PROSPECTUS

Dated September 29, 2010

Please read Section 60B of the Companies Act, 1956
100% Book Built Issue

ASHOKA BUILDCON LIMITED

(The Company was incorporated as Ashoka Buildcon Private Limited on May 13, 1993 under the Companies Act, 1956. The word "private" was deleted on April 22, 2002 and
the Company was converted into a public limited company. For details of changes in the name and registered office of the Company, please refer to "History and Certain Corporate
Matters" on page 137 of this Prospectus)
Registered Office: Survey No. 861, Ashoka House, Ashoka Marg, Vadala, Nashik, Maharashtra - 422 011
Tel: (91 253) 3011705; Fax: (91 253) 2422704; Contact Person: Manoj A. Kulkarni, Company Secretary and Compliance Officer
Website: www.ashokabuildcon.com; Email: investors@ashokabuildcon.com
PROMOTERS OF THE COMPANY: ASHOK M. KATARIYA, SATISH D. PARAKH, ASHISH A. KATARIYA AND ADITYA S. PARAKH
PUBLIC ISSUE OF 6,944,444 EQUITY SHARES OF Rs. 10 EACH OF ASHOKA BUILDCON LIMITED ("ABL" OR THE "COMPANY" OR THE "ISSUER") FOR
CASH AT A PRICE OF RS. 324 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS. 314 PER EQUITY SHARE) AGGREGATING RS. 2,250
MILLION (THE "ISSUE"). THE ISSUE INCLUDES A RESERVATION OF UP TO 34,722 EQUITY SHARES OF RS. 10 EACH FOR THE ELIGIBLE EMPLOYEES
(THE "EMPLOYEE RESERVATION PORTION"). THE ISSUE LESS THE EMPLOYEE RESERVATION PORTION IS REFERRED TO AS THE "NET ISSUE". THE
ISSUE WILL CONSTITUTE 13.2% OF THE POST ISSUE PAID UP CAPITAL OF THE COMPANY AND THE NET ISSUE WILL CONSTITUTE 13.1% OF THE POST
ISSUE PAID UP CAPITAL OF THE COMPANY.
THE FACE VALUE OF THE EQUITY SHARES IS RS. 10 EACH AND THE ISSUE PRICE IS 32.4 TIMES OF THE FACE VALUE.
In case of revision in the Price Band, the Bid/Issue Period will be extended for three additional working days after revision of the Price Band, subject to the Bid/Issue Period
not exceeding 10 working days. Any revision in the Price Band and the revised Bid/Issue Period, if applicable, will be widely disseminated by notification to National Stock
Exchange of India Limited ("NSE") and Bombay Stock Exchange Limited ("BSE"), by issuing a press release, and also by indicating the change on the website of the Book
Running Lead Managers ("BRLMs"), the Co-Book Running Lead Managers ("CBRLM") and at the terminals of the Syndicate Members.
The Company is undertaking the Issue in accordance with the first proviso to Rule 19(2)(b)(ii) of the Securities Contracts Regulations Rules, 1957, as amended ("SCRR"). This
Issue is being made through the 100% Book Building Process wherein at least 60% of the Net Issue shall be allocated on a proportionate basis to Qualified Institutional Buyers
(QIB) Bidders. 5% of the QIB Portion (excluding Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder
of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders, including Mutual Funds, subject to valid Bids being received at or above the
Issue Price. Further, not less than 10% of the Net Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 30% of the
Net Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price. If at least
60% of the Net Issue cannot be allocated to QIBs, then the entire application money shall be refunded forthwith. Further, up to 34,722 Equity Shares shall be available for
allocation on a proportionate basis to Eligible Employees, subject to valid Bids being received at or above the Issue Price. The Issue might be for more than 25% of the post-
Issue capital, based on the Issue Price being determined. Potential investors may participate in this Issue through an Application Supported by Blocked Amount providing
details about the bank account which will be blocked by the Self Certified Syndicate Bank for the same. For details see section entitled 'Issue Procedure' on page 414 of this
Prospectus.
RISK IN RELATION TO FIRST ISSUE
This being the first issue of Equity Shares of the Company, there has been no formal market for the Equity Shares of the Company. The face value of the Equity Shares is Rs. 10 each.
The Floor Price is 29.7 times of the face value and the Cap Price is 32.4 times of the face value. The Issue Price (has been determined and justified by the Company, the BRLMs and
the CBRLM as stated under the paragraph on "Basis for Issue Price") should not be taken to be indicative of the market price of the Equity Shares after the Equity Shares are listed.
No assurance can be given regarding an active and/or sustained trading in the Equity Shares or regarding the price at which the Equity Shares will be traded after listing.
IPO GRADING
This Issue has been graded by CRISIL Limited as CRISIL IPO Grade 4/5 indicating that the fundamentals of the IPO are above average relative to the other listed equity
securities in India through its letter dated December 14, 2009 (revalidated through the letter dated August 9, 2010). For details see the section entitled "General Information"
on page 21 of this Prospectus.
GENERAL RISKS
Investments in equity and equity-related securities involve a degree of risk and investors should not invest any funds in this Issue unless they can afford to take the risk of
losing their investment. Investors are advised to read the Risk Factors carefully before taking an investment decision in this Issue. For taking an investment decision, investors
must rely on their own examination of the Company and the Issue including the risks involved. The Equity Shares offered in the Issue have not been recommended or approved
by the Securities and Exchange Board of India ("SEBI"), nor does SEBI guarantee the accuracy or adequacy of this Prospectus. Specific attention of the investors is invited
to the section entitled "Risk Factors" on page xii of this Prospectus.
ISSUER'S ABSOLUTE RESPONSIBILITY
The Company having made all reasonable inquiries, accepts responsibility for and confirms that this Prospectus contains all information with regard to the Company and the
Issue, which is material in the context of the Issue, that the information contained in this Prospectus is true and correct in all material aspects and is not misleading in any
material respect, that the opinions and intentions expressed herein are honestly held and that there are no other facts, the omission of which will make this Prospectus as a
whole or any of such information or the expression of any such opinions or intentions misleading in any material respect.
LISTING ARRANGEMENT
The Equity Shares offered through this Prospectus are proposed to be listed on the NSE and BSE. The Company has received an 'in-principle' approval from the NSE and the
BSE, for the listing of the Equity Shares pursuant to letters dated December 11, 2009 and November 10, 2009, respectively. For the purposes of the Issue, the Designated Stock
Exchange shall be Bombay Stock Exchange.
BOOK RUNNING LEAD MANAGERS CO-BOOK RUNNING LEAD MANAGER REGISTRAR TO THE ISSUE

ENAM SECURITIES IDFC CAPITAL LIMITED MOTILAL OSWAL INVESTMENT LINK INTIME INDIA
PRIVATE LIMITED Naman Chambers, C-32, ADVISORS PRIVATE LIMITED PRIVATE LIMITED
801/ 802, Dalamal Towers G-Block, Bandra- Kurla Complex, 113/114, Bajaj Bhawan, 11th Floor C 13, Pannalal Silk Mills Compound,
Nariman Point Bandra (East), Nariman Point LBS Marg, Bhandup (West),
Mumbai 400 021, India Mumbai - 400 051 Mumbai 400 021, India
Tel: (91 22) 3980 4380 Mumbai 400 078
Tel: (91 22) 6638 1800 Tel: (91 22) 6622 2600
Fax: (91 22) 3980 4315 Tel: (91 22) 2596 0320
Fax: (91 22) 2284 6824 Fax: (91 22) 6622 2501 E-mail: ashoka.ipo@motilaloswal.com
E-mail: ashoka.ipo@idfc.com Fax: (91 22) 2596 0329
E-mail: abl.ipo@enam.com Investor Grievance E-mail:
Investor Grievance Email: complaints@enam.com Investor Grievance Email: complaints@idfc.com Email: abl.ipo@linkintime.co.in
moiaplredressal@motilaloswal.com
Website: www.enam.com Website: www.idfccapital.com Website: www.motilaloswal.com Contact Person: Sachin Achar
Contact Person: Pranav Mahajani Contact Person: Hiren Raipancholia Contact Person: Rupesh Khant SEBI Reg. No. INM000003761
SEBI Reg. No. INM000006856 SEBI Reg. No. INM000011336 SEBI Registration No: INM000011005
ISSUE PROGRAMME
BID/ISSUE OPENED ON : SEPTEMBER 24, 2010 BID/ISSUE CLOSED ON : SEPTEMBER 28, 2010
 TABLE OF CONTENTS

DEFINITIONS AND ABBREVIATIONS i

CERTAIN CONVENTIONS; USE OF MARKET DATA x
FORWARD-LOOKING STATEMENTS xi
RISK FACTORS xii
SUMMARY OF INDUSTRY 1
SUMMARY FINANCIAL INFORMATION 14
THE ISSUE 20
GENERAL INFORMATION 21
CAPITAL STRUCTURE 31
OBJECTS OF THE ISSUE 51
BASIS FOR ISSUE PRICE 61
STATEMENT OF TAX BENEFITS 63
INDUSTRY 72
BUSINESS 91
REGULATIONS AND POLICIES 132
HISTORY AND CERTAIN CORPORATE MATTERS 137
OUR MANAGEMENT 160
OUR PROMOTERS 177
OUR GROUP COMPANIES 181
RELATED PARTY TRANSACTIONS 200
DIVIDEND POLICY 201
INDEBTEDNESS 202
SUMMARY OF PRINCIPAL DIFFERENCES BETWEEN IFRS AND INDIAN GAAP 207
AUDITOR’S REPORT ON STAND-ALONE FINANCIAL INFORMATION 215
AUDITOR’S REPORT ON CONSOLIDATED FINANCIAL INFORMATION 269
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS 317
OUTSTANDING LITIGATION AND MATERIAL DEVELOPMENTS 342
GOVERNMENT APPROVALS 387
OTHER REGULATORY AND STATUTORY DISCLOSURES 396
TERMS OF THE ISSUE 406
ISSUE STRUCTURE 409
ISSUE PROCEDURE 414
RESTRICTIONS ON FOREIGN OWNERSHIP OF INDIAN SECURITIES 446
MAIN PROVISIONS OF ARTICLES OF ASSOCIATION 447
MATERIAL CONTRACTS AND DOCUMENTS FOR INSPECTION 464
DECLARATION 467
 DEFINITIONS AND ABBREVIATIONS

Term Description
“ABL”, “our Company”, Unless the context otherwise requires, refers to Ashoka Buildcon Limited, a
“the Company”, or “the company incorporated under the Companies Act, 1956 and having its
Issuer” registered office at Survey No. 861, Ashoka House, Ashoka Marg, Vadala,
Nashik, Maharashtra - 422 011.
“we”, “us”, “our” Unless the context otherwise requires, means Ashoka Buildcon Limited and
its subsidiaries, joint ventures and associates.

Company Related Terms

Term Description
Articles/Articles of The articles of association of the Company
Association
Auditors The statutory auditors of the Company; M/s. M. P. Chitale & Co., Chartered
Accountants
Ashoka Group The Company, its subsidiaries and joint ventures, Promoters and Promoter
Group companies and Group Companies
Board of Directors/Board The board of directors of the Company or a committee constituted thereof
Director(s) The Director(s) of the Company, unless otherwise specified
Group Companies Companies, firms, ventures promoted by the Promoters, irrespective of
whether such entities are covered under Section 370(1)(B) of the Companies
Act or not
IDFC PE II IDFC Infrastructure Fund 2, being a trust created under the Indian Trust Act,
1882 and a venture capital fund registered under SEBI (Venture Capital
Funds) Regulations 1996 (of which IDFC PE II is a unit scheme)
IIF IDFC Project Equity Company Limited – India Infrastructure Fund
Memorandum/ The memorandum of association of the Company
Memorandum of
Association
Order Book The unfinished or uncertified value of EPC contracts and work orders and
includes the estimated cost of construction of the unfinished portions of the
Company’s BOT projects (these costs are capitalised on the date the
Company starts collecting tolls for the projects)
Project Cost Except as specified otherwise, means the project cost for BOT projects
comprising of the EPC costs, interest paid on debt financing during the
construction of the project and other incidental expenses related to the
project
Promoters Our promoters being Ashok M. Katariya, Satish D. Parakh, Ashish A.
Katariya and Aditya S. Parakh
Promoter Group Unless the context otherwise requires, refers to those companies mentioned
Companies in the section entitled “Our Promoters” on page 177 of this Prospectus
Registered Office of the Survey No. 861, Ashoka House, Ashoka Marg, Vadala, Nashik,
Company Maharashtra - 422 011
Scheme of Amalgamation The scheme of amalgamation under the Companies Act approved by the
Bombay High Court on December 3, 2004 of Ashoka Info Private Limited,
Ashoka Infra Private Limited, Ashoka Vastu Private Limited, Ashoka Vastu
Shilp Private Limited, Ashoka Shilp Vikas Private Limited and Ashoka
Construction Engineers Private Limited with the Company
Share Subscription and Share Subscription and Shareholders’ Agreement dated July 11, 2006 as
Shareholders’ Agreement amended on December 10, 2007 between Ashoka Buildcon Limited, Ashok
Katariya, Sunil Raisoni, Satish Parakh, Narendra Shakadwipi, Ashoka
Buildwell and Developers Private Limited, AP Equipment, Shubham
Developers, Ashoka Township, Ashoka Bitucon Exim Private Limited,

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 Term Description
Ashoka Builders (Nasik) Private Limited, and other shareholders of the
Company and IDFC Infrastructure Fund 2.

Issue Related Terms

Term Description
Allotment/Allot/Allotted Unless the context otherwise requires, means the allotment of Equity Shares
pursuant to this Issue to the successful Bidder
Allottee A successful Bidder to whom the Equity Shares are Allotted
Anchor Investor A Qualified Institutional Buyer who makes an application under the Anchor
Investor Portion, with a minimum Bid of Rs. 100 million
Anchor Investor Allocation Notice or intimation of allocation of Equity Shares sent to Anchor Investors
Notice who have been allocated Equity Shares after discovery of the Issue Price if
the Issue Price is higher than the Anchor Investor Issue Price
Anchor Investor Bid/Issue The day, one working day prior to the Bid/Issue Opening Date on which
Period Bids by Anchor Investors shall be submitted and allocation to Anchor
Investors shall be completed
Anchor Investor Issue Price The final price at which Equity Shares will be issued and Allotted to
Anchor Investors in terms of the Red Herring Prospectus and this
Prospectus, which price will be equal to or higher than the Issue Price but
not higher than the Cap Price. The Anchor Investor Issue Price will be
decided by the Company in consultation with the BRLMs and the CBRLM
Anchor Investor Portion Up to 30% of the QIB Portion which may be allocated by the Company to
Anchor Investors on a discretionary basis. One-third of the Anchor Investor
Portion shall be reserved for domestic Mutual Funds, subject to valid Bids
being received from domestic Mutual Funds at or above the price at which
allocation is being done to all Anchor Investors
Application Supported by An application, whether physical or electronic, used by a Bidder, other than
Blocked Amount/ ASBA an Anchor Investor, to make a Bid authorizing a SCSB to block the Bid
Amount in their ASBA Account
ASBA Account An account maintained by the ASBA Bidders with the SCSB and specified
in the ASBA Bid cum Application Form for blocking an amount mentioned
in the ASBA Bid cum Application Form
ASBA Bidder Bidders who intend to Bid/apply through ASBA
ASBA Bid cum Application The form, whether physical or electronic, used by a Bidder (other than
Form or ASBA BCAF Anchor Investor) to make a Bid through ASBA process, which contains an
authorisation to block the Bid Amount in an ASBA Account and will be
considered as the application for Allotment for the purposes of the Red
Herring Prospectus and this Prospectus
ASBA Revision Form The form used by the ASBA Bidders to modify the quantity of Equity
Shares or the Bid Amount in any of their ASBA Bid cum Application Form
or any previous revision form(s)
Banker(s) to the Axis Bank Limited, State Bank of India, ICICI Bank and Standard
Issue/Escrow Collection Chartered Bank
Bank(s)
Basis of Allotment The basis on which Equity Shares will be Allotted to Bidders under the
Issue and which is described in “Issue Procedure – Basis of Allotment” on
page 439 of this Prospectus
Bid An indication to make an offer during the Bid/Issue Period by a Bidder
pursuant to submission of the Bid cum Application Form, or during the
Anchor Investor Bid/ Issue Period by the Anchor Investors, to subscribe to
the Equity Shares of our Company at a price within the Price Band,
including all revisions and modifications thereto.
For the purpose of ASBA Bidders, it means an indication to make an offer

ii
 Term Description
during the Bid/Issue Period by an ASBA Bidder pursuant to the submission
of ASBA Bid cum Application Form to subscribe to the Equity Shares of
the Company at Cut-off Price
Bid Amount The highest value of the optional Bids indicated in the Bid cum Application
Form
Bid /Issue Closing Date Except in relation to any Bids received from Anchor Investors, the date
after which the Syndicate and the SCSBs will not accept any Bids for this
Issue, which shall be notified in an English national newspaper, a Hindi
national newspaper and a Marathi newspaper each with wide circulation
Bid /Issue Opening Date Except in relation to any Bids received from Anchor Investors, the date on
which the Syndicate and the SCSBs shall start accepting Bids for the Issue,
which shall be the date notified in an English national newspaper, a Hindi
national newspaper and a Marathi newspaper, each with wide circulation
Bid cum Application Form The form used by a Bidder to make a Bid and which will be considered as
the application for Allotment for the purposes of the Red Herring
Prospectus and this Prospectus
Bidder Any prospective investor who makes a Bid pursuant to the terms of the Red
Herring Prospectus and the Bid cum Application Form
Bid/Issue Period The period between the Bid/Issue Opening Date and the Bid/Issue Closing
Date inclusive of both days and during which prospective Bidders can
submit their Bids, including any revisions thereof
Book Building Book Building process as provided under Schedule XI of the SEBI
Process/Method Regulations, in terms of which the Issue is being made
BRLMs/Book Running The Book Running Lead Managers to the Issue, in this case being Enam
Lead Managers Securities Private Limited and IDFC Capital Limited
BRLM Memorandum of The agreement entered into on September 8, 2009 between the Company,
Understanding the BRLMs and the CBRLM, pursuant to which certain arrangements are
agreed to in relation to the Issue
Business Day Any day on which commercial banks in Mumbai are open for business
CAN/Confirmation of Note or advice or intimation of Allotment sent to the Bidders who have
Allotment Note been Allotted Equity Shares after Basis of Allotment has been approved by
the Designated Stock Exchange
CBRLM/Co-Book Running The Co-Book Running Lead Manager to the Issue, in this case being
Lead Manager Motilal Oswal Investment Advisors Private Limited
Cap Price The higher end of the Price Band, above which the Issue Price will not be
finalized and above which no Bids will be accepted
Controlling Branches Such branches of the SCSB which coordinates with the BRLMs, the
CBRLM, the Registrar to the Issue and the Stock Exchanges
Cut-off Price Issue Price, finalised by the Company in consultation with the BRLMs and
CBRLM. Only Retail Individual Bidders and Eligible Employees whose
Bid Amount does not exceed Rs. 100,000 are entitled to Bid at the Cut Off
Price. No other category of Bidders is entitled to Bid at the Cut-off Price
Designated Branches Such branches of the SCSBs which shall collect the ASBA Bid cum
Application Form used by ASBA Bidders and a list of which is available on
http://www.sebi.gov.in
Designated Date The date on which funds are transferred from the Escrow Account to the
Public Issue Account or the amount blocked by the SCSB is transferred
from the ASBA account of the ASBA Bidder to the Public Issue Account or
the Refund Account, as the case may be, after the Prospectus is filed with
the RoC, following which the Board of Directors shall Allot Equity Shares
to successful Bidders
Designated Stock Exchange Bombay Stock Exchange Limited

iii
 Term Description
Draft Red Herring The Draft Red Herring Prospectus dated September 22, 2009 issued in
Prospectus accordance with Section 60B of the Companies Act and the SEBI
Regulations, filed with SEBI and which does not contain complete
particulars on the price at which the Equity Shares are offered and the size
(in terms of number of Equity Shares) of the Issue
Eligible Employees Permanent and full-time employees of the Company or of the holding
company of the Company or subsidiary company of the Company or of that
material associate of the Company whose financial statements are
consolidated with the financial statements of the Company as per
Accounting Standard 21, or a director of the Company whether whole time
or part time, excluding Promoters and their immediate relatives, who are
Indian nationals and are present in India on the date of submission of the
Bid cum Application Form and who continues to be in the employment of
the Company until submission of the Bid cum Application Form, who have
not Bid for Equity Shares for an amount more than Rs. 100,000 in any of
the bidding options in the Issue
Eligible NRI NRIs from jurisdictions outside India where it is not unlawful to make an
issue or invitation under the Issue and in relation to whom the Red Herring
Prospectus constitutes an invitation to subscribe to the Equity Shares
Allotted herein
Employee Reservation The portion of the Issue being up to 0.5% of the Issue size available for
Portion allocation to Eligible Employees subject to such portion not exceeding 5%
of the post-Issue capital
Enam Enam Securities Private Limited
Equity Shares Equity shares of the Company of Rs. 10 each, unless otherwise specified
Escrow Account Account opened with the Escrow Collection Bank(s) for the Issue and in
whose favour the Bidder (excluding the ASBA Bidders) will issue cheques
or drafts in respect of the Bid Amount when submitting a Bid
Escrow Agreement Agreement dated September 20, 2010 entered into by the Company, the
Registrar to the Issue, the BRLMs, the CBRLM, the Syndicate Members
and the Escrow Collection Bank(s) for collection of the Bid Amounts and
where applicable, refunds of the amounts collected to the Bidders
(excluding the ASBA Bidders) on the terms and conditions thereof
First Bidder The Bidder whose name appears first in the Bid cum Application Form or
Revision Form or the ASBA Bid cum Application Form
Floor Price The lower end of the Price Band, at or above which the Issue Price will be
finalised and below which no Bids will be accepted
IDFC Capital IDFC Capital Limited
IPO Initial Public Offering
Issue Public issue of 6,944,444 Equity Shares of Rs. 10 each of the Company for
cash at a price of Rs. 324 per Equity Share aggregating Rs. 2,250 million. It
comprises a Net Issue to the public aggregating Rs. 2,238.75 million and a
reservation for Eligible Employees aggregating Rs. 11.25 million
Issue Price Rs. 324
Issue Proceeds The proceeds of the Issue that are available to the Company
Motilal Oswal Motilal Oswal Investment Advisors Private Limited
Mutual Funds A mutual fund registered with SEBI under the SEBI (Mutual Funds)
Regulations, 1996
Mutual Funds Portion 5% of the QIB Portion (excluding the Anchor Investor Portion), or 145,104
Equity Shares available for allocation to Mutual Funds only, out of the QIB
Portion (excluding the Anchor Investor Portion)
Net Issue The Issue less the Employee Reservation Portion
Net Proceeds The Issue Proceeds less the Issue expenses. For further information about
use of the Issue Proceeds and the Issue expenses see the section entitled

iv
 Term Description
“Objects of the Issue” on page 51 of the Prospectus
Non-Institutional Bidders All Bidders that are not QIBs or Retail Individual Bidders and who have
Bid for Equity Shares for an amount more than Rs. 100,000 (but not
including NRIs other than eligible NRIs)
Non-Institutional Portion The portion of the Net Issue being not less than 690,971 Equity Shares
available for allocation to Non-Institutional Bidders
Non-Resident A person resident outside India, as defined under FEMA and includes a
Non Resident Indian
Price Band Price Band of a minimum price of Rs. 297 (Floor Price) and the maximum
price of Rs. 324 (Cap Price) and include revisions thereof. The Price Band
and the minimum Bid Lot size for the Issue was decided by the Company in
consultation with the BRLMs and the CBRLM and was advertised, at least
two working days prior to the Bid/ Issue Opening Date, in all editions of
Financial Express in the English language, all editions of Jansatta in the
Hindi language and all editions of Gavakari in the Marathi language
Pricing Date The date on which the Company, in consultation with the BRLMs and the
CBRLM, finalizes the Issue Price
Prospectus This Prospectus dated September 29, 2010 filed with the RoC in accordance
with Section 60 of the Companies Act, containing, inter alia, the Issue Price
that is determined at the end of the Book Building Process, the size of the
Issue and certain other information
Public Issue Account Account opened with the Bankers to the Issue to receive monies from the
Escrow Account and from the SCSBs from the bank accounts of the ASBA
Bidders on the Designated Date
Qualified Institutional Public financial institutions as specified in Section 4A of the Companies
Buyers or QIBs Act, scheduled commercial banks, mutual fund registered with SEBI, FII
and sub-account registered with SEBI, other than a sub-account which is a
foreign corporate or foreign individual, multilateral and bilateral
development financial institution, venture capital fund registered with
SEBI, foreign venture capital investor registered with SEBI, state industrial
development corporation, insurance company registered with IRDA,
provident fund with minimum corpus of Rs. 250 million, pension fund with
minimum corpus of Rs. 250 million, National Investment Fund set up by
Government of India and insurance funds set up and managed by army,
navy or air force of the Union of India.

FVCIs registered with SEBI and multilateral and bilateral development

financial institutions are not entitled to participate in the Issue
QIB Portion The portion of the Net Issue being at least 4,145,834 Equity Shares of Rs.
10 each to be Allotted to QIBs
Red Herring Prospectus or The Red Herring Prospectus dated September 16, 2010 issued in
RHP accordance with Section 60B of the Companies Act, which does not have
complete particulars of the price at which the Equity Shares are offered and
the size of the Issue.
Refund Account(s) The account opened with Escrow Collection Bank(s), from which refunds,
if any, of the whole or part of the Bid Amount (excluding to the ASBA
Bidder) shall be made
Refund Banker(s) Axis Bank Limited
Refunds through electronic Refunds through NECS, Direct Credit, NEFT, RTGS or the ASBA process,
transfer of funds as applicable
Registrar /Registrar to the Link Intime India Private Limited
Issue
Retail Individual Bidders Individual Bidders (including HUFs applying through their karta and
Eligible NRIs) who have not Bid for Equity Shares for an amount more

v
 Term Description
than Rs. 100,000 in any of the bidding options in the Issue
Retail Portion The portion of the Net Issue being not less than 2,072,917 Equity Shares of
Rs. 10 each available for allocation to Retail Individual Bidder(s)
Revision Form The form used by the Bidders, excluding ASBA Bidders, to modify the
quantity of Equity Shares or the Bid Price in any of their Bid cum
Application Forms or any previous Revision Form(s)
SEBI Regulations SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 as
amended from time to time
Self Certified Syndicate A banker to the Issue registered with SEBI, which offers the facility of
Bank or SCSB ASBA and a list of which is available on http://www.sebi.gov.in.
Stock Exchanges The NSE and the BSE
Syndicate The BRLMs, the CBRLM and the Syndicate Members
Syndicate Agreement The agreement to be entered into between the Syndicate and the Company
in relation to the collection of Bids in this Issue (excluding Bids from the
ASBA Bidders)
Syndicate Members Sharekhan Limited and Motilal Oswal Securities Limited
TRS or Transaction The slip or document issued by a member of the Syndicate or the SCSB
Registration Slip (only on demand), as the case may be, to the Bidder as proof of registration
of the Bid
Underwriters The BRLMs, the CBRLM and the Syndicate Members
Underwriting Agreement The agreement among the Underwriter and the Company to be entered into
on or after the Pricing Date
VCF Regulations SEBI (Venture Capital Funds) Regulations, 1996

Technical and Industry Terms

Term Description
BOT Build, Operate and Transfer
BOOT Build, Own, Operate and Transfer
BOLT Build, Operate, Lease and Transfer
BOQ Bill of Quantities
COD Commercial Operation Date
Cu. Mtr. Cubic Meters
DBFO Design-Build-Finance-Operate
EPC Engineering, Procurement and Construction
Km.(s) Kilometre(s)
MCGM Municipal Corporation of Greater Mumbai
MHADA Mumbai Housing and Area Development Authority
MMRDA Mumbai Metropolitan Road Development Authority
MoP Ministry of Power
MPRDC Madhya Pradesh Road Development Corporation
MTPA Million tonnes per annum
NABARD National Bank for Agricultural & Rural Development
NHAI National Highways Authority of India
NHDP National Highways Development Programme
O&M Operations and Maintenance
PPP Public Private Partnership
PWD Public Works Department
RCC Reinforced Concrete Construction
RFQ Request for Qualification
RFP Request for Proposal
RIDCOR Road Infrastructure Development Company of Rajasthan Limited
RMC Ready-Mix Concrete

vi
 Term Description
SIDBI Small Industries Development Bank of India
SPV(s) Special Purpose Vehicle(s)

Conventional/General Terms

Term Description
Act or Companies
Companies Act, 1956, as amended from time to time
Act
AGM Annual General Meeting
AS Accounting Standards issued by the Institute of Chartered Accountants of India
AY Assessment Year
BSE Bombay Stock Exchange Limited
CAGR Compounded Annual Growth Rate
CDSL Central Depository Services (India) Limited
CESTAT Central Excise and Service Tax Appellate Tribunal
CMPDI Central Mine Planning and Design Institute Limited
Depositories NSDL and CDSL
Depositories Act The Depositories Act, 1996 as amended from time to time
DER Debt Equity Ratio
DP/Depository A depository participant as defined under the Depositories Act, 1996
Participant
DP ID Depository Participant’s Identity
EBITDA Earnings Before Interest, Tax, Depreciation and Amortisation
EIA Notification,
Environmental Impact Assessment Notification, 2006
2006
EGM Extraordinary General Meeting
EPS Unless otherwise specified, Earnings Per Share, i.e., profit after tax for a fiscal year
divided by the weighted average outstanding number of equity shares during that
fiscal year
FCNR Account Foreign Currency Non-Resident Account established in accordance with the
FEMA
FDI Foreign Direct Investment
FEMA Foreign Exchange Management Act, 1999 read with rules and regulations
thereunder and amendments thereto
FEMA Regulations FEMA (Transfer or Issue of Security by a Person Resident Outside India)
Regulations, 2000 and amendments thereto
FII(s) Foreign Institutional Investors as defined under SEBI (Foreign Institutional
Investor) Regulations, 1995 registered with SEBI under applicable laws in India
Financial Year/ Period of twelve months ended March 31 of that particular year
fiscal/ FY
FIPB Foreign Investment Promotion Board
FVCI Foreign Venture Capital Investor registered under the Securities and Exchange
Board of India (Foreign Venture Capital Investor) Regulations, 2000, as amended
from time to time
GDP Gross Domestic Product
GoI/Government Government of India
HNI High Net worth Individual
HUF Hindu Undivided Family
IFRS International Financial Reporting Standards
Income Tax Act The Income Tax Act, 1961, as amended from time to time
Indian GAAP Generally Accepted Accounting Principles in India

vii
 Term Description
IPO Initial Public Offering
JV Joint Venture
LIBOR London Interbank Offered Rate
MICR Magnetic Ink Character Recognition
MMT Million Metric Tons
Mn Million
MoEF Ministry of Environment and Forests
MoU Memorandum of Understanding
NAV Net Asset Value
NECS National Electronic Clearing Service
NEFT National Electronic Fund Transfer
NR Non Resident
NRE Account Non Resident External Account
NRI Non Resident Indian, is a person resident outside India, who is a citizen of India or
a person of Indian origin and shall have the same meaning as ascribed to such term
in the Foreign Exchange Management (Deposit) Regulations, 2000, as amended
from time to time
NRO Account Non Resident Ordinary Account
NSDL National Securities Depository Limited
NSE The National Stock Exchange of India Limited
OCB A company, partnership, society or other corporate body owned directly or
indirectly to the extent of up to 60% by NRIs including overseas trusts in which
not less than 60% of beneficial interest is irrevocably held by NRIs directly or
indirectly and which was in existence on October 3, 2003 and immediately before
such date was eligible to undertake transactions pursuant to the general permission
granted to OCBs under the FEMA. OCBs are not allowed to invest in this Issue
p.a. per annum
P/E Ratio Price/Earnings Ratio
PAN Permanent Account Number
PAT Profit After Tax
PBT Profit Before Tax
PIO Persons of Indian Origin
RBI The Reserve Bank of India
Re. One Indian Rupee
Rs./ INR Indian Rupees
RoC The Registrar of Companies, Maharashtra situated at Everest 5th Floor, 100, Marine
Drive, Mumbai 400 002
RONW Return on Net Worth
Rs. Indian Rupees
RTGS Real Time Gross Settlement
SAT Securities Appellate Tribunal
SBAR State Bank of India Benchmark Advance Rate
SBI PLR State Bank of India Prime Lending Rate
SCRA Securities Contracts (Regulation) Act, 1956, as amended from time to time
SCRR Securities Contracts (Regulation) Rules, 1957, as amended from time to time
SEBI The Securities and Exchange Board of India constituted under the SEBI Act, 1992
SEBI Act Securities and Exchange Board of India Act 1992, as amended from time to time
SEZ Policy Special Economic Zone Policy of the Government of India

viii
 Term Description
SICA Sick Industrial Companies (Special Provisions) Act, 1985, as amended from time
to time
SPV Special Purpose Vehicle
Stamp Act The Indian Stamp Act, 1899, as amended from time to time
State Government The Government of a State of India
Stock Exchange(s) BSE and/or NSE as the context may refer to
Takeover Code SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, as
amended
UIN Unique Identification Number
U.S./USA United States of America
UNCITRAL United Nations Commission on International Trade Law
U.S. GAAP Generally Accepted Accounting Principles in the United States of America
USD/US$ United States Dollars
VCFs Venture Capital Funds as defined and registered with SEBI under the SEBI
(Venture Capital Fund) Regulations, 1996, as amended from time to time

ix
 PRESENTATION OF FINANCIAL, INDUSTRY AND MARKET DATA

Financial Data

Unless stated otherwise, the financial data in this Prospectus is derived from our financial statements
prepared in accordance with Indian GAAP and included in this Prospectus. Our current fiscal year
commences on April 1 and ends on March 31 of next year. In this Prospectus, any discrepancies in any
table between the total and the sums of the amounts listed are due to rounding-off.

There are significant differences between Indian GAAP, IFRS and U.S. GAAP. Accordingly, the degree to
which the Indian GAAP financial statements included in this Prospectus will provide meaningful
information is entirely dependent on the reader’s level of familiarity with Indian accounting practices. Any
reliance by persons not familiar with Indian accounting practices on the financial disclosures presented in
this Prospectus should accordingly be limited. We have not attempted to explain those differences or
quantify their impact on the financial data included herein, and we urge you to consult your own advisors
regarding such differences and their impact on our financial data.

Any percentage amounts, as set forth in “Risk Factors”, “Business”, “Management’s Discussion and
Analysis of Financial Condition and Results of Operations on a Consolidated Basis” and elsewhere in this
Prospectus, unless otherwise indicated, have been calculated on the basis of our restated consolidated and
unconsolidated financial statements prepared in accordance with Indian GAAP.

Currency and units of presentation

All references to “India” contained in this Prospectus are to the Republic of India, all references to the
“US”, “USA”, or the “United States” are to the United States of America, and all references to “UK” are to
the United Kingdom of Great Britain and Northern Ireland, together with all its territories and possessions.

All references to “Rupees” or “Rs.” are to Indian Rupees, the official currency of the Republic of India. All
references to “US$”, “USD” or “US Dollars” are to United States Dollars, the official currency of the
United States of America. In this Prospectus, the Company has presented certain numerical information in
“million” units. One million represents 1,000,000.

For definitions, please see the section entitled “Definitions and Abbreviations” on page i of this Prospectus.
In the section entitled “Main Provisions of Articles of Association” on page 447 of this Prospectus, defined
terms have the meaning given to such terms in the Articles.

Industry and Market data

Unless stated otherwise, industry data used throughout this Prospectus has been obtained from industry
publications. Industry publications generally state that the information contained in those publications has
been obtained from sources believed to be reliable but that their accuracy and completeness are not
guaranteed and their reliability cannot be assured. Although we believe that industry data used in this
Prospectus is reliable, it has not been independently verified.

Currency of Presentation

In this Prospectus, all references to “Rupees” and “Rs.” are to the legal currency of India, all references to
“U.S. Dollars”, and “US$” are to the legal currency of the United States of America.

x
 FORWARD-LOOKING STATEMENTS

All statements contained in this Prospectus that are not statements of historical fact constitute “forward-
looking statements”, including statements as to our business strategy and planned projects. Investors can
generally identify forward-looking statements by terminology such as “aim”, “anticipate”, “believe”,
“expect”, “estimate”, “intend”, “objective”, “plan”, “project”, “shall”, “will”, “will continue”, “will pursue”
or other words or phrases of similar import.

All forward looking statements are subject to risks, uncertainties and assumptions about us that could cause
actual results to differ materially from those contemplated by the relevant forward-looking statement.
Important factors that could cause actual results to differ materially from our expectations include, but are
not limited to, the following:

x Our inability to successfully bid for projects as expected;

x Our inability to effectively manage larger projects and our growth;
x Our inability to enter into financing arrangements for the proposed projects;
x Our inability to complete projects within the estimated time frame and budgets;
x The occurrence of any inherent construction, financing and operational risks in relation to our
projects;
x The monetary and interest policies of India, inflation, deflation and unanticipated turbulence in
interest rates;
x Foreign exchange rates, equity prices or other rates or prices;
x The performance of the financial markets in India;
x General economic and business conditions in India;
x Changes in laws and regulations that apply to us, our clients or suppliers;
x Increasing competition in and the conditions of our clients and suppliers; and
x Changes in political conditions in India.

For further discussion of factors that could cause our actual results to differ, see the sections entitled “Risk
Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”
on pages xii and 317, respectively of this Prospectus.

By their nature, certain risk disclosures are only estimates and could be materially different from what
actually occurs in the future. As a result, actual future gains or losses could materially differ from those that
have been estimated. We, the Syndicate and their respective affiliates do not have any obligation to, and do
not intend to, update or otherwise revise any statements reflecting circumstances arising after the date
hereof or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to
fruition. In accordance with SEBI requirements, we, the BRLMs and the CBRLM will ensure that investors
in India are informed of material developments until such time as the grant of listing and trading permission
by the Stock Exchanges.

xi
 RISK FACTORS

An investment in our Equity Shares involves a high degree of risk. You should carefully consider all the
information in this Prospectus, including the risks and uncertainties described below, before making an
investment in our Equity Shares. The risks and uncertainties described in this section are not the only risks
that we currently face. Additional risks and uncertainties not currently known to us or that we currently
believe to be immaterial may also have an adverse effect on our business, results of operations and
financial condition. To obtain a better understanding of our business, you should read this section in
conjunction with the other sections of this Prospectus, including the sections entitled “Business” and
“Management’s Discussion and Analysis of Financial Conditions and Results of Operations” and
“Financial Statements” on pages 91, 317 and 215, respectively, of this Prospectus, together with all other
financial information contained in this Prospectus. If any of the following risks, or other risks that are not
currently known or are currently deemed immaterial, actually occur, our business, results of operations
and financial condition could be materially and adversely affected and the price of our Equity Shares could
decline, causing you to lose part or all of the value of your investment in our Equity Shares.

The financial and other related implications of the risk factors, wherever quantifiable, have been disclosed
in the risk factors mentioned below. However, there are certain risk factors where the effect is not
quantifiable and, therefore, cannot be disclosed in such risk factors.

Unless otherwise stated, the financial information of the Company used in this section is derived from our
audited consolidated financial statements under Indian GAAP, as restated.

Internal Risk Factors

1. There are two outstanding criminal litigation against the Company, which if determined
adversely, could affect our operations.

Name of the Forum Relevant provisions Subject Matter of

Complainant of law the Complaint
J. K. Varma Judicial Sections 107, 120B, 166, 167, Unauthorised collection of the
Magistrate First 405, 415 of the Indian Penal toll tax by the Company from
Class, Dewas Code, 1860 the toll plaza situated at Km.
159/4 of S.H.-18 on Bhopal -
Ujjain Road
Ganpat Judicial Sections 379, 441, 418, 420, Unauthorized extraction the
Machhindra Magistrate First 427, 504, 506, 425 and 34 of Murum for the project at
Todmal Class, the Indian Penal Code Ahemednagar-Aurangabad
Ahmednagar Highway and the loss to the
property of the complainant and
his plantation of Chickoo trees
on the said property and a claim
of compensation of Rs.1.2
million.

An adverse outcome in these proceedings may have a material adverse affect on the Company’s
operations, business, financial condition and results of operations. Further, any adverse outcome in
this proceeding may affect the reputation and standing of the Company and have an impact on
future business prospects. The Company cannot assure you that this proceeding will be decided in
favour of the Company or that no further liability will arise out of these proceeding. For further
details of outstanding litigations against our Directors, please see the section entitled “Outstanding
Litigations and Material Developments” on page 342 of this Prospectus.

xii
2. There is a criminal proceeding outstanding against certain of our Directors, which if
determined adversely, could affect our operations.

Complainant Accused Forum Relevant Subject Matter of

provisions of law the Complaint
Vadilal Milk Ashoka Buildwell Metropolitan Section 420 of the Directors of Ashoka
Products and Developers Magistrate, Indian Penal Code, Buildwell and
Limited Private Limited, Mumbai 1860 Developers Private
Ashok M. Katariya, Limited have cheated
Satish D. Parakh the Complainant by
and Deepak M. not paying charges for
Katariya management services
provided by the
complainant. The
complainant has
claimed a
compensation of Rs.
1.38 million

An adverse outcome in this proceeding could have a material adverse effect on the Directors, as
well as on our business, prospects, financial condition and results of operations. Further, any
adverse outcome in this proceeding may affect the reputation and standing of the Company and
may impact future business. No assurances can be given that this matter will be settled in favour
of the relevant Directors entity or that no further liability will arise out of these claims.

For further details of outstanding litigations against our Directors, please see the section entitled
“Outstanding Litigations and Material Developments” on page 342 of this Prospectus.

3. The Indian income tax authorities have recently conducted search and seizure on the
premises of the Company, its Promoters, Directors, certain employees and certain of its
subsidiaries and associates.

The Director of Income Tax (Inv.) Nagpur/ Pune issued a warrant of authorisation dated April 15,
2010 (the “Warrant”) under Section 132(1) of the Income Tax Act, 1961 (the “Income Tax Act”).
Pursuant to the Warrant, the Income Tax Authorities (“IT Authorities”) conducted (i) a search and
seizure under Section 132 of the Income Tax Act (“IT Search”) on the premises of the Company,
its Promoters, Directors, certain employees and certain of its subsidiaries and associates, (ii) a
survey under Section 133A of the Income Tax Act on the premises of certain subsidiaries and
associates of the Company, and (iii) other related investigations. Pursuant to the IT Search, the
chairman of the Company, Ashok M. Katariya, in his statement recorded by IT Authorities on
April 30, 2010, provisionally disclosed Rs. 200.00 million as “non-declared income” in the hands
of various group cases (which includes us, the Promoters and Promoter Group Companies).
Subsequently, the Company, through a letter dated May 12, 2010 (the “Letter”) to the Deputy
Director of Income Tax (Investigation), Nashik, revised the provisionally disclosed “non-declared
income” to be Rs. 250.00 million for all the group cases taken together for the period covered
under the provisions of Section 153A of the Income Tax Act, and subject to permission for inter-
change subsequent to obtaining and verifying the copies of seized material. For further details of
the IT Search, please see the section entitled “Outstanding Litigation and Material Developments”
on page 342 of this Prospectus.

In the event that the IT Search results in detecting any tax evasion by the Company or its
subsidiaries or associates, the Company or such subsidiary/ associate may be held liable for
payment of the unpaid tax amount along with the interest thereon at the rate of 1% per month from
the date of determination of income by the department on the basis of regular return of income up
to the date of assessment pursuant to the search, as well penalties under Section 271(1)(c) of the
Income Tax Act, which ranges from 100% to 300% of the amount of tax evaded. Furthermore, the
respective employees and/ or directors of such companies could also be held liable for violation of,

xiii
 or offences under the provisions of the Income Tax Act, which may result in fines and/or
imprisonment. As of the date of this Prospectus, the Company is not aware of any action initiated
by the Income Tax Authorities in relation to the IT Search. However, there can be no assurance
that the income tax authorities will not undertake any further actions or require the payment of
additional taxes or penalties.

4. There are outstanding litigations against the Company, our Directors, our Promoters and
our Promoter Group Companies.

There are outstanding legal proceedings involving the Company, our Directors, our Promoters and
Promoter Group Companies. These proceedings are pending at different levels of adjudication
before various courts, tribunals, enquiry officers and appellate tribunals. The brief details of such
outstanding litigations are as follows:

Litigation against the Company

Sr. Nature of the cases/ claims No. of cases Amount involved

No. outstanding (In Rs. million)
1. Criminal 6 29.26
2. Civil 21 3.07
3. Labour 16 4.81
4. Motor Accidents Claims 9 11.92
5. Income Tax 13 44.58
6. Sales Tax 3 3.33
7. Arbitration 4 8.99
Total 71 105.96

Litigation against the Directors

Sr. Nature of the cases/ claims No. of cases Amount involved

No. outstanding (In Rs. million)
1. Criminal 6 1.38
2. Civil 5 -
3. Motor Accidents Claims 1 0.15
4. Income Tax 2 0.28
5. Criminal complaints under Section 8 8.51
138 of the Negotiable Instruments
Act
Total 20 10.32

Litigation against the Promoters

Sr. Nature of the cases/ claims No. of cases Amount involved

No. outstanding (In Rs. million)
1. Criminal 6 1.38
2. Civil 5 -
3. Motor Accidents Claims 2 0.17
4. Income Tax 2 0.28
5. Criminal complaints under Section 8 8.51
138 of the Negotiable Instruments
Act
Total 20 10.32

xiv
 Litigation against the Subsidiaries

Sr. Nature of the cases/ claims No. of cases Amount involved

No. outstanding (In Rs. million)
1. Criminal 1
2. Civil 2 -
3. Labour 1 0.03
4. Income Tax 3 -
5. Sales Tax 1
6. Service Tax 4 203.28
Total 12 203.31

Litigation against the Promoter Group Companies

Sr. Nature of the cases/ claims No. of cases Amount involved

No. outstanding (In Rs. million)
1. Criminal 2 -
2. Civil 14 105.54
3. Labour 1 0.18
4. Motor Accidents Claims 7 3.02
5. Income Tax 3 -
6. Miscellaneous 2 5.42
Total 29 114.16

For further details of outstanding litigations against our Directors, please see the section entitled
“Outstanding Litigations and Material Developments” on page 342 of this Prospectus.

5. Due to the often long-period between the submission of our tender and completing the
construction of a project, our actual cost in executing a fixed-price contract or in
constructing a project the subject of a BOT agreement may vary substantially from the
assumptions underlying our bid. We may be unable to recover all or some of the additional
expenses, which may have a material adverse effect on our results of operations and
financial condition.

The construction of projects undertaken by us generally takes one year to five years to complete.
In addition, for BOT projects, there is often a delay of more than 180 days between the submission
of our tender and the commencement of construction.

Under the terms and conditions of fixed-price contracts, we generally agree to construct a project
for a fixed price, subject to contract variations covering changes in the client’s project
requirements. Under the terms and conditions of agreements for BOT projects, we generally agree
to pay to, or receive from, the client awarding the concession an agreed sum of money, subject to
contract variations covering changes in the client’s project requirements. Many of our fixed-price
contracts and agreements for the construction phase of BOT projects contain limited or no price
escalation clauses covering increases in the cost of construction materials, fuel, labour and other
inputs, and we expect to enter into more such contracts in the future.

Our actual expense in executing a fixed-price contract or in constructing a project the subject of a
BOT agreement may vary substantially from the assumptions underlying our bid for several
reasons, including:

x unanticipated increases in the cost of construction materials, fuel, labour or other inputs;
x unforeseen construction conditions, including the inability of the client to obtain requisite
environmental and other approvals, resulting in delays and increased costs;
x delays caused by local weather conditions; and

xv
 x suppliers’ or subcontractors’ failures to perform.

Depending on the size of a project, variations from estimated contract performance could have a
material adverse effect on our results of operations and financial condition.

6. Any unexpected increases in the price of labour, construction materials, or other inputs
which we are unable to pass on to our clients or, in the case of a BOT project, recoup
through increasing the toll or concession may have a material adverse effect on our results of
operations and financial condition.

The cost of labour, materials and other inputs constitutes a significant part of our operating
expenses for our EPC division. Labour charges and sub-contracting charges related to EPC work
constituted 25.62% of our total expenditure for EPC work in fiscal 2010. Labour costs for skilled
personnel, such as engineers, have increased in the past year and the cost of unskilled construction
labour has increased in the same period by approximately 15%. The purchase of construction
materials related to EPC work constituted 36.37% of our total expenditure for EPC work in fiscal
2010. We expect that percentage to increase in future fiscal years as we expect to undertake an
increasing amount of EPC power work. Construction material costs for our EPC power work
typically range between 55-60% of our total costs for a power project. Our ability to pass on
unanticipated increases in the price of construction materials, fuel, labour and other inputs may be
limited in the case of EPC fixed-price contracts, contracts with limited price escalation provisions
and BOT projects. If we are unable to pass on such unanticipated price increases to our clients or,
in the case of a BOT project, recoup such price increases through increasing the toll or concession
period, it may have a material adverse effect on our results of operations and financial condition.

7. The timely and cost effective construction of our projects is dependent on the adequate and
timely supply of key raw materials such as steel, aggregate, bitumen and concrete. We have
not entered into any long-term supply contracts and we cannot assure you that we will be
able to procure adequate supplies of key materials as and when we need them on
commercially acceptable terms.

The timely and cost effective construction of our projects is dependant on the adequate and timely
supply of key materials, such as steel, aggregate, bitumen and concrete. We have not entered into
any long-term supply contracts. We cannot assure you that we will be able to procure adequate
supplies of key materials in the future, as and when we need them on commercially acceptable
terms. Additionally, we typically use third-party transportation providers for the supply of most of
our construction materials, except for concrete and bitumen, which is typically supplied by our
RMC and bitumen division. Transportation strikes by members of various Indian truckers’ unions
and various legal or regulatory restrictions placed on transportation providers have had in the past,
and could have in the future, an adverse effect on our receipt of supplies. If we are unable to
procure the requisite quantities of construction materials, our business, results of operations and
financial condition may be adversely affected.

8. Our business is substantially dependent on us accurately forecasting traffic volumes for toll-
based BOT projects and contracts to collect tolls, as these contribute 26.04% to our
revenues. Any material decrease between the actual traffic volume and our forecast traffic
volume for a toll-based BOT project or a contract to collect tolls could have a material
adverse effect on our cash flows, results of operations and financial condition.

Projects that we undertake on a BOT basis involve agreements that are long-term in nature,
normally involving concession periods ranging from five to 30 years. When preparing our tender
for a toll-based BOT project (a road or a bridge) or a contract to collect tolls, we need to forecast
the traffic volume for the road or bridge in order to work out our expected revenue over the
concession period or the contract period, as applicable, in order to arrive at the price we are going
to bid to pay or be paid for taking on such BOT project or contract. In addition, on completing the
construction of a toll-based BOT project, we generally refinance the loan on the project and

xvi
 increase the amount of debt outstanding on the project. As part of the refinancing of the loan, we
are required to submit new updated traffic forecasts to the lender or lenders. In such instances, if
the traffic volume is less than our forecasted traffic volume, the revenue from the BOT project
may be less than the interest payable on the outstanding loan. Therefore, if our forecast for traffic
volume on a toll-based BOT project is more than the actual traffic volume, it could have a material
adverse effect on our cash flows, results of operations and financial condition. In the past, the
actual traffic volume has been less than the forecast traffic volume on six occasions in four of our
toll based BOT projects. In addition, the awarding of a BOT project is subject to a competitive
tender and if we are too conservative in our forecast of traffic volumes, we may under bid and will
not be awarded the BOT project. We rely on our in-house traffic forecasting department to
forecast traffic volumes for toll-based BOT projects and tenders for toll collection contracts. The
forecasting of traffic volumes is not an exact science, and we cannot assure you that our forecasts
will be accurate.

9. The Company is required to advance zero interest unsecured loans to Ashoka Highways
(Bhandara) Limited (“AHBL”) and Ashoka Highways (Durg) Limited (“AHDL”) and has
advanced zero interest unsecured loans aggregating to Rs. 328.71 million to certain other
subsidiaries and Promoter Group Companies.

The Company has entered into two share subscription and shareholders agreements (the “SSAs”),
both dated April 17, 2009, in relation to its subsidiaries, AHBL and AHDL. In terms of the SSAs,
the Company is required to lend zero interest unsecured loans up to Rs. 347.57 million and Rs.
393.49 to AHBL and AHDL, respectively. As at March 31, 2010, the Company had advanced zero
interest unsecured loans and other loans aggregating Rs. 1,099.62 million and Rs. 202.43 million
to AHBL and AHDL, respectively. For further details of the SSAs, please see the section entitled
“History and certain Corporate Matters” on page 137 of this Prospectus. Further, as at March 31,
2010, the Company has provided loans and advances aggregating Rs. 328.71 million to certain of
its other subsidiaries (Ashoka Infrastructure Limited and Ashoka Technologies Private Limited)
and Promoter Group Companies (being Ashoka Construwell Private Limited and Viva
Infrastructure Private Limited). The Company cannot assure you that these amounts could not
have been invested in instruments, which would have yielded higher returns for the Company.
Further, the Company cannot assure you whether these loans will be repaid by the subsidiaries in
accordance with the repayment schedule or at all.

10. We are subject to restrictive covenants under the shareholders’ agreement entered into with
IDFC PE II that could limit our flexibility in managing our business.

The Company, certain shareholders of the Company and IDFC Infrastructure Fund II (the “IDFC
Fund”) had entered into a share subscription and shareholders’ agreement dated July 11, 2006 (the
“IDFC SHA”). The IDFC SHA contains certain restrictive covenants, such as (i) appointment of
nominee director by the IDFC Fund, (ii) constitution of project committee for evaluation of bids
for a project by the Company or project entities, (iii) the IDFC Fund’s right of first refusal and tag
along rights, (iv) affirmative voting rights for the IDFC Fund for certain specified matters, and (v)
restriction on issuance or transfer of shares of key shareholding companies/ projects entities.
Whilst none of the restrictive covenants are included in the Articles of Association, they may limit
the Company’s ability to manage its business.

The IDFC SHA shall fall away on, either the shareholding of the IDFC Fund falling below 20% of
the original number of Equity Shares issued to the IDFC Fund or listing of the Equity Shares of
the Company on recognised stock exchange in terms of the IDFC SHA. Whilst the IDFC SHA
shall fall away on listing of Equity Shares on the Stock Exchanges pursuant to the Issue, the
following rights shall continue to exist until the shareholding of the IDFC Fund falls below 20%
of the original number of Equity Shares issued to the IDFC Fund:

(i) appointment of a nominee director on the Board, the committees thereof and board of
directors of subsidiaries, associates and partnerships of the Company; and

xvii
 (ii) affirmative voting rights relating to (a) merger, demerger or entering into joint ventures
(except for projects requiring a total capital outlay in excess of Rs. 2,000 million), (b)
liquidation or dissolution, (c) transactions with connected persons (as defined in the
IDFC SHA), and (d) amendment of Memorandum and Articles of Association in relation
to amendment of (a), (b) and (c).

The existence of such rights may provide the IDFC Fund with the ability to influence the decisions
of the Company to the detriment of other stakeholders and restrict the Company’s ability to
manage its business effectively. For further details of the IDFC SHA, please see the section
entitled “History and Certain Corporate Matters - Summary of Key Agreements” on page 142 of
this Prospectus.

11. Our Promoters will continue to retain majority control in the Company after the Issue,
which will enable them to influence the outcome of matters submitted to shareholders for
approval.

Upon completion of the Issue, the Promoters will beneficially own 26.63% of our post-Issue
equity share capital. As a result, the Promoters will have the ability to control our business
including matters relating to any sale of all or substantially all of our assets, the timing and
distribution of dividends and the election or termination of appointment of our officers and
Directors. This control could delay, defer or prevent a change in control of the Company, impede a
merger, consolidation, takeover or other business combination involving the Company, or
discourage a potential acquirer from making a tender offer or otherwise attempting to obtain
control of the Company even if it is in the Company’s best interest.

In addition, for so long as the Promoters continue to exercise significant control over the
Company; they may influence the material policies of the Company in a manner that could
conflict with the interests of our other shareholders. The Promoters may have interests that are
adverse to the interests of our other shareholders and may take positions with which our other
shareholders do not agree.

12. If we cannot obtain adequate supplies of cement it could have a material adverse effect on
our RMC business and our results of operations and financial condition.

Our RMC and bitumen division sales were approximately 9.53% of our total income for fiscal
2010. The production of RMC is dependent on the adequate and timely supply of cement. We
have not entered into any long-term supply contracts with our suppliers of cement. In the past, we
have experienced some difficulties and delays in obtaining adequate supplies of cement. If we
cannot obtain adequate supplies of cement it could have an adverse effect on our EPC business
and we may be unable to sell RMC to third parties, which could have a material adverse effect on
our RMC business and our results of operations and financial condition.

13. Our ability to increase tolls on a BOT project is limited by the terms of the contract
governing the BOT project and if the increases in the tolls we charge on our toll roads do not
keep pace with increases in costs of materials and labour for maintaining and operating the
project or increases in interest rates payable on the loan or loans for the project, it could
have a material adverse effect on our results of operations and financial condition.

The tolls we are permitted to charge with respect to a BOT project are established in the project
contract by the client and are subject to escalation over the life of the project based on the increase
in the Indian consumer price index (CPI), a fixed percentage or the amounts set forth in the
agreement itself. If the increases in tolls do not keep pace with increases in costs of materials and
labour for maintaining and operating the project or increases in interest rates payable on the loan
or loans for the project, it could have a material adverse effect on our results of operations and
financial condition.

xviii
14. Any delay, reduction in scope, cancellation, execution difficulty, payment postponement or
payment default in regard to projects in our Order Book or any other uncompleted projects,
or disputes with clients in respect of any of the foregoing, could materially harm our
business, results of operations and financial condition.

Our Order Book as at May 31, 2010 was Rs. 16,153.64 million, which comprised Rs. 14,089.22
million in work to be carried for third parties and associates and Rs. 2,064.42 million in estimated
construction costs for our BOT projects. Construction costs for our BOT projects still under
construction are shown in our financial statements as capital works in progress in our statement of
assets and liabilities and as such Rs. 2,064.42 million of our Order Book as at May 31, 2010 does
not represent potential revenue for our EPC division. Our Order Book with respect to third parties
and associates does not necessarily indicate future earnings related to the performance of that
work. Order Book projects represent business that is considered firm, but cancellations or scope or
schedule adjustments could occur. We could also encounter problems executing the project as
ordered, or executing it on a timely basis. Moreover, factors beyond our control or the control of
our clients could postpone a project or cause its cancellation, including delays or failures to obtain
necessary permits, authorizations, permissions, right-of-way, and other types of difficulties or
obstructions. Due to the possibility of cancellations or changes in project scope and schedule, as a
result of exercises of our clients’ discretion, problems we encounter in project execution, or
reasons outside our control or the control of our clients, we cannot predict with certainty when, if
or to what extent an Order Book project will be performed. Delays in the completion of a project
can lead to clients delaying or refusing to make payment to us of some or all of the amounts we
expect to be paid in respect of the project. Even relatively short delays or surmountable difficulties
in the execution of a project could result in our failure to receive, on a timely basis or at all, the
final payments due to us on a project. These payments often represent an important portion of the
margin we expect to earn on the project. In addition, even where a project proceeds as scheduled,
the contracting parties could default or otherwise fail to pay amounts owed. Any delay, reduction
in scope, cancellation, execution difficulty, payment postponement or payment default in regard to
projects in our Order Book or any other uncompleted projects, or disputes with clients in respect
of any of the foregoing, could materially harm our business, results of operations and financial
condition.

15. We have not entered into definitive agreements to use Rs. 250 million of the net proceeds of
the Issue. Further, the deployment of the net proceeds is entirely at our discretion and is not
subject to any monitoring by any independent agency.

We intend to use the net proceeds of the Issue for (i) investment in capital equipment, (ii) to meet
working capital requirements, (iii) prepayment/ repayment of project loans of the Company,
(iv) funding certain Subsidiaries for prepayment/ repayment of their loans, (iv) general corporate
purposes, and (v) to achieve the benefits of listing of our Equity Shares, as described in the section
entitled “Objects of the Issue” on page 51 of this Prospectus. We have not entered into definitive
agreements regarding investment to be made in capital equipment aggregating Rs. 250 million,
which constitutes 11.11% of the proceeds from the Issue. The purposes for which the net proceeds
of the Issue are to be utilized have not been appraised by any independent entity and are based on
our estimates and on third-party quotations. In addition, our capital expenditure plans and working
capital estimates are subject to a number of variables, including possible cost overruns and
changes in management’s views of the desirability of current plans, among others.

Pending utilization of the proceeds out of the Issue for the purposes described in this Prospectus,
we intend to temporarily invest the funds in high quality interest bearing liquid instruments,
including deposits with banks and investments in money market mutual funds and other financial
products and investment grade interest bearing securities. Such investments would be in
accordance with the investment policies or investment limits approved by our Board from time to
time. Our management will have the discretion to revise our business plan from time to time and
consequently our funding requirement and deployment of funds may also change. This may

xix
 include rescheduling of our capital expenditure programmes, an increase or decrease in capital
expenditure for a particular purpose and/ or revision of our working capital requirements.

Further, as the Issue size is less than Rs. 5,000 million, there is no requirement for appointment of
a monitoring agency. An Audit committee of Board shall monitor the utilization of the net
proceeds of the Issue, which shall not be subject to any monitoring by any independent agency.

16. We have entered into certain related party transactions and we expect that we will continue
to do so in the future.

We have entered into certain transactions with related parties, including our Promoter Group
Companies, associates and joint ventures, Directors and their relatives, key management personnel
and enterprises in which key management personnel/Directors have significant influence. These
related party transactions totalled Rs. 2,234.66 million on a consolidated basis in fiscal 2010. For
detailed information on our related party transactions, please see the section entitled “Auditor’s
Report on Consolidated Financial Information-Annexure XVII” on page 310 of this Prospectus.
While we believe that all our related party transactions have been conducted on, and have
commercial terms consistent with, an arm’s length basis, there can be no assurance that we could
not have achieved more favourable terms had such transactions been entered into with unrelated
parties. Furthermore, it is likely that we will enter into related party transactions in the future.
There can be no assurance that such transactions, individually or in the aggregate, will not have an
adverse effect on our business, financial condition and results of operations.

17. Two of our Promoters do not have adequate experience in various business activities
undertaken by the Company.

Two of our Promoters, Ashish A. Katariya and Aditya S. Parakh, do not have adequate experience
in the various business activities undertaken by us. Ashish A. Katariya, who heads the RMC
division, has prior experience of about six years. His experience, including the experience
garnered while working in our RMC division, may not be adequate for the various other business
activities undertaken by us, such as EPC, BOT and toll collection contracts. Aditya S. Parakh has
appeared for the final year examination for bachelor’s degree in civil engineering and does not
have any prior experience in our various business activities. For further details of our Promoters,
please see the section entitled “Our Promoters” on page 177 of this Prospectus. The Company
cannot assure you that the lack of adequate prior experience of Ashish A. Katariya and Aditya S.
Parakh in our business will not have any adverse impact on the management and/ or operations of
the Company.

18. Some of our Subsidiaries and Promoter Group Companies have incurred losses during the
last three financial years.

Some of our Subsidiaries have incurred losses during last three fiscal years (as per their respective
standalone financial statements), as set forth below:

Sr. No. Name of the Subsidiary Profit/(Loss) After Tax

(Rs. in million)
Fiscal 2010 Fiscal 2009 Fiscal 2008
1. Ashoka Pre Con Private Limited (6.73) - -
2. Ashoka Highways (Bhandara) (9.70)
Limited
3. Ashoka-DSC Katni Bypass Road 9.77 (25.12) (2.49)
Private Limited
4. Ashoka Technologies Private 0.13 (0.03) -
Limited
5. Ashoka Highways (Durg) (8.79) - -
Limited

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 Some of our Promoter Group Companies have incurred losses during fiscal 2007, 2008 and 2009,
which are last three fiscal years for which their respective standalone financial statements are
available, as set forth below:

Sr. No. Name of the Promoter Group Company Profit/(Loss) After Tax
(Rs. in million)
Fiscal Fiscal Fiscal
2009 2008 2007
1. Ashoka Bitucon International Private Limited (0.01) (0.01) (0.03)
2. Ashoka Builders (Nashik) Private Limited 11.49 4.94 12.28
3. Ashoka Buildwell and Developers Private (0.02) (0.05) (0.37)
Limited
4. Ashoka City Towers Constructions Private 0.00 0.00 0.00
Limited
5. Ashoka Construwell Private Limited (0.11) (0.36) 0.81
6. Ashoka Erectors Private Limited 0.00 0.14 0.00
7. Ashoka Estate Developers Private Limited (0.02) (0.03) 0.00
8. Ashoka Housing Constructions Private Limited 0.00 0.00 0.00
9. Ashoka Nirmiti Private Limited (0.56) (0.21) (0.13)
10. Ashoka Path Nirman (Nashik) Private Limited 0.00 0.00 0.00
11. Ashoka Premises Private Limited (0.56) (0.48) (0.13)
12. Ashoka Promoters Private Limited (0.56) (0.48) (0.13)
13. Ashoka Shilp Akruti Private Limited 0.00 0.00 0.00
14. Ashoka Universal Academy Private Limited (0.03) (0.03) (0.03)
15. Ashoka Vanrai Developments Private Limited (0.37) (0.07) 0.01
16. Ashoka Vastu Akruti Private Limited 0.00 0.00 0.00
17. Ashoka Vastukala Nirman Private Limited 0.00 0.00 0.00
18. Hotel Evening Inn Private Limited (0.01) (0.01) (0.02)
19. A.P. Equipments & Co. 0.00 (0.01) (0.02)
20. Ashoka Builders and Developers (1.49) (2.78) (1.22)
21. Ashoka Con Creations 0.00 0.00 0.00
22. Ashoka Engineering Company 0.16 (0.64) 2.79
23. Shweta Agro Farm 0.61 (0.46) 3.66
24. Shubham Developers 0.00 (0.01) (0.01)

For further details on these Promoter Group Companies, please see section entitled “Our
Promoters” on page 177 of this Prospectus.

19. There have been complaints in the past, and litigation is currently outstanding against the
Company, objecting to initial public offering of Equity Shares. Any adverse outcome in such
outstanding litigation may restrain the Company from undertaking the Issue.

The Company had filed a Draft Red Herring Prospectus dated January 16, 2008 with SEBI in
relation to proposed initial public offering of Equity Shares (the “Proposed IPO”). Deepak M.
Katariya and Hema Katariya filed letters of objection dated April 9, 2008 in relation to the
Proposed IPO, which were replied to by the book running lead managers for the Proposed IPO
(“Lead Managers”) through letters dated May 6, 2008 and informed by the book running lead
managers to SEBI of their reply through a letter dated May 7, 2008. Thereafter, Deepak M.
Katariya filed a letter dated May 10, 2008 with SEBI (“Objection Letter”) which was forwarded to
the Lead Managers by SEBI through letter dated May 21, 2008, whereby he had, inter alia,
objected to the Proposed IPO. The Lead Managers replied to the Objection Letter through a letter
dated August 11, 2008 and informed SEBI of their reply through a letter dated August 11, 2008.

xxi
 Additionally, Hema Katariya filed a suit (no. 451/2007) (the “Civil Suit”) against the Company,
Ashok M. Katariya and others before the court of Civil Judge, Senior Division, Nashik (the
“CJSD, Nashik”). Further, Hema Katariya filed an application for temporary injunction dated
April 23, 2008 (the “Temporary Injunction Application”) in the Civil Suit inter alia demanding
that the Company be restrained from going forward with the IPO until the final disposal of the
Civil Suit. The CJSD, Nashik through an order dated April 24, 2008 directed both parties to
maintain the status-quo until further orders are issued by the court. Hema Katariya through a letter
dated April 24, 2008 informed SEBI of the status quo order. SEBI through letter dated April 24,
2008 sought complete details in this regard from the Lead Managers. The Lead Managers through
a letter dated April 30, 2008 informed SEBI of the complete details regarding the Order. The
CJSD, Nashik through an order dated May 2, 2008 (the “Vacation Order”) rejected the application
of the Complainant for a temporary injunction and vacated the status quo order, which was
notified to SEBI by the Lead Managers through a letter, dated May 8, 2008. Hema Katariya filed
an appeal (no. 58/08) dated June 12, 2008 (the “Appeal”) in the Court of District and Sessions
Judge, Nashik, which was dismissed through order dated January 22, 2010.

In relation to the Issue, Deepak M. Katariya has filed five letters of objection against the Issue.
The Company has replied to the same. For further details, refer to the section entitled
“Outstanding Litigation and Material Development” on page 342 of this Prospectus.

There can be no assurance that the civil suit will be decided in favour of the Company. Any
adverse outcome in these outstanding proceedings may have a material adverse effect on our
business. Any adverse outcome may also result in the Company being restrained from undertaking
the Issue.

20. The Company is unable to determine whether there are dues payable to any small sector
undertaking.

In view of the significant number of creditors of the Company, the information whether the
creditors are Small Scale and Ancillary Industrial Undertaking as defined by the “The Interest on
Delayed Payments to Small Scale and Ancillary Industrial Undertaking Act, 1992” is not
ascertainable by the Company.

21. We have substantial working capital requirements and if we are unable to obtain working
capital loans to help finance these requirements it would a have significant adverse effect on
our business, results of operations and financial condition.

Our business requires a substantial amount of working capital to finance the purchase of materials,
the hiring of equipment and the performance of engineering, construction and other work on
projects before payments are received from clients. In certain cases, we are contractually obligated
to fund the working capital requirements of our projects. The Company’s working capital
requirements on a standalone basis have increased from Rs. 1,151.87 million as at March 31, 2009
to Rs. 2,908.42 million as at March 31, 2010. These increases were due to us undertaking a
growing number of large projects and more projects with an overlapping timeframe and due to the
growth of our business generally. We avail the majority of our working capital from various banks
and our working capital loans on a standalone basis as at March 31, 2008, 2009 and 2010 were
Rs. 652.00 million, Rs. 680.65 million and Rs. 159.07 million, respectively. Our standalone
working capital facilities consisted of an aggregate fund based limit of Rs. 1,500.00 million and an
aggregate non-fund based limit of Rs. 9,000.00 million. As at May 31, 2010, the aggregate
amounts outstanding under the fund based and non-fun based working capital facilities were Rs.
543.99 million and Rs. 3,586.90 million, respectively. For further details of the working capital
facilities currently availed by us, please see the section entitled “Indebtedness” on page 202 of this
Prospectus.

The Company requires additional working capital for executing its Order Book. As at May 31,
2010, the Company’s Order Book was Rs. 16,153.64 million. For further details of the Company’s

xxii
 Order Book as at May 31, 2010, please see the section entitled “Business-EPC Division-Order
Book” on page 120 of this Prospectus. The Company forecasts that it will have a working capital
requirement of Rs. 3,523.03 million as at March 31, 2011. For details, please see the section
entitled “Objects of the Issue-Working Capital” on page 54 of this Prospectus. The Company
plans to fund its working capital requirements as at March 31, 2011 through its Rs. 1,500 million
working capital loan facility, Rs. 1,573.03 million of internal accruals and Rs. 450 million from
the net proceeds of the Issue. Our working capital requirements may increase if, under certain
contracts, payment terms do not include advance payments or such contracts have payment
schedules that shift payments toward the end of a project or otherwise increase our working capital
burdens. Due to various factors, such as changes in interest rates or borrowing and lending
restrictions, we may not be able to finance our working capital needs when needed on acceptable
commercial terms, or at all. Any such situation would adversely affect our business, results of
operations and financial condition.

It is customary in the industry in which we operate to provide bank guarantees or performance

bonds in favour of clients to secure obligations under contracts. In addition, letters of credit are
often required to satisfy payment obligations to suppliers and sub-contractors. If we are unable to
provide sufficient collateral to secure the letters of credit, bank guarantees or performance bonds,
our ability to enter into new contracts or obtain adequate supplies could be limited. Providing
security to obtain letters of credit, bank guarantees and performance bonds increases our working
capital needs. If we are not able to continue obtaining new letters of credit, bank guarantees and
performance bonds in sufficient quantities to match our business requirements, it could have a
material adverse effect on our business, results of operations and our financial condition.

22. Out of the 20 BOT projects we have constructed, we have leveraged 15 BOT projects by
borrowing additional amounts in order to generate additional working capital. If we are
unable to secure additional debt on reasonable interest rates and terms on completing the
construction of a BOT project, it could have a material adverse effect on our ability to grow
our business.

In order to generate additional working capital, on completion of the construction of 15 out of 20

of our BOT projects (including those developed by our affiliates), we have refinanced the debt
taken for the construction of the project and increased the debt outstanding on the project to as
much as 150% of the cost of the project. After we have completed the construction of a BOT
project there is no longer a construction risk on the project and lenders are willing to lend more
money on a project – generally more than the contract value of the EPC construction portion of the
project. If credit markets tighten and we are unable to obtain additional working capital through
this financing method or if interest rates increase, our ability to obtain additional working capital
to meet our growth needs on reasonable terms will be negatively impacted. For further details,
please see the section entitled “Business-Our Services and Products-BOT Division-BOT Road
Projects” on page 98 of this Prospectus.

23. Delays associated with the collection of receivables from our clients may adversely affect our
business and results of our operations.

There may be delays associated with the collection of receivables from our clients, including
government owned, controlled or funded entities and related parties. Our payment terms are
generally between 45 days and 75 days whilst the average period between billing and collection of
a receivable for fiscal 2010, 2009 and 2008 was 66 days, 34 days and 60 days, respectively. As at
March 31, 2010, on a consolidated basis, Rs. 380.17 million, or 20.89%, of our accounts
receivable (considered good) were outstanding for a period of more than six months, of which Rs.
380.16 million was owed by government owned, controlled or funded entities and Rs. 0.01 million
was owed by related parties. Our operations involve significant working capital requirements and
delayed collection of receivables could adversely affect our liquidity and results of operations by
requiring us to have larger working capital loans than we otherwise would have had the amounts
been paid on time, thereby increasing our interest expense. However, the exact amount of extra

xxiii
 interest we have had to pay as a result of such delays during the last three fiscal years cannot be
quantified. In addition, we may be subject to additional regulatory or other scrutiny associated
with commercial transactions with government owned, controlled or funded entities.

24. Our BOT projects enjoy certain benefits under Section 80IA of the Income Tax Act, 1961
and any change in these tax benefits applicable to us or alteration of the existing tax regime
may adversely affect our results of operations.

We currently operate or have an interest in 21 BOT road projects and our revenue from these BOT
projects represented 20.31% of our income from operations for fiscal 2010. Presently,
infrastructure development projects, including BOT projects, enjoy certain benefits under Section
80IA of the Income Tax Act, 1961. As a result of these incentives, most of the SPVs for our BOT
projects are subject to relatively low tax liabilities. The income tax exemptions for various BOT
projects expire at various points of time. There is no assurance that the BOT projects will continue
to enjoy the tax benefits under Section 80IA in the future. When the tax incentives expire or
terminate, our tax expense will materially increase, which will reduce our profitability to the
extent that we are not compensated for changes in tax laws under the terms of our concession
agreements. In addition, it is likely that the Direct Tax Code, once introduced, could significantly
alter the taxation regime, including incentives and benefits, applicable to us or other infrastructure
development activities.

25. We plan to bid for larger projects and grow our business and if we fail to effectively manage
larger projects and our growth generally, it could disrupt our business and reduce our
profitability.

We are continually bidding for and being awarded larger BOT projects. For example, our first
BOT project was the Dhule Bypass, the Project Cost (comprising the EPC costs, the interest paid
on the debt financing during construction of the project and other expenses incidental to the
project during the construction period, collectively, the “Project Cost”) of which was Rs. 58.17
million. In 2006, we were awarded the concession for the NH-6 Bhandara road in Maharashtra, the
estimated Project Cost of which is Rs. 5,350.00 million. In 2006, we were awarded the concession
for the NH-6 Durg Bypass, Chhattisgarh - Maharashtra border road, the estimated Project Cost of
which is Rs. 5,870.00 million. In November 2009, the Company entered into an agreement with
PNG Tollway Private Limited, in which the Company has a 26% interest, for the Company to
provide the EPC services for the construction of the 452 lane kms Maharashtra Pimpalgaon-
Nashik-Gonde section of the NH-3 road, except for an elevated corridor, for a total of Rs. 5,805.40
million. In May 2010, we were awarded the concession for the NH-6 Sambalpur-Baragarh road in
Orissa, the estimated EPC cost of which is Rs. 10,080.00 million. In May 2010, we were awarded
the concession for the NH-4 Belgaum-Dharwad road in Karnataka, the estimated EPC cost of
which is Rs. 6,300.00 million.

We expect our business to continue to grow as we gain greater access to financial resources and
are awarded larger and potentially more profitable projects by our clients. While larger projects
provide the opportunity for greater profitability, they also pose greater challenges and risk. We
expect our strategy of bidding for larger projects and our growth generally to place significant
demands on us and require us to continuously evolve and improve our operational, financial and
internal controls across our organization. In particular, taking on larger projects and continued
expansion increases the challenges involved in:

x preserving a uniform culture, values and work environment across our projects;
x developing and improving our internal administrative infrastructure, particularly our
financial, operational, communications, internal control and other internal systems;
x recruiting, training and retaining sufficient skilled management, technical and marketing
personnel;
x requirements for increased amount of working capital and, therefore, increasing amounts
of debt financing;

xxiv
 x maintaining high levels of client satisfaction; and
x adhering to health, safety, and environmental standards.

If we fail to effectively manage larger projects or our growth generally, it could have an adverse
effect on our business, results of operations and financial condition.

26. The development of two shopping malls exposes us to risks with which we are unfamiliar
and to which we have not previously been exposed. We have not yet commenced
construction of these shopping malls as we have not received vacant possession of the land
for either development and we have not yet finalised the estimated total Project Cost for
each development.

In September 2008, we entered into a concession agreement with Kalyan Dombivali Municipal
Corporation (“KDMC”) for the construction and development of a shopping mall with a built up
area of a maximum of 5,228 sq. metres on the campus of Rukminibai Hospital in Kalyan City,
Maharashtra. The concession agreement gives us the right to build the shopping mall and to
market it to prospective tenants, with a maximum lease period of 60 years. We paid KDMC a
project development fee of Rs. 6.00 million. We are also required to pay a project premium of Rs.
129.00 million, out of which we have paid 50%. The remaining 50% is required to be paid within
12 months of us receiving vacant possession of the land. We have not finalised the estimated
Project Cost. The construction of the project is yet to begin since we have not received vacant
possession of the land due to a legal dispute with the current tenants on the land where the
shopping mall is to be constructed, details of which are given below.

Suresh Khureja and others filed a writ petition in the Bombay High Court against KDMC wherein
the Company was included as a respondent for, among other things, the issuance of an injunction
restraining the respondents from evicting the petitioners from their shop premises on the land
where the shopping mall described above and the land where the other shopping mall described
below are to be constructed and a stay on the commencement of construction work on both
shopping malls. The Bombay High Court has vide order dated February 26, 2010 disposed off the
petition with an order to KDMC to give proper notices to the shop occupants. In accordance with
the Bombay High Court’s, KDMC has initiated the process of giving notices to the shop
occupants.

In September 2008, we entered into a concession agreement with KDMC for the construction and
development of a shopping mall with a built up area of a maximum of 7,225 sq. metres in
Adharwadi, Kalyan City, Maharashtra. The concession agreement gives us the right to build the
shopping mall and to market it to prospective tenants, with a maximum lease period of 60 years.
We paid KDMC a project development fee of Rs. 7.80 million. We are also required to pay a
project premium of Rs. 130.00 million, out of which we have paid Rs. 65 million. The remaining
Rs. 65 million is required to be paid within 12 months of us receiving vacant possession of the
land. The construction of the project is yet to begin since we have not received vacant possession
of the land due to the legal dispute described above.

For further details on these two shopping mall developments, please see the section entitled
“Business-Our Services and Products-BOT Division-BOT Commercial Development Projects” on
page 117 of this Prospectus.

The success of the retail shopping mall projects will depend substantially on our ability to
implement our business strategy effectively. Even if we have successfully executed our business
strategies in the past, there is no guarantee that we can implement the same on time and within the
estimated budget.

The development of the retail shopping mall projects may require us to use significant amounts of
cash, issue potentially dilutive equity securities or incur debt. In addition, new business

xxv
 development involves numerous risks, any of which could harm our business, results of operations
and financial condition, including:

x increased cash outflows, including increased development costs;

x the diversion of management’s attention from other business concerns; and
x increased fixed costs.

Further, due to our inexperience in developing retail shopping mall projects, such new
undertakings may not be successful, which may also lead to a loss of our reputation.

27. Any inability to attract, recruit and retain skilled personnel could adversely affect our
business and results of operations.

Our ability to meet future business challenges depends on our ability to attract, recruit and retain
talented and skilled personnel. We are highly dependent on our senior management, our Directors
and other key personnel, including skilled project management personnel. A significant number of
our employees are skilled engineers, and we face strong competition to recruit and retain skilled
and professionally qualified staff. Due to the limited pool of available skilled personnel,
competition for senior management and skilled engineers in our industry is intense. We could
experience difficulties in attracting, recruiting and retaining an appropriate number of managers
and engineers for our business needs. In the last year, wages for skilled personnel have increased
by as much as double. We may need to further increase our pay structures to attract and retain
such personnel. Our future performance will depend upon the continued services of these persons.
The loss of any of the members of our senior management, our Directors or other key personnel or
an inability to manage the attrition levels in different employee categories may materially and
adversely impact our business, results of operations and financial condition.

28. Our agreements for our toll-based BOT projects contain limited protection against new
roads and bridges being built to compete against them.

The agreements for the toll-based BOT projects awarded to us by the NHAI provide that the
NHAI will not build or award a contract to build a competing project for a period of eight years
from the appointment date (180 days from the date of the concession agreement) of the project.
However, for those projects we may be subject to competition from new roads or bridges, as the
case may be, developed by the relevant state governments, which are not subject to the control of
the NHAI. Our toll-based BOT projects awarded to us by various state governments typically do
not provide such protection. If a new road or bridge is built that competes with one of our toll-
based BOT projects, the volume of traffic on that project may decrease, resulting in a decrease in
toll revenue from that project, which could have a material adverse effect on our results of
operations and financial condition.

29. We face significant competition and if we fail to compete effectively it will have an adverse
effect on our business, financial condition and results of operations.

We operate in a competitive environment. The competition for EPC contracts and BOT projects
varies depending on the size, nature and complexity of the project and on the geographical region
in which the project is to be executed. Some of the EPC businesses and BOT project businesses
we compete against have greater financial resources, economies of scale and operating
efficiencies. We also face competition for sales of ready-mix concrete and bitumen and in winning
contracts for collecting tolls on roads/bridges owned and constructed by third parties. There can be
no assurance that we can continue to effectively compete with our competitors in the future, and
the failure to compete effectively may have an adverse effect on our business, financial condition
and results of operations. For more information concerning our competitors, please see “Our
Business-Competition” on page 127 of this Prospectus.

xxvi
30. Our portfolio is increasingly concentrated in large-scale projects which increases our
exposure to potentially higher cost overruns and exposes us to the risk of a default by joint
venture partners if we have entered into a joint venture to undertake the project. Due to
requirements with respect to capital adequacy, technical or other requirements, we may be
unable to qualify to bid for certain larger EPC contracts and BOT projects unless we team
up with a third party and bid for the project through a joint venture or special purpose
vehicle.

Large contracts, which we define as projects with a value of more than Rs. 5,000.00 million,
represented 46.35% of our Order Book as at May 31, 2010 and may take up an increasingly large
part of our portfolio, increasing the potential volatility of our results through increased exposure to
individual contract risks. Managing large-scale integrated projects may also increase the potential
relative size of cost overruns and negatively affect our operating margins. In addition, we may
need to execute large-scale projects through joint ventures with other companies, which expose us
to the risk of default by our joint venture partners. If we do not achieve our expected margins or
suffer losses on large contracts, this could have an adverse effect on our results of operations.

In order to be able to bid for certain larger scale projects, we enter into memoranda of
understanding or joint venture agreements with various other companies to meet capital adequacy,
technical or other requirements that may be required as part of the bidding process or execution of
the contract. In cases where we are unable to forge an alliance with appropriate companies to meet
such requirements, we may lose out on opportunities to bid, which could have an adverse effect on
our growth prospects.

31. Our business is relatively concentrated in projects in the states of Maharashtra, Madhya
Pradesh and Chhattisgarh.

Our project portfolio has historically been concentrated in projects in and around the states of
Maharashtra, Madhya Pradesh and Chhattisgarh. As at May 31, 2010, approximately 73.85%;
9.78% and 10.63% of our Order Book was comprised of projects in the states of Maharashtra,
Madhya Pradesh and Chhattisgarh, respectively. Should there be a regional slowdown in
construction or infrastructure projects in those states, then our business, financial condition and
results of operations could suffer.

32. Our insurance coverage may not adequately protect us against all losses we incur in our
business operations or otherwise.

Our significant insurance policies consist of coverage for risks relating to physical loss or damage
as well as business interruption loss. In addition, we have obtained separate insurance coverage for
personnel related risks, motor vehicle risks and loss of movable assets risks. Under certain of our
contracts, we are required to obtain insurance for the project undertaken by us. We maintain
insurance which we believe is typical in our industry and in amounts which we believe are
commercially appropriate. However, such insurance may not be adequate to cover all losses or
liabilities that may arise from our operations, particularly when the loss suffered is not easily
quantifiable. Even if we have obtained adequate insurance coverage, there can be no assurance
that any claim under the insurance policies maintained by us will be honoured fully, in part or on
time. Further, we may not have obtained insurance cover for some of our projects that do not
require us to maintain insurance. Additionally, there may be various other risks and losses for
which we are not insured either because such risks are uninsurable or not insurable on
commercially acceptable terms. To the extent that we suffer loss or damage for which we did not
obtain or maintain insurance, that is not covered by insurance or exceeds our insurance coverage,
the loss would have to be borne by us and it could have a material adverse effect on our results of
operations and financial condition.

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33. Timely and successful completion of our projects is dependent upon our performance and, in
the case of some of our projects, the cooperation of our joint venture partners, other
members of special purpose vehicles and sub-contractors. If our joint venture partners,
members of special purpose vehicles and sub-contractors default on their obligations and
they do not have adequate financial resources to meet their indemnity obligations to us, it
could have a material adverse effect on our results of operations and financial condition.

We often enter into joint ventures or special purpose vehicles to take on a project or sub-contract
part of the work in a project to various sub-contractors. In those instances, the completion of the
contract for our client depends in part on the performance of our joint venture partners, other
members of the special purpose vehicle and sub-contractors. Delay or failure on the part of a joint
venture partner, member of the special purpose vehicle or sub-contractor to complete its work on a
project on time, for any reason, could result in delayed payment to us or termination of the
contract, which in turn may affect our cash flow and results of operations. Furthermore, failure to
adhere to contractually agreed timelines for any reason could result in our being required to pay
damages, lead to forfeiture of security deposits or invocation of performance guarantees and
damage our reputation. Damage to our reputation could adversely affect our ability to pre-qualify
for projects, which in turn could adversely affect our business and results of operations.

The liability of joint venture partners is joint and several. Therefore, we would be liable for
completion of the entire project if a joint venture partner were to default on its duty to perform.
The special purpose vehicle is liable to complete the entire project and if another member of the
special purpose vehicle did not perform as agreed, we may need to fund the completion of the
entire project.

We are currently a party to a total of nine special purpose vehicles, namely: Ashoka Highway Ad;
Ashoka–DSC Katni Bypass Road Private Limited; Viva Highways Private Limited; Jayaswals
Ashoka Infrastructure Private Limited; Viva Infrastructure Private Limited; Viva Highway Private
Limited; Ashoka Highways (Durg) Limited; Ashoka Highways (Bhandara) Limited; and Jaora-
Nayagaon Toll Road Company Private Limited. We are currently a party to a joint venture
agreement with Valecha Engineering Limited. For details of our current special purpose vehicles
and the joint venture, please see the section entitled “History and Certain Corporate Matters-Our
Joint Ventures” on page 147 of this Prospectus.

If a joint venture partner, member of a special purpose vehicles or sub-contractor defaults on their
obligations and they do not have adequate financial resources to meet their indemnity obligations
to us, it could have a material adverse effect on our results of operations and financial condition.

34. Our indebtedness and the conditions and restrictions imposed on us by our financing
agreements could adversely affect our ability to conduct our business.

As at March 31, 2010, we had total secured and unsecured loans of Rs. 11,220.99 million on a
consolidated basis. For further details, please see the sections entitled “Auditor’s Report on
Consolidated Financial Information – Statement of Secured Loans” and “Auditor’s Report on
Consolidated Financial Information – Statement of Unsecured Loans” on pages 297 and 299,
respectively, of the Red Herring of Prospectus. As at May 31, 2010, we had total outstanding
secured and unsecured loans of Rs. 7,120.85 million on a standalone basis. For further details,
please see the sections entitled “Auditor’s Report on Standalone Financial Information –
Statement of Secured Loans”, “Auditor’s Report on Standalone Financial Information – Statement
of Unsecured Loans” and “Indebtedness” on pages 246, 248 and 202, respectively, of the Red
Herring of Prospectus. We may incur additional indebtedness in the future. Our indebtedness
could have several important consequences, including but not limited to the following:

x a portion of our cash flow will be used towards repayment of our existing debt, which
will reduce the availability of cash to fund working capital needs, capital expenditures,
and other general corporate requirements;

xxviii
 x our ability to obtain additional financing in the future at reasonable terms may be
restricted;
x fluctuations in market interest rates may affect the cost of our borrowings, as some of our
loans are at variable interest rates; and
x we may be more vulnerable to economic downturns, may be limited in our ability to
withstand competitive pressures and may have reduced flexibility in responding to
changing business, regulatory and economic conditions.

Most of our financing arrangements are secured by our movable assets and by certain immovable
assets of our Promoter Group Companies. Our accounts receivable and inventories, including in
some instances the projected revenues from our BOT projects, are subject to charges created in
favour of specific secured lenders. Many of our financing agreements also include various
conditions and covenants that require us to obtain lender consents prior to carrying out certain
activities and entering into certain transactions. Failure to meet these conditions or obtain these
consents could have significant consequences for our business. The major corporate actions for
which the Company requires the prior written consent of its lenders comprise the following:
effecting any change in its capital structure; formulating any scheme of amalgamation or
reconstruction; implementing or undertaking any new project/scheme or acquisition; making any
corporate investments or investment by way of share capital or debentures or lend or advance
funds to or place deposits with, any other concern except give normal trade credits or place on
security deposits in the normal course of business or make advances to employees; provided that
the Company may make such investments by way of deposits or advances that are required
statutorily to be made as per existing laws of the country or the rules or regulations or guidelines
issued from time to time by the authorities concerned; undertaking guarantee obligations on behalf
of any third party or any other company; declaring dividends for any year except out of the profits
relating to that year; any drastic change in the management set-up of the Company; permitting any
transfer of the controlling interest in the Company.

Compliance with the various terms of our loans is subject to interpretation and we cannot assure
you that we have requested or received all consents from our lenders that would be advisable
under our financing documents. As a result, it is possible that a lender could assert that we have
not complied with all the terms under our financing documents. Any failure to service our
indebtedness, comply with a requirement to obtain a consent or perform any condition or covenant
could lead to a termination of one or more of our credit facilities, acceleration of amounts due
under such facilities and cross-defaults under certain of our other financing agreements, any of
which may adversely affect our ability to conduct our business and have a material adverse effect
on our financial condition and results of operations.

35. As at March 31, 2010, the Company had Rs. 1,599.62 million of unsecured debt on a
standalone basis and Rs. 1,543.42 million on a consolidated basis that was repayable on
demand. In the event that the lenders of such loans call in these loans, we would need to find
alternative sources of financing, which may not be available on commercially reasonable
terms or at all.

As at March 31, 2010, the Company had a total of Rs. 1,599.62 million of unsecured loans on a
standalone basis that were repayable on demand. For details, please see the section entitled
“Indebtedness-Details of Borrowings by the Company-Unsecured Borrowings”. As at March 31,
2010, on a consolidated basis, the Company had a Rs. 1,543.42 million unsecured loan that was
repayable on demand. In the event that the lenders of such loans call in these loans, the Company
would need to find alternative sources of financing, which may not be available on commercially
reasonable terms or at all.

xxix
36. The Company has pledged or has agreed to pledge and will continue to pledge a portion of
its shares in its BOT project companies in favour of lenders, who may exercise their rights
under the respective pledge agreements in events of default.

The Company has pledged, or has agreed to pledge, a portion of its shares in its BOT project
companies in accordance with loan agreements in favour of the lenders as security for the loans
provided to these companies. The details of shares of its BOT project companies pledged by the
Company as at March 31, 2010 are provided in the following table:

Sr. Name of the No. of shares Name of the Terms of the pledge
No. BOT project of the BOT lender(s) to
company project whom shares
company pledged
pledged by the
Company
1. Ashoka 295,000 Axis Bank Pledge shall be enforceable on the
Infraways Limited occurrence of an event of default under the
Private Limited loan agreement dated May 29, 2008 between
Axis Bank Limited and Ashoka Infraways
Private Limited.

2. Viva Highways 7,257,864 IDFC Limited Pledge shall be enforceable on the
Private Limited and State occurrence of an event of default under the
Bank of India common rupee loan agreement dated
February 1, 2005 between IDFC Limited,
State Bank of India and Viva Highways
Private Limited

3. Ashoka 19,750,000 Consortium of Pledge shall be enforceable on the
Infrastructure equity shares lenders led by occurrence of an event of default under the
Limited 4,351,400 Bank of India sanction letters dated August 10, 2007 and
preference December 26, 2007 between Bank of India
shares and Ashoka Infrastructure Limited, the
sanction letter dated September 18, 2007
between Ashoka Infrastructure Limited and
Federal Bank of India, and the term loan
agreement entered between Bank of India
and Federal Bank of India and Ashoka
Infrastructure Limited.

4. Ashoka DSC 1,530,000 Bank of India Pledge shall be enforceable on the
Katni Bypass  Federal Bank occurrence of an event of default under the
Road Private common loan agreement dated September
Limited 18, 2007 between Bank of India, Federal
Bank and Ashoka DSC Katni Bypass Road
Private Limited.

5. Ashoka 13,317,658 Consortium of Pledge shall be enforceable on the
Highways lenders led by occurrence of an event of default under the
(Bhandara) the State Bank common loan agreement dated September
Limited of India  11, 2008 between consortium of lenders led
State Bank of India and Ashoka Highways
(Bhandara) Limited.

6. Ashoka 15,154,734 Consortium of Pledge shall be enforceable on the
Highways lenders led by occurrence of an event of default under the
(Durg) Limited the State Bank common loan agreement dated January 14,
of India  2009 between consortium of lenders led by
State Bank of India and Ashoka Highways
(Durg) Limited.

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 Sr. Name of the No. of shares Name of the Terms of the pledge
No. BOT project of the BOT lender(s) to
company project whom shares
company pledged
pledged by the
Company

7. Jayaswals 4,000,000 IDFC Limited Pledge shall be enforceable on the
Ashoka occurrence of an event of default under the
Infrastructure common loan agreement dated August 8,
Private Limited 2005 between IDFC Limited and Jayaswals
Ashoka Infrastructure Private Limited.

If these companies default on their obligations under the relevant financing documents, the lenders
may exercise their rights under the share pledges, have the shares transferred to their names and
take management control over the pledged companies. If this happens, the Company will lose the
value of any such pledged shares and it will no longer be able to recognize any revenue
attributable to them.

37. Our operations are subject to physical hazards and similar risks that could expose us to
material liabilities, loss in revenues and increased expenses.

While construction companies, including us, conduct various scientific and site studies during the
course of bidding for projects, there are always anticipated or unforeseen risks that may come up
due to adverse weather conditions, geological conditions, specification changes and other reasons.
Additionally, our operations are subject to hazards inherent in providing engineering and
construction services, such as risk of equipment failure, work accidents, fire or explosion,
including hazards that may cause injury and loss of life, severe damage to and destruction of
property and equipment, and environmental damage.

We may also be subject to claims resulting from defects arising from engineering, procurement
and/or construction services provided by us within the warranty periods stipulated in our contracts,
which typically range from 12 to 60 months from the date of commissioning. Actual or claimed
defects in equipment procured and/or construction quality could give rise to claims, liabilities,
costs and expenses, relating to loss of life, personal injury, damage to property, damage to
equipment and facilities, pollution, inefficient operating processes, loss of production or
suspension of operations. Our policy of covering these risks through contractual limitations of
liability, indemnities and insurance may not always be effective. In some of the jurisdictions in
which we operate, environmental and workers’ compensation liability may be assigned to us as a
matter of law. As per AS 7 of the Indian Accounting Standards, construction companies are
required to recognize, in the respective accounting period, potential losses that may be incurred in
the foreseeable future. These liabilities and costs could have a material adverse effect on our
business, results of operations and financial condition.

38. If we fail to keep pace with technical and technological developments in the construction
industry, it could adversely affect our business and results of operations.

Our recent experience indicates that clients are increasingly developing larger, more technically
complex projects in the civil construction and infrastructure sector. To meet our clients’ needs, we
must regularly update existing technology and acquire or develop new technology for our
engineering construction services. In addition, rapid and frequent technology and market demand
changes can often render existing technologies and equipment obsolete, requiring substantial new
capital expenditures and/or write-downs of assets. Our failure to anticipate or to respond
adequately to changing technical, market demands and/or client requirements could adversely
affect our business and results of operations.

xxxi
39. Our business is subject to a variety of environmental laws and regulations. Any failure on
our part to comply with applicable environmental laws and regulations could have an
adverse effect on our business.

Our operations are subject to numerous environmental protection laws and regulations, which are
complex and stringent. We regularly perform work in and around sensitive environmental areas
such as rivers, lakes, coastlines and forests. Sanctions for failure to comply with these laws, rules
and regulations, many of which may be applied retroactively, may include administrative, civil
and criminal penalties, revocation of permits and corrective action orders. Certain environmental
laws provide for strict liability for remediation of hazardous substances released on a site. In
addition, we incur significant expenditure relating to operating methodologies and standards in
order to comply with applicable environmental laws and regulations. Furthermore, we believe
environmental regulations in India will become more stringent in the future. The scope and extent
of new environmental regulations, including their effect on our operations, cannot be predicted
with certainty. The costs and management time required to comply with these requirements could
be significant.

Our clients are generally responsible for obtaining environmental permits required to proceed with
the project. Any failure or inability by our clients to retain the requisite permits may have an
adverse effect on our business and results of operations.

40. Our inability to obtain, renew or maintain the statutory and regulatory permits and
approvals required to operate our business could have a material adverse effect on our
business.

We require certain statutory and regulatory permits and approvals for our business. Additionally,
we may need to apply for more approvals in the future including renewal of approvals that may
expire from time to time. There can be no assurance that the relevant authorities will issue such
permits or approvals in the timeframe anticipated by us or at all. Failure by us to renew, maintain
or obtain the required permits or approvals at the requisite time may result in the interruption of
our operations and may have a material adverse effect on our business, financial condition and
results of operations. Further, we cannot assure that the approvals, licenses, registrations and
permits issued to us would not be suspended or revoked in the event of non-compliance or alleged
non-compliance with any terms or conditions thereof, or pursuant to any regulatory action. Any
failure to renew the approvals that have expired or apply for and obtain the required approvals,
licenses, registrations or permits, or any suspension or revocation of any of the approvals, licenses,
registrations and permits that have been or may be issued to us, may impede our operations. For
details, please refer to the section entitled “Government Approvals” on page 387 of this
Prospectus.

41. Failure by us to recover adequately on our claims made by us against our clients for
payment or extension of concession periods could have a material adverse effect on our
financial condition.

Project claims are claims brought by us against our clients for additional work and costs incurred
in excess of the contract price or amounts not included in the contract price. These claims typically
arise from changes in the initial scope of work or from delays caused by the client. These claims
are often subject to lengthy arbitration, litigation or other dispute resolution proceedings. The costs
associated with these changes or client caused delays include additional direct costs, such as
labour and material costs associated with the performance of the additional work, as well as
indirect costs that may arise due to delays in the completion of the project, such as increased
labour costs resulting from changes in labour markets. We have used significant additional
working capital in projects with cost overruns pending the resolution of the relevant project
claims. For further information, please refer to the section entitled “Outstanding Litigation and
Material Developments” on page 342 of this Prospectus.

xxxii
42. We have certain contingent liabilities that may adversely affect our financial condition.

As at March 31, 2010, we had an aggregate amount of Rs. 18,415.18 million as contingent
liabilities outstanding on a consolidated basis, of which Rs. 3,537.32 million was for bank
guarantees and letters of credit issued by banks in favour of third parties. For further details, please
see the section titled “Auditor’s Report on Consolidated Financial Information-Annexure XIII” on
page 306 of this Prospectus. Clients of construction companies usually demand performance
guarantees from construction companies as a safety net against potential defaults. Additionally,
construction companies are usually required to have letters of credit issued by their lenders in
favour of their suppliers and other vendors. Hence, construction companies often carry substantial
contingent liabilities for the projects they undertake. We cannot assure you that our clients will not
execute on any of our guarantees or letters of credit as a result of default in the future.

Our contingent liabilities and commitments as at March 31, 2010 were as follows:

(In Rs. Million)

Contingent Liabilities As at March 31, 2010
Bank Guarantees and Letters of Credit issued by bankers in favour of 3,537.32
third parties
Corporate Guarantee issued by the Company in favour of Banks/ 12,396.57
Financial Institutions for finance raised by Companies under the same
management
Claims against the Company not acknowledged as debts. 9.47
Liability against capital commitments outstanding (net of advances) 2,189.67
Disputed tax demands (net of taxes paid) 278.23
Liability of Duty against Export Obligations 3.92
Total 18,415.18

We cannot assure you that any or all of these contingent liabilities and commitments will not
become direct liabilities. In the event any or all of these contingent liabilities and commitments
become direct liabilities, it may have an adverse effect on our business, financial condition and
results of operations.

43. The Company has made significant investments in non-trading unquoted shares of its
subsidiaries, associates and joint ventures, which are not freely marketable and hence,
involve a substantial degree of risk on investments made by the Company.

As at March 31, 2010, we have made an investment of Rs. 2,027.39 million in the shares of our
various subsidiaries, associates and joint ventures which are not publicly traded. Consequently, we
have limited ability to dispose of these shares. Accordingly, under certain conditions, we may be
forced to either sell our shares at lower prices than we had expected to realize or defer, potentially
for a considerable period of time, sales that we had planned to make. These risks will increase if
we are required urgently to liquidate the shares. Consequently, we may incur additional costs or be
unable to participate in other opportunities, thereby adversely affecting our financial condition and
result of operations

44. Our results of operations could be adversely affected by disruptions to our operations due to
disputes with our work force.

As at March 31, 2010, we employed 2,412 full-time employees and 38 contracted staff (some of
whom work full-time and some part-time) and had no other part-time workers. Although we have
not lost any work days to strikes or other disruptions by our work force in the past, there can be no
assurance that we will not experience disruptions to our operations due to disputes or other
problems with our work force, which may adversely affect our business and results of operations.

xxxiii
45. The grant of stock options under our employee stock option plan may result in a charge to
our profit and loss account and may adversely impact our results of operations. In addition,
the exercise of options to purchase Equity Shares may dilute existing shareholders.

We established our employee stock option plan in December, 2007, in which select employees of
the Company can participate. If the exercise price of any option is lower than the fair value of the
Equity Shares as certified by qualified accountants or market price at the time of grant, such grant
will result in a charge to the Company’s profit and loss account equal to the product of the number
of Equity Shares granted and the difference between the exercise price and the fair value, which
will be amortized over the vesting period of the stock option.

Holders of the Equity Shares may experience dilution of their shareholding to the extent that we
issue Shares pursuant to any stock options.

46. Our Promoters, certain of our Directors and certain Promoter Group Companies are
engaged in business activities similar to ours.

Our Promoter Directors and certain Promoter Group Companies are engaged in business activities
similar to those undertaken by us, such as construction and civil engineering and this could be a
potential source of conflict of interest. There are no non-compete agreements in place between us
and our Promoter Group Companies. There may be conflicts of interest between us and our
Promoter Group Companies, such as bidding for the same projects or contracts. While in the past
we believe that we have not faced any actual conflict, we cannot assure you that no such conflict
will arise in the future that may affect our financial condition and prospects. Further, we cannot
assure you that if any actual conflict of interest does arise, we will be able to resolve the conflict of
interest in our favour.

Our Promoters and certain of our Directors are also on the board of directors of some of our
Promoter Group Companies. In case of a conflict of interest between one of our Promoter Group
Companies and us, our Promoters or such directors may favour our Promoter Group Company
over us. Further, our Promoters and Directors may need to devote time to our Promoter Group
Companies and may, consequently, not be able to dedicate the time and attention necessary to
fulfil their obligations as Promoters/Directors in the Company.

External Risk Factors

1. Our business is substantially dependent on road and bridge projects in India undertaken or
awarded by governmental authorities and other entities funded by the Government of India
and/or State Governments or international and multilateral development finance
institutions. Any change in government policies resulting in a decrease in the amount of road
and bridge projects undertaken or a decrease in private sector participation in road and
bridge projects may adversely affect our business and results of operations.

Our business is substantially dependent on road and bridge projects in India undertaken or
awarded by governmental authorities and other entities funded by the Government of India and/or
State Governments or international and multilateral development finance institutions. Revenue
from the construction of roads and bridges awarded by the Central Government, state governments
and municipalities in India accounted for approximately 88.93%, 38.20%, 51.38%, 94.30%, and
99.24% of our income from operations for fiscal 2006, 2007, 2008, 2009 and 2010, respectively.
Contracts for the construction of roads and bridges awarded by the Central Government, state
governments and municipalities in India accounted for approximately 99.63% of our Order Book
as at May 31, 2010. Sustained increases in budgetary allocations by the Central Government and
various state governments for investments in the infrastructure sector, the development of
structured and comprehensive infrastructure policies that encourage greater private sector
participation and increased funding by international and multilateral development financial
institutions in infrastructure projects in India have resulted in and are expected to continue to

xxxiv
 result in increases in the amount of road and bridge projects undertaken in India. If there is any
change in governmental policies that result in a slowdown in the development of road and bridge
projects or a decrease in the participation of the private sector in such projects, our business and
results of operations could be materially and adversely affected.

2. Increases in interest rates could adversely affect our business, financial condition and results
of operations.

Increases in interest rates adversely affect our financial condition and results of operations. As at
March 31, 2010, Rs. 10,238.07 million or 91.24% of our borrowings were at floating rates of
interest. We normally fund the construction of our BOT projects with approximately 30% of
equity capital and 70% of debt. In some cases, a portion of our equity capital is funded through the
issuance of fixed return obligations to third parties making that portion of the equity effectively
mezzanine debt. Normally, we would not fund a project with more than 10% in mezzanine debt.
Therefore, we require access to debt at reasonable interest rates. If interest rates increase, our
ability to service our debt and our ability to obtain additional debt for future projects could be
adversely affected with a concurrent adverse effect on our business, financial position and results
of operations.

3. Our business is subject to a significant number of tax regimes and changes in legislation
governing the rules implementing them or the regulator enforcing them in any one of those
jurisdictions could negatively and adversely affect our results of operations.

We currently have operations and staff spread across nine states and Union Territories in India.
Consequently, we are subject to the jurisdiction of a number of tax authorities and regimes. The
revenues recorded and income earned in these various jurisdictions are taxed on differing bases,
including net income actually earned, net income deemed earned and revenue-based tax
withholding. The final determination of our tax liabilities involves the interpretation of local tax
laws and related regulations in each jurisdiction as well as the significant use of estimates and
assumptions regarding the scope of future operations and results achieved and the timing and
nature of income earned and expenditures incurred. We are involved in various disputes with tax
authorities. For details of these disputes, please see the section entitled “Outstanding Litigation
and Material Developments” on page 342 of this Prospectus. Changes in the operating
environment, including changes in tax law, could impact the determination of our tax liabilities for
any given tax year.

Taxes and other levies imposed by the Central or state governments in India that affect our
industry include customs duties, excise duties, VAT, income tax, service tax and other taxes,
duties or surcharges introduced from time to time. The Central and state tax scheme in India is
extensive and subject to change from time to time. Although most of our BOT agreements provide
for compensation due to changes in law, which includes changes in tax laws, any adverse changes
in any of the taxes levied by the Central or state governments could adversely affect our
competitive position and profitability.

4. Contracts awarded to us by governments or government-backed entities may be unilaterally

terminated if it is in the public interest. If a contract is unilaterally terminated, the amount
of compensation we receive may be less than our expected profit from the contract and
maybe less than the value of the loan we have taken for the project. Therefore, the
termination of a BOT contract prior to the expiration of the concession period could have a
material adverse effect on our results of operations and financial condition.

One of the standard conditions in contracts typically awarded by governments or government-

backed entities is that the government or entity, as the client, has the right to terminate the contract
if it is in the public interest, at any time after providing us with notice that may vary from a period
of 30 to 90 days. In addition, governmental clients retain certain rights to terminate BOT contracts
prior to the expiration of the concession period. However, the amount of compensation received

xxxv
 under the terms of the contract may be less than the amount of profit we would have made had we
retained the right to operate the concession until the end of the concession period. The amount of
compensation we would receive in such circumstances is based in part on our traffic volume
forecasts we made at the time of the submission of our tender for a BOT project. Out of the 20
BOT projects we have constructed, we have leveraged 15 of these by borrowing additional
amounts in order to generate additional working capital. We were able to borrow more money on
these BOT projects based in part on updated forecasts for traffic volume, which may be higher
than that originally forecast. If that was the case, the amount of compensation could be less than
the outstanding loan on the project. Therefore, the termination of a BOT contract prior to the
expiration of the concession period could have a material adverse effect on our results of
operations and financial condition.

5. Political instability or changes in the Government could adversely affect economic conditions
in India generally and our business in particular.

The Indian Government has traditionally exercised and continues to exercise a significant
influence over many aspects of the economy. Our business, and the market price and liquidity of
our Equity Shares, may be affected by interest rates, changes in Government policy, taxation,
social and civil unrest and other political, economic or other developments in or affecting India.
Since 1991, successive Indian Governments have pursued policies of economic liberalization and
financial sector reforms. However, there can be no assurance that such policies will be continued
in the future.

Since the present government is a multi-party coalition depending upon the support of other
parties, there can be no assurance that it will be able to generate sufficient cross-party support to
implement any liberalization policies adopted by the previous central government or that such
policies will continue in the future. Protests against privatizations, which have occurred in the
past, could slow the pace of liberalization and deregulation. The rate of economic liberalization
could change, and specific laws and policies affecting foreign investment, currency exchange rates
and other matters affecting investment in India could change as well. A significant change in
India’s economic liberalization and deregulation policies could disrupt business and economic
conditions in India generally and adversely affect our business, prospects, financial condition and
results of operations.

6. Significant increases in the price of or shortages in the supply of crude oil could adversely
affect the volume of traffic on our toll-based build, operate and transfer (“BOT”) projects
and the Indian economy in general, including the construction industry, which could have a
material adverse effect our business and results of operations.

India imports a significant majority of its requirements of crude oil. Crude oil prices are volatile
and are subject to a number of factors, including the level of global production and political
factors, such as war and other conflicts, particularly in the Middle East, where a substantial
proportion of the world’s oil reserves are located. Any significant increase in the price of or
shortages in the supply of crude oil could adversely affect the volume of traffic on our toll-based
BOT projects and adversely affect the Indian economy in general, including the construction
industry, which could have a material adverse effect on our business and results of operations.

7. Civil unrest, acts of violence including terrorism or war involving India and other countries
could materially and adversely affect the financial markets and our business.

Any major hostilities involving India or other acts of violence, including civil unrest or similar
events that are beyond our control, could have a material adverse effect on India’s economy and
our business. Terrorist attacks and other acts of violence may adversely affect the Indian stock
markets, where our Equity Shares will trade, and the global equity markets generally. Such acts
could negatively impact business sentiment as well as trade between countries, which could
adversely affect our business and profitability.

xxxvi
 India, the United States or other countries may enter into armed conflict or war with other
countries or extend pre-existing hostilities. South Asia has, from time to time, experienced
instances of civil unrest, political tensions and hostilities among neighbouring countries. Military
activity or terrorist attacks could adversely affect the Indian economy by, for example, disrupting
communications and making travel more difficult. Such events could also create a perception that
investments in Indian companies involve a higher degree of risk. This, in turn, could adversely
affect client confidence in India, which could have an adverse impact on the economies of India
and other countries, on the markets for our products and services and on our business.
Additionally, such events could have a material adverse effect on the market for securities of
Indian companies, including the Equity Shares.

8. Our operations are sensitive to weather conditions.

We have business activities that could be materially and adversely affected by severe weather.
Severe weather conditions may require us to evacuate personnel or curtail services and may result
in damage to a portion of our fleet of equipment or to our facilities, resulting in the suspension of
operations, and may further prevent us from delivering materials to our project sites in accordance
with contract schedules or generally reduce our productivity. Our operations are also adversely
affected by difficult working conditions and extremely high temperatures during summer months
and during monsoon, which restrict our ability to carry on construction activities and fully utilize
our resources.

We record contract revenues for those stages of a project that we complete, after we receive
certification from the client that such stage has been successfully completed. Since revenues are
not recognized until we make progress on a contract and receive such certification from our
clients, revenues recorded in the first half of our financial year between April and September are
traditionally substantially lower compared to revenues recorded during the second half of our
financial year. During periods of curtailed activity due to adverse weather conditions, we may
continue to incur operating expenses, but our revenues from operations may be delayed or
reduced.

9. Natural calamities could have a negative impact on the Indian economy and cause our
business to suffer.

India has experienced natural calamities such as earthquakes, a tsunami, floods and drought in the
past few years. Natural calamities could have a negative impact on the Indian economy and may
cause suspension, delays or damage to our current projects and operations, which may adversely
affect our business and our results of operations.

10. Any downgrading of India’s debt rating by an international rating agency could have a
negative impact on our business.

Any adverse revisions to India’s credit ratings for domestic and international debt by international
rating agencies may materially and adversely impact our ability to raise additional financing, and
the interest rates and other commercial terms at which such additional financing is available. This
could have a material adverse effect on our business, financial condition and results of operations
and future financial performance.

11. If more stringent labour laws or other industry standards in the jurisdictions in which we
operate become applicable to us, our profitability may be adversely affected.

We are subject to a number of stringent labour laws and restrictive contractual covenants related to
levels of employment. India has stringent labour legislation that protects the interests of workers,
including legislation that sets forth detailed procedures for dispute resolution and employee
removal and legislation that imposes financial obligations on employers upon retrenchment. In

xxxvii
 addition, the Government of India is considering introducing a reservation policy to the private
sector in India, pursuant to which all private sector companies operating in India would be
required to reserve a certain percentage of jobs for the economically underprivileged population in
the states where such companies are incorporated. If this policy is adopted, our ability to hire
employees of our choice may be affected due to restrictions on our pool of potential employees
and competition for these employees. Our employees may also in the future form unions.

If labour laws or industry standards become more stringent or are more strictly enforced or if our
employees unionise, it may become difficult for us to maintain flexible human resource policies,
discharge employees or downsize, any of which could have a material adverse effect on our
business, results of operations, financial condition and cash flows.

12. The Company’s transition to IFRS reporting could have a material adverse effect on its
reported results of operations or financial condition.

Public companies in India, including the Company, may be required to prepare annual and interim
financial statements under IFRS in accordance with the roadmap for the adoption of, and
convergence with, IFRS announced by the Ministry of Corporate Affairs, Government, through the
press note dated January 22, 2010 (the “Press Release”) and the clarification thereto dated May 4,
2010 (together with the Press Release, the “IFRS Convergence Note”). Pursuant to the IFRS
Convergence Note, which have a net worth of Rs. 5,000 million or less, as per the audited balance
sheet as at March 31, 2009 or the first balance sheet for accounting periods which ends after that
date, are required to convert their opening balance sheet as at April 1, 2014 in compliance with the
notified accounting standards to be converged with IFRS. The Company has not yet determined
with any degree of certainty what impact the adoption of IFRS will have on its financial reporting.

The Company’s financial condition, results of operations, cash flows or changes in shareholders’
equity may appear materially different under IFRS than under Indian GAAP or our adoption of
IFRS may adversely affect our reported results of operations or financial condition. This may have
a material adverse effect on the amount of income recognised during that period and in the
corresponding (restated) period in the comparative fiscal year/period.

In addition, in our transition to IFRS reporting, we may encounter difficulties in the ongoing
process of implementing and enhancing our management information systems. Moreover, our
transition may be hampered by increasing competition and increased costs for the relatively small
number of IFRS-experienced accounting personnel available as more Indian companies begin to
prepare IFRS financial statements.

Risk Factors Related to the Equity Shares

1. The Company may be required to undertake additional issuances of Equity Shares in

accordance with Rule 19(2)(b) of the SCRR, as amended. Any further issuance of Equity
Shares by the Company or sales of Equity Shares by any significant shareholders may
adversely affect the trading price of the Equity Shares.

The Government of India, through notifications dated June 4, 2010 and August 9, 2010, amended
Rule 19(2)(b) of the SCRR, pursuant whereto a company desirous of getting listed on a recognised
stock exchange is, inter alia, required to allot and offer at least 25% of the issued share capital to
the public in terms of an offer document. Further, in terms of Rule 19(A) of the SCRR, every
listed company is required to maintain public shareholding of at least 25%. The Company is
undertaking the Issue in terms of first proviso to Rule 19(2)(b)(ii) of the SCRR, which provides
that a company seeking listing on a recognised stock exchange may offer at least 10% of the
issued share capital to public in terms of an offer document if its offer document is pending with
SEBI. However, such a company is required to increase its public shareholding to at least 25%
within a period of three years from the date of listing. Whilst the shareholding of certain investors
in the Company may be considered public shareholding in terms of Rule 19(2)(d) of the SCRR,

xxxviii
 there is regulatory uncertainty in this regard. The Company may, therefore, be required to increase
its public shareholding to 25% within a period of three years from the date of listing to maintain
continuous listing on the Stock Exchanges.

Any future issuance of our Equity Shares by the Company could dilute your shareholding. Any
such future issuance of our Equity Shares or sales of our Equity Shares by any of our significant
shareholders may also adversely affect the trading price of our Equity Shares, and could impact
our ability to raise capital through an offering of our securities. In addition, any perception by
investors that such issuances or sales might occur could also affect the trading price of our Equity
Shares. Upon completion of the Issue, the entire post-Issue capital held by our Promoters and
other existing shareholders other than IDFC PE II will be locked up for a period of one year and
20% of our post-Issue paid-up capital held by our Promoters will be locked up for a period of
three years from the date of allotment of Equity Shares in the Issue. For further information
relating to such Equity Shares that will be locked in, please see Notes to the Capital Structure in
the section “Capital Structure” on page 31 of this Prospectus.

2. We have not paid dividends in the past and may not pay dividends in the future.

The Company has never paid dividends to its Equity shareholders in the past. Whether or not the
Company pays dividends in the future and the amount of any such dividends, if declared, will
depend upon a number of factors, including our results of operations and financial condition,
contractual restrictions (including the terms of some of our financing arrangements that currently
restrict our ability to pay dividends) and other factors considered relevant by our Board of
Directors and shareholders. There is no assurance that the Company will declare and pay, or have
the ability to declare and pay, any dividends on Equity Shares at any point in the future.

3. The price of our Equity Shares may be volatile, or an active trading market for our Equity
Shares may not develop.

Prior to this Issue, there has been no public market for our Equity Shares. The trading price of our
Equity Shares may fluctuate after this Issue due to a variety of factors, including our results of
operations and the performance of our business, competitive conditions, general economic,
political and social factors, volatility in the Indian and global securities markets, the performance
of the Indian and global economy, significant developments in India’s fiscal regime and other
factors. There can be no assurance that an active trading market for our Equity Shares will develop
or be sustained after this Issue, or that the price at which our Equity Shares are initially offered
will correspond to the prices at which they will trade in the market subsequent to this Issue.

4. You will not be able to sell immediately any of the Equity Shares you purchase in this Issue
on the Stock Exchanges.

The Equity Shares will be listed on the National Stock Exchange of India Limited (the “NSE”)
and the Bombay Stock Exchange Limited (the “BSE”, and together with the NSE, the “Stock
Exchanges”). As required by Indian regulations, certain actions must be completed before the
Equity Shares can be listed and trading may commence. Investors’ book entries or dematerialised
accounts with depository participants in India are expected to be credited within two working days
of the date on which the basis of allotment is approved by the Designated Stock Exchange.
Thereafter, upon receipt of final approval of the Stock Exchanges, trading in the Equity Shares is
expected to commence within seven working days of the date on which the basis of allotment is
approved by the Designated Stock Exchange. There can be no assurance that the Equity Shares
allocated earlier to investors will be credited to their dematerialised accounts or that trading will
commence within the time periods specified above. If the permissions to deal in and for an official
quotation of the Equity Shares are not granted by the Stock Exchanges, the Company will
forthwith repay, without interest, all moneys received from the applicants in pursuance of this
Prospectus. If such money is not repaid within eight days after the Company becomes liable to
repay it, i.e. from the date of refusal or within 70 days from the Bid/Issue Closing Date, whichever

xxxix
 is earlier, then the Company and every Director of the Company who is an officer in default shall,
on and from such expiry of eight days, be liable to repay the money, with interest at the rate of
15% p.a. on application money, as prescribed under Section 73 of the Companies Act.

Prominent Notes:

x The Company’s net worth on a standalone basis as at March 31, 2010 was Rs. 4,049.32 million
and the Company’s net worth on a consolidated basis as at March 31, 2010 was Rs. 4,623.18
million.

x The net asset value per Equity Share was Rs. 88.62 as at March 31, 2010 as per our standalone
financial statements and the net asset value per Equity Share was Rs. 101.18 as at March 31, 2010
as per our consolidated financial statements.

x The average cost of acquisition of per Equity Share by our Promoters, which has been calculated
by taking the average amount paid by them to acquire our Equity Shares, is as follows:

Sr. No. Name of the Promoter Cost of acquisition (Rs.)

1. Ashok M. Katariya 2.63
2. Satish D. Parakh 1.48
3. Ashish A. Katariya 0.81
4. Aditya S. Parakh 0.50

x The Company has entered into certain transactions with related parties, including our Promoter
Group Companies, associates and joint ventures, Directors and their relatives, key management
personnel and enterprises in which key management personnel/Directors have significant
influence. These related party transactions totalled Rs. 8,008.20 million on a standalone basis in
fiscal 2010 and Rs. 2,234.66 million in fiscal 2010 on a consolidated basis. For details of the
related party transaction entered into by the Company, please see the section entitled “Related
Party Transactions” on page 200 of this Prospectus. For details on the consolidated related party
transactions, please see the section entitled “Auditor’s Report on Consolidated Financial
Information-Annexure XVII” on page 310 of this Prospectus

x Investors may contact any of the BRLMs and CBRLM complaints, information or clarifications
pertaining to the Issue.

xl
 SUMMARY OF INDUSTRY

Infrastructure Sector

The fast growth of the economy in recent years has placed increasing stress on physical infrastructure such
as electricity, railways, roads, ports, airports, irrigation, water supply and sanitation, all of which already
suffer from a substantial deficit in terms of capacities and efficiencies in their delivery. Whilst there has
been some improvement in infrastructure development in transport, communication and energy sectors in
the recent years, there are still significant gaps that need to be bridged.

We believe India will require a sustained momentum in infrastructure investment in order to maintain its
current pace of growth. The 11th Five Year Plan envisages an infrastructure investment of Rs. 20,561
billion (at FY 2007 prices), equaling US$514 billion, to be shared between the Centre, states and private
sector in the ratio of 37.2%, 32.6% and 30.1%. Set forth below is the estimated level of investment in the
infrastructure sector over XI plan: (Figures in Rs. Billion)

Sector Xth Plan 2007- 2008- 2009- 2010- 2011- Total

(Anticipated 08 09 10 11 12 XI
Exp.) Plan
Electricity 2,918 820 1,016 1,264 1,579 1,986 6,665
Roads and Bridges 1,448 518 548 592 684 800 3,142
Telecommunications 1,034 314 381 486 616 787 2,584
Railways (incl. MRTS) 1,197 342 410 495 604 767 2,618
Irrigation (incl. Watershed) 1,115 275 359 472 623 804 2,533
Water Supply & Sanitation 648 193 228 273 333 411 1,437
Ports 141 124 148 174 200 234 880
Others 213 117 126 137 152 170 702
Total 8,714 2,703 3,216 3,893 4,791 5,959 20,561
Total (US$ billion) @Rs. 40/$ 217.86 67.57 80.39 97.32 119.78 148.98 514.04
(Source: Annual Plans and other documents of the Planning Commission and Central Statistical
Organization for the Tenth Plan period)

To maintain the levels of growth in the economy, as achieved in the recent past, there has to be a
continuous thrust for development of infrastructure. In the 12th five year plan (2012-2017), the required
Gross Capital Formation (GCF) in infrastructure is estimated to be around Rs. 40,750 Billion (US$ 1,019
Billion). Such projections are made assuming the fact that the GCF in infrastructure as a % of GDP would
rise from 9% in FY2012 to 10.25% in FY2017 and that the GDP would continue to grow at 9% per annum.
(Source: Investment in Infrastructure; The Secretariat for the Committee on Infrastructure,
www.infrastructure.gov.in)

In our view, the current economic slowdown provides an opportunity for countries like India that have a
substantial degree of unmet infrastructure requirements. The Government's focus, sustained increased
budgetary allocation and increased funding by international and multilateral development finance
institutions for infrastructure development in India may result in development of several infrastructure
projects across India. The Government of India has also undertaken/ proposed various initiatives to
encourage private sector participation, such as tax breaks for investments in infrastructure.

The Role of the Private Sector in Infrastructure Development

Historically, the government has played a key role in supplying and regulating infrastructure services in
India and private sector has not participated in infrastructure development. However, due to the public
sector’s limited ability to meet the massive infrastructure funding requirements, private sector investment
in infrastructure is critical. Therefore, the Indian government is actively encouraging private investments in
infrastructure. According to World Bank, India needs to invest an additional 3-4% of GDP on infrastructure

1
to sustain its current levels of growth in the medium term and to spread the benefits of growth more widely.
(Source: India Country Overview 2009, World Bank)

Despite the critical role played by infrastructure development in growth, there still exists a very wide gap of
US$10-15 billion between the current and required levels of private investments in infrastructure. Over the
15-year period from 1990 to 2005, total private investments stood at around US$51 billion or US$3.4
billion per year, of which US$30 billion has come in the five-year period FY 2002-FY 2006. (Source:
Private Participation in Infrastructure Database, World Bank Group)

Roads Sector

India has one of the largest road networks in the world, aggregating to 3.32 million kms, consisting of
National Highways, expressways, state highways, major district roads, other district roads and village
roads. The road network comprises 70,548 kms of National Highways, 131,899 kms of State Highways,
467,763 kms of Major District Roads and about 2,650,000 kms of Rural and other roads. National
Highways comprise only about 2% of the total length of roads and carry about 40% of the total traffic
across the length and breadth of the country. (Source: NHAI Website)

The number of vehicles grew at an average pace of 10.10% per annum over the period from FY 2000 to FY
2004. In FY 1999, 54% of total freight was transported by roads, which increased to 62% in 2008.
Passenger traffic on roads as a percentage of total passenger traffic has also witnessed a huge increase from
30% in 1951 to 86% in 2008. (Source: CRISIL Research, Road Network in India, June 30, 2009). The
expansion and strengthening of the road network, therefore, is imperative to provide for both present and
future traffic volumes and for improving accessibility to less developed parts of the country. Additionally,
road transport needs to be regulated for better energy efficiency, lesser pollution and enhanced road safety.
The Central Government is mandated to develop National Highways and the responsibility for the
development of other categories of roads vests with the States/Union Territories.

Public Private Partnership (“PPP”)

Historically, investments in infrastructure, particularly in the highways, were being made by the
government mainly due to the huge volume of resources required, the long gestation period, uncertain
returns and various external risks. The enormous resource requirements, the significance of infrastructure
development for economic growth and significant deficit in infrastructure requirements have led to an
active involvement of the private sector also in recent years. To encourage participation of the private
sector, the Ministry of Road Transport & Highways has laid down comprehensive policy guidelines for
private sector participation in the highway sector. The Government has also announced several incentives
such as tax exemptions and duty free import of road building equipments and machinery to encourage
private sector participation.

The Government has taken initiatives to improve and strengthen the road network by implementing the
National Highway Development Program (“NHDP”). The NHDP is the largest highway project ever
undertaken in India and is being implemented by the National Highways Authority of India (“NHAI”). It
was started in 1998 and is supported by revenues derived from cess tax on fuel and toll collection.

The total length proposed to be developed under NHDP has been split into the different contact models:

x Toll-based BOT projects (“BOT (Toll)”);

x Annuity-based BOT projects (“BOT (Annuity)”); and
x Engineering, procurement and construction (“EPC”) contracts.

Under all three contract models, the contractor is responsible for the engineering of the project, the
procuring of materials for the project and the construction of the project. For BOT (Toll) and BOT
(Annuity), the contractor is also responsible for maintaining the project. The difference between BOT
(Toll) and BOT (Annuity) is that in the case of BOT (Toll), the traffic/commercial risks are borne by the
concessionaire and the investment is sustained by toll revenues, while in BOT (Annuity) projects, all costs

2
are borne by the Government in the form of deferred budgetary payments. In the case of BOT (Toll),
government budgetary support, if any, is restricted to an upfront grant, while in some cases the
concessionaire may even pay the granting authority a one off fee as part of the concession grant. In the case
of BOT (Annuity), the concessionaire relies on annuity payments determined by competitive bidding and
made out of budgetary allocations spread over time.

Based on interactions as well as data available for select stretches, returns vary from contract to contract.
Typically, in an annuity, the project IRR would be in the range of 12-14% and equity IRR would be in the
range of 14 -16%. For toll, where the concessionaire assumes the traffic risk, the project IRR would be in
the range of 14- 16% and equity IRR would be in the range of 18-20%. (Source: CRISIL Research, Project
Economics, Roads and Highways, Oct 22, 2008)

The table below sets forth the proposed breakdown of contract models for the NHDP:

NHDP Phase Item EPC BOT (Toll) BOT (Annuity) Total

NHDP-I Length (in kms) 1,711 20 7 1,738
(Balance Work) Cost (in Rs. billions) 81.45 5.81 0.85 88.11
NHDP-II Length (in kms) 4,569 1,237 930** 6,736
(Balance Work) Cost (in Rs. billions) 294.93 80.65 60.64 436.22
NHDP-III Length (in kms) - 10,000 - 10,000
Cost (in Rs. billions) - 651.97 - 651.97
NHDP-IV Length (in kms) - 5,000 15,000** 20,000
Cost (in Rs. billions) - 69.50 208.50 278.00
NHDP-V Length (in kms) - 6,500 - 6,500
Cost (in Rs. billions) - 412.10 - 412.10
NHDP-VI Length (in kms) - 1,000 - 1,000
Cost (in Rs. billions) - 166.80 - 166.80
NHDP-VII Length (in kms) * * * *
Cost (in Rs. billions) 25.94 96.38 44.48** 166.80
Total Length (in kms) 6,280 23,757 15,937 45,974***
Cost (in Rs. billions) 402.32 1,483.21 314.47 2,200.00
* Length to be covered under NHDP-VII was not finalized when the report was published.
** To be determined based on budgetary resources and the tolling policy for two-lane highways.
*** Does not include the length to be covered under NHDP-VII.
(Source: Report of the Core Group on Financing of the National Highway Development Program,
February 6, 2006)

In order to boost the participation of the private sector in road development, the Government has planned
the following initiatives:

x The Government will carry out all preparatory work, including land acquisition and utility
removal. Right of way will be made available to concessionaires, free from all encumbrances;
x NHAI/the Government will provide a capital grant of up to 40% of the project cost to enhance
viability on a case-by-case basis evaluation;
x The concessionaries will receive a 100% tax exemption for five years and 30% relief for the
following five years, which may be utilized in 20 years;
x Permitted concession period of up to 30 years;
x Arbitration and Conciliation Act, 1996 based on UNCITRAL provisions applicable to contracts;
x In BOT projects, concessionaries are permitted to collect and retain tolls; and
x Duty free importation of specified modern high capacity equipment for highway construction.

3
(Source: Public Partnerships in India, Ministry of Finance, Government of India)

National Highway Development Program

The Government has taken initiatives to improve and strengthen the road network by implementing the
NHDP. The NHDP is the largest highway project ever undertaken in India and is being implemented by the
NHAI. It was started in 1998 and is supported by revenues derived from cess tax on fuel and toll collection.
NHDP consists of the following components:

x NHDP Phases I & II envisage four/six laning of about 14,234 kms of National Highways at an
estimated cost of Rs. 650.00 billion at 2004 prices. These two phases comprise Golden
Quadrilateral (“GQ”), North-South and East-West (“NSEW”) corridors, port connectivity and
other projects. The GQ consisting of 5,846 kms length connects the four major cities of Delhi,
Mumbai, Chennai and Kolkata. The NSEW corridors, comprising a length of 7,300 kms,
connecting Srinagar in the North to Kanyakumari in the South, including a spur from Salem to
Kochi and Silchar in the East to Porbandar in the West, respectively. The NHDP also includes the
Port Connectivity Project, which comprises a length of 380 kms for improvement of roads
connecting 12 major ports in India and other projects involving a length of 945 kms.

x The Government of India has approved upgrading 12,109 kms under NHDP Phase III. As on May
31, 2010, 5,271 kms of roads are still to be awarded. (Source: NHAI Website) Due to various
policy changes with respect to request for proposals and litigations raised by National Highways
Builders Federation (“NHBF”) against NHAI, the bidding process was delayed.

x The Government of India has approved the six laning of 6,500 kms of National Highways
comprising 5,846 kms of the GQ and the balance of other sections of National Highways under
NHDP Phase V at a cost of Rs. 412.10 billion.

x The Government of India has also approved the construction of 1,000 kms of expressways with
full access control on new alignments at a cost of Rs. 166.80 billion under NHDP Phase VI.

The table below sets forth the status of the NHDP as at May 31, 2010:

GQ NSEW NHDP SARD NHDP NHDP NHDP NHDP NHDP

& Phase P-NE Phase- Phase - Phase - Phase Total
Phase - III IV V VI – VII
I & II
Total Length 5,846 7,300 12,109 388 14,799 6,500 1000 700 48,462
(kms)
Already 4- 5,791 5,117 1,712 - - 275 - - 12,895
laned (kms)
Under 55 1,531 5,126 112 176 2,025 - 41 9,066
Implementatio
n (kms)
Number of 13 113 73 2 1 - 2 221
Contracts 17
under
implementation
Balance to be - 494 5,271 276 14,623 4,200 1000 659 26,523
awarded (kms)
(Source: National Highways Authority of India)

4
The targets for completion of the various components of the NHDP are as follows:

NHDP Component Target for Completion

Completion of NS-EW Corridors, Port Connectivity & December 2009
other projects under NHDP-Phase-I&II
Completion of NHDP-Phase-III December 2013
Completion of NHDP-Phase-V December 2012
Completion of NHDP-Phase-VI December 2015
th
(Source: Plan Document, 11 Five Year Plan; CRISIL Research, NHDP Review & Outlook, Feb 23, 2009)

The estimated cost of the various components of the NHDP is as follows:

Name of Project Estimated

Cost
(Rs. in Billion)
Completion of GQ and EW-NS corridors 524.34
4-laning of 11,113 kms under NHDP Phase-III 724.54
2-laning with paved shoulders of 20,000 kms of National Highways under NHDP Phase- 278.00
IV
6-laning of selected stretches of National Highways under NHDP Phase-V 412.10
Development of 1,000 kms of expressways under NHDP Phase-VI 166.80
Construction of ring roads, flyovers and bypasses on selected stretches under NHDP 166.80
Phase-VII.
Total 2,272.58
th
(Source: Plan Document for 11 Five Year Plan)

All the above mentioned projects will be financed through various sources of funds including cess, loan
assistance from the World Bank and Asian Development Bank, borrowings by NHAI, estimated surplus
amount available from the users’ fee and private sector investment. Various sources of funding to finance
these projects have been finalised and the financing plan implementation by the year 2015 has been
approved. The requirement of funds during the 11th Five Year Plan (FY 2008- FY 2012) for
implementation of NHDP has been established at Rs. 1,735.01 billion. (Source: Plan Document for 11th
Five Year Plan)

The projected availability of funds from various sources during the 11th Five Year Plan is set forth below:

Funding Source Amount (Rs. in Billion)

Cess 365.89
External Assistance 44.54
Borrowings by NHAI 416.15
Surplus from the user fee 31.08
Share of private sector 877.35
Total 1,735.01
th
(Source: Plan Document for 11 Five Year Plan)

National Highways – It has been estimated by the Planning Commission that Rs. 1,217.58 billion would be
required for the Ministry of Road Transport & Highways during the 11th Five Year Plan. Further, it has
been estimated by the Planning Commission that Rs. 31.08 billion would be available for implementation

5
of the NHDP from the surplus of the users’ fees collected by the NHAI during the 11th Five Year Plan. The
share of private sector investment during the 11th Five Year Plan is estimated to be Rs. 877.35 billion.
(Source: Plan Document for 11 th Five Year Plan)

State Roads – The proposed programme envisages a financial outlay of Rs. 10.00 billion for the 11th Five
Year Plan with the possible element of private finance estimated at Rs. 3.20 billion. (Source: Plan
Document for 11 th Five Year Plan)

6
 SUMMARY OF BUSINESS

Overview

We build and operate roads and bridges in India on a build, operate and transfer (“BOT”) basis. We believe
we currently operate one of the highest number of toll-based BOT projects in India. In addition, to BOT
projects, we also (1) engineer and design, procure the raw materials and equipment for and construct roads,
bridges, distribution transformers, electricity substations, commercial buildings, industrial buildings and
institutional buildings for third parties as well as perform maintenance for third parties, (2) manufacture
and sell ready-mix concrete (“RMC”), bitumen and pre-cast concrete poles and (3) collect tolls on roads
and bridges owned and constructed by third parties.

Our business is organised into four divisions:

x the BOT division;

x the engineering, procurement and construction (“EPC”) division;
x the RMC and bitumen division; and
x the toll collection contract division.

We can trace our origins back to 1976. Prior to fiscal 1997, we were engaged solely in the engineering and
construction of residential, commercial, industrial and institutional buildings. In fiscal 1997, having
acquired EPC skills, we also turned our attention to bidding for contracts for toll roads and toll bridges on a
BOT basis. We were awarded our first BOT project, the Dhule bypass in Maharashtra, in fiscal 1997 and
completed the construction of the road in the same fiscal year. In fiscal 2000 we began manufacturing
RMC solely for use by our EPC division. In fiscal 2002 we began to manufacture RMC to sell to third
parties as well as for use by our EPC division. In fiscal 2005 we began processing bitumen to a higher
grade at our facility in Pune for use in road projects. Having developed systems and procedures for
collecting tolls on our BOT projects, including developing our own proprietary computerised toll revenue
auditing system, we tendered for and were awarded our first contract to collect the tolls on a road owned
and constructed by a third party. In fiscal 2009 we began undertaking EPC work in the power sector when
we were awarded a contract by Maharashtra State Electricity Distribution Company Limited for, among
other things, the construction and commissioning of sub-transmission lines, distribution lines, power
transformers and new sub-stations. In September 2008 we entered into agreements for constructing and
developing two shopping malls on a BOT basis. In September 2009 we began manufacturing pre-cast
concrete poles. In April 2010, the Government of Maharashtra issued us a letter of allotment for us develop
a 1,500 KW per hour hydro electric power plant in Waghur, Maharashtra on a build, own, operate and
transfer (“BOOT”) basis.

Our head office is in Nashik, Maharashtra and our operations currently reach across the states of
Maharashtra, Madhya Pradesh, Chhattisgarh, Rajasthan, Karnataka and Orissa. In the past, we have also
undertaken work in Gujarat, Goa and Tamil Nadu, Uttaranchal, the National Capital Territory of Delhi and
the union territories of Dadra and Nagar Haveli and Daman and Diu.

BOT Division. We currently operate or have an interest in 23 BOT road projects totalling approximately
3,498.35 kilometres of lanes in Maharashtra, Madhya Pradesh, Chhattisgarh, Karnataka and Orissa the
concessions for which were awarded on a BOT basis. The weighted average concession period (including
toll collection period) for these 23 BOT road projects was 21.09 years as at March 31, 2010. In order to
meet specific eligibility requirements for certain larger BOT projects, including requirements relating to
particular types of experience and financial resources, we have entered into project-specific joint ventures
or special purpose vehicles with other companies. Out of the 23 BOT projects mentioned above, 17 are in
operation and six are under construction. Of the 17 BOT projects in operation:

x four are operated by the Company;

x 11 are operated by the subsidiaries of the Company/joint ventures controlled by the Company;
x one is operated by an associate company in which the Company has a 50% interest; and

7
x one is operated by a joint venture in which the Company has a 5% interest.

Of the six BOT projects under construction:

x four are being developed by subsidiaries of the Company;

x one is being developed by PNG Tollway Private Limited, in which the Company has a 26%
interest; and
x one is being developed by Jaora Nayagoan Toll Road Company Private Limited (“Jaora Nayagoan
Toll Road Company”), in which the Company has a 13.76% beneficial interest.

In addition, we have built, operated and successfully transferred three BOT projects at the end of the
concession periods, thereby experiencing the complete life cycle of a BOT project.

In order to capitalize on our EPC commercial building experience, we entered into two agreements in
September 2008 to develop two shopping malls in Kalyan, Maharashtra on a BOT basis. The construction
of these projects has not yet begun. These two malls will have an estimated total leasable area of 12,453 sq.
metres. These two shopping malls will be the first commercial buildings we will have built to lease out to
third parties. We do not currently plan to undertake any further development of commercial property.

In April 2010, the Government of Maharashtra issued us a letter of allotment for us to build, own and
operate a 1,500 KW per hour hydro electric power plant in Waghur, Maharashtra on approximately 5,000
sq. metres of land currently owned by the Government of Maharashtra. We are required to transfer
ownership of the power plant to the Government of Maharashtra 30 years from the date of the signing of
the formal agreement for the project, which has yet to be executed. We intend to bid for more power plant
projects to be developed on a BOOT basis.

EPC Division. Our EPC division primarily engineers and designs, procures the raw material and equipment
for and constructs roads and bridges for our BOT division and third parties. Our EPC division also (a)
maintains and repairs existing roads for our BOT division, (b) constructs and modernises power distribution
networks, comprising distribution transformers and electricity substations, for third parties and (c)
constructs commercial, industrial and institutional buildings for third parties. We own a large fleet of
construction equipment. As at May 31, 2010, the Company, its subsidiaries and its predecessor entities had
constructed 44 roads and bridges and built over 5.4 million square feet of commercial, industrial and
institutional projects. As at May 31, 2010, the Company’s Order Book, which comprises the unfinished and
uncertified portion of projects that we have been awarded, was Rs. 16,153.64 million. The Company’s
Order Book as at May 31, 2010 does not include the construction of the NH-6 Sambalpur-Baragarh road in
Orissa for a fixed fee of Rs. 10,080.00 million and the construction of the NH-4 Belgaum-Dharwad road in
Karnataka for a fixed fee of Rs. 6,300.00 million. The Company received the work orders for these projects
in June 2010 from Ashoka Belgaum Dharwad Tollway Private Limited and Ashoka Sambalpur Baragarh
Tollway Private Limited, respectively, entities in which the Company has a 98.67% beneficial interest.
These BOT projects were awarded to us in May 2010 and the concession agreements were signed in June
2010.

We received an ISO 9002 in 1998, an ISO 9001:2000 in 2001 for Certificate for Quality Assurance, an ISO
14001:2004 in 2005 for our environmental management system and QHSAS18001:2007 in 2007 for safety.
In February 2010 we received an ISO 14064 for having our greenhouse gas emissions independently
monitored and reviewed on a regular basis. According to ISC, we are the first Indian infrastructure
construction company to receive the ISC certification for Quality (ISO 9001:2000), Environment (ISO
14001:2004) and Occupational Health and Safety Management System (OHSAS 18001:1999) upgraded to
(OHSAS 18001:2007) for Integrated System Management in relation to the design, development,
construction of roads, bridges, industrial buildings, residential and commercial complexes, production and
sale of ready-mix concrete, operation and maintenance of road infrastructure projects, and power
transmission and distribution projects. We have also received numerous construction awards, including the
Nasik Industries and Manufacturers’ Association ‘Excellence Award 2001’ - First Prize in ‘Large Scale
Industries’ and the Indian Institute of Bridge Engineers ‘Most Outstanding Bridge - National Award 2001’.

8
In March 2010, we were awarded a CIDC Vishwakarma Award 2010 in the category of ‘Best
Professionally Managed Company’ with an annual turnover more than Rs. 5,000 million.

RMC and Bitumen Division. Our RMC and bitumen division sells ready-mix concrete and bitumen and
supports the EPC division by ensuring that it has an adequate and timely supply of high-quality RMC and
bitumen. We have 14 RMC plants with a total production capacity of 650 cubic metres per hour and 86
concrete transit trucks and 19 concrete pumps. This division also sells and processes bitumen to a higher
grade for use in road projects and supports our EPC division by supplying it with bitumen. We have one
plant in Pune for the processing of bitumen with a capacity of 60 metric tonnes per day.

Toll Collection Contract Division. We set up our toll collection contract division to leverage our
experience of collecting tolls on our BOT projects and our proprietary computerised toll revenue auditing
system. To date, we have entered into four agreements to collect tolls on roads/bridges owned and
constructed by third parties, although our last contract expired in February 2007.

As at March 31, 2010, our work force consisted of 2,412 full-time employees, including 1,153 technical
staff.

For fiscal 2009 and fiscal 2010 we had a consolidated total income of Rs. 5,333.61 million and Rs.
8,142.05 million, respectively, and a consolidated net profit attributable to shareholders of Rs. 348.14
million and Rs. 858.52 million, respectively.

Set forth below is our organisational chart, including the name of each concession operator, the Company's
beneficial interest in the concession operator and the name of the BOT project in parentheses and italics:

9
 Company

Toll Collection EPC Division BOT Division RMC and Bitumen

Contract Division Division

99.80% 50.99 26%

Ashoka Ashoka Pre- PNG Tollway Private

Technologies Pvt. Con Pvt. Ltd. Limited (NH 3
Ltd Pimpalgaon – Nashik –

100% 86.74%(1) 100% 100% 50% 5%

Company's BOT projects

Company's BOT projects Viva Highways Ashoka Infrastructure Ashoka Jayaswals Ashoka
Private Limited Limited Infraways Private Ashoka Bridgeways
(Ahmednagar – Karmala Road)
(Ahmednagar – Karmala Limited Infrastructure
(Nashirabad Railway-over
Road) Bridge) (Indore – Edalabad (Pune – Shirur Road) Private Limited (Anawali –
Road) (Dewas Bypass) (Wainganga Kasegaon Road)
(Sheri Nallah Bridge)
(Nashirabad Railway-over Bridge)
Bridge) Road)
(Ahmednagar – Aurangabad
(Shopping(Sheri
mall Nallah
– campus of
Bridge)
Rukmin, Bai Hospital, Kalyan, 99.99
(Ahmednagar – 99.99% 98.67%
Maharashtra) 98.67
Aurangabad Road)
(Shopping mall – Adharwardi, Ashoka Sambalpur Ashoka Belgaum
Ashoka Infrastructures Ashoka High-way Ad
Kalyan City, Maharashtra) Baragarh Tollway Dharwad Tollway
(Waghur Hydro Electric Power (Dhule Bypass) (6 foot-over-bridges Private Limited Private Limited
Plant) (8) in Mumbai) (NH-6 Sambalpur- (NH-4 Belgauvn –
Baragarh Rd)(6) Dharwhd)(7)

99.89 52 02 53.18 13.76

Ashoka-DSC Katni Bypass Ashoka Highways (Bhandara) Ashoka Highways Jaora Nayagoan Toll Road
Road Pvt. Ltd. Limited (Durg) Limited Company
(NH–6 322.4 km-405 km
(Katni Bypass) (NH–6 Bhandara Road)(2) )(3) (Jaora–Nayagaon Road)(4)

(1) The Company owns 74.00% of the shares directly and 12.76% of the shares indirectly through its 49.00% interest in Viva Infrastructure Private
Limited, the legal owner of 26% of the shares of Viva Highways Private Limited.
(2) The road is still being constructed. The Company has entered into a shareholders agreement with India Infrastructure Fund and IDFC Limited
pursuant to which the Company’s beneficial interest in this subsidiary is expected to decrease to 51% before the end of fiscal 2011. For details, see the
section entitled “History and Certain Corporate Matters” on page 137 of this Prospectus.

(3) The road is still being constructed. The road will go from the end of the Durg Bypass, Chattisgarh to the Maharashtra border. The Company has
entered into a shareholders agreement with India Infrastructure Fund and IDFC Limited pursuant to which the Company’s beneficial interest in this
subsidiary is expected to decrease to 51% before the end of fiscal 2011. For details, see the section entitled “History and Certain Corporate Matters” on
page 137 of this Prospectus.
(5) The Company has an 13.76% beneficial interest in Jaora Nayagaon Toll Road Company through its 49.00% ownership of Viva Infrastructure Private
Limited, which owns 13.84% of the shares in Jaora Nayagaon Toll Road Company, and through its 86.74% interest in Viva Highways Pvt. Ltd., which
owns 8.05% of the shares in Jaora Nayagaon Toll Road Company.
(6) The road is still being constructed. The road will go from Sambalupur, Orissa to Baragarh, Orissa/Chattisgarh border. The Company has a 98.67%
beneficial interest in Ashoka Sambalpur Baragarh Tollway Private Limited: it owns 45% of the shares directly, 45% of the shares indirectly through its
100% subsidiary Ashoka Infraways Private Limited, which owns 45% of the shares, and 8.67% of the shares indirectly through Viva Highways Private
Limited, which owns 9.99% of the shares. For details, see the section entitled “History and Certain Corporate Matters” on page 137 of this Prospectus.
(7) The road is still being constructed. The road will go from Belgaum to Dharwad, Karnataka. The Company has a 98.67% beneficial interest in Ashoka
Belgaum Dharwad Tollway Private Limited: it owns 45% of the shares directly, 45% of the shares indirectly through its 100% subsidiary Ashoka
Infraways Private Limited, which owns 45% of the shares, and 8.67% of the shares indirectly through Viva Highways Private Limited, which owns 9.99%
of the shares. For details, see the section entitled “History and Certain Corporate Matters” on page 137 of this Prospectus.
(8) The hydro electric power plant is being developed on a build, own, operate and transfer basis.

10
Our Strengths

We believe the following are our key strengths.

Well-established player in toll-based BOT projects in India with a proven ability to partner with other
well-established players in the industry

We were an early mover in India in the BOT project sector. We were awarded our first BOT project, the
Dhule bypass in Maharashtra, in fiscal 1997 and completed the construction of the road in the same fiscal
year. The Dhule Bypass was amongst the first toll-based BOT projects in Maharashtra. We believe we
operate one of the highest number of toll-based BOT projects in India. We currently own or have an
interest in a total of 17 BOT projects in operation comprising approximately 1,099.60 kilometres of lanes.
Four of the Company’s subsidiaries, one of its associate companies and one company in which it has an
13.76% investment interest have been awarded the concessions for six additional BOT projects, comprising
2,398.75 kilometres of lanes, the construction of which has not been completed. Our early-mover status
and continued presence in the toll-based BOT project sector provides us with a platform to further develop
our BOT presence and to win EPC contracts for road and bridge construction projects. In addition, other
well-established players, such as Larsen & Toubro Limited, SREI Infrastructure Finance Limited and
Infrastructure Development Finance Company Limited, have chosen us to partner with them for BOT
projects.

Integrated business model, including our own traffic study expertise and proprietary toll collection audit
system

We are able to undertake all activities related to a BOT road project in-house - from tendering for the
project through to the collection of tolls. This helps to ensure the timely completion of projects, reduces our
reliance on subcontractors and decreases our costs.

We prepare all tendering documents. Our ability to tender appropriately for BOT projects depends heavily
on the assessment of the future traffic patterns on the proposed road or bridge and the amount of tolls to be
collected. Over the course of our more than 14 years in toll-based BOT projects, we have developed an in-
house traffic study team, which has the dual responsibility of conducting pre-bidding traffic surveys and
monitoring toll collections. Our in-house traffic study team has an in-depth knowledge of traffic patterns
not only in Maharashtra, Madhya Pradesh and Chhattisgarh, where we currently have BOT projects, but
also in Tamil Nadu, Karnataka, Andhra Pradesh, Gujarat, Rajasthan, Uttar Pradesh and Punjab. We believe
our in-house traffic forecasting capacity and expertise strengthens our ability to tender effectively for BOT
projects and toll collection contracts.

Our EPC division, with its experienced team of engineers and skilled workman and its fleet of construction
equipment (with a gross block value of Rs. 1,347.35 million as at March 31, 2010), constructs and
maintains the projects. Our RMC and bitumen division manufactures and supplies the concrete and
bitumen, depending on the type of road.

As tolls are paid in cash, we utilise our own toll collection audit system, which includes cameras installed
at toll booths and our own proprietary software, to minimise the chance of cash pilferages. The system
enables us to monitor our toll collection on a real-time basis.

Our integrated structure enables us to bid for a BOT project with confidence in our ability to complete and
operate the project on a profitable basis. It also allows us to capture the entire value in the BOT
development business, including EPC margins, developer returns and operation and maintenance margins.

Long standing history of timely execution of projects

Most of our projects have been executed on time or prior to the scheduled completion date. We constructed
a 90-metre long bridge on the Mahad-Pandharpur state highway in 38 days compared with the scheduled

11
construction time of 12 months. The construction of a 100-metre long bridge called the Pargaon Bridge, a
BOT project, was completed in 65 days compared with the scheduled construction time of 18 months.
Both of these construction feats are recorded in Limca Book of Records. Our EPC contracts generally
provide for bonus payments if we complete construction of a project prior to the scheduled completion
date. For example, we received Rs. 19.00 million for the early completion of the construction of the Phalodi
to Puchpadra road, an EPC contract, which was completed 95 days prior to the scheduled completion date.
If we complete the construction of a road or bridge the subject of a BOT agreement before the scheduled
completion date, we generally get the benefit of collecting tolls on that project earlier than anticipated,
which increases the total period for collecting tolls, thereby increasing our revenue from the project. There
have been no instances where our performance guarantees have been invoked by our clients.

Healthy Order Book position

As at May 31, 2010, the Company’s Order Book totalled Rs. 16,153.64 million, Rs. 14,089.22 of which
related to work for third parties and associated companies. In our industry, the Order Book for third parties
and associated companies is considered an indicator of potential future performance since it represents a
significant portion of our potential EPC revenue stream.

Proven track record of being able to leverage BOT projects on completion of construction.

We have been able to leverage off certain of our completed BOT projects to expand our business. On
completion of the construction of 15 out of 20 of our BOT projects, we have refinanced the debt taken for
the construction of the project and increased the debt outstanding on the project to as much as 150% of the
cost of the project. This provides us with increased cash, which enables us to bid for more BOT projects.

Experienced management and a well-trained employee base

Ashok Katariya, our Chairman, has over 33 years of experience in the construction industry and is a first
generation entrepreneur. Satish D. Parakh, our Managing Director, has over 28 years’ experience in the
construction industry. Sunil B. Raisoni, a director of the Company, has over 26 years’ experience in the
construction industry. Messrs. Parakh and Raisoni both joined the Company as employees and they have
been working with Ashok Katariya for more than 26 years.

We believe we have a well-trained employee base, which enables us to construct various kinds of projects
with different technical requirements. As at March 31, 2010, we employed 2,412 full-time employees,
including 1,153 technical staff.

Our Strategy

Focus on executing larger projects in the Indian road infrastructure sector

As the road infrastructure sector grows, we believe that it will be increasingly characterised by larger
projects. As a result, we intend to bid on larger BOT projects. The primary benefit of this strategy is that
larger projects typically generate higher profit margins than smaller projects. The fixed costs associated
with large projects, such as employee expenses, system automation expenses and administration expenses,
typically represent a lower proportion of the total costs of the project than those incurred in smaller projects
and the overhead costs involved in initiating the project and supplying materials and machinery also
typically represent a lower percentage of the total costs when compared with smaller projects. The
Construction Industry Development Council has forecast that Rs. 2,540 billion will be spent on
constructing roads in India during the Eleventh Five Year Plan (2007-2012).

We have been progressively executing larger projects. For example, our first BOT project was the Dhule
Bypass, the Project Cost for which was Rs. 58.17 million. Except as noted otherwise, all project costs for
BOT projects stated in this Prospectus comprise the EPC costs, the interest paid on the debt financing
during construction of the project and other expenses incidental to the project during the construction
period (the “Project Cost”). In 2006, we were awarded the concession for the NH-6 Bhandara road in

12
Maharashtra, the estimated Project Cost of which is Rs. 5,350.00 million. In 2006, we were awarded the
concession for the NH-6 Durg Bypass, Chhattisgarh - Maharashtra border road, the estimated Project Cost
of which is Rs. 5,870.00 million. In November 2009, the Company entered into an agreement with PNG
Tollway Private Limited, in which the Company has a 26% interest, for the Company to provide the EPC
services for the construction of the 452 lane kms Maharashtra Pimpalgaon-Nashik-Gonde section of the
NH-3 road, except for an elevated corridor, for a total of Rs. 5,805.40 million and utility on sanction basis.
In May 2010, we were awarded the concession for the NH-6 Sambalpur-Baragarh road in Orissa, the
estimated EPC cost of which is Rs. 10,080.00 million. In May 2010, we were awarded the concession for
the NH-4 Belgaum-Dharwad road in Karnataka, the estimated EPC cost of which is Rs. 6,300.00 million

Increase our EPC division’s revenue from third parties

We plan to focus on growing our EPC division’s revenue from third parties. We believe this will provide
us with a more diverse income stream and allow us to take advantage of the demand for contracting-only
projects. It will also help to ensure that our EPC division operates at its optimal capacity. In fiscal 2009,
we began undertaking EPC work in the power sector when we were awarded a contract by Maharashtra
State Electricity Distribution Company Limited for the construction and commissioning of sub-
transmission lines, distribution lines, power transformers and new sub-stations, the augmentation of
existing sub-stations and distribution transformers, and renovation and modernization works. We have been
consistently generating work in this sector from Maharashtra State Electricity Distribution Company
Limited and the Company’s Order Book as at May 31, 2010 included Rs. 6,002.48 million worth of power-
related EPC contracts. We plan to focus on getting additional work in this sector from other companies in
the power sector.

Continue to leverage BOT projects once construction has been completed

In order to increase the cash available to us to expand our business, we plan to continue to leverage our
BOT projects once the construction phase of the project is complete. On completion of the construction of
15 out of the 20 BOT projects we have built (including BOT projects owned by associates), the debt taken
for the construction of the project has been refinanced and the debt outstanding on the project has been
increased to as much as 150% of the EPC cost of the project.

Enter into new contracts for operation, maintenance and collection of tolls on roads and bridges
constructed by third parties

In addition to the construction of new roads, we believe there will be opportunities to win maintenance
contracts and toll collection contracts on roads that have already been built. As a result, we also plan to bid
for road operation and maintenance contracts and toll collection contracts. With our long track record in the
road sector and our integrated business model, we believe we are well positioned to take advantage of these
opportunities.

13
 SUMMARY FINANCIAL INFORMATION

The following tables set forth summary financial information derived from our restated stand-alone and
consolidated financial statements as of and for the years ended March 31, 2010, 2009, 2008, 2007 and
2006. These financial statements have been prepared in accordance with Indian GAAP, the Companies Act
and the SEBI Regulations and presented under the section entitled “Financial Statements” on page 215 of
this Prospectus. The summary financial information presented below should be read in conjunction with
our restated stand-alone and consolidated financial statements, the notes thereto and the section entitled
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” on page 317
of this Prospectus.

