Notes to Accounts of HEC Infra Projects Ltd.

Mar 31, 2018

NOTE 1 :

Corporate Information :

HEC Infra Projects Limited is a public company incorporated in India. Its shares are listed on the emerge platiorm of the National Stock Exchange of India. The Company is mainly engaged in the electrification services.

The significant accounting policies followed by the company are as stated below :

2.1 TERMS/RIGHTS ATTACHED TO EQUITY SHARE

The company has only one class of Equity Shares having a par value of Rs. 10/- per share. Each equity Share Holder is entitled to one vote par Share.

2.2 DIVIDEND

The Dividend proposed by the Board of Directors is Rs. 1 per share which is subject to approval of the Share holders in the ensuing Annual General Meeting. The Company declares and pays dividends in Indian Rupees.

2.3 During the financial year 2013-14 company has issued 697666 bonus shares in the ratio of 1:1 utilising share premium account

2.4 During the financial year 2014-15 company has redeemed 93500 preference shares by way of conversion into equity shares.

2.5 In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. The holders of Partly Paid Equity Shares will have to contribute unpaid amount on the the Equity Shares held by them. As per records of the company including its register of members and other declarations received from them regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares

2.6 No Shares has been Reserved for Issue under the Employee Stock Option (ESOP).

2.7 No Share options are outstanding at the end of the year.

2.8 Pursuant to the initial public offer some of the shares are locked in from the date of allotment of fresh shares in the IPO viz. from 23rd March 2016, as under :

(a) 414000 shares held by the the promoter, for a Period of three year.

Company has taken secured loan facility from SIDBI “Small Industries Development Bank of India” . The same has been secured by subservient charge on all the movable and immovable assets of the borrower already charged to Bank of India. Such charges would be subsurvient to all the existing and prospective charges created/ to be created by the borrower on the said assets in favour of Bank of India,which has extended/would extend busines loans(viz. term loans for machineries,business premises and working capital) to the borrower for the same business for which SIDBI has extended the sub-debt. All such aforesaid lenders would be referred to as “ Senior Secured Lenders”.Company has also given irrevocable and unconditional gurantee of directors 1) Shri Gaurang P shah 2) Rupal G Shah and all such persons hoding a stake of more than 10% in the company.Over and above this, company has also liened Fixed deposit amounting to Rs. 2500000.

3.1 Cash Credit facilities from Bank of India is secured by way of hypothecation of stock, book debts and other current assets of the company both present and future and is also secured by personal guarantee of directors. It is also collaterally secured by hypothecation of Plant & Machinery and Equitable mortgage of Following properties.(1) Office premises-61 6th floor, Titanium, Nr. Prahaladnagar, Ahmedabad owned by the company (2) Corporate house no 6 , Sigma corporate 1, Sindhu Bhavan road, Bodakdev, Ahmedabad . Over and above this, personal property of Directors Shri Gaurang P. Shah & Smt. Rupal G. Shah’s has been given as a Collateral security.

Interest rates on Cash Credit Accounts are varying , which are linked to base rate of Bank from time to time.

*This fixed deposit is liened in favour of Bank of India as cash margin for bank guarantee limits utilized from the Bank.

#This fixed deposit lis liened in favour of SIDBI as security towards loan of Rs. 4 crores (oustanding of Rs. 2.5 crores as on 31 March 2018) sanctioned.

NOTE - 4

CONTINGENT LIABILITY

(a) Estimated amounts of contracts remaining to be executed which are under process - Rs. 7956.70 Lakh

(b) Estimated amounts of contracts remaining to be executed which are yet to begin - Rs. 4500.00 Lakh

NOTE - 5

INITIAL PUBLIC OFFER

During the financial year 2015-16, the company has made an Initial public Offer(IPO) for 538800 equity shares of Rs. 10 each.The equity shares were issued at a price of Rs. 100 per share (Including premium of Rs. 90 per share). During the year company has received Rs. 538.80 lacs from the proceeds received in the IPO.

NOTE - 6

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

Additional Information required to be given pursuant to the Schedule III of The Companies Act, 2013 are either Nil or not applicable and hence not disclosed for better presentation of accounts.

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Mar 31, 2016

1:In the above given share details 12400 shares have been clubbed with Mrs. Rupal Gaurang Shah which are jointly held by Mrs Rupal Gaurang Shah & Mr Gaurang Parmananddas Shah

TERMS/RIGHTS ATTACHED TO EQUITY SHARE

The company has only one class of Equity Shares having a par value of Rs. 10/- per share.

