbitration award and claims represented by non-current trade receivables, current trade receivables and unbilled work-in-progress (other current assets) amounting to 7 118.34 crore. 7 215.94 crore and f 470,71 crore, respectively.
5 Pursuant to notification of the Companies (Amendment) Act, 2017 amending Section 197 of the Companies Act. 2013 cthe Act'). with effect from 12 September 2018, the Company's appl~cation to the Ministry of Corporate AAalrs (MCA) for approval In respect of managerial remuneration of Chairman and Managlng Director (CMD) accrued1 paid in excess of the prescribed limit for the tinancials years 2014-15 and 2015-16 stands abated. The Company. vide resolution dated 10 September 2019. has obtained approval from the shareholders for the payment of remuneration in respect of the aforesaid years, to be glven effect to, only post receipt of the approval of the lenders.

During the current quarter, the Company has adjusted excess remuneration pald to the CMD, held In trust, during financial year 2013-14 wlth the unpald remuneration for financial y68r 2014-15 in accordance wlth the approval obtalned from its shareholders in the meeting held on 10 September 2019. The Company has also communicated the lenders of the aforesaid adjustments1 payment vide its letter dated 24 November 2020. These adjustments were carried out by the Company basis the advice recelved from a senior legal counsel which has opined that since the Company had already obtalned approval from the lenders in earlier years through the Monitoring Committee of lenders whlch is still valid and persisting, there is no requirement to obta~n fresh approval from the lenders as Section 197 of the Act abated all applications pending for approval before MCA, as at the date it came in force. Basis #mwa oplnlon, the managerial remuneration paid for financial year 2015-16 also stands regularized.

Further on 26 September 2019, the Company In its shareholders' meeting has also obtained approvals vide special resolutions for managerial remuneration of CMD and Whole Time Directors for the period 1 April 2019 to 31 March 2022, to be given effect to, only post receipt of the approval of lenders Pendlng receipt of lenders approval, managerial remuneration continue to be accrued I paid by the Company as detailed below.

Financialyear Designation Remuneration Remuneration paid Remuneration as per Excess remuneration ' accrued prescribed limit accrued Dl lal [dm*-c) LC) 201 9-20 CMD and Whole Tlme Directors (WTD) 13.571 3.79 13.57 2020-21 , CMD and Whole Time Directors (WD) 10.13 1.0d 10.1 3	Kin cmnl ~xcess remuneration paid
	heL\$jQwUft ie=b-c)
				3-75
				I a8
T d ,	23.70	4.831	23d0	U3

In absence of any speciflc approval from lenders for remuneration payable to CMDI WD for financial years 2014-15, 2015-16, 2019-20 and 2020-21, statutory auditors review report is modified in respect of this matter.

6 During the quarter ended 31 March 2020, the Company changed the method of measuring progress i.e, from output method to Input method as specified In Ind AS 115 -'Revenue from Contract with Customers' consequent lo change in the circumstances Including change in the nature of contracts secured by the Company during recent years. Management believes thal input method, a melhod widely also used by most other engineering and construction companies, would be more rel~able and relevant In measuring the progress of the projects and therefore also be more accurate in measuring the Company's performance in transferring control of goods and seivlces promlsed to the customers until completion of the contracts. Pursuant to the impact of this change in method, the Company has restated the comparative financial statements1 information for the quarter and nine month ended 31 December2019, in accordance wlth the requirements of Ind-AS 8 -'Accounting Policles. Changes in Accounting Estimates and Errors'. The impacts of the restatement are as follows.

Impact on Statement of Profit and Loss

Particulars	Quarter ended 31 December 2019	tr in aWaL Nine Month Ended 31 December2019
Decrease in revenue from operations	(126.40)	(29.52)
Decrease in subcontracting expenses	LlOE,a,lZ)	(14.16)
Increase in loss before tax	(17.63)	(1 5.36)
increase ~n tax credit	6.16	547
Increase in loss for the perlod	(1 1.47)	(9.99)
Increase in total comprehensive loss for the period	(1 1.471	(9.99)
Decrease in basic and dlluted loss per share	(0,081	(0.07)

7 Non-current borrowings, current borrowings, other non-current financlal liabilities and other current financ~allabillties as at 31 December 2020 include balances amounting to 7 273.56 crore (31 March 2020: 7165.55 crore), t 9.57 crore (31 March 2020. Nil), Nil (31 March 2020, f 591.04 crore) and t 399.68 crore (31 March 2020 7 336.82 crore), respectively, in respect of which conf~rmat~onlstatements from the respective banks1 lenders have not been received. Further, in respect of non-current borrowings and current borrowings aggregatlng ¹1,396.01 crore (31 March 2020. 7 864.23 crore), wh~le the lenders have confirmed the principal outstanding, the accrued interest aggregatlng t 87.50 crore (31 March 2020 f 42.76 crore) have not been conf~rmed. In the absence of confirmat~ons/ statements from the lenders, the Company has provided for Interest and other penal charges on these borrowings based on the latest communicat~on available from the respective lenders at the Interest rate specified in the agreement. The Company's management believes that amount payable on settlement will not exceed the lhability provided in books In respect of these borrowings. Also, the classif~cation of these borrowings into current and non-current as at 31 December 2020 IS also based on the original maturity terms stated in the agreements with the lenders.

Further, earmarked balances (included under bank balances other than cash and cash equivalents) and guarantees issued by banks on behalf of the Company as at 31 December 2020 includes balances amounting to t 20.97 crore (31 March 2020: t 5.46 crore) and Nil (31 March 2020. f 76.93 crore), respectively, in respect of which confirmatlonl statements from banks have not been received insplte of incessant efforts by the Company's management.

Statutory audltors review report IS modified in respect of this matter.

8 The outbreak of COVID-19 pandemic had dlsmpted regular business operatlons of the Company due to the lock down restrictions and other emergency measures imposed by the Government from time to time. The bus~ness operations are gradually reaching normalcy. Accordingly, the results for the quarter are not comparable with those for the previous quarters.

The management has taken Into account the possible impacts of known events, upto the date of the approval of these financlal results, arising from COVID-I9 pandemlc on the carrying value of the assets and lhabllities as at 31 December 2020. However, there exlsts significant estimation uncertainty In relatlon to the future impact of COVID-19 pandemic on the Company and, accordingly, the actual impact in the future may be different from those presently estimated. The Company will continue to monitor any materlal change to the future economlc conditions and consequentlal impact on the financial results.

9 The Company has incurred net loss of? 476.26 crore during the nlne month ended 31 December 2020 and as of that date has accumulated losses aggregating t 2,243.92 crore which has resulted in substantial eroslon of its net worth and its current lhabilitles exceeded 1:s current assets by ? 2,064.84 crore. The Company also continues to default on payment to lenders along with overdue to operational creditors. A financial creditor and certain operational creditors have applied before the National Company Law Tribunal ('NCLT) for the debt resolution under the Insolvency and Bankruptcy Code, 2016, none of which has been admitted so far. Further, the COVID-19 pandemic has also disrupted business operations of the Company durlng the period and there continues to exlst uncertainty with respect to the pandemic on Company's operations. The above factors indicate that events or conditlons exist. which may cast significant doubt on the entity's ability to continue as a going concern.

The Company is in advanced stages of completing a resolution plan with lenders of the Company. The resolution plan also includes debt resolution in respect of lenders of an erstwhile subsidiary, whose liabilities were taken over by the Company in earller years at settlement value bas~s the settlement terms entered between the Company and lenders. The Resolution plan of lenders has undergone changes from time to time in respect of agreed terms, including In current quarter. The Resolution Plan has received an ln-principal approval from respeclive lenders and is subject to final approval by their respective BoardICommittees, post approval from Overseeing Committee (OC) appointed by Reserve Bank of India.