SUMMARY STAND-ALONE STATEMENT OF ASSETS AND LIABILITIES, AS RESTATED

(All figures in Rupee Millions)

Particulars As At
March March March March March
31, 2010 31, 2009 31, 2008 31, 2007 31, 2006

ASSETS :
Tangible Assets
Gross block 1,616.85 1,306.22 1,106.47 889.35 566.09
Less: Depreciation Reserve 554.46 430.33 331.85 221.01 152.40
Net block (1 ) 1,062.39 875.89 774.62 668.34 413.69
Intangible Assets
Gross block 2,231.46 2,208.76 1,182.12 1,256.37 1,259.68
Less: Amortisation Reserve 967.03 753.01 537.77 461.23 318.60
Net block (2) 1,264.43 1,455.75 644.35 795.14 941.08
Add : Capital Work in Progress (3) 42.78 179.40 982.62 263.74 48.17
Total ( 1 + 2 + 3)(A) 2,369.60 2,511.04 2,401.59 1,727.22 1,402.94

INVESTMENTS ( B ) 2,159.64 1,935.33 1,653.62 1,607.57 916.84

CURRENT ASSETS, LOANS & ADVANCES:
Inventories* 1,954.62 670.02 905.47 588.58 297.19
Sundry Debtors 1,754.59 727.80 654.76 290.42 477.43
Cash & Bank Balances 587.44 479.07 525.06 1,050.32 448.63
Loans and Advances 2,816.99 2,275.97 684.72 629.61 565.18
Total ( C ) 7,113.64 4,152.86 2,770.01 2,558.93 1,788.42

TOTAL ASSETS (A + B +C) 11,642.88 8,599.23 6,825.22 5,893.72 4,108.20

LIABILITIES AND PROVISIONS:

Unsecured Loans 1,599.62 976.88 804.60 812.11 887.49
Secured Loans 1,668.93 2,277.99 2,287.04 1,726.03 1,222.48
Deferred Tax Liability 30.06 18.39 12.84 24.46 26.81
Current Liabilities & Provisions :
Current Liabilities 3,945.58 1,856.76 778.37 560.09 375.41
Provisions - Staff Unencashed Leave 7.12 4.82 4.91 5.54 2.29
Provisions For Taxation 342.25 155.64 71.07 39.24 17.46
Total (D) 7,593.56 5,290.99 3,958.83 3,167.47 2,531.94
NET WORTH

14
 Particulars As At
March March March March March
31, 2010 31, 2009 31, 2008 31, 2007 31, 2006
Represented by:
Share capital 581.30 587.25 587.25 224.21 211.40
Security premium (Net of Share Issue Expenses) 1,375.70 1,393.32 1,446.69 1,858.90 893.86
Preference Share Redemption Reserve 166.54 159.33 141.62 176.39 151.64
Profit and Loss Account 1,925.78 1,168.86 690.82 466.74 319.36
Less: Preliminary / share issue expenses not - - - - -
written off
Total (E) 4,049.32 3,308.25 2,866.39 2,726.25 1,576.26

TOTAL LIABILITIES (D + E) 11,642.88 8,599.23 6,825.22 5,893.72 4,108.20

Notes:
In the financial year 2007-2008 balance of Profit and loss Account increased by Rs. 3.59 million due to
effect of transitional provision of A.S. 15.
* includes Development Rights for Commercial Units of Rs. 146.51 Millions (F.Y. 2008-09 Rs.144.50
Millions).

15
 SUMMARY STAND-ALONE STATEMENT OF PROFITS AND LOSSES, AS RESTATED

(All figures in Rupee Millions)

Particulars Year Ended
March March March March March
31, 2010 31, 2009 31, 2008 31, 2007 31, 2006
INCOME:
Turnover
- Construction Revenue 9,945.43 6,223.02 2,246.62 2,445.41 1,181.32
- Sales 769.50 811.78 679.71 481.86 247.38
- Toll Income – BOT 447.53 387.82 337.75 280.50 218.72
- Toll Income – Contract - - - 345.40 20.42
Total Turnover 11,162.46 7,422.62 3,264.08 3,553.17 1,667.84
Other Income 202.47 137.42 155.54 158.44 129.17
TOTAL INCOME 11,364.93 7,560.04 3,419.62 3,711.61 1,797.01
EXPENDITURE:
Contract / O & M Expenses 8,695.67 5,305.68 1,881.52 2,191.80 959.97
Cost of Material Sold 573.98 581.56 525.22 374.02 221.90
Toll Expenses – Contract - - - 316.87 17.92
Staff Expenses 227.53 171.54 125.58 102.37 63.73
Administrative Expenses 178.62 152.46 141.65 112.10 70.95
Finance Costs 341.71 449.17 254.04 240.00 160.09
Depreciation 141.80 115.79 99.93 73.64 59.79
Amortisation 214.02 215.24 150.80 142.63 123.66
TOTAL EXPENDITURE 10,373.33 6,991.44 3,178.74 3,553.43 1,678.01

Profit before tax, prior period items and 991.60 568.60 240.88 158.18 118.99
Adjustments
Provision for taxation :
Current Tax 223.01 82.80 29.18 12.74 15.80
Deferred Tax 11.67 5.55 (11.62) (2.35) 14.98
Fringe Benefit Tax - 2.22 2.83 1.41 2.03
Profit before prior period items and Adjustments 756.92 478.03 220.49 146.38 86.18
ADJUSTMENT (see Annexure IV )
ADJUSTMENTS (see Note 1 of Annexure IV) - - - (1.49) 0.79
Current Tax Impact of Adjustments - - - 0.49 (0.50)
Net Profit After Adjustments 756.92 478.03 220.49 147.38 85.89
Profit of Merged Entities
Net Profit attributable to Shareholders 756.92 478.03 220.49 147.38 85.89
Profit Brought Forward from Previous years 1,168.86 690.82 466.74 319.36 233.48
Profit of Merged Entities
Balance carried to Balance sheet 1,925.78 1,168.86 687.23 466.74 319.36

Notes: Profit Brought Forward from Previous years in financial year 2008 - 2009 is increased by Rs. 3.59
million due to transitional provision of A.S. 15

16
 SUMMARY CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES, AS RESTATED

(All Figures in Rupee Millions)

Particulars As At
March March March March March
31, 2010 31, 2009 31, 2008 31, 2007 31, 2006

ASSETS :
Tangible Assets
Gross Block 1,716.10 1,349.72 1,131.86 910.92 568.66
Less: Depreciation Reserve 577.41 443.91 341.09 227.48 149.16
Net Block (1 ) 1,138.69 905.81 790.77 683.44 419.50
Intangible Assets*
Gross Block 6,189.64 6,143.55 5,098.65 4,561.03 1,856.55
Less: Amortisation Reserve 2,722.94 2,143.89 1,566.47 1,184.96 427.04
Net Block (2) 3,466.70 3,999.66 3,532.18 3,376.07 1,429.51
Add : Capital Work in Progress (3) 8,144.25 3,730.22 1,293.30 617.13 48.17
Total ( 1 + 2 + 3) (A) 12,749.64 8,635.69 5,616.25 4,676.64 1,897.18

INVESTMENTS ( B ) 1,487.39 910.95 716.54 662.32 755.29

CURRENT ASSETS, LOANS &
ADVANCES:
Inventories** 1,963.90 670.02 905.47 588.59 297.21
Sundry Debtors 1,820.18 349.50 333.68 226.85 466.35
Cash & Bank Balances 845.46 691.83 993.77 1,389.87 473.39
Loans and advances 2,224.10 1,349.22 674.85 490.98 526.51
Total ( C ) 6,853.64 3,060.57 2,907.77 2,696.29 1,763.46

TOTAL ASSETS (A + B +C) 21,090.67 12,607.21 9,240.56 8,035.25 4,415.93

LIABILITIES AND PROVISIONS:

Unsecured loans 1,543.42 262.22 202.17 190.29 888.06
Secured Loans 9,677.57 6,963.79 4,918.61 4,185.30 1,569.76
Deferred Tax Liability 30.08 18.39 12.84 31.85 26.81
Minority Interest 813.33 237.49 162.35 126.04 56.32
Current liabilities & provisions :
Current liabilities 3,932.13 1,429.37 718.40 569.95 384.18
Provisions - Staff Unencashed Leave 7.33 5.14 5.30 5.88 2.28
Provisions for taxation 463.63 218.01 107.67 52.37 17.02
Total (D) 16,467.49 9,134.41 6,127.34 5,161.70 2,944.43
NET WORTH
Represented by:
Share capital 581.30 587.25 587.25 224.21 211.40
Share Application Money - 49.82 0.10 0.00 0.00
Share Premium on Dilution of Subsidiary 415.49 - - - -
Shareholding
Share premium (Net of Share Issue 1,359.41 1,379.63 1,435.60 1,858.90 856.01
Expenses)
Preference Share redemption Reserve 166.54 159.33 141.62 176.39 211.25

17
 Particulars As At
March March March March March
31, 2010 31, 2009 31, 2008 31, 2007 31, 2006
Profit and loss account 2,100.44 1,296.77 948.65 614.09 192.84
Less: Preliminary / share issue expenses - - - 0.04 0.00
not written off
Total (E) 4,623.18 3,472.81 3,113.22 2,873.55 1,471.50

TOTAL LIABILITIES 21,090.67 12,607.21 9,240.56 8,035.25 4,415.93

(D + E)

Notes:
In the financial year 2007-2008 balance of Profit and loss Account increased by Rs. 3.71 Millions due to effect of transitional
provision of A.S. 15
*Includes Goodwill arising on consolidation aggregating to Rs. 6.30 Millions
**Includes Development Rights for Commercial Units of Rs. 146.51 Millions (F.Y. 2008-09 Rs.144.50 Millions) and also refer note
no.1 (c) of Principles of Consolidation

18
 SUMMARY CONSOLIDATED STATEMENT OF PROFITS AND LOSSES, AS RESTATED

(All Figures in Rupee Millions)

Particulars Year Ended
March March March March March
31, 2010 31, 2009 31, 2008 31, 2007 31, 2006
INCOME:
Turnover
- Construction Revenue 5,526.76 2,930.55 1,376.92 2,229.00 1,165.26
- Sales 775.59 808.58 677.83 480.18 247.38
- Toll Income – BOT 1,653.35 1,444.56 1,172.93 976.31 358.30
- Toll Income – Contract - - - 345.40 20.42
Total Turnover 7,955.70 5,183.69 3,227.68 4,030.89 1,791.36
Other Income 186.35 149.92 175.69 158.80 66.85
TOTAL INCOME 8,142.05 5,333.61 3,403.37 4,189.69 1,858.21
EXPENDITURE :
Contract / O & M Expenses* 4,836.43 2,647.32 1,198.01 2,050.84 965.37
Cost of Material Sold 585.40 581.56 525.22 373.89 221.90
Toll Expenses – Contract - - - 316.88 17.92
Staff Expenses 213.32 158.80 129.39 112.18 65.86
Administrative Expenses 178.03 155.80 141.74 122.48 68.18
Finance Costs 490.38 646.22 473.97 451.64 212.24
Depreciation 151.84 119.31 102.68 79.04 61.44
Amortisation 509.32 525.44 429.23 420.74 181.49
**TOTAL EXPENDITURE 6,964.72 4,834.45 3,000.24 3,927.69 1,794.40
Profit before tax, prior period items and 1,177.33 499.16 403.13 262.00 63.81
Adjustments
Provision for taxation :
Current Tax (Net) 306.82 108.00 53.52 23.64 15.90
Deferred Tax 11.69 5.55 (19.01) (6.72) 14.98
Fringe Benefit Tax - 2.59 3.47 1.88 2.11
Profit before prior period items and 858.82 383.02 365.15 243.20 30.82
Adjustments
ADJUSTMENT (see Annexure IV )
ADJUSTMENTS (see Note 1 of Annexure IV) - - - (1.54) 0.67
Current Tax Impact of Adjustments - - - 0.49 (0.50)
Net Profit Before Minority Interest 858.82 383.02 365.15 244.25 30.65
Profit/Loss Transferred to Minority Interest 55.15 34.88 34.31 1.87 (11.94)
Net Profit attributable to Shareholders 803.67 348.14 330.83 242.38 42.59
Profit Brought Forward from Previous years 1,296.77 948.63 614.09 192.84 150.25
Profit of Merged Entities - - - - -
Profit Brought Forward from Previous years of - - - 178.87 -
subsidiaries added
Balance carried to Balance sheet 2,100.44 1,296.77 944.93 614.09 192.84

Notes:
* Profit Brought Forward from Previous years in financial year 2008 - 2009 is increased by Rs. 3.71 Millions due to transitional
provision of A.S. 15
** Net of all expenditure transferred to capital work in progress

19
 THE ISSUE

Issue of Equity Shares Rs. 2,250 million

Employee Reservation Portion Rs. 11.25 million

Therefore

Net Issue to the Public Rs. 2,238.75 million

Of which

A) Qualified Institutional Buyers (QIB) portion# At least Rs. 1,343.25 million

Of which
Available for allocation to Mutual Rs. 47.01 million
Funds only
Balance for all QIBs including Rs. 1,296.24 million
Mutual Funds
B) Non-Institutional Portion* Not less than Rs. 223.87 million
C) Retail Portion* Not less than Rs. 671.62 million
Pre and post Issue Equity Shares
Equity Shares outstanding prior to the Issue 45,691,702 Equity Shares
Equity Shares outstanding after the Issue 52,636,146 Equity Shares

Use of Issue Proceeds by the Company See the section entitled “Objects of the Issue” on
page 51 of this Prospectus for information about the
use of the Issue Proceeds.

Allocation to all categories, except Anchor Investor Portion, if any, has been made on a proportionate basis.
#
The Company may allocate up to 30% of the QIB Portion to Anchor Investors on a discretionary basis. One-third of the Anchor
Investor Portion shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or
above the price at which allocation is being done to other Anchor Investors. For further details, please see the section entitled “Issue
Procedure” on page 415 of this Prospectus. The Company has allocated 1,243,750 Equity Shares to Anchor Investors in the Issue.

* Under subscription, if any, in any category, except in QIB portion, would be allowed to be met with spill over from any other
category or combination of categories at the discretion of the Company, in consultation with the BRLMs, the CBRLM and the
Designated Stock Exchange. Under subscription, if any, in the Employee Reservation Portion will be added back to the Net Issue
Portion, at the discretion of the BRLMs, the CBRLM and the Company. In case of under subscription in the Net Issue, spill over to the
extent of under subscription shall be permitted from the Employee Reservation Portion subject to the Net Issue constituting 10% of the
post Issue capital of the Company. If at least 60% of the Net Issue cannot be allocated to QIBs, the entire application money shall be
refunded.

20
 GENERAL INFORMATION

Registered Office of the Company

Ashoka Buildcon Limited

Survey No. 861, Ashoka House
Ashoka Marg, Vadala
Nashik, Maharashtra - 422 011
Tel No: (91 253) 3011705
Fax: (91 253) 2422704
Registration No: U45200MH1993PLC071970
Website: www.ashokabuildcon.com

Address of the ROC

We are registered with the RoC situated at Everest 5th Floor, 100, Marine Drive, Mumbai 400 002.

Board of Directors of the Company

Our Board of Directors consists of:

Name Designation
Ashok M. Katariya Chairman
Satish D. Parakh Managing Director
Sunil B. Raisoni Whole Time Director
Shyam Sundar S. G. Non – Executive Director
Michael Pinto Independent Director
Milap R. Bhansali Independent Director
Anant D. Narain Independent Director
Sharad D. Abhyankar Independent Director

For further details of our Directors, see section entitled “Our Management” on page 160 of this Prospectus.

Company Secretary and Compliance Officer

Manoj A. Kulkarni is the Company Secretary and Compliance Officer of the Company. His contact details
are as follows:

Manoj A. Kulkarni
Survey No. 861, Ashoka House
Ashoka Marg, Vadala
Nashik, Maharashtra - 422 011
Tel No: (91 253) 3011943
Fax: (91 253) 2422704
Email: investors@ashokabuildcon.com

Investors can contact the Compliance Officer or the Registrar in case of any pre-Issue or post-Issue
related problems such as non-receipt of letters of allocation, credit of allotted Equity Shares in the
respective beneficiary account and refund orders.

Auditors to the Company

M/s. M. P. Chitale & Co.
Hamam House, Ambalal Doshi Marg,
Fort, Mumbai – 400 001
Tel: (91 22) 2265 1186
Fax: (91 22) 2265 5334

21
Email: ashu01@mpchitale.com

Book Running Lead Managers

Enam Securities Private Limited IDFC Capital Limited

801/ 802, Dalamal Towers Naman Chambers, C-32,

Nariman Point G-Block, Bandra- Kurla Complex,
Mumbai 400 021 Bandra (East),
India Mumbai – 400 051
Tel: (91 22) 6638 1800 Tel: (91 22) 6622 2600
Fax: (91 22) 2284 6824 Fax: (91 22) 6622 2501
E-mail: abl@enam.com E-mail: ashoka.ipo@idfc.com
Investor Grievance Email: complaints@enam.com Investor Grievance Email: complaints@idfc.com
Website: www.enam.com Website: www.idfccapital.com
Contact Person: Pranav Mahajani Contact Person: Hiren Raipancholia
SEBI Reg. No. INM000006856 SEBI Reg. No. INM000011336

Co-Book Running Lead Manager

Motilal Oswal Investment Advisors Private Limited

113/114, Bajaj Bhawan, 11th Floor

Nariman Point
Mumbai 400 021
Tel: (91 22) 3980 4380
Fax: (91 22) 3980 4315
E-mail: ashoka.ipo@motilaloswal.com
Investor Grievance E-mail: moiaplredressal@motilaloswal.com
Website: www.motilaloswal.com
Contact Person: Rupesh Khant
SEBI Registration No: INM000011005

Syndicate Members

Motilal Oswal Securities Limited

2nd Floor, Queens Mansion
44, A.K. Naik Marg
Behind Khadi Gram Udyog, Fort
Mumbai 400 001.
Tel: (91 22) 3027 8090
Fax: (91 22) 3027 8061
Email: santosh.patil@motilaloswal.com
Contact Person: Mr. Santosh Patil
Website: www.motilaloswal.com
SEBI Registration Number: INB011041257 (BSE Cash segment)/INB231041238 (NSE Cash segment)

Sharekhan Limited
A-206, Phoenix House
Phoenix Mills Compound
Senapati Bapat Marg
Lower Parel
Mumbai 400 013
Telephone: (91 22) 6748 2000
Facsimile: (91 22) 2498 2626

22
E-mail: pankajp@sharekhan.com
Website: www.sharekhan.com
Contact Person: Mr. Pankaj Patel
SEBI registration number: INB011073351 (NSE) / INB231073330 (BSE)

Legal Advisors to the Issue

Domestic Legal Counsel to the Issue

Amarchand Mangaldas & Suresh A. Shroff & Co.

5th Floor, Peninsula Chambers
Peninsula Corporate Park
Ganpatrao Kadam Marg, Lower Parel
Mumbai 400 013
India
Tel: (91 22) 2496 4455
Fax: (91 22) 2496 3666

International Legal Counsel to the Underwriters

Dorsey & Whitney LLP

Suite 1500
50 South Sixth Street
Minneapolis, MN
55402-1498
USA
Tel: 1 (612) 340-2600
Fax: 1 (612) 340-2868

Registrar to the Issue

Link Intime India Private Limited

C-13, Pannalal Silk Mills Compound
LBS Marg, Bhandup (W)
Mumbai 400 078
Tel: (91 22) 2596 0320
Fax: (91 22) 2596 0329
E-mail: abl.ipo@linkintimespectrum.co.in
Website: www.linkintimespectrum.co.in
Contact Person: Sachin Achar
SEBI Reg. No. INM000003761

Bankers to the Issue and Escrow Collection Banks

Axis Bank Limited

Universal Insurance Building
Sir P M Road, Fort
Mumbai 400 001
Tel: (91 22) 6610 7353/7265
Fax: (91 22) 6610 7293
E-mail: rajesh.khandelwal@axisbank.com
Website: www.axisbank.com
Contact Person: Mr. Rajesh Khandelwal/Rajesh Waghmare
SEBI Registration Number: INB100000017

23
State Bank of India
Videocon Heritage, Ground Floor
Charanjit Rai Marg
Mumbai 400 001
Tel: (91 22) 2209 4925
Fax: (91 22) 2209 4921
E-mail: nib.11777@sbi.co.in
Wesite: www.statebankofindia.com
Contact Person: Mrs. Surekha Shinde
SEBI Registration Number: INB10000003

Standard Chartered Bank

270 D.N. Road,
Fort, Mumbai- 400 001
Tel: (91 22) 2206 4417
Fax: (91 22) 2209 6067
E-mail: joseph.george@sc.com
Wesite: www.standardchartered.co.in
Contact Person: Joseph George
SEBI Registration Number: INB10000885

ICICI Bank
Capital Markets Division
30, Mumbai Samachar Marg
Mumbai 400 001
Tel: (91 22) 6631 0311
Fax: (91 22) 2261 1138
E-mail: viral.bharani@icicibank.com
Wesite: www.icicibank.com
Contact Person: Mrs. Viral Bharani
SEBI Registration Number: INB10000004

Self Certified Syndicate Banks

The list of banks that have been notified by SEBI to act as SCSB for the ASBA process are provided on
www.sebi.gov.in and for details on designated branches of SCSB collecting as per Bid cum Application
Form, please refer to the abovementioned link.

Bankers to the Company

Axis Bank Corporation Bank

Janmabhoomi Bhavan, Bharat House,
Janmabhoomi Marg, 1st Floor 104, Bombay Samachar Marg, Fort
Fort Mumbai 400 023
Mumbai 400 001, India
India Tel: (91 22) 22677088
Tel: (91 22) 66107208 Fax: (91 22) 22675309
Fax: (91 22) 66107241

Bank of India Federal Bank

28, S.V. Road Nariman Bhavan
1st Floor, M.D.I. Building 12/227, Nariman Point, 1st Floor
Andheri (West) Mumbai 400 021
Mumbai 400 058 India
India Tel: (91 22) 22812335

24
 Bankers to the Company

Tel: (91 22) 26718565 Fax: (91 22) 22675309

Fax: (91 22) 26247655

Bank of Maharashtra Indian Bank

Shalimar, Nashik 422 001 Sir P. M. Road, Fort,
Maharashtra Mumbai 400 001
India India
Tel: (91 253) 2502951 Tel: (91 22) 22661847
Fax: (91 253) 2596935 Fax: (91 22) 22660769

Canara Bank State Bank of India

Deccan Gymkhana NGN Vaidya Marg, Fort
Pune 411 005 Mumbai 400 023
India India
Tel: (91 20) 25533712 Tel: (91 22) 22664100
Fax: (91 20) 25533712 Fax: (91 22) 22665915

Monitoring Agency

There is no requirement to appoint a Monitoring Agency for the Issue as the Issue size is less than Rs.
5,000 million (Rs. 500 crores).

Statement of inter se allocation of Responsibilities for the Issue

The following table sets forth the distribution of responsibility and co-ordination for various activities
amongst the BRLMs and the CBRLM:

Sr. No. Activity Responsibility Coordinator

1. Capital structuring with the relative components and formalities Enam; Motilal Enam
such as composition of debt and equity, type of instruments, etc. Oswal
2. Due diligence of the Company’s operations/ management/ Enam; Motilal Enam
business plans/ legal etc. Drafting and design of the Red Herring Oswal
Prospectus and of statutory advertisement including memorandum
containing salient features of the Prospectus. The BRLMs shall
ensure compliance with stipulated requirements and completion of
prescribed formalities with the Stock Exchanges, the RoC and
SEBI including finalisation of the Prospectus and RoC filing of
the same.
3. Drafting and approval of all publicity material other than statutory Enam; Motilal Enam
advertisement as mentioned in (2) above including corporate Oswal
advertisement, brochure, corporate films, etc.
4. Appointment of intermediaries Lawyers, Printers, Advertising Enam; Motilal Enam
Agency Oswal
5. Appointment of Registrar and Bankers to the Issue Enam; Motilal Enam
Oswal
6. International institutional marketing of the Issue, which will cover, Enam; IDFC IDFC
inter alia: Capital; Capital
x Preparing road show presentation and frequently asked Motilal Oswal
questions;
x Finalising the list and division of investors for one to one
meetings; and
x Finalising road show schedule and investor meeting
schedules;

25
Sr. No. Activity Responsibility Coordinator
7. Domestic institutional marketing of the Issue, which will cover, Enam; IDFC IDFC
inter alia: Capital; Capital
x Finalising the list and division of investors for one to one Motilal Oswal
meetings; and
8. Non-Institutional & Retail Marketing of the Issue, which will Enam; IDFC Enam
cover, inter alia: Capital;
x Formulating marketing strategies, preparation of publicity Motilal Oswal
budget;
x Finalising media and PR strategy;
x Finalising centres for holding conferences for brokers etc.;
x Finalising collection centres; and
x Follow-up on distribution of publicity and Issue material
including form, prospectus and deciding on the quantum of
the Issue material.
9. Managing the book, co-ordination with the Stock Exchanges for Enam; Motilal Enam
book building software, bidding terminals and mock trading, and Oswal
finalisation of pricing and institutional allocation in consultation
with the Company.
10. The Post-Bidding activities including management of escrow Enam; Motilal Enam
accounts, follow-up with bankers to the issue, co-ordination non- Oswal
institutional allocation, intimation of allocation and dispatch of
refunds to Bidders etc. The post Issue activities will involve
essential follow up steps, which include the finalisation of listing
of instruments and dispatch of certificates and demat delivery of
shares, with the various agencies connected with the work such as
the Register to the Issue and Bankers to the Issue and the bank
handling refund business. The merchant banker shall be
responsible for ensuring that these agencies fulfill their functions
and enable it to discharge this responsibility through suitable
agreements with the Company.

Credit Rating

As this is an offer of Equity Shares, there is no credit rating for this Issue.

IPO Grading

This Issue has been graded by CRISIL Limited as CRISIL IPO Grade 4/5 indicating that the fundamentals
of the IPO are above average relative to the other listed equity securities in India through its letter dated
December 14, 2009 (revalidated through letter dated August 9, 2010). For details in relation to the report of
CRISIL Limited furnishing rationale for the IPO grading, please refer to Annexure on page 469 of this
Prospectus. Attention of the Investors is drawn to the disclaimer of CRISIL Limited on page 469 of the
report of CRISIL Limited.

Experts

Except for the report of CRISIL in respect of the IPO grading of this Issue (a copy of which report has been
annexed to this Prospectus as Appendix ‘A’) and the auditor’s report of M/s. M. P. Chitale & Co (Reg. No.-
101851W), statutory auditor of the Company, the Company has not obtained any expert opinions.

The Company has received consent from the Auditors for naming them as an expert in this Prospectus.

26
Project Appraisal

Company has not sought appraisal for any of its projects from any bank, financial institution or agency.

Trustees

As this is an issue of Equity Shares, the appointment of Trustees is not required.

Book Building Process

Book building, with reference to the Issue, refers to the process of collection of Bids on the basis of the Red
Herring Prospectus within the Price Band. The Issue Price is finalized after the Bid/ Issue Closing Date.
The principal parties involved in the Book Building Process are:

1. The Company;

2. BRLMs;

3. CBRLM;

4. Syndicate Member who is an intermediary registered with SEBI or registered as brokers with
BSE/NSE and eligible to act as Underwriters. The Syndicate Member is appointed by the BRLMs
and the CBRLM;

5. SCSBs;

6. Escrow Collection Bank(s); and

7. Registrar to the Issue.

The Company is undertaking the Issue in accordance with the first proviso to Rule 19(2)(b)(ii) of the
Securities Contracts Regulations Rules, 1957 (“SCRR”). This Issue is being made through the 100% Book
Building Process wherein at least 60% of the Net Issue shall be allocated on a proportionate basis to
Qualified Institutional Buyers (QIB) Bidders. 5% of the QIB Portion (excluding Anchor Investor Portion)
shall be available for allocation on a proportionate basis to Mutual Funds only. The remainder shall be
available for allocation on a proportionate basis to QIBs including the Mutual Funds subject to valid bids
being received at or above the Issue Price. If at least 60% of the Net Issue cannot be allocated to QIBs, then
the entire application money will be refunded forthwith. Further, not less than 10% of the Net Issue shall be
available for allocation on a proportionate basis to Non Institutional Bidders and not less than 30% of the
Net Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to
valid Bids being received at or above the Issue Price. The Issue might be for more than 25% of the post
Issue capital, based on the Issue Price being determined. We will comply with the SEBI Regulations and
any other ancillary directions issued by SEBI for this Issue. In this regard, we have appointed the BRLMs
and the CBRLM to manage the Issue and to procure subscriptions to the Issue.

QIB Bidders are not allowed to withdraw their Bid(s) after the Bid /Issue Closing Date. For further details,
please see the section entitled “Terms of the Issue” on page 407 of this Prospectus.

The process of Book Building under SEBI Regulations is subject to change from time to time and
investors are advised to make their own judgment about investment through this process prior to
making a Bid or Application in the Issue.

Illustration of Book Building Process and Price Discovery Process (Investors should note that this
example is solely for illustrative purposes and is not specific to the Issue; it also excludes bidding by
Anchor Investors or under the ASBA Process.)

27
Bidders can bid at any price within the price band. For instance, assume a price band of Rs. 20 to Rs. 24 per
share, offer size of 3,000 equity shares and receipt of five bids from bidders out which one bidder has bid
for 500 shares at Rs. 24 per share while another has bid for 1,500 shares at Rs. 22 per share. A graphical
representation of consolidated demand and price would be made available at the bidding centers during the
bidding period. The illustrative book given below shows the demand for the shares of the Company at
various prices and is collated from bids from various investors.

Bid Quantity Bid Price (Rs.) Cumulative Quantity Subscription

500 24 500 16.67%
1,000 23 1,500 50.00%
1,500 22 3,000 100.00%
2,000 21 5,000 166.67%
2,500 20 7,500 250.00%

The price discovery is a function of demand at various prices. The highest price at which the Company is
able to offer the desired number of shares is the price at which the book cuts off i.e. Rs. 22 in the above
example. The Company in consultation with the BRLMs and the CBRLM will finalise the Issue Price at or
below such cut off price, i.e. at or below Rs. 22. All bids at or above the Issue Price and cut off bids are
valid bids and are considered for allocation in the respective categories.

Steps to be taken by the Bidders for bidding:

x Check eligibility for bidding (please refer to the section entitled “Issue Procedure - Who
Can Bid” and “Issue Procedure– Who can Bid?” on page 416, of this Prospectus);

x Ensure that you have an active demat account and the demat account details are correctly
mentioned in the Bid cum Application Form;

x Ensure that you have mentioned your PAN and attached copies of your PAN card to the
Bid Cum Application Form. In accordance with the SEBI Regulations, the PAN would be
the sole identification number for participants transacting in the securities market,
irrespective of the amount of transaction (see section entitled “Issue Procedure” on page
415 of this Prospectus;

x Ensure that the Bid cum Application Form or the ASBA Bid cum Application Form is
duly completed as per instructions given in this Prospectus and in the Bid Cum
Application Form or the ASBA Bid cum Application Form; and

x Bids by QIBs will only have to be submitted to the BRLMs and the CBRLM.

Withdrawal of the Issue

The Company, in consultation with the BRLMs and the CBRLM, reserves the right not to proceed with the
Issue anytime after the Bid/Issue Opening Date but before the Allotment of Equity Shares. In such an event
the Company would issue a public notice in the newspapers, in which the pre-Issue advertisements were
published, within two days of the Bid/ Issue Closing Date, providing reasons for not proceeding with the
Issue. The Company shall also inform the same to Stock Exchanges on which the Equity Shares are
proposed to be listed.

Any further issue of Equity Shares by the Company shall be in compliance with applicable laws.

Bid/ Issue Programme

BID/ISSUE OPENED ON SEPTEMBER 24, 2010

BID/ISSUE CLOSED ON SEPTEMBER 28, 2010

28
Bids and any revision in Bids shall be accepted only between 10 a.m. and 3 p.m. (Indian Standard Time)
during the Bid/ Issue Period as mentioned above at the bidding centres mentioned on the Bid cum
Application Form. On the Bid / Issue Closing Date, the Bids (excluding the ASBA Bidders) and any
revision in Bids shall be accepted only between 10 a.m. and 3 p.m. (Indian Standard Time) and uploaded
until (i) 4.00 p.m. in case of Bids by QIB Bidders, Non-Institutional Bidders and Eligible Employees
bidding under the Employee Reservation Portion, and (ii) until 5.00 p.m. or such extended time as
permitted by the NSE and the BSE, in case of Bids by Retail Individual Bidders. It is clarified that the Bids
not uploaded in the book would be rejected. Bids by the ASBA Bidders shall be uploaded by the SCSB in
the electronic system to be provided by the NSE and the BSE.

In case of discrepancy in the data entered in the electronic book vis-à-vis the data contained in the physical
Bid form, for a particular Bidder, the details as per the physical form of the Bidder may be taken as the
final data for the purpose of allotment. In case of discrepancy in the data entered in the electronic book vis-
à-vis the data contained in the physical or electronic Bid cum Application Form, for a particular ASBA
Bidder, the Registrar to the Issue shall ask for rectified data from the SCSB.

Due to limitation of time available for uploading the Bids on the Bid/ Issue Closing Date, the Bidders are
advised to submit their Bids one day prior to the Bid/ Issue Closing Date and, in any case, no later than the
times mentioned above on the Bid/ Issue Closing Date. All times mentioned in this Prospectus are Indian
Standard Time. Bidders are cautioned that in the event a large number of Bids are received on the Bid/
Issue Closing Date, as is typically experienced in public offerings, some Bids may not get uploaded due to
lack of sufficient time. Such Bids that cannot be uploaded will not be considered for allocation under the
Issue. Bids will be accepted only on Business Days, i.e., Monday to Friday (excluding any public holiday).

On the Bid/ Issue Closing Date, extension of time will be granted by the Stock Exchanges only for
uploading the Bids received by Retail Individual Bidders after taking into account the total number of Bids
received up to the closure of time period for acceptance of Bid cum Application Forms as stated herein and
reported by the BRLMs and the CBRLM to the Stock Exchange within half an hour of such closure.

The Company, in consultation with the BRLMs and the CBRLM, reserves the right to revise the Price Band
during the Bid/ Issue Period, provided that the Cap Price shall be less than or equal to 120% of the Floor
Price and the Floor Price shall not be less than the face value of the Equity Shares. The revision in Price
Band shall not exceed 20% on the either side i.e. the floor price can move up or down to the extent of 20%
of the floor price disclosed at least two (2) days prior to the Bid/ Issue Opening Date and the Cap Price will
be revised accordingly.

In case of revision of the Price Band, the Issue Period will be extended for three additional working
days after revision of Price Band subject to the Bidding / Issue Period not exceeding 10 days. Any
revision in the Price Band and the revised Bid/ Issue Period, if applicable, will be widely
disseminated by notification to the Stock Exchanges, by issuing a press release and also by indicating
the changes on the web site of the BRLMs and the CBRLM and at the terminals of the Syndicate.

Underwriting Agreement

After the determination of the Issue Price but prior to filing of the Prospectus with the RoC, we will enter
into an Underwriting Agreement with the Underwriters for the Equity Shares proposed to be offered
through this Issue. It is proposed that pursuant to the terms of the Underwriting Agreement, the BRLMs
and the CBRLM shall be responsible for bringing in the amount devolved in the event that their respective
Syndicate Members do not fulfill their underwriting obligations. The underwriting shall be to the extent of
the Bids uploaded by the Underwriters including through its Syndicate/Sub Syndicate. The Underwriting
Agreement is dated September 29, 2010. Pursuant to the terms of the Underwriting Agreement, the
obligations of the Underwriters are several and are subject to certain conditions specified therein.

29
The Underwriters have indicated their intention to underwrite the following number of Equity
Shares:

(This portion has been intentionally left blank and will be filled in before the filing of the Prospectus with
the RoC)

Name and Address of the Indicative Number of Equity Shares to Amount Underwritten
Underwriter be Underwritten (Rs. in Million)
Enam Securities Private 2,303,241 746.25
Limited, 801/ 802, Dalamal
Towers, Nariman Point, Mumbai
400 021
IDFC Capital Limited, Naman 2,303,141 746.22
Chambers, C-32, G-Block,
Bandra- Kurla Complex, Bandra
(East), Mumbai 400 051
Motilal Oswal Investment 2,303,241 746.25
Advisors Private Limited, 2nd
Floor, Palm Spring Centre, Palm
Court Complex, New Link Road,
Mumbai 400 064
Sharekhan Limited, A-206, 100 0.032
Phoenix House, Phoenix Mills
Compound, Senapati Bapat Marg,
Lower Parel, Mumbai 400 013
Motilal Oswal Securities 100 0.032
Limited, 2nd Floor, Palm Spring
Centre, Palm Court Complex, New
Link Road, Mumbai 400 064

The above mentioned amount is indicative underwriting and this would be finalized after the pricing and
actual allocation.

In the opinion of our Board of Directors (based on a certificate given by the Underwriters), the resources of
the above mentioned Underwriters are sufficient to enable them to discharge their respective underwriting
obligations in full. The above-mentioned Underwriters are registered with SEBI under Section 12(1) of the
SEBI Act or registered as brokers with the Stock Exchange(s). Our Board of Directors, at its meeting held
on September 29, 2010, has accepted and entered into the Underwriting Agreement mentioned above on
behalf of the Company.

Allocation among Underwriters may not necessarily be in proportion to their underwriting commitments.
Notwithstanding the above table, the BRLMs, the CBRLM and the Syndicate Member shall be responsible
for ensuring payment with respect to Equity Shares allocated to investors procured by them. In the event of
any default in payment, the respective Underwriter, in addition to other obligations defined in the
underwriting agreement, will also be required to procure subscriptions for/subscribe to Equity Shares to the
extent of the defaulted amount.

30
 CAPITAL STRUCTURE

The Equity Share capital of the Company as at the date of filing of this Prospectus is set forth below:

Aggregate Value at Aggregate Value at

Face Value (in Rs. Issue Price (in Rs.
million) million)
A. Authorized Capital* 811.00
64,000,000 Equity Shares 640.00
1,710,000 0% Redeemable Non-Cumulative Preference 171.00
Shares of Rs. 100 each
B. Issued, Subscribed Capital and Paid-Up Capital
before the Issue 587.25
45,691,702 Equity Shares of Rs. 10 each fully paid-up 456.91
before the Issue
1,243,850 0% Redeemable Non-Cumulative Preference 124.38
Shares of Rs. 100 each fully paid up
C. Present Issue in terms of this Prospectus
6,944,444 Equity Shares ** 69.44 2,250
D. Employee Reservation Portion 0.35 11.25
Up to 34,722 Equity Shares
Therefore
E. Net Issue to the Public 69.10 2,238.75
6,909,722 Equity Shares
F. Equity Capital after the Issue 526.36
52,636,146 Equity Shares
G. Share Premium Account
Before the Issue 1,375.69
After the Issue 3,556.25

* Details in relation to the change in authorized capital of the Company:

Date Details of change

July 8, 1997 Increase in authorised capital from Rs. 0.5 million to Rs.5 million.
September 2, 1997 Increase in authorised capital from Rs. 5 million to Rs. 10 million.
February 29, 2000 Increase in authorised capital from Rs. 10 million to Rs. 30 million.
October 5, 2000 Increase in authorised capital from Rs. 30 million to Rs. 65 million.
March 17, 2005 Increase in authorised capital from Rs. 65 million to Rs. 215 million.
March 28, 2006 Increase in authorised capital from Rs. 215 million to Rs. 365 million.
December 15, 2007 Increase in authorised capital from Rs. 365 million to Rs. 811 million.

** The Issue in terms of this Prospectus has been authorized pursuant to a resolution passed at the EGM
dated September 7, 2009 and August 30, 2010.

31
Notes to Capital Structure

1.

(a). Equity Share Capital History of the Company

Date of No. of Face Issue Nature of Name of the Allottees Cumulative Cumulative Cumulative
Allotment Equity Value Price Payment of no. of Paid-Up Equity Share
Shares (Rs.) (Rs.) Consideration Equity Equity Premium (Rs.)
Issued Shares Capital (Rs.)
May 13, 70 10 10 Cash Ashok Motilal Katariya, 70 700 Nil
1993 Ramanlal Bansilal Parakh,
Narendra Ramswarup
Shakadwipi, Satish
Dhondulal Parakh, Sunil
Bansilal Raisoni, Vimal
Ramswarup Shakadwipi and
Sushil Ramanlal Parakh as
subscribers to Memorandum
of Association
June 12, 130 10 10 Cash Ashok Motilal Katariya, 200 2,000 Nil
1993 Ramanlal Bansilal Parakh,
Narendra Ramswarup
Shakadwipi, Vimal
Ramswarup Shakadwipi and
Sushil Ramanlal Parakh
March 24, 49,800 10 10 Cash Ashok Motilal Katariya, 50,000 500,000 Nil
1995 Ashok Motilal Katariya
(HUF), Asha Ashok
Katariya, Ashish A.
Katariya, Shweta Ashok
Katariya, Padmabai
Fakirchand Pofaliya, Lilabai
Kantilal Hiran, Satish
Dhondulal Parakh, Shobha
Satish Parakh, Aditya Satish

32
 Date of No. of Face Issue Nature of Name of the Allottees Cumulative Cumulative Cumulative
Allotment Equity Value Price Payment of no. of Paid-Up Equity Share
Shares (Rs.) (Rs.) Consideration Equity Equity Premium (Rs.)
Issued Shares Capital (Rs.)
Parakh. Snehal Satish
Parakh, Ramanlal Bansilal
Parakh, Aruna Ramanlal
Parakh, Milind Ramanlal
Parakh, Narendra
Ramswarup Shakadwipi,
Vimal Narendra Shakadwipi,
Nishant Narendra
Shakadwipi, Komal
Narendra Shakadwipi, Sunil
Bansilal Raisoni, Rajendra
Bansilal Raisoni, Pravin
Bansilal Raisoni and Pradeep
Bansilal Raisoni
March 2, 350,000 10 10 Cash Ashoka Builders (Nasik) 400,000 4,000,000 Nil
2000 Private Limited, Ashoka
Vastu Private Limited and
Ashoka Construwell Private
Limited.
June 27, 3,965,784 10 10 - Allotted pursuant to the 4,326,784 43,267,840 1,045,490,000
2005 Scheme of Amalgamation*
June 30, 261,480 10 10 Cash Ashok Motilal Katariya 4,588,264 45,882,640 1,045,492,851
2006 (HUF), Asha Ashok
Katariya, Ashish A.
Katariya, Shweta Ashok
Katariya, Astha Ashish
Katariya, Satish Dhondulal
Parakh, Ashoka Bitucon
International Private Limited,
A.P. Equipments & Co.
through Partners and
Shubham Developers
through its members.

33
 Date of No. of Face Issue Nature of Name of the Allottees Cumulative Cumulative Cumulative
Allotment Equity Value Price Payment of no. of Paid-Up Equity Share
Shares (Rs.) (Rs.) Consideration Equity Equity Premium (Rs.)
Issued Shares Capital (Rs.)
August 1, 1,019,617 10 980.76 Cash Allotted in accordance with 5,607,881 56,078,810 2,035,296,250
2006 the terms of share
subscription cum
shareholders agreement,
dated July 11, 2006, entered
into with IDFC Infrastructure
Fund 2 (“Shareholder
Agreement”)
December 919,505 10 10 Cash Ashok Motilal Katariya, 6,527,386 65,273,860 1,848,087,826**
15, 2007 Ashish A. Katariya, Astha
Ashish Katariya, Satish
Dhondulal Parakh, Shobha
Satish Parakh, Snehal Satish
Parakh, Sunil Bansilal
Raisoni and Sanjay
Prabhakar Londhe in
accordance with the
Shareholder Agreement and
the addendum cum
amendment thereto dated
December 10, 2007
December 39,164,316 10 10 Other than cash Bonus in the ratio of 1:6 45,691,702 456,917,020 1,456,444,666***
24, 2007
* 39,000 Equity Shares out of 3,965,784 Equity Shares allotted in accordance with the order of the Bombay High Court pursuant to a Scheme of Amalgamation dated December 3, 2004 have
been cancelled.
**Rs.176,392,217 was transferred to the preference shares redemption reserve on March 31, 2007 and Rs. 10,816,207 was transferred to the preference shares redemption reserve on
September 30, 2007.
*** Out of the share premium account aggregating Rs. 1,858,904,033 as on March 31, 2007, the Company capitalised Rs. 391,643,160 to issue 39,164,316 bonus shares of face value Rs. 10
each to the shareholders of the Company on December 24, 2007.

34
(b). Equity Shares allotted for consideration other than cash

Date of No. of Face Issue Nature of Reasons

Allotment Equity Value Price Payment of for
Shares (Rs.) (Rs.) Consideration Allotment
Issued
June 27, 3,965,784* 10 10 - Allotted pursuant to the Scheme of
2005 Amalgamation to Ashok Motilal Katariya, Satish
Dhondulal Parakh, Asha Ashok Katariya, Sunil
Bansilal Raisoni, Ashoka Builders (Nasik)
Private Limited, Ashoka Buildwell & Developers
Private Limited, Ashish A. Katariya, Shweta
Ashok Katariya, Bansilal Balchand Raisoni,
Pradeep Bansilal Raisoni, Pravin Bansilal
Raisoni, Rajendra Bansilal Raisoni, Vimalabai
Bansilal Raisoni, Surekha Pradeep Raisoni,
Hemlata Pravin Raisoni, Sapana Rajendra
Raisoni, Kalpana Sunil Raisoni, Kunal Pradeep
Raisoni, Piyush Pravin Raisoni, Sagar Sunil
Raisoni, Ashok Motilal Katariya (HUF), Shobha
Satish Parakh, Snehal Satish Parakh, Aditya
Satish Parakh, Satish Dhondulal Parakh (HUF),
Padambai Fakirchand Pofaliya, Leelabai Kantilal
Hiran, Gulabbai Dhondulal Parakh, Beena
Ratanlal Lalwani, Narendra Ramswarup
Shakadwipi, Rajdeep Buildcon Private Limited,
Vimal Narendra Shakadwipi and Ashoka Bitucon
Exim Private Limited**
December 39,164,316 10 10 Other than cash Bonus in the ratio of 1:6
24, 2007
*
39,000 Equity Shares out of 3,965,784 Equity Shares allotted in accordance with the order of the Bombay High Court
pursuant to the Scheme of Amalgamation have been cancelled.
**
For more details of the Scheme of Amalgamation, please see the section entitled “History and Certain Corporate Matters
- Scheme of Amalgamation” on page 137 of this Prospectus.

(c). Preference Share Capital History of the Company

Date of No. of Cumulative Face Issue Nature of Reasons for Cumulative

Allotment Preference No. of Value Price Payment of Allotment Paid-Up
Shares Preference (Rs.) (Rs.) Consideration Preference
Shares Share
Capital
(Rs.)
November 53,500* 53,500 100 100 Cash Allotted to Ashoka 5,350,000
25, 1997 Buildwell &
Developers Private
Limited, Ashoka
Construwell Private
Limited and Ashoka
Builders (Nasik)
Private Limited.
March 3, 106,500* 160,000 100 100 Cash Allotted to Ashoka 16,000,000
2000 Buildwell &
Developers Private
Limited, Ashoka
Vastu Private
Limited, Ashoka
Construwell Private
Limited and Ashoka
Builders (Nasik)
Private Limited.
November 450,000* 610,000 100 100 Cash Allotted to Ashoka 61,000,000
11, 2000 Builders (Nasik)
Private Limited and
Ashoka Vastu
Private Limited.

35
 Date of No. of Cumulative Face Issue Nature of Reasons for Cumulative
Allotment Preference No. of Value Price Payment of Allotment Paid-Up
Shares Preference (Rs.) (Rs.) Consideration Preference
Shares Share
Capital
(Rs.)
December - 313,000** N.A. N.A. N.A. 297,000 preference 31,300,000
3, 2004 shares were
cancelled pursuant
to the Scheme of
Amalgamation
June 27, 1,368,320*** 1,681,320 100 100 Other than Issued pursuant to 168,132,000
2005 cash the Scheme of
Amalgamation to
Ashok Motilal
Katariya, Asha
Ashok Katariya,
Sunil Bansilal
Raisoni, Ashoka
Builders (Nasik)
Private Limited,
Ashish A. Katariya,
Shweta Ashok
Katariya, Bansilal
Balchand Raisoni,
Pradeep Bansilal
Raisoni, Pravin
Bansilal Raisoni,
Rajendra Bansilal
Raisoni, Vimalabai
Bansilal Raisoni,
Surekha Pradeep
Raisoni, Hemlata
Pravin Raisoni,
Sapana Rajendra
Raisoni, Kalpana
Sunil Raisoni,
Kunal Pradeep
Raisoni, Piyush
Pravin Raisoni,
Sagar Sunil Raisoni,
Ashok Motilal
Katariya (HUF),
Ashok C Luniya,
Asrar Investments
Limited, Paresh C
Mehta, Piyush C
Mehta,
Kantilal Rupchand
Bora and Geeta
Kantilal Bora.

* The Company issued 610,000 6% redeemable, non-cumulative, non-convertible preference shares in three tranches. The
preference shares shall be redeemed on the date following 10 years from the date of allotment or any other earlier date
which the Board of Directors may deem fit subject to the to the approval of the preference shareholders and approval of
any other institution/bank if required, to be obtained in the general meeting of the Company. A redemption premium of
100% of the face value of the preference shares will be paid at the time of the redemption subject to the permission of the
Reserve Bank of India and any other applicable permission. The terms of the preference shares were modified at an EGM
held on March 18, 2003 such that, the preference shares do not carry any dividend and the preference shares will be paid
a redemption premium of Rs. 175 per share on the date of their maturity. The Company redeemed (i) 28,500 preference
shares on July 6, 2007; and (ii) 59,500 preference shares on March 2, 2010. The RBI through letter no.
FE.CO.FID/24989/10.78.000/2006-07 dated May 9, 2007 approved the redemption of such preference shares. Present
outstanding preference shares are 1,243,850 of Rs. 100/- each fully paid.

** 297,000 preference shares held by Ashoka Vastu Private Limited were cancelled in accordance with the Scheme of
Amalgamation such that the total number of preference shares was reduced to 313,000.

***The Company issued 1,368,320 6% redeemable, non-cumulative, non-convertible preference shares. The terms of the
preference shares were modified at an EGM held on March 28, 2006 such that the preference shares will not carry any

36
 divided with effect from April 1, 2005 and will carry a redemption premium of 150% of the face value of the preference
shares. The redemption schedule for these preference shares is as follows:
x 273,500 preference shares shall be redeemed in September 2011;
x 488,350 preference shares shall be redeemed in December 2011;and
x 257,000 preference shares shall be redeemed in October 2012.

2. History of Equity Share Capital held by the Promoters

Date of No. of Cumulative Face Issue / Nature of Nature of

Allotment Equity No. of Value Acquisition Consideration Transaction
/ Transfer Shares Equity (Rs.) Price (Rs.)
Issued Shares
Ashok M. Katariya
May 15, 10 10 10 10 Cash Allotted to
1993 subscribers to
Memorandum of
Association
July 6, 45 55 10 10 Cash Purchase
1993
March 24, 3,000 3,055 10 10 Cash Purchase
1995
March 4, 35,000 38,055 10 10 Cash Purchase
2000
June 27, 594,661 632,716 10 - - In accordance
2005 with the Scheme
of
Amalgamation*
October (173,200) 459,516 10 - - Gift
15, 2005
October (25,590) 433,926 10 - - Gift
15, 2005
October (7,961) 425,965 10 - - Gift
15, 2005
December 130,000 555,965 10 10 Cash Allotment
15, 2007
December 3,335,790 3,891,755 10 - - Bonus Issue
24, 2007
May 25, 338,030 4,229,785 10 5.16 Cash Purchase
2009
May 25, 21,175 4,250,960 10 1.43 Cash Purchase
2009
Satish D. Parakh
May 15, 10 10 10 10 Cash Allotted to
1993 subscribers to
Memorandum of
Association
March 24, 125 135 10 10 Cash Purchase
1995
September (1) 134 10 10 Cash Transfer
21, 2997
March 4, 20,000 20,134 10 10 Cash Purchase
2000
November 1 20,135 10 10 Cash Purchase
26, 2001
June 27, 165,120 185,255 10 - - In accordance
2005 with the Scheme

37
 Date of No. of Cumulative Face Issue / Nature of Nature of
Allotment Equity No. of Value Acquisition Consideration Transaction
/ Transfer Shares Equity (Rs.) Price (Rs.)
Issued Shares
of
Amalgamation*
June 30, 106,380 291,635 10 10 Cash Allotment
2006
December 210,195 501,830 10 10 Cash Allotment
15, 2007
December 3,010,980 3,512,810 10 - - Bonus Issue in
24, 2007 the ratio 1:6
May 25, 276,570 3,789,380 10 5.16 Cash Purchase
2009
May 25, 17,325 3,806,705 10 1.43 Cash Purchase
2009
May 25, 122,850 3,929,555 10 1.43 Cash Purchase
2009
Ashish A. Katariya
March 24, 4,500 4,500 10 10 Cash Allotment
1995
March 4, 17,525 22,025 10 10 Cash Transfer/
2000 Purchase
June 27, 224,450 246,475 10 - - In accordance
2005 with the Scheme
of Scheme of
Amalgamation*
October 173,200 419,675 10 - - Gift
15, 2005
May 20, 51 419,726 10 19.61 Cash Purchase
2006
June 30, 15,100 434,826 10 10 Cash Allotment
2006
December 130,000 564,826 10 10 Cash Allotment
15, 2007
December 3,388,956 3,953,782 10 10 - Bonus Issue in
24, 2007 the ratio 1:6
May 25, 150,150 4,103,932 10 1.43 Cash Purchase
2009
Aditya S. Parakh
March 24, 2,000 2,000 10 10 Cash Allotment
1995
March 4, 5,000 7,000 10 10 Cash Transfer /
2000 purchase
June 27, 164,800 171,800 10 - - In accordance
2005 with the Scheme
of
Amalgamation*
May 20, 7,5190 246,990 10 - - Gift
2006
December 1,481,940 1,728,930 10 - - Bonus Issue in
24, 2007 the ratio 1:6
*For details please refer to section “Scheme of Amalgamation” in the “History and Certain Corporate Matters” chapter
on page 137 of this Prospectus.

38
3. Details of transactions in Equity Shares by the Directors, Promoters and Promoter Group
entities during six months preceding the filing of the Red Herring Prospectus with SEBI

Details of transactions in Equity Shares undertaken by Directors/ Promoters during six months
preceding the filing of the Red Herring Prospectus with SEBI:

Sr. Name of the Director/ Date of the No. of Transaction Nature of

No. Promoter Transaction Equity Price (Rs.) Transaction
Shares
Promoters and Directors
1. Ashok M. Katariya May 25, 2009 338,030 5.16 Purchase
2. Satish D. Parakh May 25, 2009 276,750 5.16 Purchase
3. Ashok M. Katariya May 25, 2009 21,175 1.43 Purchase
4. Satish D. Parakh May 25, 2009 17,325 1.43 Purchase
5. Satish D. Parakh May 25, 2009 122,850 1.43 Purchase
Promoters
1. Ashish A. Katariya May 25, 2009 150,150 1.43 Purchase

4. Details of transactions in Preference Shares by the Promoters and Promoter Group

Companies

No Preference Shares have been sold or purchased by the Promoter and the Promoter Group
Companies, during the period of six months preceding the date on which the Red Herring
Prospectus is filed with SEBI.

5. Promoter Contribution and Lock-in

(a) Details of Equity Shares Locked-in

The Promoters’ shall contribute Equity Shares in the Issue constituting not less than 20% of the
post-Issue capital, which shall be locked in for a period of three years from the date of Allotment
in the Issue. The Equity Shares constituting Promoters’ contribution are eligible therefor in terms
of the SEBI Regulations.

The details of the Equity Shares held by Promoters, which are locked in for a period of three years
from the date of allotment in the Issue are given below:

Sr. Name of No. of Date of Face Issue/ Nature of % of

No. the Equity Transfer/ Value Acquisition allotment post-
Promoter Shares Allotment (Rs.) Price per Issue
Equity Share paid-up
(Rs.) capital
1. Ashok M. 3,278,021 December 10 Nil Bonus 6.23
Katariya 24, 2007 Issue
2. Satish D. 2,836,542 December 10 Nil Bonus 5.39
Parakh 24, 2007 Issue
3. Ashish A. 3,164,643 December 10 Nil Bonus 6.01
Katariya 24, 2007 Issue
4. Aditya S. 1,248,024 December 10 Nil Bonus 2.37
Parakh 24, 2007 Issue
Total 10,527,230 - - - - 20.00

In addition to 20% of the post-Issue shareholding of the Company held by the Promoters and
locked in for three years as specified above, the entire pre-Issue share capital of the Company will
be locked in for a period of one year from the date of Allotment in this Issue. However, 7,137,319

39
 Equity Shares held by IDFC PE II as on the date of this Prospectus shall not be subject to any
lock-in as IDFC PE II is a venture capital fund and they have been holding the said Equity Shares
for a period of more than one year prior to the date of this Prospectus.

Any Equity Shares allotted to Anchor Investors in the Anchor Investor Portion shall be locked-in
for a period of 30 days from the date of Allotment of Equity Shares in the Issue.

(b) Other requirements in respect of lock-in

The Equity Shares held by the Promoters may be transferred to any other Promoter or any other
person of the Promoter Group or to a new promoter or persons in control of the Company, subject
to continuation of the lock-in in the hands of the transferees for the remaining period and
compliance with the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997,
as applicable.

The Equity Shares held by persons other than the Promoters prior to the Issue may be transferred
to any other person holding the Equity Shares which are locked-in along with the Equity Shares
proposed to be transferred, subject to continuation of the lock-in in the hands of the transferees for
the remaining period and compliance with the SEBI (Substantial Acquisition of Shares and
Takeovers) Regulations, 1997, as applicable.

The Equity Shares held by the Promoters which are locked-in for a period of three years from the
date of Allotment in the Issue can be pledged with any scheduled commercial bank or public
financial institution as collateral security for loans granted by such bank or financial institution,
provided that the pledge of the Equity Shares can be created when the loan has been granted by
such bank or financial institution for financing one or more of the objects of the Issue and pledge
of Equity Shares is one of the terms of sanction of the loan.

The Equity Shares held by the Promoters which are locked-in for a period of one year from the
date of Allotment in the Issue can be pledged with any scheduled commercial bank or public
financial institution as collateral security for loans granted by such bank or financial institution,
provided that pledge of Equity Shares is one of the terms of sanction of the loan.

6. Shareholding Pattern of the Company

The shareholding pattern of the Company before and after the Issue is as under:

Categor Category of No. of Pre-Issue Post-Issue Shares Pledged or

y code shareholder shareholde Total no. Shareholdin Total no. of Shareholdi otherwise
rs of Equity g Equity ng encumbered
Shares percentage Shares percentage No. of As a
Equity percentag
Shares e
(A) Shareholding of
Promoter and
Promoter
Group
(1) Indian
(a) Individuals/
Hindu
Undivided
Family
(i) Ashok Motilal - 4,250,960 9.30 4,250,960 8.08 - -
Katariya
(ii) Ashish A. - 4,103,932 8.98 4,103,932 7.80 - -
Katariya
(iii) Astha Ashish - 3,039,757 6.65 3,039,757 5.78 - -
Katariya
(iv) Asha Ashok - 2,635,080 5.77 2,635,080 5.01 291,650 0.55
Katariya

40
Categor Category of No. of Pre-Issue Post-Issue Shares Pledged or
y code shareholder shareholde Total no. Shareholdin Total no. of Shareholdi otherwise
rs of Equity g Equity ng encumbered
Shares percentage Shares percentage No. of As a
Equity percentag
Shares e
(v) Ashok Motilal - 2,060,030 4.51 2,060,030 3.91 55,800 0.11
Katariya (HUF)
(vi) Ashish A. - 3,651,862 7.99 3,651,862 6.94 - -
Katariya (HUF)
(vii) Shweta Ashok - 425,000 0.93 425,000 0.81 24,800 0.05
Katariya
(viii) Ayush Ashish - 637,873 1.40 637,873 1.21 - -
Katariya (U/G
Astha A.
Katariya)
(ix) Satish - 3,929,555 8.60 3,929,555 7.47 - -
Dhondulal
Parakh
(x) Shobha Satish - 3,510,850 7.68 3,510,850 6.67 158,221 0.30
Parakh
(xi) Aditya Satish - 1,728,930 3.78 1,728,930 3.28 - -
Parakh
(xii) Satish - 3,593,525 7.86 3,593,525 6.83 - -
Dhondulal
Parakh (HUF)
(xiii) Snehal Satish - 350,000 0.77 350,000 0.66 - -
Parakh
(xiv) Sunil Bansilal - 1,294,497 2.83 1,294,497 2.46 219,039 0.42
Raisoni
(xv) Kalpana Sunil - 615,990 1.35 615,990 1.17 75,000 0.14
Raisoni
(xvi) Sagar Sunil - 499,100 1.09 499,100 0.95 - -
Raisoni
(xvii) Narendra - 542,388 1.19 542,388 1.03 - -
Ramswarup
Shakadwipi
(xviii) Sanjay - 98,763 0.22 98,763 0.19 - -
Prabhakar
Londhe
(xix) Vimal Narendra - 15,925 0.03 15,925 0.03 - -
Shakadwipi
(xx) Nishant - 10,500 0.02 10,500 0.02 - -
Narendra
Shakadwipi
(xxi) Shubham - 682,716 1.49 682,716 1.30 - -
Rajendra
Raisoni (U/g of
Mr.
RajendraRaison
i)
(xxii) Khushbu - 60,240 0.13 60,240 0.11 - -
Rajendra
Raisoni
(xxiii) Tulsi Rajendra - 60,240 0.13 60,240 0.11 - -
Raisoni
Sub-Total 23 37,797,71 82.73 37,797,713 71.82 824,510 1.57
(A)(1)(a) 3
(b) Central - - - - - -
Government/
State
Government(s)
(c) Bodies
Corporate
(i) Ashoka - 17,990 17,990 0.03 1,550 0.003
Buildwell &
Developers
Pvt.Ltd.

41
Categor Category of No. of Pre-Issue Post-Issue Shares Pledged or
y code shareholder shareholde Total no. Shareholdin Total no. of Shareholdi otherwise
rs of Equity g Equity ng encumbered
Shares percentage Shares percentage No. of As a
Equity percentag
Shares e
(ii) Ashoka - 7,140 7,140 0.01
Builders
(Nasik) Private
Limited
Sub-Total 2 25,130 0.05 25,130 0.04 1,550 0.003
(A)(1)(c)
(d) Financial - - - - - -
Institutions/
Banks
(e) Any Other –
AOP
(specify)
(i) Ashoka 1 731,540 1.60 731,540 1.39 731,540 1.39
Township
Sub-Total 26 38,554,38 84.38 38,554,383 73.25 1,557,600 2.96
(A)(1) 3
(2) Foreign
(a) Individuals - - - - - - -
(Non-Resident
Individuals/
Foreign
Individuals)
(b) Bodies - - - - - - -
Corporate
(c) Institutions - - - - - - -
(d) Any Other - - - - - - -
(specify)
Sub-Total 26 38,554,38 84.38 38,554,383 73.25 1,557,600 2.96
(A)(2) 3
Total 26 38,554,38 84.38 38,554,383 73.25 1,557,600 2.96
Shareholding of 3
Promoter and
Promoter
Group (A)=
(A)(1)+(A)(2)
(B) Public
shareholding
(1) Institutions
(a) Mutual Funds/ - - - - - - -
UTI
(b) Financial
Institutions/
Banks
(i) IDFC PE II 1 7,137,319 15.62 7,137,319 13.56 - -
(c) Central - - - - - - -
Government/
State
Government(s)
(d) Venture Capital - - - - - - -
Funds
(e) Insurance - - - - - - -
Companies
(f) Foreign - - - - - - -
Institutional
Investors
(g) Foreign - - - - - - -
Venture Capital
Investors
(h) Any Other - - - - - - -
(specify)
Sub-Total 1 7,137,319 15.62 7,137,319 13.56 - -
(B)(1)

42
 Categor Category of No. of Pre-Issue Post-Issue Shares Pledged or
y code shareholder shareholde Total no. Shareholdin Total no. of Shareholdi otherwise
rs of Equity g Equity ng encumbered
Shares percentage Shares percentage No. of As a
Equity percentag
Shares e
(2) Non-
institutions
(a) Bodies - - - - - -
Corporate
(b) Individuals - - - - - - -
i. Individual
shareholders
holding
nominal
share capital
up to Rs.
0.1 million.
ii. Individual
shareholders
holding
nominal
share capital
in excess of
Rs. 0.1
million.
(c) Any Other - - - - - - -
(specify)
(d) Public - - - 69,44,444 13.19
shareholding
pursuant to the
Issue
Sub-Total - - - 69,44,444 13.19 - -
(B)(2)
Total Public 1 7,137,319 15.62 14,081,763 26.75
Shareholding
(B)=
(B)(1)+(B)(2)
Shares held by - - - - - - -
Custodians and
against which
Depository
Receipts have
been issued
TOTAL 27 45,691,70 100.00 52,636,146 100.00 1,557,600 2.96
(A)+(B) 2

7. Equity Shares held by top ten shareholders

The details of the top ten shareholders of the Company and the number of Equity Shares held by
them are as under:

(a) As on the date of the Prospectus and ten days prior to filing of this Prospectus:

Sr. Name of the shareholder No. of Equity Shares Percentage

No.
1. IDFC PE II 7,137,319 15.62
2. Ashok Motilal Katariya 4,250,960 9.30
3. Ashish A. Katariya 4,103,932 8.98
4. Satish Dhondulal Parakh 3,929,555 8.60
5. Ashish A. Katariya (HUF) 3,651,862 7.99
6. Satish Dhondulal Parakh (HUF) 3,593,525 7.86
7. Shobha Satish Parakh 3,510,850 7.68
8. Astha Ashish Katariya 3,039,757 6.65

43
 Sr. Name of the shareholder No. of Equity Shares Percentage
No.
9. Asha Ashok Katariya 2,635,080 5.77
10. Ashok Motilal Katariya (HUF) 2,060,030 4.51
TOTAL 37,912,870 82.96

(b) Two years prior to filing of this Prospectus:

Sr. Name of the shareholder No. of Equity Shares Percentage

No.
1. IDFC PE II 7,137,319 15.62
2. Ashoka Township 5,120,780 11.21
3. Ashish A. Katariya 3,953,782 8.65
4. Ashok M. Katariya 3,891,755 8.52
5. Satish D. Parakh 3,512,810 7.69
6. Shobha S. Parakh 3,510,850 7.68
7. Astha A. Katariya 3,039,757 6.65
8. Asha A. Katariya 2,635,080 5.77
9. Ashok M. Katariya (HUF) 2,060,030 4.51
10. Sunil B. Raisoni 1,977,213 4.33
TOTAL 36,839,376 80.63

8. Employee stock option scheme

Except for options granted under our employee stock option plan (“ESOP”), there are no
outstanding warrants, options or rights to convert debentures, loans or other instruments into the
Equity Shares.

We have an employee stock option scheme in force, which is applicable to all our Directors, and
employees:

ESOP scheme Outstanding Remarks

Options
Ashoka 660,830 The special resolution passed by the Company at its EGM
Buildcon dated December 15, 2007 approved the grant of up to
Limited 163,200 Equity Shares of the Company subject to any issue
Employee Stock of equity shares by way of bonus or rights issues. The
Option Scheme, Company made a bonus issue of 39,164,316 Equity Shares
2007 on December 24, 2007. Accordingly, upto 1,142,400
Equity Shares can be issued in respect of the options
granted in accordance with the ESOP Scheme.

(a) ESOP 2007

Particulars Details
Options granted 780,050

Exercise price of options Rs. 190 per option

Total options vested Nil
Options exercised Nil
Total number of equity shares that would arise as 660,830
a result of full exercise of options already
granted
Options forfeited/ lapsed/ cancelled 119,220

44
 Particulars Details
Variations in terms of options Loyalty Options:

Loyalty options are proposed to be granted to

employees for their past association and
performance during such period. A benefit
of 10% of “CTC” for each completed year of
service as on November 30, 2007 will be
considered while granting loyalty options.

The vesting of Loyalty Options is linked to

the continued association of the employee
with the Company and will therefore vest
based on the passage of time.

Growth Options:

Growth options are to be granted to those

employees who are either in the top or
middle management cadre. The number of
growth options would be based on the
“CTC” of the employees, along with their
performance ratings to be reviewed every
year by the Compensation Committee.

The vesting of Growth Options is linked to

the continued association of the employee
with the Company and individual
performance.
Money realised by exercise of options N.A.
Options outstanding (in force) 660,830
Person wise details of options granted to
i) Directors and senior managerial Please see Note 1 below
personnel
ii) Any other employee who received a Nil
grant in any one year of options
amounting to 5% or more of the options
granted during the year
iii) Identified employees who are granted Nil
options, during any one year equal to
exceeding 1% of the issued capital
(excluding outstanding warrants and
conversions) of the Company at the time
of grant
Fully diluted EPS on a pre-Issue basis As on March 31, 2010 – Rs. 16.33 (On a
unconsolidated basis)
As on March 31, 2010 – Rs. 17.34 (On a
consolidated basis)
Vesting schedule Loyalty Options
Time from date Percentage of Shares
of Grant* Vesting (%)**
12 months 0
24 months 0
36 months 60
48 months 20

45
 Particulars Details
60 months 20
Growth Options
Time from date Percentage of Shares
of Grant* Vesting (%)**
12 months 0
24 months 0
36 months 40
48 months 30
60 months 30
Lock-in Nil
Impact on profits of the last three years Nil
Where the company has calculated the employee N.A.
compensation cost using the intrinsic value of
the stock options, the difference between the
employee compensation cost so computed and
the employee compensation that shall have been
recognised if it had used the fair value of
options, shall be disclosed. The impact of this
difference on profits and on EPS of the company
shall also be disclosed.
Weighted average exercise prices and weighted N.A.
average fair values of options shall be disclosed
for options whose exercise price either equals or
exceeds or is less than the market price of the
stock.
A description of the method and significant N.A.
assumptions used during the year to estimate the
fair values of options, including the following
weighted average information:
(i) risk free interest rate;
(ii) expected life;
(iii) expected volatility;
(iv) expected dividend; and
(v) the price of the underlying share in market at
the time of option grant
The impact on profits and on the EPS of the last N.A.
three years if the company had followed policies
specified in clause 13 of the Securities and
Exchange Board of India (Employee Stock
Option Scheme and Employee Stock Purchase
Scheme) Guidelines, 1999 in respect of options
granted in the last three years
The intention of the holders of shares allotted on N.A.
exercise of options granted under ESOS or
allotted under ESPS, to sell their shares within
three (3) months after the date of listing of
shares in such IPO (aggregate number of shares
intended to be sold by option holders), if any,
has to be disclosed. In case of ESOS the same
shall also be disclosed regardless of whether the
shares arise out of options exercised before or
after the IPO
*
The vesting has been postponed to the later of the listing of shares or May 31, 2010 as per decision taken by the Board of
Directors at its meeting held on November 18, 2009. No equity shares have been issued under ESOP 2007 Scheme.
**The vesting has been re-scheduled for the employees as per decision by the Board of Directors at its meeting held on

46
June 21, 2010.

The Directors and senior managerial personnel of the Company have confirmed that they do not
intend to sell any Equity Shares arising from such options for three months after the listing of the
Equity Shares in this Issue.

Note 1: Details regarding options granted to our Directors and our key managerial employees are
set forth below:

Name of Total No. Type of options No. of Total No. of No. of

director/ Key of options granted under options options Equity
Managerial granted ESOP 2007 exercised outstanding Shares
Personnel under under under ESOP held
ESOP ESOP 2007
2007 2007
Sanjay P. 112,600 Growth Nil 112,600 98,763
Londhe Options: 67,200
(Executive
Director – non Loyalty
Board) Options: 45,400
Dilipbhai D. 13,900 Growth Nil 13,900 Nil
Kothari Options:10,820
(Executive
Director – non Loyalty
Board) Options: 3,080
Shrikant P. 18,960 Growth Nil 18,960 Nil
Shukla Options: 11,560
(Vice President
– Technical) Loyalty
Options: 7,400
Paresh C. 14,500 Growth Nil 14,500 Nil
Mehta Options: 11,610
(Vice President
– Finance and Loyalty
Accounts) Options: 2,890
Pradeep 9, 550 Growth Nil 9,550 Nil
Nayyar Options: 8,630
(General
Manager, Loyalty
Projects) Options: 920

Deepak H. 9,180 Growth Nil 9,180 Nil

Bhagat Options: 6,130
(Deputy
General Loyalty
Manager - Options: 3,050
Legal)
Suresh M. 9,120 Growth Nil 9,120 Nil
Wagh Options: 6,090
(Deputy
General Loyalty
Manager - Options: 3,030
Technical)
Peeyush Jain 8,613 Growth Nil 8,860 Nil

47
 Name of Total No. Type of options No. of Total No. of No. of
director/ Key of options granted under options options Equity
Managerial granted ESOP 2007 exercised outstanding Shares
Personnel under under under ESOP held
ESOP ESOP 2007
2007 2007
(Deputy Options: 7,760
General
Manager - Loyalty
Accounts) Options: 1,100
Manoj 2,120 Growth Nil 2,120 Nil
Kulkarni Options: 1,950
(Company
Secretary) Loyalty
Options: 170
Sandeep Bamb 7450 Growth Nil 7450 Nil
(Deputy Options: 5,970
General
Manager - Loyalty
Finance) Options: 1,480
Satish 5,640 Growth Nil 5,640 Nil
Chiplunkar Options: 4,030
(Deputy
General Loyalty
Manager – Options: 1,610
Projects)
Pravin 5,110 Growth Nil 5,110 Nil
Baviskar Options: 4,890
(Deputy
General Loyalty
Manager – Options: 220
Projects)
Prashant 4,080 Growth Nil 4,080 Nil
Kanade Options: 3,750
(Deputy
General Loyalty
Manager – Options: 330
Plant &
Machinery)
Anil S. Gandhi 98,260 Growth Nil 98,260 Nil
(Executive Options: 67,200
Director – non
Board) Loyalty
Options: 31,060

Rajendra C. 58,130 Growth Nil 58,130 Nil

Burad Options: 47,910
(Executive
Director – non Loyalty
Board) Options: 10,220

9. The Company, Promoters, Promoter Group, Directors, the BRLMs and the CBRLM have not
entered into any buy-back arrangements and/or safety net facility for the purchase of Equity
Shares from any person.

48
10. Except as stated in the section entitled “Our Management” on page 160 of this Prospectus, none of
our Directors or Key Managerial Personnel hold any Equity Shares in the Company.

11. The Company has not raised any bridge loan against the proceeds of the Issue. For details on use
of proceeds, see the section entitled “Objects of the Issue” on page 51 of this Prospectus.

12. At least 60% of the Net Issue shall be allocated to QIBs on a proportionate basis. 5% of the QIB
Portion (excluding Anchor Investor Portion) shall be available for allocation to Mutual Funds only
and the remaining QIB Portion shall be available for allocation to the QIB Bidders including
Mutual Funds subject to valid Bids being received at or above the Issue Price. Further, not less
than 10% of the Net Issue will be available for allocation on a proportionate basis to Non-
Institutional Bidders and not less than 30% of the Net Issue will be available for allocation to
Retail Individual Bidders, subject to valid Bids being received from them at or above the Issue
Price. The Issue might be more than 25% of the post Issue capital, based on the Issue price being
determined. Under-subscription, if any, in the Non-Institutional and Retail Individual categories
would be allowed to be met with spill over from any other category at the discretion of the
Company, the BRLMs and the CBRLM.

13. A total of up to 34,722 Equity Shares has been reserved for allocation to Eligible Employees,
subject to (i) valid Bids being received at or above the Issue Price; (ii) the maximum Bid in this
portion being Rs. 100,000 and (iii) the Equity Shares reserved for Eligible Employees of up to
0.5% of the Issue size not exceeding 5% of the post Issue paid-up capital. Only Eligible
Employees would be eligible to apply in this Issue under the Employee Reservation Portion, on a
competitive basis. Bid/ Application by Eligible Employees can be made also in the “Net Issue”
and such Bids shall not be treated as multiple Bids.

14. Under-subscription, if any, in the Employee Reservation Portion will be added back to the Net
Issue. In case of under-subscription in the Net Issue, spill-over to the extent of under-subscription
shall be permitted from the Employee Reservation Portion subject to the Net Issue being at least
10% of the post Issue capital. Under-subscription, if any, in any category, except the QIB Portion,
would be met with spill over from other categories at our discretion in consultation with the
BRLMs and the CBRLM.

15. An oversubscription to the extent of 10% of the Net Issue can be retained for the purposes of
rounding off to the nearer multiple of minimum allotment lot.

16. A Bidder cannot make a Bid for more than the number of Equity Shares offered in this Issue,
subject to the maximum limit of investment prescribed under relevant laws applicable to each
category of investor.

17. Except as stated above, there are no outstanding warrants, options or rights to convert debentures,
loans or other financial instruments into our Equity Shares.

18. There would be no further issue of capital whether by way of issue of bonus shares, preferential
allotment, and rights issue or in any other manner during the period commencing from submission
of the Red Herring Prospectus with SEBI until the Equity Shares offered hereby have been listed.

19. The Company presently does not have any intention or proposal to alter capital structure for a
period of six months commencing from the date of opening of this Issue, by way of split/
consolidation of the denomination of Equity Shares or further issue of Equity Shares (including
issue of securities convertible into or exchangeable, directly or indirectly for Equity Shares)
whether on a preferential basis or otherwise. However, during such period or at a later date, we
may issue Equity Shares pursuant to our employee stock option plan or issue equity shares or
securities linked to equity shares to finance an acquisition, merger or joint venture by us or as
consideration for such acquisition, merger or joint venture, or for regulatory compliance or such

49
 other scheme of arrangement if an opportunity of such nature is determined by our Board to be in
our interest.

20. The Company has not issued any Equity Shares out of revaluation reserves or for consideration
other than cash except as stated in the Equity Share Capital History table above.

21. The Equity Shares being offered in this Issue will be fully paid up at the time of Allotment.

22. There will be only one denomination of the Equity Shares of the Company unless otherwise
permitted by law and the Company shall comply with such disclosure and accounting norms as
may be specified by SEBI from time to time.

23. No person connected with the Issue shall offer any incentive, whether direct or indirect, in any
manner, whether in cash, kind, services or otherwise, to any Bidder.

24. The Equity Shares held by the Promoters are not subject to any pledge.

25. As of the date of this Prospectus, we had 27 members.

50
 OBJECTS OF THE ISSUE

The Company intends to utilise the Issue Proceeds, after deducting the underwriting and issue management
fees, selling commissions and other expenses associated with the Issue (the “Net Proceeds”) for the
following objects:

1. Investment in capital equipment;

2. To meet working capital requirements;

3. Prepayment/ repayment of project loans of the Company;

4. Funding certain Subsidiaries for prepayment/ repayment of their loans;

5. General corporate purposes; and

6. To achieve the benefits of listing our Equity Shares.

The details of the Net Proceeds are summarised in the table below:

Particulars Amount (In Rs. million)

Proceeds from the Issue 2,250
Issue related expenses 206
Net Proceeds* 2,044
*
To be finalised upon completion of the Issue.

The main objects and objects incidental and ancillary to the main objects set out in our Memorandum of
Association enable us to undertake our existing activities and the activities for which funds are being raised
by us through this Issue.

The Company may have to revise our expenditure and fund requirements as a result of variations in cost
estimates on account of variety of factors such as changes in design or configuration of the project,
incremental pre-operative expenses and external factors such as geological assessments which may not be
within the control of our management and may entail rescheduling and revising the planned expenditure
and funding requirement and increasing or decreasing the expenditure for a particular purpose from the
planned expenditure at the discretion of our management. In case of any surplus after utilization of the
proceeds from the Issue for the stated objects, we may use such surplus towards general corporate
purposes. In the event of a shortfall in raising the requisite capital from the proceeds of the Issue towards
meeting the objects of the Issue, the extent of the shortfall will be met by way of such means available to
the Company, including by way of incremental debt or cash available with us.

Means of Finance

The entire requirement of funds towards objects of the Issue, other than working capital requirements, will
be met from the Net Proceeds of the Issue. The working capital requirements will be met through the Net
Procceds (to the extent of Rs. 450 million), working capital demand loan and internal accruals.

Utilisation of the Issue Proceeds

Sr. Particulars Schedule of Utilisation (In Rs. million)

No. April 1, 2010 to April 1, 2011 to April 1, 2012 to Total
March 31, 2011 March 31, 2012 March 31, 2013
1. Investment in capital equipment 140.00 110.00 - 250.00
2. To meet working capital 450.00 - - 450.00
requirements

51
Sr. Particulars Schedule of Utilisation (In Rs. million)
No. April 1, 2010 to April 1, 2011 to April 1, 2012 to Total
March 31, 2011 March 31, 2012 March 31, 2013
3. Prepayment/ repayment of project 550.00 - - 550.00
loans of the Company
4. Funding certain Subsidiaries for 600.00 - - 600.00
prepayment/ repayment of their
loans
5. General Corporate Purposes 194 - - 194
6. Issue Expenses 206.00 - - 206.00
Total 2,140 110 - 2,250

1. Investment in Capital Equipment

We are required to make investments in capital equipment on a recurring basis due to the nature of
the industry we operate in. We intend to use Rs. 250.00 million from the Net Proceeds for the
purchase of capital equipment to meet the requirements of our various projects based on our order
book of projects as of May 31, 2010 and future requirements as estimated by the management.

The following table sets out the equipments that are currently under consideration for placement of
order:

Sr. Description Purchase Quantity Unit Cost* Total Amount Quotation obtained from
No. (In Rs. million) (In Rs. million)
Fiscal Fiscal Fiscal Fiscal
2010 2011 2010 2011
1. Excavator 4 - 4.85 19.39 0.00 Suyaan Infrastructure Private
Limited,A-6 NICE, Area-
Satpur,MIDC, Nashik 422007
2. JCB Backhoe 2 2 2.15 4.29 4.29 Suyaan Infrastructure Private
loader Limited,A-6 NICE, Area-
Satpur,MIDC, Nashik 422007
3. Wheel Loader 2 2 3.17 6.35 6.35 Suyaan Infrastructure Private
1.7 CUM Limited, A-6 NICE, Area-
Satpur,MIDC, Nashik 422007
4. Vibro Roller 4 - 2.12 8.46 0.00 Escorts Construction Equipment
Soil Limited, Plot No 219, Sector 58,
Compactor Ballbgarh 121004
5. Tandom 4 - 2.25 9.00 0.00 Escorts Construction Equipment
Roller Limited, Plot No 219, Sector 58,
Ballbgarh 121004
6. Hydra Crane 5 - 1.38 6.90 0.00 Escorts Construction Equipment
14 Limited, Plot No 219, Sector 58,
Ballbgarh 121004
7. D.G. 500 kva 3 - 2.69 8.06 0.00 Powerica Limited,
S 4 Sayadri House, MICO
Circle, Trimbak Road, Nashik
8. DG 380 KVA 1 - 1.91 1.91 0.00 Powerica Limited,
S 4 Sayadri House, MICO
Circle, Trimbak Road, Nashik
9. D.G. 125 kva 3 - 0.62 1.85 0.00 Powerica Limited,
S 4 Sayadri House, MICO
Circle, Trimbak Road, Nashik
10. D.G. 40 kva 6 - 0.37 2.21 0.00 Powerica Limited,
S 4 Sayadri House, MICO
Circle, Trimbak Road, Nashik
11. D.G. 15 kva 5 - 0.22 1.10 0.00 Powerica Limited,
S 4 Sayadri House, MICO
Circle, Trimbak Road, Nashik
12. DG 20 KVA 3 - 0.27 0.80 0.00 Powerica Limited,
S 4 Sayadri House, MICO
Circle, Trimbak Road, Nashik

52
Sr. Description Purchase Quantity Unit Cost* Total Amount Quotation obtained from
No. (In Rs. million) (In Rs. million)
Fiscal Fiscal Fiscal Fiscal
2010 2011 2010 2011
13. WMM Plant 1 - 3.10 3.10 0.00 Gujarat Apollo Industries
200 TPH Limited,
Apollo House, Near Mithakali
Circle, Navrangpura,
Ahmedabad
14. Hot Mix Plant 1 1 27.20 27.20 27.20 Gujarat Apollo Industries
200 TPH Limited
Apollo House, Near Mithakali
Circle, Navrangpura ,
Ahmedabad
15. Asphalt 09 - 1 9.99 0.00 9.99 Gujarat Apollo Industries
Mtr Paver Limited
Apollo House, Near Mithakali
Circle, Navrangpura ,
Ahmedabad
16. WMM Paver 9 - 1 3.15 0.00 3.15 Unipave Engineering Products,
Mtr Width 254/1, Surellia Estae, Vastral
Road, Amaralwadi, Ahmedabad
380026
17. Kerb Laying - 1 2.65 0.00 2.65 Macons Equipments,
Machine Plot No 37/c, Phase 1 GIDC
Estate, Vatva, Ahmedabad,
Gujarat 382445
18. Tractor 6 4 0.58 3.46 2.31 Tractor House,
Triganiya Corner, New Mumbai
Agra Road, Nashik
19. Tractor Trolly 6 4 0.10 0.57 0.38 Tractor House,
Triganiya Corner, New Mumbai
Agra Road, Nashik
20. Mobile Tower 1 - 2.76 2.76 0.00 Escorts Construction Equipment
Crane Limited, Plot No 219, Sector 58,
Ballbgarh 121004
21. Weigh Bridge 2 2 0.69 1.37 1.37 Eagle Weigh Instruments (I)
60 MT Private Limited 3rd Floor, N K
Y Tower,Ajni Square, Wardha
road, nagpur 440015
22. Compressor 2 2 0.79 1.58 1.58 Three S Entreprises,MS11-12,
amarjyoti palace lokmat Squre,
Wardha road, nagpur 440015
23. Diesel 2 1 0.83 1.65 0.83 Tata Motors Limited,Comeercial
Distribution Veh Business unit, 2 nd floor
Unit (Eicher sethi's city plaza, Gadkari
Chassis+Tank chowk, Old agra road, Nashik
Fab) 422010
24. Diesel 2 1 0.16 0.31 0.16 Spire Tanks & Vessels Private
Distribution Limited,Plot no F89 MIDC
Unit Tank Ambad Nashik 422010
Fab
25. 28 CUM 2 1 2.67 5.34 2.67 Tata Motors Limited,Comeercial
Tipper Veh Business unit, 2 nd floor
sethi's city plaza, Gadkari
chowk, Old agra road, Nashik
422010
26. 14 CUM 10 20 2.07 20.67 41.34 Tata Motors Limited,Comeercial
Tipper Veh Business unit, 2 nd floor
sethi's city plaza, Gadkari
chowk, Old agra road, Nashik
422010
27. Transit Mixer 0 9 2.79 0.00 25.11 Tata Motors Limited,Comeercial
6 CUM Veh Business unit, 2 nd floor
sethi's city plaza, Gadkari
chowk, Old agra road, Nashik
422010
28. Bitumen 1 1 1.69 1.69 1.69 Tata Motors Limited,Comeercial
Tanker (Tata Veh Business unit, 2 nd floor

53
 Sr. Description Purchase Quantity Unit Cost* Total Amount Quotation obtained from
No. (In Rs. million) (In Rs. million)
Fiscal Fiscal Fiscal Fiscal
2010 2011 2010 2011
Chassis sethi's city plaza, Gadkari
3118/52 ) chowk, Old agra road, Nashik
422010
29. Bitumen 1 1 0.39 0.39 0.39 Spire Tanks & Vessels Private
Tanker Tank Limited,Plot no F89 MIDC
fab fabrication Ambad Nashik 422010
30. FO Tanker 1 1 1.27 1.27 1.27 Tata Motors
(Tata 2516/48 Limited,Commercial Veh
) Business Unit, 2nd floor Sethi's
City Plaza, Gadkari Chowk, Old
Agra Road, Nashik 422010
31. FO Tanker 1 1 0.26 0.26 0.26 Spire Tanks & Vessels Private
tank fab Limited, Plot No. F89 MIDC
Ambad, Nashik 422010
32. Water Tanker 4 - 0.98 3.91 0.00 Tata Motors Limited,Comeercial
(tata 1613/42 Veh Business unit, 2nd floor,
chassis) Sethi's City Plaza, Gadkari
Chowk, Old Agra Road, Nashik
422010
33. Water Tanker 4 - 0.17 0.66 0.00 Spire Tanks & Vessels Private
tank fab Limited, Plot No. F89 MIDC
Ambad Nashik 422010
34. Trailer TATA 1 1 2.31 2.31 2.31 Tata Motors
LPS 3516 Limited,Commercial Veh
Business Unit, 2nd floor Sethi's
City Plaza, Gadkari Chowk, Old
Agra Road, Nashik 422010
35. Bitumen 2 - 0.83 1.65 0.00 Tata Motors Limited,
Bouzer (Tata Commercial Veh Business unit,
1109/42 cabin 2nd floor Sethi's City Plaza,
chassis ) Gadkari Chowk, Old Agra Road,
Nashik 422010
36. Bitumen 2 - 0.78 1.55 0.00 Gujarat Apollo Industries
Bouzer Limited
bitumen Apollo House, Near Mithakali
pressure Circle, Navrangpura ,
distrubutor Ahmedabad
ApolloATM
6000)
37. LMV 10 6 0.47 4.74 2.84 Tata Motors
Limited,Commercial Veh
Business unit, 2nd floor Sethi's
City Plaza, Gadkari Chowk, Old
Agra Road, Nashik 422010
Total 156.75 138.11 -
*
Subject to applicable taxes.

We purchase the equipments set out above on a regular basis in the course of our business. The
prices for the equipments proposed to be purchased as set out above are as per quotations received
from the respective suppliers in the months of June and July of 2010.

The estimated expenditure plan has not been appraised by an independent organization. In
addition, the Company’s capital expenditure plans are subject to a number of variables, including
possible cost overruns, construction delays or defects and changes in the management’s views of
the desirability of current plans, among others.

2. Working capital

Our business is working capital intensive and we avail majority of our working capital in the
ordinary course of our business from various banks. As of the date of this Prospectus, the
Company’s working capital facility consisted of an aggregate fund based limit of Rs. 1,500.00

54
million and an aggregate non-fund based limit of Rs. 9,000.00 million. As of May 31, 2010 the
aggregate amounts outstanding under the fund based and non-fun based working capital facilities
was Rs. 543.39 million and Rs. 3,586.90 million, respectively. For further details of the working
capital facility currently availed by us, please see the section entitled “Indebtedness” on page 202
of this Prospectus.

The Company requires additional working capital for executing its outstanding Order Book. As on
May 31, 2010, the unexecuted order book of the Company was Rs. 16,153.64 million. For further
details of the order book availed by us, please see the section entitled “Business” on page 91 of
this Prospectus.

Basis of estimation of working capital requirement

The details of the Company’s working capital requirements as at March 31, 2010 and funding of
the same are as set out in the table below:

Sr. Particulars As at March 31, 2010 (In Rs.

No. million)
I. Current Assets
1. Inventories 1,954.62
(a). Raw material 272.51
(b). Work-in-progress 1,682.11
(c). Finished goods 0.00
2. Sundry debtors (due within six months) 1,447.54
3. Cash and bank balances (net of overdraft against 573.14
deposit)
4. Investments (Short Term) 131.46
5. Loans and advances 2,070.92
Total current assets (A) 6,177.68
II. Current Liabilities
1. Creditors 2,073.55
2. Mobilisation Advance From Customer (Due in 513.43
1 year)
3. Other current liabilities 682.27
Total current liabilities (B) 3,269.26
III. Total Working Capital Requirements (A - B) 2,908.42
IV. Proposed Funding Pattern
x Working Capital funding from banks 159.07
x Short Term Loan from Banks / FIs 600.00
x Borrowing from group concern and internal 2,149.35
accruals

The details of the Company’s expected working capital requirements as at March 31, 2011 and
funding of the same are as set out in the table below:

Sr. Particulars As at March 31, 2011 (In Rs.

No. million)
I. Current Assets
1. Inventories 1,221.75
. Raw material 257.08
. Work-in-progress 964.66
. Finished goods 0.00
2. Sundry debtors 722.66
3. Cash and bank balances 1,747.00

55
 Sr. Particulars As at March 31, 2011 (In Rs.
No. million)
4. Investments (Short term) 500.00
5. Loans and advances 1,065.00
Total current assets (A) 5,256.41
II. Current Liabilities
1. Creditors 722.67
2. Mobilisation Advance From Customer (Due in 1 514.00
year)
3. Other current liabilities 496.71
Total current liabilities (B) 1,733.38
III. Total Working Capital Requirements (A - B) 3,523.03
IV. Proposed Funding Pattern
1. Working capital funding from banks* 1,500.00
2. Own funds 1,573.03
3. Part of the Issue proceeds 450.00
Total 3,523.03
*
The Company has entered into a working capital loan agreement dated September 28, 2007 with a consortium of banks
for an aggregate working capital demand loan amount of Rs. 1,000 million and aggregate non-fund based limit of Rs.
6,000 million. The provisions of this agreement has been amended by a second supplemental working capital consortium
agreement entered by parties on December 31, 2009 whereby the aggregate working capital demand loan amount has been
increased to Rs. 1,500 million and aggregate non-fund based limit of Rs.9,000 million. For further details, please see the
section entitled “Indebtedness” on page 202 of this Prospectus.

Assumptions for working capital requirements

Holding Levels

Sr. Particulars No. of days

No. For the year ended March 31, For the year ended March 31,
2010 2011
Inventories
. Raw material 11 8
. Work-in-
progress
66 31
. Finished
goods
Nil Nil
Sundry
debtors
49 20

3. Prepayment/ repayment of project loans availed by the Company

The Company has availed various loan facilities to finance its projects. As on July 31, 2010, the
principal amount outstanding under the project loan facilities availed by the Company aggregated
Rs. 1,054.98 million. The Company will utilise an amount of Rs. 550.00 million out of the Issue
proceeds to repay/ prepay certain of its outstanding loans. The details of the loans proposed to be
repaid/pre-paid out of Issue proceeds are provided in the table below:

56
 (In Rs. million)
Sr. Name Date of the Total Principal Repayment Interest Purpose for Amount
No. of the loan Amount amount Date/ (%) availing the proposed
lender facility (In Rs. outstanding schedule loan facility to be
agreement million) as on July repaid out
31, 2010 (In of the
Rs. million) Issue
proceeds
(In Rs.
million)
1. IDFC June 19, 380.00 95.81 Repayable in 7.71 Ahmednagar- 80.00
2003 102 Karmala
instalments Road Project
by December
2011.*
2. IDFC September 450.00 376.10 Repayable in 7.71 Ahmednagar- 340.00
21, 2005 105 Karmala
instalments Road Project
by December
2014*.
3. IDFC August 28, 670.00 583.07 Repayable in 10.03 Ahmednagar - 130.00
2007 102 equal Aurangabad
monthly Road Project
instalments
with the last
date of
payment
being March
15, 2017**.
TOTAL 1,500.00 1,054.98 - - - 550.00
* For any prepayment, the Company is required to give at least 30 days’ prior notice. Prepayment shall be subject to
prepayment penalty/ charges at such rate(s) as the lenders may stipulate on receipt of notice of intended prepayment.
However, no penalty will be payable if the prepayment is made after the expiry of 5 years from the date of last
disbursement of the loan.
** For any prepayment, the Company is required to give at least 21 days’ prior notice. Prepayment shall be subject to
prepayment penalty/ charges at such rate(s) as the lenders may stipulate on receipt of notice of intended prepayment.

4. Funding certain Subsidiaries for prepayment/ repayment of their loans

Certain subsidiaries of the Company have availed of loan facilities from a number of banks/
financial institutions and other lenders for the projects being undertaken by such subsidiaries.
These loan facilities aggregated to Rs. 1494.20 million as on July 31, 2010. As on July 31, 2010,
the principal amount outstanding from the subsidiaries under these facilities was Rs. 716.37
million. The Company will utilise an amount of Rs. 600 million out of the Issue proceeds to fund
the subsidiaries in order to enable such subsidiaries to repay project loans availed by them. The
details of the loan amounts proposed to be repaid out of Issue proceeds are provided in the table
below:

Sr. Name of the Date of Name of Total Principal Repayment Interest Purpos Amount
No Subsidiary the loan the Amount amount Date/ schedule (%) e for propose
. facility lender (In Rs. outstandin availing d to be
agreemen million) g as on the loan repaid
t July 31, facility out of
2010 (In the Issue
Rs. million) proceeds
(In Rs.
million)
1. Ashoka-DSC January Aggregate 352.60* 84 structured Katni 270.00
Katni 28, 2008 = 434.20* monthly Bypass
Bypass Road Bank of 234.20* 188.60 *
installments 1.25% Project
Private India commencing below
Limited from April BPLR
2008. subject
to a
minimu
m of
12.00%
p.a.**

57
 Sr. Name of the Date of Name of Total Principal Repayment Interest Purpos Amount
No Subsidiary the loan the Amount amount Date/ schedule (%) e for propose
. facility lender (In Rs. outstandin availing d to be
agreemen million) g as on the loan repaid
t July 31, facility out of
2010 (In the Issue
Rs. million) proceeds
(In Rs.
million)
The 200.00 164.00 1.25%
Federal below
Bank BPLR
Limited subject
to a
minimu
m of
12.00%
**
p.a.
2. Ashoka December Aggregate Aggregate Repayment BPLR Pune 330.00
Infrastructur 19, 2003 = 1,060.00 = 363.77 shall be in 72 subject Shirur
e Limited unequal to a Project
Bank of 230.00 81.71 installments minimu
India commencing m of
Limited from 12.00%
Oriental 207.00 66.11 November p.a.
Bank of 2005 or 6
Commer months from
ce the date of
Allahaba 173.00 60.87 commencemen
d Bank t of toll
Indian 173.00 57.36 collection by
Overseas the Company,
Bank whichever is
Limited earlier. ***
Indian 104.00 37.02
Bank
SIDBI 173.00 60.70
600.00
*
Including non fund base limit of Rs. 4.2 million.
**
In case of any default in repayment, the defaulted amount shall carry an additional penal rate of 2% p.a., compounded at
monthly rests, or at such other rate(s) as may be notified to the borrower by the lenders from time to time.
***
For any prepayment, the Company is required to give at least 30 days’ prior notice. Prepayment shall be subject to
prepayment penalty/ charges at such rate(s) as the lenders may stipulate on receipt of notice of intended prepayment.

Details of fund deployment

1. Ashoka-DSC Katni Bypass Road Private Limited

The details of utilisation of funds for Katni Bypass Project through project loans and share capital
as of July 31, 2010, as certified by Sanjay V. Goyal & Co., Chartered Accountants through
certificate dated August 7, 2010, are provided in the following table:

Sr. Particulars Amount (In Rs. million)

No.
1. EPC Cost 619.48
2. Preliminary expenses 24.72
3. Finance cost 4.79
4. Interest during construction period 56.16
Total 705.15

2. Ashoka Infrastructure Limited

The details of utilisation of funds for Pune Shirur Project through project loans, share capital and
premium of Rs. 392.59 million as at July 31, 2010, as certified by M P Chitale & Co., Chartered
Accountants through certificate dated August 10, 2010, is provided in the following table:

58
 Sr. Particulars Amount (In Rs. million)
No.
1. EPC Cost 1,387.21
2. Preliminary expenses 2.88
3. Finance cost 33.98
4. Interest during construction period 103.84
Total 1,527.91

5. General Corporate Purposes

As part of our on-going business strategy, we have bid for and we will continue to bid for various
infrastructure projects on a BOT or EPC basis and invest in SPVs. If and when our bids are
successful, to be able to undertake such projects, we would be required to form SPVs to facilitate
the execution of such projects. The civil engineering and construction industry is dynamic in
nature and the Company’s plan and strategy will depend on future additions in the Order Book, the
types of contracts and the schedule of execution of different contracts. We intend to deploy the
balance Proceeds from the Issue aggregating Rs. 194.00 million, towards General Corporate
Purposes, including but not restricted to meeting working capital requirements, strategic
initiatives, partnerships, joint ventures, meeting exigencies, which the Company in the ordinary
course of business may face, or any other purposes as approved by our Board.

The management, in accordance with the policies established by the Board, will have flexibility in
applying the portion of the net proceeds allocated for investments in SPVs for general corporate
purposes. Whilst, we expect to utilize the portion of Issue proceeds earmarked for general
corporate purposes in the manner provided above, the Board shall have flexibility in utilizing the
said portion of Issue proceeds for expenses related to general corporate purposes arising from
other new projects including those secured by us through a bidding process or through
negotiations.

6. Benefits of Listing

We believe that the listing of Equity Shares will inter alia, enhance our visibility and brand name
among our existing and potential customers.

Bridge Financing Facilities

The Company has not raised any bridge loans from any bank or financial institution as on the date of this
Prospectus, which are proposed to be repaid from the proceeds of this Issue.

Interim use of Net Proceeds

The Company, in accordance with the policies formulated by its Board from time to time, will have
flexibility in deploying the proceeds received from the Issue. The particular composition, timing and
schedule of deployment of the Net Proceeds will be determined by the Company based on the development
of the projects. Pending utilization of the proceeds out of the Issue for the purposes described above, the
Company intends to temporarily invest the funds in interest bearing liquid instruments including deposits
with banks and investments in money market mutual funds and other financial products and investment
grade interest bearing securities as may be approved by the Board.

Issue Expenses

The Issue related expenses consist of underwriting fees, selling commission, fees payable to the BRLMs
and the CBRLM to the Issue, legal counsels, Bankers to the Issue, Escrow Bankers and Registrars to the
Issue, printing and stationery expenses, advertising and marketing expenses and all other incidental and
miscellaneous expenses for listing the Equity Shares on the Stock Exchanges. We intend to use about Rs.

59
206.00 million towards these expenses for the Issue. All expenses with respect to the Issue will be borne
out of Issue proceeds. The break-up for the Issue expenses is as follows:

Activity Expenses* Percentage of the Percentage of the

(In Rs. million) Issue Expenses* Issue size*
Lead Management, Underwriting and 89 43.40% 3.97%
Selling Commission
Advertising and marketing expenses 49 23.90% 2.19%
Printing and stationery (including 19 9.10% 0.84%
courier, transportation charges)
Others (Registrar fees, legal fees, listing 47 22.80% 2.09%
costs etc)
Fees paid to rating agency 2 0.80% 0.07%
Total 206 100% 9.16%

Monitoring of Utilization of Funds

There is no requirement for a monitoring agency as the Issue size is less than Rs. 5,000 million. An Audit
Committee of our Board shall monitor the utilization of the proceeds of the Issue. We will disclose the
utilization of the proceeds of the Issue under a separate head along with details, if any in relation to all such
proceeds of the Issue that have not been utilised thereby also indicating investments, if any, of such
unutilized proceeds of the Issue in our Balance Sheet for the relevant Financial Years commencing from
Financial Year 2009-2010. In the event of any significant variation in the utilisation of Issue proceeds from
the objects disclosed in this section, the approval of the shareholders of the Company shall be duly sought.

Pursuant to Clause 49 of the Listing Agreement, the Company shall on a quarterly basis disclose to the
Audit Committee the uses and applications of the proceeds of the Issue. On an annual basis, the Company
shall prepare a statement of funds utilised for purposes other than those stated in this Prospectus and place
it before the Audit Committee. Such disclosure shall be made only until such time that all the proceeds of
the Issue have been utilised in full. The statement shall be certified by the statutory auditors of the
Company. Furthermore, in accordance with clause 43A of the Listing Agreement the Company shall
furnish to the stock exchanges on a quarterly basis, a statement including material deviations if any, in the
utilisation of the process of the Issue from the objects of the Issue as stated above. This information will
also be published newspapers simultaneously with the interim or annual financial results, after placing the
same before the Audit Committee.

No part of the Issue proceeds will be paid by the Company as consideration to the Promoters, the Directors,
the Company’s key management personnel or companies promoted by the Promoters except in the usual
course of business.

60
 BASIS FOR ISSUE PRICE

The Issue Price will be determined by us in consultation with the BRLMs on the basis of demand from the
investors for the Equity Shares through the Book Building Process. The face value is Rs. 10 and the Issue
Price is 29.7 times of the face value at the lower end of the Price Band and 32.4 of the face value at the
higher end of the Equity Shares.

QUALITATIVE FACTORS

x The Company is a well-established player in toll-based BOT projects in India with a proven ability
to partner with other well-established players in the industry.
x The Company has an integrated business model, including its own traffic study expertise and
proprietary toll collection audit system.
x The Company has a long standing history of timely execution of projects.
x The Company has a healthy order book position.
x The Company has an experienced management team and a well-trained employee base

For justifications of the qualitative factors please see the section entitled “Business - Our Strengths” on
page 95 of this Prospectus. Specific attention of the investors is drawn to the sections entitled “Risk
Factors” and “Financial Statements” on pages xii and 215 of this Prospectus.

QUANTITATIVE FACTORS

Information presented in this section is derived from our standalone restated financial statements prepared
in accordance with Indian GAAP.

(i) Diluted Earning per Share – Consolidated (EPS) (as adjusted for changes in capital)

Particulars Face value per share (Rs. 10 per share)

Rupees Weight
Year ended March 31, 2008 7.29 1
Year ended March 31, 2009 7.49 2
Year ended March 31, 2010 17.34 3
Weighted average 12.38

Explanation:

a) The adjusted Earning per Share has been computed on the basis of the adjusted profits and
losses of the respective years drawn after considering the impact of accounting policy changes
and material adjustments, prior period items pertaining to the earlier years and dividend on
preference shares.
b) The denominator considered for the purpose of calculating adjusted Earnings per Share is the
weighted average number of Equity Shares (diluted) outstanding during the year.
c) On December 24, 2007 the Company issued six Equity Shares for each Equity Share held by
shareholders of the Company on that date as a bonus issue. A total of 39,164,316 Equity Shares
were issued in the bonus issue, which increased the amount of Equity Shares outstanding from
6,527,386 to 45,691,702.

(ii) P/E pre-issue in relation to Issue Price of Rs. 324

a. For the year ended March 31, 2010, EPS (consolidated) is Rs. 17.34
b. P/E (consolidated) based on profits after taxes, as restated, for the year ended March 31, 2010
is Rs. 18.69.

61
 c. Industry P/E*
i) Highest : 573.5
ii) Lowest : 4.6
iii) Industry Composite : 25.3
*
P/E based on trailing twelve month earnings for the entire construction sector.
Source: Capital Market XXV/12, Aug 9 -Aug 22, 2010

(iii) Return on Net Worth in the last three years (Consolidated).

Particulars RONW % Weight

Year ended March 31, 2008 10.63 1
Year ended March 31, 2009 10.02 2
Year ended March 31, 2010 17.38 3
Weighted Average 13.80

Minimum Return on Increased Net Worth required to maintain pre-issue EPS is 13.28%

(iv) Net Asset Value per Equity Share (Consolidated)

Particulars NAV (Rs.)

As at March 31, 2010 101.18
After the Issue 130.58
Issue Price 324
Net Asset Value per Equity Share represents shareholders’ equity as per restated financial statements less revaluation
reserves and miscellaneous expenses as divided by weighted average number of Equity Shares outstanding as of date.

(v) Comparison with industry peers

Name of the company EPS (Rs) P/E RONW% NAV (Rs.)

Ashoka Buildcon Limited - 17.34 18.69 17.38 101.18

Consolidated-
Ashoka Buildcon Limited - 16.33 19.84 18.69 88.62
Standalone
Peer Group(1)
IRB Infrastructure 1.7 221.6 4.2 41.2
Developers Limited
IL&FS Transportation 15.9 19.0 27.2 81.1
Networks Limited
Gammon Infrastructure 0.2 NA 2.8 7.4
Limited
Gayatri Projects Limited 46.8 8.4 20.9 197.6
Madhucon Projects 5.9 26.6 9.1 78.1
Limited
Note: The EPS, RONW and NAV figures for the peer group are based on the latest audited results (standalone) for the year
ended March 31, 2010 and P/E is based on trailing twelve months (TTM) and Market data.
Note: The EPS, RONW and NAV figures for Ashoka Buildcon Limited are based on the restated audited consolidated and
restated audited standalone results for the year ended March 31, 2010
(1) Source: Capital Market Volume XXV/12, Aug 9 - Aug 22, 2010

The BRLMs and the CBRLM believe that the Issue Price of Rs. 324 is justified in view of the above
qualitative and quantitative parameters. Please see the sections entitled “Risk Factors”, “Business”,
“Auditor’s Report on Stand-Alone Financial Information” and “Auditor’s Report on Consolidated Financial
Information” on pages xii, 91, 215 and 269 respectively, to have a more informed view.

62
 STATEMENT OF TAX BENEFITS

The Board of Directors,

Ashoka Buildcon Limited,
Ashoka House,
Ashoka Marg,
Nashik- 422 011.
India.

Dear Sirs,

Re: Tax Benefits available to the Company and the Shareholders on proposed Initial Public
Issue of Shares under the existing tax laws

In continuation of our earlier Tax Benefit Certificate issued on July 3, 2010, as requested by you, we
enclose herewith the Annexure on the possible Tax Benefit available modified to reflect the Special Tax
Benefits available to Ashoka Buildcon Limited, (“the Company”) and its Shareholders.

This certificate is issued at the specific request of the Company and the Book Running Lead Managers. The
annexure to this letter has to be read in conjunction with our certificate issued on July 3, 2010.

for M P Chitale & Co.

Chartered Accountants

Murtuza Vajihi
Partner

Mumbai,
August 20, 2010

63
ANNEXURE TO THE STATEMENT OF POSSIBLE TAX BENEFITS AVAILABLE TO ASHOKA
BUILDCON LTD. (“THE COMPANY”) AND ITS SHAREHOLDERS

A. BENEFITS TO THE COMPANY

1. SPECIAL TAX BENEFITS AVAILABLE TO THE COMPANY

1.1 Subject to compliance with certain conditions laid down in Section `80-IA of the Act, the
Company will enjoy 100% tax exemption for any 10 consecutive Assessment Years out of 20
years beginning from the year in which undertaking has started operating the infrastructure
facility, as the case may be, in respect of profits earned from an undertaking set up for developing
or operating and maintaining or developing, operating and maintaining any notified infrastructure
facility.

1.2 In case of scheme of amalgamation/demerger taken place before April 1, 2006 the Company can
avail 100% tax exemption for the residual period out of 20 years, as the case may be, in respect of
profits earned from an undertaking or an enterprise engaged in notified infrastructure facility and
which amalgamates with the company, subject to compliance with certain conditions laid down in
Section 80-IA (12) of The Act.

2. UNDER THE INCOME TAX ACT, 1961 (“THE ACT”):

The Company will be entitled to deduction under the sections mentioned hereunder from its total
income chargeable to Income Tax.

2.1 Dividends exempt under Section 10(34)

Under Section 10(34) of the Act, the Company will be eligible for exemption of income by way of
dividend from domestic company referred to in Section 115-O of the Act.

2.2 Income from units of Mutual Funds exempt under Section 10(35)

The Company will be eligible for exemption of income received from units of mutual funds
specified under Section 10(23D) of the Act, income received in respect of units from the
Administrator of specified undertaking and income received in respect of units from the specified
company in accordance with and subject to the provisions of Section 10(35) of the Act.

2.3 Computation of capital gains

2.3.1 Capital assets may be categorised into short term capital assets and long term capital assets based
on the period of holding.

Shares in a company, listed securities or units of UTI or unit of Mutual Fund specified under
Section 10(23D) or a zero coupon bond will be considered as long term capital assets if they are
held for a period exceeding 12 months. Consequently, capital gains arising on sale of these assets
held for more than 12 months are considered as “long term capital gains”. Capital gains arising on
sale of these assets held for 12 months or less are considered as “short term capital gains”.

2.3.2 Section 48 of the Act, which prescribes the mode of computation of capital gains, provides for
deduction of cost of acquisition/ improvement and expenses incurred in connection with the
transfer of a capital asset, from the sale consideration to arrive at the amount of capital gains.
However, in respect of long term capital gains, it offers a benefit by permitting substitution of cost

64
 of acquisition/improvement with the indexed cost of acquisition/improvement, which adjusts the
cost of acquisition/improvement by a cost inflation index as prescribed from time to time.

2.3.3 As per the provisions of Section 112 of the Act, long term gains as computed above that are not
exempt under Section 10(36) or 10(38) of the Act would be subject to tax at a rate of 20 percent
(plus applicable surcharge and education cess). However, as per the proviso to Section 112(1), if
the tax on long term capital gains resulting on transfer of listed securities or units or zero coupon
bond, calculated at the rate of 20 percent with indexation benefit exceeds the tax on long term
gains computed at the rate of 10 percent without indexation benefit, then such gains are chargeable
to tax at a concessional rate of 10 percent (plus applicable surcharge and education cess).

2.3.4 As per the provisions of Section 111A of the Act, short-term capital gains on sale of equity shares
or units of an equity oriented mutual fund where the transaction of sale is chargeable to Securities
Transaction tax (“STT”) shall be subject to tax at a rate of 15 per cent (plus applicable surcharge
and education cess).

2.3.5 Exemption of capital gain from income tax

¾ Under Section 10(38) of the Act, long term capital gains arising out of sale of equity shares or a
unit of equity oriented fund will be exempt from tax provided that the transaction of sale of such
equity shares or unit is chargeable to STT. However, such income shall be taken into account in
computing the book profit tax payable under Section 115JB.

¾ According to the provisions of Section 54EC of the Act and subject to the conditions specified
therein, long term capital gains not exempt under Section 10(38) shall not be chargeable to tax to
the extent such capital gains are invested in certain notified bonds within six months from the date
of transfer. If only part of the capital gain is so reinvested, the exemption shall be allowed
proportionately. This exemption is restricted to amounts not exceeding fifty lakh rupees in case of
investments made on or after April 01, 2007 in such long term specified assets. However, if the
said bonds are transferred or converted into money within a period of three years from the date of
their acquisition, the amount of capital gains exempted earlier would become chargeable to tax as
long term capital gains in the year in which the bonds are transferred or converted into money.

2.4 Other specified deductions

Subject to fulfillment of conditions, the Company will be eligible, inter alia, for the following
specified deductions in computing its business income:-

2.4.1 Section 35(1)(i) and (iv) of the Act, in respect of any revenue or capital expenditure incurred,
other than expenditure on the acquisition of any land, on scientific research related to the business
of the Company.

2.4.2 Section 35(1)(ii) and (iii) of the Act, in respect of any sum paid to a Scientific Research
Association which has as its object, the undertaking of scientific research or to any approved
university, college or other institution to be used for scientific research or for research in social
sciences or Statistical Research to the extent of a sum equal to one and one fourth times the sum so
paid.

2.4.3 The Company will be entitled to claim expenditure incurred in respect of voluntary retirement
scheme under section 35DDA of the Act in five equal annual installments.

2.4.4 Subject to compliance with certain conditions laid down in Section 32 of the Act, the Company
will be entitled to deduction for depreciation:

In respect of tangible assets (being buildings, machinery, plant or furniture) and intangible assets
(being know-how, patents, copyrights, trademarks, licenses, franchises or any other business or

65
 commercial rights of similar nature acquired on or after 1st day of April, 1998) at the rates
prescribed under the Income-tax Rules, 1962;

In respect of any new machinery or plant which has been acquired and installed after 31st March
2005 by an assessee engaged in the business of manufacture or production of any article of thing, a
further sum of 20% of the actual cost of such machinery or plant.

2.4.5 Under Section 115JAA (1A) credit shall be allowed of any MAT paid under Section 115JB of the
Act for any assessment year commencing on or after 1st day of April 2006. Credit eligible for carry
forward is the difference between MAT paid and the tax computed as per the normal provisions of
the Income Tax Act. Such MAT credit shall be available for set-off up to 7 years succeeding the
year in which the MAT credit initially arose.

2.5 Benefits of unabsorbed business/long term capital losses and allowances

2.5.1 Company has unabsorbed losses / allowances under the Act, which can be carried forward for set
off against the income under the Act of future years as under:

¾ As per Section 72 of the Act, Company can carry forward the unabsorbed business losses for a
period of eight assessment years immediately succeeding the assessment year in which the loss
was first computed.
¾ As per Section 32 of the Act, Company can carry forward the unabsorbed depreciation allowance
of earlier years in the succeeding previous years to be set off against income ( other than income
from salary) of such years.
¾ As per Section 74 of the Act, Company can carry forward the unabsorbed long term capital losses
for a period of eight assessment years immediately succeeding the assessment year in which the
loss was first computed to be set off against long term capital gains under the Act of future years.
¾ As per Section 74 of the Act, Company can carry forward the unabsorbed short term capital losses
for a period of eight assessment years immediately succeeding the assessment year in which the
loss was first computed to be set off against capital gains under the Act of future years.

3. UNDER THE WEALTH-TAX ACT, 1957

3.1 The company is liable to pay wealth tax under the Wealth Tax Act, 1957 @1% for assets held in
excess of Rs 15 lakhs for every assessment years.

3.2 Subject to the conditions specified under section 2(ea) the following are not considered as assets
for the purpose of computation of Net Wealth.

¾ Any residential house allotted to a whole time employee/officer/director having gross annual
salary of less than Rs.5 lakhs
¾ Any unused urban land held by the company as stock in trade for a period of 10 years from the
date of its acquisition.
¾ Any unused urban land held by the company for industrial purposes for a period of 2 years from
the date of its acquisition.

B. BENEFITS AVAILABLE TO RESIDENT SHAREHOLDERS

1. UNDER THE INCOME TAX ACT, 1961 (“THE ACT”):

1.1 Dividends exempt under Section 10(34)

Under Section 10(34) of the Act, income earned by way of dividend from domestic company
referred to in Section 115-O of the Act is exempt from income tax in the hands of the
shareholders.

66
1.2 Computation of capital gains

1.2.1 Capital assets may be categorised into short term capital assets and long term capital assets based
on the period of holding.
Shares in a company, listed securities or units of UTI or unit of Mutual Fund specified under
Section 10(23D) of the Act or a zero coupon bond will be considered as long term capital assets if
they are held for a period exceeding 12 months. Consequently, capital gains arising on sale of
these assets held for more than 12 months are considered as “long term capital gains”. Capital
gains arising on sale of these assets held for 12 months or less are considered as “short term
capital gains”.

1.2.2 Section 48 of the Act, which prescribes the mode of computation of capital gains, provides for
deduction of cost of acquisition/ improvement and expenses incurred in connection with the
transfer of a capital asset, from the sale consideration to arrive at the amount of capital gains.
However, in respect of long term capital gains, it offers a benefit by permitting substitution of cost
of acquisition / improvement with the indexed cost of acquisition / improvement, which adjusts
the cost of acquisition /improvement by a cost inflation index as prescribed from time to time.

1.2.3 As per the provisions of Section 112 of the Act, long term gains as computed above that are not
exempt under section 10(38) of the Act would be subject to tax at a rate of 20 percent (plus
applicable surcharge and education cess). However, as per the proviso to Section 112(1), if the tax
on long term capital gains resulting on transfer of listed securities or units or zero coupon bond,
calculated at the rate of 20 percent with indexation benefit exceeds the tax on long term gains
computed at the rate of 10 percent without indexation benefit, then such gains are chargeable to
tax at a concessional rate of 10 percent (plus applicable surcharge and education cess).

1.2.4 As per the provisions of Section 111A of the Act, short-term capital gains on sale of equity shares
where the transaction of sale is chargeable to STT shall be subject to tax at a rate of 15 per cent
(plus applicable surcharge and education cess).

1.2.5 Exemption of capital gain from income tax

¾ Under Section 10(38) of the Act, Long term Capital Gains arising out of sale of equity shares or a
unit of equity oriented fund will be exempt from tax provided that the transaction of sale of such
equity shares or unit is chargeable to STT.

¾ According to the provisions of Section 54EC of the Act and subject to the conditions specified
therein, long term capital gains not exempt under Section 10(38) shall not be chargeable to tax to
the extent such capital gains are invested in certain notified bonds within six months from the date
of transfer. If only part of the capital gain is so reinvested, the exemption shall be allowed
proportionately. This exemption is restricted to amounts not exceeding fifty lakh rupees in case of
investments made on or after April 01, 2007 in such long term specified assets. However, if the
said bonds are transferred or converted into money within a period of three years from the date of
their acquisition, the amount of capital gains exempted earlier would become chargeable to tax as
long term capital gains in the year in which the bonds are transferred or converted into money.

¾ Under Section 54F of the Act and subject to the conditions and to the extent specified therein, long
term capital gains [in cases not covered under section 10(38) of the Act] arising to an individual or
Hindu Undivided Family (HUF) on transfer of shares of the Company will be exempt from capital
gains tax subject to other conditions, if the net sales consideration from such shares are used for
purchase of residential house property within a period of one year before or two year after the date
on which the transfer took place or for construction of residential house property within a period
of three years after the date of transfer.

67
2. UNDER THE WEALTH-TAX ACT, 1957

Shares of the Company held by the shareholder will not be treated as an asset within the meaning
of Section 2(ea) of Wealth Tax Act, 1957, hence no Wealth Tax will be payable on the market
value of shares of the Company held by the shareholder of the Company.

C. BENEFITS AVAILABLE TO NON-RESIDENT INDIAN SHAREHOLDERS (OTHER

THAN FIIS AND FOREIGN VENTURE CAPITAL INVESTORS)

1. UNDER THE INCOME TAX ACT, 1961 (“THE ACT”):

1.1 Dividends exempt under Section 10(34)

Under Section 10(34) of the Act, income earned by way of dividend from domestic company
referred to in Section 115-O of the Act is exempt from income tax in the hands of the
shareholders.

1.2 Computation of capital gains

1.2.1 Capital assets may be categorised into short term capital assets and long term capital assets based
on the period of holding.
Shares in a company, listed securities or units of UTI or units of Mutual Fund specified under
Section 10(23D) of the Act or a zero coupon bond will be considered as long term capital assets if
they are held for a period exceeding 12 months. Consequently, capital gains arising on sale of
these assets held for more than 12 months are considered as “long term capital gains”. Capital
gains arising on sale of these assets held for 12 months or less are considered as “short term
capital gains”.

1.2.2 Section 48 of the Act contains special provisions in relation to computation of capital gains on
transfer of shares of an Indian company by non-residents. Computation of capital gains arising on
transfer of shares in case of non-residents has to be done in the original foreign currency, which
was used to acquire the shares. The capital gain (i.e., sale proceeds less cost of
acquisition/improvement) computed in the original foreign currency is then converted into Indian
Rupees at the prevailing rate of exchange.
According to the provisions of Section 112 of the Act, long term gains as computed above that are
not exempt under section 10(38) of the Act would be subject to tax at a rate of 20 percent (plus
applicable surcharge and education cess).

1.2.3 In case investment is made in Indian rupees, the long-term capital gain is to be computed after
indexing the cost.
According to the provisions of Section 112 of the Act, long term gains as computed above that are
not exempt under Section 10(38) of the Act would be subject to tax at a rate of 20 percent (plus
applicable surcharge and education cess). However, as per the proviso to Section 112(1), if the tax
on long term capital gains resulting on transfer of listed securities or units or zero coupon bond,
calculated at the rate of 20 percent with indexation benefit exceeds the tax on long-term gains
computed at the rate of 10 percent without indexation benefit, then such gains are chargeable to
tax at a concessional rate of 10 percent (plus applicable surcharge and education cess).

1.2.4 As per the provisions of Section 111A of the Act, short-term capital gains on sale of equity shares
where the transaction of sale is chargeable to STT shall be subject to tax at a rate of 15 percent
(plus applicable surcharge and education cess).

1.2.5 Options available under the Act where shares have been subscribed to in convertible foreign
exchange –
Option of taxation under Chapter XII-A of the Act:

68
 Non-Resident Indians [as defined in Section 115C(e) of the Act], being shareholders of an Indian
Company, have the option of being governed by the provisions of Chapter XII-A of the Act,
which inter alia entitles them to the following benefits in respect of income from shares of an
Indian company acquired, purchased or subscribed to in convertible foreign exchange:

¾ According to the provisions of Section 115D read with Section 115E of the Act and subject to the
conditions specified therein, long term capital gains arising on transfer of shares in an Indian
company not exempt under Section 10(38), will be subject to tax at the rate of 10 percent (plus
applicable surcharge and education cess), without indexation benefit.

¾ According to the provisions of Section 115F of the Act and subject to the conditions specified
therein, capital gains arising on transfer of a long term capital asset being shares in an Indian
company shall not be chargeable to tax if the entire net consideration received on such transfer is
invested within the prescribed period of six months in any specified asset. If part of such net
consideration is invested within the prescribed period of six months in any specified asset the
exemption will be allowed on a proportionate basis. For this purpose, net consideration means full
value of the consideration received or accruing as a result of the transfer of the capital asset as
reduced by any expenditure incurred wholly and exclusively in connection with such transfer.

¾ Further, if the specified asset in which the investment has been made is transferred within a period
of three years from the date of investment, the amount of capital gains tax exempted earlier would
become chargeable to tax as long term capital gains in the year in which such specified asset or
savings certificates are transferred.

¾ As per the provisions of Section 115G of the Act, Non-Resident Indians are not obliged to file a
return of income under Section 139(1) of the Act, if their source of income is only investment
income and / or long term capital gains defined in .Section 115C of the Act, provided tax has been
deducted at source from such income as per the provisions of Chapter XVII-B of the Act.

¾ Under Section 115H of the Act, where the Non-Resident Indian becomes assessable as a resident
in India, he may furnish a declaration in writing to the Assessing Officer, along with his return of
income for that year under Section 139 of the Act to the effect that the provisions of the Chapter
XII-A shall continue to apply to him in relation to such investment income derived from any
foreign exchange asset being asset of the nature referred to in sub clause (ii), (iii), (iv) and (v) of
Section 115C(f) for that year and subsequent assessment years until such assets are converted into
money.

¾ As per the provisions of Section 115-I of the Act, a Non-Resident Indian may elect not to be
governed by the provisions of Chapter XII-A for any assessment year by furnishing his return of
income for that assessment year under Section 139 of the Act, declaring therein that the provisions
of Chapter XII-A shall not apply to him for that assessment year and accordingly his total income
for that assessment year will be computed in accordance with the other provisions of the Act.

1.2.6 Exemption of capital gain from income tax

¾ Under Section 10(38) of the Act, long term capital gains arising out of sale of equity shares or a
unit of equity oriented fund will be exempt from tax provided that the transaction of sale of such
equity shares or unit is chargeable to STT.

¾ According to the provisions of Section 54EC of the Act and subject to the conditions specified
therein, capital gains not exempt under Section 10(38) and arising on transfer of a long term
capital asset shall not be chargeable to tax to the extent such capital gains are invested in certain
notified bonds within six months from the date of transfer. If only part of the capital gain is so
reinvested, the exemption shall be allowed proportionately. However, if the said bonds are
transferred or converted into money within a period of three years from the date of their
acquisition, the amount of capital gains exempted earlier would become chargeable to tax as long

69
 term capital gains in the year in which the bonds are transferred or converted into money.
Provided that the investment made on or after April 01, 2007 in the long term specified assets by
the non residents during any financial year does not exceed fifty lakh rupees.

1.3 Tax Treaty benefits

An investor has an option to be governed by the provisions of the Act or the provisions of a Tax
Treaty that India has entered into with another country of which the investor is a tax resident,
whichever is more beneficial.

2. UNDER THE WEALTH-TAX ACT, 1957

Shares of the Company held by the shareholder will not be treated as an asset within the meaning
of Section 2(ea) of Wealth Tax Act, 1957, hence no Wealth Tax will be payable on the market
value of shares of the Company held by the shareholder of the Company.

D. BENEFITS AVAILABLE TO FOREIGN INSTITUTIONAL INVESTORS (‘FIIs’)

1. UNDER THE INCOME TAX ACT, 1961 (“THE ACT”):

1.1 Dividends exempt under section 10(34)

Under Section 10(34) of the Act, income earned by way of dividend from domestic company
referred to in Section 115-O of the Act is exempt from income tax in the hands of the
shareholders.

1.2 Taxability of capital gains

1.2.1 Under Section 10(38) of the Act, long term capital gains arising out of sale of equity shares or a
unit of equity oriented fund will be exempt from tax provided that the transaction of sale of such
equity shares or unit is chargeable to STT.

1.2.2 The income by way of short term capital gains or long term capital gains [in cases not covered
under Section 10(38) of the Act] realized by FIIs on sale of shares of the company would be taxed
at the following rates as per Section 115 AD of the Act-
¾ Short term capital gains, other than those referred to under Section 111A of the Act shall be taxed
@ 30% (plus applicable surcharge & education cess).
¾ Short term capital gains, referred to under Section 111A of the Act shall be taxed @ 15% (plus
applicable surcharge and education cess)
¾ Long Term capital gains @ 10% (plus applicable surcharge and education cess) (without cost
indexation) It may be noted here that the benefits of indexation and foreign currency fluctuation
protection as provided by Section 48 of the Act are not applicable.

1.2.3 According to the provisions of Section 54EC of the Act and subject to the conditions specified
therein, long term capital gains not exempt under Section 10(38) shall not be chargeable to tax to
the extent such capital gains are invested in certain notified bonds within six months from the date
of transfer. If only part of the capital gain is so reinvested, the exemption shall be allowed
proportionately.
However, if the assessee transfers or converts the notified bonds into money within a period of
three years from the date of their acquisition, the amount of capital gains exempted earlier would
become chargeable to tax as long term capital gains in the year in which the bonds are transferred
or converted into money. Provided that the investment made on or after April 01, 2007 in the long
term specified assets by the investor during any financial year does not exceed fifty lakh rupees.

70
E. VENTURE CAPITAL COMPANIES / FUNDS

In terms of Section 10(23FB) of the Act, all Venture capital companies/funds registered with
Securities and Exchange of India, subject to the conditions specified, are eligible for exemption
from income tax on all their income, including profit on sale of shares of the Company.

Notes:
1. All the above benefits are as per the current tax law as amended by the Finance Act, 2010.

2. The stated benefits will be available only to the sole / first named holder in case the shares are held by
joint holders.

3. In view of the individual nature of tax consequences, each investor is advised to consult his/her own
tax advisor with respect to specific tax consequences of his/her participation in the issue.

71
 INDUSTRY

Unless otherwise indicated, the information in this section is derived from a combination of various official
and unofficial publicly available materials and sources of information. It has not been independently
verified by the Company, the Book Running Lead Manager and the Co-Book Running Lead Manager and
their respective legal or financial advisors, and no representations is made as to the accuracy of this
information, which may be inconsistent with information available or compiled from other sources.
Industry sources and publications generally state that the information contained therein has been obtained
from sources generally believed to be reliable, but their accuracy, completeness, underlying assumptions
and reliability cannot be assured. Accordingly, investment decisions should not be based on such
information.

Overview of the Indian Economy

India, the world’s largest democracy in terms of population (~1.17 billion people) had a GDP on
purchasing power parity basis of approximately US$3,561 billion in 2009. This makes India the fourth
largest economy in the world after the United States of America, China and Japan in purchasing power
parity terms. (Source: CIA World Fact Book website)

India is also amongst the fastest growing economies globally and has grown at an average growth rate of
more than 7% in the decade since 1997, reducing poverty by about 10 percentage points. India achieved
9.7% GDP growth in FY 2007, 9.0% in FY 2008 and 6.7% in FY 2009. GDP growth is estimated to be
7.4% for FY 2010. (Source: Economic Survey 2009-2010, RBI; Ministry of Statistics and Programme
Implementation)

The following table sets forth the key indicators of the Indian economy for the past five fiscal years.

(Annual percentage change, except for foreign exchange reserves)

As at and for the year ended March 31,

2006 2007 2008 2009 2010
Real GDP growth (1) 9.5 9.7 9.0 6.7 7.4
Index of Industrial Production (2) 8.2 11.5 8.5 2.6 10.4
Wholesale Price Index (2) 4.4 5.4 4.7 8.3 3.8
Foreign Exchange Reserves (in US$ billion) 145.1 191.9 309.1 252 254.7
(1) At 1999-2000 prices
(2) Index Base 1993-94= 100
(Source: Economic Survey 2008-2009, RBI; Ministry of Statistics and Programme Implementation)

Infrastructure Sector

The fast growth of the economy in recent years has placed increasing stress on physical infrastructure such
as electricity, railways, roads, ports, airports, irrigation, water supply and sanitation, all of which already
suffer from a substantial deficit in terms of capacities and efficiencies in their delivery. Whilst there has
been some improvement in infrastructure development in transport, communication and energy sectors in
the recent years, there are still significant gaps that need to be bridged.

We believe India will require a sustained momentum in infrastructure investment in order to maintain its
current pace of growth. The 11th Five Year Plan envisages an infrastructure investment of Rs. 20,561
billion (at FY 2007 prices), equaling US$514 billion, to be shared between the Centre, states and private
sector in the ratio of 37.2%, 32.6% and 30.1%. Set forth below is the estimated level of investment in the
infrastructure sector over XI plan:

72
 (Figures in Rs. Billion)
Sector Xth Plan 2007- 2008- 2009- 2010- 2011- Total
(Anticipated 08 09 10 11 12 XI
Exp.) Plan
Electricity 2,918 820 1,016 1,264 1,579 1,986 6,665
Roads and Bridges 1,448 518 548 592 684 800 3,142
Telecommunications 1,034 314 381 486 616 787 2,584
Railways (incl. MRTS) 1,197 342 410 495 604 767 2,618
Irrigation (incl. Watershed) 1,115 275 359 472 623 804 2,533
Water Supply & Sanitation 648 193 228 273 333 411 1,437
Ports 141 124 148 174 200 234 880
Others 213 117 126 137 152 170 702
Total 8,714 2,703 3,216 3,893 4,791 5,959 20,561
Total (US$ billion) @Rs. 40/$ 217.86 67.57 80.39 97.32 119.78 148.98 514.04
(Source: Annual Plans and other documents of the Planning Commission and Central Statistical
Organization for the Tenth Plan period)

To maintain the levels of growth in the economy, as achieved in the recent past, there has to be a
continuous thrust for development of infrastructure. In the 12th five year plan (2012-2017), the required
Gross Capital Formation (GCF) in infrastructure is estimated to be around Rs. 40,750 Billion (US$ 1,019
Billion). Such projections are made assuming the fact that the GCF in infrastructure as a % of GDP would
rise from 9% in FY2012 to 10.25% in FY2017 and that the GDP would continue to grow at 9% per annum.
(Source: Investment in Infrastructure; The Secretariat for the Committee on Infrastructure,
www.infrastructure.gov.in)

In our view, the current economic slowdown provides an opportunity for countries like India that have a
substantial degree of unmet infrastructure requirements. The Government's focus, sustained increased
budgetary allocation and increased funding by international and multilateral development finance
institutions for infrastructure development in India may result in development of several infrastructure
projects across India. The Government of India has also undertaken/ proposed various initiatives to
encourage private sector participation, such as tax breaks for investments in infrastructure.

The Role of the Private Sector in Infrastructure Development

Historically, the government has played a key role in supplying and regulating infrastructure services in
India and private sector has not participated in infrastructure development. However, due to the public
sector’s limited ability to meet the massive infrastructure funding requirements, private sector investment
in infrastructure is critical. Therefore, the Indian government is actively encouraging private investments in
infrastructure. According to World Bank, India needs to invest an additional 3-4% of GDP on infrastructure
to sustain its current levels of growth in the medium term and to spread the benefits of growth more widely.
(Source: India Country Overview 2009, World Bank)

Despite the critical role played by infrastructure development in growth, there still exists a very wide gap of
US$10-15 billion between the current and required levels of private investments in infrastructure. Over the
15-year period from 1990 to 2005, total private investments stood at around US$51 billion or US$3.4
billion per year, of which US$30 billion has come in the five-year period FY 2002-FY 2006. (Source:
Private Participation in Infrastructure Database, World Bank Group)

Roads Sector

India has one of the largest road networks in the world, aggregating to 3.32 million kms, consisting of
National Highways, expressways, state highways, major district roads, other district roads and village
roads. The road network comprises 70,548 kms of National Highways, 131,899 kms of State Highways,
467,763 kms of Major District Roads and about 2,650,000 kms of Rural and other roads. National

73
Highways comprise only about 2% of the total length of roads and carry about 40% of the total traffic
across the length and breadth of the country. (Source: NHAI Website)

The number of vehicles grew at an average pace of 10.10% per annum over the period from FY 2000 to FY
2004. In FY 1999, 54% of total freight was transported by roads, which increased to 62% in 2008.
Passenger traffic on roads as a percentage of total passenger traffic has also witnessed a huge increase from
30% in 1951 to 86% in 2008. (Source: CRISIL Research, Road Network in India, June 30, 2009). The
expansion and strengthening of the road network, therefore, is imperative to provide for both present and
future traffic volumes and for improving accessibility to less developed parts of the country. Additionally,
road transport needs to be regulated for better energy efficiency, lesser pollution and enhanced road safety.
The Central Government is mandated to develop National Highways and the responsibility for the
development of other categories of roads vests with the States/Union Territories.

Public Private Partnership (“PPP”)

Historically, investments in infrastructure, particularly in the highways, were being made by the
government mainly due to the huge volume of resources required, the long gestation period, uncertain
returns and various external risks. The enormous resource requirements, the significance of infrastructure
development for economic growth and significant deficit in infrastructure requirements have led to an
active involvement of the private sector also in recent years. To encourage participation of the private
sector, the Ministry of Road Transport & Highways has laid down comprehensive policy guidelines for
private sector participation in the highway sector. The Government has also announced several incentives
such as tax exemptions and duty free import of road building equipments and machinery to encourage
private sector participation.

The Government has taken initiatives to improve and strengthen the road network by implementing the
National Highway Development Program (“NHDP”). The NHDP is the largest highway project ever
undertaken in India and is being implemented by the National Highways Authority of India (“NHAI”). It
was started in 1998 and is supported by revenues derived from cess tax on fuel and toll collection.

The total length proposed to be developed under NHDP has been split into the different contact models:

x Toll-based BOT projects (“BOT (Toll)”);

x Annuity-based BOT projects (“BOT (Annuity)”); and
x Engineering, procurement and construction (“EPC”) contracts.

Under all three contract models, the contractor is responsible for the engineering of the project, the
procuring of materials for the project and the construction of the project. For BOT (Toll) and BOT
(Annuity), the contractor is also responsible for maintaining the project. The difference between BOT
(Toll) and BOT (Annuity) is that in the case of BOT (Toll), the traffic/commercial risks are borne by the
concessionaire and the investment is sustained by toll revenues, while in BOT (Annuity) projects, all costs
are borne by the Government in the form of deferred budgetary payments. In the case of BOT (Toll),
government budgetary support, if any, is restricted to an upfront grant, while in some cases the
concessionaire may even pay the granting authority a one off fee as part of the concession grant. In the case
of BOT (Annuity), the concessionaire relies on annuity payments determined by competitive bidding and
made out of budgetary allocations spread over time.

Based on interactions as well as data available for select stretches, returns vary from contract to contract.
Typically, in an annuity, the project IRR would be in the range of 12-14% and equity IRR would be in the
range of 14 -16%. For toll, where the concessionaire assumes the traffic risk, the project IRR would be in
the range of 14- 16% and equity IRR would be in the range of 18-20%. (Source: CRISIL Research, Project
Economics, Roads and Highways, Oct 22, 2008)

The table below sets forth the proposed breakdown of contract models for the NHDP:

74
 NHDP Phase Item EPC BOT (Toll) BOT (Annuity) Total
NHDP-I Length (in kms) 1,711 20 7 1,738
(Balance Work) Cost (in Rs. billions) 81.45 5.81 0.85 88.11
NHDP-II Length (in kms) 4,569 1,237 930** 6,736
(Balance Work) Cost (in Rs. billions) 294.93 80.65 60.64 436.22
NHDP-III Length (in kms) - 10,000 - 10,000
Cost (in Rs. billions) - 651.97 - 651.97
NHDP-IV Length (in kms) - 5,000 15,000** 20,000
Cost (in Rs. billions) - 69.50 208.50 278.00
NHDP-V Length (in kms) - 6,500 - 6,500
Cost (in Rs. billions) - 412.10 - 412.10
NHDP-VI Length (in kms) - 1,000 - 1,000
Cost (in Rs. billions) - 166.80 - 166.80
NHDP-VII Length (in kms) * * * *
Cost (in Rs. billions) 25.94 96.38 44.48** 166.80
Total Length (in kms) 6,280 23,757 15,937 45,974***
Cost (in Rs. billions) 402.32 1,483.21 314.47 2,200.00
* Length to be covered under NHDP-VII was not finalized when the report was published.
** To be determined based on budgetary resources and the tolling policy for two-lane highways.
*** Does not include the length to be covered under NHDP-VII.
(Source: Report of the Core Group on Financing of the National Highway Development Program,
February 6, 2006)

In order to boost the participation of the private sector in road development, the Government has planned
the following initiatives:

x The Government will carry out all preparatory work, including land acquisition and utility
removal. Right of way will be made available to concessionaires, free from all encumbrances;
x NHAI/the Government will provide a capital grant of up to 40% of the project cost to enhance
viability on a case-by-case basis evaluation;
x The concessionaries will receive a 100% tax exemption for five years and 30% relief for the
following five years, which may be utilized in 20 years;
x Permitted concession period of up to 30 years;
x Arbitration and Conciliation Act, 1996 based on UNCITRAL provisions applicable to contracts;
x In BOT projects, concessionaries are permitted to collect and retain tolls; and
x Duty free importation of specified modern high capacity equipment for highway construction.

(Source: Public Partnerships in India, Ministry of Finance, Government of India)

National Highway Development Program

The Government has taken initiatives to improve and strengthen the road network by implementing the
NHDP. The NHDP is the largest highway project ever undertaken in India and is being implemented by the
NHAI. It was started in 1998 and is supported by revenues derived from cess tax on fuel and toll collection.
NHDP consists of the following components:

x NHDP Phases I & II envisage four/six laning of about 14,234 kms of National Highways at an
estimated cost of Rs. 650.00 billion at 2004 prices. These two phases comprise Golden Quadrilateral
(“GQ”), North-South and East-West (“NSEW”) corridors, port connectivity and other projects. The
GQ consisting of 5,846 kms length connects the four major cities of Delhi, Mumbai, Chennai and
Kolkata. The NSEW corridors, comprising a length of 7,300 kms, connecting Srinagar in the North to

75
 Kanyakumari in the South, including a spur from Salem to Kochi and Silchar in the East to Porbandar
in the West, respectively. The NHDP also includes the Port Connectivity Project, which comprises a
length of 380 kms for improvement of roads connecting 12 major ports in India and other projects
involving a length of 945 kms.

x The Government of India has approved upgrading 12,109 kms under NHDP Phase III. As on May 31,
2010, 5,271 kms of roads are still to be awarded. (Source: NHAI Website) Due to various policy
changes with respect to request for proposals and litigations raised by National Highways Builders
Federation (“NHBF”) against NHAI, the bidding process was delayed.

x The Government of India has approved the six laning of 6,500 kms of National Highways comprising
5,846 kms of the GQ and the balance of other sections of National Highways under NHDP Phase V at
a cost of Rs. 412.10 billion.

x The Government of India has also approved the construction of 1,000 kms of expressways with full
access control on new alignments at a cost of Rs. 166.80 billion under NHDP Phase VI.

The table below sets forth the status of the NHDP as at June 30, 2010:

GQ NSEW NHDP SARD NHDP NHDP NHDP NHDP NHDP

& Phase P-NE Phase- Phase - Phase - Phase Total
Phase - III IV V VI – VII
I & II
Total Length 5,846 7,300 12,109 388 14,799 6,500 1000 700 48,642
(kms)
Already 4- 5,793 5,172 1,778 - - 301 - - 12,895
laned (kms)
Under 53 1,476 5,060 112 176 1,999 - 41 9,066
Implementatio
n (kms)
Number of 13 113 73 2 1 - 2 221
Contracts 17
under
implementation
Balance to be - 494 5,271 276 14,623 4,200 1000 659 26,523
awarded (kms)
(Source: National Highways Authority of India)

The targets for completion of the various components of the NHDP are as follows:

NHDP Component Target for Completion

Completion of NS-EW Corridors, Port Connectivity & December 2009
other projects under NHDP-Phase-I&II
Completion of NHDP-Phase-III December 2013
Completion of NHDP-Phase-V December 2012
Completion of NHDP-Phase-VI December 2015
(Source: Plan Document, 11th Five Year Plan; CRISIL Research, NHDP Review & Outlook, Feb 23, 2009)

The estimated cost of the various components of the NHDP is as follows:

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 Name of Project Estimated
Cost
(Rs. in Billion)
Completion of GQ and EW-NS corridors 524.34
4-laning of 11,113 kms under NHDP Phase-III 724.54
2-laning with paved shoulders of 20,000 kms of National Highways under NHDP Phase- 278.00
IV
6-laning of selected stretches of National Highways under NHDP Phase-V 412.10
Development of 1,000 kms of expressways under NHDP Phase-VI 166.80
Construction of ring roads, flyovers and bypasses on selected stretches under NHDP 166.80
Phase-VII.
Total 2,272.58
th
(Source: Plan Document for 11 Five Year Plan)

All the above mentioned projects will be financed through various sources of funds including cess, loan
assistance from the World Bank and Asian Development Bank, borrowings by NHAI, estimated surplus
amount available from the users’ fee and private sector investment. Various sources of funding to finance
these projects have been finalised and the financing plan implementation by the year 2015 has been
approved. The requirement of funds during the 11th Five Year Plan (FY 2008-FY 2012) for implementation
of NHDP has been established at Rs. 1,735.01 billion. (Source: Plan Document for 11th Five Year Plan)

The projected availability of funds from various sources during the 11th Five Year Plan is set forth below:

Funding Source Amount (Rs. in Billion)

Cess 365.89
External Assistance 44.54
Borrowings by NHAI 416.15
Surplus from the user fee 31.08
Share of private sector 877.35
Total 1,735.01
th
(Source: Plan Document for 11 Five Year Plan)

National Highways – It has been estimated by the Planning Commission that Rs. 1,217.58 billion would be
required for the Ministry of Road Transport & Highways during the 11th Five Year Plan. Further, it has
been estimated by the Planning Commission that Rs. 31.08 billion would be available for implementation
of the NHDP from the surplus of the users’ fees collected by the NHAI during the 11th Five Year Plan. The
share of private sector investment during the 11th Five Year Plan is estimated to be Rs. 877.35 billion.
(Source: Plan Document for 11 th Five Year Plan)

State Roads – The proposed programme envisages a financial outlay of Rs. 10.00 billion for the 11th Five
Year Plan with the possible element of private finance estimated at Rs. 3.20 billion. (Source: Plan
Document for 11 th Five Year Plan)

Slowdown in awarding contracts

Since FY 2006, there has been a slowdown in contracts being awarded for NHDP. From 5,131 kms
in FY 2006, the length of roads awarded fell to a mere 1,001 kms in FY 2008. Most of the awarding in FY
2008 took place in Phase V. It involves upgrading the existing four-lane national highways to six lanes and
includes 87% of the GQ stretches. The situation worsened in FY 2009, with a complete lull in awarding
NHDP projects during the period. Around 6,000 kms of road projects in Phase III and Phase V have been
stuck in different stages of the bidding process since July 2008 and were expected to be awarded by

77
December 2008. However, from Phase III, only 215 kms have been awarded till date. The slowdown was
due to the introduction of certain regulatory changes in Model RFQ, RFP and MCA rules in early 2008 and
the uncertainty regarding its implementation due to pending litigations. Further, the global economic
slowdown and liquidity crunch aggravated the situation which resulted in cautious bidding by developers as
they found it difficult to attain financial closures for projects. But now, with a favorable toll policy in place
for developers and an easing liquidity scenario, the sector is poised for growth going ahead. (Source:
CRISIL Research, Opinion: New Toll Policy-Silver Lining for Road Projects, March 05, 2009)

Introduction of new toll policy (2008) results in higher returns and lower grants

The new toll policy came into force in December 2008. The most significant change in this policy
(applicable for future bidding of contracts), has been the change in methodology for revision of toll rates,
which is fixed at 3% plus 40% of change in Wholesale Price Index (“WPI”). As per the old toll policy
(1997), the revision in toll rates was 100% of the change in WPI. But the Model Concessionaire Agreement
(2006), which was applicable in 2008, allowed revision to the extent of only 40% of change in WPI. Under
the new toll policy, equity returns are significantly higher than the returns as per the MCA rule (2006) for a
similar road. This would encourage private player participation and increase interest levels in the NHAI
projects. The grant outlay is also expected to be lower for NHAI under the new policy as compared to the
MCA rule (2006), as attractive returns for private developers can be achieved through favourable toll
revisions rather than higher grants. (Source: CRISIL Research, Opinion: New Toll Policy-Silver Lining for
Road Projects, March 05, 2009)

Downside limited under new toll policy

In case of a low inflation scenario, returns as per the new toll policy are more favourable compared to the
other policies. This is on account of the fixed 3% annual increase in the revision of toll rates in addition to
the 40% change in WPI unlike the earlier policies, which were only linked to inflation. As a result, the
downside risk to returns for private developers is limited. The new toll policy would achieve a better
balance between tolls charged and returns to encourage private player participation. Moreover, it would
reduce the NHAI grant outlay towards NHDP projects. The new toll policy can thus be seen as a silver
lining for road projects in the current scenario of economic slowdown, traffic uncertainty, and limited
availability of funds (both debt and equity). (Source: CRISIL Research, Opinion: New Toll Policy- Silver
Lining for Road Projects, March 05, 2009)

Revised Strategy for Implementation of the NHDP – Framework and Financing

In November 2009, the Ministry of Road Transport & Highways, Government of India accepted the
recommendations made by the B.K. Chaturvedi’s committee on NHDP. The committee was constituted by
the Prime Minister of India in August, 2009 to fast track the implementation of NHDP. The committee's
recommendations have largely addressed concerns raised by developers of, and lenders to, road projects on
termination clauses, raising the trigger level for bid cancellation due to conflict of interest, and an exit
policy for developers. The impact of these recommendations will be periodically reviewed. (Source: NHAI
Website)

State Road Networks

The road network in most Indian states is deficient in terms of quality and connectivity. In the past,
development has been along certain corridors/sectors and hence large parts of many states are still not well
connected and the road network requires substantial improvement.

In most states, the road and bridges division of the Public Works Department is responsible for the
development of the primary road network, whereas the rural roads are maintained by the Panchayati Raj
institutions. Many states have also formed dedicated State Road Development Corporations (“SRDC”),
which have helped in raising money and effective implementation of road construction. Among the
SRDCs, the most prominent has been Maharashtra State Road Development Corporation (“MSRDC”) as it

78
has single-handedly implemented the 90 kms Mumbai-Pune Expressway, including raising funds for the
project.

There has been progress in the development of the road sector across states since the mid-1990s with
certain states, such as Maharashtra, Gujarat, Madhya Pradesh, Andhra Pradesh and Karnataka, taking the
lead. These states have been more proactive in creating road development corporations, enabling private
sector participation and have managed to fund their projects more efficiently through market borrowings,
cess and motor vehicle taxes.

Funding

One of the primary reasons for the lack of development and poor maintenance of the existing state roads
has been lack of funds. The funding has largely been provided through budgetary allocations of the State
Governments, and has been supplemented to some extent by funds provided by the Central Government
and National Bank for Agricultural and Rural Development (“NABARD”) under Rural Infrastructure
Development Fund.

States receive their share of the cess revenues collected under the Central Road Fund through cess levied on
petrol and diesel. The mechanism of the allocation is as follows:

50% of the cess amount collected on diesel and the entire cess amount collected on petrol is pooled. Of this
amount, 30% is distributed to the states for the construction and maintenance of state roads.

However, the requirement of funds for the development of state roads is higher, and hence, the funds from
this source are not sufficient. Many State Governments have adopted the following approaches to
supplement the funding from the Central Government.

x Funds from the external funding agencies – Agencies like the Asian Development Bank (“ADB”),
World Bank and Japan Bank for International Cooperation (“JBIC”) have funded projects in Tamil
Nadu, Karnataka, Andhra Pradesh and Gujarat. Total funding is usually 70% of the total project
cost.
x Establishment of Road Funds – Various states, including Tamil Nadu and Kerala, have created
funds through which they have raised monies by levying cess/tax on petroleum products and
vehicles. These funds are in addition to their share received from Central Road Fund.
x Privatisation – The experiment of BOT projects has succeeded in several places. Well developed
legislation would enable private sector participation and prevent legal objections to the imposition
of tolls for the use of the facilities that are developed.

Roads Sector in Madhya Pradesh

Madhya Pradesh has the third largest network of National Highways in the country after Uttar Pradesh and
Rajasthan. The total length of roads in Madhya Pradesh was over 72,000 kms in 2006. (Source:
Government of India Website)

The Public Works Department (PWD) of Madhya Pradesh is entrusted with the task of developing and
maintaining the roads in the state, while the Madhya Pradesh Rajya Setu Nirman Nigam (“MPRSNN”) is
responsible for the construction of bridges. Madhya Pradesh Road Development Corporation (“MPRDC”)
is the agency carrying out all the developmental work in association with the private sector.

Bond-BOT Projects

The Madhya Pradesh State Government devised Bond-BOT Projects in 2000 in order to encourage private
sector participation and reduce pressure on State Government finances as the state did not have adequate
funds to finance such mega projects. The State Government decided to limit the total subsidy amount to
Rs. 5 billion (raised through bonds and Housing and Urban Development Corporation Limited (“HUDCO”)
loans).

79
The Madhya Pradesh Adhosanrachana Vinidhan Nidhi Board Adhiniyam, 2000 (“MPAVNB Act”) has
been enacted to raise and deploy earmarked funds for infrastructure projects. As at July 31, 2009, the
MPAVNB had issued bonds for an aggregate amount of Rs. 5 billion.

Funding

Apart from regular plan outlays and private capital, additional resources have been mobilised through
NHAI funds, Central Road Fund, NABARD loans for rural roads, mandi cess, infrastructure bonds,
external assistance and HUDCO loans.

In the State Budget FY 2011, budgeted provision for roads is Rs. 28.7 billion. The budget envisages
construction and renovation of 3316 kms of roads.

The Madhya Pradesh State Government also plans to set up a Road Maintenance Fund (“RMF”) for the
development and maintenance of roads in Madhya Pradesh. The State RMF will be created by pooling the
toll revenue and assistance obtained from the Central Road Fund (“CRF”), mandi cess and road tax, and
also by the levy of additional cess on the fuel and taxes on vehicles. The available funds would be offered
as ‘equity participation’ to BOT operators, who would subsequently pool their own resources and bid for a
pre-determined concession period. We believe that private sector partnership would not only increase the
available pool of funds, but would also enhance maintenance/reconstruction activities by the application of
modern techniques.

The Madhya Pradesh State Government has obtained a technical assistance loan from the World Bank for
carrying out a feasibility study and detailed engineering on around 3,280 kms of roads. ADB has also
sanctioned a US$180 million loan to the government of Madhya Pradesh for the rehabilitation of 1,750 kms
of state roads. These projects are being implemented in three phases. Most of Phase I is complete, Phase II
is under implementation and detailed project reports (“DPR”) of Phase III are in the process of being
prepared. (Source: Madhya Pradesh Road Development Corporation Limited)

Projects

The government of Madhya Pradesh has identified projects worth Rs. 28 billion in the road sector. Of
these projects, 16 road projects aggregating 2,140 kms would be under BOT scheme. These roads will
connect important tourist destinations, such as Mahakaleshwar, Kundalpur, Omkareshwar, Pachmarhi,
Kanha, Sanchi, Rahatgarh, Chitrakoot, Maihar, Bandhavgarh, Panna Amarkantak, and Jabalpur.

These projects have been developed under the concept of ‘Bond-BOT projects’, wherein part of the Rs. 5
billion infrastructure bonds raised by the government of Madhya Pradesh would be used for providing
grants or subsidies to the BOT projects. Two of the projects (Ujjain-Susner-Jhalawad of 139 kms, at Rs.
660 million, and Indore-Edalabad of 203 kms, at Rs. 1.23 billion) have achieved financial closure with
funding from IDFC (Rs. 376.3 million) and SBI (Rs. 650 million).

ADB-Phase III- Upcoming Projects

Sr. No. Name of Roads Length in kms

1 Bhind-Ater-Porsa (SH-2) 60.85
2 Mihona-Lahar-Daboh-Bhander-Chirgaon (SH-45) 85.70
3 Pichor-Chanderi-Mungawali-Aonder-Kurwai (SH-19) 146.5
4 Manavar-Mangod (Banderi) (SH-38) 49.63
5 Bari-Baktara-Dobi-Shahganj-Budhni (SH-15) 58.78
6 Silwani-Udaipura (SH-15, SH-44) 28.58
7 Aagar-Badod-Aalot-Jaora (SH-41 Ext.) 108.70
8 Sardarpur-Rajgarh-Bagh (SH-39B) 50.43
9 Khimlasa-Khurai-Rahatgarh (SH-42) 47.48

80
 Sr. No. Name of Roads Length in kms
10 Damoh-Hata-Gaisabad-Semariya (SH-49, SH-51) 62.66
11 Hata-Patera-Kumhari & Raipura-Salaiya-Bohriband-Sihora-Hata town 91.28
(SH-51)
12 Amarpatan-Gorsai-Badera 46.50
13 Sundara-Singhpur-Kothi-Jaitwara-Birsinghpru-Semaria (MDR) 85.29
14 Sidhi-Beohari (SH-60) 71.29
15 Pachor-Chhapikheda-Jirapur-Machalpur-Soyat 86.70
Total 1,080.36
(Source: Madhya Pradesh Road Development Corporation)

Projects to Be Tendered Under BOT Scheme at State Level

Sr. No. Name of Project Chainage (kms) Length (kms) Cost (Rs. billion)
1. Gwalior-Shivpuri 122-229 107 5.3
2. Shivpuri-Guna 229-320 91 4.6
3. Guna-Biaora 332-426 94 4.3
Total 292 14.2
(Source: Madhya Pradesh Public Works Department)

List of NHDP Projects for Award in Madhya Pradesh as of June 30, 2010

Stretch NH No. Funded by Length (kms)

Phase III
Bhopal – Bareli 12 BOT 297
Bareli – Rajmarg crossing 12 BOT n.a
Rajmarg Crossing – Jabalpur 12 BOT n.a
Jhansi-Khajuraho 75 BOT 100
Obaidullaganj – Bheembetka 69 BOT 13
Ex: Expressway
(Source: National Highways Authority of India)

Roads sector in Maharashtra

Composition of roads

The total road length in Maharashtra is around 281,430 kms. (Source: CRISIL Research, Roads and
Highways, July 10, 2009).

The Maharashtra State Road Development Corporation Ltd (“MSRDC”) set up in 1996 is a wholly owned
limited company of the government of Maharashtra. It has been constituted to accelerate the development
of transport infrastructure facilities in the state.

In order to enable the development of road projects through private sector participation, the government of
Maharashtra has amended the Bombay Motor Vehicle Tax Act, 1958 to enable toll collection by private
players. Other incentives have been put in place, such as a 40% support of the project cost by the
government (where such support is required) and exemption from sales tax on machinery to be bought for
the project.

Funding

Government of Maharashtra has funded road sector projects through various resources, such as:

x Assistance from the World Bank, NABARD and HUDCO;

x Private sector investment in BOT projects; and

81
x Provisions from plan and non-plan allocations in the state budgets.

As per the state budget for FY 2010, a loan of Rs. 24.15 billion has been received from NABARD for the
improvement of roads, a part of which has been utilized for improvement of road length of 16,125 kms. For
FY 2010, an outlay of Rs. 4.75 billion has been proposed for developing 1,500 kms length of roads.

Maharashtra is the highest recipient of cess revenues from the CRF. (Source: Ministry of Road Transport &
Highways, Government of India) As per the state budget for FY 2010, works of Rs. 17.7 billion have been
approved, 4,523 kms of road length has been improved and 421 bridges have been completed till March 31,
2009. In FY10, under CRF a plan outlay of Rs. 2.50 billion is proposed for a targeted improvement of 325
kms length of roads. MSRDC implements projects with the assistance of government of Maharashtra and
market borrowings. For instance, the Mumbai-Pune Expressway (costing Rs. 16.3 billion) was funded
predominantly through debt.

BOT Projects

For the effective implementation of the State highways and district roads development programme, 169
projects amounting to Rs. 212 billion had been taken up by the government of Maharashtra for
implementation through private participation in the State Budget of FY 2008. Out of these, 90 projects
amounting to Rs. 38 billion have already been completed, 26 projects costing Rs. 36 billion are in progress,
and the remaining 53 projects amounting to Rs. 137 billion are at different stages of planning.

In the above programme, 1,367 kms road improvement, 97 bridges, 38 flyovers, 33 railway over bridges
and 95 kms six lane expressway have been completed. Projects of 1,773 kms road improvement, 20 major
bridges/flyovers, improvement to 700 kms Mumbai-Nagpur road are in progress and 648 kms four laning
works are approved. The government of Maharashtra has also decided to provide viability gap funding
where necessary. Recently, the government has approved viability gap funding of Rs. 3.5 billion for
projects costing Rs. 8.6 billion.

