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Notes to Accounts of MBL Infrastructure Ltd.

Mar 31, 2018

4. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the financial statements in conformity with the measurement principle of Ind AS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Differences between the actual results and estimates are recognized in the year in which the results are known / materialized and, if material, their effects are disclosed in the notes to the financial statements.

Application of accounting policies that require significant areas of estimation, uncertainty and critical judgments and the use of assumptions in the financial statements have been disclosed below. The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are discussed below:

(a) Contract estimates

The Company, being a part of construction industry, prepares budgets in respect of each project to compute project profitability. The two major components of contract estimate are ''claims arising during Construction period'' and ''budgeted costs to complete the contract''. While estimating these

components various assumptions are considered by the management such as (i) Work will be executed in the manner expected so that the project is completed timely (ii) consumption norms will remain same (iii) Assets will operate at the same level of productivity as determined (iv) Wastage will not exceed the normal °/o as determined etc. (v) Estimates for contingencies (vi) There will be no change in design and the geological factors will be same as communicated and (vii) price escalations etc. Due to such complexities involved in the budgeting process, contract estimates are highly sensitive to changes in these assumptions all assumptions are reviewed at each reporting date.

(b) Depreciation and impairment on PPE

Property, plant and equipment are depreciated on straight-line basis over the estimated useful lives in accordance with Schedule II of the Companies Act, 2013, taking into account the estimated residual value, wherever applicable.

The company reviews its carrying value of its Tangible Assets whenever there is objective evidence that the assets are impaired. In such situation Assets'' recoverable amount is estimated which is higher of asset''s or cash generating units (CGU) fair value less cost of disposal and its value in use. In assessing value in use the estimated future cash flows are discounted using pre-tax discount rate which reflect the current assessment of time value of money. In determining fair value less cost of disposal, recent market realizations are considered or otherwise in absence of such transactions appropriate valuations are adopted. The Company reviews the estimated useful lives of the assets regularly in order to determine the amount of depreciation and amount of impairment expense to be recorded during any reporting period. This reassessment may result in change estimated in future periods.

(c) Impairment on Investments in Subsidiaries and associates

Investments in Subsidiaries and associates are been carried at cost. The company has tested for impairment at year end based on the market value where the shares are quoted, P/E ratio of similar sector company along with premium/discount for nature of holding and Net Asset Value computed with reference to the book value/ projected discounted cash flow of such company in respect of unquoted investments.

(d) Arrangements containing leases and classification of leases

The Company enters into service / hiring arrangements for various assets / services. The determination of lease and classification of the service / hiring arrangement as a finance lease or operating lease is based on an assessment of several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessee''s option to purchase and estimated certainty of exercise of such option, proportion of lease term to the asset''s economic life, proportion of present value of minimum lease payments to fair value of leased asset and extent of specialized nature of the leased asset.

(e) Impairment allowances on trade receivables

The Company evaluates whether there is any objective evidence that trade receivables are impaired and determines the amount of impairment allowance as a result of the inability of the customers to make required payments. The Company bases the estimates on the ageing of the trade receivables balance, credit-worthiness of the trade receivables and historical write-off experience. If the financial conditions of the trade receivable were to deteriorate, actual write-offs would be higher than estimated.

(f) Income taxes

Significant judgment is required in determination of taxability of certain income and deductibility of certain expenses during the estimation of the provision for income taxes.

(g) Defined benefit obligation (DBO)

Critical estimate of the DBO involves a number of critical underlying assumptions such as standard rates of inflation, mortality, discount rate, anticipation of future salary increases etc. as estimated by Independent Actuary appointed for this purpose by the Management. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.

(h) Provisions and Contingencies

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability requires the application of judgment to existing facts and circumstances, which can be subject to change.

Management judgment is required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/litigations/ against the Company as it is not possible to predict the outcome of pending matters with accuracy.

The carrying amounts of provisions and liabilities and estimation for contingencies are reviewed regularly and revised to take account of changing facts and circumstances.

6.2 An amount of Rs, 1,500 lakhs classified as loans and advances in the previous year has been reclassified as Investments during the year ending March 31st 2018. As result of the reclassification previous year ending i.e. March 31st 2017 figures have also been reclassified. The resultant impact of the reclassification on (i) other equity Rs,(107.95) Lakhs, (ii) finance cost Rs,(627.55) Lakhs (iii) other income Rs,(519.59) Lakhs, (iv) other noncurrent assets Rs,(105.85) Lakhs, (v) other current assets Rs,(105.85) Lakhs, (vi) non-current financial assets-loan Rs,(1,180.36) Lakhs and (vi) non-current investments Rs, 1,500 Lakhs. The resultant net impact on statement of Profit Et Loss for the year ended 31st March 2017 is ''107.95 Lakhs.

18.1 The company has only one class of equity shares having a par value of Rs,10 per share. Each shareholder is eligible for one vote per share.

18.2 The dividend proposed by the board of directors is subject to the approval of shareholders.

18.3 In the event of Liquidation, the Equity Shareholders are eligible to receive the remaining assets of the company, after distribution of all preferential amounts, in proportion to their shareholding .

18.4 Reconciliation of shares outstanding at the beginning and at the end of the reporting period:

18.5 The company had allotted 2,07,27,312 fully paid up equity shares of face value Rs,10/- each, in the ratio of one equity shares for every equity shares held, during the quarter ended 30th September, 2015, pursuant to a bonus issue approved by the shareholders at the annual general meeting, held on 17th July, 2015, by capitalisation of capital redemption reserve Et securities premium reserve.