Further, based on the expectation of the implementation of the Resolution Plan with lenders, underlying strength of the Companqs business plans and future growth outlook as assessed, the management is confident of improving the credit profile of the Company, including through time-bound monetisation of assets including arbltration awards, claims and other assets which would result in it being able to meet its obligations in due course of time. Accordingly, the Management considers it appropriate to prepare these financial results on a gang concern basis,
10 On 20 September2019. vide the Taxation Laws (Amendment) Ordinance 2019, the Government of India inserted Section I 15BAA in the Income Tax Act. 1961 which provides domestic companies a non-reversible option to pay corporate tax at reduced rates effective 1 April 2019 subject to certain cond~t~ons. However. the Company having significant amount of brought forward tax losses and unabsorbed depreciation on which deferred tax asset has been recognised, is still evaluating and has not yet elected to exercise the option permitted under section 115BAA In vlew of the above, there is no impact of the new tax rate on the standalone financial results for the current period.

As at 31 December 2020. the Company continues to recognize net deferred tax assets amounting to t 670.14 crore (31 March 2020 f 437.08 crore) on account of carried forward unused tax losses, unused tax credits and other taxable temporary differences. Based on the expected profits from the unexecuted orders on hand, outcome of the ongoing discussion with lenders for restructuring of loans and expected settlement of arbitration awards, the Company management is confident that sufficient future taxable income will be available against which such deferred tax assets will be realized.

Statutory auditors review report is modltied in respect of thls matter.

11

Note:

(I) During the current period, the Company has entered into Settlement Agreements with one of its customers to conciliate long pending dispute in respect of the Arbltration Awards published in Company's favour, for ho projects completed during earlier years, which were being contested by the customer before the Hon'ble High Courts. Pursuant to these settlements. the Company has realised f 32.35 crore and f 218.94 crore as full and final settlement with an understanding that all pending disputes stand resolved. The resultant loss f 84.46 crore and t 326.83 crore has been recogised by the Company as an exceptional loss in the financial results for the quarter ended 30 September 2020 and nine month ended 31 December 2020, respectively.

Though the Company had a fair chance to recover entire money over the period, however, considering the time involved in the litigation and urgent need to realize monies urgently to tle up its cashflow deficit for its operatlons, the Company opted for th~s conciliation, as per the scheme provided uls 73 of Arbitration and Conclliatlon Act, 2015 by Mlnistry of Road Transport Highways.

(ii) During the quarter ended 31 March 2019, the Company had recognized a provision of P 331.40 crore pursuant to the signlng of a non-binding term sheet with a consortium of investors along wlth a letter of commltment, for an assignment of the beneficial interest In portfolio of identified arbltration awards and clalms ('specified assets') for an aggregate consideration of 7 1,750 crore. The sald provision continued thereafter In view of mutual extension of the said transactlon till 31 December 2019. In the absence of any further extenslon, the Company decided to cancel this proposed transactlon, whlch had been reported to and confirmed by statutory auditors. Pursuant to the cancellation of the aforesaid transaction, the provision of 7 331.40 crore, related to specified assets, recognized earlier has been written back during the prevlous year. Statutory aud~tors review report is moditied in respect of reversal of aforesaid provis~on,

12 The Code on Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on whlch the Code will come into effect has not been nolified. The Company will assess the impact of the Code when it comes Into effect and will record any related impact In the period the Code becomes effective.
13 Gain I (loss) on fair valuation of equity instruments' represents movement in carrylng value of flnancial assets (investments) measured at fair value through Other comprehensive income.
14 Previous quarters1 year figures have been regrouped I reclassified, wherever considered necessary lo conform to current period.
15 These financial results have been prepared to comply in all material respects with the Indian Accounting Standards ('lnd AS') as prescribed under Sectlon 133 of the Companies Act. 2013 ('the Act') read with Companies (Indian Accounting Standards) Rules as amended from time to time. The Audit Committee has reviewed these results and the Board of Directors have approved the above standalone unaudited financial results at their respective meetlngs held on 9 February 2021. u

for Hindustan Construction Company Limited

,<./---- ZT Gulabchand

Ajit

Mumbai, Date: 9 February 2021 Chairman & Manam Dieclnr

Walker Chandiok 8 Co LLP I lth floor, Tower II, One International Center, SB Marg, Prabhadevi (W) Mumbai - 400 013 lndia

lndependent Auditor's Review Report on Consolidated Unaudited Quarterly Financial Results and Year to Date Results of the Company Pursuant to the Regulation 33 of the SEBl (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)

To the Board of Directors of Hindustan Construction Company Limited

1. We have reviewed the accompanying statement of unaudited consolidated financial results ('the Statement') of Hindustan Construction Company Limited ('the Holding Company') and its subsidiaries (the Holding Company and its subsidiaries together referred to as 'the Group'), its associates, joint ventures and joint operations (refer Annexure 1 for the list of subsidiaries, associates, joint ventures and joint operations included in the Statement) for the quarter ended 31 December 2020 and the consolidated year to date results for the period 01 April 2020 to 31 December 2020, being submitted by the Holding Company pursuant to the requirements of Regulation 33 of the SEBl (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), including relevant circulars issued by the SEBl from time to time.
This Statement, which is the responsibility of the Holding Company's management and approved by the Holding Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, Interim Financial Reporting ('lnd AS 347, prescribed under section 133 of the Companies Act, 201 3 ('the Act'), and other accounting principles generally accepted in lndia and is in compliance with the presentation and disclosure requirements of Regulation 33 of the SEBl (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), including relevant circulars issued by the SEBl from time to time. Our responsibility is to express a conclusion on the Statement based on our review.
1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, Review of Interim Financial Information Performed by the lndependent Auditor of the Entity, issued by the Institute of Chartered Accountants of India. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the Standards on Auditing specified under section 143(10) of the Act, and consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We also performed procedures in accordance with the SEBl Circular CIRICFDICMD1/44/2019 dated 29 March 2019 issued by the SEBl under Regulation 33 (8) of the SEBl (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), to the extent applicable.

Page 1 of 7

ORces in Bengaluru. Chandigarh. Chennai, Gurugram, Hyderabad, Kochi, Kolkala. Mumbai, New Delhi, Noida and Pune number AAC-2085 and ik registered office

Chartered Accountanb Walker Chandiok 8 Co LLP is registered with limited liability with identification at L-41 Connaught Circus, New Delhi, 110001, lndia

Hindustan Construction Company Limited

Independent Auditor's Review Report on Consolidated Unaudited Quarterly Financial Results and Year to Date Results of the Company Pursuant to the Regulation 33 of the SEBl (Listing Obligations and Disclosure Requirements) Regulations, 201 5 (as amended)

1. As stated in:
(i) Note 5 to the accompanying Statement, the Holding Company has accounted for managerial remuneration paid1 payable to Whole Time Directors (including Chairman and Managing Director) of the Holding Company aggregating t 23.70 crore for the financial year ended 31 March 2020 and for the nine month ended 31 December 2020, in excess of the limits prescribed under Section 197 of the Act, in respect of which approvals from the shareholders have been obtained, however prior approval from the lenders of the Holding Company in accordance with Section 197 has not been obtained by the Holding Company.

During the current quarter, the Holding Company has adjusted excess remuneration paid to the Chairman and Managing Director for the financial year ended 31 March 2014 with remuneration accrued but not paid for the financial year ended 31 March 2015. The Holding Company has not recovered the excess remuneration aggregating t 8.69 crore paid to the Chairman and Managing Director for the financial year ended 31 March 2016. In the absence of the requisite prior approval from lenders in accordance with Section 197, the above adjustments and non-recovery of excess managerial remuneration to the Chairman and Managing Director is not in compliance with the provisions of the Section 197 of the Act.