Approved Projects Involving Private Sector in Maharashtra

Sr. Project Name Length Project Cost

No. (kms) (Rs. billion)
1. Aurangabad - Paithan Four Lane 46 1.45
2. Shiroli (Kolhapur) to Sangali Four Lane 40 1.45
3. Baramati-Phaltan-Lonand-Shirval Four Lane 78 2.06
4. Two lane work to be done near Sawarner city in Nagpur District 11 0.57
5. Varora - Chandrapur - Ballarpur Four Lane 46 2.25
6. Four lane of Wani Brahmwalan in Yewatmal District 9 0.23
7. Akola Washim - Hingoli - Waranga Phata Four Lane 218 4.36
8. Four kms Flyover construction on the Akola - Akot road to 4 0.11
Purna river near Gandhigram Village
9. Funicular Trolley Systems to be situated in Saptashrungi Ghad 0 0.27
Tal - Kalwan Dist Nashik.
10. Set of 9 projects 405 kms + 1 12.75
pool
(Source: Maharashtra Public Works Department)

Works in Progress on BOT basis (Four Laning Road Projects)

Sr. No. Name of Project Length in Project Cost (Rs.

kms. billion)
1. Four laning of Ahemadnagar Kopargaon Road State Highway 42 1.1
No.10 (Part-I)
2. Four laning of Ahemadnagar Kopargaon Road State Highway 55 0.99

82
Sr. No. Name of Project Length in Project Cost (Rs.
kms. billion)
No.10 (Part-11)
3. Four laning of Aurangabad- Wadala Road State Highway 62 1.90
No.60
4. our laning of Nanded- Ardhapur- Waranga Fata Major State 15 0.18
Highway No.3
5. Four laning of Aurangabad- Jalna Road Major State Highway 64 1.90
No.6 including Beed-Zalta bypass
6. Four laning of Latur- Ausa Road and Two laning of Ausa- 30 0.54
Lamjana Road
7. Four laning of Ahemadnagar- Wadala Road State Highway 42 0.70
No.60
8. Four laning of Ahemadnagar- Shirur Road State Highway 56 1.58
No.60
Total 366 8.89
(Source: Maharashtra Public Works Department)

Works in Progress on BOT basis (Two Laning Road Projects)

Sr. Name of Project Length in Project Cost (Rs.

No. kms billion)
1. Construction of Mumbai bypass on Mumbai-Pune National 5 0.58
Highway No.4
2. Construction of Barshi bypass on State Highway No. 77 16 0.18
3. Improvement to Pune- Paud Road State Highway No. 60 40 0.32
4. Improvement to Bhusaval- Yaval- Amoda-Faijur State 38 0.24
Highway and reworking of bridge
5. Improvement to Sangamner- Talegaon-Kopargaon Road (Major 33 0.12
District road-6)
6. Construction of Railway Over bridge on Malegoan-Chalisgaon 0 0.08
Road
7. Two laning of Malkapur- Buldana- Chikhali Road (State 67 0.42
Highways No.176)
8. Two laning of Ankaleshwar- Bahranpur Road (Section Yaval- 50 0.15
Galangi)
Total 249 2.09
(Source: Maharashtra Public Works Department)

Works at Tender Stage on BOT basis (Four Laning Road Projects)

Sr. Name of Project Length in Project Cost

No. km. (Rs. billion)
1. Four laning of Chinchoti- Kaman-Paygaon-Anjur Phata Road Major 27 0.96
State Highway No.4
2. Six laning of Thane- Bhiwandi- Vadpa Road Special State Highway 7 1.35
including construction of two major bridges
3. Four laning of Aurangabad- Nashik (Section Vaijapur-Nashik) Road 101 1.58
State Highway No. 30 (with V.G.F. of Rs. 630 million)
4. Four laning of Jalna- Deoulgaon Raja-Berala Phata Road (with 72 0.96
V.G.F. of Rs. 280 million)
5. Four laning of Berala phata- Chikhali-Khamgaon Road (with V.G.F. 67 0.93
of Rs. 270 million)
6. Four laning of Manjarsumbha- Kali-Lokhandi Sawargaon Latur 125 2.2

83
Sr. Name of Project Length in Project Cost
No. km. (Rs. billion)
Road (with V.G.F. of Rs. 880 million)
7. Four laning of Yedshi- Latur- Nanded Road (with V.G.F. of Rs. 202 5.11
2,300 million)
8. Four laning of Khamgaon bypass on National Highway No. 6 10 0.54
9. Four laning of Jalna- Watur phata Road (with V.G.F. of Rs. 384.9 54 0.85
million)
10. Four laning of Watur phata- Jintur- Aundha-Basmat Road (with 117 2.05
V.G.F. of Rs. 810 million)
Total 782 16.53
(Source: Maharashtra Public Works Department)

List of Proposed Works on BOT basis (Four Laning Road Projects)

Sr. Name of Project Length in Project Cost

No. km. (Rs. billion)
1. Four laning of Kolhapur- Nagpur (Shiroli-Sangali)Road Major State 40 1.45
Highway No. 3)
2. Four laning of Tembhurni- Kurduwadi-Barshi-Yedshi Road State 120 2.55
Highway No. 77
3. Four laning of Baramati- Phaltan- Lonand-Shirwal Road 78 2.19
4. Four laning of Shinnar- Shirdi Road 50 1.50
5. Four laning of Aurangabad- Paithan Road State Highway No.30 45 1.45
6. Four laning of Aurangabad- Lasur- Vaijapur Road 72 2.00
7. Four laning of Akola- Patur- Malegaon-Washim-Kanhergoan Road 125 2.48
State Highway No. 204
8. Four laning of Kanhergaon-1-lingoli-Waranga Phata Road State 81 1.87
Highway No. 204
9. Four laning of Saoner bypass Road 11 0.90
10. Four laning of Chandrapur- Balharpur Road 46 3.42
Total 668 19.81
(Source: Maharashtra Public Works Department)

List of NHDP Projects Balance for Award in Maharashtra

Stretch NH Funded by Length (kms)

No.
Phase III 164
Nagpur - Wainganga Bridge Maharashtra/Chattisgarh Border 6 BOT 60
Kalamboli-Mumbra 4 BOT 20
Panvel-Indapur 17 BOT 84
BOT: Build Operate & Transfer
(Source: National Highway Authority of India)

Construction Industry

Introduction

The Indian construction industry has witnessed rapid growth over the last few years, clearly indicating the
benefit of securing “industry” status. The construction industry witnessed real GDP growth of 5.9% in
FY09, 10.0% in FY08 and 10.6% in FY07. It is estimated to have grown at 6.5% in FY10. (Source:
Economic Intelligence Service, CMIE, Monthly Review of the Indian Economy, June 2010)

84
Industry Characteristics

The construction industry is highly fragmented, as the entry barriers are low due to lower fixed capital
requirements. However, due to increased focus on public private partnership projects by the government,
the entry barriers for the companies have become more complex in terms of meeting up the prequalification
criteria and other technical requirements.

Although the industry is not fixed capital intensive, it is working capital intensive in terms of the gross
working capital requirements. Most projects, especially infrastructure, have a gestation period of more than
a year. In addition, any delay in payments from government agencies pushes up receivables.
The construction industry can be broadly classified into three sectors:

x Real estate construction (residential and commercial construction)

x Infrastructure (roads, urban infrastructure, power, railways and irrigation, etc.) and
x Industrial construction (metals, oil and gas, textiles, automobiles, etc.).
(Source: CRISIL Research, Construction Annual Review, June 2008)

Investment Scenario

Construction investments are expected to increase from Rs. 6,217 billion during FY 2004 and FY 2008 to
Rs. 12,189 billion during the period FY 2009 to FY 2012. This consists only of infrastructure and industrial
investments. Roads and power continue to occupy a substantial share in infrastructure construction
investments. This coupled with higher construction intensity augurs well for the construction industry in
terms of larger opportunity size. Investments in the industrial sector are driven by capacity
addition/expansion plans of companies operating in key sectors of the economy. However, construction
intensity being lower, the basket of opportunities arising out of industrial investments is comparatively
smaller. Metals and oil and gas, backed by higher operating rates, continue to drive investments.

Infrastructure construction investments will account for nearly 78% of the total construction investments
(infrastructure and industrial) during the period from FY 2009 to FY 2012. Also, infrastructure construction
investments are expected to double over the period from FY 2009 to FY 2013 to Rs. 9,548 billion from Rs.
5,006 billion recorded in the period from FY 2004 to FY 2008.

Industrial investments are expected to surge from Rs. 4,622 billion in the period from FY 2004 to FY 2008
to Rs. 9,209 billion in the period from FY 2009 to FY 2013. This accounts for 33% of the total investment
expected over the FY 2008 to FY 2012 period. These investments will translate into construction activity
worth Rs. 2,641 billion during FY 2009 to FY 2013 period as compared to Rs. 1,200 billion during the
previous five year period. (Source: CRISIL Research, Construction Annual Review, Sep 2009)

Economic linkages

The construction industry is strongly linked to the overall growth and development of the economy. In
2009, the industry accounted for about 7.3% of the GDP and around 50.0% of the Gross Fixed Capital
Formation in 2008. (Source: Economic Intelligence Service, CMIE, National Income Statistics, July 2009)

Types of Contracts used in the Infrastructure and Construction Industries

There are different models currently being adopted for PPPs in India which vary in the distribution of risks
and responsibility between the public and the private sectors for financing, constructing, operating, and
maintaining projects. Two important types of contracts - BOT and BOOT - are explained below, as well as
certain other contracts generally used in the Indian construction industry.

Build, Operate and Transfer (“BOT”)

Under this type of PPP contract, the Government grants to a contractor a concession to finance, build,
operate and maintain a facility for a concession period. During the life of the concession, the operator

85
collects user fees and applies these to cover the costs of construction, debt-servicing and operations. At the
end of the concession period, the facility is transferred back to the public authority. BOT is the most
commonly used approach in relation to new highway projects in India, and is also used in the energy and
port sectors.

Build, Own, Operate and Transfer (“BOOT”)

BOOT contracts are similar to BOT contracts, except that in this case the contractor owns the underlying
asset, instead of only owning a concession to operate the asset. For example, in the case of hydroelectric
power projects, the contractor would own the asset during the underlying concession period and the asset
would be transferred to the Government at the end of that period pursuant to the terms of the concession
agreement.

Design, Build, Finance and Operate (“DBFO”)

The NHAI is planning to award new highway contracts under the DBFO scheme, wherein the detailed
design work is done by the concessionaire. The NHAI would restrict itself to setting out the exact
requirements in terms of quality and other structure of the road, and the design of the roads will be at the
discretion of the concessionaire. The DBFO scheme will improve the design efficiency, reduce the cost of
construction and reduce time to commence operations, in addition to giving the concessionaire greater
flexibility in terms of determining the finer details of the project in the most efficient manner.

Item Rate Contracts

These contracts are also known as unit-price contracts or schedule contracts. For item rate contracts,
contractors are required to quote rates for individual items of work on the basis of a schedule of quantities
furnished by the customer. The design and drawings are provided by the customer. The contractor bears
almost no risk in these contracts, except escalation in the rates of items quoted by the contractor, as it is
paid according to the actual amount of work on the basis of the per-unit price quoted.

Engineering Procurement Construction/Lump-Sum Turnkey Contracts

In this form of contract, contractors are required to quote a fixed sum for the execution of an entire project
including design, engineering and execution in accordance with drawings, designs and specifications
submitted by the contractor and approved by the customer. The contractor bears the risk of incorrect
estimation of the amount of work, materials or time required for the job. Escalation clauses might exist in
some cases to cover, at least partially, cost overruns.

Operations and Maintenance (O&M) Contracts

Typically an operations and maintenance contract is issued for operating and maintaining facilities. This
could be in sectors such as water, highways, buildings and power. The contract specifies routine
maintenance activities to be undertaken at a predetermined frequency as well as break-down maintenance
during the contract period. While the contractor is paid for the routine maintenance based on the quoted
rates which are largely a function of manpower, consumables and maintenance equipment to be deployed at
the site, any breakdown maintenance is paid for on a cost-plus basis.

Front End Engineering and Design (FEED) Contracts

Ordinarily, FEED work is carried out as a part of a consultancy assignment where the consultant provides
FEED data to the project owner to enable it to take a decision on making a tender for construction. In
addition to this, the FEED is also a prerequisite to enable a contractor to bid for EPC/turnkey projects. A
FEED project can be an independent consultancy project or a part of an EPC/turnkey contract.

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Price Preference

In tenders for the projects funded by multilateral agencies such as the World Bank and the Asian
Development Bank, where there is international competitive bidding, generally there is a clause giving a
price preference of 7.5% for domestic Indian bidders. In this case, if the bid by the domestic Indian
contractor is 7.5% higher than the lowest international bid, then the employer has to award the project to
the domestic bidder. This would be subject to certain conditions specific to the project. In case the domestic
bidder is in a joint venture with an international bidder, then the domestic bidder would need to own 51%
or more in the joint venture in order to qualify for the preferential treatment.

Purchase Preference

In government tenders for projects normally less than Rs. 1.00 billion, there is a purchase preference clause
wherein a tender submitted by a Public Sector Undertaking (“PSU”) will entail 10% price preference over
other bidders. In this case, if the bid by the PSU is 10% higher than the lowest bidder, the employer
reserves the right to award the project to the PSU.

Business Models Used in the Infrastructure and Construction Industries

Although many projects are undertaken by one company, in the case of large projects, companies have
adopted two critical approaches in order to obtain and execute the contract: joint ventures and sub-
contracting. While companies have entered into joint ventures (JVs) in order to secure the projects, project
execution is normally undertaken largely through subcontracting.

Joint Ventures (JVs)

JVs are usually project-specific and are contractual obligations among two or more, either domestic or
foreign, companies. Besides pre-qualifying for projects, JVs are formed to reduce the risk exposure in large
projects and combine specialist skills. JVs are usually project-specific, with revenues/profits shared on a
pre-determined basis. For instance, in the case of road projects, all the stretches under Phase III of the
NHDP have been planned on BOT basis, and therefore, will need higher level of investments. This has
compelled smaller companies to join hands with bigger companies, and together on a joint venture basis,
bid for the projects. The bigger companies benefit from the joint venture as, to some extent, their equity and
project completion risk is shared by the other smaller members of the joint venture. The bigger company is
likely to get higher margins as compared to the smaller company as it assumes greater equity risk in the
project. The larger projects will also bring in economies of scale and thereby can reduce the construction
cost to some extent.

Sub-contracting

Sub-contract arrangements are widespread in the construction industry because of the diversified nature of
the jobs in a project. Moreover, the use of sub-contract arrangements enable larger construction companies
to maintain flexibility in operations and lower their overheads, while enabling the relatively smaller
contractors to gain expertise and increase their turnover. In sub-contracting, smaller companies undertake
tasks that are not undertaken by the principal contractor, or specialised tasks, through a sub-contract
arrangement. Normally, no more than 30% of a project can be sub-contracted. Sub-contracting practices are
adopted by both large and small contractors. While sub-contracting decreases the capital investment of
prime contractors and enhances the likelihood of timely completion and lower overhead expenses, it also
results in lower profit margins for the prime contractors.

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Process of Contract Disbursements in the Infrastructure and Construction Industries

Tendering Request for Evaluation of 1 month

2 months Qualification 2 months technical

Request for
Asking for 1 month Proposal 1 month Proposal and
Bids Evaluation Evaluation

Bids Opening 1 month 1 month 6-9 months

and Letter of Intent
Announcement and Signing of Process of Execution
of Lowest Contract mobilisation
Bidder

Indian Power Sector

Overview

The power sector in India is slowly moving from a regulated return framework to a market driven pricing
mechanism. This has provided a major boost for private entrepreneurs to enter the power sector and set up
projects. Currently, significant traction has been achieved in the generation space, while the transmission
and the distribution segment is slowly opening to the private sector. The Electricity Act, 2003 mandates the
Central Government to prepare an electricity policy in consultation with State Governments and the Central
Electricity Authority (“CEA”). The policy aims at accelerating the development of the power sector,
providing supply of electricity to all areas and protecting interests of consumers and other stakeholders.

Generation

The total installed capacity in India arose from 89,103 MW in FY 1998 to 147,965 MW by the end of FY
2009. Despite the rise in installed capacity, there has been a significant shortfall in capacity additions when
compared to the targets set over the last 10 years. The capacity addition target for the Tenth Plan (2002-
2007) was estimated at 41,110 MW, out of which only 21,095 MW was achieved. The capacity addition
target for the XIth plan has been set at 78,700 MW. Power generation increased by 3%, from 699.1 billion
kWh in FY 2008 to 723.5 billion kWh in FY 2009. Between FY 1999 and FY 2009, power generation has
increased at a CAGR of 4.9%, from 448 billion kWh to 724 billion kWh. (Source: CRISIL Research,
Power Annual Review, August 2009)

Transmission and Distribution

The transmission segment plays a key role in transmitting power continuously to various distribution
entities across the country. Further, the transmission sector needs concomitant capacity additions in line
with the generation capacity additions to enable seamless flow of power. The government's focus on
providing electricity to rural areas has led to the power T&D system being extended to remote villages. The
total length of transmission lines in the country has increased from 2.50 million circuit kilometres (ckm) in
1980-81 to 6.94 million ckm in 2006-07. (Source: CRISIL Research, Power Annual Review, August 2009)

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In India, the transmission and distribution system is a three-tier structure comprising regional grids, state
grids and distribution networks. The five regional grids, structured on a geographical contiguity basis,
facilitate transfer of power from a power surplus state to a power deficit state.

A reliable transmission and distribution (“T&D”) system is important for the proper and efficient transfer
of power from generating stations to load centers. A T&D system comprises transmission lines, substations,
switching stations, transformers and distribution lines. The transmission system in India operates at several
voltage levels:
x Extra high voltage (EHV): 765 kV, 400 kV and 220 kV
x High voltage: 132 kV and 66 kV
x Medium voltage: 33 kV, 11 kV, 6.6 kV and 3.3 kV
x Low voltage: 1.1 kV, 220 volts and below

National Grid

The regional grids are to be gradually integrated to form a national grid, whereby surplus power from a
region could be transferred to another region facing power deficits, thereby facilitating a more optimal
utilization of the national generating capacity. The process of setting up the national grid was initiated with
the formation of the central sector power generating and transmission companies - National Thermal Power
Corporation (“NTPC”), National Hydroelectric Power Corporation (“NHPC”) and Power Grid Corporation
of India Limited (“PGCIL”). PGCIL was given the responsibility for planning, constructing, operating and
maintaining all inter-regional links and taking care of the integrated operations of the national and regional
grids. The present inter-regional power transfer capacity of 20,750 MW is expected to be enhanced to
37,150 MW by 2012. Based on the expected generation capacity addition in the Eleventh Plan, an
investment of about Rs. 750.00 billion is envisaged in the Central sector and Rs. 650.00 billion is envisaged
in the State sector. (Source: Ministry of Power, Government of India; CRISIL Research, Power Annual
Review, August 2009)

Distribution is the last and critical leg in the supply of electricity, reaching end consumers such as
residential, commercial, agricultural and industrial segments. Distribution has several components such as
pricing to various customers, cross subsidization etc. However, as this is a lucrative business, it has been
held by the respective state entities, with private participation being marginal (only 5-7% of the total).
(Source: CRISIL Research, Power Annual Review, August 2009)

The government has begun a number of initiatives to improve the electricity supply to villages. As part of
its initiatives, the power distribution system has been extended to reach remote villages. At the end of FY
2009, a total of 488,926 villages were electrified. However, T&D losses in the country remain high at
around 28%, compared to an average 10-15% in developed countries. This is because of inadequate
metering and theft of electricity. High T&D losses are also attributed to the T&D of a large amount of
power at low voltage - the rise in rural electrification has resulted in the proliferation of low voltage (less
than 11 kV) transmission lines. T&D losses rose from 22.27% in 1995-96 to an estimated 26.91% in FY
2008. The losses peaked at 33.98% in FY 2002, but since have registered a declining trend. (Source:
CRISIL Research, Power Annual Review, August 2009)

To improve distribution, the government formulated the Accelerated Power Development Reform
Programme (“APDRP”). This programme aims to improve the financial viability of state power utilities,
reduce aggregate technical and commercial losses to around 10%, improve customer satisfaction, increase
reliability and quality of power supply.

Under this programme, loans, grants and incentives will be offered to states pursuing distribution reforms.
It will address the problems faced by states at a micro level (consumer, feeder, substation) as well as macro
level (circle, state national), entailing intervention at six stages. These funds will be utilized to upgrade and
modernize their sub-T&D (below 33 kV or 66 kV) networks. The APDRP has two components -investment
and incentive components. Under the investment component, the government provides assistance worth
50% of the project cost, of which 25% is a grant and 25% is a loan. The balance 50% has to be arranged by
the utilities either through internal resource generation or from financial institutions or from other sources

89
of funds (such as state government, the Rural Electrification Corporation, Life Insurance Corporation,
ICICI, SIDBI and market bonds). Special category states such as Jammu and Kashmir, Himachal Pradesh,
Uttaranchal and Sikkim receive full assistance from the Central government, out of which 90% is grant and
the remaining 10% is loan.

As part of the incentive component, the utilities are rewarded for actual cash loss reductions by waiving
half of the cash losses reduced by way of free grant. The cash losses are calculated as the net of subsidy and
receivables. Up to March 31, 2008, the funds released under this component were Rs. 28.8 billion. The
disbursement for FY 2007 and FY 2008 was Rs. 10.2 billion and Rs. 14.0 billion, respectively. (This
includes both the investment and incentive components.) (Source: CRISIL Research, Power Annual
Review, August 2009)

New Restructured-APDRP

As per the new APDRP policy, projects under the scheme shall be taken up in two parts:
x Part-A includes the projects for establishing baseline data and IT applications for energy
accounting/auditing and IT-based consumer service centers.
x Part-B includes the regular distribution strengthening projects

Private sector participation in India in distribution has been a success story in India with BSES, BEST,
CESC and Tata Power having successfully provided last mile distribution. Distribution through bidding for
the privatization of distribution in thirteen states that have unbundled/corporatized their State Electricity
Boards – expected to take place over the next 2-3 years. (Source: http://infrastructure.gov.in/power.htm)

Till December 2008, the Government of India had sanctioned 571 projects, amounting to Rs. 170.33 billion
to strengthen and upgrade sub-transmission and distribution systems of the various states. The states have
so far utilized Rs. 126.07 billion. An amount of Rs. 28.79 billion has also been released to nine states for
achieving reduction in cash losses under the incentive component of the programme. (Source: CRISIL
Research, Power Annual Review, August 2009)

Private investments in transmission

In 1998, the Central government enacted the Electricity Laws (Amendment) Act, which recognized
transmission as an independent activity (distinct from generation and distribution), and allowed private
investments in the sector. According to the government policy, the state transmission utility (“STU”), state
electricity board (“SEB”) or their successor entities and the central transmission utility (“CTU”) PGCIL
will identify transmission projects for the intra-state and inter-state/inter-regional transmission of power,
respectively. The STUs and CTU will invite private companies to implement these projects through an
independent private transmission company (“IPTC”) or on a JV basis.

The IPTC would be selected through an international competitive bidding process. The primary criteria for
selection would be the quoted transmission service charges (“TSC”) and the technical, managerial and
financial capabilities of the bidders. In the case of JV companies, the CTU and STUs could own an equity
stake of up to 26%. JV partners could also be selected on the basis of an international competitive bidding
process. Further, the primary selection criteria would be the technical and financial strength of the bidders.
Transmission service charges would be determined on a cost plus basis under the supervision of the CERC
or SERCs. The IPTC's role will be limited to the construction, ownership and maintenance of transmission
lines. Operations of the grid, including load dispatch, scheduling and monitoring, will be undertaken by the
STUs and the CTU at the intra-state and inter-state/inter-regional level, respectively. The CTU and STUs
will be involved in the development phase for obtaining project approvals and various regulatory and
statutory clearances (such as environment and forest clearance and securing right-of-way), and will transfer
the same to the selected private companies. (Source: CRISIL Research, Power Annual Review, August
2009)

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 BUSINESS

Overview

We build and operate roads and bridges in India on a build, operate and transfer (“BOT”) basis. We believe
we currently operate one of the highest number of toll-based BOT projects in India. In addition, to BOT
projects, we also (1) engineer and design, procure the raw materials and equipment for and construct roads,
bridges, distribution transformers, electricity substations, commercial buildings, industrial buildings and
institutional buildings for third parties as well as perform maintenance for third parties, (2) manufacture
and sell ready-mix concrete (“RMC”), bitumen and pre-cast concrete poles and (3) collect tolls on roads
and bridges owned and constructed by third parties.

Our business is organised into four divisions:

x the BOT division;

x the engineering, procurement and construction (“EPC”) division;
x the RMC and bitumen division; and
x the toll collection contract division.

We can trace our origins back to 1976. Prior to fiscal 1997, we were engaged solely in the engineering and
construction of residential, commercial, industrial and institutional buildings. In fiscal 1997, having
acquired EPC skills, we also turned our attention to bidding for contracts for toll roads and toll bridges on a
BOT basis. We were awarded our first BOT project, the Dhule bypass in Maharashtra, in fiscal 1997 and
completed the construction of the road in the same fiscal year. In fiscal 2000 we began manufacturing
RMC solely for use by our EPC division. In fiscal 2002 we began to manufacture RMC to sell to third
parties as well as for use by our EPC division. In fiscal 2005 we began processing bitumen to a higher
grade at our facility in Pune for use in road projects. Having developed systems and procedures for
collecting tolls on our BOT projects, including developing our own proprietary computerised toll revenue
auditing system, we tendered for and were awarded our first contract to collect the tolls on a road owned
and constructed by a third party. In fiscal 2009 we began undertaking EPC work in the power sector when
we were awarded a contract by Maharashtra State Electricity Distribution Company Limited for, among
other things, the construction and commissioning of sub-transmission lines, distribution lines, power
transformers and new sub-stations. In September 2008 we entered into agreements for constructing and
developing two shopping malls on a BOT basis. In September 2009 we began manufacturing pre-cast
concrete poles. In April 2010, the Government of Maharashtra issued us a letter of allotment for us develop
a 1,500 KW per hour hydro electric power plant in Waghur, Maharashtra on a build, own, operate and
transfer (“BOOT”) basis.

Our head office is in Nashik, Maharashtra and our operations currently reach across the states of
Maharashtra, Madhya Pradesh, Chhattisgarh, Rajasthan, Karnataka and Orissa. In the past, we have also
undertaken work in Gujarat, Goa and Tamil Nadu, Uttaranchal, the National Capital Territory of Delhi and
the union territories of Dadra and Nagar Haveli and Daman and Diu.

BOT Division. We currently operate or have an interest in 23 BOT road projects totalling approximately
3,498.35 kilometres of lanes in Maharashtra, Madhya Pradesh, Chhattisgarh, Karnataka and Orissa the
concessions for which were awarded on a BOT basis. The weighted average concession period (including
toll collection period) for these 23 BOT road projects was 21.09 years as at March 31, 2010. In order to
meet specific eligibility requirements for certain larger BOT projects, including requirements relating to
particular types of experience and financial resources, we have entered into project-specific joint ventures
or special purpose vehicles with other companies. Out of the 23 BOT projects mentioned above, 17 are in
operation and six are under construction. Of the 17 BOT projects in operation:

x four are operated by the Company;

x 11 are operated by the subsidiaries of the Company/joint ventures controlled by the Company;
x one is operated by an associate company in which the Company has a 50% interest; and

91
x one is operated by a joint venture in which the Company has a 5% interest.

Of the six BOT projects under construction:

x four are being developed by subsidiaries of the Company;

x one is being developed by PNG Tollway Private Limited, in which the Company has a 26%
interest; and
x one is being developed by Jaora Nayagoan Toll Road Company Private Limited (“Jaora Nayagoan
Toll Road Company”), in which the Company has a 13.76% beneficial interest.

In addition, we have built, operated and successfully transferred three BOT projects at the end of the
concession periods, thereby experiencing the complete life cycle of a BOT project.

In order to capitalize on our EPC commercial building experience, we entered into two agreements in
September 2008 to develop two shopping malls in Kalyan, Maharashtra on a BOT basis. The construction
of these projects has not yet begun. These two malls will have an estimated total leasable area of 12,453 sq.
metres. These two shopping malls will be the first commercial buildings we will have built to lease out to
third parties. We do not currently plan to undertake any further development of commercial property.

In April 2010, the Government of Maharashtra issued us a letter of allotment for us to build, own and
operate a 1,500 KW per hour hydro electric power plant in Waghur, Maharashtra on approximatley 5,000
sq. metres of land currently owned by the Government of Maharashtra. We are required to transfer
ownership of the power plant to the Government of Maharashtra 30 years from the date of the signing of
the formal agreement for the project, which has yet to be executed. We intend to bid for more power plant
projects to be developed on a BOOT basis.

EPC Division. Our EPC division primarily engineers and designs, procures the raw material and equipment
for and constructs roads and bridges for our BOT division and third parties. Our EPC division also (a)
maintains and repairs existing roads for our BOT division, (b) constructs and modernises power distribution
networks, comprising distribution transformers and electricity substations, for third parties and (c)
constructs commercial, industrial and institutional buildings for third parties. We own a large fleet of
construction equipment. As at May 31, 2010, the Company, its subsidiaries and its predecessor entities had
constructed 44 roads and bridges and built over 5.4 million square feet of commercial, industrial and
institutional projects. As at May 31, 2010, the Company’s Order Book, which comprises the unfinished and
uncertified portion of projects that we have been awarded, was Rs. 16,153.64 million. The Company’s
Order Book as at May 31, 2010 does not include the construction of the NH-6 Sambalpur-Baragarh road in
Orissa for a fixed fee of Rs. 10,080.00 million and the construction of the NH-4 Belgaum-Dharwad road in
Karnataka for a fixed fee of Rs. 6,300.00 million. The Company received the work orders for these projects
in June 2010 from Ashoka Belgaum Dharwad Tollway Private Limited and Ashoka Sambalpur Baragarh
Tollway Private Limited, respectively, entities in which the Company has a 98.67% beneficial interest.
These BOT projects were awarded to us in May 2010 and the concession agreements were signed in June
2010.

We received an ISO 9002 in 1998, an ISO 9001:2000 in 2001 for Certificate for Quality Assurance, an ISO
14001:2004 in 2005 for our environmental management system and QHSAS18001:2007 in 2007 for safety.
In February 2010 we received an ISO 14064 for having our greenhouse gas emissions independently
monitored and reviewed on a regular basis. According to ISC, we are the first Indian infrastructure
construction company to receive the ISC certification for Quality (ISO 9001:2000), Environment (ISO
14001:2004) and Occupational Health and Safety Management System (OHSAS 18001:1999) upgraded to
(OHSAS 18001:2007) for Integrated System Management in relation to the design, development,
construction of roads, bridges, industrial buildings, residential and commercial complexes, production and
sale of ready-mix concrete, operation and maintenance of road infrastructure projects, and power
transmission and distribution projects. We have also received numerous construction awards, including the
Nasik Industries and Manufacturers’ Association ‘Excellence Award 2001’ - First Prize in ‘Large Scale
Industries’ and the Indian Institute of Bridge Engineers ‘Most Outstanding Bridge - National Award 2001’.

92
In March 2010, we were awarded a CIDC Vishwakarma Award 2010 in the category of ‘Best
Professionally Managed Company’ with an annual turnover more than Rs. 5,000 million.

RMC and Bitumen Division. Our RMC and bitumen division sells ready-mix concrete and bitumen and
supports the EPC division by ensuring that it has an adequate and timely supply of high-quality RMC and
bitumen. We have 14 RMC plants with a total production capacity of 650 cubic metres per hour and 86
concrete transit trucks and 19 concrete pumps. This division also sells and processes bitumen to a higher
grade for use in road projects and supports our EPC division by supplying it with bitumen. We have one
plant in Pune for the processing of bitumen with a capacity of 60 metric tonnes per day.

Toll Collection Contract Division. We set up our toll collection contract division to leverage our
experience of collecting tolls on our BOT projects and our proprietary computerised toll revenue auditing
system. To date, we have entered into four agreements to collect tolls on roads/bridges owned and
constructed by third parties, although our last contract expired in February 2007.

As at March 31, 2010, our work force consisted of 2,412 full-time employees, including 1,153 technical
staff.

For fiscal 2009 and fiscal 2010 we had a consolidated total income of Rs. 5,333.61 million and Rs.
8,142.05 million, respectively, and a consolidated net profit attributable to shareholders of Rs. 348.14
million and Rs. 803.67 million, respectively.

Set forth below is our organisational chart, including the name of each concession operator, the Company's
beneficial interest in the concession operator and the name of the BOT project in parentheses and italics:

93
 Company

Toll Collection EPC Division BOT Division RMC and Bitumen

Contract Division Division

99.80% 50.99 26%

Ashoka Ashoka Pre- L&T PNG Tollway Private

Technologies Pvt. Con Pvt. Ltd. Limited (NH 3
Ltd Pimpalgaon – Nashik –

100% 86.74%(1) 100% 100% 50% 5%

Company's BOT projects

Company's BOT projects Viva Highways Ashoka Infrastructure Ashoka Jayaswals Ashoka
(Ahmednagar – Karmala Road) Private Limited Limited Infraways Private Ashoka Bridgeways
(Ahmednagar – Karmala Limited Infrastructure
(Nashirabad Railway-over Bridge) (Anawali –
Road) (Indore – Edalabad (Pune – Shirur Road) Private Limited
(Sheri Nallah Bridge) Road) (Dewas Bypass) (Wainganga Kasegaon Road)
(Nashirabad Railway-over Bridge)
(Ahmednagar – Aurangabad Road)
Bridge)
(Shopping mall – campus of Rukmin,
(Sheri Nallah Bridge)
Bai Hospital, Kalyan, Maharashtra)
99.99
(Shopping mall – (Ahmednagar
Adharwardi, Kalyan
– 99.99% 98.67% 98.67%
City, Maharashtra)
Aurangabad Road)
(Waghur Hydro Electric Power Plant) Ashoka Sambalpur Ashoka Belgaum
(8) Ashoka Infrastructures Ashoka High-way Ad Baragarh Tollway Dharwad Tollway
Private Limited Private Limited
(Dhule Bypass) (6 foot-over-bridges (NH-6 Sambalpur- (NH-4 Belgauvn –
in Mumbai) Bargarh Rd)(6) Dharwhd)(7)

99.89 52 02 53.18 13.76

Ashoka-DSC Katni Bypass Ashoka Highways (Bhandara) Ashoka Highways Jaora Nayagoan Toll Road
Road Pvt. Ltd. Limited (Durg) Limited Company
(NH–6 322.4 km-405 km
(Katni Bypass) (NH–6 Bhandara Road)(2) )(3) (Jaora–Nayagaon Road)(4)

(1) The Company owns 74.00% of the shares directly and 12.76% of the shares indirectly through its 49.00% interest in Viva Infrastructure Private
Limited, the legal owner of 26% of the shares of Viva Highways Private Limited.
(2) The road is still being constructed. The Company has entered into a shareholders agreement with India Infrastructure Fund and IDFC Limited
pursuant to which the Company’s beneficial interest in this subsidiary is expected to decrease to 51% before the end of fiscal 2011. For details, see the
section entitled “History and Certain Corporate Matters” on page 137 of this Prospectus.
(3) The road is still being constructed. The road will go from the end of the Durg Bypass, Chattisgarh to the Maharashtra border. The Company has
entered into a shareholders agreement with India Infrastructure Fund and IDFC Limited pursuant to which the Company’s beneficial interest in this
subsidiary is expected to decrease to 51% before the end of fiscal 2011. For details, see the section entitled “History and Certain Corporate Matters” on
page 137 of this Prospectus.

(5) The Company has an 13.76% beneficial interest in Jaora Nayagaon Toll Road Company through its 49.00% ownership of Viva Infrastructure Private
Limited, which owns 13.84% of the shares in Jaora Nayagaon Toll Road Company, and through its 86.74% interest in Viva Highways Pvt. Ltd., which
owns 8.05% of the shares in Jaora Nayagaon Toll Road Company.
(6) The road is still being constructed. The road will go from Sambalupur, Orissa to Baragarh, Orissa/Chattisgarh border. The Company has a 98.67%
beneficial interest in Ashoka Sambalpur Baragarh Tollway Private Limited: it owns 45% of the shares directly, 45% of the shares indirectly through its
100% subsidiary Ashoka Infraways Private Limited, which owns 45% of the shares, and 8.67% of the shares indirectly through Viva Highways Private
Limited, which owns 9.99% of the shares. For details, see the section entitled “History and Certain Corporate Matters” on page 137 of this Prospectus.
(7) The road is still being constructed. The road will go from Belgaum to Dharwad, Karnataka. The Company has a 98.67% beneficial interest in Ashoka
Belgaum Dharwad Tollway Private Limited: it owns 45% of the shares directly, 45% of the shares indirectly through its 100% subsidiary Ashoka
Infraways Private Limited, which owns 45% of the shares, and 8.67% of the shares indirectly through Viva Highways Private Limited, which owns 9.99%
of the shares. For details, see the section entitled “History and Certain Corporate Matters” on page 137 of this Prospectus.

(8) The hydro electric power plant is being developed on a build, own, operate and transfer basis.

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Our Strengths

We believe the following are our key strengths.

Well-established player in toll-based BOT projects in India with a proven ability to partner with other
well-established players in the industry

We were an early mover in India in the BOT project sector. We were awarded our first BOT project, the
Dhule bypass in Maharashtra, in fiscal 1997 and completed the construction of the road in the same fiscal
year. The Dhule Bypass was amongst the first toll-based BOT projects in Maharashtra. We believe we
operate one of the highest number of toll-based BOT projects in India. We currently own or have an
interest in a total of 17 BOT projects in operation comprising approximately 1,099.60 kilometres of lanes.
Four of the Company’s subsidiaries, one of its associate companies and one company in which it has an
13.76% investment interest have been awarded the concessions for six additional BOT projects, comprising
2,398.75 kilometres of lanes, the construction of which has not been completed. Our early-mover status
and continued presence in the toll-based BOT project sector provides us with a platform to further develop
our BOT presence and to win EPC contracts for road and bridge construction projects. In addition, other
well-established players, such as Larsen & Toubro Limited, SREI Infrastructure Finance Limited and
Infrastructure Development Finance Company Limited, have chosen us to partner with them for BOT
projects.

Integrated business model, including our own traffic study expertise and proprietary toll collection audit
system

We are able to undertake all activities related to a BOT road project in-house - from tendering for the
project through to the collection of tolls. This helps to ensure the timely completion of projects, reduces our
reliance on subcontractors and decreases our costs.

We prepare all tendering documents. Our ability to tender appropriately for BOT projects depends heavily
on the assessment of the future traffic patterns on the proposed road or bridge and the amount of tolls to be
collected. Over the course of our more than 14 years in toll-based BOT projects, we have developed an in-
house traffic study team, which has the dual responsibility of conducting pre-bidding traffic surveys and
monitoring toll collections. Our in-house traffic study team has an in-depth knowledge of traffic patterns
not only in Maharashtra, Madhya Pradesh and Chhattisgarh, where we currently have BOT projects, but
also in Tamil Nadu, Karnataka, Andhra Pradesh, Gujarat, Rajasthan, Uttar Pradesh and Punjab. We believe
our in-house traffic forecasting capacity and expertise strengthens our ability to tender effectively for BOT
projects and toll collection contracts.

Our EPC division, with its experienced team of engineers and skilled workman and its fleet of construction
equipment (with a gross block value of Rs. 1,347.35 million as at March 31, 2010), constructs and
maintains the projects. Our RMC and bitumen division manufactures and supplies the concrete and
bitumen, depending on the type of road.

As tolls are paid in cash, we utilise our own toll collection audit system, which includes cameras installed
at toll booths and our own proprietary software, to minimise the chance of cash pilferages. The system
enables us to monitor our toll collection on a real-time basis.

Our integrated structure enables us to bid for a BOT project with confidence in our ability to complete and
operate the project on a profitable basis. It also allows us to capture the entire value in the BOT
development business, including EPC margins, developer returns and operation and maintenance margins.

Long standing history of timely execution of projects

Most of our projects have been executed on time or prior to the scheduled completion date. We constructed
a 90-metre long bridge on the Mahad-Pandharpur state highway in 38 days compared with the scheduled

95
construction time of 12 months. The construction of a 100-metre long bridge called the Pargaon Bridge, a
BOT project, was completed in 65 days compared with the scheduled construction time of 18 months.
Both of these construction feats are recorded in Limca Book of Records. Our EPC contracts generally
provide for bonus payments if we complete construction of a project prior to the scheduled completion
date. For example, we received Rs. 19.00 million for the early completion of the construction of the Phalodi
to Puchpadra road, an EPC contract, which was completed 95 days prior to the scheduled completion date.
If we complete the construction of a road or bridge the subject of a BOT agreement before the scheduled
completion date, we generally get the benefit of collecting tolls on that project earlier than anticipated,
which increases the total period for collecting tolls, thereby increasing our revenue from the project. There
have been no instances where our performance guarantees have been invoked by our clients.

Healthy Order Book position

As at May 31, 2010, the Company’s Order Book totalled Rs. 16,153.64 million, Rs. 14,089.22 of which
related to work for third parties and associated companies. In our industry, the Order Book for third parties
and associated companies is considered an indicator of potential future performance since it represents a
significant portion of our potential EPC revenue stream.

Proven track record of being able to leverage BOT projects on completion of construction.

We have been able to leverage off certain of our completed BOT projects to expand our business. On
completion of the construction of 15 out of 20 of our BOT projects, we have refinanced the debt taken for
the construction of the project and increased the debt outstanding on the project to as much as 150% of the
cost of the project. This provides us with increased cash, which enables us to bid for more BOT projects.

Experienced management and a well-trained employee base

Ashok Katariya, our Chairman, has over 33 years of experience in the construction industry and is a first
generation entrepreneur. Satish D. Parakh, our Managing Director, has over 28 years’ experience in the
construction industry. Sunil B. Raisoni, a director of the Company, has over 26 years’ experience in the
construction industry. Messrs. Parakh and Raisoni both joined the Company as employees and they have
been working with Ashok Katariya for more than 26 years.

We believe we have a well-trained employee base, which enables us to construct various kinds of projects
with different technical requirements. As at March 31, 2010, we employed 2,412 full-time employees,
including 1,153 technical staff.

Our Strategy

Focus on executing larger projects in the Indian road infrastructure sector

As the road infrastructure sector grows, we believe that it will be increasingly characterised by larger
projects. As a result, we intend to bid on larger BOT projects. The primary benefit of this strategy is that
larger projects typically generate higher profit margins than smaller projects. The fixed costs associated
with large projects, such as employee expenses, system automation expenses and administration expenses,
typically represent a lower proportion of the total costs of the project than those incurred in smaller projects
and the overhead costs involved in initiating the project and supplying materials and machinery also
typically represent a lower percentage of the total costs when compared with smaller projects. The
Construction Industry Development Council has forecast that Rs. 2,540 billion will be spent on
constructing roads in India during the Eleventh Five Year Plan (2007-2012).

We have been progressively executing larger projects. For example, our first BOT project was the Dhule
Bypass, the Project Cost for which was Rs. 58.17 million. Except as noted otherwise, all project costs for
BOT projects stated in this Prospectus comprise the EPC costs, the interest paid on the debt financing
during construction of the project and other expenses incidental to the project during the construction
period (the “Project Cost”). In 2006, we were awarded the concession for the NH-6 Bhandara road in

96
Maharashtra, the estimated Project Cost of which is Rs. 5,350.00 million. In 2006, we were awarded the
concession for the NH-6 Durg Bypass, Chhattisgarh - Maharashtra border road, the estimated Project Cost
of which is Rs. 5,870.00 million. In November 2009, the Company entered into an agreement with PNG
Tollway Private Limited, in which the Company has a 26% interest, for the Company to provide the EPC
services for the construction of the 452 lane kms Maharashtra Pimpalgaon-Nashik-Gonde section of the
NH-3 road, except for an elevated corridor, for a total of Rs. 5,805.40 million and utility on sanction basis.
In May 2010, we were awarded the concession for the NH-6 Sambalpur-Bargarh road in Orissa, the
estimated EPC cost of which is Rs. 10,080.00 million. In May 2010, we were awarded the concession for
the NH-4 Belgaum-Dharwad road in Karnataka, the estimated EPC cost of which is Rs. 6,300.00 million

Increase our EPC division’s revenue from third parties

We plan to focus on growing our EPC division’s revenue from third parties. We believe this will provide
us with a more diverse income stream and allow us to take advantage of the demand for contracting-only
projects. It will also help to ensure that our EPC division operates at its optimal capacity. In fiscal 2009,
we began undertaking EPC work in the power sector when we were awarded a contract by Maharashtra
State Electricity Distribution Company Limited for the construction and commissioning of sub-
transmission lines, distribution lines, power transformers and new sub-stations, the augmentation of
existing sub-stations and distribution transformers, and renovation and modernization works. We have been
consistently generating work in this sector from Maharashtra State Electricity Distribution Company
Limited and the Company’s Order Book as at May 31, 2010 included Rs. 6,002.48 million worth of power-
related EPC contracts. We plan to focus on getting additional work in this sector from other companies in
the power sector.

Continue to leverage BOT projects once construction has been completed

In order to increase the cash available to us to expand our business, we plan to continue to leverage our
BOT projects once the construction phase of the project is complete. On completion of the construction of
15 out of the 20 BOT projects we have built (including BOT projects owned by associates), the debt taken
for the construction of the project has been refinanced and the debt outstanding on the project has been
increased to as much as 150% of the EPC cost of the project.

Enter into new contracts for operation, maintenance and collection of tolls on roads and bridges
constructed by third parties

In addition to the construction of new roads, we believe there will be opportunities to win maintenance
contracts and toll collection contracts on roads that have already been built. As a result, we also plan to bid
for road operation and maintenance contracts and toll collection contracts. With our long track record in the
road sector and our integrated business model, we believe we are well positioned to take advantage of these
opportunities.

Our Services and Products

We build and operate roads and bridges in India on a build, operate and transfer basis and currently operate
17 toll-based BOT projects in India. In addition to our BOT projects, we also engineer and design, procure
the raw materials and equipment for and construct roads, bridges, commercial buildings, industrial
buildings and institutional buildings for third parties, and manufacture and sell ready-mix concrete. Our
business is organised into four divisions:

x the BOT division;

x the EPC division;
x the RMC and bitumen division; and
x the toll collection contract division.

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BOT Division

Typically, BOT contracts require the grantee of the concession to construct a road, bridge or building and
operate and maintain the asset over a pre-defined period (known as the concession period) at its own
expense. In return, it is granted the right, in the case of roads and bridges, to collect tolls from vehicles
using the road or bridge during the concession period, or in the case of a commercial building, to collect
rent during the concession period. At the end of the concession period, the obligation to maintain the road,
bridge or building and the right to collect tolls or rent reverts to the entity that granted the concession.

Our BOT division currently earns revenue from the tolls we collect on our BOT road projects, except for
six foot bridges in Mumbai where we earn revenue from the sale of advertising space on the foot bridges.

BOT Road Projects

In order to meet specific eligibility requirements for certain larger BOT road projects, including
requirements relating to particular types of experience and financial resources, we have entered into
project-specific joint ventures or special purpose vehicles with other companies, including industry leading
players such as Larsen & Toubro Limited, SREI Infrastructure Finance Limited and Infrastructure
Development Finance Company Limited.

We currently operate or have an interest in 23 roads and bridges totalling approximately 3,498.35
kilometres of lanes in Maharashtra, Madhya Pradesh, Chhattisgarh, Karnataka and Orissa, the concessions
for which were awarded on a BOT basis. Out of the 23 BOT projects mentioned above, 17 are under
operation and six are under construction. Of the 17 BOT projects under operation:

x four are operated by the Company;

x 11 are operated by the subsidiaries of the Company/joint ventures controlled by the Company;
x one is operated by an associate company in which the Company has a 50% interest; and
x one is operated by a joint venture in which the Company has a 5% interest.

The 17 BOT projects in operation comprise approximately 1,099.60 kilometres of lanes. Summary details
of these 17 BOT projects are set forth in the table below.

Name of Project Lane Name of Project Cost Date Toll Concession

Kilometres Concession in Collection Period
Operator Rs. Million Began Expires
(Company’s
Beneficial Interest)
Indore – Edalabad 406 Viva Highways 1,652.88 Stage 1 – April 2017
Road Private Limited November
(86.74%)(1) 2002
Stage 2 –
August 2003
Stage 3 –
February
2004
Pune – Shirur 216 Ashoka 1,610.05 July 2005 October 2015
Road Infrastructure
Limited
(100%)
Ahmednagar – 168 The Company 1,026.64 May 2008 September
Aurangabad Road (100%) 2016
Katni Bypass 35 Ashoka-DSC Katni 708.58 February September
Bypass Road 2008 2018
Private Limited

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Name of Project Lane Name of Project Cost Date Toll Concession
Kilometres Concession in Collection Period
Operator Rs. Million Began Expires
(Company’s
Beneficial Interest)
(99.89%)
Dewas Bypass 40 Ashoka Infraways 613.22 May 2004 August 2015
Private Limited
(100%)
Ahmednagar – 160 The Company 503.51 August 1999 November
Karmala Road (100%) 2015
Wainganga Bridge 26 Jayaswals Ashoka 408.69 March 2001 February
Infrastructure 2018
Limited (50%)(1)
Nashirabad 8 The Company 146.97 July 2000 November
Railway-Over (100%) 2010
Bridge
Sheri Nallah 7 The Company 142.22 October 2000 June 2015
Bridge (100%)
Dhule Bypass 12 Ashoka 58.17 March 1998 January 31,
Infrastructures 2011
(99.99%)
Foot-Over-Bridge N/A Ashoka High-Way 6.61 April 2002 August 2016
in Mumbai Ad
(Godrej) (99.99%)
Foot-Over-Bridge N/A Ashoka High-Way 7.18 January 2003 August 2012
in Mumbai (Priya- Ad
darshani) (99.99%)
Foot-Over-Bridge N/A Ashoka High-Way 7.57 May 2003 August 2017
in Mumbai Ad
(Pravin Hotel) (99.99%)
Foot-Over-Bridge N/A Ashoka High-Way 6.60 July 2003 August 2018
in Mumbai Ad
(Tagore Nagar) (99.99%)
Foot-Over-Bridge N/A Ashoka High-Way 4.25 February August 2013
in Mumbai (Louis Ad 2003
Wadi) (99.99%)
Foot-Over-Bridge N/A Ashoka High-Way 4.79 July 2002 August 2013
in Mumbai Ad
(Mental Hospital) (99.99%)
Anawali – 22 Ashoka Bridgeways 73.53 March 2004 May 2017
Kasegaon Road (5%)
(1) The Company owns 74.00% of the shares directly and 12.74% of the shares indirectly through its 49.00% interest
in Viva Infrastructure Private Limited, the legal owner of the other 26.00% of the shares in Viva Highways Private
Limited.
(2) An associate of the Company.

Further details on these BOT projects are set forth in this section below under the heading “BOT Road
Projects in Operation” on page 102 of this Prospectus.

We have been awarded the concessions for six BOT projects, comprising approximately 2,398.75
kilometres of lanes, the construction of which is in progress. Of the six BOT road projects which are in
progress:

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x four are being developed by subsidiaries of the Company;
x one is being developed through an associate of the Company; and
x one is being developed by a company in which the Company has a 13.76% beneficial interest.

Summary details of these six BOT projects are set forth in the table below.

Name of Lane Name of Estimated Estimate of Scheduled Concession

Project Kms Concession Project Construction Completion Period
Operator Cost in Completed Date Expires
(Company’s Rs. million as at May
Beneficial 31, 2010
Interest)
NH-6 320 Ashoka 5,350.00 96.14% July 2010 March 2028
Bhandara Road Highways
(Bhandara)
Limited
(52.02%)(1)
NH-6 Durg 332 Ashoka 5,870.00 68.15% December March 2028
Bypass, Highways 2010
Chhattisgarh - (Durg) Limited
Maharashtra (53.18%)(2)
Border Road
Jaora – 319 Jaora 8,180.00 93.00% August 2010 February
Nayagaon Nayagaon Toll 2033
Road Road
Company
Private
Limited
(13.76%)
NH-3 452 PNG Tollway 4.70% June 2013 January
Pimpalgaon – Private 14,070.30(3) 2029
Nashik – Limited
Gonde road (26.00%)
NH-4 454 Ashoka 6,300.00(4) 0% Yet to start 30 Years
Belgaum- Belgaum from the
Dharwad Road Dharwad financial
Tollway closure date
Private (which is
Limited scheduled to
(98.67%) occur on or
prior to
December
29, 2010)
NH-6 408 Ashoka 10,080.00(5) 0% Yet to start 30 Years
Sambalpur- Sambalpur- from the
Baragarh Road Baragarh financial
Tollway closure date
Private (which is
Limited scheduled to
(98.67%) occur on or
prior to
December
29, 2010)

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(1) The Company has entered into a shareholders agreement with India Infrastructure Fund and IDFC Limited pursuant
to which the Company’s beneficial interest in this subsidiary is expected to decrease to 51% before the end of fiscal
2011. For details, see the section entitled “History and Certain Corporate Matters” on page 137 of this Prospectus.
(2) The Company has entered into a shareholders agreement with India Infrastructure Fund and IDFC Limited pursuant
to which the Company’s beneficial interest in this subsidiary is expected to decrease to 51% before the end of fiscal
2011. For details, see the section entitled “History and Certain Corporate Matters” on page 137 of this Prospectus.
(3) This is the estimated EPC cost and does not include any interest paid on any debt financing during construction of
the project and other expenses incidental to the project during the construction period. The Company has entered into
an EPC agreement with PNG Tollway Private Limited for the Company to construct the road, except for an elevated
corridor, for a fixed price of Rs. 5,805.40 million and utility on sanction basis. PNG Tollway Private Limited has
awarded the EPC contract for the elevated corridor part of the road to Larsen & Toubro Limited for a fixed price of Rs.
8,264.90 million.
(4) This is the estimated EPC cost and does not include any interest paid on any debt financing during construction of
the project and other expenses incidental to the project during the construction period. The Company has received a
work order from Ashoka Belgaum Dharwad Tollway Private Limited to construct the road. The Company has a
98.67% beneficial interest in Ashoka Sambalpur Baragarh Tollway Private Limited.
(5) This is the estimated EPC cost and does not include any interest paid on any debt financing during construction of
the project and other expenses incidental to the project during the construction period. The Company has received a
work order from Ashoka Sambalpur Baragarh Tollway Private Limited to construct the road. The Company has a
98.67% beneficial interest in Ashoka Belgaum Dharwad Tollway Private Limited.

Further details on these BOT projects are set forth in this section below under the heading “BOT Road
Projects – Construction Not Complete” on page 110 of this Prospectus.

Construction

Our EPC division is responsible for the construction of all of our BOT projects. We also enter into sub-
contracting arrangements for our EPC business from time to time, depending upon the commercial viability
of such arrangements. For those BOT projects undertaken by the Company’s subsidiaries, associates or
joint ventures, the Company enters into a fixed price contract for constructing the project for a specific
scope of work. The negotiations on the price of the EPC contract are conducted on an arms-length basis.

Operation and Maintenance

Each of the concession agreements for our toll road and toll bridge BOT projects requires us to maintain
the road or bridge, as applicable, to certain standards during the concession period. The grantors of our
concessions have used, and will likely to continue to use, independent engineers to carry out periodic tests
to assess the quality of the road or bridge and its related maintenance. If we are determined to have failed to
carry out our maintenance obligations, the other contracting party may, following the issuance of notices
and expiry of cure periods, terminate the relevant concession.

Toll Collection

We are responsible for collecting the tolls on all of our toll-based BOT projects. All of the tolls for our
BOT projects are collected in cash. To minimise the chance of toll pilferage, we have developed our own
toll collection audit system. Our toll collection audit system includes cameras installed at toll booths and
our own proprietary software. The system enables us to monitor our toll collection on a real-time basis. We
first developed this system in fiscal 1998 and we are constantly endeavouring to improve it as we gain
more experience in the collection of tolls.

Our in-house traffic study team has the responsibility of monitoring toll collections.

BOT Road Projects in Operation

Set forth below is a summary of each of the 17 BOT projects which we operate or in which we have an
interest.

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1. Indore-Edalabad Road

Description

The road connects Indore, Madhya Pradesh to Icchapur, Madhya Pradesh and is approximately
406 lane km (two lanes) long. The construction of the road was completed in three stages of
approximately 140 lane km each (two lanes). We began collecting tolls on the first stage of the
road in November 2002. We began collecting tolls on the second stage of the road in August 2003.
We began collecting tolls on the third and final stage of the road in February 2004.

Concession Operator

Viva Highways Private Limited is the operator of the concession. The Company owns 74.00% of
the shares in Viva Highways Private Limited directly and 12.74% of the shares in Viva Highways
Private Limited indirectly through its 49.00% interest in Viva Infrastructure Private Limited, the
legal owner of the other 26% of the shares in Viva Highways Private Limited. For more
information on Viva Highways Private Limited and Viva Infrastructure Private Limited, please see
the section entitled “History and Certain Corporate Matters” on page 137 of this Prospectus.

Key Terms of the Concession

The concession was granted by Madhya Pradesh Road Development Corporation Limited
(“MPRDC”). Under the terms of the concession agreement, the project was commissioned in
three phases. We began collecting tolls on phase one of the roads in November 2002, on phase two
of the road in August 2003 and on phase three of the road in February 2004. The concession
period expires in April 2017. Viva Highways Private Limited received a non-refundable grant of
Rs. 450.00 million from MPRDC for the construction of the project.

The toll rates are set forth in the concession agreement with a clause to increase the rates by 7%
every year with effect from April 1 of each year.

Project Cost

The Project Cost was Rs. 1,652.88 million.

Debt Financing

Viva Highways Private Limited originally borrowed a total of Rs. 555.50 million from IDFC and
SBI to partially finance the project. In March 2005, after the construction was completed, Viva
Highways Private Limited leveraged the project by borrowing from IDFC and SBI a total of
Rs. 1,500.00 million and with a non fund based bank guarantee limit of Rs. 12.00 million. These
loans are all repayable by March 31, 2015. As at May 31, 2010, the total amount outstanding on
these loans was Rs. 1,038.94million.

2. Pune-Shirur Road

Description

The project involved the widening and strengthening of the Pune to Shirur section of Maharashtra
State Highway 60, which connects Pune to Ahmednagar and is 216 lane km (four lanes) long. We
began collecting tolls on the road in July 2005.

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 Concession Operator

Ashoka Infrastructure Limited is the operator of the concession. The Company owns 100% of the
shares in Ashoka Infrastructure Limited. For more information on Ashoka Infrastructure Limited,
please see the section entitled “History and Certain Corporate Matters” on page 137 of this
Prospectus.

Key Terms of the Concession

The concession was granted by the Public Works Department (World Bank Division),
Ahmednagar of the State Government of Maharashtra. Under the terms of the concession
agreement, construction of the project was to be completed by August 2005. The concession
period expires in October 2015.

The initial toll rates are set forth in the concession agreement with a clause to increase the rates
every three years with effect from July 1, 2004 to the toll rates already set forth in the concession
agreement.

Project Cost

The Project Cost was Rs. 1,610.05 million.

Debt Financing

Ashoka Infrastructure Limited borrowed Rs. 1,060.00 million from Bank of India, Indian
Overseas Bank, Allahabad Bank, SIDBI, Indian Bank and Oriental Bank of Commerce to partially
finance the project. The loan is repayable by January 2011. As at May 31, 2010, the amount of the
loan outstanding was Rs. 392.59 million.

3. Ahmednagar–Aurangabad Road Project

Description

The project involved the widening of 168 lane km (four lanes) long road sections of the
Ahmednagar– Aurangabad Road on Maharashtra State Highway 60. We began collecting tolls on
the road in May 2008.

Concession Operator

The Company was awarded the concession.

Key Terms of the Concession

The concession was granted by the Public Works Department, World Bank Division, Ahmednagar
of the State Government of Maharashtra. The concession agreement provides that the concession
period will expire in September 2016 and does not provide for any specific construction period.

The toll rates are set forth in the concession agreement with a clause to increase the rates every
three years with effect from April 1, 2010 to the rates already set forth in the concession
agreement.

Estimated Project Cost

The Project Cost was Rs. 1,026.64 million.

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 Debt Financing

IDFC has sanctioned a Rs. 670.00 million loan to the Company to be repaid in 102 equal monthly
instalments ending in March 2017. As at May 31, 2010, the amount outstanding on the loan was
Rs. 593.12 million.

4. Katni Bypass

Description

The project involved the construction of a 35.20 lane km (two lanes) bypass road around the city
of Katni, Madhya Pradesh on National Highway 7. We began collecting tolls on the road in
February 2008.

Concession Operator

Ashoka-DSC Katni Bypass Road Private Limited was awarded the concession. The Company
owns 99.89% of the shares in Ashoka-DSC Katni Bypass Road Pvt. Ltd. and the other 0.11% of
the shares are owned by DS Construction Ltd. For more information on Ashoka-DSC Katni
Bypass Road Pvt. Ltd., please see the section entitled “History and Certain Corporate Matters” on
page 137 of this Prospectus.

Key Terms of the Concession

The concession was granted by the Public Works Department, Jabalpur the State Government of
Madhya Pradesh. The concession period will expire in September 2018.

Project Cost

The Project Cost was Rs. 708.58 million.

Debt Financing

Ashoka-DSC Katni Bypass Road Private Limited borrowed Rs. 430.00 million from Bank of India
and Federal Bank Limited for the project along with a bank guarantee limit of Rs. 4.20 million.
The loan is repayable by March 2015. As at May 31, 2010, the amount of the loan outstanding was
Rs. 361.20million.

5. Dewas Bypass

Description

The project involved the construction of a 39.6 lane km (two lanes) long bypass concrete road
around the city of Dewas to assist traffic moving between Bhopal, Ujjain and Indore and other
parts of Madhya Pradesh and passing through Dewas city. We began collecting tolls on the
bypass in May 2004.

Concession Operator

Ashoka Infraways Private Limited is the operator of the concession. The Company owns 100% of
the shares in Ashoka Infraways Private Limited. For more information on Ashoka Infraways
Private Limited, please see the section entitled “History and Certain Corporate Matters” on page
137 of this Prospectus.

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 Key Terms of the Concession

The concession was granted by the Public Works Department, Dewas, of the State Government of
Madhya Pradesh. Under the terms of the concession agreement, the construction of the project was
to be completed by July 2004. As the construction of the project was completed in May 2004, the
concession operator collected tolls on the project earlier than it would have had construction of the
project been completed on the scheduled completion date. The concession period expires in
August 2015.

The toll rates are set forth in the concession agreement with a clause to increase the rates by 25%
every three years with effect from April 1, 2006.

Project Cost

The Project Cost was Rs. 613.22 million.

Debt Financing

Ashoka Infraways Private Limited originally borrowed a total of Rs. 360.00 million from Axis
Bank Ltd. and SICOM Ltd. to partially finance the project. In May 2008, after the construction
was completed, Ashoka Infraways Private Limited leveraged the project by borrowing a total of
Rs. 546.70 million from Axis Bank and with a non-fund based bank guarantee limit of Rs. 3.40
million. These loans are all repayable by September 2014. As at May 31, 2010, the total amount
outstanding on these loans was Rs. 467.41 million.

6. Ahmednagar-Karmala Road

Description

The road connects Ahmednagar, Maharashtra to Karmala, Maharashtra and is 160 lane km (two
lanes) long. The construction of the road was in four phases. We began collecting tolls on the road
in August 1999 and all the four phases of the road were completed in January 2004.

Concession Operator

The Company is the operator of the concession.

Key Terms of the Concession

The concession was granted by the Public Works Department (World Bank Division),
Ahmednagar of the State Government of Maharashtra. The concession period expires in
November 2015.

The initial toll rates are set forth in the concession agreement with a clause to increase the rates
every three years from February 2005 to the rates already set forth in the concession agreement.

Project Cost

The Project Cost was Rs. 503.51 million.

Debt Financing

The Company originally borrowed Rs. 185.0 million from IDBI Bank to partially finance the
project. During the construction of the last phase of the project, the loan was repaid by the
Company by borrowing Rs. 380.00 million from IDFC. The Company further leveraged the
project by borrowing an additional Rs. 450.00 million. The loans are repayable by December 2011

105
 and July 2014, respectively. As at May 31, 2010, the total amount outstanding on these loans was
Rs. 487.52 million.

7. Wainganga Bridge

Description

The project involved the construction of a bridge and its approaches across the Wainganga river in
Maharashtra and is 26 lane km (two lanes) long. We began collecting tolls on the bridge in March
2001.

Concession Operator

Jayaswals Ashoka Infrastructure Private Limited, an associate of the Company, is the operator of
the concession. The Company owns 50% of the shares in Jayaswals Ashoka Infrastructure Private
Limited. The other 50% of the shares in Jayaswals Ashoka Infrastructure Private Limited are
owned by Abhijit Infrastructure Ltd. (a group company of Jayaswals Holdings Private Limited).
For more information on Jayaswals Ashoka Infrastructure Private Limited, please see the section
entitled “History and Certain Corporate Matters” on page 137 of this Prospectus.

Key Terms of the Concession

The concession was granted by Ministry of Road Transport and Highways (“MORT&H”), New
Delhi. Under the terms of the concession agreement, the project was to be commissioned before
the end of May 2001. The construction of the project was completed in March 2001, which meant
that the concession operator collected tolls on the project two months early than it would have had
construction of the project been completed on the scheduled completion date. The concession
period expires in February 2018.

The toll rates are set forth in the concession agreement with a clause to revise the rates every year
with effect from July 1 as per the change in Indian Wholesale Price Index in each fiscal year.

Project Cost

The Project Cost was Rs. 408.69 million.

Debt Financing

Jayaswals Ashoka Infrastructure Private Limited originally borrowed a total of Rs. 265.00 million
to partially finance the project. After the construction of the project was completed, Jayaswals
Ashoka Infrastructure Private Limited leveraged the project by borrowing Rs. 695.00 million and
repaying the original loan. The new loan is repayable by March 2016. As at May 31, 2010, the
amount outstanding on the loan was Rs. 422.48 million.

8. Nashirabad Railway-Over Bridge

Description

The project comprised the construction of a railway-over bridge and 8.0 lane km (two lanes) of
roads near the town of Nashirabad, Maharashtra. We began collecting tolls on the bridge in July
2000.

Concession Operator

The Company operates the concession.

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 Key Terms of the Concession

The concession was granted by MORT&H, New Delhi. Under the terms of the concession
agreement, the project was to be commissioned by the end of November 2000. As the construction
of the project was completed in July 2000, we collected tolls on the project four months earlier
than we would have had we finished construction on the scheduled completion date. The
concession period expires in November 2010.

The initial toll rates are set forth in the concession agreement with a clause to increase the rates
every five years with effect from November 2002 to the toll rates already set forth in the
concession agreement.

Project Cost

The Project Cost was Rs. 146.97 million.

Debt Financing

The Company originally borrowed Rs. 70.00 million to partially finance the project. After the
construction of the project was completed, the Company leveraged the project by borrowing Rs.
132.50 million. That loan was repaid in March 2004 through a new loan of Rs. 185.00 million,
which loan was fully repaid in December 2008.

9. Sheri Nallah Bridge

Description

The project involved the construction of 7 lane km bridge (including approach roads) over the
River Krishna near the village of Sheri in the state of Maharashtra on the Sangli bypass road. We
began collecting tolls on the bridge in October 2000.

Concession Operator

The Company operates the concession.

Key Terms of the Concession

The concession was granted by the Public Works Department, Sangli of the State Government of
Maharashtra. Under the terms of the concession agreement, the construction of the project was to
be completed by March 2001. The project was commissioned on November 2000, which meant
we collected tolls on the project four months early than we would have had we finished
construction on the scheduled completion date. As per the concession agreement, the concession
period expires in June 2015.

The initial toll rates are set forth in the concession agreement with a clause to increase the rates
every three years with effect from March 2004 to the toll rates already set forth in the concession
agreement.

Project Cost

The Project Cost was Rs. 142.22 million.

Debt Financing

The Company originally borrowed Rs. 56.20 million to help finance the construction of the bridge
project. After the construction of the bridge was completed, the Company refinanced the project

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 by borrowing Rs. 72.67 million. The loan was repaid in September 2006.

10. Dhule Bypass

Description

The project involved the construction of an 11.8 lane km (two lanes) bypass road. We began
collecting tolls on the road in March 1998.

Concession Operator

Ashoka Infrastructures, an association of persons in which the Company has a 99.99% interest, is
the operator of the project. The other member in Ashoka Infrastructures is Ashoka Buildwell and
Developers Pvt. Ltd with a 0.01% interest. For more information on Ashoka Infrastructures and
Ashoka Buildwell and Developers Pvt. Ltd, please see the section entitled “History and Certain
Corporate Matters” on page 137 of this Prospectus.

Key Terms of the Concession

The concession was granted by the Public Works Department, Dhule of the State Government of
Maharashtra. As per the concession agreement, the concession period expired in May 2006.
However, as a result of claims made by Ashoka Infrastructures, it was mutually agreed to extend
the expiry of the concession period to January, 2011 to compensate Ashoka Infrastructures for
those claims.

The toll rates are set forth in the concession agreement and there is no provision for an increase in
tolls.

Project Cost

The Project Cost was Rs. 58.17 million.

Debt Financing

Ashoka Infrastructures originally borrowed Rs. 19.74 million to partially finance the project. After
the construction of the project was completed, Ashoka Infrastructures leveraged the project by
borrowing Rs. 52.50 million and the original loan was repaid. We further leveraged the project by
borrowing an additional Rs. 50.00 million. Both of the loans were repaid by December 2005.

11.-16. Six Foot-Over-Bridges in Mumbai

Description

These projects involved the construction of six feet long foot bridges on the eastern express
highway in Mumbai, Maharashtra. The projects were commissioned as follows:

Project Name Commissioned Date

Foot-Over-Bridge in Mumbai (Godrej) April 2002
Foot-Over-Bridge in Mumbai (Priya-darshani) January 2003
Foot-Over-Bridge in Mumbai (Pravin Hotel) May 2003
Foot-Over-Bridge in Mumbai (Tagore Nagar) July 2003
Foot-Over-Bridge in Mumbai (Louis Wadi) February 2003
Foot-Over-Bridge in Mumbai (Mental Hospital) July 2002

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 Concession Operator

Ashoka High-Way Ad, a partnership in which the Company has a 99.99% interest, is the operator
of the concessions. The other partner in Ashoka High-Way Ad is Ashoka Builders (Nasik) Private
Limited with a 0.01% interest. For more information on Ashoka High-Way Ad and Ashoka
Builders (Nasik) Private Limited, please see the section entitled “History and Certain Corporate
Matters” on page 137 of this Prospectus.

Key Terms of the Concessions

The concessions were granted by the Public Works Department, Mumbai the State Government of
Maharashtra. Under the terms of the six separate concession agreements, there was no separate
construction period. The concession period for each project will expire as follows:

Project Name Concession Period Expires

Foot-Over-Bridge in Mumbai (Godrej) August 2016
Foot-Over-Bridge in Mumbai (Priya-darshani) August 2012
Foot-Over-Bridge in Mumbai (Pravin Hotel) August 2017
Foot-Over-Bridge in Mumbai (Tagore Nagar) August 2018
Foot-Over-Bridge in Mumbai (Louis Wadi) August 2013
Foot-Over-Bridge in Mumbai (Mental Hospital) August 2013

There are no tolls payable on the bridges. Ashoka High-Way Ad earns revenue by letting-out
advertisement space on hire on the bridges.

Project Costs

The total Project Costs for all six projects was Rs. 37.46 million.

Debt Financing

The Company originally borrowed Rs. 17.70 million to partially finance the six projects. After the
construction of the projects was completed, the Company leveraged the projects by borrowing Rs.
55.00 million. The loan is repayable by December 2012. As at May 31, 2010, the amount
outstanding on the loan was Rs. 19.77 million.

17. Anawali–Kasegaon Road

Description

The project involved improvements to the AnawaliKasegaon road in Maharashtra. Ashoka

Bridgeways began collecting tolls on the road in March 2004.

Concession Operator

Ashoka Bridgeways, a partnership in which the Company has a 5% interest, is the operator of the
concession. The other partner in Ashoka Bridgeways is Ashoka Builders (Nasik) Private Limited
with a 95% interest. Our Promoters and certain of their family members control Ashoka Builders
(Nasik) Private Limited. For more information on Ashoka Bridgeways and Ashoka Builders
(Nasik) Private Limited, please see the section entitled “History and Certain Corporate Matters”
on page 137 of this Prospectus.

Key Terms of the Concession

The concession was granted by the Public Works Department, Pandharpur the State Government
of Maharashtra. Under the terms of the concession agreement, the construction of the project was

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 to be completed by July 2004. As the construction of the project was completed in March 2004,
the concession operator collected tolls on the project two months early than it would have had
construction of the project been completed on the scheduled completion date. The concession
period expires in May 2017.

The initial toll rates are set forth in the concession agreement with a clause to increase the rates
every three with effect from July 1, 2004 to the toll rates already set forth in the concession
agreement.

Project Cost

The Project Cost was Rs. 73.53 million.

Debt Financing

Ashoka Bridgeways originally borrowed Rs. 41.00 million to partially finance the project. After
the construction of the project was completed, Ashoka Bridgeways leveraged the project by
borrowing Rs. 135.00 million. The loan is repayable by April 2011. As at May 31, 2010, the
amount outstanding on the loan was Rs. 66.56 million.

BOT Road Projects – Construction not Complete

We and our associates have been awarded four toll roads totalling approximately 1,423 lane kilometres of
roads on a BOT basis, construction of which is not yet complete. Set forth below is a summary of these six
BOT projects.

1. NH-6 Bhandara Road

Description

The project involves the construction of a 320 lane km (four lanes) long road section of the
National Highway 6 from the Chhattisgarh/Maharashtra border to the Wainganga Bridge section
from 405 km to 485 km of the National Highway 6.

Concession Operator

Ashoka Highways (Bhandara) Limited has been awarded the concession. The Company
beneficially owns 52.02% of the shares in Ashoka Highways (Bhandara) Limited, with IDFC
Project Equity Company Private Limited holding a 42.20% interest and IDFC holding a 5.78%
interest. The Company has entered into Share Subscription and Shareholders Agreement dated
April 17, 2009 with respect to Ashoka Highways (Bhandara) Limited, which amended the original
shareholders agreement, and pursuant to which the Company’s beneficial interest in this
subsidiary is expected to decrease to 51% before the end of fiscal 2011. For information on this
agreement, see the section entitled “History and Certain Corporate Matters – Our Joint Ventures”
on page 147 of this Prospectus. For more information on Ashoka Highways (Bhandara) Limited,
please see the section entitled “History and Certain Corporate Matters – Our Subsidiaries” on page
152 of this Prospectus.

Key Terms of the Concession

Under the terms of the concession agreement, the construction of the project is to be completed by
September 2010. If the road is not completed by September 2010 for any reason other than
conditions constituting force majeure or for reasons attributable to NHAI or any governmental
agency, Ashoka Highways (Bhandara) Limited is liable to pay to NHAI as damages for the delay
an amount calculated at the rate of 0.01% of the estimated cost of construction of the road as per
the bid document per week or part thereof. The concession period will expire in March 2028.

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 The concession agreement provides that NHAI will give a grant of Rs. 100.00 million to Ashoka
Highways (Bhandara) Limited during the construction phase of the project.

The toll rates are set forth in the concession agreement with a clause to revise the rates every year
with effect from September 1 as per the changes in the Indian Wholesale Price Index each fiscal
year.

Estimated Project Cost and EPC Contracts

The estimated Project Cost is Rs. 5,350.00 million. Ashoka Highways (Bhandara) Limited has
entered into an EPC contract for the construction of the road with the Company with a contract
value of Rs. 5,400.00 million, Rs. 600.00 million of which is to be paid by NHAI.

Status of Construction

The construction of the project began in July 2008. As at May 31, 2010, we had completed
construction of approximately 96.14% of the project with a project expenditure of Rs. 5,191.61
million. As at May 31, 2010, our estimate of the amount we would need to spend to complete the
construction of the project was Rs. 208.39 million, not including interest costs.

Debt Financing

Ashoka Highways (Bhandara) Limited has obtained a sanctioned loan limit of Rs. 3,750.00
million from State Bank of India, Infra Infrastructure Finance Company Limited, Punjab National
Bank, IDBI Bank Limited and IDFC Limited to partially finance the project. The loan
disbursement is in progress as per the project implementation schedule. As at May 31, 2010, the
amount of the loan disbursed was Rs. 3,276.50 million. The loan repayment period commences
from April 2011 and the loan is repayable in 144 instalments by March 2023. Pursuant to the
Share Subscription and Shareholders Agreement dated April 17, 2009, the Company, IIF and
IDFC are required to lend Ashoka Highways (Bhandara) Limited Rs. 347.57 million, Rs. 386.19
million and Rs. 38.62 million, respectively, at 0% interest rate. As at May 31, 2010, the Company,
IIF and IDFC had lent Ashoka Highways (Bhandara) Limited Rs. 394.62 million, Rs. 371.59
million and Rs. 35.35 million, respectively. The loans are unsecured loans and are to be repaid
after the complete repayment of the project term loan. For further details please see section
entitled “History and Certain Corporate Matters” on page 137 of this Prospectus.

2. NH-6 Durg Bypass, Chhattisgarh - Maharashtra Border Road

Description

The project involves the construction of a 332 lane km (four lanes) long road section of the
National Highway 6 - end of Durg bypass, Chhattisgarh - Maharashtra border (from 322.40 km to
405 km of the National Highway 6).

Concession Operator

Ashoka Highways (Durg) Limited has been awarded the concession. The Company currently
beneficially owns 53.18% of the shares in Ashoka Highways (Durg) Limited, with India
Infrastructure Fund holding a 40.91% interest and IDFC holding a 5.91% interest. The Company
has entered into Share Subscription and Shareholders Agreement dated April 17, 2009 with
respect to Ashoka Highways (Durg) Limited, which amended the original shareholders agreement,
and pursuant to which the Company’s beneficial interest in this subsidiary is expected to decrease
to 51% before the end of fiscal 2010. For information on this agreement, see the section entitled
“History and Certain Corporate Matters – Our Joint Ventures” on page 147 of this Prospectus. For

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 more information on Ashoka Highways (Durg) Limited, please see the section entitled “History
and Certain Corporate Matters – Our Subsidiaries” on page 152 of this Prospectus.

Key Terms of the Concession

Under the terms of the concession agreement, the construction of the project is to be completed by
January 2011. If the road is not completed by January 2011 for any reason other than conditions
constituting force majeure or for reasons attributable to NHAI or any governmental agency,
Ashoka Highways (Durg) Limited is liable to pay to NHAI as damages for the delay an amount
calculated at the rate of 0.01% of the estimated cost of construction of the road as per the bid
document per week or part thereof. The concession period will expire in March 2028.

The concession agreement provides that Ashoka Highways (Durg) Limited will pay Rs. 10 million
to NHAI in the 13th year of the operation of the concession.

The toll rates are set forth in the concession agreement with a clause to revise the rates every year
with effect from September 1 as per the changes in Indian Wholesale Price Index each fiscal year.

Estimated Project Cost and EPC Contracts

The estimated Project Cost is Rs. 5,870.00 million. Ashoka Highways (Durg) Limited has entered
into an EPC contract for the construction of the road with the Company with a contract value of
Rs. 5,390.00 million.

Status of Construction

The construction of the project began in October 2008. As at May 31, 2010, we had completed
construction of approximately 68.15% of the project cost with a project expenditure of Rs.
3,673.47 million. As at May 31, 2010, our estimate of the amount we would need to spend to
complete the construction of the project was Rs. 1,716.53 million, not including interest costs.

Debt Financing

Ashoka Highways (Durg) Limited has obtained a sanctioned loan limit of Rs. 4,100.00 million
from State Bank of India, Infra Infrastructure Finance Company Limited, Punjab National Bank,
Bank of Baroda and State Bank of Indore to partially finance the project. The loan disbursement
is in progress as per the project implementation schedule. As at May 31, 2010, the amount of the
loan disbursed was Rs. 2,635.00 million. The loan repayments shall commence from October 2011
and the loan is repayable in 144 instalments by June 2023. Pursuant to the Share Subscription and
Shareholders Agreement dated April 17, 2009, the Company, IIF and IDFC are required to lend
Ashoka Highways (Durg) Limited Rs. 393.49 million, Rs. 437.22 million and Rs. 43.72 million,
respectively at 0% interest rate. As at May 10, 2010, the Company, IIF and IDFC amounts had
lent Ashoka Highways (Durg) Limited Rs. 342.18 million, Rs. 411.90 million and Rs. 38.02
million, respectively. The loans are unsecured loans and are to be repaid after the complete
repayment of the project term loan. For further details, please see section entitled “History and
Certain Corporate Matters” on page 137 of this Prospectus.

3. Jaora-Nayagaon Road

Description

The project involves the construction of a 319 lane km (four lanes) long road from Jaora to
Nayagaon on the State Highway 31 (“SH-31”) in Madhya Pradesh.

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Concession Operator

Jaora Nayagaon Toll Road Company Private Limited (“Jaora Nayagaon Toll Road Company”) has
been awarded the concession. The Company has a 13.76% beneficial interest in Jaora Nayagaon
Toll Road Company through its 49.00% ownership of Viva Infrastructure Private Limited, which
owns 13.84% of the shares in Jaora Nayagaon Toll Road Company, and through its 86.74% in
Viva Highways Pvt. Ltd., which owns 8.05% of the shares in Jaora Nayagaon Toll Road Company
Private Limited.

Key Terms of the Concession

The concession was granted by MPRDC. The concession agreement provides that the construction
of the project is to be completed by the end of February 2011. The concession period will expire at
the end of February 2033. If we finish the construction of the project before the scheduled
completion date, the toll period will commence from then until the end of the concession period. If
we finish construction of the project after the scheduled completion date and there is no applicable
force majeure event, then the toll period shall commence from that date without any increase in
the concession period.

The concession agreement provides that Jaora Nayagaon Toll Road Company will pay an amount
to MPRDC every year starting from the first year of toll collection on the road. The amount
payable in the first year of toll collection is Rs. 153.90 million, which amount increases by 5%
every year. The period of payment is April 1 - March 30 every year, so if for example toll
collection starts on October 1, then for the first year the proportionate amount (i.e., six months)
has to be paid.

The toll rates are set forth in the concession agreement with a clause to increase the rates by 7%
every year with effect from April 1 of each year.

Estimated Project Cost and EPC Contracts

The estimated Project Cost is Rs. 8,180.00 million. Jaora Nayagaon Toll Road Company has
entered into an EPC contract for the construction of part of the road (from 173.00 km to 252.81
km on SH-31) with the Company with a contract value of Rs. 4,557.00 million. In April 2008, the
Company entered into a subcontract agreement with G R Infraprojects with respect to the
construction of the Neemuch section of the road from 222.00 km to 252.81 km on SH-31 for a
fixed price of Rs. 917.90 million. Jaora Nayagaon Toll Road Company also entered into an EPC
contract with PNC Infratech Limited for construction of the remaining part of the road with a
contract value of Rs. 2,793.00 million.

Status of Construction

The construction of the project began in January 2008. As at May 31, 2010, approximately
93.00% of the project construction was complete, with a project expenditure of Rs. 6,835.50
million. As at May 31, 2010, our estimate of the amount needed to be spent to complete the
construction of the project was Rs. 514.50 million, not including interest costs.

Debt Financing

Jaora Nayagaon Toll Road Company borrowed Rs. 5,620.00 million from State Bank of India,
Infra Infrastructure Finance Company Limited, Punjab National Bank, Bank of India, State Bank
of Patiala, State Bank of Indore and State Bank of Bikaner and Jaipur to partially finance the
project. The loan disbursement is in progress as per the project implementation schedule. As at
May 31, 2010, the amount of the loan disbursed was Rs. 4,815.00 million. The loan repayment
commences from April 2011 and is repayable in 144 instalments by January 2023.

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4. NH-3 Pimpalgaon–Nashik–Gonde Road

Description

The project involves the construction of a 452 lane kms road from Pimpalgaon-Nashik-Gonde
section of NH3 from 380 kms to 440 kms in the State of Maharashtra under NHDP Phase III-A.

Concession Operator

PNG Tollway Private Limited was awarded the concession in July 2009. The Company has a
26.00% ownership interest in PNG Tollway Private Limited, with Larsen & Toubro Limited a
26.00% ownership interest and Transco Private Limited a 48.00% ownership interest. For more
information on PNG Tollway Private Limited, please see the section entitled “History and Certain
Corporate Matters” on page 137 of this Prospectus.

Key Terms of the Concession

The concession was granted by NHAI. The concession agreement provides that the construction of
the project is to be completed by July 2012. The concession period will expire in January 2029. If
the construction of the project is finished before the scheduled completion date, the toll period will
commence from then until the end of the concession period. If construction of the project is
completed after the scheduled completion date and there is no applicable force majeure event, then
the toll period shall commence from that date without any increase in the concession period. PNG
Tollway Private Limited shall also be liable to pay to NHAI as damages for the delay an amount
calculated at the rate of 0.01% of the performance security, i.e., Rs. 0.47 million per day for the
number of days delay.

PNG Tollway Private Limited is required to pay NHAI a premium in the form of an additional
concession fee equal to 6.19% of the total realisable fees received by it during that year, due and
payable on a pro rata basis for the period remaining in that year; and for each subsequent year of
the concession period, the premium shall be determined by increasing the proportion of the
premium to the total realisable fees received by it in the respective year by an additional 1% as
compared to the immediately preceding year. For example, the premium for the fourth and fifth
years shall be equal to 7.19% and 8.19%, respectively, of the total realisable fees received by PNG
Tollway Private Limited for the respective years.

The toll rates are set forth in the concession agreement with a clause to increase the toll rates
annually by 3%, without compounding, with effect from April, 2008.

Estimated EPC Cost and EPC Contracts

The estimated EPC cost is Rs. 14,070.30 million, which does not include any include any interest
paid on any debt financing during construction of the project and other expenses incidental to the
project during the construction period. In November 2009, the Company entered into an EPC
agreement with PNG Tollway Private Limited for the Company to construct the road, except for
an elevated corridor, for a fixed price of Rs. 5,805.40 million and utility on sanction basis. PNG
Tollway Private Limited has awarded the EPC contract for the elevated corridor part of the road to
Larsen & Toubro Limited for a fixed price of Rs. 8,264.90 million.

Status of Construction

The construction of the project began in January 2010. As at May 31, 2010, approximately 4.70%
of the project had been constructed with a project expenditure of Rs. 661.30 million. As at May
31, 2010, our estimate of the amount needed to be spent to complete the construction of the project
was Rs. 13,409.00 million, not including interest costs.

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 Debt Financing

PNG Tollway Private Limited borrowed Rs. 13,528.00 million from State Bank of India, UCO
Bank, Bank of Baroda, Indian Bank, Federal Bank, south Indian Bank, The loan disbursement is
yet to start for the project as per the project implementation schedule. As at May 31, 2010, the
amount of the loan disbursed was Rs. 770.60 million. The loan repayment commences from April
2013 and is repayable in 138 instalments by March 2025.

5. NH-4 Belgaum Dharwad Road

Description

The project involves the construction of a 454.05 lane kms road from the Belgaum Dharwad
section of NH-4 from 433 kms to 515 kms in the State of Karnataka under NHDP Phase V.

Concession Operator

Ashoka Belgaum Dharwad Tollway Private Limited was awarded the concession in June 2010.
The Company has a 98.67% beneficial interest in Ashoka Belgaum Dharwad Tollway Private
Limited: it owns 45% of the shares directly, 45% of the shares indirectly through its 100%
subsidiary Ashoka Infraways Private Limited, which owns 45% of the shares in Ashoka Belgaum
Dharwad Tollway Private Limited, and 8.67% of the shares indirectly through its 86.74% interest
in Viva Highways Private Limited, which owns 9.99% of the shares in Ashoka Belgaum Dharwad
Tollway Private Limited. For more information on Ashoka Belgaum Dharwad Tollway Private
Limited, please see the section entitled “History and Certain Corporate Matters” on page 137 of
this Prospectus.

Key Terms of the Concession

The concession was granted by NHAI. The concession agreement provides that the construction of
the project is to be completed within 30 months from the financial closure date of the project,
which is scheduled to occur on or prior to December 29, 2010. The concession period is 30 years
from the financial closure date. The toll period shall commence from the financial closure date
until the end of the concession period. If the concessionaire fails to achieve any project milestone
within a period of 90 (ninety) days from the date set forth for such milestone unless such failure
has occurred due to force majeure or for reasons solely attributable to the NHAI it shall also be
liable to pay to NHAI as damages for the delay an amount calculated at the rate of 0.1% of the
performance security, i.e., Rs. 0.50 million per day, for the number of days delay.

Ashoka Belgaum Dharwad Tollway Private Limited is required to pay NHAI a premium of Rs.
310.0 million during the first year, due and payable on a pro rata basis for the period remaining in
that year; and for each subsequent year of the concession period, the premium shall be determined
by increasing the proportion of the premium in the respective year by an additional 5% as
compared to the immediately preceding year. For example, the premium for the second and third
years shall be equal to Rs. 325.5 million and Rs. 341.8 million for the respective years.

The toll rates are set forth in the concession agreement with a clause to increase the toll rates
annually by 3%, without compounding, with effect from April, 2008 and such increased rates shall
be deemed to be the base rate for the subsequent years. The applicable base rates shall be revised
annually with effect from April each year to reflect the increase in Wholesale Price Index (WPI)
between the week ending on January 6, 2007, i.e. (208.70), and the week ending on or
immediately after January 1 of the year in which such revision in s undertaken but such revision
shall be restricted to 40% of the increase in wholesale price index to be rounded to nearest Rs.
5.00.

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 Estimated EPC Cost and EPC Contracts

The estimated EPC cost is Rs. 6,300.00 million, which does not include any include any interest
paid on any debt financing during construction of the project and other expenses incidental to the
project during the construction period. In June 2010, the Ashoka Belgaum Dharwad Tollway
Private Limited gave the work order to the Company to construct the road for a fixed price of Rs.
6,300.00 million.

Status of Construction

The construction of the project will commence from the financial closure date of the project. As at
May 31, 2010, our estimate of the amount needed to be spent to complete the construction of the
project was Rs. 6,300.00 million, not including interest costs.

Debt Financing

Debt financing is yet to be obtained.

5. NH-6 Sambalpur-Baragarh Road

Description

The project involves the construction of a 407.60 lane kms road from the Sambalpur to Baragarh,
Orissa / Chattisgarh Border section of NH-6 from 0.00 kms to 88.00 kms in the State of Orissa
under NHDP Phase III.

Concession Operator

Ashoka Sambalpur Baragarh Tollway Private Limited was awarded the concession in June 2010.
The Company has a 98.67% beneficial interest in Ashoka Sambalpur Baragarh Tollway Private
Limited: it owns 45% of the shares directly, 45% of the shares indirectly through its 100%
subsidiary Ashoka Infraways Private Limited, which owns 45% of the shares in Ashoka
Sambalpur Baragarh Tollway Private Limited, and 8.67% of the shares indirectly through its
86.74% interest in Viva Highways Private Limited, which owns 9.99% of the shares in Ashoka
Sambalpur Baragarh Tollway Private Limited. For more information on Ashoka Sambalpur
Baragarh Tollway Private Limited, please see the section entitled “History and Certain Corporate
Matters” on page 137 of this Prospectus.

Key Terms of the Concession

The concession was granted by NHAI. The concession agreement provides that the construction of
the project is to be completed within 30 months from the financial closure date of the project,
which is scheduled to occur on or prior to December 29, 2010. The concession period is 30 years
from the financial closure date. The toll period shall commence from the commercial operation
date until the end of the concession period. If the concessionaire fails to achieve any project
milestone within a period of 90 (ninety) days from the date set forth for such milestone unless
such failure has occurred due to force majeure or for reasons solely attributable to the NHAI it
shall also be liable to pay to NHAI as damages for the delay an amount calculated at the rate of
0.1% of the performance security, i.e., Rs. 0.45 million per day, for the number of days delay.

Ashoka Sambalpur Baragarh Tollway Private Limited is required to pay NHAI a premium of Rs.
13.30 million during the first year, due and payable on a pro rata basis for the period remaining in
that year; and for each subsequent year of the concession period, the premium shall be determined
by increasing the proportion of the premium in the respective year by an additional 5% as
compared to the immediately preceding year. For example, the premium for the second and third
years shall be equal to 13.97 million and 14.66 million for the respective years.

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 The toll rates are set forth in the concession agreement with a clause to increase the toll rates
annually by 3%, without compounding, with effect from April, 2008 and such increased rates shall
be deemed to be the base rate for the subsequent years. The applicable base rates shall be revised
annually with effect from April each year to reflect the increase in Wholesale Price Index (WPI)
between the week ending on January 6, 2007, i.e. (208.70), and the week ending on or
immediately after January 1 of the year in which such revision in s undertaken but such revision
shall be restricted to 40% of the increase in wholesale price index to be rounded to nearest Rs.
5.00.

Estimated EPC Cost and EPC Contracts

The estimated EPC cost is Rs. 10,080.00 million, which does not include any include any interest
paid on any debt financing during construction of the project and other expenses incidental to the
project during the construction period. In June 2010, the Ashoka Sambalpur Baragarh Tollway
Private Limited gave the work order to the Company to construct the road for a fixed price of Rs.
10,080.00 million.

Status of Construction

The construction of the project will commence from the financial closure date of the project. As at
May 31, 2010, our estimate of the amount needed to be spent to complete the construction of the
project was Rs. 10,080.00 million, not including interest costs.

Debt Financing

Debt financing is yet to be obtained.

BOT Commercial Development Projects

We have been awarded two commercial development projects totalling 12,453 sq. metres of leasable area,
construction of which has yet to begin.

1. Shopping mall development on the campus of Rukminibai Hospital in Kalyan, Maharashtra

In September 2008, the Company entered into a concession agreement with Kalyan Dombivali
Municipal Corporation (“KDMC”) for the construction and development of a shopping mall with
a built up area of a maximum of 5,228 sq. metres on the campus of Rukminibai Hospital in Kalyan
City, Maharashtra, the address of which is CTS : 3239 – 3245, in the campus of Old Rukminibai
Hospital in Kalyan, Maharashtra. The concession agreement gives the Company the right to build
the mall and to market it to prospective tenants, with a maximum lease period of 60-years. We are
entitled to receive all upfront rental payments paid by tenants for leases at the mall. The lease
period of 60-years will begin 36 months from the date we receive encumbrance free vacant
possession of the land and commercial development permission from the State Government of
Maharashtra through KDMC, which is to allow time for the construction and marketing of the
mall. In the event any leasable area of the mall is not leased out during the 60-year lease period we
shall be deemed to be the lessee of such space and shall be liable to pay Rs. 1.0 per sq. ft. (or Rs.
0.09 per sq. metre) per month to KDMC. We have the option of paying the cumulative present
value of the lease rentals of Rs. 10.98 million to KDMC prior to the time we get vacant possession
of the land, which will give us the right to keep all lease rentals from tenants.

The Company paid KDMC a project development fee of Rs. 6.00 million. We are also required to
pay a project premium of Rs. 129.00 million, out of which we have paid 50%. The remaining 50%
is required to be paid within 12 months of us receiving vacant possession of the land.

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 The Company has filed an application dated September 19, 2009 with the Additional Director,
Town Planning, KDMC, Kalyan in relation to the development of this shopping mall, which is
currently pending. For further details, see “Government Approvals” on page 387 of this
Prospectus.

We have not finalised the estimated Project Cost. The construction of the project is yet to begin
since we have not received vacant possession of the land due to a legal dispute with the current
tenants on the land where the shopping mall is to be constructed, details of which are given below.

Suresh Khureja and others filed a writ petition in the Bombay High Court against KDMC wherein
the Company was included as a respondent for, among other things, the issuance of an injunction
restraining the respondents from evicting the petitioners from their shop premises on the land
where the shopping mall described above and the land where the other shopping mall described
below are to be constructed and a stay on the commencement of construction work on both
shopping malls. The Bombay High Court has vide order dated February 26, 2010 disposed off the
petition with an order to KDMC to give proper notices to the shop occupants. In accordance with
the Bombay High Court’s, KDMC has initiated the process of giving notices to the shop
occupants.

2. Shopping mall development in Adharwadi, Kalyan City, Maharashtra

In September 2008, the Company entered into a concession agreement with KDMC for the
construction and development of a shopping mall with a built up area of a maximum of 7,225 sq.
metres in Adharwadi, Kalyan City, Maharashtra, the address of which is reservation no. 24,
Adharwadi, Kalyan City, Maharashtra. The concession agreement gives the Company the right to
build the mall and to market it to prospective tenants, with a maximum lease period of 60-years.
We are entitled to receive all upfront rental payments paid by tenants for leases at the mall. The
lease period of 60-years will begin 36 months from the date we receive excluded portion
permission from the Government of Maharashtra through the Town Planning Department, KDMC,
which is to allow time for the construction and marketing of the mall. In the event any leasable
area of the mall is not leased out during the 60-year lease period we shall be deemed to be the
lessee of such space and shall be liable to pay Rs. 1.0 per sq. ft. (or Rs. 0.09 per sq. metre) per
month to KDMC. We have the option of paying the cumulative present value of the lease rentals
of Rs. 14.05 million to KDMC prior to the time we get vacant possession of the land, which will
give us the right to keep all lease rentals from tenants.

The Company paid KDMC a project development fee of Rs. 7.80 million. We are also required to
pay a project premium of Rs. 130.00 million, out of which we have paid 50%. The remaining 50%
is required to be paid within 12 months of us receiving vacant possession of the land.

The Company has filed an application dated October 6, 2008 with the Additional Director Town
Planning, KDMC, Kalyan in relation to the development of this shopping mall, which is currently
pending. For further details, see “Government Approvals” on page 387 of this Prospectus.

We have not finalised the estimated Project Cost. The construction of the project is yet to begin
since we have not received encumbrance free vacant possession of the land due to the legal dispute
described above.

Waghur Hydro Electric Power Plant

In April 2010, the Government of Maharashtra issued us a letter of allotment for us to develop a 1,500 KW
per hour hydro electric power plant in Waghur, Maharashtra, in the Tapi basin on the Waghur river, on a
build, own, operate and transfer basis. The formal agreement with respect to the development of the power
plant has not been entered into yet. Although we will own the power plant and will be required to transfer
ownership of the power plant at the end of the concession period, which is 30 years from the date of the
formal agreement, we consider this project to be part of our BOT division.

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The power plant is to be built on approximately 5,000 sq. metres of land that is currently owned by the
Government of Maharashtra, ownership of which will be transferred to us after we have entered into the
formal agreement.

The Government of Maharashtra Water Resource Department has granted us permission to develop this
hydro electric power plant under its existing policy for captive generation of the Government of
Maharashtra for 100% consumption by the Government of Maharashtra. The agreement for the wheeling,
banking and sale of power to the Government of Maharashtra between us and the Maharashtra State
Electricity Distribution Co. Ltd has not been executed yet.

We have given a bank guarantee of Rs. 0.50 million as a performance security deposit.

We plan to begin work on construction of the power plant in September 2010 and for commercial
operations to begin in the second quarter of fiscal 2012. The estimated EPC cost of the project is
approximately Rs. 100 million.

EPC Division

Our EPC division primarily engineers and designs, procures the raw material and equipment for and
constructs roads and bridges for our BOT division and third parties. Our EPC division also (a) maintains
and repairs existing roads for our BOT division, (b) constructs and modernises distribution transformers
and electricity substations for third parties and (c) constructs commercial, industrial and institutional
buildings for third parties.

Our EPC division will also construct the two shopping malls we were awarded the right to build on a BOT
basis in Kalyan, Maharashtra and the 1,500 KW per hour hydro electric power plant in Waghur,
Maharashtra we are developing on a BOOT basis.

Details of the 17 out of the 21 BOT projects our EPC division have built for our BOT division are set forth
in this section above under the heading “Business-Our Services and Products–BOT Division–BOT Road
Projects in Operation” on page 97 of this Prospectus. The following table provides a brief summary of
some of the more notable EPC projects that we have undertaken and completed for third parties.

Name of Project Client Location Contract Completion

Value Date
in Rs.
Million
Road EPC Projects
Phalodi – Pachpadra Road Infrastructure Development Rajasthan 1,560.00 March 2007
road Company of Rajasthan Limited
(“RIDCOR”)
Westerly Bypass NHAI, New Delhi Maharashtra 1,300.00 July 2003
Concrete road within Surat Municipal Corporation Gujarat 282.77 March 2008
Surat City limits
Other EPC Projects
Construction of an Hindalco Industries Limited Silvassa 450.00 September
aluminium foil and 2001
wheel plant
Construction of factory Samsonite India Private Limited Gonde, 90.00 March 1998
building Nashik

As at May 31, 2010, the Company, its subsidiaries and its predecessor entities had constructed 44 roads and
bridges and built over 5.4 million square feet of commercial, industrial and institutional projects. As at May
31, 2010, the Company’s Order Book was Rs. 16,153.64 million.

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EPC Contracts

Our EPC contracts typically require us to design, build and manage the project from inception to
completion with the entity that awards the EPC contract taking possession of the project upon completion.
When we undertake an EPC project, we are compensated, generally on a cash basis, for the completion of
the project and, in many instances, interim milestones. Our EPC contracts are on a cost plus basis, on a
fixed price or turnkey basis. Our recent EPC contracts for third parties typically contain price variation or
escalation clauses that provide for either reimbursement by the client in the event of a variation in the
prices of key materials (e.g., steel and cement) or a formula that splits the contract into pre-defined
components for materials, labour and fuel and links the escalation in amounts payable by the client to pre-
defined price indices published periodically by the RBI or the Government. However, some contracts do
not include such price variation or escalation clauses and we may in the future enter into more of these
types of contracts. In those instances, we face the risk that the price of key materials and other inputs will
increase during the project execution period and we will be unable to pass on the increases in such costs to
the client, which could have a material adverse effect on our results of operations.

Engineering and Design

We provide detailed engineering services, if required by the client, for the projects that we undertake.
Typically, for design-build projects, the client supplies conceptual information pertaining to the project and
spells out the project requirements and specifications. We are required to prepare detailed architectural and
/or structural designs based on the conceptual requirements of the client and also conform to various
statutory and code requirements.

For those particular segments in which we do not have in-house design capabilities, we outsource design
services from experienced consultants who specialise in the particular segment. Prior to bidding for the
project, our tendering department and senior management review the preliminary design prepared by these
consultants. Over the years, we have through a combination of experience and technical ability developed
expertise in assessing the preliminary pre-tender designs prepared by our consultants, vis-à-vis the
requirements of the client. After our initial review of the preliminary designs, we continue to confer with
our consultants to arrive at the final solution for the project. Once the project is awarded to us, our
consultants prepare detailed designs pursuant to the project requirements.

Procurement

Because procurement plays such a critical part in the success of any project, we maintain experienced staff
in our purchase department to carry out material, services and equipment procurement for all project sites.
Procurement is performed at our headquarters and at our project sites.

Upon award of a contract, the purchase department is provided with the project details along with the
budgeted rates for material, services and equipment. The material, services and equipment required for
projects are estimated by the engineering personnel from the individual project sites and then passed on to
the purchase department along with the schedule of requirements.

Our RMC and bitumen division currently provides our EPC division with its ready-mix concrete and
bitumen requirements.

Over the years we have developed relationships with a number of vendors for key materials, services and
equipment. We have also developed an extensive vendor database for various materials such as bitumen,
steel and aggregate for our road projects and distribution transformers, vacuum circuit breakers, current
transformers, potential transformers, lightning arrestors, rolled steel joist supports, conductors and power
and control cables for our power projects, and services such as labour contractors. Over and above the
quotations received at the time of bidding, the purchase department invites quotations from additional
vendors, if required. Vendors are invited to negotiate before finalizing the terms and prices. The materials

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ordered are provided to the sites from time to time as per their scheduled requirements. We maintain
material procurement, tracking and control systems, which enable monitoring of our purchases.

We typically use third-party transportation providers for the supply of most of our raw materials.
Transportation strikes by, for example, members of various Indian truckers’ unions and various legal or
regulatory restrictions placed on transportation providers have had in the past, and could have in the future,
an adverse effect on our receipt of supplies.

Procurement of material, services and equipment from external suppliers typically comprises a significant
part of a project’s cost. The ability to cost-effectively procure material, services and equipment, and meet
quality specifications for our projects is essential for the successful execution of such projects. We have
not entered into any long-term supply contracts with our suppliers. However, we continually evaluate our
existing vendors and also attempt to develop additional sources of supply for most of the materials, services
and equipment needed for our projects. If we are unable to procure the requisite quantities of materials,
services and equipment, our business and results of operations may be adversely affected.

Construction

The methodology of construction depends upon the nature of the project. We have an experienced
construction team and are able to conduct all construction activities ourselves. However, where it makes
commercial sense, we do hire subcontractors.

The issuance of a letter of acceptance or letter of intent by the client signifies that we have been awarded
the contract. Upon receipt of the letter, we typically commence pre-construction activities promptly, such
as mobilising manpower and equipment resources and setting up site offices, stores and other ancillary
facilities.
After the project site is handed over to us by the client, we perform preliminary works such as for a road
project surveying and levelling identification of road alignment, carrying out road inventory surveys, utility
surveys, encroachment surveys, tree surveys and soil investigations. Preliminary works for a power
distribution project typically include surveying and levelling land, designing, engineering and surveying
33KV & 11KV line routes and the preparation of drawings.

Construction activity typically commences once the client approves or issues designs and detailed
drawings. The project team immediately identifies and works with the purchase department to procure the
key construction materials and services required for commencing construction. Based on the contract
documents, a detailed schedule of construction activities is prepared. This schedule identifies interim
milestones, if any, stipulated in the contract with corresponding time schedules for achieving these
milestones.

The sequence of construction activities largely follows the construction schedule that was prepared
initially, subject to changes in scope requested by the client.

We monitor the progress of construction of our projects at each site as well as at our head office. We have
developed in-house module for monitoring on “milestone tracker” (i.e., the resources to be deployed and
the efforts to be put in to complete the project within the targeted completion date) for projects as well as
costs on weekly basis. The module takes helps us to clear any back-log of work caused by unforeseen
circumstances, such as natural calamities and disruptions, by estimating the additional resources to be
deployed to make up for the lost time to complete the project on schedule. We have in-place a Business
Monitoring System for identifying project delays, to help ensure that the projects are competed on or prior
to schedule.

We have executed all of our projects on time or prior to the scheduled completion date. For example, we
constructed a 90-metre long bridge on the Mahad-Pandharpur state highway in 38 days compared with the
scheduled construction time of 12 months. Similarly, the construction of a 100-metre long bridge called
the Pargaon Bridge, a BOT project, was completed in 65 days compared with the scheduled construction

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time of 18 months. Both of these construction feats have been recognised in Limca Book of Records. There
have been no instances where our performance guarantees have been invoked by our clients.

Our Construction Equipment

We believe that our strategic investment in equipment and fixed assets is an advantage that enables us to
rapidly mobilize our equipment to project sites as needs arise. We have a large fleet of construction
equipment assets. Having such an asset base is in our view an important advantage in serving the
technically challenging and diverse nature of the construction projects in which we are engaged. Our
equipment is managed, maintained and operated by our personnel at our maintenance and repair facility at
the project location.

As at March 31, 2010, we had invested Rs. 1,347.35 million (gross block) in plant and machinery for use
by our EPC division. The material types of plant and machinery in terms of value used by our EPC division
as at March 31, 2010 is set forth in the following table:

Name of Equipment (Use) Number of Units (Total Production

Rate)
Batch type hot mix plant (for preparing bitumen) 9 (1,138 metric tons per hour)
Paver (for paving the concrete road layers) 3 (525 cubic metres per hour)
Paver (for paving the bitumen road layers) 11 (3,650 metric tons per hour)
Dumper and tipper (for transporting materials) 105
Concrete pump (for pumping concrete to elevated places) 19
Transit mixer (for transporting RMC) 86
Loader (for loading and handling the material) 19
Excavator cum back hoe loader (for excavating earth) 12
Milling machine (for [removing existing weathered bitumen 1
road surfaces and reusing it])
Crusher plant (for crushing the stones and making aggregate) 7 (1,000 MT per hour)
Diesel generator sets (for power generation) 88
Batch plant (for preparing concrete) 14 (650 cubic metres per hour)
Wet mix macadam plant (for mixing aggregate and soil) 7 (1,180 metric tons per hour)

Order Book

As at May 31, 2010, the Company had contracts for constructing four roads for its subsidiaries and two
roads for associates. In addition, the Company had contracts with third parties to construct five road
projects and six power related projects. As at May 31, 2010, the Company’s Order Book was Rs. 16,153.64
million. The orders in the Company’s Order Book constitute the balance value of work orders for EPC and
BOT assignments, including the balance value of construction of BOT projects which will be capitalised by
the Company on a consolidated basis. The orders in the Company’s Order Book are subject to the
cancellation and modification provisions contained in the various contracts and other relevant
documentation.

The following table sets forth the value of the Company’s Order Book as at March 31, 2009, March 31,
2010 and May 31, 2010:
(Rs. in million)
As at March 31, As at March 31, As at May 31, 2010
2009 2010
Our BOT Projects(1) 6,872.58 2,501.97 2,064.42 (3)
Third Party Road Contracting(2) 3,723.60 7,449.78 8,086.74
Electrical Work Contracting 6,418.77 6,696.98 6,002.48
Building Contracting 19.95 8.94 0.00
Total 17,034.90 16,657.67 16,153.64 (3)

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(1) Comprises the balance value of construction costs, which will be capitalised by the Company on a consolidated
basis.
(2) Includes value of work to be done for associated companies.
(3) The Company’s Order Book as at May 31, 2010 does not include the construction of the NH-6 Sambalpur-Baragarh
road in Orissa for a fixed fee of Rs. 10,080.00 million and the construction of the NH-4 Belgaum-Dharwad road in
Karnataka for a fixed fee of Rs. 6,300.00 million. The Company received the work orders for these projects in June
2010 from Ashoka Belgaum Dharwad Tollway Private Limited and Ashoka Sambalpur Baragarh Tollway Private
Limited, respectively, entities in which the Company has a 98.67% beneficial interest. These BOT projects were
awarded to us in May 2010 and the concession agreements were signed in June 2010. In addition, the Company’s Order
Book as at May 31, 2010 does not include the construction of a 1,500 KW per hour hydro electric power plant in
Waghur, Maharashtra, the estimated EPC cost of which is approximately Rs. 100 million. In April 2010, the
Government of Maharashtra issued us a letter of allotment for us to develop the power plant on a BOOT basis but the
formal agreement for this project has not been entered into yet.

Segment Composition of Balance Order Book

Approximately 12.78% of the Company’s Order Book as at May 31, 2010 related to our BOT projects,
50.06% related to third party/associate EPC projects in the road contracting segment and 37.16% related to
electrical work contracting. We expect to complete almost all of our existing Order Book by December
2012, except the work on the NH-3 Pimpalgaon–Nashik–Gonde Road, which we plan to complete by July
2012.

Client Composition of Balance Order Book

Approximately 99.63% of the Company’s Order Book as at May 31, 2010 related to projects sponsored by
government or governmental agency clients, including the Central Government, State Governments and
municipalities, 0.37% related to projects sponsored by private sector clients and zero percent related to
projects sponsored by multilateral agencies.

Geographical Spread of Balance Order Book

The geographical spread of the Company’s Order Book among the various Indian states and territories as at
May 31, 2010 was as follows: 73.85% Maharashtra; 9.78% Madhya Pradesh; 10.63% Chhattisgarh; 0.37%
Rajasthan and 5.37% Gujarat.

The following table sets forth details of the contracts in the Company’s Order Book as at May 31, 2010.

(Rs. in millions)
Contract Price/ Estimated Amount
Contract Price/Estimated Outstanding as
Construction Cost to be at May31, 2010
Capitalised
BOT Projects
Construction of NH-6 Bhandara Road in Maharashtra 5,400.00 208.39
Construction of NH-6 Durg Road in Chhattisgarh 5,390.00 1,716.53
Construction of some items work for the Pune - Shirur 84.74 59.40
Road
Construction of some items work for the Indore 80.10 80.10
Edalabad Road
EPC Road Contracting for Third Parties/Associates
Construction of the Maharashtra Pimpalgaon-Nashik- 5,853.31 5,562.21
Gonde section of the NH-3 road, except for an elevated
corridor including utility on sanction basis
Construction of Jaora–Nayagaon Road in Madhya 4,557.00 317.87
Pradesh
Bus Rapid Transit System (BRTS) in Bhopal City, 1,319.72 1,181.70
Bhopal

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 Contract Price/ Estimated Amount
Contract Price/Estimated Outstanding as
Construction Cost to be at May31, 2010
Capitalised
MMRDA Bandra Kurla Complex Concrete Road 152.80 3.67
Project
Bus Rapid Transit System (BRTS) in Surat City, Surat 867.00 867.00
Construction of Roads for Integrated Road 93.90 93.90
Development Program for Shirdi Town - Package - I,
Section A - Shridi Nimagaon Shiv Road, Shrid Rui
road, Shirdi Kamkuri road, Dwarkamai to
TajimkhanKhan, Baba Chowk and Palkhi road to new
Pimpalwadi road, Shirdi
Integrated Improvement cum Performance Based 84.50 60.47
Maintenance on Phalodi to Pachpadra Road in
Rajasthan (package: PR 1)
EPC Power Contracting
Mahavitran Infrastructure Plan – Phase – I – T8 – 2,679.12 810.78
Aurangabad MSEDCL Project
Mahavitran Infrastructure Plan – Phase – II – T36 – 2,763.54 1,979.01
Jalna MSEDCL Project
Mahavitran Infrastructure Plan – Phase – II – T52 – 1,315.10 807.52
Karjat MSEDCL Project
Mahavitran Infrastructure Plan – Phase – II – T54 – 1,034.90 816.69
Dondaicha MSEDCL Project
Mahavitran Infrastructure Plan – Phase – II – T59 – 1,229.50 829.97
Dharangaon MSEDCL Project
Mahavitran Infrastructure Plan – Phase – II – T65 – 1,166.29 758.51
Shahada MSEDCL Project
Total 34,071.52 16,153.64 (1)

(1) The Company’s Order Book as at May 31, 2010 does not include the construction of the NH-6 Sambalpur-Baragarh
road in Orissa for a fixed fee of Rs. 10,080.00 million and the construction of the NH-4 Belgaum-Dharwad road in
Karnataka for a fixed fee of Rs. 6,300.00 million. The Company received the work orders for these projects in June
2010 from Ashoka Belgaum Dharwad Tollway Private Limited and Ashoka Sambalpur Baragarh Tollway Private
Limited, respectively, entities in which the Company has a 98.67% beneficial interest. These BOT projects were
awarded to us in May 2010 and the concession agreements were signed in June 2010. In addition, the Company’s Order
Book as at May 31, 2010 does not include the construction of a 1,500 KW per hour hydro electric power plant in
Waghur, Maharashtra, the estimated EPC cost of which is approximately Rs. 100 million. In April 2010, the
Government of Maharashtra issued us a letter of allotment for us to develop the power plant on a BOOT basis but the
formal agreement for this project has not been entered into yet.

RMC and Bitumen Division

Our RMC and bitumen division’s revenue was Rs. 775.59 million and Rs. 808.58 million for fiscal 2010
and fiscal 2009, respectively.

Our RMC and bitumen division supplies RMC to our EPC division as well as selling it to third parties. We
have 14 RMC plants with a total production capacity of 650 cubic metres per hour. We have four RMC
plants with a total production capacity of 240 cubic metres per hours that are only used for sales of RMC to
third parties: two plant in Mumbai with a capacity of 150 cubic metres per hour; one plant in Indore with a
capacity of 60 cubic metres per hour; and one plant in Nashik with a capacity of 30 cubic metres per hour.
The remaining 10 RMC plants are mainly used for captive use by our EPC division: two plants in Pune
with a capacity of 65 and 30 cubic metres per hour; one plant for use in constructing the NH–6 Bhandara
Road with a capacity of 30 cubic metres per hour; two plants for use in constructing the NH–6 Durg
Bypass, Chhattisgarh-Maharashtra Border Road with a capacity of 15 and 30 cubic metres per hour; two

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plants for use in constructing the Jaora-Nayagaon Road with a capacity of 15 and 30 cubic metres per hour;
two plants for use in constructing the NH-3 Pimpalgaon – Nashik – Gonde road with a capacity of 60 and
120 cubic metres per hour; and one plant in Sinnar with a capacity of 15 cubic metres per hour.

We have 86 concrete transit trucks and 19 concrete pumps.

We sell our RMC directly to third parties at negotiated rates, with prices linked to the prevailing market
price for raw materials, primarily cement. We do not have any long-term contracts for the sale of RMC.

The raw materials used to make our ready-mix concrete are cement, metal, sand and construction
chemicals. We have not entered into any long-term supply contracts with our suppliers of raw materials. In
the past, we have experienced some difficulties and delays in obtaining adequate supplies of cement,
although we have not experience such difficulties or delays since June 2008. If we cannot obtain adequate
supplies of cement not only could it have an adverse effect on our EPC business but we may be unable to
sell ready-mix cement to third parties, which could have a material adverse effect on our ready-mix
concrete business and our results of operations and financial condition.

This division also sells and processes bitumen to a higher grade for use in road projects and supports our
EPC division by supplying it with bitumen. We have one plant in Pune for the processing of bitumen with a
capacity of 60 metric tonnes per day. We sell our bitumen directly to third parties at negotiated rates, with
prices linked to the prevailing market price of oil. We do not have any long-term contracts for the sale of
bitumen.

Ashoka Pre-Con Private Limited, in which the Company has a 51% interest, manufactures pre-stressed
concrete poles at its factory in Sinnar, Nashik, Maharashtra The factory has a production capacity of 96,000
poles per annum. Commercial production began in September 2009. The Project Cost for the factory was
Rs.62.33 million. We intend that a substantial amount of the production will be used by our EPC division in
power sector EPC work as well as in bridge and road projects and the rest will be sold to third parties. For
further details on Ashoka Pre-Con Private Limited, please see the section entitled “History and Certain
Corporate Matters – Our Subsidiaries” on page 152 of this Prospectus.

Toll Collection Contract Division

We set up our toll collection contract division to leverage our experience of collecting tolls on our BOT
projects and our proprietary computerised toll revenue auditing system. To date, we have entered into four
agreements to collect tolls on roads/bridges owned and constructed by third parties, although our last
contract expired in February 2007.

Business Development

We enter into contracts primarily through a competitive bidding process. Government and other clients
typically advertise potential projects in leading national newspapers or on their websites. Our tendering
department regularly scans newspapers and websites to identify projects that could be of interest to us. The
head of the tendering department evaluates bid opportunities and decides whether we should pursue a
particular project based on various factors, including the client’s reputation and financial strength, the
geographic location of the project and the degree of difficulty in executing the project in such location, our
current and projected workload, the likelihood of additional work, the project’s cost and profitability
estimates and our competitive advantage relative to other likely bidders. Once we have identified projects
that meet our criteria, we submit an application to the client according to the procedures set forth in the bid
process.

Tendering

We have a centralized tender department that is responsible for applying for all pre-qualifications and
tenders for BOT projects, EPC contracts and toll collection contracts. Our tender department comprises
two cells of three people each: the marketing cell and the technical cell.

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The tender department evaluates our credentials vis-à-vis the stipulated eligibility criteria. We endeavour to
qualify on our own for projects in which we propose to bid. However, in order to meet specific eligibility
requirements for certain larger BOT projects, including requirements relating to particular types of
experience and financial resources, we may seek to form project-specific joint ventures or special purpose
vehicles with other companies.

A notice inviting bids may either involve pre-qualification, or short-listing of contractors, or a post-
qualification process. In a pre-qualification or short-listing process, the client stipulates technical and
financial eligibility criteria to be met by the potential applicants. Pre-qualification applications generally
require us to submit details about our organizational set-up, financial parameters (such as turnover, net
worth and profit and loss history), employee information, plant and equipment owned, portfolio of executed
and ongoing projects and details in respect of litigations and arbitrations in which we are involved. In
selecting contractors for major projects, clients generally limit the issue of tender to contractors they have
pre-qualified based on several criteria, including experience, technical ability and performance, reputation
for quality, safety record, financial strength, bonding capacity and size of previous contracts in similar
projects, although the price competitiveness of the bid is usually a significant selection criterion. Pre-
qualification is key to our winning major projects and we continue to develop our pre-qualification status
by executing a diverse range of projects and building our financial strength.

If we pre-qualify for a project, the next step is to submit a financial bid. Prior to submitting a financial bid,
we carry out a detailed analysis of the proposed project, including performing a detailed study of the
technical and commercial conditions and requirements of the tender followed by a site visit. Our tendering
department determines the bidding strategy depending upon the type of contract. For example, if the
contract is for building a road, we study the suitability of location of the project, our past experience in that
area, comfort level with the client and availability of required resources, etc.

A site visit enables us to determine the site conditions by studying the terrain and access to the site.
Thereafter, a local market survey is conducted to assess the availability, rates and prices of key construction
materials and the availability of labour and specialist sub-contractors in that particular region. Sources of
key natural construction materials, such as quarries for aggregates, are also visited to assess the availability,
leads and quality of such material. The site visit also allows us to determine the incidence and rates of local
taxes and levies, such as sales tax or value added tax, octroi and cess. Our finance department assists in
assessing the feasibility of the project.

In the case of a BOT project bid, it is crucial for us to assess traffic patterns in order to make a financially
feasible bid. Over the course of our more than 12 years in toll-based BOT projects, we have developed an
in-house traffic study team, which has the dual responsibility of conducting pre-bidding traffic surveys and
monitoring toll collections. Our pre-bidding traffic surveys can range from a minimum of seven days to as
much as six months, depending on the size of the road. Our traffic studies are designed keeping in mind
various factors such as the nature of the traffic (e.g., local or long-distance), seasonality in traffic and traffic
density. The traffic surveys include counting the number of vehicles as well as noting vehicle number
plates to understand the origin or destination of the vehicles on the road. Our traffic forecasts also take into
account alternative routes and proposed alternative routes and any proposed developments in the area. Our
in-house traffic study team has an in-depth knowledge of traffic patterns not only in Maharashtra, Madhya
Pradesh and Chhattisgarh where currently have BOT road projects, but also in Tamil Nadu, Karnataka,
Andhra Pradesh, Gujarat, Rajasthan, Uttar Pradesh and Punjab. Based on our traffic study assessments, we
are able to evaluate potential toll revenues for the project going forward.

Our representatives attend the pre-bid meetings convened by the clients, during which we raise any queries
or requests for amendments to certain conditions of the proposed contract. Any ambiguities or
inconsistencies in the document issued by the client are brought to the attention of the client for further
clarification.

The tendering department invites quotations from vendors, sub-contractors and specialist agencies for
various items or activities in respect of the tender. This data supplements the data gathered by the market

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survey. The gathered information is then analysed to arrive at the cost of items included in the BOQ. The
estimated cost of items is then marked up to arrive at the price to the client. The basis of determination of
the mark-up is based in part on the evaluation of the conditions of the contract.

Our finance department assesses the financial feasibility of all tenders.

Competition

Our competition for BOT projects and EPC contracts depends on the size, complexity and location of the
project and, for BOT projects, the risks relating to toll revenue generation. While service quality, technical
ability, performance record, experience, health and safety records and the availability of skilled personnel
are key factors in client decisions among competitors, price (or in the case of BOT projects, either the
amount of the grant or the amount a party tendering for a project is willing to pay for the right to receive
the concession) is often the deciding factor in most tender awards. According to the CRISIL Infrastructure
Report, July 2007, there are over 200 major construction companies in India, many of which are either
involved in BOT projects or have stated a desire to be involved in BOT projects. However, our main
competitors for BOT projects and EPC road contracts include the Gammon group, Larsen & Toubro
Limited, IVRCL Infrastructure Limited, Nagarjuna Constructions Company Limited, Hindustan
Construction Company Limited, Madhucon Projects Limited and IRB Infrastructure Developers Limited.
In addition, our main competitors for power EPC work include Kalpataru Power Transmission Limited,
Deepak Cables (India) Limited, Vijay Electricals Limited and SMS Infrastructure Limited and our main
competitors in developing power plants are Arch Hydro Power Project, Pratibha Industries Limited, Silver
Jubilee Infra, Celerity Power Pvt. Ltd., and SMC Infra Pvt. Ltd. Some of our competitors may have
significantly greater resources than we do.

The RMC business is a relatively new business in India and there are only a few large established
companies in this market. The firms that solely operate in the ready-mix concrete market are ACC Limited,
Ultratech Cement Limited and Ambuja Cements Limited. In addition, there are some large construction
companies that sell ready-mix cement to third parties, but this is not the main focus of their businesses.
Because RMC must be delivered within three hours of being poured into a transit mixer, competition is
localised. Customers generally place orders based on the closeness of the competing firms’ ready-mix
concrete plants and the price charged.

Insurance

Our operations are subject to hazards inherent in providing engineering and construction services, such as
risk of equipment failure, work accidents, fire, earthquake, flood and other force majeure events, acts of
terrorism and explosions including hazards that may cause injury and loss of life, severe damage to and the
destruction of property and equipment and environmental damage. We may also be subject to claims
resulting from defects arising from engineering, procurement or construction services provided by us
within the warranty periods extended by us, which can range from 12 to 60 months from the date of
commissioning.

We obtain specialized insurance for construction risks and third party liabilities for most projects for the
duration of the project and the defect liability period. We generally maintain insurance covering our assets
and operations at levels that we believe to be appropriate. Risks of loss or damage to project works and
materials are often insured jointly with our clients.

Our significant insurance policies consist of coverage for risks relating to physical loss or damage, business
interruption loss, fidelity loss and money stolen in transit. Loss or damage to our materials and property,
including contract works, whether permanent or temporary, and materials or equipment supplied by us or
supplied to us, are generally covered by “contractors’ all risks” insurance. Under the all risks insurance
policy we are also provided cover for price escalation, debris removal and surrounding properties. Under
our general public liability insurance policy, we are indemnified against legal liability to pay damages for
third party civil claims arising out of bodily injury or property damage caused by an accident during the
project in the course of business.

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Wherever the contract and sub-contract requires us to take insurance, appropriate insurance coverage is
taken.

We also maintain automobile policies and workmen’s compensation policies wherever required as well as
hospitalization and group personnel accident policies for our permanent employees.

Guarantees

We are often required to provide financial and performance guarantees guaranteeing our performance and
financial obligations in relation to a project. The amount of guarantee facilities available to us depends
upon our financial condition and the availability of adequate security for the banks and financial institutions
that provide us with such facilities. There have been no instances where our performance guarantees have
been invoked by our clients.

Our Employees

We believe that our well-trained employee base is a key competitive advantage. As at March 31, 2010, our
work force consisted of 2,412 full-time employees, including 1,153 technical staff.

We are committed to the development of the expertise and know-how of our employees through regular
technical seminars and training sessions organised or sponsored by the Company.

Our personnel policies are aimed towards recruiting the talent that we need, facilitating the integration of
our employees into the Company and encouraging the development of skills in order to support our
performance and the growth of our operations.

In December 2007, the Company adopted an employee share option plan pursuant to which certain
employees are eligible to be awarded options to purchase Equity Shares. For more details on our employee
share option plan, see the section entitled “History and Certain Corporate Matters” on page 137 of this
Prospectus. We believe that by granting our employees options to purchase Equity Shares it will further
motivate them to make our business even more successful.

None of our employees are in a union. We have not lost a day to industrial action in our history of
operations. As such, we consider our relations with our employees to be good.

Health, Safety and Environment

We are committed to complying with applicable health, safety and environmental regulations and other
requirements in our operations and have a documented policy in place. For details of the various laws
applicable to us, please see the section entitled “Regulations and Policies” on page 132 of this Prospectus.

To help ensure effective implementation of our practices, at the beginning of every project we seek to
identify all potential material hazards, evaluate all material risks and institute, implement and monitor
appropriate controls. We believe that accidents and occupational health hazards can be significantly
reduced through the systematic analysis and control of risks and by providing appropriate training to
management, employees and sub-contractors. We seek to work proactively towards minimizing or
eliminating the impact of hazards to people and the environment. At large project sites, we employ safety
personnel dedicated to helping ensure the implementation of our health, safety and environmental policies
at such sites. Project managers are principally responsible for ensuring safety standards are met at small
sites.

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Our Properties

The Company’s registered office and corporate headquarters are located at Survey No. 861, Ashoka House,
Ashoka Marg, Vadala, Nashik, Maharashtra - 422 011, India. The Company owns this 2,963.29 square
metre building.

A summary of other properties owned by us is set forth below:

Details of Property Area in Square Purpose

Metres
Flat no. 6 B3 and at Ashoka Garden, Panvel 135.31 sq. metres Office Premises

Flat no. 5 B2 and at Ashoka Garden, Panvel 55.51 sq. metres Office Premises

Survey nos. 417/1/1 to 417/1/6 and 417/1/6/1, in Musakhedi, 13,680 sq. metres RMC Activity
Indore
Gat no. 1546, Borgaon, Khandwa (146 km), Indore 174,300 sq. RMC Activity
metres
Gat nos. 238 and 236/2, Sagadiya, Sanawad, (88 Km) Indore 61,061 sq. metres RMC Activity

Plot no. A/21/2 at Hazira Surat Iccapur, GIDC Bhatkor 7,712 sq. metres RMC Activity

Plot no. 43, Sinner Survey No. 936/1/3+936/2A+936/3 in Dist 250.31 sq. metres Machinery and
Nasik, Maharashtra Store Yard
1198/3B Sinnar, Nasik, Dist Nasik, Maharashtra 1,972 sq. metres Machinery and
Store Yard
Plot no. 38, Survey No-936/1/3+936/2A+936/3, Sinnar, Dist 138 sq. metres Machinery and
Nasik, Maharashtra Store Yard
S no. 284 -1-A, Behind K K Wagh College, Mumbai-Agra 427 sq. metres Machinery and
Road, Nasik Store Yard
Plot no. 11, Survey No-935/ 3 B, Malegaon MIDC, Sinner 324 sq. metres Machinery and
Store Yard
Land at Taluka Karjat, Mirajgaon 110,200 sq. Project Site Land
metres
S. No. 19/2, Umbergaon, Sarigam 197.63 sq. metres Project Site Land

S. Nos. 162/4, 184/1 to 3 Umrikheda – Indore, Indore - 16,200 sq. metres Project Site Land
Khandwa Main Road
Flat No. 1001, Great Eastern Garden, Kanjurmarg, Mumbai 140 sq. metres Office and
Residential
Premises
Flat No. 802, Hilla Heights, 147, Ali Bhai Premji Rd., Grant 52.03 sq. metres Office and
Road (East), Mumbai 400 007 Residential
Premises
Flat No. 20A and 20B, Ashoka Residency, Pandit Colony, 102.19 sq. metres Residential
Nasik Premises
N-34-S-1, Ranenagar, Nasik 37 sq. metres Residential
Premises
½, Riverview, Ashoka Stambh, Nasik 69 sq. metres Office

Survey no. 94 - Plot No 70, Extension ring road, Indore 109.65 sq. metres Machinery and
Store Yard
Survey no. 94 - Plot No 1, Extension ring road, Indore 126.75 sq. metres Machinery and
Store Yard
Survey no. 94 - Plot No 72, Extension ring road, Indore 163.28 sq. metres Machinery and
Store Yard

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 Details of Property Area in Square Purpose
Metres
Survey no. 94 - Plot No 73 Extension ring road, Indore 163.28 sq. metres Machinery and
Store Yard
Survey no. 94, Plot No. 76, Extension ring road, Indore 156.82 sq. metres Machinery and
Store Yard
Survey no. 94, Plot no. 75, Extension ring road, Indore 163.28 sq. metres Machinery and
Store Yard
Survey no. 94, Plot no. 74, Extension ring road, Indore 163.28 sq. metres Machinery and
Store Yard
Survey no. 94, Plot No. 71, Extension ring road, Indore 191.19 sq. metres Machinery and
Store Yard
Gat No. 41 (earlier survey no. 82/1), Gonde Dumala, Taluka 250 sq. metres Project Site Land
Igatpuri, District Nasik
Gat No. 45 (earlier survey no. 81/2), Gonde Dumala, Taluka 1,510 sq. metres Project Site Land
Igatpuri, District Nasik
Gat No. 46 (earlier survey no. 81/3 & 82/6), Gonde Dumala, 1,800 sq. metres Project Site Land
Taluka Igatpuri, District Nasik
Gat No. 55 (earlier survey no. 20/3 & 20/4), Gonde Dumala, 2,060 sq. metres Project Site Land
Taluka Igatpuri, District Nasik
Gat No. 258 (earlier survey no. 36/2 & 37/5), Gonde Dumala, 1,510 sq. metres Project Site Land
Taluka Igatpuri, District Nasik
Gat No. 259 (earlier survey no. 35/5), Gonde Dumala, Taluka 1,010 sq. metres Project Site Land
Igatpuri, District Nasik
Gat No. 257 (earlier survey no. 36/1), Gonde Dumala, Taluka 1,650 sq. metres Project Site Land
Igatpuri, District Nasik
Gat No. 256 (earlier survey no. 35/4 & 37/4), Gonde Dumala, 1,3010 sq. metres Project Site Land
Taluka Igatpuri, District Nasik
Gat No. 260 (earlier survey no. 33/3), Gonde Dumala, Taluka 18,300 sq. metres Project Site Land
Igatpuri, District Nasik
Gat No. 262, Gonde Dumala, Taluka Igatpuri, District Nasik 8,200 sq. metres Project Site Land

Gat No. 273, Gonde Dumala, Taluka Igatpuri, District Nasik 8,800 sq. metres Project Site Land

Gat No. 102, Pimplad (N), Taluka Nasik, District Nasik 17,400 sq. metres Project Site Land

Gat No. 265, Gonde Dumala, Taluka Igatpuri, District Nasik 14,300 sq. metres Project Site Land

Gat No. 51, Gonde Dumala, Taluka Igatpuri, District Nasik 31,550 sq. metres Project Site Land

Survey no. 854/2/8/1, Plot no. 8A, Nasik 221.58 sq. metres Guest House

E-28 and E-29, Ashoka Arch, Market Yard, Gultekdi, Pune 749.63 sq. metres Office Premises

Plot No. 411/1, 443, 445, 446, 414/1, 414/2, 413/3, 413/1A/1, 77,600 sq. metres Project Site Land
442, 444, 411/2 -NH 6 in mauza Manegaon Bhandara,
Maharashtra,
Plot No. 502,503, 505/1/3 -NH 6 in mauza Lakhani Bhandara, 14,900 sq. metres Project Site Land
Maharashtra,
Plot No. 107,108, 109/1, 109/2, 109/3, 111 in mauza Salai, Tal. 53,600 sq. metres Project Site Land
Devari, District Gondia (Maharashtra)
S. No. 861/1+2+4+5+6+7 Plot No. 1, Nashik 449.14 sq. metres Office Premises

S. No. 861/1+2+4+5+6+7 Plot No. 11, Nashik 396.76 sq. metres Office Premises

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 Details of Property Area in Square Purpose
Metres
S. No. 861/1+2+4+5+6+7 Plot No. 2+3, Nashik 2,338.78 sq. Office Premises
metres
S. No. 372 of Nashik Transfer of Development Rights (TDR) 2,320 sq. metres Office Premises
Extension
S. No. 10/3/1 Wadala (Nashik) 231.12 sq. metres Guest House

S. No. 156(153)/1, Sinnar Tal. Sinnar District Nashik 33,800 sq. metres Industry

S. No. 211+212+257, Plot No. 440, Talegaon (Bk) Tal. 280 sq. metres Training Camp
Igatpuri, District Nashik
S. No. 211+212+257, Plot No. 444, Talegaon (Bk) Tal. 280 sq. metres Training Camp
Igatpuri, District Nashik
S. No. 211+212+257, Plot No. 440, Talegaon (Bk) Tal. 280 sq. metres Training Camp
Igatpuri, District Nashik
S. No. 211+212+257, Plot No. 444, Talegaon (Bk) Tal. 280 sq. metres Training Camp
Igatpuri, District Nashik
S. No. 341 CTS No. 606, Building No. 13, Flat No. 201, 121.24 sq. metres Office Premises,
Bandra Mumbai Guest House
S. No. 341 CTS No. 606, Building No. 13, Flat No. 202, 121.24 sq. metres Office Premises,
Bandra Mumbai Guest House
S. No. 341 CTS No. 606, Building No. 13, Flat No. 203, 118.45 sq. metres Office Premises,
Bandra Mumbai Guest House

In addition, we lease properties required for construction of projects as and when required.

Our Intellectual Property

We have not patented our proprietary system and software for auditing toll revenue. The Company has
obtained registration of the Ashoka (logo) as a trademark in respect of roads, bridges and building
construction. The Company has also applied for trademark in relation to concrete. For details, please see
the section entitled “Government Approvals” on page 387 of this Prospectus.

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 REGULATIONS AND POLICIES

The following description is a summary of the relevant regulations and policies as prescribed by the
Government of India. The information detailed in this chapter has been obtained from publications
available in the public domain. The regulations set out below are not exhaustive, and is only intended to
provide general information to the investors and is neither designed nor intended to be a substitute for
professional legal advice.

Introduction

The Company’s principal business has been and is expected to continue to be divided into the engineering
and construction and infrastructure development.

Set forth below are certain significant legislations and regulations that generally govern this industry in
India:

Regulation of the Road Sector

The primary central legislations governing the roads sector are the National Highways Act, 1956 and the
National Highways Authority of India Act, 1988 (“NHAI Act”).

National Highways Act, 1956

Under this Act, the GOI is vested with the power to declare a highway as a National Highway and also to
acquire land for this purpose. The GOI may by notification, declare its intention to acquire any land when it
is satisfied that for a public purpose such land is required for the building, maintenance, management or
operation of a national highway. The National Highways Act prescribes the procedure for the same. Such
procedure relates to declaration of an intention to acquire, entering and inspecting such land, hearing of
objections, declaration required to be made for the acquisition and the mode of taking possession.

The central government is responsible for the development and maintenance of National Highways.
However, it may direct that such functions may also be exercised by state governments. Further, the GOI
has the power to enter into an agreement with any person for the development and maintenance of a part or
whole of the highway. Such person would have the right to collect and retain fees at such rates as may be
notified by the GOI.

The National Highways (Collection of Fees by any Person for the use of Section of National Highways/
Permanent Bridge/ Temporary Bridge on National Highways) Rules, 1997 provide that the GOI may enter
into agreements with persons for development and maintenance of the whole or part of a national
highway/permanent bridge/temporary bridge on national highway. Such person may invest his own funds
for development or maintenance and is allowed to collect and retain the fees at agreed rates from different
categories of vehicles for an agreed period for the use of the facilities created herein. The rates of fees and
the period of collection are decided by the GOI and the factors taken into account to decide the same
include expenditure involved in building; maintenance, management and operation of the whole or part of
such section; interest on the capital invested; reasonable return, the volume of traffic; and the period of
such agreement.

Once the period of collection of fees by the person is completed, all rights pertaining to the section,
permanent bridge or the temporary bridge on the national highway would be deemed to have been taken
over by the GOI.

National Highways Authority of India (“NHAI”)

The NHAI is responsible for the development, maintenance and management of national highways. NHAI
was constituted by the NHAI Act in 1995. Under the NHAI Act, the GOI carries out the development and

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maintenance of the national highway system through NHAI, an autonomous body. NHAI has the power to
enter into and perform any contract necessary for the discharge of its functions under the NHAI Act. The
NHAI Act prescribes a limit in relation to the value of the contracts that may be entered into by NHAI.
However, such contracts can exceed the value so specified with the prior approval of the GOI. The NHAI
Act provides that the contracts for acquisition, sale or lease of immovable property cannot exceed a term of
thirty days.

NHAI’s primary mandate is the time and cost bound implementation of the National Highways
Development Programme (“NHDP”) through a host of funding options, which include fund assistance from
external multilateral agencies like the World Bank and ADB. The NHAI also strives to provide road
connectivity to major ports. NHAI’s role encompasses involving the private sector in financing the
construction, maintenance and operation of the national highways and wayside amenities. The NHAI is
also involved with the improvement, maintenance and augmentation of the existing national highways
network and implementation of road safety measures and environmental management.

The Highways Authority of India (Amendment) Bill, 2008, was approved by the Cabinet in October 2008.
It aims at increasing institutional capacity of NHAI and help execute the powers delegated to it. The
government plans to make NHAI a multi-disciplinary professional body with financial management and
contract management expertise.

The restructuring of the organisation envisages selection of the chairman by a search committee headed by
the cabinet secretary and comprising department of road transport and highways secretary, planning
commission secretary, a CMD or MD of a financial institution and one of the directors of Indian Institutes
of Management.

Government Policy Initiatives

In 1998, the Government commissioned the NHDP, which envisaged increasing to four/six lanes of 13,146
km of high-density national highways, and vested the responsibility of its implementation with the NHAI.
NHDP is being implemented in two parts, the first part is the Golden Quadrilateral Project, which
comprises the four-laning of NH corridors linking the four major metros, and the second part is the North-
South and East-West Corridors Project, which involves the development of national highway corridors
from Kashmir to Kanya Kumari and Silchar to Saurashtra.

Financing of the NHDP

The Government of India, under the Central Road Fund Act, 2000 (the “Fund”) created a dedicated fund
for NHDP by levying cess on high-speed diesel and petrol at the rate of Rs. 2.00 per litre. The allocation of
the Fund has been structured as follows:

x 50% of the cess collected from diesel is meant for rural roads;

x Allocation of fund from balance 50% cess from diesel and the entire cess on petrol is as follows:

(i) 57.5% on national highways;

(ii) 12.5% for road over bridges/rail over bridges;

(iii) 30% on roads other than national highways.

The other sources for financing of NHDP are through securitization of cess as well as involving the private
sector and encouraging Public Private Partnership (PPP). The NHDP is also being financed through long-
term external loans from the World Bank and ADB as well as through tolling of roads.

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Private Participation in NHDP

In an effort to attract private sector participation in the NHDP, the NHAI has formulated model concession
agreements where a private entity (the “Concessionaire”) is awarded a concession to build, operate and
collect toll on a road for a specified period of time, which is usually up to 30 years.

The bidding for the projects takes place in two stages as per the process provided below:

x in the pre-qualification stage, NHAI selects certain bidders on the basis of technical and financial
expertise, prior experience in implementing similar projects and previous track record; and

x in the second stage, NHAI invites commercial bids from the pre-qualified bidders on the basis of
which the right to develop the project is awarded.

The private entity meets the up front cost and expenditure on annual maintenance and recovers the entire
cost along with the interest from toll collections during the concession period. To increase the viability of
the projects, a capital grant of up to 40% is provided by the NHAI/GOI. The Concessionaire at the end of
the concession period transfers the road back to the Government free of charge. The Concessionaire’s
investment in the road is recovered directly through user fees by way of tolls. In annuity projects, the
private entity is required to meet the entire upfront cost (no grant is paid by NHAI/GOI) and the
expenditure on annual maintenance. The concessionaire recovers the entire investment through pre-
determined annuity payments by NHAI/GOI.

Tax incentives which are being provided to the private entity are 100% tax exemption for five years and
30% relief for the next five years, which may be availed of within a period of 20 years. The Government
has also allowed duty free import of specified modern high capacity equipment for highway construction.

Other Laws

The laws above are specific to the regulations specifically applicable to an operating business. The generic
regulations that are applicable to the Company include environmental laws, labour laws and other
applicable laws.

Environment Regulation

Infrastructure projects must also ensure compliance with environmental legislation such as the Water
(Prevention and Control of Pollution) Act 1974 (“Water Pollution Act”), the Air (Prevention and Control of
Pollution) Act, 1981 (“Air Pollution Act”) and the Environment Protection Act, 1986 (“Environment Act”).

The Water Pollution Act aims to prevent and control water pollution. This legislation provides for the
constitution of a Central Pollution Control Board and State Pollution Control Boards. The functions of the
Central Board include coordination of activities of the State Boards, collecting data relating to water
pollution and the measures for the prevention and control of water pollution and prescription of standards
for streams or wells. The State Pollution Control Boards are responsible for the planning for programmes
for prevention and control of pollution of streams and wells, collecting and disseminating information
relating to water pollution and its prevention and control; inspection of sewage or trade effluents, works
and plants for their treatment and to review the specifications and data relating to plants set up for treatment
and purification of water; laying down or annulling the effluent standards for trade effluents and for the
quality of the receiving waters; and laying down standards for treatment of trade effluents to be discharged.
This legislation debars any person from establishing any industry, operation or process or any treatment
and disposal system, which is likely to discharge trade effluent into a stream, well or sewer without taking
prior consent of the State Pollution Control Board.

The Central and State Pollution Control Boards constituted under the Water Pollution Act are also to
perform functions as per the Air Pollution Act for the prevention and control of air pollution. The Air
Pollution Act aims for the prevention, control and abatement of air pollution. It is mandated under this Act

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that no person can, without the previous consent of the State Board, establish or operate any industrial plant
in an air pollution control area.

The Environment Act has been enacted for the protection and improvement of the environment. The Act
empowers the GOI to take measures to protect and improve the environment such as by laying down
standards for emission or discharge of pollutants, providing for restrictions regarding areas where industries
may operate and so on. The GOI may make rules for regulating environmental pollution.

With respect to forest conservation, the Forest (Conservation) Act, 1980 prevents state governments from
making any order directing that any forest land be used for a non-forest purpose or that any forest land is
assigned through lease or otherwise to any private person or corporation not owned or controlled by the
Government without the approval of the GOI. The Ministry of Environment and Forests mandates that
Environment Impact Assessment (“EIA”) must be conducted for projects. In the process, the Ministry
receives proposals for the setting up of projects and assesses their impact on the environment before
granting clearances to the projects.

Hazardous Waste (Management, Handling and Transboundary Movement) Rules, 2008

The Hazardous Waste (Management and Handling) Rules, 1989, as amended, impose an obligation on each
occupier and operator of any facility generating hazardous waste to dispose of such hazardous wastes
properly and also imposes obligations in respect of the collection, treatment and storage of hazardous
wastes. Each occupier and operator of any facility generating hazardous waste is required to obtain an
approval from the relevant state pollution control board for collecting, storing and treating the hazardous
waste.

Public Liability Insurance Act, 1991

The Public Liability Insurance Act, 1991, as amended (the “Public Liability Act”) imposes liability on the
owner or controller of hazardous substances for any damage arising out of an accident involving such
hazardous substances. A list of ‘hazardous substances’ covered by the legislation has been enumerated by
the Government by way of a notification. The owner or handler is also required to take out an insurance
policy insuring against liability under the legislation. The rules made under the Public Liability Act
mandate that the employer has to contribute towards the Environment Relief Fund, a sum equal to the
premium paid on the insurance policies. This amount is payable to the insurer.

Foreign Ownership

Under the Industrial Policy and FEMA, FDI up to 100% is permitted in construction and related
engineering services. Further, the Industrial Policy now also permits foreign direct investment under the
automatic route in projects for construction and maintenance of roads, highways, vehicular bridges, toll
roads and ports and harbours.

Subject to certain conditions and guidelines, the Industrial Policy and FEMA further permit up to 100%
FDI in townships, housing, built-up infrastructure and construction development projects which include,
but are not restricted to, housing, commercial premises, hotels, resorts, hospitals, educational institutions,
recreational facilities and city and regional level infrastructure.

The RBI by its A.P. (DIR Series) circular No. 16 dated October 4, 2004 granted general permission for the
transfer of shares of an Indian company by Non-Residents to residents and residents to Non-Residents,
subject to the terms and conditions, including pricing guidelines, specified in such circular. No approvals of
the FIPB or the RBI are required for such Allotment of Equity Shares under this Issue.

Investment by FIIs

Subject to certain restrictions, FIIs including institutions such as pension funds, investment trusts, asset
management companies, nominee companies and incorporated, institutional portfolio managers can invest

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in all the securities traded on the primary and secondary markets in India. FIIs are required to obtain an
initial registration from the SEBI and a general permission from the RBI to engage in transactions regulated
under FEMA. FIIs must also comply with the provisions of the SEBI (Foreign Institutional Investors)
Regulations, 1995, as amended from time to time. The initial registration and the RBI’s general permission
together enable the registered FII to buy (subject to the ownership restrictions discussed below) and sell
freely securities issued by Indian companies, to realise capital gains or investments made through the initial
amount invested in India, to subscribe or renounce rights issues for shares, to appoint a domestic custodian
for custody of investments held and to repatriate the capital, capital gains, dividends, income received by
way of interest and any compensation received towards sale or renunciation of rights issues of shares.

Ownership Restrictions of FIIs

Under the portfolio investment scheme, the overall issue of equity shares to FIIs on a repatriation basis
should not exceed 24% of post-issue paid-up capital of a company. However, the limit of 24% can be
raised up to the permitted sectoral cap (which is 100% for the engineering and construction sector) for that
company after approval of the Board of Directors and shareholders of the company. As of date, no such
approval has been obtained. The total holding of a single FII should not exceed 10% of the post-issue paid-
up capital of the Company or 5% of the total paid-up capital in case such sub-account is a foreign corporate
or an individual. In respect of an FII investing in equity shares of a company on behalf of its sub-accounts,
the investment on behalf of each sub-account shall not exceed 10% of the total issued capital of that
company.

Other Laws and Regulations

Certain other laws and regulations that may be applicable to the Company include the following:

x Contract Labour (Regulation and Abolition) Act, 1970;

x Building and Other Construction Workers (Regulation of Employment and Conditions of Service)
Act, 1996;
x Inter State Migrant Workers Act, 1979;
x Factories Act, 1948;
x Payment of Wages Act, 1936;
x Payment of Bonus Act, 1965;
x Employees’ State Insurance Act, 1948;
x Employees’ Provident Funds and Miscellaneous Provisions Act, 1952;
x Equal Remuneration Act, 1976;
x Payment of Gratuity Act, 1972;
x Shops and Commercial Establishments Acts, where applicable;
x Minimum Wages Act 1948;
x Hazardous Chemicals Rules, 1989;
x Industrial Disputes Act, 1947;
x Mines and Quarries Act, 1954;
x The Explosives Act, 1884; and
x Workmen’s Compensation Act, 1923.

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 HISTORY AND CERTAIN CORPORATE MATTERS

Our History

We began our operations as a civil construction firm, Ashoka Constructions in November 5, 1983 as a
partnership between Ashok M. Katariya, Ramanal B. Parakh, Sushil R. Parakh, Narendra R. Shakadwipi
and Vimlabai R. Shakadwipi. We were reorganized as a company called Ashoka Buildcon Private Limited
in 1993 and engaged in the business of civil construction. In fiscal 1997, we entered into the business of
developing toll roads and toll bridges on a BOT basis.We became a public company on April 22, 2002 and
changed the name of the Company from Ashoka Buildcon Private Limited to Ashoka Buildcon Limited
with effect from April 22, 2002 pursuant to a special resolution of the shareholders passed at an EGM on
April 4, 2002. The fresh certificate of incorporation consequent on change of name was granted by the RoC
to the Company on April 22, 2002.

We build and operate roads and bridges in India on a build, operate and transfer (“BOT”) basis. We
believe we currently operate one of the highest number of toll-based BOT projects in India. In addition to
BOT projects, we also (i) engineer and design, procure the raw materials and equipment for and construct
roads, bridges, commercial buildings, industrial buildings and institutional buildings for third parties, (ii)
manufacture and sell ready-mix concrete (“RMC”) and bitumen and (iii) collect tolls on roads and bridges
owned and constructed by third parties. Our business is organised into four divisions:

x the BOT division;

x the engineering, procurement and construction (“EPC”) division;
x the RMC and bitumen division; and
x the toll collection contract division.

Prior to fiscal 1997, we were engaged solely in the engineering and construction of residential, commercial,
industrial and institutional buildings. In fiscal 1997, having acquired EPC skills, we also turned our
attention to bidding for contracts for toll roads and toll bridges on a BOT basis. We were awarded our first
BOT project, the Dhule bypass in Maharashtra, in fiscal 1997 and completed the construction of the road in
the same fiscal year. In fiscal 2000 we began manufacturing RMC solely for use by our EPC division. In
fiscal 2002 we began to manufacture RMC to sell to third parties as well as for use by our EPC division. In
fiscal 2005 we began processing bitumen to a higher grade at our facility in Pune for use in road projects.
Having developed systems and procedures for collecting tolls on our BOT projects, including developing
our own proprietary computerised toll revenue auditing system, we tendered for and were awarded our first
the contract to collect the tolls on a road owned and constructed by a third party.

In August 2006, IDFC PE II acquired 1,019,617 Equity Shares in the Company which made IDFC the
single largest shareholder with 18.18% equity stake in the Company. Currently, IDFC PE II holds
7,137,319 Equity Shares aggregating 15.62% of our paid-up Equity Shares, which makes it our single
largest shareholder as on the date of this Prospectus.

The Company’s registered office was changed from ½, River View Apartments, Gharpure Ghat, Ashok
Stambh, Nashik, Maharashtra - 422 002 to Survey No. 861, Ashoka House, Ashoka Marg, Vadala, Nashik,
Maharashtra - 422 011 by a resolution of our Board dated August 25, 2004.

The Company has 27 members as of the date of this Prospectus.

Scheme of Amalgamation (the “Scheme”)

On February 11, 2004, the Board of Directors of the Company approved the Scheme, under sections 391 to
394 of the Companies Act, for the amalgamation of Ashoka Info Private Limited; Ashoka Infra Private
Limited; Ashoka Vastu Private Limited; Ashoka Vastu Shilp Private Limited; Ashoka Shilp Vikas Private
Limited and Ashoka Construction Engineers Private Limited (the “Transferor Companies”) with the
Company. The Company obtained the approval of its shareholders for the Scheme on March 12, 2004. The
Scheme was approved by the Bombay High Court on December 3, 2004.

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Rationale for the Scheme of Amalgamation

The Transferor Companies and the Company were engaged in the business of builders and construction
contractors, including the business to build, erect, construct, operate on BOT basis, repair, execute and
develop infrastructural projects. The businesses of the Transferor Companies and the Company are of
similar and complementary nature. A consolidation of the Transfer Companies and the Company is
therefore expected to lead to greater synergy in operations, better management expertise, reduced expenses,
more efficient utilisation of capital and enhancement of the capability to invest in large and sophisticated
projects, thereby ensuring rapid growth of the amalgamated company.

A Summary of the Scheme of Amalgamation

A summary of the terms and conditions of the Scheme are:

(I) The Scheme envisaged the transfer of Undertakings (as defined below) of each of the Transferor
Companies to the Company pursuant to section 394 of the Companies Act, in accordance with the
terms of the Scheme.

(a) The “Appointed Date” for the Scheme was April 1, 2003.

(b) “Effective Date” means the date on which certified copies of orders of High Court of
Bombay sanctioning the Scheme are filed with RoC, Mumbai and RoC, Pune. The
certified copies of orders of High Court of Bombay sanctioning the Scheme were filed
with RoC, Mumbai and RoC, Pune on June 27, 2005.

(c) “Undertaking” shall mean and include:

(i) All assets, claims, whether provided in the books of account or not, estates,
interests, powers, properties, rights including toll collection rights upto the
concession period at the current terms and conditions or any revised terms and
conditions including revised concession period and titles of every description,
whether Permanent or Temporary, of or relating to, the Transferor Companies as
on the Appointed Date;

(ii) All the debts, duties, liabilities and obligations of every description of, or
pertaining to, the Transferor companies as and on the appointed Date, whether
provided for or not in the books of accounts of the Transferor Companies in its
Balance Sheet;

(iii) Advantages of whatsoever nature, agreements, allotments, approvals,

arrangements, authorisations, benefits, capital work-in-progress, concessions,
rights and benefit of all contracts, consents, currents assets, easements,
engagements, exemptions, fixed assets, industrial and intellectual property rights
of any nature whatsoever and licences in respect hereof, intangibles,
investments, leasehold rights, liberties, ownership flats, patents, permits,
purchase orders, letters of intent, pending orders, documents and records in
physical or electronic form, utilities including electricity and water connections
wheresoever available and deposits given for obtaining and continuing such
utilities, powers of every kind, nature and description whatsoever, privileges,
provision funds, quota rights, registrations, reserves, and all properties, movable
and immovable, real, corporeal or incorporeal, in possession or reversion,
present or contingent of whatsoever nature and wherever situated, right to use
and avail of telephones, telexes, facsimile connections, installations and other
communication facilities and equipments, tenancy rights, titles, trademarks,

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 pending applications for trademarks, trade names, and any other utilities held by
the Transferor Companies or to which the Transferor Companies are entitled to
as on the Appointed Date and cash and bank balances, all earnest moneys,
margin money and/or deposits including security deposits paid by the Transferor
Companies and all other interest wherever situate, belonging to or in the
ownership, power or possession and in the control of or vested in or granted in
favour of or enjoyed by or arising to the Transferor Companies.

The Scheme also included terms regarding the transfer of assets subject to charge, enforcement of
legal proceedings involving Transferor Companies, transactions/contracts of Transferor
Companies, conduct of business by Transferor Companies till effective date, accounting treatment
of the assets and liabilities of the Transferor Companies in the books of the Company, employees,
staff and workmen of the Transferor Companies and various funds of the Transferor Companies.

(II) Further, the terms of the Scheme involved the issue of shares by the Company to the shareholders
of each Transferor Company, upon the Scheme being finally effective, in consideration of the
transfer. The Scheme envisaged that the shares shall be issued in the following manner:

(a) To each equity shareholder of Ashoka Info Private Limited; 0.62 equity shares of Rs. 10
each fully paid-up of the Company for 1 equity share of Rs.10 each fully paid-up of
Ashoka Info Private Limited held.

(b) To each preference shareholder of Ashoka Info Private Limited; 1 preference share of
Rs.100 each fully paid-up of the Company for 10 preference shares of Rs.10 each fully
paid-up of Ashoka Info Private Limited held.

(c) To each equity shareholder of Ashoka Infra Private Limited; 0.12 equity shares of Rs. 10
each fully paid-up of the Company for 1 equity share of Rs.10 each fully paid-up of
Ashoka Infra Private Limited held.

(d) To each preference shareholder of Ashoka Infra Private Limited; 1 preference share of
Rs.100 each fully paid-up of the Company for 10 preference shares of Rs.10 each fully
paid-up of Ashoka Infra Private Limited held.

(e) To each equity shareholder of Ashoka Vastu Private Limited; 2.06 equity shares of Rs. 10
each fully paid-up of the Company for 1 equity share of Rs.10 each fully paid-up of
Ashoka Vastu Private Limited held.

(f) To each equity shareholder of Ashoka Vastu Shilp Private Limited; 0.51 equity shares of
Rs.10 each fully paid-up of the Company for 1 equity share of Rs.10 each fully paid-up
of Ashoka Vastu Shilp Private Limited held.

(g) To each preference shareholder of Ashoka Vastu Shilp Private Limited; 1 preference
share of Rs.100 each fully paid-up of the Company for 1 preference share of Rs.100 each
fully paid-up of Ashoka Vastu Shilp Private Limited held.

(h) To each equity shareholder of Ashoka Shilp Vikas Private Limited; 1.45 equity shares of
Rs.10 each fully paid-up of the Company for 1 equity share of Rs.10 each fully paid-up
of Ashoka Shilp Vikas Private Limited held.

(i) To each equity shareholder of Ashoka Construction Engineers Private Limited; 0.53
equity shares of Rs.10 each fully paid-up of the Company for 1 equity share of Rs.10
each fully paid-up of Ashoka Vastu Shilp Private Limited held.

The Scheme also mandated that the Company shall increase its share capital under section 94 of
the Companies Act and cause a special resolution to be passed in pursuance of section 81 (1A) of

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 the Companies Act, for the offer and allotment of its equity shares to the shareholders of
Transferor Companies. The said resolution was passed on March 17, 2005.

In accordance with the terms of the Scheme, upon the Scheme being sanctioned by the High Court
as from the effective date, the Transferor Companies shall stand dissolved without winding up and
the main objects of the MoA of the Transferor companies shall form part of the main objects of the
Company in addition to its existing objects.

Basis of valuation for the scheme of amalgamation

Valuation of operative companies: The net assets method was used for valuing operative companies which
is based on the value of a share with reference to the market value of assets and attached liabilities on the
valuation date as shown in the balance sheet. In computing the share value under net assets method, tax
liability arising out of the realisable value was ignored. In addition, there was no adjustment for the
estimated liability, which may arise in respect of the contingent liabilities, and for the miscellaneous
expenditure, as shown in the financial statements for the period ended March 31, 2003.