18.6 The details of shareholders holding more than 5°/o shares of the aggregate share in the company:

Refer Statement of changes in Equity (SoCE) for movement in balances of reserves.

Nature and purpose of Reserves:-1. Securities Premium Reserve

Securities Premium Reserve represents the amount received in excess of par value of securities and is available for utilisation as specified under Section 52 of Companies Act, 2013.

2. General Reserve

The general reserve is created from time to time by appropriating profits from retained earnings. The general reserve is created by a transfer from one component of equity to another and accordingly it is not reclassified to the Statement of profit and loss.

3. Retained Earnings

Retained Earnings generally represent the undistributed profits /amount of accumulated earnings of the Company.

4. Capital Reserve

Capital Reserve represents adjustments arising out of Resolution Plan under Insolvency and Bankruptcy Code, 2016 approved by the Hon''ble NCLT on 18th April, 2018 as stated in Note No. 39.

5. Other Comprehensive Income

Other Comprehensive Income represent the balance in equity relating to actuarial gain and losses on defined benefit obligations. This will not be reclassified to statement of Profit and Loss account.

20.1 Equipment/Vehicle finance/ External commercial borrowings (ECB) availed from banks and others are secured by hypothecation of specific equipments; comprising construction equipments acquired out of the said loans and personal guarantee of promoter director of the company.

20.2 Restructuring in term of Resolution Plan

(A) In terms of the Resolution Plan, there will be working capital term loan of Rs,3,737.93 Lakhs from the consortium of banks. The rate of interest on such loan will be I year MCLR of SBI plus spread of 0.70% p.a and will be repaid in 39 unequated quarterly installments.

The Working Capital Term Loan secured/ to be secured as follows:

(i) 1st pari-passu charge on the entire Fixed Assets (movable and immovable) of the Company except those specifically charged to Equipment/ECB lenders.

(ii) 1st pari-passu charge on the long term receivables.

(iii) 2nd pari-passu charge on the entire current assets of the company.

(B) In terms of the Resolution Plan, there will be secured Non-Convertible Debentures at a coupon rate of 0.10% to the consortium of banks to be redeemed over a period of 9.75 years (at a premium of 10°/o at the time of final redemption). The payment of the interest will be made quarterly on the last date of the quarter.

The payment of the Principal amount in 39 unequated quarterly installments.

A security trustee will be appointed for creation of security and the amount of NCDs aggregating to Rs,87,537.50 lakhs (Including Deferred Credit to Rs,38,481.60) will be secured by:

(i) 1st pari-passu charge on the long term receivables.

(ii) 2nd pari-passu charge on the entire current assets of the company.

(C) All the amounts will be paid after proper reconciliation and without prejudice to legal remedies available to the Company. The Company will have the option to prepay the dues to banks, financial institutions /creditors (based on time value of their dues at discount rate), without any additional levies.

26.1 Restructuring of working capital facilities in term of Resolution Plan

In terms of the Resolution Plan, working capital facilities will be Rs,3,737.61 lakhs (cash credit) from the consortium of banks. The rate of interest on such cash credit will be I year MCLR of SBI plus spread of 0.70% p.a. The Working Capital facilities will be secured by:

(i) 1st pari-passu charge on the entire current assets of the company.

(ii) 2nd pari-passu charge on the entire Fixed Assets (movable and immovable) of the Company.

(iii) 2nd pari-passu charge on the long term receivables.

The working capital dues will also be secured by the personal guarantee of Mr Anjanee Kumar Lakhotia and further pledge of 24% of promoter''s shareholding to the consortium of working capital lenders.

’Payable upon reconciliation to dissenting financial creditors as per Resolution Plan under IBC, 2016 as stated in Note No. 39.

26.2 Short term secured borrowings from other party is secured by subservient charge on the current asset of the Company. wFurther, there is a collateral security by way of pledge of 14,12,000 nos. (as on 31st March 2017: 30,41,073 nos.) shares of the Company by Promoter Company MBL A Capital Limited and 2,50,000 nos. (as on 31st March 2017: 26,19,000 nos.) shares of Anjanee Kumar Lakhotia-Chairman Et Managing Director of the company.

The Corporate Insolvency Resolution Process (CIRP) for the Company under the Insolvency Et Bankruptcy Code, 2016 (IBC, 2016) was initiated pursuant to an order dated 30th March 2017 of Hon''ble National Company law Tribunal, Kolkata Bench (Hon''ble NCLT). The Resolution Plan dated 22nd November 2017 submitted by Mr A. K. Lakhotia, Promoter Director after being voted in favour by the Committee of Creditors was approved by Hon''ble NCLT by its order dated 18th April 2018. The powers of the Board of Directors which were suspended during CIRP from 30th March 2017 to 18th April 2018 have been reinstated with effect from 19th April 2018 and the management of the affairs of the Company is now under the control and supervision of the Board of Directors of the company. Four of the dissenting banks have filed appeals with Hon''ble National Company Law Appellate Tribunal against the NCLT order dated 18th April 2018 approving the Resolution Plan. The Resolution Plan, inter-alia, provides for the payment of liabilities, subject to reconciliation and legal remedies, as follows:

(i) Payment of CIRP cost and workmen dues on priority.

(ii) Operational and other creditors (except financial creditors) to be paid in three years.

(iii) Statutory dues to be paid in three years.

