Notes to Accounts of MEP Infrastructure Developers Ltd.
Mar 31, 2018
b) Equipment loans from financial institution of Rs, 125.18 lakhs (March 31, 2017 : Rs, 38.54 lakhs) carries an interest rate of 10.70% - 11.90% p.a. The loan is repayable in 23 - 46 monthly installments along with interest. The loans are secured by way of hypothecation of the respective equipments.
* Refer to Note 24 for Current Portion of Mobilisation advance.
* Mobilisation Advance from MEP Infrastructure Private Limited (subsidiary company) Rs, 22,891.07 lakhs (previous year : Rs, 21,983.78 lakhs) pursuant to a contract for maintenance of structures, flyovers etc at five Mumbai Entry Points.
* Mobilisation Advance from MEP Nagpur Ring Road 1 Private Limited (Jointly Controlled Entity) Rs, Nil (previous year : 3,421.59 lakhs) pursuant to a contract, pertaining to Construction of road under Hybrid annuity model.
* Mobilisation Advance from MEP Sanjose Nagpur Ring Road 2 Private Limited (Jointly Controlled Entity) Rs, Nil (previous year : Rs, 4,572.61 lakhs) pursuant to a contract, pertaining to Construction of road under Hybrid annuity model.
* Mobilisation Advance from MEP Sanjose Arawali Kante Road Private Limited (Jointly Controlled Entity) Rs, 268.11 lakhs (previous year : Rs, 4,657.12 lakhs) pursuant to a contract, pertaining to Construction of road under Hybrid annuity model.
* Mobilisation Advance from MEP Sanjose Kante Waked Road Private Limited (Jointly Controlled Entity) Rs, Nil (previous year : Rs, 6,068.31 lakhs) pursuant to a contract, pertaining to Construction of road under Hybrid annuity model.
* Mobilisation Advance from MEP Sanjose Talaja Mahuva Road Private Limited (Jointly Controlled Entity) Rs, Nil (previous year : Rs, 526.53 lakhs) pursuant to a contract, pertaining to Construction of road under Hybrid annuity model.
* Mobilisation Advance from MEP Sanjose Mahuva Kagavadar Road Private Limited (Jointly Controlled Entity) Rs, Nil (previous year : Rs, 234.79 lakhs) pursuant to a contract, pertaining to Construction of road under Hybrid annuity model.
Refer to Note 32 for liquidity risk.
Nature of Security and terms of repayment (I) Short Term Secured borrowings
A) Term Loans from bank amounting Rs, Nil (March 31, 2017 : Rs, 3,350.00 lakhs) is secured as below:
(a) First and pari passu charge on entire fixed/current assets of the Company which are not exclusively charged to other Banks/ Lenders.
(b) First charge / hypothecation / assignment of security interest on Escrow account of the projects financed;
(c) First charge by way of hypothecation of all the movable assets, present and future, of the projects financed.
(d) Debt Service Reserve Account (DSRA) to be maintained for an amount equivalent to the 3 months of interest servicing.
(e) Corporate guarantee given by Ideal Toll and Infrastructure Private Limited;
(f) Personal Guarantee given by Mr. Jayant D. Mhaiskar director of the Company; The term loan carries an interest rate calculated on base rate of the bank plus a spread of 2.30% p.a. The loan is repayable in bullet upon release of Bid/Performance Security by the Authority of the project financed.
B) Term Loans from bank amounting Rs, Nil (March 31, 2017 : Rs, 386.58 lakhs) is secured as below:
(a) by Hypothecation / assignment of receivables to be generated from the Toll collection at Saukala toll plaza ;
(b) 1pari passu charge on the project cash flows of saukala toll collection project with the BG issuing bank and exclusive charge over the performance security deposit with NHAI,
(c) First charge by way of hypothecation of all the movable assets, present and future, of the projects financed.
(d) Personal Guarantee given by Mr. Jayant D. Mhaiskar and Mrs. Anuya J. Mhaiskar, director of the Company; The term loan carries an interest rate calculated on base rate of the bank plus a spread of 3.25% p.a. below PLR. The loan is repayable in 12 monthly installments from the date of first disbursement commencing from October 2016.
C) Term Loans from bank amounting Rs, Nil (March 31, 2017 : Rs, 415.60 lakhs) is secured as below :
(a) by Hypothecation / assignment of receivables to be generated from the Brijghat Toll collection account of the projects financed;
(b) by Hypothecation of other movable assets, like toll equipment and performance security deposit receivable;
(c) Personal Guarantee given by Mr. Jayant D. Mhaiskar, Director of the Company; The term loan carries an interest rate calculated on rate of 11.90 % p.a. (floating) at monthly rest. The loan is repayable in 12 monthly installments commencing from February 2017.
D) Term Loans from bank amounting Rs, 402.50 lakhs (March 31, 2017 : '' Nil) is secured as below :
(a) by Hypothecation / assignment of receivables to be generated from the Chennasamudram Toll collection account of the projects financed;
(b) by Hypothecation of other movable assets, like toll equipment and performance security deposit receivable;
(c) Personal Guarantee given by Mr. Jayant D. Mhaiskar, Director of the Company; The term loan carries an interest rate calculated on rate of 11.90 % p.a. (floating) at monthly rest. The loan is repayable in 12 monthly installments commencing from October 2017.
E) Term Loans from financial institution amounting Rs, Nil (March 31, 2017 : Rs, 300.00 lakhs) is secured by Pledge of shares of the Company to provide 2.5 times of security. The term loan carries an interest rate 18.00% p.a. The loan is repayable in 61 days from the date of disbursement commencing from 17 May 2017.
F) Term Loans from financial institution amounting Rs, 408.33 lakhs (March 31, 2017 : Rs, Nil).
The term loan carries an interest rate 12.25% p.a. The loan is repayable in 11 monthly installments commencing from November 2017. The loan is secured against respective equipments.
* Mobilisation Advance from MEP Infrastructure Private Limited (Subsidiary company) Rs, 1,875.52 lakhs (previous year : Rs, 1,568.12 lakhs) pursuant to a contract for maintenance of structures, flyovers etc at five Mumbai Entry Points.
