Mar 31, 2018
1. Corporate Information
Gayatri Projects Limited (âGPLâ, âthe Companyâ) is one of the largest infrastructure company executing works in several high growth sectors within the infrastructure space such as Roads, Irrigation, Rail, Airports Development, Power, Mining and Industrial works.
The Company is a public limited Company which is listed on two recognized stock exchanges in India. The registered office of the Company is located at B1, 6-31090, TSR Towers, Rajbhawan Road, Somajiguda, Hyderabad 500 082.
2.1 Of these, 16,96,248 Equity shares of Gayatri Energy Ventures Pvt. Ltd. (GEVPL) have been pledged to Catalyst Trusteeship Limited for the loan availed by the GEVPL and 48,27,482 Equity shares have been pledged to IDBI Trusteeship Limited for the loan availed by the company.
2.2 25,500 Equity shares of Bhandara Thermal Power Corporation Limited have been pledged to IL & FS is yet to be released by the IL & FS as the loan is repaid by the step-down subsidiary company.
2.3 All the Preference Shares held by the Company in Gayatri Hitech Hotels Ltd have been pledged to the consortium of the lenders of the company.
2.4 9% Non-convertible redeemable preference shares of M/s. Gayatri Hitech Hotels Ltd (GHHL) has been converted into 4% Compulsory convertible Cumulative Preference Shares (âCCCPSâ). Further 3 bonus shares for every one CCCPS have been issued by GHHL during the year and the Company has sold 1,57,12,204 no. of CCCPS for a consideration of Rs.3,928.05 Lakhs
2.5 All the Equity Shares held by the company in Gayatri Sugars Limited have been pledged to the consortium of the lenders of the Company.
3 (a) Terms / Rights, Preferences and restrictions attached to Equity Shares:
The company has only one class of shares referred to as equity shares having a par value of Rs.2/-. Each holder of equity shares 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 in proportion to the number of equity shares held by the shareholders.
3 (b) The company has raised an amount of Rs.200 crores by issuing 99,46,785 nos. Equity Shares of Rs.2/- each at a premium of Rs.199.07 through Qualified Institutional Placement.
3 (c) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:
3 (d) Details of shares held by the holding company, the ultimate holding company, their subsidiaries and associates: Nil
3 (e) Details of shares held by each shareholder holding more than 5% shares:
4.1 Equipment Loans
The Equipment loans are secured by hypothecation of specific equipments acquired out of the said loans and all these loans are guaranteed by directors. The rate of interest on these loans varies between 11% to 15%.
4.2 Term loans
The secured term loans are secured by hypothecation of construction equipments not specifically charged to other banks, immovable properties of group companies and personal guarantees of the promoter Directors. The rate of interest various between 11% to 13% with an average yield of 12.04% p.a.
4.3 External Commercial Borrowing:
Details of External Commercial Borrowings
The Company availed Foreign Currency Loan of USD $ 24.42 million from an Indian Scheduled Bank to meet a part of funds requirement towards redemption of outstanding FCCBs. The ECB loan is repayable in 24 quarterly installments commencing from October 2013 with rate of interest at 3 months USD LIBOR 500bps.
Nature of Security
(i) Equitable mortgage of immovable property of 600 acres in the name of step down subsidiary company.
(ii) Pledge of unencumbered equity shares of promoters in Gayatri Projects Ltd.
(iii) Personal guarantee of two promoter directors.
4.4 Vehicle Loans:
The Vehicle loans availed are secured by hypothecation of specific vehicles purchased out of the said loans. The vehicle loans carry interest rate between 11% to 15% p.a.
4.5 The unsecured loans from directors represents the dividend amount brought back by the promoter directors in compliance with the terms and conditions stipulated by the Lenders.
4.6 Current Maturities of long term borrowings have been disclosed under the head âOther Current Liabilitiesâ (Refer Note - 20).
4.7 Interest amount of Rs.1,045.58 Lakhs for the month of March, 2018 debited on 31.03.2018 is due as on Balance Sheet date.
Nature of Security and Terms of Repayment
5.1 Working Capital Facilities (Secured)
The working capital facilities from the consortium of Banks are secured by:
- Hypothecation against first charge on stocks, book debts and other current assets of the Company both present and future ranking paripassu with consortium banks.
- Hypothecation against first charge on all unencumbered fixed assets of the Company both present and future ranking paripassu with consortium banks.
- Equitable mortgage of properties belonging to promoters, directors, group companies.
- Personal guarantee of promoter directors, group companies/firms and relatives.
Period and amount of interest due as on balance sheet date:
- Interest amount of Rs.878.72 Lakhs for the month of March, 2018 debited on 31.03.2018 is due as on Balance Sheet date.
6. Other Notes forming part of the Financial Statements
6.1 Leases
Disclosure under Indian Accounting Standard - 17 âLeasesâ, issued by the Institute of Chartered Accountants of India.
Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor, are recognized as operating leases. Lease rentals under operating leases are recognized in the statement of profit and loss on a straight-line basis. The Company has taken various godown/office premises (including Furniture and Fittings if any) under lease and license agreements for periods which generally range between 11 months to 3 years. These arrangements are renewable by mutual consent on mutually agreed terms. Under some of these arrangements the Company has given refundable security deposits. The lease payments are recognized in the Statement of Profit and Loss under Rent, Rates and Taxes.
Assets taken on lease by the Company in its capacity as lessee, where the Company has substantially all the risks and rewards of ownership are classified as finance lease. Such a lease is capitalized at the inception of the lease at lower of the fair value or the present value of the minimum lease payments and a liability is recognized for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each year.
The Company has taken vehicles on financial lease from banks / Financial Institutions. The details of contractual payments under the agreement are as follows:
6.2 Impairment of Non-Financial Assets
In the opinion of the management, there are no impaired assets requiring provision for impairment loss as per the Ind AS 36 on âImpairment of Non Financial Assetsâ. The recoverable amount of building, plant and machinery and computers has been determined on the basis of âValue in useâ method.
6.3 Disclosure pursuant to Indian Accounting Standard (Ind AS) - 19 âEmployeeâs Benefitsâ:
i) The summarized position of Post-employment benefits and long term employee benefits recognized in the statement of Profit & Loss and Balance Sheet as required in accordance with Indian Accounting Standard - 19 issued by the Institute of Chartered Accountants of India are as under:-
6.4 Segment Reporting
The Companyâs operations predominantly consist of construction / project activities. Hence there are no reportable segments under Ind AS - 108. During the year under report, the Companyâs business has been carried out only in India. The conditions prevailing in India being uniform, no separate geographical disclosures are considered necessary.
6.5 Dues to Micro and Small Enterprises:
On the basis of information available with the Company, there are no dues outstanding for more than 45 days to Small Scale Industrial Undertaking (SSI). The Company has not received any intimation from âsuppliersâ 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 have not been given.
6.7 There are no amounts due and outstanding to be credited to Investors Education & Protection Fund as on 31-03-2018 and amounts which are required to be transferred to such funds have been transferred.
6.8 Disclosure pursuant to Indian Accounting Standard - 11 âConstruction Contractsâ
Income is recognized on fixed price construction contracts in accordance with the percentage completion basis, which necessarily involve technical estimates of the percentage of completion, and costs to completion, of each contract / activity, on the basis of which profits and losses are accounted. Such estimates, made by the Company and certified to the Auditors have been relied upon by them, as these are of technical nature.
6.9 Capital Management
For the purpose of the Companyâs capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The Company strives to safeguard its ability to continue as a going concern so that they can maximize returns for the shareholders and benefits for other stake holders. The aim is to maintain an optimal capital structure and minimize the cost of capital.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may return capital to shareholders, issue new shares or adjust the dividend payment to shareholders (if permitted). Consistent with other entities in the industry, the Company monitors its capital using the gearing ratio which is net debt divided by total equity.
6.10 Financial Instruments:
A. Some of the Companyâs financial assets and financial liabilities are measured at fair value at the end of the reporting period.
Financial Instruments by category.
Financial Assets and Financial Liabilities are the categories of Financial Instruments.
B. Fair value hierarchy
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
Level 2 inputs are other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or Liability.
6.11 Financial risk management objectives and policies
The Companyâs activities expose it to a variety of financial risks like market risk, credit risk and liquidity risks. The Companyâs focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.
(i) 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: interest rate risk, currency risk and other price risk, such as equity price risk. Major financial instruments affected by market risk, includes loans and borrowings.
a. Interest rate risk
Majority of the Non-current (Long Term) borrowings of the Company bear fixed interest rate, thus interest rate risk is limited for the Company.
b. Foreign Currency Risk:
The Companyâs foreign Currency exposure i.e External Commercial Borrowings in US$ is completely hedged and the details are as follows:
c. Equity Price Risks:
Majority of the Companyâs investments are made into non-listed equity securities. The Companyâs exposure into listed equity investments is very limited and the fair value of listed securities as at 31st March, 2018 was Rs.113.25 Lakhs. Since the exposure into listed equity investments are very limited, the changes of equity securities price would not have a material effect on the profit or loss of the Company.
(ii) Credit risk management
Credit risk refers to the risk of default in its obligation by the counter party resulting in a financial loss. The maximum exposure of the financial assets is contributed by trade receivables, work-in-progress/ unbilled revenue, cash and cash equivalents and receivables from group companies.
Credit risk on trade receivables, work in progress/unbilled revenue is limited as the customers of the company mainly consist of the Government promoted entities, having strong credit worthiness. The company takes into account ageing of accounts receivables and the companyâs historical experience of the customers and financial conditions of the customers.
(iii) Liquidity Risk:
Liquidity Risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Companyâs management and finance department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by the senior management.
6.12 Pursuant to the introduction of the Goods and Service Tax (GST) w.e.f 1st July, 2017 all indirect taxes have got subsumed into GST. During the year, the company has executed various Construction Contracts/projects of NHAI /other state and central government Departments and in majority of the cases, the work orders for these contracts were issued under the erstwhile previous tax laws. The aforesaid government agencies/depts. are in the process of adopting a uniform billing system/policy for reimbursement of any additional burden on account of GST to the contractors. During the year, one of the government departments namely NHAI has issued a circular vide No NHAI/F&A/GST-2017-18/SM dated 04/10/2017, whereby it had agreed to reimburse the additional GST burden if any on the contracts, the company had filled the requisite documents before the NHAI for reimbursement of GST. The company has recognized impact of GST amount under other Current Assets as receivable.
6.13 The Company has earlier given interest bearing Inter-Corporate Deposits (ICDs) to non-related parties. Though the recovery of these ICDs is delayed during previous years, the company has recovered considerable amounts during the current year and the management is confident of recovering the balance amount in due course. In view of this, no provision for the same is required to be made during the year.
6.14 In the ordinary course of business, the Company has given advances to sub-contractors grouped under other current assets and the recovery of some of these advances got delayed due to reason that the corresponding contract works is yet to commence. In the opinion of the management, the said works for which advances are given have not commenced due to certain extraneous factors and delay is not attributed to sub-contractor default/failure. In view of this, the management is confident to commence the works in near future and recover the advances from the sub-contractors. Therefore, the advances are considered as good and recoverable and hence no provision is made.
6.15 M/s. Sai Maatarani Tollways Limited (erstwhile 100% subsidiary company), is a special Purpose Vehicle (SPV) incorporated for the purpose of execution of the project âFour Laning of Panikoili-Rimuli section of NH-215. An amount of Rs.224.94 crores as on 31.03.2018 is receivable from the said subsidiary company on account of additional cost incurred on the project in respect of EPC works executed by the company which is suitably considered by the said subsidiary company and requested the NHAI for additional financial support and as informed to the company, the proposal for additional financial support is reviewed and considered by the NHAI and hence, in the opinion of the management no provision is required to be provided in the books of accounts in respect of receivables amount and other amounts.
6.16 Disclosure pursuant to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in respect of loans and advances in the nature of loans
6.17 Previous year figures are regrouped / reclassified to match with the current year presentation.
6.18 All amounts are rounded off to nearest Lakhs.
Mar 31, 2017
1 Equipment Loans
The Equipment loans are secured by hypothecation of specific equipments acquired out of the said loans and all these loans are guaranteed by directors. The rate of interest on these loans varies between II% to I5%.
2 Term loans
The secured term loans are secured by hypothecation of construction equipments not specifically charged to other banks, immovable properties of group companies and personal guarantees of the promoters. The rate of interest various between II% to 13% with an average yield of 12.04% p.a.
3 External Commercial Borrowing:
Details of External Commercial Borrowings
The Company availed Foreign Currency Loan of USD $ 24.42 million from an Indian Scheduled Bank to meet a part of funds requirement towards redemption of outstanding FCCBs. The ECB loan is repayable in 24 quarterly installments commencing from October 2013 with rate of interest at 3 months USD LIBOR 500bps.
