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Notes to Accounts of IRB Infrastructure Developers Ltd.

Mar 31, 2016

NOTE 1 : CORPORATE INFORMATION

IRB Infrastructure Developers Limited (the Company) is a public company domiciled in India. The Company is engaged in carrying out the construction works as per EPC contract entered between the Company and its subsidiaries.

NOTE 2 : BASIS OF PREPARATION

The financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under Section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of the previous year.

NOTE 3 : SEGMENT REPORTING

The Company is engaged in "Road Infrastructure Projects" which in the context of Accounting Standard-17 "Segment Reporting" notified under Section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014.is considered as the only segment. The Company''s activities are restricted within India and hence no separate geographical segment disclosure is considered necessary.

NOTE 4: GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS

(a) Defined contribution plan

Amount recognised as an expense in Statement of Profit and Loss Rs.6,925,146/- (March 31, 2015 : Rs.5,394,991/-) on account of provident fund. There are no other obligations other than the contribution payable to the respective authorities.

(b) Defined benefit plan

The Company has a unfunded defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service as per the provision of the Payment of Gratuity Act, 1972 with total ceiling on gratuity of Rs.1,000,000/-.

The following tables summaries the components of net benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the balance sheet for the gratuity plan.

NOTE 5: DETAILS OF DUES TO MICRO AND SMALL ENTERPRISES AS DEFINED UNDER THE MSMED ACT, 2006

There are no Micro and Small Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006 to whom the Company owes dues on account of principal amount together with interest and accordingly, no additional disclosures have been made. The above information regarding Micro and Small Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.

NOTE 6 : UTILISATION OF MONEY RAISED THROUGH PUBLIC ISSUE

During the year ended March 31, 2015, the Company has raised Rs.4,400,061,080 through public issue (qualified institutional placement), specifically to meet the followings:

(i) investments by way of equity and/or loan in the Company''s existing and new subsidiaries, (ii) development and other project costs of unidentified existing and new projects (either directly or through the subsidiaries, joint ventures or affiliates currently incorporated or to be incorporated), (iii) repayment or prepayment of debt, (iv) normal capital expenditure, (v) new business initiatives, (vi) general corporate purposes, including working capital and (vii) any other uses as may be permissible under applicable law.

NOTE 7 : PREVIOUS YEAR FIGURES

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


Mar 31, 2015

1. CORPORATE INFORMATION

IRB Infrastructure Developers Limited (the Company) is a public company domiciled in India. The Company is engaged in carrying out the construction works as per EPC contract entered between the Company and its subsidiaries.

2. BASIS OF PREPARATION

The financial statements of the Company have been prepared in accordance with the generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of the previous year.

3. SEGMENT REPORTING

The Company is engaged in "Road Infrastructure Projects" which in the context of Accounting Standard- 17 "Segment Reporting" notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules 2014. is considered as the only segment. The Company''s activities are restricted within India and hence no separate geographical segment disclosure is considered necessary.

4. CONTINGENT LIABILITIES (TO THE EXTENT NOT PROVIDED FOR)

(Amount in Rs.)

Sr. Particulars March 31,2015 March 31,2014 No.

Amount outstanding in respect of guarantees given by the Company to Banks for loans to (i) 102,140,869,312 86,274,090,308 subsidiaries

(ii) Guarantees given to others for subsidiaries 3,093,167,399 1,238,517,399

(iii) Guarantees and counter guarantees on behalf of subsidiaries given by the Company 6,808,728,511 4,986,428,511

The Company does not expect any outflow of economic resources in respect of the above and therefore no provision is made in respect thereof.

The company''s pending litigations comprise of claims against the Company primarily by the commuters and proceedings pending with tax authorities, if any. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed contingent liabilities where applicable, in its financial statements. The Company has not provided for or disclosed contingent liabilities for matters considered as remote for pending litigations/public litigations(PIL)/claims the commuters wherein the management is confident, based on the internal legal assessment and advice of its lawyers that these litigations would not result into any liabilities. The Company does not expect the outcome of these proceedings to have a material adverse effect on the financial statements.

