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Notes to Accounts of Consolidated Construction Consortium Ltd.

Mar 31, 2015

1. Current Financial Condition, Mitigating Factors & "Going Concern"

A. Financial Condition:

a. The Company's Operations have been affected during the whole of the Financial Year and the company has incurred losses totaling Rs 15,422.91 Lacs (PY Rs.32,063.57 Lacs). Further the cash flows of the company have also been affected severely due to the stress in collections of receivables.

b. During the year under the review, unexecuted orders for an amount totaling Rs.Nil Lacs (Py Rs.1,37,083/- lacs) have been cancelled / terminated pending negotiations / litigations which are underway. The company is proceeding with appropriate / legal remedies including arbitration process, wherever provided for and has been legally advised that it has a strong case and accordingly has not considered any provisions in these results.

c. Wholly owned Subsidiary Companies have incurred a collective loss of Rs 2,902.85 Lacs (PY Loss Rs 2,988.08 Lacs) for this year. Considering the operations being strategic in nature in respect of NCGL contributing a loss of Rs.2,368.46 lacs and in view of the management plan for the future, permanent diminution is not considered in respect of the value of investments in this subsidiary

B. Mitigating Factors:

a. The company is in discussions with strategic / financial investors for investment

b. The company's debts have been restructured under Corporate Debt Restructuring (CDR) mechanism by its lenders. In view of the above said mitigating factors the company is positively looking at the scenario as a "Going Concern"

2. Corporate Debt Restructuring

The year saw progressive implementation of/ compliance with the approved CDR package / conditions.

During the year, the NCDs issued earlier to Tata Capital Financial Services Limited were also restructured under the CDR scheme.

The lenders, with the approval of the CDR Empowered Group (CDR EG), shall have the right to recompense (RoR) the reliefs/sacrifice/waivers extended by respective lenders as per CDR Guidelines. Accordingly, the Recompense Amount calculated as per CDR Guideline's upto the year2014-15isRs.1,223 lacs.

The company, as per the approved CDR package, should infuse funds to the tune of Rs.220,00 Lacs towards margins, reduction of debt and shoring up of working capital by 31 March 2015. The company has during the year infused Rs.5,445 Lacs (net of TDS). The CDR lenders have, in the event of infusion of funds not materializing, decided to convert the balance of loans due, as per CDR, on 1 st April 2015 into equity of the Company, subject to the extant statutory guidelines

3. Exceptional Items

1. Making use of the lower business volumes and consequent aggregation of construction aid materials, during the year, the company, in line with the Accounting Policy stated vide Note 2.9 above carried out a detailed physical count and estimation of the useful life of the construction aid materials. This has resulted in reversal of write-down of inventories to the extent of Rs, 10,082.54 Lacs.

2. Consequent to the severe down trend in the economy in the last three years, which has impacted the infrastructure and construction sectors a detailed evaluation of the trade receivables was carried resulting in a provision of Rs, 10,111.59 Lacs towards bad and doubtful debts./claims carried in the books of the company.

3. Provision for permanent diminution in the value of investment in certain subsidiaries amounting to Rs, 9,17.12 Lacs as well as the loans and advances lent to such subsidiaries for which there is uncertainty of immediate recovery amounting to Rs, 1,546.46 Lacs has been made.

4. In line with the accounting policy, stated in 2.13 the above items have been treated as exceptional items and disclosed as such in financial statements.

4. Segment Reporting:

The company's operations predominantly consist of construction activities. Hence there are no reportable segments under Accounting Standard -17. During the year under report, substantial part of Company's business has been carried throughout India. The conditions prevailing in India being uniform, no separate geographical disclosures are considered necessary.

5. Current Assets:

a)Current Assets in clude Rs,30,947.43 Lacs grouped under Note3.11 of billed/ claims based on explicit/ implicit contractual/ commercial terms for projects. These Receivables are periodically reviewed by the company and considering the commercial / contractual terms, the progress in negotiations / arbitration/ the continuing discussions with the clients an amount of Rs, 10,257 lacs has been provided for and the management is confident that no further provision against these dues needs to be considered at this juncture.

b) Current Assets include certain guarantees amounting toRs, 8,401 lacs (PY7.918 Lacs) issued by the Banks on behalf of the company have been invoked by the Clients due to alleged contractual non-performance. In addition there are disputes with respect to other amounts due from such clients. These amounts totaling to Rs, 37,683 Lacs have been grouped under Note 3.15. The company has activated appropriate contractual remedies to address these disputes as provided for under the contract between the Company and the Clients. Based on the final outcome of resolution of these disputes necessary entries would be finally passed. Hence, no provision against these dues needs to be considered at this juncture.

6. Claims against the company not acknowledged as debt Rs. Nil (P.Y* 64.08 Lacs).

7. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs, Nil (P.Y* Nil).

8. In the absence of profits during the year, the requirement of payment of Trade License fee to the partnership firm, Samruddhi Holdings, owning the trade name /. Logo (Triple C) will not arise for the year under reference.