Valuation of infrastructure companies: The valuation of infrastructure companies along with Jaiswal
Ashoka Infrastructure Private Limited, Viva Infrastructure Private Limited and Viva Highways Private
Limited was done as per earnings capitalisation method on the basis of the balance sheet of March 31, 2003
and discounting of future cash flow at the rate of 10%. The earnings capitalisation method involves
determination of the future earnings level of the company from its usual operations. These earnings,
considered on a post-tax basis, are then capitalised at a rate of 10%, which in the opinion of the
management of the company, combines an adequate expectation of reward for enterprise and risk. The
business value so arrived at is then divided among shareholders. As per the management of the companies
since it could not be predict any material change in the tax provisions, which would have permanent tax
differences, no adjustment was to that effect.

Milestones achieved by the Company since its incorporation are listed below:

Year Milestones
1995-96 The Company completes its first major industrial project for Nilkamal Plastics Limited, Sinnar.
1997-98 The Company starts work on the Dhule bypass project, one of the first BOT projects in
Maharashtra. The Company completes this project within a period of nine months.

The Company completes the construction of one of the first few flyovers in Pune, the Kothrud
flyover.

The Company is awarded the ISO 9001:2000 certification for quality management systems.

The Company establishes the Ashoka Training Institute to promote excellence in civil
construction education and research.

The Company is awarded the National Award for ‘Most Outstanding Bridge-Excellent
Aesthetic Matching Environment’ for Kothrud flyover, Pune and Shivna bridge from Indian
Institute of Bridge Engineers.
2000 The Company was awarded its first project aggregating approximately Rs. 1,000 million on
NH-4.
2001 The Company completes construction of East Coast road between Chennai and Pudducherry
which was declared to be a model road by Government of India.

The Company is awarded the ‘NIMA Excellence Award’ by the Nashik Industries and
Manufacturer’s Association.

The Company starts its RMC business.

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 Year Milestones
2003-04 The Company completes construction of the Indore-Edalabad road, which was one of the
longest roads to be constructed on a BOT basis.
2006 The Company entered into a shareholders agreement with IDFC Infrastructure Fund 2 for issue
of 1,019,617 equity shares to IDFC Infrastructure Fund 2 at a price of Rs. 980.76 per equity
share.
2007 The Company received the Certificate of Registration regarding compliance with requirements
of ISO 9001: 2008 (Quality Asured Company), ISO 14001:2004 (Environmental Management
System) and OHSAS 18001:2007 (Safety Assured Company). The said certificate was granted
by International Standards Certifications Pty. Ltd.
2008 Ashok M. Katariya received the Life Time Achievement award from the Association of
Consulting Civil Engineers.
2009 The Company received the Certificate of Verification ISO 14064:1 for maintaining greenhouse
gases inventory in accordance wih GHG Policy. The said certificate was granted by
International Standards Certifications Pty. Ltd.

Confederation of Businesses (WORLDCOB), an international organization, for the first time

awarded 30 Indian companies with the world's most important business recognition, THE
BIZZ AWARDS 2010, for their business excellence.

Main Objects

Our main objects that enable us to carry on our business and proposed business as contained in our
Memorandum of Association are as follows:

To carry on the business of builders, masonry and general construction contractors and to construct, re-
construct, prepare sites, pull down, alter, improve, repair, develop, furnish, decorate and maintain
buildings, flats, mansions, dwelling houses, chawls, row houses, bungalows, garages, shops, offices,
commercial complex, works, industrial estates, factories, plants, mills, godowns, bridges, dams, roads,
hereditaments or other landed property, conveniences of all kinds and for this acquire by purchase, lease,
exchange, hire or otherwise lands properties, buildings, estates of any nature, tenure, description or interest
therein or connected therewith.

Amendments to our Memorandum of Association

Date Details of change

July 8, 1997 Increase in authorised capital from Rs.0.5 million to Rs. 5 million
September 2, Increase in authorised capital from Rs. 5 million to Rs. 10 million
1997
February 29, 2000 Increase in authorised capital from Rs. 10 million to Rs. 30 million
October 5, 2000 Increase in authorised capital from Rs. 30 million to Rs. 65 million
April 22, 2002 Conversion of the status of the Company from a deemed public company to a public
company
March 17, 2005 Increase in authorised capital from Rs. 65 million to Rs. 215 million
March 28, 2006 Increase in authorised capital from Rs. 215 million to Rs. 365 million
December 15, Increase in authorised capital from Rs. 365 million to Rs. 811 million
2007

Key Awards and Recognitions

Year Name of Award

1997 Awarded the ‘CM Shah Concrete Technology Award’ by Institution of Engineers, India, Pune
Local Centre
1997 Awarded the National Award for ‘Most Outstanding Bridge-Excellent Aesthetic Matching
Environment for Kothrud flyover, Pune and Shivna bridge from Indian Institute of Bridge

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Year Name of Award
Engineers
1998 The quality management systems of the Company were ISO 9001:2000 certified by International
Standards Certifications Pty Limited

Awarded the ‘Director’s Work of World Class Quality Award’ for the project executed for Proctor
and Gamble in Goa
2001 Awarded the ‘National Award –Most Outstanding Bridge’ for construction of Bhor bridge.
Awarded the NIMA Excellence Award by the Nashik Industries and Manufacturer’s Association.
2007 Awarded a certificate of involvement by the United States Environment Programme to Ashoka
Group for the contribution by Ashoka Group to the 2007 Billion Tree Campaign.
Awarded a certificate of registration ‘Environmental Management System 14001:2004; ISO
9001:2004; ISO 18001:2007’ from International Standards Certifications Pty. Ltd. for complying
with requirements of the International Standard
2008 Awarded a certificate of excellence in productivity, quality, innovation and management by the
Institute of Economic Studies, New Delhi
2010 Awarded the CIDC Vishwakarma Award 2010 by the Construction Industry Development Council
for the category of the professionally managed company with the turnover of more than Rs. 500
crores.

Awarded the recognition of “Inspirational Company” with all its rights and privileges by the World
Confederation of Businesses.

Summary of Key Agreements

Share Subscription and Shareholders’ Agreement

Share Subscription and Shareholders’ Agreement dated July 11, 2006 (the “Agreement”) between Ashoka
Buildcon Limited (the “Company”), Ashok Katariya, Sunil Raisoni, Satish Parakh, Narendra Shakadwipi,
Ashoka Buildwell and Developers Private Limited, AP Equipment, Shubham Developers, Ashoka
Township, Ashoka Bitucon Exim Private Limited, Ashoka Builders (Nasik) Private Limited, and other
shareholders of the Company (collectively referred to as the “Existing Shareholders” for the purposes of
this Agreement) and IDFC Infrastructure Fund 2 (the “Investor”) (the “Parties”).

Background: The Company and the Existing Shareholders had approached the Investor to subscribe to the
equity share capital of the Company. Based on the representations, warranties, covenants and undertakings
of the Company which are contained in the Agreement, the Investor had agreed to subscribe to 1,019,617
equity shares at a price of Rs. 980.76 per equity share, aggregating 18.18% of the fully diluted equity share
capital of the Company. The Parties agreed to enter into the Agreement to record their respective
representations, warranties, undertakings and covenants in respect of (i) the issue to, subscription and
payment by, the Investor of equity shares in the Company, and (ii) regulating as between themselves, the
ownership, management and other affairs of the Company.

Term: The Agreement will fall away if the Investor’s shareholding in the Company drops to less than 20 %
of the original shares allotted to it or the listing of the shares on a recognised stock exchange whichever is
earlier. However, in case of listing on a recognised stock exchange certain provisions relating to the
management of the Company which include the presence of independent directors on the board, the right of
Investor to appoint one director and one observer each, the appointment of one nominee director on the
boards of the project entities etc. and the meetings of the board and certain affirmative vote matters shall
continue to be in force and effect.

Project Committee: In accordance with the Agreement, the Board of Directors of the Company have
constituted a committee (Project Committee) to evaluate and strategise on projects to be bid for by the
Company and / or project entities.

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Annual Business Plan: In accordance with the Agreement the Existing Shareholders are required to prepare
an annual business plan, in the manner specified in the Agreement, for Company and project entities, which
shall be approved by the Investor and subsequently by the Board of Directors.

Transfer restrictions: The equity shares held by the Parties are subject to the following transfer restrictions:

(a) Minimum shareholding: The Existing Shareholders are required to maintain and retain control of
the Company and hold at least 51% of the total equity share capital of the Company.

(b) Permitted transfers: Subject to the minimum shareholding requirements, the Existing Shareholders
can transfer the shares held by them amounting to not more than 5% in case of an individual
promoter and 10% in the aggregate of all the Existing Shareholders to a bonafide financial
investor without the prior written consent of the Investor.

Investor’s right of first refusal and Tag-along rights: If any Existing Shareholder proposes to transfer any
of the shares held by it then it shall first give a written notice to the Investor and the Investor shall have the
following rights:

(i) The right to acquire such shares in accordance with the procedure prescribed in the
Agreement.

(ii) The right to sell all or part of their shares on similar terms and conditions, and in the manner
prescribed in the Agreement, to the potential transferee.

Transfer by the Investor: The Investor shall be free to transfer the equity shares in any manner whatsoever,
subject to the Existing Shareholders’ “right of first refusal” similar to the one outlined above. Further, the
Investor may transfer to any of its affiliates as defined in the Agreement, provided the affiliate shall enter
into a Deed of Adherence. Subject to the provisions mentioned herein, post IPO, the Investor shall be free
and entitled to transfer to any person, all or part of it shares without providing the “right of first refusal”
to the Existing Shareholders.

Transfer of shares of Ashoka Buildwell and Developers Private Limited, Ashoka Township and Ashoka
Bitucon Exim Private Limited (key shareholding companies) and project entities (as defined in the
Agreement): The Existing Shareholders shall not transfer their shareholding in key shareholding companies
/ project entities or issue any further shares of key shareholding companies / project entities without the
prior approval of the Investor. However, these requirements shall not be applicable to transfer inter se the
Shareholders or issuance of shares by the key shareholding companies to the Existing Shareholders.

Promoter Entitlement: In accordance with the terms of the Agreement, the Existing Shareholders shall be
entitled to get full economic benefit, if any of the money claims (such claims have been specified in the
Agreement) made by the Company, on various authorities, realise in income for the Company and/or the
concerned project entity. The Agreement also sets out the conditions pursuant whereto any claim shall be
considered as having realised into income for the Company and/or the concerned project entity and such
claims may either be settled in cash or by way of extension of the concession period. The Existing
Shareholders are, therefore, entitled to receive Equity Shares so as to compensate them for the claims
realised by the Company (the “Promoter Entitlements”). The Promoter Entitlements shall cease to have any
validity and effect if the claims are realised after the expiry of 30 months from the date of the Agreement.

Investor Entitlements: Under various concession agreements entered into by the Company and/or project
entities, the authorities granting the concessions have made various claims against the Company and/or the
concerned project entity (the “Government Claims”). In terms of the Agreement the parties to the
Agreement have agreed that the economic benefit that the Existing Shareholders are entitled as stated
above, shall be netted off against any losses or reduction of value suffered by the Company and/or the
concerned project entity on account of the Government Claims. The economic reduction (if any) of value of
the Company on account of the net-off shall be passed onto the Investor by issuance of Equity Shares (the

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“Investor Entitlements”). The Investor Entitlements shall be outstanding for a maximum period of 30
months from the date of the Agreement.

Directors: In accordance with the terms of the Agreement the Investor has appointed 1 person on the Board
of Directors as non-retiring director (Investor Director) and 1 person as an observer. The director or his
alternate or his representative can also be appointed on any committees constituted by the Board of
Directors as per the request of the Investor. The Investor is also entitled to nominate a director and an
observer on the board of directors of the project entities except in Jayaswals Ashoka Infrastructure Private
Limited.

Board Meetings: The Board of Directors is required to meet at least once in every calendar quarter and at
least 4 such meetings are required to be held in every year. The quorum for a meeting of the Board shall be
governed by the provisions of the Companies Act, 1956 subject to the condition that if the Investor Director
is not present at a meeting, there shall be no quorum. The Company is required to provide 10 days prior
written notice to each director. Any item not included on the agenda of the meeting may be considered /
voted or a meeting may be convened at a shorter notice period, with the prior written consent of the
Investor Director.

Shareholders meetings: All the meetings of the shareholders are required be held in accordance with the
Companies Act and the Company’s charter documents with at least 21 days prior notice, unless a shorter
period in respect of any general meeting is unanimously agreed to by all the shareholders in writing.

Affirmative vote: The following matters shall require the affirmative vote of the Investor Director:

(i) Any special resolution under the provisions of the Companies Act, 1956 or other applicable/
successor acts.

(ii) Any investments, except normal treasury investments made as per the investment policy
approved by the board of directors.

(iii) Issuance of any fresh equity.

(iv) Borrowing funds or issuing trade guarantees in excess of sums mentioned in the Business
Plan approved by the Investor.

(v) Create any subsidiary permit any capital restructuring.

(vi) Alteration / revision of business plan.

(vii) Merger, de-merger, acquisition or entering into any joint venture except those permitted.

(viii) Liquidation or dissolution.

(ix) Declaration or payment of dividends or making any other distribution on account of any shares of
preferred stock or common stock now or hereafter outstanding.

(x) Repurchase of any outstanding shares of the Company’s capital stock.

(xi) Amendment of Memorandum and Articles of Association.

(xii) Entering into transactions with connected persons as defined under the Agreement.

(xiii) Determining the appointment and remuneration of the Chairman, MD, CEO, COO, ED, CFO and
other senior staff.

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(xiv) Allowing disposal of shares of the Existing Shareholder and / or their nominees.

(xv) Appointment / dismissal of any board members, except promoter director or nominee director of
the Shareholders.

(xvi) Changing the accounting year.

(xvii) Sale of all or substantial assets of the Company.

(xviii) Divestment of its shareholding in any of the subsidiary companies.

(xix) Transfer/modification/sale/vesting any of the material contracts entered into by the

Company.

(xx) Changing/appointing a statutory/internal auditor.

(xxi) Diversification.

(xxii) Bidding for projects (including, as a joint venture partner) requiring a total capital out lay in
excess of Rs. 2000 million.

(xxiii) Incurring capital expenditure in excess of ten per cent what is stated in the approved business plan.

(xxiv) Listing of the Company or any project entity.

(xxv) Transfer of shares of the Company or transfer of, or issuance of, shares of any project entity or key
shareholding entity.

Initial Public Offer (IPO): The Parties have agreed to work towards an initial public offering involving the
shares of the Company and the Shareholders and make best efforts to ensure that the Company makes an
IPO within a period of or on before September 30, 2010 (“IPO cut-off date”).

The Investor through letter dated June 28, 2010 has agreed not to exercise alternate exit rights available to
the Investor in terms of the Agreement, until September 30, 2010.

In the event the Company fails to have an IPO before the IPO cut-off date, the Shareholders and the
Company shall provide the Investor an option to sell their shares in one of the following manners as
provided for in the Agreement:

(i) Liquidity IPO: The Company shall, at the sole discretion of the Investor, list its equity shares on
one or more of the stock exchanges which can either be by way of an offer for sale by the Investor
or issuance of further equity shares by the Company or a offer for sale by the Shareholders or a
combination of the three provided that the following conditions are followed:

(a) Investor shall offer at least fifty per cent of the shares originally subscribed by it.

(b) Investor shall be entitled to require the Company to issue further shares to the extent of
a maximum of forty per cent of the number of shares required to comply with the
minimum conditions of continuous listing.

(c) If, in spite of the Investor offering all of its shares and the Company issuing shares as
mentioned in (b) above, the number of shares offered does not meet the minimum
condition then the Investor shall be entitled to require the Company to issue further
shares and require the Shareholders to offer part of their shareholding in the Company.

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(ii) Buyback of Investor’s shares: On or before March 31, 2011, the Company shall buyback its shares
held by the Investor, subject to the provisions of the Companies Act, 1956 at a fair value as
determined by reputed external agency jointly appointed by the Investor and the Shareholders. The
Shareholders and any of their transferees shall not offer their respective shares in any such
buyback.

(iii) If (i) or (ii) do not occur within the specified time frames, the Company and the Shareholders
shall ensure that the Investor has an exit option in the manner provided for by the Agreement.

Further issue of shares by the Company: Subject to the applicable law and provisions of the Agreement, the
Board may issue and allot any of the unissued shares or any shares representing an increase in the paid up
share capital of the Company. However, the Company shall not make any further issuance of shares on
terms which are more favourable than, or which have rights attached to such capital or instruments which
are more favourable than the rights attached to the shares issued to Investor unless the Company provides
an opportunity to the Investor to subscribe to such shares on same terms.

Monitoring and Information Covenants: Until the Investor holds the shares of the Company, the Investor
shall have a right to monitor the operations of the Company, the Company and the project entities shall
provide to the Investor such reasonable information and data as in the opinion of the Investor may be
required and also information / documents such as financial statements etc. as provided for in the
Agreement.

Addendum cum Amendment to Share subscription and Shareholders’ Agreement

Addendum cum Amendment to Share Subscription and Shareholders’ Agreement dated December 10, 2007
(the “Agreement”) between Ashoka Buildcon Limited (the “Company”), Ashok Katariya, Sunil Raisoni,
Satish Parakh, Narendra Shakadwipi, Ashoka Buildwell and Developers Private Limited, AP Equipment,
Shubham Developers, Ashoka Township, Ashoka Bitucon Exim Private Limited, Ashoka Builders (Nasik)
Private Limited, and other shareholders of the Company (collectively referred to as the “Existing
Shareholders” for the purposes of this Agreement) and IDFC Infrastructure Fund 2 (the “Investor”) (the
“Parties”).

Certain Existing Shareholders elected to exercise their Promoter Entitlements in terms of Clause 11 of the
Share Subscription and Shareholders’ Agreement dated July 11, 2006 (the “Original Agreement”). In
accordance with the terms of the Agreement, Clause 11 of the Original Agreement shall be forthwith
terminated and the Existing Shareholders shall subscribe to the following number of equity shares of face
value Rs. 10 at par by paying in cash, in exercise of their Promoter Entitlements:
(In Rs. million)
Particulars Ashok Satish Sunil Sanjay Astha Ashish Shobha Snehal Total
M. D. B. P. Katariya Katariya Parakh Khatri
Katariya Parakh Raisoni Londhe
EBIDTA of 48,328 147,555 - 14,109 238,017 130,000 143,000 50,000 771,009
non-BOT
business
above INR
250 million
Ashoka 76,559 62,640 - - - - - - 139,199
Infrastructures
(PWD –
Dhule, Dhule
Bypass -
BOT)
Ashoka 5,113 - 4,184 - - - - - 9,297
Buildcon
Limited (Unit:
Nashik)
Sussen Asia
Pvt. Limited

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 Particulars Ashok Satish Sunil Sanjay Astha Ashish Shobha Snehal Total
M. D. B. P. Katariya Katariya Parakh Khatri
Katariya Parakh Raisoni Londhe
Total 130,000 210,195 4,184 14,109 238,017 130,000 143,000 50,000 919,505

Upon the allotment of the Promoter Entitlements as above, the Existing Shareholders shall cease to have
any rights to further Promoter Entitlements or to any further claims against the Company and/or the
Investor in this regard under Clause 11 of the Original Agreement and/or elsewhere. Further, the Existing
Shareholders and the Company have covenanted to the Investor that no circumstances have arisen in terms
of Clause 11 of the Original Agreement that would give the Investor any right to Investor Entitlements.
Further, the Agreement states that, if the aforesaid covenant is found to be incorrect at a later date, then the
Investor will be entitled to Investor Entitlements in accordance with Clause 11 of the Original Agreement.

The parties to the Agreement, through amendment letter dated June 28, 2010, have agreed that if the IPO
does not complete prior to September 30, 2010, the Company and the Existing Shareholders shall take all
steps necessary to amend the AoA of the Company as they stood prior to the amendment through the
resolutions of the Board of Directors and the shareholders dated September 7, 2009. Further, the Investor
has agreed not to exercise alternate exit rights available to the Investor, in terms of the Agreement, until
September 30, 2010.

Our Joint Ventures

The Company has entered into the following joint ventures/ memoranda of understanding / shareholders’
agreements where the project is at various stages of pre-qualification/ tendering/ execution. Unless
extended expressly, joint ventures at the pre-qualification/ tendering stage expire if the projects are not
awarded to the joint venture.

Projects under execution

1. Partnership with Ashoka Vastu Private Limited and Ashoka Builders (Nasik) Private Limited

The Company entered into a partnership with Ashoka Builders (Nasik) Private Limited and
Ashoka Vastu Private Limited on September 15, 2001 to create a partnership named Ashoka High-
Way AD. This partnership was created to allow Ashoka Builders (Nasik) Private Limited and
Ashoka Vastu Private Limited to assist the Company in bidding for seven construction contracts
and to raise the financing for the same. The seven contracts are: construction of foot over bridge
across Eastern Express Highway at Priyadarshini Circle with private financing and advertisement
rights on BOT basis; construction of foot over bridge across Eastern Express Highway at
Louiswadi with private financing and advertisement rights on BOT basis; construction of foot over
bridge across Eastern Express Highway at Mental Hospital with private financing and
advertisement rights on BOT basis; construction of foot over bridge across Eastern Express
Highway at Pravin Hotel with private financing and advertisement rights on BOT Basis;
construction of foot over bridge across Eastern Express Highway at Tagore Nagar with private
financing and advertisement rights on BOT Basis and the construction of foot over bridge across
Eastern Express Highway at Godrej Company with private financing and advertisement rights on
BOT basis.

The partnership will end on the last of the concession periods. The firm’s capital will be the sums
as contributed by the partners from time to time and the profits will be credited to the accounts of
partners as reduced by withdrawals and losses debited to the accounts of the partners. The profits
or losses of the firm, after meeting all costs, charges and expenses incurred on carrying on the
business of the partnership and after making all the necessary provisions and transfers to reserves,
if any, will be divided and borne by the partners in the following ratio, as recorded by the
supplementary agreements dated June 27, 2005 as a result of the Scheme of Amalgamation by way
of which Ashoka Vastu Private Limited was merged with the Company:

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 x the Company: 99.99%
x Ashoka Builders (Nasik) Private Limited: 0.01%

The overall right to manage and conduct the partnership business shall vest in both the remaining
partners and the partners shall nominate one person each to take part in the affairs of the firm.

2. Shareholders’ Agreement with D.S. Constructions Limited

The Company and D.S. Constructions Limited (“DSC”) had jointly bid for the construction of the
Katni Bypass Road from Km. 361.00 to Km. 378.00 on NH-7 on a BOT basis, which was awarded
to them. The two companies created a SPV named Ashoka–DSC Katni Bypass Road Private
Limited. The Company entered into a shareholders’ agreement with DSC dated July 14, 2006
because both parties desired that the Company take overall responsibilities and obligations for the
implementation and execution of the Katni project on the terms of their settlement. Pursuant to the
settlement and the shareholders’ agreement, the Company, through the SPV, has refunded DSC all
of DSC’s contributions to the project. The Company shall have complete control over the SPV and
its management, responsibilities, risk and liabilities shall lie with the Company. DSC is only an
investor with 3,300 equity shares of Rs. 10 each.

3. Joint Venture Agreement with Valecha Engineering Limited

The Company entered into a joint venture agreement with Valecha Engineering Limited
(“Valecha”) to jointly bid for a NHAI project for the construction of 4/6 lane access controlled
Chittorgarh Bypass which was subsequently awarded to the Ashoka-Valecha joint venture. Under
the agreement, the parties agreed to share the mobilization advances granted by the NHAI, taxes
and expenses in the following ratio:

x ABL: 51%
x Valecha: 49%.

The joint venture would be managed by an executive committee comprising one representative
each of ABL and Valecha. The agreement will be terminated upon the completion of construction
work and expiry of the defect liability period, which continues for a period of one year from the
completion of construction, and the settlement of all dues between the parties and between the
joint venture and the NHAI.

4. Shareholders agreement with IVRCL Infrastructures and Projects Limited

The Company has entered into a shareholders’ agreement with IVRCL Infrastructures and Projects
Limited (“IVRCL”) dated August 14, 2001 for the purpose of creating a SPV to execute the
project for the reconstruction of the Indore-Khandawa-Barhanpur-Edalabad Road on a BOT basis,
floated by the Madhya Pradesh Rajya Setu Nirman Nigam Limited which had been awarded to
IVRCL. The SPV was named as Viva Highways Private Limited.

The Company and IVRCL subscribed to the equity share capital of the SPV during the
construction period of the project in the following ratio:

x IVRCL: 78%
x ABL: 22%.

The construction phase of this project has been completed and the toll collection period is
currently underway. In accordance with agreement, during the toll collection period, the
consortium/bidder’s minimum holding in the SPV should be 26% of the equity share capital and
the balance 74% is held by the Company. Both parties have a right of first refusal to purchase the
shares of the other at the time of the other party’s sale of its shareholding.

148
5. Shareholders agreement with Jayaswal Holdings Private Limited

The Company entered into a shareholders’ agreement dated October 20, 1998 with Jayaswal
Holdings Private Limited (“JHPL”) to establish a SPV by the name of Jayaswals Ashoka
Infrastructure Private Limited to execute the project for the construction of a bridge over the river
Wainganga on a BOT basis. ABL and JHPL are to hold the equity of the SPV in the following
ratio:

x ABL : 50%
x JHPL: 50%.

Both ABL and JHPL have agreed to make equal contributions to the share capital and long term
finance requirements of the SPV. Failure to contribute one’s share of funds may be treated by the
other party as a breach of agreement and if the non-breaching party were to contribute funds in
excess of its share, it is entitled to interest in respect of the excess at the rate of 18% per annum to
be compounded annually. ABL is to ensure that the construction work is to be sub-contracted to
another contractor, who is to be a nominee of ABL, on a lump-sum basis as per the price quoted
by ABL in its winning bid to the Government. The SPV is to be managed by a board of directors
comprising of four directors of which ABL and Jayaswal Holdings Private Limited are to have an
equal number of nominees. ABL could nominate a Chairman to the board who is to have a casting
vote in case of a tie. The SPV may bid for future construction projects for which the technical
expertise would be provided by ABL at a remuneration to be decided mutually between the SPV
and ABL. Both ABL and JHPL have a right of first refusal to purchase the shares of the other at
the time of the other party’s sale of its shareholding. By a shareholders’ agreement dated March
21, 2001, JHPL transferred its shareholding in the SPV to Abhijeet Iron Processors Private
Limited who became signatory to a deed of adherence and thereby became subject to the terms
and conditions of the memorandum of understanding dated October 20, 1998.

6. Shareholders’ Agreement with IVRCL Infrastructures and Projects Limited and Viva
Infrastructure Private Limited

The Company has entered into a shareholder’s agreement with IVRCL and Viva Infrastructure
Private Limited (“VIPL”) dated March 25, 2002 to determine IVRCL and the Company’s
shareholding in VIPL. The primary object of VIPL is to enable IVRCL as its associate to hold up
to 78% of the equity share capital of Viva Highway Private Limited during the construction period
and 26% of the equity share capital of Viva Highway Private Limited during the toll collection
period, which is to be a special purpose vehicle to execute the project for the reconstruction of the
Indore-Khandawa-Barhanpur-Edalabad Road on a BOT basis. The equity shareholding of VIPL
would be as per the following ratio:

x IVRCL along with its designated person: 51%

x the Company: 49%.

IVRCL’s shareholding along with its designated person will be 51% of the equity share capital in
VIPL. IVRCL will not by itself hold more than 50% of the equity share capital of VIPL. Both the
Company and IVRCL have a right of first refusal to purchase the shares of the other at the time of
the other party’s sale of its shareholding. The Company can appoint two directors to the board
while IVRCL can appoint one.

7. Share Subscription Agreement and Shareholders Agreement with Infrastructure Development

Finance Company Limited and India Infrastructure Fund for Durg Bypass

The Company and Infrastructure Development Finance Corporation Limited (“IDFC”) (“Parties”)
have entered into a memorandum of understanding dated May 26, 2006 to form two SPVs to bid
for the project for the construction of Durg Bypass in Chattisgarh from km. 322.40 to km. 405.00

149
 (“Durg Bypass Project”). Pursuant to the memorandum of understanding, the Parties have
incorporated a SPV, Ashoka Highways (Durg) Limited (“AHDL”) and have entered into a share
subscription agreement dated February 2, 2009 (“Durg SSA”) and a shareholders agreement dated
January 14, 2009 (“Durg SHA”) to give effect to the terms of the memorandum of understanding.
The Parties had also entered into a shareholders loan agreement dated February 2, 2009 (“Durg
SLA”) whereby the Company agreed to lend Rs. 765.00 million and IDFC agreed to lend Rs.
85.00 million to AHDL for the Durg Bypass Project. In terms of the Durg SHA and the Durg
SLA, the Company was to hold 90 per cent of the share capital of AHDL with a right to appoint
four directors and IDFC was to hold 10 per cent of the share capital of AHDL with a right to
appoint one director on the board.

However, the terms of the Durg SHA and the Durg SLA have been modified and superseded by
another share subscription and shareholders agreement dated April 17, 2009 (“Durg SSSA”)
entered by the Parties with IIF where IIF has agreed to subscribe to 12,876,583 equity shares of
AHDL for the total consideration of Rs. 706.04 million. Further, the Parties to the Durg SSSA
have agreed that AHDL may require the Parties to lend upto the following limits:

x Company: Rs. 393.49 million

x IIF: Rs. 437.21 million
x IDFC: Rs. 43.72 million

In the event the Parties lend up to their loan limit as aforesaid, the Durg SSSA provides that the
equity shareholding of the Parties in AHDL shall be in the following ratio:

x Company: 51.00%
x IIF: 43.33%
x IDFC: 5.67%

The Company is entitled to appoint four directors and IIF can appoint up to two directors on the
board of AHDL. Further, the Company has agreed that in case it defaults in bringing its share of
investment of Rs. 1,748.90 million in AHDL, IIF can step in and subscribe to the securities
offered to the Company. The Company has also undertaken not to pledge or transfer its shares in
AHDL and shall ensure no change of control in AHDL. The Parties have also agreed that each
Party will have a right of first refusal and a tag along right over the shares of the Party which
desires to transfer its shares in AHDL.

Pursuant to the Durg SSSA, the Parties have also entered into an exit option agreement dated April
17, 2009, where the Parties have agreed that upon expiry of 11 years from the date of subscription
of shares of AHDL by IIF, if IIF remains unlisted till that time, then IIF will have the put option to
call the Company to purchase its shares held in AHDL at a price decided by the independent
valuer within 45 days from the date of issue of notice. A similar exit option agreement exists
between the IDFC and the Company where IDFC has a put option on the Company for all the
shares held in AHDL exercisable between April 30, 2014 and April 30, 2015 with a minimum
return on investment of 16%.

8. Shareholders Subscription Agreement and Shareholders Agreement with Infrastructure

Development Finance Company Limited and India Infrastructure Fund for Wainganga Bridge

The Company and Infrastructure Development Finance Corporation Limited (“IDFC”) (“Parties”)
have entered into two memoranda of understanding dated May 26, 2006 to form a SPV to bid for
Wainganga Bridge section on the Chattisgarh-Maharashtra border from km. 405.00 to km. 485.00
(the “NH-6 Bhandara Road Project”). Pursuant to the memoranda, the Parties have incorporated a
SPV, Ashoka Highways (Bhandara) Limited (“AHBL”) and have entered into a share subscription
agreement dated September 12, 2007 (“Bhandara SSA”) and a shareholders agreement dated
September 11, 2007 (“Bhandara SHA”) to give effect to the terms of the memoranda. The Parties

150
 had also entered into a shareholders loan agreement dated September 12, 2008 (“Bhandara SLA”)
whereby the Company agreed to lend Rs. 675.00 million and IDFC agreed to lend Rs. 75.00
million to AHBL for the NH-6 Bhandara Road Project. In terms of the Bhandara SHA and the
Bhandara SLA, the Company was to hold 90 per cent of the share capital of AHBL with a right to
appoint four directors and IDFC was to hold 10 per cent of the share capital of AHBL with a right
to appoint one director on the board.

However, the terms of the Bhandara SHA and the Bhandara SLA have been modified and
superseded by another share subscription and shareholders agreement dated April 17, 2009
(“Bhandara SSSA”) entered by the Parties with India Infrastructure Fund (“IIF”) and Viva
Highway Private Limited (“VHPL”) where IIF has agreed to subscribe to 9,135,470 equity shares
of AHBL for the total consideration of Rs. 624.30 million. Further, the Parties to the Bhandara
SSSA have agreed that AHBL may require the Parties to lend upto the following limits for the
purpose of the NH-6 Bhandara Road Project:

x Company: Rs. 347.57 million

x IIF: Rs. 386.18 million
x IDFC: Rs. 38.62 million

In the event the Parties lend up to their loan limit as aforesaid, the SSSA provides that the equity
shareholding of the Parties in AHBL shall be in the following ratio:

x Company: 51.00%
x IIF: 43.33%
x IDFC: 5.67%

The Company is entitled to appoint four directors and IIF can appoint up to two directors on the
board of AHBL. The Company has also undertaken not to pledge or transfer its shares in AHBL
and shall also ensure no change of control in AHBL. The Parties have also agreed that ach party
will have a right of first refusal and a tag along right over the shares of the party which desires to
transfer its shared in AHBL.

Pursuant to the Bhandara SSSA, the Parties have also entered into an exit option agreement dated
April 17, 2009, where the Parties have agreed that upon expiry of 11 years from the date of
subscription of shares of AHBL by IIF, if IIF remains unlisted till that time, then IIF will have the
put option to call the Company to purchase its shares held in AHBL at a price decided by the
independent valuer within 45 days from the date of issue of notice. A similar exit option
agreement exists between IDFC and the Company where IDFC has a put option on the Company
for all the shares held in AHBL exercisable April 1, 2013 and April 1, 2014 with a minimum
return on investment of 16%.

9. Shareholders Agreement entered into among VIPL, SREI Infrastructure Finance Limited,
Subhash Projects and Marketing Limited and PNC Construction Company Limited

VIPL, SREI Infrastructure Finance Limited (“SREI”), Subhash Projects and Marketing Limited
(“SPML”) and PNC Construction Company Limited (“PNC”) (“Parties”) have entered into a
memorandum of understanding dated May 26, 2007 to bid for the construction and maintenance of
the project for the 4-laning of the Jaora – Nayagaon section from Km.126/200 to Km.252/200 of
State Highway 31 in the State of Madhya Pradesh to be awarded by Madhya Pradesh Road
Development Corporation Limited (“JTRCPL Project”). The consortium of SREI, SPML and PNC
qualified for the JTRCPL Project. Therefore, the Parties have established a SPV, Jaora-Nayagaon
Toll Road Company Private Limited (“JTRCPL”) and have entered into a Shareholders
Agreement dated July 12, 2008 wherein the equity shareholding of the Parties is as follows:

x SREI and its associates: 28%;

151
 x PNC: 11.5%;
x SPML: 11.5%; and
x VIPL and its associates: 49%.

The board of the SPV is to consist of six directors with two directors each to be appointed by
VIPL and SREI and one director each by PNC and SPML. The Parties have the right of first
refusal over any shares proposed to be transferred by any of the parties. The Parties have also
agreed to maintain the shareholding of at least 51 per cent in the SPV during the three years
following the commercial operation date in terms of the concession agreement dated August 20,
2007.

10. Partnership Agreement enter into among Cube Constructions Engineering Limited and the
Company

The Company and Cube Constructions Engineering Limited (“Cube”) have entered into a
partnership deed dated April 30, 2010 to jointly submit a bid for the work of development of BRT
Corridor of Surat BRTS Project (Work No. 1) and for this to incorporate a partnership firm by the
name of ‘Cube Ashoka Joint Venture Co’. As per the agreement, Cube and the Company shall
share the profits of Cube Ashoka Joint Venture Co in the ratio of 60:40. The parties have also
agreed that no partner shall without the consent in writing of the other partner:

a) Introduce any person in the firm as a partner;

b) Assign, transfer or otherwise dispose off or mortgage or charge his/her share in the firm
or any part thereof;
c) Lend money belonging to the firm, except in the ordinary course of business, and
d) Dispose off by pledge, sale or otherwise any part of the partnership property or profits,
except in the ordinary course of business.

Our Subsidiaries

Unless otherwise stated, none of our subsidiaries is a sick company under the meaning of SICA and none of
them are under winding up. Further, all our subsidiaries are unlisted companies and they have not made any
public issue of securities in the preceding three years.

The Company has the following subsidiaries:

1. Ashoka Highways (Bhandara) Limited

2. Ashoka Highways (Durg) Limited
3. Ashoka Infrastructure Limited
4. Ashoka Infraways Private Limited
5. Ashoka Pre-Con Private Limited
6. Ashoka Technologies Private Limited
7. Ashoka-DSC Katni Bypass Road Private Limited
8. Viva Highways Private Limited

The details of the Company’s subsidiaries are as follows:

1. Ashoka Belgaum Dharwad Tollway Private Limited

Corporate Information

Ashoka Belgaum Dharwad Tollway Private Limited has been incorporated under the Companies
Act on June 8, 2010. The main object of the company is to carry on the business of designing,
building, financing, operation and maintenance of six laning of Belgaum-Dharwad section of NH-

152
 4 km 433.00 to km 515.00 (Length 79.36 km) in the State of Karnataka to be executed on BOT
(toll) project on DBFO pattern under NHDP Phase V.

Capital structure

No. of equity shares of Rs. 10 each

Authorised capital 1,000,000
Issued, subscribed and paid-up capital 10,000

Shareholding

The Company holds 4,500 equity shares, aggregating 45.00% of the issued equity share capital, of
Ashoka Belgaum Dharwad Tollway Private Limited. The directors of Ashoka Belgaum Dharwad
Tollway Private Limited are also the directors on the board of the Company.

2. Ashoka Highways (Bhandara) Limited

Corporate Information

Ashoka Highways (Bhandara) Limited was incorporated on March, 15, 2007. It was established to
execute the project for the construction, operation and maintenance of the Wainganga Bridge
section from Km.405 to Km.485 of NH – 6 on the Chattisgarh – Maharashtra border on a BOT
basis. Ashoka Highways (Bhandara) Limited is currently involved in the same business.

Capital structure

No. of equity shares of Rs. 10 each

Authorised capital 76,000,000
Issued, subscribed and paid-up capital 25,049,751

Shareholding

The Company holds 13,317,658 equity shares, aggregating 53.16% of the issued equity share
capital, of Ashoka Highways (Bhandara) Limited.

3. Ashoka Highways (Durg) Limited

Corporate Information

Ashoka Highways (Durg) Limited was incorporated as Ashoka Marg Nirman (Durg) Limited on
March 15, 2007. The name of the company was changed pursuant to a special resolution passed at
an EGM dated October 25, 2007. The fresh certificate of incorporation consequent on change of
name was granted by RoC to Ashoka Highways (Durg) Limited on November 5, 2007. Ashoka
Highways (Durg) Limited was established to execute the project for construction, operation and
maintenance of Durg Bypass, from Km.322.4 to Km.405 of NH – 6 on the Chattisgarh –
Maharashtra border on BOT basis. The company is currently involved in the same business.

Capital structure

No. of equity shares of Rs. 10 each

Authorised capital 76,000,000
Issued, subscribed and paid-up capital 25,177,581

153
 Shareholding

The Company holds 15,154,736 equity shares, aggregating 60.19% of the issued equity share
capital, of Ashoka Highways (Durg) Limited.

4. Ashoka Infrastructure Limited

Corporate Information

Ashoka Infrastructure Limited was incorporated on July 11, 2002. It was established to execute
the project for the four-laning and strengthening of Pune-Ahmednagar Road, on Maharashtra State
Highway 60, from Km.10/600 to Km.64/000 on BOT basis. The company is presently collecting
toll on the same project.

Capital structure

(a) Equity share capital

No. of equity shares of Rs. 10 each

Authorised capital 19,750,000
Issued, subscribed and paid-up capital 19,750,000

(b) Preference share capital

No. of redeemable non-cumulative

preference shares of Rs. 10 each
Authorised capital 12,250,000
Issued, subscribed and paid-up capital 6,650,000

Shareholding

The Company holds 19,750,000 equity shares, aggregating 100% of the issued equity share
capital, of Ashoka Infrastructure Limited.

The Company holds 4,351,400 redeemable non-cumulative preference shares, aggregating 65.43%
of the issued equity share capital, of Ashoka Infrastructure Limited.

5. Ashoka Infraways Private Limited

Corporate Information

Ashoka Infraways Private Limited was incorporated on June 25, 2001. It was established to
execute the project for the construction and maintenance of Dewas Bypass Road from Km. 159/4
of Madhya Pradesh State Highway – 18 to Km. 577/6 of National Highway – 3 comprising a total
length of 19.8 Km on a BOT basis. The company is presently collecting toll on the same project.

Capital structure

(a) Equity share capital

No. of equity shares of Rs. 10 each

Authorised capital 1,000,000
Issued, subscribed and paid-up capital 1,000,000

(b) Preference share capital

154
 No. of 0% redeemable non-cumulative preference
shares of Rs. 100 each
Authorised capital 400,000
Issued, subscribed and paid- 388,500
up capital

Shareholding

The Company holds 1,000,000 equity shares, aggregating 100% of the issued equity share capital,
of Ashoka Infraways Private Limited.

6. Ashoka Pre-Con Private Limited

Corporate Information

Ashoka Pre-Con Private Limited was incorporated under the Companies Act on October 24, 2008.
The company is engaged in the business to carry on the business of manufacture, process,
assemble, fabricate, produce, maintain, design, painting, buy, sell, import, export, alter, improve
heat treatment, stamping, forging, test or otherwise deal in pre-fabricated cement, concrete
products, pre-cast cement, concrete sheets and other engineering products mechanical, electrical
and otherwise and to act as engineers, designers, founders, smiths and machinist.

Capital structure

No. of equity shares of Rs. 10 each

Authorised capital 1,000,000
Issued, subscribed and paid-up capital 726,032

Shareholding

The Company holds 370,275 equity shares, aggregating 51.00% of the issued equity share capital,
of Ashoka Pre-Con Private Limited.

7. Ashoka Sambalpur Baragarh Tollway Private Limited

Corporate Information

Ashoka Sambalpur Baragarh Tollway Private Limited has been incorporated under the Companies
Act on June 9, 2010. The main object of Ashoka Sambalpur Baragarh Tollway Private Limited is
to carry on the business of designing, building, financing, operation and maintenance of four
laning of Sambalpur-Baragarh-Orissa/Chattisgarh border section of NH-6 km 0.00 to km 88.00
(length 88.00 km) in the State of Orissa to be executed on BOT (toll) project on DBFOT pattern
under NHDP Phase III.

Capital structure

No. of equity shares of Rs. 10 each

Authorised capital 1,000,000
Issued, subscribed and paid-up capital 10,000

155
 Shareholding

The Company holds 4,500 equity shares, aggregating 45.00% of the issued equity share capital, of
Ashoka Sambalpur Baragarh Tollway Private Limited. The directors of Ashoka Sambalpur
Baragarh Tollway Private Limited are also the directors on the board of the Company.

8. Ashoka Technologies Private Limited

Corporate Information

Ashoka Technologies Private Limited was incorporated under the Companies Act on October 14,
2008. The company is engaged in the business of software development in toll plaza automation,
weighbridge automation and automation systems, multimedia, graphics, animations, computer
based training, web based training for domestic and international educational and industrial
products, research and development to embed latest technologies, network support, knowledge
process outsourcing, software testing and quality assurance for in-house and/or third party
developed software and to act as advisors and/or consultants on matters and problems relating to
the industries, administration, management, organization, accountancy, costing, financial,
marketing, computer software and hardware, import, export commercial or economic activities
and to import, export, sell and or otherwise deal in computer hardware and software in all its
forms and varieties to develop, design or construct data base of applications to run and conduct
bureau for computer services/classes/tuitions.

Capital structure

No. of equity shares of Rs. 10 each

Authorised capital 100,000
Issued, subscribed and paid-up capital 10,000

Shareholding

The Company holds 9,980 equity shares, aggregating 99.80% of the issued equity share capital, of
Ashoka Technologies Private Limited.

9. Ashoka-DSC Katni Bypass Road Private Limited

Corporate Information

Ashoka-DSC Katni Bypass Road Private Limited was incorporated on July 18, 2002. It was
established to execute the project for the construction of Katni Bypass on NH – 7 from Km. 361/2
to 378/6 around Katni town in Madhya Pradesh on BOT basis. The company is currently involved
in the same business.

Capital structure

(a) Equity share capital

No. of equity shares of Rs. 10 each

Authorised capital 3,000,000
Issued, subscribed and paid-up capital 3,000,000

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 (b) Preference share capital

No. of 0% redeemable non-cumulative non-

convertible preference shares of Rs. 100
each
Authorised capital 400,000
Issued, subscribed and paid-up capital 361,040

Shareholding

The Company holds 2,996,700 equity shares, aggregating 99.89% of the issued equity share
capital, of Ashoka-DSC Katni Bypass Road Private Limited.

The Company does not hold any 0% redeemable non-cumulative non-convertible preference
shares of Ashoka-DSC Katni Bypass Road Private Limited.

10. Viva Highways Private Limited

Corporate Information

Viva Highways Private Limited was incorporated on August 16, 2001. It was established to
execute the project of reconstruction, strengthening, widening of Madhya Pradesh State Highway
No. 27 from Indore to Edalabad on a BOT basis. The company is presently collecting toll on the
same project.

Capital structure

No. of equity shares of Rs. 10 each

Authorised capital 10,000,000
Issued, subscribed and paid-up capital 9,808,200

Shareholding

The Company holds 7,257,864 equity shares, aggregating 74.00% of the issued equity share
capital, of Viva Highways Private Limited.

Associate Companies

1. Jayaswals Ashoka Infrastructure Private Limited

Corporate Information

Jayaswals Ashoka Infrastructure Private Limited was incorporated on November 3, 1998. It was
established to execute the project for construction of bridge across the Wainganga River in Km.
491/00 of Nagpur-Raipur road section of NH-6 in District Bhandara, Maharashtra. This company
is currently engaged in the same business and has started toll collection operations.

Capital structure

No. of equity shares of Rs. 10 each

Authorised capital 8,000,000
Issued, subscribed and paid-up capital 8,000,000

157
 Shareholding

The Company holds 4,000,000 equity shares, aggregating 50.00% of the issued equity share
capital, of Jayaswals Ashoka Infrastructure Private Limited.

2. Viva Infrastructure Private Limited

Corporate Information

Viva Infrastructure Private Limited was incorporated on January 28, 2002. It was established to
enable ABL and IVRCL Infrastructures and Projects Limited to hold shares in Viva Highways
Private Limited, a special purpose vehicle established to execute the project for the reconstruction
of the Indore-Khandawa-Barhanpur-Edalabad Road on a BOT basis. The company is not engaged
in any other business currently.

Capital structure

No. of equity shares of Rs. 10 each

Authorised capital 100,000
Issued, subscribed and paid-up capital 100,000

Shareholding

The Company holds 49,000 equity shares, aggregating 49.00% of the issued equity share capital,
of Viva Infrastructure Private Limited.

Partnerships

1. Ashoka Bridgeways

Corporate Information

The Company entered into a partnership agreement dated March 1, 1999 with Ashoka Builders
(Nasik) Private Limited. The partnership was formed to execute the work of construction of major
bridge across Mandve Nullah on Mahad-Pandharpur Road, S.H. 70 at Km. 179/600 on BOT basis
with toll rights. This partnership is presently engaged in the same business.

Partnership Ratio

The profit/loss sharing ratio of the partnership is as follows:

Name of the Partners Profit and Loss Sharing

Ashoka Buildcon Limited 5.00%
Ashoka Builders (Nasik) Private Limited 95.00%

2. Ashoka High-way Ad

Corporate Information

The Company entered into a partnership deed dated September 15, 2001 with Ashoka Builders
(Nasik) Private Limited and Ashoka Vastu Private Limited. This partnership was entered into to
allow Ashoka Builders (Nasik) Private Limited and Ashoka Vastu Private Limited to assist the
Company in bidding for seven construction contracts and to raise the financing for the same.
Subsequently, Ashoka Vastu Private Limited was merged into the Company. This partnership is
presently engaged in the same business.

158
 Partnership Ratio

The profit/loss sharing ratio of the partnership is as follows:

Name of the Partners Profit and Loss Sharing

Ashoka Buildcon Limited 99.99%
Ashoka Builders (Nasik) Private Limited 0.01%

3. Cube Ashoka Joint Venture Co.

Corporate Information

The Company entered into a partnership deed dated April 30, 2010 (effective from 14th April
2010) with Cube Construction Engineering Limited with a sole object to develop the stretches of
BRT Corridor of Surat BRTS Project of Surat Municipal Corporation. This partnership is
presently engaged in the same business.

Partnership Ratio

The profit/loss sharing ratio of the partnership is as follows:

Name of the Partners Profit and Loss Sharing

Ashoka Buildcon Limited 40.00%
Cube Constructions Engineering Limited 60.00%

Association of Persons

1. Ashoka Infrastructures

The Company has formed an association of persons with Ashoka Buildwell and Developers
Private Limited and Ashoka Vastu Private Limited on April 14, 1997. Ashoka Vastu Private
Limited was later merged with the Company in accordance with the Scheme of Amalgamation.
Ashoka Infrastructures was formed to construct the Dhule Bypass under a BOT scheme with toll
rights under PWD, Dhule, Maharashtra. The association of persons is presently engaged in the
same business.

The profit/loss sharing ratio of Ashoka Infrastructures is as follows:

Name of Partners Profit and Loss Sharing

Ashoka Buildcon Limited 99.99%
Ashoka Buildwell and Developers Private Limited 0.01%

159
 OUR MANAGEMENT

Board of Directors

We currently have eight directors. The following table sets forth details regarding our Board as of the date
of filing this Prospectus with SEBI.

Name, Designation, Father’s Name, Age Nationality Other Directorships

Address, Occupation and Term
Ashok M. Katariya 60 Indian x A-One Tiles Private Limited
(S/o Motilal Katariya) x Ashoka Belgaum Dharwad Tollway
Private Limited
Executive Chairman x Ashoka Biogreen Private Limited
x Ashoka Bitucon Exim Private
Address: Limited
Anshuman, Sahadev Nagar Gangapur x Ashoka Bitucon International
Road Private Limited
Nashik 422 013 x Ashoka Builders (Nasik) Private
Maharashtra Limited
x Ashoka City Towers Constructions
Occupation: Business Private Limited
x Ashoka Construwell Private
Term: Three years with effect from April
Limited
1, 2009
x Ashoka-DSC Katni Bypass Road
Private Limited
DIN: 00112240
x Ashoka Deserts & Developers
Private Limited
x Ashoka Erectors Private Limited
Ashoka Estate Developers Private
Limited
x Ashoka Highways (Bhandara)
Limited
x Ashoka Highways (Durg) Limited
x Ashoka Housing Constructions
Private Limited
x Ashoka Industrial Park Private
Limited
x Ashoka Infrastructure Limited
x Ashoka Infraways Private Limited
x Ashoka Nirmiti Private Limited
x Ashoka Path Nirman (Nashik)
Private Limited
x Ashoka Premises Private Limited
x Ashoka Promoters Private Limited
x Ashoka Sambalpur Baragarh
Tollway Private Limited
x Ashoka Shilp Akruti Private
Limited
x Ashoka Technologies Private
Limited
x Ashoka Universal Academy Private
Limited
x Ashoka Vanrai Developments
Private Limited

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 Name, Designation, Father’s Name, Age Nationality Other Directorships
Address, Occupation and Term
x Ashoka Vastu Akruti Private
Limited
x Ashoka Vastukala Nirman Private
Limited
x Jayaswals Ashoka Infrastructure
Private Limited
x Viva Highways Private Limited
x Viva Infrastructure Private Limited

Satish D. Parakh 50 Indian x Ashoka Belgaum Dharwad Tollway

(S/o Dhondulal Parakh) Private Limited
x Ashoka Bitucon Exim Private
Managing Director Limited
x Ashoka Bitucon International
Address: Private Limited
2&3, Aditya x Ashoka Buildwell & Developers
Behind Aditya Petrol Pump Private Limited
Sawarkar Nagar x Ashoka City Towers Constructions
Gangapur Road Private Limited
Nashik 422 013 x Ashoka Deserts & Developers
Maharashtra Private Limited
x Ashoka Erectors Private Limited.
Occupation: Business
x Ashoka Estate Developers Private
Limited
Term: 3 years with effect from April 1,
x Ashoka Highways (Bhandara)
2009
Limited
DIN: 00112324 x Ashoka Highways (Durg) Limited
x Ashoka Housing Constructions
Private Limited
x Ashoka Industrial Park Private
Limited
x Ashoka Infrastructure Limited
x Ashoka Infraways Private Limited
x Ashoka Nirmiti Private Limited
x Ashoka Path Nirman (Nashik)
Private Limited
x Ashoka Pre-Con Private limited
x Ashoka Premises Private Limited
x Ashoka Promoters Private Limited
x Ashoka Sambalpur Baragarh
Tollway Private Limited
x Ashoka Shilp Akruti Private
Limited
x Ashoka Technologies Private
Limited
x Ashoka Universal Academy Private
Limited
x Ashoka Vanrai Developments
Private Limited
x Ashoka Vastu Akruti Private
Limited
x Ashoka Vastukala Nirman Private

161
 Name, Designation, Father’s Name, Age Nationality Other Directorships
Address, Occupation and Term
Limited
x Ashoka-DSC Katni Bypass Road
Private Limited
x Hotel Evening Inn Private Limited
x Jaora Nayagaon Toll Road
Company Private Limited
x Jayaswals Ashoka Infrastructure
Private Limited
x PNG Tollway Private Limited
x Viva Highways Private Limited
x Viva Infrastructure Private Limited

Sunil B. Raisoni 48 Indian x Ashoka Infrastructure Limited

(S/o Bansilal Raisoni) x Ashoka Vanrai Developments
Private Limited
Whole Time Director

Address:
8, Puja, Premnagar
Pune 411 037
Maharashtra

Occupation: Business

Term: 3 years with effect from April 1,

2009

DIN: 00296904

Shyam Sundar S.G. 35 Indian x Goodearth Maritime Limited

(S/o Gurumoorthy S.) x Krishna Godavari Gas Network
Limited
Nominee Director x Maharashtra Natural Gas Limited
x SE Forge Limited
Address: x Seaways Shipping Limited
1905/1906, Sky Flama B x Sical Logistics Limited
Dosti Flamingos, China Mill Compound
x Sical Infra Assets Limited
Tokersi Jivraj Road, Parel Sewree
Mumbai 400 015
Maharashtra

Occupation: Professional

Term: Nominee of IDFC PE II

DIN: 02202523

Michael Pinto 67 Indian x Gateway Distriparks (Kerala)

(S/o: Simon Ligouri Pinto) Private Limited
x Gateway Distriparks Limited
Independent Director x Healthcare Global Limited
x IL&FS Limited
Address: x Raffles Port Works Private Limited

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 Name, Designation, Father’s Name, Age Nationality Other Directorships
Address, Occupation and Term
405, Shalaka x SCI Forbes Limited
Maharshi Karve Road x Star Paper Mills Limited
Mumbai 400 021 x Tolani Shipping Company Limited
Maharashtra

Occupation: Professional

Term: Liable to retire by rotation

DIN: 00021565

Milap R. Bhansali 57 Indian x Batuni Technologies Private

(S/o Sampat Raj Bhansali) Limited
x Gujarat Akruti – TCG Biotech
Independent Director Limited
x MRB Credit & Leasing Limited
Address:
233 B, Jolly Maker 1
Cuffe Parade
Mumbai 400 005
Maharashtra

Occupation: Business

Term: Liable to retire by rotation

DIN: 00181897

Anant D. Narain 69 Indian x Intercontinental Consultants and

(S/o Brahmadev Narain) Technocrats Private Limited

Independent Director

Address:
B-186
Sector 26
Noida 201 301
Uttar Pradesh

Occupation: Service

Term: Liable to retire by rotation

DIN: 00016113

Sharad Abhyankar 44 Indian x Optimum Business Solutions

(S/o: Damodar Abhyankar) Limited
x Shree Dhootpapeshwar Limited
Independent Director x The Global Institute for Financial
and Educational Services India
Address: Private Limited
303, Marvel Residency x VATit Consultant Private Limited
3rd Floor, Nanda Patkar Road x Visen Industries Limited
Vile Parle (E)

163
 Name, Designation, Father’s Name, Age Nationality Other Directorships
Address, Occupation and Term
Mumbai 400 057

Occupation: Lawyer

Term: Liable to retire by rotation

DIN: 00108866

Brief Biographies

Ashok M. Katariya, aged 61 years, is the Executive Chairman of the Company. He is a gold medalist in
Bachelor of Engineering (B.E.) from COEP, Pune University, India. Ashok M. Katariya has previously
worked with the Public Health Department in Maharashtra and Prabhakar Takle & Co. In 1975, he started
the working as a contractor to the PWD, Maharashtra. Subsequently, he ventured into civil construction and
infrastructure development. He is an active participant in the Institute of Engineers, Indian Concrete
Institute, Indian Institute of Bridge Engineers, Builders Association of India and Construction Federation of
India. He has received the “Udyog Ratna” award from Indian Economic Council and Life Time
Achievement award from the Association of Consulting Civil Engineers.

Satish D. Parakh, aged 50 years, is the Managing Director of the Company. He holds a B.E. degree in
civil engineering. Satish D. Parakh has been with the Ashoka Group since 1982 and has executed various
industrial/residential and BOT projects. He has previously worked with Shapoorji Pallonji & Company and
M/s Kanitkar-Kulkarni. He is a Member of Maharashtra Economic Development Council. He was also the
chairman of the Institute of Engineers, Nashik in 2007.

Sunil B. Raisoni, aged 48 years, is an Executive Director of the Company. He holds a Diploma in civil
engineering. Sunil B. Raisoni has an experience of over 26 years in the sector of civil engineering. He has
been involved with execution of projects such as Mandve Bridge, Pune-Shirur Road Project and the Nagar-
Karmala Road Project for Ashoka Buildcon Limited.

Shyam Sundar S.G., aged 35 years, is a Non-Executive Director of the Company. He is a nominee of
IDFC PE II on the Board of Directors under the terms of the Share Subscription and Shareholders’
Agreement dated July 11, 2006 between the Company, IDFC PE II and others. He holds a B.E.
(Mechanical) degree from Anna University and a post graduate diploma degree from the Indian Institute of
Management, Kolkata. He has over 12 years of experience in the infrastructure sector. He began his career
as an investment banker with ICICI Securities Limited handling private equity placement, debt syndication
and merger and amalgamation related deals in the energy and telecom sectors. Subsequently, he moved to
the infrastructure group of ICICI Bank Limited and after that to IDFC Limited, to undertake project finance
activities in the telecom sector. He joined IDFC Private Equity in its formative days and has made over 10
investments in a range of infrastructure sectors – power, telecom, oil & gas, roads, ports, airports, shipping
and logistics. He was a member of CII National Committee on Transport and infrastructure committee of
Bombay Chamber of Commerce.

Michael Pinto, aged 67 years, is an Independent Director on the Board of the Company. He holds a
Masters degree in Public Administration. Michael Pinto is a retired IAS officer and has served in various
capacities both at state and the centre. Michael Pinto’s major assignments include being Chief Executive
Officer of MIDC, Vice Chairman and Managing Director of MSRDC, Chairman and Managing Director of
Handicrafts and Handlooms Export Corporation of India, Chairman of MSEB, Chairman Jawaharlal Nehru
Port Trust, Minister, (Economic) Embassy of India, Paris and Secretary (Shipping) to the Government of
India. Michael Pinto has also chaired the committee that prepared Maharashtra’s case for presentation to
the 12th Finance Commission.

164
Milap R. Bhansali, aged 58 years, is an Independent Director on the Board of the Company. He is a
Chartered Accountant by profession and has an experience of 35 years in managing chemicals and
engineering industries. He has had experience in turning around sick industrial units to profit generating
businesses. Milap R. Bhansali’s key areas of operations include finance, marketing and general
management.

Anant Deo Narain, aged 69 Years, is an Independent Director on the Board of the Company. He holds a
bachelors degree in science engineering (Hons.) in civil engineering obtained from Patna University. He is
also a highways and bridge engineering expert. He has previously worked as the Director General (Road
Development) and Additional Secretary, Ministry of Surface Transport, Government of India. Presently,
Anant Deo Narain is an Executive Director of Intercontinental Consultants and Technocrats Pvt. Ltd. He
has experience in planning, budgeting and public - private sector partnership for the development of
highways. He has dealt with various issues including legal, fiscal and regulatory measures for the
development of highways.

Sharad D. Abhyankar, aged 44 years, is an Independent Director on the Board of the Company. He is a
solicitor and advocate by profession and is the founding partner of ANS Law Associates. Sharad D.
Abhyankar has a Bachelor of Arts (Economics & Commerce) and a Master of Laws degree from Mumbai
University. He is also a registered Patent and Trade Marks Attorney. Sharad D. Abhyankar has professional
expertise in various branches of law including corporate laws, securities laws, project finance, telecom
regulations, constitutional litigation and international commercial arbitrations. He has authored several
articles on various legal subjects in Indian and international journals and is a guest faculty at numerous
seminars for professionals.

Remuneration of Directors

The remuneration of the following executive Directors is as per the terms of appointment contained below:

(a) Agreement with Ashok M. Katariya, our Executive Chairman

Under the terms of an agreement dated May 27, 2009 between Ashok M. Katariya and the
Company, Ashok M. Katariya has been appointed as the Chairman of the Company for a period of
three (3) years commencing from April 1, 2009. The remuneration payable to him with effect from
April 1, 2009 which has been recommended and approved by the Remuneration Committee at its
meeting held on May 25, 2009 is provided below. The shareholders by way of their resolution
dated June 22, 2009 have approved the overall limit within which the Board has fixed the
remuneration to Ashok Katariya.

Basic Salary: Rs. 7.30 million p.a. with an annual increment @ 30% of the basic salary.
Bonus/ Ex-gratia: As per the company rules.
Medical Actual medical expenses incurred in India and/ or abroad and including
reimbursement: hospitalization, nursing home and surgical charges for himself and family
not exceeding Rs. 15,000 p.a.
Leave Travel Reimbursement of all the expenses incurred for self and family during the
Assistance: leave travel holiday periods in India not exceeding Rs. 15,000 p.a.
Livery Rs. 50,000 p.a. towards reimbursement of livery/ outfit.
Allowance:
Perquisites: x Contributions to Provident Fund, Super-annuation and Gratuity would
not be included in the computation of ceiling on remuneration to the
extent these either singly or put together are not taxable under the IT
Act.
x Encashment of earned leave at the end of tenure as per rules of the
Company shall not be included in the computation of ceiling on
remuneration.
x Provision of car for use of Company’s business and telephone at

165
 residence would not be considered as perquisites.
Others: Reimbursement of entertainment expenses properly incurred in the course
of legitimate business of the Company, subject to a reasonable ceiling
which may be fixed by the Board.
Termination: The agreement may be terminated by either party by giving to the other
party three (3) months’ notice.

During fiscal 2010, Ashok M. Katariya has been paid gross compensation of Rs. 8.26 million.

(b) Agreement with Satish D. Parakh, our Managing Director

Under the terms of an agreement dated May 27, 2009 between Satish D. Parakh and the Company,
Satish D. Parakh has been appointed as the Managing Director of the Company for a period of
three (3) years commencing from April 1, 2009. The remuneration payable to him with effect from
April 1, 2009 which has been recommended and approved by the Remuneration Committee at its
meeting held on May 25, 2009 is provided below. The shareholders by way of their resolution
dated June 22, 2009 have approved the overall limit within which the Board has fixed the
remuneration to Satish D. Parakh.

Basic Salary: Rs. 7.30 million p.a. with an annual increment @ 30% of the basic salary.
Bonus/ Ex-gratia: As per company rules.
Medical Actual medical expenses incurred in India and/ or abroad and including
reimbursement: hospitalization, nursing home and surgical charges for himself and family
not exceeding Rs. 15,000 p.a.
Leave Travel Reimbursement of all the expenses incurred for self and family during the
Assistance: leave travel holiday periods, whether in India/ abroad not exceeding Rs.
15,000 p.a.
Livery Allowance: Rs. 50,000 p.a. towards reimbursement of livery/ outfit.
Children Education Children Education Allowance of Rs. 100 per month for two (2) children
Allowance: to the extent these are not taxable under the IT Act.
Perquisites: x Contributions to Provident Fund, Super-annuation and Gratuity would
not be included in the computation of ceiling on remuneration to the
extent these either singly or put together are not taxable under the IT
Act.
x Encashment of earned leave at the end of tenure as per rules of the
Company shall not be included in the computation of ceiling on
remuneration.
x Provision of car for use of Company’s business and telephone at
residence would not be considered as perquisites.
Others: Reimbursement of entertainment expenses properly incurred in the course
of legitimate business of the Company, subject to a reasonable ceiling
which may be fixed by the Board.
Termination: The agreement may be terminated by either party by giving to the other
party three (3) months’ notice.

During fiscal 2010, Satish D. Parakh has been paid gross compensation of Rs. 8.26 million.

(c) Agreement with Sunil B. Raisoni, our Whole Time Director

Under the terms of an agreement dated May 27, 2009 between Sunil B. Raisoni and the Company,
Sunil B. Raisoni has been appointed as the Whole Time Director of the Company for a period of
three (3) years commencing from April 1, 2009. The remuneration payable to him with effect from
April 1, 2009 which has been recommended and approved by the Remuneration Committee at its
meeting held on May 25, 2009 is provided below. The shareholders by way of their resolution

166
 dated June 22, 2009 have approved the overall limit within which the Board has fixed the
remuneration to Sunil B. Raisoni.

Basic Salary: Rs. 2.40 million p.a. with an annual increment @ 30% of the basic salary.
Bonus/ Ex-gratia: As per company rules.
Medical Actual medical expenses incurred in India and/ or abroad and including
reimbursement: hospitalization, nursing home and surgical charges for himself and family
not exceeding Rs. 15,000 p.a.
Leave Travel Reimbursement of all the expenses incurred for self and family during the
Assistance: leave travel holiday periods, whether in India/ abroad not exceeding Rs.
15,000 p.a.
Livery Allowance: Rs. 50,000 p.a. towards reimbursement of livery/ outfit.
Children Education Children Education Allowance of Rs. 100 per month for two (2) children
Allowance: to the extent these are not taxable under the IT Act.
Perquisites: x Contributions to Provident Fund, Super-annuation and Gratuity would
not be included in the computation of ceiling on remuneration to the
extent these either singly or put together are not taxable under the IT
Act.
x Encashment of earned leave at the end of tenure as per rules of the
Company shall not be included in the computation of ceiling on
remuneration.
x Provision of car for use of Company’s business and telephone at
residence would not be considered as perquisites.
Others: Reimbursement of entertainment expenses properly incurred in the course
of legitimate business of the Company, subject to a reasonable ceiling
which may be fixed by the Board.
Termination: The agreement may be terminated by either party by giving to the other
party three (3) months’ notice.

During fiscal 2010, Sunil B. Raisoni has been paid gross compensation of Rs. 2.77 million.

Notes:

(i) The aggregate of salary and perquisites in any one financial year payable to the executive
Directors in any financial year shall not exceed the limits prescribed from time to time under
Section 198, 309 and other applicable provisions of the Companies Act, 1956 read with Schedule
XII of the Companies Act, 1956;

(ii) In the event any of the executive Director ceases to be a Director of the Company for any reason,
such Director will cease to be a executive Director in terms of their agreement with the Company
and such agreement will be terminated forthwith;

(iii) Each of the executive Directors shall not be liable to retire by rotation or to be removed from his
office on any ground(s) or for any reason whatsoever save and except his being found guilty of
willful fraud in the management of the business of the Company and the discharge of his duties as
executive director and such removal shall be effected by a special resolution of the company
passed after such fraud is proved to have been committed;

(iv) Each of the whole-time Directors shall not be entitled to sitting fees for attending meeting of the
Board of Directors or any committees, thereof.

x In relation to other Directors of the Company, apart from sitting fees and reimbursement
of expenses, no remuneration is payable by the Company.

167
 x The Company has not entered into any service contracts with the Directors, which
provide for benefits upon termination of employment of the Directors.

Interests of Directors

All of our Directors may be deemed to be interested to the extent of fees payable to them, if any, for
attending meetings of the Board or a committee thereof as well as to the extent of other remuneration and
reimbursement of expenses payable to them, if any, under our Articles of Association, and to the extent of
remuneration paid to them, if any, for services rendered as an officer or employee of the Company. Two of
our Directors are also the Promoters of the Company.

Our Directors may also be regarded as interested in the Equity Shares, if any, held by them or by the
companies/firms/ventures promoted by them or that may be subscribed by or allotted to the companies,
firms, trusts, in which they are interested as directors, members, partners, trustees and promoters, pursuant
to this Issue. All of our Directors may also be deemed to be interested to the extent of any dividend payable
to them and other distributions in respect of the said Equity Shares.

Our executive Directors receive remuneration from us. For further details refer to “– Remuneration of
Directors” mentioned above. Except as stated in the section entitled “Related Party Transactions” on page
200 of this Prospectus and to the extent of shareholding in the Company, our Directors do not have any
other interest in our business.

Shareholding of the Directors

In terms of the Articles of Association, the Directors are not required to hold any qualification shares. The
list of Directors holding Equity Shares and stock options as of the date of filing this Prospectus is set forth
below:

Name of the Director No. of options No. of equity shares Percentage

Ashok M. Katariya Nil 4,250,960 0.93
Satish D. Parakh Nil 3,929,555 0.86
Sunil B. Raisoni Nil 1,294,497 2.83
Shyam Sundar S.G. Nil Nil Nil
Milap R. Bhansali Nil Nil Nil
Michael Pinto Nil Nil Nil
Anant D. Narain Nil Nil Nil
Sharad Abhyankar Nil Nil Nil

Corporate Governance

We have complied with the requirements of the applicable regulations, including the listing agreement with
the Stock Exchanges and the SEBI Regulations, in respect of corporate governance including constitution
of the Board and Committees thereof. The corporate governance framework is based on an effective
independent Board, separation of the Board’s supervisory role from the executive management team and
constitution of the Board Committees, as required under law.

We have a Board constituted in compliance with the Companies Act and listing agreement with Stock
Exchanges and in accordance with best practices in corporate governance. The Board functions either as a
full Board or through various committees constituted to oversee specific operational areas. Our executive
management provides the Board detailed reports on its performance periodically.

The Board has eight Directors, out of which four are Independent Directors.

168
Committees of the Board

Audit Committee

The members of the Audit Committee are:

1. Milap R. Bhansali, Independent Director

2. Michael Pinto, Independent Director
3. Sharad Abhyankar, Independent Director
4. Shyam Sundar S.G., Non-Executive Director; and
5. Satish D. Parakh, Managing Director

The Chairman of the Audit Committee is Milap R. Bhansali.

The Audit Committee was re-constituted by a meeting of the Board of Directors held on December 13,
2007 and on June 18, 2008. The scope and function of the Audit Committee is in accordance with Section
292A of the Companies Act and Clause 49 of the Listing Agreement and its terms of reference include the
following:

x Overseeing the Company’s financial reporting process and the disclosure of financial information;
x Recommending the appointment and removal of external auditors and fixation of audit fees;
x Review with management the annual financial statements before submission to the Board;
x Review with management, external and internal auditors, the adequacy of internal controls; and
x Monitoring of utilization of IPO proceeds.

Compensation Committee

The members of the Compensation Committee are:

1. Anant D. Narain, Independent Director;

2. Milap R. Bhansali, Independent Director; and
3. Shyam Sundar S.G., Non-Executive Director.

The Chairman of the Compensation Committee is Anant D. Narain.

The Compensation Committee was reconstituted by a meeting of the Board of Directors held on December
13, 2007 and on June 18, 2008. This committee looks in all matters pertaining to remuneration of whole
time directors and the managing director.

Shareholders/Investors’ Grievance cum Share Transfer Committee

The members of the Shareholders/Investors’ Grievance Committee cum Share Transfer Committee are:

1. Sharad Abhyankar, Independent Director

2. Michael Pinto, Independent Director
3. Shyam Sundar S.G., Non-Executive Director

The Chairman of the Investors’/Shareholders Grievance Committee is Sharad Abhyankar.

The Investors’/Shareholders Grievance Committee was reconstituted by a meeting of the Board of

Directors held on December 13, 2007 and on June 18, 2008. This Committee is responsible for redressal of
shareholders’ and investors’ complaints relating to transfer of shares, issue of duplicate/consolidated share
certificates, allotment and listing of shares, review of cases for refusal of transfer/transmission of shares
and debentures, non-receipt of balance sheet, and non-receipt of dividends declared. It is also responsible
for reviewing the process and mechanism of redressal of investor complaints and suggesting measures of
improving the existing system of redressal of investor grievances. This Committee is also responsible for

169
approval of transfer of Equity and preference shares including power to delegate the same to registrar and
transfer agents.

Employee Stock Options Scheme

For details of employee stock option scheme and conversion of options granted to the directors and key
managerial personnel see the section entitled “Capital Structure” on page 31 of this Prospectus.

Borrowing Powers of our Board

In terms of our Articles, the Board may, from time to time, at its discretion by a resolution passed at its
meeting raise or borrow or secure the payment of any sum or sums of money for the purposes of the
Company. However, if the moneys sought to be borrowed together with the moneys already borrowed
(apart from temporary loans obtained from the Company’s bankers in the ordinary course of business)
should exceed the aggregate of the paid-up capital of the Company and its free reserves (not being reserves
set apart for any specific purpose), the Board is required to obtain the consent of the Company in general
meeting prior to undertaking such borrowing.

In this regard, the Company, in the EGM dated June 21, 2006 had resolved that pursuant to the provisions
of Section 293(1)(d) of the Companies Act, 1956, the Board is authorised to borrow moneys (apart from
temporary loans obtained from the bankers of the Company in ordinary course of business) from banks,
financial institutions, NBFCs etc., from time to time, for the purpose of Company’s business in excess of
the aggregate of the paid-up capital of the Company and its free reserves (not being reserves set apart for
any specific purpose) provided that the total amount of such borrowings together with the amounts already
borrowed and outstanding shall not exceed Rs. 15,000 million. Further, the Company in an EGM dated
June 21, 2006 has authorised the Board to charge moveable and immoveable properties of the Company for
securing loans, facilities from Banks for an increased limit of Rs. 12,000 million.

Changes in our Board of Directors in the last three years

The following changes have occurred in Board of Directors of the Company in the last three years:

Name of the Director Date of Appointment / Reason

Re-appointment / Cessation
Milap R. Bhansali May 31, 2007 Appointed
Michael Pinto May 31, 2007 Appointed
Narendra R. Shakadwipi June 29, 2007 Resigned
Ashish A. Katariya June 29, 2007 Resigned
Madhukar V. Patil June 29, 2007 Resigned
Anant D. Narain August 17, 2007 Appointed
Athar Shahab October 3, 2007 Appointed
Athar Shahab October 31, 2007 Resigned
Sharad Abhayankar October 3, 2007 Appointed
Panemanglore S. Shenoy December 13, 2007 Appointed
Panemanglore S. Shenoy January 9, 2008 Resigned
Sanjay P. Londhe January 9, 2008 Resigned
Prakash Karnik June 18, 2008 Resigned
Shyam Sundar S.G. June 18, 2008 Appointed

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Organisation Structure

Board of Directors

Chairman

Managing Director

Company Legal Dept. Technical

Secretary
Project Directors
Director

Project Sites RMC Plants

Tender, Plant
Contracts & &Vehicles
Design Dept. Dept.
MIS Dept. &
Toll

Corp. Comm. HR & Admin IT Dept Purchase & Accounts & Business
Cell. Dept. Stores Dept. Finance Dept. Monitoring Dept.
(PR)

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Key Managerial Personnel of the Company

For profile of Ashok M. Katariya, our Chairman, Satish D. Parakh, our Managing Director and Sunil B.
Raisoni, our Directors, please refer to page 160 of this Prospectus under the section “Our Management”.
All the key managerial personnel mentioned below are permanent employees of the Company.

Sanjay P. Londhe, aged 46 years, is an Executive Director (non-Board) of the Company. He holds a
bachelor’s degree in civil engineering. Sanjay P. Londhe has over 20 years of experience in construction
engineering. He joined the Company on August 25, 1989. Prior to joining the Ashoka Group, Sanjay P.
Londhe has worked with Tata Consulting Engineers for 4 years. Sanjay P. Londhe supervised the
construction of significant projects such as the Indore-Edelabad Road project and the Pune-Shirur Road
project. He has also supervised EPC projects such as the ECR project. He has been with the Ashoka Group
for the last 20 years. He is presently involved in the execution of the NH-6 projects. During fiscal 2010, he
was paid a gross compensation of Rs. 4.93 million.

Dilipbhai D. Kothari aged 62 years, is an Executive Director (non-Board). He holds a bachelor’s degree in
engineering (metallurgy) and master’s degree in science. He joined the Company on April 1, 2000. Prior to
joining Ashoka, he was involved in advertising, marketing and promotion of pharmaceutical products and
ceramic chemicals, for a period of 17 years. In the Company, he has handled the construction of Foot Over
Bridges on Eastern Express Highway and now takes care of advertisement collection and coordination with
prominent private and Government institutions in Mumbai. During fiscal 2010, Dilipbhai Kothari was paid
a gross compensation of Rs. 1.29 million.

Shrikant P. Shukla, aged 43 years, is Vice President (Technical) of the Company. He holds bachelor’s
degree engineering (civil) and a master’s degree in business administration. He is also a qualified lead
auditor for the ISO organisation and is currently pursuing his degree in law. He joined the Company on
January 18, 1990. He has previously worked with M/s Avinash Malpani and Associates. He has
approximately 18 years of technical and managerial expertise. Shrikant P. Shukla supervises the technical
aspects in relation to projects, tendering, project management and coordination. He also monitors customer
correspondences as well as liasioning with customers, preparation and administration of various arbitration
claims and general office administration. During fiscal 2010, Shrikant P. Shukla was paid a gross
compensation of Rs. 1.77 million.

Paresh C. Mehta, aged 47 years, is Vice-President (Finance and Accounts) of the Company. He is a
Chartered Accountant by profession. Paresh C. Mehta has approximately 20 years of experience in the field
of finance and accounting. He joined the Company on December 1, 2000. He has previously worked with
Catapharma Group. Paresh C. Mehta looks after accounting, taxation and financial matters of the Ashoka
Group as well as financial aspects of projects and resource management initiatives of the Company. During
fiscal 2010, Paresh C. Mehta was paid a gross compensation of Rs. 2.02 million.

Pradeep Nayyar aged 48 years, is General Manager (Projects) of the Company. He holds a diploma in
civil engineering. He joined the Company on March 20, 2006. Pradeep Nayyar previously worked with
Gayatri Projects Limited, Hyderabad. He has approximately 23 years of experience in roads, industrial,
dams and housing projects works. During fiscal 2010, Pradeep Nayyar was paid a gross compensation of
Rs. 1.43 million.

Deepak H. Bhagat, aged 54 years, is Deputy General Manager (Legal) of the Company. He holds
bachelor’s degree in commerce and bachelor’s degree in law. He joined the Company on February 1, 1994.
He was previously self-employed. During fiscal 2010, Deepak H. Bhagat was paid a gross compensation of
Rs. 0.89 million.

Suresh M. Wagh, aged 42 years, is General Manager (Technical) of the Company. He holds a bachelor’s
degree in engineering (civil). He joined the Company on January 1, 1994. Suresh M. Wagh has previously
worked with Jyoti Structures Limited in Nashik, Maharashtra. He has approximately 17 years of experience
in the construction sector. During fiscal 2010, he was paid a gross compensation of Rs. 1.12 million.

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Peeyush Jain, aged 34 years, is Deputy General Manager (Accounts & Finance) of the Company. He holds
a bachelor’s degree in commerce (honours) and is a qualified Chartered Accountant. He joined the
Company on November 16, 2004. Peeyush Jain has previously worked with Bahubali Electronics Private
Limited. He has about 8 years of experience and has practised as a Chartered Accountant for 3 years.
During fiscal 2010, Peeyush Jain was paid a gross compensation of Rs. 1.35 million

Manoj A. Kulkarni, aged 38 years, is the Company Secretary. He holds a bachelor’s degree in commerce
and is a qualified Company Secretary. He joined the Company on February 1, 2006. Manoj Kulkarni has
previously worked with Diamond Cables Limited. He has 11 years of relevant experience, out of which 6
years is on post-qualification basis. He is responsible for secretarial and compliance matters. During fiscal
2010, Manoj A. Kulkarni was paid a gross compensation of Rs. 0.43 million.

Kamlesh N. Shah, aged 38, years is Deputy General Manager (Accounts) of the Company. He is a
qualified Chartered Accountant. He joined the Company on December 24, 2007. Kamlesh N. Shah has
previously worked with Masibus Automation & Instrumentation Private Limited, Gandhinagar. He has
approximately 10 years of experience in the field of accounts and audit. During fiscal 2010, Kamlesh N.
Shah was paid a gross compensation of Rs. 1.24 million.

Sunil B. Sarna, aged 45 years, is Deputy General Manager (Human Resources & Administration) of the
Company. He holds a master’s degree in business administration (Marketing) and diploma in labour law
and labour welfare. He joined the Company on May 1, 2008. Sunil B. Sarna has previously worked with
Crompton Greaves Ltd and Ring Plus Acqua Limited. He has a varied experience of 23 years in marketing
and human resources development. During fiscal 2010, Sunil B. Sarna was paid a gross compensation of
Rs. 0.71 million.

Dr. Sunil Kumar Khare, aged 49 years, is Deputy General Manager (Projects) of the Company. He holds
a PhD in applied Chemistry-Mechanical Engineering. He joined the Company on January 16, 2008. He has
previously worked with Mukund Limited. Dr. Sunil Kumar Khare has experience in quality control, micro
level insights on the concept of design mixes and the procedure for optimization of available material to
convert them into composite concrete material. During fiscal 2010, he was paid a gross compensation of
Rs. 0.73 million.

Satish Chiplunkar, aged 47 years, is Deputy General Manager (Projects) of the Company. He holds a
diploma in civil engineering. He joined the Company on July 27, 1999. Satish Chiplunkar has previously
worked with Ramnath Constructions. During fiscal 2010, he was paid a gross compensation of Rs. 0.90
million.

Sandeep P. Bamb, aged 34 years, is Deputy General Manager (Finance) of the Company. He holds a
master’s degree in business administration (finance). He joined the Company on October 4, 2001. He has
previously worked with Shree Mahesh Bank Limited. He has experience in various areas of finance, such
as banking, loans, budgeting and planning. During fiscal 2010, he was paid a gross compensation of Rs.
1.09 million.

Pravin Baviskar, aged 49 years, is Deputy General Manager (Projects) of the Company. He holds a
diploma in civil engineering and has experience in execution of civil projects. He joined the Company on
April 10, 2007. He has previously worked with Vega Constructions. During fiscal 2010, he was paid a
gross compensation of Rs. 0.90 million.

Prashant Kanade, aged 34 years, is Deputy General Manager (Plant & Machinery Department) of the
Company. He holds diploma in mechanical engineering. He has experience of around 13 years in handling
plant and machinery department. He joined the Company on October 12, 2006. During fiscal 2010, he was
paid a gross compensation of Rs. 0.68 million.

Vivek Kenge, aged 43 years, is General Manager (Electrical) of the Company. He holds masters degree in
management science and is a diploma holder in business management and industrial electronics. He has

173
varied experience of around 23 years in electrical distribution / transmission sector. He joined the Company
on October 1, 2008. During fiscal 2010, he was paid a gross compensation of Rs.0.90 million.

Prem Shankar Rai, aged 38 years, is Deputy General Manager (Projects) of the Company. He holds
diploma in civil engineering. He has varied experience of around 18 years in mainly in highways, bridges
covering specialization in survey and investigation of project, design of pavement, estimation, project
management and construction of various roads, structures projects in India. He joined the Company on
November 16, 2009. During fiscal 2010, he was paid a gross compensation of Rs.0.42 million.

Rajendra C. Burad, aged 43 years, is an executive director of the Company. He holds a bachelors degree
in civil engineering. He has over 21 years of experience in construction engineering. He has successfully
completed various projects viz. Dewas Bypass 19 km around city, Surat concrete road package 1 & 2, Jaora
Naygaon Road project 80 KMS, Thane creek bridge, Dombivali Flyover, Pise Dam bridge, Thane,
Murtijapur ROB, Power Projects. He has joined the Company on October 1, 2009. During fiscal 2010, he
was paid a gross compensation of Rs.1.03 million.

Anil S. Gandhi, aged 52 years, is an executive director of the Company. He holds a bachelors degree in
civil engineering. He has over 27 years of experience in construction engineering. He has successfully
completed various projects viz. Katni Bypass around city, Akola Bypass around city, NH-06 Durg section
(Km 322 to 405), NH-06 Bhandara Section (Km 405 to 485), Wainganga bridge, Nagpur and Indore
Edlabad Road project. He has joined the Company on October 1, 2009. During fiscal 2010, he was paid a
gross compensation of Rs.1.23 million.

Andaneppa I Shilvant, aged 57 years, is Deputy General Manager (P&M) of the Company. He holds a
bachelor of engineering (Mechanical) degree from Karnataka University. He has an overall experience of
30 years. During his career he has served for International Airport Authority in South Yemen at Algaidha
Airport and was sponsored on all India selection basis. He has also worked Larsen & Toubro Ltd (ECC
Group) and AL Hassan Engineering & Contracting Co, at Muscat, Oman. He has a wide experience
pertaining to plant and machinery field. He has also served as a lecturer in JSS Engineering College,
Dharwad & Fr. Agnel College of Engineering, New Mumbai and has a wide experience in teaching and
training. He has joined the Company on December 29, 2009. During fiscal 2010, he was paid a gross
compensation of Rs.0.22 million.

Shareholding/ Interest of the Key Managerial Personnel of the Company and our Subsidiaries

The list of our Key Managerial Personnel holding Equity Shares and the number of Equity Shares held by
each of them as of the date of this Prospectus is set forth below:

Name of the Key Managerial No. of equity shares held No. of options Type of options
Personnel Growth Loyalty
Sanjay P. Londhe 98,763 112,600 67,200 45,400
Dilipbhai D. Kothari Nil 13,900 10,820 3,080
Shrikant P. Shukla Nil 18,960 11,560 7,400
Paresh C. Mehta Nil 14,500 11,610 2,890
Pradeep Nayyar Nil 9,550 8,630 920
Deepak H. Bhagat Nil 9,180 6,130 3,050
Suresh M. Wagh Nil 9,120 6,090 3,030
Peeyush Jain Nil 8,860 7,760 1,100
Sandeep P. Bamb Nil 7,450 5,970 1,480
Manoj A. Kulkarni Nil 2,120 1,950 170
Satish Chiplunkar Nil 5,640 4,030 1,610
Pravin Baviskar Nil 5,110 4,890 220
Prashant Kanade Nil 4,080 3,750 330
Anil S. Gandhi Nil 98,260 67,200 31,060
R. C. Burad Nil 58130 47910 10220

174
For further details of the employees’ stock option plan of the Company, please refer to the section entitled
“Capital Structure” on page 31 of this Prospectus.

Changes in Key Managerial Personnel

The following are the changes in our key managerial personnel over the last three years:

Name and Designation of the Designation of the Key Date of Reason

Key Managerial Personnel Managerial Personnel change
Suresh M. Wagh Deputy General Manager April 1, 2007 Promotion
(Technical)
Peeyush Jain Deputy General Manager April 1, 2007 Promotion
(Accounts & Finance)
Ashok Adke General Manager (Projects) October 22, Appointed
2007
Surinder Pal Singh Deputy General Manager November Resigned
(Human Resources & 30, 2007
Administration)
Gopikrishna Gupta Deputy General Manager December 31, Resigned
(Accounts) 2007
Pradeep Goyal Deputy General Manager December 21, Resigned
(EQA) 2007
Kamlesh N. Shah Deputy General Manager December 25, Appointed
(Accounts) 2007
Sunil Khare Deputy General Manager January 16, Appointed
(Projects) 2008
Azfar Shahab Deputy General Manager Janaury 21, Appointed
(IT) 2008
J. R. Vijapure General Manager (Projects) March 15, Appointed
2008
Satish Chiplunkar Deputy General Manager April 1, Promoted
(Projects) 2008
Pravin Baviskar Deputy General Manager April 1, Promoted
(Projects) 2008
Sandeep P. Bamb Deputy General Manager April1, Promoted
(Finance) 2008
Pradeep Nayyar General Manager (Projects) April 1, Promoted
2008
Omkar Bendre Management Representative April 11, Resigned
2008
S. B. Sarna Deputy General Manager May 1, 2008 Appointment
(Human Resources &
Administration)
Shayamsundar D. Joshi Deputy General Manager May 25, Resigned
(Projects) 2008
Ashok Adke General Manager (Projects) December Expired
12, 2008
Prashant Kanade Deputy General Manager April 1, Promoted
(Plant & Machinery) 2009
Vivek Kenge General Manager – October 1, Appointment
Electrical 2008
Prem Shankar Rai Deputy General Manager November Appointment
(Projects) 16, 2009
Rajendra C. Burad Executive Director October 1, Appointment

175
 Name and Designation of the Designation of the Key Date of Reason
Key Managerial Personnel Managerial Personnel change
2009
Anil S. Gandhi Executive Director October 1, Appointment
2009
Andaneppa I Shilvant Deputy General Manager December Appointment
(Plant & Machinery) 29, 2009
Azfar Shahab Deputy General Manager April 30, Resigned
(IT) 2010
J. R. Vijapure General Manager (Projects) April 30, Resigned
2010
D.H. Bhagat General Manager (Legal) April 1, Promoted
2010

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 OUR PROMOTERS

Our Promoters are:

1. Ashok M. Katariya
2. Satish D. Parakh
3. Ashish A. Katariya
4. Aditya S. Parakh

Our Individual Promoters

The details of our individual Promoters are as follows:

Ashok M. Katariya is the Chairman of the Company. He is a resident Indian

national. For further details, see the section entitled “Our Management” on page
160 of this Prospectus. His driving license number is MH-15/1992/177 - NSK. His
passport number is E8397117. His voter identification number is
MT/12/67/646979.

Satish D. Parakh is the Managing Director of the Company. He is a resident

Indian national. For further details, see the section entitled “Our Management” on
page 160 of this Prospectus. His driving license number is 3538/NSK. His
passport number is E8798036. His voter identification number is MP1267174593.

Ashish A. Katariya, aged 33 years, is a resident Indian national. His driving

license number is 2084/96. His passport number is E8397272. His voter
identification number has not yet been received. Ashish A. Katariya holds a
bachelor’s degree in civil engineering and master’s degree in business
administration. He has prior experience of about six years and currently heads the
RMC division. He has worked with Kiewit Pacific Co., United States for the
period of five months from January 2008 to May, 2008 as a Project Scheduler. He
is also a member of the Institution of Engineers (India).

Ashish A. Katariya is a director in Ashoka Highways (Bhandara) Limited, Ashoka

Highways (Durg) Limited, Ashoka Infrastructure Limited, Viva Highways Private
Limited, Ashoka Pre-Con Private Limited, Viva Infrastructure Private Limited and
Ashoka Infraways Private Limited.

Address: Anshuman, Sahadev Nagar Gangapur Road, Nashik 422 013.

Aditya S. Parakh, aged 23 years, is a resident Indian national. His driving license
number is MH15/02/128496. His passport number is F6476298. His voter
identification number has not yet been received.

Aditya S. Parakh has appeared for the final year examination for bachelor’s degree
in engineering (civil) from Maharashtra Institute of Technology, Pune. He has
interned with Al Habtoor Leighton Group (Dubai) for the period from January 5,
2008 to January 25, 2008 as a Trainee – Civil Engineer.
Address: 2&3, Behind Aditya Petrol Pump, Sawarkar Nagar, Gangapur Road
Nashik 422 013.

177
We confirm that the PAN, bank account number and passport number of our Promoters, namely, Ashok
Motilal Katariya, Satish Dhondulal Parakh, Ashish A. Katariya and Aditya Satish Parakh has been
submitted to the BSE and NSE at the time of filing the Draft Red Herring Prospectus with them.

Interests of Promoters and Common Pursuits

The aforementioned Promoters of the Company are interested to the extent of their shareholding in us.
Further, our Promoters who are also the Directors of the Company may be deemed to be interested to the
extent of fees, if any, payable to them for attending meetings of the Board or a Committee thereof as well
as to the extent of other remuneration, reimbursement of expenses payable to them.

Further, our individual Promoters are also directors on the boards of certain Group Companies, and they
may be deemed to be interested to the extent of the payments made by the Company, if any, to these Group
Companies. For the payments that are made by the Company to certain Group Companies, please refer to
the section entitled “Related Party Transactions” on page 200 of this Prospectus.

Except as stated otherwise in this Prospectus, we have not entered into any contract, agreements or
arrangements during the preceding two years from the date of this Prospectus in which the Promoters are
directly or indirectly interested and no payments have been made to them in respect of the contracts,
agreements or arrangements which are proposed to be made with them including the properties purchased
by the Company other than in the normal course of business.

Further, except as disclosed below, our Promoters do not have any interest in any venture that is involved
in any activities similar to those conducted by us.

Confirmations

Further, none of our Promoters has been declared as a willful defaulter by the RBI or any other
governmental authority and there are no violations of securities laws committed by the Promoters in the
past or are pending against them.

Payment of benefits to our Promoters

Except as stated in the section entitled “Auditor’s Report on Stand-Alone Financial Information - Related
Party Transactions” and “Auditor’s Report on Consolidated Financial Information – Related Party
Transactions” on pages 230 and 289 of this Prospectus, there has been no payment of benefits to our
Promoters during the two years prior to the filing of this Prospectus.

Promoter Group

In addition to the Promoters named above, the following natural persons and companies are part of our
Promoter Group.

Relatives of Promoters

The natural persons who are part of our Promoter group (due to their relationship with our Promoters),
other than the Promoters named above are as follows:

Name of the Person Relationship with the Promoter

Asha A. Katariya Wife of Ashok M. Katariya
Mother of Ashish A. Katariya
Bansilal Balchand Raisoni Brothers of Asha A. Katariya
Shantilal Balchand Raisoni
Kantilal Balchand Raisoni
Ashok Balchand Raisoni

178
 Name of the Person Relationship with the Promoter
Dilip Balchand Raisoni
Pankuwarbai Duggad Sisters of Asha A. Katariya
Vimal Tathed
Kamal Bothra
Vasanti Chhalani
Shweta Kasera Daughter of Ashok M. Katariya and
Sister of Ashish A. Katariya
Vishal Kasera Son-in-law of Ashok M. Katariya
Dhondulal Parakh Father of Satish D. Parakh
Gulabbai D. Parakh Mother of Satish D. Parakh
Shobha S. Parakh Wife of Satish D. Parakh
Mother of Aditya S. Parakh
Dr. Prakash D. Parakh Brothers of Satish D. Parakh
Dr. Ramesh D. Parakh
Shantibai Mangilalji Bramhecha Mother of Shobha S. Parakh
Chandmalji Mangilalji Bramhecha Brothers of Shobha S. Parakh
Parasmalji Mangilalji Bramhecha
Rajkunwar Kothari Sisters of Shobha S. Parakh
Shaila Bora
Snehal M. Khatri Daughter of Satish D. Parakh
Sister of Aditya S. Parakh
Manjeet Khatri Son-in-law of Satish D. Parakh
Padmabai F. Pophaliya Sister of Ashok M. Katariya
Leelabai K. Hiran Sister of Ashok M. Katariya
Beena R. Lalwani Sisters of Satish D. Parakh
Ranjana G. Bhandari
Lalita D. Dhumavat
Astha A. Katariya Wife of Ashish A. Katariya
Ayush A. Katariya Son of Ashish A. Katariya
Ashmit A. Katariya Son of Ashish A. Katariya
Inderchand Kothari Father of Astha A. Katariya
Saroj Devi Kothari Mother of Astha A. Katariya
Arpan Kothari Brothers of Astha A. Katariya
Ankur Kothari

Companies, Partnership Firms, Associations of Persons and HUFs forming part of the Promoter Group

Companies

1. A-One Tiles Private Limited

2. Ashoka Belgaum Dharwad Tollway Private Limited
3. Ashoka Biogreen Private Limited
4. Ashoka Bitucon Exim Private Limited
5. Ashoka Bitucon International Private Limited
6. Ashoka Builders (Nasik) Private Limited
7. Ashoka Buildwell and Developers Private Limited
8. Ashoka City Towers Constructions Private Limited
9. Ashoka Construwell Private Limited
10. Ashoka Deserts & Developers Private Limited
11. Ashoka Erectors Private Limited
12. Ashoka Estate Developers Private Limited
13. Ashoka Housing Constructions Private Limited
14. Ashoka Industrial Park Private Limited

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15. Ashoka Nirmiti Private Limited
16. Ashoka Path Nirman (Nashik) Private Limited
17. Ashoka Premises Private Limited
18. Ashoka Promoters Private Limited
19. Ashoka Sambalpur Baragarh Tollway Private Limited
20. Ashoka Shilp Akruti Private Limited
21. Ashoka Universal Academy Private Limited
22. Ashoka Vanrai Developments Private Limited
23. Ashoka Vastu Akruti Private Limited
24. Ashoka Vastukala Nirman Private Limited
25. Hotel Evening Inn Private Limited
26. PNG Tollway Private Limited

Partnership Firms

1. A. P. Equipments & Co.

2. Ashoka Builders
3. Ashoka Builders and Developers
4. Ashoka Con Creations
5. Ashoka Constructions
6. Ashoka Engineering Company
7. Ashoka E-Tech
8. Ashoka Group
9. Ashoka Lawns
10. Ashoka Vastuvaibhav
11. Shweta Agro Farm
12. Ashoka Lots-n-Lands
13. Cube Ashoka Joint Venture Co.

Associations of Persons

1. Ashoka Township
2. Shubham Developers

Hindu Undivided Families

1. A.M. Katariya (HUF)

2. S.D. Parakh (HUF)
3. A.A. Katariya (HUF)

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 OUR GROUP COMPANIES

Companies forming part of our Group Companies

Unless otherwise stated none of the companies forming part of our Group Companies is a sick company
under the meaning of SICA and none of them are under winding up. Further, all our Group Companies are
unlisted companies and they have not made any public issue of securities in the preceding three years.

I. Five largest Group Companies (based on turnover)

1. Ashoka E-Tech

Corporate Information

Ashoka E-Tech was formed as a partnership firm on April 1, 1999. This is a registered partnership
firm under the Indian Partnership Act with registration no. MPA-39465. The partnership was
registered on July 20, 1999. This partnership is presently engaged in the business of constructing
industrial and commercial buildings.

Interest of the Promoters

The profit/loss sharing ratio in Ashoka E-Tech of Ashok M. Katariya and Ashish A. Katariya is
19% each.

Financial Performance

The summary audited financial information of Ashoka E-Tech for the last three fiscal years are as
follows:
(In Rs. million)
Particulars Fiscal 2009 Fiscal 2008 Fiscal 2007
Capital 0.05 0.05 0.05
Reserves and Surplus N.A. N.A. N.A.
Sales/ Turnover 11.81 90.81 66.65
Expenditure 15.87 89.79 65.37
Profit/(Loss) After Tax (4.06) 1.02 1.28

2. Ashoka Builders (Nasik) Private Limited

Corporate Information

Ashoka Builders (Nasik) Private Limited was incorporated under the Companies Act on July 4,
1985. The company is engaged in the business of builders, contractors, dealers in and
manufacturers of prefabricated and precast houses, buildings and erection.

Interest of the Promoters

The shareholding of Ashok M. Katariya and Ashish A. Katariya in Ashoka Builders (Nasik)
Private Limited is as follows:

181
 Sr. Name No. of equity shares Percentage shareholding (%)
No.
1. Ashok Motilal Katariya 1,650 8.25
2. Ashish A. Katariya 1,700 8.50

Financial Performance

The summary audited financial information of Ashoka Builders (Nasik) Private Limited for the
last three financial years are as follows:

(In Rs. million, except per share data)

Particulars Fiscal 2009 Fiscal 2008 Fiscal 2007
Equity Share Capital 2.00 2.00 2.00
Reserve and surplus 62.12 50.63 45.69
Sales and other income 40.84 30.65 44.38
Profit/ (Loss) after tax 11.49 4.94 12.28
Earnings per share (EPS) (Rs.) 574.52 246.98 614.19
Book value per share (Rs.) 3205.81 2631.29 2384.31

3. Ashoka Infrastructures

The Company has formed an association of persons with Ashoka Buildwell and Developers
Private Limited and Ashoka Vastu Private Limited on April 14, 1997. Ashoka Vastu Private
Limited was later merged with the Company in accordance with the Scheme of Amalgamation.
Ashoka Infrastructures was formed to construct the Dhule Bypass under a BOT scheme with toll
rights under PWD, Dhule, Maharashtra. The association of persons is presently engaged in the
same business.

The profit/loss sharing ratio of Ashoka Infrastructures is as follows:

Name of Partners Profit and Loss Sharing

Ashoka Buildcon Limited 99.99%
Ashoka Buildwell and Developers Private Limited 0.01%

Financial Performance

The summary audited financial information of Ashoka Infrastructures for the last three fiscal years
are as follows:
(In Rs. million)
Particulars Fiscal 2009 Fiscal 2008 Fiscal 2007
Capital 73.16 97.70 59.18
Reserves and Surplus N.A. N.A. N.A.
Sales/Turnover 48.57 45.66 38.05
Expenditure 3.08 3.39 1.66
Profit/(Loss) After Tax 45.49 42.27 36.39

4. Ashoka High-way Ad

Corporate Information

The Company entered into a partnership deed dated September 15, 2001 with Ashoka Builders
(Nasik) Private Limited and Ashoka Vastu Private Limited. This partnership was entered into to
allow Ashoka Builders (Nasik) Private Limited and Ashoka Vastu Private Limited to assist the
Company in bidding for seven construction contracts and to raise the financing for the same.

182
 Subsequently, Ashoka Vastu Private Limited was merged into the Company. This partnership is
presently engaged in the same business.

Partnership Ratio

The profit/loss sharing ratio of the partnership is as follows:

Name of the Partners Profit and Loss Sharing

Ashoka Buildcon Limited 99.99%
Ashoka Builders (Nasik) Private Limited 0.01%

Financial Performance

The summary audited financial information of Ashoka High-Way Ad. for the last three financial
years are as follows:
(In Rs. million)
Particulars Fiscal 2009 Fiscal 2008 Fiscal 2007
Capital 24.25 23.27 22.18
Reserves and Surplus N.A. N.A. N.A.
Sales/Turnover 31.71 28.36 23.96
Expenditure 15.94 15.59 10.95
Profit/(Loss) After Tax 15.77 12.77 13.01

5. Ashoka Bridgeways

Corporate Information

The Company entered into a partnership agreement dated March 1, 1999 with Ashoka Builders
(Nasik) Private Limited. The partnership was formed to execute the work of construction of major
bridge across Mandve Nullah on Mahad-Pandharpur Road, S.H. 70 at Km. 179/600 on BOT basis
with toll rights. This partnership is presently engaged in the same business.

Partnership Ratio

The profit/loss sharing ratio of the partnership is as follows:

Name of the Partners Profit and Loss Sharing

Ashoka Buildcon Limited 5.00%
Ashoka Builders (Nasik) Private Limited 95.00%

Financial Performance

The summary audited financial information of Ashoka Bridgeways for the last three financial
years are as follows:
(In Rs. million)
Particulars Fiscal 2009 Fiscal 2008 Fiscal 2007
Capital 24.81 22.70 10.78
Reserves and Surplus N.A. N.A. N.A.
Sales/Turnover 29.21 31.75 26.92
Expenditure 23.38 25.31 25.39
Profit/(Loss) After Tax 5.83 6.44 1.53

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II. Group Companies with negative net worth

1. Ashoka Construwell Private Limited

Corporate Information

Ashoka Construwell Private Limited was incorporated on June 17, 1983 under the Companies Act.
The main objects of the company are to carry on the business of architects, engineers, assessors,
designers, town planners, surveyors, valuers, contractors in all branches including civil,
mechanical, electrical, aeronautical, automobile, water supply, sanitary and plumbing, air-
conditioning and refrigeration, acoustics, transport systems .

Interest of the Promoters

The shareholding of Ashok M. Katariya and Ashish A. Katariya in Ashoka Construwell Private
Limited is as follows:

Sr. Name No. of equity shares Percentage shareholding (%)

No.
1. Ashok M. Katariya 200 9.30
2. Ashish A. Katariya 210 9.77

Financial Performance

The summary audited financial information of Ashoka Construwell Private Limited for the last
three financial years are as follows:
(In Rs. million, except per share data)
Particulars Fiscal 2009 Fiscal 2008 Fiscal 2007
Equity Share Capital 0.22 0.22 0.22
Reserve and surplus 0.00 0.00 0.00
Sales and other income 1.60 1.25 6.93
Profit/ (Loss) after tax (0.11) (0.36) 0.81
Earning per share (EPS) (Rs.)* (52.97) (165.26) 376.87
Book value per share (Rs.)* (4522.42) (4,469.49) (4304.24)
* The face value per share is Rs. 100

2. Ashoka Erectors Private Limited

Corporate Information

Ashoka Erectors Private Limited was incorporated under the Companies Act on February 14,
1996. The company is engaged in the business of promoters, developers, builders, masonry and
general construction contractors.

Interest of the Promoters

The shareholding of Ashok M. Katariya, Satish D. Parakh, Ashish A. Katariya and Aditya S.
Parakh in Ashoka Erectors Private Limited is as follows:

Sr. Name No. of equity shares Percentage shareholding (%)

No.
1. Ashok M. Katariya 950 9.50
2. Satish D. Parakh 900 9.00
3. Ashish A. Katariya 900 9.00

184
 Sr. Name No. of equity shares Percentage shareholding (%)
No.
4. Aditya S. Parakh 900 9.00

Financial Performance

The summary audited financial information of Ashoka Erectors Private Limited for the last three
financial years are as follows:

(In Rs. million, except per share data)

Particulars Fiscal 2009 Fiscal 2008 Fiscal 2007
Equity Share Capital 0.10 0.10 0.10
Reserve and surplus 0.00 0.00 0.00
Sales and other income 0.00 0.17 0.00
Profit/ (Loss) after tax 0.00 0.14 0.00
Earning per share (EPS) (Rs.) (0.28) 14.20 (0.36)
Book value per share (Rs.) 20.41 (20.13) (34.33)

3. Ashoka Housing Constructions Private Limited

Corporate Information

Ashoka Housing Constructions Private Limited was incorporated under the Companies Act on
February 14, 1996. The company is engaged in the business of promoters, developers, builders,
masonry and general construction contractors.

Interest of the Promoters

The shareholding of Ashok M. Katariya, Satish D. Parakh, Ashish A. Katariya and Aditya S.
Parakh in Ashoka Housing Constructions Private Limited is as follows:

Sr. Name No. of equity shares Percentage shareholding (%)

No.
1. Ashok M. Katariya 950 9.50
2. Satish D. Parakh 900 9.00
3. Ashish A. Katariya 900 9.00
4. Aditya S. Parakh 900 9.00

Financial Performance

The summary audited financial information of Ashoka Housing Constructions Private Limited for
the last three financial years are as follows:

(In Rs. million, except per share data)

Particulars Fiscal 2009 Fiscal 2008 Fiscal 2007
Equity Share Capital 0.10 0.10 0.10
Reserve and surplus 0.00 0.00 0.00
Sales and other income 0.00 0.00 0.00
Profit/ (Loss) after tax 0.00 0.00 0.00
Earning per share (EPS) (Rs.) (0.43) (0.40) (0.40)
Book value per share (Rs.) (29.55) (29.12) (28.71)

185
4. Ashoka Nirmiti Private Limited

Corporate Information

Ashoka Nirmiti Private Limited was incorporated under the Companies Act on February 14, 1996.
The company is engaged in the business of promoters, developers, builders, masonry and general
construction contractors.

Interest of the Promoters

The shareholding of Ashok M. Katariya, Satish D. Parakh, Ashish A and Aditya S. Parakh in
Ashoka Nirmiti Private Limited is as follows:

Sr. Name No. of equity shares Percentage shareholding (%)

No.
1. Ashok M. Katariya 950 9.50
2. Satish D. Parakh 900 9.00
3. Ashish A. Katariya 950 9.50
4. Aditya S. Parakh 900 9.00

Financial Performance

The summary audited financial information of Ashoka Nirmiti Private Limited for the last three
financial years are as follows:

(In Rs. million, except per share data)

Particulars Fiscal 2009 Fiscal 2008 Fiscal 2007
Paid up Equity Share Capital 0.10 0.10 0.10
Reserve and surplus 0.00 0.00 0.00
Sales and other income 0.00 0.31 0.00
Profit/ (Loss) after tax (0.56) (0.21) (0.12)
Earning per share (EPS) (Rs.) (56.13) (20.96) (12.50)
Book value per share (Rs.) (103.73) (47.68) (26.72)

5. Ashoka Premises Private Limited

Corporate Information

Ashoka Premises Private Limited was incorporated under the Companies Act on February 14,
1996. The company is engaged in the business of promoters, developers, builders, masonry and
general construction contractors.

Interest of the Promoters

The shareholding of Ashok M. Katariya, Satish D. Parakh, Ashish A. Katariya and Aditya S.
Parakh in Ashoka Premises Private Limited is as follows:

Sr. Name No. of equity shares Percentage shareholding (%)

No.
1. Ashok M. Katariya 950 9.50
2. Satish D. Parakh 900 9.00
3. Ashish A. Katariya 950 9.50
4. Aditya S. Parakh 900 9.00

186
 Financial Performance

The summary audited financial information of Ashoka Premises Private Limited for the last three
financial years are as follows:

(In Rs. million, except per share data)

Particulars Fiscal 2009 Fiscal 2008 Fiscal 2007
Equity Share Capital 0.10 0.10 0.10
Reserve and surplus 0.00 0.00 0.00
Sales and other income 0.00 0.00 0.00
Profit/ (loss) after tax (0.56) (0.48) (0.12)
Earnings per share (EPS) (Rs.) (56.13) (47.82) (12.50)
Book value per share (Rs.) (120.27) (64.13) (16.32)

6. Ashoka Promoters Private Limited

Corporate Information

Ashoka Promoters Private Limited was incorporated under the Companies Act on February 14,
1996. The company is engaged in the business of promoters, developers, builders, masonry and
general construction contractors.

Interest of the Promoters

The shareholding of Ashok M. Katariya, Satish D. Parakh, Ashish A. Katariya and Aditya S.
Parakh in Ashoka Promoters Private Limited is as follows:

Sr. Name No. of equity shares Percentage shareholding (%)

No.
1. Aditya S. Parakh 900 9.00
2. Ashok M. Katariya 970 9.70
3. Ashish A. Katariya 950 9.50
4. Satish D. Parakh 900 9.00

Financial Performance

The summary audited financial information of Ashoka Promoters Private Limited for the last three
financial years are as follows:

(In Rs. million, except per share data)

Particulars Fiscal 2009 Fiscal 2008 Fiscal 2007
Equity Share Capital 0.10 0.10 0.10
Reserve and surplus 0.00 0.00 0.00
Sales and other income 0.00 0.00 0.00
Profit/ (Loss) after tax (0.56) (0.48) (0.12)
Earnings per share (EPS) (Rs.) (56.14) (47.79) (12.50)
Book value per share (Rs.) (121.53) (65.39) (17.60)

7. Ashoka Shilp Akruti Private Limited

Corporate Information

Ashoka Shilp Akruti Private Limited was incorporated under the Companies Act on February 14,
1996. The company is engaged in the business of promoters, developers, builders, masonry and
general construction contractors.

187
 Interest of the Promoters

The shareholding of Ashok M. Katariya, Satish D. Parakh, Ashish A. Katariya and Aditya S.
Parakh in Ashoka Shilp Akruti Private Limited is as follows:

Sr. Name No. of equity shares Percentage shareholding (%)

No.
1. Ashok M. Katariya 950 9.50
2. Satish D. Parakh 900 9.00
3. Ashish A. Katariya 900 9.00
4. Aditya S. Parakh 900 9.00

Financial Performance

The summary audited financial information of Ashoka Shilp Akruti Private Limited for the last
three financial years are as follows:

(In Rs. million, except per share data)

Particulars Fiscal 2009 Fiscal 2008 Fiscal 2007
Equity Share Capital 0.10 0.10 0.10
Reserve and surplus 0.00 0.00 0.00
Sales and other income 0.00 0.00 0.00
Profit/ (Loss) after tax 0.00 0.00 0.00
Earnings per share (EPS) (Rs.) (0.43) (0.41) (0.45)
Book value per share (Rs.) (2.16) (1.73) (1.32)

8. Ashoka Vanrai Developments Private Limited

Corporate Information

Ashoka Vanrai Developments Private Limited was incorporated under the Companies Act on
January 18, 1994. The company is engaged in the business of acquiring properties by purchase or
lease or on contracts of development or in any other manner and to develop the same in or use the
same for forestries, nurseries, grasses, shrubs, medicinal, pharmaceutical and aromatic plants,
forest houses.

Interest of the Promoters

The shareholding of Ashok M. Katariya, Satish D. Parakh, Ashish A. Katariya and Aditya S.
Parakh in Ashoka Vanrai Developments Private Limited is as follows:

Sr. Name No. of equity shares Percentage shareholding (%)

No.
1. Ashok M. Katariya 1,800 9.00
2. Satish D. Parakh 900 4.50
3. Ashish A. Katariya 1,800 9.00
4. Aditya S. Parakh 900 4.50

188
 Financial Performance

The summary audited financial information of Ashoka Vanrai Developments Private Limited for
the last three financial years are as follows:

(In Rs. million, except per share data)

Particulars Fiscal 2009 Fiscal 2008 Fiscal 2007
Equity Share Capital 0.20 0.20 0.20
Reserve and surplus 0.00 0.00 0.00
Sales and other income 0.78 0.04 0.02
Profit/ (Loss) after tax (0.37) (0.07) 0.01
Earnings per share (EPS) (Rs.) (18.33) (3.38) 0.44
Book value per share (Rs.) (77.00) (58.67) (55.29)

9. Ashoka Township

Corporate Information

Ashoka Township was formed as an association of persons on September 12, 1996. Ashoka
Township is currently engaged in the business of promoters, masonry, developers, builders and
general construction contractors.

Interest of the Promoters

None of the Promoters are members of Ashoka Township.

Financial Performance

The summary audited financial information of Ashoka Township for the last three fiscal years are
as follows:

(In Rs. million)

Particulars Fiscal 2009 Fiscal 2008 Fiscal 2007
Capital (5.04) (3.34) 0.75
Reserves and Surplus N.A. N.A. N.A.
Income 0.00 0.01 0.00
Expenditure 1.67 1.43 18.55
Profit/(Loss) After Tax (1.67) 1.42 (0.36)

III. Details of other Group Companies

1. A-One Tiles Private Limited

Corporate Information

A-One Tiles Private Limited was incorporated under the Companies Act on February 5, 1988.
The main objects of the company are to be engaged in the business of manufacturing, designing,
fabricating, refining, treating, processing, buying, selling, importing, exporting and otherwise
dealing in all kinds of tiles including mosaic cement tiles, marbles, kotah, kadappa, granite, tandur
and other stones, ceramic wares, porcelain earthen wares, stone wares, sanitary wares, insulators,
fibre bricks, fire clay, reinforced cement products and other minerals and any other products
similar to and required for the aforesaid products.

189
 Interest of the Promoters

Ashok M. Katariya holds 352 equity shares, aggregating 35.20% of the issued and paid-up equity
share capital, of A-One Tiles Private Limited.

2. Ashoka Biogreen Private Limited

Corporate Information

Ashoka Biogreen Private Limited was incorporated under the Companies Act on February 12,
2009. The company is engaged in the business of development, manufacture, trade, supply and
distribution of energy from non conventional resources like wind, tidal, bio mass and to meet
specific energy needs including selling the surplus power to the government / private parties and
to engage into processing and sale of the by products from the above generation of power.

Interest of the Promoters

Ashok M. Katariya holds 6,600 equity shares, aggregating 66.00% of the issued and paid-up
equity share capital, of Ashoka Biogreen Private Limited.

3. Ashoka Bitucon Exim Private Limited

Corporate Information

The company was incorporated on September 27, 1999. The main objects of the company are to
purchase or otherwise acquire, manufacture, refine, treat, reduce, distill, blend, purify, pump,
store, hold, transport, use, experiment with market, distribute, exchange, supply, sell and
otherwise dispose of, import, export and trade and generally deal in any and all kinds of petroleum
products including bitumen, tar, asphalt, oils and chemicals and any products, by-products and
derivatives thereof.

Interest of the Promoters

The shareholding of Ashok M. Katariya, Satish D. Parakh, Ashish A. Katariya and Aditya S.
Parakh in Ashoka Bitucon Exim Private Limited is as follows:

Sr. Name No. of equity shares Percentage shareholding (%)

No.
1. Ashok M. Katariya 930 9.20
2. Satish D. Parakh 945 9.36
3. Ashish A. Katariya 925 9.16
4. Aditya S. Parakh 900 8.91

4. Ashoka Bitucon International Private Limited

Corporate Information

Ashoka Bitucon International Private Limited was incorporated under the Companies Act on
September 27, 1999. The main objects of the company are to be engaged in the business of
purchase or otherwise acquire, manufacture, refine, treat, reduce, distill, blend, purify, pump,
store, hold, transport, use, experiment with market, distribute, exchange, supply, sell and
otherwise dispose of, import, export & trade & generally deal in any and all kinds of petroleum
products including bitumen, tar, asphalt, oils and chemicals and any products, by-products and
derivatives thereof.

190
 Interest of the Promoters

The shareholding of Ashok M. Katariya, Satish D. Parakh, Ashish A. Katariya and Aditya S.
Parakh in Ashoka Bitucon International Private Limited is as follows:

Sr. Name No. of equity shares Percentage shareholding (%)

No.
1. Ashok M. Katariya 876 8.75
2. Satish D. Parakh 900 9.00
3. Ashish A. Katariya 925 9.25
4. Aditya S. Parakh 900 9.00

5. Ashoka Buildwell and Developers Private Limited

Corporate Information

Ashoka Buildwell and Developers Private Limited was incorporated under the Companies Act on
October 28, 1988. The company is engaged in the business of builders, masonry, general
construction and contractors.

Interest of the Promoters

The shareholding of Ashok M. Katariya, Satish D. Parakh, Ashish A. Katariya and Aditya S.
Parakh in Ashoka Buildwell and Developers Private Limited is as follows:

Sr. Name No. of equity shares Percentage shareholding (%)

No.
1. Ashok M. Katariya 490 9.95
2. Satish D. Parakh 492 9.99
3. Ashish A. Katariya 490 9.95
4. Aditya S. Parakh 150 3.05

6. Ashoka Builders

Corporate Information

Ashoka Builders was formed as a partnership firm on January 23, 1987. This is a registered
partnership firm under the Indian Partnership Act with registration no. MA-3277. The partnership
was registered on April 5, 1988. This partnership has not been engaged in any business activity
since April 1, 1996.

Interest of the Promoters

None of the Promoters have any interest in Ashoka Builders.

7. Ashoka City Towers Constructions Private Limited

Corporate Information

Ashoka City Towers Constructions Private Limited was incorporated on February 14, 1996. The
main objects of the company are to carry on the business of promoters, developers, builders,
masonry and general construction contractors.

191
 Interest of the Promoters

The shareholding of Ashok M. Katariya, Satish D. Parakh, Ashish A. Katariya and Aditya S.
Parakh in Ashoka City Towers Constructions Private Limited is as follows:

Sr. Name No. of equity shares Percentage shareholding (%)

No.
1. Ashok M. Katariya 950 9.50
2. Satish D. Parakh 900 9.00
3. Ashish A. Katariya 900 9.00
4. Aditya S. Parakh 900 9.00

8. Ashoka Constructions

Corporate Information

Ashoka Constructions was formed as a partnership firm on November 5, 1983. This is a registered
partnership firm under the Indian Partnership Act with registration no. MA-6242. The partnership
was registered on February 16, 1990. The business of this partnership was taken over by Ashoka
Buildcon Private Limited in 1993. This partnership has not been engaged in any business activity
since 1993.

Interest of the Promoters

Ashok M. Katariya has a profit/loss sharing ratio of 37.5% in Ashoka Constructions.

9. Ashoka Deserts & Developers Private Limited

Corporate Information

Ashoka Deserts & Developers Private Limited was incorporated under the Companies Act on
February 14, 1996. The company is engaged in the business of promoters, developers, builders,
masonry and general construction contractors.

Interest of the Promoters

The shareholding of Ashok M. Katariya, Satish D. Parakh, Ashish A. Katariya and Aditya S.
Parakh in Ashoka Deserts & Developers Private Limited is as follows:

Sr. Name No. of equity shares Percentage shareholding (%)

No.
1. Ashok M. Katariya 950 9.50
2. Satish D. Parakh 900 9.00
3. Ashish A. Katariya 900 9.00
4. Aditya S. Parakh 900 9.00

10. Ashoka Estate Developers Private Limited

Corporate Information

Ashoka Estate Developers Private Limited was incorporated under the Companies Act on
February 14, 1996. The company is engaged in the business of promoters, developers, builders,
masonry and general construction contractors.

192
 Interest of the Promoters

The shareholding of Ashok M. Katariya, Satish D. Parakh, Ashish A. Katariya and Aditya S.
Parakh in Ashoka Estate Developers Private Limited is as follows:

Sr. Name No. of equity shares Percentage shareholding (%)

No.
1. Ashok M. Katariya 950 9.50
2. Satish D. Parakh 900 9.00
3. Ashish A. Katariya 900 9.00
4. Aditya S. Parakh 900 9.00

11. Ashoka Group

Corporate Information

Ashoka Group was formed as a partnership firm on November 6, 1988. This is a registered
partnership firm under the Indian Partnership Act with registration no. MA-11556. The
partnership was registered on December 2, 1992. This partnership has not been engaged in any
business activity since April 1, 1993.

Interest of the Promoters

Satish D. Parakh and Ashok M. Katariya have a profit/loss sharing ratio of 5% each in Ashoka
Group.

12. Ashoka Path Nirman (Nasik) Private Limited

Corporate Information

Ashoka Path Nirman (Nasik) Private Limited was incorporated under the Companies Act on
August 10, 2001. The main objects of the company are to be engaged in the business to build,
erect, construct, operate on Build-Own-Lease-Transfer (BOLT) basis, repair, execute, develop
infrastructural project including roadways, bridges, dams, docks, harbours, canals or any kind of
work for and on behalf of Government, semi-government, NGOs or bodies corporate or
individuals.

Interest of the Promoters

The shareholding of Ashok M. Katariya, Satish D. Parakh, Ashish A. Katariya and Aditya S.
Parakh in Ashoka Path Nirman (Nasik) Private Limited is as follows:

Sr. Name No. of equity shares Percentage shareholding (%)

No.
1. Ashok M. Katariya 850 8.50
2. Satish D. Parakh 975 9.75
3. Ashish A. Katariya 850 8.50
4. Aditya S. Parakh 975 9.75

193
13. Ashoka Universal Academy Private Limited

Corporate Information

Ashoka Universal Academy Private Limited was incorporated under the Companies Act on May
16, 2005. The company is engaged in the business to promote, set up, manage, operate, establish,
support, administer and aid educational institutions including nursery, primary, secondary and
higher secondary schools, graduation and post graduation in any language for students, support
schools, pathshalas, colleges, universities, vidyapeeths and educational research institutions and
for advancement of physical sports and social education to students.

Interest of the Promoters

The shareholding of Ashok M. Katariya, Satish D. Parakh, Ashish A. Katariya and Aditya S.
Parakh in Ashoka Universal Academy Private Limited is as follows:

Sr. Name No. of equity shares Percentage shareholding (%)

No.
1. Ashok M. Katariya 950 9.50
2. Satish D. Parakh 450 4.50
3. Ashish A. Katariya 900 9.00
4. Aditya S. Parakh 450 4.50

14. Ashoka Vastu Akruti Private Limited

Corporate Information

Ashoka Vastu Akruti Private Limited was incorporated under the Companies Act on February 14,
1996. The company is engaged in the business of promoters, developers, builders, masonry and
general construction contractors.

Interest of the Promoters

The shareholding of Ashok M. Katariya and Satish D. Parakh in Ashoka Vastu Akruti Private
Limited is as follows:

Sr. Name No. of equity shares Percentage shareholding (%)

No.
1. Ashok M. Katariya 5,490 54.90
2. Satish D. Parakh 10 0.10

15. Ashoka Vastukala Nirman Private Limited

Corporate Information

Ashoka Vastukala Nirman Private Limited was incorporated under the Companies Act on
February 14, 1996. The company is engaged in the business of promoters, developers, builders,
masonry and general construction contractors.

Interest of the Promoters

The shareholding of Ashok M. Katariya, Satish D. Parakh, Ashish A. Katariya and Aditya S.
Parakh in Ashoka Vastukala Nirman Private Limited is as follows:

194
 Sr. Name No. of equity shares Percentage shareholding (%)
No.
1. Ashok M. Katariya 950 9.50
2. Satish Dhondulal Parakh 900 9.00
3. Ashish A. Katariya 900 9.00
4. Aditya S. Parakh 900 9.00

16. Hotel Evening Inn Private Limited

Corporate Information

Hotel Evening Inn Private Limited was incorporated under the Companies Act on March 13, 1987.
The main objects of the company are to be engaged in the business of hoteliers, hotel proprietors,
hotel managers and operators, refreshment contractors and caterers, restaurant keepers,
refreshment room proprietors, milk and snack bar proprietors, café and tavern proprietors, lodging
house proprietors, ice-cream merchants, sweet-mint merchants, milk merchants, bakers,
confectioners, professional merchants, licensed victuallers, wine and spirit merchants, blenders
and bottlers.

Interest of the Promoters

The shareholding of Ashok M. Katariya, Satish D. Parakh, Ashish A. Katariya and Aditya S.
Parakh in Hotel Evening Inn Private Limited is as follows:

Sr. Name No. of equity shares Percentage shareholding (%)

No.
1. Ashok M. Katariya 450 9.01
2. Satish D. Parakh 475 9.51
3. Ashish A. Katariya 450 9.01
4. Aditya S. Parakh 475 9.51

17. PNG Tollway Private Limited

Corporate Information

PNG Tollway Private Limited was incorporated under the Companies Act on February 16, 2009.
The company is engaged in the business to undertake design, engineering, finance, procurement,
construction, operation and maintenance of 6 laning of Pimpalgaon-Nashik-Gonde Section of
NH3 from 380 kms to 440 kms in the State of Maharashtra under NHDP Phase III on BOT basis.

Interest of the Promoters

None of our Promoters have any shareholding in PNG Tollway Private Limited.

18. Jaora-Nayagaon Toll Road Company Private Limited

Corporate Information

Jaora-Nayagaon Toll Road Company Private Limited was incorporated under the Companies Act
on July 10, 2007. The company was incorporated to execute the Project viz. to carry on the
business of Design, construction, finance, strengthening, widening, operation and maintenance on
BOT basis for the four laning of Jaora – Nayagaon section from km. 126/200 to 252/200 of State
Highways 31 in the State of Madhya Pradesh.

195
 Interest of the Promoters

None of our Promoters have any shareholding in Jaora-Nayagaon Toll Road Company Private
Limited.

19. A. P. Equipments & Co.

Corporate Information

A.P. Equipments & Co. was formed as a partnership firm on December 2, 1995. This is a
registered partnership firm under the Indian Partnership Act with registration no. MA-14372. The
partnership was registered on February 16, 1996. This partnership is presently engaged in the
business of giving on hire construction equipment ad vehicles.

Interest of the Promoters

The profit/loss sharing ratio in A.P. Equipments & Co. of Ashish A. Katariya and Aditya S.
Parakh is 20%, and 10%, respectively.

20. Ashoka Builders and Developers

Corporate Information

Ashoka Builders and Developers was formed as a partnership firm on June 25, 1995. This is a
registered partnership firm under the Indian Partnership Act with registration no. MA-13909. The
partnership was registered on October 10, 1996. This partnership is presently engaged in the
business of promoters, developers, builders and general construction contractors.

Interest of the Promoters

The profit/loss sharing ratio in Ashoka Builders and Developers of Satish D. Parakh, Ashish A.
Katariya and Aditya S. Parakh is 10%, 15% and 10%, respectively.

21. Ashoka Con Creations

Corporate Information

Ashoka Con Creations was formed as a partnership firm on November 6, 1996. This is a registered
partnership firm under the Indian Partnership Act with registration no. MA-15811. The
partnership was registered on February 24, 1997. This partnership is presently engaged in the
business of promoters, masonry, developers, builders and general construction contractors.

Interest of the Promoters

The profit/loss sharing ratio in Ashoka Con Creations of Ashok M. Katariya, Satish D. Parakh and
Ashish A. Katariya is 25%, 25% and 15%, respectively.

22. Ashoka Industrial Park Private Limited

Corporate Information

Ashoka Industrial Park Private Limited was incorporated under the Companies Act on November
10, 2009. The main object of the company is inter alia to set up, develop, provide and manage
integrated Industrial Park and/or Industrial Infrastructural facilities including but not limited to
construct, erect, alter, improve, repair, pull down, restore, maintain, offices, factories, warehouses,

196
 commercial complex industrial colonies, commercial premises, hotels, resorts, either alone or
jointly with any other company or persons.

Interest of the Promoters

The shareholding of Ashok M. Katariya and Satish D. Parakh in Ashoka Industrial Park Private
Limited is 44% and 36%, respectively.

23. Ashoka Lawns

Corporate Information

Ashoka Lawns was formed as a partnership firm on April 1, 1996. This is a registered partnership
firm under the Indian Partnership Act with registration no. MA-15812. The partnership was
registered on February 24, 1997. This partnership is presently engaged in the business of
promoters, masonry, developers, builders and general construction contractors.

Interest of the Promoters

The profit/loss sharing ratio in Ashoka Lawns of Ashok M. Katariya and Ashish A. Katariya is
30% each.

24. Shubham Developers

Corporate Information

Shubham Developers was formed as association of persons on May 5, 1998. This partnership is
presently engaged in the business of giving on hire construction equipment and vehicles.

Interest of the Promoters

The profit/loss sharing ratio in Shubham Developers of Ashok M. Katariya and Satish D. Parakh is
55% and 45%, respectively.

25. Ashoka Lots-n-Lands

Corporate Information

Ashoka Lots-n-Lands was formed as Partnership on July 4, 1989. Ashoka Lots-n-Lands is a

registered firm under the Indian Partnership Act, 1932 with registration no. MA-6779. Ashoka
Lots-n-Lands is currently engaged in the business of promoters, masonry, developers, builders and
general construction contractors.

Interest of the Promoters

The profit/loss sharing ratio in Ashoka Lawns of Ashok M. Katariya and Ashish A. Katariya is
35% and 45% respectively.

26. Shweta Agro Farm

Corporate Information

Shweta Agro Farm was formed as an association of persons on May 25, 2005. Later on business of
said association of persons was taken over to form partnership firm under the name and style as
Shweta Agro Farm with effect from April 1, 2007. Shweta Agro Farm is a registered partnership

197
 firm under the Indian Partnership Act, 1932 with registration no. MA-31868. Shweta Agro Farm is
currently engaged in the business of agriculture and allied activities.

Interest of the Promoters

The profit/loss sharing ratio in Shweta Agro Farm of Ashok M. Katariya , Ashish A. Katariya,
Satish D. Parakh and Aditya S. Parakh is 17% 15%, 10% & 5% respectively.

27. Ashoka Engineering Company

Corporate Information

Ashoka Engineering Company was formed as a partnership firm on February 1, 1996. This is a
registered partnership firm under the Indian Partnership Act with registration no. MA-14558. The
partnership was registered on April 2, 1996. This partnership is presently engaged in the business
of promoters, masonry, developers, builders and general construction contractors.

Interest of the Promoters

The profit/loss sharing ratio in Ashoka Engineering Company of Ashok M. Katariya, Satish D.
Parakh and Ashish A. Katariya is 30%, 45% and 25%, respectively.

28. Ashoka Vastuvaibhav

Corporate Information

Ashoka Vastuvaibhav was formed as a partnership firm on December 24, 2004. This is a
registered partnership firm under the Indian Partnership Act with registration no. MA-26670. The
partnership was registered on May 2, 2005. This partnership is presently engaged in the business
of promoters, masonry, developers, builders and general construction contractors.

Interest of the Promoters

None of the Promoters are partners of Ashoka Vastuvaibhav.

Hindu Undivided Families forming part of Group Companies

1. A. M. Katariya (HUF)

A. M. Katariya (HUF) is a Hindu Undivided Family, represented by its karta Ashok Motilal
Katariya.

2. S. D. Parakh (HUF)

S. D. Parakh (HUF) is a Hindu Undivided Family, represented by its karta Satish Dhondulal
Parakh.

3. Ashish A. Katariya (HUF)

Ashish A. Katariya (HUF) is a Hindu Undivided Family, represented by its karta Ashish A. Katariya.

198
Companies with which the Promoters have disassociated in the last three years

The promoters have not disassociated themselves from any company/ firm during preceding three years.
None of the group companies have been struck from the records of the registrar of companies during
preceding three years.

Common pursuits with the Issuer

We shall adopt the necessary procedures and practices as permitted by law to address any conflict
situations as and when they may arise. For further details on the related party transactions, to the extent of
which the Company is involved, see the section entitled “Related Party Transactions” on page 200 of this
Prospectus.

199
 RELATED PARTY TRANSACTIONS

For details of related party transactions, please see the section entitled “Auditor’s Report on Standalone
Financial Information-Annexure XVII” on page 259 and the section entitled “Auditor’s Report on
Consolidated Financial Information-Annexure XVII” on page 289, respectively.

200
 DIVIDEND POLICY

We have not declared or paid any cash dividend on our Equity Shares in the last five Fiscals. The
declaration and payment of dividends if any, will be recommended by our Board of Directors and approved
by our shareholders in their discretion, and will depend on a number of factors, including but not limited to
our earnings, capital requirements and overall financial position. The Company has no stated dividend
policy. This is not indicative of our dividend policy or dividend amount, if any, in future.

201
 INDEBTEDNESS

I. Details of Borrowings of the Company

(a) Secured Borrowings

Our secured borrowings as of May 31, 2010 are as follows:

Sr. Nature of Name of Total Amount Total Amount Repayment Security

No. Borrowing the Cash Outstanding Non- Outstanding
Lenders Credit/ as on May Fund as on May
Working 31, 2010 Based 31, 2010
Capital (In Rs. Limit (In Rs.
Demand million) (In Rs. million)
Loan million)
Limit
(In Rs.
million)
Working Aggregate 1,500.00 543.99 9,000.00 3,586.90 Repayable For
capital loan on Demand details
agreement Axis Bank 400.00 110.00 1,900.00 950.29 Repayable of
dated Limited on Demand security
September Bank of 300.00 89.90 1,900.00 665.63 Repayable see Note
28, 2007 and India on Demand 1 below.
other Bank of 100.00 27.56 950.00 551.95 Repayable
supporting Maharashtra on Demand
documents Canara 100.00 43.29 500.00 88.61 Repayable
with a Bank on Demand
consortium Corporation 150.00 29.93 1,200.00 440.81 Repayable
of banks Bank on Demand
amended by Federal 50.00 16.96 650.00 401.90 Repayable
a second Bank on Demand
supplemental Indian Bank 150.00 70.65 950.00 483.71 Repayable
working on Demand
capital State Bank 250.00 155.70 950.00 4.00 Repayable
consortium of India on Demand
agreement
entered by
parties on
December
31, 2009 and
the indenture
of mortgage
dated
January 4,
2010.

Note (1):

1. A first charge on all the current assets of the Company, both present and future, wherever
situated, excluding assets pertaining to Nashirabad, Ahmednagar-Karmala, Ahmednagar-
Aurangabad and Sheri Nalla Projects and those which have been permitted to be
excluded by the consortium in their discretion.

2. A first charge on the moveable and immoveable fixed assets of the Company, except
those which have already been charged to other banks/FIs.

3. A negative lien on the moveable and immoveable fixed assets of the Company.

4. A residual charge on the license to collect toll, both present and future.

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 5. A first charge on land at Nashik owned by Ashoka Township.

6. Corporate guarantee of Ashoka Promoters Private Limited, Ashoka Premises Private

Limited and Ashoka Nirmiti Private Limited.

7. Personal guarantee of Ashok Katariya and S. D. Parakh, both being directors of the
Company.

(b) Corporate, Equipment and Vehicle Loans

As of May 31, 2010, the Company had availed of a total amount of Rs. 810.70 million from
different lenders for the purchase of corporate, equipment and vehicles against such equipment,
vehicles and machinery as collateral security as provided below:

(In Rs. million)

Sr. Name of the lender Sanctioned Outstanding Amount as Interest
No. Amount on May 31, 2010 (%)
1. ABN Amro Bank N.V. 40.65 14.65 9.36%-
12.50%
2. Axis Bank Limited 1.35 1.30 8.50%
3. Bank of Baroda 0.83 0.77 9.75%
4. Bank of Maharashtra 5.89 3.23 10.75%-
11.75%
5. Development Credit 1.73 0.71 10.74%
Bank
6. HDFC Bank Limited 133.98 106.46 9.00% -
12.00%
7. ICICI Bank Limited 182.61 12.41 8.34%-
11.56%
9. Kotak Mahindra Bank 60.31 33.85 10.00%-
Ltd. 10.97%
10. Standard Chartered 181.41 70.69 9.00% -
Bank 13.80%
11. HDFC Ltd., Nashik 32.00 1.55 9.50%-
11.00%
12. Kotak Mahindra Prime 8.19 7.73 8.51%
Ltd.
Reliance Capital 42.40 25.05 11.60-
Limited 11.61%
13. Srei Equipment 118.61 110.50 8.49%-
Finance Pvt. Ltd. 8.90%
14. Tata Capital Ltd. 0.39 0.35 10.04%
Tata Motor Finance 0.35 0.32 11.02%
Ltd.
Total 810.70 389.57

Corporate Actions

Some of the corporate actions for which the Company requires the prior written consent of the
lenders include the following:

1. Effecting any change in its capital structure.

2. Formulating any scheme of amalgamation or reconstruction.

203
 3. Implementing or undertaking any new project/scheme or acquisition except in the normal
course of business.

4. Making any corporate investments or investment by way of share capital or debentures or

lend or advance funds to or place deposits with, any other concern except give normal
trade credits or place on security deposits in the normal course of business or make
advances to employees; provided that the Company may make such investments by way
of deposits or advances that are required statutorily to be made as per existing laws of the
country or the rules or regulations or guidelines issued from time to time by the
authorities concerned.

5. Undertaking guarantee obligations on behalf of any third party or any other company.

6. Declaring dividends for any year except out of the profits relating to that year.

7. Any drastic change in the management set-up of the Company.

8. Permitting any transfer of the controlling interest in the Company.

(c) Project Loans

As of July 31, 2010, the Company had availed of a total amount of Rs. 1,054.98 million from
different lenders for financing their infrastructure projects as detailed in the table below:

Sr. Name of Nature of Amount Principal Interest Tenure Repayment Security

No. the Borrowing Sanctioned Amount (In % (years)
Lender(s) (In Rs. Outstanding p.a.)
Million) as at July 31,
2010
(In Rs.
Million)
Ahmednagar - Karmala Road Project
1. IDFC Rupee loan 380.0 95.81 7.71 16.75 Repayable in For
agreement 102 details of
dated June installments security
19, 2003 by December see Note
between the 2011. (i) below.
Company
and IDFC
2. IDFC Rupee loan 450.0 376.10 7.71 16.75 Repayable in For
agreement 105 details of
dated installments security
September by December see Note
21, 2005 2014. (i) below.
between the
Company
and IDFC
Ahmednagar - Aurangabad Road Project
1. IDFC Rupee loan 670.0 583.07 10.03 10.75 Repayable in For
agreement 102 equal details of
dated August monthly security
28, 2007 installments see Note
between the with the last (ii)
Company date of below.
and the payment
IDFC being March
15, 2017.

204
Note (i):

1. A first charge and mortgage on the entire present and future immoveable assets of the
Company pertaining to the Ahmednagar-Karmala project;

2. A first charge by way of hypothecation of the Company’s entire moveable assets

pertaining to the Ahmednagar-Karmala project;

3. A first charge on the Company’s book debts, operating cash flows, receivables,
commissions, revenues pertaining to the Ahmednagar-Karmala project;

4. A first charge of all intangibles including goodwill, uncalled capital, present and future,
of the Company pertaining to the Ahmednagar-Karmala project;

5. A first charge by way of assignment or creation of security interest in favour of the

lender, of all rights, title, interest or claims of the Company arising out of the project
documents, permits, approvals, clearances, letter of credit, guarantee and insurance
pertaining to the Ahmednagar-Karmala project;

6. A first charge on all accounts of the Company, including escrow accounts, pertaining to
the Ahmednagar-Karmala project;

7. A pledge of equity shares aggregating 3.41 % of the total paid up capital of the Company.
In accordance with the terms of the loan agreement an additional 20.45% of the total paid
up capital of the Company will have to be pledged to IDFC; and

8. Personal guarantees by Ashok Katariya, Sunil Raisoni and Satish Parakh, all being
Directors of the Company.

Note (ii):

1. An exclusive first charge by way of hypothecation of all the Company’s moveables

including moveable machinery, machinery spares, tools and accessories, present and
future pertaining to the Ahmednagar-Auragabad project;

2. An exclusive first charge on the Company’s book debts, operating cash flows,
receivables, commissions, revenue of whatsoever nature and wherever arising, present
and future pertaining to the Ahmednagar-Auragabad project;

3. An exclusive first charge on all intangibles of the Company including but not limited to
goodwill, uncalled capital, present and future pertaining to the Ahmednagar-Auragabad
project;

4. A first charge by way of assignment or creation of charge of (i) all the rights, title,
interest, benefits, claims and demands, whatsoever of the Company in the project
documents (including but not limited to the Concession Agreement, O&M Contract),
duly acknowledged and consented to by the relevant counter-parties to such project
documents, all as amended, varied or supplemented from time to time; (ii) all the rights,
title, interest, benefits, claims and demands whatsoever of the Company in the clearances
relating to this project; (iii) all the right, title, interest, benefits, claims and demands
whatsoever, of the Company in any letter of credit, guarantee, performance bond
provided by any party to the project documents and (iv) all insurance contracts/insurance
proceeds relating to the Ahmednagar-Auragabad project; and

205
 5. An exclusive charge on the trust and retention account, debt service reserve account and
other reserves and any other bank accounts of the Company wherever maintained,
pertaining to the Ahmednagar-Auragabad project.

(d) Unsecured Borrowings

As of May 31, 2010, the total unsecured loans of the Company aggregated to Rs. 1,098.62 million.
This includes loans taken from the following subsidiaries, partnership firms of the Company and
Group Companies:

(In Rs. million)

Sr. Name of the lender Outstanding Amount as on
No. May 31, 2010
1. Ashoka Highway Ad 23.53
2. Ashoka DSC Katni Bypass Road Private. Limited 14.12
3. Ashoka Infraways Private Limited 415.16
4. Viva Highways Private Limited 351.31
5. Jayaswals Ashoka Infrastructure Private Limited 194.50
6. Yes Bank 100.00
TOTAL 1,098.62

206
 SUMMARY OF PRINCIPAL DIFFERENCES BETWEEN IFRS AND INDIAN GAAP

The Company’s financial statements are prepared in conformity with Indian GAAP, which differs in certain
significant respects with IFRS. Such differences involve methods for measuring the amounts shown in the
financial statements of the Company, as well as additional disclosures required by IFRS, which the
Company has not prepared. The differences identified below are limited to those significant differences that
are appropriate to the Company’s financial statements. However, they should not be construed as being
exhaustive and no attempt has been made to identify possible future differences between Indian GAAP and
IFRS as a result of prescribed changes in accounting standards nor to identify future differences that may
affect the Company’s financial statements as a result of transactions or events that may occur in the future.

Potential invest construe this summary to be exhaustive or complete and should consult with their own
professional advisors for a complete understanding and impact on the financial statements provided in this
Prospectus.

Subject Indian GAAP IFRS

Contents of Two years’ balance sheets, profit and Two years’ balance sheets, income
Financial loss account, schedules, accounting statement, recognised gains and losses
statements policies and notes. The format follows and cash flow statements, changes in
the requirement of the Companies Act, equity, accounting policies and notes.
1956. Only companies listed on Indian
stock exchanges and non-listed
enterprises whose turnover exceeds Rs.
500 million or borrowings exceeding
Rs.100 million are required to furnish
cash flow statements. Changes in
shareholders equity are disclosed in
schedules of ‘Share Capital’. The
presentation of these financial
statements differs in certain respects
compared to IFRS.

True and fair view Provisions of The Companies Act, 1956 In rare cases, override standards to give
override make compliance with standards "true and fair view".
mandatory. However, based on facts &
circumstances, true and fair view can be
given with a suitable qualification in
respect of non-compliance with
Accounting Standards.

Changes in Disclosure: Impact of and adjustments Either restates comparatives and prior
accounting policies resulting from the change, if material, year opening retained earnings or
are to be shown in the financial include effects (net of taxes) in current
statements of the period in which the year income statement and provide
change is made. If the effect of the proforma comparatives in the notes.
change cannot be estimated that fact is Disclosure is required of the reasons for
to be disclosed. A change that has no and the effect of the change
material effect in the current period but
is reasonably expected to have material
effect in later periods is to be
appropriately disclosed in the period in
which change is adopted.

Correction of The nature and amount of prior period Restatement of comparatives is

fundamental errors items should be separately disclosed in mandatory.

207
 Subject Indian GAAP IFRS
the current year's profit and loss and the
effect of the error must also be
disclosed.

Reporting currency Company law requires reporting in local Requires measurement of profit using
(Indian) currency. Foreign currency the measurement currency; however
transaction information is mandated in entities may present financial statements
certain specified cases as additional in different currency. Does not permit
information. the capitalisation of exchange
differences in the carrying amount of
AS 11 requires recognition of assets.
transactions in foreign currency in the
reporting currency (local currency) by
applying the exchange rate prevailing
on the transaction day. It also requires
recognition of exchange profit/loss to
the revenue account.

Does not permit the capitalisation of

exchange differences in the carrying
amount of assets. Though, Schedule VI
requires such differences to be
capitalised, clarification has been issued
that treatment that accounting treatment
prescribed under AS-11 needs to be
followed.

Contents of Accounting standards do not prescribe No particular format is prescribed for

financial formats for the balance sheet. Certain the income statement. However,
statements – items are required to be disclosed on the expenditure must be prescribed in one of
Disclosures face of the balance sheet. two formats (function or nature). Certain
Balance sheet and items must be presented on the face of
Income Statement Balance sheet, profit and loss account the income statement.
format Formats are prescribed by the Indian
Companies Act and other regulatory Similarly, no particular format is
bodies. prescribed for the balance sheet; an
entity may use a liquidity presentation
of assets and liabilities, instead of a
current/non-current presentation, only
when a liquidity presentation provides
more relevant and reliable information.
Certain items must be presented on the
face of the balance sheet.

Cash flow Headings are standardised. Indirect Standard headings, but flexibility over
statement - formats method to be used except, in cases their contents. Use direct or indirect
and method specified by the regulator. method.

Cash flow Bank borrowings are considered to be Cash includes and cash equivalents with
statement – financing activities and not cash short term maturities(less than three
Definition of cash equivalents. months) and bank overdrafts repayable
& cash equivalents on demand

Changes in AS-5 states that changes in accounting Account for in income statement in the

208
 Subject Indian GAAP IFRS
accounting estimates should be recognised in current and future periods, as
estimates current or future periods depending on appropriate.
period affected by the change.

Group Reporting - Controlling interest through majority of Based on voting control or power to
Definition of voting shares or control of board of govern financial and operating policies
subsidiary directors. under a statute or an agreement.

Group Reporting - AS 21 does not mandate consolidation, As per IAS 27,consolidated

Exclusion of but sets out the standards to be followed financial statements must be prepared
subsidiaries from in the event that consolidated financial whenever there is a parent-subsidiary
consolidation statements are presented or required by relation (with a few minor exceptions)
law or regulation.
Intermediate parent companies which
Standards for consolidation. are wholly owned or virtually wholly
A subsidiary should be excluded from owned subsidiaries are exempted from
consolidation when: preparing consolidated financial
x it operates under severe long-term statements irrespective of their location,
restrictions that significantly impair provided the parent publishes
its ability to transfer funds to the consolidated financial statements that
parent; or comply with IAS.
x control is intended to be
temporary because the subsidiary is Under IAS 27, in a parent's separate
acquired and held exclusively with financial statements investments in
a view to its subsequent disposal in subsidiaries may be accounted for either
the near at cost less any impairment, or as an
future (in the event of disposal not available- for- sale investment under
taking place due to some valid IAS 39.
reason, the subsidiary will continue
to be excluded from the A subsidiary should be excluded from
consolidation). consolidation only when control is
intended to be temporary because the
Under AS 21, in a parent's separate subsidiary is acquired and held
financial statements, investments in exclusively with a view to its
subsidiaries are carried at cost less any subsequent disposal in the near future.
impairment loss recognised

Definition of Similar to IFRS. Twenty percent Based on significant influence.

associate defined in the accounting standard. Presumed if twenty percent or greater
interest or participation in entity affairs.

Manner of Similar to IFRS. Equity method of consolidation. Not

consolidation required to be consolidated if control is
Not required to be consolidated if : intended to be temporary.

¾ it operates under severe long-term

restrictions that significantly
impair its ability to transfer funds
to the parent; or
¾ control is intended to be
temporary because the subsidiary
is acquired and held exclusively
with a view to its subsequent
disposal in the near future (in the

209
 Subject Indian GAAP IFRS
event of disposal not taking place
due to some valid reason, the
subsidiary will continue to be
excluded from the consolidation)

Internally Similar to IFRS. Expense research costs as incurred.

Generated Capitalise and amortise development
Intangible assets costs only if specific criteria are met.

Acquired Capitalised if recognition criteria are Capitalised if recognition criteria are

Intangible assets met. AS-26 indicates that useful life of met. Amortisation is to be done over the
software is between three to five years useful life of the asset. .
and other assets are ten years.

Fixed Assets Capital expenditure incurred on assets Amounts. Frequent valuations of entire
owned is capitalised and depreciated classes of assets necessary when
over useful life of the asset. Fixed revalued amounts used.
Assets are stated at historical cost or re-
valued amounts. Revaluation has to be
made on an entire class of assets, or
assets selected systematic basis. No
current restriction on frequency of
valuation.

Depreciation Rates prescribed in the Companies Act Allocated on a systematic basis to each
for the minimum depreciation accounting period during the useful life
provision. Where applicable, higher of the asset. Measure at depreciated cost
depreciation based on useful life of the or fair value and recognise changes in
asset should be provided. Asset lives are fair value in the income statement. A
not prescribed by the Companies. Act change in method of providing
but can be derived from the depreciation depreciation is treated as a change in
rates. A change in method of providing accounting estimate.
depreciation is treated as change in
accounting policy requiring
retrospective recomputation of
depreciation from the date of asset
coming into use.

Impairment of Similar to IAS, except reversal of Impairment is assessed on discounted

assets impairment losses for goodwill is cash flows for assets other than held for
required in certain circumstances. sale. If impairment is indicated, assets
are indicated, assets are written down to
higher of fair value less costs to sell and
value in use based on discounted cash
flows.

Reversal of impairment losses is

required, other than goodwill; in certain
circumstances.

Capitalisation of Borrowing costs that are directly The benchmark treatment is to expense
borrowing costs attributable to the acquisition, all borrowings costs in the period in
construction or production of a which they are incurred.
qualifying asset are capitalised as part

210
 Subject Indian GAAP IFRS
of the cost of the asset. Other Allowed alternative treatment is that
borrowings cost are recognised as an borrowing costs in relation to the
expense in the period in which they are acquisition, construction and production
incurred. of a qualifying asset should be treated as
a part of the cost of the relevant asset.
Where the allowed alternative method is
adopted, that treatment should be
applied consistently to all borrowing
costs incurred for the acquisition,
construction and production of
qualifying asset.

Borrowing costs include foreign

exchange differences that are regarded
as an adjustment to interest cost.

Debt issuance costs and redemption

premiums payable on the redemption of
debt are treated as deferred charge and
amortised using the effective interest
rate method over the life of the debt.

Investments Carry long-term investments at cost Carry long-term investments at cost or

(with provision for permanent revalued amounts. Record revaluations
diminution in value). consistently in income statement or
equity.
Current investments carried at lower of Carry current asset investments at lower
cost or fair value determined on of cost and market value or at market
individual basis or by category of value. Record market value changes in
investment but not on overall (or global) income statement. Recent proposals to
basis. carry some financial assets at fair value.

Inventories Similar to IFRS. Specific identification Carry at lower of cost and net realisable
method may be used in certain cases. value; use FIFO, or weighted average
method to determine cost.
IAS 2 requires certain additional
disclosures.

Construction Comparable to IFRS. Recognise long-term contract revenues

contracts and profits using percentage of
completion method when the stage of
completion can be measured reliably.

In case outcome cannot be estimated

reliably, revenue is recognised only to
the extent of contract costs incurred.

Revenue Comparable to IFRS. Except that Revenue from sale of goods is

recognition criteria for revenue recognition is a recognised when significant risks and
negative assurance of no significant rewards have been transferred to the
uncertainty of collection. buyer.

Criteria for revenue recognition are

probability that economic benefits will

211
 Subject Indian GAAP IFRS
flow to the entity.

Interim Financial Similar to IFRS. However, publication Not mandatory to prepare interim
Reporting of quarterly results is mandatory for statements but must use standard if
listed entities as specified by the prepared. Basis should be consistent
Securities and Exchange Board of India with the full-year statements and include
(SEBI). This reporting is not a full comparatives.
balance sheet reporting but specified
information pertaining to Profit & Loss
Account & Share Capital. These are
subjected to a limited review by the
statutory auditors. Companies may opt
to publish audited results. Consolidation
on quarterly basis is not required.

Interim financial reporting is not

otherwise mandatory under the
accounting standards.

Provisions – Comparable to IFRS except that There Record provisions relating to present
general is no requirement for discounting the obligations from past events if probable
amount of provisions. outflow of resources can be reliably
estimated.

Where the effect of time value of money

is material, the amount of provision
should be the present value of the
expenditure required to settle the
obligation.

Contingencies Contingent loss is provided in the profit Disclose possible losses and probable
and loss statement if it is probable that gains.
future events will confirm that, after
taking into account any related probable
recovery, an asset has been impaired or
a liability has been incurred as at the
balance sheet date and a reasonable
estimate of the amount of the resulting
loss can be made. In other cases,
contingent losses are to be disclosed
unless the possibility of occurrence is
remote.
Contingent gains are not recognised.

Employee benefits - Similar to IAS, except actuarial gains Projected Unit Credit Method is used to
pension costs – and losses are recognised upfront in the determine benefit obligation and record
defined benefit income statement. plan assets at fair value. Actuarial gains
plans and losses can be deferred.

Employee benefits Similar to IAS. It qualifies as short term or other long

– compensated term employee benefits. The expected
absences cost of accumulating short term
compensated absences is recognised as
an expense. Liability for long term

212
 Subject Indian GAAP IFRS
compensated absences is measured
using projected unit credit method.

Termination Similar to IAS, however, timing of Termination benefits arising from

Benefits recognising liability could differ. redundancies are accounted for similarly
to restructuring provisions. Termination
indemnity schemes are accounted for
based on actuarial present value of
benefits.

Related party Determined by ability to control or to Determined by level of direct or indirect

transactions - exercise significant influence over the control and significant influence of one
definition other party. party over another or common control of
both parties.

Related party Similar to IFRS except the following Disclose name of related party and
transactions - additional disclosures: Volume of nature of relationship and types of
disclosures transactions · Amounts due from related transactions. For control relationships,
parties outstanding at the balance sheet give disclosures regardless of whether
date together with provision for transactions occur. Some exemptions
doubtful debts due from related parties. available for separate financial
· Amounts written off or written back statements of subsidiaries.
during the period in respect of debts due
from related parties.

Earnings per share Comparable to IFRS. Entities to present basic and diluted
– diluted earnings per share. Use weighted
average potential dilutive shares as
denominator for basic and diluted EPS.

Extraordinary and AS 5 requires disclosure of Extraordinary items limited to a few

exceptional items extraordinary items. The term events outside control of company. Does
exceptional items is not defined.- not use the term, but requires separate
disclosure of items that are of such size
and nature that requires separate
disclosure to explain the performance of
the entity. Exceptional items usually
shown on the face of the income
statement or in the notes.

Post balance sheet Non adjusting events are required to be Adjust financial statements for
events disclosed in the report of the approving subsequent events providing evidence of
authority. conditions at balance sheet date and
materially affecting amounts in financial
statements. Disclose non-adjusting
events in the financial statements.

Segment reporting Comparable to IFRS. Public entities. Report primary and

- scope and basis of secondary segment formats based on
formats risks and returns and internal reporting
structure.

Segment reporting Additional disclosures with respect to Disclosures for primary segment format
– disclosures depreciation and other non-cash include sales, profits, capex, assets and

213
 Subject Indian GAAP IFRS
expenses. For secondary format sales, liabilities. For secondary segment
assets and capex to be disclosed. Other format, report sales, assets and capex.
required disclosures include basis of Two or more operating segments are
pricing inter segment transfers, types of allowed to be aggregated if economic
products and services and composition characteristics are similar.
of each geographical segment.
Basis for identifying individual business
segment are related products or
services.

Deferred taxation Deferred tax assets and liabilities Full provision method must be used
should be recognized for all timing (with some exceptions), driven by
differences subject to consideration of balance sheet temporary differences.
prudence in respect of deferred tax Recognise deferred tax assets if
assets. Where an enterprise has recovery is probable.
unabsorbed depreciation or carries
forward losses under tax laws,
deferred tax assets should be
recognized only to the extent that there is
virtual certainty supported by
convincing evidence that sufficient
future taxable income will be available
against which such deferred tax assets
can be realized.

Unrecognized deferred tax assets are

reassessed at each balance sheet date
and are recognized to the extent that it is
certain that such previously
unrecognized deferred tax assets will be
realized.

Deferred tax in respect of timing

differences that reverse in a tax holiday
period are not to be recognised.

Deferred taxation – Deferred tax assets and liabilities should Deferred tax assets and liabilities should
Measurement be measured using the tax rates and tax be measured at the tax rates that are
laws that have been enacted or expected to apply to the period when the
substantively enacted at the balance asset is realized or the liability is settled,
sheet date. based on the tax rates and tax laws that
have been enacted or substantively
enacted by the balance sheet date.

Dividends A liability is recognised for dividends in Dividends declared after the balance
the year to which they relate. sheet date is not recognised as liability
at the balance sheet date.

Government No such disclosure required. Disclosure is required of the unfulfilled

Grants – Disclosure conditions and other contingencies
attaching to government assistance that
has been recognized.

214
 AUDITOR’S REPORT ON STAND-ALONE FINANCIAL INFORMATION

The Board of Directors,

Ashoka Buildcon Limited,
Ashoka House,
Ashoka Marg,
Nashik 422 011.

Dear Sirs,

1. We have examined the financial information of Ashoka Buildcon Limited annexed to this report, as
approved by The Board of Directors of the company, prepared in terms of

™ Paragraph B (1) of Part II part of Schedule II of the Companies Act, 1956 (“the Act”)
™ The Securities and Exchange Board of India (“SEBI”) (Issue of Capital and Disclosure
Requirements) Regulations, 2009, (the “Regulations”) issued by SEBI on August 26, 2009, as
amended from time to time
™ Our engagement letter agreed upon with you with the proposed issue of equity shares of the
company.

2. We have examined such statement taking into consideration the revised Guidance Note on report in
Company Prospectuses issued by the Institute of Chartered Accountants of India (the “ICAI”).

3. This information has been extracted by the Management from the audited financial statements for the year
ended March 31, 2006, 2007, 2008, 2009 and 2010. Audit for the financial year ended March 31, 2006 was
conducted by previous auditor, M/s Rathi Daga & Co, Chartered Accountants, and accordingly reliance has
been placed on their audit report for the said year. The restated financial information included for this year,
i.e. March 31, 2006 is based solely on the report submitted by the previous auditor M/s Rathi Daga & Co to
the company.