Our audit report dated 9 July 2020 on the consolidated financial results for the year ended 31 March 2020 and review reports dated 12 November 2020 and 06 February 2020 on the consolidated financial results of the Group for the quarter and six month ended 30 September 2020 and quarter and nine month ended 31 December 2019, respectively, were also qualified in respect of this matter.

(ii) Note 9 to the accompanying Statement, the Group's non-current borrowings, current borrowings and other current financial liabilities as at 31 December 2020 include balances amounting to t 279.59 crore, t 9.57 crore and t 399.71 crore, respectively, in respect of which confirmations1 statements from the respective banks1 lenders have not been provided to us by the management of the Group. Further, in respect of certain loans while the principal balances have been confirmed from the confirmations1 statements issued by banks I lenders, the interest accrued amounting to t 87.50 crore has not been confirmed by the banks1 lenders. The aforesaid balances have been classified into current and non-current, basis the original maturity terms stated in the agreements which is not in accordance with the terms of the agreements relating to the implications in the event of default. Further, confirmations1 statements from banks have not been received for earmarked balances (included under bank balances other than cash and cash equivalents) as at 31 December 2020 amounting to Z 20.97 crore.

In the absence of such confirmationsl statements from banks1 lenders or sufficient and appropriate alternate audit evidence, we are unable to comment on the adjustments and changes in classification of balances in accordance with the principles of Ind AS 1, Presentation of financial statements, if any, that may be required to the carrying value of the aforementioned balances in the accompanying Statement. Our audit report dated 09 July 2020 on the consolidated financial results for the year ended 31 March 2020 and review report dated 12 November 2020 on the consolidated financial results of the Group for the quarter and six month ended 30 September 2020 were also qualified in respect of this matter.

(iii) Note 10(b) to the accompanying Statement, the Holding Company had written back a loss provision aggregating t 331.40 crore during the quarter ended 31 December 2019, which was earlier recognised by the Holding Company during the year ended 31 March 2019 in cognizance of the assignment of beneficial interests I rights in a portfolio of identified arbitration awards and claims based on a non-binding term sheet with a consortium of investors along with a letter of commitment, due to cancellation of the said proposed transaction. However, such write-back is inconsistent with the continued intent of the Holding Company to sell I assign the arbitration awards and claims of the Holding Company to other potential investors as evidenced in the proposed resolution plan with lenders. Pending the finalization of the proposed resolution plan with lenders, we are unable to comment on the extent of loss provision required to be provided for in the financial results as at 31 December 2020. Our audit report dated 09 July 2020 on the consolidated financial results for the year ended 31 March 2020 and review reports dated 12 November 2020 and 06 February 2020 on the consolidated financial results of the Group for the quarter and six month ended 30 September 2020 and quarter and nine month ended 31 December 2019, respectively, were also qualified in respect of this matter.

Chaltered Accountants

Page 2 of 7

Hindustan Construction Company Limited

Independent Auditor's Review Report on Consolidated Unaudited Quarterly Financial Results and Year to Date Results of the Company Pursuant to the Regulation 33 of the SEBl (Listing Obligations and Disclosure Requirements) Regulations, 201 5 (as amended)

(iv) Note 6 to the accompanying Statement, the Holding Company has recognised net deferred tax assets amounting to P 670.14 crore outstanding as at 31 December 2020, on account of carried forward unused tax losses, unused tax credits and other taxable temporary differences which are continued to be recognised by the Holding Company on the basis of expected availability of future taxable profits for utilization of such deferred tax assets. However, in view of the continued losses incurred by the Holding Company, uncertainty with respect to outcome of resolution plan and the impact of COVID-19 on business operations, we are unable to obtain sufficient appropriate audit evidence with respect to the current projections prepared by the management and therefore, are unable to comment on any adjustments that may be required to the carrying value of aforesaid net deferred tax assets as at 31 December 2020. Our audit report dated 09 July 2020 on the consolidated financial results for the year ended 31 March 2020 and review report dated 12 November 2020 on the consolidated financial results of the Group for the quarter and six month ended 30 September 2020 were also qualified in respect of this matter.
5. As stated in Note 15 to the accompanying Statement, the following qualification is given by another firm of Chartered Accountants vide their report dated 5 February 2021 on the financial results of HCC Operations and Maintenance Limited, a step-down subsidiary of the Holding Company, which is reproduced by us as under:

Opportunities Pte I Limited (IOPL) for purchasing of debentures of Lavasa Corp Limited, in the event of any default. As per terms of the agreement, Company has committed to purchase debentures from SSG and IOPL in the event of default by issuer for an aggregate consideration of P 138 crore plus interest @ 10.27 % per annum. The Company has not accounted interest cost of P 79.07 crore but has disclosed the same as contingent liability. This has resulted in understatement of loss for the period by P 79.07 crore and over statement of contingent liability by Z 79.07 crore and understatement of current financial liabilities by the same amount."

Our audit report dated 9 July 2020 and review report dated 12 November 2020 on the consolidated financial results of the Group for the year ended 31 March 2020 and for the quarter and six month ended 30 September 2020, respectively, were also qualified in respect of this matter.

6. Based on our review conducted and procedures performed as stated in paragraph 3 above and upon consideration of the review reports of the other auditors referred to in paragraph 9 below, except for the effects1 possible effects of the matters described in previous sections, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in Ind AS 34, prescribed under Section 133 of the Act, and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in accordance with the requirements of Regulation 33 of the SEBl (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended), including the manner in which it is to be disclosed, or that it contains any material misstatement.

Material Uncertainty on Going Concern

We draw attention to Note 7 to the accompanying Statement, which indicates that the Group has incurred a net loss of Z 767.30 crore during the nine months ended 31 December 2020 and, as of that date, the Group's accumulated losses amounts to ? 4,414.02 crore which have resulted in complete erosion of net worth of the Group and the current liabilities have exceeded its current assets by P 2,355.55 crore as at 31 December 2020. As further disclosed in aforesaid note, the Holding Company has continued to default in repayment of principal and interest in respect of its borrowings and has overdue operational creditors outstanding as at 31 December 2020. A financial creditor and certain operational creditors have also applied to the National Company Law Tribunal ('NCLT') for the debt resolution under the Insolvency and Bankruptcy Code, 2016, which have not been admitted by the NCLT for further proceedings as of the date of this report. The above factors, together with uncertainties relating to the impact of the ongoing COVID-19 pandemic on the operations

Hindustan Construction Company Limited

of the Group as described in Note 4 to the Statement, indicate that a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern. However, based on ongoing discussion and re-negotiations with the lenders, including lenders of an erstwhile subsidiary, whose liability is recognied at settlement values, for restructuring of loans which are subject to their internal approvals, revised business plans and other mitigating factors as mentioned in the Note 7, management is of the view that going concern basis of accounting is appropriate for preparation of the accompanying Statement.

The component auditors of two (2) subsidiaries, one (1) foreign subsidiary group {comprising of six (6) step-down subsidiaries, four (4) associates and two (2) joint ventures) and two (2) joint ventures have also reported material uncertainty relating to going concern in their review reports on the respective standalone1 consolidated financial results1 information of such companies 1 group as at and for the quarter and nine-month period ended 31 December 2020. Our conclusion is not modified in respect of this matter.