9. Indian Bank initiated action u/s. 13(4) of the SARFAESI Act, in respect of property situated at Nedungundram Village measuringtoanextentof133centsoutof553cents being used as God own by the Company.

Aggrieved with this the Company filed an Appeal before Honorable Madras High Court for an injunction restraining Indian Bank against further proceedings. Honorable Madras High Court issued an injunction order restraining Indian Bank against initiating any proceedings and also directed to deposit Rs, 120 Lacs with the High Court Registry. We have deposited Rs,120Lacswith the Registry as directed and the same is accounted under the' Deposit- Others' in our books of Account.

10. Previous year's figures have been regrouped / consolidated wherever applicable / required and furnished accordingly, figures have been rounded off to the nearest rupee.


Mar 31, 2014

Nature of Security :

a. (i) The Existing Construction Equipment Loan and Machinery Term Loan and the funded Interest Term Loan on that would countinue to have exclusive charge on the Plant and Machinery procured from the respective loans.

(ii) The Existing Corporate Loan, Working Capital Term Loans (WCTL I, II and III) and Funded Interest Term Loans (FTL I, II and III) facilities would be secured by a pari passu first charge on the fixed assets of the Company, Fixed Assets of the SEZ Land and Solar Power Plant.

(iii) The Term Loans facilities would be secured by a pari passu second charge on the current assets of the Company.

(iv) All the loans would have the personal guarantees of the Promotoers, viz., Mr. R. Sarabeswar and Mr. S. Sivaramakrishnan.

(v) The promotors, viz., Mr. R. Sarabeswar and Mr. S. Sivaramakrishnan will pledge their entire equity shareholding aggregating to 7,73,51,078 Equity Shares of Face Value Rs. 2/- being 41.86% of the paid up capital of the Company in favour of the lenders, as prescribed by the CDR Guidelines.

b. Term Loan excludes instalments payable with in one year Rs. Nil (PY. Rs. 266 millions) which is classified as current and disclosed in other current liabilities.

c. Rs.20 crores 12.65% Non Convertible Debentures, allotted on 22nd May 2012 with originally repayment terms of Rs.20 millions, Rs.40 millions, Rs.60 millions and Rs.80 millions at the end of 18, 24, 30 and 36 months respectively from the date of allotment and with a put and call option at the end of 24 months from the date of allotment. The debentures are secured by pari- passu charge on the present and future total assets of the company. Pending their participation in the CDR scheme the same is classified and grouped under long term borrowing.

d. Due to inadequate profits during the year, no Debenture Redemption Reserve was created in the books for the financial year read with Section 117C of the Companies act 1956 and GC 9/2002, dated April 18th 2002.

BUSINESS PROFILE:

Consolidated Construction Consortium Ltd. (The company) is a public limited company incorporated under the provisions of the Companies Act., and its shares are listed in two Stock Exchanges in India (BSE and NSE). The company is an integrated turnkey construction service provider having pan India presence with expertise in construction design, engineering, procurement, construction and project management. We also provide construction allied services such as Mechanical & Electrical, Plumbing, Fire Fighting, Heating, ventilation and air conditioning, interior fit out services and glazing solutions. The Company also caters to the requirements of Ready mix concrete and hollow block for clients.

1. OTHER NOTES

1.1 Current Financial Condition, Mitigating Factors & "Going Concern"

A. Financial Condition:

a. The Company''s Operations have been affected during the whole of the Financial Year and the company has incurred losses totaling Rs 32,063.57 Lacs. Further the cash flows of the company have also been affected severely due to the poor collections of receivable and retention monies from various clients.

b. During the year under the review, unexecuted orders for an amount totaling Rs. 137,083 Lacs have been cancelled / terminated pending negotiations / litigations which are underway. The company is proceeding with appropriate / legal remedies including arbitration process, wherever provided for and has been legally advised that it has a strong case and accordingly has not considered any provisions in these results.

c. Subsidiary Companies have a collective loss of Rs 2,989.90 Lacs (PY Loss Rs 2034.85 Lacs) for this year considering the operations being strategic in nature and in view of the management plan for the future, permanent diminution is not considered in the value of investments in these financials.

B. Mitigating Factors:

a. Further the company is in advanced stage of discussions with one strategic overseas investor for investment into one of the subsidiaries.

b. Further the company had been awarded approval of the Corporate Debt Restructuring (CDR) by its lending bankers and the same is under implementation.

In view of the above said mitigating factors the company is positively looking at the scenario as a "Going Concern"

1.2 Corporate Debt Restructuring

During the year the debt restructuring proposal of the Company was referred to the Corporate Debt Restructuring (CDR) Cell by State Bank of India. The restructuring under CDR inter-alia provides for business restructuring envisaging sale of certain assets and investments and financial restructuring of the existing loans and providing fresh loans together with reduction in interest rates and appropriately designed repayments.