* Mobilisation Advance from MEP Nagpur Ring Road 1 Private Limited (Jointly Controlled Entity) Rs, 5,068.14 lakhs (previous year : Rs, 3,858.39 lakhs) pursuant to a contract, pertaining to Construction of road under Hybrid annuity model.
* Mobilisation Advance from MEP Sanjose Nagpur Ring Road 2 Private Limited (Jointly Controlled Entity) Rs, 7,256.05 lakhs (previous year : Rs, 4,220.88 lakhs) pursuant to a contract, pertaining to Construction of road under Hybrid annuity model.
* Mobilisation Advance from MEP Sanjose Arawali Kante Road Private Limited (Jointly Controlled Entity) Rs, 6,175.82 lakhs (previous year : Rs, 2,507.68 lakhs) pursuant to a contract, pertaining to Construction of road under Hybrid annuity model.
* Mobilisation Advance from MEP Sanjose Kante Waked Road Private Limited (Jointly Controlled Entity) Rs, 8,116.76 lakhs (previous year : Rs, 2,855.67 lakhs) pursuant to a contract, pertaining to Construction of road under Hybrid annuity model.
* Mobilisation Advance from MEP Sanjose Talaja Mahuva Road Private Limited (Jointly Controlled Entity) Rs, 7,998.57 lakhs (previous year : Rs, 351.02 lakhs) pursuant to a contract, pertaining to Construction of road under Hybrid annuity model.
* Mobilisation Advance from MEP Sanjose Mahuva Kagavadar Road Private Limited (Jointly Controlled Entity) Rs, 6,569.01 lakhs (previous year : Rs, 126.43 lakhs) pursuant to a contract, pertaining to Construction of road under Hybrid annuity model.
note 1- financial RISK management
The Company has exposure to the following risks arising from financial instruments:
- Credit risk;
- Liquidity risk; and
- Market risk
i. Risk management framework
The Companyâs board of directors is primarily responsible to develop and monitor Companyâs Risk Management framework. The Company has a risk management policy in place.
The Companyâs risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Companyâs activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
ii. credit risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations.
Credit risk on its receivables is recognized on the statement of financial position at the carrying amount of those receivable assets, net of any provisions for doubtful debts. Receivable balances and deposit balances are monitored on a monthly basis with the result that the Companyâs exposure to bad debts is not considered to be material.
The Company has no significant concentrations of credit risk. It has policies in place to ensure that sale transactions are made to customers with an appropriate credit history.
The Company does not have any credit risk outside India.
Management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk. cash equivalents & Other bank balances/deposits
The Company held cash equivalents and other bank balances/deposits of '' 6,474.54 lakhs at March 31, 2018 (March 31, 2017 : '' 6,403.85 lakhs). The cash equivalents and other bank balances/deposits are held with banks with good credit ratings.
iii. Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a reasonable price. The Companyâs treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related such risk are overseen by senior management. Management monitors the Companyâs net liquidity position through rolling forecasts on the basis of expected cash flows.
iv. Market risk
Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates will affect the Companyâs income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.
iv (a). Currency risk:
The risk that the value of a financial instrument will fluctuate because of changes in foreign exchange rates. Since company does not have any foreign exchange transactions, it is not exposed to this risk.
iv (b). Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs long-term debt obligations with floating interest rates.
NOTE 2 - SEGMENT INFORMATION
primary business segments:
The Company has identified business segments in accordance with Indian Accounting Standard 108 "Operating Segment" notified under section 133 of Companies Act 2013, read together with relevant rules issued thereunder. Accordingly, the Company has identified two business segments as mentioned below:
Toll collection, Operation & Maintenance:
Collection of toll as per the contracts entered with various Government authorities and providing road repairs and maintenance of flyovers, roads and allied structures to its subsidiaries.
construction:
Construction of roads as per the Engineering, Procurement and Construction (EPC) Contracts entered into with its Jointly Controlled Entities.
The following tables present revenue and profit information regarding the business segments for the year ended March 31, 2018 and March 31, 2017 and certain asset and liability information regarding industry segments as at March 31, 2018 and March 31, 2017.
NOTE 3- RELATED PARTY DISCLOSURES
A) Names of related parties where control exists
Subsidiary Companies MEP Infrastructure Private Limited
Raima Ventures Private Limited
Rideema Toll Private Limited
MEP Nagzari Toll Road Private Limited
MEP IRDP Solapur Toll Road Private Limited
MEP Highway Solutions Private Limited
Rideema Toll Bridge Private Limited
Raima Toll Road Private Limited
MEP Hyderabad Bangalore Toll Road Private Limited
MEP Chennai Bypass Toll Road Private Limited
MEP RGSL Toll Bridge Private Limited
MEP Tormato Private Limited
Raima Toll and Infrastructure Private Limited
MEP Infraprojects Private Limited
MEP Toll & Infrastructure Private Limited
MEP Infra Constructions Private Limited
Mhaiskar Toll Road Private Limited
MEP Roads & Bridges Private Limited
MEP Foundation (6th July, 2016 onwards)
Step down Subsidiaries Baramati Tollways Private Limited (a subsidiary of Rideema Toll Private Limited)
Associate Concern Ideal Toll & Infrastructure Private Limited
A J Tolls Private Limited
Jointly Controlled Entities KVM Technology Solutions Private Limited
SMYR Consortium LLP
MEP Sanjose Arawali Kante Road Private Limited MEP Sanjose Kante Waked Road Private Limited MEP Sanjose Nagpur Ring Road 2 Private Limited MEP Nagpur Ring Road 1 Private Limited MEP Sanjose Mahuva Kagavadar Road Private Limited MEP Sanjose Talaja Mahuva Road Private Limited MEPIDL Enterprises LLC
Other related parties with whom transactions have taken place during the year
key management personnel (KMp) Mr. Jayant Mhaiskar
Mr. Murzash Manekshana Mr. M. Sankaranarayanan Mr. Pandurang B Dandawate Mr. Harshad Pusalkar
Enterprises owned or significantly influenced / controlled IEPL Power Trading Company Private Limited by key management personnel or their relatives where Ideal Energy Projects Limited there are transactions. MEP Toll Gates Private Limited
VCR Toll Services Private Limited MEP Infracon Private Limited Rideema Enterprises.