8. We draw attention to:
(i) Note 4 to the accompanying Statement, which describes the effects of uncertainties relating to COVID-19 pandemic outbreak on the Group's operations and management's evaluation of its impact on the accompanying Statement as at the reporting date, the extent of which is significantly dependent on future developments.
(ii) Note 8 to the accompanying Statement in relation to the rectification of the method of measuring the progress towards satisfaction of performance obligation for revenue recognition from output method to input method. Consequent to the aforementioned rectification and the resultant change in accounting policy, the Group has restated the comparative financial information for the quarter ended 31 December 2019 and year to date results for the period 01 April 2019 to 31 December 2019 included in the accompanying Statement, in accordance with the requirements of Ind-AS 8 - 'Accounting Policies, Changes in Accounting Estimates and Errors'.
(iii)Note 2 to the accompanying Statement, regarding uncertainties relating to recoverability of unbilled work-in-progress (other current assets) and current trade receivables belonging to the Holding Company amounting to B 863.48 crore and B 387.72 crore, respectively, as at 31 December 2020, which represent various claims raised in the earlier years in respect of projects closed1 substantially closed1 suspended. Further, non-current trade receivables and current trade receivables as at 31 December 2020 includes ^B2,062.68 cmre and f 924.39 crore, respectively, representing favourable arbitration awards (including interest thereon) which have subsequently been challenged by the clients in courts. Further, during the nine month ended 31 December 2020, the Holding Company has initiated and settled two favourable arbitration awards with one of the customers amounting to B 578.12 crore at a loss off 326.83 crore, which has been considered as an exceptional item as further described in Note lO(a) to the accompanying Statement. The Holding Company is also in active discussions with one of its customers to conciliate another favourable arbitration awards received and the claims made by the Holding Company with respect to non-current trade receivables, current trade receivables and unbilled work-in-progress (Other current assets) amounting to P 118.34 crore, P 215.94 crore and P 470.71 crore. The aforementioned receivables are presently under various stages of negotiations1 arbitration1 litigation with client. Based on the current progress in each case1 related legal opinions, management is of the view that the aforementioned balances are fully recoverable.
(iv)Note 3 to the accompanying Statement, regarding Group's non-current investment in HCC Concessions Limited ('HCL'), a Joint Venture Campany of HCC Infrastructure Company Limited ('HICL'), a wholly owned subsidiary of the Holding Company, aggregating P 96.09 crore as at 31 December 2020. The consolidated net-worth of the aforesaid joint venture, has been partially eroded; however, based on certain estimates and other factors, including the joint venture's future business plans, growth prospects, valuation report from an independent valuer and expected outcome of the negotiation1 discussion1 arbitrationl litigations and legal advice in respect of favorable arbitration award and claims, as described in the said note, management believes that the realizable amount is higher than the carrying value of the non-current investment due to which this is considered as good and recoverable.

Chartered Accountants

Hindustan Construction Company Limited

(v) Note 12 to the accompanying Statement, regarding the exercise of put option right by put option holders, issued by HREL Real Estate Limited ('HREL'), a subsidiary of the Holding Company, on the compulsory convertible preference shares of its erstwhile subsidiary, Lavasa Corporation Limited (LCL) and invocation of corporate guarantees by the lenders of LCL and its erstwhile step down subsidiary, Warasgaon Assets Maintenance Limited, subsequent to the initiation of Corporate Insolvency Resolution Process ('CIRP') by Hon'ble National Company Law Tribunal, Mumbai. In view of the uncertainty associated with the outcome of the proceedings of CIRP, the resultant obligations on HREL in respect of the corporate guarantee and 1 or put options cannot be measured with sufficient reliability and accordingly have been reported as a Contingent Liability as at 31 December 2020 in accordance with the provisions of Ind AS 37, Provisions, Contingent Liabilities and Contingent Assets.
(vi)Note 13 to the accompanying Statement on following emphasis of matter included in the review report on the financial results of Baharampore Farakka Highways Limited, a subsidiary of the joint venture of the Holding Company, issued by an independent firm of Chartered Accountants, vide their report dated 05 February 2021, on matter which is relevant to our conclusion on the consolidated financial results of the Group, and reproduced by us as under:

"Note XX of notes to accounts, National Highway Authority of lndia had served 'Intention to Issue Termination Notice' vide letter dated 24 August 201 7 and the Company refuted all the alleged defaults. The lndependent Engineer has recommended the Authority to withdraw intention to issue termination notice on 26 June 201 9."

(vii) Notes 14 and 17 to the accompanying Statement on following emphasis of matters included in the review report on the financial results of Raiganj Dalkhola Highways Limited, a subsidiary of the joint venture of the Holding Company, issued by an independent firm of Chartered Accountants, vide their report dated 05 February 2021, on matters which are relevant to our conclusion on the consolidated financial results of the Group, and reproduced by us as under:

"Note XX of notes to accounts, National Highways Authority of lndia (NHAI) has served notice of termination of contract to the Company vide letter dated 31 March 2017 due to delay in re-start of work at project. For the reasons mentioned in the note, as the Company is confident of full recovery of its claims of C 367 crore made before the arbitration for wrong full termination of the project. In view of this the cost incurred by the Company till 31 March 2017 appearing under receivable from NHAI amounting to ? 177.42 crore is considered fully recoverable by the management."

"Note XX and XX of notes to accounts, the Company had taken term loans from consortium of banks and financial institution. The Company borrowings have been classified as non-performing assets by the lenders due to defaults in payment of related dues. Balances of outstanding borrowings from the lenders including interest thereon as recorded in books of accounts of Company are unconfirmed (except Yes Bank)."

Our conclusion is not modified in respect of the above matters.

9. We did not review the interim financial statementslfinancial informationl financial results of nine (9) subsidiaries included in the Statement whose financial information reflects total revenues of ? 1,588.59 crore and t 4,163.19 crore, total net profitl (loss) after tax of C 202.17 crore and C (34.70) crore, total comprehensive incomel (loss) of C 178.57 crore and C (49.05) crore, for the quarter and nine months ended on 31 December 2020, respectively, as considered in the Statement. The Statement also includes the Group's share of net profitl (loss) after tax of C 4.90 crore and C (35.1 7) crore and total comprehensive incomel (loss) of C 4.90 crore and ? (35.1 7) crore for the quarter and nine months ended on 31 December 2020, respectively, as considered in the Statement, in respect of four (4) associates and seven (7) joint ventures, whose interim financial statements1 financial informationl financial results have not been reviewed by us. Further, we did not review the interim financial statements of one (1) joint operation, whose

Chartered Accounbnta

Hindustan Construction Company Limited

interim financial statements reflects revenues of t 60.65 crore and f 125.20 crore, net profit after tax of t 11.60 crore and t 8.31 crore, total comprehensive income of t 11.60 crore and f 8.31 crore for the quarter and nine month ended 31 December 2020, respectively, as considered in the accompanying Statement. These interim financial staternentsl financial information1 financial results have been reviewed by other auditors whose review reports have been furnished to us by the management, and our conclusion in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, associates, joint ventures and joint operation is based solely on the review reports of such other auditors and the procedures performed by us as stated in paragraph 3 above.

Our conclusion is not modified in respect of this matter with respect to our reliance on the work done by and the reports of the other auditors.

The Statement includes the interim financial informationl financial results of two (2) subsidiaries, which have not been reviewed1 audited by their auditors, whose interim financial informationl financial results reflect total revenues off 0.10 crore and f 0.1 0 crore, net profit after tax of t 0.20 crore and t 0.43 crore, total comprehensive income off 0.20 crore and t 0.43 crore for the quarter and nine months ended 31 December 2020 respectively, as considered in the Statement. The Statement also includes the Group's share of total revenues of f Nil and f 0.76 crore, net profit1 (loss) after tax of f (0.37) crore and ? 0.12 crore, total comprehensive income1 (loss) of t (0.37) crore and f 0.12 crore for the quarter and nine months ended 31 December 2020, respectively, in respect of six (6) joint operations, based on their interim financial statementsl financial informationl financial results, which have not been reviewed1 audited by their auditors, and have been furnished to us by the Holding Company's management.