The participating lenders constituting 91.53% of the total restructured debt have approved the package. The CDR cell approved the package vide its letters dated 28 March 2014 and 28 April 2014, on certain terms and conditions for the business and financial restructuring including sharing of security among lenders.

In accordance of the terms and conditions of the CDR package the promoters have brought in a sum of Rs 2975 Lacs on 31st March 2014 being the promoters'' contribution for implementation of the scheme.

Pending execution of necessary documents and compliance with certain conditions of the CDR which have been agreed to by the Company and the Promoters, the interest relief of Rs. 1,788.79 Lacs for the year ending 31 March 2014 has been considered in these accounts.

The lenders, with the approval of CDR Empowered Group (CDR EG), shall have the right to recompense (RoR) the reliefs/sacrifice/waivers extended by respective lenders as per CDR Guidelines. Accordingly, the Recompense Amount calculated as per the CDR Guidelines for the year 2013-14 is Rs. 332 Lacs.

1.6 In line with the principle of substance over form for the Chennai Modernisation Airport Project, being executed by Herve Pomerleau - CCCL JV, assessed as a Association of person, by relevant Authorities and as filed with them, its income from operations and it''s related expenditure amounting to NIL (PY Rs. 7,961.04 Lacs) and Rs. 733.79 Lacs (PY Rs. 7,332.28 Lacs) together with the assets and liabilities amounting to Rs. 5,724.39 Lacs (PY Rs. 16,588.88 Lacs) and Rs. 5,724.39 Lacs (PY Rs. 16,588.88 Lacs) respectively have been grouped under respective heads in the current year. There are no dues towards share of profit during the year (PY Rs. 89.44 Lacs) to the party under the consortium agreement in respect of the Chennai Airport modernization project.

1.7 Segment Reporting:

The company''s operations predominantly consist of construction activities. Hence there are no reportable segments under Accounting Standard -17. During the year under report, substantial part of Company''s business has been carried throughout India. The conditions prevailing in India being uniform, no separate geographical disclosures are considered necessary.

1.8 During the year certain performance guarantees amounting to Rs. 6,876.00 Lacs issued by the Banks on behalf of the company have been invoked by the Clients due to alleged contractual non-performance. These amounts have been grouped under the head Loans and Advances and the company has activated appropriate contractual remedies to address these disputes as provided for under the contract between the Company and the Clients. Based on the final outcome of resolution of these disputes necessary entries would be finally passed.

1.9 The Company has reckoned a sum of Rs 16,353 Lacs as income with respect to jobs which have been terminated by the Clients. This amount has been reckoned based on the estimate of the value of work done other claims and forms a part of the amount being sought to be recovered from the Clients for which the company has activated the appropriate mechanism available under the contract between the Company and the Clients..

1.10 Contingent Liabilities:

a. Bank Guarantees and Letter of Credit (Rs. In Lacs)

Particulars 31.03.2014 31.03.2013

Bank Guarantees 39,561,51 78,805.54

Letter of Credit 653.49 6,931.22

Buyer Line of Credit - 5,164.94

Total 40,215.00 90,901.70

b. Bank Guarantees and Letter of Credit on behalf of Subsidiaries/Joint Ventures (Rs. in Lacs)

Subsidiary/Joint Venture As at 31.03.2014 As at 31.03.2013

CCCL Infrastructure Limited

CCCL Power Infrastructure Limited Nil Nil

CCCL Samjung Tech Consortium Nil 1,421.50

CCCL Sam India Consortium Nil 2,698.80

Total Nil 4,120.30

c. Corporate Guarantee(s):

Corporate Guarantees on behalf of its subsidiaries and AOP are as under: (Rs. in Lacs)

Subsidiary/JointVenture As at 31.03.2014 As at 31.03.2013

Consolidated Interiors Limited 1,550.00 1,550.00

Noble Consolidated Glazings Limited 3,600.00 3,600.00

CCCL Infrastructure Limited 4,204.00 4,204.00

Total 9,354.00 9,354.00

d. Demands raised on the company by the respective authorities are as under: (Rs. in Lacs)

Nature of Statue As at 31.03.2014 As at 31.03.2013

Service Tax# 11,285.15 11,007.74

Excise Duty 65.59 77.25

VAT/Sales Tax 1,832.12 1,832.12

Income Tax 2,045.01 2,169.04

Customs Duty 2.93 2.93

Total 15,230.80 15,089.08

# The Honorable CESTAT has passed an order staying the collection of the demand, in respect of the disputed liability for the period April 2006-September 2008. As the issues involved for the subsequent period are of the similar nature, there is no provision taken in accounts.

Based on the expert opinions obtained, the Company had been advised not making any provision in the Accounts.

1.11 Claims against the company not acknowledged as debt Rs. 64.08 Lacs (P.Y.Rs. 64.08 Lacs).

1.12 Estimated amount of contracts remaining to be executed on capital account and not provided for- Rs. Nil (P.Y. Rs. 17.19 Lacs).

