Home  »  Company  »  Simplex Infrastructu  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Simplex Infrastructures Ltd.

Mar 31, 2023

(c) Exchange differences comprise H1,975 [31st March, 2022: H440] being adjustments on account of exchange fluctuations relating to Property, plant and equipment of foreign operations.

(d) The Net Carrying Amount of Plant and Equipment as on 31st March, 2023 includes Tools H385 (31st March, 2022: H655).

(e) No proceedings have been initiated on or are pending against the company for holding benami property under the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) [formerly the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)] and Rules made thereunder.

(i) Rights, preferences and restrictions attached to shares

The Company has one class of equity shares having a par value of H2/- per share. Each shareholder is eligible for one vote per share held. Any dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, 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 to their shareholding.

Nature and purpose of Reserves

Capital Reserve: Represents mainly amount out of forfeiture of equity shares and warrants for non-payment of call money and arisen pursuant to acquisition of additional interest in a Joint Venture.

Capital Redemption Reserve: Represents amount on redemption of Preference Shares and will be utilised as per the provisions of the Companies Act, 2013.

Securities Premium Reserve: Represents amount received from share holders in excess of face value of the equity shares and will be utilised as per the provisions of the Companies Act, 2013.

Debenture Redemption Reserve: The Company is required to create a debenture redemption reserve out of the profits which will be utilised for the purpose of redemption of Debentures.

Contingency Reserve: Represents reserve created out of Surplus in earlier years in the Statement of Profit and Loss for meeting future contingencies, if any.

General Reserve: The Company has transferred a portion of the net profit of the Company before declaring dividend to general reserve pursuant to the earlier provisions of Companies Act, 1956 and will be utilised as per the provisions of the Companies Act, 2013. Mandatory transfer to general reserve is not required under the Companies Act, 2013.

Foreign Currency Translation Reserve: Exchange differences arising on translation of foreign operations are recognised in other comprehensive income and accumulated in a Foreign Currency Translation Reserve within equity. The cumulative amount of Foreign Currency Translation Reserve is reclassified to profit and loss when the net investment is disposed-off.

a) Defined Contribution Plans

The Company has recognised, in the Statement of Profit and Loss for the year ended 31st March, 2023 an amount of H437 (31st March, 2022 : H763) as expenses under defined contribution plans.

b) Post Employment Defined Benefit Plans

i) a) Gratuity (Funded)

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. As per the scheme, the Gratuity Trust fund managed by the Trust, makes payment to vested employees on retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s eligible salary (half month''s salary) depending upon the tenure of service subject to a maximum limit of amount payable under Payment of Gratuity Act. Vesting occurs upon completion of five years of service. Liabilities with regard to the Gratuity plan are determined by actuarial valuation as set out in Note 1.10, based upon which, the Company makes contribution to the Gratuity fund.

b) Gratuity (Unfunded)

The Company provides for gratuity, a defined benefit retirement plan covering employees of a foreign branch. As per the scheme, the Company makes payment to vested employees on retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s eligible salary (one month''s salary) depending upon the tenure of service subject to a maximum limit of twenty month''s salary. Vesting occurs upon completion of one year of service. Liabilities with regard to the unfunded Gratuity plan are determined by actuarial valuation as set out in Note 1.10.

ii) End of Service Benefit / Severance Pay [ESB/SP] (Unfunded)

The Company provides for End of Service Benefit / Severance Pay (unfunded) defined benefit retirement plans for certain foreign branches covering eligible employees. As per related schemes, the Company makes payment to vested employees on retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s eligible salary for specified number of days (ranging from five days to actual period of service rendered) depending upon the tenure of service. Vesting occurs upon completion of one year of service (except for a foreign branch where there is no vesting period).Vesting period is not applicable in case of death or disability in certain foreign branches. Liabilities with regard to the End of Service Benefit / Severance Pay Scheme are determined by actuarial valuation as set out in Note 1.10.

c) Other long term employee benefit plan

Leave Encashment Scheme [LES] (Unfunded)

The Company provides for accumulated leave benefit for eligible employees payable at the time of retirement of service subject to maximum of ninety / one hundred twenty days (for India and a foreign branch) and in case of other foreign branches, actual number of days outstanding based on last drawn salary. Liabilities with regard to leave encashment scheme are determined by actuarial valuation as set out in Note 1.10.

d) Risk Exposure

Aforesaid post-employment defined benefit plans typically expose the Company to actuarial risks, most significant of which are discount rate risk, salary escalation risk and demographic risk.

Discount Rate Risk

The Company is exposed to the risk of fall in discount rate. A fall in discount rate will eventually increase the ultimate cost of providing the above benefit thereby increasing the value of the liability.

Salary Escalation Risk

The present value of defined benefit plan liability is calculated by reference to the future salaries of plan participant. An increase in the salary of plan participants will increase the plan liability.

Demographic Risk

In the valuation of liability certain demographic (mortality and attrition rates) assumptions are made. The Company is exposed to this risk to the extent of actual experience eventually being worse compared to the assumptions thereby causing an increase in the plan liability.

The sensitivity analysis above has been determined based on reasonably possible changes of the respective assumptions occurring at the end of the year and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the same method used to calculate the liability recognised in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous year.

(ix) Provident Fund

Provident Fund contributions in respect of certain employees are made to Trust administered by the Company and such Trust invests funds following a pattern of investments prescribed by the Government. Both the employer and employee contribute to this Fund and such contributions together with interest accumulated thereon are payable to employees at the time of their separation from the Company or retirement, whichever is earlier. The benefit vests immediately on rendering of services by the employee. The interest rate payable to the members of the Trust is not lower than the rate of interest declared annually by the Government under the Employees'' Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, on account of interest is to be made good by the Company.

The Actuary has carried out actuarial valuation of interest rate guarantee obligations as at the Balance Sheet date using Projected Unit Credit Method and Deterministic Approach as outlined in the Guidance Note 29 issued by the Institute of Actuaries of India. Based on such valuation, there is no future anticipated shortfall with regard to interest rate guarantee obligation of the Company as at the balance sheet date. Further during the year, the Company''s contribution of H185 (F.Y. 202122: H494) to the Provident Fund Trust, has been expensed under "Contribution to Provident and Other Funds". Disclosures given hereunder are restricted to the information available as per the Actuary''s report.

Note 26 (i): Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard based on the inputs used to arrive at fair value measurements. An explanation of each level follows underneath the table.

Level I: Level I hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level II: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level II.

Level III: If one or more of the significant inputs is not based on observable market data, the instrument is included in level III.

The carrying amount of financial assets and liabilities measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled. The fair values for the same were calculated based on cash flows discounted using a current lending rate. They are classified as level III fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

1. The fair values of investment in quoted equity instruments is based on the current market price of respective instruments as at the Balance Sheet date.

2. The fair values of the derivative financial instruments have been received from the respective Banks which has been determined by using valuation techniques with market observable inputs at the end of each reporting dates.

Note 27: Financial Risk Management

The Company''s business activities are exposed to a variety of financial risks, namely liquidity risk, market risks and credit risk. The Company''s senior management has the overall responsibility for establishing and governing the Company''s financial risk management framework. The Company has constituted a Risk Management Committee, which is responsible for developing and monitoring the Company''s financial risk management policies. The Company''s financial risk management policies are established to identify and analyse the risks faced by the Company, to set and monitor appropriate controls.

(A) Credit risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, contract assets, bank balances, loans, investments and other financial assets.

At each reporting date, the Company measures loss allowance for certain class of financial assets and contract assets based on historical trend, industry practices and the business environment in which the Company operates.

Trade receivables includes Government and Non-Government customers and diversified in various construction verticals and geographies. All trade receivables are reviewed and assessed on a quarterly basis.

Credit risk arising from investments, derivative financial instruments and balances with banks is limited because the counterparties are banks and recognised financial institutions with high credit worthiness.

(i) Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company''s performance to developments affecting a particular industry.

I n order to avoid excessive concentrations of risk, the Company focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.

(ii) Allowance for expected credit losses

The Company measures Expected Credit Loss (ECL) for financial assets and contract assets based on historical trend, industry practices and the business environment in which the Company operates.

Expected Credit Loss is the present value of the difference between:

(a) the contractual cash flows that are due to an entity under the contract; and

(b) the cash flows that the entity expects to receive

The Company recognises in profit and loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date in accordance with Ind AS 109.

Judgements are required in assessing the recoverability and determining whether a provision against those receivables is required. Factors considered include the creditworthiness of the counterparty, the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.

I n determination of the allowances for credit losses, the Company has used a practical expedience by computing the expected credit losses based on ageing matrix, which has taken into account historical credit loss experience and adjusted for forward looking information.

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company has an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity management requirements.

The following table shows the maturity analysis of the Company''s derivative and non-derivative financial liabilities based on contractually agreed undiscounted cash flows.

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk.

The sensitivity analyses in the following sections relate to the position as at 31st March, 2023 and 31st March, 2022.

The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant. The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31st March, 2023 and 31st March, 2022.

a) Interest rate risk: Interest rate risk is measured by using cash flow sensitivity for changes in variable interest rate. Any movement in the reference rates could have an impact on the Company''s cash flow as well as cost. The management is focused towards reducing the volatility due to interest rates, which is reflected in proportion of variable interest rate borrowing to total borrowing.

b) Foreign currency risk: Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in foreign exchange rates. The Company generally enters into forward exchange contracts to hedge against its foreign currency exposures relating to the recognised underlying liabilities / assets and firm commitments. The Company''s policy is to hedge its exposures other than natural hedge. The Company does not enter into any derivative instruments for trading or speculative purposes.

c) Other price risk: The Company''s exposure to securities price risk arises from investments in equity instruments held by the Company and classified in the balance sheet as FVPL and FVOCI respectively.

• Amount is below the rounding off norm adopted by the Company.

Note 28: Capital Management

(a) Risk management

The Company''s objectives when managing capital are to

• safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders, and

• maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The Management regularly monitors capital on the basis of the following gearing ratio:

Net debt (total borrowings net of cash and cash equivalents) divided by Total ''equity'' (as shown in the balance sheet).

The debt capital is subject to usual debt covenants, such as timely servicing of debts, maintaining adequate security coverage and appropriate gearing ratios etc. as may be specified by the lenders from time to time.

Note 29: The Company''s operations predominantly consist of construction / project activities, which is considered the only business segment in the context of Ind AS 108 "Operating Segment".

The credit period towards trade receivables generally ranges between 30 to 180 days. Further the customer retains certain amounts as per the contractual terms which usually fall due on the completion of defect liability period (DLP) of contract. These retentions are made to protect the customer from the Company failing to adequately complete all or some of its obligations under the contract.

Contract assets are initially recognised for revenue earned from transfer of goods and services but not billed to customer because the work completed has to meet technical requirements as well as various milestones as set out in the contract with customers. Upon fulfilling the said requirements and acceptance by the customer, the amounts recognised as contract assets are reclassified to trade receivables. Contract liabilities include advances received from customers towards mobilisation of resources, purchase of materials, etc. Impairment losses recognised on contract assets and trade receivables have been disclosed in note 27.

(v) Reconciling the amount of revenue recognised in the statement of profit and loss with the contracted price

There is no difference in the contract price negotiated and the revenue recognised during the period in the statement of profit and loss.

(vi) Performance obligation

Method used to recognise revenue and timing of satisfaction of performance obligations have been disclosed in note 1.14. The transaction price allocated to the remaining performance obligations (unsatisfied or partially unsatisfied) is H391,763 (31st March, 2022: H574,231), which will be recognised as revenue over the respective project durations. Generally the project duration of contracts with customers is more than 12 months.

Note 34: Contingent Liabilities - Attributable to Claims against the Company not acknowledged as debts:

i) In respect of the contingent liabilities set out below, pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timings of cash outflows, if any:

Particulars

As at 31st March, 2023

As at 31st March, 2022

(a) Interest (others)

6

6

(b) Professional Tax

4

4

(c) Sales Tax / Value Added Tax

15,716

15,950

(d) Entry Tax

667

737

(e) Excise Duty

1,572

1,526

(f) Income Tax

1,386

1,387

(g) Goods and Service Tax

3,022

-

(h) Service Tax

2,832

2,131

(i) The Company does not expect any reimbursement in respect of the above matters.

ii) There are numerous interpretative issues relating to the Supreme Court (SC) judgement on Provident Fund dated 28th February, 2019. As a matter of caution, the company has made a provision on a prospective basis from the date of the SC order. The company will update its provision, on receiving further clarity on the subject.

Note 35: Contingent Liabilities - Attributable to Guarantees:

In respect of Guarantees set out below, the cash outflows, if any, could generally occur during the validity period of the respective guarantees:

Particulars

As at 31st March, 2023

As at 31st March, 2022

(i) Corporate Guarantees given to Banks against credit facilities extended to third parties.

(a) In respect of Associates #

65,292

81,275

(ii) Bank Guarantees

(a) In respect of Associates

-

196

# Relates to the following:

(A) Amount of credit facilities utilised aggregating H65,292 (31st March, 2022: H60,353) against corporate guarantee given to banks of H65,292 (31st March, 2022: H60,353) in respect of an associate; and

(B) I n respect of an another Associate Company, corporate guarantee given to the lender equivalent to the outstanding amount as at 31st March, 2023 for repayment of facility given amounting to H NIL [31st March, 2022 USD 329 lakhs (equivalent H20,922)], has been provided by the Company along with its others consortium members. In terms of the Deed of Guarantee, guarantors'' obligation are joint and several. [Refer Note 4(a)(ii)].

Note 36: The Company has incurred net loss of H50,624 for the year ended 31st March, 2023 (H52,631 for the year ended 31st March, 2022) as also there was default in payment of financial debts, to its bankers and others amounting to H483,021 on 31st March, 2023 (31st March, 2022: H358,131). The Company is in the process of finalising a resolution plan with its lenders. The Company is confident of improving the credit profile including time bound realization of its assets, arbitration claims, etc. which would result in meeting its obligation in due course of time. Accordingly, the Management considers it appropriate to prepare these financial results on going concern basis.

Note 37: The Income Tax Act (the Act) has been amended to include the provisions of Income Computation and Disclosure Standards (ICDS) in the sections 43AA and 43CB, with retrospective effect from 1st April 2016, which inter alia makes foreign currency translation reserves (FCTR) and retention monies on construction contracts taxable for the Company. The Hon''ble High Court of Delhi has already rendered the ICDS null and void and ''non-est'' in law in the Chamber of Tax Consultants Case (2017).

Further, based on legal opinion of a Senior Advocate, the Company is of the view that the changes in the Act are not applicable consequent to the ruling of the Delhi High Court as above, and also referring to various relevant judgements of the Hon''ble Supreme Court.

In view of the above, the Company has not considered the aforesaid balances for computation of tax expenses in these financial statements, and will continue to dispute their taxability with the relevant authorities.

Note 38: Trade receivables aggregating H13,935 (31st March, 2022: H11,867) [included under Note 7(b)] as on 31st March, 2023 from customers in respect of various project sites are outstanding for a long period of time. At this stage, based on discussions and correspondences with customers, the management believes the above balances are good and recoverable.

Inventories aggregating H887 (31st March, 2022: H770) [included under Note 6] as on 31st March, 2023 pertaining to certain completed project sites are readily usable.

Retention monies due from customers are receivable only after clearance of final bill, by customers and after expiry of defect liability period after execution of contracts. In the opinion of the management, such retention amounts aggregating H3,271 (31st March, 2022: H3,151) (included under Note 9) of certain completed contracts as on 31st March, 2023 are good and recoverable.

The said reasons explain the joint auditor''s qualification and emphasis of matter on the same issues in their Audit report on the Company''s financial statements for the year ended 31st March, 2023.

Note 39: Loans and Advances amounting to H35,063 (31st March, 2022: H33,478) [included under Note 7(e), and 7(f) and Note 9] for which the Company is in active pursuit and confident of recovery / settlement of such advances within a reasonable period of time.

The said reasons explain the joint auditor''s qualification and emphasis of matter on the same issue in their Audit report on the Company''s financial statements for the year ended 31st March, 2023.

Note 40: The Company together is working on finalization of resolution plan with the Lenders of the Company under the regulatory framework.

Note 41: (a) Recognition of unbilled revenue is based on Cost to Complete (CTC) estimates as per Percentage of Completion Method (POCM) under Ind AS 115 ''Revenue from Contracts with Customers''. This CTC is regularly reviewed and necessary changes are effected by the Management. Certification of unbilled revenue by customers and acceptance of final bills by customers often takes significant period of time and varies from project to project. At this stage, based on discussions with concerned customers, the Management believes that unbilled revenue of H41,584 (31st March, 2022: H37,460) [included under Note 9] as on 31st March, 2023 will be billed and realised in due course.

The said reasons explain the joint auditor''s qualification and emphasis of matter on the same issue in their Audit report on the Company''s financial statements for the year ended 31st March, 2023.

(b) Deferred Tax Asset will be adjusted against future projected current tax liability. The Company is confident that the Resolution Plan which is under process of finalisation will be approved by the Lenders and the said projected profit and current tax liability will be adjusted against the Deferred Tax Asset. The said reasons explain the joint auditor''s emphasis of matter on the same issue in their Audit report on the Company''s financial statements for the year ended 31st March, 2023.

(c) The Company has entered into short-term leases for offices, warehouses, employee accommodations, equipments, etc. Terms of the lease include operating term for renewal, terms of cancellation, etc.

(d) Lease payments in respect of (d) above are recognised in the statement of profit and loss under the heads ''Rent'' and ''Equipment Hire Charges'' in Note 24.

Note 45: Amount subject to master netting arrangements but not offset:

The Company does not have any financial assets and financial liabilities subject to master netting arrangements but not offset in the respective financial years.

Note 46: Based on the valuation report of an independent valuer impairment loss as on 31st March, 2022 of Property, Plant & Equipment was recognised by an Associate Company. Accordingly impairment in the carrying value of investment of the Company has been recognised as exceptional item during the year ended 31st March, 2022.

Note 47: The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment received Indian Parliament approval and Presidential assent in September 2020. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

Note 48(a): Details of balances outstanding in respect of transactions undertaken with a company struck-off under section 248 of the Companies Act, 2013:

Note 52: Previous year''s figures are regrouped/ rearranged, where necessary, to conform to the current year''s presentation.


Mar 31, 2018

Note 1: Critical estimates and judgements

The preparation of the financial statements in conformity with Ind AS requires the Management to make estimates, judgement and assumptions which affect the reported amount of assets, liabilities, revenue and expenses and the accompanying disclosures. The application of accounting policies that require critical accounting estimates involving complex and subjective judgements and the use of assumptions in these financial statements have been disclosed below. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Change in estimates are reflected in the financial statements in the period in which such changes are made and, if material, their effects are disclosed in the notes to the financial statements.

a) Defined Benefit Plans (Gratuity and other post-employment benefits): Refer Note 21.

b) Depreciation/Amortisation and useful lives of Property, Plant and Equipment / Intangible Assets: Refer Note 1.3, 1.4, 2 and 3.

c) Fair value measurement of financial instruments: Refer Note 26.

d) Revenue Recognition: Refer Note 1.14, 7(b) and 9.

e) Allowance for expected credit losses: Refer Note 27.

f) Provisions: Refer Note 1.12.

g) Taxes: Refer Note 1.13, 8, 13, 17 and 25.

h) Impairment of Non-Financial Assets: Refer Note: 1.5, 2, 3, 5 and 9.

i) Impairment of Financial Assets: Refer Note 1.7(E), 4(a), 4(b), 7(a), 7(b), 7(e) and 7(f).

* Amount is below the rounding off norm adopted by the Company.

(a) Buildings include Rs. 9 (31 st March, 2017: Rs. 9) being the Gross Carrying Amount of a building erected on land taken on lease and depreciated over the period of lease which is less than the useful life of the asset.

(b) Buildings include four properties [Gross Carrying Amount and Net Carrying AmountRs. 11 (31st March, 2017:Rs. 11) and Rs. 10 (31st March, 2017:Rs. 10) respectively] located at New Delhi and another property [Gross Carrying Amount and Net Carrying AmountRs. 5 (31st March, 2017:Rs. 5) and Rs. 5 (31st March, 2017:Rs. 5) respectively] located at Mumbai which are not held in the name of the Company, for which steps are being taken to execute the conveyance deed. Consideration of the above properties were paid in full by the Company and the properties are in the possession of the Company.

(c) Exchange differences comprise Rs. (76) [31st March, 2017: Rs. (291)] being capitalisation of exchange differences on long term foreign currency monetary items relating to Property, plant and equipment and Rs. (531) [31st March, 2017: Rs. (641)] being adjustments on account of exchange fluctuations relating to Property, plant and equipment of foreign operations.

(d) Refer to Note 33 for information relating to Property, plant and equipment pledged as security by the Company.

(e) Refer to Note 42(a) for disclosure of contractual commitments for the acquisition of Property, plant and equipment.

(f) The Net Carrying Amount of Plant and Equipment as on 31st March, 2018 includes ToolsRs. 7,325 (31st March, 2017:Rs. 9,099).

* Amount is below the rounding off norm adopted by the Company.

(a) Exchange differences comprise adjustments on account of exchange fluctuation to Intangible assets of foreign operations.