The Statement also includes the Group's share of net profit after tax of f 0.26 crore and t 1.30 crore, and total comprehensive income of f 0.26 crore and t 1.30 crore for the quarter and nine months ended on 31 December 2020, respectively, in respect of one (1) associate, based on their interim financial information, which have not been reviewed1 audited by its auditors, and have been furnished to us by the Holding Company's management.

Our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, associate and joint operations, are based solely on such unaudited1 unreviewed interim financial statements1 financial informationl financial results. According to the information and explanations given to us by the management, these interim financial statements1 financial informationl financial results are not material to the Group. Our conclusion is not modified in respect of this matter with respect to our reliance on the financial statementsl informationl results certified by the Board of Directors.

Place: Mumbai Date: 09 February 2021

Hindustan Construction Company Limited

Annexure 1

List of entities included in the Statement

Subsidiary Companies
HCC Construction Limited	HCC Aviation Limited
Western Securities Limited	Steiner AG
HREL Real Estate Limited (formerly known as	Dhule Palesner Operations & Maintenance Limited

Panchkutir Developers Limited	HCC Power Limited
HCC Mauritius Enterprises Limited	HCC Realty Limited
Highbar Technologies Limited	HCC Operation and Maintenance Limited
HCC Infrastructure Company Limited	HCC Energy Limited
HCC Mauritius Investments Limited	Steiner Promotions et Participations SA
HRL Township Developers Limited	Steiner (Deutschland) GmbH
HRL (Thane) Real Estate Limited	VM + ST AG
Nashik Township Developers Limited	Steiner Leman SAS
Maan Township Developers Limited	Eurohotel SA (upto 29 January 2020)
Manufakt8048 AG	Steiner India Limited
Powai Real Estate Developer Limited

Associates
Highbar Technocrat Limited	Projektentwicklungsges.Parking Kunstmuseum AG
Evostate AG	Evostate lmmobillen AG
MCR Managing Corp. Real Estate

I Joint Venture Joint Operations
HCC Concessions Limited	Kumagai-Skanska-HCC-ltochu Group
Narmada Bridge Tollways Limited	HCC-L&T Purulia Joint Venture
Badarpur Faridabad Tollways Limited	Alpine - Samsung - HCC Joint Venture
Farakka-Raiganj Highways Limited (upto 22	Alpine - HCC Joint Venture
September 2020)
Baharampore-Farakka Highways Limited	HCC Samsung Joint Venture CC 34
Raiganj-Dalkhola Highways Limited
	ARGE Prime Tower, Zijrich
Nathpa Jhakri Joint Venture	Werkarena Basel AG (w.e.f. 19 September 2019)

			Quarter ended		f In crore W&3DIt?amhQ~perShare datp		Year ended
		31 December 31 December 30SBptember			31 December	Nine month ended 31 December
Sr'	Particulars	2020	2020	2019	2020	2019	31 March 2020
No.		Unaudited	Unaubned	Unaudikd	Unaudited	Unaud~ted	Audited
				f?&t%iEd - R&r Wok 8		Restated - Refer Note 8
1	Income
	(a) Income from operations	2,405.51	1,810.17	2 353.15	5,891.56	7,102.29	9,437.06
	(b) Other lncome	11.42	20.91	10.68	45.05	42.90	84.81
	Total income (a+b)	2,416.93	1,831 08	2,363.83	5,936.61	7,145.19	9,521.87
2	Expenses
	(a) Cost of construct~on materials consumed
	(b) Subcontracting expenses
	(c) Changes In lnventorles
	(d) Construction expenses
	(e) Employee beneflts expense
	(f) Flnance costs
	(g) Depreclatlon and amortlsatlon expense
	(h) Other expenses
	Total expenses (a+b+c+d+e+f+g+h)
3	Profiff (Loss) before exceptional items, share of profiff (loss) of associates and joint ventures, and tax (1-2)
4	-at Items - Galnl (Loss) (Refer note 10)
	Profiff (Loss) before share of profiff loss of assoclates and joint ventures and tax (3+4)
6	Share of profit/ (loss) of assoclates and jolnt ventures (net) (Refer note 11)
7	Profiff (Loss) before tax (5+6)
8	Tax expense1 (credlt)
	(a) Current tax (b) Deferred tax

9	I year (7-8) Profiff (Loss) for the period
10	Other comprehensive ~ncomel (loss)
	(a) Items not to be reclasslfied subsequently to proflt or loss (net of tax) - Loss on falr value of deflned benefit plans
	- Galn I (Loss) on falr value of equlty Instruments (Refer note 19)
	(b) Items to be reclasslfied subsequently to proflt or loss
	- Translation galn I (loss) relatlng to forelgn operations I	4.31	1.52	(2733	24.06	(IZAW)	P2871
	Other comprehensive lncomel (loss) for the perlod year, net of tax (a+b)	5.27	(4 60)	(3.70)	19.67	(39.691	(46.00)
11	TOM comprehensive incomel (loss) for the period I year, net of tax (9+10)	12336	(483.21)	------ 219.61	(747.63).	(153.94)	151.03
	Net profiff (loss) attributable to:
	Owners of the parent	118.58	(476.61)	223.31	(767.30)	(1 14-35]	197.03
	I Non - controllhng Interest year attributable to: Other comprehensive incomel (loss) for the period	(O.OO)*	(0 OO)*	O.OO*	(0.00)'	(6.OQY	(0.00)'
	Owners of the parent	5.27	(4.60)		19.67	(39.59)	(46.00)
	Non - controlling Interest	(O.OO)*	(O.OO)*	(3 70) O.OO*	(O.OO)*	(0.rnY	(0.00)'
	I Total comprehensive ~ncomel (loss) for the period year attributable to:
	Owners of the parent Non - controlling Interest	123.85 (0.00)'	(481 21)	219.61	(747.63)	(1 53.94)	151.03
12	Pald up equlty share capltal (Face value of 7 1 each)		(O.Po)*	0.OOh	(0.00)'	(O.OO)*	(0 OO)*
13	Other equlty (excluding revaluation reserves)	151.31	151.31	151.31	151.31	151.31	151.31
	Earn~ngsl (Loss) per share (Face value of f I						(9TOAS)
14	each)
	(a) Baslc EPS (not annual~sed) (~n f) (b) D~luted EPS (not annuallsed) (~n f)	0.78 0.78	(3.15)	1.48 1.48	(5.07)	(0.76)	1.30
	represents amount less than f 1 lakh See accompenyfRg notes to thewsolldated unaud~ted financ~al results		(3.15)		(5.07)	(0 76)	1.30

potos:

1 Hindustan Construction Company Limited (the 'Holding Company') and ~ts subsidiar~es are together referred to as 'the Group' in the following notes These consolidated flnancial results have been prepared to comply In all material respects w~th the lnd~an Accounting Standards ('lnd AS') as prescribed under Sect~on 133 of the Companies Act, 2013 ('the Acl') read with Companies (Ind~an Accounting Standards) Rules as amended from time to time. The Audit Committee has rev~ewed these results and the Board of Directors have approved the above consolidated unaudited financlal results at their respectlve meetings held on 9 February 2021.

