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Notes to Accounts of NCC Ltd.

Mar 31, 2015

1 Corporate information:

NCC Limited, formerly Nagarjuna Construction Company Limited ("NCCL", / "the Company") was established as a Partnership firm in 1978, which was subsequently converted into a Limited Company in 1990. The shares of the Company were listed on the stock exchanges in India during 1992 pursuant to the Initial Public Offer of equity shares. The Company is engaged in the infrastructure sector, primarily in the construction of industrial and commercial buildings, roads, bridges and flyovers, water supply and environment projects, housing, power transmission lines, irrigation and hydrothermal power projects, real estate development, etc.

2 Rights of the share holders a) The equity shares of the company having par value of Rs. 2 per share, rank pari passu in all respects including voting rights (except GDRs) and entitlement to dividend. Repayment of the capital in the event of winding up of the Company will inter alia be subject to the provisions of Companies Act 2013, the Articles of Association of the Company and as may be determined by the Company in General Meeting prior to such winding up.

b) 18,700 (31.03.2014: 39,700) equity shares represent the shares underlying outstanding GDRs. Each GDR represent one underlying equity share having par value of Rs. 2. The GDRs, rank pari passu in all respects with the equity shares issued by the Company, except in respect of voting rights.

3 Pursuant to the approval of the shareholders during their meeting held on May 22, 2014, the Authorised equity share capital has been increased from Rs. 600 million comprising of 300,000,000 shares of Rs. 2 each to Rs.1,500 million comprising of 750,000,000 shares of Rs. 2 each.

4 During the current year, the Company, had offerred 299,347,778 equity shares of Rs. 2 each on rights basis to all the shareholders whose names had appeared in the Register of Members as on record date fixed for the Rights issue i.e September 19, 2014 at a premium of Rs. 18. The rights issue was fully subscribed and 299,347,778 equity shares have been allotted on October 30, 2014.

5 11.95% Redeemable Non convertible Debentures

(i) Debentures numbering to 1,000 having a face value of Rs. 1 million each aggregating to Rs. 1,000 million privately placed with Life Insurance Corporation of India on February 4, 2009. These are secured by first charge created in favour of IDBI Trusteeship Services Limited, trustees to the debenture holders:

* by way of hypothecation of the Company's movable properties specified in the Schedule-2 of Memorandum of Hypothecation dated April 25, 2009;

* first charge by way of equitable mortgage by deposit of title deeds of the Company's immovable property situated at Gujarat as specified in first schedule to the Debenture Trust Deed dated April 23, 2009;

* equitable mortgage by deposit of title deeds of Company's immovable properties situated at Hyderabad, Bangalore, Mumbai and New Delhi as specified in Schedule-A of Declaration and Undertaking dated April 25, 2009.

(ii) These debentures are to be redeemed at par in 3 installments in the ratio of 25:25:50 commencing at the end of 3rd year from the date of allotment i.e., February 4, 2012 onwards.

(iii) The debenture holders have consented for deferment of due date for final installment of Rs. 500.00 million from February 04, 2014 to September 30, 2014 with an increase in rate of interest by 25 basis points effective from February 04, 2014.

(iv) During the current year the final installment has been repaid.

6 10.50% Redeemable Non convertible Debentures

(i) Debentures numbering to 1,000 having a face value of Rs. 1 million each comprising of ten (10) Detachable and Separately Transferable, Redeemable Principal Parts ("STRPPS") aggregating to Rs. 1,000 million privately placed during 2009-10 with various banks and financial institutions. These are secured by first charge created in favour of IDBI Trusteeship Services Limited, trustees to the debenture holders, by way of equitable mortgage of the title deeds in respect of the company's immovable property situated at Kadi Taluka, Mehasana district, Gujarat as specified in the first schedule to the Debenture Trust Deed dated September 15, 2009 and by way of equitable mortgage by deposit of title deeds of the immovable properties of the Company and its subsidiary and its step-down subsidiaries, situated at Hyderabad as specified in Schedule-A to I of Declaration and Undertaking dated October 12, 2009.

(ii) These debentures are to be redeemed at par in 3 installments in the ratio of 30:30:40 commencing at the end of 3rd year from the date of allotment i.e., July 24, 2012 onwards.

(iii) During the current year these debentures have been fully redeemed.

7 9.50 % Redeemable Non-Convertible Debentures

(i) Debentures numbering to 500 having face value of Rs. 4 million each comprising of four (4) Detachable and Separately Transferable Redeemable principal parts ("STRPPS") of face value of Rs. 1 million each aggregating to Rs. 2,000 million privately placed with ICICI Bank Limited.

(ii) These Debentures are to be redeemed at par in four equated installments commencing at the end of second year from the date of allotment i.e. August 11, 2012 onwards.

8 Term Loans from Banks

(i) Term loans from Andhra Bank, State Bank of Hyderabad, State Bank of India, Syndicate Bank, Indian Overseas Bank and

Standard Chartered Bank aggregating Rs. 2,572.00 million are secured / to be secured, in terms of the sanction letter, by:

* first parri-passu charge on the properties owned by NCC Limited, NCC Urban Infrastructure Limited, Dhatri Developers and Properties Private Limited and the subsidiaries of NCC Urban Infrastructure Limited

* pledge of shares of NCC Urban Infrastructure Limited held by NCC Limited.

* personal guarantees of Sri AAV Ranga Raju, Sri AGK Raju, Sri ASN Raju, Sri AVN Raju, Sri AKHS Rama Raju, Sri NR Alluri and Sri JV Ranga Raju.

These loans are repayable in 8 quarterly installments (with a moratorium of 24 months) commencing from September 30, 2016 to June 30,2018 and carry interest rate of 13.50% per annum with monthly rests.

(ii) HDFC Bank and Indus Ind Bank Ltd

* Secured by hypothecation of specific assets purchased out of the loan, comprising Plant and Machinery

(iii) Axis Bank Limited and Kotak Mahindra Bank

* Secured by hypothecation of specific assets purchased out of the loan

9 Working Capital Demand Loans and Cash Credit facilities availed from consortium of banks are secured by:

a) Hypothecation against first charge on stocks, book debts, shares of NCC Infrastracture Holdings Limited (Refer note 14.3) and other current assets of the Company, (excluding specific projects) both present and future, ranking parri passu amongst consortium banks.

b) Hypothecation against first charge on unencumbered fixed assets of the Project Division and Light Engineering Division(excluding Land & Buildings) of the Company rank parri passu amongst consortium banks.

c) Equitable mortgage of three properties (Land & Buildings).

d) The Company availed overdraft facility from ICICI Bank with validity upto August 5, 2015 and is secured, in terms of the sanction letter,by:

* mortagage over immovable fixed assets;

* pledge of shares of NCC Urban Infrastructure Limited held by NCC Limited;

* personal guarantees of Sri AAV Ranga Raju, Sri AGK Raju, Sri ASN Raju, Sri AVN Raju, Sri AKHS Rama Raju, Sri NR Alluri and Sri JV Ranga Raju;

This facility carries an interest rate of 13.50% per annum.

10 Secured - term loans from Banks:

a) Collateral security / First charge on immovable property and second charge on current assets of the company

b) The company availed short term loans from various banks having a maturity of less than one year and carry interest rate ranging between 12.50% to 14.00 % per annum.

c) During the current year these term loans from banks have been fully repaid.