(iv) Assenting Financial Creditors:

a) Cash credit facility amounting to Rs,3,737.61 Lakhs @ one year MCLR of SBI plus spread of 0.70% p.a

b) Working Capital Term Loan amounting to Rs,3,737.61 Lakhs @ one year MCLR of SBI plus spread of 0.70% p.a.

c) Issuance of Secured 0.10% Non-convertible debentures (NCDs) amounting to Rs,87,867.00 Lakhs redeemable over a period of 9.75 years (at a premium of 10% at the time of final redemption).

d) External Commercial Borrowings amounting to Rs, 12,281.36 Lakhs be restructured to be paid over a period of 9.75 years @ one year MCLR of SBI plus spread of 0.70% p.a. in Indian rupees.

e) Term Loans from NBFC Lenders amounting to Rs,4,034.35 Lakhs to be restructured to be paid over a period of 9.75 years @ one year MCLR of SBI plus spread of 0.70% p.a..

The repayment of the aforesaid liabilities at (b), (d) and (e) would be made in 39 unequaled quarterly installments. NCDs pursuant to (c) above have since been issued and are redeemable in 39 unequaled quarterly installments.

(v) Dissenting financial creditors - to be paid liquidation value amounting to Rs,4,902.25 Lakhs as per IBC, 2016.

In terms of Ind AS 10 "Events after the Reporting Period" the impact of the Resolution Plan being adjusting event has been given effect to as on 31st March 2018. Accordingly, the resultant impact of the adjustments of the item (ii), (iii) and (iv) detailed above is as under:-

The Adjustment arising out of Resolution Plan including the difference between the admitted claims and liquidation value payable to the dissenting financial creditors to the approved Resolution Plan and other adjustment net of CIRP cost have been disclosed as "Exceptional Item" and are treated as "Capital Reserve". The following items are part of exceptional items - (a) Adjustment for liquidation value Rs,26,719.75 lakhs, (b) Interest Rs, 13,753.68 Lakhs, and (c) CIRP Cost (Rs,275.74 lakhs, less GST Input Rs, 14.87 lakhs) net Rs,(260.87) Lakhs.

39.2 The proceedings under Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as ''IBC'') are subject to either resolution or liquidation of a Company. Section 238 of the IBC provides that its provisions override other statutes.

Exceptional Items(Net) amounting to Rupees 40,212.56 Lakhs are resulting from Corporate Insolvency Resolution Process (CIRP) and are capital in nature and no income/profit has accrued and no cash flow is to be realised to the Company. The amount has been routed through Statement of Profit and Loss account as per requirement of Ind AS and being capital in nature has been transferred to Capital Reserve. Moreover no real income/profit has accrued to the Company and in view of above the same is not taxable under provisions of entire Income Tax Act and Rules.

1. Related Party Disclosures

Related parties have been identified in terms of Ind As 24 on "Related Party Disclosure" as listed below :

List of Related Parties where control exists A Name of the Related Party Relationship

AAP Infrastructure Ltd. Subsidiary Company

MBL Highway Development Company Ltd. Subsidiary Company

MBL (MP) Toll Road Company Ltd. Subsidiary Company

MBL Projects Ltd. Subsidiary Company

MBL (MP) Road Nirman Company Ltd. Subsidiary Company

MBL (Haldia) Toll Road Company Ltd. Subsidiary Company

Suratgarh Bikaner Toll Road Company Private Ltd. Subsidiary Company

MBL (Udaipur Bypass) Road Limited Subsidiary Company

TCIL - MBL (JV) (51%) Enterprises-Participation interest

MBL - Supreme (JV) (50%) Enterprises-Participation interest

MBL- ABCI (JV) (60%) Enterprises-Participation interest

MBL- VIL (JV) (60%) Enterprises-Participation interest

B Key Management Personnel Relationship

Mr. Anjanee Kumar Lakhotia Chairman and Managing Director

Mrs. Sunita Palita (Independent Director) Independent Director

Mr. Ashwini Kumar Singh (Independent Director) Independent Director

Mr. Bhagwan Singh Duggal (Independent Director) Independent Director

Mr. Darshan Singh Negi (Chief Financial Officer) Chief Financial Officer

Mr. Anubhav Maheshwari (Company Secretary) Company Secretary

C Enterprises owned or significantly influenced by

key management personnel or their relatives MBLA Capital Ltd

Dipika Suppliers Pvt Ltd Chetan Commotrade Pvt Ltd SMH Infrastructure Pvt Ltd Narayan Infracon Pvt Ltd

The management considers that the above carrying amounts of financial assets and financial liabilities recognized in the financial statements approximate their fair values. The above table includes the balances payable to financial and operational creditors in terms of the resolution plan under the IBC, 2016 as stated in Note No. 39.

b) Fair Value Technique

The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate the fair values:-

i) The fair value of cash and cash equivalents, trade receivables, current trade payables, current financial liabilities and borrowings approximate their carrying amount largely due to the short-term nature of these instruments. The Board considers that the carrying amounts of financial assets and financial liabilities recognized at cost/mortised cost in the financial statements approximate their fair values.

ii) In terms of the resolution plan, the long term borrowings as on 31st March, 2018 are substantially at fixed rate. Accordingly, any increase or decrease in the market rate of interest will have implications on the fair value of long term debt in future years.

2. Fair value of financial assets and liabilities (Contd.)

c) Fair Value hierarchy

The following table provides the fair value measurement hierarchy of Company''s asset and liabilities, grouped into Level 1 to Level 3 as described below: Level 1

Quoted prices for identical assets / liabilities in active markets. It includes fair value of financial instruments traded in active markets and are based on quoted market prices at the balance sheet date (like Mutual funds units).