(b) Refer to Note 33 for information relating to Intangible assets pledged as security by the Company.

(c) Refer to Note 42(a) for disclosure of contractual commitments for the acquisition of Intangible assets.

* Amount is below the rounding off norm adopted by the Company.

(a) Nil (31st March, 2017: 1,792) Equity Shares of Shree Jagannath Expressways Private Limited were pledged in favour of Axis Trustee Services Ltd., Security Trustee for the benefit of consortium of lending Banks.

(b) 1,35,98,640 (31st March, 2017:1,35,98,640) Equity Shares of Raichur Sholapur Transmission Company Private Limited are pledged in favour of IDBI Trusteeship Services Limited, Security Trustee for the benefit of Axis Bank Limited (DIFC Branch), Lender.

(c) These investments in equity instruments are not held for trading. Instead, they are held for medium or long-term strategic purpose. Upon the application of Ind AS 109, the Company has chosen to designate these investments in equity instruments as at FVOCI as the management believe that this provides a more meaningful presentation for medium or long-term strategic investments, than reflecting changes in fair value immediately in profit and loss.

(d) Additional Disclosures relating to Investments in Subsidiaries, Joint Ventures and Associates.

* Amount is below the rounding off norm adopted by the Company.

@ Earmarked for payment of unclaimed dividend.

(a) Held as Margin money against bank guarantee.

# Comprise Rs. Nil (31st March, 2017: Rs.858) received under arbitration award which is earmarked for utilisation as per terms of the Arbitration award/ agreement and Rs.81 (31st March, 2017: Rs.50) being receipt against a specific contract to be utilised for the said project execution and for general overheads and business expenses of the Company.

(i) Rights, preferences and restrictions attached to shares

The Company has one class of equity shares having a par value of Rs.2/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, 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 to their shareholding.

(iii) The Company has allotted 36,09,261 convertible equity warrants at a price of Rs.554.13 each on 15th May, 2018 to its Promoter Group Companies, in accordance with the SEBI Guidelines and Companies Act, 2013, upon receipt of upfront payment of 25% i.e. Rs.5,000 lakhs of total consideration (of Rs.20,000 lakhs) as per the terms of preferential issue.

(iv) The Company has raised Rs.40,220 lakhs through QIP issue by allotting 70,68,490 Equity Shares of Rs.2 each at a premium of Rs.567 per share on 23rd May, 2018 in accordance with SEBI Guidelines and Companies Act, 2013. The QIP issue opened on 16th May, 2018 and closed on 19th May, 2018.

Nature of security and other terms

a) Debentures

i) 11.60% (31st March, 2017: 11.60%) Non-Convertible Debentures of Face value of Rs. 10,00,000 each amounting to Rs. 4,961 (31st March, 2017: Rs. 4,945) are secured by way of First pari passu charge on specified immovable Property, Plant and Equipment (Fixed Assets) & First charge on specified movable Property, Plant and Equipment (Fixed Assets) of the Company. The Principal is repayable by way of bullet payment at the end of 10th year with put & call option at the end of 7th year from the date of disbursement being 12th February, 2013. If the put & call option is not exercised at the end of the 7th year, the coupon shall be 10.80% per annum from the beginning of the 8th year.

ii) 11.15% (31st March, 2017: 11.15%) Non-Convertible Debentures of Face Value of Rs. 10,00,000 each amounting to Rs. 2,440 (31st March, 2017: Rs. 2,426) are secured by way of First pari passu charge on specified immovable Property, Plant and Equipment (Fixed Assets) & First charge on specified movable Property, Plant and Equipment (Fixed Assets) of the Company. The Principal is repayable on 28th July, 2021 i.e. 7th year from the date of allotment being 28th July, 2014.

iii) 11.15% (31st March, 2017: 11.15%) Non-Convertible Debentures of Face Value of Rs.10,00,000 each amounting to Rs.7,321 (31st March, 2017: Rs.7,279) are secured by way of First pari passu charge on specified immovable Property, Plant and Equipment (Fixed Assets) & First charge on specified movable Property, Plant and Equipment (Fixed Assets) of the Company. The Principal is repayable on 9th July, 2021 i.e. 7th year from the date of allotment being 9th July, 2014.

iv) 11.75% (31st March, 2017: 1 1.75%) Non-Convertible Debentures of Face value of Rs.10,00,000 each amounting to Rs.490 (31st March, 2017: Rs.487) are secured by way of First pari passu charge on specified immovable Property, Plant and Equipment (Fixed Assets) & First charge on specified movable Property, Plant and Equipment (Fixed Assets) of the Company. The Principal is repayable on 28th March, 2021 i.e. 7th year from the date of allotment being 28th March, 2014.

v) 11.75% (31st March, 2017: 1 1.75%) Non-Convertible Debentures of Face value of Rs.10,00,000 each amounting to Rs.2,449 (31st March, 2017: Rs.2,435) are secured by way of First pari passu charge on specified immovable Property, Plant and Equipment (Fixed Assets) & First charge on specified movable Property, Plant and Equipment (Fixed Assets) of the Company. The Principal is repayable on 18th March, 2021 i.e. 7th year from the date of allotment being 18th March, 2014.

vi) 11.75% (31st March, 2017: 1 1.75%) Non-Convertible Debentures of Face value of Rs.10,00,000 each amounting to Rs.2,939 (31st March, 2017: Rs.2,922) are secured by way of First pari passu charge on specified immovable Property, Plant and Equipment (Fixed Assets) & First charge on specified movable Property, Plant and Equipment (Fixed Assets) of the Company. The Principal is repayable on 11th March, 2021 i.e. 7th year from the date of allotment being 11th March, 2014.

vii) 10.75% (31st March, 2017: 10.75%) Non-Convertible Debentures of Face value of '' 10,00,000 each amounting to Rs.7,387 (31st March, 2017: Rs.7,365) are secured by way of First pari passu charge on specified immovable Property, Plant and Equipment (Fixed Assets) & First charge on specified movable Property, Plant and Equipment (Fixed Assets) of the Company. The Principal is repayable in three annual Instalments at the end of 8th year -30%, 9th year -30% & 10th year -40% with put & call option at the end of 7th year from the date of allotment being 6th December, 2012 and 31st December, 2012.

viii) 11.75% (31st March, 2017: 1 1.75%) Non-Convertible Debentures of Face value of Rs.10,00,000 each amounting to Rs.3,923 (31st March, 2017: '' 3,901) are secured by way of First pari passu charge on specified immovable Property, Plant and Equipment (Fixed Assets) & First charge on specified movable Property, Plant and Equipment (Fixed Assets) of the Company. The Principal is repayable on 26th December, 2020 i.e. 7th year from the date of allotment being 26th December, 2013.

ix) 11% (31st March, 2017: 11%) Non-Convertible Debentures of Face value of Rs.10,00,000 each amounting to '' 7,413 (31st March, 2017: Rs.7,392) are secured by First Charge by way of mortgage and charge on the specified immovable Properties/ Assets and first exclusive charge on specified movable Properties/Assets of the Company. The Principal is repayable in three Annual Instalments at the end of 8th year -30%, 9th year -30 % & 10th year -40% with put & call option at the end of 7th year from the date of allotment being 29th June, 2012.

x) 11.55% (31st March, 2017: 1 1.55%) Non-Convertible Debentures of Face Value of Rs. 10,00,000 each amounting to Rs.4,994 (31st March, 2017: '' 4,991) representing Current payables Rs.4,994 (31st March, 2017: Rs.Nil) are secured by way of First pari passu charge on specified immovable Property, Plant and Equipment (Fixed Assets) & First charge on specified movable Property, Plant and Equipment (Fixed Assets) of the Company. The Principal is repayable on 17th June, 2020 i.e. 5 years from the date of allotment being 17th June, 2015 subject to put & call option at the end of 3rd Year from the date of allotment.

xi) 11.55% (31st March, 2017: 1 1.55%) Non-Convertible Debentures of Face Value of Rs.10,00,000 each amounting to Rs.2,497 (31st March, 2017: Rs.2,496) representing Current payables Rs.2,497 (31st March, 2017: Rs.Nil) are secured by way of First pari passu charge on specified immovable Property, Plant and Equipment (Fixed Assets) & First charge on specified movable Property, Plant and Equipment (Fixed Assets) of the Company. The Principal is repayable on 17th June, 2020 i.e. 1790 days from the date of allotment being 24th July, 2015 with put & call option on 17th June, 2018.

xii) 12.15% (31st March, 2017: 12.15%) Non-Convertible Debentures of Face Value of Rs.10,00,000 each amounting to Rs.4,993 (31st March, 2017: Rs.4,989) are secured by way of First pari passu charge on specified immovable Property, Plant and Equipment (Fixed Assets) & First charge on specified movable Property, Plant and Equipment (Fixed Assets) of the Company. The Principal is repayable on 22nd January, 2020 i.e. 5 year from the date of allotment being 22nd January, 2015 with put option at the end of 3rd year from the date of allotment.

b) Rupee Term Loans from Banks

i) Term Loans from a Bank Rs.3,779 (31st March, 2017: Rs.2,539) including Current maturities Rs.1,142 (31st March, 2017: Rs.960) are secured by way of hypothecation / first and exclusive charge on assets purchased or to be purchased out of said loans. Repayable along with Interest ranging from 8.10% to 10.30% p.a (as on 31st March, 2018) in Monthly Instalments ranging from 1 to 59.

ii) Term Loans from a Bank Rs.326 (31st March, 2017: Rs. 458) including Current maturities '' 146 (31st March, 2017: Rs. 132) are secured by way of hypothecation/exclusive charge on assets purchased out of said loans. Repayable along with Interest 10.15% p.a (as on 31st March, 2018) in Monthly Instalments ranging from 25 to 26.

iii) Term Loan from a Bank Rs. 1,562 (31st March, 2017: Rs. 2,187) including Current maturities Rs. 625 (31st March, 2017: Rs. 624) is secured by way of exclusive charge on the plant, machinery and equipments purchased out of the said loan. Repayable along with Interest of Base Rate 0.15% p.a. (as on 31st March, 2018) in 10 equal quarterly Instalments.

iv) Term Loan from a Bank Rs. 875 (31st March, 2017: Rs. 1,375) including Current maturities Rs. 500 (31st March, 2017: Rs. 500) is secured by way of exclusive charge of specific equipments. Repayable along with Interest of Base Rate 0.50% p.a. (as on 31st March, 2018) in 7 equal quarterly Instalments.

v) Term Loans from a Bank Rs. 355 (31st March, 2017: Rs. 345) including Current maturities Rs. 115 (31st March, 2017: Rs. 95) are secured by way of hypothecation/exclusive charge on the assets financed. Repayable along with Interest ranging from 8.20% to 10.49% p.a (as on 31st March, 2018) in monthly Instalments ranging from 1 to 58.

vi) Term Loans from a Bank Rs. 465 (31st March, 2017: Rs. 354) including Current maturities Rs. 141 (31st March, 2017: Rs. 137) are secured by way of hypothecation/exclusive charge on the assets financed. Repayable along with Interest ranging from 8.05% to 10.75% p.a (as on 31st March, 2018) in monthly Instalments ranging from 2 to 60.

vii) Term Loans from a Bank Rs. 6 (31st March, 2017: Rs. 12) including Current maturities Rs. 3 (31st March, 2017: Rs. 6) are secured by way of hypothecation/exclusive charge on the assets financed. Repayable along with Interest 10.30% p.a (as on 31st March, 2018) in 24 Monthly Instalments.

viii) Term Loans from a Bank Rs. 30 (31st March, 2017: Rs. 43) including Current maturities Rs. 13 (31st March, 2017: Rs. 12) are secured by way of hypothecation/exclusive charge on assets purchased out of said loans. Repayable along with Interest ranging from 9.80% to 9.85% p.a. (as on 31st March, 2018) in Monthly Instalments ranging from 20 to 29.

c) Foreign Currency Term Loans from Banks

Foreign Currency Term Loan from a Bank Rs. 974 (31st March, 2017: Rs. 2,741) including Current maturities Rs. 974 (31st March, 2017:

Rs. 1,783) is secured by an exclusive charge over Moveable Fixed Assets purchased out of said loans. Repayable along with Interest of 6 month USD LIBOR 1.9% p.a. (as on 31st March, 2018) in one Half Yearly instalment on 19th September, 2018.

d) Term Loans from Financial Companies

i) Term Loans from a Financial Company Rs. 648 (31st March, 2017: Rs. 673) including Current maturities Rs. 148 (31st March, 2017: Rs. 118) are secured by an exclusive charge on the equipment purchased out of the said loans. Repayable along with Interest 9.50% (as on 31st March, 2018) in Monthly Instalments ranging from 45 to 48.

ii) Term Loans from a Financial Company Rs. 1,872 (31st March, 2017: Rs. Nil) including Current maturities Rs. 347 (31st March, 2017: Rs. Nil) are secured by an exclusive charge on the equipment purchased or to be purchased out of the said loans. Repayable along with Interest from 8.40% to 8.51% p.a (as on 31st March, 2018) in Monthly Instalments ranging from 51 to 58.

iii) Term Loans from a Financial Company Rs. 3,937 (31st March, 2017: Rs. Nil) are secured by an exclusive charge by way of mortgage of land and building for maintaining minimum security cover to 1.25 times of the Loan amount. Repayable along with Interest 10.50% (as on 31st March, 2018) in 20 quarterly Instalments.

iv) Term Loans from a Financial Company Rs. 102 (31st March, 2017: Rs. 71) including Current maturities Rs. 27 (31st March, 2017: Rs. 16) are secured by way of hypothecation/exclusive first charge on assets purchased out of said loans. Repayable along with Interest ranging from 8.32% to 10.25% p.a (as on 31st March, 2018) in Monthly Instalments ranging from 21 to 56.

v) Term Loans from a Financial Company Rs. 50 (31st March, 2017: Rs. Nil) including Current maturities Rs. 9 (31st March, 2017: Rs. Nil) are secured by way of exclusive charge on assets purchased out of said loans. Repayable along with Interest ranging from 8.00% to 8.50% p.a (as on 31st March, 2018) in Monthly Instalments ranging from 55 to 56.

e) Outstanding balances of borrowings as indicated in (a) to (d) above are inclusive of Current maturities or payables out of such borrowings which are disclosed in Note 14(c).

a) Debentures

12.15% (31st March, 2017: 12.15%) Non-Convertible Debentures of Face Value of Rs. 10,00,000 Each amounting to Rs. 2,500 (31st March, 2017: Rs. 2,497) are secured by way of First pari passu charge on specified immovable Property, Plant and Equipment (Fixed Assets) & First charge on specified movable Property, Plant and Equipment (Fixed Assets) of the Company.

b) Rupee Term Loans from Banks

i) Term Loans from Banks Rs. 253 (31st March, 2017: Rs. 508) are secured by an exclusive charge on assets acquired out of the said loans.

ii) Term Loans from Banks Rs. 161 (31st March, 2017: Rs. 87) are secured by an exclusive charge on the equipment acquired out of the said loans.

c) Foreign Currency Term Loans from Banks

i) Foreign Currency Term Loans from a Bank Rs. 1,257 (31st March, 2017: Rs. Nil) are secured by way of security as recited in (e)(i) below.

ii) Foreign Currency Term Loans from a Bank Rs. 892 (31st March, 2017: Rs. 1,397) are secured by way of security as recited in (e)(i) below.

iii) Foreign Currency Term Loans from a Bank Rs. 2,440 (31st March, 2017: Rs. 4,289) are secured by an exclusive charge on specific assets.

iv) Foreign Currency Term Loans from a Bank Rs. 398 (31st March, 2017: Rs. Nil) are secured by an exclusive charge on assets financed out of said loans.

d) Rupee Term Loans from Financial Companies

Term Loans from Financial Company Rs. 1,008 (31st March, 2017: Rs. Nil) are secured by an exclusive charge over the equipment acquired out of the said loan.

e) Working Capital Loans repayable on demand from Banks

i) Working Capital Rupee Loans from Banks Rs. 244,924 (31st March, 2017: Rs. 233,988) are secured by first charge by way of hypothecation on entire current assets including stocks, stores, trade receivables etc., second charge on movable Plant and Equipment (other than those which are exclusively charged in favour of the respective lenders) ranking pari passu amongst the Banks on the point of security, as also by second pari passu charge on specific immovable properties by deposit of title deeds / documents in India.

ii) Working Capital Foreign Currency Loans from Banks Rs. 2,620 (31st March, 2017: Rs. 4,285) are secured by assignment of receivables at overseas branches.

iii) Working Capital Foreign Currency Loans from Banks Rs. 15,008 (31st March, 2017: Rs. Nil) are secured by way of security as recited in (e)(i) above.

a) Other payables includes:

i) 11.55% (31st March, 2017: 1 1.55%) Non-Convertible Debentures of Face Value of Rs. 10,00,000 Each amounting to Rs. 4,994 (31st March, 2017: Rs. Nil). The Principal is repayable on 17th June, 2020 i.e. 5 years from the date of allotment being 17th June, 2015 subject to put & call option at the end of 3rd Year from the date of allotment i.e. with put & call option on 17th June, 2018.

ii) 11.55% (31st March, 2017 : 11.55%) Non-Convertible Debentures of Face Value of Rs. 10,00,000 Each amounting to Rs. 2,497 (31st March, 2017: Rs. Nil). The Principal is repayable on 17th June, 2020 i.e. 1790 days from the date of allotment being 24th July, 2015 with put & call option on 17th June, 2018.

a) Defined Contribution Plans

The Company has recognised, in the Statement of Profit and Loss for the year ended 31st March, 2018 an amount of Rs. 1,109 (31st March, 2017: Rs. 1,131) as expenses under defined contribution plans.

b) Post Employment Defined Benefit Plans

i) a) Gratuity (Funded)

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. As per the scheme, the Gratuity Trust fund managed by the Trust, makes payment to vested employees on retirement, death, incapacitation or termination of employment, of an amount based on the respective employees eligible salary (half month''s salary) depending upon the tenure of service subject to a revised maximum limit of amount payable under Payment of Gratuity Act. Vesting occurs upon completion of five years of service. Liabilities with regard to the Gratuity plan are determined by actuarial valuation as set out in Note 1.10, based upon which, the Company makes contribution to the Gratuity fund.

b) Gratuity (Unfunded)

The Company provides for gratuity, a defined benefit retirement plan covering employees of a foreign branch. As per the scheme, the Company makes payment to vested employees on retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s eligible salary (one month''s salary) depending upon the tenure of service subject to a maximum limit of twenty month''s salary. Vesting occurs upon completion of one year of service. Liabilities with regard to the unfunded Gratuity plan are determined by actuarial valuation as set out in Note 1.10.

ii) End of Service Benefit / Severance Pay [ESB/SP] (Unfunded)

The Company provides for End of Service Benefit / Severance Pay (unfunded) defined benefit retirement plans for certain foreign branches covering eligible employees. As per the schemes, the Company makes payment to vested employees on retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s eligible salary for specified number of days (ranging from five days to actual period of service rendered) depending upon the tenure of service. Vesting occurs upon completion of one year of service (except for a foreign branch where there is no vesting period). Vesting period is not applicable in case of death or disability in certain foreign branches. Liabilities with regard to the End of Service Benefit / Severance Pay Scheme are determined by actuarial valuation as set out in Note 1.10.

c) Other long term employee benefit plan

Leave Encashment Scheme [LES] (Unfunded)

The Company provides for accumulated leave benefit for eligible employees payable at the time of retirement of service subject to maximum of ninety / one hundred twenty days (for India and a foreign branch) and in case of other foreign branches, actual number of days outstanding based on last drawn salary. Liabilities with regard to leave encashment scheme are determined by actuarial valuation as set out in Note 1.10.

d) Risk Exposure

Aforesaid post-employment defined benefit plans typically expose the Company to actuarial risks, most significant of which are discount rate risk, salary escalation risk and demographic risk.

Discount Rate Risk

The Company is exposed to the risk of fall in discount rate. A fall in discount rate will eventually increase the ultimate cost of providing the above benefit thereby increasing the value of the liability.

Salary Escalation Risk

The present value of defined benefit plan liability is calculated by reference to the future salaries of plan participant. An increase in the salary of plan participants will increase the plan liability.

Demographic Risk

In the valuation of liability certain demographic (mortality and attrition rates) assumptions are made. The Company is exposed to this risk to the extent of actual experience eventually being worse compared to the assumptions thereby causing an increase in the plan liability.

The sensitivity analysis above has been determined based on reasonably possible changes of the respective assumptions occurring at the end of the year and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the same method used to calculate the liability recognised in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous year.

(ix) Provident Fund

Provident Fund contributions in respect of certain employees are made to Trust administered by the Company and such Trust invests funds following a pattern of investments prescribed by the Government. Both the employer and employee contribute to this Fund and such contributions together with interest accumulated thereon are payable to employees at the time of their separation from the Company or retirement, whichever is earlier. The benefit vests immediately on rendering of services by the employee. The interest rate payable to the members of the Trust is not lower than the rate of interest declared annually by the Government under the Employees'' Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, on account of interest is to be made good by the Company.

