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Notes to Accounts of Ashoka Buildcon Ltd.

Mar 31, 2023

1) Trade receivables are non interest bearing and are generally on terms of 30 to 90 days in case if sale of products and in case of long term construction contracts, payment is generally due upon completion of milestone as per terms on contract. In certain contracts, advances are received before the performance obligation is satisfied.

2) The Company applies the expected credit loss (ECL) model for measurement and recognition of impairment losses on trade receivables and contract assets. The Company follows the simplified approach for recognition of impairment allowance on trade receivables and contract assets. The application of the simplified approach does not require the Company to track changes in credit risk. Rather, it recognizes impairment allowance based on lifetime ECLs at each reporting date. ECL impairment loss allowance (or reversal) recognized during the period is recognized in the Statement of Profit and Loss. The amount is reflected under the head "Other expenses" in the Statement of Profit and Loss.

(III) Terms/rights attached to equity shares:

The Company has only one class of share capital, i.e. equity shares having face value of '' 5 per share. Each holder of equity share is entitled to one vote per share. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be proportion to the number of Equity Shares held by the shareholders.

(VII) The aggregate number of equity shares issued by way of bonus shares in immediately preceding five financial years ended March 31, 2023 - 9,35,74,406 (previous period of five years ended March 31, 2022 - 9,35,74,406).

The Board of Directors at its meeting held on May 29, 2018 proposed a bonus issue of equity shares, in the ratio of one equity share of '' 5 each for every two equity shares of the Company, held by the shareholders as on a record date. Subsequently, the shareholders approved the same and the Company issued the bonus shares on record date i.e. July 13, 2018.

Nature and purpose of Reserves Securities Premium :

Securities Premium is used to record the premium on issue of shares and utilised in accordance with the provisions of the Companies Act, 2013.

General Reserve :

General Reserve is used from time to time to transfer profits from Retained Earnings for appropriation purposes. As the General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in General Reserve will not be reclassified subsequently to Statement of Profit and Loss.

Retained Earning : Retained Earnings are the profits of the Company earned till date net of appropriation

Note 40 : Capital management

The primary objective of the Company''s capital management is to maximise the shareholder value. For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company.

Debt is defined as long-term borrowings, current maturities of long-term borrowings, short-term borrowings and interest accrued thereon (excluding financial guarantee contracts).

Capital includes equity attributable to the equity holders to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximise shareholder value. The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions or its business requirements. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes during the year ended March 31, 2023 and March 31, 2022.

In order to achieve its overall objective, the Company''s management amongst other things, aims to ensure that it meets the financial covenants attached to the borrowings. Breaches in meeting the financial covenants would permit the bank to seek action as per terms of the agreement. There have been no breaches in the financial covenants of any borrowings in the current year.

1. The management assessed that carrying amount of all financial instruments are reasonable approximation of the fair value.

2. The fair value of borrowings is estimated by discounting future cash flows, currently available for debt on similar terms, credit risk and remaining maturity.

Note 42 : Fair Value Hierarchy

The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis as of March 31, 2023:

Valuation technique used to determine fair value:

• Inputs included in Level 1 of Fair Value Hierarchy are based on prices quoted in stock exchange and/or NAV declared by the Funds.

• Inputs included in Level 2 of Fair Value Hierarchy have been valued based on inputs from banks and other recognised institutions such as FIMMDA/FEDAI.

• Inputs included in Level 3 of Fair Value Hierarchy have been valued using acceptable valuation techniques such as Net Asset Value and/or Discounted Cash Flow Method.

Note: All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy described as above, based on the lowest level input that is significant to the fair value measurement as a whole.

Note 43 : Financial risk management objectives and policies

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities.

The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework.

The Company has exposure to the following risks arising from financial instruments:

(A) Credit risk:

(B) Liquidity risk: and

(C) Market risk:

(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and loans and advances.

The Company’s customer profile include public sector enterprises, state owned companies, group companies, individual and corporates customer. General payment terms include mobilisation advance, monthly progress payments with a credit period ranging from 45 to 90 days and certain retention money to be released at the end of the project. In some cases retentions are substituted with bank/corporate guarantees. The Company has a detailed review mechanism of overdue customer receivables at various levels within organisation to ensure proper attention and focus for realisation.

Credit risk on trade receivables and unbilled work-in-progress is limited as the customers of the Company mainly consists of the government promoted entities having a strong credit worthiness. The provision matrix takes into account available external and internal credit risk factors such as companies historical experience for customers.

Impairment allowance on Doubtful debts / Doubtful advances : The provisions are made against Trade receivable/Advances based on "expected credit loss" model as per Ind AS 109.

Management believes that the unimpaired amounts which are past due are collectible in full.

Cash and cash equivalents

Cash and cash equivalents (excluding cash on hand) of ? 5,641.41 Lakhs at March 31, 2023 (March 31, 2022: ? 3,855.56 Lakhs) The cash and cash equivalents (excluding cash on hand) are held with bank and financial institution counterparties with good credit rating.

Bank Balances other than Cash & cash equivalents

Bank Balances other than Cash and cash equivalents of ? 12,989.05 Lakhs at March 31, 2023 (March 31, 2022: ? 10,521.66 Lakhs). The Bank Balances other than cash and cash equivalents are held with bank and financial institution counterparties with good credit rating.

Investments & Loan

Investments & Loan are with only group company in relation to the project execution which are closely monitored to avoid any impairment risk on there investment / loans.

(B) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company manages liquidity risk by maintaining sufficient cash and marketable securities and by having access to funding through an adequate amount of committed credit lines. Management regularly monitors the position of cash and cash equivalents vis-a-vis projections. Assessment of maturity profiles of financial assets and financial liabilities including debt financing plans and maintenance of Balance Sheet liquidity ratios are considered while reviewing the liquidity position.

Note 45 : Leases

Disclosures pursuant to Ind AS 116 "Leases"

The Company applied the available practical expedients wherein it:

• Used a single discount rate to a portfolio of leases with reasonably similar characteristics

• Relied on its assessment of whether leases are onerous immediately before the date of initial application

• Applied the short-term leases exemptions to leases with lease term that ends within 12 months of the date of initial application

• Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application

• Used hindsight in determining the lease term where the contract contained options to extend or terminate the lease

• Applied the standard only to contracts that were previously identified as leases applying Ind AS 17 at the date of initial application.

The Company has lease contracts for various items of plant, machinery, land, building, vehicles and other equipment used in its operations. Leases of land generally have lease terms between 1 to 80 years, while Building, Plant and machinery, motor vehicles and other equipment generally have lease terms between 1 and 5 years. Generally, the Company is restricted from assigning and subleasing the leased assets.

The Company has elected not to apply the requirements of Ind AS 116 to short term leases of all the assets that have a lease term of twelve months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases are recognized as an expense on a straight line basis over the lease term.

The Company had total cash outflows for leases of '' 536.69 Lakhs for the year ended March 31, 2023 (March 31, 2022 : '' 538.02 Lakhs)

Refer Note 2A for additions to right-of-use assets and the carrying amount of right-of-use assets as at March 31, 2023.

The effective interest rate for lease liabilities is 10%,

The maturity analysis of lease liabilities are disclosed in Note 43(b).

(i) Gratuity

The Company operates one defined plan of gratuity for its employees. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure @ 15 days of last drawn salary for each completed year of service. 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.

Note 48 : Segment Reporting

As permitted by paragraph 4 of Ind AS 108, "Operating Segments", notified under section 133 of the Companies Act, 2013, read together with the relevant rules issued thereunder, if a single financial report contains both consolidated financial statements and the Separate financial statements of the parents, segment information need to be presented only on the basis of the consolidated financial statements. Thus disclosures regarding Operating segment is not presented in Standalone Financial Statements.

Nature of Provisions:

i. Provision for Defect Liability Period : The Company provides for contractual obligations to periodically service, repair or rectify any defective work during the defect liability period as well as towards contractual obligations to restore the infrastructure at periodic intervals. Provision made as at March 31, 2023 represents the amount of the expected estimated cost of meeting such obligations of repair/rectification.

ii. Provision for Schedule Maintenance : Provision for Schedule Maintenance represents the estimated cost that the Company is likely to incur during concession period as per the contract obligations in respect of completed construction contracts accounted under Ind AS 115 “Revenue from Contracts with Customers”.

Note 51 : Contingent liabilities and Commitments (to the extent not provided for)

('' In Lakhs)

Sr. No.

Particulars

As at

31-Mar-23

As at

31-Mar-22

(i)

Contingent liabilities

a

Bank Guarantees Issued:

i) on behalf of Group Companies for compliance with Debt Service Reserve account and Major Maintenance Reserve account

7,665.34

16,278.33

ii) to third party for deposit held other than relating to performance

5.00

5.00

b

Claims against the Company not acknowledged as debts

416.62

311.06

c

Taxation matters:

i) Income Tax (Refer Note below)

7,714.21

7,666.12

ii) Sales Tax

14,521.77

11,906.65

iii) Custom Duty

-

39.18

iv) Service Tax

-

71.06

v) GST

270.44

310.28

vi) Others (Labour Cess)

587.00

587.00

Total:

31,180.38

37,174.68

(ii)

Commitments:

i) Capital Commitment

41.90

34.56

ii) Funding Commitment towards Group Companies

16,952.30

33,809.20

Total:

16,994.20

33,843.76

Total

48,174.58

71,018.44

Note: During the year ended March 31, 2018, pursuant to the search proceedings carried out in April 2016, the Company had received income tax assessment orders under section 153A for the financial year 2010-11 to 2016-17. Income tax authorities had disallowed certain sub-contractors payments by treating them as not genuine. The Company had the underlying documents to substantiate the genuineness of the work performed by these sub-contractors and no incriminating documents were found during the search proceedings. Accordingly, the Company had filed appeals against these assessment orders before the first appellate authority. Accordingly, as the outcome of the appeal is pending, additional tax payable for these years amounting to 5,924.01 Lakhs (including interest) is treated as contingent liability.