Jan Transport D S Enterprises
NOTE 4 - DOMESTIC TRANSFER PRICING
The Indian Finance Bill, 2012 had sought to bring in certain class of domestic transactions in the ambit of the transfer pricing regulations with effect from 1 April 2012. The Companyâs management is of the opinion that its domestic transaction are at armâs length so that appropriate legislation will not have an impact on financial statements, particularly on the amount of tax expense and that of provision for taxation. The Company does not have any international transactions with related parties during the year. Note 43 - Employee Benefits
Defined Contribution Plan
The Company makes provident fund, Employees State Insurance and Maharashtra Labour Welfare Fund contributions for eligible employees. Under the schemes, the Company is required to contribute a specified percentage / fixed amount of the payroll costs to fund the benefits. The contributions as specified under the law are paid to the respective fund set up by the government authority.
The Company has recognized the following amounts in the Statement of Profit and Loss for the year *
Notes:
1. Discount rate
The discount rate is based on the prevailing market yields of Indian government securities for the estimated term of the obligations.
2. Salary escalation rate
The estimates of future salary i
increases considered takes into account the inflation, seniority, promotion and other relevant factors.
3. Assumptions regarding future mortality experience are set in accordance with the statistics published by the Life Insurance Corporation of India.
The above sensitivity analyses have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the reporting date. In practice, generally it does not occur. When we change one variable, it affects to others In calculating the sensitivity, project unit credit method at the end of the reporting period has been applied.
The weighted average duration of the defined benefit obligation is 3.13 years in 2018 and 10.74 years in 2017
The Company makes payment of liabilities from its cash and cash equivalent balances whenever liability arises.
Out of issue proceeds of Rs, 1,61,79.57 lakhs received from the QIP in April, 2018, Rs, 511.31 lakhs were utilized towards share issue expenses and '' 15,668.26 lakhs were utilized for the purpose as stated in the âPlacement Documentâ and there is no unutilized amount pending utilization. The information is given pursuant to Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) (LODR) Regulations, 2015.
NOTE 5
Previous year comparatives
Figures relating to the previous period have been regrouped / rearranged, wherever necessary, to make them comparable with those of the current period.
Mar 31, 2017
1- TAXATION (CONTD.)
2. Reconciliation of effective tax
The table below explains the differences between the expected tax expense, at the Indian statutory tax rate of 34.61% (2016: 34.61% ) payable by corporate entities in India on taxable profits under tax laws in India, and the Companyâs total tax expense for the year.
3- DEFERRED TAX DISCLOSURE (CONTD.)
Significant management judgment is required in determining provision for income tax, deferred income tax liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income in which the relevant entity operates and the period over which deferred income tax assets will be recovered.
Tax losses carried forward
Deferred tax assets have not been recognized in respect of the following item, because it is not probable that future taxable profit will be available against which the Company can use the benefits there from:
4. NON-CURRENT FINANCIAL LIABILITY-BORROWINGS (CONTD.)
5. exclusive charge on specific account opened to route the proceeds from the loan and interest thereon extended to the Ideal Toll & Infrastructure Private Limited by MEP Infrastructure Private Limited, subsidiary company;
6. pledge of 5 lakhs shares of IRB Infrastructure Developers Limited, held by the promoters of the company;
7. pledge of 1.14 crore shares of the Company held by Promoters of the Company (in demat form).
8. first charge over the all bank accounts including but not limited to escrow account opened by MEP Highway Solutions Private Limited, subsidiary company;
9. corporate guarantees given by Ideal Toll & Infrastructure Private Limited and personal guarantee given by Mr. Jayant D. Mhaiskar, Director of the Company
10. Equitable mortgage of 9.56 Ha land, situated at Dhakale Gaon, Baramati District, owned by relative of Promoters of the Company;
The term loan carries an interest rate calculated on base rate of the bank plus a spread of 275 basis points. The term loan is repayable in 127 unequal monthly installments commencing from 1 September 2014.
11. Term loan includes loan from a bank amounting to Rs Nil (March 31, 2016 : Rs Nil and 1st April, 2015: Rs 3,749.34 lakhs) which is secured by way of first charge of hypothecation / assignment / security interest on escrow account of the projects financed and also, by pledge of 500,000 equity shares and negative lien on 250,000 equity shares of IRB Infrastructure Developers Limited held by the promoters of the Company.
Further, the term loan is also secured by corporate guarantee given by Ideal Toll & Infrastructure Private Limited and personal guarantee given by Mr. J.D. Mhaiskar & Mr. D.P. Mhaiskar, Directors of the Company. The term loan carries an interest rate calculated on base rate of the bank plus a spread of 300 basis points. The term loan is repayable in two equal installments of Rs 3,750.00 lakhs commencing from 1 March 2014.
12. Term loan includes a loan from a bank amounting to Rs Nil (March 31, 2016 : Rs 240.00 lakhs and 1st April, 2015: Rs 610.00 lakhs) which is secured by way of assignment / hypothecation of receivables to be generated from the Toll collection account of the projects financed.
Further, the term loan is also secured by corporate guarantee given by Ideal Toll & Infrastructure Private Limited and personal guarantee given by Mr. Jayant D. Mhaiskar, Director of the Company. The term loan carries an interest rate of 13% p.a. The term loan is repayable in 35 unequal monthly installments commencing after one month from the date of first disbursement.
13. Term loan includes a loan from a bank amounting to Rs Nil (March 31, 2016 : Rs 275.42 lakhs and 1st April, 2015: Rs Nil) which is secured as under :
14. hypothecation / assignment of receivables to be generated from the Toll collection account & refund of performance security from authority of the projects financed;
15. equitable mortgage(second charge) on the residential property situated at Mumbai owned by promoters of the Company;
16. personal guarantee of Mr. Jayant D. Mhaiskar, director of the company
The term loan carries an interest rate calculated on rate of 13.00% p.a.(floating at monthly rest) The loan is repayable in 10 monthly installments from the date of disbursement & last installment in lumsum on or before 31st January 2017.