The Actuary has carried out actuarial valuation of interest rate guarantee obligations as at the Balance Sheet date using Projected Unit Credit Method and Deterministic Approach as outlined in the Guidance Note 29 issued by the Institute of Actuaries of India. Based on such valuation, there is no future anticipated shortfall with regard to interest rate guarantee obligation of the Company as at the balance sheet date. Further during the year, the Company''s contribution of '' 410 (F.Y. 2016-17: Rs. 399) to the Provident Fund Trust, has been expensed under "Contribution to Provident and Other Funds". Disclosures given hereunder are restricted to the information available as per the Actuary''s report.

Note 2: Income tax expense

This Note provides an analysis of the Company''s income tax expense and how the tax expense is affected by non-assessable and non-deductible items. It also explains significant estimates made in relation to the Company''s tax positions.

Level I: Level I hierarchy includes financial instruments measured using quoted prices.This includes listed equity instruments, Mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The Mutual funds are valued using the closing NAV.

Level II: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level II.

Level III: If one or more of the significant inputs is not based on observable market data, the instrument is included in level III.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

1. The fair values of investment in quoted equity instruments is based on the current market price of respective instruments as at the Balance Sheet date.

2. The fair values of investments in mutual fund units is based on the net asset value (''NAV'') as stated by the issuers of these mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which the issuer will issue further units of mutual fund and the price at which issuers will redeem such units from the investors.

3. The fair values of the derivative financial instruments have been received from the respective Banks which has been determined by using valuation techniques with market observable inputs at the end of each reporting dates.

The carrying amount of financial assets and liabilities other than borrowings measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled. The fair values for the same were calculated based on cash flows discounted using a current lending rate. They are classified as level III fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.

The fair values of borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level III fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

Note 3: Financial Risk Management

The Company''s business activities are exposed to a variety of financial risks, namely liquidity risk, market risks and credit risk. The Company''s senior management has the overall responsibility for establishing and governing the Company''s financial risk management framework. The Company has constituted a Risk Management Committee, which is responsible for developing and monitoring the Company''s financial risk management policies. The Company''s financial risk management policies are established to identify and analyse the risks faced by the Company, to set and monitor appropriate controls.

(A) Credit risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, bank balances, loans, investments and other financial assets.

At each reporting date, the Company measures loss allowance for certain class of financial assets based on historical trend, industry practices and the business environment in which the Company operates.

Trade receivables includes Government and Non-Government customers and diversified in various construction verticals and geographies. All trade receivables are reviewed and assessed on a quarterly basis.

Credit risk arising from investments, derivative financial instruments and balances with banks is limited because the counterparties are banks and recognised financial institutions with high credit worthiness.

(i) Excessive risk concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company''s performance to developments affecting a particular industry.

In order to avoid excessive concentrations of risk, the Company focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed accordingly.

(ii) Allowance for expected credit losses

The Company measures Expected Credit Loss (ECL) for financial assets based on historical trend, industry practices and the business environment in which the Company operates.

For financial assets, a credit loss is the present value of the difference between:

(a) the contractual cash flows that are due to an entity under the contract; and

(b) the cash flows that the entity expects to receive

The Company recognises in profit and loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date in accordance with Ind AS 109.

Judgements are required in assessing the recoverability of overdue trade receivables and determining whether a provision against those receivables is required. Factors considered include the creditworthiness of the counterparty, the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.

In determination of the allowances for credit losses on trade receivables, the Company has used a practical expedience by computing the expected credit losses based on ageing matrix, which has taken into account historical credit loss experience and adjusted for forward looking information.

(B) Liquidity risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company has an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity management requirements. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents and short term investments in mutual funds. The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st March, 2018 and 31st March, 2017. The Company also has adequate credit facilities agreed with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner.

(C) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk.

The sensitivity analyses in the following sections relate to the position as at 31st March, 2018 and 31st March, 2017.

The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant. The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31st March, 2018 and 31st March, 2017.

a) Interest rate risk: Interest rate risk is measured by using cash flow sensitivity for changes in variable interest rate. Any movement in the reference rates could have an impact on the Company''s cash flow as well as cost. The management is focused towards reducing the volatility due to interest rates, which is reflected in proportion of variable interest rate borrowing to total borrowing.

Working Capital Loan from Banks which are linked with one year fixed Marginal Cost of funds based Lending Rate (MCLR) of respective Banks are considered as Fixed rate borrowings and Working Capital Loans from Banks which are linked with base rates of respective Banks are considered as Variable rate Borrowings.

b) Foreign currency risk: Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in foreign exchange rates. The Company generally enters into forward exchange contracts to hedge against its foreign currency exposures relating to the recognised underlying liabilities / assets and firm commitments. The Company''s policy is to hedge its exposures other than natural hedge. The Company does not enter into any derivative instruments for trading or speculative purposes.

c) Other price risk: The Company''s exposure to securities price risk arises from investments in mutual funds and equity instruments held by the Company and classified in the balance sheet as FVPL and FVOCI respectively.

Sensitivity: The sensitivity of other comprehensive income to changes in BSE Index of the Company''s equity instruments as at year end:

Note 4: Capital Management

(a) Risk management

The Company''s objectives when managing capital are to

- safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The Management regularly monitors capital on the basis of the following gearing ratio:

Net debt (total borrowings net of cash and cash equivalents) divided by Total ''equity'' (as shown in the balance sheet).

The debt capital is subject to usual debt covenants, such as timely servicing of debts, maintaining adequate security coverage and appropriate gearing ratios etc. as may be specified by the lenders from time to time. The Company has complied with these covenants during the year.

Note 5: Segment Information

Description of segments and principal activities

The Company''s chief operating decision making group [CODMG] (as set out in note 1.2), examines the Company''s performance both from business, geographical perspective and has identified two reportable business segments viz. Construction and Others which comprises oil drilling services, real estate and hiring of plant and equipment. Segment disclosures are consistent with the information provided to CODMG which primarily uses operating profit/ loss of the respective segments to assess their performance. CODMG also periodically receives information about the segments revenue and assets.

Note 6: Contingent Liabilities - Attributable to Claims against the Company not acknowledged as debts:

In respect of the contingent liabilities set out below, pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timings of cash outflows, if any:

(A) Amount of credit facilities utilised aggregating Rs. 53,472 (31st March, 2017: Rs. 68,665) against corporate guarantee given to banks of Rs. 76,315 (31st March, 2017: Rs. 96,669) in respect of an associate; and

(B) In respect of an another Associate Company, corporate guarantee given to the lender equivalent to the outstanding amount as at 31st March, 2018 for repayment of facility given amounting to USD 353 lakhs (equivalent Rs. 22,977), has been provided by the Company along with its others consortium members. In terms of the Deed of Guarantee, guarantors'' obligation are joint and several.

Note 7 Arbitration / Legal proceedings are on in respect of company''s claims on certain completed / suspended contracts, against which certain customers have also raised counter claims on the company. Pending disposal of the proceedings, no effect has been given in these financial statements for such matters.

Note 8: The Income Tax Act (the Act) has been amended to include the provisions of Income Computation and Disclosure Standards (ICDS) in the sections 43AA and 43CB, with retrospective effect from 1st April 2016, which inter alia makes foreign currency translation reserves (FCTR) and retention monies on construction contracts taxable for the Company. The Company already has a Writ Petition challenging the validity of ICDS pending adjudication by the Hon''ble High Court of Calcutta, while the Hon''ble High Court of Delhi has already rendered the ICDS null and void and ''non-est'' in law in the Chamber of Tax Consultants Case (2017).

Further, based on legal opinion of a Senior Advocate, the Company is of the view t hat the changes in the Act are not applicable consequent to the ruling of the Delhi High Court as above, and also referring to various relevant judgements of the Hon''ble Supreme Court.

In view of the above, the Company has not considered the aforesaid balances for computation of tax expenses in these financial statements, and will continue to dispute their taxability with the relevant authorities.

Note 9: As on 31st March, 2018 in respect of trade receivables of Rs. 43,890 lakhs [included under Note 7(b)] and claims recoverable of Rs. 1,596 lakhs from customers against various project sites [included under Note 7(f)], where the amount is outstanding for a long period and based on its discussions and correspondence with those customers, the management is of the opinion that at this stage these are good and recoverable.

Inventories of Rs. 2,914 lakhs (included under Note 6) as on 31st March, 2018 at certain completed project sites are good and will be transferred for onward use in other projects.

In respect of the retention money due from customer, it is receivable only after the contract is completed, certification of final bill by customer and after expiry of defect liability period. In the opinion of the company the retention amounts of Rs. 21,540 lakhs due from customer of certain completed contracts (included under Note 9) as on 31st March, 2018 are good and recoverable. Management regularly reviews the old outstanding trade receivables, Claims recoverable and Retention monies due from customers as on 31st March, 2018 and in the opinion of the management, these are good and recoverable.

Retention money due from customer and unbilled revenue (included under Note 9) as at 31st March, 2018 have been considered as ''other current assets'' as per Ind AS-32. Further, in the opinion of the management, there is lack of clarity in respect of application of the provisions of Ind AS with regard to fair value of these items and there has not been any authoritative clarification / interpretation in this regard. This is the consistent practice being followed by the Company and the industry peers.

On this issue, one of the joint auditors is in agreement with the views of the management. The above reasons explain the qualification by the other Joint Auditor on this issue in their audit report on the company''s financial results for the year ended 31st March, 2018.

Note 10: Arbitration proceedings are on in respect of certain Trade Receivables [included under Note 7(b)], Unbilled Revenue and Retention Money due from a customer (included under Note 9) which is under legal proceedings including liquidation proceedings amounting to Rs. 5,083 lakhs (net), Rs. 4,657 lakhs and Rs. 615 lakhs respectively as at 31st March, 2018. There has not been any development in this regard during the current year and accordingly till the disposal of legal proceedings, the company considers the above amount as good and recoverable. The said reasons explain the qualification by both the Joint Auditors'' on the same issue in their Audit reports on the Company''s financial results for the year ended 31st March, 2018. Further, there is inventory amounting to Rs. 2,915 lakhs (included under Note 6) also lying at such project site as on date and are good as per Management''s opinion.

In view of above, we are unable to agree with the auditors'' comments on changes in the figures of Trade Receivables, Unbilled Revenue, Retention Money, Inventories etc. and the consequential impact on profit for the year/quarter and balance of other equity at the year-end.

There are advances to suppliers related to certain completed project sites, amounting to Rs. 1,063 lakhs (included under Note 9) on which the company is in active pursuit and confident of recovery / settlement of these advances within a reasonable period of time. On this issue, one of the joint auditors is in agreement with the views of the management. The above reasons explain the qualification by the other Joint Auditor on this issue in their audit report on the company''s financial results for the year ended 31st March, 2018.

Note 11: The Company has provided for mark to market losses amounting to Rs. 33 (F.Y. 2016-17: Rs. 617) relating to derivative contracts.

Note 12: (a) Recognition of unbilled revenue is based on Cost to Complete (CTC) estimates as per Percentage of Completion Method (POCM) under Ind AS-11 ''Construction Contracts''. This CTC is regularly reviewed and necessary changes are effected by the Management. Certification of unbilled revenue including final bills takes a long time from project to project by the customer. At this stage based on its discussion with the concerned customers, the Company feels that old unbilled revenue of Rs. 86,035 lakhs (included under Note 9) as on 31st March, 2018 will be billed and realised in due course, the records and documents for which are maintained at respective project sites spread across the country and also outside India.

Further on this issue, one of the joint auditors is in agreement with the views of the management. The above reasons explain the qualification by the other Joint Auditor on this issue in their audit report on the company''s financial results for the year ended 31st March, 2018.

(b) The Company is in the process of reconciling VAT liability (Refer Note 15 and Note 9 - "Statutory dues" and "Statutory advances") till 30th June, 2017. The impact of difference, if any, in such VAT liability, which the management does not expect to be significant, will be considered thereafter. On this issue, one of the joint auditors is in agreement with the views of the management. The above reasons explain the qualification by the other Joint Auditor on this issue in their audit report on the company''s financial results for the year ended 31st March, 2018.

(c) The Company, as per consistent practice followed, does not consider depreciation on properties, plants and equipment and borrowing cost as part of the project cost in the Cost to Complete (CTC) for determining contract turnover referred in Note 18 as per percentage of completion under Ind AS-11 "Contract Cost" for its various projects. The depreciation on Property Plant and Equipment etc. as also borrowing cost directly related to specific contracts is not material. However, in the Profit and Loss Statement, both depreciation and borrowing cost being the period cost are charged to revenue. The Management is of the opinion that not considering the depreciation as stated above and borrowing cost in the Cost to Complete (CTC) statement does not affect the calculation of Percentage of Completion Method (POCM) materially. On this issue, one of the joint auditors is in agreement with the views of the management. The above reasons explain the qualification by the other Joint Auditor on this issue in their audit report on the company''s financial results for the year ended 31st March, 2018.

(d) In respect of classification of certain current assets into non-current assets, the Company provides expected credit loss (ECL) on these current assets. The Company considers an average normal operating cycle for its operations though the operating cycle for all the projects are not uniform, the company has classified certain trade receivables [included under Note 7(b)], statutory advances pending assessment by relevant authorities (included under Note 9), security deposits [included under Note 7(f)] and other balances including those subject to arbitrations (included under Note 8 and Note 9), amounting to Rs. 8,370 lakhs, Rs. 25,137 lakhs, Rs. 1,885 lakhs and Rs. 17,257 lakhs respectively as current assets. On this issue, one of the joint auditors is in agreement with the views of the management. The above reasons explain the qualification by the other Joint Auditor on this issue in their audit report on the company''s financial results for the year ended 31st March, 2018.

c) Other Commitments

i) The Company has given, inter alia, the following undertakings in respect of Non-current Investments :

(a) To National Highways Authority of India, to hold together with its associates, other sponsors/ shareholders, not less than 26% of the issued and paid up equity share capital in Shree Jagannath Expressways Private Limited (SJEPL), an associate company, during construction period of the project being executed by SJEPL and two years thereafter. As at 31st March, 2018, the Company holds 2,600 (31st March, 2017: 2,600) equity shares of Rs. 10/- each fully paid up of SJEPL [Note 4(a)] representing 0.002% (31st March, 2017: 0.002%) of the total paid up equity share capital of SJEPL.

(b) To Long Term Transmission Customers, to hold together with its other sponsors/ shareholders, not less than 26% in the issued and paid up equity share capital of Raichur Sholapur Transmission Company Private Limited (RSTCPL), an associate company, up to 3rd July, 2019, i.e. a period of five years after Commercial Operation Date (achieved on 4th July, 2014) of the project being executed by RSTCPL. As at 31st March, 2018, the Company holds 2,66,64,000 (31st March, 2017: 2,66,64,000) equity shares of Rs. 10/- each fully paid up of RSTCPL [Note 4(a)] representing 33.33% (31st March, 2017: 33.33%) of the total paid up equity share capital of RSTCPL.

(c) To the lender of RSTCPL, an associate company, to hold together with its other sponsors/ shareholders, at least 51% of issued and paid up equity share capital, up to the final settlement date of facility given.

(d) To the lender of SJEPL, an associate company, to hold together with its associates and/or affiliates, other sponsors/ shareholders, the management and control, up to the final settlement date of facility given.

d) The Company has not entered into non-cancellable operating lease for office, warehouses and employee accommodation.

e) The Company has entered into cancellable operating lease for office, warehouses, employee accommodation and equipments. Tenure of leases generally vary between 6 months to 3 years. Terms of the lease include operating term for renewal, terms of cancellation, etc.

f) Lease payments in respect of (e) above are recognised in the statement of profit and loss under the heads ''Rent'' and ''Equipment Hire Charges'' in Note 24.

Note 13: The Company is in discussion with its customers on the impact of Goods and Service Tax on the contract terms and conditions for certain contracts and necessary adjustments, which in the opinion of the management will not be significant, would be made upon completion of such discussions.

Note 14: Amount subject to master netting arrangements but not offset:

The Company does not have any financial assets and financial liabilities subject to master netting arrangements but not offset in the respective financial years.

Note 15: Previous year''s figures are regrouped/ rearranged, where necessary, to conform to the current year''s presentation. Signatures to Notes 1 to 47.


Mar 31, 2017

COMPANY OVERVIEW

Simplex Infrastructures Limited ( ‘the Company’) is a diversified Infrastructure Company established in 1924 and executing projects in several verticals like Piling, Energy and Power, Building & Housing, Marine, Roads and Highways, Railways, Urban infrastructures etc. The Company is a Public Limited Company and has its Registered Office in Kolkata, India with Branch Offices in Delhi, Mumbai and Chennai in India & Overseas Branches in Qatar, Oman, Abu Dhabi, Dubai, Sri Lanka, Ethiopia, Saudi Arabia and Bangladesh. It caters to various industries such as cement, steel, aluminium, engineering, automobile, petro chemicals etc. The Company is listed in BSE Limited, National Stock Exchange of India Limited and the Calcutta Stock Exchange Limited.

1A Critical estimates and judgements

The preparation of the financial statements in conformity with Ind AS requires the Management to make estimates, judgement and assumptions which affect the reported amount of assets and liabilities as at the balance sheet date, reported amount of revenue and expenses for the year and disclosure of contingent asset and liabilities as at the balance sheet date.

The areas involving critical estimates or judgement are:

(i) Critical estimates

a) Measurement of defined benefit obligations - Note 21

b) Estimated useful life of intangible assets, property, plant and equipment - Note 1.3 and 1.4

c) Estimated fair value of financial instruments - Note 26

d) Recognition of revenue - Note 1.16

e) Provision for expected credit losses - Note 27

(ii) Significant Judgements

a) Designating financial asset / liability through fair value through profit or loss so as to reduce/eliminate accounting mismatch.

b) Probability of an outflow of resources to settle an obligation resulting in recognition of provision.

The estimates, judgement and assumptions used in the financial statements are based upon Management’s evaluation of relevant facts and circumstances and as at the date of financial statements. Accounting estimates could differ from period to period and accordingly appropriate changes in estimates are made as the management becomes aware of the changes. Actual results could differ from the estimates.

* Amount is below the rounding off norm adopted by the Company.

(a) Buildings include Rs.9 (31st March, 2016:Rs. 9; 1st April, 2015: Rs. 9) being the Gross Carrying Amount of a building erected on land taken on lease and depreciated over the period of lease which is less than the useful life of the asset.

(b) Buildings include four properties [Gross Carrying Amount and Net Carrying Amount Rs. 11 and Rs.10 respectively as at 31st March, 2017] located at New Delhi, conveyance deed in respect of which in the name of the Company are being delayed due to some technical reasons. Another property [Gross Carrying Amount and Net Carrying Amount Rs. 5 and Rs. 5 respectively as at 31st March, 2017] located at Mumbai which is not held in the name of the Company due to some technical reasons, for which steps are being taken to execute the conveyance deed. Consideration of the above properties were paid in full by the Company and the properties are in the possession of the Company.

(c) Exchange differences comprise Rs. (291) (31 st March, 2016 Rs. 178) being capitalisation of exchange differences on long term foreign currency monetary items relating to Property, plant and equipment and Rs. (641) (31st March, 2016: Rs. 1,044) being adjustments on account of exchange fluctuations relating to Property, plant and equipment in case of foreign operations.

(d) Refer to Note 33 for information relating to Property, plant and equipment pledged as security by the Company.

(e) Refer to Note 40 for disclosure of contractual commitments for the acquisition of Property, plant and equipment.

(f) Capital work-in-progress mainly comprises Plant and Equipment, Computers, Office Equipment, Furniture and Fittings yet to be installed.

(g) The Net Carrying Amount of Plant and Equipment as on 31st March, 2017 includes ToolsRs. 9,099 (31st March, 2016: Rs. 12,162) and deemed cost of Plant and Equipment as on 1st April, 2015 includesRs. 15,409.

* Amount is below the rounding off norm adopted by the Company.

(a) Ceased to be a Subsidiary Company and became an Associate during the financial year 2015-16.

(b) 1,792 (31st March, 2016: 1,792 ; 1st April, 2015: 1,792) Equity Shares of Shree Jagannath Expressways Private Limited are pledged in favour of Axis Trustee Services Ltd., Security Trustee for the benefit of consortium of lending Banks.

(c) 12,238,776 (31st March, 2016:12,238,776 ; 1st April, 2015: 12,238,776) Equity Shares of Raichur Sholapur Transmission Company Private Limited are pledged in favour of IDBI Trusteeship Services Limited, Security Trustee for the benefit of Axis Bank Limited (DIFC Branch), Lender.

(d) Refer Note 40(c) for certain undertakings given by the Company in respect of Non-current Investments.

(e) These investments in equity instruments are not held for trading. Instead, they are held for medium or long-term strategic purpose. Upon the application of Ind AS 109, the Company has chosen to designate these investments in equity instruments as at FVOCI as the management believe that this provides a more meaningful presentation for medium or long-term strategic investments, than reflecting changes in fair value immediately in profit or loss.

The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the FVOCI equity investments reserve within equity. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are de-recognised.

(f) During the year ended 31st March,2017, the Company sold a portion of its investment in Emami Limited, as this investment no longer suited the Company’s investment strategy. The shares sold had a fair value of Rs.530 and the Company made a realised gain of Rs.384 which is already included in other comprehensive income. This gain has been transferred to retained earnings.