1.13 In the absence of profits during the year, the requirement of payment of Trade License fee to the partnership firm, Samruddhi Holdings, owing the trade name/. Logo (Triple C) will not arise for the year under reference.

1.14 Indian Bank initiated action u/s. 13(4) of the SARFAESI Act, in respect of property situated at Nedungundram Village measuring to an extent of 133 cents out of 553 cents being used as Godown by the Company.

Aggrieved with this the Company filed an Appeal before Madras High Court for an injunction restraining Indian Bank against further proceedings. Madras High Court issued an injunction order restraining Indian Bank against initiating any proceedings and also directed to deposit Rs. 120.00 Lacs with the Madras High Court Registry. We have deposited Rs. 120.00 Lacs with the Registry as directed and the same is accounted under the ''Deposit-Others'' in our books.

1.15 Company having defaulted in the first installment of repayment of principal and interest thereon amounting to Rs 268 Lacs, ILFS, the trustees of the Secured non- convertible debentures Issued to Tata Capital, filed an Interim application before Madras High Court seeking injunction restraining the company to proceed with the CDR mechanism. However the Honorable Court declined to grant injunction as sought and ordered notice. The matter is posted for orders, pursuant to our Bank''s counter filed in this regard.

1.16 Previous year''s figures have been regrouped/consolidated wherever applicable / required and furnished accordingly. Figures have been rounded off to the nearest rupee.


Mar 31, 2013

Note-1. BUSINESS PROFILE:

Consolidated Construction Consortium Ltd. (The company) is a public limited company incorporated under the provisions of the Companies Act., and its shares are listed in two Stock Exchanges in India (BSE and NSE). The company is an integrated turnkey construction service provider having pan India presence with expertise in construction design, engineering, procurement, construction and project management. We also provide construction allied services such as Mechanical & Electrical, Plumbing, Fire Fighting, Heating, ventilation and air conditioning, interior fit out services and glazing solutions. The Company also caters to the requirements for Ready mix concrete and hollow block for clients.

2.1 In line with the principle of substance over form for the Chennai Modernisation Airport Project, being executed by Herve Pomerleau - CCCL JV, assessed as a Association of person, by relevant Authorities and as filed with them, its income from operations and it''s related expenditure amounting to Rs. 7,961.04 Lacs (PY Rs. 43,286.27 Lacs) and Rs. 7332.28 Lacs (PY Rs. 40,199.21 Lacs) together with the assets and liabilities amounting to Rs. 16,588.88 Lacs (PY Rs. 18,095.42 Lacs) and Rs. 16,588.88 Lacs (PY Rs. 18,095.42 Lacs) respectively have been grouped under respective heads in the current year. A sum of Rs. 89.44 Lacs (PY Rs. 761.75 Lacs) being share of profits is due and payable to the party under the consortium agreement in respect of the Chennai Airport modernization project has duly been disclosed.

2.2 Segmental Reporting:

The company''s operations predominantly consist of construction activities. Hence there are no reportable segments under Accounting Standard -17. During the year under report, substantial part of Company''s business has been carried through out India. The conditions prevailing in India being uniform, no separate geographical disclosures are considered necessary.

2.3. Contingent Liabilities:

a. Bank Guarantees and Letter of Credit

(Rs.In Lacs)

Particulars 31.03.2013 31.03.2012

Bank Guarantees 78,80554 86,892.62

LetterotCiedit 6,931.22 7.007.43

Buyer Line Credit 5,164.94

Total 90,901.70 93,900.05

2.4 Claims against the company not acknowledged as debtRs. 64.08 Lacs (P.Y. Rs. 474.32 Lacs).

2.5 Estimated amount of contracts remaining to be executed on capital account and not provided for - X 17.19 Lacs (P.Y. Rs. 202.69 Lacs).

2.6 In the absence of profits during the year, the requirement of payment of Trade License fee to the partnership firm, Samruddhi Holdings, owing the trade name /.Logo (Triple C) will not arise for the year under reference.

2.7 Indian Bank initiated action u/s. 13(4) of the SARFAESI Act, in respect of property situated at Nedungundram Village measuring to an extent of 133 cents out of 553 cents being used as Godown by the Company.

Aggrieved with this the Company filed an Appeal before Madras High Court for an injunction restraining Indian Bank against further proceedings. Madras High Court issued an injunction order restraining Indian Bank against initiating any proceedings and also directed to deposit Rs. 120.00 Lacs with the Madras High Court Registry. We have deposited 1120.00 Lacs with the Registry as directed and the same is accounted under the ''Deposit -Others'' in our books.

2.8 Previous year''s figures have been regrouped/consolidated wherever applicable/ required and furnished accordingly. Figures have been rounded off to the nearest rupee.