Note 52 : Other Matter

During the last week of September 2022, a law enforcement agency (CBI) arrested four persons in the Patna region, including two National Highway of Authority India (NHAI) officials and two officials of the Company in an alleged bribery case. The law enforcement agency also conducted searches at the residences of the Company officials and the Patna office of the Company and had confiscated cash amounting to '' 6.43 lakhs from the Patna office which was reflected in the books and has been considered as recoverable in the accompanying standalone financial statements. The employees of the Company have been released on bail subsequent to year end.

Further on March 2, 2023 the Ministry of Road Transport and Highways, Government of India (MoRTH) debarred the Company for 45 days from participating in any bids with NHAI or MoRTH. The said period of debarment was completed on April 15, 2023 and the Company is now eligible to participate in the bids.

The Company is currently performing a review of the matter and exploring all possible legal remedies available. Pending, the outcome of the Company’s review and investigation of the regulatory authorities, impact of the said matter is currently not ascertainable and would be dependent on the outcome of the investigation. Accordingly, no adjustments have been made to the standalone financial statements in this regard.

Note 59: Ashoka Concessions Limited (ACL), a subsidiary company, had issued Compulsorily Convertible Debentures (CCD) to its investors and to the Company (Parent) which has been classified as equity instrument in the separate financial statements of ACL. The Company has agreed additional terms with the investors and assumed obligations towards investors which would be settled through the some portion of equity shares to be received from ACL on conversion of CCDs held by parent Company. Accordingly the said obligations has been recognised at its fair value as at March 31, 2023 amounting to '' 38,400 Lakhs (March 31, 2022 -'' 42,400 Lakhs).

Note 60: Exceptional Items:

a) Pursuant to the SSPA entered by ACL in previous year with respect of sale of five of its wholly owned subsidiaries as mentioned in point 61 (iii) below , the Company had recorded an impairment on its investment in ACL and remeasured its obligation towards Investors in ACL and had accordingly recognised an expense of '' 76,960.00 lakhs (impairment of investment in ACL '' 32,718.17 lakhs, impairment of asset held for sale '' 1,900 lakhs, write off accrued interest of ''20,681.83 lakhs on loans given and remeasurement of obligation towards investors in ACL '' 21,660 lakhs).

During the current year, the Company has recorded reversal of impairment on its investment in ACL and reversal of obligation towards investor in ACL amounting to '' 36,718.17 lakhs due to increase in valuation of ACL mainly on account of increased cash flow in its Hybrid Annuity Mode (HAM) projects consequent to increase in interest receivable on annuity payments .

Further, the Company has recorded impairment on loans / other financial assets given to certain subsidiaries amounting to ''1,803.03 lakhs (impairment on loans '' 1,632.92 lakhs and on other financial asset '' 167.11 lakhs).

Note 61: Assets Held for Sale :

i) During the year, the Company has entered into a Share Purchase Agreement (“SPA”) with Mahanagar Gas Limited (“MGL”) for the sale of its stake in Unison Enviro Private Limited (“UEPL”), a subsidiary of the Company, subject to certain adjustments as specified in SPA. Pursuant to the said SPA, the investments made in the subsidiary is classified as held for sale.

ii) During the previous year, the Company had initiated the sale of its investment in GVR Ashoka Chennai ORR Limited (a joint venture of the Company) for which Share Purchase Agreement (SPA) with the buyer has been signed in the current year, subject to certain adjustments specified in SPA towards its equity investments, loans given and other receivables from the said joint venture.

iii) The Company and Ashoka Concessions limited (‘ACL’) intend to divest their entire stake in the subsidiaries, engaged in construction and operation of Road Projects on Hybrid Annuity Mode (HAM). Considering, high probability of the sale getting completed in next 12 months, the assets and liabilities of these subsidiaries (completed projects) are classified as held for sale.

iv) During the previous year, ACL had entered into Share Subscription cum Purchase agreements (“SSPA”) for sale of its stake in five of its wholly owned subsidiaries namely Ashoka Belgaum Dharwad Tollway Limited (‘ABDTL’), Ashoka Highways (Durg) Limited (‘AHDL’), Ashoka Highways (Bhandara) Limited (‘AHBL’), Ashoka Dhankuni Kharagpur Tollway Limited (‘ADKTL’), Ashoka Sambalpur Baragarh Tollway Limited (‘ASBTL’), subject to requisite approvals and adjustment on account of changes in working capital as at closing date. Accordingly, the investments and loan given to these entities were classified as assets held for sale.Subsequent to the year end, ACL and the Investor have mutually agreed to terminate the SSPAs. Management is committed to sell these assets and believes that it continues to meet the definition of asset held for sale.

v) During the year, the subsidiaries of the Company being Ashoka Concessions Limited (‘ACL’) and Viva Highways Limited (‘VHL’) entered into a Share Purchase Agreement (SPA) for sale of 100% stake in Jaora Nayagaon Toll Road Company Private Limited (‘JTCL’) (a step-down subsidiary of the Company), subject to certain adjustments as specified in SPA towards its equity investments and loans taken from JTCL and acquiring the balance stake from other shareholders of JTCL. Pursuant to the said SPA, the assets and liabilites in realtion to JTCL is classified as held for sale.

Note 62: The Code on Social Security, 2020

The Code on Social Security 2020 (''Code'') has been notified in the Official Gazette on 29th September, 2020.The Code is not yet

effective and related rules are yet to be notified. Impact if any of the change will be assessed and recognized in the period in which

said Code becomes effective and the rules framed thereunder are notified.

Note 63: Other Statutory Information

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

2. The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 (as amended).

3. The Company has neither traded nor it holds any investment in Crypto currency or Virtual Currency.

4. The Company has not received any fund from any persons or entities, including foreign entities (Funding Party) with the

understanding (whether recorded in writing or otherwise) that the Company shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries), or

(b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

5. The Company does not have any transaction which is not recorded in the books of accounts but has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

6. The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.

7. The quarterly returns or statements of Current assets filed by the Company with the banks or financial institutions are in

agreement with the books of accounts.

8. The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period. Note 64: Events after reporting period

There were no significant adjusting events that occurred subsequent to the reporting period other than the events disclosed in the relevant notes.

Note 65: Previous year comparatives

Previous year''s figures have been regrouped/reclassified, wherever necessary, to conform to current year classification.


Mar 31, 2018

Note: Number of units in brackets denotes number of units for the year ended March 31, 2017_

(i) In one of the subsidiary companies, viz. Ashoka Infrastructure Limited toll collection has been discontinued at the directive of the Employer, The subsidiary Company has initiated arbitration proceeding towards such discontinuance. The subsidiary is confident of receiving additional compensation from the employer. Further, The subsidiary has started venturing into real estate business, Consequently the value of investment of the Company in the subsidiary continues to be at its full value.

(ii) The Company has entered into various Joint arrangements for execution of various projects. Which are classified as Joint operations or Joint ventures, as under :_

@ The Ashoka Brideways reflects credit balance due to the partnership firm , the balance amount payable is reflected as ''Other Payable''

(iv) The company has initiated a transaction of sale of Equity shares in GVR Ashoka Chennai ORR Ltd. to one of its subsidiary company. The Company has received an advance of '' 11,701.25 Lakh against such sale. The lead banker of GVR Ashoka Chennai ORR Ltd. has currently declined to give consent for transfer of such shares. Consequently, since the said transaction does not seem a ''Highly Probable'' sale transaction, the aforesaid Investment in GVR Ashoka Chennai ORR Ltd. has not been disclosed as ''Non-Current Asset Held for Sale''.

(III) Terms/rights attached to equity shares:

The Company has only one class of share capital, i.e., equity shares having face value of '' 5 per share. Each holder of equity share is entitled to one vote per share., In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be proportion to the number of Equity Shares held by the shareholders.

Note:

The shareholding of the above shareholders (*) was more than 5 % in FY 15-16, but holding in FY 16-17 and FY 17-18 has fallen below 5 %. Hence, Number of shares held by those shareholders for FY 16-17 and FY 17-18 has not been disclosed.

(VI) The aggregate number of equity shares issued by way of bonus shares in immediately preceding five financial years ended March 31, 2018 - 5,26,51,030 (previous period of five years ended March 31, 2017 - 5,26,51,030)

The Board has recommended issue of One (1) equity shares as bonus for every Two (2) equity share of '' 5/- held on record date, subject to approval of shareholder.

Nature and purpose of Reseves Securities Premium Reserve :

Securities Premium Reserve is used to record the premium on issue of shares and utilised in accordance with the provisions of the Companies Act, 2013.

General Reserve :

General Reserve is used from time to time to transfer profits from Retained Earnings for appropriation purposes. As the General Reserve is created by a transfer from one component of equity to another and is not an item of other compressive income, Items included in General Reserve will not be reclassified subsequently to statement of profit and loss.

Debenture Redemption Reserve :

The Company is required to create a Debenture Redemption Reserve out of the profits which are available for payment of Dividend and for the purpose of Redemption of Debenture.

Retained Earning :

Retained Earnings are the profit of the Company earned till date net of appropriation.

Note 36 : Capital management

The primary objective of the Company''s capital management is to maximise the shareholder value. For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company.

Debt is defined as long-term borrowings, current maturities of long-term borrowings, short-term borrowings and interest accrued thereon (excluding financial guarantee contracts).

Capital includes equity attributable to the equity holders to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximise shareholder value. The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions or its business requirements. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. No changes were

Note: All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy described as above, based on the lowest level input that is significant to the fair value measurement as a whole.

Note 39 : Financial risk management objectives and policies

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities.

The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company has exposure to the following risks arising from financial instruments:

(A) Credit risk:

(B) Liquidity risk: and

(C) Market risk:

(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and loans and advances.

The Company’s customer profile include public sector enterprises, state owned companies, group entities, individual and corporate customer. General payment terms include mobilisation advance, monthly progress payments with a credit period ranging from 45 to 90 days and certain retention money to be released at the end of the project. In some cases retentions are substituted with bank/ corporate guarantees. The Company has a detailed review mechanism of overdue customer receivables at various levels within organisation to ensure proper attention and focus for realisation.