Level 2

Inputs that are observable for the asset / liability (other than level 1 inputs), either directly (that is, as prices) or indirectly (that is, derived from prices). It includes fair value of the financial instruments that are not traded in an active market, is determined by using valuation techniques. If all significant inputs required to fair value an instrument are observable then instrument is included in level 2.

Level 3

Significant Inputs for the asset or liability (instrument) that are not based on observable market data, is included in level 3.

For assets and liabilities which are measured at fair value as at Balance Sheet date, the classification of fair value calculations by category is summarized below:

3. Financial risk management, objective and policies

The Company''s business activities are exposed to a variety of financial risks - credit risk, liquidity risk and market risk. The Company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The risks are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives.

However, as indicated in note no. 39 entire loan has been restructured. In view of the above, the related risks have undergone significant variation leading to substantial improvement in financial position and will require reconsideration on giving effect to the above adjustments in the financial statement.

i) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables). To manage this, the management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. The Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends and ageing of accounts receivable.

The Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables. Receivables from customers are reviewed/evaluated periodically by the management and appropriate provisions are made to the extent recovery there against has been considered to be remote.

The carrying amount of respective financial assets recognized in the financial statements represents the Company''s maximum exposure to credit risk.

Credit exposure is managed by counterparty limits for investment of surplus funds which is reviewed by the Management. Bank balances are held with reputed and creditworthy banking institutions.

4. Financial risk management, objective and policies (Contd.)

Trade receivables disclosed include amounts that are past due at the end of the reporting period but against which the Company has not recognized an allowance for doubtful receivables because there has not been a significant change in credit quality and the amounts are still considered recoverable.

ii) Liquidity Risk

The company objective is maintaining optimum level of liquidity to meet its cash and collateral requirement at all times. The Company relies on Borrowing and internal accruals to meet its need for fund. The current committed lines of credit are sufficient to meet its short to medium term expansion needs.

The table provides undiscounted cash flow towards non-derivative financial liabilities and net settled derivative financial liabilities into relevant maturity based on the remaining period at balance sheet date to contractual maturity date.

iii) Market Risk

Market risk is the risk or uncertainty arising from possible market price movements resulting in fluctuation of the fair value of future cash flows of a financial instrument. The major components of Market risks are foreign currency exchange risk and interest rate risk. Financial instruments affected by market risk include borrowings.

a) Foreign Currency Risk

The company does not have any significant transaction in foreign currency except foreign currency ECB loan .There are no outstanding Derivative contracts as on 31st March 2018 however the company have Unhedged foreign currency exposure as on 31st march ,2018 (read with note no. 48).

b) Interest rate and sensitivity

The company exposure in market relating to change in interest rate primarily arises from floating rate borrowing with banks and financial institutions. As at March 31, 2018, substantially all of the Company borrowings fall under the fixed interest rates (approved under resolution plan), hence there will be no interest rate risk. Considering the restructuring of borrowing, the carrying amount of said borrowing was considered to be fair value.

iv) Capital risk management

The Company''s objectives when managing capital is to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth. The Company sets the amount of capital required on the basis of annual business and long-term operating plans which include capital and other strategic investments. The funding requirements are met through a mixture of equity, internal fund generation and other non-current borrowings. The Company''s policy is to use current and non-current borrowings to meet anticipated funding requirements. The Company monitors capital on the basis of the gearing ratio which is net debt divided by total capital. Net debts are non-current and current debts as reduced by cash and cash equivalents.

The company also monitors capital using gearing ratio which is net debt divided by total capital. The gearing ratio is as follows:

5. Segment Reporting

The company''s operations consists of "Construction/Project Activities" and there are no other reportable segment under Ind AS-108 as identified by the

Chief Operating Officer of the company.

6 Disclosure pursuant to Regulation 34(3) read with Sch V A(2) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) regulations, 2015 are given in note no. 39.

7 As on March 31, 2018, the overdue financial obligations to banks/financial institutions (20 in nos.) (Nil) Were Rs, 135258.60 lakhs (Nil) of which were subsequently restructured as per the resolution plan approved by Hon''ble NCLT by its order dated 18th April 2018 as stated in Note no. 39

8 In accordance with the provisions of "Indian Accounting Standard (Ind AS) -36 - Impairment of Assets", the company has made an assessment of the recoverable amount of assets based on higher of the value in use considering its projected scale of operations, prevailing market conditions, future cash flows and future growth projections and estimated net selling price of the assets pertaining to its various Cash Generating Units and found recoverable amount of these assets to be higher as compared to carrying value of assets in its Financial Statements. Accordingly, management considers that there is no need for the provision on account of impairment of assets.

9 The company has a regular programme of physical verification for its inventory and fixed assets. Further, during the year physical verification of significant part of inventory and fixed assets has been carried out by an independent firm of professionals and technical consultant and no material discrepancy were found.

10 Previous year figures were regrouped and reclassified, wherever necessary. An amount of Rs,1,500 lakhs classified as loans and advances has been reclassified as Investments during the year ending March 31st 2018. As result of the reclassification previous year ending i.e. March 31st 2017 figures have also been reclassified. The resultant impact of the reclassification on (i) other equity Rs,(107.95) Lakhs, (ii) finance cost Rs,(627.55) Lakhs (iii) other income Rs,(519.59) Lakhs, (iv) other noncurrent assets Rs,(105.85) Lakhs, (v) other current assets Rs,(105.85) Lakhs, (vi) non-current financial assets-loan Rs,(1,180.36) Lakhs and (vi) non-current investments Rs, 1,500 Lakhs. The resultant net impact on statement of Profit Et Loss for the year ended 31st March 2017 is Rs,107.95 Lakhs.