11 Unsecured - term loans from Banks:

a) Includes an amount of Rs. 948.07 million (31.03.2014: Rs. 948.07 million) availed from Standard Chartered Bank under retention money discounting facility.

b) The company availed short term loans from various banks having a maturity of less than one year and carry interest rate ranging between 12.50% to 13.05% per annum.

c) During the current year these term loans from banks have been fully repaid.

12 Unsecured - term loans from Others: having a maturity of less than one year and carry interest rate of 12.00 % per annum and these loans have been fully repaid.

13 Contingent Liabilities and Commitments (Rs. in million)

As at As at March 31, 2015 March 31, 2014 (i) Contingent Liability

(a) Matters under litigation

Claims against the company not acknowledged as debt

- Disputed sales tax / entry tax liability for which the Company preferred appeal 1,190.79 499.49

- Disputed central excise duty relating to clearance of goods of LED division in favour of

Developers of SEZ, for which the Company has filed an appeal to CESTAT, Bangalore 5.73 5.73

- Disputed service tax liability for which the Company preferred appeal 1,953.57 3,249.89

- Disputed Income tax liability for which the Company preferred appeal 120.50 179.81

(Net off Tax Deduction at Source certificates and interest thereon submitted to the Tax Authorities)

- Others 12.53 2.86

(b) Impact of pending legal suits in various courts:

- The Company is a party to several legal suits on construction contract terms related disputes, pending before various courts in India as well as arbitration proceedings. It is not possible to make a fair assessment of the likely financial impact of these pending disputes / litigations

until the cases are decided by the appropriate authorities.

- Joint and several liability in Amount not Amount not respect of joint venture projects ascertainable ascertainable and liquidated damages in respect of delays in completion of projects

- Levy of labour cess @ 1% (w.e.f. July 2007) on the construction contracts executed by the Company in the State of Andhra Pradesh contested before the Hon'ble High Court of Andhra Pradesh

(c) Guarantees

Counter Guarantees and Letter of Credits given to the Bankers * 1,572.32 1,558.35

Performance guarantees, given on behalf of Subsidiaries * - 362.50

Corporate Guarantees given to Banks for financial assistance extended to Subsidiaries. 16,116.10 11,566.06

*Excludes Guarantees given against Company's liabilities, in terms of Guidance Note issued by the Institute of Chartered Accountants of India.

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for [net of advances Rs. 2.78 million (31.03.2014: Rs. 1.01 million)] Tangible 4.48 8.62

(b) Other commitments

Commitment towards investment in companies 783.43 2,609.11

[net of advances Rs. 27,283.80 million (31.03.2014: Rs. 24,480.11 million)]

Future Export commitments on account of import of machinery and equipments at 517.90 517.90 concessional rate of duty under EPCG scheme

14 Pursuant to Schedule II of the Companies Act, 2013, with effect from April 1, 2014, the Company has adopted revised useful life of the assets aligning the same with those specified in Schedule II. The Company has fully depreciated the carrying value of assets, net of residual value, where the remaining useful life of the asset was determined to be Nil as on April 1, 2014 and has adjusted an amount of Rs. 80.40 million (net of deferred tax of Rs. 35.71 million) from the opening surplus in the Statement of Profit and Loss under Reserves and Surplus. Consequent to the change in the useful life of the other assets, the impact on the depreciation expense for the current year is higher by Rs. 187.45 million.

15 The Company is awaiting Central Government approval with regard to excess managerial remuneration paid / payable in the previous year.

16 Advance from Customers include an amount of Rs. 1,000.00 million from Gayatri Energy Ventures Private Limited (GEVPL), being consideration of sale of remaining 88,495,576 of equity shares of NCC Infrastracture Holdings Limited, pursuant to agreement dated February 28, 2014, as amended.

17 During the previous year the Company had received assessment orders for Income Tax for the financial years 2000-01, 2001-02 and 2003-04 to 2006-07 and refund orders aggregating to Rs. 652.26 million has been received by the Company. Accordingly, provision of Rs. 362.38 million towards prior years has been reversed, Rs. 112.81 million has been recognised as Interest on income tax refunds and Rs. 176.12 million has been adjusted towards Advance Income Tax.

18 Expenses incurred on Corporate Social Responsibility (CSR) programs under Section 135 of the Companies Act, 2013 are charged to the Statement of Profit and Loss under 'Other Expenses' (Note 29) - Rs. 7.98 million and an advance of Rs. 0.60 million has been paid for CSR related activities.

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


Mar 31, 2014

1 Contingent Liabilities and Commitments As at March As at March 31st 2014 31st 2013 (i) Contingent Liability

(a) Claims against the Company not acknowledged as debt

- Disputed sales tax / entry tax liability for which the Company preferred appeal 499.49 1,144.37

- Disputed central excise duty relating to clearance of goods of LED division in favour of 5.73 5.73 Developeh of SEZ, for which the Company has filed an appeal to CESTAT, Bangalore

- Disputed service tax liability for which the Company preferred appeal 3,249.89 1,116.74

- Disputed Income tax liability for which the 179.81 98.11 Company preferred appeal (Net off Tax Deduction at Source certificates and interest thereon submitted to the Tax Authorities)

- Disputed sole arbitrator award in case of - 30.00 counter claim by Bhartiya Reserve Bank Note Mudran Private Limited, against which the Company has filed appeal before City Civil Court, Bangalore

- Otheh 2.86 236.76

- Joint and several liability in respect of Amount not Amount not joint venture projects and liquidated damages in respect of delays in completion of projects ascertainable ascertainable

- Levy of labour cess @ 1% (w.e.f. July 200) Amount not Amount not on the construction contracts executed by

the Company in the State of Andhra Pradesh ascerta ascerta contested before the hon''ble high Court of inable inable Andhra Pradesh

(b) Guarantees

Counter Guarantees and Letter of Credits given to the Bankeh * 1,558.35 1,429.98

Performance guarantees, given on behalf of 362.50 465.32 Subsidiaries *

Corporate Guarantees given to Banks for financial assistance extended to Subsidiaries. 11,566.06 13,655.55

* Excludes Guarantees given against Company''s liabilities, in terms of Guidance Note on Revised Schedule VI, issued by the Institute of Chartered Accountants of India. (ii) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for [net of advances Rs1.01 million (31.03.2013:h1.01 million)] Tangible 8.62 61.97

(b) Other commitments

Commitment towards investment in companies 2,609.11 4,417.23 [net of advances Rs24,480.11 million (31.03.2013:Rs21,421.31 million)]

Future Export commitments on account of import of machinery and equipments at 517.90 517.90

Concessional rate of duty under EPCG scheme

2 Related Party Transactions

i) Following is the list of related parties and relationships:

S.No Particulah

A) Subsidiaries

1 NCC Infrastructure holdings Limited

2 NCC Urban Infrastructure Limited

3 NCC Vizag Urban Infrastructure Limited

4 Nagarjuna Construction Co.Ltd and Partneh LLC

5 OB Infrastructure Limited

6 NCC Infrastructure holdings Mauritius Pte. Limited

7 Nagarjuna Construction Company International LLC

8 Nagarjuna Contracting Co.LLC

9 Patnitop Ropeway and Resorts Limited

10 Western UP Tollway Limited

11 Vaidehi Avenues Limited

12 NCC International Convention Centre Limited

13 NCC Oil & Gas Limited

14 Nagarjuna Construction Company (Kenya) Limited

15 Naftagaz Engineering Private Limited

16 NCC Power Projects (Sompeta) Private Limited*

17 Aster Rail Private Limited

B) Step-Down Subsidiaries

18 Liquidity Limited

19 Dhatri Developeh & Projects Private Limited

20 Sushanti Avenues Private Limited

21 Sushruta Real Estates Private Limited

22 PRG Estates Private Limited

23 Thrilekya Real Estates Private Limited

24 Varma Infrastructure Private Limited

25 Nandyala Real Estates Private Limited

26 Kedarnath Real Estates Private Limited

27 AKhS homes Private Limited

28 JIC homes Private Limited

29 Sushanthi housing Private Limited

30 CSVS Property Developeh Private Limited

31 Vera Avenues Private Limited

32 Sri Raga Nivas Property Developeh Private Limited

33 VSN Property Developeh Private Limited

34 M A Property Developeh Private Limited

35 Vara Infrastructure Private Limited

36 Sri Raga Nivas Ventures Private Limited

37 Mallelavanam Property Developeh Private Limited

38 Sradha Real Estates Private Limited

39 Siripada homes Private Limited

40 NJC Avenues Private Limited

41 NCC Urban Lanka (Private) Limited

42 NCC WLL

43 Al Mubarakia Contracting Company LLC

44 NCCA International Kuwait General Contracts Company LLC

45 Samashti Gas Energy Limited

46 NCC Infra Limited

47 NCC Urban homes Pvt Ltd

48 NCC Urban Ventures Pvt. Ltd

49 NCC Urban Meadows Pvt Ltd

50 NCC Urban Villas Pvt Ltd

51 Nagarjuna Suites Pvt Ltd

C) Joint Ventures

52 Brindavan Infrastructure Company Limited

53 Bangalore Elevated Tollway Limited

54 Pondicherry Tindivanam Tollway Limited

55 Varapradha Real Estates Private Limited

56 NCC - himachal

57 NCC - NEC - Maytas

58 NCC - VEE

S.No Particulah

59 Premco - NCC

60 SDB-NCC-NEC

61 NCC-PNC

62 NCC - SJRIPL

63 NCC - MSKEL

D) Associates

64 Paschal Form Work (I) Private Limited

65 Nagarjuna Facilities Management Services LLC

66 himalayan Green Energy Private Limited

67 Jubilee hills Landmark Projects Private Limited

68 Tellapur Technocity (Mauritius)

69 Tellapur Technocity Private Limited

70 Apollonius Coal and Energy Pte.Ltd.

71 NCC Power Projects Limited

E) Key Management Pehonnel

72 Sri AAV Ranga Raju

73 Sri ASN Raju

74 Sri AGK Raju

75 Sri AVN Raju

76 Sri NR Alluri

77 Sri AKhS Ramaraju

78 Sri JV Ranga Raju

F) Relatives of Key Management Pehonnel

79 Dr AVS Raju

80 Smt. A.Bharathi

81 Smt.B.Kausalya

82 Smt.A.Satyanarayanamma

83 Smt.J.Sridevi

84 Smt. Sowjanya

85 Smt. A.Arundathi

86 Sri. A. Srinivasa Rama Raju

87 Smt. A.Swetha

88 Smt.A. Sridevi

89 Sri. J.K. Chaitanya Varma

90 Smt. A. Subhadra Jyothirmayi

91 Smt. A.Shyama

92 Smt. A.Suguna

93 Sri. A. hahha Varma

94 Smt. A. Neelavathi Devi

G) Enterprises owned or significantly influenced by key management pehonnel or their relatives

95 NCC Blue Water Products Limited

96 Swetha Estates

97 NCC Finance Limited

98 Sirisha Memorial Charitable Trust

99 Shyamala Agro Farms Private Limited

100 Ranga Agri Impex Private Limited

101 NCC Foundation

102 Sirisha Projects Private Limited

103 Ruthvik Estates Private Limited

104 Narasimha Developeh Private Limited

105 Mihika Agro Farms Private Limited

106 Lalit Agro Farms Private Limited

107 Bhuvanesh Realtoh Private Limited

108 Arnesh Ventures Private Limited

109 Suguna Estates Private Limited

110 AVSR holdings Private Limited

3 The Company''s interest in Jointly Controlled Entities as on March 31,2014 and its proportionate share in the Assets, Liabilities, Income and Expenditure of the Jointly Controlled Entities as on March 31, 2014 are given below:

4 Segment Reporting

The Company''s operations predominantly consist of construction / project activities. hence there are no reportable segments under Accounting Standard – 17. During the year under report, substantial part of the Company''s business has been carried out in India. The conditions prevailing in India being uniform, no separate geographical disclosures are considered necessary. The Company''s operations outside India do not qualify as reportable segments as the operations are not material.

* The Company has no dilutive instruments during the year ended Mach 31, 2014. As such Diluted Earnings per share equals to Basic Earnings per share

5 Leases

(i) Rental expenses of Rs.374.34 million (31.03.2013: Rs.400.72 million) has been charged to Statement of Profit and Loss in respect of cancellable operating lease.

(ii) The Company has entered into Operating Lease arrangement for certain equipments. The lease is non-cancellable for a period of 5 yearfrom March 28, 2013 to March 27, 2018.

(iii) Deductions / Adjustments to include certain assets sold and taken on operating lease by the company during the previous year aggregating to Rs.0.15 million. The resultant profit of Rs.0.29 million on such sale has been recognized in Statement of Profit and Loss. The applicable lease rents, puhuant to the arrangement has been charged to Statement of Profit and Loss.

6 Remittance in foreign currencies for dividend

The company has not remitted any amount in foreign currencies on account of dividends. The particulah of dividend paid in Indian rupees to non resident shareholdeh during the year ended March 31, 2014 are as under:

7 Derivative Instruments

(i) The following derivative positions are open as at March 31, 2014. These transactions have been undertaken to act as econominc hedges for the Company''s exposures to various risks in foreign exchange markets and may / may not qualify or be designated as hedging instruments. Cross currency Swap Contracts (being derivative instruments), which are not intended for trading or speculative purposes but for the hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables.

8 The Company sold 161,732,648 equity shares of h10 each of NCC Infrastracture holdings Limited (NCCIhL) to Gayatri Energy Ventures Private Limited (GEVPL), puhuant to the agreement dated February 26, 2014 at a consideration of Rs.1,827.58 million to GEVPL. Additionally, the Company has received an advance of Rs.1,000.00 million, being the consideration of sale of remaining 88,495,576 of equity shares, puhuant to the agreement dated February 28, 2014.

9 During the current year the Company has received assessment ordeh for Income Tax for the financial yeah 2000-01, 2001-02 and 2003-04 to 2006-07 and refund ordeh aggregating to Rs.652.26 million has been received by the Company. Accordingly, provision of Rs.362.38 million towards prior year has been revehed, Rs.112.81 has been recognised as Interest on income tax refunds and Rs.176.12 million has been adjusted towards Advance Income Tax.