17. Term loan includes a loan from a bank amounting to Rs 1296.22 lakhs (March 31, 2016 : Rs 1483.71 lakhs and 1st April, 2015: Rs Nil) which is secured as under :
18. exclusive charge by way of equitable/registered mortgage on the commercial properties situated at Boomerang building, Chandivali farm road, Andheri East;
19. pledge of 200% shares of amount equivalent to remaing portion of term loan after considering the amount against the property as per security cover in the form of demat shares of the Company;
20. Personal guarantee of Promoter Mr. Jayant D. Mhaiskar, director of the company.
21. NON-CURRENT FINANCIAL LIABILITY-BORROWINGS (CONTD.)
22. DSRA equivalent to 3 months EMI in form of undisbursed overdraft as sublimit of term loan.
The term loan carries an interest rate calculated on base rate plus 0.65% (annual reset) The loan is repayable in 72 monthly installments from the date of disbursement.
23. Term loan includes a loan from a financial institution amounting to Rs 5000.00 lakhs (March 31, 2016 : Rs 5000.00 lakhs and 1st April, 2015: Rs Nil) which is secured as under :
24. First pari -passu charge on approximately 21 acres of leasehold land of 99 years located at Baramati, District Pune, Maharashtra giving a security cover of 1.25 times over the loan facility.
25. DSRA equivalent to 3 months interest servicing in form of FD with scheduled commercial bank lien marked.
26. Subservient charge on all revenues & receivable of the Company
27. Non-Disposal Undertaking (NDU) mechanism along with Power of Attorney (POA) of specified numbers of shares of the Company held by the Promoters of the Company so as to give cover of 1.25 times on the loan amount;
28. Personal guarantee of Promoter Mr. Jayant D. Mhaiskar.
29. Corporate guarantee of Baramati Tollways private Limited (Land mortgagor)
The term loan carries an interest rate calculated on base rate plus spread of 1.80%. The loan is repayable in 36 equal monthly installments beginning from 25th month from the date of disbursement.
30. Term loan from bank amounting to Rs 447.73 lakhs (March 31, 2016 : Rs Nil and 1st April, 2015: Rs Nil) which is secured as under :
31. by Security against receivables generated from Toll collection at Paduna toll plaza (Udaipur-Kherwada section) on NH No 8,
32. performance security deposit receivable from NHAI, Other movable assets like toll equipment etc. used for Toll collection.
33. Personal guarantee of Mr. Jayant D. Mhaiskar, director of the company
The term loan carries an interest rate of 12.50 % p.a. (floating). The loan is repayable in 15 monthly installments commencing from July 2016.
34. Term loan from bank amounting to Rs.364.23 lakhs (March 31, 2016 : Nil and 1st April, 2015: Rs Nil) which is secured as under:
35. by Receivables generated from Toll collection at Ghanghari toll plaza on NH 02 in the state of Jharkhand.
36. Performance security deposit receivable from NHAI,Other movable assets like toll equipment etc.used for toll collection at Ghanghari toll plaza
37. Personal guarantee of Mr. Jayant D. Mhaiskar, director of the company
The term loan carries an interest rate of 11.80 % p.a. (floating). The loan is repayable in 15 monthly installments commencing from October 2016.
38. Vehicle Loans
39. Vehicle loans from banks of Rs 146.62 lakhs (March 31, 2016 : Rs 374.88 lakhs and 1st April, 2015: Rs 314.74 lakhs) carry interest rates ranging from 9.76% - 12.38% p.a. The loans are repayable in 36 monthly installments along with interest. The loans are secured by way of hypothecation of the respective vehicles.
40. Vehicle loans from various financial institutions of Rs 64.15 lakhs (March 31, 2016 : Rs 60.05 lakhs and 1st April, 2015: Rs 28.31 lakhs) carry interest rate ranging from 9.53% - 12.34% p.a. The loans are repayable in 35 - 60 monthly installments along with interest. The loans are secured by way of hypothecation of the respective vehicles.
41. NON-CURRENT FINANCIAL LIABILITY-BORROWINGS (CONTD.)
42. Equipment Loans
43. Equipment loan from bank of Rs 224.47 lakhs (March 31, 2016 : Rs Nil and 1st April, 2015: Rs Nil) carries an interest rate of 9.25% p.a. The loan is repayable in 47 monthly installments along with interest. The loans are secured by way of hypothecation of the respective equipment.
44. Equipment loan from financial institution of Rs 38.54 lakhs (March 31, 2016 : Rs Nil and 1st April, 2015: Rs Nil) carries an interest rate of 11.50% p.a. The loan is repayable in 24 monthly installments along with interest. The loans are secured by way of hypothecation of the respective equipment.
45. OTHER NON-CURRENT LIABILITIES (CONTD.)
''Mobilisation Advance from MEP Sanjose Arawali Kante Road Private Limited (Jointly Controlled Entity) Rs. 4,657.12 lakhs (previous year : Nil , April 1, 2015 : Nil) pursuant to a contract, pertaining to Construction of road under Hybrid annuity model.
''Mobilisation Advance from MEP Sanjose Kante Waked Road Private Limited (Jointly Controlled Entity) Rs. 6,068.31 lakhs (previous year : Nil , April 1, 2015 : Nil) pursuant to a contract, pertaining to Construction of road under Hybrid annuity model.
''Mobilisation Advance from MEP Sanjose Talaja Mahuva Road Private Limited (Jointly Controlled Entity) Rs. 526.53 lakhs (previous year : Nil , April 1, 2015 : Nil) pursuant to a contract, pertaining to Construction of road under Hybrid annuity model.
''Mobilisation Advance from MEP Sanjose Mahuva Kagavadar Road Private Limited (Jointly Controlled Entity) Rs. 234.79 lakhs (previous year : Nil , April 1, 2015 : Nil) pursuant to a contract, pertaining to Construction of road under Hybrid annuity model.
46. Nature of Security and Terms of Repayment for Short Term Secured borrowings
47. Term Loans from bank amounting to Rs 3350.00 lakhs (March 31, 2016 : Rs 5000.13 lakhs and 1st April, 2015: Rs 5000.00 lakhs) is secured as below:
48. First and pari passu charge on entire fixed/current assets of the Company which are not exclusively charged to other Banks/ Lenders.