(g) The Company has long term strategic investments in shares of Simplex Infrastructures Libya Joint Venture Co. (Simplex Libya), a subsidiary company, located in Libya which were being carried at cost amounting to Rs.387 in the separate financial statements of the Company till 31st March, 2015. As a result of continuing unfavourable political situation in Libya, cessation of business activities and other adverse factors, the net worth of Simplex Libya was fully eroded and prompted the Management to test impairment in the previous year. Their being no immediate prospect of resumption of business activities of Simplex Libya, the value in use is not determinable and the recoverable amount of the said investment was made based on assessment of the fair value of said investments by the Management.

After taking into consideration aforesaid adverse factors and associated uncertainties, the fair value or recoverable amount has been assessed at Rs.Nil and as a matter of prudence, the Company had recognised an impairment loss to the tune of Rs.387 in the previous year ended 31st March, 2016. The same has been disclosed under ‘Other Expense’ (Note 24) as provision for impairment loss in the statement of profit and loss.

@ Represents the holding percentage of the respective entities and does not indicate the effective percentage holding of the Company and its subsidiaries.

# Ceased to be a Subsidiary Company and became an Associate Company during the Financial Year 2015-16.

## Represents subsidiary of Simplex Infra Development Private Limited (formerly Simplex Infra Development Limited).

### Represents a Subsidiary of Simplex (Middle East) Limited formed during the Financial Year 2015-16.

A Associate company by way of direct share ownership to the extent of 0.0018 % and indirect share ownership through a subsidiary, SIDPL to the extent of 33.9982 %.

Note 2(a): Other Non-current financial assets

(a) Includes Rs.4 (31st March, 2016 : Rs.4, 1st April, 2015: Rs.1) held as Margin Money against bank guarantees.

(i) Transferred receivables

The carrying amounts of trade receivables include certain receivables, which as per arrangement with bank could be discounted. Under this arrangement, the Company has discounted the relevant receivables with the bank in exchange for cash and is prevented from selling or pledging the receivables. However, the Company retained late payment and credit risk. The Company therefore continues to recognise the transferred assets in their entirety in its balance sheet. The amount repayable under the arrangement presented as unsecured borrowing.

(ii) Trade receivables due by Private companies in which a director of the Company is a director.

Note 3(a) : Bank balances other than (iii) above

@ Earmarked for payment of unclaimed dividend.

(a) Held as Margin money against bank guarantee.

# Comprise Rs.858 received under arbitration award which is earmarked for utilisation as per terms of the Arbitration award/ agreement and Rs.50 being receipt against a specific contract to be utilised for the said project execution and for general overheads and business expenses of the Company.

(a) Transferred receivables (Unbilled Revenue)

The carrying amounts of unbilled revenue include certain receivables, which as per arrangement with bank could be discounted. Under this arrangement, the Company has discounted the relevant receivables with the bank in exchange for cash and is prevented from selling or pledging the receivables. However, the Company retained late payment and credit risk. The Company therefore continues to recognise the transferred assets in their entirety in its balance sheet. The amount repayable under the arrangement presented as unsecured borrowing.

(i) Rights, preferences and restrictions attached to shares

The Company has one class of equity shares having a par value of Rs.2/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, 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 to their shareholding.

(ii) Details of Equity Shares held by shareholders holding more than 5% of the aggregate shares in the Company

Nature and purpose of Reserves

Capital Reserve: Represents mainly amount out of forfeiture of equity shares and warrants for non-payment of call money and arisen pursuant to acquisition of additional interest in a Joint Venture.

Capital Redemption Reserve: Represents amount on redemption of Preference Shares and will be utilised as per the provisions of the Companies Act, 2013.

Securities Premium Reserve: The amount received from share holders in excess of face value of the equity shares is recognised in Securities Premium Reserve and will be utilised as per provisions of the Companies Act, 2013.

Debenture Redemption Reserve: The company is required to create a debenture redemption reserve out of the profits which will be utilised for the purpose of redemption of Debentures.

Contingency Reserve: Contingency Reserve is created out of Surplus in earlier year in the Statement of Profit and Loss for meeting future contingencies, if any.

Foreign Currency Monetary Item Translation Difference Account: Represents foreign exchange gain / loss arising on loans taken up to 31st March, 2016 and not routed through profit and loss. The cumulative amount is reclassified to the Statement of Profit and Loss over the balance period of such non-current asset/liability.

General Reserve: The Company has transferred a portion of the net profit of the Company before declaring dividend to general reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013. General Reserve will be utilised as per provisions of the Companies Act, 2013.

FVOCI - Equity Instruments: The Company has elected to recognise changes in the fair value of certain investments in equity securities through other comprehensive income. These changes are accumulated within the FVOCI - Equity Investments reserve within equity. Transfer of amounts from this reserve to retained earnings are effected when the relevant equity securities are de-recognised.

Foreign Currency Translation Reserve: Exchange differences arising on translation of the foreign operations are recognised in other comprehensive income and accumulated in a Foreign Currency Translation Reserve within equity. The cumulative amount of Foreign Currency Translation Reserve is reclassified to profit or loss when the net investment is disposed-off.

Nature of security and other terms

a) Bonds / Debentures

i) 11.60% (31st March, 2016: 11.60% & 1st April, 2015: 11.10%) Non-Convertible Debentures of Face value of Rs.10,00,000 each amounting to Rs.4,945 (31st March, 2016: Rs.4,931 & 1st April, 2015: Rs.4,918) are secured by way of First pari passu charge on specified immovable Property, plant and equipment (Fixed Assets) & First charge on specified movable Property, plant and equipment (Fixed Assets) of the Company. The Principal is repayable by way of bullet payment at the end of 10th year with put & call option at the end of 7th year from the date of disbursement being 12th February, 2013. If the put & call option is not exercised at the end of the 7th year, the coupon shall be 10.80% per annum from the beginning of the 8th year.

ii) 11.15% (31st March, 2016:11.15% & 1st April, 2015: 11.15%) Non-Convertible Debentures of Face Value of Rs.10,00,000 Each amounting to Rs.2,426 (31st March, 2016: Rs.2,413 & 1st April, 2015: Rs.2,402) are secured by way of First pari passu charge on specified immovable Property, plant and equipment (Fixed Assets) & First charge on specified movable Property, plant and equipment (Fixed Assets) of the Company. The Principal is repayable on 28th July,2021 i.e. 7th year from the date of allotment being 28th July, 2014.

iii) 11.15% (31st March, 2016: 11.15% & 1st April, 2015: 11.15%) Non-Convertible Debentures of Face Value of Rs.10,00,000 Each amounting to Rs.7,279 (31st March, 2016: Rs.7,241 & 1st April, 2015: Rs.7,207) are secured by way of First pari passu charge on specified immovable Property, plant and equipment (Fixed Assets) & First charge on specified movable Property, plant and equipment (Fixed Assets) of the Company. The Principal is repayable on 9th July, 2021 i.e. 7th year from the date of allotment being 9th July, 2014.

iv) 11.75% (31st March, 2016: 11.75% & 1st April, 2015: 11.25%) Non-Convertible Debentures of Face value of Rs.10,00,000 each amounting to Rs.487 (31st March, 2016: Rs.484 & 1st April, 2015: Rs.482) are secured by way of First pari passu charge on specified immovable Property, plant and equipment (Fixed Assets) & First charge on specified movable Property, plant and equipment (Fixed Assets) of the Company. The Principal is repayable on 28th March, 2021 i.e. 7th year from the date of allotment being 28th March, 2014.

v) 11.75% (31st March, 2016: 11.75% & 1st April, 2015: 11.25%) Non-Convertible Debentures of Face value of Rs.10,00,000 each amounting to Rs.2,435 (31st March, 2016 : Rs.2,423 & 1st April, 2015: Rs.2,412) are secured by way of First pari passu charge on specified immovable Property, plant and equipment (Fixed Assets) & First charge on specified movable Property, plant and equipment (Fixed Assets) of the Company. The Principal is repayable on 18th March, 2021 i.e. 7th year from the date of allotment being 18th March, 2014.

vi) 11.75% (31st March, 2016: 11.75% & 1st April, 2015: 11.25%) Non-Convertible Debentures of Face value of Rs.1,000,000 each amounting to Rs.2,922 (31st March, 2016: Rs.2,908 & 1st April, 2015: Rs.2,894) are secured by way of First pari passu charge on specified immovable Property, plant and equipment (Fixed Assets) & First charge on specified movable Property, plant and equipment (Fixed Assets) of the Company. The Principal is repayable on 11th March, 2021 i.e. 7th year from the date of allotment being 11th March, 2014 .

vii) 10.75% (31st March, 2016: 10.75% & 1st April, 2015: 10.75%) Non-Convertible Debentures of Face value of Rs.1,000,000 each amounting to Rs.7,365 (31st March, 2016: Rs.7,344 & 1st April, 2015: Rs.7,325) are secured by way of First pari passu charge on specified immovable Property, plant and equipment (Fixed Assets) & First charge on specified movable Property, plant and equipment (Fixed Assets) of the Company. The Principal is repayable in three annual Installments at the end of 8th year - 30% , 9th year - 30% & 10th year - 40% with put & call option at the end of 7th year from the date of allotment being 6th December, 2012 and 31st December, 2012.

viii) 11.75% (31st March, 2016: 11.75% & 1st April, 2015: 11.25%) Non-Convertible Debentures of Face value of Rs.1,000,000 each amounting to Rs.3,901 (31st March, 2016: Rs.3,881 & 1st April, 2015: Rs.3,863) are secured by way of First pari passu charge on specified immovable Property, plant and equipment (Fixed Assets) & First charge on specified movable Property, plant and equipment (Fixed Assets) of the Company. The Principal is repayable on 26th December, 2020 i.e. 7th year from the date of allotment being 26th December, 2013 .

ix) 11% (31st March, 2016: 11% & 1st April, 2015: 11%) Non-Convertible Debentures of Face value of Rs.1,000,000 each amounting to Rs.7,392 (31st March, 2016: Rs.7,373 & 1st April, 2015: Rs.7,357) are secured by First Charge by way of mortgage and charge on the specified immovable and movable Properties/Assets of the Company. The Principal is repayable in three Annual Installments at the end of 8th year - 30%, 9th year - 30% & 10th year - 40% with put & call option at the end of 7th year from the date of allotment being 29th June, 2012.

x) 11.55% (31st March, 2016: 11.25% & 1st April, 2015: Nil) Non-Convertible Debentures of Face Value of Rs.10,00,000 Each amounting to Rs.4,991 (31st March, 2016: Rs.4,989 & 1st April, 2015: Rs.Nil) are secured by way of First pari passu charge on specified immovable Property, plant and equipment (Fixed Assets) & First charge on specified immovable & specified movable Property, plant and equipment (Fixed Assets) of the Company. The Principal is repayable on 17th June, 2020 i.e. 5 years from the date of allotment being 17th June, 2015 subject to put & call option at the end of 3rd Year from the date of allotment.

xi) 11.55% (31st March, 2016: 11.25% & 1st April, 2015: Nil) Non-Convertible Debentures of Face Value of Rs.10,00,000 Each amounting to Rs.2,496 (31st March, 2016: Rs.2,495 & 1st April, 2015: Rs.Nil) are secured by way of First pari passu charge on specified immovable Property, plant and equipment (Fixed Assets) & First charge on specified immovable & specified movable Property, plant and equipment (Fixed Assets) of the Company. The Principal is repayable on 17th June, 2020 i.e. 1790 days from the date of allotment being 24th July, 2015 with put & call option on 17th June, 2018.

xii) 12.15% (31st March, 2016:12.15% & 1st April, 2015: 11.85%) Non-Convertible Debentures of Face Value of Rs.10,00,000 Each amounting to Rs.4,989 (31st March, 2016: Rs.4,986 & 1st April, 2015: Rs.4,983) are secured by way of First pari passu charge on specified immovable Property, plant and equipment (Fixed Assets) & First charge on specified movable Property, plant and equipment (Fixed Assets) of the Company. The Principal is repayable on 22nd January, 2020 i.e. 5 year from the date of allotment being 22nd January, 2015 with put & call option at the end of 3rd year from the date of allotment .

b) Rupee Term Loans from Banks

i) Term Loan from a Bank Rs.1,563 (31st March, 2016: Rs.2,139 & 1st April, 2015: Rs.Nil) is secured by way of exclusive charge on the plant, machinery and equipment’s purchased out of the said Loan. Repayable along with Interest of Base Rate 0.15% p.a. (as on 31st March, 2017) in 10 equal quarterly Installments.

ii) Term Loans from a Bank Rs.326 (31st March, 2016: Rs.458 & 1st April, 2015: Rs.Nil) are secured by way of hypothecation/exclusive charge on assets purchased out of said loans. Repayable along with Interest 10.15% p.a (as on 31st March, 2017) in monthly Installments ranging from 25 to 26.

iii) Term Loan from a Bank Rs.875 (31st March, 2016: Rs.1,375 & 1st April, 2015: Rs.1,875) is secured by way of exclusive hypothecation of specific equipments. Repayable along with Interest of Base Rate 0.50% p.a. (as on 31st March, 2017) in 8 equal quarterly Installments.

iv) Term Loans from a Bank Rs.31 (31st March, 2016: Rs.43 & 1st April, 2015: Rs.22) are secured by way of hypothecation/exclusive charge on assets purchased out of said loans. Repayable along with Interest ranging from 9.80% to 9.85% p.a. (as on 31st March, 2017) in Monthly Installments ranging from 20 to 29.

v) Term Loans from a Bank Rs.250 (31st March, 2016: Rs.182 & 1st April, 2015: Rs.139) are secured by way of hypothecation/ exclusive charge on the assets financed. Repayable along with Interest ranging from 8.74% to 10.49% p.a (as on 31st March, 2017) in monthly Installments ranging from 01 to 47.

vi) Term Loans from a Bank Rs.1,579 (31st March, 2016: Rs.2,290 & 1st April, 2015: Rs.1,320) are secured by way of hypothecation/ exclusive charge on assets purchased out of said loans. Repayable along with Interest ranging from 9.30% to 10.30% p.a (as on 31 March, 2017) in Monthly Installments ranging from 01 to 44.

vii) Term Loans from a Bank Rs.217 (31st March, 2016: Rs.244 & 1st April, 2015: Rs.315) are secured by way of hypothecation/ exclusive charge on the assets financed. Repayable along with Interest ranging from 8.50% to 10.75% p.a (as on 31st March, 2017) in monthly Installments ranging from 2 to 48.

viii) Term Loans from a Bank Rs.6 (31st March, 2016: Rs.11 & 1st April, 2015: Rs.26) are secured by way of hypothecation/exclusive charge on the assets financed. Repayable along with Interest 10.30% p.a (as on 31st March, 2017) in 24 monthly Installments.

ix) Term Loan from a Bank Rs.Nil (31st March, 2016: Rs.Nil & 1st April, 2015: Rs.99) was secured by an exclusive charge on assets purchased with the loan fund.

c) Foreign Currency Term Loans from Banks

Foreign Currency Term Loan from a Bank Rs.958 (31st March, 2016: Rs.2,781 & 1st April, 2015: Rs.3,844) is secured by an exclusive charge over Moveable Fixed Assets purchased out of said loans. Repayable along with Interest of 6 month USD LIBOR 1.9% p.a. (as on 31st March, 2017) in one Half Yearly Installment.

d) Term Loans from Financial Companies

i) Term Loans from a Financial Company Rs.555 (31st March, 2016: Rs.Nil; 1st April, 2015: Rs.Nil) are secured by an exclusive charge on the equipment purchased out of said loans. Repayable along with Interest 9.50% (as on 31st March, 2017) in monthly Installments ranging from 45 to 46.

ii) Term Loans from a Financial Company Rs.55 (31st March, 2016: Rs.25 & 1st April, 2015: Rs.33) are secured by way of hypothecation/ exclusive charge on assets purchased out of said loans. Repayable along with Interest ranging from 9.50% to 10.25% p.a (as on 31st March, 2017) in monthly Installments ranging from 21 to 47.

e) Outstanding balances of loans as indicated in (a) to (d) above are exclusive of current maturities of such loans as disclosed in

Note 4(a).

a) Bonds / Debentures

12.15% (31st March, 2016: 12.15% & 1st April, 2015: 11.85%) Non-Convertible Debentures of Face Value of Rs.10,00,000 Each amounting to Rs.2,497 ( 31st March, 2016: Rs.2,494 & 1st April, 2015: Rs.2,492) are secured by way of First pari passu charge on specified immovable Property, plant and equipment (Fixed Assets) & First charge on specified movable Property, plant and equipment (Fixed Assets) of the Company.

b) Rupee Term Loans from Banks

i) Term Loans from Banks Rs.508 (31st March, 2016: Rs.805 & 1st April, 2015: Rs.900) are secured by an exclusive charge on assets acquired out of the said loans.

ii) Term Loans from Banks Rs.87 (31st March, 2016: Rs.Nil & 1st April, 2015: Rs.Nil) are secured by an exclusive charge on the equipment acquired out of the said loans.

c) Foreign Currency Term Loans from Banks

i) Foreign Currency Term Loans from a Bank Rs.1,397 (31st March, 2016: Rs.2,126; 1st April, 2015: Rs.1,618) are secured by way of security as recited in (e)(i) below.

ii) Foreign Currency Term Loans from a Bank Rs.4,289 (31st March, 2016: Rs.6,134; 1st April, 2015: Rs.Nil) are secured by an exclusive charge on Specific assets.

d) Rupee Term Loans from Financial Companies

Rupee Term Loans from Financial Companies Rs.Nil (31st March, 2016: Rs.Nil;1st April, 2015: Rs.98) was secured by an exclusive hypothecation/charge on assets acquired out of the said loans.

e) Working Capital Loans repayable on demand from Banks

i) Working Capital Rupee Loans from Banks Rs.233,988 (31st March, 2016: Rs.235,254; 1st April, 2015: Rs.198,607) are secured by first charge by way of hypothecation on entire current assets including stocks, stores, trade receivables etc., second charge on movable Plant and Equipment (other than those which are exclusively charged in favour of the respective lenders) ranking pari passu amongst the Banks on the point of security, as also by second charge on specific immovable properties by deposit of title deeds / documents in India.

ii) Working Capital Foreign Currency Loans from Banks Rs.4,285 (31st March, 2016: Rs.5,228; 1st April, 2015: Rs.7,551) are secured by assignment of receivables at overseas branches.

a) Defined Contribution Plans - Provident Fund

The Company has recognised, in the Statement of Profit and Loss for the year ended 31st March, 2017 an amount of Rs.732 (31st March, 2016 : Rs.819) as expenses under defined contribution plans.

b) Post Employment Defined Benefit Plans

i) a) Gratuity (Funded)

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. As per the scheme, the Gratuity Trust fund managed by the Trust, makes payment to vested employees on retirement, death, incapacitation or termination of employment, of an amount based on the respective employee’s eligible salary (half month’s salary) depending upon the tenure of service subject to a revised maximum limit of amount payable under Payment of Gratuity Act effective 1st April, 2015. Prior to such revision, the maximum limit was twenty months salary or amount payable under Payment of Gratuity Act whichever produced higher benefit. Vesting occurs upon completion of five years of service. Liabilities with regard to the Gratuity plan are determined by actuarial valuation as set out in Note 1.12, based upon which, the Company makes contribution to the Gratuity fund.

b) Gratuity (Unfunded)

The Company provides for gratuity, a defined benefit retirement plan covering employees of a foreign branch. As per the scheme, the Company makes payment to vested employees on retirement, death, incapacitation or termination of employment, of an amount based on the respective employee’s eligible salary (one month’s salary) depending upon the tenure of service subject to a maximum limit of twenty month’s salary. Vesting occurs upon completion of one year of service. Liabilities with regard to the unfunded Gratuity plan are determined by actuarial valuation as set out in Note1.12.

ii) End of Service Benefit / Severance Pay [ESB/SP] (Unfunded)

The Company provides for End of Service Benefit / Severance Pay (unfunded) defined benefit retirement plans for certain foreign branches covering eligible employees. As per the schemes, the Company makes payment to vested employees on retirement, death, incapacitation or termination of employment, of an amount based on the respective employee’s eligible salary for specified number of days (ranging from fifteen days to one month) depending upon the tenure of service (maximum limit of up to two years salary in case of certain foreign branches). Vesting occurs upon completion of one year of service (except for a foreign branch where there is no vesting period). Liabilities with regard to the End of Service Benefit / Severance Pay Scheme are determined by actuarial valuation as set out in Note1.12.

c) Other long term employee benefit plan

Leave Encashment Scheme [LES] (Unfunded)

The Company provides for accumulated leave benefit for eligible employees payable at the time of retirement of service subject to maximum of ninety / one hundred twenty days (for India and a foreign branch) and in case of others foreign branches, actual number of days outstanding based on last drawn salary. Liabilities with regard to leave encashment scheme are determined by actuarial valuation as set out in Note 1.12.

d) Risk Exposure

Aforesaid post-employment defined benefit plans typically expose the Company to actuarial risks, most significant of which are discount rate risk, salary escalation risk and demographic risk.

Discount Rate Risk

The Company is exposed to the risk of fall in discount rate. A fall in discount rate will eventually increase the ultimate cost of providing the above benefit thereby increasing the value of the liability.