5. DETAILS OF DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES AS DEFINED UNDER THE MSMED ACT, 2006

There are no Micro, Small and Medium Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006 to whom the Company owes dues on account of principal amount together with interest and accordingly, no additional disclosures have been made. The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.


Mar 31, 2014

(Amounting)

Sr. No. Particulars March 31,2014 March 31,2013

NOTE 1: CONTINGENT LIABILITIES (TO THE EXTENT NOT PROVIDED FOR)

(i) Amount outstanding in respect of guarantees given by the Company 86,274,090,308 67,638,214,041 to Banks for loans to subsidiaries

(ii) Guarantees given to others for subsidiaries 1,238,517,399 1,096,817,399

(iii) Guarantees and counter guarantees on behalf of subsidiaries given by 4,986,428,511 2,762,884,945 the Company

The Company does not expect any outflow of economic resources in respect of the above and therefore no provision is made in respect thereof

NOTE 2 : LEASES

Rent/ lease payments under operating lease are recognised as an expense in the Statement of profit and loss on a straight line basis over the lease term


Mar 31, 2013

NOTE 1 : CORPORATE INFORMATION

IRB Infrastructure Developers Limited (the Company) is a public company incorporated in 1998 under the Companies Act, 1956. During the year, the Company was engaged in carrying out the construction works of its certain subsidiaries as per EPC contract entered between the Company and the subsidiaries and collection of toll from Toll Plaza as per the contract entered with the regulatory authorities. The Company is the holding company, with subsidiaries engaged in development of various infrastructure projects.

NOTE 2 : BASIS OF PREPARATION

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year

NOTE 3 : SEGMENT REPORTING

As permitted by paragraph 4 of Accounting Standard-17 "Segment Reporting", notified by the Companies (Accounting Standard) Rules, 2006 (as amended), if a single financial report contains both consolidated financial statements and the separate financial statements of the parent, segment information need to be presented only on the basis of the consolidated financial statements. Thus, disclosure required by Accounting Standard- 17 "Segment Reporting" are given in consolidated financial statements.

NOTE 4 : GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS

(a) Defined contribution plan

Amount recognised as an expense in statement of profit and loss Rs. 5,922,642 (Previous year Rs. 5,281,325) on account of provident fund . There are no other obligations other than the contribution payable to the respective authorities.

(b) Defined benefit plan

The Company has a unfunded defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service as per the provision of the Payment of Gratuity Act, 1972 with total ceiling on gratuity of Rs. 1,000,000/-.

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

NOTE 5 : CONTINGENT LIABILITIES (TO THE EXTENT NOT PROVIDED FOR) (Amount in Rs.)

Sr. March 31, 2013 March 31, 2012 No.

(i) Amount outstanding in respect of guarantees given by the 67,638,214,041 51,073,626,618 Company to Banks for loans to subsidiaries

(ii) Guarantees given to others for subsidiaries 1,096,817,399 1,576,375,000

(iii) Guarantees and counter guarantees on behalf of subsidiaries given 2,762,884,945 3,846,747,945 by the Company

The Company does not expect any outflow of economic resources in respect of the above and therefore no provision is made in respect thereof.

NOTE 6 : LEASES

Rent / lease payments under operating lease are recognised as an expense in the statement of profit and loss on a straight line basis over the lease term.

NOTE 7 : PREVIOUS YEAR FIGURES

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


Mar 31, 2012

1. Nature of operations

IRB Infrastructure Developers Limited is a Company incorporated in 1998 under the Companies Act, 1956. During the year, the Company was engaged in carrying out the construction works of it's certain subsidiaries as per EPC contract entered between the Company and the subsidiaries and collection of toll from Toll Plazas as perthe contract entered with the regulatory authorities. The Company is the Holding Company, with subsidiaries engaged in development of various infrastructure projects.

2. Basis of preparation

The financial statements have been prepared to comply in all material respects with the Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous years except for change in accounting policy explained below.

