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Notes to Accounts of KNR Constructions Ltd.

Mar 31, 2016

1 Term Loans from Banks

i) HDFC Bank Ltd.,

- Secured by Hypothecation of specific assets purchased out of the loan, comprising Plant & Machinery

ii) Axis Bank Ltd.,

- Secured by Hypothecation of specific assets purchased out of the loan, comprising Plant & Machinery

iii) ICICI Bank Ltd.,

- Secured by Hypothecation of specific assets purchased out of the loan, comprising Plant & Machinery The details of rate of interest and repayment terms of term loans are as under

2. In accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity covering employees. The liability on account of gratuity is covered partially through a recognized Gratuity Fund managed by Life Insurance Corporation of India (LIC) and balance is provided on the basis of valuation of the liability by an independent actuary as at the year end. The management understands that LIC''s overall portfolio of assets is well diversified and as such, the long term return on the policy is expected to be higher than the rate of return of Central Government bonds.

3. Working Capital Facilities: Cash Credit facilities from consortium of banks are secured by:

1 Hypothecation of entire current assets on pari passu basis with other participating banks,

2 First pari passu charge on equitable mortgage of land & buildings, valued at Rs. 30.38 Crores

3 First pari passu charge on equitable mortgage of industrial factory buildings without machinery, valued at Rs. 25.49 Crores on 09-03-2015

4 Hypothecation of certain equipment''s of written down value as on 31.03.2015 is Rs 45.03 Crores

5 Personal guarantee of Directors.

4. The interest rate for working capital demand loan and cash credit facilities varies from 10.80% to 12.40 % per annum

5 The company availed short term un-secured loans from directors, which are repayable on demand and carries interest at 10.00% to 11% per annum.

6.. There is no impairment Loss on fixed assets on the basis of review earned out by the management in accordance with the Accounting Standard-28 issued by the Institute of Chartered Accountants of India. Further during the review of assets of the company, those assets which are found having no market value have been written off in the accounts.

Debit and credit balances of parties a:e subject to confirinalion by the respective parties.

4 -The Company has taken unsecured advances / loans from its directors, the del alls of which are turn i shed below

Willi The current year’s classification / disclosure.

1Sri. S.Vaikuntanathan, V.P (F&A) has joined on 07-01-2016.

2Sri. G. Sravana Kumar, CGM (F&A) has resigned on 30-11-2015.

During the period under review, no employee of the Company is employed throughout the financial year and in receipt of Rs.60 lakhs or more, or employed for part of the year and in receipt of Rs.5 lakhs or more a month, under Rule 5(2) of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

ii) The median remuneration of employees of the Company during the financial year was Rs. 1.48lakhs;

iii) In the financial year, there was decrease of 18.83% in the median remuneration of employees;

iv) There were 854 employees on the rolls of Company as on March 31, 2016


Mar 31, 2013

1 CORPORATE INFORMATION:

1.1 The shares of the Company are listed on the stock exchanges in India in 2008 pursuant to the Public offer of equity shares. The Company is engaged in the infrastructure sector'' primarily in the construction of roads'' bridges and flyovers'' irrigation projects.

2. 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.

3. Segmental Reporting

The Company''s operations consists of Construction activities. Hence'' there are no reportable segments under Accounting Standard – 17. During the year under report'' the Company is engaged in business in India only and not in any other Country. The conditions prevailing in India being uniform'' no separate geographical disclosures are considered necessary.

4. In the case of Patel-KNR-JV'' the share of loss for the quarter ended 30th June'' 2012 was accounted for an amount of Rs 87.53 lakhs based on the un-audited financial statements furnished by the said J.V. However'' the share of profit/ loss for the remaining period of the financial year is not accounted as the said JV has not furnished audited/un-audited financial statements for the year ended 31-03-2013. The impact of this on the share of profit/ (loss) of the Company cannot be quantified in the absence of full particulars in this regard.

5. As per the Accounting Standard-27 on "Financial Reporting of Interest in Joint Venture'' issued by the Institute of Chartered Accountants of India'' the particulars of Joint Venture and its interest there in are as follows:

6. There is no impairment Loss on fixed assets on the basis of review carried out by the management in accordance with Accounting Standard-28 issued by the Institute of Chartered Accountants of India. Further during the review of assets of the company'' those assets which are found having nil market value have been written off in the accounts.