Credit risk on trade receivables and unbilled work-in-progress is limited as the customers of the Company mainly consists of the government promoted entities having a strong credit worthiness. The provision matrix takes into account available external and internal credit risk factors such as Company''s historical experience for customers.

Impairment allowance on Doubftful debts / Doubftul advances : The provisions are made against Trade receivable/Advances based on "expected credit loss" model as per Ind AS 109.

Management believes that the unimpaired amounts which are past due are collectible in full.

Cash and cash equivalents

Cash and cash equivalents (excluding cash on hand) of '' 8,989.12 lakh at March 31, 2018 (March 31, 2017: '' 2,820.36 lakh. The cash and cash equivalents (excluding cash on hand) are held with bank and financial institution counterparties with good credit rating.

Bank Balances other than Cash & cash equivalents

Bank Balances other than Cash and cash equivalents of '' 3,304.26 lakh at March 31, 2018 (March 31, 2017: '' 3,493.08 lakh). The Bank Balances other than cash and cash equivalents are held with bank and financial institution counterparties with good credit rating.

Investments & Loan

Investments & Loan are with only group company in relation to the project execution hence the credit risk is very limited.

(B) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company manages liquidity risk by maintaining sufficient cash and marketable securities and by having access to funding through an adequate amount of committed credit lines. Management regularly monitors the position of cash and cash equivalents vis-a-vis projections. Assessment of maturity profiles of financial assets and financial liabilities including debt financing plans and maintenance of Balance Sheet liquidity ratios are considered while reviewing the liquidity position.

(C) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk:

i. Currency risk

ii. Interest rate risk

iii. Other price risk such as Commodity risk and Equity price risk.

The following table summarises the carrying amount of financial assets and liabilities recorded at the end of the year by categories:

i. Currency risk

The Company has several balances in foreign currency and consequently the Company is exposed to foreign exchange risk. The exchange rate between the rupee and foreign currencies has changed substantially in recent years, which has affected the results of the Company, and may fluctuate substantially in the future. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

The following table analysis foreign currency risk from financial instruments:

The sensitivity analyses in the following sections relate to the position as at March 31, 2018, March 31, 2017 and April 1, 2016

The following table details the Company’s sensitivity to a '' 1/- increase and decrease in the '' against the relevant foreign currencies. Sensitivity indicates Management’s assessment of the reasonable possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a '' 1 change in foreign currency rates.

Interest Rate Risk

As infrastructure development and construction business is capital intensive, the Company is exposed to interest rate risks. The Company''s infrastructure development and construction projects are funded to a large extent by debt and any increase in interest expense may have an adverse effect on our results of operations and financial condition. The Company current debt facilities carry interest at variable rates with the provision for periodic reset of interest rates. As of March 31, 2018, the majority of the Company indebtedness was subject to variable/fixed interest rates.

The interest rate risk exposure is mainly from changes in floating interest rates. The interest rate are disclosed in the respective notes to the financial statement of the Company. The following table analysis the breakdown of the financial assets and liabilities by type of interest rate:

Note 40 : Ind AS 11 - Accounting for Construction Contracts

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. For the purpose of determining percentage of work completed, estimates of contract cost and contract revenue are used.

Note 42 : Leases

Disclosures pursuant to Ind AS 17 "Leases"

(a) The Company has taken various commercial premises and plant and equipment under cancellable operating leases.

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 '' 362.85 Lakh (Previous Period '' 290.30 Lakh) has been charged to the Profit & Loss Account on account of this defined contribution scheme.

(b) Defined benefit plan

The following amount recognized as an expense in Statement of profit and loss on account of Defined Benefit plans.

(i) Gratuity

The company operates one defined plan of gratuity for its employees. Under the gratuity plan, every employee who has completed atleast five years of service gets a gratuity on departure @ 15 days of last drawn salary for each completed year of service. 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.

The following tables summaries the components of net benefit expense recognised in the Statement of profit and loss and the funded status and amounts recognised in the balance sheet for the gratuity plan:

Note 44 : Related Party Disclosures_

1. Name of the Related Parties and Description of Relationship:_

Nature of Relationship_Name of Entity_

Wholly Owned Subsidiaries__1) Ashoka Infrastructure Ltd_

2) Ashoka Infraways Ltd

3) Viva Highways Ltd

4) Ashoka Technologies Pvt. Ltd.

5) Ashoka Cuttak Angul Tollway Ltd

6) Viva Infrastructure Ltd.

7) Ashoka Highways Reseach Centre Pvt Ltd

8) Ashoka Bagewadi Saundatti Road Ltd

9) Ashoka Hungund Talikot Road Ltd

10) Ashoka Path Nirman (Nashik) Pvt.Ltd

11) Unison Enviro Pvt Ltd

12) Ashoka Aerospace Pvt Ltd.

13) Ashoka Highway Ad.

Subsidiaries__1) Ashoka-DSC Katni Bypass Road Ltd_

2) Ashoka Pre-Con Pvt Ltd.

3) Ashoka Concessions Ltd

4) Ashoka GVR Mudhol Nipani Roads Ltd

5) Jaora Nayagaon Toll Road Co. Pvt.Ltd

Stepdown Subsidiaries__1) Ashoka Highways (Bhandara) Ltd_

2) Ashoka Highways (Durg) Ltd

3) Ashoka Sambalpur Baragarh Tollway Ltd

4) Ashoka Belgaum Dharwad Tollway Ltd

5) Ashoka Dhankuni Kharangpur Tollway Ltd

6) Ashoka Kharar Ludhiana Road Ltd

7) Ashoka Ranastalam Anandpuram Road Ltd.

8) Blue Feather Infotech Pvt. Ltd.

9) Ratnagiri Natural Gas Pvt. Ltd.

10) Endurance Road Developers Pvt. Ltd.

11) Tech Berater Pvt Ltd

Associates__1) Abhijeet Ashoka Infrastructure Pvt Ltd_

_2) PNG Tollway Ltd_

Joint Ventures__1) ABL BIPL JV_

2) GVR Ashoka Chennai ORR Ltd

3) Ashoka Bridgeways

Joint Operations__1) Ashoka Infrastructures_

2) Mohan Mutha Ashoka Buildcon LLP

Key Managerial Personnel 1) Ashok M Katariya (Chairman)

2) Satish D Parakh (Managing Director)

3) Sanjay P Londhe (Whole Time Director)

4) Milapraj Bhansali (Whole Time Director)

5) Paresh C Mehta (Chief Financial Officer)

6) Manoj A. Kulkarni ( Company Secretary)

Independent Director__1) Gyan Chand Daga (Non-Executive Director)_

2) Michael Pinto (Non-Executive Director)

3) Sharadchandra Abhyankar (Non-Executive Director)

4) Albert Tauro (Non-Executive Director)

5) Sunanda Dandekar (Non-Executive Director)

Relatives of Key Managerial Personnel 1) Asha A. Katariya (Wife of Ashok M Katariya)_

with whom transactions have taken 2) Ashish A. Katariya (Son of Ashok M Katariya)_

place during the year_3) Astha A. Katariya (Daughter In Law of Ashok M Katariya)

4) Shewta K. Modi (Daughter of Ashoka M Katariya)

5) Satish D Parakh (HUF) (HUF of Satish D Parakh)

6) Shobha Satish Parakh (Wife of Satish D Parakh)

7) Aditya S. Parakh (Son of Satish D Parakh)

8) Snehal Manjit Khatri (Daughter of Satish D Parakh)

Promoter Group__1) Ashoka Township_

2) Hotel Evening Inn Pvt Ltd

3) Ashoka Education Foundation

4) Ashoka Institute of Medical Sciences & Research

5) Ashoka Builders (Nashik) Pvt Ltd

6) Ashoka Biogreen Pvt Ltd

7) Ashoka Buildwell & Developer Pvt Ltd

8) Ashoka Construwell Pvt Ltd

9) Ashoka Industrial Park Pvt Ltd

10) Precrete Technologies Pvt Ltd

11) Ashoka Universal Academy Pvt Ltd

12) Shweta Agro Farm

Note 45 : Segment Reporting

As permitted by paragaraph 4 of Ind AS 108, "Operating Segments", notified under section 133 of the Companies Act, 2013, read together with the relevant rules issued thereunder, if a single financial report contains both consolidated financial statements and the Separate financial statements of the parents, segment information need to be presented only on the basis of the consolidated financial statements. Thus disclosures regarding Operating segment is not presented in Standalone Financial Statements.

Note 46 : Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for year attributable to equity holders by the weighted average number of Equity shares outstanding during the year.

The following reflects the income and share data used in the basic and diluted EPS computations:

Nature of Provisions

i. Provision for DLP : The Company gives warranties on certain products and services, undertaking to repair the defect or replace the items that fail to perform satisfactorily during the warranty period. Provision made as at March 31, 2018 represents the amount of the expected estimated cost of meeting such obligations of rectification/replacement.

ii. Provision for Schedule Maintance : Contractual resurfacing cost represents the estimated cost that the Company is likely to incur during concession period as per the contract obligations in respect of completed construction contracts accounted under Ind AS 11 “Construction Contracts”.

iii. Provision for Onerous Contract: The provision for onerous contract represents the value of expected losses recoganised in accordance with Ind AS 37 on few onerous project.

Notes :

1. Ashoka Concessions Limited (ACL), a subsidiary company, had issued Compulsorily Convertible Debentures (CCD) to its investors and to the Company (Parent) which has been classified as equity instrument in the separate financial statements of ACL. The Company has agreed additional terms with the investors and assumed obligations towards investors which would be settled through the some portion of equity shares to be received from ACL on conversion of CCDs held by parent Company. During the current year, the Company has reviewed the said accounting treatment and recorded these obligations at its fair value as at April 1, 2016 amounting to '' 13,700 Lakhs and as at March 31, 2017 amounting to '' 15,400 Lakhs, the corresponding impact has considerd in the ‘Other equity’.