10 The Shareholdeh of the Company approved the remuneration paid / payable to its Directoh. Owing to inadequate profits for the current year, as computed under Section 349 of Companies Act, 1956, the managerial remuneration paid / payable exceeded the limits specified under Section 198 read with Section 309 of the Companies Act, 1956 by Rs.54.43 million. The Company is in the process of obtaining the requisite approval from the Shareholdeh and the Central Government.

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


Mar 31, 2013

1.1 Defined contribution plans

The Company made Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes'' the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 133.23 million (31.03.2012: Rs. 131.68 million) for Provident Fund contributions and Rs. 39.29 million (31.03.2012: Rs. 35.85 million) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

2 Segment Reporting

The Company''s operations predominantly consist of construction / project activities. Hence there are no reportable segments under Accounting Standard -17. During the year under report'' substantial part of the Company''s business has been carried out in India. The conditions prevailing in India being uniform'' no separate geographical disclosures are considered necessary. The Company''s operations outside India do not qualify as reportable segments as the operations are not material.

3 Leases

(i) Rental expenses of Rs. 400.72 million (31.03.2012: Rs. 439.72 million) has been charged to Statement of Profit and Loss in respect of cancellable operating lease.

(ii) The Company has entered into Operating Lease arrangement for certain equipments. The lease is non-cancellable for a period of 5 years from March 28'' 2013 to March 27'' 2018.

(iii) Deductions/Adjustments to include certain assets sold and taken on operating lease by the company during the current year aggregating to Rs. 557.15 million. The resultant profit of Rs. 0.29 million on such sale has been recognized in Statement of Profit and Loss. The applicable lease rents'' pursuant to the arrangement has been charged to Statement of Profit and Loss.

4 Derivative Instruments

(i) The following derivative positions are open as at March 31'' 2013. These transactions have been undertaken to act as econominc hedges for the Company''s exposures to various risks in foreign exchange markets and may/ may not qualify or be designated as hedging instruments. Cross currency Swap Contracts (being derivative instruments)'' which are not intended for trading or speculative purposes but for the hedge purposes to establish the amount of reporting currency required or available at the settlement date of certain payables.

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


Mar 31, 2012

1 CORPORATE INFORMATION:

NCC Limited, formerly Nagarjuna Construction Company Limited ("NCCL", / "the Company") was established as a Partnership firm in 1978, which was subsequently converted into a limited company in 1990. The shares of the Company, are listed on the stock exchanges in India, in 1992 pursuant to Public offer of equity shares. The Company is engaged in the infrastructure sector, primarily in the construction of industrial and commercial buildings, roads, bridges and flyovers, water supply and environment projects, housing, power transmission lines, irrigation and hydrothermal power projects, real estate development, etc.

2.1 Details of Allotment of bonus shares during 5 years immediately preceding the Balance Sheet

The Company has allotted 103,368,530 Equity Shares of Rs. 2/- each in 2006-07 as fully paid up bonus shares in the ratio of 1:1 by capitalising Rs. 206.74 million from General Reserve.

2.2 Unclaimed equity shares of 97,265 are held in "NCC Limited - Unclaimed suspense account" in trust.

2.3 Rights of the share holders

a) The equity shares of the company having par value of Rs. 2/- per share, rank pari passu in all respects including voting rights and entitlement to dividend. Repayment of the capital in the event of winding up of the Company will inter alia be subject to the provisions of Companies Act 1956, the Articles of Association of the Company and as may be determined by the Company in General Meeting prior to such winding up.

b) 75,750 (31.3.2011: 52,750) equity shares represents the shares underlying outstanding Global Depositary Receipts (GDRs). Each GDRs represents 1 underlying equity shares having par value of Rs. 2/-. The GDRs, rank pari passu in all respects with the equity shares issued by the Company except in respect of voting rights.

3.1 11.95% Redeemable Non Convertible Debentures

(i) Debentures numbering to 1,000 having a face value of Rs. 1 million each aggregating to Rs. 1,000 million privately placed with Life Insurance Corporation of India on February 4th, 2009. These are secured by first charge created in favour of IDBI Trusteeship Services Limited, trustees to the debenture holders:

- by way of hypothecation of the Company's movable properties specified in the Schedule-2 of Memorandum of Hypothecation dated April 25, 2009;

- first charge by way of equitable mortgage by deposit of title deeds of the Company's immovable property situated at Gujarat as specified in first schedule to the Debenture Trust Deed dated April 23, 2009;

- equitable mortgage by deposit of title deeds of Company's immovable properties situated at Hyderabad, Bangalore, Mumbai and New Delhi as specified in Schedule-Aof Declaration and Undertaking dated April 25, 2009.

- These debentures are to be redeemed at par in 3 installments in the ratio of 25:25:50 commencing at the end of 3rd year from the date of allotment i.e., 4th February, 2012 onwards.

(ii) These debentures are to be redeemed at par in 3 installments in the ratio of 25:25:50 commencing at the end of 3rd year from the date of allotment i.e., February 4, 2012 onwards.

3.2 10.50% Redeemable Non Convertible Debentures

(i) Debentures numbering to 1,000 having a face value ofRs. 1 million each comprising often (10) Detachable and Separately Transferable, Redeemable Principal Parts ("STRPPS") aggregating to Rs. 1,000 million privately placed during 2009-10 with various banks and financial institutions. These are secured by first charge created in favour of IDBI Trusteeship Services Limited, trustees to the debenture holders, by way of equitable mortgage of the title deeds in respect of the company's immovable property situated at Kadi Taluka, Mehasana district, Gujarat as specified in the first schedule to the Debenture Trust Deed dated September 15, 2009 and by way of equitable mortgage by deposit of title deeds of the immovable properties of the Company and its subsidiary and its step-down subsidiaries, situated at Hyderabad as specified in Schedule-Ato I of Declaration and Undertaking dated October 12, 2009.

(ii) These debentures are to be redeemed at par in 3 installments in the ratio of 30:30:40 commencing at the end of 3rd year from the date of allotment i.e., July 24, 2012 onwards.

3.3 9.50 % Unsecured Redeemable Non-Convertible Debentures

(i) Debentures numbering to 500 having face value of Rs. 4 million each comprising of four (4) Detachable and Separately Transferable Redeemable principal parts ("STRPPS") of face value of Rs. 1 million each aggregating to Rs. 2,000 million privately placed with ICICI Bank Limited.

(ii) These Debentures are to be redeemed at par in four equated installments commencing at the end of second year from the date of allotment i.e. August 11, 2012 onwards.

3.4 Term Loans from Banks

(i) ICICI Bank

Loan availed of Rs. 20 million (31.03.2011:Rs. 20 million), No. of Installments outstanding 104 (31.03.2011:116)

Secured by hypothecation of asset purchased out of the loan i.e. building purchased with the loan.

Rate of Interest -12% per annum, Repayable in 120 monthly installments, commencing from February 2011.