Salary Escalation Risk

The present value of defined benefit plan liability is calculated by reference to the future salaries of plan participant. An increase in the salary of plan participants will increase the plan liability.

Demographic Risk

In the valuation of liability certain demographic (mortality and attrition rates) assumptions are made. The Company is exposed to this risk to the extent of actual experience eventually being worse compared to the assumptions thereby causing an increase in the plan liability.

The estimates of future salary increase, considered in actuarial valuation, takes into account inflation, seniority, promotion and other relevant factors. The expected rate of return on plan assets is based on the portfolio of assets held, investment strategy and market scenario. The Company expects to contribute Rs.Nil (31st March, 2016: Rs.Nil; 1st April, 2015: Rs.85) to gratuity fund in the next year.

(ix) Provident Fund

Provident Fund contributions in respect of certain employees are made to Trust administered by the Company and such Trust invests funds following a pattern of investments prescribed by the Government. Both the employer and employee contribute to this Fund and such contributions together with interest accumulated thereon are payable to employees at the time of their separation from the Company or retirement, whichever is earlier. The benefit vests immediately on rendering of services by the employee. The interest rate payable to the members of the Trust is not lower than the rate of interest declared annually by the Government under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, on account of interest is to be made good by the Company.

The Actuary has carried out actuarial valuation of interest rate guarantee obligations as at the Balance Sheet date using Projected Unit Credit Method and Deterministic Approach as outlined in the Guidance Note 29 issued by the Institute of Actuaries of India. Based on such valuation, there is no future anticipated shortfall with regard to interest rate guarantee obligation of the Company as at the balance sheet date. Further during the year, the Company’s contribution of Rs.399 (2016: Rs.425) to the Provident Fund Trust, has been expensed under “Contribution to Provident and Other Funds”. Disclosures given hereunder are restricted to the information available as per the Actuary’s report.

This Note provides an analysis of the Company’s income tax expense and how the tax expense is affected by non-assessable and non-deductible items. It also explains significant estimates made in relation to the Company’s tax positions.

(i) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

* Amount is below the rounded off norm adopted by the Company.

Level I: Level I hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments. Mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The Mutual fund are valued using the closing NAV.

Level II: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level II.

Level III: If one or more of the significant inputs is not based on observable market data, the instrument is included in level III.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

1. The fair values of investment in quoted equity instruments is based on the current market price of respective instruments as at the Balance Sheet date.

2. The fair values of investments in mutual fund units is based on the net asset value (‘NAV’) as stated by the issuers of these mutual fund units in the published statements as at Balance Sheet date. NAV represents the price at which the issuer will issue further units of mutual fund and the price at which issuers will redeem such units from the investors.

3. The fair values of the derivative financial instruments have been received from the respective Banks which has been determined by using valuation techniques with market observable inputs at the end of each reporting dates.

(iii) Fair value of financial assets and liabilities measured at amortised cost

The carrying amount of financial assets and liabilities other than borrowings measured at amortised cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled. The fair values for the same were calculated based on cash flows discounted using a current lending rate. They are classified as level III fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.

The fair values of borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level III fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

Note 5: Financial Risk Management

The Company’s business activities are exposed to a variety of financial risks, namely liquidity risk, market risks and credit risk. The Company’s senior management has the overall responsibility for establishing and governing the Company’s financial risk management framework. The Company has constituted a Risk Management Committee, which is responsible for developing and monitoring the Company’s financial risk management policies. The Company’s financial risk management policies are established to identify and analyse the risks faced by the Company, to set and monitor appropriate controls.

(A) Credit risk

Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk arises primarily from financial assets such as trade receivables, bank balances, loans, investments and other financial assets.

At each reporting date, the Company measures loss allowance for certain class of financial assets based on historical trend, industry practices and the business environment in which the Company operates.

Credit risk with respect to trade receivables are limited, due to the Company’s customer profiles are well balanced in Government and Non-Government customers and diversified amongst in various construction verticals and geographies. All trade receivables are reviewed and assessed on a quarterly basis.

Credit risk arising from investments, derivative financial instruments and balances with banks is limited because the counterparties are banks and recognised financial institutions with high credit worthiness.

(i) Provision for expected credit losses

The Company measures Expected Credit Loss (ECL) for financial instruments based on historical trend, industry practices and the business environment in which the Company operates.

For financial assets, a credit loss is the present value of the difference between:

(a) the contractual cash flows that are due to an entity under the contract; and

(b) the cash flows that the entity expects to receive

The Company recognises in profit or loss, the amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date in accordance with Ind AS 109.

In determination of the allowances for credit losses on trade receivables, the Company has used a practical expedience by computing the expected credit losses based on ageing matrix, which has taken into account historical credit loss experience and adjusted for forward looking information.

(B) Liquidity risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company has an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity management requirements. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents and short term investments in mutual funds. The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st March, 2017 and 31st March, 2016. The Company also has adequate credit facilities agreed with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner.

The following table shows the maturity analysis of the Company’s derivative and non-derivative financial liabilities based on contractually agreed undiscounted cash flows.

(C) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk.

a) Interest rate risk: Interest rate risk is measured by using cash flow sensitivity for changes in variable interest rate. Any movement in the reference rates could have an impact on the Company’s cash flow as well as cost. The management is focused towards reducing the volatility due to interest rates, which is reflected in proportion of variable interest rate borrowing to total borrowing.

The exposure of the Company’s borrowing to interest rate changes at the end of the reporting period are as follows

Working Capital Loan from Banks which are linked with one year fixed Marginal Cost of funds based Lending Rate (MCLR) of respective Banks are considered as Fixed rate borrowings and Working Capital Loans from Banks which are linked with base rates of respective Banks are considered as Variable rate Borrowings.

b) Foreign currency risk:

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate due to changes in foreign exchange rates. The Company enters into forward exchange contracts to hedge against its foreign currency exposures relating to the recognised underlying liabilities / assets and firm commitments. The Company’s policy is to hedge its exposures other than natural hedge. The Company does not enter into any derivative instruments for trading or speculative purposes.

The Company’s Derivative instruments and unhedged foreign currency exposure at the end of the reporting period are as follows:

(i) Derivatives Outstanding as at the reporting date

c) Other price risk: The Company’s exposure to securities price risk arises from investments in mutual funds and equity instruments held by the Company and classified in the balance sheet as FVPL and FVOCI respectively.

Sensitivity: The sensitivity of other comprehensive income to changes in BSE Index of the Company’s equity instruments as at year end.

(a) Risk management

The Company’s objectives when managing capital are to

- safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The Management regularly monitors capital on the basis of the following gearing ratio:

Net debt (total borrowings net of cash and cash equivalents) divided by

Total ‘equity’ (as shown in the balance sheet).

The Company’s strategy is to maintain a gearing ratio within 2.50. The gearing ratios were as follows:

The debt capital is subjected to usual debt covenants, such as timely servicing of debts, maintaining adequate security coverage and appropriate gearing ratios etc. as may be specified by the lenders from time to time. The Company has complied with these covenants during the reporting period.

(b) Dividends

Note 6: Segment Information

Description of segments and principal activities

The Company’s chief operating decision making group [CODMG] (as set out in note 1.2), examines the Company’s performance both from business (product), geographical perspective and has identified two reportable business segments viz. Construction and Others which comprise oil drilling services, real estate and hiring of plant and equipment. Segment disclosures are consistent with the information provided to CODMG which primarily uses operating profit/ loss of the respective segments to assess their performance. CODMG also periodically receives information about the segments revenue and assets.

$ up to 13th March, 2016.

$$ with effect from 19th May, 2015 A with effect from 14th March,2016.

# up to 20th September, 2016

## with effect from 21st September, 2016

### with effect from 21st November, 2016

Note 7: Information in accordance with the requirements of the Indian Accounting Standard (Ind AS 11) on ‘Construction Contracts’ specified under the Act.

(a) Construction Contracts

On the balance sheet date, the Company reports the net contract position for each contract as either an asset or a liability. A contract represents an asset where costs incurred plus recognised profits (less recognised losses) exceed progress billings; a contract represents a liability where the opposite is the case.

(b) Amounts due from / (to) customers under construction contracts

The carrying amounts of certain categories of assets pledged as security for current and non-current borrowings pursuant to the requirements of Ind AS 2, Ind AS 16, Ind AS 38 and Ind AS 107:

Note 8: Contingent Liabilities - Attributable to Claims against the Company not acknowledged as debts:

In respect of the contingent liabilities set out below, pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timings of cash outflows, if any:

h) Show-cause cum demand notices for Rs.12,014 (31st March, 2016: Rs.12,014; 1st April, 2015: Rs.12,014) on certain matters up to 2009 - 10 relating to Service Tax issued by the concerned Tax Authorities in Kolkata during previous years have been challenged by the Company by writ petitions currently pending before the Hon’ble Calcutta High Court. Further, show-cause cum demand notices aggregating Rs.1,594 (31st March, 2016: Rs.1,594; 1st April, 2015: Rs.1,585) on similar matter relating to Service Tax issued by the concerned Tax Authorities in Delhi during the period from 2004-05 to 2009-10 have also been challenged by the Company and currently the matter is pending before the Hon’ble Supreme Court of India. According to a legal opinion obtained in this regard, the contention of the Tax Authorities and consequent demand of Service Tax is not valid in law. Based on the aforesaid legal opinion the management is of the view that the disputed tax amount, though not admitted, in this regard should not exceed Rs.1,206 (31st March, 2016: Rs.1,206; 1st April, 2015: Rs.1,206).

i) The Company does not expect any reimbursement in respect of the above matters.

In respect of Guarantees set out below, the cash outflows, if any, could generally occur during the validity period of the respective guarantees:

@ Represents amount of credit facilities utilised against corporate guarantee given to banks of Rs.Nil (31st March, 2016: Rs.Nil; 1st April, 2015: Rs.80,888).

# Relates to the following:

(A) In respect of associate Corporate Guarantee outstanding as at 31st March, 2017 given to the Lender for any shortfall of funds for repayment of last installment of facility given amounting to USD 196 Lakhs (equivalent Rs.12,712) [31st March, 2016: USD 196 Lakhs (Equivalent Rs.12,986); 1st April, 2015: USD 196 Lakhs (Equivalent Rs.12,245)], has been jointly provided by the Company with its consortium members. Further, Corporate Guarantee has also been jointly provided with its consortium members for any adverse variation in foreign currency exchange rate at the time of repayment of facility given, other than the aforesaid last installment, subject to maximum limit of USD 200 Lakhs (Equivalent Rs.12,970) [31st March, 2016: USD 200 Lakhs (Equivalent Rs.13,250); 1st April, 2015: USD 200 Lakhs (Equivalent Rs.12,494)]. In terms of the Deed of Guarantee, guarantors’ obligations are joint and several.

9 Retention money and unbilled revenue not due for collection under the respective contracts and retention money liability to sub-contractors which are not due for payment as at 31st March, 2017 have been shown under the head “Other Current Assets” (Note 9) and “Other Current Liabilities” (Note 15) respectively as per Ind AS 32. Further in the opinion of the Management, there is lack of clarity in respect of application of the provisions of Ind AS with regard to measurement of fair value in respect of above items and there has not been any authoritative clarification / interpretation in this regards. The said reasons explain one of the joint auditor’s qualification on the same issue in their Audit report on the Company’s financial statement for the year ended 31st March, 2017.

10 The Company has started arbitration proceedings in respect of certain trade receivable etc. due from a customer aggregating Rs.10,355 as at 31st March, 2017 which is under legal proceedings including liquidation proceedings. Till disposal of the legal proceedings, the Company considers the above amount as good and recoverable.

11 As per the accounting policy set out in Note 1.16, when it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately in respect of construction contracts. For other long term contracts there are no material foreseeable losses. Further, the Company has provided for mark to market losses amounting to Rs.617 ( 31st March, 2016 Rs.Nil) relating to derivative contracts.

SBNs have the same meaning as provided in the Notification of Government of India, the Ministry of Finance in the Department of Economic Affairs number S’ORs.3407 (E) dated 8th November, 2016.

The disclosures with respects to ‘Permitted Receipts’ , ‘Permitted Payments’, ‘Amount Deposited in Banks’ and ‘Closing Cash in hand as on 30th December, 2016’ is understood to be applicable in case of SBNs only.

c) Other Commitments

i) The Company has given, inter alia, the following undertakings in respect of Non-current Investments :

(a) To National Highways Authority of India, to hold together with its associates, other sponsors/ shareholders, not less than 26% of the issued and paid up equity share capital in Shree Jagannath Expressways Private Limited (SJEPL), an associate company, during construction period of the project being executed by SJEPL and two years thereafter. As at 31st March, 2017, the Company singly holds 2,600 (31st March, 2016: 2,600; 1st April, 2015: 2,600) equity shares of Rs.10/- each fully paid up of SJEPL [Note 4(a)] representing 0.002% (2015: 0.002%) of the total paid up equity share capital of SJEPL.

(b) To Long Term Transmission Customers, to hold together with its other sponsors/ shareholders, not less than 26% in the issued and paid up equity share capital of Raichur Sholapur Transmission Company Private Limited (RSTCPL), an associate company, up to 3rd July, 2019, i.e. a period of five years after Commercial Operation Date (acheived on 4th July, 2014) of the project being executed by RSTCPL. As at 31st March, 2017, the Company holds 2,66,64,000 (31st March, 2016: 2,66,64,000; 1st April, 2015: 2,66,64,000) equity shares of Rs.10/- each fully paid up of RSTCPL [Note 4(a)] representing 33.33% (31st March, 2016: 33.33%; 1st April, 2015: 33.33%) of the total paid up equity share capital of RSTCPL.

(c) To the lender of RSTCPL, an associate company, to hold together with its other sponsors/ shareholders, at least 51% of issued and paid up equity share capital, up to the final settlement date of facility given.

(d) To the lender of SJEPL, an associate company, to hold together with its associates and/or affiliates, other sponsors/ shareholders, the management and control, up to the final settlement date of facility given.

(d) The Company has entered into non-cancellable operating lease for office, warehouses and employee accommodation. Terms of the lease include renewal of the lease period at the end of the non-cancellable period, increase in rent in future periods, etc. The obligation for non-cancellable operating lease is Rs.Nil (31st March, 2016: Rs.46; 1st April, 2015: Rs.289) payable within one year and Rs.Nil (31st March, 2016 Rs.Nil ; 1st April, 2015: Rs.1,157) payable later than one year but not later than five years and payable after five years Rs.Nil (31st March, 2016: Rs.Nil; 1st April, 2015: Rs.892) as on 31st March, 2017.

(e) The Company has entered into cancellable operating lease for office, warehouses, employee accommodation and equipments. Tenure of leases generally vary between 6 months to 3 years. Terms of the lease include operating term for renewal, terms of cancellation, etc.

(f) Lease payments in respect of (d) and (e) above are recognised in the statement of profit and loss under the heads ‘Rent’ and ‘Equipment Hire Charges’ in Note 24.

12 On implementation of Income Computation and Disclosure Standard (ICDS) with effect from 1st April 2016, certain claims of deductions and exemptions have been allegedly withdrawn effective from the Financial Year 2016-17.

Based on the opinion of a professional tax expert firm, which was obtained by the Company, withdrawal of aforesaid claims of deductions and exemptions are not tenable and there is a good case on merit, the Company has filed a Writ Petition in the Hon’ble High Court at Calcutta challenging the validity of the alleged provisions of ICDS as aforesaid, the outcome of which is awaited. Pending judicial resolution of the matter, the impact of such purported provisions of ICDS has not been considered necessary for computation of tax expenses in these financial statements.

Note 13: Offsetting financial assets and financial liabilities

Effect of offsetting on the balance sheet:

The following table presents the recognised financial instruments that are offset as at 31st March, 2017, 31st March, 2016 and 1st April, 2015. The column ‘net amount’ shows the net amount presented in the balance sheet after offsetting.

Note 14: Amount subject to master netting arrangements but not offset:

The Company does not have any financial assets and financial liabilities subject to master netting arrangements but not offset in the respective financial years.

Note 15: First-time adoption of Ind AS

Transition to Ind AS

These are the Company’s first financial statements prepared in accordance with Ind AS. The accounting policies set out in Note 1 have been applied in preparing the financial statements for the year ended 31st March, 2017, the comparative information presented in these financial statements for the year ended 31st March, 2016 and in the preparation of an opening Ind AS balance sheet as at 1st April, 2015 (the Company’s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows is set out in the following tables and notes.

A. Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A.1 Ind AS optional exemptions A.1.1. Cumulative translation differences

Ind AS 101 permits cumulative translation gains and losses to be reset to zero at the transition date. This provides relief from determining cumulative currency translation differences in accordance with Ind AS 21 from the date of initiation of foreign operations.

The Company has elected to reset all cumulative translation gains and losses to zero by transferring it to opening retained earnings at its transition date.

A.1.2. Deemed Cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities, if any. This exemption is also available for intangible assets covered by Ind AS 38 Intangible Assets.

Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value.

A.1.3. Designation of previously recognised financial instruments

Ind AS 101 allows an entity to designate Investments in equity instruments at FVOCI on the basis of the facts and circumstances at the date of transition to Ind AS.

The Company has elected to apply this exemption for its investment in quoted equity instruments.

A.1.4. Exchange differences arising from translation of long-term foreign currency monetary items

Ind AS 101 allows that a first-time adopter may continue the policy adopted for accounting for exchange differences arising from translation of long-term foreign currency monetary items recognised in the financial statements for the period ending immediately before the beginning of the first Ind AS financial reporting period as per the previous GAAP.

Accordingly, the Company has elected to continue the following policy adopted by it under the previous GAAP for accounting for exchange differences arising from translation of aforesaid long-term foreign currency monetary items:

- Foreign exchange difference on account of a depreciable asset, is adjusted in the cost of the depreciable asset, which would be depreciated over the balance life of the asset; and

- In other cases, the foreign exchange difference is accumulated in a Foreign Currency Monetary Item Translation Difference Account, and amortised over the balance period of such long term asset / liability.

A.1.5. Investments in subsidiaries, joint ventures and associates

Ind AS 101 allows a first-time adopter to elect to continue with the carrying amount of its investments in subsidiaries, joint ventures and associates as recognised in the separate financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition.

Accordingly, the Company has elected to measure all of its investments in subsidiaries, joint ventures and associates as recognised in the separate financial statements at their previous GAAP carrying value.

A.1.6. Accounting of interest in joint operation in an entity’s separate financial statements

In respect of its interest in joint operations, Ind AS 101 allows an entity to de-recognise the investment that was previously accounted for at cost, and recognise the assets and the liabilities in respect of its interest in the joint operation.

Accordingly the Company has elected to de-recognise the investments in joint operations recognised under previous GAAP and recognise share of each of the assets and the liabilities in respect of its interest in the joint operations as at the date of transition.

A.2. Applicable Mandatory Exceptions

A.2.1 Estimates: An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1st April, 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP.

Investment in equity instruments carried at FVPL and FVOCI Investment in mutual funds carried at FVPL

Impairment of financial assets based on expected credit loss model.

A.2.2 De-recognition of financial assets and liabilities: Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the entity’s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities de-recognised as a result of past transactions was obtained at the time of initially accounting for those transactions.

The Company has opted to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

A.2.3 Classification and measurement of financial assets: Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

B. Reconciliation between previous GAAP and Ind AS

B.1 Reconciliation of total equity as at 31st March, 2016 and 1st April, 2015

B.2 Reconciliation of total comprehensive income for the year ended 31st March, 2016

B.3 Effect of Ind AS adoption on the Cash Flow Statement for the year ended 31st March, 2016

C. Explanatory Notes to first-time adoption

Set out below are the notes to explain various adjustments pursuant to transition from previous GAAP to Ind AS.

Note C.1: Fair valuation of investments

In the financial statements under the previous GAAP, investments of the Company were classified as long-term investments or current investments based on the intended holding period and realisability. Long-term investments were carried at cost less provision for other than temporary diminution in carrying amount of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS, the Company has recognised such investments as follows:

- Investments in Subsidiaries, Joint Ventures, and Associates: At cost

- Investments in Government or Trust Securities: Initially at fair value and subsequently at amortised cost

- Investments in quoted equity instruments: At FVOCI through an irrevocable election

- Investments in unquoted equity instruments: At FVPL

- Investments in Mutual Funds: At FVPL

The resulting fair value changes of these investments (other than equity instruments designated as at FVOCI) have been recognised in retained earnings as at the date of transition and subsequently in the profit or loss for the year ended 31st March, 2016. This has increased the retained earnings by Rs.4 as at 31st March, 2016 (1st April, 2015: Rs.Nil) and profit for the year ended 31st March, 2016 by Rs.4.