Nature of Security
(i) Equitable mortgage of immovable property of 600 acres in the name of step down subsidiary company.
(ii) Pledge of unencumbered equity shares of promoters in Gayatri Projects Ltd.
(iii) Personal guarantee of the two promoter directors.
4 Vehicle Loans:
The Vehicle loans availed are secured by hypothecation of specific vehicles purchased out of the said loans. The vehicle loans carry interest rate between II% to I5% p.a.
5 The promoters have brought back the dividend amount of '' 336.60 Lakhs (as at 3Ist March 20I6 '' I52.I0 Lakhs) as unsecured loan in compliance with the terms and conditions stipulated by Lenders for distribution of dividend to share holders.
6 Current Maturities of long term borrowings have been disclosed under the head âOther Financial Liabilitiesâ (Refer Note 22).
7 Interest amount of ''7.29 crores for the month of March, 20I7 debited on 3I.03.20I7 is due as on in Balance Sheet date.
Nature of Security and Terms of Repayment -
8 Working Capital Facilities (Secured)
The working capital facilities from the consortium of Banks are secured by:
- Hypothecation against first charge on stocks, book debts and other current assets of the Company both present and future ranking paripassu with consortium banks.
- Hypothecation against first charge on all unencumbered fixed assets of the Company both present and future ranking paripassu with consortium banks.
- Equitable mortgage of properties belonging to promoters, directors, group companies.
- Personal guarantee of promoter directors, group companies/firms and relatives.
Period and amount of interest due as on balance sheet date:
- Interest amount of ''8.09 crores for the month of March, 20I7 debited on 3I.03.20I7 is due as on Balance Sheet date.
9. OTHER NOTES FORMING PART OF THE FINANCIAL STATEMENTS
10. Leases
Disclosure under Indian Accounting Standard - 17 âLeasesâ, issued by the Institute of Chartered Accountants of India.
Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor, are recognized as operating leases. Lease rentals under operating leases are recognized in the statement of profit and loss on a straight-line basis. The Company has taken various residential/ godown/office premises (including Furniture and Fittings if any) under lease and license agreements for periods which generally range between I I months to 3 years. These arrangements are renewable by mutual consent on mutually agreed terms. Under some of these arrangements the Company has given refundable security deposits. The lease payments are recognized in the Statement of Profit and Loss under Rent, Rates and Taxes.
Assets taken on lease by the Company in its capacity as lessee, where the Company has substantially all the risks and rewards of ownership are classified as finance lease. Such a lease is capitalized at the inception of the lease at lower of the fair value or the present value of the minimum lease payments and a liability is recognized for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each year.
* Some of the contractures /employer have made claims against company for which the company has preferred appeal and in the opinion of the management the award will be in favour of the company. Therefore the said claims have not been provided.
11.Related Party Transactions pursuant to Indian Accounting Standard(Ind AS)-24 Details of related parties:
Subsidiary Companies Step-down Subsidiary Companies
Gayatri Energy Ventures Pvt. Ltd Bhandara Thermal Power Corporation Ltd
Associate Companies and companies in Key Management Personnel and their Relatives which the Company has substantial Interest.
Gayatri Lalitpur Roadways Ltd Mr. TVSandeep Kumar Reddy (Refer Below Note (ii)).
Gayatri-Jhansi Roadways Ltd Mr. J. Brij Mohan Reddy Refer Below Note (ii)).
Sai Matarani Tollways Limited Mrs. Indira T Subbarami Reddy (Refer Below Note (iii))
Gayatri Domicile Private Limited Mr. T. Rajiv Reddy (Refer Below Note (iv))
Hyderabad Expressways Limited Mr. T. Anirudh Reddy
Cyberabad Expressways Limited Mr. P. Sreedhar Babu (CFO)
Western UP Tollway Limited Mrs. I.VLakshmi (CS & CO)
HKR Roadways Limited Balaji Highways Holding Limited Indore Dewas Tollways Limited
Entities in which KMP or their relatives are Joint Ventures interested
Deep Corporation Pvt. Ltd Gayatri- RNS Joint Venture
Indira Constructions Pvt. Ltd IJM Gayatri Joint Venture
Gayatri Tissue & Papers Ltd Gayatri Ranjit Joint Venture
Gayatri Sugars Ltd Gayatri - GDC Joint Venture
Gayatri Hi-Tech Hotels Ltd Gayatri - BCBPPL Joint Venture
Gayatri Property Ventures Pvt. Ltd. Jaiprakash Gayatri Joint Venture
Gayatri Hotels & Theaters Pvt. Ltd Gayatri ECI Joint Venture
GSR Ventures Pvt. Ltd. Maytas-Gayatri Joint Venture
TVSandeep Kumar Reddy & Others Gayatri - Ratna Joint Venture
Gayatri Bio-Organics Limited MEIL-GAYATRI-ZVS-ITT Consortium
T. Subbarami Reddy Foundation Gayatri-SPL Joint Venture
Dr.T.Subbarami Reddy (HUF) Gayatri-JMC Joint Venture
Balaji Charitable Trust Viswanath - Gayatri Joint Venture
TSR Lalitakala Parishad GPL-RKTCPL Joint Venture
Invento Labs Private Limited Vishwa-Gayatri Joint Venture
Gayatri-RNS-SIPL Joint Venture SOJITZ-LNT-GAYATRI Joint Venture Gayatri PTPS Joint Venture
(i) Gayatri Infra Ventures Limited ceased to be a subsidiary w.e.f. 01.04.2016 (Refer Note No.33.I8) and accordingly related party transactions with this Company have been presented for the F.Y 20I5-I6.
(ii) Upon on merger of Gayatri Infra Ventures Limited w.e.f 01.04.2016 as stated above, these two step down subsidiary companies have become the subsidiary companies of the company and upon demerger w.e.f 3 1.03.2017 these two subsidiary companies ceased to be subsidiaries and related party transactions are presented for the F.Y 20I5-I6 & 20I6-I7.
(iii) Upon effect of Scheme, the subsidiary company has become an Associate.
(iv) Name of the Gayatri Domicile Private Limited is changed to Gayatri Highways Pvt. Ltd w.e.f 7th August 2017 and accordingly wherever Gayatri Domicile Private Limited appears in the financial statements, Notes to Financial Statements and other reports, the name shall be read as Gayatri Highways Pvt. Ltd.
2. Impairment of Non-Financial Assets
In the opinion of the management, there are no impaired assets requiring provision for impairment loss as per the Ind AS 36 on âImpairment of Non Financial Assetsâ. The recoverable amount of building, plant and machinery and computers has been determined on the basis of âValue in useâ method.
13. Disclosure pursuant to Indian Accounting Standard (Ind AS) - 19 âEmployeeâs Benefits":
i) The summarized position of Post-employment benefits and long term employee benefits recognized in the statement of Profit & Loss and Balance Sheet as required in accordance with Indian Accounting Standard - I9 issued by the Institute of Chartered Accountants of India are as under:-
relating to amounts unpaid as at the year-end together with interest paid/payable as required under the said Act have not been given.
14. There are no amounts due and outstanding to be credited to Investors Education & Protection Fund as on 3I-03-20I7 and amounts which are required to be transferred to such funds have been transferred.
Income is recognized on fixed price construction contracts in accordance with the percentage completion basis, which necessarily involve technical estimates of the percentage of completion, and costs to completion, of each contract / activity, on the basis of which profits and losses are accounted. Such estimates, made by the Company and certified to the Auditors have been relied upon by them, as these are of technical nature.
15. Capital management
For the purpose of the Companyâs capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The Company strives to safeguard its ability to continue as a going concern so that they can maximize returns for the shareholders and benefits for other stake holders. The aim is to maintain an optimal capital structure and minimize the cost of capital.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may return capital to shareholders, issue new shares or adjust the dividend payment to shareholders (if permitted). Consistent with other entities in the industry, the Company monitors its capital using the gearing ratio which is total debt divided by total equity.
16. Financial Instruments:
A. Some of the Companyâs financial assets and financial liabilities are measured at fair value at the end of the reporting period.
Financial Instruments by category.
Financial Assets and Financial Liabilities are the categories of Financial Instruments.
B. Fair value hierarchy
Level I inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;
Level 2 inputs are other than quoted prices included within Level I, that are observable for the asset or liability, either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or Liability.
17. Financial risk management objectives and policies
The Companyâs activities expose it to a variety of financial risks like market risk, credit risk and liquidity risks. The Companyâs focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.
(i) 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: interest rate risk, currency risk and other price risk, such as equity price risk. Major financial instruments affected by market risk, includes loans and borrowings.
a. Interest rate risk
Majority of the Non-current (Long Term) borrowings of the Company bear fixed interest rate, thus interest rate risk is limited for the Company.
c. Equity Price Risks:
Majority of the Companyâs investments are made into non-listed equity securities. The Companyâs exposure into listed equity investments is very limited and the fair value of listed securities as at 3Ist March, 20I7 was '' I08.28 Lakhs. Since the exposure into listed equity investments are very limited, the changes of equity securities price would not have a material effect on the profit or loss of the Company.
(ii) Credit risk management
Credit risk refers to the risk of default in its obligation by the counter party resulting in a financial loss. The maximum exposure of the financial assets is contributed by trade receivables, unbilled work-in-progress, cash and cash equivalents and receivables from group companies.
Credit risk on trade receivables, work in progress is limited as the customers of the company mainly consist of the Government promoted entities, having strong credit worthiness. The company takes into account ageing of accounts receivables and the companyâs historical experience of the customers and financial conditions of the customers.
(iii) Liquidity Risk:
Liquidity Risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Companyâs management and finance department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by the senior management.
18. The Company has incurred an amount of '' 86.21 Lakhs on Corporate Social Responsibility (CSR) programs under Section I35 of the Companies Act, 20I3 which are charged to the Statement of Profit and Loss.
19. The company had entered into an agreement to sell the wind power business on âSlump Saleâ basis subject to approval by the regulatory authorities and completion of registration formalities. The management has received the respective regulatory authoritiesâ approvals and registration of sale of wind assets is completed during the financial year. Therefore, the net result (loss) from sale of wind power business amounting to '' 1,538.65 Lakhs is recognized under exceptional items in the statement of profit and loss for the year ended 3Ist March 20I7.
Explanation: For the purpose of this clause, the term âSpecified Bank Notesâ shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407 (E), dated the 8th November, 20I6.
20. Composite Scheme of Arrangement between Gayatri Projects Limited (Transferee Company / Demerged Company/ GPL), Gayatri Infra Ventures Limited (Transferor Company / GIVL) and Gayatri Domicile Private Limited (Resulting Company / GDPL) and their respective Shareholders:
The Board of Directors of Gayatri Projects Limited (GPL) in the Board Meeting held on 16th July 2016 has approved the Composite Scheme of Arrangement between Gayatri Projects Limited (Transferee Company / Demerged Company /GPL), Gayatri Infra Ventures Limited (Transferor Company / GIVL) and Gayatri Domicile Private Limited (Resulting Company / GDPL). This has been further approved by the Shareholders through postal ballot on 23rd January, 20I7.
As per the Composite Scheme of Arrangement (âSchemeâ), the BOT road business and activities of GPL is vertically split into a separate company i.e. GDPL.
The Composite Scheme of Arrangement is divided into the following parts:
i. Transfer of investments in Sai Maatarini Tollways Limited (âSMTLâ) from GPL to GDPL, and the consequent discharge of consideration by GDPL to GPL
ii. Merger of GIVL with GPL
iii. Transfer of Infrastructure Road BOT Assets Business of GPL to GDPL, and the consequent discharge of consideration by GDPL to the shareholders of GPL.
Significant points of the Scheme and its accounting treatment in the books of accounts and financial statements is summarized as below:
a) The National Company Law Tribunal (NCLT), Hyderabad Bench vide its order dated 3rd November, 2017, has sanctioned the Composite scheme of arrangement (âSchemeâ) under Sections 39 I to 394 of the Companies Act, I956 and the extant applicable provisions of Companies Act, 20I3.
b) The relevant dates of the Scheme are as follows:
Particulars Relevant date
Appointed date for amalgamation of GIVL 0Ist April, 20I6
Appointed date for Demerger of BOT Business 3Ist March, 20I7
Effective date of the Scheme (Date of filing with the ROC) 23rd November, 201 7
c) Pursuant to the Scheme, all the assets and liabilities pertaining to the Transferor Company (GIVL) have been transferred to and vested in the Transferee Company (GPL) with retrospective effect from the appointed date i.e. Ist April 2016 at their respective book values appearing in the books of Transferor Company i.e., GIVL.