4. In accordance with the requirements of Paragraph B(1) of Part II of Schedule II of the Act, the Regulations
and terms of our engagement agreed with you, we further report that:

a) The restated summary statement of assets and liabilities, restated summary statement of profits
and losses and restated statement of cash flows of the Company, as at March 31, 2006 examined
by us, by placing reliance on audit report issued by M/s Rathi Daga & Co, for that year, as at and
for the year ended March 31, 2007, 2008, 2009 and 2010 examined by us, as set out in the
Annexure I, II and III to this report are after making adjustments and regrouping as in our
opinion were appropriate and more fully described in the notes on adjustments for re-stated
financial statements and significant accounting policies for re-stated financial statements as set out
in Annexures IV and V.

b) Based on above, we are of the opinion that that the restated financial information has been made
after incorporating:

(i) adjustments for the material amounts in the respective financial years to which they
relate,

(ii) adjustments for qualifications retrospectively in the respective financial years to reflect
the accounting treatment to be followed had there been no qualification,

c) Based on our examination, we are of the opinion that the standalone restated financial statements
have been prepared on the basis of accounting policies adopted as at and for the year ended March
31, 2010.

215
 d) There are no extra ordinary items which need to be disclosed separately in the standalone restated
financial information.

5. We have also examined following other financial information set out in the below mentioned annexures
prepared by the management and approved by the Board of Directors relating to the Company for the year
ended March 31, 2006, 2007, 2008, 2009 and 2010. In respect of the year ended March 31, 2006, this
information has been included by placing reliance on the audit report issued by M/s Rathi Daga & Co. and
relied upon by us.

(i) Statement of Secured Loan included in Annexure VI

(ii) Statement of Unsecured Loan included in Annexure VII
(iii) Statement of Loans & Advances included in Annexure VIII
(iv) Statement of Sundry Debtors included in Annexure IX
(v) Statement of Investment included in Annexure X
(vi) Statement of Current Liabilities and Provisions included in Annexure XI
(vii) Statement of Other Income included in Annexure XII
(viii) Statement of Contingent Liabilities and Capital Commitments included in Annexure XIII
(ix) Statement of Dividend declared / Paid / Proposed included in Annexure XIV
(x) Statement of Accounting Ratios included in Annexure XV
(xi) Statement of Capitalisation as at March 31, 2010 included in Annexure XVI
(xii) Statement of Related Party Transaction included in Annexure XVII
(xiii) Statement of Tax Shelter included in Annexure XVIII
(xiv) Statement of Segment Reporting included in Annexure XIX

6. In our opinion the financial information contained in Annexure I to XIX of this report read along with the
Significant Accounting Policies, and Notes to Accounts prepared after making adjustments and regrouping
as considered appropriate have been prepared in accordance with Paragraph B (1) of Part II of Schedule II
of the Act and the Regulations.

7. Our report is intended solely for use of the management and for inclusion in the offer document in
connection with the proposed issue of equity shares of the Company. Our report should not be used,
referred to or distributed for any other purpose except with our prior written consent.

8. This report should not be in any way constructed as a re-issuance or re-drafting of any of the previous audit
reports issued by either any of us singly or issued jointly, nor should this report be construed as new
opinion on any of the financial statements referred to herein.

9. We have no responsibility to update our report for events and circumstances occurring after the date of the
report.

for M P Chitale & Co.

Chartered Accountants
Firm Registration No.101851W

Murtuza Vajihi
Partner
ICAI M. No. 112555

Mumbai,
July 3, 2010

216
ANNEXURE I

SUMMARY STATEMENT OF ASSETS AND LIABILITIES, AS RESTATED

(All figures in Rupee Millions)

Particulars As At
March March March March March
31, 2010 31, 2009 31, 2008 31, 2007 31, 2006

ASSETS :
Tangible Assets
Gross block 1,616.85 1,306.22 1,106.47 889.35 566.09
Less: Depreciation Reserve 554.46 430.33 331.85 221.01 152.40
Net block (1 ) 1,062.39 875.89 774.62 668.34 413.69
Intangible Assets
Gross block 2,231.46 2,208.76 1,182.12 1,256.37 1,259.68
Less: Amortisation Reserve 967.03 753.01 537.77 461.23 318.60
Net block (2) 1,264.43 1,455.75 644.35 795.14 941.08
Add : Capital Work in Progress (3) 42.78 179.40 982.62 263.74 48.17
Total ( 1 + 2 + 3)(A) 2,369.60 2,511.04 2,401.59 1,727.22 1,402.94

INVESTMENTS ( B ) 2,159.64 1,935.33 1,653.62 1,607.57 916.84

CURRENT ASSETS, LOANS & ADVANCES:
Inventories* 1,954.62 670.02 905.47 588.58 297.19
Sundry Debtors 1,754.59 727.80 654.76 290.42 477.43
Cash & Bank Balances 587.44 479.07 525.06 1,050.32 448.63
Loans and Advances 2,816.99 2,275.97 684.72 629.61 565.18
Total ( C ) 7,113.64 4,152.86 2,770.01 2,558.93 1,788.42

TOTAL ASSETS (A + B +C) 11,642.88 8,599.23 6,825.22 5,893.72 4,108.20

LIABILITIES AND PROVISIONS:

Unsecured Loans 1,599.62 976.88 804.60 812.11 887.49
Secured Loans 1,668.93 2,277.99 2,287.04 1,726.03 1,222.48
Deferred Tax Liability 30.06 18.39 12.84 24.46 26.81
Current Liabilities & Provisions :
Current Liabilities 3,945.58 1,856.76 778.37 560.09 375.41
Provisions - Staff Unencashed Leave 7.12 4.82 4.91 5.54 2.29
Provisions For Taxation 342.25 155.64 71.07 39.24 17.46
Total (D) 7,593.56 5,290.48 3,958.83 3,167.47 2,531.94
NET WORTH
Represented by:
Share capital 581.30 587.25 587.25 224.21 211.40
Security premium (Net of Share Issue Expenses) 1,375.70 1,393.32 1,446.69 1,858.90 893.86
Preference Share Redemption Reserve 166.54 159.33 141.62 176.39 151.64
Profit and Loss Account 1,925.78 1,168.86 690.82 466.74 319.36
Less: Preliminary / share issue expenses not written - - - - -
off
Total (E) 4,049.32 3,308.75 2,866.39 2,726.25 1,576.26

217
 Particulars As At
March March March March March
31, 2010 31, 2009 31, 2008 31, 2007 31, 2006

TOTAL LIABILITIES (D + E) 11,642.88 8,599.23 6,825.22 5,893.72 4,108.20

Notes:
In the financial year 2007-2008 balance of Profit and loss Account increased by Rs. 3.59 million due to effect of
transitional provision of A.S. 15.
* includes Development Rights for Commercial Units of Rs.146.51 Millions (F.Y. 2008-09 Rs.144.50 Millions).

218
ANNEXURE II

SUMMARY STATEMENT OF PROFITS AND LOSSES, AS RESTATED

(All figures in Rupee Millions)

Particulars Year Ended
March March March March March
31, 2010 31, 2009 31, 2008 31, 2007 31, 2006
INCOME :
Turnover
- Construction Revenue 9,945.43 6,223.02 2,246.62 2,445.41 1,181.32
- Sales 769.50 811.78 679.71 481.86 247.38
- Toll Income – BOT 447.53 387.82 337.75 280.50 218.72
- Toll Income – Contract - - - 345.40 20.42
Total Turnover 11,162.46 7,422.62 3,264.08 3,553.17 1,667.84
Other Income 202.47 137.42 155.54 158.44 129.17
TOTAL INCOME 11,364.93 7,560.04 3,419.62 3,711.61 1,797.01
EXPENDITURE :
Contract / O & M Expenses 8,695.67 5,305.68 1,881.52 2,191.80 959.97
Cost of Material Sold 573.98 581.56 525.22 374.02 221.90
Toll Expenses – Contract - - - 316.87 17.92
Staff Expenses 227.53 171.54 125.58 102.37 63.73
Administrative Expenses 178.62 152.46 141.65 112.10 70.95
Finance Costs 341.71 449.17 254.04 240.00 160.09
Depreciation 141.80 115.79 99.93 73.64 59.79
Amortisation 214.02 215.24 150.80 142.63 123.66
TOTAL EXPENDITURE 10,373.33 6,991.44 3,178.74 3,553.43 1,678.01

Profit before tax , prior period items and Adjustments 991.60 568.60 240.88 158.18 118.99
Provision for taxation :
Current Tax 223.01 82.80 29.18 12.74 15.80
Deferred Tax 11.67 5.55 (11.62) (2.35) 14.98
Fringe Benefit Tax - 2.22 2.83 1.41 2.03
Profit before prior period items and Adjustments 756.92 478.03 220.49 146.38 86.18
ADJUSTMENT (see Annexure IV )
ADJUSTMENTS (see Note 1 of Annexure IV) - - - (1.49) 0.79
Current Tax Impact of Adjustments - - - 0.49 (0.50)
Net Profit After Adjustments 756.92 478.03 220.49 147.38 85.89
Profit of Merged Entities
Net Profit attributable to Shareholders 756.92 478.03 220.49 147.38 85.89
Profit Brought Forward from Previous years 1,168.86 690.82 466.74 319.36 233.48
Profit of Merged Entities
Balance carried to Balance sheet 1,925.78 1,168.86 687.23 466.74 319.36

Notes: Profit Brought Forward from Previous years in financial year 2008 - 2009 is increased by Rs. 3.59 million
due to transitional provision of A.S. 15

219
ANNEXURE III

STATEMENT OF CASH FLOW, AS RESTATED

(All figures in Rupee Millions)

Particulars Year Ended
March 31, March March March March
2010 31, 2009 31, 2008 31, 2007 31, 2006

A. CASH FLOW FROM OPERATING ACTIVITIES :

Net Profit before Tax and after Adjustments 991.60 568.59 240.88 159.67 118.20
Adjustments for :
Depreciation / Amortisation 355.82 331.03 250.73 212.04 184.86
Investment Income (77.52) (61.57) (55.21) (48.81) (58.70)
Provision for Doubtful Debts 15.96 - - - -
Interest (Net) 341.71 449.17 254.04 240.00 160.09
Impact of Transitional Provision As per AS-15 - - 3.59 - -
Profit /(Loss) on Sale of Investments (46.22) - - - -
Profit /(Loss) on sale of Assets 1.51 (4.24) (1.02) - -
Share Issue Expenses written off - - - - -
Operating Profit before Working Capital 1,582.86 1,282.99 692.27 562.90 404.44
Changes
Adjustments for :
Inventories (1,284.60) 235.45 (316.89) (291.39) (106.15)
Trade and Other Receivables (1,397.16) (1,615.38) (387.67) 130.92 (498.07)
Trade Payables 2,091.11 1,078.30 218.45 201.37 (114.26)
Cash Generated from the Operations 992.21 981.36 206.16 603.80 (314.04)
Direct Taxes Provision (2,23.01) (85.02) (32.01) (14.64) (13.56)

Net Cash from/(used in) Operating Activities 769.20 896.35 174.15 589.16 (327.61)

B. CASH FLOW FROM INVESTING ACTIVITIES :

(Purchase) / Sale of Fixed Assets (215.90) (436.24) (924.08) (534.98) (231.50)
Investments :
(Purchase) / repayment & reduction of (990.94) (281.71) (46.05) (690.73) (99.81)
Investments
812.86 - - - -
Sale Proceeds of Investments
Share of profits/ (losses) Associates /Joint 77.53 61.57 55.21 47.46 61.21
Ventures
Net Cash (used in) Investing Activities (316.45) (656.39) (914.93) (1,178.25) (270.10)

C. CASH FLOW FROM FINANCING ACTIVITIES :

Increase in Share Capital - - (83.94) 1,002.61 (19.93)
Repayment of Borrowings (823.46) (679.72) - - -
Proceeds from borrowings ( Net ) 837.15 842.95 553.50 428.16 970.25
Repayment of Preference Share Capital (16.36) - - - -
Interest Paid (341.71) (449.17) (254.04) (240.00) (160.09)

Net Cash from/(used in) Financing activities (344.39) (285.94) 215.52 1,190.78 790.23

220
 Particulars Year Ended
March 31, March March March March
2010 31, 2009 31, 2008 31, 2007 31, 2006

NET INCREASE / ( DECREASE) IN CASH 108.36 (45.98) (525.26) 601.69 192.53

AND CASH EQUIVALENTS
Cash & Cash Equivalent at the end of year 587.44 479.07 525.06 1,050.32 448.63
Cash & Cash Equivalent at the beginning of year 479.07 525.06 1,050.32 448.63 256.10
NET INCREASE IN CASH AND CASH 108.36 (45.98) (525.26) 601.69 192.53
EQUIVALENTS
COMPONENTS OF CASH AND CASH
EQUIVALENTS
Cash in hand 3.47 3.24 3.10 4.49 4.66
Balances with Banks:
-Current Account 310.22 160.15 155.25 168.54 51.58
-Deposit Account 273.75 315.69 366.71 877.28 392.38

221
ANNEXURE IV

BREAK UP OF ADJUSTMENTS/RESTATMENTS MADE IN RESTATED FINANCIAL INFORMATION

The adjustments / restatements made while preparing the Restated Financial Information are summarized below:

(All figures in Rupee Millions)

Particulars Year Ended
March March March March March
31, 2010 31, 2009 31, 2008 31, 2007 31, 2006
Net Profit After Tax and before adjustments as 756.92 478.03 220.49 146.38 86.18
per Audited Financial Statements

Restatements / Adjustments on account of :

- Prior Period items ( refer Note 1 ( a ) below ) - - - (0.80) (0.39)

- Provision for Leave Encashment ( refer Note 1 - - - 2.29 (1.10)

( b ) below )

- Adjustment of Depreciation for Prior Years ( - - - - 0.70

refer Note 1 ( c ) below )

- Adjustments of Income tax for prior years - - - - -

- Adjustments of deferred tax for prior years - - - - -

Current Tax impact of Adjustments - - - (0.49) 0.50

Net Profit After Tax and after Extraordinary 756.92 478.03 220.49 147.38 85.89
items as per Restated Financial Information of
profits and losses
NOTES ON ADJUSTMENTS MADE IN THE RESTATED FINANCIAL INFORMATION

CHANGE IN ACCOUNTING POLICIES:

1 (a) In the restated financial statements prior period items are considered as expenditure / income in the
financial year for which these items pertain to.
1 (b) Leave encashment was accounted for on payment basis till financial year 2005-06 and no provision was
made for outstanding leave. In the restated financial statements the provision for leave encashment has
been made from financial year 2002-2003 onwards.
1 (c) In the restated financial statements error in calculation of amortisation are accounted for, in the respective
financial year.

222
ANNEXURE V

Notes on adjustment for re-stated financial statements and significant Accounting Policies

COMPANY OVERVIEW:

The Company is incorporated in 1993. It is presently in the business construction of infrastructure facilities on
Engineering, Procurement and Construction Basis (EPC) and Built, Operate and Transfer (BOT) Basis and Sale of
Ready Mix Concrete and Bitumen. The Company has promoted Special Purpose Vehicles (SPVs) for some of its
projects. The SPVs significantly engage the services of the Company for contract related activities due to inherent
execution capabilities / expertise and experience of the Company.

I STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

1 Basis & Method of Accounting

The Company follows mercantile system of accounting and recognizes income and expenditure on an
accrual basis. Financial Statements are prepared under historical cost convention, in accordance with the
Generally Accepted Accounting Principles in India (GAAP) and comply in all material aspects, with
mandatory accounting standards as notified by the Companies (Accounting Standards) Rules, 2006,
relevant provisions of the Companies Act and statements issued by the Institute of Chartered Accountants
of India. The significant accounting policies followed by the Company are set out below. Management has
made certain estimates and assumptions in conformity with the GAAP in the preparation of these financial
statements, which are reflected in the preparation of these financial statements. Difference between the
actual results and estimates are recognised in the year in which the results are known.

2 Fixed Assets & Depreciation

(a) Fixed assets are stated at cost less accumulated depreciation. Cost comprises cost of acquisition
and expenditure directly attributable for commissioning of the asset. In respect of assets acquired
on merger, fixed assets are stated at their fair market value on the effective date of merger less
depreciation.

(b) Depreciation has been provided on Written Down Value method at the rates specified in Schedule
XIV to the Companies Act, 1956.

3 Intangible assets & Amortization

(a) Intangible assets are carried at cost of acquisition less any subsidies or grants. These assets include
all duties, non-refundable taxes, levies and costs incurred (which are directly attributable) for
bringing assets into working conditions for its intended use. Intangible assets include assets that
are incidental for the purpose of Toll Collection and which will be handed over at the end of the
concession period. Fees incurred in order to arrange long-term financing are capitalized and
amortized over the life of the asset.

(b) Intangible assets are amortized on straight line method over the useful life of the asset/ Concession
period. Amortization of these Intangible Assets commences when the Right to Collect Toll is
established by the Company.

4 Investments

Long term Investments are stated at acquisition cost. Investments acquired on merger are stated at their fair
market value on the effective date of merger. Current Investments are valued at Cost or Market Value
whichever is lower.

223
5 Revenue Recognition

(a) Construction Contracts

(i) Revenue from long term contracts / Turnkey Projects is recognized on percentage
completion basis as prescribed by AS-7 'Construction Contracts' issued by the Institute of
Chartered Accountants of India. Materials sold under Turnkey Projects are treated as
Construction Work in Progress till the activity is certified by the client. Provisions for
future foreseeable losses are fully provided for.

(ii) Claims and variations for escalations/damages are recognized only when accepted by the
client. Claims under arbitration/disputes are accounted as income based on final award.
Expenses on arbitration are accounted as incurred.

(b) Sales

Sale of goods is recognised on dispatch to customers. Sales are stated net of VAT, duties and
discounts.

(c) Toll Collection – BOT & Contracts

(i) Income from toll collection is recognised on the basis of actual collections.

(ii) Sale of discounted toll coupons/swipe cards is recognized as income at the time of sale.

(d) Income from Joint Venture project is recognised only when the profit / income is ascertained and
there is certainty and substantial precision as to amount of income.

(e) Dividend Income on investment is accounted when the right to receive is established.

6 Inventory

(a) Inventory of construction / raw material is valued at cost or net realizable value whichever is less.
Cost includes all taxes and expenses incurred to bringing inventory to their present location and
condition. Cost is arrived at using FIFO basis.

(b) Work in Progress in respect of construction contracts is valued on the basis of technical estimates
and percentage completion basis.

(c) Stores and spares are expensed as and when purchased.

7 Employee Benefits

(a) Provision for liabilities in respect of leave encashment is estimated on the basis of an actuarial
valuation.

(b) Provision for gratuity liability is made on the basis of Actuarial Valuation in respect of the Group
Gratuity Policy with an insurance company.

(c) Provident Fund benefit to employees is provided for on accrual basis and charged to Profit and
Loss Account.
(d) Compensation Cost of ESOP to employees is accounted on Intrinsic Value Method. Intrinsic value
is the amount by which the quoted market price of the underlying shares on the grant date exceeds
the exercise price of the options. Accordingly, the compensation cost is amortized over the vesting
period.

224
8 Borrowing Cost

Borrowing costs attributable to acquisition and construction of capital assets are capitalized till the asset is
put to use/ready for use. Borrowing costs attributable to construction contract project are charged to profit
& loss account and are included for computation of work in progress. All other borrowing costs are
recognised as expenditure in the year when they were incurred.

9 Foreign Exchange Transactions, Forward Contracts and Derivatives

(a) Transactions in foreign currency are recorded at exchange rates prevailing on the dates of
respective transactions. The difference in translation and realized gains and losses on foreign
exchange transactions are recognized in the Profit and Loss Account.

(b) The Company enters into derivative contracts to hedge against the risk of adverse movements in
interest rates, foreign currencies or value of the hedged items. All outstanding derivative
instruments at close are marked to market by type of risk and the resultant losses relating to the
year, if any, are recognised in the Profit & Loss Account. Gains are accounted on realisation.

10 Impairment of Fixed Assets

Wherever events or changes in circumstances indicate that the carrying value of fixed assets may be
impaired, such assets are subject to a test of recoverability, based on discounted cash flows expected from
use or disposal thereof. If the assets are impaired, loss is recognised.

11 Taxes on income

(a) Tax expense comprises both current and deferred tax at the applicable enacted/substantively
enacted rates. Current tax represents the amount of income tax payable in respect of the taxable
income for the reporting year.

(b) Deferred tax represents the effect of timing differences between taxable income and accounting
income for the reporting year that originate in one year and are capable of reversal in one or more
subsequent years. Deferred tax assets are recognized only to the extent there is reasonable
certainty of realization in future. Such assets are reviewed as at each Balance Sheet date to
reassess realization.

12 Provisions and contingencies

Provisions are recognised when the company has a legal and constructive present obligation as a result of a
past event, for which it is probable that outflow of resources will be required and a reliable estimate can be
made of the amount of the obligation. Contingent liabilities are disclosed when there is a possible
obligation that may result in an outflow of resources. Contingent assets are neither recognised nor
disclosed.

II NOTES ON ACCOUNTS

1. AS 4 -Events occurring after the balance sheet date, not requiring adjustments to financial statement

The company was subject to a search under Section 132 of The Income Tax Act, 1961 in the month of
April 2010. The Income Tax Department is in the process of assessing the final amount of tax payable by
the Company, if any, and has not raised any demand on the company till date. Consequently, no impact for
the same has been given in the financial statements for the F.Y. 2009-10.

225
2. AS 7 - Accounting for Construction Contracts

(a) Revenue from fixed price construction contracts are recognized on the percentage of completion
method, measured by reference to the percentage of cost incurred up to the year end to estimated
total cost for each contract.
(Rs. in Millions)
Sr. Particulars For For
No. 2009-10 2008-09
(a) Total Contract revenue recognised during the year 9,945.43 6,223.02
(b) Particulars about contracts in progress at the end of the year
(i) Aggregate amount of cost incurred up to year end 17,848.95 7,989.61
(ii) Aggregate amount of profit / (Loss) Recognised 1,885.52 869.07
(iii) Advance Received 1,095.19 457.50
(iv) Retention Amount 444.95 207.14
(v) Gross Amount due from customers for contract work 2,657.42 347.12
(vi) Gross amount due to customers for contract work - -

Percentage completion method for income recognition on long term contracts involves technical
estimates by engineers/technical officials, of percentage of completion and costs to completion of
each project/contract on the basis of which profit/loss is allocated.

(b) The company has been awarded a contract for Commercial Development on a PPP basis by
Kalyan Dombivili Municipal corporation. The work is suspended due to a stay order from the
Bombay High Court. The company has incurred a cost of Rs. 146.51 Millions till date as upfront
fees paid to KDMC and others. The management is confident of resuming operations on this
project and hence, in the opinion of the management the amount is not impaired. Consequently, no
provision for the same has been made in the accounts.

3. The Company has entered into a derivative transaction as under:

Details of Derivative Date of Amount Profit on Mark to Market as at

Contract Termination (Rs. in 31.03.2010
Millions) (Rs. in Millions)
INR US Interest Rate SWAP January 28, 2013 1,000.00 5.84
INR US Currency Rate SWAP June 08, 2011 11.20 0.10

In accordance with the accounting policy of the Company, Profit on Mark to Market aggregating to Rs.5.93
Millions has not been recongnised. However, loss on account of Mark to Market of the derivative
transaction aggregating to Rs.12.68 Millions has been reversed during the year, which is accounted under
the head 'Financial Charges'

4. Employee Stock Options

The Board of Directors of the company has approved creation of an Employee Stock Option on December
13, 2007. The company has granted stock options for 7,80,050 shares on December 15, 2007 at an exercise
price of Rs. 190 per share. Options granted will be vested over a period of five years, first such vesting
shall occur after the date of listing of shares on a recognized stock exchange. The details of the stock option
plan are as under:

As at 31-Mar-2010 As at 31-Mar-2009
No of Exercise No. of Exercise
options Price (Rs.) options Price (Rs.)
Outstanding at the beginning of the year
Loyalty Option 218,740 190 218,740 190

226
 As at 31-Mar-2010 As at 31-Mar-2009
No of Exercise No. of Exercise
options Price (Rs.) options Price (Rs.)
Growth Option 561,310 190 561,310 190
Granted during the year
Loyalty Option - - - -
Growth Option - - - -
Forfeited during the year
Loyalty Option 22,270 - - -
Growth Option 96,950 - - -
Exercise during the year
Loyalty Option - - - -
Growth Option - - - -
Outstanding at the end of the year
Loyalty Option 196,470 190 218,740 190
Growth Option 464,360 190 561,310 190
Exercisable at the end of the year
Loyalty Option - - - -
Growth Option - - - -

Guidance Note on ‘Accounting for employee share based payments’ issued by the Institute of Chartered
Accountants of India establishes financial accounting and reporting principles for employee share based
payment plans.

The Company has applied Intrinsic Value Method of Accounting. The difference between the Fair Value of
the Equity Share as at March 31, 2008 (as determined by the Category I Merchant banker) and the exercise
price is Rs. Nil. Accordingly no Compensation Cost needs to be amortised over the vesting period.

Had the Compensation Cost for the plan applied in a manner consistent with the fair value approach
described in the guidance note, the Company’s Net Income and Basic and Diluted Earnings Per Share as
reported would have reduced to the pro forma amounts as under:

(Rs. in Millions)
For For
2009-10 2008-09
Net Profit as reported 756.92 478.02
Less: Stock based employee Compensation 5.86 9.20
Adjusted Proforma 751.06 468.82
Basic Earnings Per Share as reported ( in Rs. ) 16.57 10.46
Proforma Basic Earnings Per Share ( in Rs. ) 16.44 10.26
Basic Diluted Per Share as reported ( in Rs. ) 16.33 10.29
Proforma Diluted Earnings Per Share ( in Rs. ) 16.20 10.09

For 2009-10 For 2008-09

Loyalty Growth Loyalty Growth
Option Option Option Option
Outstanding at the beginning of the Year
Dividend Yield - - - -
Weighted Average Dividend Yield - - - -
Expected Life 2.50–6.51 2.50–6.51 2.50–6.51 2.50–6.51
Risk Free Interest Rates 7.76%-7.84% 7.76%-7.84% 7.76%-7.84% 7.76%-7.84%
Volatility - - - -

227
 For 2009-10 For 2008-09
Loyalty Growth Loyalty Growth
Option Option Option Option
Weighted Average Volatility - - - -

5. Employee Benefit-Gratuity & Leave Encashment

a) Contribution to Provident Fund is charged to accounts on accrual basis. The Company operates a
defined contribution scheme with recognized provident fund. For this Scheme, contributions are
made by the company, based on current salaries, to recognized Fund maintained by the company.
In case of Provident Fund scheme, contributions are also made by the employees. An amount of
Rs.6.97 Millions (Previous Year Rs.5.69 Millions) has been charged to the Profit & Loss Account
on account of this defined contribution scheme.

b) The Gratuity benefit is funded through a defined benefit plan. For this purpose the Company has
obtained a qualifying insurance policy from Life Insurance Corporation of India.

c) The Company provides benefits to its employees under the Leave Encashment pay plan which is a
non-contributory defined benefit plan. The employees of the Company are entitled to receive
certain benefits in lieu of the annual leave not availed of during service, at the time of leaving the
services of the Company. The benefits payable are expressed by means of formulae which takes
into account the Salary and the leave balance to the credit of the employees on the date of exit.

d) Details Gratuity and Leave Encashment disclosure as required by AS-15 (Revised) are detailed
hereunder:
(Rs. in Millions)
As at 31-Mar-2010 As at 31-Mar-2009
Gratuity Leave Gratuity Leave
Encashment Encashment
Present Value of Obligation as at the 11.32 4.82 10.01 4.91
beginning of the year
Interest Cost 0.91 0.39 0.80 0.39
Current Service Cost 4.24 2.85 2.33 1.97
Benefits paid 0.34 0.42 0.31 0.58
Actuarial (Gain) / Loss (0.31) (0.51) 1.50 1.87
Present Value of Obligations as at 15.83 7.13 11.32 4.82
end of year
Fair Value of Plan Assets at 13.68 - 12.79 -
beginning of the year
Expected Return on Plan Asset 1.35 - 1.18 -
Contributions 3.67 - 0.03 -
Benefits paid 0.34 - 0.31 -
Fair Value of Plan Assets at end of 18.36 - 13.68 -
year
Funded / (Unfunded) Status 2.53 - 2.36 -
Actual Gain / (Loss) for the year- 0.31 0.51 (1.50) (1.87)
Obligation
Actual Gain / (Loss) for the year- - - - -
Plan Assets
Total (Gain) / Loss for the year (0.31) (0.51) 1.50 1.87
Amount to be recognised in the

228
 As at 31-Mar-2010 As at 31-Mar-2009
Gratuity Leave Gratuity Leave
Encashment Encashment
Balance Sheet
Present Value of Obligations as at 15.83 7.12 11.32 4.82
the end of the year
Fair Value of Plan Assets as at the 18.36 - 13.68 -
end of the year
Funded/(Unfunded) Status 2.53 (7.12) 2.36 (4.82)
Net Asset/(liability) recognised in the 2.53 (7.12) 2.36 (4.82)
balance sheet
Expenses recognised in the Profit &
Loss Account
Current Service Cost 4.24 2.85 2.33 1.97
Interest Cost 0.91 0.39 0.80 0.39
Expected Return on Plan Assets 1.35 - 1.18 -
Net Actuarial (Gain) / Loss (0.31) (0.51) (1.50) (1.87)
recognised in the year
Expenses recognised in the Profit & 3.50 2.72 0.45 0.49
Loss Account
Financial Assumptions as the
Valuation Date
Discount Rate (p.a.) 8.00% 8.00% 8.00% 8.00%
Salary Escalation (p.a.) 7.00% 7.00% 7.00% 4.00%
Withdrawal Rate (p.a.) 1.00% 1.00% N.A. 1.00%
Expected Rate of Return (p.a.) 9.83% N.A. - N.A.

6. AS 16 – Borrowing Cost

Interest Cost capitalized to Fixed Assets during the year ended 31.03.2010 Rs. Nil
(P.Y. Rs.5.84 Millions).

7. AS – 17 – Segment Reporting

The Company has identified three reportable segments i.e. Construction & Contract related activities, BOT
Projects and Sales of Goods. Segments have been identified taking in to account the nature of activities of
the Company, differing risks and returns and internal reporting systems.
(Rs. in Millions)
Particulars Construction BOT Sales of Inter- Total
& Contract Goods segment
Related Revenue
Activity
Revenue 9,945.43 447.54 769.50 - 11,162.47
(6,223.08) (387.82) (813.76) ((-)1.98) (7,422.68)
Segment Results 1,102.24 164.42 81.03 - 1,347.69
(534.35) (85.32) (40.63) - (660.30)
Add: Unallocated Income 202.47
(137.42)
Less: Unallocated Expenditure 558.56
(229.13)
Profit Before Tax 991.61

229
 Particulars Construction BOT Sales of Inter- Total
& Contract Goods segment
Related Revenue
Activity
(568.59)
Less: Provision for:
Current Tax 223.02
(85.02)
Deferred Tax 11.67
(5.55)
Add: Last Year Tax -
(-)
Net Profit After Tax 756.92
(478.02)
Segment Assets 4,088.76 1,598.32 180.71 - 5,867.79
(2,417.30) (1,707.53) (264.22) - (4,389.05)
Corporate and other 5,433.35
unallocable assets (4,054.54)
Segment Liabilities 3,479.67 1,133.30 60.45 - 4,673.42
(1,260.58) (1,279.85) (87.94) - (2,628.37)
Corporate and other 2,578.42
unallocable Liabilities (2,506.47)
Capital Expenditure during 96.77 19.37 41.17 - 157.31
the Year on Segment Assets (318.25) (127.13) (19.93) - (465.30)
Unallocable Capital 67.86
Expenditure during the Year (8.45)
Depreciation Segment 118.45 215.22 22.15 - 355.82
(85.11) (218.25) (27.67) - (331.03)
Note: Figures in brackets denote figures of previous year.

Note:
1 Construction & Contracting Activity comprises execution of engineering and construction projects to
provide solutions in civil and electrical engineering (on turnkey basis or otherwise) to core /
infrastructure sectors.
2 BOT Activity relates to execution of the projects on long term basis comprising developing, operating
and maintaining the Infrastructure facility.
3 Sale of Goods comprises the activity of selling of Ready Mix Concrete (RMC) and Bitumen.

8. AS – 18 Related Party Transactions

I List of Related Parties

(a) Parties where control exists (d) Enterprises in which Key Management
Personnel / Directors have significant influence

(i)Ashoka-DSC Katni Bypass Road P. Ltd. (i)Ashoka Buildwell & Developers P. Ltd. (ii)Ashoka
Highways (Bhandara) Ltd. (ii)Ashoka Builders (Nasik) P. Ltd.
(iii)Ashoka Highways (Durg)Ltd. (iii)Jaora Nayagaon Toll Road Co. P.Ltd.
(iv)Ashoka Infrastructure Ltd. (iv)Ashoka Engineering Co.
(v)Ashoka Infraways P. Ltd. (v)Ashoka Vastuvaibhav
(vi)Viva Highways P. Ltd. (vi)Ashoka E-Tech
(vii)Ashoka Precon P. Ltd. (vii)Shweta Agro Farm

230
(viii)Ashoka Technologies P. Ltd. (viii)Ashoka Construwell P. Ltd.
(ix)Ashoka High-Way Ad. (ix)Ashoka Education Foundation
(x)Ashoka Infrastructures

(b) Key Management Personnel (e) Associates & Joint Ventures

(i) Ashok M. Katariya (i) Ashoka Bridgeways

(ii) Satish D. Parakh (ii) Ashoka Highway AD.
(iii) Sunil B. Raisoni (iii) Ashoka Infrastructures
(iv)Ashoka Valecha JV
(v) Jayaswals Ashoka Infrastructures Pvt. Ltd.
(vi) Viva Infrastructure Pvt. Ltd.
(vii) PNG Tollways Pvt. Ltd.

(c) Directors and their relatives

(i) Asha A. Katariya

(ii) Ashish A. Katariya
(iii) Astha A. Katariya
(iv) S D Parakh HUF
(v) Shubham Agencies

II Transactions during the year

(Rs. in Millions)
Sr. Nature of Parties Associates Key Directors’ Enterprises
No. Transactions where and Joint Management Relatives in which
Control Ventures Personnel Key
Exists Managemen
t Or
Directors
have
significant
influence
(a) Contract
Receipts:
i Ashoka 2,490.65
Highways (1,359.24)
(Bhandara) Ltd.
ii Ashoka 1,950.67
Highways (Durg) (2,276.20)
Ltd.
iii Ashoka - 102.38
Valecha (JV) (276.45)
iv PNG Tollway 47.91
Pvt. Ltd. (-)
v Jaora Nayagaon 1,665.64
Toll Road Co. P (2,337.01)
Ltd.
vi Ashoka -
Education (0.77)
Foundation
(b) Sale of Goods /
Rendering of
Service:
i Viva Highways 3.47

231
Sr. Nature of Parties Associates Key Directors’ Enterprises
No. Transactions where and Joint Management Relatives in which
Control Ventures Personnel Key
Exists Managemen
t Or
Directors
have
significant
influence
Pvt. Ltd. (2.96)
ii Ashoka 1.33
Infraways Pvt. (-)
Ltd.
iii Ashoka 1.03
Bridgeways (-)
iv Ashoka 0.29
Education (-)
Foundation
v Ashoka E Tech -
(0.10)
(c) Interest
Received:
i Ashoka Precon 2.57
Pvt. Ltd. (-)
ii Ashoka -
Infraways Pvt. (2.44)
Ltd.
(d) Rent Received:
i Ashoka 0.26
Education - - - - (0.26)
Foundation
(e) Sub Contract
Expenses:
i Ashoka Vastu -
Vaibhav - - - - (1.07)
(f) Purchase of
Goods/availing
of services:
i Ashoka 2.16
Highway AD (-)
ii Shubham -
Agencies - - - - (35.46)
(g) Sale of Shares:
i Viva Highways 117.47
Pvt. Ltd (-) - - - -
(h) Purchase of
Shares:
i Viva Highways 18.57
Pvt. Ltd (280.00) - - - -
(i) Salary Paid:
i Ashok M. 8.26
Katariya (6.29)

ii Satish D. 8.26
Parakh (6.29)

232
Sr. Nature of Parties Associates Key Directors’ Enterprises
No. Transactions where and Joint Management Relatives in which
Control Ventures Personnel Key
Exists Managemen
t Or
Directors
have
significant
influence
iii Sunil. B. 2.49
Raisoni (-)
iv Astha A. 0.54
Katariya (0.60)

v Aditya Parakh 0.06

(-)
(j) Rent Paid:
i Satish D. Parakh 1.18
(0.88)

ii Satish D. 0.57
Parakh-HUF (0.43)

iii Asha A. 1.18

Katariya (0.88)

iv Ashish A. 0.77
Katariya (0.43)

v Astha A. 0.13
Katariya (0.10)

vi Shweta A. 0.12
Katariya (-)

vii Ashoka 0.40

Education (-)
Foundation
(k) Interest Paid:
i Ashoka 2.46
Highway AD (3.11)

ii Ashoka 49.48
Infraways Pvt. (17.44)
Ltd.
iii Ashoka DSC 3.38
Katni Bypass (13.84)
Road Pvt.
iv Viva 39.77
Highways Pvt. (40.12)
Ltd.
Jayaswals 20.03
Ashoka (21.02)
Infrastructure
Pvt. Ltd

233
Sr. Nature of Parties Associates Key Directors’ Enterprises
No. Transactions where and Joint Management Relatives in which
Control Ventures Personnel Key
Exists Managemen
t Or
Directors
have
significant
influence
(l) Investment in
Capital:
i Ashoka -
Highways (10.40)
(Bhandara) Ltd
ii Ashoka -
Highways (Durg) (10.01)
Ltd
iii Ashoka Precon 14.61
Pvt. Ltd. (0.05)

iv Ashoka -
Technologies Pvt. (0.10)
Ltd.
v PNG Tollway 219.80
Pvt. Ltd. (-)

(m) Share
Application
Money:
i Ashoka -
Highways (207.31)
(Bhandara) Ltd
ii Ashoka -
Highways (Durg) (235.81)
Ltd
(n) Loans Taken:
i Ashoka -
Infraways Pvt. (370.68)
Ltd.
(o) Loans /
Advances
Given:
i Ashoka 1,036.62
Highways (378.23)
(Bhandara) Ltd
ii Ashoka 79.25
Highways (Durg) (429.05)
Ltd
iii Ashoka 19.13
Infrastructure (6.97)
Ltd.
iv Ashoka Precon 33.96
Pvt. Ltd. (14.61)

v Ashoka 0.79

234
Sr. Nature of Parties Associates Key Directors’ Enterprises
No. Transactions where and Joint Management Relatives in which
Control Ventures Personnel Key
Exists Managemen
t Or
Directors
have
significant
influence
Technologies Pvt. (-)
Ltd.
vi Viva 58.05
Infrastructures (315.07)
Pvt. Ltd.
vii Ashoka 2.50
Construwell Pvt. (-)
Ltd.
viii Satish D. -
Parakh (1.10)

ix Satish D. -
Parakh-HUF (0.50)

x Asha A. -
Katariya (1.10)

xi Ashish A. -
Katariya (0.65)

xii Astha A. -
Katariya (0.10)

Outstanding payable against :

(p) Purchase of
goods/availing of
services:
i Ashok M. 0.45
Katariya (0.09)

ii Satish D. 0.31
Parakh (0.01)

iii Sunil. B. 0.20

Raisoni -
iv Astha A. 0.02
Katariya (0.05)

v Aditya Parakh 0.01

-

vi Satish D. -
Parakh-HUF (0.01)

vii Asha A. -
Katariya (0.08)

235
Sr. Nature of Parties Associates Key Directors’ Enterprises
No. Transactions where and Joint Management Relatives in which
Control Ventures Personnel Key
Exists Managemen
t Or
Directors
have
significant
influence

viii Ashish A. -
Katariya (0.05)

ix Viva -
Highways Pvt. (127.21)
Ltd.
(q) Advance
Received against
Contract / Sale
of Goods /
rendering of
services:
i Ashoka 10.43
Highways (407.15)
(Bhandara) Ltd
ii Ashoka 101.90
Highways (Durg)
Ltd
iii Ashoka -
Valecha JV (12.53)

iv PNG Tollway 580.54

Pvt. Ltd. (-)

(r) Loan Taken:

i Ashoka 15.12
Highway AD (20.78)

ii Ashoka 415.16
Infraways Pvt. (373.77)
Ltd.
iii Viva 347.77
Highways Pvt. (376.76)
Ltd.
iv Ashoka DSC 23.53
Katni Bypass (27.86)
Road Pvt. Ltd
v Jayaswals 194.50
Ashoka (177.72)
Infrastructure
Pvt. Ltd
Outstanding payable against :
(s) Sale of
Goods/rendering
of services:

236
Sr. Nature of Parties Associates Key Directors’ Enterprises
No. Transactions where and Joint Management Relatives in which
Control Ventures Personnel Key
Exists Managemen
t Or
Directors
have
significant
influence
i Ashoka 1.98
Infrastructure (0.02)
Ltd.
ii Ashoka - 7.45
Valecha (JV) (-)

iii Ashoka 0.06

Education (1.14)
Foundation
iv Ashoka -
Highways (7.16)
(Bhandara) Ltd
v Ashoka -
Highways (Durg) (398.77)
Ltd
vi Ashoka -
Infraways Pvt. (1.15)
Ltd.
vii Ashoka -
Technologies Pvt. (0.03)
Ltd.
viii Jaora 266.10
Nayagaon Toll (92.94)
Road Co. P Ltd.
(t) Loans /
Advances given:
i Ashoka 1,099.62
Highways (378.23)
(Bhandara) Ltd
ii Ashoka 202.43
Highways (Durg) (429.05)
Ltd
iii Ashoka 2.14
Infrastructure (22.90)
Ltd.
iv Ashoka 0.79
Technologies Pvt. (14.61)
Ltd.
v Viva 322.86
Infrastructures (356.99)
Pvt. Ltd.
vi Ashoka 2.92
Construwell Pvt. (-)
Ltd.
vii Satish D. 1.10
Parakh (1.10)

237
 Sr. Nature of Parties Associates Key Directors’ Enterprises
No. Transactions where and Joint Management Relatives in which
Control Ventures Personnel Key
Exists Managemen
t Or
Directors
have
significant
influence

viii Satish D. 0.50

Parakh-HUF (0.50)

ix Asha A. 1.10
Katariya (1.10)

x Ashish A. 0.65
Katariya (0.65)

xi Astha A. 0.10
Katariya (0.10)

xii Ashoka -
Builders (Nasik) (0.15)
Private Limited
xiii -
Shubham (3.52)
Agencies

Note: Figures in brackets denote figures of previous year.

9. AS - 19 – Accounting for Operating Leases

The Company has various operating leases for equipments and premises, the leases are renewable on
periodic basis and cancellable in nature.

10. AS – 20 Earning per Share

For For
2009-10 2008-09
Profit attributable to Equity Shareholders (In Millions) 756.92 478.02
No of Weighted Average Equity Shares outstanding during the 45,691,702 45,691,702
year(Basic)
No of Weighted Average Equity Shares outstanding during the 46,352,532 46,471,752
year (Diluted)
Nominal Value of Equity Shares (in Rs.) 10 10
Basic Earnings per Share (in Rs.) (Basic) 16.57 10.46
Basic Earnings per Share (in Rs.) (Diluted) 16.33 10.29

238
11. Deferred Tax- AS 22
(Rs. in Millions)
As at As at
31-Mar-10 31-Mar-09
Difference in WDV of Fixed Assets 32.49 24.34
Other Timing Differences (2.42) (5.95)
Deferred Tax Liability 30.07 18.39

The Company is claiming deduction u/s 80-IA of The Income Tax Act, 1961 for certain sites. Accordingly,
no provision for deferred tax assets/liabilities on timing differences originating and reversing during tax
holiday period has been made.

12. AS – 29 – Details of Provisions

(Rs. in Millions)
Sr. Balance at Provisions made Provision reversed / Balance as at
No. 01.04.2009 during the year adjusted during the 31.03.2010
year

(a) Taxation 155.81 223.02 36.57 342.25

(70.79) (85.02) - (155.81)
(b) Gratuity (2.36) 3.50 3.67 (2.53)
(-2.79) (0.43) (-2.36)
(c) Leave 4.82 2.72 0.42 7.12
Encashment (4.91) - (0.09) (4.82)
(d) Derivative 12.68 - 12.68 -
(32.25) - (19.57) (12.68)
(e) Provision for 12.91 12.35 - 25.26
Doubtful Debts (7.78) (5.13) - (12.91)
(Figures in brackets denote figures for previous year)

13. The Company has initiated steps to make an Initial Public Offering (IPO) of its Equity Shares. The Draft
Red Herring Prospectus (DRHP) is filed with the SEBI on September 22, 2009. Expenses incurred
amounting to Rs.6.37 Millions in connection with this issue is carried forward under ‘Other Current Assets’
and will be adjusted against the Share Premium to be received.

14. Details of Investments purchased and sold during the year

Sr. Particulars Purchased Sold

No. No. of Value No. of Value
Units Units (Rs. in Millions)
(Rs. in
Millions)
(a) NLPIG Canara Robeco 13,632,708 200.00 13,632,708 200.19
Treasury Advantage
Institutional Fund-Growth
(b) Templeton India Treasury 22,637 50.00 22,637 50.01
Management Account-
Regular Plan-Growth
(c) Templeton India Ultra Short 4,393,179 50.01 4,393,179 50.13
Bond Fund-Retail Plan-
Growth
(d) LICMF Floating Rate Fund- 15,129,034 225.00 6,863,041 100.02
Short Term Plan-Growth

239
 Sr. Particulars Purchased Sold
No. No. of Value No. of Value
Units Units (Rs. in Millions)
(Rs. in
Millions)
(e) LICMF Savings Plus Fund- 7,080,261 100.02 7,080,261 100.05
Growth
(f) Reliance liquid Fund- 2,294,873 50.00 2,294,873 50.01
Treasury Plan-Institutional
Option-Growth
(g) Reliance Money Manager 41,208 50.01 41,208 50.02
Fund-Institutional Option-
Growth
(h) Axis Liquid Fund-Retail 6,444 6.46 6,444 6.47
Growth
(i) Axis-Treasury Advantage 6,445 6.47 - -
Fund-Retail Growth
Note: There is no purchase and sale of investment during the previous year.

15. Amount paid or payable to Auditor as Fees

(Rs. in Millions)
Particulars For For
2009-10 2008-09
Audit Fees 0.97 0.88
Tax Audit 0.11 0.10
Other Services 2.84 1.13
Out of Pocket Expenses 0.12 -
Total 4.04 2.11

16. Foreign Exchange Earnings and Outflow

(Rs. in Millions)
Particulars For For
2009-10 2008-09
Expenditure in Foreign Currency:
Capital GoodsCapital Goods 50.58 43.89
Spare Parts of Machinery 1.50 -
Consultancy Fee 4.90 -
Foreign Travel Expenses 0.29 0.53

Earnings in Foreign Currency - -

17. Details of Capacity & Production, Sales, Raw Material Consumption and Purchase of Trading Goods

(a) Capacity and Production

Class of Goods Unit Licensed capacity Installed

capacity
Ready Mix Concrete Cu.Mtr. N.A. N.A.

240
(b) Production and Sales

Ready Mix Concrete Bitumen Others Total

Quantity Amount Quantity Amount Amount Amount
(Cu.Mtr.) (Rs. In (MT) (Rs. In (Rs. In (Rs. In
Millions) Millions) Millions) Millions)
Opening - - 148.670 3.22 - 3.22
Stock as at (-) (-) (41.090) (0.84) (-) (0.84)
1.4.2009
Production 206,372 - - - - -
during the (233,629) (-) (-) (-) (-) (-)
year
Purchase - - 4,216.035 100.83 - 100.83
during the (-) (-) (3,645.200) (95.50) (-) (95.50)
year
Sales during 206,372 669.09 4,263.129 96.11 4.31 769.50
the year (233,629) (673.23) (3,606.980) (105.78) (32.68) (811.68)
Closing - - 78.018 2.68 - 2.68
Stock as at (-) (-) (148.670) (3.22) (-) (3.22)
31.03.2010
Note: Figures in brackets denote figures of previous year.

(c) Materials Consumption

Particulars Unit For For

2009-10 2008-09
Quantity Amount Quantity Amount
(Rs. In (Rs. In
Millions) Millions)
Cement Bags 1,142,101 243.67 1,188,100 251.96
Bitumen MT 4,287 101.37 3,538 95.50
Fly Ash MT 16,112 21.58 16,245 18.95
Metal Cub. Mtr 139,766 74.08 186,661 82.67
Sand Cub. Mtr 99,350 89.58 122,799 92.98
Construction Kgs. 1,114,382 34.48 1,123,200 36.85
Chemicals
Others - 9.23 2.66
Total 573.99 581.57
Note: Bitumen Sales during the year includes 544.61 MT used for construction activity

(Rs. in Millions)
For For
2009-10 2008-09
Imported - -
Indigenous 573.99 581.57
Total 573.99 581.57

241
18. Contingent Liabilities
(Rs. in Millions)
Sr. Particulars As at As at
No. 31-Mar- 31-Mar-
10 09
(a) Bank Guarantees and Letters of Credit issued by bankers in favour of 3,525.32 2,269.77
third parties
(b) Corporate Guarantee issued by the Company in favour of Banks/ 12,396.57 12,151.46
Financial Institutions for finance raised by Companies under the same
management
(c) Claims against the Company not acknowledged as debts 0.67 0.67
(d) Liability against capital commitments outstanding (net of advances) 2.19 3.10
(e) Liability of Duty against Export Obligations 3.92 -
(f) Disputed Duties / Tax Demands (net of taxes paid) 64.56 20.83

19. Sundry Debtors include

(Rs. in Millions)
Sr. No. Particulars As at As at
31-Mar-10 31-Mar-09
Due from companies under the same management
(a) Ashoka Education Foundation 0.06 -
(b) Ashoka Highways (Durg) Limited - 387.48
(c) Ashoka Valecha JV 7.45 -
(d) Jaora-Nayagaon Toll Road Co. Pvt. Ltd. 266.10 92.94
(e) Viva Highways Pvt. Ltd. 3.53 -
(f) Ashoka Infrastructure Ltd. 1.98 -

20. Loans & Advances include

(Rs. in Millions)
Sr. No. Particulars As at As at
31-Mar-10 31-Mar-09
(a) Due from companies under the same management
(i) Ashoka Builders (Nasik) Pvt. Ltd. - 0.15
(ii) Ashoka Construwell Pvt. Ltd. 2.92 -
(iii) Ashoka Highways (Bhandara) Ltd. 1,099.62 385.39
(iv) Ashoka Highways (Durg) Ltd. 202.43 440.34
(v) Ashoka Infrastructure Ltd. 2.14 22.92
(vi) Ashoka Infraways Pvt. Ltd. - 1.15
(vii) Ashoka Precon Pvt. Ltd. - 14.61
(viii) Ashoka Technologies Pvt. Ltd. 0.79 0.03
(ix) Viva Infrastructure Pvt. Ltd. 322.86 356.96

(b) Due from Firms in which Directors are interested

(i) Shubham Agencies - 3.52
(c) Due from Directors & their relatives (Deposit placed for leased premises)
(i) Satish D. Parakh 1.10 1.10
(ii) Satish D. Parakh HUF 0.50 0.50
(iii) Asha A. Katariya 1.10 1.10

242
 Sr. No. Particulars As at As at
31-Mar-10 31-Mar-09
(iv) Ashish A. Katariya 0.65 0.65
(v) Astha A. Katariya 0.10 0.10

21. Term Deposits are pledged /lying with

(Rs. in Millions)
As at As at
31-Mar-10 31-Mar-09
(a) With Banks against Bank Guarantees / Overdrafts / Letter of 212.75 274.31
Credits / Others
(b) With Government Dept./ Security Deposits 14.63 29.44
(c) With Sales Tax Authorities 0.08 0.07

22. Directors' Remuneration

(Rs. in Millions)
Particulars For For
2009-10 2008-09
Salary 17.94 11.91
Reimbursements 0.19 -
Company's Contribution to PF 0.88 0.67
Total 19.01 12.58

23. The Company is undertaking following projects on Build Operate & Transfer (BOT) basis viz Under
Toll Collection

Sr. Name of the Project Concession Period

(a) Nagar – Karmala Road Project 24 August 1999 to 4th November 2015
th

(b) Sherinallah – Bridge 24th October 2000 to 22nd June 2015

(c) Nashirabad Railway Over Bridge 24th July 2000 to 3rd November 2010
(d) Nagar Aurangabad Road Project 18th December 2006 to 18 September 2017

24. (a) The Company has entered into Joint Venture in the nature of Jointly Controlled Operations,
wherein there is no capital contribution with Valecha Engineering Ltd for execution of the
construction of Chittorgarh Bypass, the work is to be executed separately as per agreed terms and
conditions and the obligations and fortunes of the respective works is being accounted individually
of the Venturers.

(b) The Company has also entered into a Joint Venture with Ashoka Buildwell & Developers Pvt. Ltd.
by the name of Ashoka Infrastructures, to implement the Dhule Project on BOT basis with a
sharing of 99.99% and 0.01% in favour of the company and Ashoka Buildwell & Developers Pvt.
Ltd. respectively. Proportionate interest of the company in the said Joint venture is as under:

(Rs. in Millions)
Balance Sheet As at As at
31-Mar-10 31-Mar-09
Capital 2.32 73.16
Unsecured Loans - -
Fixed Assets (Net) 0.31 0.38
Investments 0.00 60.00

243
 Balance Sheet As at As at
31-Mar-10 31-Mar-09
Cash and Bank Balances 0.49 0.42
Loans and advances 2.51 12.70
Current Liabilities 0.98 0.34
Income 61.35 48.57
Expenses 3.51 1.77
Depreciation 0.07 0.10

25. Details of Investments in Partnership Firms

(Rs. in Millions)
Name of Partnership & Partners Share in Profit / Loss Capital
As at As at
31-Mar-10 31-Mar-10
(a) Ashoka Highway Ad.
(i) Ashoka Buildcon Ltd. 99.99% 24.12 24.08
(ii) Ashoka Builders (Nasik) Pvt. 0.01% 0.18 0.18
Ltd.
(b) Ashoka Bridgeways
(i) Ashoka Buildcon Ltd. 5.00% 31.13 13.48
(ii) Ashoka Builders (Nasik) Pvt. 95.00% 6.28 20.38
Ltd.

26. Suppliers/Service providers covered under Micro, Small Medium Enterprises Development Act, 2006 have
not furnished the information regarding filing of necessary memorandum with the appropriate authority. In
view of this, information required to be disclosed u/s 22 of the said Act is not given.

27. Out of the Investments of the Company following investments are pledged with the Financial Institutions
/Banks for security against the financial assistance extended to the companies under the same
management:

(a) Equity Shares of Rs.10 each of:

(i) 4,000,000 Jayaswals Ashoka Infrastructure Pvt. Ltd.
(ii) 7,257,864 Viva Highways Pvt. Ltd.
(iii) 49,000 Viva Infrastructures Pvt. Ltd.
(iv) 295,500 Ashoka Infraways Pvt. Ltd.
(v) 19,750,000 Ashoka Infrastructure Ltd.
(vi) 1,530,000 Ashoka DSC Katni Bypass Road Pvt. Ltd.
(vi) 13,317,658 Ashoka Highways (Bhandara) Ltd.
(vii) 15,154,734 Ashoka Highways (Durg) Ltd.

(b) Preference Shares of:

(i) 953,750 Viva Infrastructure Pvt. Ltd. of Rs.100 each
(ii) 4,351,400 Ashoka Infrastructures Ltd. of rs.10 each

28. The Status of 0% Redeemable Non-Cumulative and Non-convertible Preference Shares by Company
is as follows:

Sr. No. of Shares Premium at Redemption Redemption Month

No. Redemption Period
(a) 225000 175% 10th Year October, 2010
(b) 273500 150% 12th Year September, 2011

244
 Sr. No. of Shares Premium at Redemption Redemption Month
No. Redemption Period
(c) 488350 150% 12th Year December, 2011
(d) th
257000 150% 12 Year October, 2012

The Company has created a redemption reserve by utilizing the share premium account.

29. The company has registered under Employees Provident Fund Act for employees of the company as well as
employees of certain group companies.

30. Balance of Debtors, Creditors, Advances, Deposits, etc. are subject to confirmation and reconciliation if
any.

31 Previous Year figures have been regrouped/ rearranged wherever necessary, to make them comparable with
current year figures.

245
ANNEXURE VI

STATEMENT OF SECURED LOANS, AS RESTATED

(All figures in Rupee Millions)

Particulars As At
March March March March March
31, 2010 31, 2009 31, 2008 31, 2007 31, 2006
From Banks
ABN Amro Bank N.V. 16.55 31.25 27.40 52.63 35.25
Axis Bank Ltd 1.35 - - - -
Bank of Maharashtra 3.65 3.46 3.03 0.91 2.59
Bank of Baroda 0.81 - - - -
Centurion Bank of Punjab Ltd. 2.10 5.02 8.13 11.82 5.40
DCB-Eicher Bus 2 Nos. 0.81 1.38 - - -
HDFC Bank Ltd. 97.01 23.03 - 0.17 1.47
ICICI Bank Limited 21.83 78.98 158.81 218.25 114.60
Kotak Mahindra Bank Ltd. 36.37 12.38 18.54 24.12 -
Ratanakar Bank - - - - 0.59
Standard Chartered Bank 79.87 132.44 107.44 81.30 0.94
Axis (UTI) Bank Ltd. - - 43.23 84.16 119.70
(Term loans from banks are secured
against the hypothecation of the
respective fixed assets)

From Financial Institutions

Cholamandalam DBS Finance Ltd. - 0.14 0.93 1.97 1.81
Citicorp Finance (I) Ltd. - - 0.78 2.30 4.00
Kotak Mahindra Prime Ltd 8.02 - - - -
L & T Finance Ltd. - 0.24 1.60 2.89 4.09
Reliance Capital Ltd. 26.79 36.58 - - -
Srei Infrastructure Finance Ltd. 91.49 0.47 4.92 10.61 39.47
TATA Finance Ltd. - - 2.81 6.41 9.79
TATA Capital Ltd. 0.37 - - - -
TATA Motors Finance Ltd. 0.33 - - - -
IDFC Ltd. 1,106.15 1,212.82 1,125.00 684.42 736.68
HDFC Ltd. 2.06 - 12.68 17.26 21.63
(Term loans from Financial Institutions
are secured against the future toll
collection, pledge of the 1,559,150 Equity
shares of directors & related concerns and
Current assets pertaining to the respective
projects)

(Term loans from Financial Institutions

are secured against the hypothecation of
the respective fixed assets)

Cash Credit / Bill Discounting

Axis Bank Ltd. - CC - 83.99 126.80 0.13 20.80
Bank of India - CC - 121.98 115.00 2.33 1.64

246
 Particulars As At
March March March March March
31, 2010 31, 2009 31, 2008 31, 2007 31, 2006
Bank of Maharashtra - CC 7.77 66.45 94.40 - -
Canara Bank - 96.52 - - -
Corporation Bank - CC - 50.38 37.07 0.12 -
Federal Bank - CC - 20.95 50.03 23.61 -
Indian Bank - CC - 58.00 89.18 0.02 -
State Bank of India - CC - 182.40 115.44 - -
Union Bank of India - CA - - - (0.01) -
Corporation Bank - DL 0.28 - 24.08 - -
State Bank of India - STL 151.02 - - - -
(Secured against the Stock, Books debts
and current assets)

Overdraft Against Deposit

Canara Bank – OD 14.30 58.92 27.40 79.35 102.04
Bank of Maharashtra - OD - - 41.92 224.77 -
State Bank of India - OD - - 50.42 196.46 -
Axis Bank Ltd. - Pune - 0.23 - - -
(Secured against the pledge of Deposits)

TOTAL 1,668.93 2,277.99 2,287.04 1,726.03 1,222.48

247
ANNEXURE VII

STATEMENT OF UNSECURED LOANS, AS RESTATED

(All figures in Rupee Millions)

Particulars As At
March March March March March
31, 2010 31, 2009 31, 2008 31, 2007 31, 2006

From Subsidiaries / Associates / JV:-

*Viva Highways Pvt. Ltd. 307.32 376.76 432.98 589.73 648.06
( Rate of Interest - 11.50% )
*Viva Highways Pvt. Ltd. 43.99 - - - -
( Rate of Interest - 0% )
*Ashoka High-Way Ad 15.12 20.78 26.43 32.08 37.73
( Rate of Interest - 13.75% )
Viva Infrastructure - - - 0.24 0.51
*Jayaswals Ashoka Infrastructure Pvt. Ltd. 194.50 177.72 202.17 190.06 200.40
( Rate of Interest - 10.91% )
*Ashoka DSC Katni Pvt. Ltd. 23.53 27.86 143.02 - -
( Rate of Interest - 14% )
*Ashoka Infraways Pvt. Ltd. 415.16 373.77 - - -
( Rate of Interest - 12.50% )

From Others:-
Rajdeep Publicity Pvt. Ltd. - - - - 0.79

From Bank :-
*Yes Bank 100.00 - - - -
( Rate of Interest - 11.00% )

From Financial Institutions :-

*IDFC 500.00 - - - -
( Rate of Interest - 6.25% )

TOTAL 1,599.62 976.88 804.60 812.11 887.49

Note: * As per information and explanation given by the company, unsecured loans have been taken at floating rate
of interest and are payable on demand. Rate of interest indicated here are as of March 31, 2010.

248
ANNEXURE VIII

STATEMENT OF LOANS & ADVANCES, AS RESTATED

(All figures in Rupee Millions)

Particulars As At
March March March March March
31, 2010 31, 2009 31, 2008 31, 2007 31, 2006

Advances and loans to Subsidiaries 1,311.08 863.65 143.74 188.67 53.17

Advances and loans to Partnerships Firms / JVs - - - 0.56 200.42
under same Management
Advances and loans to Companies under same 325.78 359.02 21.34 30.12 25.49
Management
Advances Recoverable in cash or kind or for 721.28 783.19 184.01 202.66 131.62
value to be received
Interest Receivable 4.05 - - - -
Deposits 29.78 59.42 214.65 124.44 131.54
Advance Income Tax / Tax Deducted at Source 425.02 210.70 120.96 83.16 22.93

TOTAL 2,816.99 2,275.97 684.72 629.61 565.18

249
ANNEXURE IX

STATEMENT OF SUNDRY DEBTORS, AS RESTATED

(All figures in Rupee Millions)

Particulars As At
March March March March March
31, 2010 31, 2009 31, 2008 31, 2007 31, 2006

Outstanding for period exceeding Six Months 332.31 91.47 171.49 71.16 106.80
Other Debtors 1,447.54 649.23 491.05 221.65 370.63
Less: Provision for doubtful debts 25.26 12.91 7.78 2.38 -

TOTAL (Balance considered good) 1,754.59 727.80 654.76 290.42 477.43

250
ANNEXURE X

STATEMENT OF INVESTMENTS, AS RESTATED

(All figures in Rupee Millions)

Particulars Percentage to total As At
Investments of March March March March March March
31, 2010 31, 2010 31, 2009 31, 2008 31, 2007 31,
2006

Non-Trade (unquoted at Cost)

a) National Saving Certificates 0.00% 0.03 0.23 0.19 0.19 0.19

b) Fully paid shares of Co- 0.03% 0.76 0.76 0.76 0.76 0.76
operative Banks / Societies

c) Equity Shares of Rs. 10/-

each fully paid in subsidiary
Viva Highways Private Limited 16.60% 358.43 358.43 358.43 358.43 66.31
Ashoka Infrastructures Limited 10.21% 220.60 220.60 220.60 220.60 59.95
Ashoka DSC Katni By Pass 1.39% 29.97 29.97 29.97 29.97 0.05
Road Pvt. Ltd.
Ashoka Infraways Private 2.30% 49.60 49.60 49.60 49.60 32.56
Limited
Ashoka Highways 6.17% 133.18 140.84 0.45 - -
(Bhandara)Ltd
Ashoka Highway (Durg) Ltd. 7.02% 151.55 160.45 0.45 - -
Ashoka Precon Pvt. Ltd. 0.68% 14.66 0.05 - - -
Ashoka Technologies Pvt. Ltd. 0.00% 0.10 0.10 - - -

d) Preference Shares fully

paid in
subsidiary
12% Preference Share of Rs. 10.07% 217.57 217.57 217.57 217.57 215.12
10/- each of Ashoka
Infrastructure Ltd.
10% Preference Share of Rs. 0.00% - 71.63 71.63 71.63 12.79
100/- each of Ashoka Infraways
Pvt. Ltd.

e) Investment in Joint
Venture / Partnership Firms
Ashoka Infrastructures 0.11% 2.30 73.14 98.32 59.17 116.44
Ashoka Highway Ad. 1.12% 24.12 24.08 23.09 22.01 20.42
Ashoka Bridgeways 1.44% 31.13 13.51 8.22 2.39 -

f) Equity Shares of Rs. 10/-

each fully paid in Associates
Jayaswal Ashoka Infrastructure 6.32% 136.54 136.54 136.54 136.54 135.60
Pvt. Ltd.
Viva Infrastructure Pvt. Ltd. 4.82% 104.01 104.01 104.01 104.01 103.92
PNG Tollway Pvt. Ltd. 10.18% 219.83 0.03 - - -
(Erstwhile L&T PNG Tollway
Pvt. Ltd.)

251
 Particulars Percentage to total As At
Investments of March March March March March March
31, 2010 31, 2010 31, 2009 31, 2008 31, 2007 31,
2006

g) Preference Shares fully

paid in Associates
12% Preference Share of 15.46% 333.81 333.81 333.81 333.81 152.74
Rs.100/-each of Viva
Infrastructure Pvt. Ltd.

h) Subscription to
Memorandum of Association
Ashoka Highways (Bhandara) 0.00% - - - 0.45 -
Ltd.
Ashoka Highways (Durg) Ltd. 0.00% - - - 0.45 -
[Erstwhile Ashoka Marg
Nirman (Durg) Ltd.]

i) Short Term Investments

Axis Treasury Advantage Fund 0.30% 6.46 - - - -
– Retail Growth
LIC MF Floating Rate Fund- 5.79% 125.00 - - - -
Short Term Plant-Growth Plan

TOTAL 100.00% 2,159.64 1,935.33 1,653.62 1,607.57 916.84

252
ANNEXURE XI

STATEMENT OF CURRENT LIABILITIES AND PROVISIONS, AS RESTATED

(All figures in Rupee Millions)

Particulars As At
March March March March March
31, 2010 31, 2009 31, 2008 31, 2007 31, 2006

Sundry Creditors 2,283.79 1,069.15 546.20 228.85 286.62

Advances from Customers 852.40 414.59 154.75 96.38 53.47
Interest Accrued But Not Due 7.31 - - - -
Other Liabilities 802.08 373.02 77.42 234.86 35.31

Provisions
For Income Tax 332.50 146.20 63.70 36.20 15.50
For Fringe Benefit Tax 9.75 9.44 7.37 3.04 1.96
Provision for Unencashed Leave 7.12 4.82 4.91 5.54 2.29
TOTAL 4,294.95 2,017.22 854.35 604.87 395.16

253
ANNEXURE: XII

STATEMENT OF OTHER INCOME, AS RESTATED

(All figures in Rupee Millions)

Particulars Year Ended
March March March March March
31, 2010 31, 2009 31, 2008 31, 2007 31, 2006
Interest (Including TDS) 62.90 65.75 85.86 77.36 30.06
Miscellaneous Income 15.83 10.11 14.47 14.85 15.25
Claim / Rebate and Relief - - - 1.20 -
Profit on sale of Investment / Assets 46.23 - - - -
Profit from JV & Partnership Project 77.53 61.57 55.21 47.46 61.21
Hire charges of Machinery/Vehicle - - - 17.56 22.65
TOTAL 202.47 137.42 155.54 158.44 129.17

254
ANNEXURE XIII

STATEMENT OF CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS

CONTINGENT LIABILITIES

(All figures in Rupee Millions)

Particulars As At
March March March March March
31, 2010 31, 2009 31, 2008 31, 2007 31, 2006
Bank Guarantees and Letters of Credit issued by 3,525.32 2,269.77 907.58 1,300.90 688.72
bankers in favour of third parties
Corporate Guarantee issued by the Company in 12,396.57 12,151.46 4,087.46 3,457.55 3,631.41
favour of Banks/ Financial Institutions for finance
raised by Companies under the same management

Claims against the Company not acknowledged as 0.67 0.67 0.67 0.67 0.67
debts.
Duty Against Export Obligations 3.92 - - - -
Disputed tax demands (net of taxes paid) 64.56 20.83 73.60 9.70 -

TOTAL 15,991.04 14,442.73 5,069.31 4,768.82 4,320.80

CAPITAL COMMITMENTS

(All figures in Rupee Millions)

Particulars As At
March March March March March
31, 2010 31, 2009 31, 2008 31, 2007 31, 2006
Liability against capital commitment outstanding 2.19 3.10 95.00 816.15 718.91
(Net of Advances )

TOTAL 2.19 3.10 95.00 816.15 718.91

255
ANNEXURE XIV

STATEMENT OF DIVIDENDS DECLARED / PAID / PROPOSED

Particulars March March March March March

31, 2010 31, 2009 31, 2008 31, 2007 31, 2006

NIL NIL NIL NIL NIL

TOTAL NIL NIL NIL NIL NIL

256
ANNEXURE XV

STATEMENT OF ACCOUNTING RATIOS, AS RESTATED

Particulars March March March March March

31, 2010 31, 2009 31, 2008 31, 2007 31, 2006
(A) Net worth (Rs. in Millions) 4,049.32 3,308.75 2,866.39 2,726.25 1,576.26
(B) Adjusted Profit after Tax 756.92 478.03 220.49 147.38 85.89
(Rs. in Millions)
(C ) No. of Shares outstanding at the 45,691,702 45,691,702 45,691,702 5,607,881 4,326,784
end
(D) Weighted average number of 45,691,702 45,691,702 45,043,526 38,834,525 30,287,488
shares outstanding
(E) Weighted average number of 46,352,532 46,471,752 45,420,373 38,834,525 30,287,488
shares outstanding (Diluted)
(B/D) Earnings per Share (EPS) (Rs.) 16.57 10.46 4.90 3.79 2.84
(B/E) Earnings per Share - Diluted 16.33 10.29 4.85 3.79 2.84
(EPS) (Rs.)
(B/A) Return on Net worth (%) 18.69% 14.45% 7.69% 5.41% 5.45%
(A/C) Net Asset Value per Share 88.62 72.41 62.73 486.15 364.30
(Rs.)

Notes:
1. The above ratios are calculated as under
Net profit after tax, as restated, attributable to equity shareholders
EPS = ---------------------------------------------------------------------------------------------
Weighted average number of equity shares outstanding during the period

Net profit after tax, as restated

Return on Net worth = -----------------------------------------------------------------
Net worth, as restated, at the end of the period

Net worth, as restated, at the end of the period

Net Asset Value per Share = ------------------------------------------------------------------------------------
Number of equity shares outstanding at the end of the period

2. The figures disclosed above are based on the restated financial information of Earnings per Share (EPS)
calculations are done in accordance with the Accounting Standard 20, Earnings per Share' issued by
Institute of Chartered Accountants of India.

257
ANNEXURE XVI

STATEMENT OF CAPITALISATION AS AT MARCH – 2010

(All figures in Rupees million)

Particulars Pre Issue Post Issue*
As At
31-Mar-2010

- Long Term Debt 1,495.58

- Short Term Debt 1,772.99
Share holders' funds :
Share Capital 581.30
Share Premium 1,375.70
Preference Share redemption Reserve 166.54
Profit and Loss Account 1,925.78
Less :
Preference Share 124.39
Preference Share redemption Reserve 166.54
Miscellaneous expenditure (to the extent not written off )
Total Share holders' funds 3,758.39

Long Term Debt to Equity 0.40 : 1

258
ANNEXURE XVII

TRANSACTION WITH RELATED PARTIES

(i) Parties where control exists (ii) Key Management Personnel

Ashoka-DSC Katni Bypass Road P. Ltd. Ashok M. Katariya
Satish D. Parakh
Ashoka Highways (Bhandara) Ltd. Sunil B Raisoni
Ashoka Highways (Durg)Ltd.
Ashoka Infrastructure Ltd.
Ashoka Infraways P. Ltd.
Viva Highways P. Ltd.
Ashoka Precon P. Ltd.
Ashoka Technologies P. Ltd.
Ashoka High-Way Ad.
Ashoka Infrastructures
(iii) Associates and Joint Ventures (iv) Directors and their relatives
Ashoka Bridgeways Asha A. Katariya
Ashoka Valecha JV Ashish Katariya
Jayaswals Ashoka Infrastructure P. Ltd. Astha A. Katariya
Viva Infrastructure P. Ltd. S D Parakh HUF
PNG Tollways Pvt. Ltd. Shubham Agencies

(v) Enterprises in which Key Management Personnel/Directors have significant influence

Ashoka Engineering Co.
Ashoka Buildwell & Developers P. Ltd. Ashoka Vastuvaibhav
Ashoka Builders (Nasik) P. Ltd. Ashoka E-Tech
Shweta Agro Farm
Jaora Nayagaon Toll Road Co. Pvt. Ltd. Ashoka Construwell P. Ltd.
Ashoka Education Foundation

259
Transactions with Related Parties
(All figures in Rupee Million)
Particulars Parties Where Control Exists Associates And Joint Ventures
Mar -10 Mar-09 Mar-08 Mar-07 Mar-06 Mar-10 Mar-09 Mar-08 Mar-07 Mar-06
Contract Receipts 4,441.30 3635.43 530.97 221.88 150.29 276.45 441.47 317.26 582.75
Sub Contract Payments
Reimbursement of expenses paid 0.27
Reimbursement of Exp. Received 1.45 2.76
Salary Paid
Rent Paid
Retainership Paid
Commission Paid
Machinery / Vehicle Charges Paid
Machinery / Vehicle Charges Received 0.03
Repairs & Maintenance
Material Sold 4.80
Interest Paid 95.09 74.51 38.42 69.93 0.06 20.03 21.02 22.78 21.09 44.54
Interest Received 2.57 2.44 17.67 17.34 2.79 11.25
Sale of Material 2.96 1.88 1.68 1.03 0.63 0.47 49.92
Purchase of Material 2.16 0.32
Purchase of Fixed Assets
Investment in
- Equity / Pref Shares 14.61 20.55 0.31 219.80 58.00
- Share Application 443.12 4.70
Share Application Received
Share Application Refund 0.38
Sale of Shares 117.47
Purchases of shares 18.57 280 93.53 283.67
Guarantees Issued 10 765.00
Guarantees Received
Loan Taken 801.58 370.68 10.5 429.1 30 289.51 816.90
Loans Repaid
Loans Given 1,169.75 828.85 12.5 17.82 37.26 58.05 315.07 161.42 1.33
Loans Refund 30.00 246.22
Outstanding Payable
- for purchases 127.21 0.07 18.58
- for loans 799.16 576.1 194.50 177.72 228.06
- Advance Received 112.33 407.15 105.57 580.54 12.53
Outstanding Receivables

260
 Particulars Parties Where Control Exists Associates And Joint Ventures
Mar -10 Mar-09 Mar-08 Mar-07 Mar-06 Mar-10 Mar-09 Mar-08 Mar-07 Mar-06
- For Sales of Goods / Rendering services 1.98 407.13 334.71 7.45 37.45
- Advance Paid Against Contract 356.99 166.21
- For Loan 1,304.98 844.78 132.27 322.86

261
 Particulars Key Management Personnel Director and Their Relatives
Mar -10 Mar-09 Mar-08 Mar-07 Mar-06 Mar-10 Mar-09 Mar-08 Mar-07 Mar-06
Contract Receipts
Sub Contract Payments
Reimbursement of expenses paid 0.03
Reimbursement of Exp. Received
Salary Paid 19.01 12.58 13.38 12.04 9.35 0.60 0.60 0.49 0.19
Rent Paid 1.18 2.77 1.84 0.36
Retainership Paid 0.88 0.08
Commission Paid
Machinery / Vehicle Charges Paid 0.51 1.70
Machinery / Vehicle Charges Received 0.63
Repairs & Maintenance
Material Sold
Interest Paid 0.98 1.00
Interest Received 0.01 0.28
Sale of Material
Purchase of Material 70.59 87.13
Purchase of Fixed Assets
Investment in
- Equity / Pref Shares
- Share Application
Share Application Received
Share Application Refund
Purchases of shares 4.43 1.04
Guarantees Issued 5.59
Guarantees Received
Loan Taken 21.28 1.67 0.23
Loans Repaid
Loans Given 1.10 0.80 2.35 0.15 3.00 -
Loans Refund 11.55 8.65
Outstanding Payable
- for purchases 0.96 0.11 1.16 0.03 0.19 6.37 0.04
- for loans 0.04
- Advance Received
Outstanding Receivables
- For Sales of Goods / Rendering services 0.58
- Advance Paid Against Contract

262
 Particulars Key Management Personnel Director and Their Relatives
Mar -10 Mar-09 Mar-08 Mar-07 Mar-06 Mar-10 Mar-09 Mar-08 Mar-07 Mar-06
- For Loan 1.10 1.10 2.35 2.35

263
 Particulars Enterprises Key Management Personnel
Mar-10 Mar-09 Mar-08 Mar-07 Mar-06
Contract Receipts 1,665.64 2337.78 284.80
Sub Contract Payments 1.07 0.71 39.34 191.52
Reimbursement of expenses paid 1.60
Reimbursement of Exp. Received 0.58
Salary Paid
Rent Paid 0.40
Retainership Paid
Commission Paid 0.37
Machinery / Vehicle Charges Paid 0.25 0.90
Machinery / Vehicle Charges Received 1.46 0.80 0.73
Repairs & Maintenance
Material Sold
Interest Paid
Interest Received 0.06 0.57
Sale of Material 0.29 0.10 3.15 7.91 3.64
Purchase of Material 35.46 7.71 6.19 7.37
Purchase of Fixed Assets
Rent Received. 0.26
Investment in
- Equity / Pref Shares
- Share Application
Share Application Received
Share Application Refund
Purchases of shares 329.62
Guarantees Issued 41.49
Guarantees Received 1,950.00
Loan Taken 32.09
Loans Repaid
Loans Given 2.50 10.66 51.54
Loans Refund
Outstanding Payable
- for purchases 5.12 8.57
- for loans
- Advance Received
Outstanding Receivables

264
 Particulars Enterprises Key Management Personnel
Mar-10 Mar-09 Mar-08 Mar-07 Mar-06
- For Sales of Goods / Rendering services 266.16 94.08 28.74 4.28
- Advance Paid Against Contract
- For Loan 2.92 3.67 19.21 29.77

265
ANNEXURE XVIII

STATEMENT OF TAX SHELTERS

(All figures in Rupee Millions)

Sr. Particulars March March March March March
No. 31, 2010 31, 2009 31, 2008 31, 2007 31, 2006
A Profit/(Loss) Before Tax 991.60 568.59 240.14 159.89 120.54

B Tax Rate 33.99% 33.99% 33.99% 33.66% 33.66%

C Tax thereon at above rate 337.05 193.26 81.62 53.82 40.57

D Permanent Differences
Income Exempt from Tax 286.86 259.90 318.34 190.47 117.47
Other Adjustments (LTCG/STCG) 10.31 (0.60) (0.07) 1.02 0.83

E Timing Differences
Depreciation 23.14 84.91 (92.95) (72.06) (67.89)
Preliminary Expenses - - 2.30 2.30 0.10
Amounts inadmissible u/s 43B - - (1.94) (7.05) (0.47)
Amounts inadmissible u/s 40(a) (0.50) - 5.31 (4.63) 38.40
Set off of brought forward losses 20.75 - - - -
Other timing differences (2.08) (13.49) (38.73) - -
F Total Timing Differences 41.31 71.42 (126.01) (81.44) (29.85)

G Net Adjustments (D+F) 338.48 330.72 192.26 110.06 88.44

H Tax (Saving) /Burden thereon 115.05 112.41 65.35 37.04 29.77

I Tax on net adjustments 115.05 112.41 65.35 37.04 29.77

J NET TAX LIABILITY 222.00 80.85 16.27 16.77 10.80

(C + I )
K Payment under MAT - - 25.74 - -

266
ANNEXURE XIX

STATEMENT OF SEGMENT REPORTING

(All figures in Rupee Millions)

Sr. Particulars March March March March March
No. 31, 2010 31, 2009 31, 2008 31, 2007 31, 2006
1 Segment Revenue
a) Construction and contract related Activity 9,945.43 6,223.02 2,246.62 2,445.41 1,181.32
b) BOT 447.53 387.82 337.75 280.50 218.72
c) Toll Collection Contract - - - 345.40 20.42
d) Sales of Goods 769.50 813.76 694.99 487.49 273.00
Total 11,162.46 7,424.60 3,279.36 3,558.80 1,693.46
Less : Intersegment - (1.98) (15.28) (5.63) (25.62)
Net sales / income from operations 11,162.46 7,422.62 3,264.08 3,553.17 1,667.84

2 Segment Results
a) Construction and contract related Activity 1,102.24 534.35 453.19 237.39 110.49
b) BOT 164.42 85.32 146.38 108.71 76.93
c) Toll Collection Contract - - - 16.88 2.49
d) Sales of Goods 81.03 40.63 31.75 9.55 (8.54)
Total 1,347.69 660.30 631.32 372.53 181.37
Less : Intersegment - -
Add : Unallocated income 202.47 137.42 155.54 158.44 129.17
Less : Unallocated Expenses 558.56 229.12 545.98 372.79 (191.55)
Profit before Tax 991.60 568.60 240.88 158.18 118.99
Less : Adjustments (1.00) 0.29
Less : Provisions for Current Taxes 223.01 84.72 30.33 (14.14) (17.83)
Less : Provisions for Deferred Taxes 11.67 5.55 (11.62) 2.35 (14.98)
Add : Last year Taxes - 0.30 1.68 - -
Net Profit after Tax 756.92 478.03 220.49 147.38 85.89

3 Segment Assets
a) Construction and contract related Activity 4,088.76 2,417.30 1,862.97 1,393.80 1,949.06
b) BOT 1,598.32 1,707.53 1,602.53 1,322.08 963.92
c) Toll Collection Contract - - - 89.12 -
d) Sales of Goods 180.71 264.22 352.28 316.81 148.47
Total 5,867.79 4,389.05 3,817.78 3,121.81 3,061.44
Add : Corporate and other unallocable Assets 5,433.35 4,054.54 2,936.37 2,771.91 1,046.76
11,301.14 8,443.59 6,754.15 5,893.72 4,108.20
4 Segment Liabilities
a) Construction and contract related Activity 3,479.67 1,260.58 1,658.92 863.47 573.21
b) BOT 1,133.30 1,279.85 1,230.02 790.96 904.94
c) Toll Collection Contract - - - 0.42 -
d) Sales of Goods 60.45 87.94 129.89 96.80 88.02
Total 4,673.42 2,628.37 3,018.83 1,751.63 1,566.18
Add : Corporate and other unallocable Liabilities 2,578.42 2,488.08 868.93 1,417.39 966.31
7,251.84 5,116.45 3,887.76 3,169.02 2,532.49
5 Capital Expenditure

267
Sr. Particulars March March March March March
No. 31, 2010 31, 2009 31, 2008 31, 2007 31, 2006
a) Construction and contract related Activity 96.77 318.25 216.74 361.47 230.15
b) BOT 19.37 127.13 764.15 146.67 0.33
c) Toll Collection Contract - - - - -
d) Sales of Goods 41.17 19.93 29.86 82.41 32.68
Unallocable Capital Expenditure 67.86 8.45 30.83 28.70
Total 225.17 473.76 1,041.58 619.24 263.15

6 Depreciation
a) Construction and contract related Activity 118.45 85.11 69.28 54.44 47.28
b) BOT 215.22 218.25 152.06 144.08 124.39
c) Toll Collection Contract - - - - -
d) Sales of Goods 22.15 27.67 29.39 17.75 11.08
Total 355.82 331.03 250.73 216.27 182.75

Note:

1. Construction & Contracting Activity comprises execution of engineering and construction projects to
provide solutions in civil and electrical engineering (on turnkey basis or otherwise) to core / infrastructure
sectors.

2. BOT Activity relates to execution of the projects on long term basis comprising developing, operating and
maintaining the Infrastructure facility.

3. Sale of Goods comprises the activity of selling of Ready Mix Concrete (RMC) and Bitumen.

268
 AUDITOR’S REPORT ON CONSOLIDATED FINANCIAL INFORMATION

The Board of Directors,

Ashoka Buildcon Limited,
Ashoka House,
Ashoka Marg,
Nashik 422 011.

Dear Sirs,

1. We have examined the consolidated financial information of Ashoka Buildcon Limited (the ‘Company’),
its subsidiaries, joint ventures and associates (collectively referred to as ‘the Group’), annexed to this
report, as approved by The Board of Directors of the company, prepared in terms of

™ Paragraph B (1) of Part II of Schedule II of the Companies Act, 1956 (the “Act”)
™ The Securities and Exchange Board of India (“SEBI”) (Issue of Capital and Disclosure
Requirements) Regulations, 2009, (the “Regulations”) issued by SEBI on August 26, 2009, as
amended from time to time.
™ Our engagement letter agreed upon with you with the proposed issue of equity shares of the
company.

2. We have examined such consolidated summary statement taking into consideration the revised Guidance
Note on report in Company Prospectuses issued by the Institute of Chartered Accountants of India (the
“ICAI”).

3. The consolidated financial information has been extracted by the Management from the financial
statements for the year ended March 31, 2006, 2007, 2008, 2009 and 2010 approved by the Board of
Directors.

4. We did not audit the stand alone financial statements of the holding company, its subsidiaries, joint
ventures and associates for the financial year ended March 31, 2006. We did not audit the financial
statements of certain subsidiaries and associates for the years ended March 31, 2006, 2007, 2008, 2009 and
2010 and our opinion in so far as it relates to the amounts included in the summary statement of
consolidated assets and liabilities, profit and loss and cash flows, as restated are based solely on the report
of the other auditors. Details of auditors of each company that has been consolidated including total assets,
total revenue and profits are as detailed below:

(Rupees in Millions)
Financial Name of the Name of the Total assets Total revenue Profit
year ended company auditor after
tax
2005-06 Holding Company
Ashoka Buildcon Rathi Daga & 3,713.07 1,797.01 -
Ltd. Co.
Subsidiaries
Ashoka Infraways Rathi Daga & 522.29 73.53 -
Pvt.Ltd. Co.
Joint Ventures
Ashoka Highway Rathi Daga & 72.66 20.62 -
Ad Co
Ashoka Rathi Daga & 118.60 53.57 -
Infrastructure Co.
Associates
Ashoka DSC Katni Sanjay. V. - - -
Bypass Pvt.Ltd. Goyal & Co.

269
 Financial Name of the Name of the Total assets Total revenue Profit
year ended company auditor after
tax
Ashoka C.B.Alizad & Since profit is consolidated in case (9.19)
Infrastructure Ltd. Co. of associates, figures of assets and
Viva Infrastructure Rathi Daga & revenues are not indicated. (0.01)
Pvt.Ltd. Co.
Jaiswal’s Ashoka Agarwal 4.60
Infrastructures Challani &
Pvt.Ltd. Co.
2006-07 Subsidiaries
Ashoka DSC Katni Sanjay. V. - - -
Bypass Pvt.Ltd. Goyal & Co.
Associates
Viva Infrastructure Rathi Daga & Since profit is consolidated in case 1.00
Pvt.Ltd. Co. of associates, figures of assets and
Jaiswal’s Ashoka Agarwal revenues are not indicated. 22.09
Infrastructures Challani &
Pvt.Ltd. Co.
2007-08 Subsidiaries
Ashoka DSC Katni Sanjay. V. 258.91 13.37 -
Bypass Pvt.Ltd. Goyal & Co.
Ashoka Highway Sanjay. V. 116.57 Nil -
(Durg) Ltd. Goyal & Co.
Ashoka Highway Sanjay. V. 2.10 Nil -
(Bhandara) Ltd. Goyal & Co.
Associates
Viva Infrastructure Rathi Daga & Since profit is consolidated in case 0.53
Pvt.Ltd. Co. of associates, figures of assets and
Jaiswal’s Ashoka Agarwal revenues are not indicated. 45.49
Infrastructures Challani &
Pvt.Ltd. Co.
2008-09 Subsidiaries
Ashoka DSC Katni Sanjay. V. 796.57 140.46 -
Bypass Pvt.Ltd. Goyal & Co.
Ashoka Highway Natvarlal 1,440.95 - -
(Durg) Ltd. Vepari & Co.
Ashoka Highway Natvarlal 2,815.91 - -
(Bhandara) Ltd. Vepari & Co.
Ashoka Precon Pvt. Rathi Daga & 32.96 - -
Ltd. Co.
Ashoka Sanjay. V. 0.10 - -
Technologies Pvt. Goyal & Co.
Ltd.
Associates
Viva Infrastructure Rathi Daga & Since profit is consolidated in case 0.92
Pvt.Ltd. Co. of associates, figures of assets and
Jaiswal’s Ashoka Agarwal revenues are not indicated. 39.80
Infrastructures Challani &
Pvt.Ltd. Co.
2009-10 Subsidiaries
Ashoka DSC Katni Sanjay. V. 607.61 151.29 -
Bypass Pvt.Ltd. Goyal & Co.
Ashoka Highway Natvarlal 3,773.49 1.24 -
(Durg) Ltd. Vepari & Co.

270
 Financial Name of the Name of the Total assets Total revenue Profit
year ended company auditor after
tax
Ashoka Highway Natvarlal 5,136.67 0.56 -
(Bhandara) Ltd. Vepari & Co.
Ashoka Precon Pvt. Rathi Daga & 77.58 25.87 -
Ltd. Co.
Ashoka Sanjay. V. 1.27 1.21 -
Technologies Pvt. Goyal & Co.
Ltd.
Associates
Viva Infrastructure Rathi Daga & Since profit is consolidated in case 1.63
Pvt.Ltd. Co. of associates, figures of assets and
Jaiswal’s Ashoka Chaturvedi revenues are not indicated. 46.72
Infrastructures Sohan & Co.
Pvt.Ltd.
PNG Tollway Pvt. Gianender & (2.15)
Ltd. Associates

5. In accordance with the requirements of Paragraph B(1) of Part II of Schedule II of the Act, the Regulations
and terms of our engagement agreed with you, we further report that:

a) The consolidated restated Summary Statement of Assets and Liabilities, consolidated restated
summary statement of profits and losses and consolidated restated statement of cash flows of the
Company, as at March 31, 2006, 2007, 2008, 2009 and 2010 examined by us as set out in the
Annexure I, II and III to this report are after making adjustments and regrouping as in our
opinion were appropriate and more fully described in the notes on adjustments for re-stated
financial statements and significant accounting policies for re-stated financial statements as set
out in Annexures IV and V.

b) Based on our examination above we are of the opinion that that the consolidated restated financial
information has been made after incorporating:

(i) adjustments for the material amounts in the respective financial years to which they
relate,

(ii) adjustments for qualifications retrospectively in the respective financial years to reflect
the accounting treatment to be followed had there been no qualification,

c) Based on our examination, we are of the opinion that the consolidated restated financial
statements have been prepared on the basis of accounting policies adopted as at and for the year
ended March 31, 2010.

d) There are no extraordinary items which need to be disclosed separately in the consolidated restated
financial information. Without qualifying our audit opinion, we invite attention to Note no.4 in
schedule 20 regarding the distinct presentation of share premium arising on dilution of
shareholding in a subsidiary aggregating to Rs.415.48 millions.

6. We have also examined the following other financial information set out in the below mentioned annexures
prepared by the management and approved by the Board of Directors relating to the Company for the year
ended March 31, 2006, 2007, 2008, 2009 and 2010.

(i) Statement of Secured and Unsecured Loans included in Annexure VI & VII
(ii) Statement of Loans & Advances included in Annexure VIII
(iii) Statement of Sundry Debtors included in Annexure IX

271
 (iv) Statement of Investments included in Annexure X
(v) Statement of Current Liabilities & Provisions included in Annexure XI
(vi) Statement of Other Income included in Annexure XII
(vii) Statement of Contingent Liabilities & Capital Commitments included in Annexure XIII
(viii) Statement of Dividend paid/proposed included in Annexure XIV
(ix) Statement of Accounting Ratios included in Annexure XV
(x) Statement of Capitalisation included in Annexure XVI
(xi) Statement of Related Parties included in Annexure XVII
(xii) Statement of Segment Reporting included in Annexure XVIII

7. In our opinion the financial information contained in Annexure I to XVIII of this report read along with
the Significant Accounting Policies, and Notes to accounts prepared after making adjustments and
regrouping as considered appropriate have been prepared in accordance with Paragraph B (1) of Part II of
Schedule II of the Act and the Regulations.

8. Our report is intended solely for use of the management and for inclusion in the offer document in
connection with the proposed issue of equity shares of the Company. Our report should not be used,
referred to or distributed for any other purpose except with our prior written consent.

9. This report should not be in any way constructed as a re-issuance or re-drafting of any of the previous audit
reports issued by either any of us singly or issued jointly, nor should this report be construed as new
opinion on any of the financial statements referred to herein.

10. We have no responsibility to update our report for events and circumstances occurring after the date of the
report.

for M P Chitale & Co.

Chartered Accountants
Firm Registration No.101851W

Murtuza Vajihi
Partner
ICAI M. No. 112555

Mumbai,
July 3, 2010

272
ANNEXURE I

SUMMARY STATEMENT OF ASSETS AND LIABILITIES, AS RESTATED

(All Figures in Rupee Millions)

Particulars As At
March March March March March
31, 2010 31, 2009 31, 2008 31, 2007 31, 2006

ASSETS :
Tangible Assets
Gross Block 1,716.10 1,349.72 1,131.86 910.92 568.66
Less: Depreciation Reserve 577.41 443.91 341.09 227.48 149.16
Net Block (1 ) 1,138.69 905.81 790.77 683.44 419.50
Intangible Assets*
Gross Block 6,189.64 6,143.55 5,098.65 4,561.03 1,856.55
Less: Amortisation Reserve 2,722.94 2,143.89 1,566.47 1,184.96 427.04
Net Block (2) 3,466.70 3,999.66 3,532.18 3,376.07 1,429.51
Add : Capital Work in Progress (3) 8,144.25 3,730.22 1,293.30 617.13 48.17
Total ( 1 + 2 + 3) (A) 12,749.64 8,635.69 5,616.25 4,676.64 1,897.18

INVESTMENTS ( B ) 1,487.39 910.95 716.54 662.32 755.29

CURRENT ASSETS, LOANS &
ADVANCES:
Inventories** 1,963.90 670.02 905.47 588.59 297.21
Sundry Debtors 1,820.18 349.50 333.68 226.85 466.35
Cash & Bank Balances 845.46 691.83 993.77 1,389.87 473.39
Loans and advances 2,224.10 1,349.22 674.85 490.98 526.51
Total ( C ) 6,853.64 3,060.57 2,907.77 2,696.29 1,763.46

TOTAL ASSETS (A + B +C) 21,090.67 12,607.21 9,240.56 8,035.25 4,415.93

LIABILITIES AND PROVISIONS:

Unsecured loans 1,543.42 262.22 202.17 190.29 888.06
Secured Loans 9,677.57 6,963.79 4,918.61 4,185.30 1,569.76
Deferred Tax Liability 30.08 18.39 12.84 31.85 26.81
Minority Interest 813.33 237.49 162.35 126.04 56.32
Current liabilities & provisions :
Current liabilities 3,932.13 1,429.37 718.40 569.95 384.18
Provisions - Staff Unencashed Leave 7.33 5.14 5.30 5.88 2.28
Provisions for taxation 463.63 218.01 107.67 52.37 17.02
Total (D) 16,467.49 9,134.41 6,127.34 5,161.70 2,944.43
NET WORTH
Represented by:
Share capital 581.30 587.25 587.25 224.21 211.40
Share Application Money - 49.82 0.10 0.00 0.00
Share Premium on Dilution of Subsidiary 415.49 - - - -
Shareholding
Share premium (Net of Share Issue Expenses) 1,359.41 1,379.63 1,435.60 1,858.90 856.01

273
 Particulars As At
March March March March March
31, 2010 31, 2009 31, 2008 31, 2007 31, 2006
Preference Share redemption Reserve 166.54 159.33 141.62 176.39 211.25

Profit and loss account 2,100.44 1,296.77 948.65 614.09 192.84

Less: Preliminary / share issue expenses not - - - 0.04 0.00
written off
Total (E) 4,623.18 3,472.80 3,113.22 2,873.55 1,471.50

TOTAL LIABILITIES 21,090.67 12,607.21 9,240.56 8,035.25 4,415.93

(D + E)
Notes:
In the financial year 2007-2008 balance of Profit and loss Account increased by Rs.3.71 Millions due to effect of
transitional provision of A.S. 15
*Includes Goodwill arising on consolidation aggregating to Rs. 6.30 Millions
** Includes Development Rights for Commercial Units of Rs.146.51 Millions (F.Y. 2008-09 Rs.144.50 Millions) and
also refer note no.1 (c) of Principles of Consolidation

274
ANNEXURE II

SUMMARY STATEMENT OF PROFITS AND LOSSES, AS RESTATED

(All Figures in Rupee Millions)

Particulars Year Ended
March March March March March
31, 2010 31, 2009 31, 2008 31, 2007 31, 2006
INCOME :
Turnover
- Construction Revenue 5,526.76 2,930.55 1,376.92 2,229.00 1,165.26
- Sales 775.59 808.58 677.83 480.18 247.38
- Toll Income – BOT 1,653.35 1,444.56 1,172.93 976.31 358.30
- Toll Income – Contract - - - 345.40 20.42
Total Turnover 7,955.70 5,183.69 3,227.68 4,030.89 1,791.36
Other Income 186.35 149.92 175.69 158.80 66.85
TOTAL INCOME 8,142.05 5,333.61 3,403.37 4,189.69 1,858.21
EXPENDITURE :
Contract / O & M Expenses* 4,836.43 2,647.32 1,198.01 2,050.84 965.37
Cost of Material Sold 585.40 581.56 525.22 373.89 221.90
Toll Expenses – Contract - - - 316.88 17.92
Staff Expenses 213.32 158.80 129.39 112.18 65.86
Administrative Expenses 178.03 155.80 141.74 122.48 68.18
Finance Costs 490.38 646.22 473.97 451.64 212.24
Depreciation 151.84 119.31 102.68 79.04 61.44
Amortisation 509.32 525.44 429.23 420.74 181.49
**TOTAL EXPENDITURE 6,964.72 4,834.45 3,000.24 3,927.69 1,794.40
Profit before tax , prior period items and Adjustments 1,177.33 499.16 403.13 262.00 63.81
Provision for taxation :
Current Tax (Net) 306.82 108.00 53.52 23.64 15.90
Deferred Tax 11.69 5.55 (19.01) (6.72) 14.98
Fringe Benefit Tax - 2.59 3.47 1.88 2.11
Profit before prior period items and Adjustments 858.82 383.02 365.15 243.20 30.82
ADJUSTMENT (see Annexure IV )
ADJUSTMENTS (see Note 1 of Annexure IV) - - - (1.54) 0.67
Current Tax Impact of Adjustments - - - 0.49 (0.50)
Net Profit Before Minority Interest 858.82 383.02 365.15 244.25 30.65
Profit/Loss Transferred to Minority Interest 55.15 34.88 34.31 1.87 (11.94)
Net Profit attributable to Shareholders 803.67 348.14 330.83 242.38 42.59
Profit Brought Forward from Previous years 1,296.77 948.63 614.09 192.84 150.25
Profit of Merged Entities - - - - -
Profit Brought Forward from Previous years of subsidiaries - - - 178.87 -
added
Balance carried to Balance sheet 2,100.44 1,296.78 944.93 614.09 192.84
Notes:
* Profit Brought Forward from Previous years in financial year 2008 - 2009 is increased by Rs. 3.71 Millions due to
transitional provision of A.S. 15
** Net of all expenditure transferred to capital work in progress

275
ANNEXURE III

STATEMENT OF CASH FLOW, AS RESTATED

(All Figures in Rupee Millions)

Particulars Year Ended
March March March March March
31, 31, 2009 31, 2008 31, 2007 31,
2010 2006

A. CASH FLOW FROM OPERATING ACTIVITIES :

Net Profit before Tax 1,177.33 499.16 403.13 263.54 64.66
Adjustments for : - - - - -
Depreciation / Amortisation 661.16 645.61 583.47 499.78 242.57
Investment Income (45.88) (41.03) (46.38) (23.79) 4.40
(Profit)/Loss on Sale of Assets 1.79 - - - -
(Profit) / Loss on Sale of Investment (4.75) - - - -
Provision for doubtful debts 15.98 - - - -
Interest (Net) 490.38 646.22 494.50 451.64 212.25
Impact of Transitional Provision As per AS-15 - - 3.71 - -
Operating Profit before Working Capital Changes 2,296.01 1,749.9 1,438.42 1,191.17 523.87
5
Adjustments for :
Inventories (1,293.88) 235.45 (316.89) (291.37) (106.17
)
Trade and Other Receivables (2,115.92) (579.99 (235.40) 267.99 (500.25
) )
Trade Payables 3,030.97 835.82 184.41 293.83 (143.88
)
Cash Generated from the Operations 1,917.17 2,241.2 1,070.53 1,461.61 (226.42
2 )
Direct Taxes provision (306.82) (110.59 (57.00) (25.52) (18.01)
)
Adjustments - - - (1.54) 0.67
(Profit) / Loss transferred to minority interest (57.74) (37.48) (45.41) (1.87) 11.95
Net Cash from/(used in) Operating Activities 1,552.61 2,093.1 968.12 1,432.67 (231.81
6 )

B. CASH FLOW FROM INVESTING ACTIVITIES :

(Purchase) / Sales of Fixed Assets (4,776.88) (3,665. (1,523.14 (3,279.18 (227.79
05) ) ) )
Share Premium from Subsidiary 415.48 - - - -
(Purchase) / repayment & reduction of Investments (576.44) (194.41 (54.22) 271.93 (46.76)
)
Share of profits/ (losses) Associates /Joint Ventures 50.63 41.03 46.38 22.45 (4.40)
Net Cash (used in) Investing Activities (4,887.21) (3,818. (1,530.98 (2,984.80 (278.94
43) ) ) )

C. CASH FLOW FROM FINANCING ACTIVITIES :

Increase in Share Capital - - (83.94) 1,002.61 -
Repayment of Borrowings 3,157.83 - - - -
Proceeds from borrowings 837.15 2,105.2 745.20 1,917.76 921.36

276
 Particulars Year Ended
March March March March March
31, 31, 2009 31, 2008 31, 2007 31,
2010 2006
2
Interest Paid (490.38) (646.22 (494.50) (451.64) (212.25
) )
Redemption of Preference Shares (16.36) - - - -
Preliminary and Share Issue Expenses - (35.66) - - -
Net Cash from/(used in) Financing activities 3,488.24 1,423.3 166.76 2,468.74 709.11
4

NET INCREASE / ( DECREASE) IN CASH 153.63 (301.93 (396.10) 916.61 198.36

AND CASH EQUIVALENTS )
Cash & Cash Equivalent at the end of year 845.46 691.83 993.77 1,390.00 473.39
Cash & Cash Equivalent at the beginning of year 691.83 993.77 1,389.87 473.39 275.03
NET INCREASE IN CASH AND CASH 153.63 (301.93 (396.10) 916.61 198.36
EQUIVALENTS )
COMPONENTS OF CASH AND CASH
EQUIVALENTS
Cash in hand 8.46 8.01 6.77 9.41 4.90
Balances with Banks: - - -
-On Current Account 384.86 191.28 242.25 223.42 58.42
-On Deposit Account 452.14 492.55 744.75 1,157.04 410.07

277
ANNEXURE IV

BREAK UP OF ADJUSTMENTS/RESTATMENTS MADE IN RESTATED FINANCIAL INFORMATION

The adjustments / restatements made while preparing the Restated Financial Information are summarized below:

(All Figures in Rupees Millions)

Particulars Year Ended
March 31, March 31, March 31, March 31, March 31,
2010 2009 2008 2007 2006

Net Profit After Tax and before adjustments 858.83 383.02 365.15 243.20 30.82
as per Audited Financial Statements

Restatements / Adjustments on account of : - - - - -

- Prior Period items ( refer Note 1 ( a ) - - - (0.74) (0.28)
below )

- Provision for Leave Encashment - - - (1.10)

(refer Note 1 ( b ) below)

- Adjustment of Amortisation for Prior - - - 2.29 0.70

Years (refer Note 1 ( c ) below)

Current Tax Impact of Adjustments (0.49) 0.50

Net Profit After Tax and after Extraordinary 858.83 383.02 365.15 244.25 30.65
items as per Restated Financial Information
of profits and losses

NOTES ON ADJUSTMENTS MADE IN THE RESTATED FINANCIAL INFORMATION

CHANGE IN ACCOUNTING POLICIES:

1 (a) In the restated financial statements prior period items are considered as expenditure / income in the
financial year for which these items pertain to.
1 (b) Leave encashment was accounted for on payment basis till financial year 2005-06 and no provision was
made for outstanding leave. In the restated financial statements the provision for leave encashment has
been made from financial year 2002-2003 onwards.
1 (c) In the restated financial statements error in calculation of amortisation are accounted for, in the respective
financial year.

278
ANNEXURE V

NOTES ON ADJUSTMENT FOR RE-STATED FINANCIAL STATEMENTS AND SIGNIFICANT

ACCOUNTING POLICIES FOR THE YEAR ENDED MARCH 31, 2010

COMPANY OVERVIEW:
The Company is incorporated in 1993. It is presently in the business construction of infrastructure facilities on
Engineering, Procurement and Construction Basis (EPC) and Built, Operate and Transfer (BOT) Basis and Sale of
Ready Mix Concrete and Bitumen. The Company has promoted Special Purpose Vehicles (SPVs) for some of its
projects. The SPVs significantly engage the services of the Company for contract related activities due to inherent
execution capabilities / expertise and experience of the Company.

1. Principles of Consolidation

a) The consolidated financial statements include accounts of Ashoka Buildcon Ltd. (The Company /
ABL) and its subsidiaries and associates. Subsidiary undertakings are those companies in which ABL,
directly or indirectly, has an interest of more than one half of voting power or otherwise has power to
exercise control over the operations. Subsidiaries are consolidated from the date on which effective
control is transferred to the Group till the date of such control exists. The consolidated financial
statements have been prepared in accordance with historical cost convention, the applicable accounting
standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the
Companies Act, 1956.

b) In case of Inter Company contract revenue consolidated the same is reduced from the contract revenue
from the respective opening and closing Work-In-Progress and also contract receipt. Expenditure
incurred & apportioned related to this contract revenue are reduced from respective schedules under
the A/c. head “Elimination of Inter Company Transaction in respect of CWIP Projects

c) In respect of Intercompany transactions that are contract revenue in nature for the holding company
and fixed assets/CWIP in the subsidiary company, the company follows a process of elimination of the
contract revenue, including WIP and related/ allocated expenditure in the holding company and
elimination of the profit on such transaction in the subsidiary company. Elimination of such profit has
been effected in the Revenue account of the holding company and the fixed assets/CWIP of the
subsidiary company.

d) The financial statements of the Company and its subsidiary companies are combined on a line-by-line
basis by adding together the book values of like items of assets, liabilities, income and expenses, after
fully eliminating intra group balances and intra-group transactions in accordance with the Accounting
Standard (AS) 21 – “Consolidated Financial Statements” issued by the Institute of Chartered
Accountants of India.

e) In case of associates, where the Company directly or indirectly through subsidiaries holds more than
20% of equity, investments in associates are accounted for using the equity method in accordance with
Accounting Standard 23 on Accounting of Investments in Associates in Consolidated Financial
Statements” issued by the Institute of Chartered Accountants of India. Investments in associate
companies which have been made for temporary purposes have not been considered for consolidation.

f) The Company accounts for its share in the change on the net assets of the associates, post acquisition,
after eliminating profits and losses resulting from transactions between the Company and its associates
to the extent of its shares, through its Profit and Loss Account to the extent attributable t the associates’
profit and loss account and through its reserves for the balance, based on available information.

g) Minority Interest’s share of net assets / reserves of consolidated subsidiaries is identified and presented
in the consolidated balance sheet separate from liabilities and the equity of the Company’s
shareholders. Share of minority interest in the preference redemption reserve of subsidiary companies
has been reduced from the Share premium of the holding company being an appropriation of the share

279
 premium account.

h) As far as possible, the consolidated financial statement are prepared using uniform accounting policies
for like transactions and other events in similar circumstances and are presented in the same manner as
the Company’s separate financial statements. And accordingly, Amortisation / Depreciation policy has
been reinstated in case of Viva Highways Pvt. Ltd. (A Subsidiary) and Jayaswal Ashoka Infrastructure
Pvt. Ltd. (An Associate) due to which Amortisation / Depreciation reserve is reduced to the extent of
Rs.397.76 Millions and Rs. 189.09 Millions respectively.

i) The Companies considered in consolidated financial statements are listed below:

Sr. Name of Concern Relationship Ownership as Ownership as

No. on 31.03.2010 on 31.03.2009
1) Ashoka Infrastructure Subsidiary 100% 100%
Ltd. (Associate till
14.04.2006)
2) Ashoka Infraways Pvt. Subsidiary 100% 100%
Ltd.
3) Viva Highways Pvt. Subsidiary 74.00% 74.00%
Ltd.
4) Ashoka DSC Katni Subsidiary 99.89% 99.89%
Road Project Pvt. Ltd.
5) Ashoka Highway Ad Subsidiary 99.99% 99.99%
6) Ashoka Infrastructures Subsidiary 99.99% 99.99%
7) Ashoka Highways Subsidiary 60.19% 90.00%
(Durg) Ltd. AH(D)L
8) Ashoka Highways Subsidiary 53.16% 70.73%
(Bhandara) Ltd.
AH(B)L
9) Ashoka Precon Pvt. Subsidiary 50.99% 51.00%
Ltd.
10) Ashoka Technologies Subsidiary 99.80% 99.80%
Pvt. Ltd.
11) Viva Infrastructure Pvt. Associates 49.00% 49.00%
Ltd.
12) Jayaswal Ashoka Associates 50.00% 50.00%
Infrastructure Pvt. Ltd.
13) PNG Tollway Pvt. Ltd. Associates 26.00% 26.00%

j) The Company has entered in to a Joint Venture with nature of Jointly Control Operations, wherein
there is no capital contribution with Valecha Engineering Ltd for execution of the construction of
Chittorgarh Bypass, wherein the work is to be executed separately as per agreed terms and conditions
and the obligations and fortunes of the respective works is being accounted individually of their own
works Since the JV is in the nature of jointly controlled operations, the same have not been considered
for consolidation as prescribed by AS-27 –Financial reporting of interest in Joint ventures.

k) M/s Ashoka Buildcon ltd holds a 5% stake in a joint venture, M/s Ashoka Bridgeways. In the opinion
of the management, holding of a mere 5% stake would not result in joint control of the entity, hence,
the same has not been consolidated in the period under audit. The management has not consolidated
‘investment in partnership firms’ since, in the opinion of the management, they are not in the nature of
joint ventures.

2. Statement of Significant Accounting Policies

a) Basis & Method of Accounting

280
 The Company follows mercantile system of accounting and recognizes income and expenditure on
an accrual basis. Financial Statements are prepared under historical cost convention, in accordance
with the Generally Accepted Accounting Principles in India (GAAP) and comply in all material
aspects, with mandatory accounting standards and statements issued by the Institute of Chartered
Accountants of India. The significant accounting policies followed by the Company are set out
below. Management has made certain estimates and assumptions in conformity with the GAAP in
the preparation of these financial statements, which are reflected in the preparation of these
financial statements. Difference between the actual results and estimates are recognized in the
period in which the results are known.

b) Fixed Assets & Depreciation

(i) Fixed assets are stated at cost less accumulated depreciation and any write downs for
permanent diminution in value. Assets under construction are carried at cost and are not
depreciated until brought into use in the business. Cost being cost of acquisition and
expenditure directly attributable for commissioning of the asset including taxes, duties,
cess and other levies not refundable and claimable. In respect of assets acquired on
merger, fixed assets are stated at their fair market value on the effective date of merger
less depreciation.

(ii) Depreciation has been provided on Written Down Value method at the rates specified in
Schedule XIV to the Companies Act, 1956.

c) Intangible assets & Amortization

i) Intangible assets are carried at cost of acquisition less any subsidies or grants. These
assets include all duties, non-refundable taxes, levies and costs incurred (which are
directly attributable) for bringing assets into working conditions for its intended use.
Intangible assets include assets that are incidental for the purpose of Toll Collection and
which will be handed over at the end of the concession period. Fees incurred in order to
arrange long-term financing are capitalized and amortized over the life of the asset.

ii) Intangible assets are amortized on straight line method over the useful life of the asset/
Concession period. Amortization of these Intangible Assets commences when the Right
to Collect Toll is established by the Company.

d) Investments

Long term Investments are stated at acquisition cost. Investments acquired on merger are stated at
their fair market value on the effective date of merger.

e) Revenue Recognition

i) Construction Contracts

Revenue from long term contracts / Turnkey Projects is recognized on percentage

completion basis as prescribed by AS-7 'Construction Contracts' issued by the Institute of
Chartered Accountants of India. Materials sold under Turnkey Projects is considered as
Construction Work in Progress till the activity is certified by the client. Provisions for
future foreseeable losses are fully provided for.

Claims and variations for escalations/damages are recognized only when accepted by the
client. Claims under arbitration/disputes are accounted as income based on final award.
Expenses on arbitration are accounted as incurred.

281
 ii) Sales

Sales are recognized on dispatches to customers. Sales exclude VAT and are net of
incentives and discounts.

iii) Toll Collection – BOT & Contracts

Income from toll collection is recognized on the basis of actual collections. Sale of
discounted coupons / swipe cards, monthly pass, return pass, daily pass is recognized as
income at the time of sale.

f) Inventory

i) Inventory of construction / raw material is valued at cost or net realizable value

whichever is lower. Cost includes all taxes and expenses incurred to bringing inventory to
their present location and condition. Cost is arrived at using FIFO basis.

ii) Work in Progress in respect of construction contracts is valued on the basis of technical
estimates and percentage completion basis.

iii) Stores and spares are expensed as and when purchased.

g) Retirement Benefits

i) Provision for liabilities in respect of leave encashment is made on the basis of an

actuarial valuation.

ii) Provision for gratuity liability is made on the basis of premium payable in respect of
Group Gratuity Policy with an insurance company.

iii) Provident Fund benefit to employees is provided for on accrual basis and charged to
Profit and Loss Account of the year

iv) Compensation Cost of ESOP to employees is accounted on Intrinsic Value Method.

Intrinsic value is the amount by which the quoted market price of the underlying shares
on the grant date exceeds the exercise price of the options. Accordingly, the
compensation cost is amortized over the vesting period.

h) Borrowing Cost

Borrowing costs directly attributable to acquisition and construction of capital assets are
capitalized till the asset is put to use/ready for use. Borrowing costs directly attributable to
construction contract project are charged to profit & loss account and are included in work in
progress. All other borrowing costs are recognized as expenditure in the period when they were
incurred.

i) Foreign Exchange Transactions

Transactions in foreign currency are recorded at exchange rates prevailing on the dates of
respective transactions. The difference in translation and realized gains and losses on foreign
exchange transactions are recognized in the Profit and Loss Account.

j) Impairment of Fixed Assets

Wherever events or changes in circumstances indicate that the carrying value of fixed assets may
be impaired, such assets are subject to a test of recoverability, based on discounted cash flows

282
 expected from use or disposal thereof. If the assets are impaired, loss is recognized.

k) Taxes on income

i) Tax expense comprises both current and deferred tax at the applicable
enacted/substantively enacted rates. Current tax represents the amount of income tax
payable/recoverable in respect of the taxable income/loss for the reporting period.

ii) Deferred tax represents the effect of timing differences between taxable income and
accounting income for the reporting period that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred tax assets are recognized only to the
extent there is reasonable certainty of realization in future. Such assets are reviewed as at
each Balance Sheet date to reassess realization.

l) Provisions and contingencies

Provisions are recognized when the company has a legal and constructive present obligation as a
result of a past event, for which it is probable that outflow of resources will be required and a
reliable estimate can be made of the amount of the obligation. Contingent liabilities are disclosed
when there is a possible obligation that may result in an outflow of resources. Contingent assets
are neither recognized nor disclosed.

m) Deferred Grants and subsidies

Grants and subsidies relating to investments on Fixed / Intangible assets are recognized in the
financial statements by reducing the cost of the relevant assets.

3. In respect of two subsidiaries of the company i.e. AH(B)L and AH(D)L, the entire contract has been sub-
contracted on a back to back basis to the holding company. Certain component of the cost of the project i.e.
Rs. 479.44 Millions has been recovered by the subsidiaries from the Principal. Profit on such recovery
aggregates to Rs.16.48 Millions in respect of F.Y. 2009-10 from AH(B)L and AH(D)L and Rs. 20.21
Millions in respect of F.Y. 2008-09 from AH(B)L respectively. As mentioned in para (c) of principles of
consolidation, the company has eliminated intercompany revenue, expenditure as well as unrealized profits
in respect of the transactions between the holding company and AH(B)L and AH(D)L . Since the above
profit of Rs. 36.68 Millions is a realized profit for the group, the same has not been eliminated and carried
forward in the consolidated financial statements of the group.

4. During the F.Y. 2008-09, there has been a dilution of the company’s stake in two subsidiaries i.e. AH(D)L
and AH(B)L from 90% equity in both the subsidiaries to 60.19% and 53.16% respectively. The dilution has
taken place due to direct infusion of fresh equity into the subsidiaries by a private equity investor at a
premium. Hence, such amount of share premium is not eliminated. Accordingly, amount of such share
premium aggregating to Rs. 415.48 Millions out of total premium of Rs. 739.71 Millions has been
separately disclosed as “share premium on dilution of subsidiary shareholding’.

5. AS 4 – Events occurring after the balance sheet date, not requiring adjustments to financial
statement.

The company, three subsidiaries and one associate have been subject to a search/survey proceedings under
Section 132 and 133 of The Income Tax Act, 1961. The Income Tax department is in the process of
assessing the final amount of tax payable by the Company, if any, and its subsidiaries and has not raised
any demand on the company and its subsidiaries till date. Consequently, no impact for the same has been
given in the financial statements for the F.Y. 2009-10.

6. AS 7 – Accounting for Construction Contracts

(a) Revenue from fixed price construction contracts are recognized on the percentage of completion

283
 method, measured by reference to the percentage of cost incurred up to the year end to estimated
total cost for each contract.
(Rs. in Millions)
Sr. Particulars For The Year Ended For The Year Ended
No. 31.03.2010 31.03.2009
1) Revenue from fixed price construction contracts are recognized on the percentage of
completion period, measured by reference to the percentage of cost incurred up to the
year end to estimated total cost for each contract
2) Total Contract revenue recognized 5,526.77 2,930.55
during the year
3) Particulars about contracts in progress at the end of the year:
a) Aggregate amount of cost 8,403.55 4,066.73
incurred up to year end
b) Aggregate amount of profit / Loss 1,082.79 461.55
Recognized
c) Advance from Customers 1095.08 50.38
d) Retention Amount 278.46 129.48
4) Gross Amount due from 2,634.75 307.25
customers for contract work
5) Gross amount due to customers Nil Nil
for contract work

Percentage completion method for income recognition on long term contracts involves technical
estimates by engineers/technical officials, of percentage of completion and costs to completion of
each project/contract on the basis of which profit/loss is allocated.

(b) The company has been awarded a contract for Commercial Development on a PPP basis by
Kalyan Dombivili Municipal corporation. The work is suspended due to a stay order from the
Bombay High Court. The company has incurred a cost of Rs. 146.51 Millions till date as upfront
fees paid to KDMC and others. The management is confident of resuming operations on this
project and hence, in the opinion of the management the amount is not impaired. Consequently, no
provision for the same has been made in the accounts.

7. The Company has entered into a derivative transaction as under:

(Rs. in Millions)
Details of Derivative Contract Date of Termination Amount Profit on Mark to
Market as at
31.03.2010
INR US Interest Rate SWAP January 28, 2013 100.00 5.84
INR US Currency Rate SWAP June 08, 2011 11.20 0.10

In accordance with the accounting policy of the company, profit on mark to market aggregating to Rs. 5.93
Millions has not been recognized. However, loss on account of Mark to Market of the derivative
transaction aggregating to Rs.12.68 Millions has been reversed during the period, which is accounted under
the head 'Financial Charges'

8. Employee Stock Options

The Board of Directors of the company has approved creation of an Employee Stock Option on December
13, 2007. The company has granted stock options for 7,80,050 shares on December 15, 2007 at an exercise
price of Rs. 190 per share. Options granted have a vesting period of five years. The Compensation
Committee administers the plan. The details of the stock option plan are as under:

As At 31.03.2010 As At 31.03.2009

284
 Number of Exercise Number of Exercise
options Price options Price (Rs.)
(Rs.)
Outstanding at the beginning of the year
Loyalty Option 218,740 190 218,740 190
Growth Option 561,310 190 561,130 190
Granted during the Year:
Loyalty Option Nil Nil Nil Nil
Growth Option Nil Nil Nil Nil
Forfeited during the Year:
Loyalty Option 22,270 Nil Nil Nil
Growth Option 96,950 Nil Nil Nil
Exercise during the Year:
Loyalty Option Nil Nil Nil Nil
Growth Option Nil Nil Nil Nil
Outstanding at the end of the Year:
Loyalty Option 196,470 190 218,740 190
Growth Option 464,360 190 561,310 190
Exercisable at the end of the Year:
Loyalty Option Nil Nil Nil Nil
Growth Option Nil Nil Nil Nil

Guidance Note on ‘Accounting for employee share based payments’ issued by the Institute of Chartered
Accountants of India establishes financial accounting and reporting principles for employee share based
payment plans.

The Company has applied Intrinsic Value Method of Accounting. The difference between the Fair Value of
the Equity Share as at March 31, 2008 (as determined by the Category I Merchant banker) and the exercise
price is Rs. NIL. Accordingly no Compensation Cost needs to be amortised over the vesting period.

Had the Compensation Cost for the plan applied in a manner consistent with the fair value approach
described in the guidance note, the Company’s Net Income and Basic and Diluted Earnings Per Share as
reported would have reduced to the pro forma amounts as under:

For The Year Ended For The Year Ended

31.03.2010 31.03.2009
Net Profit as reported (After reduction of 803.67 348.13
Minority Share of Interest)
(Rs. in Millions)
Less:
Stock based employee Compensation 5.86 9.20
(Rs. in Millions)
Adjusted Pro forma (Rs. in Millions) 797.81 338.92
Basic Earnings Per Share as reported (Rs. Per 17.59 7.62
Share)
Pro forma Basic Earnings Per Share (Rs. Per 17.46 7.42
Share)
Basic Diluted Per Share as reported (Rs. Per 17.34 7.49
Share)
Pro forma Diluted Earnings Per Share (Rs. Per 17.21 7.29
Share)

285
 Loyalty Option:

For The Year Ended For The Year Ended

31.03.2010 31.03.2009
Outstanding at the beginning of the Year
Dividend Yield Nil Nil
Weighted Average Dividend Yield Nil Nil
Expected Life 2.50 – 6.51 2.50 – 6.51
Risk Free Interest Rates 7.76% - 7.84% 7.76% - 7.84%
Volatility Nil Nil
Weighted Average Volatility Nil Nil

Growth Option:

For The Year Ended For The Year Ended

31.03.2010 31.03.2009
Outstanding at the beginning of the Year
Dividend Yield Nil Nil
Weighted Average Dividend Yield Nil Nil
Expected Life 2.50 – 6.51 2.50 – 6.51
Risk Free Interest Rates 7.76% - 7.84% 7.76% - 7.84%
Volatility Nil Nil
Weighted Average Volatility Nil Nil

9. AS 15 – Employee Benefit-Gratuity & Leave Encashment

(i) Contribution to Provident Fund is charged to accounts on accrual basis. The Company operates a
defined contribution scheme with recognized provident fund. For this Scheme, contributions are
made by the company, based on current salaries, to recognized Fund maintained by the company.
In case of Provident fund scheme, contributions are also made by the employees. An amount of
Rs.8.26 Millions (Previous Period Rs. 7.30 Millions) has been charged to the Profit & Loss
Account on account of this defined contribution scheme.

(ii) The Company provides benefits to its employees under the Leave Encashment pay plan which is a
non-contributory defined benefit plan. The employees of the Company are entitled to receive
certain benefits in lieu of the annual leave not availed of during service, at the time of leaving the
services of the Company. The benefits payable are expressed by means of formulae which takes
into account the Salary and the leave balance to the credit of the employees on the date of exit.

(iii) The benefit of Gratuity is funded defined benefit plan. For this purpose the Company has obtained
qualifying insurance policy from Life Insurance Corporation of India.

(iv) Details Gratuity and Leave Encashment disclosure as required by AS-15 are detailed hereunder:

(Rs. in Millions)
As at As at As at As at
31.03.2010 31.03.2009 31.03.2010 31.03.2009
Gratuity Gratuity Leave Leave
Encashment Encashment
Present Value of Obligation 11.97 10.50 5.14 5.30
as at the beginning of the
year
Interest Cost 0.96 0.80 0.41 0.42
Current Service Cost 4.39 2.47 2.99 2.18
Benefits paid 0.34 0.31 0.45 0.58

286
 As at As at As at As at
31.03.2010 31.03.2009 31.03.2010 31.03.2009
Gratuity Gratuity Leave Leave
Encashment Encashment
Actuarial Gain / (Loss) 0.24 1.53 0.67 (2.18)
Present Value of 16.74 11.94 7.42 5.14
Obligations as at end of
year
Fair Value of Plan Assets at 14.49 13.75 Nil Nil
the beginning of the year
Expected Return on Plan 1.41 1.25 Nil Nil
Asset
Contributions 3.83 0.04 Nil Nil
Benefits paid 0.34 0.55 Nil 0.58
Fair Value of Plan Assets at 19.40 14.49 Nil Nil
end of year
Funded / Unfunded Status 2.66 2.55 Nil Nil
Actual Gain / (Loss) for the 0.24 1.53 0.67 (2.18)
year-Obligation
Actual Gain / (Loss) for the Nil (0.29) Nil Nil
year-Plan Assets
Total Gain / (Loss) for the 0.24 1.29 0.67 (2.18)
year
Amount to be recognized in
the Balance Sheet & Profit
& Loss Account:
Present Value of Obligations 16.74 11.94 7.42 5.14
as at the end of the year
Fair Value of Plan Assets as 19.40 14.49 Nil Nil
at the end of the year
Funded / Unfunded Status 2.66 2.55 (7.42) 5.14
Net Asset / (liability) 2.66 2.17 (7.42) (5.14)
recognized in the balance
sheet
Expenses recognized in the
Profit & Loss Account
Current Service Cost 4.39 2.47 2.99 2.18
Interest Cost 0.96 0.80 0.41 0.42
Expected Return on Plan 1.41 1.10 Nil Nil
Assets
Net Actuarial Gain / (Loss) 0.24 1.29 0.67 (2.18)
recognized in the year
Expenses recognized in the 3.69 0.74 2.76 0.56
Profit & Loss Account
Financial Assumptions as the
Valuation Date
Discount Rate (p.a.) 8.00% 8.00% 8.00% 8.00%
Salary Escalation (p.a.) 7.00% 7.00% 7.00% 4.00%
Withdrawal Rate (p.a.) 1.00% N.A. 1.00% 1.00%

10. AS 16 – Borrowing Cost

(Rs. in Millions)
Particulars 31.03.2010 31.03.2009
Interest Cost capitalized and charged to qualified assets Nil 5.84

287
 Particulars 31.03.2010 31.03.2009
during the year

11. AS – 17 – Segment Reporting

The Company has identified three reportable segments i.e. Construction and contract related activities,
BOT Projects, and Sale of Goods. Segments have been identified taking in to account the nature of
activities of the Company, differing risks and returns and internal reporting systems.
(Rs. in Millions)
Primary Segment Construction and BOT Sales of Total
Contract Goods
Revenue 5,526.76 1,653.35 775.59 7,955.70
(2,930.55) (1,444.56) (808.58) (5.183.69)
Segment Results 789.59 815.59 57.89 1,663.07
(279.81) (547.24) (37.42) (864.46)
Add: Unallocated other income 186.35
(149.92)
Less: Unallocated expenditure 672.09
(515.23)
Profit Before Tax 1,177.33
(499.15)
Less: Provision for
Current Tax 306.82
(110.59)
Deferred Tax 11.69
(5.55)
Add: Last Year Tax -
(-)
Net Profit After Tax 858.82
(383.01)
Segment Assets 4,083.86 12,831.61 256.32 17,171.79
(2,029.82) (8,316.53) (264.21) (10,610.56)
Corporate and other unallocable 3,455.25
assets (1,778.80)
Segment Liability 3,479.15 9,821.40 116.28 13,416.83
(1,260.58) (5,523.25) (87.94) (6,871.77)
Corporate and other unallocable 2,587.03
liabilities (2,044.78)
Capital Expenditure during the year 96.78 4,599.95 93.71 4,790.44
on Segment Assets (318.25) (4,998.04) (40.18) (5,356.47)
Unallocable Capital Expenditure 67.86
during year (8.45)
Depreciation Segment 52.14 582.92 26.10 661.16
(69.28) (502.62) (29.39) (601.29)
Note:
1. Figures in brackets denote Figures for previous year
2. Construction & Contracting Activity comprises execution of engineering and construction projects
to provide solutions in civil and electrical engineering (on turnkey basis or otherwise) to core /
infrastructure sectors.
3. BOT Activity relates to execution of the projects on long term basis comprising developing,
operating and maintaining the Infrastructure facility.
4. Sale of Goods comprises the activity of selling of Ready Mix Concrete (RMC), PCC Poles,
Software and Bitumen.

288
12. AS – 18 Related Party Transactions:

12.1 List of Related Parties

12.1.1 Parties where control exists (Associates and Joint Ventures)

™ Viva Infrastructures Pvt. Ltd.

™ Jayaswals Ashoka Infrastructure Pvt. Ltd.
™ Ashoka Valecha JV
™ Ashoka Bridgeways
™ PNG Tollway Pvt.Ltd.

12.1.2 Other parties with whom the Company has entered into transaction (s) during the year

A Key Management Personnel

™ Ashok M. Katariya
™ Satish D. Parakh
™ Sunil B Raisoni

B Enterprises in which Key Management Personnel / Directors have significant influence

™ Ashoka Buildwell & Developers Pvt. Ltd.

™ Ashoka Builders (Nasik) Pvt. Ltd.
™ Ashoka Construwell Pvt. Ltd.
™ Ashoka E-Tech
™ Shweta Agro
™ Ashoka Education Foundation
™ Ashoka Vastuvaibhav
™ Ashoka Engineering Co.
™ Jaora Nayagaon Toll Road Co. Pvt.Ltd.

C Directors and their relatives

™ Astha A. Katariya
™ Asha A. Katariya
™ Anjali Londhe
™ Satish Parakh (HUF)
™ AM Katariya (HUF)
™ Shubham Agencies
™ Ashish A Katariya

12.2 AS – 18 Related Party Transactions:

12.2.1 Transaction during the Year

(Rs. in Millions)
Sr. Nature of Associates Key Directors Enterprises in
No. Transactions and Joint Management Relatives which Key
Ventures Personnel Management Or
Directors have
significant
influence
(a) Contract Receipts:
i. Ashoka Valecha 102.38
– JV (276.41)
ii. PNG Tollway 47.91

289
Sr. Nature of Associates Key Directors Enterprises in
No. Transactions and Joint Management Relatives which Key
Ventures Personnel Management Or
Directors have
significant
influence
Pvt.Ltd. (-)
iii. Jaora Nayagaon 1,665.64
Toll Road (2,337.01)
Company Pvt. Ltd.
iv. Ashoka -
Education (0.77)
Foundation
(b) Sales of Goods /
Rendering of
Services :
i. Ashoka 1.03
Bridgeways (-)
ii. Ashoka 0.29
Education (-)
Foundation
iii. Ashoka E-Tech -
(0.10)
(c) Interest Received :
i. Ashoka 3.34
Bridgeways (-)

ii. Ashoka 1.82

Education (0.06)
Foundation
(d) Rent Received :
i. Ashoka 0.26
Education (0.26)
Foundation
(e) Sub Contract
Expenses :
i. Ashoka Vastu -
Vaibhav (1.07)
(f) Purchase of Goods
/ Availing of
Services :
i. Shubham -
Agencies (35.46)
(g) Salary Paid :
i. Ashok M. 8.26
Katariya (6.29)
ii. Satish D. Parakh 8.26
(6.29)
iii. Sunil B. Raisoni 2.49
(-)
iv. Ashish A. 1.85
Katariya (1.39)
v. Astha A. Katariya 0.54
(0.60)
vi. Aditya S. Parakh 0.06

290
Sr. Nature of Associates Key Directors Enterprises in
No. Transactions and Joint Management Relatives which Key
Ventures Personnel Management Or
Directors have
significant
influence
(-)
(h) Rent Paid :
i. Satish D. Parakh 1.18
(0.88)
ii. Satish D. Parakh 0.57
(HUF) (0.43)
iii. Asha A. Katariya 1.18
(0.88)
iv. Ashish A. 0.77
Katariya (0.43)
v. Astha A. Katariya 0.13
(0.10)
vi. Shweta V. 0.12
Kasera (-)
vii. Ashoka 0.40
Education (-)
Foundation
(i) Interest Paid :
i. Jayaswals Ashoka 20.03
Infrastructure Pvt. (21.02)
Ltd.
(j) Investment in
Capital :
i. PNG Tollway Pvt. 219.80
Ltd. (-)
ii. Jaora Nayagaon 26.59
Toll Road Co. Pvt. (14.18)
Ltd.
(k) Share Application
Money :
i. Jaora Nayagaon 59.20
Toll Road Co. Pvt. (17.30)
Ltd.
(l) Loan Given /
Advances Given :
i. Viva Infrastructure 58.05
Pvt. Ltd. (315.07)

ii. Satish D. Parakh -

(1.10)
iii. Satish D. Parakh -
(HUF) (0.50)
iv. Asha A. Katariya -
(1.10)
v. Ashish A. -
Katariya (0.65)
vi. Astha A. -
Katariya (0.10)
vii. Ashoka 2.50

291
Sr. Nature of Associates Key Directors Enterprises in
No. Transactions and Joint Management Relatives which Key
Ventures Personnel Management Or
Directors have
significant
influence
Construwell Pvt. (-)
Ltd.
Outstanding Payable Against :-
(m) Purchase of Goods
/ Availing of
Services :
i. Ashok M. 0.45
Katariya (0.09)
ii. Satish D. Parakh 0.31
(0.01)
iii. Sunil B. Raisoni 0.20
(-)
iv. Asha A. Katariya -
(0.08)
v. Ashish A -
.Katariya (0.05)
vi. Astha A. 0.02
Katariya (0.05)
vii. Satish D. Parakh -
(HUF) (0.01)
viii. Aditya S. 0.01
Parakh (-)
(n) Advance Received
Against Contract /
Sale of Goods /
Rendering of
Services :
i. Ashoka Valecha – -
JV (12.53)
ii.PNG Tollway Pvt. 580.54
Ltd (-)
(o) Loan Taken :
i. Jayaswals Ashoka 194.50
Infrastructure Pvt. (17.72)
Ltd.
(p) Capital Account :
i. Ashoka Buildwell 0.02
& Developers Pvt. (0.02)
Ltd.
ii.Ashoka Builders ( 0.18
Nashik ) Pvt. Ltd. (0.18)
Outstanding Receivable against :
(q) Sales of Goods /
Rendering of
Services :
i. Ashoka Valecha – 7.45
JV (-)
ii.Ashoka Education 0.06
Foundation (1.14)

292
 Sr. Nature of Associates Key Directors Enterprises in
No. Transactions and Joint Management Relatives which Key
Ventures Personnel Management Or
Directors have
significant
influence
iii. Jaora Nayagaon 266.10
Toll Road Co. Pvt. (92.94)
Ltd.
iv. Ashish A. 0.12
Katariya (0.15)
(r) Loans &
Advances Given :
i. Viva Infrastructure 322.86
Pvt. Ltd. (356.99)
ii.Ashoka 30.50
Bridgeways (27.50)
iii. Satish D. Parakh 1.10
(1.10)
iv. Satish D. Parakh 0.50
(HUF) (0.50)
v. Asha A. Katariya 1.10
(1.10)
vi. Ashish A. 0.65
Katariya (0.65)
vii. Astha A. 0.10
Katariya (0.10)
viii. Ashoka 2.92
Construwell Pvt. (-)
Ltd.
ix. Ashoka 19.84
Education (13.04)
Foundation
x. Ashoka Builders -
( Nashik ) Pvt. Ltd. (0.15)
xi. Shubham -
Agencies (3.52)
(s) Share Application
Money :
i. Jaora Nayagaon 63.77
Toll Road Co. Pvt. (31.16)
Ltd.
(Figures in brackets denote Figures for previous year)

13. AS – 19 – Accounting for Operating Leases

The Company has various operating leases for equipments and premises, the leases are renewable on
periodic basis and cancelable in nature.

14. AS – 20 Earning per Share

Particulars For The Year For The Year

Ended 31.03.2010 Ended 31.03.2009
Profit attributable to Equity Shareholders 803.67 348.13
(Rs.in Millions.)

293
 Particulars For The Year For The Year
Ended 31.03.2010 Ended 31.03.2009
No of Weighted Average Equity Shares outstanding 45,691,702 45,691,702
during the year (Basic)
No of Weighted Average Equity Shares outstanding 46,352,532 46,471,752
during the year (Diluted)
Nominal Value of Equity Shares (in Rs.) 10 10
Basic Earnings per Share (in Rs.) (Basic) 17.59 7.62
Basic Earnings per Share (in Rs.) (Diluted) 17.34 7.49

15. Deferred Tax - AS 22

The components of significant timing differences that resulted in deferred tax assets and liabilities are as
follows:
(Rs. in Millions)
Particulars As at As at
31.03.2010 31.3.2009
Difference in Depreciation on Fixed Assets 32.50 24.34
Other Timing Differences (2.42) (5.95)
Deferred Tax Liabilities 30.08 18.39

The company and some its subsidiaries and joint venture entities are claiming deduction under Section 80-
IA of The Income tax act, 1961. Significant timing differences that result in deferred tax assets/liabilities
are originating and reversing during the said tax holiday period. Consequently, the company has not
provided for any deferred tax asset/liability on such non taxable income.

16. AS – 29 – Details of Provisions

(Rs. in Millions)
Particulars Opening Provisions made Provision Closing
during the year reversed /
adjusted
Taxation 220.46 306.82 51.94 475.34
Leave encashment 5.14 2.72 0.44 7.42
Gratuity (2.52) 3.70 3.85 (2.66)
Provision for Doubtful Debts 13.99 12.35 0.80 25.54
Derivatives 12.68 - 12.68 -

Outflow in respect of above provisions both timing and certainty would depend on development or
outcome of these events.

17. Details of Investments Purchased and Sold During the year

Sr. Particulars Purchased Sold

No. No. of Units Value No. of Units Value
(Rs. in (Rs. in Mio)
Mio)
(a) Axis Liquid Fund- Retail 6,444.000 6.46 6,444.00 6.46
Growth
(b) Axis – Treasury Advantage 8,945.000 8.97 2,500.000 2.50
Fund- Retail Growth
(c) LICMF- Floating Rate Fund – 22,732,150.334 338.75 14,466,157.292 214.35
Short Term Plan - Growth
(d) LICMF – Liquid Fund 20,169,292.626 335.25 17,115,286.136 282.84
(e) LICMF- Saving Plus Fund- 8,93,171.155 8.93 8,93,171.155 8.93
Daily Dividend Plan

294
 Sr. Particulars Purchased Sold
No. No. of Units Value No. of Units Value
(Rs. in (Rs. in Mio)
Mio)
(f) LICMF- Saving Plus Fund- 82,866,224.471 1,183.44 76,258,048.568 1,119.64
Growth
(g) NLPIG Canara Robeco 13,632,708.592 200.00 13,632,708.592 200.19
Treasury Advantage
Institutional Fund – Growth
(h) Reliance Liquid Fund – 2,294,873.795 50.00 2,294,873.795 50.01
Treasury Plan- Institutional
Option- Growth
(i) Reliance Money Manager 41,207.572 50.01 41,207.572 50.02
Fund- Institutional Option –
Growth
(j) SBI Mutual Fund 1,083,006.000 15.20 1,083,006.000 15.22
(k) Templeton India Treasury 22.637.450 50.00 22,367.450 50.01
Management Account- Regular
Plan- Growth
(l) Templeton India Ultra Short 4,393,179.144 50.01 4,393,179.144 50.13
Bond Fund- Retail Plan -
Growth

18. Contingent Liabilities

(Rs. in Mio)
Sr. Particulars As at As at
No. 31.03.2010 31.3.2009
(a) Bank Guarantees and Letters of Credit issued by bankers in 3,537.32 2,472.29
favour of third parties
(b) Corporate Guarantee issued by the Company in favour of 12,396.57 12,151.46
Banks/ Financial Institutions for finance raised by Companies
under the same management.
(c) Claims against the Company not acknowledged as debts. 9.47 9.47
(d) Liability against capital commitments outstanding (net of 2,189.67 6,337.74
advances)
(e) Liability of Duty against Export Obligations 3.92 -
(e) Disputed Duties / Tax Demands (net of taxes paid) 278.23 26.31

19. The Company is carrying following projects as on the basis of developing, maintaining and operating
infrastructure facilities, directly or through its subsidiaries and Joint Ventures viz.:

Sr. Name of the Project Concession Period

No
Under Toll Collection
1 Nagar – Karmala Road Project 24th August 1999 to 4th November 2015
2 Sherinallah – Bridge 24th October 2000 to 22nd June 2015
3 Nashirabad Railway Over Bridge 24th July 2000 to 3rd November, 2010
4 Indore Edlabad Road Project 22nd September 2001 to 31s July 2017
5 Dewas Bye-pass Road Project 24th May, 2004 to 17th August 2015
6 Pune Shirur Road Project 6th July, 2005 to 6th July, 2015
7 Dhule Bye pass 28th August 1997 to 31st January 2011
8 Foot over bridges on Eastern Express 16th Aug 1997 to 15th May 2018
Highway - NH3
9 Nagar Aurangabad 18th December 2006 to 18 September 2017
10 Katni Bye-pass Road Project 19th Aug 2002 to 16-th Aug 2014

295
 Sr. Name of the Project Concession Period
No
Under Construction
1 Bhandara to Maharashtra Border 16th March 2007 to 15th March 2028
2 End of Durg Bypass to Chhatisgarh 21st July 2008 to 20th July 2028
Maharashtra Border

20. Details of Investments in Partnership Firms:

(Rs. in Mio)
Name of Partnership & Partners Share in Profit/ Capital As At Capital As At
Loss 31.03.2010 31.03.2009
Ashoka Bridge ways
 Ashoka Buildcon Ltd. 5.00% 31.13 13.48
 Ashoka Builders (Nasik) Pvt. Ltd. 95.00% 6.28 20.38

21. Suppliers/Service providers covered under Micro, Small Medium Enterprises Development Act, 2006 have
not furnished the information regarding filing of necessary memorandum with the appropriate authority. In
view of this, information required to be disclosed u/s 22 of the said Act is not given.

22. The Company has initiated steps to make an Initial Public Offering (IPO) of its Equity Shares. The Draft
Red Herring Prospectus (DRHP) is filed with the SEBI on September 22, 2009. Expenses incurred
amounting to Rs.6.37 Millions in connection with this issue is carried forward under ‘Other Current Assets’
and will be adjusted against the Share Premium to be received.

23. Expenditure in the nature of major maintenance for projects under BOT are accounted for in the year in
which the same are incurred.

24. The Company has got registered itself under The Employees “Provident Fund Act for discharging
provident liability of some of its subsidiaries and group companies.

25. Balance of Debtors, Creditors, Advances, Deposits, etc. are subject to confirmation and reconciliation if
any.

26. Figures pertaining to the subsidiary companies and joint ventures have been reclassified wherever
necessary to bring them in line with the company’s financial statements

27. Previous year Figures have been regrouped/ rearranged wherever necessary, to make them comparable with
current year Figures.

296
ANNEXURE VI

STATEMENT OF SECURED LOANS, AS RESTATED

(All Figures in Rupees Millions)

Particulars As At
March March March March March
31, 2010 31, 2009 31, 2008 31, 2007 31, 2006
From Banks
ABN Amro Bank N.V. 16.55 31.25 27.40 52.63 35.25
Bank of Maharashtra 3.65 3.46 3.03 0.91 2.59
Bank of Baroda 495.66 - - - -
Centurion Bank of Punjab Ltd. 2.10 5.02 8.13 11.82 5.40
DCB 0.81 1.38 - - -
HDFC Bank Ltd. 97.01 23.03 - 0.17 1.47
ICICI Bank Limited 21.83 78.98 158.88 218.46 114.60
IDBI Bank 398.00 265.30 - - -
Kotak Mahindra Bank Ltd. 36.37 12.38 18.54 24.12 -
Punjab National Bank 1,283.00 446.10 - - -
Ratanakar Bank - - - - 0.59
Standard Chartered Bank 79.87 132.44 107.44 81.30 0.94
State Bank of India 1,980.82 931.67 413.70 453.99 -
State Bank of Indore 193.00 - - - -
Axis Bank Ltd. 479.76 536.20 149.81 224.18 291.11
Canara Bank 20.80 28.59 36.77 44.27 52.12
Bank of India 291.74 349.10 397.69 201.07 -
Oriental Bank of Commerce 77.61 112.38 147.43 178.88 -
Allahabad Bank 70.23 98.21 126.31 150.89 -
Indian Overseas Bank 66.91 95.81 124.92 150.83 -
Indian Bank 42.58 59.27 76.09 90.91 -
Federal Bank 172.00 190.07 199.99 - -
(Term loans from Banks are secured against the future
toll collection, pledge of the Equity and Preference
Shares of the Directors and related concerns and
Current assets pertaining for the respective projects
Personal Guarantees of Mr. Ashok M Katariya, Mr.
Satish D Parakh and Mr. Sunil B Raisoni. Corporate
Guarantee of Ashoka Buildcon Ltd. Also Secured
against the Movable Properties including Plant &
Machineries, Receivables, Intangible Assets&
Company's interest in insurance contracts except
project Assets)

(Term loans are secured against the hypothecation of

Fixed Assets)

From Financial Institutions

Cholamandalam DBS Finance Ltd. - 0.14 0.93 1.97 1.81
Citicorp Finance (I) Ltd. - - 0.78 2.30 4.00
Kotak Mahindra Finance Ltd. - - - - (0.00)
Kotak Mahindra Prime Ltd. 8.02 - - - -
L & T Finance Ltd. - 0.24 1.60 2.89 4.09
Reliance Capital Ltd. 26.79 36.58 - - -
Srei Infrastructure Finance Ltd. 91.49 0.47 4.92 10.61 39.47

297
 Particulars As At
March March March March March
31, 2010 31, 2009 31, 2008 31, 2007 31, 2006
TATA Finance Ltd. - - 2.81 6.41 9.79
TATA Capital Ltd. 0.37 - - - -
TATA Motors Finance Ltd. 0.33 - - - -
SICOM Ltd. - - - - 123.74
IDFC Ltd. 2,128.01 2,152.68 1,947.11 1,581.70 736.68
IIFCL 1,316.99 467.60 - - -
HDFC Ltd. 2.06 - 12.68 17.26 21.63
SIDBI 70.04 98.07 126.10 150.94 -
(Term loans from Financial Institutions are secured
against the future toll collection, pledge of the Equity
and Preference Shares of the Directors and related
concerns and Current assets pertaining for the
respective projects Personal Guarantees of Mr. Ashok
M Katariya, Mr. Satish D Parakh and Mr. Sunil B
Raisoni. Corporate Guarantee of Ashoka Buildcon Ltd.
Also Secured against the Movable Properties including
Plant & Machineries, Receivables, Intangible Assets
& Company's interest in insurance contracts except
project Assets)

(Term loans from Financial Institutions are secured

against the hypothecation of the Fixed Assets)

Cash Credit / Bill Discounting

Axis Bank Ltd. - CC - 83.99 126.80 0.13 20.80
Bank of India - CC - 121.98 115.00 2.33 1.64
Bank of Maharashtra - CC 7.77 66.45 94.40 - -
Canara Bank - CC - 96.52 - - -
Corporation Bank - CC - 50.38 - 0.11 -
Federal Bank - CC - 20.95 37.07 23.61 -
Indian Bank - CC - 58.00 50.03 0.02 -
Indian Bank - DL - - 89.18 0.00 -
State Bank of India - CC - 182.40 115.44 - -
Union Bank of India - CA - - - (0.01) -
Corporation Bank - DL 0.28 - 24.08 - -
State Bank of India – STL 151.02 - - - -
(Secured against the Stock, Books debts and current
assets)

Overdraft Against Deposit

Canara Bank - OD 14.30 58.92 27.40 79.35 102.04
Bank of Maharashtra - OD - - 77.92 224.77 -
ICICI Bank Ltd. - OD - 0.00 - - -
State Bank of India - OD - 29.95 50.42 196.46 -
Axis Bank Ltd. - 0.23 - - -
Bank of India – OD 29.78 37.63 17.81 - -
(Secured against the pledge of Deposits)

TOTAL 9,677.57 6,963.79 4,918.61 4,185.30 1,569.76

298
ANNEXURE VII

STATEMENT OF UNSECURED LOANS, AS RESTATED

(All Figures in Rupees Millions)

Particulars As At
March 31, March 31, March 31, March 31, March 31,
2010 2009 2008 2007 2006
From Associates / JV
Viva Highways Pvt. Ltd. - - - - 686.36
*Jayaswal Ashoka Infrastructure Pvt. Ltd. 194.50 177.72 202.17 190.05 200.40
( Rate of Interest 10.91% )
Viva Infrastructure Pvt. Ltd. - - - 0.24 0.51

From Banks
*Yes Bank 100.00 - - - -
( Rate of Interest - 11.00% )

From Others
Rajdeep Publicity Pvt. Ltd. - - - 0.79
*IDFC Ltd. ( Rate of Interest - 0% ) 54.10 84.50 - - -
*IDFC Ltd. ( Rate of Interest – 6.25% ) 500.00 - - - -
*IIF - ( Rate of Interest - 0% ) 694.82 - - - -

TOTAL 1,543.42 262.22 202.17 190.29 888.06

* As per information and explanation given by the company, unsecured loans have been taken at floating rate of
interest and are payable on demand. Rate of interest indicated here are as of March 31, 2010.

299
ANNEXURE VIII

STATEMENT OF LOANS & ADVANCES, AS RESTATED

(All Figures in Rupees Millions)

Particulars As At
March March March March March
31, 2010 31, 2009 31, 2008 31, 2007 31, 2006
Advances and loans to Partnerships Firms / JVs - - - 0.77 200.42
under same Management
Advances and loans to Companies under same 376.12 430.83 21.34 33.53 25.49
Management
Advances Recoverable in cash or kind or for value 1,220.32 544.03 260.59 232.45 132.50
to be received
Interest Receivable 7.92 - - - -
Deposits 34.04 60.59 225.99 125.18 143.83
Advance Income Tax / Tax Deducted at Source 585.70 313.77 166.93 99.05 24.27

TOTAL 2,224.10 1,349.22 674.85 490.98 526.51

300
ANNEXURE IX

STATEMENT OF SUNDRY DEBTORS, AS RESTATED

(All Figures in Rupees Millions)

Particulars As At
March 31, March 31, March 31, March March
2010 2009 2008 31, 2007 31, 2006

Outstanding for period exceeding Six Months 380.17 95.08 108.93 71.35 95.72
Other Debtors 1,465.55 268.41 232.79 157.88 370.63
Less: Provision for doubtful debts 25.54 13.99 8.04 2.38 -

TOTAL (Balance considered good) 1,820.18 349.50 333.68 226.85 466.35

301
ANNEXURE X

STATEMENT OF INVESTMENTS, AS RESTATED

(All Figures in Rupees Millions)

Particulars Percentage to Total As At
Investments of March March March March March
March 31, 2010 31, 2010 31, 2009 31, 2008 31, 2007 31, 2006

A) Non-Trade (unquoted at
Cost)
a) National Saving Certificates 0.00% 0.03 0.23 0.19 0.19 0.19

b) Fully paid shares of Co- 0.05% 0.76 0.76 0.76 0.76 0.76
operative Banks / Societies

c) Jaora Nayagaon Toll Road 11.32% 168.39 141.80 - - -

Pvt.Ltd.

d) Equity Shares of Rs. 10/-

each fully paid in
Associates
Viva Highways Private 0.00% - - - - 92.99
Limited
Ashoka Infrastructure Limited 0.00% - - - - 8.16
Jayaswal Ashoka 21.71% 322.97 276.25 236.45 190.96 168.52
Infrastructure Pvt. Ltd.
Viva Infrastructure Pvt. Ltd. 7.26% 107.96 106.33 105.41 104.87 103.92
PNG Tollway Pvt. Ltd. 14.63% 217.68 0.03 - - -
(erstwhile L & T PNG
Tollway Pvt. Ltd.)

e) Preference Shares fully

paid in Associates
12% of Rs. 10/- each of 0.00% - - - - 228.12
Ashoka Infrastructure Ltd.
12% Preference Share of 22.44% 333.81 333.81 333.81 333.81 152.63
Rs.100/- each of Viva
Infrastructure Pvt. Ltd.
12%Preference Shares of Rs. 1.91% 28.35 28.35 28.35 28.35 -
100/- each of Jayaswals
Ashoka Infrastructure Pvt.
Ltd.

f) Investment in Joint
Venture / Partnership Firms
Ashoka Bridgeways 2.09% 31.13 13.51 8.22 2.40 -

g) Subscription to
Memorandum of Association
in
Ashoka Highways ( Bhandara) 0.00% - - - 0.45 -
Ltd.
Ashoka Marg Nirman ( Durg ) 0.00% - - - 0.45 -
Ltd.

302
 Particulars Percentage to Total As At
Investments of March March March March March
March 31, 2010 31, 2010 31, 2009 31, 2008 31, 2007 31, 2006

B) Trade (Quoted at Cost)

177903 Shares of Glory 0.00% - - 3.35 - -
Polyfilm Ltd. Rs. 48 per share

C) Unquoted Others ( At
Cost )
Mutual Fund
LIC MF Floating Rate Fund- 8.40% 125.00 0.01 - 0.08 -
Short term Plan-Growth Plan
LIC MF Liquid Fund – 3.46% 51.50 - - - -
Growth Plan
LIC Saving Plus Fund-Growth 4.53% 67.40 - - - -
Plan
Axis Treasury Advantage 0.43% 6.46 - - - -
Fund – Retail Growth

D ) Immovable Properties & 1.74% 25.95 9.87 - - -

TDR

TOTAL 100.00% 1,487.39 910.95 716.54 662.32 755.29

303
ANNEXURE XI

STATEMENT OF CURRENT LIABILITIES AND PROVISIONS, AS RESTATED

(All Figures in Rupees Millions)

Particulars As At
March 31, March 31, March 31, March 31, March 31,
2010 2009 2008 2007 2006

Sundry Creditors 2,330.41 993.11 568.27 221.66 291.54

Advances from Customers 738.09 65.08 49.18 96.38 53.47
Interest Accrued But Not Due 22.66 62.40 - - -
Other Liabilities 840.97 296.10 68.70 251.92 39.17

Provisions:-
For Income Tax 463.63 206.98 99.28 48.86 15.54
For Fringe Benefit Tax - 11.03 8.38 3.50 1.48
Provision for Unencashed Leave 7.33 5.14 5.30 5.88 2.28
Provision for Derivative Loss - 12.68 32.25 - -

TOTAL 4,403.09 1,652.52 831.37 628.20 403.48

304
ANNEXURE XII

STATEMENT OF OTHER INCOME, AS RESTATED

(All Figures in Rupees Millions)

Particulars Year Ended
March 31, March 31, March 31, March 31, March 31,
2010 2009 2008 2007 2006

Interest (Including TDS ) 116.34 87.28 108.60 101.69 28.80

Miscellaneous Income 19.38 21.61 20.71 15.71 19.81
Claim / Rebate and Relief - - - 1.20 -
Profit from JV & Partnership Project 45.88 0.31 0.36 0.08 (4.40)
Profit from Associate Companies - 40.72 46.02 22.37 -
Hire charges of Machinery / Vehicle - - 17.56 22.64
Profit on Derivatives - - - 0.19 -
Profit on Sale of Investments 4.75 - - - -

TOTAL 186.35 149.92 175.69 158.80 66.85

305
ANNEXURE XIII

STATEMENT OF CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS

CONTINGENT LIABILITIES

(All Figures in Rupees Millions)

Particulars As At
March March March March March
31, 2010 31, 2009 31, 2008 31, 2007 31, 2006

Bank Guarantees and Letters of Credit issued 3,537.32 2,472.29 919.58 1,316.30 692.12
by bankers in favour of third parties

Corporate Guarantee issued by the Company 12,396.57 12,151.46 4,087.46 629.15 3,203.01
in favour of Banks/ Financial Institutions for
finance raised by Companies under the same
management
Claims against the Company not 9.47 9.47 9.47 9.37 9.37
acknowledged as debts.
Liability of “Duty against Export 3.92 - - - -
Obligations”
Disputed tax demands (net of taxes paid) 278.23 26.31 78.80 9.70 0.00

TOTAL 16,225.51 14,659.53 5,095.31 1,964.52 3,904.50

CAPITAL COMMITMENTS

(All Figures in Rupees Millions)

Particulars As At
March 31, March 31, March 31, March March 31,
2010 2009 2008 31, 2007 2006

Liability against capital commitment 2,189.67 15.65 118.55 1,078.19 718.91

outstanding (Net of Advances )

TOTAL 2,189.67 15.65 118.55 1,078.19 718.91

306
ANNEXURE XIV

STATEMENT OF DIVIDENDS DECLARED / PAID / PROPOSED

(All Figures in Rupees Millions)

Particulars As At
March 31, March 31, March 31, March 31, March 31,
2010 2009 2008 2007 2006
NIL NIL NIL NIL NIL
TOTAL NIL NIL NIL NIL NIL

307
ANNEXURE XV

STATEMENT OF ACCOUNTING RATIOS, AS RESTATED

Particulars March March March March March

31, 2010 31, 2009 31, 2008 31, 2007 31, 2006
(A) Networth (Rs. in Millions) 4,623.18 3,472.80 3,113.22 2,873.55 1,471.50

(B) Net Profit attributable to 803.68 348.14 330.83 242.38 42.59

Shareholders (Rs. in Millions)

(C ) No. of Shares outstanding at 45,691,702 45,691,702 45,691,702 5,607,881 4,326,784

the end
(D) Weighted average number of 45,691,702 45,691,702 45,043,526 38,834,525 30,287,488
shares outstanding

(E) Weighted average number of 46,352,532 46,471,752 45,420,373 38,834,525 30,287,488

shares outstanding (Diluted)

(B/D) Earnings per Share (EPS) (Rs.) 17.59 7.62 7.35 6.24 1.41
- -
(B/E) Earnings per Share - Diluted 17.34 7.49 7.29 6.24 1.41
(EPS) (Rs.)
- -
(B/A) Return on Net worth (%) 17.38% 10.02% 10.63% 8.43% 2.89%
- -
(A/C) Net Asset Value per Share 101.18 76.01 68.14 512.41 340.09
(Rs.)

Notes:
1. The above ratios are calculated as under
Net profit after tax, as restated, attributable to equity shareholders
EPS = ---------------------------------------------------------------------------------------------
Weighted average number of equity shares outstanding during the period

Net profit after tax, as restated

Return on Net worth = -----------------------------------------------------------------
Net worth, as restated, at the end of the period

Net worth, as restated, at the end of the period

Net Asset Value per Share = ------------------------------------------------------------------------------------
Number of equity shares outstanding at the end of the period

2. The Figures disclosed above are based on the restated financial information of Earnings per Share (EPS)
calculations are done in accordance with the Accounting Standard 20, Earnings per Share' issued by
Institute of Chartered Accountants of India.