49. First charge / hypothecation / assignment of security interest on Escrow account of the projects financed;
50. First charge by way of hypothecation of all the movable assets, present and future, of the projects financed.
51. Debt Service Reserve Account (DSRA) to be maintained for an amount equivalent to the 3 months of interest servicing.
52. Corporate guarantee given by Ideal Toll and Infrastructure Private Limited;
53. Personal Guarantee given by Mr. Jayant D. Mhaiskar director of the Company;
The term loan carries an interest rate calculated on base rate of the bank plus a spread of 2.30% p.a. The loan is repayable in bullet upon release of Bid/Performance Security by the Authority of the project financed.
54. Term Loans from bank amounting to to Rs 386.58 lakhs (March 31, 2016 : Rs Nil and 1st April, 2015: Rs Nil) is secured as below:
55. by Hypothecation / assignment of receivables to be generated from the Toll collection at Saukala toll plaza;
56. pari passu charge on the project cash flows of saukala toll collection project with the BG issuing bank and exclusive charge over the performance security deposit with NHAI,
57. First charge by way of hypothecation of all the movable assets, present and future, of the projects financed.
58. Personal Guarantee given by Mr. Jayant D. Mhaiskar and Mrs. Anuya J. Mhaiskar, director of the Company;
The term loan carries an interest rate calculated on base rate of the bank plus a spread of 3.25% p.a. below PLR. The loan is repayable in 12 monthly installments from the date of first disbursement commencing from October 2016.
Nature of Security and Terms of Repayment for Short Term Secured bowering (contd.)
59. Term Loans from bank amounting to Rs Nil (March 31, 2016 : Rs Nil and 1st April, 2015: Rs 1028.36 lakhs) is secured as below:
60. Hypothecation / assignment of receivables to be generated from the Toll collection account of the projects financed.;
61. Hypothecation of other movable assets, like toll equipment and performance security deposit receivable.
62. Corporate guarantee given by Ideal Toll and Infrastructure Private Limited;
63. Personal Guarantee given by Mr. Jayant D. Mhaiskar, Director of the Company;
The term loan carries an interest rate calculated on rate of 13.% (floating) p.a. floating at monthly reset. The loan is repayable in 4 equal weekly installments during 12th and last month from the date of first disbursement.
64. Term Loans from bank amounting to Rs Nil (March 31, 2016 : Rs 495.00 lakhs and 1st April, 2015: Rs Nil) is secured as below:
65. Hypothecation / assignment of receivables to be generated from the Toll collection account of the projects financed.;
66. Hypothecation of other movable assets, like toll equipment and performance security deposit receivable.
67. Personal Guarantee given by Mr. Jayant D. Mhaiskar, Director of the Company;
The term loan carries an interest rate calculated on rate of 12.50 % (floating) p.a. The loan is repayable in 4 equal weekly installments during 12th and last month from the date of first disbursement commencing from June 2016
68. Term Loans from bank amounting to Rs Nil (March 31, 2016 : Rs 705.00 lakhs and 1st April, 2015: Rs Nil) is secured as below:
69. Hypothecation / assignment of receivables to be generated from the Toll collection account of the projects financed.;
70 Hypothecation of other movable assets, like toll equipment and performance security deposit receivable.
71. Personal Guarantee given by Mr. Jayant D. Mhaiskar, Director of the Company;
The term loan carries an interest rate calculated on rate of 12.50 % (floating) p.a. The loan is repayable in 4 equal weekly installments during 12th and last month from the date of first disbursement commencing from May 2016
72. Term Loans from bank amounting to Rs Nil (March 31, 2016 : Rs 617.25 lakhs and 1st April, 2015: Rs Nil) is secured as below:
73. Hypothecation / assignment of receivables to be generated from the Toll collection account of the projects financed;
74. Hypothecation of other movable assets, like toll equipment and performance security deposit receivable;
75. Personal Guarantee given by Mr. Jayant D. Mhaiskar, Director of the Company;
The term loan carries an interest rate calculated on rate of 12.50 % p.a. (floating) at monthly rest. The loan is repayable in 4 equal weekly installments during 12th and last month from the date of first disbursement.
76. Term Loans from bank amounting to Rs 415.60 lakhs (March 31, 2016 : Rs Nil and 1st April, 2015: Rs Nil) is secured as below:
77. by Hypothecation / assignment of receivables to be generated from the Brijghat Toll collection account of the projects financed;
78. by Hypothecation of other movable assets, like toll equipment and performance security deposit receivable;
79. Personal Guarantee given by Mr. Jayant D. Mhaiskar, Director of the Company;
The term loan carries an interest rate calculated on rate of 11.90 % p.a. (floating) at monthly rest. The loan is repayable in 12 monthly installments commencing from February 2017.
80. Term Loans from bank amounting to Rs Nil (March 31, 2016 : Rs 1799.25 lakhs and 1st April, 2015: Rs Nil) is secured as below :
81. Hypothecation / assignment of receivables to be generated from the Toll collection account of the projects financed;
82. Pari passu charge on the project cash flows of toll collection project with the BG issuing bank and Exclusive charge over the performance security deposit with Authority and its subsidiaries for any project funded by the bank;
Nature of Security and Terms of Repayment for Short Term Secured bowworings (contd.)
83. Personal Guarantee given by Mr. Jayant D. Mhaiskar and Mrs. Anuya J. Mhaiskar, Director of the Company;
The term loan carries an interest rate calculated on rate of 12.50 % p.a. (floating) i.e. 3.25% below PLR. The loan is repayable in 12 unequal monthly installments from the date of first disbursement commencing from April 2016.
Secured loan from financial institution
Term Loans from financial institution amounting to Rs 300.00 lakhs (March 31, 2016 : Rs Nil and 1st April, 2015: Rs Nil) is secured by Pledge of shares of the Company to provide 2.5 times of security.
The term loan carries an interest rate 18.00% p.a. The loan is repayable in 61 days from the date of disbursement commencing from 17 May 2017.