Financial Statements of GIVL for the Financial Year 20I5-I6 & 20I6-I7 were audited and financial statements of 20I6-I7 were already approved in its Board meeting held on 30th May, 2017 and also adopted in the Annual General Meeting of GIVL held on 19th September, 20I7. These approved and adopted financial statements were considered for the purpose of accounting of Assets, Liabilities, Income and expenses of GIVL in the books of accounts and in the restated financial statements of GPL so as to give effect of the merger.
d) Further pursuant to the Scheme, all Infrastructure Road BOT Assets business (i.e all Fixed Assets, all Investments, Current Assets, and Liabilities of BOT Assets business including Investments in Infrastructure Road BOT Assets business held by GPL) of the Demerged Company (GPL) shall stand transfer to and be vested in the resulted Company (GDPL) with effect from the appointed date i.e. 3Ist March 20I7 at their respective book values appearing in the books of Demerged Company. Accordingly, the Scheme has been given effect to in the books of accounts and in the restated financial statements of GPL so as to give effect of the demerger. (Refer Below table for net effect of the Scheme).
e) As stated in the above note, Investments held by the Demerged Company in the Road BOT Assets business companies i.e Sai Maatarani Tollways Ltd, HKR Roadways Ltd, Balaji Highways Holdings Pvt. Ltd and Indore Dewas Tollways Ltd shall stand transferred and vested in the Resulting Company (GDPL) with effect from the appointed date i.e. 3Ist March 20I7.
f) The Consideration for demerger by the resulting company shall be as under :
i) Issue of Shares by the Resulting Company (GDPL) to Demerged Company (GPL).
The investments of GPL in SMTL are transferred to GDPL at book value. As at 3 I st March, 2016, the GPL investment in SMTL was at Rs. I80. I6 crores. The consideration for transfer of investments in SMTL held by GPL to GDPL is discharged by the Resulting Company i.e., Gayatri Domicile Private Limited in lump sum consideration to GPL amounting to '' I80,I6,03,000 (Rupees One Hundred and Eighty Crores Sixteen Lakhs Three Thousand Only) in the form of issuance of 1,24,60,000 equity shares of ''I0/- each and 16,77,00,300 redeemable preference shares of ''I0/- each, issued and redeemable at par. Pursuant to Scheme, effect is given in the books of accounts and financial statements of demerged company (GPL) as on 3Ist March, 2017, the consideration receivable by GPL in the form of Equity and Preference shares have been accounted in the books of accounts as investments in Equity and Preference shares and grouped under Investments in the restated financial statements based on opinion obtained from independent Company Secretary although the shares are yet to be issued and allotted by the resulting company (GDPL).
ii) Issue of shares by the Resulting Company (GDPL) to the shareholders of demerged company (GPL).
Pursuant to the scheme coming into effect, the resulting company shall, without any further application or deed, issue and allot to every member of the demerged company (GPL), holding fully paid up equity shares in the demerged company and whose names appear in the Register of Members of the demerged company on the Record Date in the ratio of I (One) equity share of '' I0/- (At present the '' I0 share split into 5 shares ''2 each) each fully paid up held by such member in the demerged company, I (One) equity share in the resulting company of ''I0/- each. The demerged company shareholders will be allotted 17,72,5 1,900 equity shares of '' 2/- each (after sub-division of equity shares of GDPL from '' I0/- each to '' 2/- each) fully paid in the resulting company.
g) Details of the value of investments of BOT Assets business transferred to the resulting company by the demerged company, the value of the investment received / receivable by the demerged company from the resulting company and the net effect in the Securities Premium Account of the demerged company is as under:
h) The outcome of the scheme is that merger of GIVL into GPL and Demerger of all Infrastructure Road BOT Assets business. The consideration receivable for the said Demerger is in the form of Equity and Preference Shares amounting to '' 180,16,03,000 (Rupees One Hundred and Eighty Crores Sixteen Lakhs Three Thousand Only) and hence there is no changes / impact in cash flows of the company for the current reporting period.
21. In the ordinary course of business, the Company has given Contract Advances to non-related parties which on mutual consent have been converted into loans and grouped as âLoansâ under âNon-Current Financial Assetâ. The recovery of these loans is delayed due to extraneous reasons like change in government policies, delay in execution of projects etc. However, the management is making all efforts to recover the same and is confident that the recovery process of these loans will commence in due course and therefore no provision for the same is required to be made in the financial statements of the company.
22. Advances to sub-contractors include amounts paid as work advances to sub-contractors wherein the corresponding contract works are yet to commence. The management is able to recover considerable amount after the balance sheet date and is confident to recover the balance amount in due course. In the opinion of the management, the said works for which advances are given have not commenced due to certain extraneous factors and delay is not attributed to sub-contractor default/failure. In view of this, the management is confident to commence the works in near future and recover the advances from the sub-contractors
23. The original audited financial statements / results of the Company for the financial year ended 3 Ist March, 2017 have been approved by the Board of Directors of the Company vide its meeting held on 29th May, 2017 and the same were declared/published to the stock exchanges as per the listing agreement. However, pursuant to the Composite Scheme of Arrangement (âSchemeâ), as approved by the Honâble National Company Law Tribunal (NCLT), Hyderabad Bench vide its order dated 3rd November, 20I7, the accounting effect /impact of the said scheme as stated in Note No. 33. I8 is considered in the books of accounts for the financial year ended 3 Ist March, 20I7 and accordingly the present financial statements revised as per the Scheme above, replace the original audited financial statements which were approved by the Board of Directors vide their meeting held on 29th May, 20I7 as mentioned above.
24. Pursuant to Composite Scheme of Arrangement ('' Scheme'') as stated in Note No. 33.15, figures of the current financial year are not comparable to the previous year''s figures.
25. All amounts are rounded off to nearest thousands.
Mar 31, 2016
ii) Secured Indian Rupee Term Loan from Banks of Rs. 6923.00 Lakhs (31st March, 2015: Rs.7311.00 Lakhs ) of Gayatri Jhansi Roadway Limited (GJRL) is secured by way of (a) Second mortgage and charge of all the borrowerâs immovable properties, present and future, (b) Second charge by way of hypothecation of all the movables, including movable plant and machinery, machinery spares, tools and accessories, furniture, fixtures, vehicles and all other movable assets, present and future, Operating cash flows, book debts and receivables and any other revenues of whatsoever nature and wherever arising, present and future, all intangibles, including but not limited to goodwill, uncalled capital, present and future, (c) Assignment or creation of security interest in all Insurance Contracts/Insurance proceeds, (d) Escrow Account, Debt Service Reserve, other reserves and any other bank accounts of the borrower wherever maintained, (e) pledge of all the shares (equity and preference) held by the sponsors representing 51% of the paid up share capital. The facilities carry annual interest rate ranging from 11.50% to 12.85%(31st March 2015: 11.50% to 12.85% )
iii) Secured Indian Rupee Term Loan from Banks of Rs.11541.00 Lakhs (31st March, 2015: Rs.12288.00 Lakhs ) of Gayatri Lalitpur Roadways Limited (GLRL) is secured by way of (a) first mortgage and charge of all the borrowerâs immovable properties, present and future, (b) first charge by way of hypothecation of all the movables, including movable plant and machinery, machinery spares, tools and accessories, furniture, fixtures, vehicles and all other movable assets, present and future, operating cash flows, book debts and receivables and any other revenues of whatsoever nature and wherever arising, present and future, all intangibles, including but not limited to goodwill, uncalled capital, present and future, (c) Assignment or creation of security interest in all Insurance Contracts/Insurance proceeds, (d) Escrow Account, Debt Service Reserve, other reserves and any other bank accounts of the borrower wherever maintained (e) pledge of all the shares (equity and preference) held by the sponsors representing 51% of the paid up share capital. The facilities carry an annual interest rate of 11.25% (31st March 2015: 11.25%).
iv) Secured Indian Rupee Term Loan from Banks of Rs.7986.00 Lakhs (31st March, 2015: Rs.8487.00 Lakhs ) of GLRL is secured by way of (a) Second mortgage and charge of all the borrowerâs immovable properties, present and future, (b) second charge by way of hypothecation of all the movables, including movable plant and machinery, machinery spares, tools and accessories, furniture, fixtures, vehicles and all other movable assets, present and future, Operating cash flows, book debts and receivables and any other revenues of whatsoever nature and wherever arising, present and future, all intangibles, including but not limited to goodwill, uncalled capital, present and future, (c) assignment or creation of security interest in all Insurance Contracts/Insurance proceeds,
(d) Escrow Account, Debt Service Reserve, other reserves and any other bank accounts of the borrower wherever maintained (e) Pledge of all the shares (equity and preference) held by the sponsors representing 51% of the paid up share capital. The facilities carry an annual interest rate ranging from 11.50% to 12.85% (31 March 2015: 11.50% to 12.85%).
v) Unsecured Rupee Term Loans of Rs.2724.00 Lakhs (31st March 2015: Rs. 3224.00 Lakhs ) of GJRL and GLRL from its shareholderâs represents zero interest subordinate loan repayable after the repayment of other secured loans from banks and financial institutions.
vi) Secured Rupee Term Loans from Banks of Rs.11667.00 Lakhs (31st March 2015: Rs.13472.00 Lakhs ) of Cyberabad Expressways Limited (CEL) is secured by way of pari passu first charge on (a) all monies including annuity
receivable from Hyderabad Growth Corridor Limited (HGCL) to the credit of the escrow Account, b) All rights, title, interest, benefits, claims and demands of the company under project agreements subject to the provisions of the concession agreement, (c) Assignment of rights, title and interest to or in favor of the lenders pursuant to and in accordance with the substitution agreement as per the provisions of the financing documents of the project. The facilities carry an annual interest rate of 11.50% (31st March 2015: 11.50%).
vii) Secured Rupee Term Loans from Banks of Rs. 8999.00 Lakhs (31st March 2015: Rs.9771.00 Lakhs ) of Hyderabad Expressways Limited (HEL) is secured by way of pari passu first charge on (a) all monies including annuity receivable from HGCL to the credit of the escrow Account, (b) all rights, title, interest, benefits, claims and demands of the company under project agreements subject to the provisions of the concession agreement, (c) Assignment of rights, title and interest to or in favor of the lenders pursuant to and in accordance with the substitution agreement as per the provisions of the financing documents of the project. The facilities carry an annual interest rate of 11.50% (31st March 2015: 11.50%).
viii) Secured Rupee Term Loans from Banks of â Nil (31st March 2015: Rs.19488.00 Lakhs ) of Western UP Tollways Limited (WUPTL) is secured by way of (a) first mortgage and charge in a form satisfactory to all companyâs immovable properties, present and future expect project assets, (b) first charge by way of hypothecation of all the companyâs movables, including movable plant and machinery, present and future except the project assets, machinery spares, tools and accessories, furniture, fixtures, vehicles and all other movable assets, (c) a first charge on operating cash flows, book debts and receivables and any other revenues of whatsoever nature and wherever arising present or future, (d) subject to provisions of provisions on concession agreement, first charge on the escrow account, debt service reserve, MMR and other reserves, (e) a first pledge of 100% of paid up capital till three years of commencement of commercial operations and thereafter minimum 51% of total paidup capital of the company held by the promoters during the tenure of the loan. The facilities carry an annual interest rate of Nil (31st March 2015: 11.50% to 14.00%).
ix) Unsecured Rupee Term Loan of Rs. Nil (31st March 2015: Rs. 2468.00 Lakhs ) of WUPTL from related parties carrying interest at the annual rate of Nil (31st March 2015: 12%).
1. Project Loans of Indore - Dewas Tollways Ltd (IDTL):
Secured Rupee Term Loan-I of Rs.34964.00 Lakhs (31st March, 2015: Rs.34964.00 Lakhs ), Secured Rupee Term Loan-
II of Rs.2556.00 Lakhs (31st March, 2015: Nil) and FITL of Rs. 6740.00 Lakhs (31st March, 2015: Rs. 2515.00 Lakhs ) from Banks of Indore Dewas Tollways Limited (IDTL) is secured by way of (a) all monies including Toll collected on the Project Highway to the credit of the Escrow Account as per the provisions of the Concession Agreement, (b) all the Borrowerâs Properties and Assets excluding the Project Assets as defined in the Concession Agreement, (c) all Tangible Assets of the Company not limited to Goodwill, undertaking and uncalled capital of the company, (d) pledge of shares aggregating to 51% of the paid-up equity capital of the Borrower, (e) all rights, title, interest, benefits, claims and demands of IDTL under project documents subject to the provisions of the Concession Agreement,
(f) assignment of rights in favor of the lenders in accordance with the substitution agreement in respect of financing by the senior lenders under the financing documents for the project, (g) assignment or creation of security interest in all Insurance Contracts/Insurance proceeds. The Bankers have approved the restructuring package with the cutoff date being 1st July, 2014 with a Moratorium of 33 months for Interest and principal Obligations. The facilities carry an annual interest rate of 11% p.a.