2 Unbilled work-in-progress (other current assets) and current trade receivables as at 31 December 2020 include T 863.48 crore and 3 387.72 crore, respect~vely, representing varlous claims raised earller by the Holding Company, based on the terms and cond~tions ~mpl~cit in the contracts and other receivables in respect of closedl suspended projects Further, non-current trade receivables and current trade receivables as at 31 December 2020 also include f 2.062 68 crore (net of advances of T 470 66 crore) and T 924.39 crore (net of advances of ? 2,129 25 crore), respectively, representing claims awarded in arbitration, Including interest thereon, In favour of the Hold~ng Company which have been challenged by the customers in higher courts These rece~vables are mainly In respect of cost over-run arising due to cl~ent caused delays, suspension of projoets, deviation in design and change in scope of work; for whlch Holding Company 1s at variw sl~ges of negot~ationl discuss~on with IhR dients or under arbitration1 Iltlgalron. Considering the contractual lemb~lily, progress of negatintionsl d~scussionsl arbitratlonl liligntinns and as legally advised, the management is confident of recovery of the carrying value of the aforement~oned rece~vables and hence no provision IS considered necessary. Further, while the Hold~ng Company continues to legally pursue the aforementioned receivables, the Hold~ng Company is also in actlve discussions with a customer to

conciliate favourable arbitration award and cla~ms represented by non-current trade receivables, current trade rece~vables and unbilled work-~n-progress (other current assets) amounting to 3 118 34 crore, 3 21 5 94 crore and f 470 71 crore. respectively.

3 The Group, as at 31 December 2020, has a non-current investment amounting to 3 96 09 crore in HCC Concessions Limited ('HCL'), a jo~nt venture company of HCC Infrastructure Company Limited ('HICL') (85 45% holding), a wholly owned subsidiary, having various Build, Operate and Transfer (BOT) SPVs under its fold While consolidated net-worth of HCL as at 31 December 2020 has been partially eroded, the underly~ng projects are expected to ach~eve adequate profitability on substant~al completion. The net-worth of HCL does not represent its true market value as the value of the underlying investments I assets, based on valuation report of an independent valuer, is higher. Further BOT SPV's also have several claims, Including favourable arb~tration award against its customers ma~nly in respect of cost- overrun arising due to client caused delays, termination of contracts and change in scope of work which are under various stages of negot~ation I discuss~on with clients or under arb~tration I litigation wherein management has been legally adv~sed that ~t has good case on merlts Therefore, based on certain estimates like future business plans, growth prospects as well as consider~ng the contractual tenability, progress of negotiation I discuss~on I arbitration I litigations and legal advice, the management belleves that the realizable amount of HCL is higher than the carrying value of the non-current investments due to which these are considered as good and recoverable as at 31 December 2020

4 The outbreak of COVID-19 pandemic had disrupted regular business operations of the Group due to the lock down restrlctlons and other emergency measures imposed by the Government from time to time. The business operations are gradually reaching normalcy. Accordingly, the results for the quarter are not comparable with those for the previous quarters

The management has taken into account zha possible impacts of known ewnls, upto the date of the appmval of these flnancial results, arising from COWD-19 pandemic on the carrying value of the assets and liabililics as at 31 December 2020. HMver, there exists signif~cnnt @slimation ~mecrlainty In relation to the future impact of COVID-19 pandemic on the Group and, accordingly, the actual impact in the future may be d~fferent from those presently estimated The Group will continue to monitor any material change to the future economic cond~t~ons and consequential impact on the f~nancial results.

5 Pursuant to notification of the Companies (Amendment) Act, 2017 amending Section 197 of the Companies Act, 2013 ('the Act'), with effect from 12 September 2018, the Hold~ng Company's application to the Ministry of Carpxale Affairs (MCA) for approval In respect of managerial remuneration of Chairman and Managing Director (CMD) accruedl pa~d in excess of the prescribed limit for the IinalKJials years 2014-15 and 2015-16 stands abated. The Holding Company, vide resolution dated 10 September 2019, has obtained approval from the shareholders for the payment of remuneration In respect of the aforesaid years, to be given effect to, only post receipt of the approval of the lenders.

Dur~ng the current quarter, the Holding Company has adjusted excess remuneration paid to the CMD, held in trust, dur~ng financial year 2013-14 with the unpaid remuneratlon for financial year 2014-15 in accordance w~th the approval obtained from its shareholders in the meeting held on 10 September 2019 The Holding Company has also communicated the lenders of the aforesaid adjustments1 payment vide ~ts letter dated 24 November 2020 These adjustments were carried out by the Holding Company basis the advice received from a senlor legal counsel which has op~ned that slnce the Holding Company had already obtained approval from the lenders in earlier years lhraugh the Monitoring Cornmillee of lenders which is still valid and persist~ng, there is no requirement to obtain fresh ~pprovnl from the lenders as Section 197 of the Act abaled all applications pendmg lor approvel before MCA, as at the date ~t came in Imce. Basis above opinion, the managcnal rmuneratlon paid for f~nancial year 2015- 16 also stands regularized.

Further WI 26 Septernher 2019, the Holding Crrmpany in its shareholders' meeting has alsn obta~ned appmvals vide spec~al resolufions for msnagerial munoration of CMU and mle Time Diratlors for the period 1 April 2019 to 31 March 2022, to be given elled to, only post reoe~pt of the appmval of lendw. Pendirg receipt of lenders approval, managerial remuneration continue to be accrued 1 paid by the Holding Company as detailed below:

Designation	Remuneration accrued	Remuneration paid	Remuneration as per prescribed limit	Excess remuneration accrued	(7 erere? Excess remuneration paid held in trust
	(a)	[b)	(c)	(d = a - c)	(e = b - c)
2019-20 CMD and Whole Time Directors (WD) 2020-21 CMD and Whole Time D~rectors (WD)	13 57	3.75		13.57	3.75
	10 13	1.08		10.13	1.08
Total	23.70	4.83		23.70	4.83

In absence of any specific approval from lenders for remuneration payable to CMDI !NTD for financial years 2014-15, 2015-16, 2019-20 and 2020-21, statutory auditors review report is modified in respect of th~s matter

6 On 20 September 2019, vide the Taxation Laws (Amendment) Ordinance 2019, the Government of India inserted Section 115BAA in the Income Tax Act, 1961 which provides domestic companies a non-reversible option to pay corporate tax at reduced rates effective 1 April 2019 subject to certain conditions. However, the Holding Company hav~ng significant amount of brought forward tax losses and unabsorbed depreciation on which deferred tax asset has been recognised, is st111 evaluating and has not yet elected to exercise the option permitted under section 11 5BAA In view of the above, there is no Impact of the new tax rate on the consol~dated financlal results for the current per~od

As at 31 December 2020, the Holding Company continues to recognize net deferred tax assets amounting to 7 670.34 crore (31 March 2020: 7 437.08 crore) on account of carried folward unused tax losses, unused tax credits and other taxable temporary differences. Based on the expected profits from the unexecuted orders on hand, outcome of the ongolng discussion with lenders for restructuring of loans and expected settlement of arbitration awards. the Holding Company management is confident that sufficient future taxable income wlll be ava~lable agalnst which such deferred tax assets wlll be realized >+:>-) Statutory auditors review repodis modified in respect of this matter. /- .- -

7 The Group has incurred net loss of ? 767.30 crore during the nlne month cndorl 3t December 2020 and has accumulated losses aggregating f 4.414 02 crore as at 31 December 2020, whlch has resulted In full eroslon of Its net worth Further, as of that date, ils current liabilities exceeded Its current assets by ? 2,355 55 crore. The Holding Company also continues to default on payment to lenders along with overdue to operational creditors A financial creditor and certain operational creditors of the Holding Company have applied before the National Company Law Trlbunal ('NCLT') for the debt resolution under the Insolvency and Bankruptcy Code, 2016, none of which has been admitted so far. Further, the COVID-19 pandemic has also disrupted buslness operations of the Group durlng the period and there continues to exist uncertainty wlth respect to the pandemic on Group's operations.

Further, in respect of Steiner AG, a material foreign subsidiary group, there are uncertaint~es consequent to impact of COVID-19 including its impact on budget and liquidity planning as well as uncertainties related to Ihe pending renewal of syndicate revolving guarantee facility agreement which are expiring on 26 February 2021 There are also events or conditions exlsting in certain other group entities, castlng significant doubt on the ability of the these entities to continue to as going concern The above factors Indicate that events or conditions exist, which may cast significant doubt on the Group's ability to continue as a going concern

The Holding Company is in advanced stages of completing the resolution plan with its lenders. The terms of the resolution plan Include liabilities, including those of an erstwhlle subsidiary taken over by the Holding Company in earlier years at settlement value, that have been renegotiated during the current perlod and which have received in-principal approval by the respective lenders.