84. Loans repayable on demand
85. Loans repayable on demand include an overdraft facility from a bank amounting to Rs 3656.89 lakhs (March 31, 2016 : Rs 4999.07 lakhs and 1st April, 2015: Rs 4998.27 lakhs) is secured as below:
86. First charge / hypothecation / assignment of security interest on Escrow account;
87. Personal Guarantee given by Mr. Jayant D. Mhaiskar and Mr. Dattatray P. Mhaiskar, directors of the Company;
88. Corporate guarantee given by Ideal Toll and Infrastructure Private Limited.
Loan carries an interest rate calculated on the base rate of the bank and a spread of 3% p.a.
89. Loans repayable on demand include an overdraft facility from a bank amounting to Rs 7,497.41 lakhs (March 31, 2016 : Rs 7496.65 lakhs and 1st April, 2015: Rs 6717.22 lakhs) which is secured as below:
90. First charge / hypothecation / assignment of security interest on Escrow account;
91. First charge by way of hypothecation of all the movable assets, present and future, of the projects financed.
92. First charge on receivable of the projects financed.
93 Personal Guarantee given by Mr. Jayant D. Mhaiskar, director of the Company;
94 Corporate guarantee given by Ideal Toll and Infrastructure Private Limited.
Loan carries an interest rate calculated on the base rate of the bank and a spread of 2.50% p.a.
95. Loans repayable on demand include an overdraft facility from a bank amounting to Rs 285.04 lakhs (March 31, 2016 : Rs Nil and 1st April, 2015: Rs Nil) is secured by Term deposit. The loan carries an interest rate of 4.95% p.a.
96. Term loan from bank, balance outstanding amounting to Rs 648.87 lakhs (March 31, 2016 : Rs Nil and 1st April, 2015: Rs Nil) is secured as below ;
97. First charge / hypothecation / assignment of security interest on Escrow account;
98. by First and exclusive charge /hypothecation of escrow account of the borrower through which cash flows of the project financed is routed
99. first charge by way of hypothecation of all the movable assets, present and future of the projects financed,
100. First and exclusive charge on receivables of the financed projects upfront cash margin of 5% by way of pledge of Term deposit receipt.
Loan carries an interest rate of 1 year MCLR plus 3.00%.
101. Unsecured loans
Interest free unsecured loan from Mr. Jayant D. Mhaiskar of Rs Nil (March 31, 2016 : Rs 25.82 lakhs and April 1, 2015 : Rs 100 lakhs) is repayable on demand.
102. Financial instruments - Fair values and risk management
Set out below, is a comparison by class of the carrying amounts and fair value of the Companyâs financial instruments, other than those with carrying amounts that are reasonable approximations of fair values:
- Credit risk ;
- Liquidity risk ; and
- Market risk
103. Risk management framework
The Companyâs board of directors is primarily responsible to develop and monitor Companyâs Risk Management framework. The Company has a risk management policy in place.
The Companyâs risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Companyâs activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
104. Credit risk
Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations,
Credit risk on its receivables is recognized on the statement of financial position at the carrying amount of those receivable assets, net of any provisions for doubtful debts. Receivable balances and deposit balances are monitored on a monthly basis with the result that the companyâs exposure to bad debts is not considered to be material.
The company has no significant concentrations of credit risk. It has policies in place to ensure that sales transactions are made to customers with an appropriate credit history.
Management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk.
Cash equivalents & Other bank balances/deposits
The Company held cash equivalents and other bank balances/deposits of INR 6,403.85 lakhs at March 31, 2017 (March 31, 2016: INR 5,816.37 lakhs, April 1, 2015 : INR 4,833.27 lakhs). The cash equivalents and other bank balances/deposits are held with bank counterparties with good credit ratings.
105. Liquidity risk
Liquidity risk is defined as the risk that the group will not be able to settle or meet its obligations on time, or at a reasonable price. The groupâs treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related such risk are overseen by senior management. Management monitors the groupâs net liquidity position through rolling forecasts on the basis of expected cash flows.
106. Market risk
Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates will affect the Companyâs income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.
107. Currency risk:
The risk that the value of a financial instrument will fluctuate because of changes in foreign exchange rates. Since company does not have any foreign exchange transactions, it is not exposed to this risk.
108. Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs long-term debt obligations with floating interest rates.
Exposure to interest rate risk
Companyâs interest rate risk arises from borrowings. Borrowings taken and issued at fixed and floating rates exposes company to fair value and cash flow interest rate risk. The interest rate profile of the Companyâs interest-bearing financial instruments as reported to the management of the Company is as follows.
109. Capital Management
For the purpose of the Companyâs capital management, capital includes issued capital and other equity reserves . The primary objective of the Companyâs Capital Management is to maximize shareholders value. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.
110- EARNINGS PER SHARE
Basic and diluted earnings per share is calculated by dividing the profit/(loss) attributable to equity holders of the Company by the weighted average of equity shares outstanding during the year.
111- OPERATING LEASE COMMITMENTS
The Company had entered into operating lease agreement for premises, which it cancelled during the previous year. Rent expenses debited to the Statement of Profit and Loss in respect of the non-cancellable lease agreement is Rs. Nil during current year (previous year : Rs. 1.30 lakhs). Also, the Company has entered into operating lease agreement for equipments during the current year. Expenses for equipment leasing debited to the Statement of Profit and Loss is Rs. 30.22 lakhs (previous year : Rs. Nil) in respect of lease agreement. The future minimum lease payments in respect of these equipments as on 31 March 2017 is as below: *Claim against the Company not acknowledged as debts includes Rs. 8,171.18 lakhs (previous year : 8,171.18 lakhs ; April 1,2015 : 8171.18 lakhs) relates to taxability of toll collection pursuant to contracts with MSRDC and NHAI under the category of âBusiness Auxiliary Servicesâ. The Department had filed an appeal against the favourable order passed by the Commissioner of Service Tax, Mumbai - II. The matter is currently pending at CESTAT, Mumbai.
112- SEGMENT INFORMATION Primary business segments
The Group has organized its operations into two business segments: Toll Collection/Repairs and Maintenance and Construction.