11 These financial statements have been approved by Board of Directors of the Company in their meeting dated June 30, 2018 for issue to the shareholders for their adoption.

Note 1 to 55 are annexed to and from integral part of the Balance Sheet and Statement of Profit Et Loss.


Mar 31, 2016

1. The company has only one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share. The dividend proposed by the board of directors is subject to the approval of shareholders. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company, after distribution of all preferential amounts, in proportion of their shareholding.

2. The company has allotted 2, 07, 27,312 fully paid up equity shares of face value Rs.10/- each, in the ratio of one equity shares for every equity shares held, during the quarter ended 30th September 2015, pursuant to a bonus issue approved by the shareholders at the annual general meeting, held on 17th July 2015, by capitalization of capital redemption reserve & securities premium reserve. Consequently the earning per share has been adjusted for previous periods/year presented in accordance with Accounting Standard 20, Earning per share.

3. The details of shareholders holding more than 5% shares of the aggregate shares in the Company:

4. Working capital facilities in the form of cash credit facilities and working capital demand loans from consortium of banks are secured by:

i) Hypothecation of book debts, stock and other current assets of the company, both present and future, ranking pari passu with consortium banks.

ii) Hypothecation of all unencumbered fixed assets (excluding those present and future fixed assets under specific charge for loans against those specific assets) of the company, both present and future, ranking pari passu with consortium banks.

iii) Equitable mortgage of land & building at Bhadravati (Karnataka), land at dankuni (West Bengal), land at Rourkela (orissa), office space at Jasola (new delhi), office space at Kolkata (West Bengal) and personal guarantees of one promoter director of the company.

5. Short term secured borrowings from other party is secured by subservient charge on the current asset of the Company. Further, there is a collateral

security by way of pledge of 33,46,689 (PY 11,12,000) shares of the Company by Promoter Company MBL A Capital limited.

6. There are no Micro, Small and Medium Enterprises, to whom the company owes dues, and which are outstanding for more than 30 days as at 31st March 2016. There are no interests due or outstanding on the same.

7. Trade payables are subject to confirmation from certain parties.

8. These figures do not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund.

9. Includes creditors for expenses etc.

10. Provision for tax of Rs.13,642.36 lakhs (Previous year Rs.10,979.36 lakhs) is net of advance tax of Rs.10,202.76 lakhs (Previous year Rs.8,674.06 lakhs).

11 100% investment in equity shares of wholly owned subsidiary, AAP Infrastructure Limited, 30% investment in equity shares of wholly owned subsidiaries, MBL Highway Development Company Limited and MBL (MP) Toll Road Company Limited and 5, 49, 31,000 (Rs. 5, 10, 21,000) equity shares of partly owned subsidiary, Suratgarh Bikaner Toll Road Company Private Limited have been pledged with bankers against long term credit facilities availed by the respective subsidiary company.

12 Includes unclaimed share application and interest of Rs.0.46 lakhs (Previous year Rs.0.46 lakhs) and unclaimed dividend of Rs.1.71 lakhs (Previous year Rs.1.60 lakhs).

13 Includes fixed deposits pledged with banks as margin Rs.133.37 lakhs (Previous year Rs.527.65 lakhs).

14 Includes fixed deposits pledged with others as security deposit Rs.356.14 lakhs (Previous year Rs.289.81 lakhs).

15 Fixed deposits with banks include deposits of Rs.58.28 lakhs (Previous year Rs.495.80 lakhs) with maturity of more than 12 months.

(vii) The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

(viii) The actuarial liability of compensated absences (unfunded) of accumulated privileged leaves of the employees of the company is as under:

36 SEGMENT Reporting

The company''s operations consists "Construction/Project Activities" and there are no other reportable segment under AS-17 issued by "The Institute of Chartered Accountants of India".

17. DISCLOSURE pursuant TO Regulation 34(3) READ with SCH V A(2) OF SEBI (Listing obligation AND DISCLOSURE REQUIREMENTS)

Disclosure pursuant to Regulation 34(3) read with Sch V A (2) of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 are mentioned at Note No.32

18 DISCLOSURE OF RELATED parties / RELATED party TRANSACTIONS:

As per Accounting Standard (AS) - 18 of The Companies (Accounting Standards) Rules, 2006, the list of related parties where control exists and related parties with whom transactions have taken place and relationships are as under:

A. Related party disclosures

II Commitments

-Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for as on 31.3.2016 is Rs.2, 778.51 lakhs (Previous year Rs.122.21 lakhs). Advances paid on capital account are Rs.23.10 lakhs (Previous year Rs. Nil lakhs).

19. Raw materials, stores & spares consumed are 100% indigenous.

20. FINANCIAL AND DERIVATIVE INSTRUMENTS

i) ECB with currency swaps outstanding as at 31.03.2016 is Rs.199 lakhs (restated at the yearend rates), (long term Rs. Nil and current maturities Rs.199 lakhs).

ii) Unheeded ECB outstanding as at 31.03.2016 is Rs.11, 147.11 lakhs (restated at the yearend rates), (long term Rs.9, 804.01 lakhs and current maturities Rs.1, 343.10 lakhs).

- Previous year figures have been reclassified, regrouped, rearranged and recomputed to conform to this year''s classification, wherever considered necessary Figures in the financial statements have been rounded off in rupees lakhs up to two decimal places.


Mar 31, 2014

1.1 The company has only one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share. The dividend proposed by the board of directors is subject to the approval of shareholders, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company, after distribution of all preferential amounts, in proportion of their shareholding.