2. Project Loans of Indore - Sai Maatarani Tollways Ltd (SMTL):
i) Secured Rupee Term Loan from Banks / Financial Institutions of Rs. 87937.00 Lakhs (31st March, 2015: Rs. 61239.00 Lakhs ) of Sai Maatarani Tollways Limited (SMTL) is secured by way of (a)first mortgage and charge on all the borrowerâs immovable properties, present and future, if any, save and except the Project Assets, (b) a first charge by way of hypothecation on all the Borrowerâs tangible moveable assets, including but not limited to all current/ non-current assets, moveable plant and machinery, machinery spares, tools and accessories, furniture, fixtures, vehicles, all other movable assets, both present and future, save and except the Project Assets, (c) a first charge on all the Borrowerâs bank accounts including but not limited to the Escrow Account/its Subaccounts, (d) a first charge on all intangibles of the Borrower including but not limited to goodwill, rights, undertakings, uncalled capital and intellectual property rights, both present and future, (e) an assignment by way of security of the right, title, interests, benefits, claims and demands of the Borrower in, to and under the Project Documents, (f) pledge of equity shares held by the Sponsor constituting 51% of the total paid up and voting equity share capital of the Borrower until the Final Settlement Date. The applicable interest rate on Term Loans shall be floating at - (a) Spread @ 2% p.a. above the Base Rate of the Lead Bank viz. IDBI Bank Ltd.; or (b) Spread @ 2% p.a. above the IIFCL benchmark rate, whichever is higher. The term loan shall be repayable in 48 unequal quarterly installments commencing from 1st January, 2018.
ii) Secured Rupee Term Loan (Subordinate Debt) from Financial Institutions of Rs. 8000.00 Lakhs (31st March, 2015: Rs. 8000.00 Lakhs ) of SMTL is secured by way of mortgage second charge on all the borrowerâs immovable properties, present and future, if any, save and except the Project Assets, (b) A second charge by way of hypothecation on all the Borrowerâs tangible moveable assets, including but not limited to all current/ noncurrent assets, moveable plant and machinery, machinery spares, tools and accessories, furniture, fixtures, vehicles, all other movable assets, both present and future, save and except the Project Assets, (c) A second charge on all the borrowerâs bank accounts including but not limited to the Escrow Account/its sub-accounts that may be opened in accordance with any of the Project Agreement, (d) A second charge on all intangibles of the Borrower including but not limited to goodwill, rights, undertakings, uncalled capital and intellectual property rights, both present and future, save and except the Project Assets (provided that all amounts received on account of any of these shall be deposited in the Escrow Account and that the charges on the same shall be subject to the extent permissible as per the priority specified in the Clause 31 of the Concession Agreement and Clause 4 of the Escrow Agreement). Further, a charge on uncalled capital, as set in above, shall be subject however to the provisions of Clauses 5.3 and 7.1 (k) and Clause 31 of the Concession Agreement, (e) an assignment by way of security of the right, title, interests, benefits, claims and demands of the Borrower in, to and under the Project Documents, (f) An irrevocable and unconditional corporate guarantee from the Sponsor. The applicable interest rate on Subordinate Loan shall be floating at Spread, i.e. 2% p.a. above the Interest rate applicable to IDBI Bank Ltd. as per the Common Loan Agreement. The subordinate loan is repayable in 18 quarterly installments commencing from 1st January, 2023.
3. External Commercial Borrowing of the Company:
Details of External Commercial Borrowing: The Company availed Foreign Currency Loan of USD $ 24.42 million from an Indian Scheduled Bank to meet a part of funds requirement towards redemption of outstanding FCCBs. The ECB loan is repayable in 24 quarterly installments commencing from October 2013 with rate of interest at 3 months USD LIBOR 500bps.
Nature of Security : (a) Equitable mortgage of immovable property of 600 acres in the name of step down subsidiary company, (b) Pledge of 76,37,738 equity shares of GPL held by promoters, (c) Personal guarantees of the two promoter directors.
4. Secured Vehicle Loans of the Company availed from the Financial Institutions are secured by hypothecation of specific vehicles purchased out of the said loans. The vehicle loans carry interest rate between 11% to 15% p.a.
5. The promoters of the Company have brought back the dividend amount of Rs. 152.10 Lakhs as unsecured loan in compliance of the lenders stipulation for distribution of dividend to shareholders.
* Additional Concession Fee payable to NHAI by Indore Dewas Tollways Limited :
In order to more appropriately present the Financials statements of the company, the total premium amount of Rs. 1,18,119.88 Lakhs as per the Concession Agreement, has been capitalized as "Intangible Assetsâ and amortized over a period of service concession Agreement as per the method prescribed in Part A to the Schedule II to the Companies Act, 2013 and corresponding Obligation for committed premium has been recognized as liabilities.
The Contractual Obligation to pay premium (Additional Concession Fees) to National Highways Authority of India over the Concession period has been recognized upfront on an undiscounted basis when the project gets completed as per the Concession Agreement and is a part of the "Intangible Asset " and corresponding Obligation for committed premium is recognized as liabilities.
Additional Concession fee has to be paid to National Highways Authority of India as per clause 26.2.1 of the Concession Agreement dated 17th May, 2010. National Highways Authority of India has granted deferment of Additional concession fees payable to them vide their sanction letter dated 11th June, 2014 . Interest on the Additional concession fees payable to National Highways Authority of India for the FY 15-16 is not provided in the books of accounts as National Highways Authority of India has deferred the premium payment up to 6 years. The Interest liability on Additional Concession fees has neither accrued nor due until the completion of the 6 years up to which NHAI has deferred the premium. After the completion of the 6th year, NHAI will review the deferment of premium payment based on the cash flows available then. The liability accrues and becomes due as and when there are cash flows sufficient for the payment of premium. At the end of the 6th year based on the cash flow position, National Highways Authority of India will review the deferment proposal and may extend the deferment, if the cash flows are not sufficient to meet the debt and O&M obligations.
There is a decline in the Toll collections due to the non maintenance of the adjoining stretches of the project highway i.e., Shivpuri to Dewas & Ghar to Dewas. The development of those streches were stalled due to issues between the National Highways Authority of India and the developer to whom the projects were awarded. Now Shivpuri - Dewas project has been awarded on EPC basis to new developers, which are expected to be completed within a period of 3-4 years from now. Till such time the revenues from the Toll collections seem bleak and no surplus cash flows are being expected after debt obligations, so as to pay the Additional Concession fees to National Highways Authority of India or Interest thereon. In view of the total stress in the Funds flow the management has considered that the liability accrues and becomes due as and when the cash flows are sufficient for the payment as explained above.
Nature of Security and Terms of Repayment
6. Working Capital Facilities (Secured)
The working capital facilities from the consortium of Banks are secured by:
- Hypothecation against first charge on stocks, book debts and other current assets of the Company both present and future ranking paripassu with consortium banks.
- Hypothecation against first charge on all unencumbered fixed assets of the Company both present and future ranking paripassu with consortium banks.
- Equitable mortgage of properties belonging to promoters, directors, group companies.
- Personal guarantee of promoter directors, group companies/firms and relatives.
Period and amount of interest due as on balance sheet date:
- Interest amount of Rs. 8.28 crores for the month of March, 2016 charged on 31.03.2016 is due on balance sheet date.
7. Unsecured loans from related parties
The unsecured loans received from related parties are repayable on demand along with interest rate at 16% p.a.
8. 7,47,49,590 Equity Shares of NCC Infrastructure Holdings Ltd held by the Gayatri Energy Pvt Ltd are pledged in favor of IFCI Limited as collateral security for the debentures issued by the Subsidiary Company.
9. 23,65,99,300 Equity Shares of TPCIL are pledged in favor of Rural Electrification Corporation Ltd as collateral security for the loan availed by TPCIL.
10. In pursuance of Exit Agreement entered between Gayatri Energy Venture Pvt. Ltd (GEVPL) and Jinbhuvish Power Generation Private Limited (JPGPL), 2,74,49,989 Equity Shares of JPGPL held by the GEVPL are pledged in favor of JPGPL.
11. The company has made provision for the diminution in the market value of quoted investments in the books as envisaged in the Companies (Accounting Standard) Rules, prescribed by the Central Government.
12. Other Notes forming part of the Consolidated Financial Statements:
13. All amounts in the financial statements are presented in Rs. in Lakhs except per share data and as otherwise stated. Figures in brackets represent corresponding previous year figures in respect of Profit & Loss items and in respect of Balance Sheet items as on the Balance Sheet date of the previous year. Figures for the previous year have been regrouped / rearranged wherever considered necessary to conform to the figures presented in the current year.
14. Basis of preparation of consolidated financial statements:
Gayatri Projects Limited ("the company") has presented consolidated Financial statements by consolidating its own financial statements with those of its Subsidiaries, Associates and Joint Ventures in accordance with Accounting Standard- 21(Consolidated Financial statements), Accounting Standard-23 (Accounting for Investments in Associates in consolidated Financial statements) and Accounting Standard - 27 (Financial reporting of Interests in joint ventures) notified in section 211 (3C) of the Companies Act, 1956.
The Financial statements of each of those Subsidiaries, Associates and Joint Ventures are prepared in accordance with the generally accepted accounting principles & accounting policies of Parent Company. The effects of intercompany transactions between consolidated companies/entities are eliminated in consolidation.
15. Segment Reporting
The Companyâs operations predominantly consist of providing infrastructure facilities. Hence there are no reportable segments under Accounting Standard - 17. During the year under report, the Companyâs business has been carried out only in India. The conditions prevailing in India being uniform, no separate geographical disclosures are considered necessary.
16. Observations and Qualifications made by the Independent Auditors of the Subsidiary Companies:
As per the approval of Board and Shareholders of the Company, Gayatri Hi-tech Hotels Ltd (GHHL), a related party of the Company, has allotted 2,35,00,000 - 9% Cumulative Redeemable Preference Shares (CRPS) of Rs. 10/- each at a premium of Rs.90/- per share against receivables from GHHL.
17. As per an expert opinion, during the year the Company has claimed deduction u/s 80IA of the Income Tax Act, 1961 in respect of income earned on infrastructure projects.
18 In pursuance of share purchase agreement entered between the Company and AMP Capital Finance Mauritius Limited (AMP) to purchase shares of Gayatri Infra Ventures Limited held by AMP an amount of Rs. 200.0ILakhs has been paid as an advance towards purchase of shares.
19. (a) During the year, the Company has issued 16,19,386 Equity Share of Rs. 10/- each at a premium of Rs. 193.78 per
equity share by way of preferential allotment to promoters against unsecured loans of Rs.33.00 crores received during the previous year, in terms of the Master Restructuring Agreement entered with the Companyâs Lenders.
(b) The company has further issued 36,04,000 Equity Shares of Rs.10 each at a premium of Rs. 193.20 on preferential allotment / private placement.
20. Some of the Contract Advances given by the Company in earlier years and which are long pending for recovery due to reasons beyond the control of both the parties have been converted to interest bearing loans and grouped under "Long term Loans & Advances". The management of the Company has already initiated steps to recover the same and is confident that these advances / loans will be recovered and hence no provision has been made in the financials.
21. Advances to sub-contractors include amounts paid as work advances to certain sub-contractors wherein the corresponding contract works are yet to commence. In the opinion of the management, the said contract works have not commenced due to certain extraneous factors beyond the control of such sub-contractor and without any default/failure of performance from their end. The management is confident to commence the works in near future and recover the advances from the sub-contractors.
22. During the previous financial years one of the Subsidiary Company had given an Amount of Rs.100 crores to NCCLtd for the purpose of acquisition of equity shares of NCC Infrastructure Holdings Limited (NCCIHL). As per the amended agreement dated on 14 November, 2014 the shares will be allotted to Gayatri Energy Ventures Private Limited in 3 tranches on or before 31st March, 2017.
23 During the previous financial years, one of the Subsidiary Company Gayatri Energy Ventures Pvt. Ltd. (GEVPL) had made various investments in Jinbhuvish Power Generation Private Limited (JPGPL) by way of acquisition of shares, share application money, advance for purchase of equity shares total amounting to Rs.54.91 crores. During the previous financial years the GEVPL had entered into an Exit Agreement dated 25th May 2013 with JPGPL, which was duly amended by various letter agreements from time to time and as per the latest letter agreement dated 3I st October 2015, the GEVPL shall exit from JPGPL by 31st October 2016.
24. In the opinion of the management and to the best of their knowledge and belief, the value of the assets reported under Long Term Loans and Advances and Current Assets are approximately of the value stated, if realized in ordinary course of business, unless stated otherwise. The provision for all known liabilities is adequate and not in excess of amount considered reasonably necessary.