The impact recorded in the statement of profit and loss account for the year ended March 31, 2017 amounting to '' 1,700 Lakhs.

2. The Company has recorded deferred tax assets (net) as at April 1, 2016 amounting to Rs. 340.01 Lakhs and March 31, 2017 amounting to Rs, 1,253.00 Lakhs, resulting the charge of Rs, 913.00 Lakhs in the statement of profit and loss account for the year ended March 31, 2017.

3. The company has reclassified retention money receivable after one year from ‘Current Trade receivables’ to ‘Non Current Trade receivables’ amounting to Rs, 13,000.39 Lakhs and Rs, 18,479.44 Lakhs as at 31st March, 2017 and 1st April, 2016, respectively.

4. The Company has reclassifed Unbilled revenue from ‘Non Current assets’ to ‘Non Current Other financial assets’ amounting to '' 1.024.38 Lakhs as at March 31, 2017 and '' 1,399.48 Lakhs as at April 1, 2016.

Further, the Company has also reclassified advance given for shares purchase (GVR Infra Projects Limited) amounting to '' 2,112.27 from ‘Other Current assets’ to ‘Non current financials assets’ as at March 31, 2017.

5. The Company has reclassified Unbilled revenue from ‘Inventories’ to ‘Current financial assets’ amounting to '' 84,402.20 Lakhs and '' 77,370.83 Lakhs as at March 31, 2017 and as at April 1, 2016, respectively.

6. The company has reclassified Provision for expenses from ‘Other current financial assets’ to ‘Trade payable current’ amounting to '' 4164.77 Lakhs and '' 3,661.33 Lakhs as at 31st March, 2017 and April 1, 2016, respectively.

7. Value Added Tax (VAT) collected from the Customer was included in ‘Revenue from operation’ has now been netted off against the corresponding VAT payments (expense) made by the Company.

Note 8:The Company was subject to search under 132 of the Income Tax Act,1961 in the month April,2016. The Income Tax Department had issued notices u/s 153A to file revised return for last six years in the month of January, 2017. Ashoka Buildcon Ltd filed revised return u/s 153A under protest in the month of March, 2017 claiming some additional expenditure and deduction based on recent judgments pronounced, subject to these additional deduction there is no change in return of Income as was filed in original return of Income of respective years.

Note 9 :Ashoka Concessions Limited (ACL), a subsidiary company, had issued Compulsorily Convertible Debentures (CCD) to its investors and to the Company (Parent) which has been classified as equity instrument in the separate financial statements of ACL. The Company has agreed additional terms with the investors and assumed obligations towards investors which would be settled through the some portion of equity shares to be received from ACL on conversion of CCDs held by parent Company. Accordingly the said obligations has been recognised at its fair value as at April 1, 2016, March 31, 2017 and March 31, 2018 amounting to '' 13,700 Lakhs, '' 15,400 and '' 17,400 Lakhs respectively.

Note 10 : Events after reporting period

No subsequent event has been observed which may required on adjustment to the balance sheet.

Note 11 : Previous year comparatives

Previous year''s figures have been regrouped/reclassified, wherever necessary, to conform to current year classification.


Mar 31, 2017

1. First-time adoption of Ind AS

These standalone financial statements of the Company for the year ended March 31, 2017 have been prepared in accordance with Ind AS. For the purposes of transition to Ind AS, the Company has followed the guidance prescribed in Ind AS 101, First-Time Adoption of Indian Accounting Standards, with April 1, 2015 as the transition date and IGAAP as the previous GAAP.

The transition to Ind AS has resulted in changes in the presentation of the financial statements, disclosures in the notes thereto and accounting policies and principles. The accounting policies set out as above have been applied in preparing the standalone financial statements for the year ended March 31,2017 and the comparative information.

An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s Balance Sheet and Statement of Profit and Loss, is set out in Note no. 51 and Exemptions on the first-time adoption of Ind AS availed in accordance with Ind AS 101 have been set out below.

2. Exemptions and Exceptions availed on first-time adoption of Ind AS

a. Derecognition of financial assets and financial liabilities The Company has elected to apply derecognition requirements for financial assets and financial liabilities in Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS.

b. Classification and measurement of financial assets

The Company has classified financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist at the date of transition to Ind AS.

c. Use of Deemed Cost

The Company has elected to continue with the carrying value of all of its Property, Plant and Equipment and other intangible assets (software) recognized as at April 01, 2015 measured as per the previous GAAP and use that carrying value as the deemed cost of the Property, Plant and Equipment.

The Company has elected to carry its Intangible Assets Under Service concession Arrangements recognized as at April 01, 2015 measured as per cost model prescribed under Ind AS, hence cost of such assets is recomputed as per Ind AS.

The Company has elected to continue the policy of revenue based Amortization on toll road assets under service concession arrangements recognized in the financial statements for the period ending immediately before the beginning of the first Ind AS financial reporting period as per the previous GAAP.

d. Investments in Subsidiaries, Joint Ventures and associates

In Standalone Financial Statements, the Company has measured investments at deemed cost i.e. the previous GAAP carrying amount at the date of transition.

e. Estimates

An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates are based on conditions/information that existed at the date of transition to Ind AS i.e. April 01 2015 and are consistent with the estimates as at the same date made in conformity with previous GAAP. The company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Investment in equity instruments carried at FVTPL or FVOCI;

- Impairment of financial assets based on expected credit loss model;

- Margins related to construction activity in respect of Service Concession Arrangements;

- Discount Rates considered for measurement of financial instruments and provisions.

(VI) The aggregate number of equity shares issued by way of bonus shares in immediately preceding last five financial years ended on March 31,2017- 5,26,51,030 shares (previous period of five years ended March 31,2016 - 5,26,51,030 shares)

(VII) Shares held under Employees'' Stock Option:

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''190 per share. Options granted to be vested over a period of five years, first such vesting has occurred in December 15, 2010. Pursuant to the share split and the declaration of Bonus by the company, the ESOP scheme has been amended by the Board of Directors to fairly adjust the exercise price and revise the number of options. In accordance with the split of shares and declaration of bonus, the exercise price of the share is now '' 63.33

(a) 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.

(b) 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 '' Nil. Accordingly no Compensation Cost needs to be amortized over the vesting period. Since the vesting period of the options granted to the employee has expired during the year, the disclosures on Net Income and Basic and Diluted Earnings Per Share as described in the guidance note have not been given for year 2015-16.

(c) The vesting and exercise period has concluded as on December, 2015._

(VIII) On May 30, 2017, the Board of Directors has recommended the final dividend of'' 0.80 paise per equity share for the year ended March 31, 2017 subject to approval from shareholders. On approval, the total dividend payment based on number of shares outstanding as at March 31, 2017 is expected to be Rs, 1497.19 lakh and the payment of dividend distribution tax is expected to be Rs, 304.79 lakh.

Note 35 : Capital management

The primary objective of the Company''s capital management is to maximize the shareholder value. For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company.

Debt is defined as long-term borrowings, current maturities of long-term borrowings, short-term borrowings and interest accrued thereon (excluding financial guarantee contracts).

Capital includes equity attributable to the equity holders to ensure that it maintains an efficient capital structure and healthy capital ratios in order to support its business and maximize shareholder value. The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions or its business requirements. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes during the period ended March 31,2017 and March 31,2016.

Valuation technique used to determine fair value:

- Investments included in Level 1 of Fair Value Hierarchy are based on prices quoted in stock exchange and/or NAV declared by the Funds.

- Investments included in Level 2 of Fair Value Hierarchy have been valued based on inputs from banks and other recognized institutions such as FIMMDA/FEDAI.

- Investments included in Level 3 of Fair Value Hierarchy have been valued using acceptable valuation techniques such as Net Asset Value and/or Discounted Cash Flow Method.

Note: All financial instruments for which fair value is recognized or disclosed are categorised within the fair value hierarchy described as above, based on the lowest level input that is significant to the fair value measurement as a whole.

Note 38 : Financial risk management objectives and policies

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities.

The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company has exposure to the following risks arising from financial instruments:

(A) Credit risk:

(B) Liquidity risk: and

(C) Market risk:

(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Company’s receivables from customers and loans and advances.

The Company’s customer profile include public sector enterprises, state owned companies, group entities, individual and corporate customer. General payment terms include mobilization advance, monthly progress payments with a credit period ranging from 45 to 90 days and certain retention money to be released at the end of the project. In some cases retentions are substituted with bank/ corporate guarantees. The Company has a detailed review mechanism of overdue customer receivables at various levels within organization to ensure proper attention and focus for realization.

Credit risk on trade receivables and unbilled work-in-progress is limited as the customers of the Company mainly consists of the government promoted entities having a strong credit worthiness. The provision matrix takes into account available external and internal credit risk factors such as companies historical experience for customers.

The exposure to credit risk for trade and other receivables by type of counterparty was as follows :

Management believes that the unimpaired amounts which are past due are collectible in full.

Cash and cash equivalents

Cash and cash equivalents (excluding cash on hand) ofRs, 2,820.36 lakh at March 31, 2017 (March 31, 2016: Rs, 2,193.83 lakh, March 31, 2015: Rs, 500.13 Lakh). The cash and cash equivalents (excluding cash on hand) are held with bank and financial institution counterparties with good credit rating.

Bank Balances other than Cash & cash equivalents

Bank Balances other than Cash and cash equivalents ofRs, 3,493.08 lakh at March 31, 2017 (March 31, 2016: Rs, 484.97 lakh, March 31, 2015: Rs, 1,874.17 lakh). The Bank Balances other than cash and cash equivalents are held with bank and financial institution counterparties with good credit rating.

Investments & Loan

Investments & Loan are with only group company in relation to the project execution hence the credit risk is very limited.

(B) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company manages liquidity risk by maintaining sufficient cash and marketable securities and by having access to funding through an adequate amount of committed credit lines. Management regularly monitors the position of cash and cash equivalents vis-a-vis projections. Assessment of maturity profiles of financial assets and financial liabilities including debt financing plans and maintenance of Balance Sheet liquidity ratios are considered while reviewing the liquidity position.