(ii) HDFC Bank

(a) Loan I

- Loan availed of Rs.15.88 million (31.03.2011: Rs.15.88 million)

- Secured by hypothecation of specific assets purchased out of the loan, comprising Plant and Machinery

- Duration March 20, 2010 to January 20, 2014, No. of Installments outstanding 22 (31.03.2011: 34)

- Rate of Interest 8.61 % Per Annum. Repayable in 47 Monthly Installments

(b) Loan II

- Loan availed ofRs. 185.61 million (31.03.2011:Rs. 185.61 million)

- Secured by exclusive first charge on the machinery purchased out of term loan

- Personal guarantee of MrAGKRaju

- Duration March 10, 2009 to December 10, 2011, No. of Installments outstanding Nil (31.03.2011: 3)

- Rate of Interest 9.75% (Interest reset after every year)

- Repayable in 12 equal quarterly installments starting from the end of 9 months from date of first disbursement

(iii) IDBI Bank

Two Loans availed by the company amounting to Rs. 499.53 million (31.03.2011: Rs. 499.53 million)

Secured by hypothecation of specific assets purchased out of loan, comprising Plant and machinery Personal Guarantee of Mr.AAV Ranga Raju and Mr AGK Raju Duration September 29,2007 to May 18, 2012

- No. of Installments outstanding: Loan I - Nil (31.03.2011: 4), Loan 2 - 2 (31.03.2011:14)

Rate of Interest 9.35% & 11.75% (Interest reset annually starting from date of disbursement)

Repayable in 48 equal monthly installments after initial moratorium period of one year from date of first disbursement.

(iv) State Bank of India

Loan availed of Rs. 200.00 Million

Secured by hypothecation of specific assets purchased out of the loan

Duration March 31, 2009 to June 30, 2011, No. of Installments outstanding Nil (31.03.2011:1)

Rate of interest 12.25% per annum, Repayable in 10 equal quarterly monthly installments after initial moratorium period of one year from the date of first disbursement

(v) Standard Chartered Bank

Four loans availed by the Company aggregating toRs. 352.04 million (31.03.2011:Rs. 352.04 million)

Secured by hypothecation of specific assets, comprising Plant and Machinery

Duration November 29,2010 to October 11, 2013, No. of Installments outstanding for all Loans 7 (31.03.2011:11)

Rate of Interest ranges from 7.40% to 7.90 %, Repayable in 12 Quarterly installments.

(vi) Indus Ind Bank Ltd

- Seven loans (31.03.2011: Six loans) availed by the company aggregating to Rs. 640.89 million (31.03.2011: Rs. 350.00 million)

- Secured by hypothecation of specific assets purchased out of the loan comprising Plant and Machinery.

- Duration January 31, 2010 to January 31, 2016.

- No. of Installments outstanding: Loan 1 - No. of Installments

Outstanding 15 (31.03.2011: 27), Loan 2 - No. of Installments

Outstanding 25 (31.03.2011: 37), Loan 3 - No. of Installments

Outstanding 30 (31.03.2011: 42), Loan 4 - No. of Installments

Outstanding 40 (31.03.2011: Nil), Loan 5&6 - No. of Installments

Outstanding 42 (31.03.2011: Nil), Loan 7 - No. of Installments

Outstanding 1 (31.03.2011: Nil), Rate of Interest ranges from 9.50% to 12.00 %, Repayable in 42 Monthly installments.

3.5 Term Loans from Others Parties:-

(i) SREI Equipment Finance Private Limited

Seven loans (31.03.2011: Six loans) by the Company aggregating to Rs. 1053.59 million (31.03.2011:Rs. 1021.35 million )

- Secured by hypothecation of specific assets purchased out of loan, comprising Plant and Machinery and Construction equipment

Duration March 8, 2009 to October 22, 2013

- No. of Installments Outstanding: Loan 1 & 2 - No. of Installments

Outstanding 10 (31.03.2011: 22), Loan 3 & 4 - No. of Installments

Outstanding 15 (31.03.2011: 27), Loan 5 - No. of Installments

Outstanding 26 (31.03.2011: 38), Loan 6 - No. of Installments

Outstanding 27 (31.03.2011: 39), Loan 7 - No. of Installments

Outstanding 34 (31.03.2011: Nil)

- Rate of Interest is based on SREI benchmark rate (SBR), the rate will be reset at the beginning of the succeeding calendar month of the date when change in the SBR takes place and accordingly, the installments falling due in the subsequent months will be reworked.

(ii) L&T Finance Limited

(a) Loan I

Finance Amount Rs. 0.86 million (31.03.2011: Rs. 0.86 million )

Secured by hypothecation of specific assets purchased out of the loan, comprising Plant and Machinery and

Construction equipment.

Duration June 21, 2009 to April 21, 2012, No. of Installments Outstanding 1 (31.03.2011:13)

Rate of interest 13.35% per annum.

Repayable in 35 monthly installments after initial moratorium period of one month from date of first disbursement.

(b) Loan II

Finance Amount Rs. 33.58 million (31.03.2011: Rs. 33.58 million)

Secured by hypothecation of specific assets purchased out of the loan, comprising Plant and Machinery and

Construction equipment.

Duration May 16, 2009 to January 16, 2013, No. of Installments Outstanding 10 (31.03.2011: 22)

Rate of interest 13.35% per annum. Repayable in 45 monthly installments after initial moratorium period of three months from the date of first disbursement.

3.6 Vehicle Loans

Vehicle loans are secured by hypothecation of the vehicles financed through the loan arrangements. Such loans are repayable in equal monthly installments over a period of 3 years and carry interest rate ranging between 7.68% to 11.52% per annum.

4.1 Defined benefit plans

(i) Liability for retiring gratuity as on March 31, 2012 isRs. 93.20 million (31.03.2011:Rs. 78.79 million) of whichRs. 41.77 million (31.03.2011: Rs. 28.04 million) is funded with the Life Insurance Corporation of India. The balance of Rs. 51.43 million (31.03.2011:Rs. 50.75 million) is included in Provision for Gratuity. The Liability for Gratuity and Cost of Compensated absences has been actuarially determined and provided for in the books.

(ii) Details of the company's post-retirement gratuity plans for its employees including whole-time directors are given below, which is certified by the actuary and relied upon by the auditors.

(iii) In accordance with the payment of Gratuity Act, 1972 the company provides for gratuity covering eligible employees. The liability on account of gratuity is covered partially through a recognized Gratuity Fund managed by Life Insurance Corporation of India 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 on Central Government bonds.

5.1 Working Capital Demand Loans and Cash Credit facilities availed from consortium of banks are secured by:

a) Hypothecation against first charge on stocks, book debts and other current assets of the Company,(excluding specific projects) both present and future, ranking parri passu with consortium banks

b) Hypothecation against first charge on unencumbered fixed assets of the Project Division and Light Engineering Division(excluding Land & Buildings) of the Company ranking parri passu with consortium banks.

c) Equitable mortgage of three properties (Land & Buildings).

5.2 Working Capital Demand Loan in foreign currency is secured either/and or as:

Exclusive First hypothecation charge of project assets pertaining to the Al Amerat Quriyat road project.

5.3 Short term loans from Banks:

The company availed shortterm loans from various banks during the year having a maturity of less than one year and carry interest rate ranging between 11 % to 12.5% per annum.

5.4 Commercial paper represents Rs. 500.00 million (31.03.2011: Rs. 400.00 million) due within one year. The maximum amount of Commercial paper outstanding at anytime during the year was Rs. 2,300.00 million (31.03.2011: Rs. 1,500.00 million).

6.1 Of these 36,000,000 (31.03.2011: 36,600,000) equity shares aggregating Rs. 360.00 million (31.03.2011:Rs. 360.00 million) have been pledged to Bank of India for the term loan availed by NCC Urban Infrastructure Limited. Further shares to the extent of 83,400,000 (31.03.2011: 83,400,000) aggregating in value toRs. 834.00 million (31.03.2011: Rs. 834 million) are subject to non- disposal undertaking furnished and under lien with the bank.