Mar 31, 2012

1. BUSINESS PROFILE:

Consolidated Construction Consortium Ltd. (The company) is a public limited company incorporated under the provisions of the Companies Act., and its shares are listed in two Stock Exchanges in India (BSE and NSE). The company is an integrated turnkey construction service provider having pan India presence with expertise in construction design, engineering, procurement, construction and project management. We also provide construction allied services such as Mechanical & Electrical, Plumbing, Fire Fighting , Heating , ventilation and air conditioning, interior fit out services and glazing solutions. We also cater to the requirements for Ready mix concrete and hollow block for our clients.

a. Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs.2 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31 March 2012, the amount of per share dividend recognized as distributions to equity shareholders was Rs. Nil (31 March 2011: Rs.0.50)

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 in proportion to the number of equity shares held by the shareholders.

Nature of Security :

a. Term Loans from Banks: Extension of pari passu charge on immovable properties , movable assets , stocks , spares , stores and book debts to cover the loans and first charge on assets purchased out of Term Loan

b. Term Loan excludes installments payable within one year Rs. 3084.40 lacs ( PY Rs.2080.15 lacs) which is classified as current and disclosed in other current liabilities.

2. In line with the principle of substance over form for the Chennai Modernization Airport Project, being executed by Hervey Pomerleau - CCCL JV, assessed as a AOP, by relevant Authorities and as filed with them, it's income from operations and its related expenditure amounting to ' 40586.27 Lacs (PY Rs. 60703.31 Lacs) and Rs. 37499.21 Lacs (PY Rs. 55791.20 Lacs) together with the assets and liabilities amounting to Rs. 16373.43 Lacs (PY Rs. 26526.33 Lacs) and Rs. 14373.43 Lacs (PY Rs. 24526.33 Lacs) respectively have been grouped under respective heads in the current year. A sum of Rs. 1299.81 Lacs (PY Rs. 1215.10 Lacs) being share of profits is due and payable to the party under the consortium agreement in respect of the Chennai Airport modernization project has duly been disclosed.

3. Segmental Reporting:

The company's operations predominantly consist of construction activities. Hence there are no reportable segments under Accounting Standard -17. During the year under report, substantial part of Company's business has been carried throughout India. The conditions prevailing in India being uniform, no separate geographical disclosures are considered necessary.

In view of the inadequacy of profits the remuneration paid to the CEO / Chairman, Managing Director and Director (Operations) is in excess of the limits specified under schedule XIII.

The company at its meeting of its remuneration committee / board of director held on 28.10.2011 and duly approved by the share holders by postal ballot on 20.12.2011 has made an application to the central government for approval for the remuneration paid in excess of the limits.

The total remuneration excess paid during the current year is Rs. 315.20 Lacs.

a. Amounts totaling Rs. 26267.40 Lacs (P.Y.Rs.15668.40 Lacs), representing contract costs relating to future activities have duly been shown separately in the Accounts under current assets.

b. Contract W.I.P. includes a sum of retention money of amounts totaling Rs. 15153.62 Lacs (P.Y.17507.80 Lacs) deducted by the customers.

4. Contingent Liabilities:

a. Bank Guarantees including Letter of Credit outstanding as on 31.03.2012 - Rs. 80231.60 Lacs (P.Y. Rs. 87927.70 Lacs). This includes Bank Guarantees and Letters of Credit executed by the company on behalf of CCCL Power Infrastructure Limited Rs. 106.59 Lacs (PY Rs. 100.00 Lacs).

b. The Company has executed Corporate Guarantees on behalf of its subsidiaries and AOP during the year.

i) on behalf of Consolidated Interiors Ltd. - Rs. 1550.00 Lacs (P.Y.Rs. 1400.00 Lacs)

ii) on behalf of Noble Consolidated Glazing's Ltd. - Rs. 3600.00 Lacs (P.Y.Rs.3000.00 Lacs)

iii) on behalf of Herve Pomerleau International CCCL Joint Venture - Rs. 48200.00 Lacs (P.Y.Rs.48200.00 Lacs)

iv) on behalf of CCCL Infrastructure Ltd. - Rs. 4204.00 Lacs (P.Y. Nil)

c. Following demands have been raised on the company by the respective authorities:

i) On account of Sales tax /VAT - Rs.985.41 Lacs (P.Y.Rs.872.70 Lacs).

ii) On account of Service Tax - Rs.12298.33 Lacs (P.Y.Rs.11207.24Lacs) [for the period from April, 2006-March, 2012].

The Honorable CESTAT has passed an order staying the collection of the demand in respect of the disputed tax liability for the period April 2006 - Sep 2008. As the issues involves for the subsequent periods are of a similar nature there has been no provisions taken in the accounts.

iii) On account of Excise Duty - Rs.20.97 Lacs (P.Y. Rs.Nil) (for the period from Apr 2011 to Mar 2012)

iv) On account of Income Tax - Rs.25.40 Lacs (P.Y Rs.25.40 Lacs) [for the period from April 2004-March 2005].- Rs.1295.50 Lacs (P.Y Rs.1295.50 Lacs) [for the period from April 2005 - March 2008]. - Rs.414.97 Lacs (P.Y Rs. Nil) [for the period from April 2008-March 2009].