(C) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk:

i. Currency risk

ii. Interest rate risk

iii. Other price risk such as Commodity risk and Equity price risk.

The following table summarizes the carrying amount of financial assets and liabilities recorded at the end of the year by categories:

i. Currency risk

The Company has several balances in foreign currency and consequently the Company is exposed to foreign exchange risk. The exchange rate between the rupee and foreign currencies has changed substantially in recent years, which has affected the results of the Company and may fluctuate substantially in the future. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

The following table analysis foreign currency risk from financial instruments:

The sensitivity analysis in the following sections relate to the position as at March 31,2017, March 31, 2016 and April 01, 2015. The following table details the company’s sensitivity to a '' 1/- increase and decrease in the '' against the relevant foreign currencies. Sensitivity indicates Management’s assessment of the reasonable possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a ''1 change in foreign currency rates.

ii) Interest Rate Risk

As infrastructure development and construction business is capital intensive, the company is exposed to interest rate risks. The company''s infrastructure development and construction projects are funded to a large extent by debt and any increase in interest expense may have an adverse effect on our results of operations and financial condition. The company current debt facilities carry interest at variable rates with the provision for periodic reset of interest rates. As of March 31, 2017, the majority of the company indebtedness was subject to variable/fixed interest rates.

The interest rate risk exposure is mainly from changes in floating interest rates. The interest rate are disclosed in the respective notes to the financial statement of the Company. The following table analysis the breakdown of the financial assets and liabilities by type of interest rate:

(i) Gratuity

The company operates one defined plan of gratuity for its employees. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure @15 days of last drawn salary for each completed year of service. 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.

The following tables summaries the components of net benefit expense recognized in the Statement of profit and loss and the funded status and amounts recognized in the balance sheet for the gratuity plan:

The estimates of future salary increases, considered in actuarial valuation, is based on inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled. There has been significant change in expected rate of return on assets due to change in the market scenario.

(ii) Leave encashment

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.

The estimates of future salary increases, considered in actuarial valuation, is based on inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled. There has been significant change in expected rate of return on assets due to change in the market scenario.

Note 43 : Related Party Disclosures 1. Name of the Related Parties and Description of Relationship:

Nature of Relationship Name of Entity

Wholly Owned Subsidiary Ashoka Infrastructure Ltd.

Wholly Owned Subsidiary Ashoka Infraways Ltd.

Wholly Owned Subsidiary Viva Highways Ltd.

Wholly Owned Subsidiary Ashoka Technologies Pvt. Ltd.

Wholly Owned Subsidiary Ashoka Cuttak Angul Tollway Ltd.

Wholly Owned Subsidiary Viva Infrastructure Ltd.

Wholly Owned Subsidiary Ashoka Highways Reseach Centre Pvt. Ltd.

Wholly Owned Subsidiary Ashoka Bagewadi Saundatti Road Ltd.

Wholly Owned Subsidiary Ashoka Hungund Talikot Road Ltd.

Wholly Owned Subsidiary Ashoka Path Nirman (Nasik) Pvt.Ltd.

Wholly Owned Subsidiary Unison Enviro Pvt. Ltd.

Subsidiary Ashoka-DSC Katni Bypass Road Ltd.

Subsidiary Ashoka Pre-Con Pvt Ltd.

Subsidiary Ashoka Concessions Ltd.

Subsidiary Ashoka GVR Mudhol Nipani Roads Ltd.

Subsidiary Jaora Nayagaon Toll Road Co. Pvt.Ltd.

Stepdown Subsidiary Ashoka Highways (Bhandara) Ltd.

Stepdown Subsidiary Ashoka Highways (Durg) Ltd.

Stepdown Subsidiary Ashoka Sambalpur Baragarh Tollway Ltd.

Stepdown Subsidiary Ashoka Belgaum Dharwad Tollway Ltd.

Stepdown Subsidiary Ashoka Dhankuni Kharangpur Tollway Ltd.

Stepdown Subsidiary Ashoka Kharar Ludhiana Road Ltd.

Stepdown Subsidiary Blue Feather Infotech Pvt. Ltd.

Stepdown Subsidiary Ratnagiri Natural Gas Pvt. Ltd.

Stepdown Subsidiary Endurance Road Developers Pvt. Ltd.

Joint Ventures GVR Ashoka Chennai ORR Ltd.

Joint Ventures Abhijeet Ashoka Infrastructure Pvt. Ltd.

Joint Ventures Mohan Mutha Ashoka Buildcon LLP

Joint Ventures Cube Ashoka JV Co.

Joint Ventures PNG Tollway Ltd.

Joint Operations Ashoka Infrastructures

Joint Operations Ashoka Valecha JV

Joint Operations ABL BIPL JV

Joint Operations BIPL ABL JV

Partnership Firm Ashoka Bridgeways

Partnership Firm Ashoka Highway Ad.

Key Managerial personnel :

Key Managerial Personnel Ashok M Katariya (Chairman)

Key Managerial Personnel Satish D Parakh (Managing Director)

Key Managerial Personnel Sanjay P Londhe (Whole Time Director)

Key Managerial Personnel Milapraj Bhansali (Whole Time Director)

Key Managerial Personnel Paresh C Mehta (ChiefFinancial Officer)

Key Managerial Personnel Manoj A. Kulkarni ( Company Secretary)

Independent Directors :

Independent Director Gyan Chand Daga (Non Executive Director)

Independent Director Michael Pinto (Non Executive Director)

Independent Director Sharadchandra Abhyankar (Non Executive Director)

Independent Director Albert Tauro (Non Executive Director)

Independent Director Sunanda Dandekar (Non Executive Director)

Relatives of Key Managerial Personnel with whom transactions have taken place during the year:

Relatives ofKey Managerial Personnel Asha A. Katariya (Wife of Ashok M. Katariya)

Relatives ofKey Managerial Personnel Ashish A. Katariya (Son of Ashok M. Katariya)

Relatives ofKey Managerial Personnel Astha A. Katariya (Daughter In Law of Ashok M. Katariya)

Relatives ofKey Managerial Personnel Shewta K. Modi (Daughter of Ashoka M. Katariya)

Relatives of Key Managerial Personnel Satish D Parakh (HUF) (HUF of Satish D. Parakh)

Relatives of Key Managerial Personnel Shobha Satish Parakh (Wife of Satish D. Parakh)

Relatives of Key Managerial Personnel Aditya S. Parakh (Son of Satish D. Parakh)

Relatives of Key Managerial Personnel Snehal Manjit Khatri (Daughter of Satish D. Parakh)

Related party with whom transaction have taken place during the year:

Other Related Party Ashoka Township

Other Related Party Hotel Evening Inn Pvt. Ltd.

Other Related Party Ashoka Education Foundation

Other Related Party Ashoka Institute of Medical Sciences & Research

Other Related Party Ashoka Builders (Nasik) Pvt. Ltd.

The transition from IGAAP to Ind AS has not had a material impact on the Statement of Cash Flows.

Notes :

1. Reclassification of certain materials held as inventory to Property, Plant & Equipment’s with a concomitant impact on depreciation.

2. Recognition of Rights to collect Toll/Tariff held under public to private arrangements (service concession arrangements) under BOT model at fair value of construction services.

3. Reclassification of certain interest free loans given to subsidiary carried at cost as investment in Equity vis-a-vis the earlier classification of Loan.

4. Investment in preference shares of subsidiary recognized at fair value through profit & loss account vis-a-vis the earlier method of carrying at cost.

5. Recognition of corporate guarantees given to banks on behalf of its Subsidiaries/Associates and Joint Ventures as investment in equity at their fair value. Subsequently, Amortization guarantee commission is recognized in profit or loss over the tenure of the loan for which guarantee was provided as per Ind AS 18.

6. Recognition of provision against trade receivables based on “expected credit loss” model as per Ind AS 109 vis-a-vis the earlier provision made on doubtful trade receivable by assessment on case to case basis.

7. Under Ind AS the proposed final dividend including related tax is recognized in the period in which the obligation to pay is established. Under IGAAP a provision was required to be made in the financial statements for the proposed final dividend in the period to which the liability related.

8. Actuarial gains and losses pertaining to defined benefit obligations and re-measurement pertaining to return on plan assets are recognized in statement of Other Comprehensive Income in accordance with Ind AS 19 and are subsequently not reclassified to profit or loss.

9. Recognition of Loans at their present value as compared to cost in IGAAP. This adjustment includes the difference between the book value and the present value of an interest free loan. The interest on the present value of this loan is recognized over the tenure of the loan using the EIR method.

10. Recognition of Long term provisions at their present value using discounting techniques vis-a-vis the current method of carrying at full value.

11. Under the previous GAAP, revenue from sale of goods was presented exclusive of excise duty. Under Ind AS revenue from sale of goods is presented inclusive of excise duty.

Note 12 : Exceptional Item

PNG Tollways Limited (‘PNG’), an associate of the Company, had entered into a service concession agreement with National Highways Authority of India (‘NHAI’) for construction, operation and maintenance of six laning of Pimpalgaon - Nashik - Gonde on built operate and transfer model basis. PNG has terminated the said service concession agreement after giving notice to NHAI in accordance with the termination clauses of the service concession agreement and claimed compensation from NHAI. The company has also been involved in executing the said project.

The Company based on its legal and commercial evaluation has assessed the probable amount of claims to be received from NHAI by PNG and PNG’s obligation towards its lenders and other creditors. On the basis of the said evaluation, the management has also assessed the recoverability of its exposure to PNG in the form of, project receivables, interest receivable and construction work in progress. Accordingly, the management has recognized following provisions/write off in the statement of profit and loss and disclosed as an “Exceptional Items”.

Note 13 :

The Company was subject to search under 132 of the Income Tax Act,1961 in the month April,2016. The Income Tax Department had issued notices u/s 153A to file revised return for last six years in the month of January, 2017. Ashoka Buildcon Ltd filed revised return u/s 153A under protest in the month of March, 2017 claiming some additional expenditure and deduction based on recent judgments pronounced, subject to these additional deduction there is no change in return of Income as was filed in original return of Income of respective years.