4 Segment reporting-

As permitted by paragraph 4 of Accounting Standard-17, "Segment Reporting", notified by the Companies (Accounting Standard) Rules, 2006 (as amended), if a single financial report contains both consolidated financial statements and the separate financial statements of the parent, segment information need to be presented only on the basis of the consolidated financial statements. Thus, disclosure required by Accounting Standard-17, "Segment Reporting" are given in consolidated financial statements.

a. Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share.

The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Board Meeting.

During the year ended March 31, 2012, the amount of per share dividend recognised as distributions to equity shareholders was Rs. 1.80 (For the year ended March 31, 2011: Rs. 1.50).

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

NOTE NO. 3 : GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS

(a) Defined contribution plan

Amount recognized as an expense in Statement of Profit and Loss Rs. 5,281,325 (Previous yearRs. 3,431,168) on account of provident fund. There are no other obligations other than the contribution payable to the respective authorities.

(b) Defined benefit plan

The Company has an unfunded defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service as per the provision of the Payment of Gratuity Act, 1972 with total ceiling on gratuity of Rs. 1,000,000/-. The following tables summaries the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the gratuity plan.

NOTE NO. 4 : GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS (Contd.)

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

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

NOTE NO. 5 : Gross income from agency toll collection is Rs. 975,272,420/- (Previous year Rs. 210,688,649/-) and gross payment of toll to NHAI Rs. 998,493,509/- (Previous year Rs. 198,853,397/-).

NOTE NO. 6 : LEASES

Rent/lease payments under operating lease are recognised as an expense in the statement of Profit and Loss on a straight-line basis over the lease term.

NOTE NO. 7 : RELATED PARTY DISCLOSURES -

a) Names of Related Parties Subsidiaries

Aryan Toll Road Private Limited

ATR Infrastructure Private Limited

IDAA Infrastructure Private Limited

Ideal Road Builders Private Limited

IRB Infrastructure Private Limited

Mhaiskar Infrastructure Private Limited

Modern Road Makers Private Limited

Thane GhodbunderToll Road Private Limited

Aryan Infrastructure Investment Private Limited

NKT Road & Toll Private Limited

IRB Surat DahisarTollway Private Limited

IRB Ahmedabad Vadodara Super Express Tollway Private Limited (incorporated on May 31, 2011)

IRB Kolhapur Integrated Road Development Company Private Limited

Aryan Hospitality Private Limited

IRB Sindhudurg Airport Private Limited

IRB Pathankot AmritsarToll Road Private Limited

IRB Talegaon Amravati Tollway Private Limited

IRB Jaipur Deoli Tollway Private Limited

IRB Goa Tollway Private Limited

IRB TumkurChitradurga Tollway Private Limited

MRM Cement Private Limited

MMKToll Road Private Limited

J J Patel Infrastructural and Engineering Private Limited (w.e.f. November 28, 2011)

Key Management Personnel

Mr. Virendra D. Mhaiskar and Mr. Mukeshlal Gupta

Relatives of Key Management Personnel

Mrs. D. V. Mhaiskar (Wife of Mr. Virendra D. Mhaiskar) Mr. D. R Mhaiskar (Father of Mr. Virendra D. Mhaiskar) Mrs. S. D. Mhaiskar (Mother of Mr. Virendra D. Mhaiskar) Mr. J. D. Mhaiskar (Brother of Mr. Virendra D. Mhaiskar) Mr. S. G. Kelkar (Father-in-law of Mr. Virendra D. Mhaiskar)

Enterprises Owned or significantly influenced by key management personnel or their relatives

A.J. Tolls Private Limited, Anuya Enterprises, D.S. Enterprises, Deepali Construction, Dattakrupa Enterprises, Global Safety Vision Private Limited, Ideal Infoware Private Limited, Ideal Softtech Park Private Limited, JDV Finlease Private Limited, Ideal Toll and Infrastructure Private Limited, J.D. Mhaiskar (HUF), Jan Transport, Jayant Construction Company, JDV Udyog, MEP Infrastructure Private Limited, Mhaiskar Udyog, Rideema Enterprises, Rideema Toll Private Limited, VD. Mhaiskar (HUF)/Aryan Construction, VCR Toll Services Private Limited, Virendra Builders, D.R Mhaiskar (HUF), Ideal Energy Projects Limited, Ideal Hospitality Private Limited, Raima Ventures Private Limited, Sudha Productions, MAASK Entertainment Private Limited, MEP Infrastructure Developers Private Limited, IEPL Power Trading Company Private Limited, Ideal Brands Private Limited.