6.2 The shares are subject to non-disposal undertaking furnished in favour of consortium of bankers for term loans availed by OB Infrastructure Limited

6.3 Of these 2,652 (31.03.2011: 2,652) equity shares aggregating in value toRs. 0.02 million (31.03.2011: Rs. 0.02 million) have been pledged with Axis Bank and 748 (31.03.2011: 748) equity shares aggregating in value to Rs. 0.01 million (31.03.2011: Rs. 0.01 million) have been pledged with IDBI Trustee Ship Services Limited for the term loan availed by Himachal Sorang Power Limited.

6.4 Of these 224,600 (31.03.2011: 224,600) equity shares aggregating in value to Rs. 2.25 million (31.03.2011: Rs. 2.25 million) have been pledged to the consortium of bankers for the term loan availed by Western UP Tollway Limited.

6.7 Of these 45,000 (31.03.2011: 45,000) equity shares are held by the joint venture partner under trust for NCC Limited.

6.8 Of these 153 (31.03.2011: 153) equity shares are held by the joint venture partner under trust for NCC Limited.

6.9 Of these 5,624,725 (31.03.2011:7,499,725) equity shares aggregating Rs. 56.25 million (31.03.2011: Rs. 74.99 million) have been pledged in favor of Infrastructure Development Finance Company Limited for the term loan availed by Brindavan Infrastructure Company Limited

6.10 Of these 40,800 (31.03.2011: 40,800) equity shares aggregating in value to Rs. 0.4 million (31.03.2011: Rs. 0.4 million) have been pledged to the consortium of bankers for the term loan availed by Bangalore Elevated Tollway Limited.

6.11 Of these 535,823 (31.03.2011: 95,696) equity shares aggregating in value to Rs. 53.58 million (31.03.2011: Rs. 9.57 million) have been pledged to IDBI Trustee Ship Services Limited and 83,416 (31.03.2011: 83,416) equity shares aggregating to Rs. 5.73 million (31.03.2011: Rs. 5.73 million) have been pledged to Axis Bank for the term loan availed by Pondichery Tindivanam Tollway Limited.

6.12 During the current year, pursuant to the approval of the Board of Directors of the Company, the entire equity shares held by the Company in NCC Power Projects Limited is transferred to NCC Infrastructure Holdings Limited, as a part of group restructuring.

6.13 During the current year, pursuant to a Scheme of Arrangement and Amalgamation comprising of various SNP Group of companies, approved by the Hon'ble High Court of Andhra Pradesh, additional equity shares have been allotted in certain companies as consideration for transfer of the equity shares held in certain other companies of the SNP Group.

6.14 Pursuant to the Scheme of Amalgamation, approved by the Hon'ble High Court of Andhra Pradesh, the business of Paschal Technology (India) Private Limited has been transferred to Paschal Form Work (India) Private Limited. The Company was allotted 182,000 equity shares of Rs. 10 each in Paschal Form work (India) Private Limited, against the shareholding of the company in Paschal Technology (India) Private Limited during the year.

6.15 During the current year, pursuant to the Buy back scheme offering by Brindavan Infrastructure Company Limited, the Company has surrendered 1,600,000 equity shares, in consideration of Rs. 18 per share. The resultant gain on such surrender of the shares, has been recognised in the Statement of Profit and Loss.

6.16 During the current year, Tellapur Tech Park Private Limited and Tellapur Town Centre Private Limited, have opted for filing application under 'Easy Exit Scheme 2011' since there were no operations carried out in the respective companies and for dissolution of the company under the Companies Act, 1956. The investments made in such companies have been considered as Loss of Disposal of investments and charged to the Statement of Profit and Loss.

7.1 Property development cost Rs.16.55 million (31.03.2011: Rs. 16.55 million) representing the cost of acquisition of land from a land owner, for which the Company holds General Power of Attorney to deal with such land including registration of the sale in the name of the Company.

8.1 Cash on hand includes Rs. 0.55 million (31.03.2011: Rs. 0.61 million) held in foreign currency.

8.2 Current account balance includes Rs. 6.08 million (31.03.2011:Rs. 10.16 million) remittance in transit

8.3 Margin Money Deposits have been lodged with Banks against Guarantees / letters of credit issued by them.

8.4 Balances meet the definition of "Cash and Cash Equivalents" as per AS - 3 'Cash Flow Statements'.

9.1 Secured by equitable mortgage of immovable properties of a body corporate

9.2 Advances to Suppliers, Sub-contractors and others, include Rs. 2,737.48 million (31.03.2011: Rs. 2,256.50 million) representing amounts withheld by contractees and includes advance to subsidiaries and associates Rs. 257.76 million (31.03.2011: Rs. 214.13 million); Jointly Controlled Entities Rs. 0.05 million(31.03.2011:Rs. 0.17 million)

10.1 Defined contribution plans

The Company made Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs.131.68 million (31.03.2011: Rs. 113.94 million) for Provident Fund contributions and Rs. 35.85 million (31.03.2011: Rs. 29.88 million) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

11 CONTINGENT LIABILITIES AND COMMITMENTS

(i) Contingent Liability (Rs.in million)

As at As at March 31,2012 March 31, 2011

(a) Claims against the company not acknowledged as debt

- Disputed sales tax liability for which the Company preferred appeal 687.18 315.01

- Disputed central excise duty relating to cement plant, which was sold in earlier year, for which the Company has filed an appeal to CESTAT, Bangalore - 29.73

- Disputed central excise duty relating to clearance of goods of LED division in favour of Developers of SEZ, for which the Company has filed an appeal to CESTAT, Bangalore 1.17 1.17

- Disputed service tax liability for which the Company preferred appeal 405.77 318.22

- Disputed sole arbitrator award in case of counter claim by Bhartiya Reserve Bank Note Mudran Private Limited, against which the Company hasfiled appeal before City Civil Court, Bangalore 30.00 30.00

- Others 9.78 3.63

- Joint and several liability in respect of joint venture projects and liquidated Amount not Amount not damages in respect of delays in completion of projects ascertainable ascertainable

- Levy of labour cess @ 1 % (w.e.f. July 2007) on the construction contracts Amount not Amount not executed by the Company in the State of Andhra Pradesh contested before ascertainable ascertainable the Hon'ble High Court of Andhra Pradesh

(b) Guarantees

Counter Guarantees given to the Bankers * 669.63 180.00

Performance guarantees, given on behalf of Subsidiaries * 349.09 341.69

Corporate Guarantees given to Banks and Financial institutions for financial assistance extended to Subsidiaries. 14,649.60 15,286.62

*Excludes Guarantees given against Company's liabilities, in terms of Guidance Note on Revised Schedule VI, issued by the Institute of Chartered Accountants of India.