25. There are no amounts due and outstanding to be credited to Investors Education & Protection Fund as on 31-03 2016 and amounts which are required to be transferred to such funds have been transferred.
26. One of the Subsidiary Company Gayatri Infraventures Limited (GIVL) has entered into a definitive sale agreement dated 19 January 2016 with Cube Highways and Infrastructure PTE Limited for divestment of its entire equity stake amounting to Rs.4,606.09 Lakhs held in Western UP Tollway Limited, a jointly controlled entity. On the basis of assessment of the status of compliances with certainmandatory conditions stipulated in the agreement and pending finalization of the sale consideration, the financial statements of the jointly controlled entity have been accordingly consolidated in the financial statement of the GIVL group as at and for the year ended 31st March 2016 and duly disclosed as a discontinuing operations in accordance with the provisions of Indian GAAP The details of the assets, liabilities, income and expenditure pertaining to the aforesaid jointly controlled entity, duly consolidated, considered for consolidation in the financial statements of GIVL group as at and for the year ended 31st March 2016 are as follows:
Mar 31, 2015
1. CORPORATE INFORMATION
Gayatri Projects Limited founded in 1989 is one of India's premier
infrastructure company based in Hyderabad executing major civil works
including Roads, Canals, Airport Runways, Ports/Harbors, Dams &
Reservoirs, Railways etc., across India.
2.1 Leases
Disclosure under Accounting Standard  19 "Leases", issued by the
Institute of Chartered Accountants of India.
Lease arrangements where the risks and rewards incidental to ownership
of an asset substantially vest with the lessor, are recognized as
operating leases. Lease rentals under operating leases are recognized
in the statement of profit and loss on a straight-line basis. The
Company has taken various residential/godown/office premises (including
Furniture and Fittings if any) under lease and license agreements for
periods which generally range between 11 months to 3 years. These
arrangements are renewable by mutual consent on mutually agreed terms.
Under some of these arrangements the Company has given refundable
security deposits. The lease payments are recognized in Profit and Loss
Account under Rent, Rates and Taxes.
Assets taken on lease by the Company in its capacity as lessee, where
the Company has substantially all the risks and rewards of ownership
are classified as finance lease. Such a lease is capitalized at the
inception of the lease at lower of the fair value or the present value
of the minimum lease payments and a liability is recognized for an
equivalent amount. Each lease rental paid is allocated between the
liability and the interest cost so as to obtain a constant periodic
rate of interest on the outstanding liability for each year.
The Company has taken vehicles on financial lease from banks /
Financial Institutions. The details of contractual payments under the
agreement are as follows:
2.2 Contingent Liabilities and Commitments
The details of the Contingent Liabilities and Commitments to the extent
not provided are as follows:
a. Contingent Liabilities Rs. in Lakhs
Particulars As at As at
31st March,
2015 31st March,
2014
a) Claims against the company not 5,565.55 5,565.55
acknowledged as debt *
b) Guarantees given by the Banks
towards performance & Contractual
Commitments
i) issued on behalf of the Company 47,097.06 51,639.03
ii) Issued on behalf of subsidiaries/
group companies 30,442.35 30,630.36
c) Corporate Guarantees given to
group companies 8,38,456.00 7,48,110.00
d) Disputed Liability of Income
Tax, Sales Tax, 14,617.34 10,603.75
Service Tax and Seigniorage charges
* Some of the contractees /employer have made claims against company
for which the company has preferred appeal and in the opinion of the
management the award will be in favour of the company. Therefore the
said claims have not been provided.
2.3 Impairment of Assets
In the opinion of the management, there are no impaired assets
requiring provision for impairment loss as per the accounting standard
28 on Impairment of assets. The recoverable amount of building, plant
and machinery and computers has been determined on the basis of 'Value
in use' method.
2.4 Joint Venture Losses
IJM-Gayatri Joint Venture
IJM Â Gayatri Joint Venture is a joint venture in which IJM Corporation
Berhad, Malaysia holds 60% and Gayatri Projects Limited holds 40%
share. The Joint venture has executed road works during the period
1998-2006 in Package I, II & III and AP 13 of NHAI, APSH 7 and APSH 8
in the State of Andhra Pradesh.
An excess expenditure of Rs. 134.45 crores is incurred for completion
of the IJM Gayatri JV by our company and the same is debited to the JV
account. The JV has not accounted the same due to pending claims with
the employers and with an intention to account the same as and when the
claims are actually realized.
The JV has raised claims in excess of Rs. 300 Crores on the National
Highways Authority of India and Andhra Pradesh State Government, which
are pending for consideration before the appropriate legal forum.
During the previous year, SEBI has referred the above matter to
"Financial Reporting and Review Board (FRRB)" for further examination.
As per the Directions of the FRRB the company has provided an amount of
Rs.45.01 Crores (included in work expenditure) towards its 40% share of
loss in the joint venture which was hitherto been the subject matter of
qualification in the Auditors Report till previous year.
2.5 Disclosure pursuant to Accounting Standard (AS) Â 15(Revised)
"Employee's Benefits":
i) The summarized position of Post-employment benefits and long term
employee benefits recognized in the statement of Profit & Loss and
Balance Sheet as required in accordance with Accounting Standard  15
(Revised) issued by the Institute of Chartered Accountants of India are
as under:-
2.6 Segment Reporting
The Company's operations predominantly consist of construction /
project activities. Hence there are no reportable segments under
Accounting Standard  17. During the year under report, the Company's
business has been carried out only in India. The conditions prevailing
in India being uniform, no separate geographical disclosures are
considered necessary.
2.7 Managerial Remuneration:
The excess managerial remuneration paid/payable for the year will be
recovered in the subsequent financial year.
2.8 Dues to Micro and Small Enterprises:
On the basis of information available with the Company, there are no
dues outstanding for more than 45 days to Small Scale Industrial
Undertaking (SSI). 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 have not been given.
2.9 There are no amounts due and outstanding to be credited to
Investors Education & Protection Fund as on 31- 03-2015 and amounts
which are required to be transferred to such funds have been
transferred.
2.10 Bilateral Restructuring of Debt under Joint Lenders Forum (JLF)
Scheme
Due to liquidity constraints on account of stretched working capital
cycles, increased cost of inputs, higher interest cost, slowdown in
Infrastructure sector etc, which has led to a strain on the resulting
cash flows of the Company. Keeping in view of the above the Company
has restructured its debt obligations under bilateral restructuring
route monitored by the Joint Lenders forum (JLF). The scheme was
approved by the lenders on 19.01.2015 and the relevant agreements like
MRA, TRA etc., were executed on 23.01.2015. The restructuring is
effected from 1st July 2014. Pursuant to this scheme, some of the Long
Term and Short Term Loans have been rescheduled along with reduced rate
of interest.
2.11 Unsecured Loans from the Directors
As a part of the restructuring package, the promoters contribution
amounting to Rs.3300.00 lakhs is brought in by promoter directors. The
company is planning to raise the money through equity route and
promoters have option to take refund of the unsecured loan from the
equity proceeds.
2.13 Long term Loans and Advances
During the previous years,the Company has given advances to its
subcontractors for execution of various projects. The recovery of
advances is delayed due to slow progress of the works on account of
changes in government policy and bifurcation of the State. In view of
this, the parties have mutually decided to convert the advance as
interest bearing loans carrying an interest equivalent to the bank
deposit rate. Such loans during the current year have been grouped
under "Long term loans & Advances". The advances will be recovered in
future from the bill proceeds.
2.14 Receivables from Related Parties
Other Non Current Assets include an amount of Rs.218.51 crores
receivable from Gayatri Hi-tech Hotels Ltd (GHHL), a related party of
the Company. The Company has executed the hotel project of the GHHL
under EPC scheme and the amount represents the balance receivables.
GHHL has expressed its inability to pay dues immediately due to its
liquidity constraints and has placed a proposal to convert the
outstanding dues into 9% Cumulative Redeemable Preference Shares (CRPS)
of Rs.1,000/- each. The Company has agreed in-principal for conversion
of outstanding into CRPS and necessary statutory formalities are yet to
be completed.
2.15 Advances to sub-contractors include amounts paid as work advances
to certain sub-contractors wherein the corresponding contract works are
yet to commence. In the opinion of the management, the said contract
works have not commenced due to certain extraneous factors beyond the
control of such sub-contractor and without any default/failure of
performance from their end. The management is confident to commence the
works in near future and recover the advances from the sub-contractors.
2.16 Pursuant to the enactment of Companies Act 2013, the company has
applied the estimated useful lives as specified in Schedule II, except
in respect of certain assets as disclosed in Accounting Policy on
Depreciation and Amortization. The net value of Fixed Assets amounting
to Rs. 294.28 Lakhs whose lives have expired as at 1st April 2014,of
which Rs. 194.25 Lakhs (net of Deferred Tax of Rs. 100.03 lakhs) has
been adjusted in the opening balance of Profit and Loss.
2.17 In the opinion of the management and to the best of their
knowledge and belief, the value under the head of current assets are
approximately of the value stated, if realized in ordinary course of
business, unless stated otherwise. The provision for all known
liabilities is adequate and not in excess of amount considered
reasonably necessary.
2.18 The balances under Other Long Term Liabilities, Trade Payables,
Trade Receivables, Other Current Liabilities, Long Term Loans and
Advances, Short Term Loans and Advances and Other Current Assets are
subject to reconciliation and confirmation.
2.19 All amounts are rounded off to nearest thousand.
2.20 Previous year figures have been regrouped wherever considered
necessary.
Mar 31, 2014
1. CORPORATE INFORMATION
Gayatri Projects Limited incorporated in 1989 is one of India''s premier
infrastructure company based in Hyderabad executing major civil works
including Roads, Canals, Airport Runways, Ports/Harbors, Dams &
Reservoirs, Railways etc.
1.2 Contingent Liabilities and Commitments
The details of the Contingent Liabilities and Commitments to the extent
not provided is as follows:
a. Contingent Liabilities
Rs. in Lakhs
Particulars As at As at
31st March 2014 31st March 2013
a) Claims against the company not
acknowledged as debt 5,565.55 Â
b) Guarantees given by the Banks
towards performance &
Contractual Commitments
i) issued on behalf of the Company 51,639.03 48,578.60
ii) Issued on behalf of Subsidiaries
/ Group Companies 30,630.36 24,034.76
c) Corporate Guarantees given to
group companies 7,48,110.00 5,77,060.00
d) Disputed Liability of Income
Tax, Sales Tax,
Service Tax and Seigniorage
charges 10,603.75 8,752.06
1.3 Impairment of Assets
In the opinion of the management, there are no impaired assets
requiring provision for impairment loss as per the accounting standard
28 on Impairment of assets. The recoverable amount of building, plant
and machinery and computers has been determined on the basis of
''Value in use'' method.
1.4 Joint Venture Loss not considered IJM-Gayatri Joint Venture
IJM - Gayatri Joint Venture is a joint venture in which IJM Corporation
Berhad, Malaysia holds 60% and Gayatri Projects Limited holds 40%
share. The Joint venture has executed road works during the period
1998-2006 in Package I, II & III and AP 13 of NHAI, APSH 7 and APSH 8
in the State of Andhra Pradesh.
An excess expenditure of Rs. 134.45 crores is incurred for completion of
the IJM Gayatri JV by our company and the same is debited to the JV
account. The JV has not accounted the same due to pending claims with
the employers and with an intention to account the same as and when the
claims are actually realised.
The JV has raised claims in excess of Rs. 300 Crores on the National
Highways Authority of India and Andhra Pradesh State Government, which
are pending for consideration before the appropriate legal forum. So
far the joint venture has got favorable awards amounting to Rs. 61.99
crores including interest on claims and the remaining claims are under
adjudication. Out of the favorable awards, the JV has received orders
for release of payments for Rs. 29.01 crores and as against this the JV
has received Rs. 18.70 crores which ispassed to the Company. Further in
respect of APSH-7 and 8, the honorable High Court of Andhra Pradesh has
order to release 50% of the claim amount (about Rs. 3.00 crores) and the
release of payment is under process. The management is reasonably
confident of recovering substantial amount from these claims. In the
unlikely situation of the claims not being received to the extent of
expenditure incurred, IJM-Gayatri Joint Venture has to account the net
expenditure of Rs. 115.75 crores (Previous Year Rs. 115.75 crores) in its
books and the Company has to provide an amount of Rs. 46.30 crores
(Previous Year Rs. 46.30 crores) towards its 40% share of loss in the
joint venture.
During the year under review, SEBI has referred the above note to the
"Financial Reporting and Review Board (FRRB)" for further examination
and company has submitted the relevant information/explanation to the
competent authorities. The matter is under examination with the FRRB.