Note 14 :

The company has registered under Employees Provident Fund Act for employees of the company as well as employees of certain group companies.

Note 15:

Balance of Debtors, Creditors, Advances, Deposits, Unsecured Loan etc. are subject to confirmation and reconciliation if any.

Note 16 : Events after reporting period

No subsequent event has been observed which may required on adjustment to the balance sheet.

Note 17 : Previous year comparatives

Previous year’s figures have been regrouped/reclassified, wherever necessary, to conform to current year classification.


Mar 31, 2016

COMPANY OVERVIEW:

The Company was 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, wherein ''Toll Collection Rights'' are received in exchange of the Construction Cost. For this, 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) 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.

(II) AS - 18 Related Party Transactions

(A) List of Related Parties

(a) Parties where control exists

(i) Ashoka-DSC Katni Bypass Road Ltd.

(ii) Ashoka Highways (Bhandara) Ltd.

(iii) Ashoka Highways (Durg) Ltd.

(iv) Ashoka Infrastructure Ltd.

(v) Ashoka Infraways Ltd.

(vi) Viva Highways Ltd.

(vii) Ashoka Pre - Con Pvt Ltd.

(viii) Ashoka Technologies Pvt. Ltd.

(ix) Ashoka Sambalpur Bargarh Tollway Ltd.

(x) Ashoka Belgaum Dharwad Tollway Ltd.

(xi) Ashoka Dhankuni Kharagpur Tollway Ltd.

(xii) Ashoka Concessions Ltd.

(xiii) Ashoka Cuttak Angul Tollway Ltd

(xiv) Viva Infrastructure Ltd.

(xv) Ashoka GVR Mudhol Nipani Roads Ltd.

Enterprises in which Key Management Personnel / Directors have significant influence (Only with whom there have been transaction during the year / there was balance outstanding at the year end)

(i) Ashoka Education Foundation

(ii) Ashoka Township (AOP)

(iii) Hotel Evening Inn Pvt. Ltd.

(iv) Ashoka Institute of Medical Sciences & Research

(v) Ashoka Highways Reseach Centre Pvt Ltd.

(vi) Ashoka Bagewadi Saundatti Road Ltd.

(vii) Ashoka Hungund Talikot Road Ltd.

(viii) Ashoka Path Nirman (Nasik) Pvt.Ltd.

(ix) Unison Enviro Pvt. Ltd.

(c) Key Management Personnel

(i) Ashok M Katariya

(ii) Satish D Parakh

(iii) Sanjay P Londhe

(iv) Milapraj Bhansali

(v) Paresh C Mehta

(vi) Manoj A Kulkarni

(d) Directors and their relatives

(i) Asha A. Katariya

(ii) Ashish A. Katariya

(iii) Astha A. Katariya

(iv) Satish D Parakh (HUF)

(v) Aditya S. Parakh

(vi) Shewta A Katariya

(e) Associates & Joint Ventures

(i) Ashoka Bridgeways

(ii) Ashoka Highway AD.

(iii) Ashoka Infrastructures

(iv) Jaora Nayagaon Toll Road Co. PvtLtd.

(v) Ashoka Valecha JV

(vi) Abhijeet Ashoka Infrastructures Pvt. Ltd.

(vii) Cube Ashoka Joint Venture

(viii) PNG Tollway Ltd.

(ix) GVR Ashoka Chennai ORR Limited

(x) Mohan Mutha Ashoka Buildcon LLP

(xi) ABL BIPL Joint Venture

(III) 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.

(IV) PNG Tollways Limited (''PNG''), an associate of the Company, had entered into a service concession agreement with National Highways Authority of India (''NHAI'') for construction, operation and maintenance of six laning of Pimpalgaon – Nashik – Gonde on built operate and transfer model basis. PNG has terminated the said service concession agreement after giving notice to NHAI in accordance with the termination clauses of the service concession agreement and claimed compensation from NHAI. The company has also been involved in executing the said project.

The Company based on its legal and commercial evaluation has assessed the probable amount of claims to be received from NHAI by PNG and PNG''s obligation towards its lenders and other creditors. On the basis of the said evaluation, the management has also assessed the recoverability of its exposure to PNG in the form of, project receivables, interest receivable and construction work in progress. Accordingly, the management has recognised following provisions/write off in the statement of profit and loss and disclosed as an "Exceptional Items".

(V) The company has registered under Employees Provident Fund Act for employees of the company as well as employees of certain group companies.

(VI) Balance of Debtors, Creditors, Advances, Deposits, Unsecured Loan etc. are subject to confirmation and reconciliation if any.

(VII) The company was subject to a search under Section 132 of The Income Tax Act, 1961 in the month of April 2016. 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. 2015-16.

(VIII) Corresponding figures of previous year have been regrouped / rearranged wherever necessary


Mar 31, 2015

Note 1.

(i) Controlled special purpose entities are subsidiary companies incroporated to execute the specific project on Build Operate Transfer / Design Build Finance Operate Transfer

(ii) In one of the subsidiary companies, viz. Ashoka Infrastructure Limited toll collection has been discontinued at the directive of the Employer, The subsidiary Company has initiated arbitration proceeding towards such discontinuance. The subsidiary is confident of receiving additional compensation from the employer. Consequently the value of investment of the Company in the subsidiary continues to be at its full value.

(iii) 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.

(iv) 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. The said AOP has applied to PWD Maharashtra for a further increase in toll period. However, approval for the same has not been received till the date of adoption of the financial statements resulting in a material uncertainty of future toll collections and operations of the enterprise. Proportionate interest of the company in the said Joint venture.

Note 2. * Advance recoverable in cash or kind or for value to be received includes Rs. 1,433 Lacs against a contract awarded by Kalyan Dombivili Municipal Corporation (KDMC) for Commercial Development on a PPP basis. The cost includes upfront fees paid to KDMC. The management have initiated arbitration proceedings with KDMC. Pending this provision for doubtful advance has been considered.

Note 3.

Contingent Liabilities (Rs. in Lacs)

Sr. Particulars As at 31-Mar-15 Asat31-Mar-14 No.

(a) Bank Guarantees issued by bankers in favour of third parties 85,066.79 70,856,94

(b) Corporate Guarantee issued by the Company infavour of Banks/Financial 111,142.20 117,000.00 Institutions for finance raised by Companies under the same management and against mobilisation advance.

(c) Claims against the Company not acknowledged as debts 350.65 23.90

(d) Liability against capital commitments outstanding (Net of Advances) 13.18 40.86

(e) Liability of Duty against Export Obligations 39.18 39.18

(f) Disputed Duties / Tax Demands (net of taxes paid) 4,538.50 1,259.14

(g) Resurfacing obligation as per concession agreement 237.06 709.77

Note 4.

The company has registered under Employees Provident Fund Act for employees of the company as well as employees of certain group companies.

Note 5.

Balance of Debtors, Creditors, Advances, Deposits, Unsecured Loan etc. are subject to confirmation and reconciliation if any.

Note 6.

Corresponding figures of previous period have been regrouped / rearranged wherever necessary

Note 7.

AS - 18 Related Party Transactions

(A) List of Related Parties

(a) Parties where control exists

(i) Ashoka-DSC Katni Bypass Road Ltd.

(ii) Ashoka Highways (Bhandara) Ltd.

(iii) Ashoka Highways (Durg)Ltd.

(iv) Ashoka Infrastructure Ltd.

(v) Ashoka Infraways Ltd.

(vi) Viva Highways Ltd.

(vii) Ashoka Precon P. Ltd.

(ix) Ashoka Sambalpur Bargarh Tollway Ltd.

(x) Ashoka Belgaum Dharwad Tollway Ltd.

(xi) Ashoka Dhankuni Kharagpur Tollway Ltd.

(xii) Ashoka Concessions Ltd

(xiii) Ashoka Cuttak Angul Tollway Limited

(xiv) Viva Infrastructure Ltd.

(b) Enterprises in which Key Management Personnel / Directors have significant influence

(i) Ashoka Buildwell & Developers P. Ltd.

(ii) Ashoka Builders (Nasik) P. Ltd.

(iii) Ashoka Engineering Co.

(iv) Ashoka Vastuvaibhav

(v) Ashoka E-Tech

(vi) Shweta Agro Farm

(vii) Ashoka Construwell P. Ltd.

(ix) Ashoka Biogreen Pvt Ltd

(x) Ashoka City Tower construction

(xi) Ashoka Shilp Akruti Pvt Ltd

(xii) Ashoka Vastukala Nirman Pvt Ltd

(xiii) Ashoka Housing Construction Pvt Ltd

(xiv) Ashoka Township (AOP)

Hotel Evening Inn Pvt Ltd

(c) Key Management Personnel

(i) Ashok M Katariya

(ii) Satish D Parakh

(iii) Sanjay P Londhe

(iv) Milapraj Bhansali

(d) Directors and their relatives

(i) Asha A. Katariya

(ii) Ashish A. Katariya

(iii) Astha A. Katariya

(iv) S D Parakh HUF

(v) Aditya Parakh

(vi) Shewta A Katariya

(e) Associates & Joint Ventures

(i) Ashoka Bridgeways

(ii) Ashoka Highway AD.

(iii) Ashoka Infrastructures

(iv) Jaora Nayagaon Toll Road Co. P.Ltd.

(v) Ashoka Valecha JV

(vi) Abhijeet Ashoka Infrastructures Pvt. Ltd.

(vii) Cube Ashoka Joint Venture

(viii) PNG Tollways Ltd.

(ix) GVR Ashoka Chennai ORR Limited


Mar 31, 2014

Not Available


Mar 31, 2013

(i) Controlled special purpose entities are subsidiary companies incroporated to execute the specific project on Build Operate Transfer / Design Build Finance Operate Transfer

(ii) In one of the subsidiary company, viz. Ashoka Infrastructure Limited toll collection has been discontinued at one out of the two toll plazas at the directive of the Employer, the loss of which the subsidiary expects to be compensated by the Employer. Based on additional directives of the employer, major maintenance work was carried out during the F.Y 2010-11. Both these factors have led to decline of the net worth of the company. However, the subsidiary is confident of receiving additional compensation from the employer. Consequently the value of investment of the Company in the subsidiary continues to be at its full value.