Fair value changes with respect to investments in quoted equity shares designated as at FVOCI have been recognised in retained earnings as at the date of transition and subsequently in the other comprehensive income for the year ended 31st March, 2016. This has increased other reserves by Rs.1,102 as at 31st March, 2016 (and retained earnings by Rs.1,243 as at 1st Ap


Mar 31, 2016

(a) Rights, preferences and restrictions attached to shares

The Company has one class of equity shares having a par value of '' 2/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, 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 to their shareholding.

a) Bonds / Debentures

i) 11% (2015: 11%) Non-Convertible Debentures of Face value of Rs. 1,000,000 each amounting to Rs. 7,500 (2015 : Rs. 7,500) are secured by First Charge by way of mortgage and charge on the specified immovable and movable Properties/Assets of the Company. The Principal is repayable in three Annual Installments at the end of 8th year -30%, 9th year-30% & 10th year-40% with put & call option at the end of 7th year from the date of allotment being 29th June, 2012.

ii ) 10.75% (2015: 10.75%) Non-Convertible Debentures of Face value of Rs. 1,000,000 each amounting to Rs. 7,500 (2015 : Rs. 7,500) are secured by way of First pari passu charge on specified immovable Fixed Assets & First charge on specified movable Fixed Assets of the Company. The Principal is repayable in three annual Installments at the end of 8th year-30%, 9th year-30% & 10th year-40% with put & call option at the end of 7th year from the date of allotment being 6th December, 2012 and 31st December, 2012.

iii) 11.60% (2015: 11.10%) Non-Convertible Debentures of Face value of Rs. 1,000,000 each amounting to Rs. 5,000 (2015 : Rs. 5,000) are secured by way of First pari passu charge on specified immovable Fixed Assets & First charge on specified movable Fixed Assets of the Company. The Principal is repayable by way of bullet payment at the end of 10th year with put & call option at the end of 7th year from the date of disbursement being 12th February, 2013. If the put & call option is not exercised at the end of the 7th year, the coupon shall be 10.80% per annum from the beginning of the 8th year.

iv) 11.75% (2015: 11.25%) Non-Convertible Debentures of Face value of Rs. 1,000,000 each amounting to Rs. 4,000 (2015 : Rs. 4,000) are secured by way of First pari passu charge on specified immovable Fixed Assets & First charge on specified movable Fixed Assets of the Company. The Principal is repayable on 26th December, 2020 i.e. 7th year from the date of allotment being 26th December, 2013.

v) 11.75% (2015: 11.25%) Non-Convertible Debentures of Face value of Rs. 1,000,000 each amounting to Rs. 3,000 (2015 : Rs. 3,000) are secured by way of First pari passu charge on specified immovable Fixed Assets & First charge on specified movable Fixed Assets of the Company. The Principal is repayable on 11th March, 2021 i.e. 7th year from the date of allotment being 11th March, 2014.

vi) 11.75% (2015: 11.25%) Non-Convertible Debentures of Face value of Rs. 1,000,000 each amounting to Rs. 2,500 (2015 : Rs. 2,500) are secured by way of First pari passu charge on specified immovable Fixed Assets & First charge on specified movable Fixed Assets of the Company. The Principal is repayable on 18 th March, 2021 i.e. 7th year from the date of allotment being 18th March, 2014.

vii) 11.75% (2015: 11.25%) Non-Convertible Debentures of Face value of Rs. 1,000,000 each amounting to Rs. 500 (2015 : Rs. 500) are secured by way of First pari passu charge on specified immovable Fixed Assets & First charge on specified movable Fixed Assets of the Company. The Principal is repayable on 28th March, 2021 i.e. 7th year from the date of allotment being 28th March, 2014.

viii) 11.15% (2015: 11.15%) Non-Convertible Debentures of Face Value of Rs. 1,000,000 each amounting to Rs. 7,500 (2015: Rs. 7,500) are secured by way of First pari passu charge on specified immovable Fixed Assets & First charge on specified movable Fixed Assets of the Company. The Principal is repayable on 9th July, 2021 i.e. 7th year from the date of allotment being 9th July, 2014.

ix) 11.15% (2015: 11.15%) Non-Convertible Debentures of Face Value of Rs. 1,000,000 each amounting to Rs. 2,500 (2015: Rs. 2,500) are secured by way of First pari passu charge on specified immovable Fixed Assets & First charge on specified movable Fixed Assets of the Company. The Principal is repayable on 28th July, 2021 i.e. 7th year from the date of allotment being 28th July, 2014.

x) 12.15% (2015: 11.85%) Non-Convertible Debentures of Face Value of Rs. 1,000,000 each amounting to Rs. 5,000 (2015: Rs. 5,000) are secured by way of First pari passu charge on specified immovable Fixed Assets & First charge on specified movable Fixed Assets of the Company. The Principal is repayable on 22nd January, 2020 i.e. 5th year from the date of allotment being 22nd January, 2015 with put option at the end of 3rd year from the date of allotment.

xi) 11.25% (2015 : Nil) Non-Convertible Debentures of Face Value of Rs. 1,000,000 Each amounting to Rs. 5,000 (2015: Rs. Nil) are secured by way of First pari passu charge on specified immovable Fixed Assets & First charge on specified immovable and specified movable Fixed Assets of the Company. The Principal is repayable on 17th June, 2020 i.e. 5th year from the date of allotment being 17th June, 2015 with put & call option at the end of 3rd year from the date of allotment.

xii) 11.25% (2015 : Nil) Non-Convertible Debentures of Face Value of Rs. 1,000,000 Each amounting to Rs. 2,500 (2015: Rs. Nil) are secured by way of First pari passu charge on specified immovable Fixed Assets & First charge on specified immovable and specified movable Fixed Assets of the Company. The Principal is repayable on 17th June, 2020 i.e. 1790 days from the date of allotment being 24th July, 2015 with put & call option on 17th June, 2018.

b) Rupee Term Loans from Banks

i) Term Loans from a Bank Rs. 182 (2015 : Rs. 139) are secured by way of hypothecation/exclusive charge on the assets financed. Repayable along with Interest ranging from 9.35% to 10.49% p.a (as on 31.03.2016) in monthly Installments ranging from 11 to 49.

ii) Term Loans from a Bank Rs. 244 (2015 : Rs. 315) are secured by way of hypothecation/exclusive charge on the assets financed. Repayable along with Interest ranging from 9.46% to 10.75% p.a (as on 31.03.2016) in monthly Installments ranging from 1 to 44.

iii) Term Loans from a Bank Rs. 11 (2015 : Rs. 26) are secured by way of hypothecation/exclusive charge on the assets financed. Repayable along with Interest ranging from 10.30% to 10.75% p.a (as on 31.03.2016) in monthly Installments ranging from 1 to 36 numbers.

iv) Term Loan from a Bank Rs. Nil (2015 : Rs. 99) was secured by an exclusive charge on assets purchased with the loan fund.

v) Term Loans from a Bank Rs. 2,290 (2015 : Rs. 1,320) are secured by way of hypothecation/exclusive charge on assets purchased out of said loans. Repayable along with Interest ranging from 9.75% to 10.30% p.a (as on 31.03.2016) in monthly Installments ranging from 10 to 41 numbers.

vi) Term Loan from a Bank Rs. 1,375 (2015 : Rs. 1,875) is secured by way of exclusive hypothecation of specific equipments. Repayable along with Interest of Base Rate 0.50% p.a. (as on 31.03.2016) in 11 equal quarterly Installments.

vii) Term Loans from a Bank Rs. 43 (2015 : Rs. 22) are secured by way of hypothecation/exclusive charge on assets purchased out of said loans. Repayable along with Interest 9.79% to 10.15% p.a (as on 31.03.2016) in monthly Installments ranging from 32 to 41 numbers.

viii) Term Loans from a Bank Rs. 458 (2015 : Rs. Nil) are secured by way of hypothecation/exclusive charge on assets purchased out of said loans. Repayable along with Interest 10.15% p.a (as on 31.03.2016) in monthly Installments ranging from 37 to 38 numbers.

ix) Term Loan from a Bank Rs. 2,139 (2015 : Rs. Nil) is secured by way of exclusive charge on the plant, machinery and equipments purchased out of the said loan. Repayable along with Interest of Base Rate 0.15% p.a. (as on 31.03.2016) in

1. equal quarterly Installments.

c) Foreign Currency Term Loans from Banks

Foreign Currency Term Loan from a Bank Rs. 2,816 (2015 : Rs. 3,904) is secured by an exclusive charge over Moveable Fixed Assets purchased out of said loans. Repayable along with Interest of 6 month USD LIBOR 1.9% p.a. (as on 31.03.2016) in 3 Half Yearly Installments.

d) Term Loans from Financial Companies

Term Loans from a Financial Company Rs. 25 (2015 : Rs. 33) are secured by way of hypothecation/exclusive charge on assets purchased out of said loans. Repayable along with Interest ranging from 10.15% to 10.25% p.a (as on 31.03.2016) in monthly Installments ranging from 33 to 36 numbers.

e) Outstanding balances of loans as indicated in (a) to (d) above are exclusive of current maturities of such loans as disclosed in Note 10.

a) Bonds / Debentures

12.15% (2015: 11.85%) Non-Convertible Debentures of Face Value of Rs. 1,000,000 Each amounting to Rs. 2,500 (2015: Rs. 2,500) are secured by way of First pari passu charge on specified immovable Fixed Assets & First charge on specified movable Fixed Assets of the Company.

b) Rupee Term Loans from Banks

Term Loans from Banks Rs. 805 (2015 : Rs. 900) are secured by an exclusive charge on assets acquired out of the said loans.

c) Foreign Currency Term Loans from Banks

i) Foreign Currency Term Loans from a Bank Rs. Nil (2015 : Rs. 92) are secured by an exclusive charge on Specific assets.

ii) Foreign Currency Term Loans from a Bank Rs. 2,146 (2015 : Rs. 1,531) are secured by way of security as recited in (e)(i) below.

iii) Foreign Currency Term Loans from a Bank Rs. 6,134 (2015 : Rs. Nil) are secured by an exclusive charge on assets financed out of said loans.

d) Rupee Term Loans from Financial Companies

Rupee Term Loans from Financial Companies Rs. Nil (2015 : Rs. 98) are secured by an exclusive hypothecation/charge on assets acquired out of the said loans.

e) Working Capital Loans repayable on demand from Banks

i) Working Capital Rupee Loans from Banks Rs. 235,626 (2015 : Rs. 198,607) are secured / to be secured by first charge by way of hypothecation of stocks, stores, trade receivables, second charge on movable Plant and Equipment (other than those which are exclusively charged in favour of the respective lenders) ranking pari passu amongst the Banks on the point of security, as also by second charge on specific immovable properties by deposit of title deeds / documents in India.

ii) Working Capital Foreign Currency Loans from Banks Rs. 5,228 (2015 : Rs. 7,551) are secured by assignment of receivables at overseas branches.

* Amount is below the rounding off norm adopted by the Company.

(a) Ceased to be a Subsidiary Company and became an Associate during this year.

(b) 1,792 (2015: 1,792) Equity Shares of Shree Jagannath Expressways Private Limited are pledged in favour of Axis Trustee Services Ltd., Security Trustee for the benefit of consortium of lending Banks.

(c) 12,238,776 (2015: 12,238,776) Equity Shares of Raichur Sholapur Transmission Company Private Limited are pledged in favour of IDBI Trusteeship Services Limited, Security Trustee for the benefit of Axis Bank Limited (DIFC Branch), Lender.

(d) For classification of investments in accordance with AS-13 : Accounting for Investments, refer Note 50.

(e) Refer Note 31(c) for certain undertakings given by the Company in respect of Non-current Investments.

a) Defined Contribution Plans

The Company has recognized, in the Statement of Profit and Loss for the year ended 31st March, 2016 an amount of '' 819 (2015: Rs. 685) as expenses under defined contribution plans.

b) Post Employment Defined Benefit Plans

i) a) Gratuity (Funded)

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. As per the scheme, the Gratuity Trust fund managed by the Trust, makes payment to vested employees on retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s eligible salary (half month''s salary) depending upon the tenure of service subject to a revised maximum limit of amount payable under Payment of Gratuity Act effective 1st April, 2015. Prior to such revision, the maximum limit was twenty month’s salary or amount payable under Payment of Gratuity Act whichever produced higher benefit. Vesting occurs upon completion of five years of service. Liabilities with regard to the Gratuity plan are determined by actuarial valuation as set out in Note 1.15, based upon which, the Company makes contribution to the Gratuity fund.

b) Gratuity (Unfunded)

The Company provides for gratuity, a defined benefit retirement plan covering employees of a foreign branch. As per the scheme, the Company makes payment to vested employees on retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s eligible salary (one month''s salary) depending upon the tenure of service subject to a maximum limit of twenty month''s salary. Vesting occurs upon completion of one year of service. Liabilities with regard to the unfunded Gratuity plan are determined by actuarial valuation as set out in Note 1.15.

ii) End of Service Benefit / Severance Pay [ESB/SP] (Unfunded)

The Company provides for End of Service Benefit / Severance Pay (unfunded) defined benefit retirement plans for certain foreign branches covering eligible employees. As per the schemes, the Company makes payment to vested employees on retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s eligible salary for specified number of days (ranging from fifteen days to one month) depending upon the tenure of service (maximum limit of up to two years salary in case of certain foreign branches). Vesting occurs upon completion of one year of service (except for a foreign branch where there is no vesting period). Liabilities with regard to the End of Service Benefit / Severance Pay Scheme are determined by actuarial valuation as set out in Note 1.15.

iii) Leave Encashment Scheme [LES] (Unfunded)

The Company provides for accumulated leave benefit for eligible employees payable at the time of retirement of service subject to maximum of ninety / one hundred twenty days (for India and a foreign branch) and in case of others foreign branches, actual number of days outstanding based on last drawn salary. Liabilities with regard to leave encashment scheme are determined by actuarial valuation as set out in Note 1.15.

The following Table sets forth the further particulars in respect of Gratuity (Funded), Gratuity (Unfunded), ESB/SP (Unfunded) and LES (Unfunded) of the Company :-

2. Employee Benefits Expense (contd..)

iv) Provident Fund (contd..)

The Actuary has carried out actuarial valuation of interest rate guarantee obligations as at the Balance Sheet date using Projected Unit Credit Method and Deterministic Approach as outlined in the Guidance Note 29 issued by the Institute of Actuaries of India. Based on such valuation, there is no future anticipated shortfall with regard to interest rate guarantee obligation of the Company as at the Balance Sheet date. Further during the year, the Company''s contribution of '' 425 (2015: '' 457) to the Provident Fund Trust, has been expensed under “Contribution to Provident and Other Funds”. Disclosures given hereunder are restricted to the information available as per the Actuary''s report.

(a) Revision in useful lives of Tangible Assets

Effective 1st April, 2014, the Company has started charging depreciation in keeping with the requirements of Schedule II to the Companies Act, 2013 and as a result of which the estimated useful lives of certain tangible assets have been revised. Pursuant to the transitional provision set out in the said Schedule II, the carrying amount (after retaining the residual values) aggregating Rs. Nil (2015: Rs. 3,517) relating to tangible assets, where the revised useful lives were nil as on 1st April, 2014, had been debited to General Reserve (Refer Note 3). Further, related tax impact on such adjustment amounting to Rs. Nil (2015: Rs. 1,217) had been credited to General Reserve.

3. Claims against the Company not acknowledged as debts (contd..)

h) Show-cause cum demand notices for Rs. 12,014 (2015: Rs. 12,014) on certain matters up to 2009 - 10 relating to Service Tax issued by the concerned Tax Authorities in Kolkata during previous years have been challenged by the Company by writ petitions currently pending before the Hon’ble Calcutta High Court. Further, show-cause cum demand notices aggregating Rs. 1,594 (2015: Rs. 1,585) on similar matter relating to Service Tax issued by the concerned Tax Authorities in Delhi during the period from 2004-05 to 2009-10 have also been challenged by the Company and currently the matter is pending before the Hon’ble Supreme Court of India. According to a legal opinion obtained in this regard, the contention of the Tax Authorities and consequent demand of Service Tax is not valid in law. Based on the aforesaid legal opinion the management is of the view that the disputed tax amount, though not admitted, in this regard should not exceed Rs. 1,206 (2015: Rs. 1,206).

@ Represents amount of credit facilities utilized against corporate guarantee given to banks of Rs. Nil (2015: Rs. 80,888).

# Relates to the following:

(A) In respect of another associate Corporate Guarantee outstanding as at 31st March, 2016 given to the Lender for any shortfall of funds for repayment of last installment of facility given amounting to USD 196 Lakhs (Equivalent Rs. 12,986) [2015: USD 196 Lakhs (Equivalent Rs. 12,245)], has been jointly provided by the Company with its consortium members. Further, Corporate Guarantee has also been jointly provided with its consortium members for any adverse variation in foreign currency exchange rate at the time of repayment of facility given, other than the aforesaid last installment, subject to maximum limit of USD 200 Lakhs (Equivalent Rs. 13,250) [2015: USD 200 Lakhs (Equivalent Rs. 12,494)]. In terms of the Deed of Guarantee, guarantors’ obligations are joint and several.

4. In respect of the contingent liabilities mentioned in Note 30.1 above, pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timings of cash outflows, if any. In respect of matters mentioned in Note

30.2 above, the cash outflows, if any, could generally occur during the validity period of the respective guarantees. The Company does not expect any reimbursements in respect of the above contingent liabilities, other than the matter set out in Note 30.2 (i)(B) above.

c) Other Commitments

i) The Company has given, inter alia, the following undertakings in respect of Non-current Investments:

(a) To National Highways Authority of India, to hold together with its associates, other sponsors/shareholders, not less than 26% of the issued and paid up equity share capital in Shree Jagannath Expressways Private Limited (SJEPL), an associate company, during construction period of the project being executed by SJEPL and two years thereafter. As at 31st March, 2016, the Company singly holds 2,600 (2015: 2,600) equity shares of Rs. 10/each fully paid up of SJEPL (Note 14) representing 0.002% (2015: 0.002%) of the total paid up equity share capital of SJEPL.

(b) To Long Term Transmission Customers, to hold together with its other sponsors/shareholders, not less than 51% in the issued and paid up equity share capital of Raichur Sholapur Transmission Company Private Limited (RSTCPL), an associate company, up to a period of two years after Commercial Operation Date of the project being executed by RSTCPL and not less than 26% in the issued and paid up equity share capital of RSTCPL for a period of three years thereafter. As at 31st March, 2016, the Company holds 26,664,000 (2015: 26,664,000) equity shares of '' 10/- each fully paid up of RSTCPL (Note 14) representing 33.33% (2015: 33.33%) of the total paid up equity share capital of RSTCPL.

(c) To the lender of RSTCPL, an associate company, to hold together with its other sponsors/shareholders, at least 51% of issued and paid up equity share capital, up to the final settlement date of facility given.

(d) To the lender of SJEPL, an associate company, to hold together with its associates and/or affiliates, other sponsors/shareholders, the management and control, up to the final settlement date of facility given.

5. The Company has long term strategic Investments in shares of Simplex Infrastructures Libya Joint Venture Company (Simplex Libya), a subsidiary Company located in Libya. The year-end book value of which is Rs. 387 (2015 Rs. 387) (Note 14) and its year-end exposure in “Other Current Assets” [arising from sale of some plant & equipments referred to in paragraph below] (Note 22) and short term loans & advances (Note 21) due from Simplex Libya amounting to Rs. 1,576 (2015 Rs. 1,481) and Rs. 446 (2015 Rs. 440) respectively.

Though the political situation in Libya is expected to improve but on the basis of accounting prudence, the Company has made full provision during the year against aforesaid Investments and Short-term Loans and Advances.

The Management''s Representatives have carried out a physical inspection of Simplex Libya''s aforesaid plant and equipments in May 2016 and Management has plan to bring back these items to some other locations of the Company at the earliest upon further improvement of the political situation in Libya and accordingly the Company expects that aforesaid Other Current Assets balance would be recovered.

In view of the foregoing, Management is of view that the above Other Current Assets balance is recoverable and no provision in this regard is required to be made at this stage.

6. (a) The Company has entered into non-cancellable operating lease for office, warehouses and employee accommodation. Terms of the lease include renewal of the lease period at the end of the non - cancellable period, increase in rent in future periods, etc. The obligation for non-cancellable operating lease is Rs. 46 (2015: Rs. 289) payable within one year and Rs. Nil (2015: Rs. 1,157) payable later than one year but not later than five years and payable after five years Rs. Nil (2015: Rs. 892) as on 31st March, 2016.

(b) The Company has entered into cancellable operating lease for office, warehouses, employee accommodation and equipments. Tenure of leases generally vary between 6 months to 3 years. Terms of the lease include operating term for renewal, terms of cancellation, etc.

(c) Lease payments in respect of (a) and (b) above are recognized in the Statement of Profit and Loss under the heads ''Rent'' and ‘Equipment Hire Charges’ in Note 29.

7. On implementation of Income Computation and Disclosure Standard (ICDS) with effect from 1st April 2015, certain claims of deductions and exemptions have been allegedly withdrawn effective from the Financial Year 2015-16.

Based on a legal opinion obtained by the Company, withdrawal of aforesaid claims of deductions and exemptions are not tenable and there is a good case on merit, the Company has filed a Writ Petition in the Hon''ble High Court at Calcutta challenging the validity of the alleged provisions of ICDS as aforesaid, the outcome of which is awaited. Pending judicial resolution of the matter, the impact of such purported provisions of ICDS has not been considered necessary for computation of tax expenses in these financial statements.