1.5 Disclosure pursuant to Accounting Standard (AS) - l5(Revised)
"Employee''s Benefits":
i) The summarized position of Post-employment benefits and long term
employee benefits recognized in the statement of Profit & Loss and
Balance Sheet as required in accordance with Accounting Standard - 15
(Revised) issued by the Institute of Chartered Accountants of India are
as under:-
1.6 Segment Reporting
The Company''s operations predominantly consist of construction /
project activities. Hence there are no reportable segments under
Accounting Standard - 17. During the year under report, the Company''s
business has been carried out only in India. The conditions prevailing
in India being uniform, no separate geographical disclosures are
considered necessary.
1.7 Earnings Per Share (EPS)
Basic and Diluted Earnings per share calculated in accordance with
Accounting Standard (AS) 20 "Earning per share".
1.8 Dues to Micro and Small Enterprises:
On the basis of information available with the Company, there are no
dues outstanding for more than 45 days to Small Scale Industrial
Undertaking (SSI). 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 yearend together with interest
paid/payable as required under the said Act have not been given.
1.9 There are no amounts due and outstanding to be credited to
Investors Education & Protection Fund as on 31-03-2014.
1.10 Advances to sub-contractors include amounts paid as work advances
to certain sub-contractors wherein the corresponding contract works are
yet to commence. In the opinion of the management, the said contract
works have not commenced due to certain extraneous factors beyond the
control of such sub-contractor and without any default/failure of
performance from their end. The management is confident to commence the
works in near future and recover the advances from the sub-contractors.
1.11 In the opinion of the management and to the best of their
knowledge and belief, the value under the head of current assets are
approximately of the value stated, if realized in ordinary course of
business, unless stated otherwise. The provision for all known
liabilities is adequate and not in excess of amount considered
reasonably necessary.
1.12 The balances under Other long term liabilities, Trade Payables,
Trade Receivables, Other current liabilities, Short term loans and
advances and Other current assets are subject to reconciliation and
confirmation.
1.13 All amounts are rounded off to nearest thousand.
1.14 Previous year figures have been regrouped wherever considered
necessary.
Mar 31, 2013
1. CORPORATE INFORMATION
Gayatri Projects Limited founded in I989 is one of India''s premier
infrastructure company based in Hyderabad executing major civil works
including Roads, Canals, Airport Runways, Ports/Harbors, Dams &
Reservoirs, Railways etc.
2. LEASES
Disclosure under Accounting Standard - I9 "Leases", issued by the
Institute of Chartered Accountants of India. The Company has taken
various residential/godown/office premises (including Furniture and
Fittings if any) under lease and license agreements for periods which
generally range between II months to 3 years. These arrangements are
renewable by mutual consent on mutually agreed terms. Under some of
these arrangements the Company has given refundable security deposits.
The lease payments are recognized in Profit and Loss Account under
Rent, Rates and Taxes.
The Company has taken vehicles on financial lease from banks /
Financial Institutions. The details of contractual payments under the
agreement are as follows:
3. Impairment of Assets
In the opinion of the management, there are no impaired assets
requiring provision for impairment loss as per the accounting standard
28 on Impairment of assets. The recoverable amount of building, plant
and machinery and computers has been determined on the basis of
''Value in use'' method.
4. Joint Venture Losses not considered
IJM-Gayatri Joint Venture
IJM - Gayatri Joint Venture is a joint venture in which IJM Corporation
Berhad, Malaysia holds 60% and Gayatri Projects Limited holds 40%
share. The Joint venture has executed road works during the period
I998-2006 in Package I, II & III and AP I3 of NHAI, APSH 7 and APSH 8
in the State of Andhra Pradesh.
An excess expenditure of Rs. I34.45 crores was incurred for completion
of the IJM Gayatri JV by the company and debited to the JV account. The
JV has not accounted the same due to pending claims with the employers
and with an intention to account the same as and when the claims are
actually realised.
The JV has raised claims in excess of Rs. 300 Crores on the National
Highways Authority of India and Andhra Pradesh State Government, which
are pending for consideration before the appropriate legal forum. So
far the joint venture has got favorable awards amounting to Rs. 6I.99
crores including interest on claims and the remaining claims are under
adjudication. Out of the favorable awards, the JV has received orders
for release of payments for Rs. 29.0I crores and as against this the JV
has received Rs. I8.70 crores during the year which was passed on to
the Company. The management is reasonably confident of recovering
substantial amount from these claims. In the unlikely situation of the
claims not being received to the extent of expenditure incurred,
IJM-Gayatri Joint Venture has to account the net expenditure of Rs.
II5.75 crores (Previous Year Rs. I34.45 crores) in its books and the
Company has to provide an amount of Rs. 46.30 crores (Previous Year Rs.
53.78 crores) towards its 40% share of loss in the joint venture.
5. Disclosure pursuant to Accounting Standard (AS) - l5(Revised)
"Employee''s Benefits":
i) The summarized position of Post-employment benefits and long term
employee benefits recognized in the statement of Profit & Loss and
Balance Sheet as required in accordance with Accounting Standard - I5
(Revised) issued by the Institute of Chartered Accountants of India are
as under:-
6. Segment Reporting
The Company''s operations predominantly consist of construction /
project activities. Hence there are no reportable segments under
Accounting Standard - I7. During the year under report, the Company''s
business has been carried out only in India. The conditions prevailing
in India being uniform, no separate geographical disclosures are
considered necessary.
7. Dues to Micro and Small Enterprises:
On the basis of information available with the Company, there are no
dues outstanding for more than 45 days to Small Scale Industrial
Undertaking (SSI). 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 ended together with interest
paid/payable as required under the said Act have not been given.
8. There are no amounts due and outstanding to be credited to
Investors Education & Protection Fund as on 3Ist March, 20I3.
9. All amounts are rounded off to nearest thousand.
Mar 31, 2012
Note:
1 Cash and Cash Equivalents consist of Cash on hand and balances with
Banks that includes Margin Money Deposits for Bank Guarantees of
Rs.8076.10 Lakhs (Previous Year Rs.6986.30 Lakhs)
2 The Cash flow statement is prepared in accordance with the indirect
method stated in Accounting Standard 3 issued by ICAI on "Cash Flow
Statements" and presents Cash flows by Operating, Investing and
Financing activities.
3 Figures in brackets represent cash outflows.
4 See accompanying Notes forming part of the Financial Statements.
1. CORPORATE INFORMATION
Gayatri Projects Limited founded in 1989 is one of India's premier
infrastructure company based in Hyderabad executing major civil works
including Roads, Canals, Airport Runways, Ports/Harbors, Dams &
Reservoirs, Railways etc.
2(a) Details of shares issued during the year:
Pursuant to the resolution passed at the Board of Directors meeting
held on 21st January, 2011 and in compliance with the provisions under
section 8l(l)(a) of the Companies Act, 1956 and SEBI regulations, the
Company has issued 1,19,79,242 equity shares of Rs. 10/- each to the
existing shareholders for cash at a premium of Rs. 110/- per equity share
in the ratio of one right equity share for every one equity share held
on the record date i.e 23rd February 2012.
2 (b) Rights, Preferences and restrictions attached to Equity Shares:
The company has only one class of shares referred to as equity shares
having a par value of Rs.10/-. Each holder of equity shares 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 in proportion to the number of equity shares held
by the shareholder.
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.
The Board of Directors have recommended dividend of Rs. 3.00 per equity
share in their meeting held on 30th May 2012, subjected to approval of
the shareholders in the ensuing Annual General Meeting (For the year
ended 31st March 2011 : Rs. 5.00 per equity share).
2 (c) The company has utilized the net proceeds of the Right issue for
the objectives specified in the Letter of Offer including margin
requirement for working capital and general capital purpose.
3.1 The Company had issued 308 Zero Coupon Foreign Currency Convertible
Bonds (FCCBs) of Japanese Yen (JPY)
10,000,000 each aggregating to JPY 308,00,00,000 redeemable on 1st
August 2012 at 120.414% of its principal amount. The bond holders had
an option to convert these bonds into equity shares at an initial
conversion price of Rs. 378.35 (reset at Rs. 288/-) per share with a fixed
rate of exchange on conversion at Rs. 0.3303 per JPY. Out of the total
bonds of 308, 37 bonds were converted into equity, 42 bonds were bought
back by the company and remaining 229 bonds were outstanding as at the
date of Balance Sheet. The bonds will mature on 3rd August 2012 at
120.414% of its principal amount.
The Company has provided an amount of Rs. 6732.60 lakhs towards the
foreign exchange transaction loss on the FCCBs as on date and the loss
is recognized in the statement of profit and loss for the year 2011-12.
3.2 Nature of Security:
Debentures:
The Company has issued 520 11.50% Secured Redeemable Non-Convertible
Debentures (NCDs) of Rs.10,00,000/- each on private placement in the form
of Separately Transferable Redeemable Principal Parts (STRPPs) for cash
at par aggregating Rs. 5200 Lakhs. The Debentures are secured by the
paripassu first charge on the fixed assets of a group company and
redeemable in the 3rd, 4th and 5th year in the ratio of 30:30:40 and
the earliest date of redemption being 1st December 2013.
Equipment Loans:
The Equipment loans are secured by hypothecation of specific equipments
acquired out of the said loans with rate of interest varying from
14.75% to 15.25% per annum.
Vehicle Loans:
The Vehicle loans availed are secured by hypothecation of specific
vehicles purchased out of the said with rate of interest varying from
11.16% to 13.48% per annum.
Other Term Loans:
The other secured term loans are secured by hypothecation of
construction equipments not specifically charged to other banks with
rate of interest varying from 13.00% to 15.50% per annum.
All the above term loans and non convertible debentures are guaranteed
by Directors.
3.3 Current maturities of long term borrowings have been disclosed
under the head "Other Current Liabilities" (Refer Note- 11).
4.1 Nature of security and terms of repayment:
Equipment Loans (Secured)
- The equipments loans are secured by hypothecation of specific
equipments acquired out of the said loans.
- The equipment loans are repayable in monthly installments.
- The equipment loans are guaranteed by Directors.
- There are no defaults in repayment of loans and interest on the
Balance Sheet date.
- The applicable rate of interest is 14.10% per annum.
Term Loans (Secured)
The Secured Loans availed are secured by Hypothecation of Unencumbered
fixed assets and project specific stock and receivables. The applicable
rate of interest is 14.10% per annum.
Working Capital Loans (Secured)
The working capital facilities from the consortium of Banks are secured
by:
- Hypothecation against first charge on stocks, book debts and other
current assets of the Company both present and future ranking paripassu
with consortium banks.
- Hypothecation against first charge on all unencumbered fixed assets
of the Company both present and future ranking paripassu with
consortium banks.
- Equitable mortgage of properties belonging to promoters, directors,
group companies.
- Personal guarantee of promoter directors, group companies/firms and
relatives.
- There are no defaults in repayment of loans and interest on the
Balance Sheet date.
Ther rate of interest for these facilities range from 12.75% to 15.25%
per annum and repayable on demand. Term Loans (Un-secured)
- The other term loans are repayable in monthly installments.
- There are no defaults in repayment of loans and interest on the
Balance Sheet date.
- The rate of interest for these loans range from 12.10% to 13.75%
per annum
ii) Intangible Assets - Nil
iii) Capital Work in progress
- Capital Work in progress represents Machinery purchased for Rs. II
66.94 Lakhs and yet to be installed.
Note :
- Of these, 12,00,000 Equity shares of Gayatri Infra Ventures Limited
have been pledged to IL & FS for the term loan availed by Gayatri Infra
Ventures Limited
- Of these, 50,000 Equity shares of Gayatri Energy Ventures Pvt. Ltd.
have been pledged to PTC India Limited for the loan availed by Thermal
Powertech Corporation India Limited.
- Of these, 13,00,000 Equity shares of Gayatri Energy Ventures Pvt.
Ltd. have been pledged to IFCI Limited for the loan availed by Gayatri
Energy Venture Pvt. Ltd.
- Of these, 36,995 Equity shares of HKR Roadways Limited have been
pledged to IL&FS Trust Company Limited for the loan availed by HKR
Roadways Limited.
- Of these, 16,660 Equity shares of Indore Dewas Tollways Limited
have been pledged to SBI Capital Security Trustee Company Limited for
the Loan availed by Indore Dewas Tollways Limited.
- Of these, 11,58,251 Equity shares of Gayatri Sugars Limited have
been pledged to Yes Bank Limited for the loan availed by Gayatri Sugars
Limited.
* The principal amount is repayable on demand and there is no repayment
schedule.