1.2 The details of shareholders holding more than 5% shares of the aggregate shares in the company:

2.1 Dividend proposed to be distributed to equity shareholders is Rs. 3.00 (Previous year Rs. 3.00) per equity share.

3.1 External commercial borrowings (ECB) availed from banks are secured by hypothecation of specific plants and equipments.

3.2 ECBs with currency swaps oustanding as at 31.03.2014 isRs.2642.43 lakhs (long termRs.882.97 lakhs and current maturities Rs.1759.46 lakhs).

3.3 Unhedged ECB outstanding as at 31.03.2014 isRs.5889.78 lakhs (restated at the year end rates), (long termRs.5288.78 lakhs and current maturitiesRs. 601.00 lakhs).

3.4 Equipment / Vehicle finance availed from banks and others are secured by hypothecation of the respective assets; comprising construction equipments and vehicles acquired out of the said loans and personal guarantees of promoter director/s of the company.

4.1 All secured working capital facilities in the form of cash credit facilities and working capital demand loans from consortium of banks are secured by:

i) Hypothecation of book debts and other current assets of the company, both present and future, ranking pari passu with consortium banks.

ii) Hypothecation of all unencumbered fixed assets (excluding those present and future fixed assets under specific charge for loans against those specific assets) of the company both present and future ranking pari passu with consortium banks.

iii) Equitable mortgage of land & building at Bhadravati (Karnataka), land at Dankuni (West Bengal), land at Rourkela

(Orissa), office space at Jasola (New Delhi), office space at Kolkata (West Bengal) and personal guarantees of promoter director/s of the company.

5.1 There are no Micro, Small and Medium Enterprises, to whom the company owes dues, and which are outstanding for more than 30 days as at 31st March, 2014. This information as required to be disclosed under Micro, Small, Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

5.2 Trade payables are subject to confirmation from certain parties.

10.1 These figures do not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund.

6.1 Provision for tax of 710831.36 lakhs (Previous year 78721.36 lakhs) is net of advance tax of 79952.27 lakhs (Previous year 78528.98 lakhs).

7.1 100% investment in equity shares of wholly owned subsidiary, AAP Infrastructure Limited, 30% investment in equity shares of wholly owned subsidiaries, MBL Highway Development Company Limited and MBL (MP) Toll Road Company Limited and 30% investment in equity shares of partly owned subsidiary, Suratgarh Bikaner Toll Road Company Private Limited have been pledged with bankers against long term credit facilities availed by the respective subsidiary company.

7.2 Trade receivables are subject to confirmation from certain parties.

8.1 Includes unclaimed share application and interest ofRs.0.46 lakhs (Previous yearRs.0.46 lakhs) and unclaimed dividend of 71.45 lakhs (Previous yearRs. 0.88 lakhs).

8.2 Includes fixed deposits pledged with banks as margin Rs. 471.26 lakhs (Previous yearRs. 532.42 lakhs).

8.3 Includes fixed deposits pledged with others as security deposit Rs. 461.52 lakhs (Previous year Rs. 549.66 lakhs).

8.4 Fixed deposits with banks include deposits of Rs.596.45 lakhs (Previous year Rs.793.18 lakhs) with maturity of more than 12 months.

9.1 Advances against materials and services are subject to confirmation from certain parties.

(i) The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

10. Segment Reporting

The company''s operations consist of "Construction/Project Activities" and there are no other reportable segment under AS-17 issued by "The Institute of Chartered Accountants of India".

11. Disclosure pursuant to clause 32 of Listing Agreement

There are no transactions that are required to be disclosed under clause 32 of the listing agreement.

12.Disclosure of related parties / related party transactions:

As per Accounting Standard (AS) - 18 of The Companies (Accounting Standards) Rules, 2006, the list of related parties where control exists and related parties with whom transactions have taken place and relationships are as under:

A. Related party disclosures

Relationship Name of the related party

(i) Subsidiary Companies

a) AAP Infrastructure Limited

b) MBL Highway Development Company Limited

c) MBL (MP) Toll Road Company Limited

d) MBL Projects Limited

e) MBL (MP) Road Nirman Company Limited

f) MBL (Haldia) Toll Road Company Limited

g) Suratgarh Bikaner Toll Road Company Private Limited

(ii) Joint Ventures

a) TCIL - MBL (JV)

b) MBL - Atlas (JV)

c) MBL - Calcutta Industrial Supply Corporation (JV)

d) MBL - Lakheshwari Builders Pvt.Ltd. (JV)

e) MBL - Supreme (JV)

f) Supreme - MBL (JV)

(iii) Associates

a) Orissa Steel Expressway (P) Ltd. - a Joint Venture SPV Company for BOT Project

b) Narayan Infracon Private Limited

(iv) Key Management Personnel

a) Mr. Anjanee Kumar Lakhotia (Chairman)

b) Mr. Maruti Maheshwari (Executive Director)

c) Mr. Aditya Maheshwari (Vice President - Operations) (Upto 15th October''2013

d) Mr. Anuj Maheshwari (Vice President - Operations) (Upto 7th October''2013)

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

a) Prabhu International Vyapar Pvt. Ltd.

b) MBL A Capital Limited

c) MSP Infrastructures Ltd.

d) Narayan Infracon Pvt. Ltd.

e) Sahaj Promoters Pvt. Ltd.

f) Mahamaya Trade-link Pvt. Ltd. (subsidiary of MBL A Capital Limited)

13.Previous year figures have been reclassified, regrouped, rearranged and recomputed to conform to this year''s classification, wherever considered necessary.