NOTE NO. 8 : PREVIOUS YEAR FIGURES

Till the year ended March 31, 2011, the Company was using pre-revised Schedule VI to the Companies Act, 1956, for preparation and presentation of its financial statements. During the year ended March 31, 2012, the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the Company. Except accounting for dividend on investments in subsidiaries, the adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it significantly impacts presentation and disclosures made in the financial statements, particularly presentation of Balance Sheet. The Company has reclassified previous year figures to conform to this year's classification.


Mar 31, 2010

1. Initial Public Offer (IPO)

i) In the financial year 2007-08, the Company completed an Initial Public Offer (IPO) of 51,057,666 Equity Shares of Rs. 10 each for cash at a price of Rs. 185 each aggregating to Rs. 9,445,668,210.

The premium of Rs.175 per share, amounting to Rs. 8,935,091,550 from the allotment was credited to Securities Premium Account. The Share Issue expenses incurred by the Company during the current year amounting to Rs. Nil (Previous Year Rs. 13,105,373) has been adjusted against Securities Premium Account.

Pursuant to the Public Issue, shares of the Company are listed on National Stock Exchange and Bombay Stock Exchange effective February 25, 2008.

2. Segment Information

(a) The Company has disclosed Business Segment as the primary segment. Segments have been identified taking into account the nature of the products, the differing risks and returns, the organization structure and internal reporting system.

(b) The Companys operations predominantly relate to Road Infrastructure Projects. Other business segments reported are real estate development sector.

(c) The Companys activities are restricted within India and hence no separate geographical segment disclosure is considered necessary.

(d) For the purpose of reporting, business segment is the primary segment and the geographic segment is a secondary segment.

(e) Segment Revenue, Segment Results, Segment Assets and Segment Liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis.

(f) The net expenses, which are not directly attributable to the Business Segment, are shown as unallocated corporate cost.

(g) Assets and Liabilities that cannot be allocated between the segments are shown as a part of unallocated corporate assets and liabilities respectively.

3. Related Party Disclosures

I. Names of related parties

(a) Enterprises owned or significantly influenced by key management personnel or their relatives (Enterprises)

A.J. Tolls Private Limited, Anuya Enterprises, Aryan Construction, D.S. Enterprises, Deepali Construction, Dattakrupa Enterprises, Global Safety Vision Private Limited, Ideal Infoware Private Limited, Ideal Softtech Park Private Limited, JDV Finlease Private Limited, Ideal Toll and Infrastructure Private Limited, J.D.Mhaiskar (HUF), Jan Transport, Jayant Construction Company, JDV Udyog, MEPToll Road Private Limited, Mhaiskar Udyog , Rideema Enterprises, Rideema Toll Private Limited, VD.Mhaiskar (HUF), VCR Toll Services Private Limited, Virendra Builders, D.RMhaiskar (HUF), Ideal Energy Projects Limited, Ideal Hospitality Private Limited, Raima Ventures Private Limited,Sudha Productions

(b) Key Management Personnel

Mr. V. D. Mhaiskar, Mr. D. R Mhaiskar, Mrs. D.VMhaiskar, Mr. J. D. Mhaiskar

(c) Relatives of Key Management Personnel

Mr. S.G. Kelkar. (Father in law of Mr. V. D. Mhaiskar), Mrs. S.D. Mhaiskar (Wife of Mr. D.R Mhaiskar), Mrs. A.J. Mhaiskar (Wife of Mr. J.D.Mhaiskar)

4. Contingent Liabilities not provided for

Particulars March 31, 2010 March 31, 2009 Rs. Rs.