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for [net of advances Rs. 56.62 million (31.03.2011: Rs. 66.42 million)]

Tangible 132.53 67.30

Intangible 2.18 4.87

(b) Other commitments

Commitment towards investment in companies 3,420.66 12,206.87

[net of advances Rs. 21,646.45 million (31.03.2011: Rs. 17,909.87 million)]

Future Export commitments on account of import of machinery and equipments at concessional rate of duty under EPCG scheme 517.90 517.90

12 SEGMENT REPORTING

The Company's operations predominantly consist of construction / project activities. Hence there are no reportable segments under Accounting Standard - 17. During the year under report, substantial part of the Company's business has been carried out in India. The conditions prevailing in India being uniform, no separate geographical disclosures are considered necessary. The Company's operations outside India do not qualify as reportable segments as the operations are not material.

13 LEASES

Rental expenses of Rs. 439.73 million (31.03.2011: Rs. 265.90 million) has been charged to Statement of Profit and Loss in respect of cancellable operating lease.

14 The revised Schedule VI has become effective from April 1, 2011 for the preparation of Financial Statements. This has significantly impacted the disclosure and presentation made in the Financial Statements. Previous year figures have been regrouped / reclassified wherever necessary to correspond with the current year classification / disclosure.


Mar 31, 2010

1. Contingent liabilities not provided for:

a) Letters of credit - Rs.1,605.34 million (31.03.2009: Rs.367.21 million).

b) Counter Guarantees given to the Bankers - Rs. 20,216.47 million (31.03.2009: Rs. 15,269.51 million).

c) Performance guarantees, given on behalf of Subsidiaries and Associates Rs.39.66 million (31.03.2009: Rs.95.76 million).

d) Corporate Guarantees given to Banks and Financial institutions for financial assistance extended to Subsidiaries, Associates and Joint Ventures Rs. 16,911.20 million (31.03.2009: Rs.16,731.69 million).

e) Disputed income tax liability for which the Company preferred appeal Rs.73.38 million (31.03.2009: Rs. 69.77 million).

f) Disputed sales tax liability for which the Company preferred appeal Rs.134.85 million (31.03.2009: Rs. 49.11 million).

g) Disputed central excise duty relating to cement plant, which was sold in earlier year, for which the Company has filed an appeal to CESTAT, Bangalore Rs.29.73 million (31.03.2009: Rs.28.23 million).

h) Disputed central excise duty relating to clearance of goods of LED division in favour of Developers of SEZ, for which the Company has filed an appeal to CESTAT, Bangalore Rs.1.17 million (31.03.2009: Rs.Nil). i) Disputed service tax liability for which the Company preferred appeal Rs.297.99 million (31.03.2009: Rs. 186.12 million).

j) Disputed sole arbitrator award of Rs.30.00 million in case of counter claim by Bhartiya Reserve Bank Note Mudran Private Limited, against which the Company has filed appeal before City Civil Court, Bangalore. (31.03.2009: Rs. 30.00 million)

k) Claims against the Company not acknowledged as debts Rs.3.63 million (31.03.2009: Rs. 519.51 million).

l) Joint and several liability in respect of joint venture projects and liquidated damages in respect of delays in completion of projects - amount not ascertainable.

m) Levy of labour cess @ 1 % (w.e.f. July 2007) on the construction contracts executed by the Company in the State of Andhra Pradesh contested before the Honble High Court of Andhra Pradesh - amount not ascertainable.

n) Future Export commitments on account of import of machinery and equipments at concessional rate of duty under EPCG scheme is Rs.534.05 million (31.03.2009: Rs.483.04 million).

3. Share Capital

Pursuant to a resolution passed by the members of the Company at the Annual General Meeting held on July 30, 2009 and the provisions of Sec 81 (1 A) and other applicable provisions of the Companies Act, 1956 the Company has issued 27,732,900 Equity Shares of Rs.2/- each at a premium of Rs.130.46 per share aggregating to Rs. 3,673:50 million to Qualified Institutional Buyers ("QIBs") under Qualified Institutional Placement ("QIP").

4. Loan Funds

A. Secured Loans

a) 11.95% Redeemable Non Convertible Debentures:

i) 11.95% Redeemable Non Convertible Debentures numbering to 1,000 having a face value of Rs.1 million each aggregating to Rs. 1,000 million privately placed with Life Insurance Corporation of India are secured by first charge in favour of IDBI Trusteeship Services Limited, trustees to the debenture holders:

(a) by way of hypothecation of the Companys movable properties specified in the Schedule-2 of Memorandum of Hypothecation dated 25th April, 2009;

(b) first charge by way of equitable mortgage by deposit of title deeds of the Companys immovable property situated at Gujarat as specified in first schedule to the Debenture Trust Deed dated 23rd April, 2009;

(c) equitable mortgage by deposit of title deeds of Companys immovable properties situated at Hyderabad, Bangalore, Mumbai and New Delhi as specified in Schedule-A of Declaration and Undertaking dated 25th April, 2009.

ii) These debentures numbering to 1,000 having a face value of Rs.1 million each aggregating to Rs. 1,000 million are to be redeemed at par in 3 installments in the ratio of 25:25:50 commencing at the end of 3rd year from the date of allotment i.e., 4th February, 2012 onwards.

b) 10.50% Redeemable Non Convertible Debentures.

i) 10.50% Redeemable Non Convertible Debentures numbering to 1,000 having a face value of Rs. 1 million each comprising of 10 Detachable and Separately Transferable, Redeemable Principle Parts ("STRPPS") aggregating to Rs.1,000 million privately placed during the year with various banks & financial institution are secured by first charge in favour of IDBI Trusteeship Services Limited, trustees to the debenture holders, by way of equitable mortgage of the title deeds in respect of the companys immovable property situated at Kadi taluka, Mehasana district, Gujarat as specified in the first schedule to the Debenture Trust Deed dated 15th September, 2009 and by way of equitable mortgage by deposit of title deeds of the immovable properties of the Company and its subsidiary and its step-down subsidiaries, situated at Hyderabad as specified in Schedule-A to I of Declaration and Undertaking dated 12th October, 2009.

ii) These debentures numbering to 1,000 having a face value of Rs.1 million each comprising of 10 STRPPS aggregating to Rs. 1,000 million are to be redeemed at par in 3 installments in the ratio of 30:30:40 commencing at the end of 3rd year from the date of allotment i.e., 24th July, 2012 onwards.

c) The company has created debenture redemption reserve for both the above redeemable non-convertible debentures.

d) Term Loans

Term Loans availed from banks and others are secured by hypothecation of specific assets, comprising plant and machinery and construction equipment, acquired out of the said loans and personal guarantee of a Director.

e) Working Capital Facilities: Cash Credit facilities and Working Capital Demand Loans from consortium of banks are secured by:

i) Hypothecation against first charge on stocks, book debts and other current assets of the Company, both present

and future, ranking parri passu with consortium banks ii) Hypothecation against first charge on all unencumbered fixed assets of the Project Division and Light

Engineering Division of the Company both present and future ranking parri passu with consortium banks. iii) Equitable mortgage of three properties (Land & Buildings). iv) Personal guarantee of certain Directors. v) Working Capital Demand Loan in foreign currency is secured either/and or as:

Exclusive First hypothecation charge of project assets pertaining to the Al Amerat Quriyat road project.

f) Vehicle Loans: Vehicle loans availed are secured by hypothecation of vehicles acquired out of the said loans.

B. Unsecured Loan

Commercial Paper: Commercial paper represents Rs. 1,500 million (31.03.2009: Nil) due within one year.

The maximum amount of Commercial paper outstanding at any time during the year was Rs. 1,500 million (31.03.2009:

Nil).