14.Figures in the financial statements have been rounded off in rupees lakhs upto two decimal places.


Mar 31, 2013

1. Segment Reporting

The Company has single business segment namely Infrastructure Activity''. Therefore, the Company''s business does not fall under different business segments as defined by AS-17 issued by "The Institute of Chartered Accountants of India". The Company at present primarily operates in India and therefore the analysis of geographical segments is not applicable to the Company.

2. Disclosure pursuant to Clause 32 of Listing Agreement

There are no transactions that are required to be disclosed under Clause 32 of the Listing Agreement.

3. Contingent Liabilities and Commitments

Rs. in Lakhs

As at As at

I Contingent Liabilities 31.03.2013 31.03.2012

(i) Claims against the Company / disputed liabilities not acknowledged as debts

(to the extent ascertained) 35.00 648.22

(ii) Corporate guarantee given on behalf of a wholly owned subsidiary company AAP Infrastructure Limited 4,160.77 4,503.77

(iii) Outstanding bank guarantees 23,961.12 21,587.46

(iv) Outstanding letter of credit 289.32

(v) Tax matters in disputed under appeal 1,387.10

Company has preferred appeal against the orders of Deputy Commissioner of Income Tax for the Assessment Years from 2005-06 to 2011 -12. Based on the expert opinions obtained, it has been advised to the Company that no provision is required against the same.

II Commitments

Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for as on 31.3.2013 is Rs. 1.44 Lakhs (Previous year Rs. 745.00 Lakhs).Advances paid on capital account is Rs. 6.34 Lakhs (Previous year Rs. 125.90 Lakhs).

4. Raw materials, stores & spares consumed are 100% indigenous.

5. Previous year figures have been reclassified, regrouped, rearranged and recomputed to conform to this year''s classification, wherever considered necessary.

6. Figures in the financial statements have been rounded off in rupees lakhs upto two decimal places.


Mar 31, 2012

1.1 The Company has only one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share. The dividend proposed by the board of directors is subject to the approval of shareholders, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.

2.1 Dividend proposed to be distributed to equity shareholders is Rs. 1.50 (Previous year Rs. 2.50) per equity share.

3.1 External commercial borrowings (ECB) availed from banks are secured by hypothecation of certain plant and equipments. Such ECBs are fully hedged.

3.2 Equipment / Vehicle finance availed from banks and others are secured by hypothecation of the respective assets; comprising construction equipments and vehicles acquired out of the said loans and personal guarantee of promoter directors.

4.1 Working capital facilities in the form of cash credit facilities and working capital demand loans from consortium of banks are secured by:

i) Hypothecation of book debts and other current assets of the Company, both present and future, ranking pari passu with consortium banks.

ii) Hypothecation of all unencumbered fixed assets (excluding those present and future fixed assets under specific charge for loans against those specific assets) of the Company, both present and future, ranking pari passu with consortium banks.

iii) Equitable mortgage of land & building at Bhadravati (Karnataka), land at Dankuni (West Bengal), land at Rourkela (Orissa), office space at Jasola (New Delhi), office space at Kolkata (West Bengal) and personal guarantees of promoter directors of the Company.

5.1 There are no Micro, Small and Medium Enterprises, to whom the company owes dues, and which are outstanding for more than 30 days as at 31st March, 2012. This information as required to be disclosed under Micro, Small, Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

6.1 These figures do not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund.

6.2 Other payables include statutory dues, security deposits, overdrawn bank balance (due to reconciliation), advance from customers etc.

7.1 Provision for tax of Rs. 7221.35 lacs (Previous year Rs. 4461.36 lacs) is net of advance tax of Rs. 3808.41 lacs (Previous year Rs. 3153.69 lacs).

8.1 100% investment in equity shares of wholly owned subsidiary, AAP Infrastructure Limited and 30% investment in equity shares of wholly owned subsidiary, MBL Highway Development Company Limited, have been pledged with bankers against long term credit facilities availed by the respective subsidiary company.

9.1 Includes unclaimed share application and interest of Rs. 0.46 lacs (Previous year Rs. 0.47 lacs) and unclaimed dividend of Rs. 0.57 lacs (Previous year Rs. 0.21 lacs).

9.2 Includes fixed deposits pledged with banks as margin Rs. 788.64 lacs (Previous year Rs. 1162.86 lacs).

9.3 Includes fixed deposits pledged with others as security deposit Rs. 716.54 lacs (Previous year Rs. 442.68 lacs).

9.4 Fixed deposits with banks include deposits of Rs. 578.67 lacs (Previous year Rs. 463.11 lacs) with maturity of more than 12 months.

(vii) The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

10. Segment Reporting

The Company has single business segment namely 'Infrastructure Activity'. Therefore, the Company's business does not fall under different business segments as defined by AS-17 issued by "The Institute of Chartered Accountants of India". The Company at present primarily operates in India and therefore the analysis of geographical segments is not applicable to the Company.

11. Contingent Liabilities and Commitments Rs. in Lacs

I. Contingent Liabilities 31.03.2012 31.03.2011

(i) Claims against the Company / disputed liabilities not acknowledged as debts (to the extent ascertained) 648.22 648.22

(ii) Corporate guarantee given on behalf of a wholly owned subsidiary company AAP Infrastructure Limited 5,000.00 5,000.00

(iii) Outstanding bank guarantees 26,244.51 21,021.03

(iv) Outstanding letter of credit - 99.43

II. Commitments

Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for as on 31.3.2012 is Rs. 745.00 lacs (Previous year Rs. 90.00 lacs).

Advances paid on capital account is Rs. 125.90 lacs (Previous year Rs. Nil).