308
ANNEXURE XVI

STATEMENT OF CAPITALISATION AS AT March – 2010

(All Figures in Rupees Millions)

Particulars Pre Issue Post Issue*
As At
31-March-2010

- Long Term Debt 9,474.42

- Short Term Debt 1,746.57
Share holders' funds :
Share Capital 581.30
Share Premium on Dilution of Subsidiary Shareholding 415.48
Security Premium 1,359.41
Preference Share redemption Reserve 166.54
Profit and Loss Account 2,100.45
Less :
Preference Share 124,39
Preference Share redemption Reserve 166.54
Miscellaneous expenditure (to the extent not written off )
Total Share holders' funds 4,332.25

Long Term Debt to Equity 2.19:1

309
ANNEXURE XVII

TRANSACTIONS WITH RELATED PARTIES

1 Parties where control exists (Associates and Joint Ventures)

™ Viva Infrastructures Pvt. Ltd.

™ Jayaswals Ashoka Infrastructure Pvt. Ltd.
™ Ashoka Valecha JV
™ Ashoka Bridgeways
™ PNG Tollway Pvt. Ltd.

2 Other parties with whom the Company has entered into transaction (s) during the year

A Key Management Personnel

™ Ashok M. Katariya
™ Satish D. Parakh
™ Sunil B Raisoni

B Enterprises in which Key Management Personnel / Directors have significant influence

™ Ashoka Buildwell & Developers Pvt. Ltd.

™ Ashoka Builders (Nasik) Pvt. Ltd.
™ Ashoka Construwell Pvt. Ltd.
™ Ashoka E-Tech
™ Shweta Agro
™ Ashoka Education Foundation
™ Ashoka Vastuvaibhav
™ Ashoka Engineering Co.
™ Jaora Nayagaon Toll Road Co. Pvt. Ltd.

C Directors and their relatives

™ Astha A. Katariya
™ Asha A. Katariya
™ Anjali Londhe
™ Satish Parakh (HUF)
™ AM Katariya (HUF)
™ Shubham Agencies

310
 ™ Ashish A Katariya
(All Figures in Rupee Millions)
Particulars Associates And Joint Ventures Key Management Personnel
Mar-10 Mar-09 Mar-08 Mar-07 Mar-06 Mar-10 Mar-09 Mar-08 Mar-07 Mar-06
Contract Receipts 150.29 276.45 441.47 317.26 582.75
Sub Contract Payments
Reimbursement of expenses paid 0.27 0.03
Reimbursement of Exp. Received 2.76
Salary Paid 19.01 12.58 14.02 12.04 9.35
Rent Paid 1.18 0.88
Retainership Paid
Commission Paid
Machinery / Vehicle Charges Paid 0.51
Machinery / Vehicle Charges Received 0.03 0.08
Repairs & Maintenance
Interest Paid 20.03 21.02 22.78 17.38 44.54 0.98
Interest Received 3.34 11.25 0.01
Sale of Material 1.03 0.63 0.47 49.92
Purchase of Material 1.45 0.32
Investment in
- Equity / Pref Shares 219.80 0.05 58.00 0.01
- Share Application
Share Application Received 22.85
Share Application Refund 0.38
Purchases of shares 224.41 4.43
Guarantees Issued 765.00 5.59
Guarantees Received
Loan Taken 249.83 816.90 21.28 1.67
Loans Repaid
Loans Given 58.05 315.03 161.42 1.33 0.80
Loans Refund 246.22 11.55
Outstanding Payable
- for purchases 18.58 0.96 0.11 1.31
- for loans 194.50 177.72 228.60
- Advance Received 580.54

311
 Particulars Associates And Joint Ventures Key Management Personnel
Mar-10 Mar-09 Mar-08 Mar-07 Mar-06 Mar-10 Mar-09 Mar-08 Mar-07 Mar-06
Outstanding Receivables
- For Sales of Goods/ Rendering services 7.45 37.45
- Advance Paid Against Contract
- For Loan 353.36 384.46 166.21 1.10

312
 Particulars Director and Their Relatives Enterprise Key Management Personnel
Mar-10 Mar-09 Mar-08 Mar-07 Mar-06 Mar-10 Mar-09 Mar-08 Mar-07 Mar-06
Contract Receipts 1,665.64 2,377.78 28.48
Sub Contract Payments 1.07 0.71 39.34 191.52
Reimbursement of expenses 2.48
paid
Reimbursement of Exp. 0.58
Received
Salary Paid 2.45 0.60 0.49 0.19
Rent Paid 2.77 1.84 0.36 0.40
Rent Received 0.26
Retainership Paid
Commission Paid 0.37
Machinery / Vehicle 1.70 0.25 0.90
Charges Paid
Machinery / Vehicle 0.74 0.80 0.73
Charges Received
Repairs & Maintenance 1.05
Interest Paid 0.98 2.27
Interest Received 0.28 1.82 10.22 0.57
Sale of Material 0.29 0.10 3.15 7.91 3.64
Purchase of Material 87.13 35.46 9.17 6.19 7.37
Investment in
- Equity / Pref Shares 26.59
- Share Application 59.20
Share Application Received
Share Application Refund
Purchases of shares 1.04 400.67
Guarantees Issued 41.49
Guarantees Received 1,950.00
Loan Taken 0.23 32.09 58.00
Loans Repaid 30.00
Loans Given 0.15 0.30 2.50 10.66 183.62
Loans Refund 8.65
Outstanding Payable

313
 Particulars Director and Their Relatives Enterprise Key Management Personnel
Mar-10 Mar-09 Mar-08 Mar-07 Mar-06 Mar-10 Mar-09 Mar-08 Mar-07 Mar-06
- for purchases 0.03 0.19 6.37 5.12
- for loans 0.04
- Advance Received
-Capital A/c. 0.20
Outstanding Receivables
- For Sales of Goods / 0.12 266.16 95.59 28.74
Rendering services
- Advance Paid Against 3.67
Contract
- For Loan 2.35 22.76 19.21
Share Application Money 63.77

314
ANNEXURE XVIII

STATEMENT OF SEGMENT REPORTING

(All Figures in Rupee Millions)

Sr. Particulars March 31, March 31, March 31, March 31, March 31,
No. 2010 2009 2008 2007 2006
1 Segment Revenue
a) Construction and 5,526.77 2,930.55 1,376.92 2,229.00 1,165.26
contract related Activity
b) BOT 1,653.35 1,444.56 1,172.93 976.31 358.30
c) Toll Collection Contract - - - 345.40 20.42
d) Sales of Goods 775.59 808.57 693.11 480.18 273.00
Total 7,955.71 5,183.68 3,242.96 4,030.88 1,816.98
Less : Intersegment - - (15.28) - (25.62)
Net sales / income from 7,955.71 5,183.68 3,227.68 4,030.88 1,791.36
operations

2 Segment Results
a) Construction and 789.60 279.81 404.10 212.43 89.83
contract related Activity
b) BOT 815.59 547.23 579.64 448.17 31.27
c) Toll Collection Contract - - - 16.88 2.49
d) Sales of Goods 57.89 37.42 29.87 7.87 (8.54)
Total 1,663.08 864.46 1,013.61 685.35 115.05
Less : Intersegment (0.13) (31.33)
Add : Unallocated income 186.35 149.92 175.69 158.80 66.85
Less : Unallocated 672.09 515.23 786.17 582.28 86.75
Expenses
Profit before Tax 1,177.34 499.15 403.13 262.00 63.81
Less :Adjustments - - (1.05) 0.17
Less : Provisions for 306.82 110.29 51.63 29.88 17.70
Current Taxes
Less : Provisions for 11.69 5.55 (19.01) (6.72) 14.98
Deferred Taxes
Add : Last year Taxes - 0.30 5.36 (4.36) 0.32
Less : Share of Profit / 55.15 34.88 34.31 1.87 (11.94)
(Loss) Transferred to
minority
Net Profit after Tax 803.68 348.13 330.84 242.38 42.59

3 Segment Assets
a) Construction and 4,083.86 2,029.82 1,533.52 1,325.23 1,559.18
contract related Activity
b) BOT 12,831.61 8,316.53 5,488.80 4,650.55 1,830.00
c) Toll Collection Contract - - - 89.12 -
d) Sales of Goods 256.32 264.21 347.96 316.81 148.47
Total 17,171.79 10,610.56 7,370.28 6,381.70 3,537.65
Add : Corporate and other 3,455.25 1,778.80 1,762.62 1,653.55 878.29
unallocable Assets
20,627.04 12,389.36 9,132.90 8,035.25 4,415.94
4 Segment Liabilities
a) Construction and 3,479.15 1,260.58 1,658.96 836.72 618.54
contract related Activity

315
Sr. Particulars March 31, March 31, March 31, March 31, March 31,
No. 2010 2009 2008 2007 2006
b) BOT 9,821.40 5,523.25 3,802.02 3,273.69 1,258.59
c) Toll Collection Contract - - - 0.41 -
d) Sales of Goods 116.28 87.94 125.57 96.80 76.81
Total 13,416.83 6,871.77 5,586.55 4,207.62 1,953.94
Add : Corporate and other 2,587.03 2,044.78 433.14 954.20 990.50
unallocable Liabilities
16,003.86 8,916.55 6,019.69 5,161.81 2,944.43
5 Capital Expenditure
a) Construction and 96.78 318.25 216.74 330.85 178.20
contract related Activity
b) BOT 4,599.95 4,898.04 2,187.27 494.40 1.51
c) Toll Collection Contract - - - - -
d) Sales of Goods 93.71 40.18 29.86 82.41 32.68
Unallocable Capital 67.86 8.45 30.83 - -
Expenditure
Total 4,858.30 5,264.92 2,464.70 907.65 212.38

6 Depreciation
a) Construction and 52.14 223.47 69.28 54.44 47.28
contract related Activity
b) BOT 582.92 460.08 502.62 430.29 183.66
c) Toll Collection Contract - - - - -
d) Sales of Goods 26.10 27.66 29.39 17.75 11.08
Total 661.16 711.21 601.29 502.48 242.02

Note:

1. Figures in brackets denote Figures for previous year

2. Construction & Contracting Activity comprises execution of engineering and construction projects
to provide solutions in civil and electrical engineering (on turnkey basis or otherwise) to core /
infrastructure sectors.

3. BOT Activity relates to execution of the projects on long term basis comprising developing,
operating and maintaining the Infrastructure facility.

4. Sale of Goods comprises the activity of selling of Ready Mix Concrete (RMC), PCC Poles,
Software and Bitumen.

316
 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS ON A CONSOLIDATED BASIS

You should read the following discussion of our financial condition and results of operations on a
consolidated basis together with our consolidated financial statements as at and for the years ended March
31, 2006, 2007, 2008, 2009 and 2010 and the report thereon and annexures thereto, which have been
restated in accordance with paragraph B(1) of Part II of Schedule II to the Companies Act and with the
SEBI Regulations, 2009, and which are all included in this Prospectus. You should also read the section
titled “Risk Factors” on page xii of this Prospectus, which discusses a number of factors and contingencies
that could impact our financial condition and results of operations. This discussion also contains forward
looking statements and you should refer to the section titled “Forward-Looking Statements” on page xi of
this Prospectus.

Our financial statements are prepared in conformity with Indian GAAP. Indian GAAP differs in certain
significant respects from IFRS, U.S. GAAP and other accounting principles and auditing standards in other
countries with which prospective investors may be familiar.

Overview

We build and operate roads and bridges in India on a build, operate and transfer (“BOT”) basis. We believe
we currently operate one of the highest number of toll-based BOT projects in India. In addition, to BOT
projects, we also (1) engineer and design, procure the raw materials and equipment for and construct roads,
bridges, distribution transformers, electricity substations, commercial buildings, industrial buildings and
institutional buildings for third parties as well as perform maintenance for third parties, (2) manufacture
and sell ready-mix concrete (“RMC”), bitumen and pre-cast concrete poles and (3) collect tolls on roads
and bridges owned and constructed by third parties.

Our business is organised into four divisions:

x the BOT division;

x the engineering, procurement and construction (“EPC”) division;

x the RMC and bitumen division; and

x the toll collection contract division.

In order to capitalize on our EPC commercial building experience, we entered into two agreements in
September 2008 to develop two shopping malls in Kalyan, Maharashtra on a BOT basis. The construction
of these projects has not yet begun. These two malls will have an estimated total leasable area of 12,453 sq.
metres. These two shopping malls will be the first commercial buildings we will have built to lease out to
third parties. We do not currently plan to undertake any further development of commercial property.

In order to capitalize on our EPC power experience, we bid for and were awarded the contract to develop a
1,500 KW per hour hydro electric power plant in Waghur, Maharashtra, on a BOOT basis. The
Government of Maharashtra issued us a letter of allotment for the power plant project in April 2010 but we
are yet to enter into the formal agreement for the project.

Factors Affecting our Results of Operations, Cash Flows and Financial Condition

Changes in government policies with respect to infrastructure: Our business is substantially dependent on
road and bridge projects in India undertaken or awarded by governmental authorities and other entities
funded by governments. Any change in government policies resulting in a decrease in the amount of road

317
and bridge projects undertaken or a decrease in private sector participation in road and bridge projects may
adversely affect our business and results of operations.

Timing and terms of EPC contracts: The revenue from our EPC division, which represented 67.88% of our
total income in fiscal 2010, is derived primarily from contracts awarded to us on a project-by-project basis,
and our results of operations and cash flows can fluctuate materially from period depending on the timing
of contract awards. Although we have been successful in obtaining new contracts and growing the size of
our order book (which was Rs. 16,153.64 million as at May 31, 2010 compared with Rs. 16,657.67 million
as at March 31, 2010 and Rs. 17,034.90 million as at March 31, 2009), we cannot predict when we will be
awarded new EPC contracts and our ability to win new EPC contracts depends on various factors such as
the demand for the EPC services we provide and competition for those contract awards.

Our Order Book as at May 31, 2010 of Rs. 16,153.64 million comprised Rs. 14,089.22 million in work to
be carried for third parties and associates and Rs. 2,064.42 million in estimated construction costs for our
BOT projects. Construction costs for our BOT projects still under construction are shown in our financial
statements as capital works in progress in our statement of assets and liabilities and as such Rs. 2,064.42
million of our Order Book as at May 31, 2010 does not represent potential revenue for our EPC division.
The part of our Order Book which relates to EPC contracts with third parties and associates does not
necessarily indicate future earnings related to the performance of that work and if we do not achieve our
expected margins or if we suffer losses on one or more of these contracts, this could reduce our income or
cause us to incur a loss. Although projects in the Order Book represent business that we consider firm,
cancellations or scope adjustments may occur. Due to changes in project scope and schedule, we cannot
predict with any certainty when or if the projects in our Order Book will be performed and will generate
revenue.

General risks relating to the long-term nature of our EPC contracts and BOT projects: Infrastructure
projects involve agreements that are long-term in nature (as much as three years in EPC contracts and five
to 30 years in BOT road projects). All long-term projects have inherent risks associated with them and
involve variables that may not necessarily be within our control. Accordingly, we are exposed to a variety
of implementation and other risks, including construction delays, material shortages, unanticipated cost
increases, cost overruns, inability to negotiate satisfactory arrangements with joint venture partners, and
disagreements with our joint venture partners. In addition, the long-term nature of our contracts exposes us
to increased risk of unforeseen business and industry changes which could have a material adverse effect
on our business, financial condition and results of operations.

Unanticipated increases in cost of labour, materials and other inputs for our EPC division: The cost of
labour, materials and other inputs constitutes a significant part of our operating expenses for our EPC
division. The construction of projects we work on generally takes more than a year and can take as much
as four years. In addition, especially for BOT projects, there is often a delay of more than 180 days between
the submission of our tender and the beginning of construction work. Due to the often long-period between
the submission of our tender and completing the construction of a project, the cost of labour, materials and
other inputs may increase more than we expected and our actual expenses in constructing a project may
vary substantially from the assumptions underlying our bid. Our ability to pass on unanticipated increases
in the price of labour, construction materials, and other inputs may be limited in the case of EPC fixed-
price contracts, contracts with limited price escalation provisions and BOT projects, which may have a
material adverse effect on our results of operations and financial condition.

Changes in the price of oil: When we tender for a contract to construct a bitumen road we assume that the
cost of bitumen to pave the road will constitute between 15 -16% of the costs of constructing the road. The
price of bitumen is linked to the price of oil. The price of oil has been volatile and we currently do not
hedge our exposure to changes in the price of oil. Our ability to pass on unanticipated increases in the price
of bitumen may be limited in the case of EPC fixed-price contracts, contracts with limited price escalation
provisions and BOT projects, which may have a material adverse effect on our results of operations and
financial condition. On the other hand, if the price of bitumen decreases from the price assumed in our
tender, our profit from the project will increase from that expected in the tender.

318
Exposure to larger projects: We are increasingly bidding for and winning contracts for large-scale
infrastructure projects. There are various risks associated with the execution of large-scale projects. Large
contracts may take up an increasingly large part of our portfolio, increasing the potential volatility of our
results through increased exposure to individual contract risks. Managing large-scale integrated projects
may also increase the potential relative size of cost overruns and negatively affect our operating margins.
In addition, we may need to execute large-scale projects through joint ventures with other companies,
which exposes us to the risk of default by our joint venture partners.

Differences between forecasted and actual traffic volumes: Our business is substantially dependent on us
accurately forecasting traffic volumes for toll-based BOT projects and contracts to collect tolls. Projects
that we undertake on a BOT basis involve agreements that are long-term in nature, usually involving a
Concession Period of between from five to 30 years. When preparing our tender for a toll-based BOT
project (a road or a bridge) or a contract to collect tolls, we need to forecast the traffic volume for the road
or bridge in order to work out our expected revenue over the Concession Period or the contract period, as
applicable, in order to arrive at the price we are going to bid to pay or be paid for taking on such BOT
project or contract. Any material decrease between the actual traffic volume and our forecast traffic volume
for a toll-based BOT project or a contract to collect tolls could have a material adverse effect on our cash
flows, results of operations and financial condition.

Contractual restrictions on toll increases: Our ability to increase tolls on a BOT project is limited by the
terms of the contract governing the BOT project and future increase in tolls may be inadequate to meet
increases in maintenance and operating costs and debt payments over a project’s life.

Access to capital resources: Our business requires a large amount of working capital. In many cases,
significant amounts of working capital are required to finance the purchase of materials, the hiring of
equipment and the performance of engineering, construction and other work on projects before payments
are received from clients. In certain cases, we are contractually obligated to our clients to fund the working
capital requirements of our projects. We require a larger amount of working capital for our EPC power
work compared with our EPC road work as our contracts for our EPC power work typically provide for
payment on completion of different parts of a job rather than time-based payment, which is typical for our
EPC road work. As it can take up to 12 months to complete an EPC power project, we are required to fund
the costs for that time before we receive payment from the client. As we expect to increase the amount of
EPC power work we undertake, we will require a greater amount of working capital than before. In
addition, we require significant debt to finance our BOT projects. If we experience insufficient cash flows
to allow us to make required payments on our debt or fund working capital requirements, there may be an
adverse effect on our business and results of operations.

Out of the 20 BOT projects constructed for the Company and its subsidiaries, partnerships and associates,
we have leveraged 15 of these by borrowing additional amounts on completion of the projects in order to
generate additional working capital. If we are unable to secure additional debt on reasonable interest rates
and terms on completing the construction of a BOT project, it could have a material adverse effect on our
business, cash flow, results of operations and financial condition.

Changes in interest rates: As at March 31, 2010, we had Rs. 11,220.99 million in outstanding debt, Rs.
10,238.07 million, or 91.24%, of which, consisted of variable rate debt obligations. Increases in interest
rates will have an adverse effect on our results of operations. Likewise, decreases in interest rates will have
a positive effect on our results of operations. Interest charges for loans taken to finance construction of a
BOT project are shown in our financial statements as capital work in progress until such time as the project
is fully constructed and ready for use.

Our ability to attract and retain employees: Our ability to meet future business challenges depends on our
ability to attract, recruit and retain talented and skilled personnel. We are highly dependent on our senior
management, our Directors and other key personnel, including skilled project management personnel. A
significant number of our employees are skilled engineers, and we face strong competition to recruit and
retain skilled and professionally qualified staff. Due to the limited pool of available skilled personnel,
competition for senior management and skilled engineers in our industry is intense. We could experience

319
difficulties in attracting, recruiting and retaining an appropriate number of managers and engineers for our
business needs. In the last year, wages for skilled personnel have increased by as much as 30%. We may
need to further increase our pay structures to attract and retain such personnel. Our future performance will
depend upon the continued services of these persons.

Competition: We operate in a competitive environment. The competition for EPC contracts and BOT
projects varies depending on the size, nature and complexity of the project and on the geographical region
in which the project is to be executed. Some of the EPC businesses and BOT project businesses we
compete against have greater financial resources, economies of scale and operating efficiencies.

Co-operation of third parties: Timely and successful completion of our projects is dependent upon our
performance and, in the case of some of our projects, the cooperation of our joint venture partners, other
members of special purpose vehicles and sub-contractors. If our joint venture partners, members of special
purpose vehicles or sub-contractors default on their obligations and they do not have adequate financial
resources to meet their indemnity obligations to us, it could have a material adverse effect on results of
operations and financial condition.

Changes in income tax laws: Presently, infrastructure development projects enjoy certain benefits under
Section 80IA of the Income Tax Act, 1961. For details, see the section entitled “Statement of Tax Benefits”
on page 63 of this Prospectus. As a result of these incentives, most of our BOT projects are subject to
relatively low tax liabilities. Our income tax exemptions for various BOT projects currently expire at
various points of time. There is no assurance that the BOT projects will continue to enjoy the tax benefits
under Section 80IA in the future. For example, the Indian Finance Ministry issued a clarification in the
budget for fiscal 2007 on certain benefits not being applicable to contractors for construction of
infrastructure projects (only the company developing the infrastructure project may benefit), which has a
retrospective effect, although this clarification had no impact on our tax liability. When our tax incentives
expire or terminate, our tax expense will materially increase, reducing our net profits. Further, the GOI
could enact laws in the future that may adversely impact our tax incentives and consequently, our tax
liabilities and net profits.

For a discussion of other factors that could affect our results of operations, cash flows and financial
condition, please see the section entitled “Risk Factors” on page xii of this Prospectus

Principles of Consolidation

The principles of consolidation are set forth in the section titled “Auditor’s Report on Consolidated
Financial Information” on page 269 of this Prospectus.
The list of entities that are included in the consolidated financial statements and the Company’s beneficial
holdings therein are set forth below:

Name of Entity % Beneficial Ownership as at March 31,

2006 2007 2008 2009 2010
Ashoka Infrastructure Limited 30.35 100(1) 100 100 100
Ashoka Infraways Private Limited 65.55 100(2) 100 100 100
Viva Highways Private Limited 6.29 74.00(3) 74.00(3) 74.00(3) 74.00(3)
Ashoka-DSC Katni Bypass Road
Private Limited 49.00 99.89(4) 99.89 99.89 99.89
Ashoka High-Way Ad 99.99(5) 99.99 99.99 99.99 99.99
Ashoka Infrastuctures 99.99(6) 99.99 99.99 99.99 99.99
Ashoka Highways (Durg) Limited(7)
- 89.00 89.00 90.00 60.19
Ashoka Highways (Bhandara)
Limited(8) - 89.00 89.00 90.00 53.16
Ashoka Pre-Con Private Limited - - - 51.00(9) 50.99
Ashoka Technologies Private - - - 99.80(10)

320
 Name of Entity % Beneficial Ownership as at March 31,
2006 2007 2008 2009 2010
Limited 99.80
Viva Infrastructure Private Limited 40.00 49.00(11) 49.00 49.00 49.00
Jayaswal Ashoka Infrastructure
Private Limited (12) 48.83 50.00 50.00 50.00 50.00
L&T Tollway Private Limited
- - - 26.00(13) 26.00
(1) The Company’s percentage ownership increased to 67.82% with effect from April 14, 2006 and 100% from May 20, 2006.
(2) The Company’s percentage ownership increased to 100% with effect from April 8, 2006.
(3) The Company’s percentage ownership increased to 12.50% on 16 May 2006 and 74.00% with effect from May 20, 2006.
The Company also owns 12.74% of the shares indirectly through its 49% ownership interest in Viva Infrastructure Private
Limited, which owns 26% of the shares in Viva Highways Private Limited.
(4) The Company’s percentage ownership increased to 99.89% with effect from July 15, 2006.
(5) The Company’s percentage ownership increased to 99.99% with effect from April 1, 2005.
(6) The Company’s percentage ownership increased to 99.99% with effect from April 1, 2005.
(7) The Company’s percentage ownership increased to 90.00% with effect from September 2, 2008 and it decreased to
61.84% with effect from August 4, 2009 and further decreased to 60.19% with effect from January 21, 2010.
(8) The Company’s percentage ownership increased to 90.00% with effect from July 11, 2008 and it decreased to 55.08%.
with effect from July 14, 2009 and further decreased to 53.16% with effect from January 21, 2010.
(9) The Company acquired its 51.00% interest with effect from October 24, 2008.
(10) The Company acquired its 99.80% interest with effect from October 14, 2008.
(11) The Company acquired its 49.00% interest with effect from May 16, 2006.
(12) An associate of the Company. The Company acquired its 50% interest with effect from April 19, 2006.
(13) The Company acquired its 26.00% interest with effect from March 2, 2009.

Significant Accounting Policies

Our significant accounting policies are described in the section entitled “Auditor’s Report on Consolidated
Financial Information” on page 269 of this Prospectus.

Summary of Results of Operations

The table below sets forth, for the periods indicated, our restated profit and loss account, both in absolute
terms and with each line item represented as a percentage of total income:

Fiscal 2010 Fiscal 2009 Fiscal 2008 Fiscal 2007

Rs. % of Rs. % of Rs. % of Rs. % of

Millions Total Millions Total Millions Total Millions Total
Income Income Income Income
INCOME:
Turnover:
- Construction
Revenue 5,526.76 67.88% 2,930.55 54.94% 1,376.92 40.46% 2,229.00 53.20%

- Sales 775.59 9.53% 808.58 15.16% 677.83 19.92% 480.18 11.46%

- Toll Income –
BOT 1,653.35 20.31% 1,444.56 27.08% 1,172.93 34.46% 976.31 23.30%
- Toll Income –
Contract - - - - 345.40 8.24%
Total Turnover 7,955.70 97.71% 5,183.69 97.19% 3,227.68 94.84% 4,030.89 96.21%
Other Income 186.35 2.29 149.92 2.81% 175.69 5.16% 158.80 3.79%
TOTAL
INCOME 8,142.05 100% 5,333.61 100% 3,403.37 100% 4,189.69 100%
EXPENDITURE:
Contract and
Operation and 4,836.43 59.40% 2,647.32 49.63% 1,198.01 35.20% 2,050.84 48.95%

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 Fiscal 2010 Fiscal 2009 Fiscal 2008 Fiscal 2007

Rs. % of Rs. % of Rs. % of Rs. % of

Millions Total Millions Total Millions Total Millions Total
Income Income Income Income
Maintenance
Expenses
Cost of Materials
Sold 585.40 7.19% 581.56 10.90% 525.22 15.43% 373.89 8.92%
Toll Expenses - - - - 316.88 7.56%
Staff Expenses 213.32 2.62% 158.80 2.98% 129.39 3.80% 112.18 2.68%
Administrative
Expenses 178.03 2.19% 155.80 2.92% 141.74 4.16% 122.48 2.92%
Finance Costs 490.38 6.02% 646.22 12.12% 473.97 13.93% 451.64 10.78%

Depreciation 151.84 1.86% 119.31 2.24% 102.68 3.02% 79.04 1.89%

Amortisation 509.32 6.26% 525.44 9.85% 429.23 12.61% 420.74 10.04%

TOTAL
EXPENDITURE 6,964.72 85.54% 4,834.45 90.64% 3,000.24 88.16% 3,927.69 93.75%
Profit before
Tax, Prior Period
Items and
Adjustments 1,177.33 14.46% 499.16 9.36% 403.13 11.84% 262.00 6.25%
- Current Year
(net) 306.82 3.77% 108.00 2.02% 53.52 1.57% 23.64 0.56%
- Deferred Tax 11.69 0.14% 5.55 0.10% (19.01) -0.56% (6.72) -0.16%
- Fringe Benefit
Tax 0.00 - 2.59 0.05% 3.47 0.10% 1.88 0.04%
Net Profit before
Prior Period
Items and
Adjustments 858.82 10.55% 383.02 7.18% 365.15 10.73% 243.20 5.80%
Adjustments - - - - - - (1.54) -0.04%
Current tax impact
of Adjustments - - - - - - 0.49 0.01%
Net Profit before
Minority
Interests 858.82 10.55% 383.02 7.18% 365.15 10.73% 244.25 5.83%
Profit /(Loss)
transferred to
Minority
Interests 55.15 0.68% 34.88 0.65% 34.31 1.01% 1.87 0.04%
Net Profit
Attributable to
Shareholders 803.67 9.87% 348.14 6.53% 330.83 9.72% 242.38 5.79%

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Income

Our turnover (income from operations) consists of revenue from our:

x EPC division from revenue from third parties and the Company’s associates (shown in our
financial statements as construction revenue);

x BOT division (shown in our financial statements as toll income – BOT);

x RMC and bitumen division from sales to third parties and the Company’s associates and sales of
miscellaneous construction material to third parties and the Company’s associates (shown in our
financial statements as sales); and

x toll contract collection division (shown in our financial statements as toll income – contract).

Our EPC division earns revenue from the provision of engineering, procurement and construction services
to third parties and the Company’s associates and from EPC work performed for entities whose results are
consolidated with the Company's. However, for the purposes of consolidation, as per AS-21 and AS-27,
revenue from EPC work performed for entities whose results are consolidated with the Company's is
reduced from the gross consolidated turnover and is shown in the consolidated statement of profit and loss
net of these amounts.

Our BOT division earns revenue from the tolls we collect on our BOT projects and from the sale of
advertising space at our BOT projects.

Our RMC and bitumen division earns revenue from sales of ready-mix concrete and bitumen to third
parties and associates and from sales at cost to entities whose results are consolidated with the Company's.
This division also earns revenue from sales of miscellaneous materials such as steel and scrap, the sales of
which have been insignificant. However, for the purposes of consolidation, as per AS-21 and AS-27,
revenue from sales to entities whose results are consolidated with the Company's is reduced from the gross
consolidated turnover and is shown in the consolidated statement of profit and loss net of these amounts.

Our toll collection contract division earns income from the tolls it collects on roads and bridges owned and
constructed by third parties. However, our last toll collection contract with a third party expired in February
2007.

Our other income comprises (i) interest earned from bank deposits and advances paid (ii) profit from
associates, (iii) profit from joint ventures and partnerships, (iv) hire charges from the renting out of
machinery and vehicles, (v) claims on EPC contracts received, (vi) profit from derivatives, and (vii)
miscellaneous income.

Expenditure

Our total expenditure comprises (i) contract and operation and maintenance expenses, (ii) cost of materials
sold, (iii) toll expenses, (iv) staff expenses, (v) administrative expenses, (vi) finance costs, (vii)
depreciation and (viii) amortisation.

Contract and Operation and Maintenance Expenses

Our contract and operation and maintenance expenses include: (i) labour charges and sub-contracting
charges; (ii) purchase of construction materials; (iii) diesel fuel and lubricant expenses; (iv) transport and
material handling charges; (v) machinery repairs and maintenance; and (vi) rates and taxes on account of
works contracts and service tax on goods transported. Our contract and operation and maintenance
expenses are shown after capitalization of expenses on our BOT projects.

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Cost of Materials Sold

Our cost of materials sold is the cost of the materials for the manufacture of ready-mix concrete, the cost of
bitumen and the transportation costs for these materials. Our raw materials for ready-mix cement include
cement, sand, aggregates and construction chemicals.

Toll Expenses

Toll expenses comprise the licence fees for securing the right to collect tolls on roads/bridges owned and
constructed by third parties and, in some cases, maintenance expenses for the roads/bridges. We have not
had any toll expenses since February 2007, when the last toll collection contract with a third party expired.

Staff Expenses

Staff expenses consist of (i) salaries, wages and bonus, (ii) contribution to provident funds and gratuity and
(iii) staff welfare expenses.

Administrative Expenses

The more material administrative expenses are: (i) rent, rates, taxes and insurance premiums; (ii) office and
miscellaneous expenses; (iii) fuel and maintenance expenses for vehicles used by our employees; and (vi)
legal and professional fees.

Finance Costs

Finance costs comprise (i) interest on loans, (ii) financial charges, such as loan processing and prepayment
fees, and (iii) bank charges, such as bank guarantee commission charges, bank service charges and letter-
of-credit charges and (iv) fluctuations on account of foreign exchange financial derivative transactions.
Finance costs on BOT projects still under development are shown in our financial statements as capital
works in progress.

Depreciation

Depreciation includes depreciation on buildings, plant and machinery, vehicles, furniture and fixtures,
computers, office equipment and other fixed assets.

Amortisation

Amortisation comprises the amortisation of the capitalized costs of constructing our BOT projects, which is
referred to in this Prospectus as the Project Cost, including the EPC cost, interest paid on debt taken to
partially fund the construction of the project and other expenses incidental to the project during the
construction period. The project cost of a BOT project is amortised on a straight line method over the
concession period. Amortisation commences on the date we start to collect tolls.

Results of Operations

Due to the nature of our EPC business and BOT business, the completion schedules of our projects, the
way we recognise revenue, the nature of expenditure involved in a particular project, the specific terms of a
particular project contract (including payment terms) and other factors that affect our income and
expenditures on specific projects, our results of operations may vary significantly from period to period.

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Year Ended March 31, 2010 Compared with Year Ended March 31, 2009

Income

Our total income increased to Rs. 8,142.05 million in fiscal 2010 from Rs. 5,333.61 million in fiscal 2009,
an increase of Rs. 2,808.44 million or 52.66%.

Turnover (Income from Operations)

Our turnover increased to Rs. 7,955.70 million in fiscal 2010 from Rs. 5,183.69 million in fiscal 2009, an
increase of Rs. 2,772.01 million or 53.48%.

Our construction revenue increased to Rs. 5,526.76 million in fiscal 2010 from Rs. 2,930.55 million in
fiscal 2009, an increase of Rs. 2,596.21 million or 88.59%. The increase in our construction revenue in
fiscal 2010 was principally due to MSEDCL contract revenue of Rs. 3,301.32 million in fiscal 2010 as
compared to Rs. 190.16 million of work done in fiscal 2009. We undertook work for MSEDCL for the first
time in fiscal 2009 and it is our first client for EPC work in the power sector.

Our income from our BOT division increased to Rs. 1,653.35 million in fiscal 2010 from Rs. 1,444.56
million in fiscal 2009, an increase of Rs. 208.79. million or 14.45%. The main reason for the increase in our
BOT division income was a general increase in traffic volumes and an increase in toll rates pursuant to the
concession agreements.

Our sales income decreased to Rs. 775.59 million in fiscal 2010 from Rs. 808.58 million in fiscal 2009, a
decrease of Rs. 32.99 million or 4.08%. Sales of RMC were Rs. 673.39 million in fiscal 2010 compared
with 684.42 million in fiscal 2009. This decrease was due to a 11.67% decrease in the volume of RMC
sold, which decreased from 233,629 cubic metres in fiscal 2009 to 206,372 cubic metres in fiscal 2010,
which was partially offset by an increase in the average sales price. The volume of sales was adversely
affected by our closure of three RMC plants, one located in Surat and two in Pune, in the later part of fiscal
2009 due to a decrease in residential and commercial property construction activity. These three RMC
plants had a production capacity of 150 cubic metres per hour, which left us with a total RMC production
capacity of 180 cubic metres per hour. Due to our reduced production capacity, we expect sales of RMC for
fiscal 2011 to be less than sales of RMC in fiscal 2010. Sales of bitumen were Rs. 96.11 million in fiscal
2010 compared to Rs. 104.59 million in fiscal 2009. The decrease in sales of bitumen in fiscal 2010 was
due to a decrease in sales price, although the sale volume increased to 4,263.13 tonnes from 3,606.98
tonnes. The price of bitumen is linked to the price of oil, from which it is processed. Therefore, changes in
the price of oil impact the price of bitumen.

Other Income

Other income increased to Rs. 186.35 million in fiscal 2010 from Rs. 149.92 million in fiscal 2009, an
increase of Rs. 36.43 million or 24.30%. This increase was primarily due to a Rs. 29.06 million increase in
interest earned, which was due to an increase in money placed in bank deposit.

Expenditure

Our total expenditure increased to Rs.6,964.72 million in fiscal 2010 from Rs. 4,834.45 million in fiscal
2009, an increase of Rs.2,130.27 million or 44.06%. As a percentage of total income, total expenditure
decreased to 85.54% in fiscal 2010 compared with 90.64% in fiscal 2009. This was mainly due to the
optimum utilisation of resources.

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Contract and Operation and Maintenance Expenses

Our contract and operation and maintenance expenses increased to Rs. 4,836.43 million in fiscal 2010 from
Rs. 2,647.32 million in fiscal 2009, an increase of Rs. 2,189.11 million or 82.69%. Our contract expenses
were Rs. 4,659.53 million in fiscal 2010 compared with Rs. 2,453.74 million in fiscal 2009 and our
operation and maintenance expenses were Rs. 176.90 million in fiscal 2010 compared with Rs. 193.57
million in fiscal 2009. As a percentage of our construction revenue, our contract expenses increased to
84.31% in fiscal 2010 from 83.73% in fiscal 2009. The major reason for this increase was an increase in
our construction material costs and an increase in sub-contracting expenses, which was due to unanticipated
increases in the costs of construction materials, not all of which could be passed on to our clients. As a
percentage of our BOT revenue, our operation and maintenance expenses decreased to 10.70% in fiscal
2010 from 13.40% in fiscal 2009 resulting from major maintenance in the form of overlaying the road
surface on the Indore-Edalabad Road, which was principally done in fiscal 2009.

Our contract and operation and maintenance expenses of Rs.4,836.43 million in fiscal 2010 comprised our
total contract and operation and maintenance expenses of Rs.8,815.34 million less our capitalised expenses
for our BOT projects of Rs. 3,978.90 million. Our contract and operation and maintenance expenses of Rs.
2,647.32 million in fiscal 2009 comprised our total contract and operation and maintenance expenses of Rs.
5,485.71 million less our capitalised expenses for our BOT projects of Rs. 2,838.39 million.

Cost of Materials Sold

Our cost of material sold increased to Rs. 585.40 million in fiscal 2010 from Rs. 581.56 million in fiscal
2009, an increase of Rs. 3.84 million or 0.66%. As a percentage of sales, our cost of materials sold
increased to 75.48% in fiscal 2010 from 71.92% for fiscal 2009. The main reason for the increase in the
cost of material sold was a decrease in the margin in sales of bitumen.

Staff Expenses

Staff expenses increased by 34.33% from Rs. 158.80 million in fiscal 2009 to Rs. 213.32 million in fiscal
2010. The increase in staff expenses was attributable to an increase in the number of our staff, which
increased from 2,220 full-time employees as at the end of fiscal 2009 to 2,412 full-time employees as at the
end of fiscal 2010, and an average increase of 17% in the salary packages of existing staff. Salary increases
for our staff continue to outstrip inflation, which trend we do not anticipate will change in the foreseeable
future.

Administrative Expenses

Administrative expenses increased by 14.27% from Rs. 155.80 million in fiscal 2009 to Rs. 178.03 million
in fiscal 2010. As a percentage of total income, administrative expenses decreased slightly from 2.92% in
fiscal 2009 to 2.19% in fiscal 2010.

Finance Costs

Our finance costs decreased by 24.12% from Rs. 646.22 million in fiscal 2009 to Rs. 490.38 million in
fiscal 2010. One major reason for the decrease was that during fiscal 2010 our shareholding in Ashoka
Highways (Bhandara) Limited and Ashoka Highways (Durg) Limited was diluted and we and the other
shareholders in these companies are lending these companies their working capital requirements. As a
result of the decrease in our percentage ownership of these companies, our own working capital
requirements decreased. The other major reason for the decrease was a reduction in term loans of operative
BOT projects, which were repaid as per schedule. While there was an increase in term loans of subsidiaries
which are at construction stage, the interest in these projects was capitalised.

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Depreciation

Depreciation increased by 27.27% from Rs. 119.31 million in fiscal 2009 to Rs.151.84 million in fiscal
2010. This increase was due to the net addition of Rs. 366.38 million in fixed assets, which are primarily
plant and machinery assets for our EPC division.

Amortisation

Amortisation decreased by 3.07% from Rs. 525.44 million in fiscal 2009 to Rs. 509.32 million in fiscal
2010. This decrease was primarily due to the amortisation of the project cost of Nashirabad ROB based on
an original period of a full fiscal year. In fiscal 2009, the project cost of Nashirabad ROB was amortised
for an increased period with the remaining value as on the date of increase in toll period.

Profit before Tax, Adjustments and Prior Period Items

Principally for the reasons discussed above, our profit before tax, prior period items and adjustments
increased to Rs. 1,177.33 million in fiscal 2010 from Rs. 499.16 million in fiscal 2009, an increase of Rs.
678.17 million, or 135.86%. Our profit before tax, prior period items and adjustments as a percentage of
total income was 14.46% in fiscal 2010 compared with 9.36% in fiscal 2009.

Provision for Tax

Our provision for tax increased to Rs. 318.51 million in fiscal 2010 from Rs. 116.14 million for fiscal 2009.

Our effective tax rate in fiscal 2010 was 27.05% compared with the statutory rate of 33.99%. Our effective
rate of tax was lower than the statutory rate of tax mainly due to the differences between depreciation rates
on certain items as per the Income Tax Act and the Companies Act and the availing of the tax benefits
provided under Section 80IA of the Income Tax Act, 1961, which provides for the exemption of profits on
infrastructure projects from tax.

Our effective tax rate in fiscal 2009 was 23.27% compared with the statutory rate of 33.99%. Our effective
rate of tax was lower than the statutory rate of tax mainly due reasons discussed above.

Year Ended March 31, 2009 Compared with Year Ended March 31, 2008

Income

Our total income increased to Rs. 5,333.61 million in fiscal 2009 from Rs. 3,403.37 million in fiscal 2008,
an increase of Rs. 1,930.24 million or 56.72%.

Turnover (Income from Operations)

Our turnover increased to Rs. 5,183.69 million in fiscal 2009 from Rs. 3,227.68 million in fiscal 2008, an
increase of Rs. 1,956.01 million or 60.60%.

Our construction revenue increased to Rs. 2,930.55 million in fiscal 2009 from Rs. 1,376.92 million in
fiscal 2008, an increase of Rs. 1,553.63 million or 112.83%. Our construction revenue in fiscal 2009 was
principally due to Rs. 2,308.16 million of work done for Jaora Nayagaon Toll Road Company on the Jaora
Nayagaon Road, which compared with Rs. 87.13 million of work done in fiscal 2008, and Rs. 190.16
million of work done for MSEDCL. We undertook work for MSEDCL for the first time in fiscal 2009 and
it is our first client for EPC work in the power sector.

Our income from our BOT division increased to Rs. 1,444.56 million in fiscal 2009 from Rs. 1,172.93
million in fiscal 2008, an increase of Rs. 271.63 million or 23.16%. The major reasons for the increase
were the addition of toll collections from the Ahemednagar – Aurangabad Road, which began in May 2008,

327
and a full fiscal year of toll collection on the Katni Bypass compared with only one full month of toll
collection on that road in fiscal 2008, which was partially offset by the fact that we did have any toll
collection from the Akola Bypass as the concession for that project expired in February 2008. The other
reasons for the increase in toll collection was a general increase in traffic volumes and increases in toll rates
as per the concession agreements.

Our sales income increased to Rs. 808.58 million in fiscal 2009 from Rs. 677.83 million in fiscal 2008, an
increase of Rs. 130.75 million or 19.29%. Sales of RMC were Rs. 684.42 million in fiscal 2009 compared
with Rs. 629.73 million in fiscal 2008. This increase was due to an increase in the average sales price per
cubic metre, which was partially offset by a 0.82% decrease in sales volume in fiscal 2009 compared with
fiscal 2008. The volume of sales was adversely affected by the fact that we closed three RMC plants, one
located in Surat and the other two in Pune, in the later part of fiscal 2009 due to a decrease in residential
and commercial property construction activity. These three RMC plants had a production capacity of 150
cubic metres per hour, which left us with a total RMC production capacity of 180 cubic metres per hour.
Due to our reduced production capacity, we expect sales of RMC for fiscal 2010 to be less than in fiscal
2009. Sales of bitumen were Rs. 104.59 million in fiscal 2009 and were Rs. 49.98 million in fiscal 2008.
The increase in sales of bitumen in fiscal 2009 was due to a 51.99% increase in sales volume and 39%
increase in the average sale price per metric ton. The price of bitumen is linked to the price of oil, from
which it is processed. Therefore, changes in the price of oil impact the price of bitumen.

Other Income

Other income decreased to Rs. 149.92 million in fiscal 2009 from Rs. 175.69 million in fiscal 2008, a
decrease of Rs. 25.77 million or 14.67%. This decrease was primarily due to a Rs. 21.32 million decrease
in interest earned, which was due to a decrease in bank interest rates and the amount of money placed on
deposit.

Expenditure

Our total expenditure increased to Rs. 4,834.45 million in fiscal 2009 from Rs. 3,000.24 million in fiscal
2008, an increase of Rs. 1,834.21 million or 61.14%. As a percentage of total income, total expenditure
increased to 90.64% in fiscal 2009 compared with 88.16% in fiscal 2008.

Contract and Operation and Maintenance Expenses

Our contract and operation and maintenance expenses increased to Rs. 2,647.32 million in fiscal 2009 from
Rs. 1,198.01 million in fiscal 2008, an increase of Rs. 1,449.31 million or 120.98%. Our contract expenses
were Rs. 2,453.74 million in fiscal 2009 compared with Rs. 1,124.28 million in fiscal 2008 and our
operation and maintenance expenses were Rs. 193.57 million in fiscal 2009 compared with Rs. 73.73
million in fiscal 2008. As a percentage of our construction revenue, our contract expenses increased to
83.73% in fiscal 2009 from 81.65% in fiscal 2008. The major reason for this increase was an increase in
our construction material costs and increase in sub-contracting expenses, which was due to unanticipated
increases in the costs of construction materials, not all of which could be passed on to our clients. The rate
of inflation for the cost of construction materials had come down by the end of fiscal 2009. As a percentage
of our BOT revenue, our operation and maintenance expenses increased to 13.40% in fiscal 2009 from
6.29% in fiscal 2008 this increased mainly due to major maintenance in the form of overlaying the road
surface on the Indore-Edalabad Road.

Our contract and operation and maintenance expenses of Rs. 2,647.32 million in fiscal 2009 comprised our
total contract and operation and maintenance expenses of Rs. 5,485.71 million less our capitalised expenses
for our BOT projects of Rs. 2,838.39 million. Our contract and operation and maintenance expenses of Rs.
1198.01 million in fiscal 2008 comprised our total contract and operation and maintenance expenses of Rs.
1,932.07 million less our capitalised expenses for our BOT projects of Rs. 734.06 million.

Cost of Materials Sold

328
Our cost of material sold increased to Rs. 581.56 million in fiscal 2009 from Rs. 525.22 million in fiscal
2008, an increase of Rs. 56.34 million or 10.73%. As a percentage of sales, our cost of materials sold
decreased from 77.49% in fiscal 2008 to 71.92% for fiscal 2009.

Staff Expenses

Staff expenses increased by 22.73% from Rs. 129.39 million in fiscal 2008 to Rs. 158.80 million in fiscal
2009. The increase in Staff expenses was attributable to an increase in our staff, which increased from
2,165 full-time employees as at the end of fiscal 2008 to 2,220 full-time employees as at the end of fiscal
2009, and an average increase of 14% in the salary packages of existing staff. Salary increases for our staff
continue to outstrip inflation, which trend we do not see changing for a while yet.

Administrative Expenses

Administrative expenses increased by 9.92% from Rs. 141.74 million in fiscal 2008 to Rs. 155.80 million
in fiscal 2009. As a percentage of total income, administrative expenses decreased slightly from 4.16% in
fiscal 2008 to 2.92% in fiscal 2009.

Finance Costs

Our finance costs increased by 36.34% from Rs. 473.97 million in fiscal 2008 to Rs. 646.22 million in
fiscal 2009. The major reasons for the increase were:

x The addition of finance charges paid by the Company on loans taken to partially finance the
construction of the Ahemednagar – Aurangabad Road from May 2008, which is when toll
collection began, prior to which the finance charges for such loans were included as capital work
in progress. The total of these loans were Rs. 630.78 million as at March 31, 2009;

x A full fiscal year of finance charges paid by Ashoka-DSC Katni Bypass Road Private Limited on
its loans compared with only one full month of finance charges for such loans in fiscal 2008, prior
to which the finance charges for such loans were included as capital work in progress. The total of
these loans were Rs. 418.56 million as at March 31, 2009 and

x The Company borrowed Rs. 500.00 million in October 2008 at 14.5% per annum and Rs. 200.00
million in November 2008 at 17.5% per annum from L&T Infrastructure Company Limited to
meet its working capital requirements, which loans were repaid before the end of fiscal 2009.

The increase in finance charges was also due several increases in bank prime lending rates in India during
the first half fiscal 2009 and most of our borrowings are at floating rates of interest. For example, Axis
Bank’s prime lending rates peaked at 13-14% in September 2008 but began to decrease in December 2008
and stood at 12 – 13% at the end of fiscal 2009 compared with 11-12% at the end of fiscal 2008. Axis Bank
is the lead lender for our working capital facility.

Depreciation

Depreciation increased by 16.19% from Rs. 102.68 million in fiscal 2008 to Rs. 119.31 million in fiscal
2009. This increase was due to the net addition of Rs. 221.32 million in fixed assets, primarily plant and
machinery for our EPC division.

Amortisation

Amortisation increased by 22.41% from Rs. 429.23 million in fiscal 2008 to Rs. 525.44 million in fiscal
2009. This increase was primarily due to the amortisation of the Project Cost for the Katni Bypass for a full
fiscal year compared with one full month of amortisation in fiscal 2008 and the amortisation of the Project
Cost for the Ahemednagar – Aurangabad road from May 2008. The addition of the amortisation of the

329
Project Costs for these BOT projects was slightly offset by the fact that we had finished amortising the
Project Cost for the Akola Bypass as the concession for that road ended in February 2008.

Profit before Tax, Adjustments and Prior Period Items

Principally for the reasons discussed above, our profit before tax, prior period items and adjustments
increased to Rs. 499.16 million in fiscal 2009 from Rs. 403.13 million in fiscal 2008, an increase of Rs.
96.03 million, or 23.82%. Our profit before tax, prior period items and adjustments as a percentage of total
income was 9.36% in fiscal 2009 compared with 11.84% in fiscal 2008.

Provision for Tax

Our provision for tax increased to Rs. 116.14 million in fiscal 2009 from Rs. 37.99 million for fiscal 2008.
Our effective tax rate in fiscal 2009 was 23.27% compared with the statutory rate of 33.99%. Our effective
rate of tax was lower than the statutory rate of tax mainly due to the differences between depreciation rates
on certain items as per the Income Tax Act and the Companies Act and the availing of the tax benefits
provided under Section 80IA of the Income Tax Act, 1961, which provides for the exemption of profits on
infrastructure projects from tax.

Our effective tax rate in fiscal 2008 was 9.42% compared with the statutory rate of 33.99%. Our effective
rate of tax was lower than the statutory rate of tax mainly due to the reversal of a deferred tax provision of
Rs. 19.01 million, which was due to the differences between depreciation rates on certain items as per the
Income Tax Act and the Companies Act and the availing of the tax benefits provided under Section 80IA of
the Income Tax Act, 1961 which provides for the exemption of profits on infrastructure projects from tax.

Year Ended March 31, 2008 Compared with Year Ended March 31, 2007

Income

Our total income decreased to Rs. 3,403.37 million in fiscal 2008 from Rs. 4,189.69 million in fiscal 2007,
a decrease of Rs. 786.32 million or 18.77%.

Turnover (Income from Operations)

Our turnover decreased to Rs. 3,227.68 million in fiscal 2008 from Rs. 4,030.89 million in fiscal 2007, a
decrease of Rs. 803.21 million or 19.93%.

Our construction revenue decreased to Rs. 1,376.92 million in fiscal 2008 from Rs. 2,229.00 million in
fiscal 2007, a decrease of Rs. 852.08 million or 38.23%. The decrease was principally due to the fact that
no new major EPC contract for a third party or associate was executed by the Company during fiscal 2008,
whereas in fiscal 2007 we recognised Rs. 1,258.08 million from construction of the Phalodi-Pachpadra road
for RIDCOR.

Our income from our BOT division increased to Rs. 1,172.93 million in fiscal 2008 from Rs. 976.31
million in fiscal 2007, an increase of Rs. 196.62 million or 20.14%. The major reasons for the increase
were that in fiscal 2008 the consolidation of Viva Highways Private Limited and Ashoka Infrastructure
Limited was for a full year whereas in fiscal 2007 the consolidation for these two subsidiaries was for 10
months and 11 days as these companies became subsidiaries on May 20, 2006. In fiscal 2008 there was a
toll rate increase on the Pune - Shirur road, which only occurs after every three years. The other reasons for
the increase in toll collection was an increase in traffic volume and regular toll rate increases on a yearly
basis as per the terms of the concession agreements.

Our sales income increased to Rs. 677.83 million in fiscal 2008 from Rs. 480.18 million in fiscal 2007, an
increase of Rs. 197.65 million or 41.16%. Sales of RMC were Rs. 629.73 million in fiscal 2008 compared
with Rs. 420.18 million in fiscal 2007. This increase was due to a 22.37% increase in the volume of sales
and a 23.18% increase in average sales price. This increase in sales volume was also due to additional sales

330
from a new RMC plant at Nasik. This RMC plant was commissioned February 2007 and it increased our
RMC production capacity by 30 cubic metres per hour, or 10%. Sales of bitumen were Rs. 49.98 million in
fiscal 2008 and Rs. 60.49 million in fiscal 2007. This decrease was primarily due to a decrease in the
volume of sales.

Our income from our toll collection division was nil in fiscal 2008 compared to Rs. 345.40 million in fiscal
2007. We only had one toll collection contract in fiscal 2007, which expired in March 2007, and we did
not have any toll collection contracts in fiscal 2008.

Other Income

Other income increased to Rs. 175.69 million in fiscal 2008 from Rs. 158.80 million in fiscal 2007, an
increase of Rs. 16.89 million or 10.64%. This increase was primarily due to a 23.66 million increase in the
share of profit from associates in fiscal 2008, primarily due to a Rs. 23.40 million increase in our share of
profits from Jayaswal Ashoka Infrastructure Private Limited.

Expenditure

Our total expenditure decreased to Rs. 3,000.24 million in fiscal 2008 from Rs. 3,927.69 million in fiscal
2007, a decrease of Rs. 927.44 million or 23.61%. As a percentage of total income, total expenditure
decreased from 93.75% in fiscal 2007 to 88.16% in fiscal 2008.

Contract and Operation and Maintenance Expenses

Our contract and operation and maintenance expenses decreased to Rs. 1,198.01 million in fiscal 2008 from
Rs. 2,050.84 million in fiscal 2007, a decrease of Rs. 852.82 million or 41.58%. The primary reason for the
decrease was the decrease in the amount of EPC work we undertook for third parties and associates. Our
contract expenses were Rs. 1,124.28 million in fiscal 2008 compared with Rs. 1,992.81 million in fiscal
2007 and our operation and maintenance expenses were Rs. 73.77 million in fiscal 2008 compared with Rs.
58.03 million in fiscal 2007. As a percentage of our construction revenue, our contract expenses decreased
to 81.65% in fiscal 2008 from 89.40% in fiscal 2007. As a percentage of our BOT revenue, our operation
and maintenance expenses increased to 6.29% in fiscal 2008 from 5.94% in fiscal 2007.

Our contract and operation and maintenance expenses of Rs. 1,198.01 million in fiscal 2008 comprised our
total contract and operation and maintenance expenses of Rs. 1,932.07 million less our capitalised expenses
for our BOT projects of Rs. 734.06 million. Our contract and operation and maintenance expenses of Rs.
2,050.84 million in fiscal 2007 comprised our total contract and operation and maintenance expenses of Rs.
2,232.35 million less our capitalised expenses for our BOT projects of Rs. 181.51 million.

Cost of Materials Sold

Our cost of material sold increased to Rs. 525.22 million in fiscal 2008 from Rs. 373.89 million in fiscal
2007, an increase of Rs. 151.33 million or 40.47%. As a percentage of sales, our cost of materials sold
decreased from 77.87% in fiscal 2007 to77.49% for fiscal 2008.

Toll Expenses

Our toll expenses were nil in fiscal 2008 compared to Rs. 316.88 million in fiscal 2007. We only had one
toll collection contract in fiscal 2007, which expired in March 2007, and we did not have any toll collection
contracts in fiscal 2008.

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Staff Expenses

Staff expenses increased by 15.34% from Rs. 112.18 million in fiscal 2007 to Rs. 129.39 million in fiscal
2008. The increase in staff expenses was primarily attributable to increase in the number of our fulltime
employees, which increased from 1,897 as at the end of fiscal 2007 to 2,165 as at the end of fiscal 2008.

Administrative Expenses

Administrative expenses increased by 15.73% from Rs. 122.48 million in fiscal 2007 to Rs. 141.74 million
in fiscal 2008. The increase in administrative expenses was primarily attributable to increase in travelling
cost and vehicle repairs and maintenance expenses. As a percentage of total income, administrative
expenses increased to 4.16% in fiscal 2008 from 2.92% in fiscal 2007.

Finance Costs

Our finance costs increased by 4.94% from Rs. 451.64 million in fiscal 2007 to Rs. 473.97 million in fiscal
2008. This increase was primarily due to a Rs. 32.25 million mark to market provision on a derivative
transaction. The company had entered into a Rupee-US Interest Rate Swap with a value of Rs. 1000.00
million maturing on January 28, 2013 with quarterly settlements. Due to steep fluctuation in the dollar rates
company had to provide mark to market provision.

Depreciation

Depreciation increased by 29.91% from Rs. 79.04 million in fiscal 2007 to Rs. 102.68 million in fiscal
2008. This increase was due to the net addition of Rs. 220.94 million in fixed assets, primarily plant and
equipment for our EPC division.

Amortisation

Amortisation increased by 2.02% from Rs. 420.74 million in fiscal 2007 to Rs. 429.23 million in fiscal
2008. This increase was due to amortisation of the Project Cost for the Katni Bypass, on which toll
collection started in February 2008.

Profit before Tax, Adjustments and Prior Period Items

Principally for the reasons discussed above, our profit before tax, prior period items and adjustments
increased to Rs. 403.13 million in fiscal 2008 from Rs. 262.00 million in fiscal 2007, an increase of Rs.
141.13 million or 53.87%. Our profit before tax, prior period items and adjustments as a percentage of
total income was 11.85% in fiscal 2008 compared with 6.25% in fiscal 2007.

Provision for Tax

Our provision for tax increased to Rs. 37.98 million in fiscal 2008 from Rs. 18.80 million for fiscal 2007.
Our effective tax rate in fiscal 2008 was 9.42% compared with the statutory rate of 33.99%. Our effective
rate of tax was lower than the statutory rate of tax mainly due to the reversal of a deferred tax provision of
Rs. 19.01 million in fiscal 2008, which was due to the differences between depreciation rates on certain
items as per the Income Tax Act and the Companies Act, the provision for loss on mark to market of a
derivative contract and the availing of the tax benefits provided under Section 80IA of the Income Tax Act,
which provides for the exemption of profits on infrastructure projects from tax. Our effective tax rate in
fiscal 2007 was 7.18% compared with the statutory rate of 33.66%. Our effective rate of tax was lower than
the statutory rate of tax mainly due to the availing of the tax benefits provided under Section 80IA of the
Income Tax Act, which provides for the exemption of profits on infrastructure projects from tax.

332
Year Ended March 31, 2007 Compared with Year Ended March 31, 2006

Income

Our total income increased to Rs. 4,189.69 million in fiscal 2007 from Rs. 1,858.21 million in fiscal 2006,
an increase of Rs. 2,331.48 million or 125.47%.

Turnover (Income from Operations)

Our turnover increased to Rs. 4,030.89 million in fiscal 2007 from Rs. 1,791.36 million in fiscal 2006, an
increase of Rs. 2,239.53 million or 125.02%.

Our construction revenue increased to Rs. 2,229.00 million in fiscal 2007 from Rs. 1,165.26 million in
fiscal 2006, an increase of Rs. 1,063.74 million or 91.29%. The major reasons for the increase were that we
began construction on the Phalodi-Pachpadra road for RIDCOR, the revenue from which for fiscal 2007
was Rs. 1,258.08 million, and we undertook further construction of the Chittorgarh Bypass for NHAI, the
revenue from which for fiscal 2007 was Rs. 343.32 million.

Our income from our BOT division increased to Rs. 976.31 million in fiscal 2007 from Rs. 358.30 million
in fiscal 2006, an increase of Rs. 618.01 million or 172.48%. The major reason for the increase was due to
the consolidation for the first time of two operating subsidiaries, namely Viva Highways Private Limited
and Ashoka Infrastructure Limited. In addition, the increase was also due to the fact that we began
collecting tolls on the Akola Bypass in July 2006.

Our sales income increased to Rs. 480.18 million in fiscal 2007 from Rs. 247.38 million in fiscal 2006, an
increase of Rs. 232.80 million or 94.11%. This increase was primarily due to the opening of one additional
RMC plant and the conversion of one RMC plant from captive use to commercial use.

Our toll income – contract increased significantly to Rs. 345.40 million in fiscal 2007 from Rs. 20.42
million in fiscal 2006, an increase of Rs. 324.98 million. We only had one toll collection contract in fiscal
2006 and fiscal 2007, which began in March 2006 and ended in March 2007. The reason for the increase in
revenue was that we collected tolls for 11 months in fiscal 2007 compared with one month in fiscal 2006.

Other Income

Other income increased to Rs. 158.80 million in fiscal 2007 from Rs. 66.85 million in fiscal 2006, an
increase of Rs. 91.95 million or 137.55%. The increase was primarily due to an increase in interest income
from Rs. 28.80 million to Rs. 101.69 million. The increase in interest income was primarily due to the
interest earned on the unutilised net proceeds from the Rs. 1,000.00 million raised through the issuance of
Equity Shares in August 2006 and Rs. 35.73 million in interest earned by the new subsidiaries.

Expenditure

Our total expenditure increased to Rs. 3,927.69 million in fiscal 2007 from Rs. 1,794.40 million in fiscal
2006, an increase of Rs. 2,133.29 million or 118.89%. As a percentage of total income, total expenditure
decreased from 96.57% in fiscal 2006 to 93.75% in fiscal 2007.

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Contract and Operation and Maintenance Expenses

Our contract and operation and maintenance expenses increased to Rs. 2,050.84 million in fiscal 2007 from
Rs. 965.37 million in fiscal 2006, an increase of Rs. 1,085.47 million or 112.44%. The major reasons for
the increase were work done on the construction of the Phalodi-Pachpadra road for RIDCOR and further
construction of the Chittorgarh bypass for NHAI. Our contract expenses were Rs. 1,992.81 million in fiscal
2007 compared with Rs. 956.53 million in fiscal 2006 and our operation and maintenance expenses were
Rs. 58.03 million in fiscal 2007 compared with Rs. 8.84 million in fiscal 2006. As a percentage of our
construction revenue, our contract expenses increased to 89.40% in fiscal 2007 from 82.09% in fiscal 2006.
As a percentage of our BOT revenue, our operation and maintenance expenses increased to 5.94% in fiscal
2007 from 2.47% in fiscal 2006.

Our contract and operation and maintenance expenses of Rs. 2,050.84 million in fiscal 2007 comprised our
total contract and operation and maintenance expenses of Rs. 2,232.35 million less our capitalised expenses
for our BOT projects of Rs. 181.51 million. Our contract and operation and maintenance expenses of Rs.
965.37 million in fiscal 2006 comprised our total contract and operation and maintenance expenses of Rs.
965.72 million less our capitalised expenses for our BOT projects of Rs. 0.35 million.

Cost of Materials Sold

Our cost of material sold increased to Rs. 373.89 million in fiscal 2007 from Rs. 221.90 million in fiscal
2006, an increase of Rs. 151.99 million or 68.50%. The primary reason for the increase was an increase in
the volume of sales of RMC and increases in raw material prices.

Toll Expenses

Our toll expenses increased significantly to Rs. 316.88 million in fiscal 2007 from Rs. 17.92 million in
fiscal 2006, an increase of Rs. 298.96 million. We only had one toll collection contract in fiscal 2006 and
fiscal 2007, which began in March 2006 and ended in March 2007. The reason for the increase in expenses
was that we collected tolls for more than 11 months in fiscal 2007 compared with less than one month in
fiscal 2006.

Staff Expenses

Staff expenses increased by 70.33% from Rs. 65.86 million in fiscal 2006 to Rs. 112.18 million in fiscal
2007. The increase in staff expenses was primarily attributable to increases in wages, which averaged
approximately 12%, and a 44% increase in the number of our employees from 1,315 as at March 31, 2006
to 1,897 as at March 31, 2007. In addition, staff expenses increased by Rs. 12.79 million due to the
consolidation of two subsidiaries consolidated for the first time in fiscal 1997, namely Viva Highways
Private Limited and Ashoka Infrastructure Limited.

Administrative Expenses

Administrative expenses increased by 79.64% from Rs. 68.18 million in fiscal 2006 to Rs. 122.48 million
in fiscal 2007. The increase in administrative expenses was primarily attributable to a Rs. 31.99 million
increase in legal and professional fees, which was primarily due to the advisory fees paid for the working
capital appraisal process carried out for the enhancement of our working capital facility from lenders, and
fees paid for the private placement of Rs. 1,000.00 million of our Equity Shares in August 2006. In
addition, administrative fees increased due to the consolidation of two subsidiaries for the first time,
namely Viva Highways Private Limited and Ashoka Infrastructure Limited.

Finance Costs

Our finance costs increased by 112.80% from Rs. 212.24 million in fiscal 2006 to Rs. 451.64 million in
fiscal 2007. This increase was primarily due to a total of Rs. 239.40 million in interest paid by the two
subsidiaries consolidated for the first time.

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Depreciation

Depreciation increased by 28.65% from Rs. 61.44 million in fiscal 2006 to Rs. 79.04 million in fiscal 2007.
This increase was due to the depreciation on the net addition of Rs. 342.26 million of fixed assets, primarily
plant and machinery for our EPC division.

Amortisation

Amortisation increased by 131.83% from Rs. 181.49 million in fiscal 2006 to Rs. 420.74 million in fiscal
2007. This increase was primarily due to the amortisation of the Project Costs for the BOT projects
operated by our two subsidiaries consolidated for the first time. In addition, we began amortising the
Project Cost for the Akola Bypass in July 2006.

Profit before Tax, Adjustments and Prior Period Items

Principally for the reasons discussed above, our profit before tax, prior period items and adjustments
increased to Rs. 262.00 million in fiscal 2007 from Rs. 63.81 million in fiscal 2006, an increase of Rs.
198.19 million, or 310.59%. Our profit before tax, prior period items and adjustments as a percentage of
total income was 6.25% in fiscal 2007 compared with 3.43% in fiscal 2006.

Provision for Tax

Our provision for tax decreased to Rs. 18.80 million in fiscal 2007 from Rs. 32.99 million for fiscal 2006.
Our effective tax rate in fiscal 2007 was 7.18% compared with the statutory rate of 33.66%. Our effective
rate of tax was lower than the statutory rate of tax due to the availing of the tax benefits provided under
Section 80IA of the Income Tax Act, which provides for the exemption of profits on infrastructure projects
from tax. Our effective tax rate in fiscal 2006 was 51.70% compared with the statutory rate of 33.66%. Our
effective tax rate was higher than the statutory tax rate because of the deferred tax provision of Rs. 14.98
million, which was due to the differences between depreciation rates on certain items as per the Income
Tax Act and the Companies Act.

Liquidity and Capital Resources

Historically, our principal liquidity and capital resources requirements have been to finance our working
capital needs, our capital expenditures and our investment in subsidiaries, associates and joint ventures that
undertake BOT projects.

Most of our recent EPC contracts provide for an advance payment of 10% of the contract amount and
provide that we are to be paid a certain amount of the contract on completion of stages of the project, which
reduces our working capital needs. However, our business still requires a significant amount of working
capital to finance the purchase of raw materials and goods and the performance of construction business
projects before payment is received from our clients.

To fund the capital needs for our BOT projects, we have generally relied on our cash flow from operations,
term loans on receivables of operational BOT projects, and short term and working capital loans until BOT
project based loans are made.

To fund our capital needs for fixed assets other than BOT project assets, we have generally relied on cash
flows from operating activities, hire purchase/hypothecation loans and long term loans.

For how we intend to use the net proceeds of the Issue, see the section entitled “Objects of the Issue” on
page 51 of this Prospectus.

We believe that our cash flow from operations, the net proceeds of this Issue and our borrowings will be
sufficient to provide us with the funds for our working capital, capital expenditures and our planned

335
investments for at least the next 12 months. In the future, as we expand our business, our capital needs will
increase and we may need to raise additional capital through further debt finance and additional issues of
Equity Shares.

Cash Flows

The table below sets forth our cash flows for the periods indicated.

Fiscal 2010 Fiscal 2009 Fiscal 2008 Fiscal 2007

Net cash from /(used in) operating activities 1,552.61 2,093.16 968.12 1432.67
Net cash from /(used in) investing activities (4,887.21) (3,818.43) (1,530.98) (2,984.80)
Net cash from financing activities 3,488.24 1,423.34 166.76 2,468.74
Net increase / (decrease) in cash and cash
equivalents 153.63 (301.93) (396.10) 916.61

Cash Flows from /(used in) Operating Activities

Our net cash from operating activities in fiscal 2010 was Rs. 1,552.61 million, while our operating profit
before working capital changes for that fiscal year was Rs. 2,296.01 million. The difference was primarily
attributable to an increase in inventories of Rs. 1,293.88 million and an increase in trade and other
receivables of Rs. 2,115.92 million, which was offset by an increase in trade and other payables of Rs.
3,030.97 million.

Our net cash from operating activities in fiscal 2009 was Rs. 2,093.16 million, while our operating profit
before working capital changes for that fiscal year was Rs. 1,749.95 million. The difference was primarily
attributable to an increase in trade and other payables of Rs. 835.82 million and a decrease in inventories of
Rs. 235.45 million, which was partially offset by an increase in trade and other receiveables of Rs. 579.99
million.

Our net cash from operating activities in fiscal 2008 was Rs. 968.12 million, although our operating profit
before working capital changes for that fiscal year was Rs. 1,438.42 million. The difference was primarily
attributable to an increase in trade and other receiveables of Rs. 235.40 million and an increase in
inventories of Rs. 316.89 million, which were partially offset by an increase in trade and other payables of
Rs. 184.41 million.

Our net cash from operating activities in fiscal 2007 was Rs. 1,432.67 million, although our operating profit
before working capital changes for that fiscal year was Rs. 1,191.17 million. The difference was mainly
attributable to a decrease in trade and other receivables of Rs. 267.99 million and an increase in trade and
other payables of Rs. 293.83 million, which were partially offset by an increase in inventories of Rs. 291.37
million.

Cash Flows from /(used in) Investing Activities

Our net cash used in investing activities in fiscal 2010 was Rs. 4,887.21 million, which primarily reflected
Rs. 4,598.90 million used for the construction of BOT projects, including Rs. 2,508.27 million for the NH-
6 Bhandara Road and Rs. 2,047.88 million for the NH-6 Durg Bypass, Chhattisgarh - Maharashtra border
Road. We also used Rs. 398.19 million to acquire other fixed assets, primarily plant and machinery for our
EPC division. In addition, we used Rs.26.59 million to purchase equity shares of Jaora Nayagoan Toll
Road Company Private Limited and Rs. 217.65 million to purchase equity shares of LNT Tollway Pvt ltd.
We invested surplus funds of Rs. 250.35 million in mutual funds. We also received Rs. 46.72 million in our
share of profits from Jayaswal Ashoka Infrastructure Private Ltd. We also earned Rs. 415.48 million in
share premium from the dilution of our share holding in AHBL and AHDL.

Our net cash used in investing activities in fiscal 2009 was Rs. 3,818.43 million, which primarily reflected
Rs. 3,481.82 million used for the construction of BOT projects, including Rs. 1,966.73 million for the NH-
6 Bhandara Road, Rs. 1,320.93 million for the NH-6 Durg Bypass, Chhattisgarh - Maharashtra border Road

336
and Rs. 124.12 million for the Ahmednagar – Aurangabad Road. We also used Rs. 271.01 million to
acquire other fixed assets, primarily plant and machinery for our EPC division. In addition, we used Rs.
141.80 million to purchase equity shares of Jaora Nayagoan Toll Road Company Private Limited. We also
received Rs. 39.80 million in our share of profits from Jayaswal Ashoka Infrastructure Private Ltd.
Our net cash used in investing activities in fiscal 2008 was Rs. 1,530.98 million, which primarily reflected
Rs. 1,271.35 million used for the construction of BOT projects, including Rs. 750.04 million for the
Ahmednagar – Aurangabad Road and Rs. 277.27 million for the Katni Bypass, and Rs. 228.50 million used
to acquire other fixed assets, primarily plant and machinery for our EPC division. We also received Rs.
45.49 million in our share of profits from Jayaswal Ashoka Infrastructure Private Ltd.

Our net cash used in investing activities in fiscal 2007 was Rs. 2,984.80 million, which primarily reflected
Rs. 420.37 million used for the construction of BOT projects, including Rs. 74.25 million towards
construction of the Akola Bypass, Rs. 68.83 million towards construction of the Pune-Shirur Road, Rs.
152.47 million towards construction of the Ahmednagar-Aurangabad road and Rs. 124.82 million towards
construction of the Katni Bypass Project We also used Rs. 338.81million to acquire other fixed assets,
primarily plant and machinery for our EPC division. In addition, we used Rs. 181.18 million to purchase
12% preference shares of Viva Infrastructure Limited and we received Rs. 22.09 million in our share of
profits from Jayaswal Ashoka Infrastructure Private Ltd. In fiscal 2007 Ashoka Infrastructure Limited and
Viva Highways Private Limited became subsidiaries of the Company, prior to which they had been
associates of the Company, as a result of which Rs. 329.27 million in investments were not considered for
the purposes of consolidation and this was shown in our cash flow statement as a reduction in investments.
In addition, as Ashoka Infrastructure Limited and Viva Highways Private Limited became subsidiaries of
the Company, their fixed assets comprising Rs. 1,289.39 million of the Project Cost (net of amortisation) of
the Pune-Shirur Road and Rs. 849.21 million of the Project Cost (net of amortisation) of the Indore –
Edalabad Road were consolidated for the first time in fiscal 2007 and shown in our statement of cash flows
as purchases of investments.

Cash Flows from / (Used in) Financing Activities

Our net cash from financing activities in fiscal 2010 was Rs. 3,488.24 million. This cash flow reflects Rs.
837.15 million in proceeds received from borrowings, which loans were primarily taken to finance
construction of the NH-6 Bhandara Road and the NH-6 Durg Road. We have paid Rs. 490.38 million in
interest, commitment and finance charges. Our net cash from financing activities in fiscal 2009 was Rs.
1,423.34 million. This cash flow reflects Rs. 2,105.22 million in proceeds received from borrowings,
which loans were primarily taken to part finance construction of the NH-6 Bhandara Road and the
Ahmednagar – Aurangabad Road and to leverage the Dewas Bypass after its construction, Rs. 646.22
million in interest, commitment and finance charges paid and Rs. 35.66 million in preliminary expenses
paid in connection with the Issue.

Our net cash from financing activities in fiscal 2008 was Rs. 166.76 million. This cash flow reflects Rs.
745.20 million in proceeds received from new borrowings, the payment of Rs. 494.50 million of interest,
commitment and finance charges, Rs. 93.14 million on the redemption of preference shares in the
Company, and Rs. 9.20 million in net proceeds from the issuance of 919,505 Equity Shares at Rs. 10 per
share.

Our net cash from financing activities in fiscal 2007 was Rs. 2,468.74 million. This cash flow reflects Rs.
1,002.61 million in net proceeds received from the issuance of 261,480 Equity Shares at Rs. 10 per share
and 1,019,617 Equity Shares at Rs. 980.76 per share, Rs. 1,917.76 million in proceeds received from new
borrowings and Rs. 451.64 million in interest and commitment and finance charges paid.

Capital Expenditures

We need to make capital expenditures on a regular basis in order to acquire needed fixed assets and
undertake our BOT projects.

337
In fiscal 2010, our capital work in progress increased by Rs. 4,414.03 million, which included Rs. 2,508.27
million of project costs for the construction of the NH-6 Bhandara Road and Rs. 2,047.88 million of project
costs for the construction of the Durg Bypass, Chhattisgarh – Maharashtra border Road. We purchased Rs.
398.19 million of fixed assets consisting of Rs.308.51 million in plant and machinery for our EPC division
and the remainder on leasehold land, buildings, vehicles, computers and other assets, which was partially
offset by the sale of Rs. 31.81 million of fixed assets, primarily plant and machinery.

In fiscal 2009, we capitalised Rs. 1,044.90 million of Project Costs for BOT projects, which was the Project
Cost for the Ahmednagar – Aurangabad Road, our capital work in progress increased by Rs. 2,436.92
million, which included Rs. 1,966.73 million of project costs for the construction of the NH-6 Bhandara
Road, Rs. 1,320.93 million of project costs for the construction of the Durg Bypass, Chhattisgarh –
Maharashtra border Road and Rs. 19.11 million of project expenses for the construction of the pre-cast
poles factory. We purchased Rs. 271.01 million of fixed assets consisting of Rs. 195.01 million in plant and
machinery for our EPC division and the remainder on leasehold land, buildings, vehicles, computers and
other assets, which was partially offset by the sale of Rs. 49.69 million of fixed assets, primarily plant and
machinery.

In fiscal 2008, we capitalised Rs. 604.61 million of Project Costs for BOT projects, which was the Project
Cost for the Katni Bypass, our capital work in progress increased by Rs. 676.17 million (net), Rs. 750.04
million of which related to project costs for construction of the Ahmednagar – Aurangabad Road, and we
purchased Rs. 228.50 million of other fixed assets consisting of Rs. 191.57 million in plant and machinery
for our EPC division and the remainder on leasehold land, buildings, vehicles, computers and other assets,
which was partially offset by the sale of Rs. 7.56 million of fixed assets, primarily plant and machinery.
In fiscal 2007, we capitalised Rs. 2,370.76 million of project costs for BOT projects, our capital work in
progress increased by Rs. 568.96 million and we purchased Rs. 342.98 million of other fixed assets, Rs.
302.28 million of which was spent on various plant and machinery for our EPC division and the remainder
on vehicles, computers and other assets, In fiscal 2007, we capitalized Rs. 849.21 million (net of
amortization) for the Project Costs of the Indore – Edalabad Road, which was developed by Viva Highways
Private Limited, and Rs. 1,289.39 million for the Project Costs (net of amortisation) for the Pune-Shirur
Road, which was developed by Ashoka Infrastructure Limited. In fiscal 2007, our capital work in progress
included Rs. 124.82 million of project costs for the construction of the Katni Bypass, which was undertaken
by Ashoka-DSC Katni Bypass Private Limited. Ashoka-DSC Katni Bypass Private Limited was
consolidated for the first time in fiscal 2007.

We intend to use some of the net proceeds of the Issue to fund capital expenditures. For further details, see
the section entitled “Objects of the Issue” on page 51 of this Prospectus.

We expect in future years to continue to make capital expenditures to acquire needed fixed assets and
undertake our BOT projects. We propose to finance these expenditures principally our cash flow from
operations, term loans on receivables of operational BOT projects, and short term and working capital loans
until BOT project based loans are made.

Total Indebtedness

As at March 31, 2010, we had total outstanding indebtedness of Rs. 11,220.99 million, Rs. 9.677.57 million
was for secured loans and Rs. 1,543.42 million was for unsecured loans.

As at March 31, 2010, we had five unsecured loans, which include a Rs. 383.45 million loan, which is
repayable after the repayment of the term loan taken to partly finance construction of the NH-6 Bhandara
Road, a Rs. 365.47 million loan, which is repayable after the repayment of the term loan taken to partly
finance construction of the NH-6 Durg Bypass, Chhattisgarh - Maharashtra border Road and a Rs. 794.50
million loan, which is repayable on demand.

The following table sets forth our repayment obligations under the terms of our secured indebtedness as at
March 31, 2010, except for working capital loans:

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 (Rs. in millions)
Payments due during the year ending March 31,

Indebtedness 2011 2012 2013 After 2013

Secured loans for BOT projects 621.52 771.33 881.32 9068.19
Secured loans for other fixed assets 172.31 112.57 91.30 56.17

We have a working capital loan with a maximum drawing limit of Rs. 1,500.00 million. However, the
amount we are able to borrow under the facility is dependent on our level of inventories and debtors, net of
current liabilities. As at March 31, 2010, the amount borrowed under the facility was Rs. 159.07 million.
For further details, see the section entitled “IndebtednessDetails of Borrowings of the Company-Secured
BorrowingsWorking Capital Loan” on page 202 of this Prospectus. In addition, we have sanctioned non-
funds based credit limits with a consortium of banks totalling Rs. 9,000.00 million as at March 31, 2010,
out of which Rs.3,537.32 million of bank guarantees and letters of credit issued by banks in favour of third
parties had been used as at that date. Non-fund based credit limits are contingent liabilities and are not
shown in our statements of assets and liabilities.

All of our financing agreements contain conditions and restrictive covenants. For details, see the section
entitled “Indebtedness” on page 202 of this Prospectus.

Capital Expenditure Commitments

As at March 31, 2010, our capital expenditure commitments were Rs. 1,765.28 million. The following table
sets forth our capital expenditure commitments as at March 31, 2010:

(Rs. in millions)
Capital Expenditure Commitments During
the Year Ending March 31,
2011 2012 2013 After 2013
BOT projects 941.12 756.42 65.55 Nil
Other fixed assets 2.19 Nil Nil Nil

Contingent Liabilities

As at March 31, 2010, an aggregate amount of Rs. 16,225.51 million of contingent liabilities was
outstanding, comprising:

x Rs. 3,537.32million of bank guarantees and letters of credit issued by banks in favour of third
parties;

x Rs. 12,396.57 million in guarantees issued by the Company in favour of banks/financial

institutions, of which:

o Rs. 855.27 million is for loans taken out by the Company’s associates and joint ventures
not controlled by the Company; and

o Rs. 11,541.30 million is for loans taken by the Company’s subsidiaries and other entities
controlled by the Company and against assets purchased.

x Rs. 9.47 million of claims not acknowledged as debts;

x Rs. 3.92 million of liability of duty against export obligations; and

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x Rs. 278.23 million of disputed tax demands, net of taxes paid.

Market Risks

Foreign Currency Risk

Our future capital expenditures, including equipment and machinery, may be in currencies other than
Indian Rupees. To the extent we do not hedge our foreign currency exposure, declines in the value of the
Rupee against such other currencies may increase the Rupee cost of making such purchases. We have not
historically hedged our foreign currency exposure although we did enter into a Rupee-USD swap for
US$0.26 million in fiscal 2010. Our marked to market position on this contract as at March 31, 2010 was a
profit of Rs. 0.10 million. However, in accordance with our accounting policies, this profit was disregarded
for the purposes of our profit and loss statement.

Interest Rate Risk

As at March 31, 2010, we had fixed and floating rate debt that exposed us to market risk as a result of
changes in interest rates. As at March 31, 2010, Rs. 10,238.07 million, or 91.24% of our total debt
outstanding, consisted of variable rate debt obligations. Upward fluctuations in interest rates increase the
cost of debt and interest cost of outstanding variable rate borrowings.

From time to time we enter into derivative transactions to modify the nature of our debt so as to help
manage our interest rate risk. As at March 31, 2010, we had a Rupee-US Interest Rate Swap with a value of
Rs. 1,000.00 million maturing on January 28, 2013 with quarterly settlements, wherein we receive in
Rupees 4% p.a. on Rs. 1,000.00 million and pay in USD 3.15% p.a. on USD 25.38 million (along with an
additional interest whenever applicable). As per the terms of the agreement, the applicability of 3.15%
payment on USD has been knocked out and no longer applies. We made a marked to market profit of Rs.
5.84 million on this derivative contract as at March 31, 2010 but, as per our accounting policies, we
disregarded this profit for the purposes of our profit and loss statement. We made a marked to market loss
of Rs. 32.25 million as at March 31, 2008 and Rs. 12.68 million as at March 31, 2009 and the provision
made for such loss in fiscal 2008 was reversed to the extent of the loss in fiscal 2009 and the provision
made for such loss in fiscal 2009 was reversed in fiscal 2010.

Unusual or Infrequent Events or Transactions

Except as described in this Prospectus, there have been no other events or transactions that, to our
knowledge, may be described as “unusual” or “infrequent”.

Known Trends or Uncertainties

Except as described in “Risk Factors”, “Our Business”, “Management’s Discussion and Analysis of
Financial Condition and Results of Operations on a Consolidated Basis” on pages xii, 91 and 317,
respectively, of this Prospectus, to our knowledge, there are no known trends or uncertainties that are
expected to have a material adverse impact on our revenues or income from continuing operations.

Future Relationship between Cost and Income

Except as described in “Risk Factors”, “Our Business” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations on a Consolidated Basis”, on pages xii, 91 and 317,
respectively, of this Prospectus, to our knowledge there are no known factors that will have a material
adverse impact on our operations and finances.

Competitive Conditions

Please refer to the sections entitled “Our Business – Competition”, “Industry” and “Risk Factors” on pages
127, 72 and xii, respectively, of this Prospectus for discussions regarding competition.

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Significant Developments after March 31, 2010

In April 2010, the Government of Maharashtra issued us a letter of allotment for us to develop a 1,500 KW
per hour hydro electric power plant in Waghur, Maharashtra on a BOOT basis. The estimated EPC cost of
the project is approximately Rs. 300 million. We are yet to enter into the formal agreements with respect to
the project. For further details, see the section entitled “Business-Our Products and Services-BOT Division-
Waghur Hydro Electric Power Plant” on page 119 of this Prospectus.

The Director of Income Tax (Inv.) Nagpur/ Pune issued a warrant of authorisation dated April 15, 2010 (the
“Warrant”) under Section 132(1) of the Income Tax Act, 1961 (the “Income Tax Act”). Pursuant to the
Warrant, the Income Tax Authorities (“IT Authorities”) conducted (i) a search and seizure under Section
132 of the Income Tax Act (“IT Search”) on the premises of the Company, its Promoters, Directors, certain
employees and certain of its subsidiaries and associates, (ii) a survey under Section 133A of the Income
Tax Act on the premises of certain subsidiaries and associates of the Company, and (iii) other related
investigations. Pursuant to the IT Search, the chairman of the Company, Ashok M. Katariya, in his
statement recorded by IT Authorities on April 30, 2010, provisionally disclosed Rs. 200.00 million as “non-
declared income” in the hands of various group cases (which includes both us, the Promoters and Promoter
Group Companies). Subsequently, the Company, through a letter dated May 12, 2010 (the “Letter”) to the
Deputy Director of Income Tax (Investigation), Nashik, revised the provisionally disclosed “non-declared
income” to be Rs. 250.00 million for all the group cases taken together for the period covered under the
provisions of Section 153A of the Income Tax Act, and subject to permission for inter-change subsequent
to obtaining and verifying the copies of seized material. For further details of the IT Search, please see the
section entitled “Outstanding Litigation and Material Developments” on page 342 of this Prospectus.

In the event that the IT Search results in detecting any tax evasion by the Company or its subsidiaries or
associates, the Company or such subsidiary/ associate may be held liable for payment of the unpaid tax
amount along with the interest thereon at the rate of 1% per month from the date of determination of
income by the department on the basis of regular return of income up to the date of assessment pursuant to
the search, as well penalties under Section 271(1)(c) of the Income Tax Act, which ranges from 100% to
300% of the amount of tax evaded. Furthermore, the respective employees and/ or directors of such
companies could also be held liable for violation of, or offences under the provisions of the Income Tax
Act, which may result in fines and/or imprisonment. As of the date of this Prospectus, the Company is not
aware of any action initiated by the Income Tax Authorities in relation to the IT Search. However, there
can be no assurance that the income tax authorities will not undertake any further actions or require the
payment of additional taxes or penalties.

In May 2010, we were awarded the concession for the NH-6 Sambalpur-Baragarh road in Orissa on a BOT
basis, the estimated EPC cost of which is Rs. 10,080.00 million. In May 2010, we were awarded the
concession for the NH-4 Belgaum-Dharwad road in Karnataka on a BOT basis, the estimated EPC cost of
which is Rs. 6,300.00 million. We entered into the concession agreements for both of these BOT projects in
June 2010. For further details, see the section entitled “Business - Our Services and Products-BOT
Division-BOT Road Projects-Construction not Complete” on page 110 of this Prospectus.

On May 10, 2010, the Company’s shareholding in Ashoka Highways (Durg) Limited was diluted from
60.19% to 53.18% and the Company’s shareholding in Ashoka Highways (Bhandara) Limited was diluted
from 53.16% to 52.04%. The Company’s beneficial interest in both of these subsidiaries is expected to
decrease to 51% before the end of fiscal 2011. For details, see the section entitled “History and Certain
Corporate Matters” on page 137 of this Prospectus.

Except as stated above, there are no subsequent developments after March 31, 2010 that we believe are
expected to have material impact on our reserves, profits, earnings per share or book value.

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 OUTSTANDING LITIGATION AND MATERIAL DEVELOPMENTS

Save as stated below there are no outstanding litigation, suits, criminal or civil prosecutions, proceedings
or tax liabilities against the Company, our subsidiaries, our directors, our Promoter and Group Companies
and there are no defaults, non payment of statutory dues, over-dues to banks/financial institutions/small
scale undertaking(s), defaults against banks/financial institutions/small scale undertaking(s), defaults in
dues payable to holders of any debenture, bonds and fixed deposits and arrears of preference shares issued
by the Company, defaults in creation of full security as per terms of issue/other liabilities, proceedings
initiated for economic/civil/any other offences (including past cases where penalties may or may not have
been awarded and irrespective of whether they are specified under paragraph (I) of Part 1 of Schedule XIII
of the Companies Act) other than unclaimed liabilities of the Company and no disciplinary action has been
taken by SEBI or any stock exchanges against the Company, our Promoter or Directors. Unless otherwise
specified in this section, “Ashoka Group” refers to the partnership firm, Ashoka Group.

Criminal litigation filed against the Company, the Promoters and the Directors

Criminal litigation against the Company

1. A criminal complaint has been filed by J. K. Varma (the “Complainant”) against the Company
through its executive director R. C. Burad and others in the court of Judicial Magistrate First
Class, Dewas under Sections 107, 120B, 166, 167, 405, 415 of the Indian Penal Code, 1860. The
main grievance of the Complainant is that the accused has unauthorizedly collected the toll tax
from the toll plaza situated at Km. 159/4 of S.H.-18 on Bhopal - Ujjain Road. The court has
passed an order for the issue of process. The accused has filed a criminal writ petition before the
Indore Bench of Madhya Pradesh High Court challenging the said order. The criminal writ
petition has been disposed off with the direction to file an application for discharge before the trial
court. A discharge application has been filed with the Judicial Magistrate First Class, Dewas, and
the matter is currently pending.

2. A criminal complaint has been filed by Santosh Moghe under Section 3(1)(10) of the Schedule
Caste and Schedule Tribes (Prevention of Atrocities) Act, 1989 against certain employees of the
Company before the Judicial Magistrate First Class (“JMFC”), Malshiras. The matter is currently
pending. The JMFC has ordered investigation by Malshiras Police before issuing process. The
employees of the Company have preferred a criminal writ petition in the Bombay High Court,
which was withdrawn. The Bombay High Court had stayed the order of the JMFC during the
period of of the notice of the writ petition to the Complainant. The writ petition has been
withdrawn. The matter is currently pending for police report under section 156(3) of the Code of
Criminal Procedure, 1973 in the court JMFC, Malshiras for issue of process.

3. The Government of Maharashtra has filed a criminal complaint against the Company before the
Judicial Magistrate, First Class, Murtijapur. The complaint was registered for violation of various
provisions of the Contract Labour (Regulation & Abolition) Act, 1974, which include employing
contract labour without possessing a contract labour license. The complaint is currently pending.

4. The Government of Maharashtra has filed a criminal complaint, against the Company, before the
Judicial Magistrate, First Class, Murtijapur. The complaint was registered for violation of various
provisions of the Interstate Migrant Workmen (Regulation of Employment and Conditions of
Service) Act, 1979 and Central Rules, 1980 which include employing inter-state migrant workmen
without obtaining a license. The complaint is currently pending.

5. Ganpat Machhindra Todmal and others have lodged a criminal complaint against the Company
before the court of Judicial Magistrate, First Class at Ahmednagar under section 379, 441, 418,
420, 427, 504, 506, 425 and 34 of the Indian Penal Code alleging that the accused had illegally

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 and without any prior authorization extracted the Murum for their road construction project at
Ahemednagar-Aurangabad Highway and this caused loss to the property of the complainant and
his plantation of Chickoo trees on the said property and has claimed a compensation of Rs.1.20
million. No settlement could be reached in the said matter. The matter is pending.

6. The Commissioner of Income Tax, Nashik has passed an order against the Company and Ashok
M. Katariya (Director) and Satish D. Parakh (Director), in their capacity as directors of the
Company, stating that there were delays in payment of tax deducted at source of Rs. 1.06 million,
Rs. 2.99 million, Rs. 12.41 million, Rs. 8.15 million and Rs. 3.45 million for the assessment years
2001-02, 2002-03, 2003-04, 2004-05 and 2005-06, respectively. The Company has paid the tax
deducted at source along with interest for the delay. However, the Commissioner of Income Tax
has initiated criminal proceedings against the Company, Ashok M. Katariya and Satish D. Parakh.
The matter is currently pending.

7. There are 15 criminal complaints filed against the employees of the Company under various
provisions of the Indian Penal Code, 1860 and the Motor Vehicles Act, 1988. The matters are
pending.

8. The Factory Inspector, Durg Sub-Division, Durg has issued summons to M/s. Vijay Nirman
Company Pvt. Ltd. under section 105 of the Factories Act, 1948 notifying that the case no.
84/F.A/2009 (Cri.) has been kept for hearing on January 20, 2010 for non-compliance with
registration requirements under the Factories Act, 1948. M/s. Vijay Nirman Company Pvt. Ltd., a
sub-contractor of the Company, has replied denoting that the responsibility of obtaining
permissions/approvals shall rest with the Company as the principal contractor. The matter is
pending at Judicial Magistrate First Class, Labour Court, Rajnandgaon, Chattisgarh.

Litigation involving the Promoters and/or the Directors

Criminal cases

1. The Commissioner of Income Tax, Nashik has passed an order against the Company and Ashok
M. Katariya and Satish D. Parakh, in their capacity as directors of the Company, stating that
there were delays in payment of tax deducted at source of Rs. 1.06 million, Rs. 2.99 million, Rs.
12.41 million, Rs. 8.15 million and Rs. 3.45 million for the assessment years 2001-02, 2002-03,
2003-04, 2004-05 and 2005-06, respectively. The Company has paid the tax deducted at source
along with interest for the delay. However, the Commissioner of Income Tax has initiated
criminal proceedings against the Company, Ashok M. Katariya and Satish D. Parakh. The
matter is currently pending.

2. Vitthal Ganpat Ghare filed a criminal complaint against Satish D. Parakh, Ashish A. Katariya
and Yogesh Dixit under Section 138 of the Negotiable Instrument Act, 1881 alleging that the
cheque issued by Viva Infrastructure Private Limited in relation to the development agreement
was dishonoured. The criminal complaint was decided against Satish D. Parakh, Ashish A.
Katariya and Yogesh Dixit. Subsequently, Satish D. Parakh, Ashish A. Katariya and Yogesh
Dixit have filed a criminal revision petition before the District and Session Court which stayed
the criminal proceeding against the said defendants pending before the lower court. Both civil
and criminal matters are currently pending.

3. Aditya Satish Parakh had entered into an agreement for sale of land (S. No. 137/A, Manori,
Dindori) with Ganpat Bhaurao Shelke. However, since the landowners were obstructing the
possession, Aditya S. Parakh filed a civil suit for injunction in the Court of Civil Judge Junior
Division, Dindori for restraining the land owners from dispossessing him. In this matter, land
owners reached a compromise and consent decree was passed in favour of Aditya Parakh.
However, after the consent decree was passed, M/s Samrat Activities and Thakkar Developers
attempted to take possession of the said land forcefully. To avert such attempts, Aditya Parakh
filed a criminal complaint against them. The matter is pending. Simultaneously M/s Samrat

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 Activities and Thakkar Developers also filed a criminal complaint against Aditya S. Parakh and
others. M/s Samrat Activities and Thakkar Developers have also filed a special civil suit in the
Court of Civil Judge (Senior Division), Nashik against the land owners, Ganpat Bhaurao Shelke
and Aditya Satish Parakh. In the said suit, the Court has granted ad-interim injunction in favour
of plaintiff and the matter is currently pending. Simultaneously Aditya Satish Parakh has also
filed suit for injunction & declaration against M/s Samrat Activities and Thakkar Developers in
the court of Civil Judge Junior Division at Dindori. The matter pending before the Dindori
Court has been transferred to Civil Judge Senior Division, Nashik and the matter is pending.

4. A criminal complaint has been filed by Vadilal Milk Products Limited (“Complainant”), against
Ashoka Buildwell and Developers Private Limited, Ashok M. Katariya, Satish D. Parakh and
Deepak M. Katariya under Section 420 of the Indian Penal Code, 1860, in the Court of the
Metropolitan Magistrate, Andheri, Mumbai. The Complainant has alleged that the directors of
the Ashoka Buildwell and Developers Private Limited have cheated the Complainant by not
paying charges for management services provided by the Complainant. The amount claimed by
the Complainant aggregates approximately to Rs. 1.38 million. The matter is currently pending.

5. The Government of Maharashtra through the Urban Land Ceiling Department, Nashik has filed
a criminal complaint against Ashoka Buildwell and Developers Private Limited, Ashok Katariya
(as director) and Deepak M. Katariya (as erstwhile director) (“Respondents”) before the Judicial
Magistrate, First Class, Nashik. Respondents were charged with inducting tenants into a flat
allotted to the government allottees. Ashok Katariya has alleged that Deepak M. Katariya
inducted the tenants without his knowledge and further contended that the case against him
should be dismissed. In the meanwhile, the nominees of the government were given possession
of the flats allotted to them by Ashoka Buildwell & Developers Private Limited. Consequently,
Ashok Katariya and Deepak Katariya have filed applications for discharge, which are currently
pending for proceedings on the discharge applications.

6. A criminal complaint had been filed by Pratap Kesharchand Doshi, against Ashoka Builders
(Nashik) Private Limited, Ashok M. Katariya, Sunil B. Raisoni and others, in the court of
Judicial Magistrate First Class, Baramati under Section 138 of the Negotiable Instrument Act,
1881. The complaint pertains to the dishonour of cheques amounting to Rs. 0.79 million. Ashok
M. Katariya, in his individual capacity, had filed revision against the issuance of process. The
said revision was allowed and the Sessions Court, Baramati, quashed the process issued against
Ashok Motilal Katariya. P. Doshi has filed a criminal revision petition, in the Bombay High
Court, challenging the order of the Sessions Court. Ashoka Builders (Nashik) Private Limited
had also filed a revision application before the Sessions Court, Baramati, challenging the order
of issuance of process against the remaining accused. The said revision was dismissed.
Thereafter, Ashoka Builders (Nashik) Private Limited had filed a criminal application before the
Bombay High Court under section 482 of the Code of Criminal Proedure, 1973 against the
judgment and order passed by revisional court Baramati in respect of other accused. The said
revision application was admitted but the prayer for interim relief was rejected. Therefore a
special leave petition was filed before the Supreme Court. The Supreme Court stayed the
proceedings in the lower courts pending service of the notice. The matter is pending.

7. Five criminal complaints, under Section 138 of the Negotiable Instruments Act, 1881, have been
filed against R. K. Developers. The aggregate amount involved is Rs. 1.57 million. Ashok
Motilal Katariya, Vimal Bansilal Raisoni and Shobha Satish Parakh are the partners of the firm.
The complaints are pending.

8. One criminal complaint under Section 138 of the Negotiable Instruments Act, 1881 has been
filed against Trimurti Developers. The aggregate amount involved is Rs. 25,000. Ashok Motilal
Katariya, Satish Dhondulal Parakh and Bansilal B. Raisoni are the partners of the firm. The
complaint is pending.

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 9. Complaints under section 138 of the Negotiable Instruments Act, 1938 have been filed by Mr.
Haribhau S. Tile, Mr. Madhukar Tile, Mr. Balu L. Tile, Mr. Shivaji L. Tile and Mr. Suman S.
Tile against Viva Infrastructure Pvt. Ltd., Ashok Motilal Katariya and Satish Dhondulal Parakh,
for dishonour of cheque cumulatively amounting to Rs.5.42 million before the court of the
Judicial Magistrate First Class, Nasik. The matters are currently pending.

Civil cases

1. Deepak M. Katariya (the “Applicant”) has filed a civil miscellaneous application no. 321/2000
against Ashok M. Katariya, the Urban Land Ceiling Department and others in the court of the
Civil Judge, Senior Division, Nashik for appointment of an arbitrator under Section 20 of the
Arbitration and Conciliation Act, 1940. Earlier, the Applicant was partner in two firms, namely,
Ashoka Builders and Ashoka Group and shareholder in two companies, namely, Ashoka
Buildwell and Developers Private Limited and Hotel Evening Inn Private Limited. Under the deed
of partnership, disputes were to be settled by an arbitrator. The Applicant allegedly appointed
Suresh Kela as arbitrator for partition of commonly held properties. Suresh Kela drafted his award
which was not accepted by Ashok M. Katariya but was accepted by the Applicant. In the civil
miscellaneous application, the Applicant has alleged that as provided in the draft award, Applicant
is entitled to receive cash and certain properties. Further, the Applicant has alleged that Ashok M.
Katariya intends to alienate the properties that were to be awarded to the Applicant. The Second
Joint Civil Judge, Nashik passed an order restraining Ashok M. Katariya from alienating his
personal bungalow. This order was challenged by Ashok M. Katariya and subsequently, the order
restraining Ashok M. Katariya from alienating his personal bungalow was vacated by the Civil
Judge Senior Division, Nashik. The Applicant has filed the instant application for issuance of
directions to the respondents to file the impugned arbitration agreement with Suresh Kela and
directed Suresh Kela (one of the respondents) to declare an award if he agrees to continue as the
arbitrator. If Suresh Kela disagrees to act as the arbitrator, the Applicant has prayed that the court
should appoint a new arbitrator and complete the arbitration proceedings within a stipulated time.
The Applicant prayed for an injunction to restrain Ashok M. Katariya from selling the disputed
properties. Ashok M. Katariya has denied the existence of any arbitration agreement. Further,
none of the four firms mentioned above have been made a party to the suit. The matter is currently
pending. The Applicant has filed another application pursuant to the civil miscellaneous
application no. 321/2000 filed before the Civil Judge, Senior Division, Nashik for an order to
restrain Ashok M. Katariya and his relatives, partners or persons from changing the nature of the
Company and/or its properties. The Applicant has also sought an injunction order for restraining
Ashok M. Katariya from proceeding to call for public issue of sale of the shares of the Company.
The matter is pending.

2. Deepak M. Katariya (the “Plaintiff”) has filed a miscellaneous application in the Bombay High
Court against Hotel Evening Inn Private Limited, Ashok Katariya and Suresh Chaturbhuj Kela.
Earlier, Hotel Evening Inn Private Limited had filed a civil suit against Deepak M. Katariya,
Ashok Katariya and Suresh Kela stating that under an alleged arbitration agreement executed by
Deepak M. Katariya and Ashok Katariya; Suresh Kela was appointed as an arbitrator in respect of
arbitration between the shareholders of Hotel Evening Inn Private Limited i.e. Deepak M. Katariya
and Ashok Katariya, with Hotel Evening Inn Private Limited as the subject matter of the
arbitration. Hotel Evening Inn Private Limited and Ashok Katariya denied the existence of such
arbitration agreement. The court decreed that the arbitration agreement was null and void and
hence, not binding on Hotel Evening Inn Private Limited. The said judgment was challenged by
Deepak M. Katariya in a civil appeal. This appeal was dismissed on grounds of being barred by
limitation. Hence, Deepak M. Katariya filed the present miscellaneous application. The appeal is
currently pending.

3. Deepak M. Katariya has filed civil appeals (Nos. 99/2005, 100/2005 and 101/2005) before the
District Judge, Nashik, against the decrees in the civil suits (Nos. 349/1998, 355/1998, 398/1998)
respectively. The said civil suits were filed by Ashoka Group, Ashoka Buildwell & Developers
Private Limited and Ashoka Builders, against Deepak M. Katariya, Ashok Katariya and Suresh

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 Kela, challenging the appointment of Suresh Kela as arbitrator under the alleged arbitration
agreement executed by Deepak M. Katariya and Ashok Katariya and the validity of the agreement.
Ashoka Group, Ashoka Buildwell & Developers Private Limited, Ashoka Builders and Ashok
Katariya denied the existence of the arbitration agreement. The court decreed that the arbitration
agreement was null and void and hence, not binding on Ashoka Group, Ashoka Buildwell &
Developers Private Limited and Ashoka Builders. The said judgments have been challenged by
Deepak M. Katariya in civil appeals (Nos. 99/05, 100/05 and 101/05). The appeals are currently
pending.

4. A special civil suit has been filed in the court of the Civil Judge (Senior Division) Nashik by Smt.
Parvatabai Tidke and others (the “Plaintiffs”) against Ashok Katariya, Satish Parakh and Ashish
A. Katariya (the “Defendants”). The Plaintiffs, who are the land owners, have stated that the
Defendants have committed a breach of the development agreement entered into between the
Plaintiffs and the Defendants. The Plaintiffs have prayed for the cancellation of the development
agreement and repossession of their property. As per the development agreement, the total
consideration payable to them is Rs. 2.6 million plus 4000 square feet built up area after
development of the said land. One M/s Thakker Developers have also impleaded themselves as a
party in the said suit. Further, M/s. Thakker Developer has filed a suit (Sp. C. No. 291/96) against
the Plaintiffs, wherein the Defendants have impleaded themselves as a party. Both the suits are
currently pending.

5. Sharda D. Patel and others (the “Plaintiffs”) have filed a suit, in the court of Civil Judge (Senior
Division) Nashik, against Ashok Katariya, Asha Ashok Katariya and others (the “Defendants”).
The Plaintiffs are the owners of land adjoining the property owned by the Defendants. The
Plaintiffs have claimed access to land adjoining the Defendants’ property and have also sought an
injunction against final approval of the lay out with respect to the Defendants’ property from the
Nashik Municipal Corporation. However, no injunction was granted, consequent whereto the
Plaintiffs filed civil miscellaneous appeal in the court of District Judge, Nashik. The said appeal
has been dismissed. The original suit is currently pending before Civil Judge Senior Division,
Nashik.

6. A special civil suit has been filed by Ashok Katariya (the “Plaintiff”) against Prakash Nigal and
others (the “Defendants”) for specific performance of a contract. The Plaintiff claimed that the
Defendants have executed an agreement of sale in favour of the Plaintiff regarding the land
situated at Nashik and accepted an advance of Rs. 0.05 million in respect thereof and have sought
the specific performance of the said agreement. The court has granted an interim stay in favour of
the Plaintiff. The matter is currently pending.

7. A special civil suit has been filed before Civil Judge, Senior Division, Nashik by Satish D. Parakh
against Pandurang T. Khaire for specific performance of a contract. Satish D. Parakh claimed that
Pandurang T. Khaire executed a sale receipt of the land situated at Nashik in his favour and
accepted an advance of Rs. 0.10 million. The court has granted an interim stay in favour of Satish
D. Parakh. The matter is pending for hearing.

8. A special civil suit has been filed by Satish D. Parakh against Balkrushna S. Gadhave and others
before Civil Judge, Senior Division, Nashik, for specific performance of a contract. Satish D.
Parakh has claimed that Balkrushna S. Gadhave & others executed a sale receipt of land situated at
Village Advan, Tal-Igatpuri, Dist-Nasik in his favour and accepted an advance of Rs. 0.015
million. The matter is currently pending.

9. A special civil suit has been filed by Satish D. Parakh against Mohan Gogaji Adole and others
before Civil Judge, Senior Division, Nashik, for specific performance of a contract. Satish D.
Parakh has claimed that Mohan Gogaji Adole and others executed a sale receipt of land situated at
Village Kurnoli, Tal-Igatpuri, Dist-Nasik in his favour and accepted an advance of Rs. 0.01
million. The matter is currently pending.

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10. A civil suit has been filed by Satish D. Parakh against Ramchandra Chauvan for declaration of
ownership and injunction against wrongful dispossession of one Markal property before Chief
Justice Junior Division, Khed court. The matter is pending for return of summons.

11. A civil appeal has been filed by Satish D. Parakh against Keru Knahu Chauvan against judgment
and order passed by the Circle officer, Khed in relation to wrong mutation entry filed by the Circle
Officer. The matter is pending for hearing.

12. Viva Infrastructure Private Limited through its director, Satish D. Parakh, has filed a civil suit
before Civil Judge Senior Division, Nashik against Vitthal Ganpat Ghare for permanent injunction
and compensation of Rs. 0.20 million for non-performance under one development agreement
which was executed by Vitthal Ganpat Ghare in favour of Viva Infrastructure Private Limited in
relation to certain property located in Talegaon, Igatpuri. Pursuant to the order of the court, Vitthal
Ganpat Ghare had given an undertaking that he will not dispose of the property without the
consent of the court. However, the court allowed the application of interim injunction. Separately,
Vitthal Ganpat Ghare filed a criminal complaint against Satish D. Parakh, Ashish A. Katariya and
Yogesh Dixit under Section 138 of the Negotiable Instrument Act, 1881 alleging that the cheque
issued by Viva Infrastructure Private Limited in relation to the development agreement was
dishonoured. The court has issued process against Satish D. Parakh, Ashish A. Katariya and
Yogesh Dixit. Subsequently, Satish D. Parakh, Ashish A. Katariya and Yogesh Dixit have filed a
criminal revision petition before the District and Session Court which stayed the criminal
proceeding against the said defendants pending before the lower court. Both civil and criminal
matters are currently pending.

13. The Commissioner of Income Tax, Nashik has passed an order against the Company, Ashok M.
Katariya (Director) and Satish D. Parakh (Director), in their capacity as directors of the Company,
stating that there were delays in payment of tax deducted at source of Rs. 1.06 million, Rs. 2.99
million, Rs. 12.41 million, Rs. 8.15 million and Rs. 3.45 million for the assessment years 2001-02,
2002-03, 2003-04, 2004-05 and 2005-06, respectively. The Company has paid the tax deducted at
source along with interest for the delay. However, the Commissioner of Income Tax has initiated
criminal proceedings against the Company and its directors Ashok M. Katariya and Satish D.
Parakh. The matter is currently pending.

14. The Assistant Commissioner of Income Tax, Nashik Circle had issued an assessment order to
Ashok M. Katariya for the assessment year 2000-01. The order pertains to disallowance of
business loss and the loss on sale of land to be considered as capital loss, and as ad-hoc additions
due to reduction in gross profit ratio. Ashok M. Katariya Katariya filed an appeal against the said
assessment order before the Commissioner of Income Tax (Appeals), Nashik, which was decided
in his favour. The Income Tax Department has preferred an appeal against the order of
Commissioner of Income Tax, Appeals, Nashik before the Income Tax Appellate Tribunal, Pune
and the matter was partly decided in favour of Income Tax Department. Aggrieved by the said
order, Katariya has preferred an appeal before the Bombay High Court. He has, however, paid the
demand of Rs. 0.28 million. The appeal has been admitted by the Bombay High Court and is
currently pending.

15. Zelabai Deore has filed a motor accident claim petition in the Court of Member, Motor Accident
Claim Tribunal, Nashik against Ashok Motilal Katariya, ICICI Lombard General Insurance
Company Limited and others on account of the negligent driving by driver of car owned by Ashok
Katariya due to which she had sustained injury and incurred expenses for hospitalization and
medicine and claimed a compensation of Rs.0.15 million. The matter is currently pending.

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Litigation against the Company

Civil Cases

1. Jugalkishor B. Ginodiya and another (the “Plaintiffs”) have filed a suit against the Company and
the Government of Maharashtra before the Civil Judge Senior Division, Dhule. The Government
of Maharashtra has awarded a project for the construction of a road outside Dhule city to the
Company. The Plaintiffs claimed that they own a piece of land bearing Survey no. 506 / 2B2
admeasuring 1 hectare and 94 ares (the “Property”). The Plaintiffs further alleged that certain
portion of the suit property was proposed to be acquired for construction of the Surat-Nagpur
Bypass and the requisite notifications in respect of the same were made under the Land
Acquisition Act, 1894. The project for the construction of the said bypass was awarded to the
Company by the Government of Maharashtra. The Plaintiffs filed their objections to the
notification under the Land Acquisition Act, 1894. However, no further action was taken in
respect of the objections. The Plaintiffs later contended that the Property has been illegally
encroached upon by the Company. The Plaintiffs have claimed Rs. 1.8 million with 18 per cent
interest per annum, compensation for future mesne profits estimated at Rs. 0.2 million and Rs.
0.001 million as costs for the legal notice. The suit is currently pending.

2. An appeal has been filed by Ashoka Info Private Limited (now merged with the Company) against
the State of Maharashtra and another before the Revenue Minister, Government of Maharashtra.
During the execution of the project for construction of the Ahmednagar-Karmala Road by Ashoka
Info Private Limited, dubber and murum (minerals) were extracted at the construction site. The
Tahsildar, Karjat issued an order directing Ashoka Info Private Limited to pay a royalty of Rs.
2.17 million for extraction of the minerals. Ashoka Info Private Limited contended that the
Collector had granted permission to it to extract minerals and pursuant to that land was purchased.
Ashoka Info Private Limited appealed to the Sub-Divisional Officer, Karjat who ordered the
payment of a royalty of Rs. 0.243 million. Ashoka Info Private Limited appealed to the Additional
Collector who quashed the Sub-Divisional Officer’s order and confirmed the Tahsildar’s order.
Ashoka Info Private Limited filed a revision application before the Revenue Commissioner,
Nashik who returned the matter to the Additional Collector. The Additional Collector again passed
an order directing Ashoka Info Private Limited, to pay an amount of Rs. 0.26 million. Ashoka Info
Private Limited filed a revision application before the Revenue Commissioner, Nashik. The
Revenue Commissioner set aside the order of the Additional Collector and confirmed the order
passed by the Tahsildar, Karjat. Ashoka Info Private Limited filed an appeal, before the Revenue
Minister, against the order passed by the Revenue Commissioner, Nashik. The appeal is currently
pending.

3. A writ petition has been filed by Chandrakant Gattani (the “Petitioner”) against Ashok Info
Private Limited (now merged into the Company) and the State of Maharashtra before the Bombay
High Court. The Petitioner had filed the writ petition against i) collection of toll twice at two toll
booths along Ahmednagar-Karmala road; ii) collection of toll before the completion of the
improvement works; and iii) increase in toll rates every three years. Ashok Info Private Limited
has conceded that the terms of agreement with the Government of Maharashtra permitted earlier
collection of toll. However, subsequent to the amendment of the agreement, Ashok Info Private
Limited was permitted to commence collection of toll at the end of each phase. The Petitioner has
prayed that the court set aside clauses of the Government’s sanction order that permits the
Company to collect toll at the end of each phase and strike down the rate of increase of toll every
three years from 8 per cent to 5 per cent. The petition is currently pending.

4. The Sub Divisional Officer, Mhow has passed an order for payment of royalty aggregating
approximately Rs. 0.22 million for murum allegedly extracted by the Company without the
requisite permission. An appeal has been filed by the Company, before the Additional
Commissioner, Indore, against the Madhya Pradesh Government and Sarpanch, Gram Panchayat,
Simrol, Tehsil Mhow. The Additional Commissioner has called for the records and proceedings in
relation to this matter. The appeal is currently pending.

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5. A public interest litigation has been filed by Mohd. Rafique and Rajesh Baheti, Secretary of
Khandwa Truck Owners Association, (the “Plaintiffs”) against the State of Madhya Pradesh,
Madhya Pradesh Rajya Setu Nirman Nigam Limited, Viva Highways Private Limited (“VHPL”)
and others before the Jabalpur Bench of Madhya Pradesh High Court. The Plaintiffs have
contended that two toll booths at Deshgaon and Dulhar Phata on the Indore – Edalabad road have
been illegally constructed as they were not envisaged under the concession agreement signed
between the Madhya Pradesh Rajya Setu Niman Nigam Limited and VHPL for the construction of
the Indore- Edalabad road. VHPL has stated that as per the concession agreement, in the event of
the construction of a bypass or road due to which there is leakage in the collection of toll, VHPL
would be permitted to erect check posts such that the leakage in collection of toll was minimized.
The court vide an interim order dated July 28, 2004, directed that VHPL should give additional
concession to the frequent users of the road by way of issuing them monthly passes vide which 50
per cent toll shall be charged on local commercial vehicles frequently plying the road. The matter
is currently pending.

6. Manoj Pawar and others (“Plaintiffs”) have filed a civil suit against the Madhya Pradesh Public
Works Department, the Company, Ashoka Infraways and others before the Additional District
Judge, Dewas. The Company had entered into a concession agreement with the Madhya Pradesh
Public Works Department to construct the Dewas Bypass. Under the terms of the concession
agreement it was permitted to erect three toll booths for collection of toll tax. A notification to this
effect was issued in the State Gazette pursuant whereto a suit was filed by the Plaintiffs seeking a
declaration that the collection of toll was illegal and a permanent injunction against the collection
thereof. The court rejected the application for temporary injunction consequent whereto the
Plaintiffs filed an appeal seeking the appointment of a Commissioner. The Company and Ashoka
Infraways filed a writ petition before the Indore Bench of the Madhya Pradesh High Court, against
the order appointing the Commissioner. The writ petition has been admitted and the civil suit has
been stayed pending final disposal of the writ petition. The matter is pending.

7. A public interest litigation (“PIL”) has been filed by Vyankatesh Dhondu Kulkarni (the
“Petitioner”) against the State of Maharashtra and others including the Company. The Petitioner
has filed the PIL in relation to the construction of a major bridge across Mandave nalla at Mahad-
Pandharpur road on State Highway No.70 (the “Bridge”) undertaken by the Company. The Bridge
was to be completed in 37 days whereas the prescribed period for construction was one year. The
Petitioner alleged that the Bridge could not be constructed within 37 days. The Petitioner further
alleged that the respondents had failed, inter alia, to strictly follow the tender conditions, check
the constructions, grant timely approvals to designs after scrutiny and get monthly toll collection
data. Furthermore, the Petitioner has stated that in accordance with the relevant law, the Company
is entitled to collect only the capital outlay and that the Company’s total collection of toll exceeds
the total capital outlay as reflected in their tender documents. Consequently, it was claimed that
the government should recover the excess toll collected by the Company. The Petitioner has also
raised grievance regarding the change in the prime lending rates of banks and the effect thereof on
the concession period. The Petitioner has, inter alia, prayed for initiation of a departmental inquiry
against the officials of the Public Works Department for causing loss to the government. The toll
collection period granted to the Company expired on May 23, 2003 and the said road has already
been handed over to the government. The matter is currently pending and is yet to be admitted.

8. A public interest litigation (“PIL”) has been filed by one Changede Shashikant Premraj and others
(the “Petitioners”) against the State of Maharashtra and others including the Company. The
Petitioner has alleged that, initially the cost of the tender was Rs. 750 million, which was
unilaterally increased to Rs.1080 million. The Petitioners have filed this PIL for appointment of an
independent Court Commissioner to inspect the four lane state highway and ascertain the actual
position of the road in question. The Petitioners constituted a panel of experts for submitting a
report on the issues raised by the Petitioners. Accordingly the panel was constituted and the report
has been submitted. The State of Maharashtra also appointed a committee of experts to submit the
report reviewing the report submitted by the panel of experts constituted by Petitioners. The report

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 has been accepted by the State of Maharashtra and has been filed before the Bombay High Court.
The Company was given an opportunity to file an affidavit on the report of the experts of the State
of Maharashtra. The Petitioners have filed an affidavit in relation to the report of the experts
before the Bombay High Court stating that the report did not include the observations of one the
government representatives. The Petitioners have filed an additional affidavit producing additional
documents obtained through RTI subsequently. By an order dated September 23, 2009, the
Bombay High Court directed the Principal District and Sessions Judge, Pune to conduct a Lok
Adalat where all cases relating to offences committed for non-payment of toll at Pune-Shirur road
are taken up and disposed off. On July 1, 2010, the Bombay High Court has directed the Principal
District and Sessions Judge, Pune to indicate a number of cases pending before the courts at Pune
and efforts made to hold the Lok Adalats for disposal of cases. The Lok Adalat at Shirur was held
on December 12, 2009 where 15 cases were disposed off. The matter is pending.

9. Bhavanr Kanvar Rajput has filed a civil suit in the court of the Additional District & Sessions
Judge, Chittorgarh against the Company claiming compensation of Rs. 0.18 million for death of
her son who drowned in water which had accumulated in the pits excavated by the Company for
execution of their work. The matter is currently pending.

10. Mahesh Durbude has filed a civil suit in the Court Civil Judge Senior Division, Bhandara against
Sugratabai Sakhare and others including the State of Maharashtra and the Company claiming that
his property was illegally acquired by the State of Maharashtra for road widening project which
was allotted to the Company and hence has claimed declaration of ownership over the property
and compensation of Rs. 0.04 million from the State Government. The matter is currently pending.

11. Two civil suits have been filed by Kesharbai and Rajubai respectively against the State of Madhya
Pradesh and the Company and others before Additional District Judge, Nimach, Madhya Pradesh,
for permanent injunction against wrongful acquisition of landed property by the State of Madhya
Pradesh. Interim application for injuction in both the suit are dismissed by the trial court and
original plaintiff filed appeal against the said order of dismissal of interim application and the
matters are pending in appeal before the Indore Bench, Madhya Pradesh High Court.

12. Yashwant Sakhare and others had filed a civil suit before the Civil Judge Senior Division, Pune
with respect to encroachment of land by the State Government in relation to Pune Ahmednagar
Road project. The Company was included as a necessary party. The Civil Judge Senior Division,
Pune decided the case in favour of Yashwant Sakhare and others. The State Government along
with the Company has filed an appeal before the District Court, Pune which set aside the judgment
of the Civil Judge Senior Division, Pune. Yashwant Sakhare has filed second appeal before the
Bombay High Court where the application for interim relief has been rejected. The matter is
pending.

13. The plaintiff, Tikaram Bhirilal, has filed a civil suit before the Civil Judge Class II at Indore
against the Company and State of Madhaya Pradesh for declaration and injunction. The plaintiff
has claimed that he is in possession of block no. 461 of village Bhouri Taluka – Hujur Dist.
Bhopal for the last 30 years. The said land has been owned by the State of Madhaya Pradesh but
as the plaintiff has been in possession of the said land for 30 years, he is claiming title to the land
under adverse possession. Therefore, he has claimed interim injunction against the Company and
the State of Madhaya Pradesh from excavating the soil / murum from the said land. Further, the
plaintiff has also sought a declaration that the order for excavation dated June 12, 2009 for soil
issued by the State of Madhya Pradesh in favour of the Company. Application for temporary
injunction filed by the Plaintiff has been allowed by the court. The matter is currently pending for
hearing on application for rejection of plaint filed by Company.

14. Gram Panchayat, Perne and others have filed a writ petition against the State of Maharashtra and
others before the Bombay High Court for wrongful acquisition of land, bearing Gat No. 944
located in village Perne, by the State of Maharashtra for the construction of a toll naka. The matter
is currently pending.

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15. Polly Engineers and Technical Consultants Private Limited has filed a civil suit against the
Company in the court of District Judge, Mandsaur, Madhya Pradesh for the recovery of
compensation of Rs. 2.51 million for delay in payment for various civil works provided by the
plaintiff for the project at Mandsaur. The Company appeared in the said suit and has filed an
application under Order 7 Rule 11 challenging the jurisdiction and pointing out the alternate
remedy of conciliation / arbitration available to the parties under the agreement. The District Court
ruled that the jurisdiction of the Nashik Court is agreed to in the contract and therefore the plaint
be returned to Plaintiff for production before the Civil Judge Senior Division Nashik.The matter is
pending.

16. Deepika Sanjay Saluke has filed a complaint before the District Consumer Dispute
Redressal Forum, Surat against the Company claiming compensation under Section 13(1)(a) of the
Consumer Protection Act, 1986 for Rs. 0.158 million towards the cost incurred by her as a result
of an accident which occurred on the road which was under construction undertaken by the
Company. The matter is pending.

17. Bharat Kamble (the “Plaintiff”) has filed a civil suit before the Civil Judge, Senior Division,
Nashik for declaration and injunction against the Company from dispossessing him from the
nursing home under the name of “Suman Hospital” situated at N34/S1/12/01/04, Rane Nagar,
Nashik which was rented to him by the Company under the provisions of the Maharashtra Rent
Control Act, 1999. The matter was transferred to the Civil Judge, Senior Division, Nashik which
granted the ad-interim relief in favour of the Plaintiff which was subsequently vacated by the Civil
Judge, Senior Division, Nashik. The Plaintiff has filed a civil miscellaneous appeal before the
District and Session Judge, Nashik against the order of the Civil Judge, Senior Division, Nashik
vacating the ad interim relief. The matter is currently pending.

18. Ramabai Tank (the “Appellant”) has filed a civil miscellaneous appeal before the Court of
Additional District Judge, Neemuch against the order dated July 22, 2009 passed by First Civil
Judge, Class II, Jawad, Dist. Neemuch. The Appellant had filed a civil suit for declaration and
permanent injunction against the Company and others on the ground that the Company tried to
demolish certain shops located on land situated at Gram Nayagaon owned by the Appellant for the
construction of a four lane road. In the said civil suit, the injuction application was rejected and the
present appeal is filed against the said order. The matter is pending.

19. Nashik Nagrik Kruti Samiti has filed a public interest litigation before the Bombay High Court
against the State of Maharashtra and others on account of felling of trees for the Pimpalgaon-
Nashik-Gonde project. The Bombay High Court has directed that before any felling of any tree for
widening of NH-03, NHAI shall plant three trees in lieu of one tree which is cut and subsequent to
such compliance the parties shall have the liberty to move the court for further orders. Unless the
NHAI, the Company and others comply with this order, they shall not cut any tree for the said
purpose. The Chief Conservator of the Forest of the said region for non municipal areas /
Commissioner, Municipal Corporation was directed to conduct census and file an affidavit for the
same. The Bombay High Court has passed an order stating that the Company shall be permitted to
fell one tree provided that three trees have been planted to the satisfaction of the Chief
Conservator of the Forest. The matter is pending.

Further, Rajesh Madhukar Pandit has filed a complaint with the Ojhar Police Station alleging
felling of trees by the Company against the order of the Bombay High Court and violation of
section 3 of the Prevention of Damage to Public Property Act, 1984. The matter is pending.

Another complaint has been filed by D.K. Patil before the Regional Forest Office, Chandwad
against Gopal P. Mandhale, employee of the Company, alleging felling of 16 trees on the National
Highway No. 3 in violation of the order of the Bombay High Court. The matter is pending.

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 Dattatraya Pandharinath Adke and Sandeep Abhiman Birari have filed a civil suit against the
Company and others before the Court of Civil Judge, Senior Division, Nashik in relation to illegal
felling of trees by the Company and others and non-compliance of the order of the Bombay High
Court for compulsory planting of trees for undertaking the Pimpalgaon-Nashik-Gonde project.
The plaintiffs have prayed for perpetual injunction and appointment of four (4) commissioners by
the court for periodical reporting and regularization of the felling of trees. The matter is pending.

20. Hiralal Sinha has filed a civil suit before the District Judge, Rajnandgaon against NHAI, Sanjay
Agarwal (Sub-Divisional Officer, Rajnandgaon) and Ashoka Buildcon Ltd. seeking declaration
and perpetual injunction against demolishing of the construction of the plaintiff, which is beyond
30 meter length from the decided central point. The matter is pending.

21. Ashoka Mahadev Rakh has filed a consumer complaint before the District Consumer Complaints
Redressal Forum, Ahmednagar against the Company and New India Assurance Co. Ltd. claming
compensation of Rs. 1 million along with the interest of 18% from February 13, 2008 and 0.12
million for other costs for the injury sustained due to the accident occurred on Nagar- Aurangabad
Highway on account of absence of signal on the road divider and the negligence of the Company.
The matter is pending.

22. Surendra Jain (the “Petitioner”) has filed a writ petition against the State of Madhya Pradesh, the
Company and others before the High Court of Judicature, Jabalpur, Indore Bench in relation to
inter alia violation of Master Plan 2010-11 (settled for the city of Neemuch) in construction of the
four lane bypass Nayagaon-Lebad road, incomplete construction of road, recovery of toll tax
against the terms of the concession agreement, absence of approval from Town and Country
Planning. The Petitioner has approached the said High Court for an ad-interim relief and an
appropriate direction for restraining the respondents from the aforesaid violations. The matter is
pending.

Labour Cases

1. There are seven disputes pertaining to workmen’s compensation filed by the legal heirs of
employees/ ex-employees against the Company. The aggregate amount involved is approximately
Rs. 2.77 million. The matters are currently pending.

2. Devidas Savate (the “Complainant”) has filed a workmen’s compensation case, against the
Company and New India Assurance Company, before the Commissioner for Workmen’s
Compensation, Pune. The Complainant, a workman of the Company, claims to have suffered 47
per cent disability due to an accident sustained at a worksite. The Claimant has demanded Rs.
0.203 million as compensation. The case is currently pending.

3. Pushpa Kanwar Rajput (“Plaintiffs”) and others have filed a claim against the Company and ICICI
Lombard General Insurance Company Limited before the Labour Court at Bhilwada, Rajasthan.
The Plaintiffs have claimed an aggregate amount of approximately Rs. 0.4 million, in their
capacity as legal heirs of Puran Singh who died in a motor accident. The matter is currently
pending.

4. Ashoka Info Private Limited (now merged into the Company) had hired Raju Hulgunde to carry
out stone crushing work. Ashoka Info Private Limited has alleged that even though Raju Hulgunde
was paid for his services, yet he made further demands for money and also threatened to go on a
hunger strike. Despite being paid an additional sum, of upto Rs. 0.03 million, on humanitarian
grounds, Raju Hulgunde made even further demands for money and threatened to go on a hunger
strike. Ashoka Info Private Limited has now filed a police complaint against Raju Hulgunde.
Ashoka Info Private Limited has received a notice from the Labour Commissioner based on
representations made by Raju Hulgunde. The matter is pending.

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5. Mangalbai N. Kamble (the “Claimant”) and another have filed a workmen’s compensation claim
against the Company and New India Assurance Company Limited. The Claimant’s son, a worker
who was working at a project site, was run over by a transit mixer vehicle and succumbed due to
his injuries. Both worker and vehicle were insured by New India Assurance Company Limited.
The Claimant has prayed for compensation of Rs. 0.45 million along with a penalty of 50 per cent
per annum and interest at the rate of 12 per cent per annum. The Claimant has also filed a claim
before the Motor Accident Claims Tribunal of Rs. 0.1 million along with interest at the rate of 18
per cent per annum. Furthermore, the Claimant has reserved the right to increase the amount of
claim. The Company has contended that at least one of the claims must be withdrawn. The claims
are currently pending.

6. Ishwarappa Natekar, (through his legal heirs) has filed a workman’s claim, against Ashoka E-
Tech, the Company and Oriental Insurance Company Limited, before the Commissioner for
Workmen’s Compensation, Pune. The claimant has alleged that Ishwarappa Natekar’s hand was
stuck in a machine in the WMM Plant and broken, leading to 15 per cent disability in that hand. It
is further alleged that the Company removed Ishwarappa Natekar from work and did not pay any
compensation. Ishwarappa Natekar has prayed for compensation of Rs. 0.294 million along with
18 per cent interest per annum. The matter is currently pending.

7. Nanibai, widow of Suresh Bhilala, has filed a claim against the Company and others, in the
Labour Court, Dhar (Madhya Pradesh) regarding the death of her husband who died in an accident
which took place at one of the worksites of the Company. The claim is for an amount of Rs. 0.10
million plus interest. The claim is currently pending.

8. The Company has filed an application under Rule 26(2) of the Industrial Disputes (Bombay)
Rules, 1957, for setting aside an ex-parte award dated July 28, 2009 passed by the Labour Court,
Mumbai in relation to reinstatement of S.R. Rokade as a plant operator of the Company and
payment of back wages. S.R. Rokade had worked with the Company from July 1, 2006 to October
16, 2006 on probation and his salary was Rs. 3600/- per month. His services were dispensed with
by the Company as he was not found suitable as per the job requirements of the Company. Mr.
Rokade had issued the demand letter dated November 6, 2006 to the Company and demanded of
reinstatement with full back wages and continuity in services and all consequential relifs etc. The
matter was referred to the Conciliation Officer, Mumbai on March 20, 2007. However, there could
not be conciliation between the parties and hence the matter was further referred to Dy.
Commissioner. Thereafter, a reference was sent by Deputy Commissioner of Labour (conciliation)
Mumbai under section 10(1) and 12(5) of the Industrial Disputes Act, 1947 for adjudication of a
dispute between the Company and Mr. Rokade. Due to non-attendance of the Company, the
Labour Court passed an ex-parte award and directed the Company to reinstate Mr. Rokade on his
post of Plant Operator with half back wages i.e. Rs. 1800/- per month and continuity of service
w.e.f. October 16, 2006. The Company was also directed to deposit the total amount of half back
wages on or before September 15, 2009. The matter is pending.

9. Sadhnadevi Singh and others, relatives of Sanjay Singh, have filed an application before the
Labour Court, Rajnandgaon for Rs. 0.47 million as compensation against the Company and
Ventura Buildcon Limited, sub-contractor of the Company, for the death of Sanjay Singh during
the course of employment, employed as a watchman by Ventura Buildcon Limited at Rajnandgaon
site. The matter is pending.

Motor Accident Claims

Nine motor accidents claims have been filed against the Company, involving an aggregate amount of
approximately Rs. 11.92 million. The claims are currently pending.

Tax Cases

Direct Taxes

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1. The Company had filed an appeal before the Commissioner of Income Tax, Nashik against the
orders passed under regular scrutiny by the Assistant Commissioner of Income Tax, Circle 2,
Nashik. The impugned order had disallowed depreciation, on the right to collect toll as an
intangible asset, while allowing amoritisation over the life of project and pertains to financial year
2004-05. There was no tax demand due to this addition by the Assistant Commissioner. The
matter was decided in favour of the Company by CIT Appeals (II) Nashik through order dated
August 28, 2009 (the “Order”). The Income Tax Department has filed an appeal before the ITAT,
Pune against the Order. Further, the Company has received a notice of application for rectification
of the Order. The matters are currently pending.

2. In the matter of erstwhile Ashoka Info Pvt. Ltd. now, merged with the company, for the
Assessment Year 2000-01, 2001-02, 2002-03 and 2003-04 Income Tax Department has gone for
appeal before Hon Bombay High Court against the order of Income Tax Appellate Tribunal, Pune.
The issue involved is depreciation on the right to collect toll as an intangible asset, while
Department contension is allowing amoritisation over the life of project. The matter is currently
pending.

3. In the matter of earstwhile Ashoka Vastushilp Pvt. Ltd. now, merged with the company, for the
Assessment Year 2000-01 Income Tax Department has gone for appeal before Hon Bombay High
Court against the order of Income Tax Appellate Tribunal, Pune. The matter involved related to
allowance of proportionate expenses for hire income and adjusting interest income from business
loss. The matter is currently pending.

4. The Company has filed an appeal before the Commissioner of Income Tax, Nashik against the
order passed on re-opening of assessment by Assistant Commissioner of Income Tax, Circle 2,
Nashik. The impugned order had disallowed carry forward of losses and unabsorbed depreciation
of amalgamating companies in the hands of amalgamated company matter pertains to assessment
year 2004-05. The matter is currently pending at Commissioner of Income Tax Appeals Nashik.
The demand raised is to the tune of Rs. 0.92 million and the Company has requested to adjust the
demand against the refunds of succeeding years. The appeal is currently pending.

5. The Joint Commissioner of Income Tax, Range 2, Nashik, had completed the assessment for the
assessment year 2005-2006 and tax demand against the Company. The tax demand was raised for
disallowance of carry forward of losses and unabsorbed depreciation of amalgamating company to
the amalgamated company, and disallowance of depreciation on the right to collect toll as an
intangible asset, allowing amoritisation over the life of the project. The demand raised is to the
tune of Rs. 18.39 million (inclusive of interest). The Company filed an appeal before the
Commissioner of Income Tax (Appeals-I), Nashik against the said order. The Company has
requested adjustment of demand against the refunds due to the Company for assessment year
2006-07 and assessment year 2007-08. The matter is currently pending.

6. The Commissioner of Income Tax, Nashik had initiated a revision proceeding under Section 263
of the Income Tax Act, 1961, against the Company for assessment year 2003-04. In furtherance
thereof, the Commissioner of Income Tax, Nashik set aside the assessment and issued directions
for framing the assessment afresh by the Assessing Officer, Assistant Commissioner of Income
Tax, Circle II, Nashik. Aggrieved by the said order, the Company preferred an appeal before
Income Tax Appellate Tribunal, Pune. The appeal is currently pending. However, pursuant to the
directions of the Commissioner of Income Tax for framing the assessment afresh, the Assistant
Commissioner of Income Tax, Circle II, Nashik raised a demand of Rs. 5.61 million including
interest. The Company preferred an appeal before Commissioner of Income Tax (Appeals),
Nashik against the said order. The appeal has been decided by Commissioner of Income Tax
(Appeals) (II), Nashik in favour of the Company. The matter is pending.

7. The Commissioner of Income Tax had initiated a revision proceeding under Section 263 of the
Income Tax Act, 1961 against erstwhile Ashoka Vastu Private Limited (since merged with the
Company) for assessment year 2003-04. In furtherance thereof, the Commissioner of Income Tax,

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 Nashik set aside the assessment and issued directions for framing the assessment afresh by the
assessing officer (Assistant Commissioner of Income Tax, Circle II, Nashik). Aggrieved by the
said order, the Company preferred an appeal before Income Tax Appellate Tribunal, Pune. The
appeal is currently pending. However, pursuant to the directions of the Commissioner of Income
Tax for framing the assessment afresh, the Assistant Commissioner of Income Tax, Circle II,
Nashik raised a demand of Rs. 1.39 million including interest. The Company preferred an appeal
before Commissioner of Income Tax (Appeals), Nashik against the said order. The appeal has
been decided by Commissioner of Income Tax (Appeals) (II), Nashik in favour of the Company.

8. The Assistant Commissioner of Income Tax, Nashik Circle had issued an assessment order to the
Company for the assessment year 2003-04 pertaining to disallowance of the provisions of
construction expenses for future liability in case of a composite contract. Aggrieved by the said
assessment order, the Company filed an appeal before the Commissioner of Income Tax
(Appeals), Nashik, which was decided in favour of the Company. The Income Tax Department
has preferred an appeal against the order of Commissioner of Income Tax (Appeals), Nashik
before the Income Tax Appellate Tribunal, Pune. The appeal is currently pending.

9. The Additional Commissioner of Income Tax, Pune has sent a notice for recovery of demand
against the assessment of H. S. Soni, excluding interest, under Section 220 (2) of the Income Tax
Act, 1961. During the course of an income tax department raid on Shreeram Soni (“Assessee”),
the materials seized during the income tax department raid indicated that the Company owed the
assessee Rs.1 million excluding interest at the rate of 2 per cent per month, as on July 29, 2003.
The Income Tax Department has made a demand for the principal along with interest. The
Company had sent a letter dated February 1, 2007 to the Income Tax Department seeking the
details of the materials, relying whereon the Income Tax Department had concluded that a loan of
Rs. 1 million was outstanding. The Income Tax Department has asked for the details of
outstanding loans payable as per Company’s books of accounts to which the satisfactorily replied
vide its letter dated May 31, 2007. There has been no further communication thereafter. The
matter is currently pending.

10. The Assistant Commissioner of Income tax, Circle 2, Nashik, had completed the assessment for
the Assessment Year 2007-2008 and issued an order against the Company for disallowance of
depreciation on the right to collect toll as an intangible asset for the aggregate amount of Rs. 67.4
million. There was no demand on account of this disallowance. The Company filed an appeal
before the Commissioner of Income Tax (Appeals-I), Nashik against the said order. The matter is
currently pending.

11. The Director of Income Tax (Inv.) Nagpur/ Pune had issued a warrant of authorisation dated April
15, 2010 (the “Warrant”) under Section 132(1) of the Income Tax Act, 1961 (the “Income Tax
Act”). Pursuant to the Warrant, the Income Tax Authorities (“IT Authorities”) conducted, (i)
search and seizure under Section 132 of the Income Tax Act (“IT Search”) on the premises of the
Company, its Promoters, Directors, certain employees and certain of its subsidiaries and
associates, (ii) survey under Section 133A of the Income Tax Act on the premises of certain
subsidiaries and associates of the Company, and (iii) other related investigations. The aforesaid
search and seizure, survey and other investigations by the IT Authorities commenced on April 20,
2010. During the course of IT Search, the IT Authorities seized various documents, soft data
storage devices, cash and valuables, the details whereof have been provided to the Company
through various panchanamas issued by the IT Authorities. The last of such panchanamas was
issued by the IT Authorities on May 17, 2010. Moreover, the IT Authorities had issued various
restraint orders under Section 132(3) of the Income Tax Act (“Prohibitory Orders”) to certain
Promoters, relatives of the Promoters, Directors and employees of the Company prohibiting
removal or parting with or otherwise dealing with certain articles without the prior permission of
the Income Tax Authorities. In the statement of the chairman of the Company, Mr. Ashok M.
Katariya, recorded on April 30, 2010, Mr. Katariya had provisionally disclosed Rs. 20 crores as
“non-declared income” in the hands of various group cases. Subsequently, the Company, through
letter dated May 12, 2010 (the “Letter”) to the Deputy Director of Income Tax (Investigation),

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 Nashik, revised the provisionally disclosed “non-declared income” to Rs. 25 crores for all the
group cases taken together and subject to permission for inter-change subsequent to obtaining and
verifying the copies of seized material. The Company, through the Letter, also requested the IT
Authorities to provide copies of the entire seized materials, including the statements made by
various persons in the course of action under Sections 132 and 133A of the Income Tax Act. The
matter is pending.

Indirect Taxes

Customs

1. The Assistant Commissioner of Customs, Mumbai, has issued a notice for the year 2001-02
against the Company (erstwhile Ashoka Info Private Limited, which merged into the Company)
for adjudication of duty on bitumen. The Company had classified the goods as natural bitumen,
which was not acceptable to the department. On the basis of the show cause notice, the
Commissioner of Customs (Import) has adjudicated the matter against the Company stating that
the goods were petroleum bitumen classifiable under CTH 2713.20, raised a demand of Rs. 3.94
million along with interest, ordered confiscation of goods, which may be redeemed on payment of
redemption fine of Rs. 4.00 million and payment of penalty of Rs. 2.40 million (including penalty
imposed on employees of the Company). Aggrieved by the said order, the Company preferred an
appeal before the Custom Excise and Service Tax Appellate Tribunal, Mumbai (“CESTAT”). The
CESTAT has directed the Company to pre-deposit Rs. 1 million by the Company within 8 weeks
from the date of the order i.e. July 28, 2010. Subject to such compliance, the pre-deposit of the
balance amount has been waived during pendency of the appeal. The appeal is currently pending.

2. A show cause notice was issued to the joint venture of the Company with Valecha Engineering
Limited (“ABL-Valecha JV”) for the year 2007-08 pertaining to custom duty exemption granted
to the Company for importation of machinery for executing infrastructure projects. On the basis of
the show cause notice, the Commissioner of Customs (Import) adjudicated the matter against the
ABL-Valecha JV stating that the duty exemption granted under notification no. 21/2003 dated
March 1, 2002 was denied and raised a demand of Rs. 18.97 million including interest and ordered
confiscation of goods which may be redeemed on payment of redemption fine of Rs. 9.00 million
and payment of penalty of Rs. 1.50 million (including penalty imposed on employees of the
Company). The Company has paid the customs duty. The redemption fine and penalty amounting
to Rs. 10.50 million are currently outstanding. Aggrieved by the said order, the Company has
preferred an appeal before the Custom Excise and Service Tax Appellate Tribunal, Mumbai. The
appeal is currently pending.

3. The Directorate of Revenue Intelligence, Mumbai, has issued a show cause notice on account of
inadequate custom duty paid by the Company in relation to the import of concrete pumps from
Sany Heavy Industries Co. Pvt Ltd. The value of duty evaded as per the department is Rs. 0.31
million alonwith the interest of Rs. 0.06 million. Sany Heavy has agreed that the evasion is on
their account and accordingly Sany Heavy has paid all the disputed duty alongwith interest. Now,
the Company has approached Customs and Central Excise Settlement Commission for the
settlement of the claim. The Central Excise Settlement Commission has imposed a penalty of Rs.
1,500 on the Company. The matter is pending.

Sales Tax

1. The Assistant Commissioner (CT), Chinglepet Assessment Circle has issued three assessment
orders for financial years 2004-05, 2005-06 and 2006-07, whereby the assessment was revised and
the total and taxable turnover of the work contract receipts was re-determined. In terms of the
assessment order, civil works contract of maintenance of road executed by the Company was
determined to be taxable at the rate of 4 per cent of the total contract value of the works executed,
under Section 7C (ii) of the Tamil Nadu General Sales Tax Act, 1959. The aggregate demand
raised and penalties in the said assessment orders was Rs. 0.29 million and Rs. 0.36 million,

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 respectively. The order of the Commissioner has been received against the Company. The
Company has paid off the entire demand along with interest and penalty. However, the Company
has filed an appeal to claim refund. The matter is pending.

2. The Assistant Commissioner, Sales Tax Department, Udaipur has raised a demand for entry tax
for the material bought in Rajasthan from outside state, covered under Rajasthan Tax on Entry of
Goods into local Area Act, 1999. The demand has been raised for the financial year 2005-06 is Rs.
0.02 million and for the financial year 2006-07 is Rs. 3.25 million. The Company has preferred a
writ petition against the said orders before the High Court of Rajasthan, Jodhpur Bench. The writ
has been admitted and stay against the demand has also been given till the disposal of the petition.
The matter is pending.

Employees Provident Fund and Miscellaneous Provisions Act, 1952

1. The Assistant Provident Fund Commissioner had initiated an enquiry against the Company under
Section 7-A of the Employees Provident Fund and Miscellaneous Provisions Act, 1952
(“EPFMPA”) for determination of dues for the period April 2005 to March 2006 vide notice
no.1345 dated July 31, 2009. The Company had replied vide letter dated September 10, 2009 that
the Company had remitted all dues and nothing remained to be remitted. The department has
informed vide their letter dated October 26, 2009 that the amount due from the Company was
Rs.0.034 million. The Company has filed a reply. The matter is currently pending.

2. The Assistant Provident Fund Commissioner had initiated an enquiry against the Company under
Section 7-A of the EPFMPA for determination of dues for the period 2003-04 and 2004-05 and
determined the dues of Rs.167,32,00,000 on the basis of figures shown in balance sheet under the
head Labour & Sub Contractor charges, Security and service charges and miscellaneous site
expenses. The Company has filed a reply. The matter is currently pending.

Arbitration Claims

Claims in relation to Ankali BOT

a. The Company has filed an application under Section 9 of the Arbitration and Conciliation Act,
1996 for permanent injunction against takeover of the facility pertaining to the construction of
bridge across Krishna river near Ankali Village on BOT (“Ankali BOT”) basis before the District
Court, Sangli and the same was granted by the District Court. The State Government has filed an
appeal before the Bombay High Court under Section 37 of the Arbitration and Conciliation Act,
1996. The matter is currently pending.

b. The Company has filed another application before the District Court, Sangli under Section 34 of
the Arbitration and Conciliation Act, 1996 before the District Court, Sangli against the award of
Rs. 8.99 million passed by the arbitrator with respect to Arbitration Reference-I. The Company
had originally claimed the amount of Rs. 105.02 million for inter alia unilateral change in scope
by the State of Government. The District Court, Sangli has partially set aside the award passed by
the arbitrator and the matter has been referred back to the arbitrator for valuation. The State
Government has filed an application under Section 37 of Arbitration and Conciliation Act, 1996
before the Bombay High Court against the order of the District Court, Sangli and the High Court
has granted a stay on the said order. The Company has filed a civil application for vacating the
stay order.The matter is currently pending.

c. In relation to Ankali BOT, the Public Works Department, Sangli had also filed an application
under Section 34 of the Arbitration and Conciliation Act, 1996, before the court of the Senior
Judge, Sangli which was rejected. Against the said order, the State Government has filed an
application under Section 37 of the Arbitration and Conciliation Act, 1996 before the Bombay
High Court against the order of the District Court, Sangli. The Bombay High Court has stayed the
said order. The matter is currently pending.

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d. The Company has initiated an arbitration proceeding in relation to Arbitration Reference II against
the Public Works Department, Miraj, before an arbitration tribunal in Pune. It arose in relation to a
contract between the parties pertaining to construction of a major bridge and its approaches across
the river Krishna at Ankali on Ratnagiri – Kolhapur - Solapur Road on BOT basis. The Company
had made various claims including inter alia change in scope. The arbitral tribunal has awarded a
total amount of Rs. 18.98 million plus interest against the total amount of Rs. 29.95 million plus
interest originally claimed by the Company. The application under Section 33 of the Arbitration
and Conciliation Act, 1996. The matter is pending for execution.

Complaints against the initial public offering of Equity Shares proposed to be undertaken in terms of Draft
Red Herring Prospectus dated January 16, 2008

The Company had filed a Draft Red Herring Prospectus dated January 16, 2008 with SEBI in relation to
proposed initial public offering of Equity Shares (the “Proposed IPO”). Deepak M. Katariya and Hema
Katariya filed letters of objection dated April 9, 2008 in relation to the Proposed IPO, which were replied to
by the book running lead managers for the Proposed IPO (“Lead Managers”) through letters dated May 6,
2008 and informed by the book running lead managers to SEBI of their reply through a letter dated May 7,
2008. Thereafter, Deepak M. Katariya filed a letter dated May 10, 2008 with SEBI (“Objection Letter”)
which was forwarded to the Lead Managers by SEBI through letter dated May 21, 2008, whereby he had,
inter alia, objected to the Proposed IPO. The Lead Managers replied to the Objection Letter through a letter
dated August 11, 2008 and informed SEBI of their reply through a letter dated August 11, 2008.

Additionally, Hema Katariya filed a suit (no. 451/2007) (the “Civil Suit”) against the Company, Ashok M.
Katariya and others before the court of Civil Judge, Senior Division, Nashik (the “CJSD, Nashik”). Further,
Hema Katariya filed an application for temporary injunction dated April 23, 2008 (the “Temporary
Injunction Application”) in the Civil Suit inter alia demanding that the Company be restrained from going
forward with the IPO until the final disposal of the Civil Suit. The CJSD, Nashik through an order dated
April 24, 2008 directed both parties to maintain the status-quo until further orders are issued by the court.
Hema Katariya through a letter dated April 24, 2008 informed SEBI of the status quo order. SEBI through
letter dated April 24, 2008 sought complete details in this regard from the Lead Managers. The Lead
Managers through a letter dated April 30, 2008 informed SEBI of the complete details regarding the Order.
The CJSD, Nashik through an order dated May 2, 2008 (the “Vacation Order”) rejected the application of
the Complainant for a temporary injunction and vacated the status quo order, which was notified to SEBI
by the Lead Managers through a letter dated May 8, 2008. Hema Katariya filed an appeal (no. 58/08) dated
June 12, 2008 (the “Appeal”) in the Court of District and Sessions Judge, Nashik, which was dismissed by
the court on January 22, 2010. Hema Deepak Katariya has filed a civil application before Civil Judge
Junior Division, Nasik on July 23, 2010 received by the Company on September 21, 2010, to obtain interim
injunction under Order 39 Rule 1 of the Civil Procedure Code, 1908 against the Issue. Hema Deepak
Katariya has filed another application on September 21, 2010 before the court as a continuation of the
application dated July 23, 2010 for an interim stay on the Issue. The matter is pending.

Complaints filed against the Issue

1. Deepak M. Katariya has filed letters of objection as set forth below in relation to the Issue alleging
inter alia non-obtaining of consent of Ashoka Group for the Issue when the Companty is a group
property of Ashoka Group, failure to obtain the material documents for the Issue for inspection on
approaching the registered office. The Company has filed replies to these complaints, the details of
which can be summarized as follows:

(i) Letter of Complaint dated December 4, 2009 forwarded by SEBI on December 7, 2009;
reply filed by the BRLMs on December 15, 2009.

(ii) Letter of Complaint dated December 3, 2009 forwarded by SEBI on December 21, 2009;
replied by the BRLMs on December 29, 2009.

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 (iii) Letter of Complaint dated December 29, 2009 forwarded by SEBI on January 8, 2010;
reply filed by BRLMs on January 18, 2010.

(iv) Letter of Complaint dated January 25, 2010 forwarded by SEBI on February 15, 2010;
reply filed by the BRLMs on February 23, 2010.

(v) Letter of Complaint dated January 20, 2010 forwarded by the RoC on March 25, 2010;
reply filed by the Company on April 13, 2010.

(vi) Letter of Complaint forwarded by SEBI on August 16, 2010; reply filed by the BRLMs
on August 19, 2010.

(vii) Letter of Complaint dated July 13, 2010 forwarded by SEBI on August 26, 2010; reply
filed by the BRLMs on August 27, 2010.

(viii) Letter of Complaint dated June 1, 2010 forwarded by SEBI on August 27, 2010; reply
filed by the BRLMs on August 30, 2010.

(ix) Letter of Complaint forwarded by SEBI on August 27, 2010; reply filed by the BRLMs
on August 30, 2010.

(x) Two letters of Complaint forwarded by SEBI on September 15, 2010; reply filed by the
BRLMs on September 15, 2010.

2. Komal Ahire, advocate of Deepak Katariya, has filed a letters of objection to the Issue which was
forwarded by the SEBI to the Company on March 13, 2010 and August 16, 2010 respectively. The
BRLMs have filed replies to the same on March 17, 2010, March 19, 2010 and August 19, 2010.
The objections were filed in relation to (i) failure to obtain the material documents for the Issue for
inspection, and (ii) material documents inspected.

3. Sunil K.S. has filed a complaint dated June 28, 2010 against the Issue which was forwarded by
SEBI on August 3, 2010. The complaint was filed in relation to absence of information of the
Isssue on the advertisements issued by Shweta Agro Farm and Ashoka Education Foundation.The
BRLMs have replied to the same on August 11, 2010.

4. Bharat S. Kamble has filed a complaint against the Issue which was forwarded by SEBI on August
16, 2010 in relation to inter alia income tax raid and the investment by IDFC in the Company. The
BRLMs have replied to the same on August 19, 2010.

Notices issued against the Company

1. The Company had received a purchase order dated October 4, 2007 from Cipla Limited (“Cipla”)
for construction of utility building and all ancillary structures (the “Cipla Project”) at plot no. 14,
17, 32, Meditab Specialities Private Limited (SEZ), Bhut-Khamb, Kerim, Ponda, Goa 403 401.
However, the Cipla Project could not be completed due to protests by the local population against
the proposed SEZ and the Stop Work Notice dated January 10, 2008 issued by the Government of
Goa. Subsequently, the Company through letter dated August 6, 2008 claimed an amount of Rs.
32.84 million from Cipla. Cipla through letter dated October 22, 2008 issued a notice to the
Company under Section 434 of the Companies Act for the payment of Rs. 14.25 million. The said
notice was replied to by the Company through letter dated November 7, 2008 wherein it refuted
the claims of Cipla and asserted its claim for payment by Cipla of Rs. 32.84 million. Cipla through
its letter dated November 18, 2008 reaffirmed the claims made by it through letter dated October
22, 2008 and denied the assertions made by the Company through its letter dated November 7,
2008. Further, the Company forwarded consolidated statement of outstanding payment
aggregating Rs. 20.55 million by adjusting mobilisation payments and other claims through letter
dated November 16, 2008, which was replied to by Cipla through letter dated November 27, 2008,

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 whereby Cipla reiterated its claims. A consultant, Arnita SEZ Consultants Private Limited
appointed by under the terms of the contract has vide letter dated June 3, 2010 declared that
amount of Rs.14.25 million is to be paid to Cipla in the dispute by the Company and Cipla has
claimed the same. The Company has contested the decision and requested for appointment of an
arbitrator. The matter is pending.

2. The Company had received a purchase orders dated May 23, 2007 and September 25, 2007 for the
construction of a road and the construction of a captive power plant, respectively (the “MSL
Projects”) from Meditab Specialities Private Limited (“MSL”) at Meditab Specialities Private
Limited, Pharamceutical SEZ, Bhut-Khamb, Kerim, Ponda, Goa 403 401. However, the MSL
Projects could not be completed due to protests by the local population against the proposed SEZ
and the Stop Work Notice dated January 10, 2008 issued by the Government of Goa.
Subsequently, through two letters dated August 6, 2008 the Company made a claim of Rs. 38.51
million against MSL. MSL through two letters dated October 22, 2008 issued notices under
Section 434 of the Companies Act to the Company for the payment of an aggregate amount of Rs.
7.71 million. The said notice was replied to by the Company through letter dated November 7,
2008 wherein it refuted the claims of the MSL and asserted its claim for payment of Rs. 38.51
million by MSL. MSL through its letter dated November 18, 2009 reaffirmed the claims made by
it through letter dated October 22, 2008 and denied the assertions made by the Company through
its letter dated November 18, 2009. Further, through two letters dated October 24, 2008 the
Company had made aggregate claim of Rs. 3.31 million against MSL, which were refuted by MSL
through its letter dated November 14, 2008. The Company also forwarded consolidated statement
of outstanding payments aggregating Rs. 37.85 million for the MSL Projects by adjusting
mobilisation payments and other claims through two letters dated November 16, 2008, which was
replied to by MSL through letter dated November 29, 2008, whereby MSL reiterated its claims.
Arnita SEZ Consultants Private Limited, a consultants appointed by MSL has vide letter dated
June 3, 2010 declared that the amount of Rs.4.07 million is to be paid to MSL in the dispute by the
Company and MSL has claimed the same. The Company has contested the decision and requested
for appointment of an arbitrator. The matter is pending.

3. The Assistant Labour Commissioner, Mandsaur, has issued 3 (three) show cause notices to the
Company due to violation of various labour legislations by Holalu Construction Pvt. Ltd., the sub-
contractor of the Company in relation to development of Jaora-Nayagaon section from km. 125.00
to km 252.9. The Company has replied to the same. Pursuant to the show cause notices, the
Assistant Labour Commissioner, Mandsaur has filed criminal petitions against Holalu
Construction Pvt. Ltd. with the Chief Judicial Magistrate, Mandsaur. The Company has not been
made a party to the criminal petitions. The matters are pending.

4. The Assistant Labour Commissioner, Mandsaur, has issued 5 (five) show cause notices to the
Company due to violation of various labour legislations by Lake City Infrastructure Pvt. Ltd., the
sub-contractor of the Company in relation to development of Jaora-Nayagaon section from km.
125.00 to km 252.9. The Company has replied to the same. Pursuant to the show cause notices, the
Assistant Labour Commissioner, Mandsaur has filed criminal petitions against Lake City
Infrastructure Pvt. Ltd. with the Chief Judicial Magistrate, Mandsaur. The Company has not been
made a party to the criminal petitions except the criminal petition for violation of section 12 of the
Child Labour (Prohibition and Regulation) Act, 1986 where the employees of the Company along
with Mr. R.C. Burad, executive director of the Company, have been made parties to the criminal
peition. The matters are pending.

5. The Assistant Labour Commissioner, Mandsaur, has issued 4 (four) show cause notices to the
Company due to violation of various labour legislations by Rahul Takalkar Constructions Pvt.
Ltd., the sub-contractor of the Company in relation to development of Jaora-Nayagaon section
from km. 125.00 to km 252.9. The Company has replied to the same. Pursuant to the show cause
notices, the Assistant Labour Commissioner, Mandsaur has filed criminal petitions against Lake
City Infrastructure Pvt. Ltd. with the Chief Judicial Magistrate, Mandsaur. The Company has not
been made a party to the criminal petitions except the criminal petition for violation of section 12

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 of the Child Labour (Prohibition and Regulation) Act, 1986 where the employees of the Company
along with Mr. R.C. Burad, employee of the Company, have been made parties to the criminal
peition. The matters are pending.