8. Previous year’s figures are reclassified, where necessary, to conform to the current year’s classification. Signatures to Notes 1 to 51


Mar 31, 2014

Not Available.


Mar 31, 2013

31st March, 2013 31st March, 2012

1. CONTINGENT LIABILITIES:

1.1 Claims against the company not acknowledged as debts

a) Interest (others) 6 6

b) Professional Tax 4 4

c) Sales Tax / Value Added Tax 9,163 5,046

d) Entry Tax 443 446

e) Excise Duty 150 150

f) Income Tax [Also refer item (h) below] 339 40

g) Service Tax [Also refer item (i) below] 2,300 514

h) The Company claimed certain deduction under the provision of the Income-tax Act,1961 up to the Assessment Year 2009-10. In respect of the Assessment Years 2005-06 to 2008-09 the deduction was disallowed by the Income Tax Authorities and for those Assessment Years, the Company''s appeals are currently pending before the said appellate authorities. However, on the basis of legal opinion obtained, the Company being eligible to such benefit, has challenged the issue by a writ petition before the Hon''ble Calcutta High Court and obtained interim stay order from the said High Court restraining the Tax Authorities from enforcing any demand against the Company. In the mean time on the basis of direction of the Hon''ble Supreme Court, the case has been transferred to Hon''ble Bombay High Court for hearing with other similar cases where the matter is pending. The estimated tax impact in this regard is Rs.1,597 (2012: Rs.1,597).

i) Show-cause cum demand notices for Rs.9,892 (2012: Rs.9,892) on certain matter relating to Service Tax issued by the concerned Tax Authorities in Kolkata during previous years have been challenged by the Company by writ petitions currently pending before the Hon''ble Calcutta High Court. Further, show-cause cum demand notices aggregating Rs.1,585 (2012: Rs.1,585) on similar matter relating to Service Tax issued by the concerned Tax Authorities in Delhi during previous years have also been challenged by the Company before the Hon''ble Delhi High Court. According to a legal opinion obtained in this regard, the contention of the Tax Authorities and consequent demand of Service Tax is not valid in law. Based on the aforesaid legal opinion the management is of the view that the disputed tax amount, though not admitted, in this regard should not exceed Rs.1,057 (2012: Rs.1,057).

30.3 In respect of the contingent liabilities mentioned in Note 30.1 above, pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timings of cash outflows, if any. In respect of matters mentioned in Note 30.2 above, the cash outflows, if any, could generally occur during the validity period of the respective guarantees. The Company does not expect any reimbursements in respect of the above contingent liabilities, other than the matter set out in Note 30.2 (i)(b) above.

d) Other Commitments

i) Pursuant to an Assignment Agreement dated 15th November, 2011, the Company along with Simplex Infra Development Limited (SIDL), a subsidiary has undertaken to acquire the right to subscribe to 8% of the equity share capital of Shree Jagannath Expressways Private Limited (SJEPL), an associate company from another shareholder of SJEPL at an agreed consideration and the related commitment outstanding at the year end is Rs.Nil (2012: Rs.1,500).

ii) The Company has given, inter alia, the following undertakings in respect of Non-current Investments :

(a) To National Highways Authority of India, to hold together with its associates, other sponsors/shareholders, not less than 26% of the issued and paid up equity share capital in Shree Jagannath Expressways Private Limited (SJEPL), an associate company, during construction period of the project being executed by SJEPL and two years thereafter. As at 31st March, 2013, the Company singly holds 2,600 (2012: 2,600) equity shares of Rs.10/- each fully paid up of SJEPL (Note 14) representing 0.002% (2012: 0.003%) of the total paid up equity share capital of SJEPL.

(b) To National Highways Authority of India, to invest and maintain at all times either by itself and/or through its associates/subsidiaries/affiliates together with its other sponsors/shareholders, not less than 51% of the issued and paid up equity share capital of Maa Durga Expressways Private Limited (MDEPL), a subsidiary company, during construction period of the project being executed by MDEPL and two years thereafter. As at 31st March, 2013, the Company holds 10,000 (2012: 9,999) equity shares of Rs.10/- each fully paid up of MDEPL (Note 14) representing 0.10% (2012: 99.99%) of the total paid up equity share capital of MDEPL.

(c) To Long Term Transmission Customers, to hold together with its other sponsors/shareholders, not less than 51% in the issued and paid up equity share capital of Raichur Sholapur Transmission Company Limited (RSTCL), an associate company, up to a period of two years after Commercial Operation Date of the project being executed by RSTCL and not less than 26% in the issued and paid up equity share capital of RSTCL for a period of three years thereafter. As at 31st March, 2013, the Company holds 1,59,98,400 (2012: 6,977,692) equity shares of Rs.10/- each fully paid up of RSTCL (Note 14) representing 33.33% (2012: 33.33%) of the total paid up equity share capital of RSTCL.

(d) To National Highways Authority of India, to invest and maintain at all times either by itself and/or through its associates/subsidiaries/affiliates together with its other sponsors/shareholders, not less than 51% of the issued and paid up equity share capital of Jaintia Highway Private Limited (JHPL), a subsidiary company, during construction period of the project being executed by JHPL and two years thereafter. As at 31st March,2013, the Company holds 10,000 (2012: Nil) equity shares of Rs.10/- each fully paid up of JHPL (Note 14) representing 0.28% (2012: Nil) of the total paid up equity share capital of JHPL.

(e) To the lender of RSTCL, an associate company, to hold together with its other sponsors/shareholders, at least 51% of issued and paid up equity share capital, up to the final settlement date of facility given.

(f) To the lender of SJEPL, an associate company, to hold together with its associates and/or affiliates, other sponsors/shareholders, the management and control, up to the final settlement date of facility given.

(g) To the lender of MDEPL, a subsidiary company, to hold and continue to hold at all times either by itself and/or through its associates/subsidiaries/affiliates, together with its other sponsors/shareholders, at least 51% of the issued and paid up equity share capital, up to the final settlement date of facility given.

(h) To the lender of JHPL, a subsidiary company, to hold and continue to hold at all times either by itself and/or through its associates/subsidiaries/affiliates, together with its other sponsors/shareholders, at least 51% of the issued and paid up equity share capital, up to the final settlement date of facility given.

2. The Company has long term strategic investments in shares of Simplex Infrastructures Libya Joint Venture Co.(Simplex Libya), a subsidiary company, located in Libya with the Company''s ownership interest being 65%, the year-end book value of which is Rs.387 (2012: Rs.387) (Note 14). Further year end Other Current Asset - considered good (Note 22) and Short term Loans and Advances - considered good (Note 21) includes Rs.1,292 (2012: Rs.1,210) and Rs.401 (2012: Rs.395) respectively due from Simplex Libya.

The current political situation in Libya, although improved to some extent compared to the previous year, has not yet been fully normalized and consequently complete information relating to Simplex Libya are not available and audit of the financial statements for the year 2012-13 of Simplex Libya could not be carried out. However, as per the financial statements for the year 2012-13 of Simplex Libya as prepared by the Management, its year-end net worth has been eroded.

Upon further improvement of the political situation and indications of resumption of business activities, the Company will make a detailed review of the situation to evaluate business possibilities and assess recoverability of its total exposure as aforesaid.

Pending such review/assessment and considering gradual improvement in political situation and long term strategic business interest, in the opinion of the Company, no adjustment to the carrying amounts of investments in and receivables from Simplex Libya is considered necessary at this stage.

3. (a) The Company has entered into non-cancellable operating lease for office, warehouses and employee accommodation.

Terms of the lease include renewal of the lease period at the end of the non - cancellable period, increase in rent in future periods, etc. The obligation for non-cancellable operating lease is Rs.624 (2012: Rs.988) payable within one year and Rs.1,017 (2012: Rs.1,072) payable later than one year but not later than five years and payable after five years Rs.1,447 (2012: Rs.1,460) as on 31st March, 2013.

(b) The Company has entered into cancellable operating lease for office, warehouses, employee accommodation and equipments. Tenure of leases generally vary between 6 months to 3 years. Terms of the lease include operating term for renewal, terms of cancellation, etc.

(c) Lease payments in respect of (a) and (b) above are recognised in the Statement of Profit and Loss under the heads ''Rent'' and ''Equipment Hire Charges'' in Note 29.

4.OTHER NON-CURRENT ASSETS - TOOLS

Tools represent various construction accessories which are expected to be used in construction over a period beyond normal operating cycle.

These are initially recorded at cost and carried thereafter at below cost after considering write-off based on their usage.

5.SEGMENT INFORMATION FOR THE YEAR ENDED 31ST MARCH,2013

The Company considers business segment as primary segment for disclosure of segment information. Business segments have been identified as Construction business and Others which include income from oil drilling services, wind mill, real estate and hire of plant and equipment including oil drilling rig.

6. Previous year''s figures are reclassified, where necessary, to conform to the current year''s classification.


Mar 31, 2012

(a) Rights, preferences and restrictions attached to shares

The Company has one class of equity shares having a par value of Rs.2/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, 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 to their shareholding.

(a) Created out of Surplus in Profit and Loss Statement for meeting future contingencies, if any.

(b) Represents a free reserve and is not meant for meeting any specific Liability, contingency or commitment.

1. LONG-TERM BORROWINGS (contd.)

a) Rupee Term Loans from Banks

i) Term Loans from a Bank Rs.10 (2011: Rs.Nil) are secured by way of hypothecation/charge of the assets financed. Repayable along with Interest of 10.53% p.a ( as on 31.03.2012) in 53 Monthly Instalments.

ii) Term Loans from a Bank Rs.184 (2011: Rs.11) are secured by way of hypothecation/charge of the assets financed. Repayable along with Interest ranging from 8.50% to 11.00% p.a ( as on 31.03.2012) in Monthly Instalments ranging from 40 to 60 numbers.

iii) Term Loan from a Bank Rs.62 (2011: Rs. Nil) are secured by way of hypothecation/charge of the assets financed. Repayable along with Interest ranging from 10.69% to 10.89% p.a ( as on 31.03.2012) in Monthly Instalments ranging from 58 to 60 numbers.

iv) Term Loan from a Bank Rs.Nil (2011: Rs.844) are secured by an exclusive charge on assets to be acquired out of the loan i.e. Construction Equipment/Assets Purchased out of said loans. Repayable along with Interest of Base Rate 2.25% ( as on 31.03.2012) in 3 Quarterly Instalments. Covered by personal guarantee of Chairman and Managing Director of the Company.

v) Term Loan from a Bank Rs.1,112 (2011: Rs. Nil) are secured by an exclusive charge on assets purchased with the loan fund. Repayable along with Interest of Base Rate ( as on 31.03.2012) in 16 Quarterly Instalments.

vi) Term Loan from a Bank Rs.1,839 (2011: Rs. 1,499) are secured by an exclusive charge on assets purchased out of said loans. Repayable along with Interest of Base Rate 1.25% ( as on 31.03.2012) in 16 Quarterly Instalments .

b) Foreign Currency Term Loans from Banks

i) Foreign Currency Term Loan from a Bank Rs.4,834 (2011: Rs. Nil) are secured by an exclusive charge over Moveable Fixed Assets purchased out of said loans. Repayable along with Interest of 6 month USD LIBOR 1.9% p.a. (as on 31.03.2012) in 12 Half Yearly Instalments.

ii) Foreign Currency Term Loan from a Bank Rs.379 (2011: Rs. 1,246) are secured by an exclusive charge on specific assets . Repayable along with Interest of 6 month JPY LIBOR 1.35% p.a. (as on 31.03.2012) in 5 Quarterly Instalments.

c) Term Loans from Financial Companies

i) Rupee Term Loan from a Financial Company Rs.Nil (2011: Rs.3) are secured by an exclusive charge on specific assets purchased out of said loans. Repayable along with Interest of 11 % p.a. (as on 31.03.2012) in 4 Quarterly Instalments.

ii) Rupee Term Loan from a Financial Company Rs.Nil (2011: Rs.99) are secured by an exclusive charge on specific assets purchased out of said loans. Repayable along with Interest of 11.50 % p.a. (as on 31.03.2012) in 3 Quarterly Instalments.

iii) Rupee Term Loan from a Financial Company Rs.317 (2011: Rs.409) are secured by an exclusive charge on specific assets purchased out of said loans. Repayable along with Interest of 10 % p.a. (as on 31.03.2012) in 46 Monthly Instalments.

d) Rupee Term Loans from Banks

Term Loans from a Bank Rs.56 (2011: Rs. 72) repayable along with Interest ranging from 8.75% to 12% p.a.(as on 31.3.2012) in Monthly Instalments ranging from 4 to 56 numbers.

e) Term Loan from Financial Company

Rupee Term Loan from a Financial Company Rs.Nil (2011: Rs.3) repayable along with Interest of 11% p.a. (as on 31.3.2012) in 4 Quarterly Instalments.

f) Outstanding balances of loans as indicated in (a) to (e) above are exclusive of current maturities of such loans as disclosed in Note 10.

2. SHORT-TERM BORROWINGS (contd.)

a) Rupee Term Loans from Banks Term Loans from Banks Rs. 4,427 (2011 : Rs. 7,125 ) are secured by an exclusive charge on assets acquired out of the said loans. Out of the above, Term Loan from a Bank Rs. 803 (2011 : Rs.2,179) are also covered by personal guarantee of Chairman and Managing Director of the Company.

b) Foreign Currency Term Loans from Banks i) Foreign Currency Term Loan from a Bank Rs.3,831 (2011: Rs.1,671) are secured by an exclusive charge on Specific assets.

ii) Foreign Currency Term Loan from a Bank Rs.2,633 (2011: Rs.2,308) are secured by way of security as recited in (d)(i) below.

iii) Foreign Currency Term Loan from Banks Rs.Nil (2011: Rs.884) are secured by assignment of receivables at overseas branches.

c) Rupee Term Loans from Financial Companies Rupee Term Loans from Financial Companies Rs.3,514 (2011: Rs.6,401) are secured/ to be secured by an exclusive hypothecation/charge on assets acquired out of the said loans.

d) Working Capital Loans repayable on demand from Banks i) Working Capital Rupee Loans from Banks Rs. 67,272 (2011: Rs.77,329) and Working Capital Foreign Currency Loans from Banks Rs. 12,713 (2011: Rs.Nil) are secured by first charge by way of hypothecation of stocks, stores, trade receivables, second charge on Plant and Equipment (other than those which are exclusively charged in favour of the respective lenders) ranking pari passu amongst the Banks on the point of security, as also by second charge on certain immovable properties by deposit of title deeds / documents in India subject to first charge created / to be created in favour of term lenders.

ii) Working Capital Foreign Currency Loans from Banks Rs.9,249 (2011: Rs.4,941) are secured by assignment of receivables at overseas branches.

(a) There are no amounts due for payment to the Investor Education and Protection Fund under section 205C of the Companies Act, 1956 as at the year-end.

a) Defined Contribution Plans.

The Company has recognised, in the Profit and Loss Statement for the year ended 31st March, 2012 an amount of Rs.493 (2011: Rs.398) as expenses under defined contribution plans.

b) Post Employment Defined Benefit Plans

i) a) Gratuity (Funded)

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. As per the scheme, the Gratuity Trust fund managed by the Trust, make payment to vested employees on retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's eligible salary (half month's salary) depending upon the tenure of service subject to a maximum limit of twenty months salary or amount payable under Payment of Gratuity Act whichever produces higher benefit. Vesting occurs upon completion of five years of service. Liabilities with regard to the Gratuity plan are determined by actuarial valuation as set out in Note 1.15, based upon which, the Company makes contribution to the Gratuity fund.

b) Gratuity (Unfunded)

The Company provides for gratuity, a defined benefit retirement plan covering employees of a foreign branch. As per the scheme, the Company makes payment to vested employees on retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's eligible salary (one month's salary) depending upon the tenure of service subject to a maximum limit of twenty month's salary. Vesting occurs upon completion of one year of service. Liabilities with regard to the unfunded Gratuity plan are determined by actuarial valuation as set out in Note 1.15.

ii) End of Service Benefit / Severance Pay [ESB/SP] (Unfunded)

The Company provides for End of Service Benefit / Severance Pay (unfunded) defined benefit retirement plans for certain foreign branches covering eligible employees. As per the schemes, the Company makes payment to vested employees on retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's eligible salary for specified number of days (ranging from fifteen days to one month) depending upon the tenure of service (maximum limit varies from one month to twenty four months). Vesting occurs upon completion of one year of service. Liabilities with regard to the End of Service Benefit / Severance Pay Scheme are determined by actuarial valuation as set out in Note 1.15.

iii) Leave Encashment Scheme [LES] (Unfunded)

The Company provides for accumulated leave benefit for eligible employees payable at the time of retirement of service subject to maximum of ninety / one hundred twenty days and in case of foreign branches actual number of days outstanding based on last drawn salary. Liabilities with regard to leave encashment scheme are determined by actuarial valuation as set out in Note 1.15.

iv) Provident Fund (contd.)

Unlike in earlier years, the Actuary has carried out actuarial valuation of interest rate guarantee obligations as at the balance sheet date using Deterministic Approach as outlined in the Guidance Note 29 issued by the Institute of Actuaries of India. Based on such valuation, there is no future anticipated shortfall with regard to interest rate guarantee obligation of the Company as at the balance sheet date. Further during the year, the Company's contribution of Rs.523 (2011: Rs.399) to the Provident Fund Trust, has been expensed under "Contribution to Provident and Other Funds". Disclosures given hereunder are restricted to the information available as per the Actuary's report.

31st March, 2012 31st March, 2011

3. CONTINGENT LIABILITIES:

3.1 Claims against the company not acknowledged as debts

a) Interest (others) 6 6

b) Professional Tax 4 4

c) Sales Tax / Value Added Tax 5,046 2,606

d) Entry Tax 446 161

e) Excise Duty 150 -

f) Income Tax [Also refer item (h) below] 40 40

g) Service Tax [Also refer item (i) below] 514 759

3.1 Claims against the company not acknowledged as debts (contd.)

h) The Company claimed certain deduction under the provision of the Income-tax Act,1961 upto the Assessment Year 2009-10. In respect of the Assessment Years 2005-06 to 2008-09 the deduction was disallowed by the Income Tax Authorities and for those Assessment Years, the Company's appeals are currently pending before the said appellate authorities. However, on the basis of legal opinion obtained, the Company being eligible to such benefit, has challenged the issue by a writ petition before the Hon'ble Calcutta High Court and obtained interim stay order from the said High Court restraining the Tax Authorities from enforcing any demand against the Company. In the mean time on the basis of direction of the Hon'ble Supreme Court, the case has been transferred to Hon'ble Bombay High Court for hearing with other similar cases where the matter is pending. The estimated tax impact in this regard is Rs.1,597 (2011: Rs.1,597).

i) Show-cause cum demand notices for Rs.9,892 (2011: Rs.9,892) on certain matter relating to Service Tax issued by the concerned Tax Authorities in Kolkata during previous years have been challenged by the Company by writ petitions currently pending before the Hon'ble Calcutta High Court. Further, show-cause cum demand notices aggregating Rs.1,585 (2011: Rs.1,689) on similar matter relating to Service Tax issued by the concerned Tax Authorities in Delhi during previous years have also been challenged by the Company before the Hon'ble Delhi High Court. According to a legal opinion obtained in this regard, the contention of the Tax Authorities and consequent demand of Service Tax is not valid in law. Based on the aforesaid legal opinion the management is of the view that the disputed tax amount, though not admitted, in this regard should not exceed Rs.1,057 (2011: Rs.1,065).

3.2 In respect of the contingent liabilities mentioned in Note 30.1 above, pending resolution of the respective proceedings, it is not practicable for the Company to estimate the timings of cash outflows, if any. In respect of matters mentioned in Note 30.2 above, the cash outflows, if any, could generally occur during the validity period of the respective guarantees. The Company does not expect any reimbursements in respect of the above contingent liabilities.

4. COMMITMENTS (contd.)

c) Other Commitments

i) Pursuant to an Assignment Agreement dated 15th November, 2011, the Company along with Simplex Infra Development Limited (SIDL), a subsidiary has undertaken to acquire the right to subscribe to 8% of the equity share capital of Shree Jagannath Expressways Private Limited (SJEPL), an associate company from another shareholder of SJEPL at an agreed consideration and the related commitment outstanding at the year end is Rs.1,500 (2011: Rs. Nil).

ii) The Company has given, inter alia, the following undertakings in respect of Non-current Investments :

(a) To National Highways Authority of India, to hold together with its associates, not less than 26% of the issued and paid up equity share capital in Shree Jagannath Expressways Private Limited (SJEPL), an associate company, during construction period of the project being executed by SJEPL and two years thereafter. As at 31st March, 2012, the Company singly holds 2,600 (2011: 2,600) equity shares of Rs.10/- each fully paid up of SJEPL (Note 14) representing 0.003% (2011: 0.013%) of the total paid up equity share capital of SJEPL.

(b) To National Highways Authority of India, to invest and maintain at all times either by itself and/or through its associates/subsidiaries/affiliates not less than 51% of the issued and paid up equity share capital of Maa Durga Expressways Private Limited (MDEPL), a subsidiary company, during construction period of the project being executed by MDEPL and two years thereafter. As at 31st March, 2012, the Company holds 9,999 (2011: Nil) equity shares of Rs.10/- each fully paid up of MDEPL (Note 14) representing 99.99% (2011: Nil) of the total paid up equity share capital of MDEPL.