7. Debit and credit balances of parties are subject to confirmation by the respective parties.

8. The Company has taken unsecured advances / loans from its directors'' the details of which are furnished below:

9. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2012

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.

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 ensuring Annual General Meeting.

The Board of Directors, in their meeting on 28-05-2012 declared dividend of Rs 1/- per equity share. The total dividend appropriation for the year ended March 31 , 2012 amounted to Rs 326.86 Lakhs including corporate dividend tax of Rs 45.62 Lakhs.

1.1 Term Loans availed from banks and others are secured by hypothecation of specific assets comprising plant and equipment and vehicles acquired out of the said loans and personal guarantee of a director.

1.2 All term loans from banks and others are repayable in 35 equal monthly installments

2.1 Working Capital Facilities: Cash Credit facilities from consortium of banks are secured by:

1 Hypothecation of entire current assets on pari passu basis with other participating banks,

2 First pari passu charge on equitable mortgage of land & buildings, the WDV of which is Rs 1.38 crores (Market Value approx. Rs5.25 Crores) as on 31.03.2009 .

3 First pari passu charge on equitable mortgage of 5 acres of agricultural land of approximate value of Rs 6.00 Crores

4 First pari passu charge on equitable mortgage of industrial factory buildings without machinery of approximate value of Rs 25.40 Crores

5 Hypothecation of certain equipment's of written down value as on 31.03.2010 is Rs 45.00 Crores

6 Personal guarantee of Directors.

7 First pari passu charge on equitable mortgage of property in the name of Company and Director of approximate value of Rs 25.40 Crores

3. Contingent Liabilities not pr ovided for

Rs in Lakhs

Sl. Particulars 2011-12 2010-11 No.

a. Bank Guarantees

- for Company 42121.82 31434.05

- for Joint Ventures' 2264.81 3197.36

- for Subsidiaries Nil Nil

- for Associates (SPV's ) 200.00 200.00

- for Tax matters 241.63 241.63

Total 44828.26 35073.04

b. Corporate guarantees given to banks and financial institutions for financial assistance extended to Subsidiaries,

Associates and Joint Ventures 11142.25 13642.25

c. Counter Guarantees to Corporate Nil 280.00

d. Letters of Credit 1164.65 Nil

e. Demands against the Company not acknowledged as debts and not provided for in respect of which the Company has filed appeal.

- Income Tax and Interest on TDS 3106.83 2954.75

- Sales Tax / VAT / Entry Tax 1882.88 1481.99

f. Claims against the Company not acknowledged as debts 176.77 Nil

g. Joint and several liabilities in respect of joint venture projects and liquidated damages in respect of delays in completion of projects - amounts are not ascertainable.

4. Remittance in foreign currencies for dividend

The company has not remitted any amount in foreign currencies on account of dividends during the year and has remitted dividend to the nonresident shareholders in Indian currency during the year ended March 31, 2012 and the details of the same as given below:

5. 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.

6. Segmental Reporting

The Company's operations consist of Construction activities. Hence, there are no reportable segments under Accounting Standard - 17. During the year under report, the Company has engaged in business in India only and not in any other Country. The conditions prevailing in India being uniform, no separate geographical disclosures are considered necessary.

Note: The amounts mentioned above in the case of 1) M/s. Patel-KNR-JV 2) M/s. KNR-Patel-JV 3) M/s. KNR-BPL-JV and M/s. KNR Constructions LLC are based on the un-audited financial statements of the respective entities.

7. There was no impairment Loss on fixed assets on the basis of review carried out by the management in accordance with Accounting Standard-28 issued by the Institute of Chartered Accountants of India. Further during the review of assets of the company, those assets which are found having nil market value have been written off in the accounts.

8. Debit and credit balances of parties are subject to confirmation by the respective parties.

9. The Revised schedule VI to the Companies Act ,1956 has become effective from 1st April 2011 for the preparation of financial statements. This has significantly impacted the disclosure & 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.

 
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