INVENTORIES
Raw Materials, Construction materials, stores and spares are valued at
weighted average cost. Expenditure incurred during the work in progress
of contracts up to the stage of completion is carried forward as
work-in-progress. Cost includes direct materials, work expenditure,
labour cost and appropriate overheads.
* Margin Money Deposits with carrying amount of Rs. 8076.09 Lakhs
(Previous year: Rs. 6986.30 Lakhs) are earmarked against Bank Guarantees
/LCs taken by the company (or subsidiaries of the company)
* Rs.10.00 Lakhs paid to Statutory Auditors towards Rights Issue
certification fee is charged to Rights Issue expenses.
** The exchange translation loss includes (a) exchange difference
arising on buy back of 42 FCCB bonds amounting to Rs. 1190.99 lakhs and
(b) the currency translation loss of Rs. 6732.60 lakhs (including current
year loss of Rs. 3528.89 lakhs) as on 31st March 2012 on the outstanding
229 FCCB bonds of JPY 10,000,000 each.
5. LEASES
Disclosure under Accounting Standard - 19 "Leases", issued by the
Institute of Chartered Accountants of India. The Company has taken
various residential/ godown/office premises (including Furniture and
Fittings if any) under lease and license agreements for periods which
generally range between 11 months to 3 years. These arrangements are
renewable by mutual consent on mutually agreed terms. Under some of
these arrangements the Company has given refundable security deposits.
The lease payments are recognized in Profit and Loss Account under
Rent, Rates and Taxes.
6. Contingent Liabilities and Commitments
The details of the Contingent Liabilities and Commitments to the extent
not provided as follows:
Rs.in Lakhs
Particulars As at As at
31st March,
2012 31st March,
2011
Contingent Liabilities
a) Claims against the company not
acknowledged as debt
b) Guarantees given by the Banks towards
performance & Contractual Commitments
i) issued on behalf of the Company 62,309.96 64,248.69
ii) Issued on behalf of Subsidiaries
/ Group Companies 16,105.52 27,462.24
c) Other money for which the company is
contingently - -
liable
d) Disputed Liability of Sales Tax,
Service Tax and 1,547.12 1,547.12
Seignior age charges
Commitments
Corporate Guarantees given to
group companies 5,64,166.00 5,71,166.00
7. Impairment of Assets
In the opinion of the management, there are no impaired assets
requiring provision for impairment loss as per the accounting standard
28 on Impairment of assets. The recoverable amount of building, plant
and machinery and computers has been determined on the basis of 'Value
in use' method.
8. Joint Venture Loss not considered IJM-Gayatri Joint Venture
The IJM - Gayatri Joint Venture is a joint venture in which IJM
Corporation Berhad, Malaysia holds 60% and Gayatri Projects Limited
holds 40% share. The Joint venture has executed road works in Package
I, II & III and AP 13 of NHAI, APSH 7 and APSH 8 in the State of Andhra
Pradesh. The joint venture incurred excess of expenditure over income
amounting to Rs 134.45 crores due to several contractual failures on
part of the employer.
The JV has raised claims in excess of Rs.300 Crores on the National
Highways Authority of India and Andhra Pradesh State Government, which
are pending for consideration before the appropriate authorities. The
joint venture has got favorable awards amounting to Rs.4587.36 lakhs at
the arbitration stage and further the JV has got favorable orders
amounting to Rs.419.18 Lakhs from the District Court. There is a
substantial progress in the proceedings of the claims and the
management is reasonably confident of recovery of these claims.
The management has also obtained independent legal opinion from eminent
counsel in this regard who have opined on the recoverability of the
claims. In view of this, the share of the losses of GPL (40%) in the
joint venture is not provided in the books of the Company. In the
unlikely situation of not awarding the entire amount of claims, GPL has
to provide an amount of Rs. 53.78 crores towards its share of 40% in the
IJM-Gayatri Joint Venture.
9. Disclosure pursuant to Accounting Standard (AS) - 15(Revised)
"Employee's Benefits":
i) The summarized position of Post-employment benefits and long term
employee benefits recognized in the Profit & Loss Account and Balance
Sheet as required in accordance with Accounting Standard - 15 (Revised)
issued by the Institute of Chartered Accountants of India are as
under:-
10. Segment Reporting
The Company's operations predominantly consist of providing
infrastructure facilities.. Hence there are no reportable segments
under Accounting Standard - 17. During the year under report, the
Company's business has been carried out only in India. The conditions
prevailing in India being uniform, no separate geographical disclosures
are considered necessary.
Computation of Net Profit in accordance with Section 349 of the
Companies Act, 1956
11. There are no amounts due and outstanding to be credited to
Investors Education & Protection Fund as on 31-03-2012.
Since the principal business of the Company is in construction
activities, quantitative data as required by Part II Para ii, 4c, 4d
of Schedule VI to the Companies Act, 1956 is not furnished.
12. The Revised Schedule VI has become effective from 1st April, 2011
for the preparation of financial statements. This has significantly
impacted the disclosure and presentation made in the financial
statements. Previous year's figures have been regrouped / reclassified
wherever necessary to correspond with the current year's classification
/ disclosure.
13. Amounts in the financial statements are presented in Rs. lakhs,
except for per share data and as otherwise stated.
14. All amounts are rounded off to nearest thousand.
Mar 31, 2011
1. Contingent Liabilities not provided for
(Rs.in Lacs)
S.No Particulars 2010-11 2009-10
1 Guarantees given by Banks towards
performance & contractual commitments
a) Issued on behalf of Company 64,248.69 44,509.66
b) Issued on behalf of Subsidiaries
/Group Companies 27,462.24 8,232.51
2 Corporate guarantees given to
Group companies 5,71,166.00 33,566.00
3 Disputed Liability of Sales Tax,
Service Tax and Seigniorage Charges 1,547.12 1,530.42
4 Estimated amounts of contracts
remaining to be executed on capital
account and not provided for à Ã
2. Issued and Subscribed Share Capital
i) During the year, 25 Foreign Currency Convertible Bonds (FCCB)
holders opted for conversion and as a result the Company has allotted
2,86,718 equity shares of Rs 10/- each at a premium of Rs 278/-, being
the minimum SEBI floor price prescribed in the offering circular of
FCCB's.
ii) During the year 2009-10, the Company had issued and allotted
10,00,000 warrants to the Promoters of the Company on a preferential
basis at a price of Rs.142.52 per warrant convertible into 1 equity
share of Rs.10/ - each at a premium of Rs.132.52 per warrant which
shall be convertible within a period of 18 months from the date of
allotment i.e. before 13/03/2011, which is in accordance with the SEBI
(Disclosure and Investor Protection) Guidelines, 2000, ("SEBI DIP
Guidelines"). On October 29, 2010, the promoters converted 597,521
Warrants into Equity Shares as per the pricing formula prescribed in
the SEBI DIP Guidelines for preferential issues. The remaining warrants
402,479 of the aforesaid 1,000,000 warrants remained unexercised as the
promoters are not allowed to convert beyond 5% during one financial
year as per SEBI(SAST) Regulations, 1997. Hence the remaining warrants
were forfeited by the company on March 14, 2011 and the amount paid by
the promoters towards the warrants of Rs. 143.40 Lacs was transferred
to Capital Reserve Account.
3. Loan Funds: Secured Loans:
a) Debentures
i) The Company has issued during the year 520 11.50% Secured Redeemable
Non-Convertible Debentures (NCDs) of Rs 10,00,000/- each on private
placement in the form of Separately Transferable Redeemable Principal
Parts (STRPPs) for cash at par aggregating Rs. 5200 Lacs. The
Debentures are secured by the pari passu first charge on the fixed
assets of a group company and redeemable in the 3rd, 4th and 5th year
in the ratio of 30:30:40 and the earliest date of redemption being 1st
December 2013.
ii) Debentures Redemption Reserve: Rs.1300.00 lacs has been credited as
Debenture Redemption Reserve during the year and is carried as part of
the Reserves & Surplus in the Balance Sheet.
b) Term Loan from Banks
Term Loans availed from banks and others are secured by hypothecation
of specific assets, comprising of plant and machinery and construction
equipment, acquired out of the said loans and personal guarantees of
Directors.
c) Working Capital Facilities
Fund based and non-fund based working capital facilities from the
consortium of Banks are secured by:
i) Hypothecation against first charge on stocks, books debts and other
current assets of the Company both present and future ranking pari
passu with consortium banks.
ii) Hypothecation against first charge on all unencumbered fixed assets
of the Company both present and future ranking pari passu with
consortium banks.
iii) Equitable mortgage of properties belonging to promoters,
directors, group companies.
iv) Personal guarantee of promoter directors, group companies/firms and
relatives.
d) Equipment & Vehicle Loans from Others
Equipments and Vehicle loans availed are secured by hypothecation of
specific equipments and vehicles acquired out of the said loans.
Unsecured Loans:
e) Foreign Currency Convertible Bonds (FCCBs):
i) The company had issued 308 Zero Coupon Foreign Currency Convertible
Bonds (FCCBs) (considered as a non-monetary liability) of Japanese Yen
(JPY) 10,000,000 each aggregating to JPY 308,00,00,000 redeemable on
1st August 2012 at 120.414% of its principal amount. The bond holders
had an option to convert these bonds into equity shares from and
including 12th September 2007 to and including 27th July 2012 at an
initial conversion price of Rs.378.35 per share with a fixed rate of
exchange on conversion at Rs.0.3303 per JPY. As per the terms of the
issue, the conversion price of the Bonds is subject to price reset and
the revised reset price of the Bonds during the year 2010-11, is
Rs.288/- per share which is in terms with the offering circular.
ii) Out of the total bonds, 12 bonds are already converted into equity
shares in the earlier year and in the current year 25 bonds were
converted into equity shares leaving balance of 271 bonds as at the
date of Balance Sheet. If all the outstanding bonds are converted into
equity shares at the revised reset price, then the share capital of the
company will increase by around 31.08 lacs equity shares of Rs.10/-
each.
iii) The Bonds may be redeemed in whole but not in parts, at the option
of the issuer at any time on or after 3rd August, 2010 and on or prior
to 3rd August 2012 subject to fulfillment of certain conditions. Unless
previously redeemed, purchased, converted or cancelled, the bonds will
mature on 3rd August 2012 at 120.414% of its principal amount.
iv) The Company continues to classify the outstanding liability
(towards FCCB convertible into shares at the option of the holders), as
a non-monetary liability as in its view the current fall in the market
price of the company's share price is a temporary aberration.
4. Investments:
i) Gayatri Sugars Ltd
Market value of the investment in Gayatri Sugars Limited as at 31st
March 2011 is Rs. 87.64 Lacs which is lesser than the carrying amount
in the Balance Sheet by Rs. 205.46 Lacs. In the opinion of the
Management, the diminution in the value of investment is purely
temporary in nature hence provision for the same is not provided for in
the books.
ii) Gayatri Energy Ventures Private Limited (GEVL)
During the year, the Company has invested Rs 26,800.00 Lacs (2680 Lacs
equity shares of Rs.10/- each at a premium of Rs.990/- per share) in
Gayatri Energy Ventures Private Limited (GEVL), a wholly owned
subsidiary of the Company. GEVL is setting up power projects through
its subsidiaries and associates.
7. Impairment of Assets
In the opinion of the management, there are no impaired assets
requiring provision for impairment loss as per the accounting standard
28 on Impairment of assets. The recoverable amount of building, plant
and machinery and computers has been determined on the basis of 'Value
in use' method.
8. Joint Venture Losses not considered
a) IJM-Gayatri Joint Venture
The IJM Ã Gayatri Joint Venture is a joint venture in which IJM
Corporation Berhad, Malaysia holds 60% and Gayatri Projects Limited
holds 40% share. The Joint venture has executed road works in Package
I, II & III and AP 13 of NHAI, APSH 7 and APSH 8 in the State of Andhra
Pradesh. The joint venture incurred excess of expenditure over income
amounting to Rs 134.45 crores due to several contractual failures on
part of the employer.
The JV has raised claims in excess of Rs.300 Crores on the National
Highways Authority of India and Andhra Pradesh State Government, which
are pending for consideration before the appropriate authorities. There
is substantial progress in the proceedings in the arbitration and the
management is reasonably confident of recovery of these claims.
The management has also obtained independent legal opinion from eminent
counsel in this regard who have opined on the recoverability of the
claims. In view of this, the share of the losses of GPL (40%) in the
joint venture is not provided in the books of the Company. In the
unlikely situation of not awarding the entire amount of claims, GPL has
to provide an amount of Rs 53.78 crores towards its share of 40% in the
IJM- Gayatri Joint Venture.
b) Other Joint ventures
Profit / (Loss) of all other joint ventures, other than the above, are
recognized in the book of accounts.