6. The Assistant Provident Fund Commissioner, Nasik on the basis of the enquiry initiated under
section 7 A of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 against the
Company for provident fund dues, has determined the dues of Rs. 1673.2 million for the financial
years 2003-04 and 2004-05 on the basis of figures shown in the balance sheet under head- “Labour
and Sub-contractor charges, security and service charges and miscellaneous site expenses”. The
Company has filed a reply refuting such dues as there was no beneficiary for the same. The matter
is pending.

7. (a) The Assistant Labour Commissioner, Rajnandgaon and the Assistant Labour
Commissioner, Dewas, M.P. have issued notices to the Company for submission of
records for computation of 1% payment of labour cess payable by the Company for the
NH-06 Durg Project and Dewas Bypass Road respectively under the Building and Other
Construction Workers Act, 1996. The Company has filed replies to the said notices for
submission of its cases and explaining the legal status of contract. The matters are
pending.

(b) The Executive Engineer, Mumbai Metropolitan Region Development Authority, has
issued a notice dated April 23, 2010, to the Company for submission of records
indicating cess (not exceeding 2% of the cost of construction) either paid by the
Company or deducted by the Company from it’s sub-contractors’ bills. The said notice is
pertaining to the Company’s project “Concretisation of 25 meter, 15 m. internal roads in
GN block of Bandra-Kurla Complex”. The matter is pending.

(c) The Assistant Labour Commissioner, Mandsaur, M.P had issued a notice to the Company
for submission of records for computation of 1% payment of labour cess payable by the
Company for the construction of Four – laning of Mandsaur, Neemuch project under the
Building and Other Construction Workers Act, 1996. The Company had filed its reply to
the said notice. However, the Assistant Labour Commissioner, Mandsaur vide its order
dated May 10, 2010 directed the Company to deposit an amount of Rs. 40.4 milions
within 30 (thirty) days i.e. by June 10, 2010 failing which, the said amount would attract
interest @ 2% p.m. However, the Company has filed an appeal before the appellate
authoruity under the Building and Other Construction Workers Welfare Cess Act, 1996.
The matter is pending.

8. The Sub Divisional Magistrate, Rajnandgaon has issued a notice to the local people who have
encroached on the Government land (Urban area) for their removal from the said encroachment
within the 15 days through dismantling of the structure so that National Highway Authority of
India could proceed with Durg project awarded to the Company. The matter is pending.

9. The Assistant Labour Commissioner, Bhopal to the Company’s Chief Project Co-ordinator for the
Bus Rapid Transit System Project for not obtaining registration and violation of intimation
requirements under sections 7(1), 23(1) and 46(1) of the Contract Labour (Regulation &
Abolition) Act, 1970. The Company has obtained the registration as required under the Contract
Labour (Regulation & Abolition) Act, 1970. The matter is pending.

10. The Company has received 3 legal notices on behalf of Gopal Dhaniram Dharamshahare and
others, Zamsingh Burasingh Yerne and others and Prakash Sego Madavi and others respectively
alleging the lease period of 3 years. The Company has replied to the said notices. The matters are
pending.

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11. The Company has received letters from Grampanchayat, Murmadi and Grampanchayat, Mangaon
in relation to provision for a bus stop and construction of the road as a part of the Bhandara project
and. The matters are pending.

12. The Company has received a letter from SDO, Deori regarding regularization of the commercial
encroachment on government land and providing of the said land on lease situated at Gut No.
1135 RG 4.48 Hr. at Mauaj Saundad, Tal. Sadak Arjuni, Dist. Gondia. It is informed in the letter
that the Company had applied for taking the land bearing Gut No. 1135 RG 4.48 Hr. on lease for
the period of 4 years, however, the Company had already encroached on said land before taking
said land on lease due to which the Tehsildar, Sadak Arjuni, has imposed a fine of Rs. 0.1 million
as per his order dated December 22, 2009 and the said fine has been deposited by the Company.
Further, as per the order, the Company shall vacate the land within 15 days from the date of order
but the Company has not vacated the said land as per order and hence, as per letter of SDO, he
may issue directions to Tehsildar Sadak Arjuni for assessment of fine per day basis. The matter is
pending.

13. The Collector (Mining Department), District Neemuch has issued a show cause notice to the
Company regarding alleged illegal excavation of minerals from land situated at Gram Chaldu
Tehsil & District Neemuch bearing Survey Number 1446, 1447 and 1434 admeasuring total area
15.89 Hectares. which was reserved for Satya Sai Vidya Niketan Model School and the said fact
was conveyed to Ashoka Buildon by letter No.2162 dated 01.08.08 after submission of said
application. The Company has submitted a no-objection certificate from the Gram Panchayat,
Chaldu and deposited an amount of Rs. 0.4 million in advance towards royalty of excavation of
minerals. A penalty of up to Rs. 6.88 million may be imposed on the Company under the Rule
No.53 (1) of the Madhya Pradesh Minor Mineral Rules, 1996. The matter is pending.

14. The Regional Labour Commissioner, Nagpur has issued a letter to the Company for deposit of Rs.
0.07 million by the Company as per the order issued by the Regional Labour Commissioner,
(Central) dated November 20, 2007 under section 20(3) of the Minimum Wages Act, 1948. The
matter is pending.

15. The Regional Labour Commissioner, Nagpur has issued a show-cause notice to the Company
under the Contract Labour (Regulation & Abolition) Act, 1974 and the Central Rules, 1971 for
forfeiture of the security deposit for failure of the Company to obtain a license for the office
accommodation at CCE (R&D) West, Pashan, Pune. The Company has replied to the said notice
and submitted the completion certificate and an application for refund of security deposit. The
matter is pending.

16. The Labour Enforcement Officer, Central, Nashik has issued 3 show cause notices to the
Company under various provisions of the Minimum Wages Act, 1948 and Minimum Wages
(Central) Rules, 1950, and the Building & other Construction Workers (RE & CS) Act, 1996 and
the Building & other Construction Workers (RE & CS) Central Rules, 1998 and the Contract
Labour (Regulation & Abolition) Act, 1970 and the Contract Labour (Regulation & Abolition)
Central Rules, 1971 respectively. The matters are pending.

17. The Company has received a letter from Grampanchayat, Kohmara in the matter of agitation by
the villagers for the construction of underpasses at Kohamara, Deori & lakhni (2 Nos.) denoting
that the issue has been taken up with the NHAI, HQ. The matter is pending.

18. The Company has received a letter from Arun Rajendra Munot demanding reimbursement of Rs.
0.025 million for the loss suffered due to negligence of the Company in maintaining Ahmednagar-
Auranganad road. The Company has replied denying all the allegations raised. The matter is
pending.

19. The Company has received a claim of Rs. 15,998/- from B. M. Kulkarni, employee of the
Company, on account of provident fund dues. The matter is pending.

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20. The Company has received two summons from the Employees’ Provident Fund Organisation,
Nasik for failure to remit the provident fund contribution from July, 2009 to May, 2010. The
matters are pending.

21. The Court of Sub-Divisional Magistrate, Rajnandgaon has issued an order to the Company for
installing indicators at the road construction area and repair of existing four lane road being
constructed by the Company between Baagnadi and Anjora by July 29, 2010. In the event that the
Company fails to carry out the aforesaid order by the stipulated time, the work at the four lane
shall be stopped from July 30, 2010 till further orders. The Company has replied to the notice and
complied with the order. The matter is pending.

21. The Mumbai Metropolitan Region Development Authority (“Authority”) has issued a notice dated
July 28, 2010 to the Company whereby the Company is required to vacate the land at Wadala
Truck Terminus- Stage III admeasuring 4687.Sq.mtrs by July 31, 2010 where one of the
Company’s RMC plant is located. As per the notice, in the event the Company fails to vacate by
July 31, 2010, the Authority may dug the approach road to the RMC plant may issue an order to
close down the RMC plant. The Company is still occupying the Wadala Truck Terminus- Stage III
and no action has been initiated by the Authority against the Company. The matter is pending.

23. The Directorate General of Central Excise Intelligence, Pune has issued a show cause cum
demand notice to the Company on July 30, 2010 to classify the toll collection service provided by
the Company to NHAI at Charoti toll plaza on contract basis as “Business Auxiliary Service”
under section 65(19) of Chapter V of the Finance Act, 1994 and the consequent imposition of
service tax of Rs. 3.34 million. The Company is required to reply or appear before the authority
within 30 days from the date of the notice. The matter is pending.

24. The Company has received a letter February 19, 2010 from police station, Pipliya mandi, Dist.
Mandasaur seeking details concerned staff of the Company who are in-charge of construction of
toll tax naka at Pipliya Mandi in relation to an accident involving a labourer named Narendra whol
lost his leg due to falling down from the column on which he was working. It has been alleged that
the accident occurred due to the negligence of the staff working for the Company. The Company
has replied to the said complaint. The matter is pending.

Litigation by the Company

Civil Cases

1. In relation to a contract for construction of a building for the Central Bank of India, the Company
had certain outstanding claims that were rejected by the Central Bank of India. Consequently, the
Company invoked the arbitration clause of the contract. The sole arbitrator passed an award
aggregating approximately to Rs. 3.04 million in favour of the Company, which was challenged
by Central Bank of India in the court of Additional District Judge, Nashik. The Court ordered the
modification of the award whereby one claim relating to price escalation due to Gulf War, which
amounted to approximately Rs. 0.38 million was rejected. Company has filed an appeal against the
before the Bombay High Court. The Central Bank of India deposited a portion of the award
amounting to approximately Rs. 2.44 million. Meanwhile, the Company filed execution
proceedings, before the Court of the Additional District Judge, Nashik, for the recovery of the
awarded amount and the interest thereon. The Additional District Judge awarded interest at the
rate of 18 per cent per annum on Rs. 2.47 million from May 4, 1999 to July 25, 2003, 18 per cent
interest per annum on Rs. 0.029 million and a further amount of Rs. 0.029 million. The Company
has filed an appeal challenging the disallowance of price escalation claim and a writ petition
against the order in relation to calculation of interest before the Bombay High Court. The Central
Bank of India has also filed a writ petition against the order of the Additional District Judge,
Nashik challenging the calculation of interest. The appeal filed by the Company has been
admitted. The writ petitions filed by the Company and the Central Bank of India have been

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 disposed off by the Bombay High Court. The Bombay High Court has set aside the order passed
by the Additional District Judge, Nashik and upheld that the Company is entitled to interest of 18
per cent per annum from May 4, 1999 until the actual realization of the total decreed amount. The
Central Bank of India has challenged the High Court’s order by filing a special leave petition in
the Supreme Court of India, which was dismissed. The application regarding cost of litigation is
still pending for disposal before the Additional District Judge, Nashik in an execution proceeding.
The matter is currently pending.

2. The Company has filed an appeal before the Bombay High Court under the Arbitration and
Conciliation Act, 1996 against the decision of District Judge, Nashik setting aside the award of
Rs. 0.38 million granted by the arbitrator in favour of the Company in respect of price escalation
due to Gulf War. The matter is pending.

3. The Company had entered into a contract for construction of a bridge for Niphad Sahakari Sakhar
Karkhana Ltd. (“NSSKL”). The Company had certain outstanding claims in relation to the said
contract which were rejected by NSSKL, causing the Company to invoke the arbitration clause in
the contract. Pursuant to the arbitration proceedings, an award aggregating approximately to Rs.
15.93 million was passed in favour of the Company. The arbitral award was challenged by
NSSKL before the District Judge, Nashik, who rejected the challenge. NSSKL filed an appeal
before the Bombay High Court. The Bombay High Court stayed the order of the District Judge on
the condition that NSSKL deposit 50 per cent of the value of the arbitral award and also submit for
the balance of 50 per cent in the form of a bank guarantee from a nationalized bank within 12
weeks of the order of stay. On April 17, 2006, the Bombay High Court stated that since no money
had been deposited, the arbitration execution proceedings could proceed. The Company filed for
an execution proceeding before the Civil Judge (Senior Division), Niphad for execution of arbitral
award. However, the Civil Judge (Senior Division), Niphad denied it had jurisdiction. NSSKL has
since executed a promissory note in favour of Nashik District Central Co-operative Bank for an
amount of Rs. 915 million. A loan of Rs. 1,361.95 million was granted to NSSKL in lieu of certain
property mortgaged with the bank. The Company had filed a writ petition before the Bombay
High Court challenging the order of the Civil Judge, Niphad. The High Court of Bombay has
allowed the said writ petition and directed the Civil Judge Senior Division, Niphad to proceed
with the Darkhast filed by the Company. Accordingly, the Company has again filed the execution
proceedings in the court of Civil Judge (Senior Division), Niphad. The matters are currently
pending.

4. The Company has filed a summary suit before the court of Civil Judge, Junior Division, Nashik,
against Sunil Sinnarkar, the proprietor of M/s Brain Controls and Systems for recovery of Rs.
0.072 million along with interest at the rate of 24 per cent per annum. This suit has been filed by
the Company for refund of the advance payment along with interest and cost of the suit for Rs.
0.072 million. The amount of Rs. 0.045 million was paid by the Company to Brain Controls &
Systems towards the advance payment against the installation of UPS system on its project at
Surat. However, the defendant has failed to install the UPS system at the Company’s site at Surat.
The defendant failed to appear before the court on the issue of summons and therefore, the court
passed order of summons for judgment. The matter is currently pending.

5. The Company had entered into a contract, for the construction of a factory building, with
Europlast India Limited (“Europlast”). The Company was not paid by Europlast as per the bill
raised, consequent whereto the Company invoked the arbitration clause in the contract. Pursuant to
the arbitral proceedings, an award of Rs. 9.76 million along with interest was passed in favor of
the Company. Europlast filed an application before the Bombay High Court for setting aside of the
award, which was rejected. The Company filed an execution proceeding before the Civil Judge,
Senior Division, Panvel for the enforcement of the award. Meanwhile certain unsecured creditors
of Europlast filed a petition before the Bombay High Court claiming refund of their deposits. The
Bombay High Court ordered the sale of Europlast’s factory building in satisfaction of the claims
of the unsecured creditors. During the Company’s execution proceedings before the Civil Judge,
Panvel, the order of sale of the factory building passed by the Bombay High Court came to light,

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 as a result of whereof, the execution proceedings were stayed. The Company filed an application
before the Bombay High Court and was joined as an unsecured creditor.

The Bombay High Court has ordered the formation of a committee which is empowered to sell
Europlast’s factory building and distribute the sale proceeds proportionately amongst the
unsecured creditors. During the pendency of the petition, the directors of Europlast sold entire land
along with the factory building to one Gorakhnath Electrical Private Limited (“GEPL”) which in
return further sold the said property to S.H. Kelkar & Company (“SKC”). Therefore, the Company
filed an application before the Bombay High Court and prayed for initiation of a contempt
proceeding against the directors of Europlast, GEPL and SKC and also prayed for setting aside the
sale deeds executed in favour of GEPL and also the sale deed executed by GEPL in favour of
SKC. The Company further prayed that SKC be restrained from creating any third party interest
on the factory building and land situated at village Vanvate, Talula Khalapur, District Ragad. The
Bombay High Court has passed an injunction against SKC and restrained them from creating any
third party interest on the factory building and land situated at Village Vanvate, Taluka Khalapur,
District Ragad. The court has pronounced its judgment and by its order the court has set-aside the
sale deeds executed in favour of GEPL by Europlast and also the sale deed executed by GEPL in
favour of SKC. Further, the court has directed Europlast and GEPL to bring back the sale deed
amount i.e. Rs. 7.5 millions and Rs. 35.5 millions respectively along with interest at the rate of
18% per annum accrued from April 26, 2007, to be deposited within four weeks from the date of
order. The court further directed that the suit property shall be disposed of by conducting court
auction and the sale proceeds should be primarily used for settling the claims of the all unsecured
creditors. The Court has further directed that, if Europlast and GEPL fail to deposit the amount as
directed by court, all the assets of the concerned company would stand attached by this order. Both
the Company and Europlast have filed an appeal against the order before the Bombay High Court
and both the appeals are pending for admission.The matter is currently pending.

6. The Company has filed a recovery suit against Sanghvi Movers Limited before the Civil Judge,
Pune pertaining to outstanding claims for certain construction work done by the Company
aggregating approximately Rs. 2.46 million. The matter is currently pending.

7. A civil suit has been filed by the Company through Ashoka Constructions, whose project was
taken over by the Company, against Yashwantrao Chavan Maharashtra Open University
(“University”), Nashik before the Additional District Judge, Nashik. It pertains to outstanding
claims aggregating approximately Rs. 106.25 million. The claims had arisen in relation to the
construction of an administrative building for the University. The Company had filed an
application for referring the matter to arbitration by appointing a sole arbitrator, which was
allowed. The final award has been given in favour of the Company and the University has been
ordered to pay an amount of approximately Rs. 25.64 million to the Company. The said award has
been challenged by the University through an application filed under Section 34 of the Arbitration
and Conciliation Act, 1996, in the court of District Judge, Nashik. The application is currently
pending. The Company through Ashoka Constructions has also challenged the award by filing an
arbitration application. The matter is currently pending.

8. The Company has filed two suits in the Co-operative Court, Pune in respect of the contract
relating to construction of an industrial complex for Pavana Industrial Premises Co-operative
Society Limited. The claim amounts to approximately Rs. 10 million plus interest. The Company
had also filed application under Section 89 of the Code of Civil Procedure, 1908, for the
appointment of an arbitrator, which was rejected. The Company filed an appeal against the said
order before the Co-operative Tribunal, which is currently pending. The matter is pending.

9. The Company, through Ashoka Constructions, has filed a suit, against Pune Municipal
Corporation, in the Senior Division Court, Pune. It relates to a contract regarding the construction
of flyover-bridge at Paud Phata, Pune. The Company has claimed for an amount of Rs. 6.44
million plus interest. Pune Municipal Corporation has paid an amount of Rs. 0.62 million in the

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 court. The Company has submitted an application for appointment of an arbitrator under Section
89 of the Code of Civil Procedure, 1908. The matter is currently pending.

10. The Company has filed civil appeals, against Kalyan Dombiwali Municipal Corporation,
challenging the judgment of the Senior Division Court, Kalyan, before the Bombay High Court.
The Senior Division Court, Kalyan had partially rejected the Company’s claims for illegal
termination and damages for an amount of Rs. 10.80 million plus interest. The claims related to
the contract for construction of a foot overbridge connected to the railway bridge on the east and
the west side of Borivali Railway Station. The appeal has been admitted by the Bombay High
Court and the Company has withdrawn the amount of Rs. 0.15 million against bank guarantee
deposited by the respondent. The respondent has also filed appeal against the same order in the
Bombay High Court against partial allowing of the claims. The appeals are currently pending.

11. The Company has filed a suit for permanent injunction, against Nashik Municipal Corporation
(“NMC”), in the Court of Civil Judge (Senior Division), Nashik. NMC had sent a notice to the
Company mandating the removal of its ready mix plant as it was illegal and had been installed
without requisite permissions. The said ready mix plant is situated at the premises bearing Survey
no. 46/1 of Gangapur, Nashik. The court has granted an interim injunction in favour of the
Company. Nasik Municipal Corporation has filed an appeal against the order of interim injunction
before the District Court, Nashik. The District Court, Nashik has allowed the said appeal and has
allowed the interim injunction to continue against the Nashik Municipal Corporation for a period
of eight weeks from the date of the order. The suit filed before the Court of Civil Judge (Senior
Division), Nashik has been withdrawn by the Company. The matter is pending.

12. The Company has filed an appeal before the Chief Controlling Revenue Authority, Pune
challenging the issuance of notice by the Collector of Stamps, Sangli for paying the deficit stamp
duty and fine amounting to Rs. 65.90 million on the BOT Agreement dated March 23, 1999
between the Company, the Government of Maharashtra and others. The Company had filed an
application for the grant of stay of the order of the Collector of Stamps, Sangli. The matter is
currently pending.

13. The Company has filed a recovery suit against Kamathe Construction Company (the
“Respondent”) before the Civil Judge, Pune pertaining to outstanding claims for sale of ready mix
concrete by the Company aggregating approximately Rs. 0.086 million. The matter is currently
pending.

14. The Company has filed a recovery suit against Infosys Technologist Limited before the Civil
Judge, Pune pertaining to outstanding claims for sale of ready mix concrete by the Company
aggregating approximately Rs. 4.05 million. The matter is currently pending.

15. The Company has filed a recovery suit against R. J. Gandhi before the Civil Judge, Pune
pertaining to outstanding claims for sale of ready mix concrete by the Company aggregating
approximately Rs. 0.03 million. The matter is currently pending.

16. The Company has filed a civil suit against Shivam Infrastructure Engineering in the court of Civil
Judge Junior Division, Chittorgarh for an injunction in relation to construction of bridge and
underpass works for Chittorgarh Bypass Project. The court rejected the application as an
alternative remedy of conciliation was available in contract. The Company had submitted a
requisite application for conciliation pursuant to which the conciliation mechanism was initiated.
The matter is pending.

17. The Company has filed a civil suit against the Public Works Department, Government of
Maharashtra, before the court of Civil Judge Senior Division, Pune, in relation to a contract
between the parties pertaining to the project for construction of viaduct on realignment of Mahad-
Pandharpur Road S.H. 70 going under submergence due to Nira Deoghar Irrigation project Sec. 11
viaduct at Ch. 14/270 Bhor Taluka District Pune. The Company has claimed a compensation of

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 Rs. 54.41 million plus interest for non-payment of compensation by the defendant for additional
work done by the Company and heavy losses suffered by the Company due to heavy rainfall
during the course of the execution of the project. Though a part claim of Rs. 1.16 million has been
sanctioned by the defendant, no payment has been made to the Company. The matter is currently
pending.

18. The Company has filed a civil suit against Kailas Mahadev Dangat before the Court of Civil
Judge, Junior Division, Pune, for recovery of Rs. 68,559 as the amount due and payable for supply
and delivery of ready mix concrete. The matter is pending.

19. The Company has filed a civil suit against Oilco Services [I] Limited and others before the Court
of Civil Judge, Senior Division, Pune, for recovery of Rs. 2,61,121 as the amount due and payable
for supply and delivery of ready mix concrete. The matter is pending.

20. The Company has filed a civil suit against Rohan Packaging Industries and others before the Court
of Civil Judge, Junior Division, Pune, for recovery of Rs. 40,414 as the amount due and payable
for supply and delivery of ready mix concrete. The matter is pending.

21. The Company has filed an application against legal heirs of Madinabai Musalman before
Tahsildar, Sanawad for mutating its name in the record of rights of land bearing survey no. 236/2,
having area 2.448 hector situated at Gram Sagadiyav, Tahsil-Badwah, District-Khargon. The
Company has submitted that the Company has purchased the said land from Madinabai Musalman
through a registered sale deed dated February 6, 2002, registered at serial no.A-1/543. Due to the
demise of Madinabai Musalman, the name of company was not mutated in the record of rights of
land. The application is currently pending.

22. The Company has filed a civil suit against Simm Samm Hotels Pvt. Ltd. before the Court of Civil
Judge, Senior Division, Nashik where the Company has sought to recover Rs. 28,48,221 with 21%
interest p.a. from the defendant on account of dues for supply of ready mix concrete to the
defendant for the Simm Samm Hotels project. The matter is pending.

23. The Company has filed an application before the court of Commissioner for Workmens’
Compensation, Labour Court, Mandasaur in relation to death of a labourer namely Rameshchandra
Gandharva, employed by the Company, in an accident caused by an unknown truck driver. The
Company has agreed to pay a compensation of Rs. 0.45 million. The matter is pending.

Criminal Cases

1. There are 63 criminal complaints filed by the Company against various individuals and entities
under Section 138 of the Negotiable Instrument Act, 1881 for dishonour of cheques before the
Metropolitan Magistrate, Mumbai, the Judicial Magistrate, Nashik and the Judicial Magistrate,
Pune and Indore. The aggregate amount involved is approximately Rs. 31.40 million. The
complaints are currently pending.

2. There are 6 criminal complaints filed by the Company and/or the employees of the Company
against various individuals and entities under various provisions of the Indian Penal Code, 1860
for an ascertainable loss of Rs. 3.33 million approximately. The matters are pending.

Tax Cases

The BMC had assessed, the foot overbridges at Priyadarshini circle, Godrej factory, Tagore Nagar and
Praveen hotel on the Eastern express highway, Mumbai, for an annual assessment of Rs. 1.20 million. The
foot bridges were constructed by Ashoka High-Way Ad on BOT basis in terms of the contract with the
Public Works Department, Mumbai. The total accumulated taxes to be paid was held to be Rs. 4.36 million
plus interest. Ashoka High-Way Ad has appealed against the assessment in the Small Causes Court,

367
Mumbai challenging the levy of the property tax on properties constructed on BOT basis. The appeal is
currently pending.

Arbitration Claims

1. The Company has initiated an arbitration proceeding against the Government of India, Ministry of
Surface Transport before a sole arbitrator in Nagpur in July 2007 in relation to the joint venture
agreement with Jayaswals Ashoka Infrastructure Private Limited. The joint venture agreement
relates to a contract for construction of a bridge and its approaches across Wainganga river in km.
491/00 of Nagpur-Raipur road section of NH-6 in Bhandara District on BOT basis. The Company
has claimed a total amount of Rs. 152.30 million plus interest due to inter alia change in scope,
toll rate for TATA mini buses etc. The amount and concession period claimed are Rs. 143.01
million plus extension of concession period of 77 days respectively. The matter is currently
pending.

2. Ashoka Info Private Limited (“AIPL”) (now merged with the Company) has initiated an
arbitration proceeding against the Public Works Department, Ahmednagar, Government of
Maharashtra before an arbitral tribunal at Pune. The proceedings have been initiated in relation to
a contract pertaining to improvement of Ahmednagar-Karmala Road State Highway No. 141 (k.m.
0/00 to 80/600) on the border of Ahmednagar district under BOT Scheme (with toll rights). AIPL
is claiming damages for delay in toll notification and grant of extension in construction period.
The total amount claimed is Rs. 77.78 million plus interest thereon. The respondent has filed the
statement of defence and AIPL has filed a rejoinder thereto. The matter is presently pending.

3. The Company has initiated arbitration proceedings against the Public Works Department, Jalgaon,
Government of Maharashtra, before the arbitral tribunal at Nashik. The proceedings have arisen
out of a contract pertaining to construction of Railway Over Bridge with approaches near
Nashirabad village at km. 415/800 of Dhule -Nagpur Road, NH-6 in lieu of level railway crossing
at k.m. 433/17-19 and strengthening of road from k.m. 414/00 to 419/00 of the NH-4 under BOT
with toll rights. The Company has claimed a total amount of Rs. 31.22 million plus interest
thereon and extension of concession period by thirteen months and seventeen days. The arbitral
tribunal has awarded a total amount of Rs. 25.79 million equivalent to additional concession
period of approximately 10 years in favour of the Company. The Company is not filing an
application challenging the said award. The Company has filed an application under Section 9 of
the Arbitration and Conciliation Act, 1996 for interim relief before the District Court, Jalgaon
restraining the Government of Maharashtra from preventing the Company from collection of toll
beyond November 3, 2010. Consequently, the Government of Maharashtra has filed an application
under Section 34 of the Arbitration and Conciliation Act, 1996 in the court of District Judge,
Nashik. The District Judge, Nashik ordered to place the application before the District Judge,
Jalgaon. The Government of Maharashtra has filed the application before the District Judge,
Jalgaon. The matters are pending.

4. The Company has initiated an arbitration proceeding against the Public Works Department, Miraj,
before an arbitral tribunal in Pune (Arbitration Reference-I). The proceedings have been initiated
in relation to a contract between the parties pertaining to construction of a major bridge and its
approaches across river Krishna at Sheri Nalla on BOT basis (“Sheri Nalla BOT”). The Company
is claiming extra items amounting to Rs. 29.20 million plus interest due to inter alia change in
scope. The award has been declared by the tribunal, whereby it has awarded Rs. 12 million
equivalent to additional concession period of approximately 17 years. The Public Works
Department has challenged the award before the District Court, Sangli under Section 34 of the
Arbitration and Conciliation Act, 1996 which was rejected. The District Court, Sangli decided in
favour of the Company. Aggrieved by the order, the State Government has filed an arbitration
appeal before the Bombay High Court against the judgment of District Court, Sangli for setting
aside arbitral tribunal award. The State Government has filed another appeal for condoning the
delay in preferring the arbitration appeal in the Bombay High Court and an application for stay on
the order passed by the District Court, Sangli. The matters are currently pending.

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5. In relation to Sheri Nalla BOT, the Company has initiated another arbitration proceeding against
PWD, Miraj, Government of Maharashtra before an arbitration tribunal in Pune (Arbitration
Reference-II). The Company has claimed a total amount to Rs. 10.15 million plus interest and
extension of concession period by 148 days due to inter alia change in scope. The arbitration
proceeding is over and the final award is declared on 28th May 2010. All the claims of the
company are rejected by the Tribunal. The Company has filed an application under Section 34 of
Arbitration and Conciliation Act, 1996 before the District Judge, Sangli. The matter is pending.

6. The Company along with Birla GTM Entrepose Limited have initiated an arbitration proceeding
against NHAI before an arbitral tribunal in Delhi. It relates to a contract between the parties for
widening of 4 lanes and strengthening of the existing 2 lane carriageway of westerly diversion (km
0.00 to km 34.250) on NH 4, outside Pune, Maharashtra. The Company is claiming an amount of
Rs. 398.48 million plus interest due to inter alia change in scope. The arbitral tribunal has
declared an award granting amount of Rs. 318.7 million. Both NHAI and the Company have filed
applications under Section 34 of the Arbitration and Conciliation Act, 1996, before the District
Court, Pune against the award. The matter is pending.

7. The Company in joint venture with Bhagiratha Engineering Limited, Kochi has initiated
arbitration proceedings against the Government of Mizoram before an arbitration tribunal in
Guwahati. It relates to a contract between the parties for improvement and up gradation of
Mizoram state roads project phase-I. The Company has set forth various claims which include
wrongful termination, damages therefore and additional cost anticipated by the Government of
Mizoram on withdrawal of contract. The matter is currently pending.

8. The Company has filed a suit in the Bombay High Court for damages against the encashment of
bank guarantee and illegal termination of contract. The Company has also filed an application
under section 11 of the Arbitration and Conciliation Act, 1996 for appointment of an arbitrator,
before the Bombay High Court regarding the non-grant of full relief for the amount of Rs. 25.20
million plus interest. The amount relates to a contract for collection of toll on Daund Patas Road,
SH 67 near Daund Rail Over Bridge, District Pune and near Bhima Bridge in District Nagar. The
Bombay High Court has rejected the said application. The Company has filed a review petition
before the Bombay High Court. The matter is currently pending.

9. The Company is an approved sub-contractor of IRCON Limited for the contract awarded by
M.S.R.D.C. The settlement committee of the M.S. R.D.C granted claims to the tune of Rs. 6.80
million, Rs. 3.48 million and Rs. 11.41 million against claims of Rs. 86.34 million plus interest,
Rs. 18.80 million plus interest and Rs. 36.71 million interest respectively. The Company has
approached the Bombay High Court for the appointment of an arbitrator under Section 11 of the
Arbitration and Conciliation Act, 1996. The Bombay High Court decided that the claims are
arbitrable and hence, directed IRCON to appoint an arbitrator. The arbitrator has been appointed
and the notice for submission of statement of claims has been issued. The arbitration proceedings
have begun. The matter is currently pending.

10. The Company had filed an application under Section 20 of the Arbitration Act, 1940 in the court
of Civil Judge Senior Division, Nashik against Vadilal Dairy International Ltd. for appointment of
an arbitrator to decide the disputes as the architect failed to appoint an arbitrator. The Civil Judge
Senior Division, Nashik rejected the application stating that the disputes involved in the matter
were excepted from reference to arbitration under the relevant work contract. The Company filed
the first appeal in the Bombay High Court against the decision of the Civil Judge Senior Division,
Nashik. The appeal has been allowed with the direction to appoint an arbitrator. The arbitrator
appointed by the Bombay High Court has communicated his inability. The Company has filed a
civil application to appoint another person as the arbitrator. The matter is pending for appointment
of an arbitrator.The matter is pending for arbitration proceedings.

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Contingent Liability as of March 31, 2010: Rs. 18,415.18 million

Contingent Liabilities As of March 31, 2010

Bank Guarantees and Letters of Credit issued by bankers in favour of third 3537.32
parties
Corporate Guarantee issued by the Company in favour of Banks/ Financial 12396.57
Institutions for finance raised by Companies under the same management
Claims against the Company not acknowledged as debts. 9.47
Disputed tax demands (net of taxes paid) 278.23
Liability Against capital commitments outstanding (net of advances) 2189.67
Liability of duty against export obligations 3.92
Total 18,415.18

Litigation involving Subsidiaries

Ashoka Infrastructure Limited

1. A writ petition has been filed in the Bombay High Court by Nagar Road Industries Chamber of
Commerce and Agriculture (the “Petitioners”) against the State of Maharashtra; the Secretary
PWD (Roads); Chief Engineer PWD, Pune division; Superintending Engineer, Public Works
Circle, Solapur; Executive Engineer, PWD Akluj and Ashoka Infrastructure Limited (together
referred as the “Respondents”). Ashoka Infrastructure Limited (“AIL”) had undertaken the work
of four-laning and strengthening of Pune - Ahmednagar Road State Highway no.60, Km. 10/600
to 64/000 on BOT basis. On completion of the said road, AIL started the collection of toll in
accordance with notification dated July 5, 2005. It is the grievance of the Petitioners that the State
of Maharashtra had not granted any concession to the vehicles which frequently used the said
road. Further, the Petitioners have stated that since they are using only a part of the road, they
should not be charged toll tax for the entire stretch of the road, but in proportion to the length of
the road used by them. The Petitioners have, therefore, prayed for quashing and setting aside of
the notification dated July 5, 2005, declaration that the toll charges fixed by the government as per
the notification dated July 5, 2005 are discriminatory and directions to the Respondents for
making monthly pass available to the frequent and multiple users of the said road. The Petitioners
have further prayed that the Respondents be directed to provide a third lane at the tollbooths and
have also sought an interim injunction against the Respondents to prevent them from charging toll
from the members of the Petitioners. The matter is currently pending and no interim relief has
been granted to the Petitioners. The Petitioners had prayed for interim relief for directing the
Company to make provisions for monthly pass to the frequent and multiple user of Pune-
Ahmednagar road. However, the Bombay High court passed an order to maintain an account if so
desired in respect of toll charges to be paid hence forth and submit the same to the toll collector
every month. The matter is pending.

2. A writ petition has been filed in the Bombay High Court by AIL against the Principal District,
Judge and Sessions Judge, Pune (“Respondent No.1”) and the State of Maharashtra seeking
direction to Respondent No.1 to allot more courts of Judicial Magistrate, First Class in Pune and
Ghodnadi for filing, registration and trial of heavy number of criminal cases being filed by AIL in
respect of evasion of payment of toll by the commuters at the toll plazas located at Ranjangaon
and Koregaon Bhima in relation ot Pune-Ahmednagar road. The Bombay High Court has passed
an order derecting the District and Sessions Judge, Pune to decide the applications filed by the
Company. The matter is pending.

3. AIL has initiated arbitration proceedings against Public Works Department, Pune, Government of
Maharashtra before the arbitral tribunal in Pune. The proceedings have arisen in relation to a
contract between the parties regarding the four laning and strengthening of Pune-Ahmednagar
Road State Highway No. 60 (km 10/600 to 64/000), with private finance and toll rights on BOT
basis. AIL has claimed an amount of Rs. 195.30 million plus interest. The matter is pending.

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4. A criminal complaint has been filed by AIL, before the Judicial Magistrate, Pune, against Anil
Chondhe and some others (the “Defendants”). AIL alleges that its employees were severely beaten
by the Defendant and others and that the Defendant and others refused to pay toll at the toll booth
on the Pune-Ahmednagar road which is being operated by AIL. The complaint is currently
pending.

5. AIL has filed a criminal case in the court of Junior Magistrate First Class, against Shri
Consultancy and Services and its proprietor, Sanjay Malik, under Section 138 of the Negotiable
Instruments Act, 1881 for dishonour of a cheque of Rs. 0.07 million drawn in its favour. The
complaint is currently pending.

6. Labour officer has filed a criminal case against AIL before Judicial Magistrate First Class as per
the provisions of the Payment of Wages (Mines) Rules, 1956 due to certain irregularities under the
Payment of Wages (Mines) Rules, 1956 in relation to quarry of Lonicand. The matter is pending.

7. The Income Tax Officer, Ward 8(1), Pune had issued an assessment order to AIL for the
assessment year 2007-08 for disallowance of depreciation on project cost and has made a demand
of Rs. 110.85 million. An appeal was filed against the order of the Income Tax Officer before the
Commissioner (Appeals) Pune. Another stay application was filed for demand raised, before
Income Tax Officer, Ward 8(1), Jurisdictional Additional Commissioner and Jurisdictional
Commissioner but all the authorities have denied the stay and directed AIL to pay 50% of the total
demand raised. Aggrieved by the rejection of the stay application, a writ petition was filed before
the Bombay High Court and the Bombay High Court has remanded the matter to Commissioner
(Appeals) to dispose the matter of granting stay within two weeks and accordingly directed the
Income Tax Department not to take any coercive measure till the disposal of matter by
Commissioner of Income Tax (Appeals). The matter was taken up by the Commissioner (Appeals)
Pune V which partly allowed the appeal. CIT Appeals V has allowed the depreciation on project
cost considering the same as building and accordingly 10% depreciation is allowed. On the basis
of the order of CIT Appeals there shall be no demand against the company. AIL has preferred an
appeal before ITAT Pune against the order of CIT Appeals and the matter is pending.

Contingent Liability as of March 31, 2010: Rs. 59.13 million

Viva Highways Private Limited

1. Sanjay Prasad and others (the “Plaintiffs”) have filed a suit against Viva Highways Private
Limited (“VHPL”), the State of Madhya Pradesh and others in the Court of Second Civil Judge,
Class II, Mhow, Indore. Under the concession agreement with the State of Madhya Pradesh in
respect of the Indore-Edalabad Highway Project which was awarded to VHPL, the latter was
permitted by the State of Madhya Pradesh to erect a toll booth to collect and retain toll tax from
vehicles using the highway. To prevent the loss in collection of toll, VHPL contends that the State
of Madhya Pradesh permitted the construction of a check post by VHPL. The Plaintiffs filed suit
against the erection of toll booth and the check post as a public nuisance on the ground that the
vehicles were being taxed twice, both at the toll booth and the check post. Plaintiffs have prayed
for an injunction to prevent the collection of toll. Due to the public character of the dispute, VHPL
challenged the jurisdiction of the court at Mhow on the ground that the case was an instance of
public interest litigation and should, therefore, be filed before the Madhya Pradesh High Court.
The court dismissed VHPL’s contentions holding that it had jurisdiction in the case of a public
nuisance and also dismissed a revision petition filed by VHPL. VHPL has filed a civil revision suit
in the Madhya Pradesh High Court, Indore Bench. VHPL has filed this application for rejection of
plaint in civil suit against Sanjay Prasad and others in the court of Second Civil Judge, Class II,
Mhow, which was dismissed by the court. Further, VHPL has filed an appeal and a stay
application before Custom Excise and Service tax Appellate Tribunal at Mumbai. The matter is
currently pending.

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2. The Assistant Commissioner of Income Tax, Nashik Circle, had issued an assessment order to the
VHPL for the assessment year 2006-07. The order pertains to disallowance of depreciation on
project cost and has allowed amortization over the useful life of the project, and also disallowed
supervision charges paid as prior period expenses. VHPL filed an appeal against the said
assessment order before the CIT (Appeals), Nashik. The appeal currently pending.

3. The Commissioner of Service Tax, Nashik had issued a show cause notice issued against VHPL
for liability of service tax on maintenance and repairs on the project developed by VHPL by
dividing the agreement (entered with the employer) between the agreement for repair and
agreement for maintenance. The Commissioner of Service Tax, Nashik has raised demand of Rs.
58.26 million plus applicable interest and penalty of Rs. 58.26 million for the period from June 16,
2005 to March 31, 2008. VHPL is required to pay the said demand and penalties within 30 days
from the date of communication of the order and the penalty may be reduced to the extent of 25
per cent if the payment of service tax and applicable interest is made within 30 days from the date
of communication of the order. VHPL has filed an appeal and stay application before the Custom
Excise and Service Tax Appellate Tribunal, Mumbai. The matter is currently pending.

4. The Commissioner of Service Tax, Nashik has passed an order against VHPL for liability of
service tax amounting to Rs. 27.76 million plus penalty and interst for the period between April 1,
2008 to November 30, 2008 on the BOT project developed by VHPL. VHPL is required to pay the
said demand and penalties within 30 days from the date of communication of the order and the
penalty may be reduced to the extent of 25 per cent if the payment of service tax and applicable
interest is made within 30 days from the date of communication of the order. VHPL has filed an
appeal and stay application before Custom Excise and Service tax Appellate Tribunal at Mumbai.
The matter is currently pending

Contingent Liability as of March 31, 2010: Rs. 184.06 million

Ashoka Infraways Private Limited

1. A writ petition has been filed by Ashoka Infraways Private Limited (“AIPL”), in the Madhya
Pradesh High Court at Indore against the order of the Assistant Commissioner, Commercial Tax,
Division 3, Indore. The aggregate amount involved is Rs. 0.32 million. The petition is currently
pending.

2. AIPL has filed two writ petitions before the Madhya Pradesh High Court against the orders of the
Additional Commissioner Commercial Tax (Revision), Indore, for holding that the contract for
developing, strengthening, widening, maintaining and operating the Dewas Bypass road under the
BOT scheme and the authority to collect the toll is a works contract. The aggregate amount
involved for fiscal year 2003-04 is Rs. 5.2 million and for the fiscal year 2004-05 is Rs. 0.16
million. The matters are currently pending.

3. The Assistant Commissioner of Income Tax, Nashik Circle, had issued an assessment order to the
AIPL for the assessment year 2006-07. The order pertains to disallowance of depreciation on
project cost and has allowed amortization over the useful life of the project. AIPL filed an appeal
against the said assessment order before the CIT (Appeals), Nashik. The appeal is currently
pending.

4. The Assistant Commissioner of Income Tax, Nashik Circle had issued an assessment order to the
Company for the assessment year 2007-08. The order pertains to disallowance of depreciation on
project cost and has allowed amortization over the useful life of the project on the ground that the
‘license to collect toll’ is not an intangible asset and hence, is not eligible for depreciation of 25%.
AIPL filed an appeal against the said assessment order before the CIT (Appeals), Nashik. No
demand has been raised as there being carry forward unabsorbed depreciation. The matter is
currently pending.

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5. The Commissioner of Service Tax, Nashik had issued a show cause notice issued against AIPL for
liability of service tax on maintenance and repairs on the project developed by AIPL by dividing
the agreement (entered with the employer) between the agreement for repair and agreement for
maintenance. The Commissioner of Service Tax, Nashik has raised demand of Rs. 13.24 million
and a penalty of Rs. 13.24 million for the period June 16, 2005 to March 31, 2008. AIPL is
required to pay the said demand and penalties within 30 days from the date of communication of
the order and the penalty may be reduced to the extent of 25 per cent if the payment of service tax
and applicable interest is made within 30 days from the date of communication of the order. The
matter is currently pending.

6. The Commissioner of Service Tax, Nashik has passed an order against AIPL for liability of
service tax amounting to Rs. 4.76 Million plus Penalty and Interest (amount not specified in the
Order) on maintenance and repairs on the BOT project developed by AIPL. AIPL has filed an
appeal and stay application before Custom Excise and Service Tax Appellate Tribunal at Mumbai.
The matter is currently pending

7. Suresh Lakshman Mirge, an ex-employee of the Company has filed a workmen compensation
application before the Labour Court, Dewas, Madhya Pradesh claiming that the Company has
removed him from service without assigning any reason for his removal and hence he is entitled to
recover his unpaid salary of Rs. 0.031 million with interest and penalty from the Company. The
matter is currently pending.

Contingent Liability as of March 31, 2010: Rs. 50.42 million

Ashoka-DSC Katni Bypass Road Private Limited

Outstanding Litigation: Nil

Contingent Liability as of March 31, 2010: Rs. 4.20 million

Ashoka Highways (Bhandara) Limited

Ashoka Highways (Bhandara) Limited has received a letter dated March 26, 2010 in the matter of agitation
by the villagers for the construction of underpasses at Kohamara, Deori & lakhni (2 Nos.) denoting that the
issue has been taken up with the NHAI and the NHAI has approved for deletion of provision for
construction of 4 underpasses from the scope of the work under the concession agreement. The matter is
pending.

Contingent Liability as of March 31, 2010: Rs. 377.20 million

Ashoka Highways (Durg) Limited

Ashoka Highways (Durg) Limited (“AHDL”) has sent a letter dated January 17, 2009 to the Chief
Conservator of Forest, Raipur demanding payment for cutting of scheduled trees deposited with the Forest
Department, Chirchari. AHDL is executing the project for 4 laning from Durg Bypass to
Chhattisgarh/Maharashtra Border i.e. Km 322.400 to Km 405.000 of NH-06 in the state of Chhattisgarh
under the contract of National Highway Authority of India, Delhi on BOT basis. As per the agreement
between National Highway Authority of India and Ashoka Highways (Durg) Limited, all the trees coming
in widening has to be cut and the proceeds would be AHDL’s property but no payment has been made by
the Forest Department, Chirchari. Moreover compensation for aforestation is also the responsibility of
concessionaire (AHDL). The matter is pending.

Contingent Liability as of March 31, 2010: Rs. 1740.95 million

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Ashoka Pre-Con Private Limited

The Assistant Provident Fund Commissioner (Compliance) Sub- Regional Office, Nashik has issued
summons to Ashoka Pre-Con Private Limited (“APCPL”) for determining the amount due from APCPL
from July 2009 to May 2010 under section 7-A of Employees’ Provident Funds and Miscellaneous
Provisions Act, 1952. APCPL has also been directed to produce the provident fund records in respect of
Ashoka Pre-Con Private Limited before the Enforcement Officer within 15 days from the receipt of this
notice i.e. by July 11, 2010. The matter is pending.

Contingent Liability as of March 31, 2010: Nil

Ashoka Technologies Private Limited

Outstanding Litigation: Nil

Contingent Liability as of March 31, 2010: Nil

Litigation involving Associate Companies

Viva Infrastructure Private Limited

1. A summary suit has been filed by Viva Infrastructure Private Limited (“VIPL”) in the court of
Civil Judge Senior Division, Nasik against Vishal Khemani. This suit has been filed for recovery
of an amount of Rs. 2.30 million which was given by VIPL by way of non corporate deposit to
Vishal Khemani which became due and the same was not paid. The matter is currently pending.

2. A civil suit has been filed by VIPL before Civil Judge Senior Division, Nasik against Vitthal
Ganpat Ghare for permanent injunction and compensation of Rs.0.20 million. In the present suit,
VIPL claimed performance of development agreement which had been executed by Vitthal Ganpat
Ghare in favour of VIPL. Further, Vitthal Ganpat Ghare had given an undertaking that he will not
dispose of the property without the consent of the court. The matter is currently pending. Further,
in connection with this transaction, Vitthal Ganpat Ghare has filed criminal complaint against
Satish Dhondulal Parakh and others under Section 138 of Negotiable Instrument Act, 1881 and
claimed that the cheque issued by the Company against the transaction had been dishonoured.
Against the order of issue of process in the said criminal complaint, Satish Dhondulal Parakh,
Ashish A. Kataria and Yogesh Dixit have filed criminal revision before the District and the
Sessions Court. The District Court has stayed the proceedings of criminal complaint pending
before the lower court. The matters are currently pending.

3. VIPL has filed a suit for an injunction against one Mahale and others in the court of the Civil
Judge Senior Division, Nashik. VIPL had entered into a development agreement with one Vitthal
Ganpat Ghare, and in pursuance of the development agreement the Company is in possession of
the property taken for development. Mahale is an adjacent owner of the said property and has been
trying to encroach the property taken by the company for development. Hence, VIPL has filed a
suit for injunction against Mahale and in the said suit ex-parte injunction has been vacated. VIPL
has preferred an appeal and court has granted ex-parte injunction in appeal. The matter is currently
pending.

4. Complaints under section 138 of the Negotiable Instruments Act, 1938 have been filed by Mr.
Haribhau S. Tile, Mr. Madhukar Tile, Mr. Balu L. Tile, Mr. Shivaji L. Tile and Mr. Suman S. Tile
against Viva Infrastructure Pvt. Ltd., Ashok Motilal Katariya and Satish Dhondulal Parakh, for
dishonour of cheque cumulatively amounting to Rs.5.42 million before the court of the Judicial
Magistrate First Class, Nasik. The matters are currently pending.

Contingent Liability as of March 31, 2010: Nil

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Litigation involving Partnership Firms

Ashoka Highway-Ad

Hema Katariya has filed a suit in the court of the Civil Judge, Junior Division, Nashik. For further details,
please see “Outstanding Litigation and Material Developments-Litigation by Hema Katariya” on page 376
of this Prospectus.

Contingent Liability as of March 31, 2010: Nil

Ashoka Infrastructures

1. Dhule BOT

a. Ashoka Infrastructures has initiated an arbitration proceeding against the Government of

Maharashtra before an arbitral tribunal (Arbitration Reference-I) in relation to a contract
for construction of diversion outside Dhule – Town on BOT basis. The arbitral tribunal
awarded an amount of Rs. 11.41 million against the Ashoka Infrastructures’ claim of Rs.
21.47 million plus interest and additional concession period of approximately 7 years.
Both Ashoka Infrastructures and the Government of Maharashtra filed applications under
the Section 34 of the Arbitration and Conciliation Act, 1996 before the District Court,
Dhule which were rejected. In view of the arbitral award, the Government of Maharashtra
issued a notification to give effect to the award. However, the notification provided for
shorter concession period than that awarded. Ashoka Infrastructures has filed an
execution application before the District Court, Dhule, for complete implementation of
the award. The District Court held that Ashoka Infrastructures should be compensated in
cash in lieu of the additional concession period. Ashoka Infrastructures has filed an
appeal before the Aurangabad bench of the Bombay High Court against the decision of
the District Court. During the pendency of the appeal, the State Government has, through
a notification, extended the concession period upto September 20, 2009. Considering this,
the Bombay High Court has allowed Ashoka Infrastructures to press for interim relief if
the Government of Maharashtra does not issue further notification. The writ petition filed
with the Bombay High Court was rejected on technical grounds however, permitting
Ashoka Infrastructures to submit fresh petition. The fresh petition was filed and interim
relief upto November 4, 2008 was granted. The rule in respect of fresh petition was
issued on November 4, 2008 but petition for continuation of interim relief for collection
of toll was not granted. The letters patent appeal and a civil application for interim relief
have been submitted before the Bombay High Court. The Bombay High Court has
granted an interim relief and the letters patent appeal has been allowed. The matter is
pending.

b. In relation to Dhule BOT, Ashoka Infrastructures has initiated another arbitration

proceeding before a sole arbitrator against the decision of the Public Works Department,
Dhule, the Government of Maharashtra due to reduction of the concession period by 228
days on account of change in lending rates. Additionally, the Government of Maharashtra
has granted Rs. 6.8 million due to inter alia delay in diversion of traffic outside Dhule
city, etc. The arbitral tribunal has set aside the said action of the Government of
Maharashtra. The Ashoka Infrastructure has filed an execution application before the
District Court, Dhule, for enforcement of the award. The matter is presently pending.

2. The Commissioner of Sales Tax, Maharashtra State, Mumbai has issued notice to Ashoka
Infrastructures, for registering one special purpose vehicle of Ashoka Infrastructures for the
purposes of sales tax. Ashoka Infrastructures had sought a clarification from the Commissioner of
Sales Tax, Mumbai by way of Determination of Disputed Questions regarding applicability of
sales tax to the special purpose vehicle. The Commissioner of Sales Tax, Mumbai issued
clarification confirming the requirement of registration of the special purpose vehicle. The said

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 clarification has been challenged by Ashoka Infrastructures before the Sales Tax Tribunal,
Mumbai. The case is currently pending.

Contingent Liability as of March 31, 2010: Nil

Litigation involving Promoters

1. Aditya Satish Parakh (the “Plaintiff”) has filed a special civil suit, in the Court of Civil Judge
(Senior Division), Nashik, seeking permanent injunction and for the specific performance of
agreement of sale entered into between Raghunath Bansilal Malpani (the “Defendant”) and the
Plaintiff. The Plaintiff has claimed that the Defendant entered into an agreement of sale dated May
21, 2005 with the Plaintiff for the sale of land bearing block no. 199 area H.00: 86R of Igatpuri.
The Plaintiff has, further, claimed that he had given Rs. 0.005 million as earnest money to the
Defendant and that the balance amount was payable on the execution of the sale deed of the said
land. The Plaintiff has also filed an application for interim injunction seeking that the Defendant
be restrained from creating any third party interest on the suit property. The court has rejected
grant of an injunction and therefore, the Company has filed an appeal in the Bombay High Court
and the Court has directed the parties to maintain status quo. The suit in the lower court is
currently pending.

2. Aditya Satish Parakh had entered into an agreement for sale of land (S. No. 137/A, Manori,
Dindori) with Ganpat Bhaurao Shelke. However, since the landowners were obstructing the
possession, Aditya S. Parakh filed a civil suit for injunction in the Court of Civil Judge Junior
Division, Dindori for restraining the land owners from dispossessing him. In this matter, land
owners reached a compromise and consent decree was passed in favour of Aditya Parakh.
However, after the consent decree was passed, M/s Samrat Activities and Thakkar Developers
attempted to take possession of the said land forcefully. To avert such attempts, Aditya Parakh
filed a criminal complaint against them. The matter is pending. Simultaneously M/s Samrat
Activities and Thakkar Developers also filed a criminal complaint against Aditya S. Parakh and
others. M/s Samrat Activities and Thakkar Developers have also filed a special civil suit in the
Court of Civil Judge (Senior Division), Nashik against the land owners, Ganpat Bhaurao Shelke
and Aditya Satish Parakh. In the said suit, the Court has granted ad-interim injunction in favour of
plaintiff and the matter is currently pending.

Simultaneously Aditya Satish Parakh has also filed suit for injunction & declaration against M/s
Samrat Activities and Thakkar Developers in the court of Civil Judge Junior Division at Dindori.
The matter pending before the Dindori Court has been transferred to Civil Judge Senior Division,
Nashik and the matter is pending.

3. A motor accident claim has been filed by Chanchal Liladhar Bhole against Ashish A. Katariya,
ICICI Lombard Insurance Company and has submitted that the vehicle involved in the accident is
owned by Ashish A. Katariya and has claimed compensation to the tune of Rs. 0.15 million under
Section 166 of the Motor Vehicles Act, 1989 and Rs. 0.025 million under Section 140 of the
Motor Vehicles Act, 1989 along with 18 per cent interest per annum. The matter has been
compromised for Rs. 0.45 million towards full and final settlement of claim.

4. A motor accident claim has been filed by Sulochana Karbhari Gayakwad against Ashish A.
Katariya, ICICI Lombard Insurance Company and has submitted that the vehicle involved in the
accident is owned by Ashish A. Katariya and has claimed compensation to the tune of Rs. 0.15
million under Section 166 of the Motor Vehicles Act, 1989, and Rs. 0.025 million under Section
140 of the Motor Vehicles Act, 1989, along with 18 per cent interest per annum. The matter has
been compromised for Rs. 0.45 million towards full and final settlement of claim.

5. Z. Devare has filed a motor accident claim against Ashok Motilal Katariya before Additional
District Judge, Nasik, for total compensation of Rs. 1,50,000/- for the injuries sustained by her in a
road accident involving a vehicle owned by Mr. Ashok Katariya. ICICI Lombard General

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 Insurance (“Lombard”) has also been made a party to the claim as the vehicle is ensured with
Lombard. The matter is pending.

For details regarding litigation involving Ashok M. Katariya and Satish D. Parakh, please refer to section
entitled, “Litigation involving Promoters and/or the Directors” on page 343 of this Prospectus.

Litigation involving Group Companies

Litigation by Hema Katariya

1. Hema Katariya, wife of Deepak M. Katariya, had sent a notice addressed to the Company, Ashok
Katariya, Satish Parakh, Asha Katariya and others including various promoter group entities and some of
the directors of the promoter group entities. In the said notice, Hema Katariya stated that she is a partner of
Ashoka Builders and alleged that she was not allowed active participation in the firm and consequently
intended to retire from Ashoka Builders. She also wanted to dissolve the firm and liquidate her share of 10
per cent in Ashoka Builders. Hema Katariya had threatened to invoke arbitration proceedings if the firm is
not dissolved and her share not given. She had, further, alleged that Satish D. Parakh and other partners
have diverted funds of the partnership firm and incorporated 35 separate private limited companies and
partnership firms. She had, therefore, claimed a share in the net assets of the said firms and companies.
Ashok Katariya, Satish Parakh and Asha Katariya have replied to the notice wherein they have denied all
the allegations. Further to the above notice, Hema Katariya had filed a suit along with an application for
temporary injunction, against the Company, Ashok Katariya, Asha Katariya, Sunil B. Raisoni, Satish D.
Parakh and others including certain group companies, before the court of Civil Judge, Junior Division,
Nashik for an injunction to restrain the Company from undertaking an IPO. The court granted a stay on
undertaking of IPO which was subsequently vacated and the said application was dismissed. Against the
order passed by the lower court, Hema Katariya has filed an appeal before the District Court, Nashik. The
appeal has been dismissed on merits. However, the suit for permanent injunction is currently pending for
framing of issues. Hema Deepak Katariya has filed a civil application before Civil Judge Junior Division,
Nasik on July 23, 2010 received by the Company on September 21, 2010, to obtain interim injunction
under Order 39 Rule 1 of the Civil Procedure Code, 1908 against the Issue. Hema Deepak Katariya has
filed another application on September 21, 2010 before the court as a continuation of the application dated
July 23, 2010 for an interim stay on the Issue. The matter is pending.

Ashoka Bitucon Exim Private Limited

Outstanding Litigation: Nil

Contingent Liability as of March 31, 2010: Nil

Ashoka Buildwell and Developers Private Limited

1. Ashoka Buildwell and Developers Private Limited (“ABDPL”) had filed a criminal complaint
against the directors of Vadilal Dairy International Limited (“VDIL”) under Section 420 of the
Indian Penal Code, 1860, before the Judicial Magistrate, Class I, Nashik. ABDPL has alleged that
VDIL, who had contracted to provide management and supervisory services, did not do so despite
having charged fees for the same. Subsequently, VDIL filed a criminal complaint, against
ABDPL, and two of its directors (Ashok Katariya and Satish Parakh) under Section 420 of the
Indian Penal Code, 1860 in the Court of the Judicial Magistrate, Andheri, Mumbai. ABDPL has
alleged that the directors of the company have cheated the ABDPL by not paying charges for
management services provided by the ABDPL. The amount claimed by ABDPL aggregates
approximately to Rs. 1.38 million. The complaints are currently pending.

2. ABDPL has filed a special civil suit against Deepak M. Katariya and others, in the court of Civil
Judge, Senior Division, Nashik for defamation and has inter alia pleaded for compensation
aggregating approximately to Rs. 0.6 million. The matter is currently pending.

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3. ABDPL has filed a criminal complaint against Deepak M. Katariya and others in the court of
Judicial Magistrate First Class, Nashik alleging defamation and cheating. The matter is currently
pending.

4. Deepak M. Katariya (“Appellant”) has filed three appeals (Civil Appeal Nos. 99/2005, 100/2005
and 101/2005), against the Ashoka Group, Ashoka Builders and ABDPL, in the court of
Additional District Judge, Nashik. The Appellant has filed these appeals against the orders passed
by the Civil Judge, Junior Division in three regular civil suits (Nos. 349/98, 355/98 and 398/98)
filed by Ashoka Group, Ashoka Builders and ABDPL against Deepak M. Katariya and others.
The appeals are currently pending.

5. Deepak M. Katariya (the “Plaintiff”) has filed a civil suit against ABDPL and others (the
“Defendants”), in the court of the Civil Judge, Senior Division, Nashik. The Plaintiff filed an
application for temporary injunction against the Defendants from obstructing the Plaintiff’s
possession over Flat No.1, Building No.1 in Ashoka Presidency. Earlier, Daya Subhas Ghuge and
others (the “Complainants”) had filed a consumer complaint against ABDPL and the Plaintiff in
which it was decided that ABDPL and the Plaintiff should deliver possession of the above flat to
the Complainants or refund the amount received from them with 18 per cent interest. This order
was challenged before State Consumer Forum through an appeal (No. 1576/2005). During the
pendency of that appeal, the Complainants filed an application to remove the Plaintiff’s name
from the first appeal and the first appeal was accordingly disposed off. Despite of this, the Plaintiff
had received a notice to deliver vacant possession of the suit flat. The Civil Judge, Senior Division
rejected the Plaintiff’s application for interim injunction. The Plaintiff has filed an appeal (No.
37/2006) challenging the interim order passed by the District and Sessions Judge, Nashik. The
appeal (No. 37/2006) and the civil suit (No. 41/06) have been dismissed by the court for want of
prosecution.

6. Deepak M. Katariya has filed a criminal revision suit against ABDPL and others in the court of
the Sessions Judge, Nashik. The criminal revision suit has been filed against an order passed by
the lower court with regard to properties being returned to ABDPL. The matter is currently
pending.

7. Deepak M. Katariya has filed an appeal against ABDPL in the State Consumer Forum, Mumbai.
This appeal has been filed against the order passed by the District Consumer Redressal Forum,
Nashik in Consumer Complaint No. 15/2001. The District Consumer Forum ordered that the
possession of flat should be handed over to Yogesh Madhrele; nominee of the government. The
matter is currently pending.

8. ABDPL has filed a criminal complaint under Section 406 of the Indian Penal Code, 1860, in the
court of Judicial Magistrate, Class I, Nashik, against M/s. Dx-Deepsons for breach of trust.
ABDPL has alleged that Deepak M. Katariya, ex-director of the company, took possession of the
shops and agreed to sell them to M/s Dx-Deepsons, in which he is a partner, without the
knowledge of the ABDPL and without making the full payment before taking possession of the
shops. The complaint is currently pending.

9. The Government of Maharashtra through the Urban Land Ceiling Department, Nashik has filed a
criminal complaint against Ashoka Buildwell and Developers Private Limited, Ashok Katariya (as
director) and Deepak M. Katariya (as erstwhile director) (“Respondents”) before the Judicial
Magistrate, First Class, Nashik. Respondents were charged with inducting tenants into a flat
allotted to the government allottees. Ashok Katariya has alleged that Deepak M. Katariya inducted
the tenants without his knowledge and further contended that the case against him should be
dismissed. In the meanwhile, the nominees of the government were given possession of the flats
allotted to them by Ashoka Buildwell & Developers Private Limited. Consequently, Ashok
Katariya and Deepak Katariya have filed applications for discharge, which are currently pending
for proceedings on the discharge application.

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10. ABDPL has also filed a criminal complaint in the Court of Judicial Magistrate First Class, Nashik
against Mr. Deepak Katariya. In the said complaint, ABDPL has alleged that Deepak Katariya had
let-out the flats owned by ABDPL and collected rent from the tenants without the knowledge of
the ABDPL and against the provisions of the Urban Land (Ceiling And Regulation) Act, 1976 and
thereby committed a criminal offence as the said flats were Government nominee’s flats and were
to be given to the Government nominees as per the Urban Land (Ceiling And Regulation) Act,
1976. The complaint is currently pending.

11. Hema Katariya has filed a suit in the court of the Civil Judge, Senior Division, Nashik. For further
details, please see “Outstanding Litigation and Other Development-Litigation by Hema Katariya”
on page 376 of this Prospectus.

Contingent Liability as of March 31, 2009: Nil

Ashoka Construwell Private Limited

1. Five cases have been filed against Ashoka Construwell Private Limited (“ACPL”) in relation to
motor accident claims. The amounts involved in these claims aggregate approximately Rs. 1.5
million. The matters are currently pending.

2. ACPL has filed a criminal case, against M/s Sonu Constructions (the “Respondent”), under
Section 138 of the Negotiable Instruments Act, 1881 before the Judicial Magistrate, Nashik for the
dishonour of a cheque of Rs. 0.179 million drawn by the Respondent. The matter is currently
pending.

3. ACPL has filed an appeal filed before Employees Provident Fund Appellate Tribunal, New Delhi
to challenge the order dated July 31, 2009 passed by Assistant Provident Fund Commissioner,
Nasik under Section 7A of the Employees Provident Fund and Miscellaneous Provisions Act,
1952 (“EPFMPA”) for determination of the dues of Rs.1276475/- for the period from April 2004
to March 2005. The Company had deposited the said amount under Section 7-O of the EPFMPA.
The Assistant Provident Fund Commissioner, Nasik had determined that the dues on the basis of
figures shown in balance sheet under the head “Labour & Sub Contractors Charges” were without
proper and physical identification of beneficiaries. The matter is currently pending.

4. Hema Katariya has filed a suit in the court of the Civil Judge, Junior Division, Nashik. For further
details, please see “Litigation by Hema Katariya” on page 376 of this Prospectus.

Contingent Liability as of March 31, 2009: Nil

Ashoka Promoters Private Limited

1. Rafiq Memon has filed a civil suit against Ashoka Promoters Private Limited (“APPL”) and others
in the court of Civil Judge Senior Division, Nashik. The suit is for specific performance with an
alternate relief for compensation of an amount aggregating approximately to Rs. 3.51 million with
respect to land situated at Sinnar, Nashik. The suit is currently pending.

2. Lahanu Pawar has filed a civil suit against APPL and others in the court of Civil Judge Senior
Division, Nashik. The suit is for specific performance with an alternate relief aggregating
approximately to Rs. 0.36 million in respect of land situated at Sinnar, Nashik. The court has
rejected the application filed by APPL under Section 9A of Civil Procedure Code, 1908. A civil
revision application filed by APPL against that order in the Bombay High Court was also
dismissed. APPL has filed a review petition in the High Court of Bombay, which is currently
pending. The suit before Civil Judge Senior Division is currently pending.

3. Badruddin Kazi and others (the “Plaintiffs”) have filed a civil suit against APPL, Ashoka Premises
Private Limited and Ashoka Nirmiti Private Limited (the “Defendants”) and others in the court of

379
 Civil Judge Senior Division, Nashik. The Plaintiffs claim that they are the owners of land situated
at Sinnar, Nashik bearing Survey Nos. 935-937 admeasuring 98 acres and 14 guntas (the “Suit
Property”) which certain persons have illegally transferred to the Defendants. The Plaintiffs have
prayed that the allegedly illegal transfers in respect of the suit property be set aside and that
Defendants be restrained by way of perpetual injunction from carrying out any construction
activity on the Suit Property. The Plaintiffs have also asked for partition of property vis-à-vis
certain persons, also parties to the suit. In the alternative, the Plaintiffs have asked for a
compensation of Rs. 100 million along with interest of 18 per cent per annum. The suit is currently
pending.

4. Hema Katariya has filed a suit in the court of the Civil Judge, Junior Division, Nashik. For further
details, please see “-Litigation by Hema Katariya” on page 376 of this Prospectus.

Contingent Liability as of March 31, 2009: Nil

Ashoka Builders (Nasik) Private Limited

1. A criminal complaint had been filed by Pratap Kesharchand Doshi, against ABNPL, Ashok M.
Katariya, Sunil B. Raisoni and others, in the court of Judicial Magistrate First Class, Baramati
under Section 138 of the Negotiable Instrument Act, 1881. The complaint pertains to dishonour of
cheques amounting to Rs. 0.79 million. Ashok Motilal Katariya had filed revision against the
issuance of process. The said revision was allowed and the Sessions Court, Baramati, quashed the
process issued against Ashok Motilal Katariya. P. Doshi has filed a criminal revision petition, in
the Bombay High Court, challenging the order of the Sessions Court. The revision petition is
currently pending.

2. Hema Katariya has filed a civil suit in the court of the Civil Judge, Junior Division, Nashik. For
further details, please see “-Litigation by Hema Katariya” on page 376 of this Prospectus.

3. The Chief Executive Engineer has filed a civil suit in the court of Civil Judge, Junior Division,
Pune against ABNPL and Yashwant Sakhare. This suit was decided against the Company. The
Company along with other respondents has filed an appeal against the judgment and decree passed
by the Court. The said appeal is currently pending.

4. ABNPL has filed a civil suit against Pune Municipal Corporation (“PMC”) for declaration and
injunction. In this matter, PMC by way of an order under Section 205 of the Bombay Provincial
Municipal Corporation Act, 1949 had given sanction for approaching our site. The Company had
obtained the order for maintaining status quo against PMC which has been vacated as the
Company did not press for the same. The matter is pending.

5. An appeal has been filed by ABNPL before Senior Divisional Officer, Pune under Section 247 of
the Maharashtra Land Revenue Code, 1966, against the judgment passed by Junior Divisional
Officer, Pune in relation to the certification of Mutation Entry No. 8544 in respect of Survey No.
126/2/3, admeasuring 36.05 are in village Katraj. The matter is pending for judgment.

6. A claim has been filed before the Motor Accident Claim Tribunal for the compensation of Rs.
0.015 million due to a casualty at one of the work sites of ABNPL. However, no notice was served
on the relevant insurer. Therefore, the matter has been fixed for return of notice against the
insurance company. The matter is pending.

7. Sadashiv Mahadu Jadhav and others have files a writ petiton before the Bombay High Court
seeking direction to release 2600 sq. mtrs land out of Servey No. 73(old 126) Hissa No. 12A of
Katraj, from deemed acquisition under section 10(3) of Urban Land (Ceiling and Regulation ) Act
1976. The Bombay High Court has kep the matter pending till the matter is decided by the
Supreme Court and has directed the petitioner to maintain status quo. The matter is pending.

380
8. ABNPL has filed three criminal complaints under Section 138 of the Negotiable Instruments Act,
1881 against Prakash Salunke, M/s Sharda Iron Steel and M/s Vibration Controllers before the
Judicial Magistrate, Pune, for dishonour of cheques amounting to Rs.0.319 million, Rs. 0.49
million and Rs. 0.039 million respectively. The cases are currently pending.

Contingent Liability as of March 31, 2009: Nil

Jayaswals Ashoka Infrastructure Limited

1. Jayaswals Ashoka Infrastructure Private Limited (“JAIPL”) along with Ashoka Vastu Private
Limited (now merged with the Company) (the “Plaintiffs”) has filed a suit against United India
Insurance Company Limited and Standered Surveyors Private Limited before the Civil Judge
Senior Division, Bhandara for an insurance claim aggregating approximately to Rs. 1.45 million
and interest. Due to loss of centering and shuttering material which was washed away because of a
flash flood in Wainganga; river Ashoka Vastu Private Limited and JAIPL had made the insurance
claim. The claim was rejected by the insurance company pursuant to the surveyor’s report which
stated that the damage was due to the willful negligence of the Plaintiffs. In the civil suit, damages
of Rs. 2.27 million at 15 per cent per annum have been claimed by the Plaintiffs. The claim is
currently pending.

2. JAIPL has filed a writ petition in the Bombay High Court, Nagpur Bench against the order of the
Inspector General of Revenue Stamps, Pune for the payment of arrears of stamp duty. The stamp
duty arrears had arisen in relation to the contract for construction of bridge and its approaches
across Wainganga river in Km. 491/00 of Nagpur-Raipur road section of NH-6 in District
Bhandara (BOT Project). The amount involved is Rs. 78.4 million plus penalty. The petition is
currently pending.

3. JAIPL has filed an appeal in the High Court, Nagpur under Section 37 of the Arbitration and
Conciliation Act, 1996 challenging the judgment of District Court, Nagpur. The District Court,
Nagpur had rejected the majority award and accepted the minority award for an amount of Rs.
25.3 million plus interest against United India Assurance Company, towards damages for collapse
of span of the bridge during construction. The High Court has allowed Rs. 17.06 million against
bank guarantee deposited by United India Insurance Company. The appeal is currently pending.

4. The Chairman, Janseva Janlaksha Annaya Brashtachar Nirakaran Samiti has filed an appeal before
the State Information Commission, Nagpur Bench (“SIC”), against Jayaswals Ashoka
Infrastructure Pvt. Ltd. for obtaining the information about the date of start of toll collection,
forms filed by the Company, etc. The appeal has been filed against the order of the State
Information Commission, Pune Bench which held that Jayaswals Ashoka Infrastructure Pvt. Ltd.
ndid not fall under the purview of section 2 of the Right to Information Act, 2005 as it was a
private company. The matter is pending.

Contingent Liability as of March 31, 2009: Nil

Jaora-Nayagaon Toll Road Company Private Limited

Jaora-Nayagaon Toll Road Company Pvt. Ltd. has filed a writ petition before the Madhya Pradesh High
Court, Bench at Jabalpur against the State of Madhya Pradesh and others in relation to the right to collect
the toll in lieu of the amount spent by the Concessionaire in the construction of roads, bridges etc., under
the Build, operate & Transfer (BOT) scheme amount to a “lease” as contemplated under section 105 of the
Transfer of Property Act, 1882 and section 2 (16) of the Indian Stamp Act, 1899. Further, by this petition
the constitutional validity of the amendment made in proviso to third clause of Article 33 of the Schedule
1-A as amended by Indian Stamp (M.P.) Act, 2002 and section 48 and 48-B as amended by M.P. Act 24 of
1990 have also been challenged as ultra virus. The writ petition has been dismissed by the court on
February 11, 2010. The Company has filed a special leave petition before the Supreme Court of India. The
matter is pending.

381
Contingent Liability as of March 31, 2009: Rs. 3.92 milion

Ashoka City Towers Constructions Private Limited

Hema Katariya has filed a suit in the court of the Civil Judge, Junior Division, Nashik. For further details,
please see “-Litigation by Hema Katariya” on page 376 of this Prospectus.

Contingent Liability as of March 31, 2009: Nil

Ashoka Deserts and Developers Private Limited

Hema Katariya has filed a suit in the court of the Civil Judge, Junior Division, Nashik. For further details,
please see “-Litigation by Hema Katariya” on page 376 of this Prospectus.

Contingent Liability as of March 31, 2009: Nil

Ashoka Erectors Private Limited

Hema Katariya has filed a suit in the court of the Civil Judge, Junior Division, Nashik. For further details,
please see “-Litigation by Hema Katariya” on page 376 of this Prospectus.

Contingent Liability as of March 31, 2009: Nil

Hotel Evening Inn Private Limited

Hema Katariya has filed a suit in the court of the Civil Judge, Junior Division, Nashik. For further details,
please see “-Litigation by Hema Katariya” on page 376 of this Prospectus. Deepak Katariya has filed a writ
petition against Hotel Evening Inn Private Limited. For further details please see the paragraph above titled
“Litigation involving Promoters and/or the Directors”.

Contingent Liability as of March 31, 2009: Nil

Ashoka Housing Constructions Private Limited

Hema Katariya has filed a suit in the court of the Civil Judge, Junior Division, Nashik. For further details,
please see “-Litigation by Hema Katariya” on page 376 of this Prospectus.

Contingent Liability as of March 31, 2009: Nil

Ashoka Nirmiti Private Limited

1. Hema Katariya has filed a suit in the court of the Civil Judge, Junior Division, Nashik. For further
details please see the paragraph above entitled “Litigation by Hema Katariya”.

2. Badruddin Kazi and others (the “Plaintiffs”) have filed a special civil suit against Ashoka
Promoters Private Limited, Ashoka Premises Private Limited and Ashoka Nirmiti Private Limited.
For further details please see the paragraph above entitled “Litigation involving subsidiaries.”

Contingent Liability as of March 31, 2009: Nil

Ashoka Premises Private Limited

1. Hema Katariya has filed a suit in the court of the Civil Judge, Junior Division, Nashik. For further
details, please see “-Litigation by Hema Katariya” on page 376 of this Prospectus.

382
2. Badruddin Kazi and others (the “Plaintiffs”) have filed a special civil suit against Ashoka
Promoters Private Limited, Ashoka Premises Private Limited and Ashoka Nirmiti Private Limited.
For further details please see the paragraph above entitled “Litigation involving subsidiaries.”

Contingent Liability as of March 31, 2009: Nil

Ashoka Shilp Akruti Private Limited

Hema Katariya has filed a suit (451/2007) in the court of the Civil Judge, Senior Division, Nashik. For
further details please see the paragraph above titled “Litigation by Hema Katariya”.

Contingent Liability as of March 31, 2009: Nil

Ashoka Vastu Akruti Private Limited

Hema Katariya has filed a suit in the court of the Civil Judge, Junior Division, Nashik. For further details,
please see “-Litigation by Hema Katariya” on page 376 of this Prospectus.

Contingent Liability as of March 31, 2009: Nil

Ashoka Vastukala Nirman Private Limited

Outstanding Litigation: Nil

Contingent Liability as of March 31, 2009: Nil

A-One Tiles Private Limited

Hema Katariya has filed a suit (451/2007) in the court of the Civil Judge, Junior Division, Nashik. For
further details, please see “-Litigation by Hema Katariya” on page 376 of this Prospectus.

Contingent Liability as of March 31, 2009: Nil

Ashoka Bitucon International Private Limited

Outstanding Litigation: Nil

Contingent Liability as of March 31, 2009: Nil

Ashoka Path Nirman (Nashik) Private Limited

Outstanding Litigation: Nil

Contingent Liability as of March 31, 2009: Nil

Ashoka Vanrai Developments Private Limited

Hema Katariya has filed a suit in the court of the Civil Judge, Junior Division, Nashik. For further details,
please see “-Litigation by Hema Katariya” on page 376 of this Prospectus.

Contingent Liability as of March 31, 2009: Nil

383
Ashoka Biogreen Private Limited

Suresh Runjaji Bodke and others have filed a regular civil suit before the Civil Judge Junior Division,
Nashik for declaration and injunction against Ashoka Biogreen Private Limited (“ABPL”). The plaintiffs
have alleged that ABPL has set-up a bio-gas plant at Talwade, Trimbak, Dist. Nashik without taking the
required permission and that the said plant is hazardous for health of the villagers. The matter is currently
pending.

Contingent Liability as of March 31, 2009: Nil

Ashoka Universal Academy Private Limited

Outstanding Litigation: Nil

Contingent Liability as of March 31, 2009: Nil

Ashoka Estate Developers Private Limited

Hema Katariya has filed a suit in the court of the Civil Judge, Junior Division, Nashik. For further details,
please see “-Litigation by Hema Katariya” on page 376 of this Prospectus.

Contingent Liability as of March 31, 2009: Nil

PNG Tollway Private Limited

Outstanding Litigation: Nil

Contingent Liability as of March 31, 2010: Nil

Ashoka Bridgeways

1. The Public Works Department, Akluj (Pandharpur), Government of Maharashtra has challenged
two awards, in the Court of Additional District Judge, Solapur. The awards relate to the contract
for construction of bridge across Mandve - Nallah on Mahad-Pandharpur road, SH-70 (at k.m.
179/600) under B.O.T-(Reference I and II). The award in respect of reference I pertains to
damages for diversion of traffic, transporter’s strike and premature withdrawal of facility. The
award in respect of reference II pertains to counter claim by the Public Works Department towards
encashment of bank guarantee and non-laying of asphalt coat. Ashoka Bridgeways is defending
the award amounting to Rs. 1.6 million plus interest and rejection of counter claim. The cases are
currently pending.

2. The Income Tax officer Ward 1(1), Nashik issued an assessment order to Ashoka Bridgeways for
the assessment year 2007-08. The order pertains to disallowance of depreciation on project cost
and amortization over the life of the project. The Assessing Officer had allowed deduction of Rs.
5.1 million for construction cost againt the claim of depreciation for Rs. 9.06 million. No demand
has been raised as there being carry forward unabsorbed depreciation. Ashoka Bridgeways has
filed an appeal against the said assessment order before the CIT (Appeals), Nashik. The matter is
currently pending.

4. Ashoka Bridgeways has initiated an arbitration proceeding against the Company before an arbitral
tribunal in relation to a contract regarding the improvement to SH-76 to Takali Kasegaon Anwali
Road Major District Road. The Company has claimed an amount of Rs. 56.58 million plus interest
due to inter alia reduction of concession period, etc. The matter is currently pending.

Contingent Liability as of March 31, 2009: Nil

384
Ashoka Engineering Company

Hema Katariya has filed a suit in the court of the Civil Judge, Junior Division, Nashik. For further details,
please see “-Litigation by Hema Katariya” on page 376 of this Prospectus.

Contingent Liability as of March 31, 2009: Nil

Shubham Developers

Outstanding Litigation: Nil

Contingent Liability as of March 31, 2009: Nil

A.P. Equipments

Hema Katariya has filed a suit in the court of the Civil Judge, Junior Division, Nashik. For further details,
please see “-Litigation by Hema Katariya” on page 376 of this Prospectus.

Contingent Liability as of March 31, 2009: Nil

Ashoka Con Creations

Hema Katariya has filed a suit in the court of the Civil Judge, Junior Division, Nashik. For further details,
please see “-Litigation by Hema Katariya” on page 376 of this Prospectus.

Contingent Liability as of March 31, 2009: Nil

Ashoka Builders and Developers

Assistant Commissioner of Income Tax, Nashik Circle had issued an assessment order to Ashoka Builders
and Developers (the “Assessee”) for the assessment year 2000-01. The order pertains to set off of losses
due to change in status as the firm was assessed as an Association of Persons. The Assessee had filed an
appeal against the said assessment order before the Commissioner of Income Tax (Appeals), Nashik, which
was decided in favour of the Assessee. The Income Tax Department has preferred an appeal against the
order of Commissioner of Income Tax (Appeals), Nashik before the Income Tax Appellate Tribunal, Pune
and the matter is currently pending.

Contingent Liability as of March 31, 2009: Nil 

Ashoka E-Tech

1. Ishwarappa Natekar, (through legal heirs) has filed a workmen’s claim against Ashoka E-Tech, the
Company and Oriental Insurance Company, before the Commissioner for Workmen’s
Compensation, Pune. For further details please see the paragraph above entitled “Litigation against
the company.”

2. Kumar Dattatraya Kamble has filed a motor accidents claim before the Motor Accidents Claim
Tribunal, Pune against Ashoka E-Tech and the New India Assurance Company for compensation
of Rs. 0.45 million under section 166 of the Motor Vehicles Act, 1988 on account of injury
sustained by the claimant in the accident occurred on January 25, 2004 due to negligence of the
driver of a vehicle owned by Ashoka E-Tech. The claim is pending.

Contingent Liability as of March 31, 2009: Nil

385
Ashoka Lawns

Hema Katariya has filed a suit in the court of the Civil Judge, Junior Division, Nashik. For further details,
please see “-Litigation by Hema Katariya” on page 376 of this Prospectus.

Contingent Liability as of March 31, 2009: Nil

Ashoka Vastuvaibhav

Outstanding Litigation: Nil

Contingent Liability as of March 31, 2009: Nil

Ashoka Township

Outstanding Litigation: Nil

Contingent Liability as of March 31, 2009: Nil

Shweta Agro Farm

Hema Katariya has filed a suit in the court of the Civil Judge, Junior Division, Nashik. For further details,
please see “-Litigation by Hema Katariya” on page 376 of this Prospectus.

Contingent Liability as of March 31, 2009: Nil

Ashoka Lots-n-Lands

Hema Katariya has filed a suit in the court of the Civil Judge, Senior Division, Nashik. For further details,
please see “-Litigation by Hema Katariya” on page 376 of this Prospectus.

Contingent Liability as of March 31, 2009: Nil

386
 GOVERNMENT APPROVALS

We have received the necessary consents, licenses, permissions and approvals from the government and
various governmental agencies required for our present business and except as mentioned below, no
further approvals are required for carrying on our present business.

Approvals for the Issue

1. In-principle approval from the National Stock Exchange dated December 11, 2009;

1. In-principle approval from the Bombay Stock Exchange dated November 10, 2009;

2. RBI Approval vide letter no. FE.CO.FID.12135 /10.02.000/2009-10 dated November 6, 2009.

Approvals to carry on our Business

The Company requires various approvals for it to carry on its business in India. Certain approvals have
elapsed in their normal course and the Company has either made an application to the appropriate
authorities for renewal of such licences and/or approvals or is in the process of making such applications.
The approvals that the Company requires include the following:

Name of the Number and Date Validity Period Purpose

Licensing/ of Registration/License (From) (To)
Registration
Authority
Ministry of KT-57(41)/2006-ALC(C); dated - - Certificate of registration
Labour, Kota December 13, 2006 under Section 7 (3) of
the Building and Other
Construction Workers
(Regulation of
employment and
Condition of Service)
Act, 1996 for
construction of 4/6 lane
access controlled
Chittorgarh By-pass
product.

Ministry of ALCN-I/46/L/17/2008-CL; dated March 3, February 6, License under the

Labour, March 3, 2008 2008 2011 Contract Labour
Nagpur (Regulation and
Abolition) Act, 1970 and
Central Rules, 1971 for
carriageway on
Chhatisgarh/Maharashtra
border.
Employees R/NS/28301 (33/33944/101); dated - - The authority informed
State January 8, 2002 the Company that it fell
Insurance within the purview of the
Corporation Employees’ State
Insurance Act, 1948.
Petroleum & A/P/HQ/MH/15/6575 (P232792); - - Letter from the
Explosives dated June 19, 2009 Organisation noting the
Safety storage of the Company
Organisation, that storage of 40 kilo
Nagpur litre of furnace oil/LDO

387
Name of the Number and Date Validity Period Purpose
Licensing/ of Registration/License (From) (To)
Registration
Authority
and has also intimated
that storage beyond 45
kilo litre will require a
separate license.
Chief 314/13385/grid/2m; dated May 30, May 30, December 31, License for setting up a
Inspector of 2009 2009 2010 concrete mixing plant
Factories, employing not more than
Government of 20 employees and
Madhya having installed motive
Pradesh power not exceeding 250
horse powers.
Chief 160/13302/MDR/2MUD; dated April April 16, December 31, License for setting up a
Inspector of 16, 2009 2009 2011 concrete crusher
Factories, employing not more than
Government of 50 employees and
Madhya having installed motive
Pradesh power not exceeding
2000 HP.
Office of 14/09/00834; dated February 19, April 1, Valid till the Registration certificate
Labour 2009 2008 completion of of the Company as per
Commissioner, the project. Building and Other
Mandsore Construction Workers
Act, 1996 in relation to
Jaora Nayagaon Road
Project, Mandsore.
Office of the DII/2180; dated June 16, 1998 June 16, December 24, Registration certificate
Inspector 1998 2010 of establishment under
under the the Shops and
Bombay Shops Establishments Act,
and 1948 for construction
Establishments company office.
Act, 1948
Office of the GUL/II/3458; dated April 28, 1999 April 28, December 31, Registration certificate
Inspector 1999 2010 of establishment under
under the the Shops and
Bombay Shops Establishments Act,
and 1948 for civil
Establishments construction.
Act, 1948
Office of the Chinchwad/II/25357; dated October October 1, December 31, Registration certificate
Inspector 1, 2007 2007 2010 of establishment under
under the the Shops and
Bombay Shops Establishments Act,
and 1948 for ready mix
Establishments concrete plant and
Act, 1948 office.
Maharashtra ROM/CC-765; dated February 25, February January 31, Consent under section
Pollution 2010 25, 2010 2012 26 of the Water
Control Board (Prevention & Control of
Pollution) Act, 1974 and
section 21 of the Air

388
Name of the Number and Date Validity Period Purpose
Licensing/ of Registration/License (From) (To)
Registration
Authority
(Prevention & Control of
Pollution) Act, 1981.
Mumbai BS/Vabhag/Tajava/Pollution/471/09; - - Temporary permission
Metropolitan dated May 19, 2009 for restarting the RCM
Region Plant, Phase III, Wadala
Development with direction to obtain
Authority approval from
Maharashta Pollution
Control Board. The
approval of Maharashta
Pollution Control Board
has been obtained.
Office of the RP-54(142)/2009; dated September September September 13, License under section
Regional 14, 2009 14, 2009 2011 12(1) of the Contract
Labour Labour (Regulation and
Commissioner Abolition) Act, 1970 for
doing the work of NH-6
Highway 4 laning and its
improvement.
Ministry of RP-57(01)/2009; dated February 11, - - Certificate of registration
Labour and 2009 under section 3(7) of the
Employment Building and Other
Construction Workers
(Regulation of
Employment &
Conditions of Services)
Act, 1996 for works at
Chattisgarh/Maharashtra
Border from Durg
Bypass.
Regional 461/RO/TS/CECB/2008; dated July September August 31, Renewal of consent
Office, 2, 2008 1, 2008 2011 under sections 25 and 26
Environment of Water (Prevention
Conservation and control of pollution)
Board Act, 1974 valid for
production of
bituminous hot mix and
stone chips.
Regional 462/RO/TS/CECB/2008; dated July September August 31, Renewal of consent
Office, 2, 2008 1, 2008 2011 under section 21 of Air
Environment (Prevention and Control
Conservation of Pollution) Act, 1974
Board valid for production of
bituminous hot mix and
stone chips.
Regional 463/RO/TS/CECB/2008; dated July July 1, June 30, 2011 Renewal of consent
Office, 2, 2008 2008 under section 25/26 of
Environment Water (Prevention and
Conservation Control of Pollution)
Board Act, 1974 valid for
production of

389
Name of the Number and Date Validity Period Purpose
Licensing/ of Registration/License (From) (To)
Registration
Authority
bituminous hot mix and
stone chips
Profession 1/5/9/3739; dated October 26, 2007 - - Certificate of registration
Officer, under section 5(1) of the
Nashik Maharashtra State Tax
on Professions, Trades,
Callings and
Employments Act, 1975
Office of the MH/50403/PF/APP/SRO/MSK/3577; - - The Company was
Assistant dated May 5, 1993 informed that their
Provident factory was covered
Fund under the purview of the
Commissioner Employees Provident
Funds and
Miscellaneous
Provisions Act, 1952
w.e.f March 1, 1993.
Employees MH/PF/NGP/66363/Circle-II/228; - - The Company was
Provident dated June 9, 2008 informed that the EPF &
Fund MP Act, 1952 will be
Organisation applicable for Ashoka
Highway (Bhandara)
Ltd.
Maharashtra NRO/Gondia/E-17 of 2008/2- April 30, September 30, Consent under section
Pollution CC/21/2009; dated April 30, 2009 2009 2010 26 of the Water
Control Board (Prevention & Control of
Pollution) Act, 1974 and
section 21 of the Air
(Prevention & Control of
Pollution) Act, 1981 for
construction of ready
mix concrete of 11,000
MT/month and precast
RCC arches of 10,000
MT/month for works at
Sadak, Gondia.
Maharashtra NRO/Gondia/E-25 of 1998/04- December - An application dated
Pollution CC/70/2008; dated May 20, 2009 31, 2009 November 9, 2009 for
Control Board consent under section 26
of the Water (Prevention
& Control of Pollution)
Act, 1974 and section 21
of the Air (Prevention &
Control of Pollution)
Act, 1981 for
manufacture of gitti at
14,400 MT/month for
works at Deori, Gondia.
Maharashtra NRO/Bhandara/E-17 of 2008/02- April 30, January Consent under section
Pollution CC/22/2009; dated April 30, 2009 2009 31, 2011 26 of the Water
Control Board (Prevention & Control of

390
Name of the Number and Date Validity Period Purpose
Licensing/ of Registration/License (From) (To)
Registration
Authority
Pollution) Act, 1974 and
section 21 of the Air
(Prevention & Control of
Pollution) Act, 1981 for
manufacture of stone
aggregate of various size
at 20,000 MT/month for
works at Lakhani,
Bhandara.
Maharashtra NRO/Gondia/E-17 of 2008/1- April 13, September 30, Consent under section
Pollution CC/04/2009; dated April 13, 2009 2009 2010 26 of the Water
Control Board (Prevention & Control of
Pollution) Act, 1974 and
section 21 of the Air
(Prevention & Control of
Pollution) Act, 1981 for
manufacture of wet mix
macadam & bitumen hot
mix at 20,000
MT/month for works at
Deori, Gondia.
Maharashtra NRO/Gondia/E-25 of 1998/1- October September 30, Consent under section
Pollution CC/04/2009; dated April 30, 2009 14, 2008 2010 26 of the Water
Control Board (Prevention & Control of
Pollution) Act, 1974 and
section 21 of the Air
(Prevention & Control of
Pollution) Act, 1981 for
manufacture of wet mix
macadam & bitumen hot
mix at 20,000
MT/month for works at
Deori, Gondia.
Ministry of ALCN-I/42(R)/11/2008-BOCW; February Valid till the Certificate granted under
Labour dated February 7, 2008 7, 2008 completion of Section 7(3) of the
the project. Building & Other
Construction Workers
(Regulation of
Employment &
Conditions of Service)
Act, 1996 for works at
Wainganga bridge
Section II Gondia to
Bhandara on NH-6.
Forest & 6-CHC044/2008-BHO/1594; dated - - Clearance for four lane
Welfare June 26, 2009 road construction on
Culture 22.963 hector forest land
Department, situated in Rajnandagaon
Government of and Kherwadi District.
Chattisgarh
Directorate of Dish/LIC/2025/2007 - - The Authority has
Industrial certified that the

391
 Name of the Number and Date Validity Period Purpose
Licensing/ of Registration/License (From) (To)
Registration
Authority
Safety & Company has applied for
Health, registration and grant of
Mumbai license under the
Factories Act, 1948 for
the year 2007.
Industrial Dated November 18, 2008 - - Application for renewal
Health and of license for the factory
Safety, for the year ending
Mumbai December 31, 2009.

Office of 330/MDS/2008; dated August 29, January December 31, Permission under the
Commissioner 2008 12, 2009 2010 rules and regulations of
of Labour, the Contract Labour
Mandsore (Regulation and
Abolition) Act, 1970.

Office of 223/Mining/D/2008; dated January January January 20, Approval under the
Collector 21, 2008 21, 2008 2013 Mining Act, 1996 for
(Mining carrying out mining
Division), activities of 2.7 hectare
Neemach stone crusher at Arniya
Mangir, Survey No. 259,
Neemach.

Industrial Design/37/06/SDJ/3502/06; dated December - Application dated March

Safety & July 3, 2009 31, 2009 26, 2010 has been made
Health, for renewal of license
Mumbai under the Factories Act,
1948 for factory at
Wadala Truck Terminal.
Food and MH-595; dated March 7, 2009 March 13, February 11, Inspection Report for
Consumers 2009 2011 certification under
Section, Weight and Measures
Government of Act, 1985 for Bhagi
Maharashtra Deori Project.

Food and MH-597; dated March 30, 2009 March 30, March 17, Inspection Report for
Consumers 2009 2011 certification under
Section, Weight and Measures
Government of Act, 1985 for Ready Mix
Maharashtra Concrete Plant, Wadala.

Trade Mark 1607022; dated October 1, 2007 - - Application for

Registry, registration of “Ashoka”
Government of logo as a trade mark in
India relation to concrete.
Trade Mark 1607021; dated October 1, 2010 October 1, - Registration of
Registry, 2010 “Ashoka” logo as a
Government of trademark in respect of
India roads, bridges and

392
Name of the Number and Date Validity Period Purpose
Licensing/ of Registration/License (From) (To)
Registration
Authority
building construction.
Maharashtra RONK/Nashik/Cen/174/1927 December November 8, Grant of consent under
Pollution 8, 2009 2013 section 21 of the Air
Control Board, (Prevention & Control of
Nashik Pollution) Act, 1981 for
the factory at
Pimpalgaon,
for Crusher, HMP,
WMM, RMC & EP
plant.
Maharashtra MPCB/RON/CON/107/1173 March 26, January 31, Grant of consent under
Pollution 2010 2014 section 21 of the Air
Control Board, (Prevention & Control of
Nashik Pollution) Act, 1981 for
the factory at
Pimprysayyed ,
for Crusher, HMP,
WMM, RMC & EP
plant.
Office of 945/Mining/2009; dated October 23, October October 23, Approval under the
Collector 2009 23, 2009 2012 Mining Act, 1996 for
(Mining carrying out mining
Division), activities.
Nashik
Office of 944/Mining/2009; dated October 23, October October 23, Approval under the
Collector 2009 23, 2009 2012 Mining Act, 1996 for
(Mining carrying out mining
Division), activities.
Nashik
Office of 946/Mining/2009; dated October 23, October October 23, Approval under the
Collector 2009 23, 2009 2012 Mining Act, 1996 for
(Mining carrying out mining
Division), activities.
Nashik
Office of 940/Mining/2009; dated October 23, October December 23, Approval under the
Collector 2009 23, 2009 2012 Mining Act, 1996 for
(Mining carrying out mining
Division), activities.
Nashik
Office of 941/Mining/2009; dated October 23, October December 23, Approval under the
Collector 2009 23, 2009 2012 Mining Act, 1996 for
(Mining carrying out mining
Division), activities.
Nashik
Office of 942/Mining/2009; dated October 23, October December 23, Approval under the
Collector 2009 23, 2009 2012 Mining Act, 1996 for
(Mining carrying out mining
Division), activities.
Nashik
Office of 943/Mining/2009; dated October 23, October December 23, Approval under the
Collector 2009 23, 2009 2012 Mining Act, 1996 for

393
 Name of the Number and Date Validity Period Purpose
Licensing/ of Registration/License (From) (To)
Registration
Authority
(Mining carrying out mining
Division), activities.
Nashik
Office of 947/Mining/2009; dated October 23, October December 23, Approval under the
Collector 2009 23, 2009 2012 Mining Act, 1996 for
(Mining carrying out mining
Division), activities.
Nashik
Kalyan ABL/TECH/KDMC/2008/412; dated - - Application for
Dombivali June 10, 2008 approcval of the design
Municipal of the proposed
Corporation commercial
development on
Reservation Site No. 24
on Rukminibai Hospital
premises
Kalyan ABL/TECH/KDMC/2008/413; dated - - Application for
Dombivali June 10, 2008 approcval of the design
Municipal of the proposed
Corporation commercial
development on
Reservation Site No. 24
on Adharwadi site
Office of the Application submitted for Shahada - - License under section
Regional dated 24 May 2010 and Dharangaon, 12(1) of the Contract
Labour Dondaicha dated 28 June 2010 Labour (Regulation and
Commissioner Abolition) Act, 1970 for
doing the work of
substations at Shahada,
Dharangaon and
Dondaicha.
Ministry of NED/775 dated 20 April 2010 April 20, December 31, License under section
Labour and 2010 2010 12(1) of the Contract
Employment Labour (Regulation and
Abolition) Act, 1970 for
doing the work of
substations at Parbhani

Ministry of NED/776 dated 20 April 2010 April 20, December 31, License under section
Labour and 2010 2010 12(1) of the Contract
Employment Labour (Regulation and
Abolition) Act, 1970 for
doing the work of
substations at Hingoli.

Ministry of ALC-C(II)43(15/BOCW)2010 dated May 3, Valid till License under section 7

Labour and 3 May 2010 2010 completion of of the Building and
Employment the project Other Construction
Workers (Regulation and
Abolition) Act, 1996 for
Pimpalgaon – Nashik –

394
Name of the Number and Date Validity Period Purpose
Licensing/ of Registration/License (From) (To)
Registration
Authority
Gonde Project.

Industrial 18017/18017/G-O/RAJ/2m (i)/594 May 25, December 31, License renewal under
Safety & dated 25 May 2010 2010 2010 the Factories Act, 1948
Health, for factory at
Rajnandgaon Rajnandgaon.

Industrial 18017/18017/G-O/RAJ/2m (i)/595 May 25, December 31, License renewal under
Safety & dated 25 May 2010 2010 2010 the Factories Act, 1948
Health, for factory at
Rajnandgaon Rajnandgaon.

Chhattisgarh 798/RO/TS/CECB/2010 June 30, 12 months

Grant of consent under
Environment 2010 from the first
section 21 of the Air
Conservation date of the
(Prevention & Control of
Board month of
Pollution) Act, 1981 for
commencement
production of 10,000 ton
of production
per annum of crumbed
rubber modified
bitumen.
Chhattisgarh 797/RO/TS/CECB/2010 June 30, 12 months Grant of consent under
Environment 2010 from the first section 25/ 26 of the
Conservation date of the Water (Prevention and
Board month of Control of Pollution)
commencement Act, 1974 for production
of production of 10,000 ton per annum
of crumbed rubber
modified bitumen.
Chhattisgarh 870/RO/TS/CECB/2010 June 30, 12 months Grant of consent to
Environment 2010 from the first discharge effluent into
Conservation date of the the natural water courses
Board month of under the Water
commencement (Prevention and Control
of production of Pollution) Act, 1974
for production of 10,000
ton per annum of
crumbed rubber
modified bitumen.
Food Supply 576/0206224 and 576/0206225 dated February February 10, Inspection reports issued
Department, February 10, 2010 10, 2010 2011 under the Weight and
Government of Measures Act, 1985 and
Maharashtra the Maharashtra Weight
and Measure Act, 1987
for the machines used
PNG Project at Bhagur
section.

395
 OTHER REGULATORY AND STATUTORY DISCLOSURES-

Authority for the Issue

The issue of Equity Shares in the Issue by the Company has been (i) authorized by the resolution of the
Board of Directors passed at their meeting held on September 7, 2009 and August 14, 2010, subject to the
approval of shareholders through a special resolution to be passed pursuant to section 81 (1A) of the
Companies Act.

The shareholders have authorised the Issue by a special resolution in accordance with Section 81(1A) of the
Companies Act, passed at the Extra-Ordinary General Meeting of the Company held on September 7, 2009
and August 30, 2010, at Mumbai.

The Company had filed an application dated September 24, 2009 to the RBI seeking confirmation that FIIs
are permitted to subscribe to Equity Shares in the Issue under the portfolio investment scheme and that
Press Note 2 (2005 Series) is not applicable to investments by FIIs in initial public offerings. RBI through
letter (no. FE.CO.FID.12135/10.02.000/2009-10) dated November 6, 2009 has advised that the FIIs may
participate in the Issue under the portfolio investment scheme in terms of para 1(5) of Schedule 2 of
notification no. FEMA 20/2000 dated May 3, 2000.

Prohibition by SEBI

The Company, Promoters, Directors, Promoter Group entities and Group Companies, have not been
prohibited from accessing or operating in capital markets under any order or direction passed by SEBI.

The companies, with which Promoters, Directors or persons in control of the Company are associated as
promoters, directors or persons in control have not been prohibited from accessing or operating in capital
markets under any order or direction passed by SEBI.

None of the Directors are associated with any entities, which are engaged in securities market related
business and are registered with SEBI for the same.

Prohibition by RBI

Neither the Company, Promoters, the relatives of Promoters (as defined under the Companies Act) and
group companies have been been identified as wilful defaulters by the RBI or any other governmental
authority. There are no violations of securities laws committed by them in the past or are pending against
them.

Eligibility for the Issue

The Company is eligible for the Issue in accordance with Regulation 26(1) of the SEBI Regulations as
explained under the eligibility criteria calculated in accordance with financial statements under Indian
GAAP:

x The Company has net tangible assets of at least Rs. 30.00 million in each of the preceding three
full years (of 12 months each), of which not more than 50% are held in monetary assets;

x The Company has a track record of distributable profits in accordance with Section 205 of the
Companies Act, for at least three out of the immediately preceding five years;

x The Company has a net worth of at least Rs. 10 million in each of the three preceding full years
(of 12 months each);

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x The aggregate of the proposed Issue and all previous issues made in the same financial years in
terms of the issue size is not expected to exceed five times the pre-Issue net worth of the Company
; and

x The Company has not changed its name in the last fiscal year.

The Company’s net profit, dividend, net worth, net tangible assets and monetary assets derived from the
Auditor’s Report included in this Prospectus as at, and for the last five years ended Fiscal 2009 are set forth
below:

(In Rs. millions)

Particulars Fiscal 2010 Fiscal 2009 Fiscal 2008 Fiscal 2007 Fiscal 2006
Distributable Profits(1) 756.92 478.03 220.49 147.38 85.89
Net Worth(2) 3,882.78 3,149.42 2,724.77 2,549.86 1,424.62
(3)
Net Tangible assets 3,923.86 3,181.25 2,762.31 2,737.79 1,855.12
(4)
Monetary assets 587.44 479.07 525.06 1,050.32 448.63
Monetary assets as a 14.97% 15.06% 19.01% 38.36% 24.18%
percentage of the net
tangible assets
(1)
‘Distributable profits’ have been defined in terms of Section 205 of the Companies Act.
(2)
‘Net worth’ has been defined as the aggregate of equity share capital and reserves, excluding preference share redemption reserve
and miscellaneous expenditures, if any.
(3)
‘Net tangible assets’ means the sum of all net assets of the Company excluding intangible assets as defined in Accounting Standard
26 issued by Institute of Chartered Accountants of India.
(4)
Monetary assets comprise of cash and bank balances and public deposit accounts with the Government.

Further, we shall ensure that the number of prospective allottees to whom the Equity Shares will be allotted
shall not be less than 1,000; otherwise the entire application money will be refunded forthwith. In case of
delay, if any, in refund the Company shall pay interest on the application money at the rate of 15% per
annum for the period of delay.

Further, the Issue is subject to the fulfillment of the following conditions as required by the first proviso to
Rule 19(2)(b)(ii) of SCRR as amended:

x A minimum 2,000,000 Equity Shares (excluding reservations, firm Allotments and promoters
contribution) are offered to the public;
x The Net Issue size, which is the Issue Price multiplied by the number of Equity Shares offered to
the public, is a minimum of Rs. 1,000 million; and
x The Issue is made through the Book Building method with 60% of the Net Issue size allocated to
QIBs as specified by SEBI

DISCLAIMER CLAUSE OF SEBI

AS REQUIRED, A COPY OF THE DRAFT RED HERRING PROSPECTUS HAS BEEN

SUBMITTED TO SEBI. IT IS TO BE DISTINCTLY UNDERSTOOD THAT SUBMISSION OF
THE DRAFT RED HERRING PROSPECTUS TO SEBI SHOULD NOT, IN ANY WAY, BE
DEEMED OR CONSTRUED THAT THE SAME HAS BEEN CLEARED OR APPROVED BY
SEBI. SEBI DOES NOT TAKE ANY RESPONSIBILITY EITHER FOR THE FINANCIAL
SOUNDNESS OF ANY SCHEME OR THE PROJECT FOR WHICH THE ISSUE IS PROPOSED
TO BE MADE OR FOR THE CORRECTNESS OF THE STATEMENTS MADE OR OPINIONS
EXPRESSED IN THE DRAFT RED HERRING PROSPECTUS. THE BOOK RUNNING LEAD
MANAGERS AND THE CO-BOOK RUNNING LEAD MANAGER HAVE CERTIFIED THAT
THE DISCLOSURES MADE IN THE DRAFT RED HERRING PROSPECTUS ARE
GENERALLY ADEQUATE AND ARE IN CONFORMITY WITH SEBI (ISSUE OF CAPITAL
AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2009 IN FORCE FOR THE TIME

397
BEING. THIS REQUIREMENT IS TO FACILITATE INVESTORS TO TAKE AN INFORMED
DECISION FOR MAKING AN INVESTMENT IN THE PROPOSED ISSUE.

IT SHOULD ALSO BE CLEARLY UNDERSTOOD THAT WHILE THE COMPANY IS

PRIMARILY RESPONSIBLE FOR THE CORRECTNESS, ADEQUACY AND DISCLOSURE OF
ALL RELEVANT INFORMATION IN THE DRAFT RED HERRING PROSPECTUS, THE BOOK
RUNNING LEAD MANAGERS AND THE CO-BOOK RUNNING LEAD MANAGER ARE
EXPECTED TO EXERCISE DUE DILIGENCE TO ENSURE THAT THE COMPANY
DISCHARGES ITS RESPONSIBILITY ADEQUATELY IN THIS BEHALF AND TOWARDS
THIS PURPOSE, THE BOOK RUNNING LEAD MANAGERS AND THE CO-BOOK RUNNING
LEAD MANAGER, HAVE FURNISHED TO SEBI, A DUE DILIGENCE CERTIFICATES DATED
SEPTEMBER 22, 2009 AND APRIL 8, 2010 WHICH READS AS FOLLOWS:

WE, THE LEAD MERCHANT BANKER(S) TO THE ABOVE MENTIONED FORTHCOMING

ISSUE, STATE AND CONFIRM AS FOLLOWS:

1. WE HAVE EXAMINED VARIOUS DOCUMENTS INCLUDING THOSE RELATING TO

LITIGATION LIKE COMMERCIAL DISPUTES, PATENT DISPUTES, DISPUTES WITH
COLLABORATORS, ETC. AND OTHER MATERIAL IN CONNECTION WITH THE
FINALISATION OF THE DRAFT RED HERRING PROSPECTUS PERTAINING TO THE
SAID ISSUE;

2. ON THE BASIS OF SUCH EXAMINATION AND THE DISCUSSIONS WITH THE ISSUER,
ITS DIRECTORS AND OTHER OFFICERS, OTHER AGENCIES, AND INDEPENDENT
VERIFICATION OF THE STATEMENTS CONCERNING THE OBJECTS OF THE ISSUE,
PRICE JUSTIFICATION AND THE CONTENTS OF THE DOCUMENTS AND OTHER
PAPERS FURNISHED BY THE ISSUER, WE CONFIRM THAT:

(A) THE DRAFT RED HERRING PROSPECTUS FILED WITH THE SECURITIES
AND EXCHANGE BOARD OF INDIA (“SEBI”) IS IN CONFORMITY WITH THE
DOCUMENTS, MATERIALS AND PAPERS RELEVANT TO THE ISSUE;

(B) ALL THE LEGAL REQUIREMENTS RELATING TO THE ISSUE AS ALSO THE
REGULATIONS GUIDELINES, INSTRUCTIONS, ETC. FRAMED/ISSUED BY
THE BOARD, THE CENTRAL GOVERNMENT AND ANY OTHER COMPETENT
AUTHORITY IN THIS BEHALF HAVE BEEN DULY COMPLIED WITH; AND

(C) THE DISCLOSURES MADE IN THE DRAFT RED HERRING PROSPECTUS ARE
TRUE, FAIR AND ADEQUATE TO ENABLE THE INVESTORS TO MAKE A
WELL INFORMED DECISION AS TO THE INVESTMENT IN THE PROPOSED
ISSUE AND SUCH DISCLOSURES ARE IN ACCORDANCE WITH THE
REQUIREMENTS OF THE COMPANIES ACT, 1956, THE SECURITIES AND
EXCHANGE BOARD OF INDIA (ISSUE OF CAPITAL AND DISCLOSURE
REQUIREMENTS) REGULATIONS, 2009 (“SEBI REGULATIONS”) AND
OTHER APPLICABLE LEGAL REQUIREMENTS.

3. WE CONFIRM THAT BESIDES OURSELVES, ALL THE INTERMEDIARIES NAMED IN

THE DRAFT RED HERRING PROSPECTUS ARE REGISTERED WITH SEBI AND THAT
TILL DATE SUCH REGISTRATION IS VALID.

4. WE HAVE SATISFIED OURSELVES ABOUT THE CAPABILITY OF THE

UNDERWRITERS TO FULFIL THEIR UNDERWRITING COMMITMENTS.

5. WE CERTIFY THAT WRITTEN CONSENT FROM PROMOTERS HAS BEEN OBTAINED

FOR INCLUSION OF THEIR SPECIFIED SECURITIES AS PART OF PROMOTERS’
CONTRIBUTION SUBJECT TO LOCK-IN AND THE SPECIFIED SECURITIES

398
 PROPOSED TO FORM PART OF PROMOTERS’ CONTRIBUTION SUBJECT TO LOCK-
IN SHALL NOT BE DISPOSED / SOLD / TRANSFERRED BY THE PROMOTERS
DURING THE PERIOD STARTING FROM THE DATE OF FILING THE DRAFT RED
HERRING PROSPECTUS WITH THE SEBI TILL THE DATE OF COMMENCEMENT OF
LOCK-IN PERIOD AS STATED IN THE DRAFT RED HERRING PROSPECTUS.

6. WE CERTIFY THAT REGULATION 33 OF THE SECURITIES AND EXCHANGE BOARD

OF INDIA (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) REGULATIONS,
2009, WHICH RELATES TO SPECIFIED SECURITIES INELIGIBLE FOR
COMPUTATION OF PROMOTERS CONTRIBUTION, HAS BEEN DULY COMPLIED
WITH AND APPROPRIATE DISCLOSURES AS TO COMPLIANCE WITH THE SAID
REGULATION HAVE BEEN MADE IN THE DRAFT RED HERRING PROSPECTUS.

7. WE UNDERTAKE THAT SUB-REGULATION (4) OF REGULATION 32 AND CLAUSE (C)

AND (D) OF SUB-REGULATION (2) OF REGULATION 8 OF THE SEBI REGULATIONS
SHALL BE COMPLIED WITH. WE CONFIRM THAT ARRANGEMENTS HAVE BEEN
MADE TO ENSURE THAT PROMOTERS’ CONTRIBUTION SHALL BE RECEIVED AT
LEAST ONE DAY BEFORE THE OPENING OF THE ISSUE. WE UNDERTAKE THAT
AUDITORS’ CERTIFICATE TO THIS EFFECT SHALL BE DULY SUBMITTED TO THE
BOARD. WE FURTHER CONFIRM THAT ARRANGEMENTS HAVE BEEN MADE TO
ENSURE THAT PROMOTERS’ CONTRIBUTION SHALL BE KEPT IN AN ESCROW
ACCOUNT WITH A SCHEDULED COMMERCIAL BANK AND SHALL BE RELEASED
TO THE ISSUER ALONG WITH THE PROCEEDS OF THE PUBLIC ISSUE. NOT
APPLICABLE.

8. WE CERTIFY THAT THE PROPOSED ACTIVITIES OF THE ISSUER FOR WHICH THE
FUNDS ARE BEING RAISED IN THE PRESENT ISSUE FALL WITHIN THE ‘MAIN
OBJECTS’ LISTED IN THE OBJECT CLAUSE OF THE MEMORANDUM OF
ASSOCIATION OR OTHER CHARTER OF THE ISSUER AND THAT THE ACTIVITIES
WHICH HAVE BEEN CARRIED OUT UNTIL NOW ARE VALID IN TERMS OF THE
OBJECT CLAUSE OF ITS MEMORANDUM OF ASSOCIATION.

9. WE CONFIRM THAT NECESSARY ARRANGEMENTS HAVE BEEN MADE TO ENSURE

THAT THE MONEYS RECEIVED PURSUANT TO THE ISSUE ARE KEPT IN A
SEPARATE BANK ACCOUNT AS PER THE PROVISIONS OF SUB-SECTION (3) OF
SECTION 73 OF THE COMPANIES ACT, 1956 AND THAT SUCH MONEYS SHALL BE
RELEASED BY THE SAID BANK ONLY AFTER PERMISSION IS OBTAINED FROM
ALL THE STOCK EXCHANGES MENTIONED IN THE PROSPECTUS. WE FURTHER
CONFIRM THAT THE AGREEMENT ENTERED INTO BETWEEN THE BANKERS TO
THE ISSUE AND THE ISSUER SPECIFICALLY CONTAINS THIS CONDITION. NOTED
FOR COMPLIANCE.

10. WE CERTIFY THAT A DISCLOSURE HAS BEEN MADE IN THE DRAFT RED
HERRING PROSPECTUS THAT THE INVESTORS SHALL BE GIVEN AN OPTION TO
GET THE SHARES IN DEMAT OR PHYSICAL MODE. NOT APPLICABLE.

AS THE OFFER SIZE IS MORE THAN RS. 10 CRORES, HENCE UNDER SECTION 68B
OF THE COMPANIES ACT, 1956, THE EQUITY SHARES ARE TO BE ISSUED IN
DEMAT ONLY.

11. WE CERTIFY THAT ALL THE APPLICABLE DISCLOSURES MANDATED IN THE

SECURITIES AND EXCHANGE BOARD OF INDIA (ISSUE OF CAPITAL AND
DISCLOSURE REQUIREMENTS) REGULATIONS, 2009 HAVE BEEN MADE IN
ADDITION TO DISCLOSURES WHICH, IN OUR VIEW, ARE FAIR AND ADEQUATE TO
ENABLE THE INVESTOR TO MAKE A WELL INFORMED DECISION.

399
12. WE CERTIFY THAT THE FOLLOWING DISCLOSURES HAVE BEEN MADE IN THE
DRAFT RED HERRING PROSPECTUS:

(A) AN UNDERTAKING FROM THE ISSUER THAT AT ANY GIVEN TIME,

THERE SHALL BE ONLY ONE DENOMINATION FOR THE EQUITY SHARES
OF THE ISSUER AND

(B) AN UNDERTAKING FROM THE ISSUER THAT IT SHALL COMPLY WITH

SUCH DISCLOSURE AND ACCOUNTING NORMS SPECIFIED BY THE
BOARD FROM TIME TO TIME.

13. WE UNDERTAKE TO COMPLY WITH THE REGULATIONS PERTAINING TO

ADVERTISEMENT IN TERMS OF THE SEBI REGULATIONS WHILE MAKING THE
ISSUE.

14. WE ENCLOSE A NOTE EXPLAINING HOW THE PROCESS OF DUE DILIGENCE HAS
BEEN EXERCISED BY US IN VIEW OF THE NATURE OF CURRENT BUSINESS
BACKGROUND OR THE ISSUER, SITUATION AT WHICH THE PROPOSED BUSINESS
STANDS, THE RISK FACTORS, PROMOTERS EXPERIENCE, ETC.

15. WE ENCLOSE A CHECKLIST CONFIRMING REGULATION-WISE COMPLIANCE

WITH THE APPLICABLE PROVISIONS OF THE SEBI REGULATIONS CONTAINING
DETAILS SUCH AS THE REGULATION NUMBER, ITS TEXT, THE STATUS OF
COMPLIANCE, PAGE NUMBER OF THE DRAFT RED HERRING PROSPECTUS
WHERE THE REGULATION HAS BEEN COMPLIED WITH AND OUR COMMENTS,
IF ANY.

The filing of the Draft Red Herring Prospectus does not, however, absolve the Company from any
liabilities under Section 63 or Section 68 of the Companies Act or from the requirement of obtaining such
statutory and/or other clearances as may be required for the purpose of the proposed Issue. SEBI further
reserves the right to take up at any point of time, with the Book Running Lead Managers and the Co-Book
Running Lead Manager, any irregularities or lapses in the Draft Red Herring Prospectus.

All legal requirements pertaining to the Issue will be complied with at the time of filing of the Red Herring
Prospectus with the Registrar of Companies, Maharashtra in terms of Section 60B of the Companies Act.
All legal requirements pertaining to the Issue will be complied with at the time of registration of the
Prospectus with the Registrar of Companies, Maharashtra in terms of Sections 56, 60 and 60B of the
Companies Act.

Caution - Disclaimer from the Company, the BRLMs and the CBRLM

The Company, the Directors, the BRLMs and the CBRLM accept no responsibility for statements made
otherwise than in this Prospectus or in the advertisements or any other material issued by or at the
Company’s instance and anyone placing reliance on any other source of information, including the
Company’s web site www.ashokabuildcon.com, would be doing so at his or her own risk.

The BRLMs and the CBRLM accept no responsibility, save to the limited extent as provided in the MoU
entered into between the BRLMs, the CBRLM and the Company and the Underwriting Agreement to be
entered into between the Underwriter and the Company.

All information shall be made available by the Company, the BRLMs and the CBRLM to the public and
investors at large and no selective or additional information would be available for a section of the
investors in any manner whatsoever including at road show presentations, in research or sales reports, at
bidding centres or elsewhere.

400
Neither the Company nor the Syndicate is liable for any failure in uploading the Bids due to faults in any
software/hardware system or otherwise.

Investors that bid in the Issue will be required to confirm and will be deemed to have represented to the
Company, the Underwriter and their respective directors, officers, agents, affiliates, and representatives that
they are eligible under all applicable laws, rules, regulations, guidelines and approvals to acquire Equity
Shares of the Company and will not Issue, sell, pledge, or transfer the Equity Shares of the Company to any
person who is not eligible under any applicable laws, rules, regulations, guidelines and approvals to acquire
Equity Shares of the Company. The Company, the Underwriter and their respective directors, officers,
agents, affiliates, and representatives accept no responsibility or liability for advising any investor on
whether such investor is eligible to acquire Equity Shares of the Company.

Disclaimer in respect of Jurisdiction

This Issue is being made in India to persons resident in India (including Indian nationals resident in India
who are not minors, HUFs, companies, corporate bodies and societies registered under the applicable laws
in India and authorised to invest in shares, Indian Mutual Funds registered with SEBI, Indian financial
institutions, commercial banks, regional rural banks, co-operative banks (subject to RBI permission), or
trusts under applicable trust law and who are authorised under their constitution to hold and invest in
shares, permitted insurance companies and pension funds) and to FIIs, eligible NRIs and other eligible
foreign investors. This Prospectus does not, however, constitute an invitation to purchase shares offered
hereby in any jurisdiction other than India to any person to whom it is unlawful to make an offer or
invitation in such jurisdiction. Any person into whose possession this Prospectus comes is required to
inform himself or herself about, and to observe, any such restrictions. Any dispute arising out of this Issue
will be subject to the jurisdiction of appropriate court(s) in Mumbai only.

No action has been, or will be, taken to permit a public offering in any jurisdiction where action would be
required for that purpose, except that this Prospectus has been filed with SEBI for its observations and
SEBI shall give its observations in due course. Accordingly, the Equity Shares represented thereby may not
be offered or sold, directly or indirectly, and this Prospectus may not be distributed, in any jurisdiction,
except in accordance with the legal requirements applicable in such jurisdiction. Neither the delivery of this
Prospectus nor any sale hereunder shall, under any circumstances, create any implication that there has
been no change in the affairs of the Company since the date hereof or that the information contained herein
is correct as of any time subsequent to this date.

The Equity Shares have not been and will not be registered, listed or otherwise qualified in any other
jurisdiction outside India and may not be offered or sold, and Bids may not be made by persons in
any such jurisdiction, except in compliance with the applicable laws of such jurisdiction.

The Equity Shares have not been and will not be registered under the US Securities Act of 1933, as
amended (the “Securities Act”), and may not be offered or sold within the United States (as defined
in Regulation S under the Securities Act) except pursuant to an exemption from, or in a transaction
not subject to, the registration requirements of the Securities Act. The Equity Shares are being
offered and sold only outside the United States in offshore transactions in compliance with
Regulation S under the Securities Act and the applicable laws of the jurisdictions where those offers
and sales occur.

Disclaimer Clause of BSE

BSE has given vide its letter dated November 10, 2009, permission to the Company to use BSE’s name in
this Prospectus as one of the stock exchanges on which the Company’s securities are proposed to be listed.
BSE has scrutinised the Draft Red Herring Prospectus for its limited internal purpose of deciding on the
matter of granting the aforesaid permission to the Company. BSE does not in any manner:

401
i. warrant, certify or endorse the correctness or completeness of any of the contents of the Draft Red
Herring Prospectus; or

ii. warrant that the Company’s securities will be listed or will continue to be listed on BSE; or

iii. take any responsibility for the financial or other soundness of the Company, its promoters, its
management or any scheme or project of the Company;

and it should not for any reason be deemed or construed to mean that the Draft Red Herring Prospectus has
been cleared or approved by BSE. Every Person who desires to apply for or otherwise acquires any
securities of the Company may do so pursuant to independent inquiry, investigation and analysis and shall
not have any claim against BSE whatsoever by reason of any loss which may be suffered by such person
consequent to or in connection with such subscription/ acquisition whether by reason of anything stated or
omitted to be stated herein or for any other reason whatsoever.

Disclaimer Clause of the NSE

As required, a copy of the Draft Red Herring Prospectus had been submitted to NSE. NSE has given vide
its letter ref.: NSE/LIST/125590-V dated December 11, 2009 permission to the Company to use NSE’s
name in this Prospectus as one of the stock exchanges on which the Company’s securities are proposed to
be listed. NSE has scrutinised the Draft Red Herring Prospectus for its limited internal purpose of deciding
on the matter of granting the aforesaid permission to the Company. It is to be distinctly understood that the
aforesaid permission given by NSE should not in any way be deemed or construed that the Draft Red
Herring Prospectus has been cleared or approved by NSE; nor does it in any manner warrant, certify or
endorse the correctness or completeness of any of the contents of the Draft Red Herring Prospectus; nor
does it warrant that the Company’s securities will be listed or will continue to be listed on the NSE; nor
does it take any responsibility for the financial or other soundness of the Company, its promoters, its
management or any scheme or project of the Company.

Every person who desires to apply for or otherwise acquire any securities of the Company may do so
pursuant to independent inquiry, investigation and analysis and shall not have any claim against the NSE
whatsoever by reason of any loss which may be suffered by such person consequent to or in connection
with such subscription/ acquisition whether by reason of anything stated or omitted to be stated herein or
any other reason whatsoever.

Filing

A copy of the Draft Red Herring Prospectus was filed with the SEBI at Corporation Finance Department,
Plot No.C4-A,’G’ Block, Bandra Kurla Complex, Bandra (East), Mumbai 400051.

A copy of this Prospectus, along with the other documents required to be filed under Section 60B of the
Companies Act, has been delivered for registration with the ROC at the office of the ROC and a copy of the
Prospectus to be filed under Section 60 of the Companies Act would be delivered for registration with ROC
at the Office of the Registrar of Companies, Everest 5th Floor, 100, Marine Drive, Mumbai 400 002.

Listing

Applications have been made to the BSE and NSE for permission to deal in and for an official quotation of
the Equity Shares. The Bombay Stock Exchange will be the Designated Stock Exchange with which the
‘Basis of Allotment’ will be finalised.

If the permissions to deal in and for an official quotation of the Equity Shares are not granted by any of the
Stock Exchanges mentioned above, the Company will forthwith repay, without interest, all moneys
received from the applicants in pursuance of this Prospectus. If such money is not repaid within 8 days after
the Company becomes liable to repay it, i.e. from the date of refusal or within 7 days from the Bid/Issue

402
Closing Date, whichever is earlier, then the Company and every Director of the Company who is an officer
in default shall, on and from such expiry of 8 days, be liable to repay the money, with interest at the rate of
15% p.a. on application money, as prescribed under Section 73 of the Companies Act.

The Company shall ensure that all steps for the completion of the necessary formalities for listing and
commencement of trading at all the Stock Exchanges mentioned above are taken within 12 working days of
finalisation of the Bid/Issue Closing Date.

Consents

Consents in writing of: (a) the Directors, the Company Secretary and Compliance Officer, the auditors, the
legal advisors, the Bankers to the Issue, Bankers to the Company, the IPO grading agency; and (b) the
Book Running Lead Manager and the Co-Book Running Lead Manager, the Syndicate Members, the
Escrow Collection Banks and the Registrar to the Issue to act in their respective capacities, have been
obtained and has been filed along with a copy of this Prospectus with the RoC as required under Sections
60 and 60B of the Companies Act and such consents have not been withdrawn up to the time of delivery of
the Prospectus and will not be withdrawn up to the time of delivery of the Prospectus for registration with
the RoC.

In accordance with the Companies Act and the SEBI Regulations, M.P. Chitale & Co., Chartered
Accountants, the Company’s Statutory Auditors have given their written consent to the inclusion of their
report dated July 3, 2010 and statement of tax benefits dated August 20, 2010 in the form and context in
which it appears in the Prospectus and such consent and report has not been withdrawn up to the time of
delivery of the Red Herring Prospectus for registration with the RoC.

Expert Opinion

Except for the report of CRISIL in respect of the IPO grading of this Issue (a copy of which report has been
annexed to this Prospectus as Appendix ‘A’) and the auditor’s report of M/s. M. P. Chitale & Co (Reg. No.-
101851W), statutory auditor of the Company, the Company has not obtained any expert opinions.

Issue Related Expenses

The expenses of this Issue include, among others, underwriting and management fees, selling commission,
printing and distribution expenses, legal fees, statutory advertisement expenses and listing fees. For further
details of Issue related expenses, please see the section entitled “Objects of the Issue” on page 51 of this
Prospectus.

The listing fee and all expenses with respect to the Issue will be borne by us.

Fees Payable to the Book Running Lead Managers, the Co-Book Running Lead Manager and
Syndicate Members

The total fees payable to the BRLMs, CBRLM and the Syndicate Member (including underwriting
commission and selling commission) will be as stated in the Engagement Letter with the BRLMs and the
CBRLM, a copy of which is available for inspection at the registered office of the Company located at
Survey No. 861, Ashoka House, Ashoka Marg, Vadala, Nashik, Maharashtra - 422 011 from 10.00 a.m. to
04.00 p.m. on working days from the date of the Red Herring Prospectus until the Bid/Issue Closing Date.

Fees Payable to the Registrar to the Issue

The fees payable to the Registrar to the Issue for processing of application, data entry, printing of
CAN/refund order, preparation of refund data on magnetic tape, printing of bulk mailing register will be as
per the Memorandum of Understanding signed with the Company, a copy of which is available for
inspection at the registered office of the Company from 10.00 a.m. to 03.00 p.m. on working days from the
date of the Red Herring Prospectus until the Bid/Issue Closing Date.

403
The Registrar to the Issue will be reimbursed for all out-of-pocket expenses including cost of stationery,
postage, stamp duty and communication expenses. Adequate funds will be provided to the Registrar to the
Issue to enable it to send refund orders or allotment advice by registered post/speed post/under certificate of
posting.

Particulars regarding Public or Rights Issues during the Last Five Years

The Company has not made any public or rights issues during the last five years.

Previous issues of Equity Shares otherwise than for cash

Except as stated in the section entitled “Capital Structure” on page 31 of this Prospectus and “History and
Corporate Matters” on page 137 of this Prospectus, the Company has not issued any Equity Shares for
consideration otherwise than for cash.

Commission and Brokerage paid on Previous Issues of the Equity Shares

Since this is the initial public issue of Equity Shares, no sum has been paid or has been payable as
commission or brokerage for subscribing to or procuring or agreeing to procure subscription for any of the
Equity Shares since the Company’s inception.

Previous capital issue during the previous three years by listed group companies, subsidiaries and
associates of the Company

None of the group companies, associates and subsidiaries of the Company is listed on any stock exchange.

Performance vis-à-vis objects in Public/ Rights Issue of the Company and/ or listed group companies,
subsidiaries and associates of the Company

The Company has not undertaken any previous public or rights issue.

None of the group companies, associates and subsidiaries of the Company is listed on any stock exchange.

Outstanding Debentures or Bonds

The Company does not have any outstanding debentures or bonds as of the date of filing this Prospectus.

Outstanding Preference Shares

The Company does not have any outstanding preference shares other than those mentioned in the section
entitled “Capital Structure” on page 31 in this Prospectus.

Stock Market Data of our Equity Shares

This being an initial public issue of the Company, the Equity Shares are not listed on any stock exchange.

Mechanism for Redressal of Investor Grievances

The Memorandum of Understanding between the Registrar to the Issue, and the Company will provide for
retention of records with the Registrar to the Issue for a period of at least six months from the last date of
dispatch of letters of allotment, demat credit, refund orders to enable the investors to approach the Registrar
to the Issue for redressal of their grievances.

All grievances relating to the Issue may be addressed to the Registrar to the Issue, giving full details such
as name, address of the applicant, application number, number of Equity Shares applied for, amount paid

404
on application, Depository Participant, and the bank branch or collection centre where the application was
submitted.

All grievances relating to the ASBA process may be addressed to the SCSB, giving full details such as
name, address of the applicant, application number, number of Equity Shares applied for, amount paid on
application and the Designated Branch or the collection centre of the SCSB where the ASBA Bid cum
Application Form was submitted by the ASBA Bidders.

Disposal of Investor Grievances by the Company

The Company estimates that the average time required by the Company or the Registrar to the Issue or the
SCSB in case of ASBA Bidders for the redressal of routine investor grievances shall be ten working days
from the date of receipt of the complaint. In case of non-routine complaints and complaints where external
agencies are involved, the Company will seek to redress these complaints as expeditiously as possible.

The Company has appointed Manoj Kulkarni, Company Secretary as the Compliance Officer and he may
be contacted in case of any pre-Issue or post-Issue-related problems. He can be contacted at the following
address:

Ashoka Buildcon Limited

Survey No. 861, Ashoka House
Ashoka Marg, Vadala
Nashik, Maharashtra - 422 011
Tel No: (91 253) 3011943
Fax: (91 253) 2422704
Email: investors@ashokabuildcon.com

Changes in Auditors in last three years

The Company has changed its Statutory Auditor in fiscal 2008. The Company had appointed M/s. M.P.
Chitale & Co., Chartered Accountants in place of M/s. Rathi Daga in accordance with terms of the shaer
subscription and shareholder’s Agreement with IDFC PE II.

Capitalisation of Reserves or Profits

Except as disclosed in this Prospectus, we have not capitalised our reserves or profits at any time during the
last five years.

Revaluation of Assets

The Company has not re-valued its assets in the last five years.

405
 TERMS OF THE ISSUE

The Issue shall be subject to the provisions of the Companies Act, the SCRR, the Memorandum and
Articles, the terms of this Prospectus and the Prospectus, Bid cum Application Form, the Revision Form,
the CAN and other terms and conditions as may be incorporated in the Allotment advices and other
documents/ certificates that may be executed in respect of the Issue. The Equity Shares shall also be subject
to laws, guidelines, notifications and regulations relating to the issue of capital and listing of securities
issued from time to time by SEBI, the Government of India, Stock Exchanges, RoC, RBI and/or other
authorities, as in force on the date of the Issue and to the extent applicable.

Ranking of Equity Shares

The Equity Shares being issued shall be subject to the provisions of our Memorandum and Articles of
Association and shall rank pari-passu with the existing Equity Shares of the Company including rights in
respect of dividend. The Allotees in receipt of Allotment of Equity Shares under this Issue will be entitled
to dividends and other corporate benefits, if any, declared by the Company after the date of Allotment. For
further details, please see “Main Provisions of the Articles of Association” on page 447 of this Prospectus.

Mode of Payment of Dividend

The Company shall pay dividends to our shareholders in accordance with the provisions of the Companies
Act.

Face Value and Issue Price

The face value of the Equity Shares is Rs. 10 each and the Issue Price is Rs. 324 per Equity Share. The
Anchor Investor Issue Price is Rs. 324 per Equity Share. At any given point of time there shall be only one
denomination for the Equity Shares, subject to applicable law.

Compliance with SEBI Regulations

The Company shall comply with all disclosure and accounting norms as specified by SEBI from time to
time.

Rights of the Equity Shareholder

Subject to applicable laws, the equity shareholders shall inter alia have the following rights:

x Right to receive dividend, if declared;

x Right to attend general meetings and exercise voting powers, unless prohibited by law;

x Right to vote on a poll either in person or by proxy;

x Right to receive offers for rights shares and be allotted bonus shares, if announced;

x Right to receive surplus on liquidation;

x Right of free transferability; and

x Such other rights, as may be available to a shareholder of a listed public company under the
Companies Act, the terms of the listing agreement executed with the Stock Exchanges, and the
Company’s Memorandum and Articles.

For a detailed description of the main provisions of our Articles relating to voting rights, dividend,

406
forfeiture and lien and/or consolidation/splitting, please refer to the section entitled “Main Provisions of the
Articles of Association” on page 447 of this Prospectus.

Market Lot and Trading Lot

In terms of Section 68B of the Companies Act, the Equity Shares shall be allotted only in dematerialised
form. As per the SEBI Regulations, the trading of our Equity Shares shall only be in dematerialised form.
Since trading of our Equity Shares is in dematerialised form, the tradable lot is one Equity Share. Allotment
in this Issue will be only in electronic form in multiples of one (1) Equity Share subject to a minimum
Allotment of 21 Equity Shares.

The Price Band and the minimum Bid Lot size for the Issue will be decided by the Company in
consultation with the BRLMs and the CBRLM and advertised in all editions of Financial Express in the
English language, all editions of Jansatta in the Hindi language and all edition of Gavakari in the Marathi
language at least two days prior to the Bid/ Issue Opening Date.

Jurisdiction

Exclusive jurisdiction for the purpose of this Issue is with the competent courts/authorities in Mumbai.

Nomination Facility to Investor

In accordance with Section 109A of the Companies Act, the sole or first Bidder, along with other joint
Bidders, may nominate any one person in whom, in the event of the death of sole Bidder or in case of joint
Bidders, death of all the Bidders, as the case may be, the Equity Shares allotted, if any, shall vest. A person,
being a nominee, entitled to the Equity Shares by reason of the death of the original holder(s), shall in
accordance with Section 109A of the Companies Act, be entitled to the same advantages to which he or she
would be entitled if he or she were the registered holder of the Equity Share(s). Where the nominee is a
minor, the holder(s) may make a nomination to appoint, in the prescribed manner, any person to become
entitled to Equity Share(s) in the event of his or her death during the minority. A nomination shall stand
rescinded upon a sale of equity share(s) by the person nominating. A buyer will be entitled to make a fresh
nomination in the manner prescribed. Fresh nomination can be made only on the prescribed form available
on request at the Registered Office/ Corporate Office of the Company or to the Registrar and Transfer
Agents of the Company.

In accordance with Section 109B of the Companies Act, any Person who becomes a nominee by virtue of
Section 109A of the Companies Act, shall upon the production of such evidence as may be required by the
Board, elect either:

x To register himself or herself as the holder of the Equity Shares; or

x To make such transfer of the Equity Shares, as the deceased holder could have made.

Further, the Board may at any time give notice requiring any nominee to choose either to be registered
himself or herself or to transfer the Equity Shares, and if the notice is not complied with within a period of
ninety days, the Board may thereafter withhold payment of all dividends, bonuses or other moneys payable
in respect of the Equity Shares, until the requirements of the notice have been complied with.

Since the Allotment of Equity Shares in the Issue will be made only in dematerialised form, there is no
need to make a separate nomination with the Company. Nominations registered with respective depository
participant of the applicant would prevail. If the investors require changing their nomination, they are
requested to inform their respective depository participant.

407
Minimum Subscription

If the Company does not receive the minimum subscription of 90% of the Issue, including devolvement of
underwriters within 60 days from the Bid/Issue Closing Date, the Company shall forthwith refund the
entire subscription amount received. If there is a delay beyond eight (8) days after the Company becomes
liable to pay the amount, the Company shall pay interest prescribed under Section 73 of the Companies
Act.

If at least 60% of the Net Issue cannot be allocated to QIBs, then the entire application money will be
refunded forthwith.

Further, we shall ensure that the number of prospective allotees to whom Equity Shares will be allotted
shall not be less than 1,000.

The Equity Shares have not been and will not be registered, listed or otherwise qualified in any other
jurisdiction outside India and may not be offered or sold, and Bids may not be made by persons in
any such jurisdiction.

Arrangement for disposal of Odd Lots

There are no arrangements for disposal of odd lots.

Restriction on transfer of shares

Except for lock-in of the pre-Issue Equity Shares and Promoters’ minimum contribution in the Issue as
detailed in the section entitled “Capital Structure” on page 31 of this Prospectus, and except as provided in
our Articles, there are no restrictions on transfers of Equity Shares. There are no restrictions on transfers of
debentures except as provided in our Articles. There are no restrictions on transmission of shares/
debentures and on their consolidation/ splitting except as provided in our Articles. Please see the section
entitled “Main Provisions of our Articles of Association” on page 447 of this Prospectus.

408
 ISSUE STRUCTURE

Issue of 6,944,444 Equity Shares for cash at a price of Rs. 324 per Equity Share (including share premium
of Rs. 314 per Equity Share) aggregating Rs. 2,250 million. The Issue comprises a Net Issue of
2,238,750,000 Equity Shares to the public and a reservation for eligible employees of up to 11,250,000
Equity Shares. The Issue will constitute 13.2% of the post-issue paid-up capital of the Company and the
Net Issue will constitute 13.1% of the post issue paid up capital of the company.

The Issue is being made through the 100% Book Building Process.

QIBs# Non-Institutional Retail Individual Employee

Bidders Bidders Reservation
Portion
No. of Equity At least Not less than Not less than Up to 34,722
Shares* 1,343,250,000 223,875,000 671,625,000 Equity Shares.
Equity Shares Equity Shares Equity Shares
available for available for
allocation or Net allocation or Net
Issue less Issue less
allocation to QIB allocation to QIB
Bidders and Retail Bidders and Non-
Individual Institutional
Bidders. Bidders.
Percentage of Issue At least 60% of Not less than 10% Not less than 30% Up to 0.5% of the
Size available for the Net Issue Size of Net Issue or the of the Net Issue or Issue
Allotment/allocation being allocated. Issue less the Issue less
However, up to allocation to QIB allocation to QIB
5% of the QIB Bidders and Retail Bidders and Non-
Portion (excluding Individual Institutional
the Anchor Bidders. Bidders.
Investor Portion)
shall be available
for allocation
proportionately to
Mutual Funds
only.
Basis of Proportionate as Proportionate Proportionate Proportionate
Allotment/Allocation follows:
if respective (a) 145,104
category is Equity Shares
oversubscribed shall be allocated
on a proportionate
basis to Mutual
Funds; and
(b) 4,000,730
Equity Shares
shall be allotted on
a proportionate
basis to all QIBs
including Mutual
Funds receiving
allocation as per
(a) above.
Minimum Bid Such number of Such number of 21 Equity Shares 21 Equity Shares
Equity Shares Equity Shares
that the Bid that the Bid

409
 QIBs# Non-Institutional Retail Individual Employee
Bidders Bidders Reservation
Portion
Amount exceeds Amount exceeds
Rs. 100,000 and Rs. 100,000 and
in multiples of 21 in multiples of 21
Equity Shares Equity Shares
thereafter. thereafter.
Maximum Bid Such number of Such number of Such number of Such number of
Equity Shares not Equity Shares not Equity Shares Equity Shares
exceeding the Net exceeding the Net whereby the Bid where Bid
Issue, subject to Issue subject to Amount does not Amount does not
applicable limits. applicable limits. exceed Rs. exceed Rs.
100,000. 100,000.
Mode of Allotment Compulsorily in Compulsorily in Compulsorily in Compulsorily in
dematerialised dematerialised dematerialised dematerialised
form. form. form. form.

Bid Lot 21 Equity Shares 21 Equity Shares 21 Equity Shares 21 Equity Shares
and in multiples of and in multiples of and in multiples of and in multiples of
21 Equity Shares 21 Equity Shares 21 Equity Shares 21 Equity Shares
thereafter. thereafter. thereafter. thereafter.
Allotment Lot 21 Equity Shares 21 Equity Shares 21 Equity Shares 21 Equity Shares
and in multiples of and in multiples of and in multiples of and in multiples of
one Equity Share one Equity Share one Equity Share one Equity Share
thereafter thereafter thereafter thereafter.
Trading Lot One Equity Share One Equity Share One Equity Share One Equity Share
Who can Apply ** Public financial Resident Indian Resident Indian Eligible Employee
institutions as individuals, individuals,
specified in Eligible NRIs, Eligible NRIs and
Section 4A of the HUF (in the name HUF (in the name
Companies Act, of Karta), of Karta)
scheduled companies,
commercial banks, corporate bodies,
mutual funds scientific
registered with institutions
SEBI, FIIs and societies and
sub-accounts trusts,
registered with sub-accounts of
SEBI, other than a FIIs registered
sub-account which with SEBI, which
is a foreign are foreign
corporate or corporates or
foreign individual, foreign
venture capital individuals.
funds registered
with SEBI, state
industrial
development
corporations,
insurance
companies
registered with
Insurance
Regulatory and

410
 QIBs# Non-Institutional Retail Individual Employee
Bidders Bidders Reservation
Portion
Development
Authority,
provident funds
(subject to
applicable law)
with minimum
corpus of Rs. 250
million, pension
funds with
minimum corpus
of Rs. 250 million
in accordance with
applicable law,
National
Investment Fund
and the insurance
funds set up and
managed by army,
navy or air force
of the Union of
India.
Terms of Amount shall be Amount shall be Amount shall be Amount shall be
Payment payable at the time payable at the payable at the time payable at the time
of submission of time of of submission of of submission of
Bid cum submission of Bid Bid cum Bid cum
Application Form cum Application Application Application Form.
to the Syndicate Form. Form.##
Members
(including for
Anchor
Investors)###
Margin Amount**** Full Bid Amount Full Bid Amount Full Bid Amount Full Bid Amount
on bidding on bidding on bidding
#
The Company may allocate up to 30% of the QIB Portion to Anchor Investors on a discretionary
basis. One-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds,
subject to valid Bids being received from domestic Mutual Funds at or above the price at which
allocation is being done to other Anchor Investors. For further details, please see the section
entitled “Issue Procedure” on page 414 of this Prospectus.
##
In case of ASBA Bidders, the SCSB shall be authorised to block such funds in the bank account of
the ASBA Bidder that are specified in the ASBA Bid cum Application Form.
###
Bid Amount shall be payable by the Anchor Investors at the time of submission of the Bid cum
Application Forms. The balance, if any, shall be paid within two Working Days of the Bid/Issue
Closing Date.
*
Subject to valid Bids being received at or above the Issue Price. In accordance with the first
proviso to Rule 19(2)(b)(ii) of the SCRR, this Issue is being made through the 100% Book
Building Process wherein at least 60% of the Issue will be allocated on a proportionate basis to
QIBs. Out of the QIB Portion (excluding the Anchor Investor Portion), 5% shall be available for
allocation on a proportionate basis to Mutual Funds only. The remainder shall be available for
allocation on a proportionate basis to QIBs and Mutual Funds, subject to valid Bids being received
from them at or above the Issue Price. If at least 60% of the Issue cannot be allocated to QIBs,

411
 then the entire application money will be refunded forthwith. However, if the aggregate demand
from Mutual Funds is less than 145,104 Equity Shares, the balance Equity Shares available for
Allotment in the Mutual Fund Portion will be added to the QIB Portion and allocated
proportionately to the QIB Bidders in proportion to their Bids. Further, not less than 10% of the
Issue will be available for allocation on a proportionate basis to Non-Institutional Bidders and not
less than 30% of the Issue will be available for allocation on a proportionate basis to Retail
Individual Bidders, subject to valid Bids being received at or above the Issue Price. The Issue
might be more than 25% of the post Issue capital, based on the Issue price being determined.

Under-subscription, if any, in any category except in the QIB category would be met with spill-
over from other categories at sole discretion of the Company, in consultation with the BRLMs and
the CBRLM.

Under subscription, if any, in the Employee Reservation Portion will be added back to the Net
Issue. The unsubscribed portion in the Net Issue, except the QIB Portion, shall be allowed to be
met from spill over to the extent of under subscription from the Employee Reservation Portion,
subject to the Net Issue constituting 10% of the post Issue capital of the Company. If at least 60%
of the Net Issue is not allotted to the QIBs, the entire subscription monies shall be refunded.
**
In case the Bid cum Application Form is submitted in joint names, the Bidders should ensure that
the demat account is also held in the same joint names and are in the same sequence in which they
appear in the Bid cum Application Form.

Withdrawal of the Issue

The Company, in consultation with the BRLMs and the CBRLM, reserves the right not to proceed with the
Issue anytime after the Bid/Issue Opening Date but before the Allotment of Equity Shares. In such an event
the Company would issue a public notice in the newspapers, in which the pre-Issue advertisements were
published, within two days of the Bid/ Issue Closing Date, providing reasons for not proceeding with the
Issue. The Company shall also inform the same to Stock Exchanges on which the Equity Shares are
proposed to be listed.

Any further issue of Equity Shares by the Company shall be in compliance with applicable laws.

Bid/ Issue Programme

BID/ISSUE OPENED ON SEPTEMBER 24, 2010

BID/ISSUE CLOSED ON SEPTEMBER 28, 2010

Bids and any revision in Bids shall be accepted only between 10 a.m. and 3 p.m. (Indian Standard Time)
during the Bid/ Issue Period as mentioned above at the bidding centres mentioned on the Bid cum
Application Form. On the Bid / Issue Closing Date, the Bids (excluding the ASBA Bidders) and any
revision in Bids shall be accepted only between 10 a.m. and 3 p.m. (Indian Standard Time) and uploaded
until (i) 4.00 p.m. in case of Bids by QIB Bidders, Non-Institutional Bidders and Eligible Employees
bidding under the Employee Reservation Portion, and (ii) until 5.00 p.m. or such extended time as
permitted by the NSE and the BSE, in case of Bids by Retail Individual Bidders. It is clarified that the Bids
not uploaded in the book would be rejected. Bids by the ASBA Bidders shall be uploaded by the SCSB in
the electronic system to be provided by the NSE and the BSE.

In case of discrepancy in the data entered in the electronic book vis-à-vis the data contained in the physical
Bid form, for a particular Bidder, the details as per the physical form of the Bidder may be taken as the
final data for the purpose of allotment. In case of discrepancy in the data entered in the electronic book vis-
à-vis the data contained in the physical or electronic Bid cum Application Form, for a particular ASBA
Bidder, the Registrar to the Issue shall ask for rectified data from the SCSB.

412
Due to limitation of time available for uploading the Bids on the Bid/ Issue Closing Date, the Bidders are
advised to submit their Bids one day prior to the Bid/ Issue Closing Date and, in any case, no later than the
times mentioned above on the Bid/ Issue Closing Date. All times mentioned in the Prospectus are Indian
Standard Time. Bidders are cautioned that in the event a large number of Bids are received on the Bid/
Issue Closing Date, as is typically experienced in public offerings, some Bids may not get uploaded due to
lack of sufficient time. Such Bids that cannot be uploaded will not be considered for allocation under the
Issue. Bids will be accepted only on Business Days, i.e., Monday to Friday (excluding any public holiday).

On the Bid/ Issue Closing Date, extension of time will be granted by the Stock Exchanges only for
uploading the Bids received by Retail Individual Bidders after taking into account the total number of Bids
received up to the closure of time period for acceptance of Bid cum Application Forms as stated herein and
reported by the BRLMs and the CBRLM to the Stock Exchange within half an hour of such closure.

The Company, in consultation with the BRLMs and the CBRLM, reserves the right to revise the Price Band
during the Bid/ Issue Period, provided that the Cap Price shall be less than or equal to 120% of the Floor
Price and the Floor Price shall not be less than the face value of the Equity Shares. The revision in Price
Band shall not exceed 20% on the either side i.e. the floor price can move up or down to the extent of 20%
of the floor price disclosed at least two (2) days prior to the Bid/ Issue Opening Date and the Cap Price will
be revised accordingly.

In case of revision of the Price Band, the Issue Period will be extended for three additional working
days after revision of Price Band subject to the Bidding / Issue Period not exceeding 10 days. Any
revision in the Price Band and the revised Bid/ Issue Period, if applicable, will be widely
disseminated by notification to the Stock Exchanges , by issuing a press release and also by indicating
the changes on the web site of the BRLMs and the CBRLM and at the terminals of the Syndicate.

413
 ISSUE PROCEDURE

This section applies to all Bidders. Please note that all Bidders other than the Anchor Investors can
participate in the Issue through the ASBA process. ASBA Bidders should note that the ASBA process
involves application procedures that are different from the procedure applicable to Bidders other than the
ASBA Bidders. Bidders applying through the ASBA process should carefully read the provisions applicable
to such applications before making their application through the ASBA process. Please note that all the
Bidders are required to make payment of the full Bid Amount along with the Bid cum Application Form
instruct the relevant SCSB to block the full Bid Amount along with the application.

Book Building Procedure

This Issue is being made through the 100% Book Building Process wherein at least 60% of the Net Issue
shall be allocated to QIBs on a proportionate basis. Out of the QIB Portion (excluding Anchor Investor
Portion), 5% shall be available for allocation on a proportionate basis to Mutual Funds only. The remainder
shall be available for allocation on a proportionate basis to QIBs and Mutual Funds, subject to valid Bids
being received from them at or above the Issue Price. If at least 60% of the Net Issue cannot be allocated to
QIBs, then the entire application money will be refunded forthwith. Further, not less than 10% of the Issue
will be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 30%
of the Issue will be available for allocation on a proportionate basis to Retail Individual Bidders, subject to
valid Bids being received at or above the Issue Price. The Issue might be more than 25% of the post Issue
capital, based on the Issue price being determined. Allocation to Anchor Investors shall be on a
discretionary basis and not on a proportionate basis.

All Bidders, other than the ASBA Bidders, are required to submit their Bids through the Syndicate. ASBA
Bidders are required to submit their Bids to the SCSBs. Bids by QIBs shall be submitted only to the
BRLMs and the CBRLM, other than Bids by QIBS who Bid through the ASBA process, who shall submit
the Bids to the Designated Branch of the SCSBs.

Investors should note that the Equity Shares will be Allotted to all successful Bidders only in
dematerialised form. The Bid cum Application Forms which do not have the details of the Bidders’
depository account shall be treated as incomplete and rejected. Bidders will not have the option of being
Allotted Equity Shares in physical form. The Equity Shares on Allotment shall be traded only in the
dematerialised segment of the Stock Exchanges.

Bid cum Application Form

The prescribed colour of the Bid cum Application Form for the various categories is as follows:

Category Colour of Bid cum

Application Form
Resident Indians and Eligible NRIs applying on a non-repatriation basis (ASBA White
as well as non ASBA Bidders)
Eligible Employees Pink
Eligible NRIs and FIIs, applying on a repatriation basis (ASBA as well as non Blue
ASBA Bidders)
Anchor Investors White

Bidders (other than ASBA Bidders) are required to submit their Bids through the Syndicate. Such Bidders
shall only use the specified Bid cum Application Form bearing the stamp of a member of the Syndicate for
the purpose of making a Bid in terms of the Prospectus. The Bidder shall have the option to make a
maximum of three Bids in the Bid cum Application Form and such options shall not be considered as
multiple Bids.

ASBA Bidders shall submit an ASBA Bid cum Application Form either in physical or electronic form to
the SCSB authorising blocking of funds that are available in the bank account specified in the ASBA Bid

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cum Application Form.

Only QIBs can participate in the Anchor Investor Portion and Anchor Investors cannot submit their Bids
through the ASBA process.

Upon filing of the Prospectus with the RoC, the Bid cum Application Form shall be considered as the
Application Form. Upon completion and submission of the Bid cum Application Form to a member of the
Syndicate, the Bidder is deemed to have authorised the Company to make the necessary changes in the
Prospectus as would be required for filing the Prospectus with the RoC and as would be required by RoC
after such filing, without prior or subsequent notice of such changes to the Bidder.

Who can Bid?

x Indian nationals resident in India who are not minors in single or joint names (not more than
three);
x Hindu Undivided Families or HUFs, in the individual name of the Karta. The Bidder should
specify that the Bid is being made in the name of the HUF in the Bid cum Application Form as
follows: “Name of Sole or First bidder: XYZ Hindu Undivided Family applying through XYZ,
where XYZ is the name of the Karta”. Bids by HUFs would be considered at par with those from
individuals;
x Companies, corporate bodies and societies registered under the applicable laws in India and
authorised to invest in equity shares;
x Mutual Funds registered with SEBI;
x Eligible NRIs on a repatriation basis or on a non repatriation basis subject to applicable laws;
x Indian financial institutions, commercial banks (excluding foreign banks), regional rural banks,
co-operative banks (subject to RBI regulations and the SEBI Regulations and other laws, as
applicable);
x FIIs and sub-accounts registered with SEBI, other than a sub-account which is a foreign corporate
or foreign individual;
x Sub-accounts of FIIs registered with SEBI, which are foreign corporates or foreign individuals
only under the Non-Institutional Bidders category.
x Venture Capital Funds registered with SEBI;
x State Industrial Development Corporations;
x Trusts/societies registered under the Societies Registration Act, 1860, as amended, or under any
other law relating to trusts/societies and who are authorised under their respective constitutions to
hold and invest in equity shares;
x Scientific and/or industrial research organisations authorised to invest in equity shares;
x Insurance Companies registered with Insurance Regulatory and Development Authority;
x Provident Funds with a minimum corpus of Rs.250 million and who are authorised under their
constitution to hold and invest in equity shares;
x Pension Funds with a minimum corpus of Rs.250 million and who are authorised under their
constitution to hold and invest in equity shares;
x National Investment Fund; and
x Insurance funds set up and managed by the army, navy or air force of the Union of India

As per the existing regulations, OCBs cannot participate in this Issue.

Bidders are advised to ensure that any single bid from them does not exceed investment limits or maximum
number of equity shares that can be held by them under the applicable laws.

Participation by associates and affiliates of BRLMs, the CBRLM and Syndicate Members

The BRLMs, the CBRLM and the Syndicate Members shall not be allowed to subscribe to this Issue in any
manner except towards fulfilling their underwriting obligations. However, the associates and affiliates of
the BRLMs, the CBRLM and Syndicate Members may subscribe to or purchase Equity Shares in the Issue,

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either in the QIB Portion or in Non-Institutional Portion as may be applicable to such Bidders, where the
allocation is on a proportionate basis.

The BRLMs, the CBRLM and any persons related to the BRLMs or the CBRLM or the Promoters and the
Promoter Group cannot apply in the Issue under the Anchor Investor Portion.

Bids by Mutual Funds

An eligible Bid by a Mutual Fund shall first be considered for allocation proportionately in the Mutual
Fund Portion. In the event that the demand is greater than 145,104 Equity Shares, allocation shall be made
to Mutual Funds proportionately, to the extent of the Mutual Fund Portion. The remaining demand by the
Mutual Funds shall, as part of the aggregate demand by QIBs, be available for allocation proportionately
out of the remainder of the QIB Portion, after excluding the allocation in the Mutual Fund Portion.

One-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds, subject to valid Bids
being received from domestic Mutual Funds at or above the price at which allocation is being done to other
Anchor Investors.

In case of a Mutual Fund, a separate Bid can be made in respect of each scheme of the Mutual Fund
registered with SEBI and such Bids in respect of more than one scheme of the Mutual Fund will not
be treated as multiple Bids provided that the Bids clearly indicate the scheme concerned for which
the Bid has been made.

No mutual fund scheme shall invest more than 10% of its net asset value in equity shares or equity
related instruments of any single company provided that the limit of 10% shall not be applicable for
investments in index funds or sector or industry specific funds. No Mutual Fund under all its
schemes should own more than 10% of any company’s paid-up share capital carrying voting rights.

The Bids made by asset management companies or custodian of Mutual Funds shall clearly indicate the
name of the concencerned scheme for which the application is made.

Bids by Eligible NRIs

1. Bid cum Application Forms have been made available for Eligible NRIs applying on a repatriation
basis (Blue in colour) at the Registered Office of the Company and with the members of the
Syndicate.

2. Eligible NRI applicants should note that only such applications as are accompanied by payment in
free foreign exchange shall be considered for Allotment. Eligible NRIs who intend to make
payment through Non-Resident Ordinary (NRO) accounts should use the form meant for Resident
Indians (White in colour).

Bids by FIIs

As per the current regulations, the following restrictions are applicable for investments by FIIs:

The issue of Equity Shares to a single FII should not exceed 10% of our post-Issue paid-up share capital
(i.e. 10% of 6,944,444 Equity Shares). In respect of an FII investing in the Equity Shares on behalf of its
sub-accounts, the investment on behalf of each sub-account shall not exceed 10% of our total issued capital
or 5% of our total paid-up capital in case such sub-account is a foreign corporate or an individual. As of
now, the aggregate FII holding in the Company cannot exceed 24% of the Company’s total issued capital.
With the approval of the board and the shareholders by way of a special resolution, the aggregate FII
holding can go up to 100%. However, as on this date, no such resolution has been recommended to the
shareholders of the company for adoption.

Subject to compliance with all applicable Indian laws, rules, regulations guidelines and approvals in terms

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of regulation 15A(1) of the Securities Exchange Board of India (Foreign Institutional Investors)
Regulations 1195, as amended (“SEBI FII Regulations”), an FII, as defined in the SEBI FII Regulations, or
its sub-account may issue, deal or hold, offshore derivative instruments (as defined under the SEBI FII
Regulations as any instrument, by whatever name called, which is issued overseas by an FII against
securities held by it that are listed or proposed to be listed on any recognised stock exchange in India, as its
underlying) directly or indirectly, only in the event (i) such offshore derivative instruments are issued only
to persons who are regulated by an appropriate regulatory authority; and (ii) such offshore derivative
instruments are issued after compliance with ‘know your client’ norms. The FII or sub-account is also
required to ensure that no further issue or transfer of any offshore derivative instrument is made by or on
behalf of it to any persons that are not regulated by an appropriate foreign regulatory authority as defined
under the SEBI FII Regulations. Associates and affiliates of the underwriters including the BRLMs, the
CBRLM and the Syndicate Members that are FIIs may issue offshore derivative instruments against Equity
Shares Allotted to them in the Issue. Any such Offshore Derivative Instrument does not constitute any
obligation of claim on or an interest in the Company.