(iii) 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.

(iv) The Company, Ashoka Concessions Limited (ACL), a subsidiary and Macquarie SBI Infrastructure Investments Pte Limited, Singapore (MSIIPL) and SBI Macquarie Infrastructure Trust, Mumbai (SMIT) [MSIIPPL & SMIT have been referred to as Investors) have entered into a multi party agreement. Pursuant to this agreement the Company and Investors have to subscribe to the equity shares of ACL in a manner to have the inter-se holding in the ratio of 66:34.

Pursuant to this agreement the investments of ABL in following subsidiaries have been transferred to ACL during the year:-

1. Ashoka Highways (Bhandara) Limited

2. Ashoka HIghways (Durg) Limited

3. Ashoka Belgaum Dharwad Tollway Limited

4. Ashoka Sambalpur Bargarh Tollway Limited

5. Ashoka Dhankuni Kharagpur Tollway Limited

6. PNG Tollways Limited

7. Jarora Nayagaon Toll Road Co. Pvt Limited

(v) 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.The said AOP has applied to PWD Maharashtra for a further increase in toll period. However, approval for the same has not been received till the date of adoption of the financial statements resulting in a material uncertainty of future toll collections and operations of the enterprise Proportionate interest of the company in the said Joint venture is as under:

(vi) Further to the Search u/s 132 of the Income Tax Act, 1961 in the month of April, 2010 the Company, with a view to avoid acrimonious and long drawn litigation, has preffered to file an application u/s 245C(1) to the Income Tax Settlement Commission, in pursuance of which the company has provided and paid as of 31.12.2012 a sum of Rs. 1081 Lac. The same has been provided as Tax for earlier years

(a) PWD Maharashtra vide its Notification dated November 14, 2012 directed the Company to stop collection of toll of the Ahmednagar (Nagar Karmala) Project. The Company has challenged this order and the matter is under arbitration. The company is confident that the arbitration award will be in its favour and it will be permitted to restart collection of toll. However, on a prudent basis the Company estimated the value in use of the intangible asset, Right to collect Toll and has impaired fifty percent of the written down value of Rs. 3137.70 which is presented as Exceptional item in the Profit & Loss account. The balance value of the asset of Rs. 1568.85 lakhs is classified as OtherNon-Current Assets.

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) PWD Maharashtra vide its Notification dated November 14, 2012 directed the Company to stop collection of toll of the Ahmednagar (Nagar Karmala) Project, Consequently the Company no longer retains the right to collect toll on the project, the written down value of the the project aggregating to Rs. 3137.70 lakhs has been fully amortised during the year. The Company has initiation aribitration proceedings on PWD against the said stoppage.

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. 89.29 Lacs (Previous Period Rs. 81.20 Lacs) has been charged to the Profit & Loss Account on account of this defined contribution scheme.

(ii) 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 ofIndia.

(iii) 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.

(II) AS - 18 Related Party Transactions (A) List of Related Parties

(a) Parties where control exists

(i) Ashoka-DSC Katni Bypass Road Ltd.

(ii) Ashoka Highways (Bhandara) Ltd.

(iii) Ashoka Highways (Durg)Ltd.

(iv) Ashoka Infrastructure Ltd.

(v) Ashoka Infraways Ltd.

(vi) Viva Highways Ltd.

(vii) Ashoka Precon P. Ltd.

(viii) Ashoka Technologies P. Ltd.

(ix) Ashoka High-Way Ad.

(x) Ashoka Infrastructures

(xi) Ashoka Sambalpur Bargarh Tollway Ltd.

(xii) Ashoka Belgaum Dharwad Tollway Ltd.

(xiii) Ashoka Dhankuni Kharagpur Tollway Ltd.

(xiv) Ashoka Concessions Ltd

(xv) Ashoka Cuttak Angul Tollway Limited

(xvi) Viva Infrastructure Ltd.

(d) Directors and their relatives

(i) Asha A. Katariya

(ii) Ashish A. Katariya

(iii) Astha A. Katariya

(iv) S D Parakh HUF

(v) Aditya Parakh

(vi) Shewta V Kasera

(b) Enterprises in which Key Management Personnel / Directors have significant influence

(i) Ashoka Buildwell & Developers P. Ltd.

(ii) Ashoka Builders (Nasik) P. Ltd.

(iii) Jaora Nayagaon Toll Road Co. P.Ltd.

(iv) Ashoka Engineering Co.

(v) Ashoka Vastuvaibhav

(vi) Ashoka E-Tech

(vii) Shweta Agro Farm

(viii) Ashoka Construwell P. Ltd.

(ix) Ashoka Education Foundation

(x) Ashoka Biogreen Pvt Ltd

(xi) Ashoka City Tower construction

(xii) Ashoka Shilp Akruti Pvt Ltd

(xiii) Ashoka Vastukala Nirman Pvt Ltd

(xiv) Ashoka Housing Construction Pvt Ltd

(xv) Ashoka Township (AOP)

(c) Key Management Personnel

(i) Ashoka M Katariya

(ii) Satish D. Parakh

(iii) Sanjay P Londhe

(e) Associates & Joint Ventures

(i) Ashoka Bridgeways

(ii) Ashoka Highway AD.

(iii) Ashoka Infrastructures

(iv) Ashoka Valecha JV

(v) Abhijeet Ashoka Infrastructures Pvt. Ltd.

(vi) Cube Ashoka Joint Venture

(vii) PNG Tollways Ltd.

Note: Figures in brackets denote figures of previous period ended March 31,2012

(b) The Company has provided Rs. 3233.49 Lacs (Previous Period Rs. 667.00 Lacs) for Maintenance work arising out of Contractual Obligations during the defect liability period of the contracts, which is charged to the Profit & Loss Account.

(c) The Company has contractual obligation to periodically maintain, replace or restore infrastructure as per the terms of the concession agreement. The Company has recongnied the provision ofRs. 709.76 (Previous YearRs. Nil) in accordance with Account Standard - 29 ''Provision, Contingent Liabilities and Contingent Assets'' i.e., at the best estimate of the expenditure required to settle the present obligation at the balance sheet date.

(vii) The company has registered under Employees Provident Fund Act for employees of the company as well as employees of certain group companies.

(viii) Balance ofDebtors, Creditors, Advances, Deposits, Unsecured Loan etc. are subject to confirmation and reconciliation if any.

(ix) As per the requirement of Revised Schedule VI, the company has re-classified its assets and liabilities into current and non-current, based on the normal operating cycle, as determined by the management. Previous years figures have been accordingly re-grouped and re-classifed.


Mar 31, 2012

(i) Controlled special purpose entities are subsidiary companies incroporated to execute the specifc project on Build Operate Transfer

(ii) In one of the subsidiary company, viz. Ashoka Infrastructure Limited toll collection has been discontinued at one out of the two toll plazas at the directive of the Employer, the loss of which the subsidiary expects to be compensated by the Employer. Based on additional directives of the employer, major maintenance work was carried out during the F.Y. 2010-11. Both these factors have led to decline of the net worth of the company. However, the subsidiary is confdent of receiving additional compensation from the employer. Consequently the value of investment of the Company in the subsidiary continues to be at its full value.

(iii) 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.

(iv) The Company is in process of trasfeering some of its existing Investments into an another subsidiary company.

(v) 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. The said AOP has applied to PWD Maharashtra for a further increase in toll period. However, approval for the same has not been received till the date of adoption of the fnancial statements resulting in a material uncertainty of future toll collections and operations of the enterprise Proportionate interest of the company in the said Joint venture is as under:

(vii) Out of the Investments of the Company following investments are pledged with the Financial Institutions /Banks for security against the fnancial 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) 295,000 Ashoka Infraways Pvt. Ltd.

(iv) 1,530,000 Ashoka-DSC Katni Bypass Road Pvt. Ltd.

(v) 13,317,658 Ashoka Highways (Bhandara) Ltd.

(vi) 15,154,734 Ashoka Highways (Durg) Ltd.

(vii) 142,841 Ashoka Sambalpur Bargarh Tollway Pvt. Ltd.

(viii) 327,664 Ashoka Belgaum Dharwad Tollway Pvt. Ltd.

(ix) 666,000 Ashoka Dhankuni Kharagpur Tollway Ltd.

(x) 11,211,330 PNG Tollways Limited

(b) Preference Shares of Rs.100 each :

(i) 32,383 Ashoka Sambalpur Bargarh Tollway Pvt. Ltd.-1% Convertible

(ii) 21,136 Ashoka Belgaum Dharwad Tollway Pvt. Ltd.-1% Convertible

28 ADDITIONAL NOTES

(I) During the year the Company has changed the method of amortisation in respect of Intangible Assets i.e. Right to Collect Toll from the projected traffc volumes over the toll period to the amortisation method prescribed in Schedule XIV to The Companies Act, 1956. Amortisation has been recalculated in accordance with new method from the date of toll commencement of respective BOT project. This change has resulted into a reduction of accumulated Amortisation by Rs. 1327.00 lakhs upto March 31, 2012 with a increase in the Written Down Value of Intangible Assets. Had the earlier accounting policy of amortisation of projected traffc volumes being followed, the Amortisation for the year would have been lower by Rs. 24.08 lakhs with a corresponding impact on the net results and reserves

(III) AS – 18 Related Party Transactions

(A) List of Related Parties

(a) Parties where control exists

(i) Ashoka-DSC Katni Bypass Road P. Ltd.

(ii) Ashoka Highways (Bhandara) Ltd.

(iii) Ashoka Highways (Durg)Ltd.

(iv) Ashoka Infrastructure Ltd.

(v) Ashoka Infraways P. Ltd.

(vi) Viva Highways P. Ltd.

(vii) Ashoka Precon P. Ltd.

(viii) Ashoka Technologies P. Ltd.