Based on the expectation of the implementation of the resolution plan with lenders, underlying strength of the Group's business plans and future growth outlook as assessed, the management is confident of improving the credit proflle of the Group, Including through time-bound monetisat~on of assets including arbitration awards, claims and other assets whlch would result in it belng able to meet ~ts obligations In due course of time. Accordingly, the Management considers ~t appropriate to prepare these consolidated financial results on a ooina concern basis

^DDuring the quarter ended 31 March 2020, the Group changed ~ts method of measuring progress 1.e from output method to Input method as specified in Ind AS 115 - 'Revenue from Contract with Customers' consequent to change in the circumstances Including change in the nature of contracts secured by the Group during recent years Management believes that input method, a method widely also used by most other engineering and construction companies, would be more reliable and relevant in measuring the progress of the projects and therefore also be more accurate in measuring the Group's performance in transferring control of goods and services promised to the customers until completion of the contracts. Pursuant to the Impact of this change in method, the Group has restated the comparative financial statements1 information for the quarter and nine month ended 31 December 2019, In accordance with the requirements of Ind AS 8 - 'Accounting Policies, Changes in Accounting Estimates and Errors'.

The impacts of the restatement are as follows:

Increase in tax credit/ (expense)
Increase in profit/ (loss) after tax

9 Non-current borrowings, current borrowings and other current financial liab~lities as at 31 December 2020 include balances amounting to 7 279 59 crore (31 March 2020: 7 171.59 crore). T 9 57 crore (31 March 2020: Nil) and ? 399.71 crore (31 March 2020: f 337.09 crore). respectively. In respect of which statements from the respective hanksl lenders have not been recelved Further. In respect of non-current borrowings and current borrowings aggregatlng f 1,396.01 crore (31 March 2020: f 864.23 crore), while the lenders have confirmed the principal outstanding, the accrued interest aggregating 7 87.50 crore (31 March 2020: T 42.76 crore) have not been confirmed. In the absence of confirmations1 statements from the lenders, the Group has provided for interest and other penal charges on these borrowings based on the latest communicat~on avnilabte from the respective lenders at the interest rate specified In the agreement. The Group's management believes that amount payable on settlement will not exceed the liahilily provided ~n books in respect of these borrowings Accordingly, classification of these borrowings into current and non-current as at 31 December 2020 is also based on Ihn orlginal maturity terms stated in the agreements with the lenders. --- 30 September 2020 31 December 2019 32 December ²⁰²⁰31 December 2019

Further, earmarked balances (included under bank balances other than cash and cash equivalents) and guarantees issued by banks on behalf of the Group as aI 31 December 2020 includes balances amounting to ? 20 97 crore (31 March 2020: T 5.46 crore) and Nil (31 March 2020. 7 76.93 crore), respectively, In respect of which confirmation1 statements from banks have not been received inspite of incessant efforts by the Group's management Statutory auditors revlew report is modified in respect of this matter

p in crora) 10 Exceptional Items Quarter ended Nine month ended (a) Loss on settlement with customer [Refer note (i) below] (84.46) (326.83) (b) Reversal of loss provision in respect of arbitration 331.40 awards and claims [Refer note (ii) below] 331.40 (c) Impairment of financial and non-f~nancial assets (d) Reversal of gain on settlement of debts Total gain / [loss) I (84.46) 331.40 (326.831 331.40 Year ended 31 March 2020 331.40 (98 72) (1 1.451 , 221.23

Note:

(i) During the current period, the Holdlng Company has entered into Settlement Agreements with one of ils customers to conciliate long pending dispute in respect of Ihn Arbitration Awards published in Holding Company's favour, for two projects completed durlng earlier years, which were being contested by the customer before the Iqn'ble High Courts. Pursuant to these settlements, the Holding Company has realised ⁷32.35 crore and f 218.94 crore as futl and final settlement with an understanding that all pending disputes stand resolved. The Holding Company has recognised the resultant loss of ⁷84.46 crore during the quarter ended 30 September 2020 and f 326.83 crore during the nine month ended 31 December 2020 as an exceptional loss.

Though the Hold~ng Company had a fair chance to recover entire money over the period, however, considering the time involved in the lltlgatlon and urgent need to realize monies urgently to tie up its cashflow deficit for [Is operations, the Holding Company has opted for this conciliation, as per the scheme provided uls 73 of Arbitration and Conciliation Act, 2015 by Ministry of Road Transport Highways.

(li) During the quarter ended 31 March 2019, the Holdlng Company had recognized a provision of f 331.40 crore pursuant to the signing of a non-binding term sheet with a consortium of investors along wlth a letter of commitment, for an assignment of the beneflclal Interest in portfolio of identified arbitration awards and claims ('specified assets') for an aggregate consideration of T 1.750 crore. The said provlslon continued thereafter in vlew of mutual extension of the said transaction till 31 December 2019, In the absence of any further extension, Ihe Holding Company decided to cancel this proposed transaction, which had been reported lo and confirmed by statutory auditors. Pursuant to the cancellation of the aforesaid transaction, the provision of t 331.40 crore, related to specified assets, recognized earlier has been written back during the previous year. Statutory auditors revlew report is modified in respect of reversal of aforesaid provision. *;.I.' -9