Claims against the company not acknowledged as debts 294,585,962 294,585,962

Guarantees to banks for loans taken by Subsidiaries NIL 11,232,657,354

Guarantees and Counter Guarantees given by the Company on behalf 3,737,578,945 1,620,591,445 of subsidiaries to suppliers, Govt, bodies and Performance Guarantee

Corporate Guarantee given by the Company for Subsidiaries 400,000,000 2,824,400,000

Total 4,432,164,907 15,972,234,761

5. Derivative Instruments and Unhedged Foreign Currency Exposure:

In respect of outstanding derivative contracts of Interest rate swaps which are stated below, there is a net unrealized loss/(provision reversal) as on March 31, 2010 which has been recognised in the books for Rs. 6,379,503/- (Previous Year: Rs. 1,810,148/-), considering the principles of prudence as enunciated in Accounting Standard 1 "Disclosure of Accounting Policies" notified in the Companies (Accounting Standards) Rules 2006. Derivative contracts entered into by the Company for hedging interest rate related risks and are for hedging purpose only.

6. Intra-group Turnover and Profits on BOT Construction Contracts

The BOT contracts are governed by Service concession agreements with government authorities (grantor). Under these agreements, the operator does not own the road, but gets "toll collection rights" against the construction services incurred. Since the construction cost incurred by the operator is considered as exchanged with the grantor against toll collection rights, profit from such contracts is considered as realized.

Accordingly, BOT contracts awarded to group companies (operator), where work is subcontracted to fellow subsidiaries, the intra group transactions on BOT contracts and the profits arising thereon are taken as realised and not eliminated for consolidation under Accounting Standard 21.

The revenue and profit in respect of these transactions during the year is Rs. 8,116,507,870/-(Previous Year - Rs. 3,661,989,780) and Rs. 2,656,353,406/- (Previous Year - Rs. 988,761,997) respectively.

7. Gratuity and other post-employment benefit plans:

(a) Defined Contribution Plan

Amount recognized as an expense and included in the Schedule 16 - "Contributions to Provident and other funds" of Profit and Loss account - Rs. 35,260,209/- (Previous Year - Rs. 24,644,075/-). There are no other obligations other than the contribution payable to the respective trusts.

(b) Defined Benefit Plan

The Company has an unfunded defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service as per the provision of the Payment of Gratuity Act,1972 with total ceiling on gratuity of Rs. 350,000/-.

Amount recognized as an expense and included in the Schedule 16 - "Contributions to Provident and other funds" of Profit and Loss account - Rs. 10,115,518/- (Previous Year - Rs. 6,436,954/-).

8. Resurfacing expenses

The Group has a contractual obligation to maintain, replace or restore infrastructure at the end of each concession period. The Group has recognized the provision in accordance with Accounting Standard (AS) - 29, Provision, Contingent Liabilities and Contingent Assets i.e. at the best estimate of the expenditure required to settle the present obligation at the balance sheet date. Resurfacing expenses are to be paid out at the end of the concession period.

9. Investment under Portfolio Management Scheme (PMS)

The Company has entered into an agreement with Kotak Securities to invest a sum of Rs. 30,000,000 under a portfolio management scheme called "Opportunities 2010 Portfolio Scheme" and agreed for a lock-in period of Companys portfolio for a period up to December 31, 2010. Further, Aryan Infrastructure Investment Private Limited (subsidiary of the Company) has also entered into an agreement with Kotak Securities to invest a sum of Rs.20,000,000 under a portfolio management scheme called "Incubator Equity Portfolio Scheme" respectively and agreed for a lock-in period of Companys portfolio for a period up to March 31, 2010. The investment under the scheme have been disclosed as Current Investments in Schedule 6 and valued accordingly.

10. Figures pertaining to the subsidiary companies have been reclassified wherever necessary to bring them in line with the Group financial statements.

11. Previous Year Comparatives

Previous years figures have been regrouped wherever necessary to conform to current years classification.

 
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