10. Related party transactions as per Accounting Standard 18 Details
of related parties:
Subsidiary Companies
Gayatri Energy Ventures Pvt.Ltd
Gayatri Infra Ventures Ltd
Bhandara Thermal Power Corporation Ltd
HKR Roadways Limited
Step-down Subsidiaries Companies
Gayatri Lalitpur Roadways Ltd
Gayatri-Jhansi Roadways Ltd
Thermal Powertech Corporation India Ltd
Associated Companies
Hyderabad Expressways Limited
Cyberabad Expressways Limited
Western UP Tollway Limited
Balaji Highways Holding Limited
(Considered as Subsidiary as per AS-21 for consolidation)
Indore Dewas Tollways Limited
(Considered as Subsidiary as per AS-21 for consolidation)
Entities in which KMP are interested
Deep Corporation Pvt. Ltd
Indira Constructions Pvt. Ltd
Gayatri Tissue & Papers Ltd
Gayatri Sugars Ltd
Gayatri Hi-Tech Hotels Ltd
Gayatri Housing Ventures Pvt. Ltd
Gayatri Hotels & Theaters Pvt. Ltd
Amaravathi Thermal Power Pvt.Ltd.
Gayatri Bio-Organics Limited
TSR Foundation
Dr.T.Subbarami Reddy (HUF)
Balaji Charitable Trust
Key Management Personnel (KMP)
Mr. T.V.Sandeep Kumar Reddy
Mr. J.Brij Mohan Reddy
Mrs.T.Indira Reddy
Joint Ventures
Gayatri RNS Joint Venture
IJM Gayatri Joint Ventures
Gayatri Ranjit Joint Venture
RNS Gayatri Joint Venture
Gayatri - GDC Joint Venture
Gayatri à BCBPPL Joint Venture
Jaiprakash Gayatri JV
Gayatri ECI Joint Venture
Gayatri à Ratna Joint Venture
MEIL-GAYATRI-ZVS-ITT Consortium
Simplex Gayatri Consortium
Gayatri-JMC Joint Venture
Viswanath - Gayatri Joint Venture
12. Segment Reporting
The Company's operations predominantly consist of construction /
project activities. Hence there are no reportable segments under
Accounting Standard à 17. During the year under report, the Company's
business has been carried out only in India. The conditions prevailing
in India being uniform, no separate geographical disclosures are
considered necessary.
13. Leases
Disclosure under Accounting Standard à 19 "Leases", issued by the
Institute of Chartered Accountants of India. The Company has taken
various residential/godown/office premises (including Furniture and
Fittings if any) under lease and license agreements for periods which
generally range between 11 months to 3 years. These arrangements are
renewable by mutual consent on mutually agreed terms. Under some of
these arrangements the Company has given refundable security deposits.
The lease payments are recognized in Profit and Loss Account under
Rent, Rates and Taxes.
15. Consolidated Financial Statements
As per the listing agreement entered with the Stock Exchanges,
accounting standards notified by Government and provisions of Sec 212
of the Companies Act, 1956, audited financial statements of the
Subsidiaries, Associate Companies and Joint ventures for the year
2010-11 were consolidated and annexed.
17. Dues to Micro and Small Enterprises:
On the basis of information available with the Company, there are no
dues outstanding for more than 45 days to Small Scale Industrial
Undertaking (SSI). 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 have not been given.
18. The unpaid dividend includes Rs. 2.29 Lacs (Previous year à Rs
1.52 Lacs), which will be transferred to the Investor Education &
Protection Fund, if it remains unpaid or unclaimed as per the
provisions of the Companies Act, 1956.
22. Since the principal business of the Company is in construction
activities, quantitative data as required by Part II Para ii, 4c, 4d of
Schedule VI to the Companies Act, 1956 is not furnished.
24. Prior Period Adjustment includes share of losses of the company of
earlier years in Gayatri-ECI Joint Venture of Rs.1240.47 Lacs
25. Figures of previous year have been regrouped/ rearranged/
reclassified wherever necessary to confirm to the current year
presentation.
26. All amounts are rounded off to nearest thousand.
27. Schedule 1 to 19 form an integral part of accounts
Mar 31, 2010
1. Contingent Liabilities not provided for
Rs.in Lacs
S.No Particulars 2009-10 2008-09
1 Guarantees given by Banks towards performance
& contractual
commitments :
a) Issued on behalf of Company 44509.66 41248.84
b) Guarantees given to Subsidiaries/Group
Companies 8232.51 31.38
2 Corporate guarantees given to Group companies 33566.00 16696.00
3 Disputed Liability of Sales Tax, Service
Tax and Seigniorage Charges 1530.42 1643.99
4 Estimated amounts of contracts remains
to be executed on - -
capital account and not provided for.
2. a) Share Capital:
During the year, the Company has allotted 10,00,000 equity shares of
Rs10/- each at a premium of Rs175/- on preferential basis to M/s
Reliance Capital Trustee Co. Ltd - Reliance Infrastructure Fund.
b) Share Warrants:
During the year the Company has allotted 10,00,000 Share warrants on a
preferential basis to the promoters of the Company at a price of Rs.
142.52 per warrant with a right to apply and be allotted Equity Shares
of the Company of Rs. 10/- each at a premium of Rs. 132.52 per share
within a period not exceeding 18 months from the date of allotment. The
Company is in receipt of Rs. 356.30 Lacs as 25% advance against the
said share warrants allotted. The promoter has a right to exercise to
subscribe for the warrants on or before 13th March 2011.
3. Loan Funds: Secured Loans:
a) Term Loan:
Term Loans availed from banks and others are secured by hypothecation
of specific assets, comprising plant and machinery, and construction
equipment, acquired out of the said loans and personal guarantees of
Directors.
b) Working Capital Facilities:
Fund based and non-fund based working capital facilities from the
consortium of Banks are secured by:
i) Hypothecation against first charge on stocks, books debts and other
current assets of the Company both present and future ranking pari pasu
with consortium banks.
ii) Hypothecation against first charge on all unencumbered fixed assets
of the Company both present and future ranking pari passu with
consortium banks.
iii) Equitable mortgage of properties belonging to Promoters,
Directors, group companies.
iv) Personal guarantee of promoter Directors, group companies/firms and
relatives.
c) Vehicle Loans:
Vehicle loans availed are secured by hypothecation of vehicles acquired
out of the said loans.
Unsecured Loans:
FCCB BONDS:
The Company has issued 308 FCCB Bonds of JPY 10000000 each aggregating
to JPY 308,00,00,000 due in the year 2012 equivalent to Rs.10173.24
Lacs. The bonds are listed in the Singapore Stock Exchange. Out of the
above, 12 Bonds of value of JPY 120 million were converted in the year
2007-08 leaving a balance of 296 Bonds of JPY 10000000 each equivalent
to Rs.9776.88 Lacs. During the year under review the company has not
received any request for conversion of the Bonds.
4. Investments:
i) Gayatri Sugars Ltd
Market value of the investment in Gayatri Sugars Limited as at 31st
March 2010 is Rs. 123.98 Lacs which is lesser than the carrying amount
in the Balance Sheet by Rs. 169.12 Lacs. In the opinion of the
Management, the diminution in the value of investment is purely
temporary in nature hence provision for the same is not provided for in
the books.
ii) Gayatri Energy Ventures Private Limited (GEVL)
GEVL is a wholly owned subsidiary of the company and it is establishing
mega coal based power project at Krishnapatnam, Andhra Pradesh State in
collaboration with the Sembcorp Industries Ltd, Singapore. During the
current year the Company has invested Rs. 3034.17 Lacs in GEVL. The
investment to the extent of shares allotted is shown in the Investment
schedule and the balance in the Loan and Advances schedule.
Investment in Equity Shares of GEVL have been pledged in favour of PTC
India Limited for a loan of Rs.100.00 crores sanctioned to Thermal
Powertech Corporation of India Ltd (a wholly owned subsidiary of GEVL)
5. Impairment of Assets
In the opinion of the management, there are no impaired assets
requiring provision for impairment loss as per the accounting standard
28 on Impairment of assets. The recoverable amount of building, plant
and machinery and computers has been determined on the basis of ÃValue
in use method.
6. Joint Venture Losses not considered
a) IJM-Gayatri Joint Venture
The IJM - Gayatri Joint Venture is a joint venture in which IJM
Corporation Berhad, Malaysia holds 60% and Gayatri Projects Limited
holds 40% share. The Joint venture has executed road works in Package
I, II & III and AP 13 of NHAI, APSH 7 and APSH 8 in the State of Andhra
Pradesh. The joint venture incurred excess of expenditure over income
amounting to Rs. 134.45 crores due to several contractual failures on
part of the employer.
The JV has raised claims in excess of Rs.300 Crores on the National
Highways Authority of India and Andhra Pradesh State Government, which
are pending for consideration before the appropriate authorities. There
is substantial progress in the proceedings in the arbitration and the
management is reasonably confident of recovery of these claims. During
the year under review in the matter of dispute out of the work of the
ÃWarangal-Khammam- Tallada Road workÃ, the committee of Arbitrators has
awarded a claim of Rs. 12.42 Crores in favour of joint venture.
The management has also obtained independent legal opinion from eminent
counsel in this regard who have opined on the recoverability of the
claims. In view of this, the share of the losses of GPL (40%) in the
joint venture is not provided in the books of the Company. In the
unlikely situation of not awarding the entire amount of claims, GPL has
to provide an amount of Rs. 53.78 crores towards its share of 40% in
the IJM-Gayatri Joint Venture.
b) Gayatri - ECI JV
Gayatri-ECI J V, a joint venture between ECI Engineering & Construction
Company Limited and Gayatri Projects Limited with a sharing ratio of
50:50. The joint venture is executing road projects in Assam, namely
AS-10,AS-11 and AS-27 awarded by NHAI.
The joint venture due to extraneous and law and order problems in the
State could not progress the work as planned and hence incurred losses
of Rs. 2963 Lacs till year 2008-09. However due to changed strategy of
the company and over all improvement of the law and order situation,
the progress of the work has improved substantially and the joint
venture has posted a profit of Rs. 481.73 Lacs during the year 2009-10
and to that extent the accumulated losses have been recovered. Since
now the substantial portion of the project work has started, the losses
incurred in the earlier years can be recovered from these profits.
Hence, the losses in the joint venture are not considered by the parent
company.
c) Other Joint ventures
Profit / (Loss) of all other joint ventures, other than the above, are
recognized in the books.
7. Employees Benefits:
i) The summarized position of Post-employment benefits and long term
employee benefits recognized in the Profit & Loss Account and Balance
Sheet as required in accordance with Accounting Standard à 15 (Revised)
issued by the Institute of Chartered Accountants of India are as
under:-
8. Segment Reporting:
The Companys operations predominantly consist of construction /
project activities. Hence there are no reportable segments under
Accounting Standard à 17. During the year under report of the Companys
business has been carried out only in India. The conditions prevailing
in India being uniform, no separate geographical disclosures are
considered necessary.
9. Leases:
Disclosure under Accounting Standard à 19 "Leases", issued by the
Institute of chartered Accountants of India. The Company has taken
various residential/godowns/offices premises (including Furniture and
Fittings if any) under lease and license agreements for periods which
generally range between 11 months to 3 years. These arrangements are
renewable by mutual consent on mutually agreed terms. Under some of
these arrangements the Company has given refundable security deposits.
The lease payments are recognized in Profit and Loss Account under
Rent, Rates and Taxes.
10. Consolidated Financial Statements:
As per the listing agreement entered with the Stock Exchanges,
accounting standards notified by Government and provisions of Sec 212
of the Companies Act, 1956, Audited financial statements of the
Subsidiaries, Associate Companies and Joint ventures for the year
2009-10 were consolidated and annexed.
The Company has applied for approval from Central Government under
section 212(8) of the Companies Act, 1956 for not attaching the annual
reports of subsidiary companies.
The Companys interest in Subsidiaries, Associates and Jointly
Controlled Entities as on March 31, 2010 and its proportionate share in
the Assets, Liabilities, Income and Expenditure of the entities
consolidated as on that date are given below:
11. Dues to Micro and Small Enterprises:
On the basis of information available with the Company, there are no
dues outstanding for more than 30 days to Small Scale Industrial
Undertaking (SSI). 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 have not been given.
12. The unpaid dividend includes Rs. 1.52 Lacs (Previous years à Rs.
0.86 Lacs) to be transferred to the Investor Education & Protection
Fund.
13. Since the principal business of the Company is construction
activities, quantitative data as required by Part II Para ii, 4c, 4d of
Schedule VI to the Companies Act, 1956 is not furnished.
14. Figures of previous year have been regrouped/ rearranged/
reclassified wherever necessary to confirm to the current year
presentation.
15. All amounts are rounded off to nearest thousand.
16. Schedule 1 to 18 form an integral part of accounts