Based on the expert opinions obtained, the Company does not feel any liability will arise and hence no provision has been made in the Accounts.

5. Claims against the company not acknowledged as debt Rs.474.32Lacs- (P.Y.Rs.599.24Lacs).

6. Estimated amount of contracts remaining to be executed on capital account and not provided for - Rs.202.69 Lacs (P.Y. Rs.663.60 Lacs).

7. In view of the inadequacy of profits the company has made a representation to Samruddhi Holdings a Partnership firm in which the Directors / Chief Financial Officer are partners for the use of the name, logo (Triple C) and Trade Mark (Triple C) for not insisting on the Trade License fee payable to it in accordance with the approval of the Ministry of Corporate Affairs, Government of India vide its Letter dated 12.04.2011. Samruddhi Holdings have given their consent in this regard. The total value of Trade License fee not charged to the Statement of Profit and Loss in the current year is Rs.54.55 Lacs.

8. Indian Bank initiated action u/s. 13(4) of the SARFAESI Act, in respect of property situated at Nedungundram Village measuring to an extent of 133 cents out of 553 cents being used as Godown by the Company.

Aggrieved with this the Company filed an Appeal before Madras High Court for an injunction restraining Indian Bank against further proceedings. Madras High Court issued an injunction order restraining Indian Bank against initiating any proceedings and also directed to deposit Rs. 120.00 Lacs with the Madras High Court Registry. We have deposited Rs. 120.00 Lacs with the Registry as directed and the same is accounted under the 'Deposit - Others' in our books.

9. Previous year's figures have been regrouped / consolidated to conform the new formats for Schedule VI as prescribed by the Ministry of Corporate Affairs vide NotificationNo.S.O447 (E) dated 28-02-2011.

Note : Cash Flow statement has been prepared under the indirect method as set out in the AS 3 on Cash Flow statements as specified in the companies (AS) Rules, 2006.

Previous year figures have been regrouped / reclassified wherever necessary.


Mar 31, 2011

1. Securities Premium Account represents the difference between the consideration received in respect of shares issued and the face value.

2. Amounts due to small scale industrial undertakings / suppliers under the MSMED Act,2006:

The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act could not be furnished.

3. Current tax and Deferred Tax:

a. Provision for Current Tax is Rs. 331 Million (P.Y.372.27 Million), in accordance with the Accounting Policy, in this regard, followed by the Company. No provision for Fringe Benefit Tax is made in the current year (P.Y. Nil),

b. Deferred Tax Liability as at March 31,2011 comprises of the following:

4. Related party transactions:

A. Related parties:

Particulars Name of the Entity

Subsidiaries (wholly owned) i. Consolidated Interiors Limited

ii. Noble Consolidated Glazings Limited

iii. CCCL Infrastructure Limited

iv. CCCL Power Infrastructure Limited

v. Delhi South Extension Car Park Limited

Step - down Subsidiary CCCL Pearl City Food Port SEZ Limited

Enterprises owned or significantly influenced by A. Companies:

Key Management Personnel or their Relatives Yuga Homes Ltd

Yuga Agate

Taurus Plant & Equipment Services Ltd.

B. Partnership Firms:

Samruddhi Holdings

Joint Ventures A. Partnership Firms:

Yuga Builders

Yuga Developers

Consortium Arrangements - refer note no. 7 below Association of Persons

Herve Pomerleau International CCCL Joint Venture

Relatives i. Mrs.Usha-Spouse of wholetime director

ii. Mr. Kaushik Ram .S - Son of wholetime director

Key management personnel A. Whole Time Directors:

R. Sarabeswar

S. Sivaramakrishnan

V.G. Janarthanam

B. Chief Financial Officer:

T.R.Seetharaman

4. In line with the principle of substance over form for the Chennai Modernisation Airport Project, being executed by Herve Pomerleau - CCCL JV, assessed as a AOP, by relevant Authorities and as filed with them, its income from operations and its related expenditure amounting to Rs. 6184.54 Million (PY Rs.3028.86 Millions) and Rs. 5693.33 Million (PY Rs.2819.45 Million) together with the assets and liabilities amounting to Rs. 2652.63 Million (PY Rs. 1953.74 Million) and Rs. 2452.63 Millions (PY Rs. 1753.74 Million) respectively have been grouped under respective heads in the current year. A sum of Rs. 121.51 Millions (PY Rs. 54.38 Millions) being share of profits is due and payable to the party under the consortium agreement in respect of the Chennai Airport modernization project has duly been disclosed.

5. Segmental Reporting:

The companys operations predominantly consist of construction activities. Hence there are no reportable segments under Accounting Standard -17. During the year under report, substantial part of Companys business has been carried through out India. The conditions prevailing in India being uniform, no separate geographical disclosures are considered necessary.