12. Raw materials, stores & spares consumed are 100% indigenous.

13. The financial statements for the year ended 31st March, 2011 had been prepared as per the then applicable, pre- revised Schedule VI to the Companies Act, 1956. Consequent to the notification under the Companies Act, 1956, the financial statements for the year ended 31st March, 2012 are prepared under revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification.

14. Figures in the financial statements have been rounded off in rupees lacs upto two decimal places.


Mar 31, 2010

1. Initial Public Offer

During the current year, the Company has completed an Initial Public Offer (IPO) of 57,00,000 Equity Shares of Rs.10/- each at a cash price of Rs. 180/- per Equity Share. The premium of Rs.170/- per Equity Share amounting to Rs. 9690 lacs has been credited to Securities Premium

Account. The Share Issue expenses incurred by the Company amounting to Rs. 963.33 lacs have been debited against Securities Premium Account.

The position of IPO Proceeds and utilisation thereof vis-a-vis the "Objects of Issue" as stated in Prospectus dated 23rd December, 2009 upto March, 31, 2010 is as follows:

Funds raised: Rs. 10260 lacs. Utilisation as objects of the Issue- Rs. 8792 lacs. Balance Rs.1460 lacs is in cash credit/current bank accounts of the Company.

b. Investments in equity shares of Wholly Owned Subsidiary AAP Infrastructure Limited have been pledged with Bankers against facilities availed by them.

Notes:

i) The Company has disclosed Business Segment as the primary segment, Segments have been indentified taking into account the business activity, organisational structure and internal reporting system.The Companys operations predominantly relate to Infrastructure, Construction and Maintenance.

ii) Segment Revenue, Segment Results, Segment Assets and Segment Liabilities include the respective amounts indentifiable to each of the segments as also amounts allocated on a resonable basis.

iii) There are no reportable geographical segments.

f. Disclosure of related parties / related party transactions:

As per Accounting Standard (AS-18) of The Companies (Accounting Standards) Rules, 2006, the Companys related party disclosure is as under:

A. List of Related Parties:

i. Name of the parties where control exists: AAP Infrastructure Ltd., a subsidiary of the Company

ii. Key Management Personnel: a) Mr. Ram Gopal Maheshwari

b) Mr. Anjanee Kumar Lakhotia

c) Mr. Maruti Maheshwari

d) Mr. Aditya Maheshwari

e) Mr. Anuj Maheshwari

iii. Joint Ventures: a) MBL - Telecomunications Consultants India Ltd.(JV)

b) MBL-Supreme (JV)

c) MBL - Calcutta Industrial Supply Corporation (JV)

d) MBL- Lakheshwari Builders Pvt.Ltd. (JV)

iv. Director having significant influence: a) Prabhu International, Proprietory Concern of a Director

b) Prabhu International Vyapaar Pvt. Ltd.

c) SMH Capital Limited.

d) MSP Infrastructures Ltd.

e) Sahaj Promoters Pvt. Ltd.

B. Names of the related parties with whom transactions were carried out during the year and description of relationship:

a. Subsidiary Company: AAP Infrastructure Ltd.

b. Key Management Personnel: a) Mr. Ram Gopal Maheshwari

b) Mr. Anjanee Kumar Lakhotia

c) Mr. Maruti Maheshwari

d) Mr. Aditya Maheshwari

e) Mr. Anuj Maheshwari

h. There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 30 days as at 31st March, 2010. This information as required to be disclosed under Micro, Small, Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

i. Interest income on Fixed Deposits of Rs. 228.96 lacs (Tax Deducted at Source Rs. 30.66 lacs) (previous year Rs.180.11 lacs (Tax Deducted at Source Rs.55.51 lacs) is adjusted against Interest and Finance Charges.

j. Contingent Liabilities (Rs. In Lacs) 31.03.2010 31.03.2010 i) Claims against the Company/ disputed Liabilities not acknowledged as Debts (to the extent ascertained) 1013.93 863.93

ii) Corporate Guarantees given on behalf of Subsidiary Companies 2200.00 2200.00

iii) Disputed Income Tax - 343.33

Income Tax Department has preferred appeal against the orders of Commissioner of

Income Tax (Appeals) for the Assessment Year 2004-05 and 2005-06 which were settled in favour of the Company. The amount of the contingent liability is indeterminate.

k. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 120.21 lacs (Previous year Rs. 25.76 lacs)

l. Oustanding Bank Gurantees as on 31st March 2010 amounts to Rs. 18959.82 lacs (Previous year Rs. 13570.89 lacs).

m. Equipment/ Vehicle Finance and External Commercial Borrowings availed from banks and others are secured by hypothecation of specific assets; comprising plant and machinery, construction equipment and vehicles acquired out of the said loans and personal guarantee of certain Directors.

n. Working Captal facilities: Cash Credit facilities and Working Capital Demand Loans from consortium of banks are secured by:

i) Hypothecation against first charge on book 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 certain properties (Land & Buildings).

iv) Personal guarantees of certain Directors.

p. Additional Information under Part II of Schedule VI to the Companies Act, 1956

b) Construction Material

The Company is mainly engaged in the business of infrastructure construction. Keeping in view of the job difficulties in different sites and projects, no quantitative detail of stock, production, turnover and consumption of raw materials are furnished.

q. i) Expenditure in Foreign Exchange - Rs. 21.10 Lacs. (Previous Year-72.30 Lacs)

ii) Earning in Foreign Exchange - Rs. Nil (Previous Year - Nil)

r. Previous years figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

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