(ix) Ashoka High-Way Ad.

(x) Ashoka Infrastructures

(xi) Ashoka Sambalpur Bargarh Tollway Pvt. Ltd.

(xii) Ashoka Belgaum Dharwad Tollway Pvt. Ltd.

(xiii) Ashoka Dhankuni Kharagpur Tollway Ltd.

(xiv) Ashoka Concessions Pvt Ltd

(xv) Ashoka Cuttak Angul Tollway Limited

(xvi) Viva Infrastructure Pvt. Ltd.

(d) Directors and their relatives

(i) Asha A. Katariya

(ii) Ashish A. Katariya

(iii) Astha A. Katariya

(iv) S D Parakh HUF

(v) Shubham Agencies

(vi) Aditya Parakh

(vii) Shewta V Kasera

(b) Enterprises in which Key Management Personnel / Directors have Significant infuence

(i) Ashoka Buildwell & Developers P. Ltd.

(ii) Ashoka Builders (Nasik) P. Ltd.

(iii) Jaora Nayagaon Toll Road Co. P.Ltd.

(iv) Ashoka Engineering Co.

(v) Ashoka Vastuvaibhav

(vi) Ashoka E-Tech

(vii) Shweta Agro Farm

(viii) Ashoka Construwell P. Ltd.

(ix) Ashoka Education Foundation

(x) Ashoka Biogreen Pvt Ltd

(xi) Ashoka City Tower construction

(xii) Ashoka Shilp Akruti Pvt Ltd

(xiii) Ashoka Vastukala Nirman Pvt Ltd

(xiv) Ashoka Housing Construction Pvt Ltd

(xv) Ashoka Township (AOP)

(c) Key Management Personnel

(i) Ashoka M Katariya (ii) Satish D. Parakh

(e) Associates & Joint Ventures

(i) Ashoka Bridgeways

(ii) Ashoka Highway AD.

(iii) Ashoka Infrastructures

(iv) Ashoka Valecha JV

(v) Jayswals Ashoka Infrastructures Pvt. Ltd.

(vi) Cube Ashoka Joint Venture

(vii) PNG Tollways Ltd.

(IV) 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.

(X) Contingent Liabilities (Rs. in Lacs)

Sr. Particulars As at 31-Mar-12 As at 31-Mar-11 No.

(a) Bank Guarantees and Letters of Credit issued by bankers in favour of third 73,835.12 47,985.91 parties

(b) Corporate Guarantee issued by the Company in favour of Banks/ Financial 117,623.70 170,363.00 Institutions for finance raised by Companies under the same management

[Including Guarantees given against shortfall in termination payment by customer to lenders of Rs. 1,14,760.56 Lacs (Previous Period Rs. 1,38,400 Lacs)]

(c) Claims against the Company not acknowledged as debts 23.90 23.90

(d) Liability against capital commitments outstanding (Net of Advances) 69.32 4,522.21

(e) Liability of Duty against Export Obligations 39.18 39.18

(f) Disputed Duties / Tax Demands (net of taxes paid) 1,455.69 1,234.02

(XII) The company has registered under Employees Provident Fund Act for employees of the company as well as employees of certain group companies.

(XIII) Balance of Debtors, Creditors, Advances, Deposits, Unsecured Loan etc. are subject to confrmation and reconciliation if any.

(XIV) As per the requirement of Revised Schedule VI, the company has re-classifed its assets and liabilities into current and non-current, based on the normal operating cycle, as determined by the management. Previous years fgures have been accordingly re-grouped and re-classifed.


Mar 31, 2011

COMPANY OVER VIEW :

The Company is incorporated in 1993. It is presently in the business construction of infrastructure facilities on Engineering, Procurement and Construction Basis (EPC) and Build, 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, wherein 'Toll Collection Rights' are received in exchange of the Construction Cost. For this, 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 "The Company has changed the method of amortisation in respect of Intangible Assets i.e. Right to collect Toll and is now charging depreciation based on the proportion of traffic volume for a particular period to the projected traffic volumes over the toll period instead of straight line method used earlier. Amortisation has been recalculated in accordance with new method from the date of toll commencement of respective BOT project by the company. Change in Amortisation policy has resulted into reduction of accumulated Amortisation by R s9. 62.67 Lacs upto March 31, 2011 with a credit to the Profit & Loss Account and a corresponding increase in the Written Down Value of Intangible Assets. Had the earlier accounting policy of amortisation of straight line basis being followed, the Amortisation for the year would have been higherR b 2sy.49.57 Lacs and profit after tax lower by the same amount."

2 Balance of Untilised Monies raised by Issue amounting to Rs. 1,088.43 Lacs is lying in the Current account with the Scheduled Baks as at march 31, 2011.

3 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. For the purpose of determining percentage of work completed, estimates of contract cost and contract revenue are used.

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 (KDMC). The work is yet to be started due to pendign approval of plan by the KDMC since 2008-09. The company has incurred a cost of Rs.1465.10 Lacs 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.

In accordance with the accounting policy of the Company, Profit on Mark to Market aggregating Rs.50.65 (P.Y. Rs.59.32) Lacs has been recongnised as and when realised.

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 occured on december 15, 2010. The details of the stock option plan are as under:

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:

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.84.61 Lacs (P.Y. Rs.69.73 Lacs) 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:

8 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.

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 maintaing the Infrastructure facility.

3 Sale of Goods comprises the activity of selling of Ready Mix Concrete (RMC) and Bitumen.

9 AS - 18

Related Party T ransactions

I List of Related Parties

(a) Parties where control exists

(i) Ashoka-DSC Katni Bypass Road P. Ltd.

(ii) Ashoka Highways (Bhandara) Ltd.

(iii) Ashoka Highways (Durg)Ltd.

(iv) Ashoka Infrastructure Ltd.

(v) Ashoka Infraways P. Ltd.

(vi) Viva Highways P. Ltd.

(vii) Ashoka Precon P. Ltd.

(viii) Ashoka Technologies P. Ltd.

(ix) Ashoka High-Way Ad.

(x) Ashoka Infrastructures

(xi) Ashoka Sambalpur Bargarh Tollway Pvt. Ltd.

(xii) Ashoka Belgam Dharwad Tollway Pvt. Ltd.

(xiii) Ashoka Dhankuni Kharagpur Tollway Ltd.

(d) Directors and their relatives

(i) Asha A. Katariya

(ii) Ashish A. Katariya

(iii) Astha A. Katariya

(iv) S D Parakh HUF

(v) Shubham Agencies

(b) Enterprises in which Key Management Personnel / Directors have significant influence

(i) Ashoka Buildwell & Developers P. Ltd.

(ii) Ashoka Builders (Nasik) P. Ltd.

(iii) Jaora Nayagaon Toll Road Co. P.Ltd.

(iv) Ashoka Engineering Co.

(v) Ashoka Vastuvaibhav

(vi) Ashoka E-Tech

(vii) Shweta Agro Farm

(viii) Ashoka Construwell P. Ltd.

(ix) Ashoka Education Foundation

(c) Key Management Personnel (i) Ashok M. Katariya

(ii) Satish D. Parakh

(iii) Sunil B. Raisoni(Upto March 14, 2011)

(e) Associates & Joint V entures

(i) Ashoka Bridgeways

(ii) Ashoka Highway AD.

(iii) Ashoka Infrastructures

(iv) Ashoka Valecha JV

(v) Jayswals Ashoka Infrastructures Pvt. Ltd.

(vi) Viva Infrastructure Pvt. Ltd.

(vii) PNG Tollways Ltd.

10 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.

The Company is claiming deduction u/s 80-IA of The Income Tax Act, 1961 for certain projects. Accordingly, no provision for deferred tax assets/liabilities on timing differences originating and reversing during tax holiday period has been made.

13 The Company was subject to search u/s 132 of The Income Tax Act, 1961 in the month of April 2010. The tax department is in the process of assessing the impact of the said search and has not raised any demand on the company till date.

(b) The Company has provided Rs.1556.00 Lacs for Maintenance work arising out of Contractual Obligations during the defect liability period of the contracts, which is charged to the Profit & Loss Account.

Further, the Company has incurred expenditure aggregating Rs.985.52 Lacs towards periodic maintenance during the year, which is also charged to the Profit & Loss Account.

6 Contingent Liabilities

(Rs. in Lacs)

Sr. Particulars As at As at

No 31-Mar-11 31-Mar-10

(a) Bank Guarantees and Letters of Credit issued by bankers in favour of third parties 47,985.91 35,325.21

(b) Corporate Guarantee issued by the Company in favour of Banks/ Financial Institutions for finance raised by Companies under the same management [Including Guarantees given against shortfall in termination payment by customer to lenders of Rs.1,38,400 Lacs (P.Y. Rs.78,500 Lacs)] 170,363.00 121,063.00

(c) Claims against the Company not acknowledged as debts 23.90 6.71

(d) Liability against capital commitments outstanding (Net of Advances) 4,522.21 21.91

(e) Liability of Duty against Export Obligations 39.18 39.18

(f) Disputed Duties / Tax Demands (net of taxes paid) 1,234.02 645.57

7 (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:

8 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.

9 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) 1,530,000 Ashoka DSC Katni Byapss Road Pvt. Ltd.

(iv) 13,317,658 Ashoka Highways (Bhandara) Ltd.

(v) 15,154,734 Ashoka Highways (Durg) Ltd.

(vi) 86,792 Ashoka Sambalpur Bargarh Tollway Pvt. Ltd.

(Vii) 295,000 Ashoka Infraways Pvt. Ltd.

(b) Preference Shares of:

(i) 27,502 Ashoka Sambalpur Bargarh Tollway Pvt. Ltd.-1% Convertible of Rs.100 each

10 The company has registered under Employees Provident Fund Act for employees of the company as well as employees of certain group companies.

11 Balance of Debtors, Creditors, Advances, Deposits, etc. are subject to confirmation and reconciliation if any.

12 Previous year figures have been regrouped/ rearranged wherever necessary, to make them comparable with current year figures.

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