(c) To Long Term Transmission Customers, to hold together with its consortium members, not less than 51% in the issued and paid up equity share capital of Raichur Sholapur Transmission Company Limited (RSTCL), an associate company, up to a period of two years after Commercial Operation Date of the project being executed by RSTCL and not less than 26% in the issued and paid up equity share capital of RSTCL for a period of three years thereafter. As at 31st March, 2012, the Company holds 6,977,692 (2011: 16,665) equity shares of Rs.10/- each fully paid up of RSTCL (Note 14) representing 33.33% (2011: 33.33%) of the total paid up equity share capital of RSTCL.

5. The Company has long term strategic investments in shares of Simplex Infrastructure Libya Joint Venture Co.(Simplex Libya), a subsidiary company, located in Libya with the Company's ownership interest being 65%, the year end book value of which is Rs.387 (2011: Rs.387) (Note 14). Further year end Other Current Asset - considered good (Note 22) and Short term Loans and Advances - considered good (Note 21) includes Rs.1,210 (2011: Rs.1059) and Rs.395 (2011: Rs.385) respectively due from Simplex Libya.

In view of current political crisis and unrest prevailing in Libya, and consequential stoppage of business activities, complete information relating to Simplex Libya are not available and audit of the financial statements for the year 2011- 12 of Simplex Libya could not be carried out. However, as per the financial statements for the year 2011-12 of Simplex Libya as prepared by the Management, its year end net worth has been eroded .

After the improvement of the political situation in Libya and upon resuming business activities, the Company will be in a position to make a detailed review of the situation and assess recoverability of its total exposure as aforesaid.

Pending such review/assessment and considering the long term strategic business interest, in the opinion of the Company, no adjustment to the carrying amounts of investments in and receivables from Simplex Libya is considered necessary at this stage .

6. (a) The Company has entered into non-cancellable operating lease for office, warehouses and employee accommodation. Terms of the lease include renewal of the lease period at the end of the non - cancellable period, increase in rent in future periods, etc. The obligation for non-cancellable operating lease is Rs.988 (2011: Rs.919) payable within one year and Rs.1,072 (2011: Rs.978) payable later than one year but not later than five years and payable after five years Rs.1,460 (2011: Rs.1,489) as on 31st March, 2012.

(b) The Company has entered into cancellable operating lease for office, warehouses, employee accommodation and equipments. Tenure of leases generally vary between 6 months to 3 years. Terms of the lease include operating term for renewal, terms of cancellation, etc.

(c) Lease payments in respect of (a) and (b) above are recognised in the Profit and Loss Statement under the heads 'Rent' and 'Equipment Hire Charges' in Note 29.

7. OTHER NON-CURRENT ASSETS - TOOLS

Tools represent various construction accessories which are expected to be used in construction over a period beyond normal operating cycle.

These are initially recorded at cost and carried thereafter at below cost after considering write-off based on their usage.

8. SEGMENT INFORMATION FOR THE YEAR ENDED 31ST MARCH,2012

The Company considers business segment as primary segment for disclosure of segment information. Business segments have been identified as Construction business and Others which include income from wind mill, real estate and hire of plant and equipment including oil drilling rig.

9. The financial statements for the year ended March 31, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act,1956. Consequent to the notification of Revised Schedule VI under the Companies Act,1956, the financial statements for the year ended March 31, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.

Signatures to Notes 1 to 51


Mar 31, 2011

1. (a) There are outstanding guarantees given by Banks amounting to Rs.28,688,807 (2010 - Rs.23,123,527). (b) Bills discounted with Banks Rs.2,989 (2010 - Rs.51,443).

2. (a) Te Company has entered into non-cancellable operating lease for office, warehouses and employee accommodation. The obligation for non-cancellable operating lease is Rs.91,926 (2010 - Rs.78,935) payable within one year and Rs.97,767 (2010 - Rs.114,339) payable later than one year but not later than five years and payable after five years Rs.148,869 (2010 - Rs.170,858) as on 31st March 2011. Rental expenses towards non-cancellable operating lease charged to the Profit and Loss Account for the year amounts to Rs.143,509 (2010 - Rs.212,704).

(b) The Company has entered into cancellable operating leases for office, warehouses and employee accommodation. Tenure of leases generally vary between 1 to 3 years. Terms of the lease include operating term for renewal, terms of cancellation, etc.. Related lease rentals aggregating Rs.59,723 (2010 - Rs.54,756) have been debited to the Profit and Loss Account during the year.

3. Contingent Liabilities:

31st March, 2011 31st March, 2010

a) Claims not acknowledged as Debts Interest (others) 600 600

Professional Tax 434 434

b) Uncalled liability on partly paid shares 100 100

c) Sales Tax / Value Added Tax 260,582 261,699

d) Entry Tax 16,051 1,387

e) Income Tax [Also refer item (g) below] 3,990 3,990

f) Service Tax [Also refer item (h) below] 75,929 46,012

g) The Company claimed certain deduction under the provision of the Income-tax Act,1961 up to the Assessment year 2009-10. In respect of the Assessment Years 2005-06 to 2008-09 the deduction was disallowed by the Income Tax Authorities and for those Assessment Years, the Company's appeals are currently pending before the said appellate authorities. However, on the basis of legal opinion obtained, the Company being eligible to such Benefit, has challenged the issue by a writ petition before the Hon'ble Calcutta High Court and obtained interim stay order from the said High Court restraining the Tax Authorities from enforcing any demand against the Company. In the meantime on the basis of direction of the Hon'ble Supreme Court, the case has been transferred to Hon'ble Bombay High Court for hearing with other similar cases where the matter is pending. The estimated tax impact in this regard is Rs.159,692 (2010 - Rs.256,594).

h) Show-cause cum demands aggregating for Rs.989,237 (2010 - Rs.989,237) on certain matters relating to Service Tax issued by the concerned Tax Authorities in Kolkata during previous years have been challenged by the Company by writ petitions currently pending before the Hon'ble Calcutta High Court. Further, show- cause cum demand aggregating Rs.148,091 (2010 - Rs.66,943) and for Rs.20,779 (2010 - Rs.81,148) on similar matters relating to Service Tax issued by the concerned tax authorities in Delhi during previous years and current year respectively have also been challenged/is being challenged by the Company before the Hon'ble Delhi High Court. According to a legal opinion obtained in this regard, the contention of the Tax

Authorities and consequent demand of Service Tax are not valid in law. Based on the aforesaid legal opinion the management is of the view that the disputed tax amount, though not admitted, in this regard should not exceed Rs.106,523 (2010 - Rs.102,199).

4. Capital commitments not provided for Rs.277,122 (Net of advance) (2010 – Rs.207,137).

5. Year-end exchange fluctuation loss of Rs.73,411 (2010 - Rs.60,972) pertaining to a foreign currency loan, which is fully hedged by derivative contracts with a year-end mark to market gain of Rs.77,586 (2010 - Rs.80,149), has not been provided for as according to management the loan is fully hedged and the aforesaid loss / gain are notional in nature.

6. The Company has long term strategic investments in shares of Simplex Infrastructures Libya Joint Venture Co. (Simplex Libya), a subsidiary company, located in Libya with the Company's ownership interest being 65%, the year end book value of which is Rs.38,688 (Schedule 6). Further year end Sundry Debtors - considered good (Schedule 8) and Advance to Subsidiaries - considered good (Schedule 11) includes Rs.105,942 and Rs.38,507 respectively due from Simplex Libya.

In view of current political crisis and unrest prevailing in Libya, and consequential stoppage of business activities, complete information relating to Simplex Libya are not available and audit of the financial statements for the year 2010-11 of Simplex Libya could not be carried out. However, as per the financial statements for the year 2010-11 of Simplex Libya as prepared by the Management, its year end net worth has been substantially eroded.

After the improvement of the political situation in Libya and upon resuming business activities, the Company will be in a position to make a detailed review of the situation and assess recoverability of its total exposure as aforesaid.

Pending such review/assessment and considering the long term strategic business interest, in the opinion of the Company, no adjustment to the carrying amounts of investments in and receivables from Simplex Libya is considered necessary at this stage.

7. EMPLOYEE BENEFITS.

a) In terms of the Guidance on implementing Accounting Standard (AS) 15 on Employee Benefits issued by the Accounting Standard Board of the Institute of Chartered Accountants of India, a Provident Fund set up by the Company is treated as a defined benefit plan in view of the Company's obligation to meet interest shortfall, if any. However, there is no such interest shortfall at the year end. According to the management on the basis of consultation with an actuary, actuarial valuation cannot be applied reliably to measure provident fund liabilities as at the year end in the absence of any guidance from the Actuarial Society of India. Accordingly, complete information required to be considered as per AS 15 in this regard are not available and the same could not be disclosed. During the year, the Company has contributed Rs.39,928 (2010 - Rs.33,633) to the Provident Fund.

b) defined Contribution Plans.

The Company has recognised, in the Profit and Loss Account for the year ended 31st March, 2011 an amount of Rs.39,755 (2010 - Rs.31,768) as expenses under defined contribution plans.

c) Post Employment defined benefit Plans i) a) Gratuity (Funded)

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. As per the scheme, the Gratuity Trust fund managed by the Trust, make payment to vested employees on retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's eligible salary (half month's salary) depending upon the tenure of service subject to a maximum limit of twenty months salary or amount payable under Payment of Gratuity Act whichever produces higher Benefit. Vesting occurs upon completion of five years of service. Liabilities with regard to the Gratuity plan are determined by actuarial valuation as set out in Note 1(k) above, based upon which, the Company makes contribution to the Gratuity fund.

b) Gratuity (Unfunded)

The Company provides for gratuity, a defined benefit retirement plan covering employees of a foreign branch. As per the scheme, the Company makes payment to vested employees on retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's eligible salary (one month's salary) depending upon the tenure of service subject to a maximum limit of twenty month's salary. Vesting occurs upon completion of one year of service. Liabilities with regard to the unfunded Gratuity plan are determined by actuarial valuation as set out in Note 1(k) above.

ii) End of Service benefit / Severance Pay [ESB/SP] (Unfunded)

The Company provides for End of Service benefit / Severance Pay (unfunded) defined benefit retirement plans for certain foreign branches covering eligible employees. As per the schemes, the Company makes payment to vested employees on retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's eligible salary for specified number of days (ranging from fifteen days to one month) depending upon the tenure of service (maximum limit varies from one month to twenty four months). Vesting occurs upon completion of one year of service. Liabilities with regard to the End of Service benefit / Severance Pay Scheme are determined by actuarial valuation as set out in Note 1(k) above.

iii) Leave Encashment Scheme [LES] (Unfunded)

The Company provides for accumulated leave benefit for eligible employees payable at the time of retirement of service subject to maximum of ninety / one hundred twenty days and in case of foreign branches actual number of days outstanding based on last drawn salary.

8. a) Repairs and renewals under Schedule 14 comprises Repairs to Machinery Rs.10,508 (2010 - Rs.5,478) and Repairs Others Rs.14,312 (2010 - Rs.10,044).

b) Other Expenses under Schedule 14 includes Rent Rs.536,946 (2010 - Rs.503,417), Equipment Hire Charges Rs.1,957,684 (2010 - Rs.1,443,299), Insurance Rs.6,541 (2010 - Rs.3,092), Staff Welfare Expenses Rs.90,973 (2010 - Rs.57,099), Repairs to Machinery Rs.189,174 (2010 - Rs.161,604) and Repairs Others Rs.44,099 (2010 - Rs.20,209).

c) Expenses on Power and Fuel Rs.1,373,876 (2010 - Rs.1,097,680) included in Stores Consumed and Other Expenses under Schedule 14.

d) Miscellaneous Expenses under Schedule 17 include Derivative loss of Rs.2,939 (2010 - Rs.4,302).

9. Work in Progress include Salaries and Wages (including amount paid / payable to Sub-contractors) Rs.262,827 (2010 - Rs.50,266) and rent Rs.12,458 ; (2010 - Rs.2,936).

10. MAT Credit Entitlement of Rs.179,022 (2010 - Rs. Nil), recognised in these accounts, relates to an earlier year which has since been allowed to be carried forward by the Income Tax authorities after completion of assessment.

11. Loans and Advances include the amount due from an officer of the Company Rs.790 (2010 - Rs.Nil) [Maximum Balance due at any time during the year Rs.1,000 (2010 - Rs.Nil)]

12. Previous year's figures are rearranged / regrouped, where necessary, to make the same comparable with the current year's figures.


Mar 31, 2010

1. (a) There are outstanding guarantees given by Banks amounting to Rs.23,127,527 (2009 - Rs.20,863,115). The above guarantees are secured by the security as recited under Working Capital Loans from Banks in Schedule 3. (b) Bills discounted with Banks Rs. 51,443 (2009, Rs. Nil).

2. Obligations under Finance Lease arrangements:

The Company acquired Vehicles, Plant and Machineries and Tools under Finance Lease/ Hire Purchase Scheme. Minimum lease payments outstanding as at 31st March,2010 in respect of these assets are as under:

3. (a) The Company has entered into non-cancellable operating lease for office, warehouses and employee accommodation.

The obligation for non-cancellable operating lease is Rs.78,935 (2009 - Rs.99,778) payable within one year and Rs.114,339 (2009 - Rs.178,382) payable later than one year but not later than five years and payable after five years Rs.170,858 (2009 - Rs.206,369) as on 31st March 2010. Rental expenses towards non-cancellable operating lease charged to the Profit and Loss Account for the year amounts to Rs.212,704 (2009 - Rs.112,490).

(b) The Company has entered into cancellable operating lease for office, warehouses and employee accommodation. Tenure of leases generally vary between 1 to 3 years. Terms of the lease include operating term for renewal, terms of cancellation, etc.. Related lease rentals aggregating Rs.54,756 ( 2009 - Rs.53,448) have been debited to Profit and Loss Account during the year.

4. Contingent Liabilities:

31st March, 2010 31st March, 2009 a) Claims not acknowledged as Debts Interest (others) 600 600 Professional Tax 434 434

b) Uncalled liability on partly paid shares 100 100

c) Sales Ta x / Value Added Tax 261,699 32,268

d) Entry Tax 1,387 1,387

e) Income Ta x [Also refer item (g) below] 3,990 3,990

f) Service Ta x [Also refer item (h) below]46,012 -

g) The Company claimed certain deduction under the provision of the Income-tax Act,1961 upto the Assessment year 2009-10. In respect of the Assessment Years 2005-06 to 2008-09 the deduction was disallowed by the Income Ta x Authorities and for those Assessment Years, the Companys appeals are currently pending before the said appellate authorities. However, on the basis of legal opinion obtained, the Company being eligible to such benefit, has challenged the issue by a writ petition before the Honble Calcutta High Court and obtained interim stay order from the said High Court restraining the Tax Authorities from enforcing any demand against the Company. In the mean time on the basis of direction of the Honble Supreme Court, the case has been transferred to Honble Bombay High Court for hearing with other similar cases where the matter is pending. The estimated tax impact in this regard is Rs.256,594 (2009 - Rs.310,604).

h) Show-cause cum demand notices for Rs.591,571(2009 - Rs.591,571) and Rs.397,665 (2009 - Rs.Nil) on certain matter relating to Service Ta x issued by the concerned Ta x Authorities in Kolkata during previous years and current year respectively have been challenged by the Company by writ petitions currently pending before the Honble Calcutta High Court. Further, show-cause notices for Rs.66,943 (2009 - Rs.66,943) and Rs.81,148 (2009 - Rs.Nil) on similar matter relating to Service Ta x issued by the concerned tax authorities in Delhi during previous year and current year respectively has also been challenged/is being challenged by the Company before the Honble Delhi High Court. According to a legal opinion obtained in this regard, the contention of the Tax Authorities and consequent demand of Service Tax is not valid in law. Based on the aforesaid legal opinion the management is of the view that even in case of an adverse decision, tax impact in this regard should not exceed Rs.102,199 (2009 - Rs.63,464).

5. Capital commitments not provided for Rs.207,137 (Net of advance) (2009 – Rs.88,371).

6. Year-end exchange fluctuation loss of Rs.60,972 (2009 - Rs.113,664) pertaining to a foreign currency loan, which is fully hedged by derivative contracts with a year-end mark to market gain of Rs.80,149 (2009 - Rs.139,582), has not been provided for as according to management the loan is fully hedged and the aforesaid loss / gain are notional in nature.

7.On 4 October 2007, the Company had allotted 5,500,000 warrants at a price of Rs.401/- per warrant to a promoter group company, in accordance with Section 81 (1A) of the Companies Act, 1956 and Chapter XIII of Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000. Each warrant was convertible into one Equity Share of nominal value of Rs.2/- each at a price of Rs.401/- per share at the option of the warrant holder within eighteen months from the date of allotment in accordance with relevant SEBI Guidelines. Such option was exercised by the allottee company during 2007-2008 with regard to 200,000 warrants only and accordingly at the expiry of the aforesaid stipulated time-frame the remaining 5,300,000 warrants stood lapsed and were cancelled by forfeiting the amount of Rs.212,530 received in earlier years against issue of those warrants by crediting Capital Reserve Account.

8.EMPLOYEE BENEFITS.

a) In terms of the Guidance on implementing Accounting Standard (AS) 15 on Employee Benefits issued by the Accounting Standard Board of the Institute of Chartered Accountants of India, a Provident Fund set up by the Company is treated as a defined benefit plan in view of the Companys obligation to meet interest shortfall, if any. However, there is no such interest shortfall at the year end. According to the management on the basis of consultation with an actuary, actuarial valuation cannot be applied reliably to measure provident fund liabilities as at the year end in the absence of any guidance from the Actuarial Society of India. Accordingly, complete information required to be considered as per AS 15 in this regard are not available and the same could not be disclosed. During the year, the Company has contributed Rs.33,633 ( 2009 - Rs.33,029) to the Provident Fund.

b) Defined Contribution Plans.

The Company has recognised, in the Profit and Loss Account for the year ended 31st March, 2010 an amount of Rs.31,768 (2009 - Rs.31,357) as expenses under defined contribution plans.

c) Post Employment Defined Benefit Plans i) Gratuity (Funded)

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. As per the scheme, the Gratuity Trust fund managed by the Trust, make payment to vested employees on retirement, death, incapacitation or termination of employment, of an amount based on the respective employees eligible salary (half months salary) depending upon the tenure of service subject to a maximum limit of twenty months salary or amount payable under Payment of Gratuity Act whichever produces higher benefit. Vesting occurs upon completion of five years of service. Liabilities with regard to the Gratuity plan are determined by actuarial valuation as set out in Note 1(k) above, based upon which, the Company makes contribution to the Gratuity fund.

ii) End of Service Benefit / Severance Pay [ESB/SP] (Unfunded)

The Company provides for End of Service Benefit / Severance Pay (unfunded) defined benefit retirement plans for certain foreign branches covering eligible employees. As per the schemes, the Company makes payment to vested employees on retirement, death, incapacitation or termination of employment, of an amount based on the respective

employees eligible salary for specified number of days (ranging from fifteen days to one month) depending upon the tenure of service (maximum limit of two years salary in case of a foreign branch). Vesting occurs upon completion of one year of service. Liabilities with regard to the End of Service benefit / Severance Pay Scheme are determined by actuarial valuation as set out in Note 1(k) above.

iii) Leave Encashment Scheme [LES] (Unfunded)

The Company provides for accumulated leave benefit for eligible employees payable at the time of retirement of service subject to maximum of ninety / one hundred twenty days and in case of foreign branches actual number of days outstanding based on last drawn salary.

9. Sundry Creditors include Rs.Nil (2009 - Rs.285 ) on account of outstanding installment dues under Finance Lease.

10. a) Other Expenses under Schedule 14 includes Rent Rs.503,417 (2009 - Rs.536,043), Equipment Hire Charges

Rs.1,443,299 (2009 - Rs.1,271,687), Insurance Rs.3,092 (2009 - Rs.19,228), Staff Welfare Expenses Rs.57,099 (2009 - Rs.60,247), Repairs to Machinery Rs.161,604 (2009 - Rs.58,492) and Repairs Others Rs.20,209 (2009 - Rs.19,504).

b) Expenses on Power and Fuel Rs.1,097,680 (2009 - Rs.1,176,605) included in Stores Consumed and Other Expenses under Schedule 14.

c) Repairs and renewals under Schedule 14 comprises of Repairs to Machinery Rs.5,478 (2009 - Rs.8,339) and Repairs Others Rs.10,044 (2009 - Rs.12,424).

d) Miscellaneous Expenses under Schedule 17 include Derivative loss of Rs.4,302 (2009 - Rs.60,244).

11. Work in Progress include Salaries and Wages (including payment to sub-contractors) Rs.50,266 (2009 - Rs.29,009) and rent Rs. 2,936 ; (2009 - Rs.1,335)

12. Segment information for the year ended 31st March, 2010

The Company considers business segment as primary segment for disclosure of segment information. Business segments have been identified as Construction business and Others which includes income from wind mill and hire of plant and equipment including oil drilling rig.

13. Previous years figures are rearranged / regrouped, where necessary, to make the same comparable with the current years figures.

Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X