Toll Collection:
Collection of toll as per the contracts entered with various Government authorities and providing road, repair and maintenance of flyovers, roads and allied structures to its subsidiaries.
Construction:
Construction of roads as per the Engineering, Procurement and Construction (EPC) Contracts entered into with its Joint Venture Companies.
The following tables present revenue and profit information regarding the business segments for the year ended March 31, 2017 and certain asset and liability information regarding industry segments as at March 31, 2017.
113- CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES
The Company has spent Rs. 55.42 lakhs (previous year : 5.00 lakhs) towards various schemes of Corporate Social Responsibility as prescribed under section 135 of the Companies Act, 2013. The details are:
114. Gross amount required to be spent by the Company during the year: Rs. 45.42 lakhs (previous year: Rs.38.59 lakhs)
115. Amount spent during the year on:
116. The Company has a receivable from a jointly controlled entity aggregating to Rs. 710.14 lakhs as at 31 March 2017 (As at March 2016: 709.27 lakhs). The management is confident of recovering the same and hence no provision has been made for the same.
117- DOMESTIC TRANSFER PRICING
The Indian Finance Bill, 2012 had sought to bring in certain class of domestic transactions in the ambit of the transfer pricing regulations with effect from 1 April 2012. The Companyâs management is of the opinion that its domestic transaction are at armâs length so that appropriate legislation will not have an impact on financial statements, particularly on the amount of tax expense and that of provision for taxation. The Company does not have any international transactions with related parties during the year.
118- EMPLOYEE BENEFITS Defined Contribution Plan
The Company makes provident fund, Employees State Insurance and Maharashtra Labour Welfare Fund contributions for eligible employees. Under the schemes, the Company is required to contribute a specified percentage / fixed amount of the payroll costs to fund the benefits. The contributions as specified under the law are paid to the respective fund set up by the government authority.
Defined Benefit Plan - Gratuity
The Company has defined benefit plan for gratuity which is unfunded. The scheme provides payment to vested employees at retirement, death or on resignation/termination of employment of an amount equivalent to 15 days salary for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.
119. Discount rate
The discount rate is based on the prevailing market yields of Indian government securities for the estimated term of the obligations.
120. Salary escalation rate
The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors.
121. Assumptions regarding future mortality experience are set in accordance with the statistics published by the Life Insurance Corporation of India.
122- EMPLOYEE BENEFITS (CONTD.)
The above sensitivity analyses have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the reporting date. In practice, generally it does not occur. When we change one variable, it affects to others In calculating the sensitivity, project unit credit method at the end of the reporting period has been applied.
The weighted average duration of the defined benefit obligation is 10.74 years in 2017 and 9.72 years in 2016
The Company makes payment of liabilities from its cash and cash equivalent balances whenever liability arises.
123- DISCLOSURE ON SPECIFIED BANK NOTES
During the year the Company had Specified Bank Notes (SBNs) and other denomination notes as defined in the MCA notification, G.S.Rs 308(E), dated 31 March 2017. The details of SBNs held and transacted during the period from November 08, 2016 to December 30, 2016, the denomination-wise SBNs and other notes as per the notification are as follows:
124 - FIRST-TIME ADOPTION OF IND AS (CONTD.)
The following mandatory exceptions have been applied in accordance with Ind AS 101:
125. De-recognition of financial assets and financial liabilities: Company has opted to apply the exemption available under Ind AS 101 to apply the de-recognition criteria of Ind AS 109 prospectively for the transactions occurring on or after the date of transition to Ind AS.
126. Estimates: Upon an assessment of the estimates made under Previous GAAP, the Company has concluded that there was no necessity to revise such estimates under Ind AS.
127. Classification and measurement of financial assets: Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist on the date of transition to Ind AS.
The Company has applied the requirement of Ind AS 101 prospectively from April 1, 2015.
Reconciliations:
Ind AS 101 requires the company to reconcile equity, total comprehensive income and cash flows for prior periods. The following reconciliations provide the explanations and quantification of the differences arising from the transition from Previous GAAP to Ind AS in accordance with Ind AS 101
- Reconciliation of Equity as at Opening Balance Sheet date i.e. April 1, 2015 and March 31, 2016.
- Reconciliation of Statement of Profit and Loss for the year ended March 2016
- Explanation of material adjustments to cash flow statements
Notes to the reconciliation:
128 Under previous GAAP, the Company accounted for the loan arrangement fees as an expense to Profit and Loss account. However under Ind AS, loan arrangement fees have to be amortized on EIR basis.
129. Under previous GAAP, security deposits are carried at their face values. Under Ind AS, non-cancellable deposits (not statutory deposits in nature) are required to be measured at their fair values at inception using an appropriate discounting rate.
130. Pursuant to the adoption of Ind AS, effective from 1 April 2015, all toll collection rights acquired have been accounted as "intangible assets" as required under Ind AS 38 and are amortized over the period of the respective contracts. In addition, corresponding liability which is payable to authority against acquisition of toll collection right is recognized as trade payables. The payment under these contracts, hitherto were recognized as operating and maintenance expenditure.
Mar 31, 2016
(b) Rights, preferences and restrictions attached to equity shares
The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the Company''s residual assets. The equity shareholders are entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to its share of the paid-up equity capital of the Company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid. Failure to pay any amount called up on shares may lead to forfeiture of the shares.
On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.
Note : Pursuant to an Initial Public Offering in May 2015, the shareholding of Ideal Toll & Infrastructure Private Limited (ITIPL) has reduced from 53.76% to 36.87% therefore ITIPL is no longer the holding company as at 31 March 2016.
I) Term loans
A) Term loan includes loan from a bank amounting to '' Nil (previous year : Rs, 3,749.34 lakhs) which is secured by way of first charge of hypothecation / assignment / security interest on escrow account of the projects financed and also, by pledge of 500,000 equity shares and negative lien on 250,000 equity shares of IRB Infrastructure Developers Limited held by the promoters of the Company.