Bids by SEBI registered Venture Capital Funds

The SEBI (Venture Capital Funds) Regulations, 1996 inter alia prescribe the investment restrictions on
venture capital funds registered with SEBI.

Accordingly, the holding by any individual Venture Capital fund registered with SEBI in one company
should not exceed 25% of the corpus of the Venture Capital Fund. Further, venture capital funds can invest
only up to 33.33% of the investible funds by way of subscription to an IPO of a venture capital undertaking
whose shares are proposed to be listed.

The above information is given for the benefit of the Bidders. The Company, the BRLMs and the
CBRLM are not liable for any amendments or modification or changes in applicable laws or
regulations, which may occur after the date of this Prospectus. Bidders are advised to make their
independent investigations and are advised to ensure that any Bid from them does not exceed the
investment limits or maximum number of Equity Shares that can be held by them under applicable
law or regulation or as specified in this Prospectus.

Maximum and Minimum Bid Size

(a) For Retail Individual Bidders: The Bid must be for a minimum of 21 Equity Shares and in
multiples of 21 Equity Share thereafter, so as to ensure that the Bid Amount payable by the Bidder
does not exceed Rs. 100,000. In case of revision of Bids, the Retail Individual Bidders have to
ensure that the Bid Amount does not exceed Rs. 100,000. In case the Bid Amount is over Rs.
100,000 due to revision of the Bid or revision of the Price Band or on exercise of Cut-Off Price
option, the Bid would be considered for allocation under the Non-Institutional Portion. The Cut-
Off Price option is an option given only to the Retail Individual Bidders and Eligible Employees
indicating their agreement to Bid and purchase at the final Issue Price as determined at the end of
the Book Building Process.

(b) For Other Bidders (Non-Institutional Bidders and QIBs, excluding Anchor Investors): The
Bid must be for a minimum of such number of Equity Shares in multiples of 21 Equity Shares
such that the Bid Amount exceeds Rs. 100,000. A Bid cannot be submitted for more than the Issue
Size. However, the maximum Bid by a QIB investor should not exceed the investment limits
prescribed for them by applicable laws. A QIB Bidder cannot withdraw its Bid after the
Bid/Issue Closing Date.

In case of revision in Bids, the Non-Institutional Bidders, who are individuals, have to ensure that
the Bid Amount is greater than Rs. 100,000 for being considered for allocation in the Non-
Institutional Portion. In case the Bid Amount reduces to Rs. 100,000 or less due to a revision in
Bids or revision of the Price Band, Bids by Non-Institutional Bidders who are eligible for
allocation in the Retail Portion would be considered for allocation under the Retail Portion. Non-

417
 Institutional Bidders and QIBs are not allowed to Bid at ‘Cut-off Price’.

(c) For Bidders in the Employee Reservation Portion: The Bid must be for a minimum of 21
Equity Shares and in multiples of 21 Equity Shares thereafter so as to ensure that the Bid Amount
payable by the Bidder does not exceed Rs. 100,000. In case of revision of Bids, the Eligible
Employees have to ensure that the Bid Amount does not exceed Rs. 100,000. In case the Bid
Amount is over Rs. 100,000 due to revision of the Bid or revision of the Price Band or on exercise
of Cut-off option, the Bid would be considered for allocation under the Non-Institutional Bidders
portion. The Cut-off option is an option given only to the Eligible Employees and Retail
Individual Bidders indicating their agreement to Bid and purchase at the final Issue Price as
determined at the end of the Book Building Process.

(d) For Bidders in the Anchor Investor Portion: The Bid must be for a minimum of such number of
Equity Shares in multiples of 21 Equity Shares such that the Bid Amount exceeds Rs. 100 million.
Bids by Anchor Investors under the Anchor Investor Portion and the QIB Portion shall not be
considered as multiple Bids under the Anchor Investor Portion. A Bid cannot be submitted for
more than 30% of the QIB Portion. Anchor Investors cannot withdraw their Bids after the
Anchor Investor Bid/ Issue Period and are required to pay the Bid Amount at the time of
submission of the Bid. In case the Anchor Investor Issue Price is lower than the Issue Price,
the balance amount shall be payable as per the pay-in date mentioned in the revised Anchor
Investor Allocation Notice.

Information for the Bidders:

(a) The Company, in consultation with the BRLMs and the CBRLM, shall declare the Bid/Issue
Opening Date and Bid/Issue Closing Date in the Red Herring Prospectus to be registered with the
RoC and also publish the same in two national daily newspapers (one each in English and Hindi)
and in one Marathi newspaper with wide circulation. This advertisement shall be in the prescribed
format.

(b) The Company will file the Red Herring Prospectus with the RoC at least three days before the
Bid/Issue Opening Date.

(c) The Company may decide to close Bidding by QIBs one day prior to the Bid/Issue Closing Date
provided that Bidding shall be kept open for a minimum of three days for all categories of
Bidders. The Company’s decision to close Bidding by QIBs one day prior to the Bid/Issue Closing
Date shall be disclosed in the Red Herring Prospectus to be filed with the RoC.

(d) Copies of the Bid cum Application Form and copies of the Red Herring Prospectus will be
available with the Syndicate. The SCSBs shall ensure that the abridged prospectus is made
available on their websites.

(e) Any Bidder (who is eligible to invest in the Equity Shares) who would like to obtain the Red
Herring Prospectus and/ or the Bid cum Application Form can obtain the same from the
Registered Office of the Company.

(f) Eligible Bidders who are interested in subscribing for the Equity Shares should approach any of
the BRLMs, the CBRLM or Syndicate Members or their authorised agent(s) to register their Bids.
Bidders (other than ASBA Bidders) who wish to use the ASBA process should approach the
Designated Branches of the SCSBs to register their Bids.

(g) The Bids should be submitted on the prescribed Bid cum Application Form only. Bid cum
Application Forms (other than the ASBA Bid cum Application Forms) should bear the stamp of
the members of the Syndicate, otherwise they will be rejected. Bids by ASBA Bidders shall be
accepted by the Designated Branches of the SCSBs in accordance with the SEBI Regulations and
any circulars issued by SEBI in this regard. Bidders (other than Anchor Investors) applying

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 through the ASBA process also have an option to submit the ASBA Bid cum Application Form in
electronic form.

Bidders should note that in case the PAN, the DP ID and Client ID mentioned in the Bid cum
Application Form and entered into the electronic bidding system of the Stock Exchanges by the
Syndicate Members do not match with PAN, the DP ID and Client ID available in the depository
database, the Bid cum Application form is liable to be rejected. With effect from August 16, 2010,
the demat accounts of Bidders for which PAN details have not been verified shall be “suspended for
credit” and no credit of Equity Shares pursuant to the Issue shall be made into accounts of such
Bidders.

Method and Process of Bidding

(a) The Company, in consultation with the BRLMs and the CBRLM, will decide the Price Band and
the minimum Bid lot size for the Issue and the same shall be advertised in all editions of Financial
Express in the English language, all editions of Jansatta in the Hindi language and all editions of
Gavakari in the Marathi language at least two days prior to the Bid/ Issue Opening Date. The
members of the Syndicate and the SCSBs shall accept Bids from the Bidders during the Bid/Issue
Period.

(b) The Bid/Issue Period shall be for a minimum of three Working Days and shall not exceed 10
Working Days. The Bid/ Issue Period maybe extended, if required, by an additional three Working
Days, subject to the total Bid/Issue Period not exceeding 10 Working Days. Any revision in the
Price Band and the revised Bid/ Issue Period, if applicable, will be published in two national
newspapers (one each in English and Hindi) and one Marathi newspaper with wide circulation and
also by indicating the change on the websites of the BRLMs, the CBRLM and at the terminals of
the members of the Syndicate.

(c) During the Bid/Issue Period, Bidders, other than QIBs, who are interested in subscribing for the
Equity Shares should approach the Syndicate or their authorised agents to register their Bids. The
Syndicate shall accept Bids from all Bidders and have the right to vet the Bids during the Bid/
Issue Period in accordance with the terms of the Red Herring Prospectus. Bidders (other than
Anchor Investors) who wish to use the ASBA process should approach the Designated Branches
of the SCSBs to register their Bids.

(d) Each Bid cum Application Form will give the Bidder the choice to Bid for up to three optional
prices (for details refer to the paragraph entitled “Bids at Different Price Levels” below) within the
Price Band and specify the demand (i.e., the number of Equity Shares Bid for) in each option. The
price and demand options submitted by the Bidder in the Bid cum Application Form will be
treated as optional demands from the Bidder and will not be cumulated. After determination of the
Issue Price, the maximum number of Equity Shares Bid for by a Bidder at or above the Issue Price
will be considered for allocation/Allotment and the rest of the Bid(s), irrespective of the Bid
Amount, will become automatically invalid.

(e) The Bidder cannot Bid on another Bid cum Application Form after Bids on one Bid cum
Application Form have been submitted to any member of the Syndicate or the SCSBs. Submission
of a second Bid cum Application Form to either the same or to another member of the Syndicate
or SCBS will be treated as multiple Bids and is liable to be rejected either before entering the Bid
into the electronic bidding system, or at any point of time prior to the allocation or Allotment of
Equity Shares in this Issue. However, the Bidder can revise the Bid through the Revision Form,
the procedure for which is detailed under the paragraph entitled “Build up of the Book and
Revision of Bids”.

(f) Except in relation to the Bids received from the Anchor Investors, the members of the
Syndicate/the SCSBs will enter each Bid option into the electronic bidding system as a separate
Bid and generate a Transaction Registration Slip, (“TRS”), for each price and demand option and

419
 give the same to the Bidder. Therefore, a Bidder can receive up to three TRSs for each Bid cum
Application Form.

(g) The BRLMs and the CBRLM shall accept the Bids from the Anchor Investors during the Anchor
Investor Bid/ Issue Period i.e. one Working Day prior to the Bid/ Issue Opening Date. Bids by
QIBs under the Anchor Investor Portion and the QIB Portion shall not be considered as multiple
Bids.

(h) Along with the Bid cum Application Form, all Bidders (other than ASBA Bidders) will make
payment in the manner described in the section entitled “Issue Procedure - Escrow Mechanism -
terms of payment and payment into the Escrow Accounts” on page 421 of this Prospectus.

(i) Upon receipt of the ASBA Bid cum Application Form, submitted whether in physical or electronic
mode, the Designated Branch of the SCSB shall verify if sufficient funds equal to the Bid Amount
are available in the ASBA Account, as mentioned in the ASBA Bid cum Application Form, prior
to uploading such Bids with the Stock Exchanges.

(j) If sufficient funds are not available in the ASBA Account, the Designated Branch of the SCSB
shall reject such Bids and shall not upload such Bids with the Stock Exchanges.

(k) If sufficient funds are available in the ASBA Account, the SCSB shall block an amount equivalent
to the Bid Amount mentioned in the ASBA Bid cum Application Form and will enter each Bid
option into the electronic bidding system as a separate Bid and generate a TRS for each price and
demand option. The TRS shall be furnished to the ASBA Bidder on request.

(l) The Bid Amount shall remain blocked in the aforesaid ASBA Account until finalisation of the
Basis of Allotment and consequent transfer of the Bid Amount against the Allotted Equity Shares
to the Public Issue Account, or until withdrawal/failure of the Issue or until withdrawal/rejection
of the ASBA Bid cum Application Form, as the case may be. Once the Basis of Allotment is
finalized, the Registrar to the Issue shall send an appropriate request to the Controlling Branch of
the SCSB for unblocking the relevant ASBA Accounts and for transferring the amount allocable
to the successful Bidders to the Public Issue Account. In case of withdrawal/failure of the Issue,
the blocked amount shall be unblocked on receipt of such information from the Registrar to the
Issue.

Bids at Different Price Levels and Revision of Bids

(a) The Company, in consultation with the BRLMs and the CBRLM and without the prior approval of
or intimation to the Bidders, reserves the right to revise the Price Band during the Bid/ Issue
Period, provided that the Cap Price shall be less than or equal to 120% of the Floor Price and the
Floor Price shall not be less than the face value of the Equity Shares. The revision in Price Band
shall not exceed 20% on the either side i.e. the floor price can move up or down to the extent of
20% of the floor price disclosed at least two Working Days prior to the Bid/ Issue Opening Date
and the Cap Price will be revised accordingly.

(b) The Company, in consultation with the BRLMs and the CBRLM, will finalise the Issue Price
within the Price Band in accordance with this clause, without the prior approval of, or intimation,
to the Bidders.

(c) The Company, in consultation with the BRLMs and the CBRLM, can finalise the Anchor Investor
Issue Price within the Price Band in accordance with this clause, without the prior approval of, or
intimation, to the Anchor Investors.

(d) The Company, in consultation with the BRLMs and the CBRLM, shall decide the minimum
number of Equity Shares for each Bid to ensure that the minimum application value is within the
range of Rs. 5,000 to Rs. 7,000.

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(e) The Bidders can Bid at any price within the Price Band. The Bidder has to bid for the desired
number of Equity Shares at a specific price. Retail Individual Bidders may bid at the Cut-off Price.
However, bidding at Cut-off Price is prohibited for QIB and Non-Institutional Bidders and such
Bids from QIB and Non-Institutional Bidders shall be rejected.

(f) Retail Individual Bidders and the Eligible Employees, who Bid at Cut-off Price agree that they
shall purchase the Equity Shares at any price within the Price Band. Retail Individual Bidders and
the Eligible Employees, shall submit the Bid cum Application Form along with a cheque/demand
draft for the Bid Amount based on the Cap Price with the members of the Syndicate. In case of
ASBA Bidders bidding at Cut-off Price, the ASBA Bidders (excluding Non-Institutional Bidders
and QIB Bidders) shall instruct the SCSBs to block an amount based on the Cap Price.

Escrow mechanism, terms of payment and payment into the Escrow Accounts

For details of the escrow mechanism and payment instructions, please see the section entitled “Issue
Procedure - Payment Instructions” on page 430 of this Prospectus.

Electronic Registration of Bids

(a) The Syndicate and the SCSBs will register the Bids using the on-line facilities of the Stock
Exchanges.

(b) The Syndicate and the SCSBs will undertake modification of selected fields in the Bid details
already uploaded within one Working Day from the Bid/Issue Closing Date.

(c) There will be at least one on-line connectivity facility in each city, where a stock exchange is
located in India and where Bids are being accepted. The members of the Sydicate and/or the
SCSBs as the case maybe, shall be responsible for any acts, mistakes or errors or omission and
commissions in relation to, (i) the Bids accepted by the Syndicate Members and the SCSBs, (ii)
the Bids uploaded by the Syndicate Members and the SCSBs, (iii) the Bids accepted but not
uploaded by the Syndicate Members and the SCSBs or (iv) with respect to ASBA Bids, Bids
accepted and uploaded without blocking funds in the ASBA Accounts. It shall be presumed that
for Bids uploaded by the SCSBs, the Bid Amount has been blocked in the relevant ASBA
Account.

(d) The Stock Exchanges will offer an electronic facility for registering Bids for the Issue. This
facility will be available with the Syndicate and their authorised agents and the SCSBs during the
Bid/ Issue Period. The Syndicate Members and the Designated Branches can also set up facilities
for off-line electronic registration of Bids subject to the condition that they will subsequently
upload the off-line data file into the on-line facilities for Book Building on a regular basis. On the
Bid/ Issue Closing Date, the Syndicate and the Designated Branches shall upload the Bids till such
time as may be permitted by the Stock Exchanges. This information will be available with the
BRLMs and the CBRLM on a regular basis.

(e) Based on the aggregate demand and price for Bids registered on the electronic facilities of the
Stock Exchanges, a graphical representation of consolidated demand and price as available on the
websites of the Stock Exchanges would be made available at the Bidding centres during the
Bid/Issue Period.

(f) At the time of registering each Bid other than the ASBA Bids, the Syndicate shall enter the
following details of the Bidders in the on-line system:

x Name of the Bidder: Bidders should ensure that the name given in the Bid cum
Application Form is exactly the same as the name in which the Depositary Account is
held. In case the Bid cum Application Form is submitted in joint names, Bidders should

421
 ensure that the Depository Account is also held in the same joint names and are in the
same sequence in which they appear in the Bid cum Application Form.
x Application number.
x Investor Category – Individual, Corporate, FII, NRI, Mutual Fund, etc.
x PAN.
x DP ID.
x Client identification number of the beneficiary account of the Bidder.
x Numbers of Equity Shares Bid for.
x Bid Amount.
x Cheque Details.
x Bid cum Application Form number.

With respect to ASBA Bids, at the time of registering each Bid, the Designated Branches of the
SCSBs shall enter the following information pertaining to the ASBA Bidders into the online
system:

x Name of the ASBA Bidder(s);

x Application Number;
x PAN (of First ASBA Bidder, in case more than one Bidder);
x Investor Category and Sub-Category:

Retail Eligible Non- QIB

Employees Institutional
(No sub category) (No sub category) x Individual x Mutual Funds
x Corporate x Financial
x Others Institutions
x Insurance
companies
FIIs other than
corporate and
individual
sub-accounts
x Others

x Employee/shareholder (if reservation);

x DP ID and client identification number;
x Beneficiary account number or client ID;
x Number of Equity Shares bid for;
x Bid Amount; and
x Bank account number.

(g) A system generated TRS will be given to the Bidder as a proof of the registration of each of the
bidding options. It is the Bidder’s responsibility to obtain the TRS from the Syndicate or the
Designated Branches of the SCSBs. The registration of the Bid by the member of the Syndicate or
the Designated Branches of the SCSBs does not guarantee that the Equity Shares shall be
allocated/Allotted either by the Syndicate or the Company.

(h) Such TRS will be non-negotiable and by itself will not create any obligation of any kind.

(i) In case of QIB Bidders, the Syndicate has the right to accept the Bid or reject it. However, such
rejection shall be made at the time of receiving the Bid and only after assigning a reason for such
rejection in writing. In case of Non-Institutional Bidders and Retail Individual Bidders, Bids will
be rejected on technical grounds listed out on page 434 of this Prospectus. The Syndicate may also
reject Bids if all the information required is not provided and the Bid cum Application Form is

422
 incomplete in any respect. The SCSBs shall have no right to reject Bids, except on technical
grounds.

(j) The permission given by the Stock Exchanges to use their network and software of the online IPO
system should not in any way be deemed or construed to mean that the compliance with various
statutory and other requirements by the Company and/or the BRLMs and/ or the CBRLM are
cleared or approved by the Stock Exchanges; nor does it in any manner warrant, certify or endorse
the correctness or completeness of any of the compliance with the statutory and other requirements
nor does it take any responsibility for the financial or other soundness of the Company, the
Promoters, the management or any scheme or project of the Company; nor does it in any manner
warrant, certify or endorse the correctness or completeness of any of the contents of this
Prospectus; nor does it warrant that the Equity Shares will be listed or will continue to be listed on
the Stock Exchanges.

(k) Only Bids that are uploaded on the online IPO system of the Stock Exchanges shall be considered
for allocation/ Allotment. The Syndicate will be given up to one day after the Bid/Issue Closing
Date to verify the DP ID and Client ID uploaded in the online IPO system during the Bid/Issue
Period, after which the Registrar to the Issue will receive this data from the Stock Exchanges and
will validate the electronic bid details with depositories records.

(l) Details of Bids in the Anchor Investor Portion will not be registered on the online facilities of the
electronic facilities of the Stock Exchanges.

Build up of the Book and revision of Bids

(a) Bids received from various Bidders through the Syndicate and the SCSBs shall be electronically
uploaded to the Stock Exchanges’ mainframe on a regular basis.

(b) The book gets built up at various price levels. This information will be available with the BRLMs
and the CBRLM at the end of the Bid/ Issue Period.

(c) During the Bid/Issue Period, any Bidder who has registered his or her interest in the Equity Shares
at a particular price level is free to revise his or her Bid within the Price Band using the printed
Revision Form, which is a part of the Bid cum Application Form.

(d) Revisions can be made in both the desired number of Equity Shares and the Bid Amount by using
the Revision Form. Apart from mentioning the revised options in the Revision Form, the Bidder
must also mention the details of all the options in his or her Bid cum Application Form or earlier
Revision Form. For example, if a Bidder has Bid for three options in the Bid cum Application
Form and such Bidder is changing only one of the options in the Revision Form, he must still fill
the details of the other two options that are not being revised, in the Revision Form. The Syndicate
and the Designated Branches of the SCSBs will not accept incomplete or inaccurate Revision
Forms.

(e) The Bidder can make this revision any number of times during the Bid/Issue Period. However, for
any revision(s) in the Bid, the Bidders will have to use the services of the same member of the
Syndicate or the SCSB through whom such Bidder had placed the original Bid. Bidders are
advised to retain copies of the blank Revision Form and the revised Bid must be made only in
such Revision Form or copies thereof.

(f) In case of an upward revision in the Price Band announced as above, Retail Individual Bidders and
the Eligible Employees who had Bid at Cut-off Price could either (i) revise their Bid or (ii) shall
make additional payment based on the cap of the revised Price Band (such that the total amount
i.e., original Bid Amount plus additional payment does not exceed Rs. 100,000 if the Bidder wants
to continue to Bid at Cut-off Price), with the Syndicate to whom the original Bid was submitted. In
case the total amount (i.e., original Bid Amount plus additional payment) exceeds Rs. 100,000, the

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 Bid will be considered for allocation under the Non-Institutional Portion in terms of this
Prospectus. If, however, the Bidder does not either revise the Bid or make additional payment and
the Issue Price is higher than the cap of the Price Band prior to revision, the number of Equity
Shares Bid for shall be adjusted downwards for the purpose of allocation, such that no additional
payment would be required from the Bidder and the Bidder is deemed to have approved such
revised Bid at Cut-off Price.

(g) In case of a downward revision in the Price Band, announced as above, Retail Individual Bidders
and the Eligible Employees, who have Bid at Cut-off Price could either revise their Bid or the
excess amount paid at the time of bidding would be refunded from the Escrow Account.

(h) The Company, in consultation with the BRLMs and the CBRLM, shall decide the minimum
number of Equity Shares for each Bid to ensure that the minimum application value is within the
range of Rs. 5,000 to Rs. 7,000.

(i) Any revision of the Bid shall be accompanied by payment in the form of cheque or demand draft
for the incremental amount, if any, to be paid on account of the upward revision of the Bid. With
respect to the ASBA Bids, if revision of the Bids results in an incremental amount, the relevant
SCSB shall block the additional Bid Amount. In case of Bids, other than ASBA Bids, the
Syndicate shall collect the payment in the form of cheque or demand draft if any, to be paid on
account of the upward revision of the Bid at the time of one or more revisions by the QIB Bidders.
In such cases, the Syndicate will revise the earlier Bid details with the revised Bid and provide the
cheque or demand draft number of the new payment instrument in the electronic book. The
Registrar will reconcile the Bid data and consider the revised Bid data for preparing the Basis of
Allotment.

(j) When a Bidder revises his or her Bid, he or she shall surrender the earlier TRS and may get a
revised TRS from the Syndicate or the SCSB, as applicable. It is the responsibility of the Bidder to
request for and obtain the revised TRS, which will act as proof of his or her having revised the
previous Bid.

Price Discovery and Allocation

(a) Based on the demand generated at various price levels, the Company, in consultation with the
BRLMs and the CBRLM, shall finalise the Issue Price.

(b) Under-subscription, if any, in any category, except the QIB Portion, would be allowed to be met
with spill-over from any other category or combination of categories at the sole discretion of the
Company, in consultation with the BRLMs and the CBRLM. If at least 60% of the Net Issue is not
allocated to the QIBs, the entire subscription monies shall be refunded.

(c) Allocation to Non-Residents, including Eligible NRIs and FIIs registered with SEBI, applying on
repatriation basis will be subject to applicable law, rules, regulations, guidelines and approvals.

(d) Allocation to Anchor Investors shall be at the discretion of the Company in consultation with the
BRLMs and the CBRLM, subject to the compliance with the SEBI Regulations.

(e) QIB Bidders shall not be allowed to withdraw their Bid after the Bid/Issue Closing Date. Further,
the Anchor Investors shall not be allowed to withdraw their Bids after the Anchor Investor
Bid/Issue Period.

(f) The Basis of Allotment shall be put up on the website of the Registrar to the Issue.

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Signing of Underwriting Agreement and the RoC Filing

(a) The Company, the BRLMs, the CBRLM and the Syndicate Members shall enter into an
Underwriting Agreement on or immediately after the finalisation of the Issue Price.

(b) After signing the Underwriting Agreement, the Company will update and file the updated Red
Herring Prospectus with the RoC in accordance with the applicable law, which then would be
termed as the ‘Prospectus’. The Prospectus will contain details of the Issue Price, Issue size,
underwriting arrangements and will be complete in all material respects.

Pre-Issue Advertisement

Subject to Section 66 of the Companies Act, the Company has, after registering the Red Herring Prospectus
with the RoC, published a pre-Issue advertisement, in the form prescribed by the SEBI Regulations, in one
English language national daily newspaper, one Hindi language national daily newspaper and one Marathi
language daily newspaper, each with wide circulation.

Advertisement regarding Issue Price and Prospectus

The Company will issue a statutory advertisement after the filing of the Prospectus with the RoC. This
advertisement, in addition to the information that has to be set out in the statutory advertisement, shall
indicate the Issue Price and the Anchor Investor Issue Price. Any material updates between the date of the
Red Herring Prospectus and the date of Prospectus will be included in such statutory advertisement.

Issuance of Confirmation of Allotment Note (“CAN”)

(a) Upon approval of the Basis of Allotment by the Designated Stock Exchange and on Allotment by
the Board of Directors or any committee constituted thereof, the Registrar shall send to the
Syndicate a list of their Bidders who have been allotted Equity Shares in the Issue.

(b) The Registrar will then dispatch a CAN to their Bidders who have been Allotted Equity Shares in
the Issue. The dispatch of CAN shall be deemed a valid, binding and irrevocable contract for the
Bidder.

(c) The Issuance of CAN is subject to “Notice to Anchor Investors - Allotment Reconciliation and
Revised CANs” as set forth under section entitled “Issue Procedure” on page 414 of this
Prospectus.

Notice to Anchor Investors: Allotment Reconciliation and Revised CANs

A physical book will be prepared by the Registrar on the basis of the Bid cum Application Forms received
from Anchor Investors. Based on the physical book and at the discretion of the Company and the BRLMs,
selected Anchor Investors will be sent an Anchor Investor Allocation Notice and/or a revised Anchor
Investor Allocation Notice, as the case may be. All Anchor Investors will be sent Anchor Investor
Allocation Notice post Anchor Investor Bid/Issue Period and in the event that the Issue Price is higher than
the Anchor Investor Issue Price, the Anchor Investors will be sent a revised Anchor Investor Allocation
Notice within one day of the Pricing Date indicating the number of Equity Shares allocated to such Anchor
Investor and the pay-in date for payment of the balance amount. Anchor Investors should note that they
shall be required to pay any additional amounts, being the difference between the Issue Price and the
Anchor Investor Issue Price, as indicated in the revised Anchor Investor Allocation Notice within the pay-
in date referred to in the revised Anchor Investor Allocation Notice. The revised Anchor Investor
Allocation Notice will constitute a valid, binding and irrevocable contract (subject to the issue of CAN) for
the Anchor Investor to pay the difference between the Issue Price and the Anchor Investor Issue Price and
accordingly the CAN will be issued to such Anchor Investors. In the event the Issue Price is lower than the
Anchor Investor Issue Price, the Anchor Investors who have been Allotted Equity Shares will directly
receive CAN. The dispatch of CAN shall be deemed a valid, binding and irrevocable contract for the

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Allotment of Equity Shares to such Anchor Investors.

The final allocation is subject to the physical application being valid in all respect along with receipt of
stipulated documents, the Issue Price being finalised at a price not higher than the Anchor Investor Issue
Price and Allotment by the Board of Directors.

Designated Date and Allotment of Equity Shares

(a) The Company will ensure that (i) the Allotment of Equity Shares; and (ii) credit to the successful
Bidder’s depositary account will be completed within 12 Working Days of the Bid/Issue Closing
Date. After the funds are transferred from the Escrow Account to the Public Issue Account on the
Designated Date, the Company will ensure the credit to the successfull Bidder’s depository
account is completed within two Working Days from the date of Allotment.

(b) In accordance with the SEBI Regulations, Equity Shares will be issued and Allotment shall be
made only in the dematerialised form to the Allottees.

(c) Allottees will have the option to re-materialise the Equity Shares so Allotted as per the provisions
of the Companies Act and the Depositories Act.

Investors are advised to instruct their Depository Participant to accept the Equity Shares that may
be allocated/ Allotted to them pursuant to this Issue.

GENERAL INSTRUCTIONS

Do’s:

(a) Check if you are eligible to apply;

(b) Ensure that you have Bid within the Price Band;

(c) Read all the instructions carefully and complete the Bid cum Application Form;

(d) Ensure that the details about Depository Participant and the beneficiary account are correct as
Allotment of Equity Shares will be in the dematerialised form only;

(e) Ensure that the bank account details are entered only in the space provided specifically for this
purpose. Bids submitted which do not have the bank details are liable to be rejected.

(f) Ensure that the Bids are submitted at the bidding centres only on forms bearing the stamp of a
member of the Syndicate or with respect to ASBA Bidders, ensure that your Bid is submitted at a
Designated Branch of the SCSB where the ASBA Bidder or the person whose bank account will
be utilised by the Bidder for bidding has a bank account;

(g) With respect to ASBA Bids ensure that the ASBA Bid cum Application Form is signed by the
account holder in case the applicant is not the account holder. Ensure that you have mentioned the
correct bank account number in the ASBA Bid cum Application Form;

(h) Ensure that you request for and receive a TRS for all your Bid options;

(i) Ensure that you have funds equal to the Bid Amount in your bank account maintained with the
SCSB before submitting the ASBA Bid cum Application Form to the respective Designated
Branch of the SCSB;

(j) Ensure that full Bid Amount is paid for the Bids submitted to the Syndicate and funds equivalent
to the Bid Amount are blocked in case of any Bids submitted through SCSBs;

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(k) Instruct your respective banks to not release the funds blocked in the bank account under the
ASBA process;

(l) Submit revised Bids to the same member of the Syndicate through whom the original Bid was
placed and obtain a revised TRS;

(m) Except for Bids submitted on behalf of the Central Government or the State Government and
officials appointed by a court and Sikkim residents, all Bidders should mention their PAN allotted
under the Income Tax Act;

(n) Ensure that the Demographic Details (as defined herein below) are updated, true and correct in all
respects;

(o) Ensure that the name(s) given in the Bid cum Application Form is exactly the same as the name(s)
in which the beneficiary account is held with the Depository Participant. In case the Bid cum
Application Form is submitted in joint names, ensure that the beneficiary account is also held in
same joint names and such names are in the same sequence in which they appear in the Bid cum
Application Form.

Don’ts:

(a) Do not Bid for lower than the minimum Bid size;

(b) Do not Bid/ revise Bid Amount to less than the Floor Price Band or higher than the Cap Price;

(c) Do not Bid on another Bid cum Application Form after you have submitted a Bid to the Syndicate
or the SCSBs, as applicable;

(d) Do not pay the Bid Amount in cash, by money order or by postal order or by stockinvest;

(e) Do not send Bid cum Application Forms by post; instead submit the same to a member of the
Syndicate or the SCSBs, as applicable;

(f) Do not bid at Cut-off Price (for QIB Bidders and Non-Institutional Bidders, for Bid Amount in
excess of Es. 100,000);

(g) Do not Bid for a Bid Amount exceeding Rs. 100,000 (for Bids by Retail Individual Bidders and
the Eligible Employees);

(h) Do not fill up the Bid cum Application Form such that the Equity Shares Bid for exceeds the Issue
Size and/ or investment limit or maximum number of Equity Shares that can be held under the
applicable laws or regulations or maximum amount permissible under the applicable regulations;

(i) Do not submit the GIR number instead of the PAN as the Bid is liable to be rejected on this
ground; and

(j) Do not submit the Bids without the full Bid Amount.

INSTRUCTIONS FOR COMPLETING THE BID CUM APPLICATION FORM

Bids must be:

(a) Made only in the prescribed Bid cum Application Form or Revision Form, as applicable.

(b) Completed in full, in BLOCK LETTERS in ENGLISH and in accordance with the

427
 instructions contained herein, in the Bid cum Application Form or in the Revision Form.
Incomplete Bid cum Application Forms or Revision Forms are liable to be rejected.
Bidders should note that the Syndicate and / or the SCSBs, as appropriate, will not be liable
for errors in data entry due to incomplete or illegible Bid cum Application Forms or
Revision Forms.

(c) Information provided by the Bidders will be uploaded in the online IPO system by the
Syndicate and the SCSBs, as the case may be, and the electronic data will be used to make
allocation/ Allotment. The Bidders should ensure that the details are correct and legible.

(d) For Retail Individual Bidders and the Eligible Employees, the Bid must be for a minimum
of 21 Equity Shares and in multiples of 21 thereafter subject to a maximum Bid Amount of
Rs. 100,000.

(e) For Non-Institutional Bidders and QIB Bidders, Bids must be for a minimum of such
number of Equity Shares in multiples of 21 Equity Shares that the Bid Amount exceeds Rs.
100,000. Bids cannot be made for more than the Issue size. Bidders are advised to ensure
that a single Bid from them should not exceed the investment limits or maximum number
of Equity Shares that can be held by them under the applicable laws or regulations.

(f) For Anchor Investors, Bids must be for a minimum of such number of Equity Shares that
the Bid Amount exceeds or equal to Rs. 100 million and in multiples of 21 Equity Shares
thereafter.

(g) In single name or in joint names (not more than three, and in the same order as their
Depository Participant details).

(h) Thumb impressions and signatures other than in the languages specified in the Eighth
Schedule to the Constitution of India must be attested by a Magistrate or a Notary Public or
a Special Executive Magistrate under official seal.

Bidder’s PAN Depository Account and Bank Account Details

Bidders should note that on the basis of PAN of the Bidders, DP ID and beneficiary account number
provided by them in the Bid cum Application Form, the Registrar to the Issue will obtain from the
Depository the demographic details including address, Bidders bank account details, MICR code and
occupation (hereinafter referred to as “Demographic Details”). These bank account details would be
used for giving refunds allocation advice (including through physical refund warrants, direct credit,
NECS, NEFT and RTGS) or unblocking of ASBA account. Hence, Bidders are advised to
immediately update their bank account details as appearing on the records of the Depository
Participant. Please note that failure to do so could result in delays in despatch/ credit of refunds to
Bidders or unblocking of ASBA account at the Bidders sole risk and neither the BRLMs or the
CBRLM or the Registrar to the Issue or the Escrow Collection Banks or the SCSBs nor the
Company shall have any responsibility and undertake any liability for the same. Hence, Bidders
should carefully fill in their Depository Account details in the Bid cum Application Form.

IT IS MANDATORY FOR ALL THE BIDDERS TO GET THEIR EQUITY SHARES IN

DEMATERIALISED FORM. ALL BIDDERS SHOULD MENTION THEIR DEPOSITORY
PARTICIPANT’S NAME, DEPOSITORY PARTICIPANT IDENTIFICATION NUMBER AND
BENEFICIARY ACCOUNT NUMBER IN THE BID CUM APPLICATION FORM. INVESTORS
MUST ENSURE THAT THE NAME GIVEN IN THE BID CUM APPLICATION FORM IS
EXACTLY THE SAME AS THE NAME IN WHICH THE DEPOSITORY ACCOUNT IS HELD.
IN CASE THE BID CUM APPLICATION FORM IS SUBMITTED IN JOINT NAMES, IT
SHOULD BE ENSURED THAT THE DEPOSITORY ACCOUNT IS ALSO HELD IN THE SAME
JOINT NAMES AND ARE IN THE SAME SEQUENCE IN WHICH THEY APPEAR IN THE BID

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CUM APPLICATION FORM.

These Demographic Details would be used for all correspondence with the Bidders including mailing of the
CANs/allocation advice and printing of bank particulars on the refund orders or for refunds through
electronic transfer of funds, as applicable. The Demographic Details given by Bidders in the Bid cum
Application Form would not be used for any other purpose by the Registrar to the Issue.

By signing the Bid cum Application Form, the Bidder would be deemed to have authorised the
Depositories to provide, upon request, to the Registrar to the Issue, the required Demographic Details as
available on its records.

Refund orders/CANs would be mailed at the address of the Bidder as per the Demographic Details
received from the Depositories. Bidders may note that delivery of refund orders/CANs may get
delayed if the same once sent to the address obtained from the Depositories are returned undelivered.
In such an event, the address and other details given by the Bidder (other than ASBA Bidders) in the
Bid cum Application Form would be used only to ensure dispatch of refund orders. Please note that
any such delay shall be at such Bidder’s sole risk and neither the Company, the Escrow Collection
Banks nor the BRLMs or the CBRLM nor the Registrar to the Issue shall be liable to compensate the
Bidder for any losses caused to the Bidder due to any such delay or liable to pay any interest for such
delay.

In case no corresponding record is available with the Depositories, which matches the three parameters,
namely, PAN of the sole/First Bidder, DP ID and the beneficiary’s identity, then such Bids are liable to be
rejected.

Bids by Non Residents including Eligible NRIs and FIIs on a repatriation basis

Bids and revision to Bids must be made in the following manner:

1. On the Bid cum Application Form or the Revision Form, as applicable (blue in colour), and
completed in full in BLOCK LETTERS in ENGLISH in accordance with the instructions
contained therein.

2. In a single name or joint names (not more than three and in the same order as their Depositary
Participant Details).

3. Bids on a repatriation basis shall be in the names of individuals, or in the name of FIIs but not in
the names of minors, OCBs, firms or partnerships, foreign nationals (excluding NRIs) or their
nominees.

Bids by Eligible NRIs for a Bid Amount of up to Rs. 100,000 would be considered under the Retail Portion
for the purposes of allocation and Bids for a Bid Amount of more than Rs. 100,000 would be considered
under Non-Institutional Portion for the purposes of allocation.

Refunds, dividends and other distributions, if any, will be payable in Indian Rupees only and net of
bank charges and / or commission. In case of Bidders who remit money through Indian Rupee drafts
purchased abroad, such payments in Indian Rupees will be converted into US Dollars or any other
freely convertible currency as may be permitted by the RBI at the rate of exchange prevailing at the
time of remittance and will be dispatched by registered post or if the Bidders so desire, will be
credited to their NRE accounts, details of which should be furnished in the space provided for this
purpose in the Bid cum Application Form. The Company will not be responsible for loss, if any,
incurred by the Bidder on account of conversion of foreign currency.

There is no reservation for Eligible NRIs and FIIs and all Bidders will be treated on the same basis
with other categories for the purpose of allocation.

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Bids under Power of Attorney

In case of Bids (including ASBA Bids) made pursuant to a power of attorney or by limited companies,
corporate bodies, registered societies, FIIs, Mutual Funds, insurance companies and provident funds with a
minimum corpus of Rs. 250 million (subject to applicable law) and pension funds with a minimum corpus
of Rs. 250 million, a certified copy of the power of attorney or the relevant resolution or authority, as the
case may be, along with a certified copy of the memorandum of association and articles of association
and/or bye laws must be lodged along with the Bid cum Application Form. Failing this, the Company
reserves the right to accept or reject any Bid in whole or in part, in either case, without assigning any
reason therefor.

In addition to the above, certain additional documents are required to be submitted by the following
entities:

(a) With respect to Bids by FIIs and Mutual Funds, a certified copy of their SEBI registration
certificate must be lodged along with the Bid cum Application Form.

(b) With respect to Bids by insurance companies registered with the Insurance Regulatory and
Development Authority, in addition to the above, a certified copy of the certificate of registration
issued by the Insurance Regulatory and Development Authority must be lodged along with the Bid
cum Application Form.

(c) With respect to Bids made by provident funds with a minimum corpus of Rs. 250 million (subject
to applicable law) and pension funds with a minimum corpus of Rs. 250 million, a certified copy
of a certificate from a chartered accountant certifying the corpus of the provident fund/pension
fund must be lodged along with the Bid cum Application Form.

The Company in its absolute discretion, reserves the right to relax the above condition of simultaneous
lodging of the power of attorney along with the Bid cum Application form, subject to such terms and
conditions that the Company, the BRLMs and the CBRLM may deem fit.

PAYMENT INSTRUCTIONS

Escrow Mechanism for Bidders other than ASBA Bidders

The Company and the Syndicate shall open Escrow Accounts with one or more Escrow Collection Bank(s)
in whose favour the Bidders shall make out the cheque or demand draft in respect of his or her Bid and/or
revision of the Bid. Cheques or demand drafts received for the full Bid Amount from Bidders in a certain
category would be deposited in the Escrow Account.

The Escrow Collection Banks will act in terms of the Red Herring Prospectus and the Escrow Agreement.
The Escrow Collection Banks for and on behalf of the Bidders shall maintain the monies in the Escrow
Account until the Designated Date. The Escrow Collection Banks shall not exercise any lien whatsoever
over the monies deposited therein and shall hold the monies therein in trust for the Bidders. On the
Designated Date, the Escrow Collection Banks shall transfer the funds represented by allocation of Equity
Shares (other than ASBA funds with the SCSBs) from the Escrow Account, as per the terms of the Escrow
Agreement, into the Public Issue Account with the Bankers to the Issue. The balance amount after transfer
to the Public Issue Account shall be transferred to the Refund Account. Payments of refund to the Bidders
shall also be made from the Refund Account as per the terms of the Escrow Agreement and the Red
Herring Prospectus.

The Bidders should note that the escrow mechanism is not prescribed by SEBI and has been established as
an arrangement between the Company, the Syndicate, the Escrow Collection Banks and the Registrar to
facilitate collections from the Bidders.

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Payment mechanism for ASBA Bidders

The ASBA Bidders shall specify the bank account number in the ASBA Bid cum Application Form and the
SCSB shall block an amount equivalent to the Bid Amount in the bank account specified in the ASBA Bid
cum Application Form. The SCSB shall keep the Bid Amount in the relevant bank account blocked until
withdrawal/ rejection of the ASBA Bid or receipt of instructions from the Registrar to unblock the Bid
Amount. In the event of withdrawal or rejection of the ASBA Bid cum Application Form or for
unsuccessful ASBA Bid cum Application Forms, the Registrar shall give instructions to the SCSB to
unblock the application money in the relevant bank account within one day of receipt of such instruction.
The Bid Amount shall remain blocked in the ASBA Account until finalisation of the Basis of Allotment in
the Issue and consequent transfer of the Bid Amount to the Public Issue Account, or until withdrawal/
failure of the Issue or until rejection of the ASBA Bid, as the case may be.

Payment into Escrow Account for Bidders other than ASBA Bidders

Each Bidder shall draw a cheque or demand draft or, for Anchor Investors, remit the funds electronically
through the RTGS mechanism for the Bid Amount payable on the Bid as per the following terms:

1. All Bidders would be required to pay the full Bid Amount at the time of the submission of the Bid
cum Application Form.

2. The Bidders shall, with the submission of the Bid cum Application Form, draw a payment
instrument for the Bid Amount in favour of the Escrow Account and submit the same to the
Syndicate. If the payment is not made favouring the Escrow Account along with the Bid cum
Application Form, the Bid of the Bidder shall be rejected.

3. The payment instruments for payment into the Escrow Account should be drawn in favour of:

(a) In case of Resident QIB Bidders: “ABL Public Issue – Escrow Account – QIB – R”

(b) In case of Non-Resident QIB Bidders: “ABL Public Issue – Escrow Account – QIB –
NR”

(c) In case of Resident Retail and Non-Institutional Bidders: “ABL Public Issue – Escrow
Account – R”

(d) In case of Non-Resident Retail and Non-Institutional Bidders: “ABL Public Issue –
Escrow Account – NR”

(e) In case of Employees: “ABL Public Issue – Escrow Account – Employees”

4. Anchor Investors would be required to pay the Bid Amount at the time of submission of the Bid
cum Application Form. In the event of the Issue Price being higher than the price at which
allocation is made to Anchor Investors, the Anchor Investors shall be required to pay such
additional amount to the extent of shortfall between the price at which allocation is made to them
and the Issue Price as per the pay-in date mentioned in the revised Anchor Investor Allocation
Notice. If the Issue Price is lower than the price at which allocation is made to Anchor Investors,
the amount in excess of the Issue Price paid by Anchor Investors shall not be refunded to them.

5. For Anchor Investors, the payment instruments for payment into the Escrow Account should be
drawn in favour of:

(a) In case of resident Anchor Investors: “ABL Public Issue – Escrow Account – Anchor
Investor – R”

(b) In case of non-resident Anchor Investors: “ABL Public Issue – Escrow Account –

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 Anchor Investor – NR”

6. In case of Bids by NRIs applying on repatriation basis, the payments must be made through Indian
Rupee drafts purchased abroad or cheques or bank drafts, for the amount payable on application
remitted through normal banking channels or out of funds held in Non-Resident External (NRE)
Accounts or Foreign Currency Non-Resident (FCNR) Accounts, maintained with banks authorised
to deal in foreign exchange in India, along with documentary evidence in support of the
remittance. Payment will not be accepted out of Non-Resident Ordinary (NRO) Account of Non-
Resident Bidder bidding on a repatriation basis. Payment by drafts should be accompanied by
bank certificate confirming that the draft has been issued by debiting to NRE Account or FCNR
Account.

7. In case of Bids by NRIs applying on non-repatriation basis, the payments must be made through
Indian Rupee Drafts purchased abroad or cheques or bank drafts, for the amount payable on
application remitted through normal banking channels or out of funds held in Non-Resident
External (NRE) Accounts or Foreign Currency Non-Resident (FCNR) Accounts, maintained with
banks authorised to deal in foreign exchange in India, along with documentary evidence in support
of the remittance or out of a Non-Resident Ordinary (NRO) Account of a Non-Resident Bidder
bidding on a non-repatriation basis. Payment by drafts should be accompanied by a bank
certificate confirming that the draft has been issued by debiting an NRE or FCNR or NRO
Account.

8. In case of Bids by FIIs, the payment should be made out of funds held in a Special Rupee Account
along with documentary evidence in support of the remittance. Payment by drafts should be
accompanied by a bank certificate confirming that the draft has been issued by debiting the
Special Rupee Account.

9. The monies deposited in the Escrow Account will be held for the benefit of the Bidders (other than
the ASBA Bidders) till the Designated Date.

10. On the Designated Date, the Escrow Collection Banks shall transfer the funds from the Escrow
Account as per the terms of the Escrow Agreement into the Public Issue Account with the Bankers
to the Issue.

11. On the Designated Date and no later than 10 Working Days from the Bid/Issue Closing Date, the
Escrow Collection Bank shall also refund all amounts payable to unsuccessful Bidders (other than
ASBA Bidders) and also the excess amount paid on bidding, if any, after adjusting for
allocation/Allotment to such Bidders.

12. Payments should be made by cheque, or a demand draft drawn on any bank (including a co-
operative bank), which is situated at, and is a member of or sub-member of the bankers’ clearing
house located at the centre where the Bid cum Application Form is submitted. Outstation
cheques/bank drafts drawn on banks not participating in the clearing process will not be accepted
and applications accompanied by such cheques or bank drafts are liable to be rejected.

13. Cash/stockinvest/money orders/postal orders will not be accepted.

Submission of Bid cum Application Form

All Bid cum Application Forms or Revision Forms duly completed and accompanied by account payee
cheques or drafts shall be submitted to the Syndicate at the time of submission of the Bid. With respect to
the ASBA Bidders, the ASBA Bid cum Application Form or the ASBA Revision Form shall be submitted
to the Designated Branches of the SCSBs.

No separate receipts shall be issued for the money payable on the submission of Bid cum Application Form
or Revision Form. However, the collection centre of the Syndicate will acknowledge the receipt of the Bid

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cum Application Forms or Revision Forms by stamping and returning to the Bidder the acknowledgement
slip. This acknowledgement slip will serve as the duplicate of the Bid cum Application Form for the
records of the Bidder.

OTHER INSTRUCTIONS

Joint Bids in the case of Individuals

Bids may be made in single or joint names (not more than three). In the case of joint Bids, all payments will
be made out in favour of the Bidder whose name appears first in the Bid cum Application Form or Revision
Form. All communications will be addressed to the First Bidder and will be dispatched to his or her address
as per the Demographic Details received from the Depository.

Multiple Bids

A Bidder should submit only one Bid (and not more than one) for the total number of Equity Shares
required. Two or more Bids will be deemed to be multiple Bids if the sole or First Bidder is one and the
same.

In case of a Mutual Fund, a separate Bid can be made in respect of each scheme of the Mutual Fund
registered with SEBI and such Bids in respect of more than one scheme of the Mutual Fund will not be
treated as multiple Bids provided that the Bids clearly indicate the scheme concerned for which the Bid has
been made. Bids by QIBs under the Anchor Investor Portion and QIB Portion (excluding Anchor Investor
Portion) will not be considered as multiple Bids.

The Company reserves the right to reject, in its absolute discretion, all or any multiple Bids in any or all
categories. In this regard, the procedures which would be followed by the Registrar to the Issue to detect
multiple Bids are given below:

1. All Bids will be checked for common PAN and will be accumulated and taken to a separate
process file which would serve as a multiple master.

2. In this master, a check will be carried out for the same PAN. In cases where the PAN is different,
same will be deleted from this master.

3. The Registrar to the Issue will obtain, from the depositories, details of the applicant’s address
based on the DP ID and Beneficiary Account Number provided in the Bid data and create an
address master.

4. The addresses of all the applications in the multiple master will be strung from the address master.
This involves putting the addresses in a single line after deleting non-alpha and non-numeric
characters i.e. commas, full stops, hash etc. Sometimes, the name, the first line of address and pin
code will be converted into a string for each application received and a photo match will be carried
out amongst all the applications processed. A print-out of the addresses will be taken to check for
common names. The Bids with the same name and same address will be treated as multiple Bids.

5. The Bids will be scrutinised for DP ID and Beneficiary Account Numbers. In case applications
bear the same DP ID and Beneficiary Account Numbers, these will be treated as multiple
applications.

Permanent Account Number or PAN

Except for Bids on behalf of the Central or State Government and the officials appointed by the courts, the
Bidders, or in the case of a Bid in joint names, each of the Bidders, should mention his/ her PAN allotted
under the Income Tax Act. In accordance with the SEBI Regulations, the PAN would be the sole
identification number for participants transacting in the securities market, irrespective of the amount of

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transaction. Any Bid cum Application Form without the PAN is liable to be rejected. It is to be
specifically noted that Bidders should not submit the GIR number instead of the PAN as the Bid is
liable to be rejected on this ground. With effect from August 16, 2010, the demat accounts of Bidders
for which PAN details have not been verified shall be “suspended for credit” and no credit of Equity
Shares pursuant to the Issue shall be made into accounts of such Bidders.

REJECTION OF BIDS

In case of QIB Bidders, the Company, in consultation with the BRLMs and the CBRLM, may reject Bids
provided that the reasons for rejecting the same shall be provided to such Bidders in writing. In case of
Non-Institutional Bidders and Retail Individual Bidders, the Company has a right to reject Bids based on
technical grounds. Consequent refunds shall be made by RTGS/NEFT/NES/Direct Credit/cheque or pay
order or draft and will be sent to the Bidder’s address at the Bidder’s risk. With respect to ASBA Bids, the
Designated Branches of the SCSBs shall have the right to reject ASBA Bids if at the time of blocking the
Bid Amount in the Bidder’s bank account, the respective Designated Branch ascertains that sufficient funds
are not available in the Bidder’s bank account maintained with the SCSB. Subsequent to the acceptance of
the ASBA Bid by the SCSB, the Company would have a right to reject the ASBA Bids only on technical
grounds.

Grounds for Technical Rejections

Bidders should note that incomplete Bid cum Application Forms and Bid cum Application Forms that are
not legible will be rejected by the Syndicate of the SCSBs. Bidders are advised to note that Bids are liable
to be rejected inter alia on the following technical grounds:

x Amount paid does not tally with the amount payable for the highest value of Equity Shares Bid
for. With respect to ASBA Bids, the amounts mentioned in the ASBA Bid cum Application Form
does not tally with the amount payable for the value of the Equity Shares Bid for;

x In case of partnership firms, Equity Shares may be registered in the names of the individual
partners and no firm as such shall be entitled to apply;

x Bid by persons not competent to contract under the Indian Contract Act, 1872 including minors,
insane persons;

x PAN not mentioned in the Bid cum Application Form;

x GIR number furnished instead of PAN;

x Bids for lower number of Equity Shares than specified for that category of investors;

x Bids at a price less than the Floor Price;

x Bids at a price more than the Cap Price;

x Signature of sole and/or joint Bidders missing;

x Submission of more than five ASBA Bid cum Application Forms per bank account;

x Submission of Bids by Anchor Investors through ASBA process;

x Bids at Cut-off Price by Non-Institutional and QIB Bidders;

x Bids for number of Equity Shares which are not in multiples of 21;

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x Category not ticked;

x Multiple Bids as defined in the Red Herring Prospectus;

x In case of Bids under power of attorney or by limited companies, corporate, trust etc., relevant
documents are not submitted;

x Bids accompanied by stockinvest/money order/postal order/cash;

x Bid cum Application Forms does not have the stamp of the BRLMs or the CBRLM or Syndicate
Members or the SCSBs;

x Bid cum Application Form does not have the Bidder’s depository account details;

x Bid cum Application Forms are not delivered by the Bidders within the time prescribed as per the
Bid cum Application Forms, Bid/Issue Opening Date advertisement and the Red Herring
Prospectus and as per the instructions in the Red Herring Prospectus and the Bid cum Application
Forms;

x In case no corresponding record is available with the Depositories that matches four parameters
namely names of the Bidders (including the order of names of joint holders), PAN of the Bidders,
the Depositary Participant’s identity (DP ID) and the beneficiary’s account number;

x With respect to ASBA Bids, inadequate funds in the bank account to block the Bid Amount
specified in the ASBA Bid cum Application Form at the time of blocking such Bid Amount in the
bank account;

x Bids for amounts greater than the maximum permissible amounts prescribed by the regulations;

x Bids where clear funds are not available in Escrow Accounts as per final certificate from the
Escrow Collection Banks;

x Bids by QIBs not submitted through the BRLMs or in case of ASBA Bids for QIBs (other than
Anchor Investors) not intimated to the BRLMs;

x Bids by persons in the United States excluding “qualified institutional buyers” as defined in Rule
144A of the Securities Act or other than in reliance of Regulation S under the Securities Act;

x Bids by any person outside India if not in compliance with applicable foreign and Indian Laws;
and

x Bids not uploaded on the terminals of the Stock Exchanges;

x Bids by persons prohibited from buying, selling or dealing in the shares directly or indirectly by
SEBI or any other regulatory authority.

IN CASE THE PAN, THE DP ID AND CLIENT ID MENTIONED IN THE BID CUM
APPLICATION FORM AND ENTERED INTO THE ELECTRONIC BIDDING SYSTEM OF THE
STOCK EXCHANGES BY THE SYNDICATE MEMBERS DO NOT MATCH WITH PAN, THE
DP ID AND CLIENT ID AVAILABLE IN THE DEPOSITORY DATABASE, THE BID CUM
APPLICATION FORM IS LIABLE TO BE REJECTED.

EQUITY SHARES IN DEMATERIALISED FORM WITH NSDL OR CDSL

As per the provisions of Section 68B of the Companies Act, the Allotment of Equity Shares in this Issue

435
shall be only in a dematerialised form, (i.e., not in the form of physical certificates but be fungible and be
represented by the statement issued through the electronic mode).

In this context, two agreements have been signed among the Company, the respective Depositories and the
Registrar:

x Agreement dated March 9, 2006 between NSDL, the Company and the Registrar to the Issue;

x Agreement dated November 3, 2007 between CDSL, the Company and the Registrar to the Issue.

All Bidders can seek Allotment only in dematerialised mode. Bids from any Bidder without relevant details
of his or her depository account are liable to be rejected.

(a) A Bidder applying for Equity Shares must have at least one beneficiary account with either of the
Depository Participants of either NSDL or CDSL prior to making the Bid.

(b) The Bidder must necessarily fill in the details (including the PAN, the Beneficiary Account
Number and Depository Participant’s identification number) appearing in the Bid cum Application
Form or Revision Form.

(c) Allotment to a successful Bidder will be credited in electronic form directly to the beneficiary
account (with the Depository Participant) of the Bidder.

(d) Names in the Bid cum Application Form or Revision Form should be identical to those appearing
in the account details in the Depository. In case of joint holders, the names should necessarily be
in the same sequence as they appear in the account details in the Depository.

(e) If incomplete or incorrect details are given under the heading ‘Bidders Depository Account
Details’ in the Bid cum Application Form or Revision Form, it is liable to be rejected.

(f) The Bidder is responsible for the correctness of his or her Demographic Details given in the Bid
cum Application Form vis-à-vis those with his or her Depository Participant.

(g) Equity Shares in electronic form can be traded only on the Stock Exchanges having electronic
connectivity with NSDL and CDSL. All the Stock Exchanges where the Equity Shares are
proposed to be listed have electronic connectivity with CDSL and NSDL.

(h) The trading of the Equity Shares of the Company would be in dematerialised form only for all
Bidders in the demat segment of the respective Stock Exchanges.

Communications

All future communications in connection with Bids made in this Issue should be addressed to the Registrar
quoting the full name of the sole or First Bidder, Bid cum Application Form number, the Bidders’
Depository Account Details, number of Equity Shares applied for, date of Bid cum Application Form,
name and address of the member of the Syndicate or the Designated Branch of the SCSBs where the Bid
was submitted and cheque or draft number and issuing bank thereof or with respect to ASBA Bids, bank
account number in which the amount equivalent to the Bid Amount was blocked.

Bidders can contact the Compliance Officer or the Registrar in case of any pre-Issue or post-Issue
related problems such as non-receipt of letters of Allotment, credit of Allotted shares in the
respective beneficiary accounts, refund orders etc. In case of ASBA Bids submitted to the Designated
Branches of the SCSBs, the Bidders can contact the Designated Branches of the SCSBs.

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PAYMENT OF REFUND

Bidders other than ASBA Bidders must note that on the basis of the names of the Bidders, Depository
Participant’s name, DP ID, number provided by them in the Bid cum Application Form, the Registrar to the
Issue will obtain, from the Depositories, the Bidders’ bank account details, including the nine digit
Magnetic Ink Character Recognition (“MICR”) code as appearing on a cheque leaf. Hence, Bidders are
advised to immediately update their bank account details as appearing on the records of the Depository
Participant. Please note that failure to do so could result in delays in despatch of refund order or refunds
through electronic transfer of funds, as applicable, and any such delay shall be at the Bidders’ sole risk and
neither the Company, the Registrar to the Issue, Escrow Collection Bank(s), Bankers to the Issue, nor the
BRLMs or the CBRLM shall be liable to compensate the Bidders for any losses caused to the Bidder due to
any such delay or liable to pay any interest for such delay.

Mode of making refunds for Bidders other than ASBA Bidders

The payment of refund, if any, for Bidders other than ASBA Bidders would be done through various modes
in the following order of preference:

1. NECS – Payment of refund would be done through NECS for applicants having an account at any
of the centres where such facility has been made available. This mode of payment of refunds
would be subject to availability of complete bank account details including the MICR code as
appearing on a cheque leaf, from the Depositories. The payment of refunds is mandatory for
applicants having a bank account at any of the abovementioned centres, except where the
applicant, being eligible, opts to receive refund through direct credit or RTGS.

2. Direct Credit – Applicants having bank accounts with the Refund Bank (s), as mentioned in the
Bid cum Application Form, shall be eligible to receive refunds through direct credit. Charges, if
any, levied by the Refund Bank(s) for the same would be borne by the Company.

3. RTGS – Applicants having a bank account at any of the abovementioned centres and whose
refund amount exceeds Rs. 5 million, have the option to receive refund through RTGS. Such
eligible applicants who indicate their preference to receive refund through RTGS are required to
provide the IFSC code in the Bid cum Application Form. In the event the same is not provided,
refund shall be made through NECS. Charges, if any, levied by the applicant’s bank receiving the
credit would be borne by the applicant.

4. NEFT – Payment of refund shall be undertaken through NEFT wherever the applicants’ bank has
been assigned the Indian Financial System Code (IFSC), which can be linked to a Magnetic Ink
Character Recognition (MICR), if any, available to that particular bank branch. IFSC Code will be
obtained from the website of RBI as on a date immediately prior to the date of payment of refund,
duly mapped with MICR numbers. Wherever the applicants have registered their nine digit MICR
number and their bank account number while opening and operating the demat account, the same
will be duly mapped with the IFSC Code of that particular bank branch and the payment of refund
will be made to the applicants through this method. The process flow in respect of refunds by way
of NEFT is at an evolving stage and hence use of NEFT is subject to operational feasibility, cost
and process efficiency. The process flow in respect of refunds by way of NEFT is at an evolving
stage, hence use of NEFT is subject to operational feasibility, cost and process efficiency. In the
event that NEFT is not operationally feasible, the payment of refunds would be made through any
one of the other modes as discussed in the sections.

5. For all other applicants, including those who have not updated their bank particulars with the
MICR code, the refund orders will be despatched under certificate of posting for value upto Rs.
1,500 and through Speed Post/ Registered Post for refund orders of Rs. 1,500 and above. Such
refunds will be made by cheques, pay orders or demand drafts drawn on the Escrow Collection
Banks and payable at par at places where Bids are received. Bank charges, if any, for cashing such
cheques, pay orders or demand drafts at other centres will be payable by the Bidders.

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Mode of making refunds for ASBA Bidders

In case of ASBA Bidders, the Registrar shall instruct the relevant SCSB to unblock the funds in the
relevant ASBA Account to the extent of the Bid Amount specified in the ASBA Bid cum Application
Forms for withdrawn, rejected or unsuccessful or partially successful ASBA Bids within 12 Working Days
of the Bid/Issue Closing Date.

DISPOSAL OF APPLICATIONS AND APPLICATION MONEYS AND INTEREST IN CASE OF

DELAY

With respect to Bidders other than ASBA Bidders, the Company shall ensure dispatch of Allotment advice,
refund orders (except for Bidders who receive refunds through electronic transfer of funds) and give benefit
to the beneficiary account with Depository Participants and submit the documents pertaining to the
Allotment to the Stock Exchanges within two Working Days from the date of Allotment of Equity Shares.

In case of applicants who receive refunds through NECS, direct credit or RTGS, the refund instructions
will be given to the clearing system within 12 Working Days from the Bid/ Issue Closing Date. A suitable
communication shall be sent to the Bidders receiving refunds through this mode within 12 Working Days
of Bid/ Issue Closing Date, giving details of the bank where refunds shall be credited along with amount
and expected date of electronic credit of refund.

The Company shall use best efforts to ensure that all steps for completion of the necessary formalities for
listing and commencement of trading at all the Stock Exchanges where the Equity Shares are proposed to
be listed, are taken within 12 Working Days of the Bid/Issue Closing Date.

In accordance with the Companies Act, the requirements of the Stock Exchanges and the SEBI
Regulations, the Company further undertakes that:

x Allotment of Equity Shares shall be made only in dematerialised form within 12 Working Days of
the Bid/Issue Closing Date;

x With respect to Bidders other than ASBA Bidders, dispatch of refund orders or in a case where the
refund or portion thereof is made in electronic manner, the refund instructions are given to the
clearing system within 12 Working Days of the Bid/Issue Closing Date would be ensured. With
respect to the ASBA Bidders, instructions for unblocking of the ASBA Bidder’s Bank Account
shall be made within 12 Working Days from the Bid/Issue Closing Date; and

x The Company shall pay interest at 15% per annum for any delay beyond the 12 Working Days
from the Bid/Issue Closing Date as mentioned above, if Allotment is not made and refund orders
are not dispatched or if, in a case where the refund or portion thereof is made in electronic manner,
the refund instructions have not been given to the clearing system in the disclosed manner and/or
demat credits are not made to investors within the 12 Working Days prescribed above. If such
money is not repaid within eight days from the day the Company becomes liable to repay, the
Company and every Director of the Company who is an officer in default shall, on and from
expiry of eight days, be jointly and severally liable to repay the money with interest as prescribed
under the applicable law.

IMPERSONATION

Attention of the applicants is specifically drawn to the provisions of sub-section (1) of Section 68 A of
the Companies Act, which is reproduced below:

“Any person who:

(a) makes in a fictitious name, an application to a company for acquiring or subscribing for, any

438
 shares therein, or

(b) otherwise induces a company to allot, or register any transfer of shares, therein to him, or any
other person in a fictitious name,

shall be punishable with imprisonment for a term which may extend to five years.”

BASIS OF ALLOTMENT

A. For Retail Individual Bidders

x Bids received from the Retail Individual Bidders at or above the Issue Price shall be
grouped together to determine the total demand under this category. The Allotment to all
the successful Retail Individual Bidders will be made at the Issue Price.

x The Net Issue size less Allotment to Non-Institutional and QIB Bidders shall be available
for Allotment to Retail Individual Bidders who have Bid in the Issue at a price that is
equal to or greater than the Issue Price.

x If the aggregate demand in this category is less than or equal to 2,072,917 Equity Shares
at or above the Issue Price, full Allotment shall be made to the Retail Individual Bidders
to the extent of their valid Bids.

x If the aggregate demand in this category is greater than 2,072,917 Equity Shares at or
above the Issue Price, the Allotment shall be made on a proportionate basis up to a
minimum of 2,072,917 Equity Shares. For the method of proportionate Basis of
Allotment, refer below.

B. For Non-Institutional Bidders

x Bids received from Non-Institutional Bidders at or above the Issue Price shall be grouped
together to determine the total demand under this category. The Allotment to all
successful Non-Institutional Bidders will be made at the Issue Price.

x The Net Issue size less Allotment to QIBs and Retail shall be available for Allotment to
Non-Institutional Bidders who have Bid in the Issue at a price that is equal to or greater
than the Issue Price.

x If the aggregate demand in this category is less than or equal to 690,971 Equity Shares at
or above the Issue Price, full Allotment shall be made to Non-Institutional Bidders to the
extent of their demand.

x In case the aggregate demand in this category is greater than 690,971 Equity Shares at or
above the Issue Price, Allotment shall be made on a proportionate basis up to a minimum
of 690,971 Equity Shares. For the method of proportionate Basis of Allotment refer
below.

C. For QIBs (other than Anchor Investors)

x Bids received from the QIB Bidders at or above the Issue Price shall be grouped together
to determine the total demand under this portion. The Allotment to all the successful QIB
Bidders will be made at the Issue Price.

x The QIB Portion shall be available for Allotment to QIB Bidders who have Bid in the
Issue at a price that is equal to or greater than the Issue Price.

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 x Allotment shall be undertaken in the following manner:

(a) In the first instance allocation to Mutual Funds for up to 5% of the QIB Portion
(excluding Anchor Investor Portion) shall be determined as follows:

(i) In the event that Bids by Mutual Fund exceed 5% of the QIB Portion
(excluding Anchor Investor Portion), allocation to Mutual Funds shall
be done on a proportionate basis for up to 5% of the QIB Portion
(excluding Anchor Investor Portion).

(ii) In the event that the aggregate demand from Mutual Funds is less than
5% of the QIB Portion (excluding Anchor Investor Portion) then all
Mutual Funds shall get full Allotment to the extent of valid Bids
received above the Issue Price.

(iii) Equity Shares remaining unsubscribed, if any, not allocated to Mutual

Funds shall be available for Allotment to all QIB Bidders as set out in
(b) below;

(b) In the second instance Allotment to all QIBs shall be determined as follows:

(i) In the event that the oversubscription in the QIB Portion (excluding
Anchor Investor Portion), all QIB Bidders who have submitted Bids
above the Issue Price shall be allotted Equity Shares on a proportionate
basis for up to 95% of the QIB Portion.

(ii) Mutual Funds, who have received allocation as per (a) above, for less
than the number of Equity Shares Bid for by them, are eligible to
receive Equity Shares on a proportionate basis along with other QIB
Bidders (excluding Anchor Investor Portion).

(iii) Under-subscription below 5% of the QIB Portion (excluding Anchor

Investor Portion), if any, from Mutual Funds, would be included for
allocation to the remaining QIB Bidders on a proportionate basis.

x The aggregate Allotment to QIB Bidders shall not be less than 4,145,834 Equity Shares.

D. For Employee Reservation Portion

x Bids received from the Eligible Employees at or above the Issue Price shall be grouped
together to determine the total demand under this category. The allocation to all the
successful Eligible Employees will be made at the Issue Price.

x Up to 0.5% of the Issue size shall be available for Allotment to Eligible Employees, who
have Bid in the Issue at a price that is equal to or greater than the Issue Price.

x If the aggregate demand in this category is less than or equal to 34,722 Equity Shares at
or above the Issue Price, full allocation shall be made to the Employees to the extent of
their demand. Under subscription, if any, in the Employee Reservation Portion will be
added back to the Net Issue.

x If the aggregate demand in this category is greater than 34,722 Equity Shares at or above
the Issue Price, the allocation shall be made on a proportionate basis up to a minimum of

440
 34,722 Equity Shares and in multiple of one Equity Share thereafter. For the method of
proportionate basis of allocation, refer below.

x Only Eligible Employees eligible to apply under Employee Reservation Portion.

E. For Anchor Investor Portion

x Allocation of Equity Shares to Anchor Investors at the Anchor Investor Issue Price will
be at the discretion of the Company, in consultation with the BRLMs and the CBRLM,
subject to compliance with the following requirements:

(a). not more than 30% of the QIB Portion will be allocated to Anchor Investors;

(b). one-third of the Anchor Investor Portion shall be reserved for domestic Mutual
Funds, subject to valid Bids being received from domestic Mutual Funds at or
above the price at which allocation is being done to other Anchor Investors;

(c). allocation to Anchor Investors shall be on a discretionary basis and subject to a

minimum number of two Anchor Investors for allocation upto Rs. 2,500 million
and minimum number of five Anchor Investors for allocation more than Rs.
2,500 million.

x The number of Equity Shares Allotted to Anchor Investors and the Anchor Investor Issue
Price, shall be made available in the public domain by the BRLMs and the CBRLM
before the Bid/ Issue Opening Date by intimating the same to the Stock Exchanges.

Method of Proportionate Basis of Allotment in the Issue

Except in relation to Anchor Investors, in the event of the Issue being over-subscribed, the Company shall
finalise the Basis of Allotment in consultation with the Designated Stock Exchange. The Executive
Director (or any other senior official nominated by them) of the Designated Stock Exchange along with the
BRLMs, the CBRLM and the Registrar to the Issue shall be responsible for ensuring that the Basis of
Allotment is finalised in a fair and proper manner.

The Allotment shall be made in marketable lots, on a proportionate basis as explained below:

a) Bidders will be categorised according to the number of Equity Shares applied for.

b) The total number of Equity Shares to be Allotted to each category as a whole shall be arrived at on
a proportionate basis, which is the total number of Equity Shares applied for in that category
(number of Bidders in the category multiplied by the number of Equity Shares applied for)
multiplied by the inverse of the over-subscription ratio.

c) Number of Equity Shares to be Allotted to the successful Bidders will be arrived at on a

proportionate basis, which is total number of Equity Shares applied for by each Bidder in that
category multiplied by the inverse of the over-subscription ratio.

d) In all Bids where the proportionate Allotment is less than 21 Equity Shares per Bidder, the
Allotment shall be made as follows:

x The successful Bidders out of the total Bidders for a category shall be determined by
draw of lots in a manner such that the total number of Equity Shares allotted in that
category is equal to the number of Equity Shares calculated in accordance with (b) above;
and

441
 x Each successful Bidder shall be Allotted a minimum of 21 Equity Shares.

e) If the proportionate Allotment to a Bidder is a number that is more than 21 but is not a multiple of
one (which is the marketable lot), the decimal would be rounded off to the higher whole number if
that decimal is 0.5 or higher. If that number is lower than 0.5 it would be rounded off to the lower
whole number. Allotment to all in such categories would be arrived at after such rounding off.

f) If the Equity Shares allocated on a proportionate basis to any category are more than the Equity
Shares allotted to the Bidders in that category, the remaining Equity Shares available for
Allotment shall be first adjusted against any other category, where the Allotted Equity Shares are
not sufficient for proportionate Allotment to the successful Bidders in that category. The balance
Equity Shares, if any, remaining after such adjustment will be added to the category comprising
Bidders applying for minimum number of Equity Shares.

g) Subject to valid Bids being received, allocation of Equity Shares to Anchor Investors shall be at
the sole discretion of the Company, in consultation with the BRLMs and the CBRLM.

Illustration of Allotment to QIBs and Mutual Funds (“MF”)

A. Issue Details

Sr. No. Particulars Issue details

1. Issue size 200 million equity shares
2. Allocation to QIB (60%) 120 million equity shares
3. Anchor Investor Portion 36 million equity shares
4. Portion available to QIBs other than Anchor 84 million equity shares
Investors [(2) minus (3)]
Of which:
a. Allocation to MF (5%) 4.20 million equity shares
b. Balance for all QIBs including MFs 79.8 million equity shares
3 No. of QIB applicants 10
4 No. of shares applied for 500 million equity shares

B. Details of QIB Bids

Sr. No. Type of QIB bidders# No. of shares bid for (in million)
1 A1 50
2 A2 20
3 A3 130
4 A4 50
5 A5 50
6 MF1 40
7 MF2 40
8 MF3 80
9 MF4 20
10 MF5 20
Total 500
# A1-A5: (QIB bidders other than MFs), MF1-MF5 (QIB bidders which are Mutual Funds)

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C. Details of Allotment to QIB Bidders/ Applicants

(Number of equity shares in million)

Type of Shares Allocation of 4.20 million Allocation of balance Aggregate
QIB bid for Equity Shares to MF 79.80 million Equity allocation to
bidders proportionately (please Shares to QIBs MFs
see note 2 below) proportionately (please
see note 4 below)
(I) (II) (III) (IV) (V)
A1 50 0 7.98 0
A2 20 0 4.00 0
A3 130 0 20.74 0
A4 50 0 7.98 0
A5 50 0 7.98 0
MF1 40 0.84 6.38 7.22
MF2 40 0.84 6.38 7.22
MF3 80 1.68 12.76 14.44
MF4 20 0.42 3.19 3.61
MF5 20 0.42 3.19 3.61
500 4.20 79.80 36.10

Please note:

1. The illustration presumes compliance with the requirements specified in this Prospectus
in the section entitled “Issue Structure” on page 409 of this Prospectus.

2. Out of 84 million Equity Shares allocated to QIBs, 4.2 million (i.e. 5%) will be allocated
on proportionate basis among 5 Mutual Fund applicants who applied for 200 shares in
QIB category.

3. The balance 79.80 million Equity Shares (i.e. 84 - 4.2 (available for MFs)) will be
allocated on proportionate basis among 10 QIB applicants who applied for 500 Equity
Shares (including 5 MF applicants who applied for 200 Equity Shares).

4. The figures in the fourth column entitled “Allocation of balance 79.80 million Equity
Shares to QIBs proportionately” in the above illustration are arrived as under:

x For QIBs other than Mutual Funds (A1 to A5) = No. of shares bid for (i.e. in
column II) X 79.80 / 495.80.

x For Mutual Funds (MF1 to MF5) = [(No. of shares bid for (i.e. in column II of
the table above) less Equity Shares allotted (i.e., column III of the table above)]
X 79.80 / 495.80.

x The numerator and denominator for arriving at allocation of 84 million shares to

the 10 QIBs are reduced by 4.2 million shares, which have already been Allotted
to Mutual Funds in the manner specified in column III of the table above.

Letters of Allotment or Refund Orders or instructions to the SCSBs

The Company shall give credit to the beneficiary account with depository participants within 12 Working
Days from the Bid/Issue Closing Date. Applicants residing at the centres where clearing houses are
managed by the RBI will get refunds through NECS only except where applicant is otherwise disclosed as

443
eligible to get refunds through direct credit and RTGS. The Company shall ensure dispatch of refund
orders, if any, of value up to Rs. 1,500, by “Under Certificate of Posting”, and shall dispatch refund orders
above Rs. 1,500, if any, by registered post or speed post at the sole or First Bidder’s sole risk within 12
Working Days of the Bid/Issue Closing Date. Bidders to whom refunds are made through electronic
transfer of funds will be sent a letter through ordinary post, intimating them about the mode of credit of
refund within 12 Working Days of the Bid/ Issue Closing Date. In case of ASBA Bidders, the Registrar to
the Issue shall instruct the relevant SCSBs to unblock the funds in the relevant ASBA Account to the extent
of the Bid Amount specified in the ASBA Bid cum Application Forms for withdrawn, rejected or
unsuccessful or partially successful ASBA Bids within 12 Working Days of the Bid/Issue Closing Date.

Interest in case of delay in despatch of Allotment Letters or Refund Orders/ instruction to the SCSB
by the Registrar

The Company agrees that (i) the Allotment of Equity Shares; and (ii) credit to the successful Bidders’
depositary accounts will be completed within 12 Working Days of the Bid/ Issue Closing Date. The
Company further agrees that it shall pay interest at the rate of 15% p.a. if the Allotment letters or refund
orders have not been despatched to the applicants or if, in a case where the refund or portion thereof is
made in electronic manner, the refund instructions have not been given in the disclosed manner within 15
days from the Bid/ Issue Closing Date.

The Company will provide adequate funds required for dispatch of refund orders or Allotment advice to the
Registrar.

Refunds will be made by cheques, pay-orders or demand drafts drawn on a bank appointed by the
Company as a Refund Bank and payable at par at places where Bids are received. Bank charges, if any, for
encashing such cheques, pay orders or demand drafts at other centres will be payable by the Bidders.

UNDERTAKINGS BY THE COMPANY

The Company undertakes the following:

x That the complaints received in respect of this Issue shall be attended to by the Company
expeditiously and satisfactorily;

x That all steps for completion of the necessary formalities for listing and commencement of trading
at all the Stock Exchanges where the Equity Shares are proposed to be listed within 12 Working
Days of the Bid/Issue Closing Date;

x That funds required for making refunds to unsuccessful applicants as per the mode(s) disclosed
shall be made available to the Registrar to the Issue by the Issuer;

x That where refunds are made through electronic transfer of funds, a suitable communication shall
be sent to the applicant within 15 days of the Bid/ Issue Closing Date, as the case may be, giving
details of the bank where refunds shall be credited along with amount and expected date of
electronic credit of refund;

x That the Promoters’ contribution in full has already been brought in;

x That the certificates of the securities/ refund orders to Eligible NRIs shall be despatched within
specified time;

x That no further issue of Equity Shares shall be made till the Equity Shares offered through the Red
Herring Prospectus are listed or until the Bid monies are refunded on account of non-listing,
under-subscription etc.; and

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x That adequate arrangements shall be made to collect all ASBA Bid cum Application Forms and to
consider them similar to non-ASBA applications while finalising the Basis of Allotment.

The Company shall not have recourse to the Net proceeds until the final approval for listing and trading of
the Equity Shares from all the Stock Exchanges where listing is sought, has been received.

Withdrawal of the Issue

The Company, in consultation with the BRLMs and the CBRLM, reserves the right not to proceed with the
Issue anytime after the Bid/Issue Opening Date but before the Allotment of Equity Shares. In such an
event, the Company would issue a public notice in the newspapers, in which the pre-Issue advertisements
were published, within two days of the Bid/ Issue Closing Date, providing reasons for not proceeding with
the Issue. The Company shall also inform the same to Stock Exchanges on which the Equity Shares are
proposed to be listed.

Any further issue of Equity Shares by the Company shall be in compliance with applicable laws.

Utilisation of Issue proceeds

The Board of Directors certify that:

x All monies received out of the Issue shall be credited/transferred to a separate bank account other
than the bank account referred to in sub-section (3) of Section 73 of the Companies Act;

x Details of all monies utilised out of Issue shall be disclosed, and continue to be disclosed till the
time any part of the issue proceeds remains unutilised, under an appropriate head in our balance
sheet indicating the purpose for which such monies have been utilised;

x Details of all unutilised monies out of the Issue, if any shall be disclosed under an appropriate
separate head in the balance sheet indicating the form in which such unutilised monies have been
invested;

x The utilisation of monies received under Promoters’ contribution shall be disclosed, and continue
to be disclosed till the time any part of the Issue proceeds remains unutilised, under an appropriate
head in the balance sheet of the Company indicating the purpose for which such monies have been
utilised; and

x The details of all unutilised monies out of the funds received under Promoters’ contribution shall
be disclosed under a separate head in the balance sheet of the issuer indicating the form in which
such unutilised monies have been invested.

445
 RESTRICTIONS ON FOREIGN OWNERSHIP OF INDIAN SECURITIES

Foreign investment in Indian securities is regulated through the Industrial Policy, 1991 of GoI and FEMA.
While the Industrial Policy, 1991 prescribes the limits and the conditions subject to which foreign
investment can be made in different sectors of the Indian economy, FEMA regulates the precise manner in
which such investment may be made. Under the Industrial Policy, unless specifically restricted, foreign
investment is freely permitted in all sectors of Indian economy up to any extent and without any prior
approvals, but the foreign investor is required to follow certain prescribed procedures for making such
investment. Foreign investment limit is allowed up to 100% under automatic route in the Company.

FIIs are permitted to subscribe to shares of an Indian company in a public offer without the prior approval
of the RBI, so long as the price of the equity shares to be issued is not less than the price at which the
equity shares are issued to residents.

The transfer of shares between an Indian resident and a non-resident does not require the prior approval of
the FIPB or the RBI, provided that (i) the activities of the investee company are under the automatic route
under the foreign direct investment (FDI) Policy and transfer does not attract the provisions of the SEBI
(Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (ii) the non-resident shareholding is
within the sectoral limits under the FDI policy, and (iii) the pricing is in accordance with the guidelines
prescribed by the SEBI/RBI.

As per the existing policy of the Government of India, OCBs cannot participate in this Issue.

The Equity Shares have not been and will not be registered, listed or otherwise qualified in any other
jurisdiction outside India and may not be offered or sold, and Bids may not be made by persons in
any such jurisdiction, except in compliance with the applicable laws of such jurisdiction.

The Equity Shares have not been and will not be registered under the US Securities Act of 1933 (the
“Securities Act”) and may not be offered or sold within the United States (as defined in Regulation S
under the Securities Act), except pursuant to an exemption from, or in a transaction not subject to,
the registration requirements of the Securities Act. Accordingly, the Equity Shares are only being
offered outside the United States in offshore transactions in compliance with Regulation S under the
Securities Act and the applicable laws of the jurisdiction where those offers and sales occur.

The above information is given for the benefit of the Bidders. The Company, the BRLMs and the
CBRLM are not liable for any amendments or modification or changes in applicable laws or
regulations, which may occur after the date of this Prospectus. Bidders are advised to make their
independent investigations and ensure that the number of Equity Shares Bid for do not exceed the
applicable limits under laws or regulations.

446
 MAIN PROVISIONS OF ARTICLES OF ASSOCIATION

Capitalised terms used in this section have meaning that has been given to such terms in the Articles of
Association of Ashoka Buildcon Limited. Pursuant to Schedule II of the Companies Act and SEBI
Regulations, the main provisions of the Articles of Association of Ashoka Buildcon Limited are set forth
below:

TABLE “A” EXCLUDED

Article 1 provides that, “No regulations contained in Table A, in the First Schedule to the Companies Act,
1956, or in the Schedule to any previous Companies Act shall apply to this Company, but the regulations
for the management of the Company and for the observance of the Members thereof and their
representatives shall, subject to any exercise of the statutory powers of the Company with reference to the
repeal or alteration of, or addition to, its regulations by Special Resolution, as prescribed by the said
Companies Act, 1956, be such as are contained in these Articles.”

CAPITAL INCREASE AND REDUCTION OF CAPITAL

Amount of Capital

Article 3 provides that, “The authorised Capital of the Company shall be as defined in Clause V of the
Memorandum of Association including amendments thereto, if any.”

Shares under the control of the Directors

Article 19 provides that, “Subject to the provisions of Section 81 of the Act and these Articles, the shares in
the capital of the Company for the time being shall be under the control of the Directors who may issue,
allot or otherwise dispose of the same or any of them to such person, in such proportion and on such terms
and conditions and either at a premium or at par or (subject to the compliance with the provisions of
sections 78 and 79 of the Act) at a discount and at such time as they may form time to time think fit and
with sanction of the Company in the General Meeting to give to any person or persons the option or right to
call for any shares either at par or premium during such time and for such consideration as the Directors
think fit, and may issue and allot shares in the capital of the Company on payment in full or part of any
property sold and transferred or for any services rendered to the Company in the conduct of its business and
any shares which may so be allotted may be issued as fully paid up shares and if so issued, shall be deemed
to be fully paid shares. Provided that option or right to call of shares shall not be given to any person or
persons without the sanction of the Company in the General meeting. The Board shall cause to be filed the
returns as to allotment provided for in section 75 of the Act.”

Power of General Meeting to offer shares to such persons as the Company may resolve

Article 20 provides that, “In addition to and without derogating from the powers for that purpose conferred
on the Board under Article 19, the Company in General Meeting may, subject to the provisions of Section
81 of the Act, determine that any shares (whether forming part of the original capital or of any increased
capital of the Company) shall be offered to such person (whether a Member or not), in such proportion and
on such terms and conditions and either (subject to compliance with the provisions of Sections 78, 79 and
86 of the Act) at a premium or at par or at a discount or Shares with voting rights or with differential rights
as to dividend, voting or otherwise as such general meeting shall determine and with full power to give any
person (whether a Member or not) the option to call for or be allotted shares of any class of the Company
either (subject to compliance with the provisions of Sections 78 and 79 of the Act) at a premium or at par or
at a discount, such option being exercisable at such times and for such consideration as may be directed by
such General Meeting or the Company in general meeting may make any other provision whatsoever for
the issue, allotment or disposal of any shares.”

447
Increase of Capital

Article 4 provides that, “The Company in General Meeting may, from time to time by an Ordinary
Resolution increase the capital by the creation of new shares, such increase to be of such aggregate amount
and to be divided into shares of such respective amounts as the resolution shall prescribe. Subject to the
provisions of the Act, any shares of the original or increased capital shall be issued upon such terms and
conditions and with such rights and privileges annexed thereto, as the General Meeting resolving upon the
creation thereof, shall direct and if no direction be given, as the Directors shall determine; and in particular,
such shares may be issued with a preferential or qualified right to dividends and in the distribution of assets
of the Company and with a right of voting at general meeting of the Company in conformity with Sections
87 and 88 of the Act. Whenever the capital of the Company has been increased under the provisions of this
Article, the Directors shall comply with the provisions of Section 97 of the Act.
The Company may, subject to provisions of the Act and Rules made there under as may be in force, from
time to time, issue shares and other securities under Employees Stock Options and/or by way of Sweat
Equity.”

Provisions in case of redeemable Preference Shares

Article 6 provides that, “Subject to the provisions of the Section 80 of the Act, the Company shall have the
power to issue Preference Shares, which are or at the option of the Company liable to be redeemed and the
resolution authorising such issue shall prescribe the manner, terms and conditions of redemption.”

Buy Back of Shares

Article 10 provides that, “Subject to the provisions of Section 77A, 77AA and 77B of the Act, the Rules
made there under and any statutory modifications thereof, the Company may purchase its own Shares or
other specified securities from time to time out of (i) Out of its Free Reserves (ii) the Securities Premium
Account (iii) the proceeds of any shares or any other specified securities
provided that no buyback of any kind of shares or other specified securities shall be made out of the
proceeds of an earlier issue of the same kind of shares or same kind of the other specified securities.”

Reduction of Capital

Article 9 provides that, “The Company may (subject to the provisions of Sections 78, 80, 100 to 105
inclusive of the Act) from time to time by Special Resolution, reduce its capital, any Capital redemption
Reserve Account and Share Premium Account in any manner for the time being authorised by law and in
particular capital may be paid off on the footing that it may be called up again or otherwise.”

Consolidation, division and sub-division

Article 11 provides that, “Subject to the provisions of Section 94 of the Act the Company in general
meeting may, from time to time, sub-divide or consolidate its shares or any of them and the resolution
whereby any share is sub-divided, may determine that, as between the holders of the shares resulting from
such sub-division one or more of such shares shall have some preference or special advantage as regards
dividend capital or otherwise over or as compared with the others or other. Subject as aforesaid the
Company in general meeting may also cancel shares which have not been taken or agreed to be taken by
any person and diminish the amount of its share capital by the amount of the shares so cancelled.”

SHARES

Shares to be numbered progressively and no share to be sub-divided

Article 16 provides that, “The shares in the capital shall be numbered progressively according to their
several denominations and except in the manner herein before mentioned no share shall be sub-divided.
Every forfeited or surrendered share shall continue to bear the number by which the same was originally
distinguished.”

448
Directors may allot shares as fully paid up

Article 19 provides that, “Subject to the provisions of Section 81 of the act and these Articles, the shares in
the capital of the Company for the time being shall be under the control of the Directors who may issue,
allot or otherwise dispose of the same or any of them to such person, in such proportion and on such terms
and conditions and either at a premium or at par or (subject to the compliance with the provisions of
sections 78 and 79 of the Act) at a discount and at such time as they may form time to time think fit and
with sanction of the Company in the General Meeting to give to any person or persons the option or right to
call for any shares either at par or premium during such time and for such consideration as the Directors
think fit, and may issue and allot shares in the capital of the Company on payment in full or part of any
property sold and transferred or for any services rendered to the Company in the conduct of its business and
any shares which may so be allotted may be issued as fully paid up shares and if so issued, shall be deemed
to be fully paid shares. Provided that option or right to call of shares shall not be given to any person or
persons without the sanction of the Company in the General meeting. The Board shall cause to be filed the
returns as to allotment provided for in section 75 of the Act.”

Deposit and call etc. to be a debt payable immediately

Article 22 provides that, “The money (if any) which the Board shall, on the allotment of any shares being
made by them, require or direct to be paid by way of deposit, call or otherwise, in respect of any shares
allotted by them, shall immediately on the insertion of the name of the allottee in the Register of Members
as the name of the holder of such shares, become a debt due to and recoverable by the Company from the
allottee thereof and shall be paid by him accordingly.”

Company not bound to recognize any interest in shares other than that of registered holder

Article 27 provides that, “Except as ordered by a Court of competent jurisdiction or as by law required, the
company shall not be bound to recognise any equitable, contingent, future or partial interest in share or
(except only as is by these Articles otherwise expressly provided) any right in respect of a share other than
an absolute right thereto, in accordance with these Articles, in the person from time to time registered as the
holder thereof; but the Board shall be at liberty at their sole discretion to register any share in the joint
names of any two or more persons or the survivor or survivors of them.”

UNDERWRITING AND BROKERAGE

Commission may be paid

Article 28 provides that, “Subject to the provisions of Section 76 of the Act the Company may at any time
pay a commission to any person in consideration of his subscribing or agreeing to subscribe (whether
absolutely or conditionally) for any shares or debentures in the Company or procuring or agreeing to
procure subscriptions (whether absolute or conditional) for any shares or debentures in the Company, but
so that the commission shall not exceed in the case of shares five per cent of the price at which the shares
are issued and in the case of debentures two and a half per cent of the price at which the debentures are
issued. Such commission may be satisfied by payment of cash or by allotment of fully or partly paid shares
or partly in one way and partly in the other.”

Brokerage

Article 29 provides that, “The Company may also, on any issue of shares or debentures, pay such brokerage
as may be lawful.”

449
INTEREST OUT OF CAPITAL

Interest may be paid out of Capital

Article 30 provides that, “Where any shares are issued for the purpose of raising money to defray the
expenses of the construction of any work or building or the provision of any plant, which cannot be made
profitable for a lengthy period, the Company may pay interest on so much of that share capital as is for time
being paid up, for the period, at the rate and subject to the conditions and restrictions provided by Section
208 of the Act and may charge the same to capital as part of the cost of construction of the work or
building, or the provision of plant.”

CERTIFICATES

Share Certificates

Article 24 provides that, “Every Member or allottee of the shares shall be entitled, without payment, to one
or more certificates in marketable lots, for all the shares of each class or denomination registered in his
name, or if the Directors so approve (upon paying such fee as the Directors so determine) to several
certificates, each for one or more of such shares and the Company shall complete and have ready for
delivery such certificates within three months from the date of allotment, unless the conditions of issue
thereof or otherwise provide, or within two months of the receipt of the application of registration of
transfer, transmission, sub-division, consolidation or renewal of any of its shares as the case may be. Such
certificate shall be issued only in pursuance of a resolution passed by the Board and on surrender to the
Company of the letter of allotment or the fractional coupons of requisite value , if any, save in case of
issues against letters of acceptance or of renunciation or in cases of issue of bonus shares. Every certificate
of share shall be under the seal of the Company which shall be affixed in the presence of two Directors or
persons acting on behalf of the Directors under a duly registered power of attorney and the Secretary or
some other person appointed by the Board for the purpose and the two Directors or their attorneys and the
Secretary or other person shall sign the certificate of share, provided that if the composition of the Board
permits of it, one of the aforesaid two Directors shall be a Managing Director. Every certificate of share
shall specify the number and distinctive number of shares in respect of which it is issued and amount paid–
up thereon and shall be in such form as the Directors may prescribe and approve.

(a) Particulars of every share certificate issued shall be entered in the Register of Members against the
name of the person, to whom it has been issued, indicating the date of issue. For any further
certificate the Board shall be entitled, but shall not be bound to prescribe a charge not exceeding
Rupee One. The Company shall comply with the provisions of Section 113 of the Act.

(b) The Board may, at any time, declare any shares/debentures wholly or in part to be exempt from
the provisions of this clause.

(c) The provisions of this Article shall mutatis mutandis apply to calls on debentures of the Company.

(d) If any Certificate be worn out, defaced, mutilated or torn or if there be no further space on the
back thereof for endorsement of transfer, then upon production and surrender thereof to the
Company, a new Certificate may be issued in lieu thereof, and if any Certificate is lost or
destroyed then upon proof thereof to the satisfaction of the Company and on the execution of such
indemnity as the Company deem adequate, being given, a new Certificate in lieu thereof shall be
given to the party entitled to such lost or destroyed Certificate. Every certificate under the Article
shall be issued without payment of fees if the Directors so decide, or on payment of such fees (not
exceeding Rs.1/- for each Certificate) as the Directors shall prescribe. Provided that no fee shall be
charged for issue of new Certificates in replacement of those which are old, defaced or worn out or
where there is no further space on the back thereof for endorsement of transfer.

Provided that notwithstanding what is stated above, the Directors shall comply with such rules or
regulations or requirements of any Stock Exchange or the rules made under the Act or the rules

450
 made under Securities Contracts (Regulation) Act, 1956 or any other Act, or rules applicable
thereof in this behalf.

The provisions of this Article shall mutatis mutandis apply to debentures of the Company.

(e) Subject to the provisions of section 111A of the Act, other applicable provisions of the act and
these Articles or any other law for the time being in force, the Board may refuse whether in
pursuance of any power of the Company under these Articles or otherwise to register the transfer
of, or the transmission by operation of law of the right to, any shares or interest of a member in or
debentures of the Company. The Company shall within one month from the date on which the
instrument of transfer, or the intimation of such transmission, as the case may be, was delivered to
Company, send notice of the refusal to the transferee and the transferor or to the person giving
such intimation of such transmission, as the case may be, giving reasons for such refusal. Provided
that the registration of a transfer shall not be refused on the grounds of the transferor being either
alone or jointly with any other persons indebted to the Company on any account whatsoever
except where the Company has a lien on shares.”

Renewal of share certificates

Article 25 provides that, “(a) No certificate of any share or shares shall be issued either in exchange for
those which are sub-divided or consolidated or in replacement of those which are defaced, torn or old,
decrepit, worn out or where the cages on the reverse for recording transfers have been duly utilised, unless
the certificate in lieu of which it is issued is surrendered to the Company. (b) When a new share certificate
has been issued in pursuance of clause (a) of this Article, it shall state on the face of it and against the stub
or counterfoil to the effect that it is "issued in lieu of share certificate No. _______ sub-divided / replaced /
on consolidation of shares." (c) If a share certificate is lost or destroyed, a new certificate in lieu thereof
shall be issued only with the prior consent of the Board and on such terms, if any, as to evidence and
indemnity and as to the payment of out-of-pocket expenses incurred by the Company in investigating
evidence, as the Board thinks fit. (d) When a new share certificate has been issued in pursuance of clause
(c) of this Article, it shall state on the face of it and against the stub or counterfoil to the effect that it is
"duplicate issued in lieu of share certificate No.____." The word "Duplicate" shall be stamped or punched
in bold letters across the face of the share certificate. (e) Where a new share certificate has been issued in
pursuance of clause (a) or clause (c) of this Article, particulars of every such share certificate shall be
entered in a Register of Renewed and Duplicate Certificates indicating against the names of the persons to
whom the certificate is issued, the number and date of issue of the share certificate in lieu of which the new
certificate is issued and the necessary changes indicated in the Register of Members by suitable cross
reference in the "Remarks" column. (f) All blank forms to be used for issue of share certificates shall be
printed and the printing shall be done only on the authority of a resolution of the Board. The blank forms
shall be consecutively machine-numbered and the forms and the blocks, engravings, facsimiles and hues
relating to the printing of such forms shall be kept in the safe custody of the Secretary or of such other
person as the Board may appoint for the purpose; and the Secretary or the other person aforesaid shall be
responsible for rendering an account of these forms to the Board. (g) The Managing Director of the
Company for the time being or, if the Company has no Managing Director, every Director of the Company
shall be responsible for the maintenance, preservation and safe custody of all books and documents relating
to the issue of share certificates except the blank forms of share certificate referred to in sub-article (f). (h)
All books referred to in sub-Article (g) shall be preserved in good order permanently.”

CALLS

Directors may make calls

Article 31 provides that, “The Board may, from time to time, subject to the terms on which any shares may
have been issued and subject to the conditions of allotments, by a resolution passed at a meeting of the
Board (and not by circular resolution) make such call as it thinks fit upon the Members in respect of all
moneys unpaid on the shares held by them respectively and each Member shall pay the amount of every

451
call so made on him to the person or persons and at the times and places appointed by the Board. A call
may be made payable by installments.”

Notice of calls

Article 32 provides that, “Fourteen days' notice in writing of any call shall be given by the Company
specifying the time and place of payment and the person or persons to whom such call shall be paid.”

Call to date from resolution

Article 33 provides that, “A call shall be deemed to have been made at the time when the resolution
authorising such call was passed at a meeting of the Board.”

Directors may extend time

Article 36 provides that, “The Board may, from time to time at its discretion, extend the time fixed for the
payment of any call and may extend such time as to all or any of the Members, the Board may deem fairly
entitled to such extension but no Member shall be entitled to such extension save as a matter of grace and
favour.”

Calls to carry interest

Article 37 provides that, “If any Member fails to pay any call due from him on the day appointed for
payment thereof or any such extension thereof as aforesaid, he shall be liable to pay interest on the same
from the day appointed for the payment thereof to the time of actual payment at such rate as shall from time
to time be fixed by the Board, but nothing in this Article shall render it obligatory for the Board to demand
or recover any interest from any such member.”

Payment in anticipation of calls may carry interest

Article 41 provides that, “(a) The Board may, if it thinks fit, subject to the provisions of Section 92 of the
Act, agree to and receive from any Member willing to advance the same, all or any part of the amounts of
his respective shares beyond the sums actually called up and upon the moneys so paid in advance or upon
so much thereof, from time to time and at any time thereafter as exceeds the amount of the calls then made
upon and due in respect of the shares on account of which such advances are made, the Board may pay or
allow interest, at such rate as the Board agreed upon. The Board may agree to repay at any time any amount
so advanced or may at any time repay the same upon giving to the Member three months' notice in writing.
Provided that moneys paid in advance of calls on any shares may carry interest but shall not confer a right
to dividend or to participate in profits. (b) No Member paying any such sum in advance shall be entitled to
voting rights in respect of the moneys so paid by him until the same would but for such payment become
presently payable. (c) The provisions of this Article shall mutatis mutandis apply to calls on debentures of
the Company.”

FORFEITURE, SURRENDER AND LIEN

If money payable on share not paid, notice to be given to Member

Article 45 provides that, “If any Member fails to pay any call or installment of a call on or before the day
appointed for the payment of the same or any such extension thereof as aforesaid, the Board may at any
time thereafter, during such time as the call or installment remains unpaid, give notice to him requiring him
to pay the same together with any interest that may have accrued and all expenses that may have been
incurred by the Company by reason of such non-payment.”

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Form or notice

Article 46 provides that, “The notice shall name a day (not being less than fourteen days from the date of
the notice) and a place or places on and at which such call or installment and such interest thereon at such
rate as the Board of Directors shall determine from the date on which such call or installment ought to have
been paid and expenses as aforesaid are to be paid. The notice shall also state that, in the event of the non-
payment at or before the time and at the place appointed, the shares in respect of which the call was made
or installment is payable, will be liable to be forfeited.”

In default of payment, shares to be forfeited

Article 47 provides that, “If the requirements of any such notice as aforesaid shall not be complied with,
every or any shares in respect of which, such notice has been given, may at any time thereafter before
payment of all calls or installments, interest and expenses due in respect thereof, be forfeited by a
resolution of the Board to that effect. Such forfeiture shall include all dividends declared or any other
moneys payable in respect of the forfeited share and not actually paid before the forfeiture.”

Forfeited share to be property of the Company and may be sold, etc.

Article 49 provides that, “Any share so forfeited shall be deemed to be the property of the Company and
may be sold, re-allotted or otherwise disposed of, either to the original holder thereof or to any other
person, upon such terms and in such manner as the Board shall think fit.”

Company to have lien on shares

Article 42 provides that, “(a) The Company shall have a first and paramount lien upon all the shares and/or
debentures (other than fully paid up shares) registered in the name of each Member (whether solely or
jointly with others) and upon the proceeds of sale thereof, for all moneys (whether presently payable or not)
called or payable at fixed time in respect of such shares and/or debentures and no equitable interest in any
shares and/or debentures shall be created except upon the footing and upon the condition that Article 23
hereof is to have full effect. Any such lien shall extend to all dividends, bonuses from time to time declared
in respect of such shares and/or debentures. Unless otherwise agreed the registration of a transfer of shares
and/or debentures shall operate as a waiver of the Company's lien, if any, on such shares and/or
debentures.”

TRANSFER AND TRANSMISSION OF SHARES

Form of transfer

Article 57 provides that, “The instrument of transfer shall be in writing and all the provisions of Section
108 of the Companies Act and of any statutory modification thereof for the time being shall be duly
complied with in respect of all transfers of shares and the registration thereof.

Directors may refuse to register transfer

Article 24 (e) provides that, “Subject to the provisions of section 111A of the Act, other applicable
provisions of the act and these Articles or any other law for the time being in force, the Board may refuse
whether in pursuance of any power of the Company under these Articles or otherwise to register the
transfer of, or the transmission by operation of law of the right to, any shares or interest of a member in or
debentures of the Company. The Company shall within one month from the date on which the instrument
of transfer, or the intimation of such transmission, as the case may be, was delivered to Company, send
notice of the refusal to the transferee and the transferor or to the person giving such intimation of such
transmission, as the case may be, giving reasons for such refusal. Provided that the registration of a transfer
shall not be refused on the grounds of the transferor being either alone or jointly with any other persons
indebted to the Company on any account whatsoever except where the Company has a lien on shares.”

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Title to shares, etc. of deceased Members

Article 62 provides that, “Where a shareholder, debenture holder or the holder of other security has not
nominated any other person pursuant to Section 109A of the Act, the executors or administrators or holders
of a Succession Certificate or the legal representatives of a deceased member (not being one of two or more
joint-holders) shall be the only persons recognised by the Company as having any title to the shares,
debenture or other securities registered in the name of such person and the Company shall not be bound to
recognise such executors or administrators or holders of a Succession Certificate or the legal
representatives unless such executors or administrators or legal representatives shall have first obtained
Probate or Letters of Administration or Succession Certificate, as the case may be, from a duly constituted
Court in the Union of India; provided that in any case where the Board in its absolute discretion thinks fit,
the Board may dispense with production of Probate or Letters of Administration or Succession Certificate,
upon such terms as to indemnity or otherwise as the Board in its absolute discretion may think necessary
and under Article 64 register the name of any person who claims to be absolutely entitled to the shares
standing in the name of a deceased Member as a Member.”

Fee on transfer or transmission

Article 66 provides that, “No fees shall be charged for registration of transfer, transmission, probate,
succession certificate and letters of administration, certificate of death or marriage, power of attorney or
similar other document.”

JOINT HOLDERS

The First name of joint holders deemed sole holder

Article 26 provides that, “If any share stands in the names of two or more persons, the person first named in
the Register shall as regards receipt of dividends or bonus or service of notices and all or any other matter
connected with the Company, except voting at meetings and the transfer of the shares, be deemed the sole
holder thereof but the joint-holders of a share shall be severally as well as jointly liable for the payment of
all installments and calls due in respect of such share and for all incidents thereof according to the
Company's regulations.”

Liability of joint-holders

Article 35 provides that, “The joint-holders of a share shall be jointly and severally liable to pay all calls in
respect thereof.”

Dividend etc. to joint-holders

Article 142 provides that, “Any one of several persons who are registered as the joint-holders of any share
may give effectual receipts for all dividends or bonus and payments on account of dividends or bonus or
other payable in respect of such shares.”

Documents or Notices

Article 157 provides that, “A document or notice may be served or given by the Company on or to the
joint-holders of a share by serving or giving the document or notice on or to the joint-holder named first in
the Register of Members in respect of the share.”

Votes of joint Members

Article 87 provides that, “If there be joint registered holders of any shares, any one of such persons may
vote at any meeting or may appoint another person (whether a Member or not) as his proxy in respect of
such shares, as if he were solely entitled thereto but the proxy so appointed shall not have any right to speak

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at the meeting and if more than one of such joint-holders be present at any meeting, that one of the said
persons so present whose name stands higher on the Register shall alone be entitled to speak and to vote in
respect of such shares, but the other or others of the joint-holders shall be entitled to be present at the
meeting. Several executors or administrators of a deceased Member in whose name shares stand shall for
the purpose of these Articles be deemed joint-holders thereof.”

Death of one or more joint-holders of shares

Article 61 provides that, “In the case of the death of any one or more of the persons named in the Register
of Members as the joint-holders of any share, the survivor or survivors shall be the only persons recognised
by the Company as having any title to or interest in such share, but nothing herein contained shall be taken
to release the estate of a deceased joint-holder from any liability on shares held by him jointly with any
other person.”

DEMATERIALIZATION OF SECURITIES

Dematerialization of Securities
Article 17 provides that, “Notwithstanding anything contained in these Articles, the company shall be
entitled to dematerialize its securities and to offer securities in the Dematerialized form pursuant to the
Depositories Act, 1996.

Definitions

1. For the purpose of the Article :

“Beneficial Owner” means a person whose names is/are recorded as such with the Depository.

“SEBI” means the Securities & Exchange Board of India.

“Act” means the Companies Act, 1956 or any further amendments thereof.

“Depository” means a Company formed and registered under the Companies Act, 1956 and which
has been granted a Certificate of Registration to act as a Depository under the Securities &
Exchange Board of India Act, 1992 and

“Security” means such Security as may be specified by the SEBI from time to time.

2. Every person subscribing to security offered by the Company shall have the option to receive
security certificate or to hold the security in a dematerialized form with a depository. Such a
person who is the beneficial owner of the Security can at any time opt out of depository, if
permitted by the Law, in respect of any security in the manner provided by the Depository Act,
1996 and the Company shall, in the manner and within the time prescribed, issue to the beneficial
owner the required certificate of securities. If a person opts to hold his security with a depository,
the Company shall intimate such depository the details of allotment of the security and on receipt
of the information, the depository shall enter in its record the name of the allottee as the beneficial
owner of the security.

3. Notwithstanding anything contained in sub section (1) of the section 113 of the Act, where the
securities are dealt with by a depository, the Company shall intimate the details thereof to the
Depository immediately on allotment of such securities.

4. All securities held by a Depository shall be dematerialized and be in fungible form. Nothing
contained in Section 153, 153A, 153B, 187B, 187C and 372A of the Act, shall apply to a
Depository in respect of the securities held by a depository. No Certificate shall be issued for the
securities held by a depository.

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5. Nothing contained in the Act or these Articles regarding the necessity of having distinctive
numbers for securities issued by the Company shall apply to securities held by a depository. No
Certificate shall be issued for the securities held by a depository.

6. Notwithstanding anything contained in these Articles, in the case of transfer or transmission of

securities where the Company has not issued any certificates and where such securities are being
held in a electronic and fungible form by a Depository, the provisions of the Depositories Act,
1996 shall apply. The Company shall not be required to maintain “Register of Transfers” for
entering particulars of transfer and transmission of Securities in dematerialized Form.

7. Notwithstanding anything contained in the Act or in these Articles, a depository shall be deemed
to be the registered owner for the purpose of effecting transfer of ownership of securities on behalf
of a beneficial owner. Save as otherwise provided hereinabove, the depository as a registered
owner shall not have any voting rights or any other rights in respect of securities held by it and the
beneficial owner shall be entitled to all the rights and benefits and be subject to all the liabilities in
respect of its securities held by a depository.

8. Except as ordered by the Court of Competent jurisdiction or as required by law, the Company
shall be entitled to treat the person whose name appears as the beneficial owner of the securities in
records of the depository as the absolute owner thereof and accordingly the Company shall not be
bound to recognize any benami, trust or equitable, contingent, future or partial interest in any
security or except only right in respect of security other than an absolute right thereto, in
accordance with these Articles on the part of any other person whether or it shall have express or
implied notice thereof.

9. Notwithstanding anything contained in the Act or these Articles, where securities are held by a
depository, the records of the beneficial ownership may be served by such depository on the
Company by means of electronic mode or by delivery of floppies or discs or any such other
means.

10. Nothing contained in Section 108 of the Act or these Articles shall apply to a transfer of securities
effected by a transferor and transferee both of whom are entered as beneficial owners in the
records of the depository.

11. Notwithstanding anything contained in the Act or these Articles, the company cal hold
investments in the name of the Depository when such investments are in the Form of securities
held by the Company as a beneficial owner.

12. The Register and Index of beneficial owners maintained by the Depository under Section 11 of the
Depository Act, 1996 shall be deemed to be the Register and Index of the members for the
purpose of the Act. The Company shall have the power to keep in any stake or country outside
India a Branch Register of Members resident in that state or country.

13. Notwithstanding anything contained in these Articles or the Act, 1996 relating to dematerialisation
of securities (including any modifications or re-enactment thereof and Rules/Regulations made
thereunder) shall prevail and apply accordingly.

GENERAL MEETINGS

Meeting not to transact business not mentioned in notice

Article 80 provides that, “No General Meeting, Annual or Extraordinary, shall be competent to enter upon,
discuss or transact any business which has not been mentioned in the notice or notices upon which it was
convened.”

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Chairman of General Meeting

Article 82 provides that, “The Chairman (if any) of the Board of Directors shall be entitled to take the chair
at every General Meeting, whether Annual or Extraordinary. If there be no such Chairman of the Directors
or if at any meeting he is not present within fifteen minutes of the time appointed for holding such meeting
or if he is unable or unwilling to take the chair then the Members present shall elect another Director as
Chairman and if no Director be present or if all the Directors present decline to take the chair, then the
Members present shall elect one of their number to be Chairman.”

Chairman with consent may adjourn meeting

Article 83 provides that, “The Chairman with the consent of the Members may adjourn any meeting from
time to time and from place to place, but no business shall be transacted at any adjourned meeting other
than the business left unfinished at the meeting from which the adjournment took place.”

VOTES OF MEMBERS

Casting of votes by a Member entitled to more than one vote.

Article 85 provides that, “On a poll being taken at a meeting of the Company a Member entitled to more
than one vote or his proxy or other person entitled to vote for him, as the case may be, need not, if he votes,
use all his votes or cast in the same way all the votes he uses.”

Voting in person or by proxy

Article 88 provides that, “Subject to the provisions of these Articles votes may be given either personally or
by proxy. A body corporate being a Member may vote either by proxy or by a representative duly
authorised in accordance with Section 187 of the Act and such representative shall be entitled to exercise
the same rights and powers (including the right to vote by proxy) on behalf of the body corporate which he
represents as that body could exercise if it were an individual member.”

Casting vote

Article 84 provides that, “The Chairman will not have a second or casting vote.”

Voting in person or by proxy

Article 88 provides that, “Subject to the provisions of these Articles votes may be given either personally or
by proxy. A body corporate being a Member may vote either by proxy or by a representative duly
authorised in accordance with Section 187 of the Act and such representative shall be entitled to exercise
the same rights and powers (including the right to vote by proxy) on behalf of the body corporate which he
represents as that body could exercise if it were an individual member.”

Proxy to vote only on a poll

Article 91 provides that, “A Member present by proxy shall be entitled to vote only on a poll.”

Appointment of proxy

Article 89 provides that, “Every proxy (whether a Member or not) shall be appointed in writing under the
hand of the appointer or his attorney or if such appointer is a body corporate under the common seal or
such corporation or be signed by an officer or any attorney duly authorised by it and any Committee or
guardian may appoint such proxy. The proxy so appointed shall not have any right to speak at the
meetings.”

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DIRECTORS

General provisions relating to Directors

Article 100 provides that, “The Directors (or his/her alternate) shall not be required to hold any
qualification Shares.”

Number of Directors

Article 98A provides that, “Unless otherwise determined by a General Meeting of the Company and subject
to the provisions of the Act, the Board shall consist of a maximum of 12 Directors.””

Nominee Director/s

Article 106 provides that, “Notwithstanding anything to the contrary contained in these Articles, so long as
any moneys remain owing by the Company to the Infrastructure Development Finance Company Limited
(IDFC), Industrial Development Bank of India (IDBI), Industrial Finance Corporation of India (IFCI), The
Industrial Credit and Investment Corporation of India Ltd. (ICICI), Life Insurance Corporation of India
(LIC), Unit Trust of India (UTI) or to any other Finance Corporation or Credit Corporation or to any other
Financing Company or Body out of any loans granted by them to the Company or so long as IDFC, IDBI,
IFCI, ICICI, LIC, UTI or any other Financing Corporation or Credit Corporation or any other Financing
Company or Body (each of which IDFC, IDBI, IFCI, ICICI, LIC, UTI or any other Finance corporation or
Credit Corporation or any other financing Company or Body is hereinafter in this Article referred to as "the
Corporation") continue to hold debentures in the Company by direct subscription or private placement or so
long as the Corporation holds shares in the Company as a result of underwriting or direct any person or
persons as a Director or Directors (which Director or Directors is/are hereinafter referred to as “Nominee
Director/s”) on the Board of the Company and to remove from such office any person or persons so
appointed and to appoint any person or persons in his or their place/s.”

Debenture Directors

Article 107 provides that, “If it is provided by the Trust Deed, securing or otherwise, in connection with
any issue of debentures of the Company, that any person or persons shall have power to nominate a
Director of the Company, then in the case of any and every such issue of debentures, the person or persons
having such power may exercise such power from time to time and appoint a Director accordingly. Any
Director so appointed is herein referred to as Debenture Director. A Debenture Director may be removed
from the office at any time by the person or persons in whom for the time being is vested the power under
which he was appointed and another Director may be appointed in his place. A Debenture Director shall no
be bound to hold any qualification shares.”

Remuneration of Directors

Article 108 provides that, “(1) Subject to the provisions of the Act, a Managing Director or Managing
Directors and any other Director/s who is/are in the whole-time employment of the Company may be paid
remuneration either by way of a monthly payment or at a specified percentage of the net profits of the
Company or partly by one way or partly by the other. (2) Subject to the provisions of the Act, a Director
other than any Director appointed under Articles 118, 119 and 120 who is neither in the whole-time
employment nor a Managing Director may be paid remuneration either: - (i) By way of monthly, quarterly
or annual payment with the approval of the Central Government, or (ii) By way of commission if the
Company by a special resolution authorised such payment. (3) The fee payable to a Director (other than
Managing/Whole-time Director/s) for attending a meeting of the Board or Committee thereof shall be such
sum as may be determined by the Board of Directors within the limits as prescribed by the Central
Government from time to time.”

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RETIREMENT AND ROTATION OF DIRECTORS

Retirement and rotation of Directors

Article 113 provides that, “At every Annual General Meeting of the Company, one third of such of the
Directors for the time being as are liable to retire by rotation or if their number is not three or a multiple of
three, the number nearest to one-third shall retire from office. The Debenture Director or any Director
appointed under Article 118 and 119 and the Managing Director for the time being, shall not be subject to
retirement under this clause and shall not be taken into account in determining the rotation of retirement or
the number of Directors to retire.”

Ascertainment of Directors retiring by rotation and filling of vacancies

Article 114 provides that, “Subject to Section 256(2) of the Act the Directors to retire by rotation under
Article 126 at every Annual General Meeting shall be those who have been longest in office since their last
appointment, but as between persons who became Directors on the same day, those who are to retire, shall,
in default of and subject to any agreement among themselves, be determined by lot.”

PROCEEDINGS OF MEETINGS OF THE BOARD OF DIRECTORS

Meetings of the Board at least once in every calendar quarter

Article 101 provides that, “The Board shall meet at least once in every calendar quarter and at least four (4)
such meetings shall be held in every year. In the event that a meeting of the Board is not held during any
calendar quarter, any Director may call a meeting of the Board by giving at ten (10) days prior notice to the
other Directors. All meetings of the Board or any committee of the Board shall be called by giving at least
seven (7) days prior notice, which notice shall be in writing and accompanied by the agenda setting out in
detail the businesses proposed to be transacted at such meeting and all relevant documents thereto. All
notices shall be sent to each of the Directors, by speed post acknowledgement due at their usual address in
India or by international courier if situated abroad, and through email as well.”

Quorum for a Board meeting

Article 103 provides that, “The quorum for a Board meeting shall be governed by the provisions of the Act.
If at a meeting of the Board (the “First Adjourned Meeting”) a valid quorum is not present, the meeting
shall be adjourned and be reconvened at a mutually agreed time and place one (1) week later by giving at
least three (3) days notice. If at such adjourned meeting (the “Second Adjourned Meeting”) a valid quorum
is not present, then the members present comprising the Board shall be a valid quorum. Provided that no
matters not already circulated as agenda for the First Adjourned Meeting, should be tabled as agenda or
discussed or passed at the Second Adjourned Meeting.”

When meeting to be convened

Article 126 provides that, “The Secretary shall, as and when directed by the Directors to do so, convene a
meeting of the Board by giving a notice in writing to every Director.”

Chairman

Article 127 provides that, “The Directors may from time to time elect from among their number, a
Chairman of the Board and determine the period for which he is to hold office. Shri Ashok M Katariya will
continue to be Chairman of the Board of Directors, so long as he continues to be a Director. If at any
meeting of the Board, the Chairman is not present within fifteen minutes after the time appointed for
holding the same, the Directors present may choose one of their number to be Chairman of the meeting.”

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POWERS OF DIRECTORS

Powers of Directors

Article 130 provides that, “The Board may exercise all such powers of the Company and do all such acts
and things as are not, by the Act or any other Act or by the Memorandum or by the Articles of the
Company required to be exercised by the Company in General Meeting only, subject nevertheless to these
Articles, to the provisions of the Act or any other Act and to such regulations being not inconsistent with
the aforesaid regulations or provisions, as may be prescribed by the Company in General Meeting; but no
regulation made by the Company in General Meeting shall invalidate any prior act of the Board which
would have been valid if that regulation had not been made. Provided that the Board shall not, except with
the consent of the Company in General Meeting : (a) sell, lease or otherwise dispose of the whole or
substantially the whole of the undertaking of the Company or where the Company owns more than one
undertaking, of the whole or substantially the whole, of any such undertaking; (b) remit or give time for the
repayment of, any debt due by a Director; (c) invest otherwise than in trust securities the amount of
compensation received by the Company in respect of the compulsory acquisition of any such undertakings
as is referred to in clause (a) or of any premises or properties used for any such undertaking and without
which it can not be carried on or can be carried on only with difficulty or only after a considerable time; (d)
borrow moneys where the moneys to be borrowed together with the moneys already borrowed by the
Company (apart from temporary loans obtained from the Company's bankers in the ordinary course of
business), will exceed the aggregate of the paid-up capital of the Company and its free reserves that is to
say, reserves not set apart for any specific purpose. Provided further that the powers specified in Section
292 of the Act shall subject to these Articles, be exercised only at meetings of the Board, unless the same
be delegated to the extent therein stated; or (e) contribute to charitable and other funds not directly relating
to the business of the Company or the welfare of its employees, any amounts the aggregate of which will,
in any financial year, exceed fifty thousand rupees or five percent of its average net profits as determined in
accordance with the provisions of Section 349 and 350 of the Act during the three financial years
immediately preceding, whichever is greater.”

Certain powers of the Board

Article 131 provides that, “Without prejudice to the general powers conferred by the last preceding Article
and so as not in any way to limit or restrict those powers and without prejudice to the other powers
conferred by these Articles, but subject to the restrictions contained in the last preceding Article, it is
hereby declared that the Directors shall have the following powers, that is to say, power: (1) To pay costs,
charges and expenses preliminary and incidental to the promotion, formation, establishment and
registration of the Company. (2) To pay and charge to the capital account of the Company any commission
or interest lawfully payable thereof under the provisions of Sections 76 and 208 of the Act. (3) Subject to
Sections 292 and 297 of the Act, to purchase or otherwise acquire for the Company any property, rights or
privileges which the Company is authorised to acquire, at or for such price or consideration and generally
on such terms and conditions as they may think fit; and in any such purchase or other acquisition to accept
such title as the Directors may believe or may be advised to be reasonably satisfactory. (4) At their
discretion and subject to the provisions of the Act to pay for any property, rights or privileges acquired by
or services rendered to the Company, either wholly or partially, in cash or in shares, bonds, debentures,
mortgages or other securities of the Company; and any such shares may be issued either as fully paid up or
with such amount credited as paid up thereon as may be agreed upon; and any such bonds, debentures,
mortgages or other securities may be either specially charged upon all or any part of the property of the
Company and its uncalled capital or not so charged. (5) To secure the fulfillment of any contract or
engagement entered into by the Company by mortgage or charge of all or any of the property of the
Company and its uncalled capital for the time being or in such manner, as they may think fit. (6) To accept
from any Member, as far as may be permissible by law, a surrender of his shares or any part thereof, on
such terms and conditions as shall be agreed. (7) To appoint any person to accept and hold in trust for the
Company any property belonging to the Company, in which it is interested or for any other purposes and to
execute and do all such deeds and things as may be required in relation to any trust and to provide for the
remuneration of such trustee or trustees. (8) To institute, conduct, defend, compound or abandon any legal

460
proceedings by or against the Company or its officers or otherwise concerning the affairs of the Company
and also to compound and allow time for payment of satisfaction of any debts due and of any claim or
demand by or against the Company and to refer any differences to arbitration and observe and perform any
awards made thereon. (9) To act on behalf of the Company in all matters relating to bankrupts and
insolvents. (10) To make and give receipts, releases and other discharges for moneys payable to the
Company and for the claims and demands of the Company. (11) Subject to the provisions of Sections 292,
295 and 372A of the Act, to invest and deal with any moneys of the Company not immediately required for
the purposes thereof upon such security (not being shares of this Company) or without security and in such
manner as they may think fit and from time to time to vary or realise such investment. Save as provided in
Section 49 of the Act, all investments shall be made and held in the Company's own name. (12) To execute
in the name and on behalf of the Company in favour of any Director or other person who may incur or be
about to incur any personal liability whether as principal or surety for the benefit of the Company such
mortgages of the Company's property (present and future) as they think fit and any such mortgage may
contain a power of sale and such other powers, provisions, covenants and agreements as shall be agreed
upon. (13) To determine from time to time who shall be entitled to sign on the Company's behalf, bills,
notes, receipts, acceptances, endorsements, cheques, dividend warrants, releases, contracts and documents
and to give the necessary authority for such purpose. (14) To distribute by way of bonus amongst the staff
of the Company a share or shares in the profits of the Company and to give to any officer or other person
employed by the Company a commission on the profits of any particular business or transaction; and to
charge such bonus or commission as part of the working expenses of the Company. (15) To provide for the
welfare of Directors or ex-Directors or employees or ex-employees of the Company and their wives,
widows and families or the dependants or connections of such persons, by building or contributing to the
buildings of houses, dwellings or chawls, or by grants of money pension, gratuities, allowances, bonus or
other payments, or by creating and from time to time subscribing or contributing to provident fund and
other associations, institutions, funds or trusts and by providing or subscribing or contributing towards
places on instruction and recreation, hospitals and dispensaries, medical and other attendance and other
assistance as the Board shall think fit; and to subscribe or contribute or otherwise to assist or to guarantee
money to charitable, benevolent, religious, scientific, national or other institutions or objects which shall
have any moral or other claim to support or aid by the Company, either by reason of locality of operation,
or of public and general utility or otherwise. (16) Before recommending any dividend, to set aside out of
the profits of the Company such sums as they may think proper for depreciation to Depreciation Fund, or to
an Insurance Fund, or as a Reserve Fund or Sinking Fund or any Special Fund, to meet contingencies or to
repay debentures, or debenture-stock, or redeemable preference shares or for special dividends or for
equalising dividends or for repairing, improving, extending and maintaining any of the property of the
Company and for such other purposes (including the purposes referred to in the preceding clause), as the
Board may, in their absolute discretion, think conducive to the interest of the Company and subject to
Section 292 of the Act, to invest the several sums so set aside or so much thereof as required to be invested,
upon such investments (other than shares of the Company) as they may think fit and from time to time to
deal with and vary such investments and dispose of and apply and expend all or any part thereof for the
benefit of the Company, in such manner and for such purposes as the Board in their absolute discretion,
think conducive to the interest of the Company, notwithstanding that the matters to which the Board apply
or upon which they expend the same, or any part thereof may be matters to or upon which the capital
moneys of the Company might rightly be applied or expended; and to divide the Reserve Fund into such
special funds as the Board may think fit, with full power to transfer the whole or any portion of a Reserve
Fund or division of a Reserve Fund and with full power to employ the assets constituting all or any of the
above funds, including the Depreciation Fund, in the business of the Company or in the purchase or
repayment of Debentures or debenture-stock and without being bound to keep the same separate from the
other assets and without being bound to pay interest on the same with power however to the Board at their
discretion to pay or allow to the credit of such funds interest at such rate as the Board may think proper.
(17) To appoint and at their discretion remove or suspend such general managers, managers, secretaries,
assistants, supervisors, clerks, agents and servants for permanent, temporary or special services as they may
from time to time think fit and to determine their powers and duties and fix their salaries or emoluments or
remuneration and to require security in such instances and to such amount as they may think fit. And also
from time to time to provide for the management and transaction of the affairs of the Company in any
specified locality in India or elsewhere in such manner as they think fit; and the provisions contained in the
four next following sub-clauses shall be without prejudice to the general powers conferred by this sub-

461
clause. (18) To comply with the requirements of any local law which in their opinion it shall in the interests
of the Company be necessary or expedient to comply with. (19) From time to time and at any time to
establish any local Board for managing any of the affairs of the Company in any specified locality in India
or elsewhere and to appoint any persons to be members of such Local Boards and to fix their remuneration.
(20) Subject to Section 292 of the Act, from time to time and at any time to delegate to any person so
appointed any of the powers, authorities and discretions for the time being vested in the Board, other than
their power to make calls or to make loans or borrow moneys and to authorise the Members for the time
being of any such Local Board or any of them to fill up any vacancies therein and to act notwithstanding
vacancies and any such appointment or delegation may be made on such terms and subject to such
conditions as the Board may think fit and the Board may at any time remove any person so appointed and
may annul or vary any such delegation. (21) At any time and from time to time by Power of Attorney under
the Seal of the Company to appoint any person or persons to be the Attorney or Attorneys of the Company,
for such purposes and with such powers, authorities and discretions (not exceeding those vested in or
exercisable by the Board under these presents and excluding the power to make calls and excluding also
except in their limits authorised by the Board the power to make loans and borrow moneys) and for such
period and subject to such conditions as the Board may from time to time think fit and any such
appointment may (if the Board thinks fit) be made in favour of the members or any of the members of any
Local Board, established as aforesaid or in favour of any company or the share holders, directors, nominees
or managers of any company or firm or otherwise in favour of any fluctuating body of persons whether
nominated directly or indirectly by the Board and any such Power of Attorney may contain such Powers for
the protection or convenience of persons dealing with such Attorneys as the Board may think fit and may
contain powers enabling any such delegates or attorneys as aforesaid to sub-delegate all or any of the
powers, authorities and discretions for the time being vested in them. (22) Subject to Section 294 and 297
of the Act, for or in relation to any of the matters aforesaid or otherwise for the purposes of the Company to
enter into all such negotiations and contracts and rescind and vary all such contracts and execute and do all
such acts, deeds and things in the name and on behalf of the Company as they may consider expedient. (23)
From time to time to make, vary and repeal bye-laws for the regulation of the business of the Company, its
officers and servants.”

Power to Borrow

Article 69 provides that, “Subject to the provisions of Sections 292 and 293 of the Act the Board may, from
time to time at its discretion by a resolution passed at a meeting of the Board accept deposits from
Members either in advance of calls or otherwise and generally raise or borrow or secure the payment of any
sum or sums of money for the purposes of the Company. Provided, however, where the moneys to be
borrowed together with the moneys already borrowed (apart from temporary loans obtained from the
Company's bankers in the ordinary course of business) exceed the aggregate of the paid up capital of the
Company and its free reserves (not being reserves set apart for any specific purpose) the Board shall not
borrow such moneys without the consent of the Company in General Meeting.”

MANAGING OR WHOLETIME DIRECTORS

Board may appoint Managing Director or Managing Directors or whole time Director or Directors

Article 122 provides that, “Subject to the provisions of the Act and of these Articles, the Board shall have
power to appoint from time to time any of its number as Managing Director or Managing Directors or
whole time Director or Directors of the Company for a fixed term not exceeding five years at a time and
upon such terms and conditions as the Board thinks fit and subject to the provisions of Article 143, the
Board may by resolution vest with such Managing Director or Managing Directors or whole time Director
or Directors such of the powers hereby vested with the Board generally as it thinks fit and such powers may
be made exercisable for such period or periods and upon such conditions and subject to such restrictions as
it may determine. The remuneration of a Managing Director may be by way of monthly payment, fee for
each meeting or participation in profits or by any or all these modes or any other mode not expressly
prohibited by the Act.”

462
DIVIDENDS

Division of profits

Article 136 provides that, “The profits of the company, subject to any special rights relating thereto created
or authorised to be created by these Articles and subject to the provisions of these Articles, shall be
divisible among the Members in proportion to the amount of capital paid-up or credited as paid-up the
shares held by them respectively.”

The Company in General Meeting may declare a dividend

Article 137 provides that, “The Company in General Meeting may declare dividends to be paid to Members
according to their respective rights, but no dividends shall exceed the amount recommended by the Board.”

Dividends in proportion to amount paid-up

Article 141 provides that, “All dividends shall be apportioned and paid proportionately to the amounts paid
or credited as paid on the shares during any portion or portions of the period in respect of which the
dividend is paid, but if any share is issued on terms providing that it shall rank for dividends as from a
particular date, such share shall rank for dividend accordingly.”

Unclaimed dividend

Article 146 provides that, “Dividends unclaimed will be dealt with according to the provisions of Sections
205A, 205B and 205C of the Companies Act, 1956.”

AUDIT

Accounts to be audited

Article 154 provides that, “Auditors shall be appointed and their rights and duties regulated in accordance
with Sections 224 to 233 of the Act.”

INDEMNITY AND RESPONSIBILITY

Directors' and Others' right of Indemnity

Article 164 provides that, “Every Officer or Agent for the time being of the Company shall be indemnified
out of the assets of the Company against all liability incurred by him in defending any proceedings,
whether civil or criminal, in which judgement is given in his favour or in which he is acquitted or
discharged or in connection with any application under Section 633 of the Act in which relief is granted to
him by the Court.”

463
 MATERIAL CONTRACTS AND DOCUMENTS FOR INSPECTION

Copies of the following contracts which have been entered or are to be entered into by the Company (not
being contracts entered into in the ordinary course of business carried on by the Company or contracts
entered into more than two years before the date of this Prospectus) which are or may be deemed material
have been attached to the copy of this Prospectus delivered to the Registrar of Companies, Maharashtra at
Mumbai for registration. Copies of the abovementioned contracts and also the documents for inspection
referred to hereunder, may be inspected at the Registered and Corporate Office of the Company located
at Survey No. 861, Ashoka House, Ashoka Marg, Vadala, Nashik, Maharashtra - 422 011.

A. Material Contracts for the Company

1. Shareholders Agreement between the Company and IDFC Infrastructure Fund 2 dated July 11,
2006.

2. Agreement between the Company and Ashoka Vastu Private Limited and Ashoka Builders
(Nasik) Private Limited dated September 15, 2001.

3. Shareholders’ Agreement between the Company and D. S. Constructions Limited dated July 14,
2006.

4. Joint Venture Agreement between the Company and Valecha Engineering Limited dated
September 1, 2005.

5. Shareholders’ Agreement between the Company and IVRCL Infrastructures and Projects Limited
dated August 14, 2001.

6. Shareholders’ Agreement between the Company, IVRCL Infrastructures and Projects Limited and
Viva Infrastructure Private Limited dated March 25, 2002.

7. Memoranda of Understanding between the Company and Infrastructure Development Finance

Company Limited dated May 26, 2006.

8. Shareholders’ Agreement between the Company and Jayaswal Holdings Private Limited dated
October 20, 1998.

9. Memorandum of Understanding entered into among VIPL, SREI Infrastructure Finance Limited,
Subhash Projects and Marketing Limited and PNC Construction Company Limited dated May 26,
2007.

10. Letter of Intent dated January 11, 2008 from IDFC Limited to provide a term loan of Rs. 2,850
million to Ashoka Highways (Bhandara) Limited for the NH-6 project.

11. Share Subscription and Shareholders’ Agreement dated April 17, 2009 between Infrastructure
Development Finance Corporation Limited, IIF, Ashoka Highways (Durg) Limited and the
Company.

12. Share Subscription and Shareholders’ Agreement dated April 17, 2009 between Infrastructure
Development Finance Corporation Limited, IIF, Viva Highway Private Limited, Ashoka
Highways (Bhandara) Limited and the Company.

13. Shareholders Agreement dated July 12, 2008 between VIPL, SREI Infrastructure Finance Limited,
Subhash Projects and Marketing Limited, PNC Construction Company Limited and Jaora-
Nayagaon Toll Road Company Private Limited.

464
B. Material Contracts to the Issue

1. Letter of Engagement dated September 8, 2009 issued by the Company for the appointment of
IDFC Capital Limited and Enam Securities Private Limited appointing them as BRLMs and
Motilal Oswal Investment Advisors Private Limited as the CBRLM.

2. Memorandum of Understanding dated September 8, 2009 between the Company, the BRLMs and
the CBRLM.

3. Memorandum of Understanding dated September 7, 2009 between the Company and the Registrar
to the Issue as amended by the letter agreement dated January 30, 2010 and a letter agreement
dated July 12, 2010.

4. Escrow Agreement dated September 20, 2010 between the Company, the BRLMs, the CBRLM,
Escrow Collection Bank and the Registrar to the Issue.

5. Underwriting Agreement dated September 29, 2010 between the Company, the BRLMs, the
CBRLM and the Syndicate Members.

6. Syndicate Agreement dated September 20, 2010 between the Company, BRLMs, the CBRLM and
the Syndicate Members.

C. Documents for Inspection

1. Certified copies of the updated Memorandum and Articles of Association of the Company as
amended from time to time.

2. Certificate of Incorporation of the Company dated May 13, 1993. Fresh Certificate of
Incorporation of the Company dated April 22, 2002.

3. Resolutions of the Board of Directors of the Company dated September 7, 2009 and August 14,
2010 in relation to this Issue and other related matters.

4. Shareholders’ resolutions dated September 7, 2009 and August 30, 2010 in relation to this Issue
and other related matters.

5. The report of M. P. Chitale & Co., Chartered Accountant, the statutory auditors, dated July 3,
2010 prepared as per Indian GAAP and mentioned in this Prospectus together with copies of
balance sheet and profit and loss account of the Company referred to therein.

6. The Statement of Tax Benefits dated July 3, 2010 from the Company’s statutory auditors.

7. Consent of the Auditors, the Directors, BRLMs, the CBRLM, the Syndicate Members, Legal
Advisors to the Issue, Registrars to the Issue, Escrow Collection Banker, Banker to the Issue,
Bankers to the Company, Company Secretary and Compliance Officer as referred to in their
specific capacities. Further, consent from the Auditors for inclusion of their reports on accounts in
the form and context in which they appear in this Prospectus.

8. Resolution of the Members passed at the Annual General Meeting held on June 24, 2010
appointing M.P. Chitale & Co., Chartered Accountant as statutory auditors for the year 2010-
2011.

9. Agreement dated May 27, 2009, Board resolution dated May 25, 2009, and Shareholders
Resolution dated June 22, 2009, in relation to the appointment and remuneration of Ashok M.
Katariya, Chairman.

465
10. Agreement dated May 27, 2009, Board resolution dated May 25, 2009, and Shareholder
Resolution dated June 22, 2009, in relation to the appointment and remuneration of Satish D.
Parakh, Managing Director.

11. Agreement dated May 27, 2009, Board resolution dated May 25, 2009, and Shareholder
Resolution dated June 22, 2009, in relation to the appointment and remuneration of Sunil B
Raisoni, Whole Time Director.

12. Certificate dated August 7, 2010 issued by Sanjay V. Goyal & Co., Chartered Accountants
regarding utilisation of funds for Katni Bypass Project.

13. Certificate dated August 10, 2010 issued by M P Chitale & Co., Chartered Accountants regarding
utilisation of funds for Pune Shirur Project.

14. Certificate dated August 10, 2010 issued by M P Chitale & Co., Chartered Accountants regarding
utilisation of funds for Ahmednagar-Karmala Road Project and Ahmednagar-Aurangabad Project/

15. Due Diligence Certificate dated September 22, 2009 and April 8, 2010 addressed to SEBI from the
BRLMs and the CBRLM.

16. In principle listing approvals dated December 11, 2009 and November 10, 2009 issued by NSE
and BSE respectively.

17. Tripartite Agreement dated March 9, 2006 the Company, NSDL and the Registrar to the Issue.

18. Tripartite Agreement dated November 3, 2007 between the Company, CDSL and the Registrar to
the Issue.

19. IPO Grading Report dated December 14, 2009 and the revalidation letter dated August 9, 2010,
both issued by CRISIL.

Any of the contracts or documents mentioned in this Prospectus may be amended or modified at any time if
so required in the interest of the Company or if required by the other parties, without reference to the
shareholders subject to compliance of the provisions contained in the Companies Act and other relevant
statutes.

466
 DECLARATION

We, hereby declare that all relevant provisions of the Companies Act, 1956 and the guidelines issued by the
Government or the regulations or guidelines issued by the Securities and Exchange Board of India
established under section 3 of the Securities and Exchange Board of India Act, 1992, as the case may be,
have been complied with and no statement made in this Prospectus is contrary to the provisions of the
Companies Act, 1956 or the Securities and Exchange Board of India Act, 1992 or Rules or regulations
made there under or guidelines issued, as the case may be. We further certify that all statements in this
Prospectus are true and correct.

SIGNED BY THE DIRECTORS OF THE COMPANY

Ashok M. Katariya
_________________________ (Chairman)

Satish D. Parakh
_________________________
(Managing Director)

Sunil B. Raisoni
_________________________
(Executive Director)

Shyam Sundar S.G.

_________________________ (Non-Executive Director)

Michael Pinto
_________________________ (Independent Director)

Milap R. Bhansali
_________________________
(Independent Director)

Anant D. Narain
_________________________
(Independent Director)

Sharad Abhyankar
_________________________
(Independent Director)

___________________________
Paresh C. Mehta
(Vice-President – Finance and Accounts)

Date: September 29, 2010

Place: Mumbai

467
 (One-time assessment) Ashoka Buildcon Limited IPO Grading Rationale

Ashoka Buildcon Limited

CRISIL IPO Grade 4/5 (Above average)
August 9, 2010

Grading summary Contacts:

CRISIL Equities has assigned a CRISIL IPO grade of ‘4/5’ (pronounced "four
on five") to the proposed IPO of Ashoka Buildcon Ltd (Ashoka). This grade Media
indicates that the fundamentals of the IPO are above average relative to the Mitu Samar
other listed equity securities in India. However, this grade is not an opinion on
Head, Market Development &
whether the issue price is appropriate in relation to the issue fundamentals.
The offer price for the issue may be higher or lower than the level justified by Communications
its fundamentals. The grade is not a recommendation to buy, sell or hold the
graded instrument, its future market price or suitability for a particular CRISIL Limited
investor. To arrive at the overall grade, amongst various other parameters,
Phone: +91-22-3342 1838
CRISIL has considered the company’s business prospects, its financial
performance, management capabilities and corporate governance practices. Mobile: +91-9820061934
Fax: +91-22-3342 3001
The IPO grade assigned to Ashoka reflects the company’s dominant position Email: msamar@crisil.com
in the build-operate-transfer (BOT) road space and its established track
record - most of its projects have been completed on time. The grading is
Analytical
supported by the strong management background with domain expertise,
proven execution capabilities in the engineering procurement construction Tarun Bhatia
(EPC) segment and Ashoka’s integrated business model. The grading factors Director – Capital Markets
in robust industry prospects driven by significant investments expected in the Phone: +91-22-3342 3226
road (Rs 6,372 bn) and power transmission and distribution (Rs 3,442 bn) 1
Email: tbhatia@crisil.com
segments over the next five years. The grading has also taken into account
the company’s strong order book of Rs 16.2 bn and healthy revenue growth
potential from the BOT segment. In addition, the company recently won two Chetan Majithia
BOT road projects worth Rs 16.4 bn from the National Highways Authority of Head, Equities
India (NHAI).
Phone: +91-22-3342 4148
However, Ashoka’s BOT (toll) projects are largely restricted to Maharashtra, Email: chetanmajithia@crisil.com
Chhattisgarh and Madhya Pradesh. Despite having the early-mover
advantage, the company has very few large projects in its portfolio. The CRISIL Limited
grading also takes into account intense competition in a highly fragmented
Phone: +91-22-3342 3000
road development market, which leads to aggressive bidding and potentially
low returns. Fax: +91-22 -3342 3501

Ashoka registered top line and net profit CAGR of 42.4% and 60.7%,
Client - servicing
respectively, from FY05 to FY10. The EPC segment contributed 69.5%,
followed by BOT (toll) and RMC segments with 20.8% and 9.8%, respectively, Client servicing
in FY10. EBITDA margin declined 390 bps y-o-y to 28% in FY10 mainly due Phone: +91-22-3342 3561
to higher contribution from the EPC segment. Ashoka reported net profit of Rs Email: clientservicing@crisil.com
859 mn on a turnover of Rs 7,975 mn, translating into a net margin of 10.8%.
It posted an EPS of Rs 17.6 during the same period, while its book value per
share was Rs 98.5. Ashoka’s return on capital employed (RoCE) and return
on equity (RoE) for the year were 10.9% and 21.3%, respectively.

August 9, 2010 Please see disclaimer on last page Page 1 of 11

 (One-time assessment) Ashoka Buildcon Limited IPO Grading Rationale

About the company

Ashoka Buildcon Private Ltd was incorporated as a private limited company on 13 May 1993. It was converted into
a public limited company on April 22, 2002 and was renamed Ashoka Buildcon Limited (Ashoka). Ashoka is in the
business of undertaking EPC contracts in roads, bridges, commercial and industrial buildings, and power
transmission and distribution (T&D) projects. Apart from building roads and bridges, it also operates them on a
BOT basis in India. It is one of the first players to enter the BOT domain in India.

Issue details
Shares offered to public Not available at the time of grading
As per cent of post issue equity Not available at the time of grading
Object of the issue x Investment in capital equipments – Rs 250 mn
x Working capital requirements – Rs 450 mn
x Prepayment / repayment of project loans – Rs 1,150 mn
x General corporate purposes – not mentioned
Amount proposed to be raised Rs 2,250 mn
Price band Not available at the time of grading
Lead managers Enam Securities Private Limited, IDFC Capital Limited, Motilal Oswal
Investment Advisors Private Limited

August 9, 2010 Please see disclaimer on last page Page 2 of 11

(One-time assessment) Ashoka Buildcon Limited IPO Grading Rationale

Detailed Grading Rationale

A. Business Prospects
x Strong industry prospects in road segment
With the government’s continued focus on road development, CRISIL Research estimates potential
investment in the road sector to amount to Rs 6,372 bn over the next five years (2010-11 to 2014-15). While
the National Highway Development Project (NHDP) attracts most of the limelight, many states have been
gradually drawing up the roadmap for public private partnership (PPP) projects. CRISIL Research expects
investment of Rs 1,940 bn in state roads over the next five years.

x Established track record and known to complete most of its BOT (toll) road projects
on time
Ashoka was one of the foremost players to move into the BOT (toll) road space, bagging its first project in
1997. Ever since, it has completed 20 road projects and 17 of them are currently operational. Most of the
company’s project executions have been on time or even before time. Early completion of a project is
beneficial to the company as it offers extended period of toll collection, thereby increasing the overall revenue
from the project.

x Proven execution capabilities in the EPC domain

The company’s core strength lies in the efficient execution of EPC projects. Most of the company’s projects
have been executed on time or prior to the scheduled completion date. So far, there have been no instances 3
of performance guarantees being invoked by clients. If the company completes the construction of a road or a
bridge before the stipulated time, it stands to earn a bonus for early completion as per the EPC contract.
Ashoka finds a mention in the Limca Books of Records for speedy completion of a 90-meter long bridge on the
Mahad-Pandharpur Highway, which was completed in 38 days (as against the scheduled time of 12 months),
while the 100-meter long Paragaon Bridge was completed in 65 days (against construction time of 18
months).

x Integrated business model with in-house traffic study expertise

Ashoka has strong in-house expertise to carry out toll projections through origin-destination analysis, forecasts
vis-à-vis competing roads, and surveys of industries and upcoming projects in the proposed road project. The
company undertakes the entire construction work on almost all of its BOT projects. It also manufactures RMC
and bitumen to monitor the quality of the raw material used.

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 (One-time assessment) Ashoka Buildcon Limited IPO Grading Rationale

BOT (toll) projects under operation

Lane Company's Project cost
Project name kilometers beneficial interest (Rs mn) Granted by Concession period
Indore - Edalabad Road project 407 86.74% 1652.88 MPRDC November 2002 - April 2017
PWD, Maharashtra
Pune - Shirur Road project 216 100.00% 1610.05 (World Bank Division) July 2005 - October 2015
Ahmednagar - Aurangabad PWD, Maharashtra May 2008 - September
Road project 168 100.00% 1026.64 (World Bank Division) 2016
PWD, Madhya February 2008 - September
Katni Bypass 35 99.89% 708.58 Pradesh 2018
PWD, Madhya
Dewas Bypass 40 100.00% 613.22 Pradesh May 2004 - August 2015
Ahmednagar - Karmala Road PWD, Maharashtra August 1999 - November
project 160 100.00% 503.51 (World Bank Division) 2015
Ministry of Road
Transport and March 2001 - February
Wainganga Bridge 26 50.00% 408.69 Highways, New Delhi 2018
Ministry of Road
Transport and
Nashirabad railway over-bridge 8 100.00% 146.97 Highways, New Delhi July 2000 - November 2010
Sheri Nallah bridge 7 100.00% 142.22 PWD, Maharashtra October 2000 - June 2015
Dhule bypass 12 99.99% 58.17 PWD, Maharashtra March 1998 - January 2011
Foot-over-bridge in Mumbai
(Godrej) N.A. 99.99% 6.61 PWD, Maharashtra April 2002 - August 2016
Foot-over-bridge in Mumbai January 2003 - August
(Priyadarshini) N.A. 99.99% 7.18 PWD, Maharashtra 2012
4
Foot-over-bridge in Mumbai
(Pravin Hotel) N.A. 99.99% 7.57 PWD, Maharashtra May 2003 - August 2017
Foot-over-bridge in Mumbai
(Tagore Nagar) N.A. 99.99% 6.6 PWD, Maharashtra July 2003 - August 2018
Foot-over-bridge in Mumbai February 2003 - August
(Louis Wadi) N.A. 99.99% 4.25 PWD, Maharashtra 2013
Foot-over-bridge in Mumbai
(Mental Hospital) N.A. 99.99% 4.79 PWD, Maharashtra July 2002 - August 2013
Anawali-Kasegaon Road 22 5.00% 73.53 PWD, Maharashtra March 2007 - May 2017
Source: DRHP
Upcoming BOT projects
Lane Company's Project cost
Project name kilometers beneficial interest (Rs mn) Granted by Concession period
NH-6 Bhandara Road 320 51.00% 5,350 NHAI September 2010 - March 2028
NH-6 Durg Bypass 332 51.00% 5,870 NHAI January 2011 - March 2028
Jaora - Nayagaon Road 319 14.47% 8,180 MPRDC February 2011 - February 2033
NH-3 Pimpalgaon-Nashik-
Gonde Road 452 26.00% 14,070 NHAI July 2012 - July 2032
NH-4 Belgaum-Dharwad Road 454 98.67% 6,300 NHAI Yet to achieve financial closure
NH-4 Sambalpur-Baragarh
Road 408 98.67% 10,080 NHAI Yet to achieve financial closure
Source: DRHP

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(One-time assessment) Ashoka Buildcon Limited IPO Grading Rationale

Order book as on May 31, 2010

Contract price Outstanding order book
Project details (Rs mn) (Rs mn)
In-house road projects
NH-6 Bhandara Road 5,400.0 208.4
NH-6 Durg Bypass 5,390.0 1,716.5
Work for Pune-Shirur and Indore-Edalabad road 164.8 139.5
Third party road projects
NH3 Pimpamgaon-Nashik-Gonde 5,853.3 5,562.2
Jaora - Nayagaon Road 4,557.0 317.9
BRTS in Bhopal City 1,319.7 1,181.7
MMRDA BKC Concrete Road 152.8 3.7
BRTS in Surat City 867.0 867.0
Integrated road for Shirdi town 93.9 93.9
Maintenance road from Phalodi to Pachpadra 84.5 60.5
EPC power
Aurangabad MSEDCL project - T8 2,679.1 810.8
Jalna MSEDCL project - T36 2,763.5 1,979.0
Karjat MSEDCL project - T52 1,315.1 807.5
Dondaicha MSEDCL project - T54 1,034.9 816.7
Dharangaon MSEDCL project - T59 1,229.5 830.0
Shahada MSEDCL project - T65 1,166.3 758.5
Total 34,071.5 16,153.7
Source: DRHP

x Foray into EPC - power T&D segment

In FY09, the company forayed into the EPC - power business and bagged contracts from Maharashtra State 5
Electricity Distribution Company Ltd (MAHADISCOM). The scope of the work includes construction and
commission of sub-transmission lines, distribution lines, power transformers and new substations. As of May
2010, it had an outstanding order book of Rs 6,002 mn related to power EPC contracts. CRISIL Research
expects capacity additions in the power sector to be around 82 GW over the next five years. In light of the
increasing focus on T&D and to reduce losses by approximately 25%, we expect investment in T&D to
increase significantly from the current ratio of around 63% of investments in generation to 70% by 2014-15.
Investment in T&D is expected to grow at a CAGR of 16% totaling Rs 3,442 bn over the next five years,
spurring large opportunities in the T&D space over the next few years.

x Geographical presence largely restricted to Maharashtra and Madhya Pradesh in BOT

(toll) projects
Ashoka’s BOT (toll) projects have largely been limited to Maharashtra and Madhya Pradesh. Out of the 17
operational BOT projects, 14 are in Maharashtra. In terms of value, Maharashtra constitutes around 57% and
Madhya Pradesh 43% of the operational BOT projects. Although Ashoka is well placed in understanding the
traffic patterns and competitive environment of both the regions, any slowdown in the awarding of road and
power T&D projects in these states might have an adverse impact. In addition, despite being one of the first
players to enter the BOT place, the company has been late in bagging NHAI projects.

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 (One-time assessment) Ashoka Buildcon Limited IPO Grading Rationale

B. Financial Performance

Ashoka had revenues of Rs 7,975 mn in FY10, registering a five-year CAGR of 42.4% in FY10. The EPC segment
contributed 69.5%, while BOT and RMC segments contributed 20.8% and 9.8%, respectively, to the top line in
FY10.

The company had an operating margin of 33% in FY09, 785 bps below FY08 margins, as the company received
bonus payments for early completion of two projects. Operating margins declined to 28% in FY10 mainly due to
higher contribution from the EPC segment. However, net margin improved to 10.8% in FY10 from 6.7% in FY09
due to lower interest expenses.

The company had an EPS of Rs 8.4 in FY09 and Rs 18.8 in FY10. RoE increased significantly from 11.4% in
FY09 to 21.3% in FY10. The gearing ratio was 2.1 times and 2.5 times in FY09 and FY10, respectively.

Financial performance snapshot*

FY06 FY07 FY08 FY09 FY10
Actual Actual Actual Actual Actual
Total income Rs mn 1,800 4,048 3,248 5,205 7,975
EBITDA Rs mn 472 1,092 1,325 1,715 2,233
Operating margins Per cent 26.2 27.0 40.8 33.0 28.0
Net profits Rs mn 32 245 368 347 859
Net margins Per cent 1.8 6.1 11.3 6.7 10.8
ROCE Per cent 6.5 10.4 9.4 10.5 10.9
6 RONW Per cent 2.2 11.4 12.4 11.4 21.3
Basic EPS Rs 5.6 5.2 8.1 8.4 18.8
Diluted EPS Rs 5.8 5.4 8.1 7.6 18.8
No. of equity shares Mn 5.6 45.7 45.7 45.7 45.7
Net worth Rs mn 1,360 2,832 3,145 3,580 4,499
Book value (FV Rs 10) Rs 242 62 69 78 98
Gearing Times 1.9 1.6 1.7 2.1 2.5
Current ratio Times 4.5 4.6 3.9 2.0 1.7
* Note: Numbers have been re-class ified as per CRISIL standards
Source: DRHP

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C. Management Capabilities and Corporate Governance

Ashoka’s promoters, Mr Ashok Katariya and Mr Satish Parakh, have been involved in the construction industry for
a fairly long time. Mr Katariya has significant ground-level experience and has worked as a contractor to the PWD
of Maharashtra. In the past, the company has executed most of its projects on time or ahead of schedule.

Ashoka has a strong and experienced second line in place. Majority of them have been associated with the
company for over a decade and have detailed domain experience in the industry. Other functional heads have
good domain expertise and are well aware of the business opportunities, their strengths and weaknesses. We feel
that the second line of management is capable and has been given adequate autonomy to take independent
decisions.

Ashoka has well-experienced independent directors on its board for the past two-three years. They have a fair
understanding of the sections of the overall business of the company. The board includes people like Mr Michael
Pinto, who has over 30 years of experience; he was CEO of Maharashtra Industrial Development Corporation,
managing director of Maharashtra State Road Development Corporation, chairman of Maharashtra State
Electricity Board and Jawaharlal Nehru Port Trust.

Since the induction of Infrastructure Development Finance Company (IDFC) in 2006, Ashoka’s board processes
and systems have evolved significantly and the company has been executing strong board practices over the past
two years. The company has 37 group companies, 21 of which are engaged in similar business activities. Although
7
there are no non-compete agreements in place, the company has not faced any actual conflicts to date.

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Annexure I
Business Profile
Ashoka undertakes EPC contracts in roads, bridges and commercial building projects. Apart from building roads
and bridges, it also operates them on a BOT basis. It recently ventured into the EPC domain for power T&D
contracts where it bagged orders from MAHADISCOM.

Company promoters, Mr Ashok Katariya and Mr Satish Parakh, and their groups currently own 84.4% of Ashoka’s
shares. This number will reduce after the IPO.

There are 17 operational road projects (1,100 lane kilometers), six road projects under construction (2,400 lane
kilometers) and third party outstanding order book of Rs 14,089 mn, which includes power T&D orders of Rs 6,002
mn. Recently, it won two projects worth Rs 16,380 mn from NHAI.

Revenue sources: FY10

RMC
10%

BOT
21%

EPC
8 69%

Source: DRHP

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Management and Board Profile

Mr Ashok Katariya is the founder member and Executive Chairman of the company. He has worked as a
contractor to the PWD, Maharashtra and has a work experience of more than 34 years. Mr Satish Parakh,
Managing Director, has over 29 years of experience in the construction industry. Other board members include Mr
Sunil Raisoni – over 26 years of experience in the civil engineering sector; and Mr Shyam Sunder – a nominee
director at IDFC Private Equity (PE) with over 12 years of experience. The key management team has an average
work experience of more than 20 years and has been with the company for over a decade on an average. The
board comprises eight directors, four of whom are independent, and one nominee director. Most of the
independent directors have been on the board for the past two-three years. Since the induction of IDFC PE in
2006, the company has been following strong board practices.

Shareholding Pattern
Pre-IPO

IDFC PE II
15%
Promoters
31%

Promoter group
54% 9

Source: DRHP

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Annexure II: Profile of the Directors

Name of Designation Age Qualification Experience Previous Employment Directorships / partnership in
Directors (years) other entities
Mr Ashok M. Executive 60 B.E. from COEP, 34+ Worked as a contractor to Directorship in 28 group
Katariya Chairman Pune University the PWD, Maharashtra companies
Mr Satish D. Managing 50 B.E. (Civil) 29+ Worked with Shapoorji Hotel Evening Inn Private Ltd and
Parakh Director Pallonji and M/s Kanitkar- 29 group companies
Kulkarni. Member of
Maharashtra Economic
Development Council
Mr Sunil B. Whole Time 48 Diploma in Civil 25+ NA Directorship in two group
Raisoni Director Engineering companies
Mr Shyam Nominee 35 B.E. (Mechanical) 12+ Worked with ICICI as an Goodearth Maritime Limited,
Sunder S. G. Director and a post investment banker and Krishna Godavari Gas Network
graduate diploma with the infrastructure Limited, Maharashtra Natural Gas
degree from IIM group. Joined IDFC Limited, SE Forge Limited,
(Kolkata) Private Equity in its Seaways Shipping Limited,
formative days Vishaka Shipbuilding Private
Limited
Mr Michael Independent 65 Masters in Public NA CEO of MIDC, MD of Gateway Distriparks (Kerala)
Pinto Director Administration MSRDC, Chairman of Private Ltd, Gateway Distriparks
Handicrafts and Limited, Healthcare Global
Handlooms Export Limited, IL&FS Limited, Raffles
Corporation of India, Port Works Private Limited, SCI
Chairman of MSEB, Forbes Limited, Tolani Shipping
Chairman of JNPT, Company Limited
Minister, Economics
10 Embassy of India
Mr Milap R. Independent 57 Chartered 32 Managing chemicals and Akruti City Bus Terminal
Bhansali Director Accountant engineering industries (Mehsana and Vadodara) Ltd,
Batuni technologies Private Ltd,
Gujarat Akruti - TCG Biotech Ltd,
MRB Credit & Leasing Ltd,
Multicity Bus Terminal (Surat) Ltd
and Multicity Bus Terminal (Surat-
Adajan) Ltd
Mr Anant D. Independent 69 B.E. 40+ Director General (Road Intercontinental Consultants and
Narain Director Development) and Technocrats Private Limited
Additional Secretary,
Ministry of Surface
Transport
Mr Sharad D. Independent 43 BA (Economics NA He is a registered patent Associated VAT Recovery
Abhyankar Director and Commerce) and trade marks attorney Consultant Pvt Ltd, Optimum
and Master of Business Solutions Ltd, S&A
Laws from Internet Services Pvt Ltd, Shree
Mumbai Dhootpapeshwar Limited, The
University Global Institute for Financial and
Educational Services India Pvt
Ltd, VATit Consultant Pvt Ltd,
Visen Industries Ltd

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Disclaimer
A CRISIL IPO grading is a one-time assessment and reflects CRISIL’s current opinion on the fundamentals of the graded equity issue in
relation to other listed equity securities in India. A CRISIL IPO grading is neither an audit of the issuer by CRISIL nor is it a credit rating.
Every CRISIL IPO grading is based on the information provided by the issuer or obtained by CRISIL from sources it considers reliable.
CRISIL does not guarantee the completeness or accuracy of the information on which the grading is based. A CRISIL IPO grading is not
a recommendation to buy / sell or hold the graded instrument; it does not comment on the issue price, future market price or
suitability for a particular investor.

CRISIL is not responsible for any errors and especially states that it has no financial liability whatsoever to the subscribers / users /
transmitters / distributors of CRISIL IPO gradings. For information on any IPO grading assigned by CRISIL, please contact ‘Client
Servicing’ at +91-22-33423561, or via email: clientservicing@crisil.com.

For more information on CRISIL IPO gradings, please visit http://www.crisil.com/ipo-gradings

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