5. Fixed Assets

Fixed assets include Rs.262.96 million (31.03.2009: Rs.418.32 million) at written down value representing assets of a Joint Venture on which a second charge has been created in favour of M/s.3i Infotech Trustyship Services Limited.(a subsidiary of ICICI Bank Limited) for working capital demand loan of USD 17.60 million sanctioned by ICICI Bank Limited, Bahrain to Nagarjuna Contracting Company LLC , Dubai, a wholly owned subsidiary of the Company.

6. Inventories

Property Development Cost

Property Development Cost includes Rs. 16.55 million (31.03.2009: Rs. 16.55 million) representing the cost of acquisition of land from a land owner, for which the Company holds General Power of Attorney to deal with such land including registration of the sale in the name of the Company.

7. Cash and Bank balances

a) Cash on hand includes Rs.0.24.million (31;03.2009: Rs.0.33 million) held in foreign currency.

b) Balance with banks in current account & deposit account includes balance with non- scheduled banks as follows:

8. Loans and Advances - Advances to Suppliers, Sub-contractors and others, include Rs. 1,431.79 million (31.03.2009: Rs. 459.67 million) representing amounts withheld by contractees.

9. Micro, Small and Medium Enterprises under the Micro,-Small and Medium Enterprises Development Act, 2006 have been determined based on the information available with the company and the required disclosures are given below:

10. Employee Benefits

a) Liability for retiring gratuity as on March 31, 2010 is Rs.48.72 million (31.03.2009: Rs.37.82 million) of which Rs.18.45 million (31.03.2009: Rs.10.96 million) is funded with the Life Insurance Corporation of India. The balance of Rs.30.27 million (31.03.2009: Rs.26.86 million) is included in Provision for Gratuity. The Liability for Gratuity and Cost of Compensated absences has been actuarially determined and provided for in the books.

b) Details of the companys post-retirement gratuity plans for its employees including whole-time directors are given below, which is certified by the actuary and relied upon by the auditors.

i) Discount Rate:

The discount rate is based on the prevailing market yields of Indian government securities as at the balance sheet date for the estimated term of the obligations.

ii) Expected Rate of Return on Plan Assets:

This is based on our expectation of the average long term rate of return expected on investments of the Fund during the estimated term of the obligations. iii) Salary Escalation Rate:

The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors.

11. Related Party Transactions

Following is the list of related parties and relationships: Sl. no. Particulars

A) Subsidiaries

1) NCC Infrastructure Holdings Limited

2) NCC Urban Infrastructure Limited

3) NCC Vizag Urban Infrastructure Limited

4) Nagarjuna Construction Co. Ltd and Partners LLC

5) OB Infrastructure Limited

6) NCC Infrastructure Holdings Mauritius Pte. Limited

7) Nagarjuna Construction Co. International LLC

8) Nagarjuna Contracting Co.LLC

9) Patnitop Ropeway and Resorts Limited

10) Naftogaz Engineering Private Limited

11) NCC Power Projects Limited

12) NCC International Convention Centre Limited

B) Step-down Subsidiaries

13) Liquidity Limited

14) Dhatri Developers & Projects Private Limited

15) Sushanti Avenues Private Limited

16) Sushruta Real Estates Private Limited

17) PRG Estates Private Limited

18) Thrilekya Real Estates, Private Limited

19) Varma Infrastructure Private Limited

20) Nandyala Real Estates Private Limited

21) Kedarnath Real Estates Private Limited

22) AKHS Homes Private Limited

23) JIC Homes Private Limited

24) Sushanthi Housing Private Limited

25) CSVS Property Developers Private Limited

26) Vera Avenues Private Limited

27) Sri Raga Nivas Property Developers Private Limited

28) VSN Property Developers Private Limited

29) M A Property Developers Private Limited

30) Vara Infrastructure Private Limited

31) Sri Raga NivasVentures Private Limited

32) Mallelavanam Property Developers Private Limited

33) Sradha Real Estates Private Limited

34) Siripada Homes Private Limited

35) NJC Avenues Private Limited

36) NCC Urban Lanka (Private) Limited.

37) Himachal Sorang Power Limited

38) Al Mubarakia Contracting Company LLC

C) Joint Ventures

39) Brindavan Infrastructure Company Limited

40) Western UP Tollway Limited

41) Bangalore Elevated Tollway Limited

42) Pondicherry Tindivanam Tollway Limited

43) Premco - NCC

44) NCC - MAYTAS

45) SDB - NCC - NEC

46) NCC - PNC

Sl. no. Particulars

47) NCC - SJRIPL

48) Himachal JV

49) NCC - KNR

50) NCC - NEC - Maytas

51) NCC-VEE

52) NCC - MSKEL

53) NG - NCC

D) Associates

54) Paschal Form Work (I) Private Limited

55) Paschal Technology (I) Private Limited

56) Nagarjuna Facilities Management Services LLC

57) Himalayan Green Energy Private Limited

58) Jubilee Hills Landmark Projects Limited

59) Varaprada Real Estates Private Limited

60) Machilipatnam Port Limited

61) Tellapur Technocity (Mauritius)

62) Tellapur Technocity Private Limited

63) Tellapur Town Centre Private Limited

64) Teilapur Tech Park Private Limited

65) Gulbarga Airport Developers Private Limited

66) Shimoga Airport Developers Private Limited

E) Key Management Personnel.

67) Dr AVS Raju

68) Sri AAV Ranga Raju

69) Sri NR Alluri

70) Sri JV Ranga Raju

71) Sri AGK Raju

72) Sri ASN Raju

73) Sri RN Raju

74) Sri AVN Raju

F) Relatives of Key Management Personnel

75) Smt. A.Neelavathi

76) Smt. A.Bharathi

77) Smt.B.Kausalya

78) Smt.A.Satyanarayanamma

79) Smt.J.Sridevi

80) Smt. Sowjanya

81) Smt. AArundathi

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

82) NCC Blue Water Products Limited

83) Swetha Estates

84) R.R.V. Infra Limited

85) NCC Finance Limited

86) Swetha Capital Private Limited

87) Sirisha Memorial Charitable Trust

88) Shyamala Agro Farms Private Limited

89) Ranga Agri Impex Private Limited 90). NCC Foundation

91) Suryakumari Abraham Memorial Foundation

12. Segment Reporting

The Companys operations predominantly consist of construction / project activities. Hence there are no reportable segments under Accounting Standard -17. During the year under report, substantial part of the Companys business has been carried out in India. The conditions prevailing in India being uniform, no separate geographical disclosures are considered necessary. The Companys operations outside India do not qualify as reportable segments as the operations are not material.

Excluding service tax and education cess thereon.

* Professional charges of Rs.8.50 million paid in connection with issue of equity shares through Qualified Institutional Placement treated as share issue expenses and adjusted to securities premium account.

Note: The above figures does not include provision for gratuity and compensated absences liability actuarially valued as separate figures are not available

13. Remittance in foreign currencies for dividend

The company has not remitted any amount in foreign currencies on account of dividends during the year and does not have any information as to the extent to which remittances, if any, in foreign currencies on account of dividends have been made to/on behalf of non resident share holders. The particulars of dividend paid to non resident shareholders during the year

14. Figures of previous year have been regrouped / rearranged / reclassified wherever necessary to conform to the current year presentation.

 
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