6. Disclosures under AS - 7 (Revised)

a.Disclosures as required under AS-7 (Revised) together with the completed contracts are furnished hereunder:

c. Amounts totaling Rs. 1566.84 Million (P.Y.Rs. 1322.65 Millions), representing contract costs relating to future activities have duly been shown separately in the Accounts under current assets.

d. Contract W.I.P. includes a sum of retention money of amounts totaling Rs. 1750.78 Million (P.Y.Rs. 1632.58 Millions) deducted by the customers.

7. Contingent Liabilities:

a. Bank Guarantees including Letter of Credit outstanding as on 31.03.2011 - Rs. 8792.77 Million (P.Y. Rs. 7210.62 Million). This includes Bank Guarantees and Letters of Credit executed by the company on behalf of Herve Pomerleau International CCCL Joint Venture for Rs. 96.00 Million (P.Y. Rs. 739.20 Million), on behalf of CCCL Infrastructure Limited Rs. 92.56 Millions (PY Rs. NIL), on behalf of CCCL Power Infrastructure Limited Rs. 10.00 Millions (PY Nil).

b. The Company has executed Corporate Guarantees on behalf of its subsidiaries and AOP during the year.

i) on behalf of ConsolidatedInteriors Ltd. - Rs. 140.00 Million (P.Y. Rs. 140.00 Million)

ii) on behalf of Noble Consolidated Glazings Ltd. -Rs. 300.00 Million (P.Y. Rs. 170.00 Million)

iii) on behalf of Herve Pomerleau International CCCL Joint Venture -Rs. 4820.00 Million (P.Y. Rs. 4820.00 Million)

c. Following demands have been raised on the company by the respective authorities:

i) On account of Sales tax/VAT -Rs.87.27Million(P.Y.Rs.135.93 Million).

ii) On account of Service Tax-

- Rs. 776.13 Millions (P.Y. Rs. 705.60 Millions) [for the period from April, 2006 - March, 2008].

- Rs. 278.22 Millions (P.Y. Rs. 3.16 Millions) [for the period from April 2008 - March, 2009].

iii) On account of Income Tax

- Rs. 2.54 Million (P.YRs. 2.54 Million) [for the period from April 2004-March 2005].

- Rs.129.55Million(P.Y?4.88Million)[fortheperiodfromApril 2005-March 2008].

Based on the legal opinion obtained, the Company does not feel any liability will arise and hence no provision has been made in the Accounts.

8. Claims against the company not acknowledged as debt Rs. 59.92 Million-(P.Y. Rs. 45.92 Million).

9. Estimated amount of contracts remaining to be executed on capital account and not provided for - Rs. 66.36 Million (P.Y. Rs. 13.92 Million).

10. Trade Licence fee represents amounts paid to Samruddhi Holdings a Partnership firm in which the Directors / Chief Financial Officer are partners for the use of the name, logo (Triple C) and Trade Mark (Triple C) in accordance with the approval of the Ministry of Corporate Affairs, Government of India vide its Letter dated 8th April, 2008. The amount payable @ 4% amounts to Rs. 26.57 Million. However it is restricted to Rs. 20.00 Million in line with the above approval.

11. Indian Bank initiated action u/s. 13(4) of the SARFAESI Act, in respect of property situated at Nedungundram Village measuring to an extent of 133 cents out of 553 cents being used as Godown by the Company.

Aggrieved with this the Company filed an Appeal before Madras High Court for an injunction restraining Indian Bank against further proceedings. Madras High Court issued an injunction order restraining Indian Bank against initiating any proceedings and also directed to deposit Rs. 12.00 Millions with the Madras High Court Registry. We have deposited Rs. 12.00 Millions with the Registry as directed and the same is accounted under the Deposit - Others in our books.

12. As construction activity is considered as a service activity, it is covered under para 3 (ii) (c) of Part II to Schedule VI to the Companies Act 1956.

13. Previous years figures have been regrouped/consolidated wherever applicable/ required and furnished accordingly. Figures have been rounded off to the nearest rupee.


Mar 31, 2010

1. Securities Premium Account represents the difference between the consideration received in respect of shares issued and the face value.

2. Amounts due to small scale industrial undertakings / suppliers under the MSME Act,2006:

The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act and could not be furnished.

3. Current tax and Deferred Tax:

a. Provision for Current Tax is Rs 372.27 Million (P.Y.216.28 Million), in accordance with the Accounting Policy, in this regard, followed by the Company. No provision for Fringe benefit Tax is made in the current year (P.Y.7.50 Million).

b. Deferred Tax Liability as at March 31,2010 comprises of the following:

4. Related party transactions:

A. Related parties:

Particulars Name of the Entity

Subsidiary

i. Consolidated Interiors Limited

ii. Noble Consolidated Glazings Limited iii. CCCL Infrastructure Limited

Step - down Subsidiary CCCL Pearl City Food Port SEZ Limited

Enterprises owned or significantly influenced by

A. Companies:

Key Management Personnel or their Relatives Yuga Homes Ltd

Taurus Plant & Equipment Services Ltd.