Each equity Share Holder is entitled to one vote par Share.

DIVIDEND

The Dividend proposed by the Board of Directors is subject to approval of the Share holders in the ensuing Annual General Meeting. The Company declares and pays dividends in Indian Rupees.

During the financial year 2013-14 company has issued 697666 bonus shares in the ratio of 1:1 utilizing share premium account.

During the financial year 2014-15 company has redeemed 93500 preference shares by way of conversion into equity shares.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. The holders of Partly Paid Equity Shares will have to contribute unpaid amount on the Equity Shares held by them. As per records of the company including its register of members and other declarations received from them regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

No Shares has been Reserved for Issue under the Employee Stock Option (ESOP).

No Share options are outstanding at the end of the year.

Pursuant to the initial public offer some of the Company are locked in from the date of allotment of fresh shares in the IPO viz. from 23rd March 2015, as under:

414000 shares held by the promoter, For a Period of three year.

1074832 shares held by the promoter and promoter group, for a period of one year.

2: INITIAL PUBLIC OFFER

During the year, the company has made an Initial public Offer(IPO) for 538800 equity shares of Rs. 10 each. The equity shares were issued at a price of Rs. 100 per share (Including premium of Rs. 90 per share). During the year company has received RS.538.80 lacs from the proceeds received in the IPO. It has utilized sum of Rs. 3760500 towards the public issue expenses and the balance amount is kept with Bank Of India.

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

Additional Information required to be given pursuant to the Schedule III of The Companies Act, 2013 are either Nil or not applicable and hence not disclosed for better presentation of accounts.

4: COMMITMENTS

5. Estimated amounts of contracts remaining to be executed which are under process- Rs. 7810.45 Lakh

6. Estimated amounts of contracts remaining to be executed which are yet to begin -Rs. 5520.70 Lakh

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Mar 31, 2015

1. Details of Security and disclosure for Loan (As referred to Note no. 4 & 5):

Bank of India cash credit Account, Bank of India Corporate loan, & Bank of India mortgage loan a/c are principal secured against all stocks, books debts, term deposits, & Collateral security of Directors Shri Gaurang P. Shah &SmtRupal G. Shah''s personal property (1) Residental Bunglow 59, Milan Park, Sandesh press road, Vastrapur, Ahmedabad owned by Shri Gaurang P. Shah (2) Residential flat no E-54 Royal Orchid, Prahaladnagar road, Ahmedabad owned by Smt Rupal G. Shah(3) Office premises-61 6^th floor, Titanium, Nr. Prahaladnagar, Ahmedabad owned by the company(4) Corporate house no 6, Sigma corporate 2. Sindhu Bhavan road, Bodakdev, Ahmedabad owned by the company(5) Lien of LIC policies of Shri Gaurang P. Shah (6) Plant & Machinery (other than vehicles & office building) owned by the Company.

3. The outstanding balances of certain Trade Receivables, Trade Payables, Deposits, Advances and Other Current Assets/Liabilities are subject to confirmation and reconciliation, if any. However, in the opinion of the management, adjustment, if any, will not material.

4. The Company does not have any employee whose particulars are required to be disclosed pursuant to Rule 5(2) and 5(3) of The Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

5. At the time of issue of the Preference Shares the ratio of conversion was not specified. However during the year the Preference Shares were converted in ratio of 1: 1. For the previous year also we have presumed die Preference Shares will be converted in the ratio of 1:1.

6. Expenditure in Foreign currency is Nil and Income in Foreign Currency is Rs. Nil

7. According to the information available with the Company regarding the suppliers who constituted a Micro Small or Medium Enterprise [ MSME] , there are no amounts due to Small Scale Industrial Undertaking as on 31.3.2015

8. Contingent Liability in respect of Bills discounted : Rs 241.95 Lacs ( previous year Rs. 117.07 Lacs)

9. Import calculated on CIF basis is NIL.

10. The Company operates in a Single Segment namely electrification services and within India and hence segment reporting is not applicable.

11. The Key Managerial Personnel Remuneration is within the permissible limits of The Companies Act, 2013 and the rules made there under.

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

13. Additional Information required to be given pursuant to the Schedule III of The Companies Act, 2013 are either Nil or not applicable and hence not disclosed for better presentation of accounts.