_..-- - -

- 11 During the quarter ended 30 September 2020, HCL has completed the 100% stake sale of its subs~d~ary 1.e. Farakka-Ra~ganj Highways Lim~ted ('FRHL') to Cube Highways Pte. Ltd. ('Cube') Pursuant to the above, HCL has received T 104.35 crore towards considerat~on for sale of equ~ty shares and a resultant loss on sale of FRHL aggregating T 259.31 crore has been recogn~sed during the previous quarter.
Additionally as a part of the agreement w~th Cube, the Group would be ent~tled to certain hold backs (to be released on complet~on of dispute resolution with NHAI), earn-outs (contingent on traffic1 revenue projections), certaln revenue share from FRHL over the concessions per~od and proceeds from claims submitted wlth NHAI, which would overall be material in nature
12 As at 31 December 2020, HREL Real Estate L~mited ('HREL'), a subsidiary company, has prov~ded corporate guarantees and put optlons aggregating f 5,080 34 crore to the lenders of its erstwhile subs~d~aries, Lavasa Corporat~on Limited ('LCL') and Warasgaon Assets Maintenance Limited ('WAML') In respect of amounts borrowed by these subsidiaries LCL and WAML were admitted under the Corporate Insolvency and Resolution Process ('CIRP') in accordance with the Insolvency and Bankruptcy Code, 2016 (IBC) dated 30 August 2018 and 17 December 2018, respectively and Resolution Professionals ('RP') have been appointed by the Committee of Creditors (CoC) of the lenders of respective companies The lenders, to whom these corporate guarantees and put options were furnished, have filed their claims w~th RP whlch is presently under the IBC process and have also Invoked the corporate guarantee1 put options issued by the HREL. RP is in the process of formulating a resolution plan includ~ng identifying potential resolution applicant The liability of HREL shall be determ~ned once the debts due to these lenders are settled by RP upon completion of the IBC process. Pending the outcome of the resolution process, no provision has been considered necessary in the consolidated financial results, as impact, if any, 1s currently unascerta~nable
13 In response to the Nat~onal Highway Authority of lndia ('NHAl)'s notice dated 24 August 2017 for 'Intention to Issue Termination Not~ce' to Baharampore Farakka Highways L~mited (BFHL), a subsid~ary of HCL, the Independent Engineer has recommended NHAl to withdraw intention to issue termination notice on 26 June 2019 Further, as at 31 December 2020, NHAl has deposited T 358 98 crore with the Delhi H~gh Court in respect of an arbitration award in favour of BFHL against which BFHL has partially withdrawn f 75 crore against bank guarantee. BFHL has also in~t~ated a conciliation process with the NHAl for its arbitration award and entire claims, which is currently underway.
14 Delay in acquisition of land of more than seven years in Ra~ganj Dalkhola Highways Limited ('RDHL'), a subsid~ary of HCL, resulted in a substantial increase of project cost. The inability of the lenders consortlum to fund the cost overrun in the absence of extended benef~ts in the event of termination from NHAl has led to the issuance of termination notice by NHAI. RDHL has filed claim for T 367 crore as a termination payment and 9 836 crore as losses on account of contractors dues before arbitration tribunal as the requisite land to carry out the deslred work was not made available by NHAI, Based on the legal adv~ce obtained in this respect, the Group's management is confident of recovering the amount from NHAl and HCL's exposure In RDHL IS considered to be fully recoverable.
15 On 29 September 2017, HCC Operations and Maintenance Lim~ted (HOML), a wholly owned subsidiary of HICL, had s~gned a Debenture Sale Purchase (DSP) agreement with certain debenture holders for purchase of debentures issued by LCL, in the event of any default for an aggregate consideration of T 138 crore plus Interest @ 10.27 % per annum. Pursuant to the above, HOML has t~ll date paid T 21 crore to the aforesa~d debenture holders During the previous year, vide letter dated 8 August 2019, HOML rece~ved recall notice from the debenture holders for T 185 25 crore due to payment default as per DSP agreement. As at 31 December 2020, there exist a liability in the books (after adjusting advances paid) amounting to 9 117 crore attributable to the principal obligation and HOML is in d~scussion with the debenture holders for the waiver of interest obligation Considering the present status of the discussion, management believes that that amount payable on settlement will not exceed the liability prov~ded in books In respect of thls matter and accordingly, interest of T 79.07 crore (31 March 2020: f 47.25 crore) has been d~sclosed as contingent liability and not been provided for In the books of accounts as at 31 December 2020.
Statutory aud~tors revlew report is modified in respect of this matter.

6 During the previous year ended 31 March 2020, Badarpur Faridabad Tollways Lim~ted ('BFTL'), a subsidiary of HCL, entered into a settlement agreement with NHAl for payment of T 302.41 crore including interest in respect of its claims for termination payment. Pursuant to the aforementioned settlement, dur~ng the six month ended 30 September 2020, NHAl has paid T 292.76 crore (net of tax) to the BFTL,

Further during the quarter ended 31 March 2020, BFTL also entered into a settlement agreement with its lenders where~n ~ts borrowings and Interest have been settled for an aggregate amount off 347.64 crore to be paid out of the proceeds of the claims settled with NHAl and balance through fund~ng by HCL to the extent off 47.20 crore. Pursuant to the settlements, BFTL during the quarter ended 31 March 2020 has wrltten off1 written back surplus amounts carried in the books in respect of these receivables and payables basis the agreements with respective parties result~ng in a net gain of 7 329.19 crore recogn~sed in the financials of BFTL As at 31 December 2020, entlre dues to the lenders have been pa~d and the BFTL has rece~ved "No dues certicate" from lenders
7 Non-current borrowings and other current financial liabilities (~ncluding current matur~t~es oflong-term borrowings) of RDHL, a subsidiary of HCL, as at 31 December 2020 includes f 43 72 crore and T 21.89 crore, respect~vely in respect of which, in the absence of confirmation from the lenders / bankers, RDHL has provided for interest and other penal charges based on the latest communication available from the lendersl bankers at the interest rate specifled in the agreements. RHDL's management believes that amount payable on settlement will not exceed the liability provided in books in respect of these borrowings Further. the classification of these borrowings into current and non-current as at 31 December 2020 1s based on the original maturity terms as stated in the agreements with the lendersl bankers.
8 The Code on Soc~al Security. 2020 ('Code') relating to employee benefits during employment and post-employment benefits received Presidential assent In September 2020 The Code has been published in the Gazette of lndia However, the date on which the Code will come into effect has not been notifled. The Group will assess the impact of the Code when ~t comes into effect and will record any related impact in the per~od the Code becomes effective
9 Gain I (loss) on fair valuation of equity instruments' represents movements in carrylng value of f~nanc~al assets (investments) measured at fair value through Other Comprehensive Income.
0 Previous period figures have been regrouped1 reclassified, wherever considered necessary to conform to current periods

for Hindustan Construction Company Limited

Ajit Gulabchand uhl, Dale 19 February 2W1 Chairman & Mane~l~nn Director

Particulars


Engineering and conslruclion



Less: Inter segment revenue


Engineering and construction
Infrastructure


Less: Unallocable expenditure (net of unallocable income)
ProfiU (Loss) before exceptional items, share of profitl'#bm of associates and joint ventures, and tax
Exceptional items - Gain1 (Loss)
- Engineering and construction

- Engineering and oonslructlon
- Infrastructure
- Real estate

- Unallocable assets


- Engineering and construction
- Infrastructure

AI assistant

Hindustan Construction Co. Ltd. Interim / Quarterly Report 2021

61640_rns_2021-02-09_7babc474-8aeb-4861-a251-c5680c98bb67.pdf

February 9,2021

Sub: Unaudited Financial Results of the Companv for the auarter and nine months ended December 31,2020

Hindustan Consauction Co Ltd

HCC revenue grows 76% sequentially to 7822.3 cr

Project pace picks up post easing of pandemic restrictions

Financial highlights:

Un-audited Standalone results for Q3 FY21 vs. Q3 FY20

Performance of HCC subsidiaries:

About HCC:

A r For further information:

Hindustan Construction Company Limited

Hindustan Construction Company Limited

Material Uncertainty on Going Concern

Hindustan Construction Company Limited

Hindustan Construction Company Limited

Hindustan Construction Company Limited

Annexure 1

List of joint operations included in the Statement

Notes:

Hindustan Construction Company Limited

Hindustan Construction Company Limited

Material Uncertainty on Going Concern

Hindustan Construction Company Limited

Hindustan Construction Company Limited

Hindustan Construction Company Limited

Hindustan Construction Company Limited

Annexure 1

List of entities included in the Statement

potos:

Note:

AI assistant

Hindustan Construction Co. Ltd. — Interim / Quarterly Report 2021

61640_rns_2021-02-09_7babc474-8aeb-4861-a251-c5680c98bb67.pdf

February 9,2021

Sub: Unaudited Financial Results of the Companv for the auarter and nine months ended December 31,2020

Hindustan Consauction Co Ltd

HCC revenue grows 76% sequentially to 7822.3 cr

Project pace picks up post easing of pandemic restrictions

Financial highlights:

Un-audited Standalone results for Q3 FY21 vs. Q3 FY20

Performance of HCC subsidiaries:

About HCC:

A r For further information:

Hindustan Construction Company Limited

Hindustan Construction Company Limited

Material Uncertainty on Going Concern

Hindustan Construction Company Limited

Hindustan Construction Company Limited

Hindustan Construction Company Limited

Annexure 1

List of joint operations included in the Statement

Notes:

Hindustan Construction Company Limited

Hindustan Construction Company Limited

Material Uncertainty on Going Concern

Hindustan Construction Company Limited

Hindustan Construction Company Limited

Hindustan Construction Company Limited

Hindustan Construction Company Limited

Annexure 1

List of entities included in the Statement

potos:

Note:

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Hindustan Construction Co. Ltd. Interim / Quarterly Report 2021