B. Partnership Firms:

Samruddhi Holdings

Joint Ventures A. Partnership Firms:

Yuga Builders Yuga Developers

Consortium Arrangements - refer note no. 7 below Association of Persons

Harve Pomerleau International CCCL Joint Venture

Relatives i. Mrs.Usha-Spouse of wholetime director

ii. Mr. Kaushik Ram .S - Son of wholetime director

Key management personnel A. Whole Time Directors:

R. Sarabeswar

S. Sivaramakrishnan

V.G. Janarthanam

B. Chief Financial Of ficer:

T.R.Seetharaman

5. In line with the principle of substance over form for the Chennai Modernisation Airport Project, being executed by Herve Pomerleau - CCCL JV, assessed as a AOP, by relevant Authorities and as filed with them, its income from operations and its related expenditure amounting to Rs. 3028.86 Million and Rs. 2819.45 Million together with the assets and liabilities amounting to Rs. 1953.74 Million and Rs. 1753.74 Million respectively have been grouped under respective heads in the current year. A sum of Rs 54.38 Million being share of profits is due and payable to the party under the consortium agreement in respect of the Chennai Airport modernization project has duly been disclosed.

6. Segmental Reporting:

The companys operations predominantly consist of construction activities. Hence there are no reportable segments under Accounting Standard -17. During the year under report, substantial part of Companys business has been carried through out India. The conditions prevailing in India being uniform, no separate geographical disclosures are considered necessary.

7. Miscellaneous Expenditure:

As a prudent measure over the accounting policy referred to in Note No.10 of Accounting Policies, the company has decided to absorb the entire sum of Rs 80.68 million being the balance lying in the expenditure on IPO. The above amount has been adjusted against the Securities Premium account in line with the provisions of Section 78(2)(c) of the Companies Act 1956. Pursuant to the above absorptions the profit for the year would have been less by Rs 28.07 million and EPS by Rs 0.15 as compared to the previous year

8. Contingent Liabilities:

a. Bank Guarantees including Letter of Credit outstanding as on 31.03.2010 -Rs.7210.62 Million (P.Y.Rs.4388.72 Million). This includes Bank Guarantees and Letters of Credit executed by the company on behalf of Herve Pomerleau International CCCL Joint Venture for Rs.739.20 Million (P.Y. Rs.879.63 Million).

b. The Company has executed Corporate Guarantees on behalf of its subsidiaries and AOP during the year i) on behalf of Consolidated Interiors Ltd. - Rs. 140.00 Million (PY.Rs.140.00 Million)

ii) on behalf of Noble Consolidated Glazings Ltd.- Rs.170.00 Million (P.Y. 55.00 Million)

iii) onbehalf of Herve Pomerleau International CCCL Joint Venture-Rs. 4820.00 Million (P.Y. 601.10 Million)

c. Following demands have been raised on the company by the respective authorities: i) On account of Sales tax / VAT - Rs.135.93 Million (P.Y. Rs.80.23 Million). ii) On account of Service Tax -

- Rs.391.52 Million (P. Y.Rs.559.30 Million) [for the period from April, 2006 - September, 2007].

- Rs. 314.08 Million (P.Y.Rs. 4.96 Million) [for March, 2008]

- Rs. 3.16 Million [ for the period from April 2008 - September 2008].

Based on the legal opinion obtained, the Company does not feel any liability will arise and hence no provision has been made in the Accounts.

iii) On account of Income Tax

- Rs. 2.54 Million (P.Y Rs. 2.54 Million) [for the period from April 2004 - March 2005].

- Rs. 4.88 Million (P.Y Rs. 4.88 Million) [for the period from April 2005-March 2006].

9. Claims against the company not acknowledged as debt Rs.45.92 Million- (P.Y.Rs.4.90 Million).

10. Estimated amount of contracts remaining to be executed on capital account and not provided for - Rs.13.92 Million (P.Y. Rs.10.18 Million).

11. Trade Licence fee represents amounts paid to Samruddhi Holdings a Partnership firm in which the Directors / Chief Financial Officer are partners for the use of the name, logo (Triple C) and Trade Mark (Triple C) in accordance with the approval of the Ministry of Corporate Affairs, Government of India vide its Letter dated 8th April, 2008. The amount payable @ 4% amounts to Rs.26.81 Million. However it is restricted to Rs.20.00 Million in line with the above approval.

12. As construction activity is considered as a service activity, it is covered under para 3 (ii) (c) of Part II to Schedule VI to the Companies Act 1956.

13. Previous years figures have been regrouped/consolidated wherever applicable/ required and furnished accordingly. Figures have been rounded off to the nearest rupee.

 
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