Further, the term loan is also secured by corporate guarantee given by Ideal Toll & Infrastructure Private Limited and personal guarantee given by Mr. J.D. Mhaiskar & Mr. D.P. Mhaiskar, Directors of the Company. The term loan carries an interest rate calculated on base rate of the bank plus a spread of 300 basis points. The term loan is repayable in two equal installments of Rs, 3,750.00 lakhs from 1 March 2014.
B) Term loan includes loan from a bank amounting to Rs, 15,869.97 lakhs (previous year : Rs, 16,975.00 lakhs) which is secured by a first and exclusive charge as under:
a) first exclusive charge on escrow account specifically maintained for maintenance income/receivables from the maintenance contract with MEP Infrastructure Private Limited, a subsidiary;
b) first mortgage and charge on all immovable and movable properties of the Company, (including movable plant and machinery, machinery, spares, tools and accessories, furniture, fixtures, vehicles, inventories and all other movable properties); except as specifically charged;
c) exclusive charge on specific account opened to route the proceeds from the loan and interest thereon extended to the Ideal Toll & Infrastructure Private Limited by MEP Infrastructure Private Limited, subsidiary company;
d) pledge of 15 lakhs shares of IRB Infrastructure Developers Limited, held by the promoters of the company;
e) pledge of 49% of the issued, paid up and voting equity share capital of Ideal Toll & Infrastructure Private Limited;
f) first charge over the all bank accounts including but not limited to escrow account opened by MEP Highway Solutions Private Limited, subsidiary company;
g) corporate guarantees jointly given by Ideal Toll & Infrastructure Private Limited; and personal guarantee given by Mr. J.D. Mhaiskar, Director of the Company
The term loan carries an interest rate calculated on base rate of the bank plus a spread of 275 basis points. The term loan is repayable in 127 unequal monthly installments commencing from 1 September 2014.
C) Term loan includes a loan from a bank amounting to Rs, 240.00 lakhs (previous year : Rs, 610.00 lakhs) which is secured by way of assignment/ hypothecation of receivables to be generated from the Toll collection account of the projects financed.
Further, the term loan is also secured by corporate guarantee given by Ideal Toll & Infrastructure Private Limited and personal guarantee given by Mr. J.D. Mhaiskar, Director of the Company. The term loan carries an interest rate of 13% p.a. The term loan is repayable in 35 unequal monthly installments commencing after one month from the date of first disbursement.
D) Term loan includes a loan from a bank amounting to Rs, 275.42 lakhs (previous year : Nil) which is secured as under :
a) hypothecation / assignment of receivables to be generated from the Toll collection account & refund of performance security from authority of the projects financed;
b) equitable mortgage(second charge) on the residential property situated at Mumbai owned by promoters of the Company;
c) personal guarantee of Promoter Mr. Jayant Mhaiskar.
The term loan carries an interest rate calculated on base rate of 13.00% p.a.(floating at monthly rest) The loan is repayable in 10 monthly installments from the date of disbursement & last installment in lumsum on or before 31st January 2017.
E) Term loan includes a loan from a bank amounting to Rs, 1,483.71 lakhs (previous year : Nil) which is secured as under :
a) exclusive charge by way of equitable/registered mortgage on the commercial properties situated at Boomerang building, Chandivali farm road, Andheri East;
b) pledge of 200% of demat shares of the Company (amount equivalent to remaining portion of term loan after considering the amount against the mortgage commercial properties of the Company);
c) Personal guarantee of Promoter Mr. Jayant Mhaiskar;
d) DSRA equivalent to 3 months EMI in form of undisbursed overdraft as sublimit of term loan.
The term loan carries an interest rate calculated on base rate of 11.25 % p.a. i.e. Base rate plus 0.65% (annual reset) The loan is repayable in 72 monthly installments from the date of disbursement.
F) Term loan includes a loan from a financial institution amounting to Rs, 5,000.00 lakhs (previous year : Nil) which is secured as under :
a) First pari -passu charge on approximately 21 acres of leasehold land of 99 years located at Baramati, District Pune, Maharashtra giving a security cover of 1.50 times over the loan facility;
b) DSRA equivalent to 3 months interest servicing in form of FD with scheduled commercial bank lien marked;
c) Subservient charge on all revenues & receivable of the Company;
d) Pledge of such number of shares of the Company by the promoters by way of Non-Disposal Undertaking (NDU) mechanism along with Power of Attorney (POA) so as to give cover of 1.00 times on the loan amount;
e) Personal guarantee of Promoter Mr. Jayant Mhaiskar;
f) Corporate guarantee of Baramati Tollways private Limited (Land mortgagor).
The term loan carries an interest rate calculated on base rate of 11.70 % p.a. plus spread of 1.80%. The loan is repayable in 36 equal monthly installments beginning from 25th month from the date of disbursement.
II) Vehicle loans
A) Vehicle loans from banks of Rs, 374.88 lakhs (previous year : Rs, 314.74 lakhs) carry interest rates ranging from 9.76% - 12.38% p.a. The loans are repayable in 36 monthly installments along with interest. The loans are secured by way of hypothecation of the respective vehicles.
B) Vehicle loans from various financial institutions of Rs, 60.05 lakhs (previous year : Rs, 28.31 lakhs) carry interest rate ranging from 9.75% - 12.34% p.a. The loans are repayable in 35 - 60 monthly installments along with interest. The loans are secured by way of hypothecation of the respective vehicles.
*Mobilisation Advance from MEP Infrastructure Private Limited (subsidiary company) Rs,17,041.22 lakhs (previous year; Rs, 12,756.00 lakhs) pursuant to a contract for maintenance of structures, flyovers etc at five Mumbai Entry Points.
**Margin money aggregating Rs, 594.00 lakhs (previous year; Rs, 594.00 lakhs) received from MEP Chennai Bypass Toll Road Private Limited (subsidiary company) for the purpose of issuing Bank guarantee to the authority.
I) Term loans
A) Term Loans from bank amounting to Rs, Rs, 5,000.13 lakhs (previous year : Rs, 5,000.00 lakhs) is secured as below :
(a) First and pari passu charge on entire fixed/current assets of the Company which are not exclusively charged to other Banks/ Lenders;
(b) First charge / hypothecation / assignment of security interest on Escrow account of the projects financed;
(c) First charge by way of hypothecation of all the movable assets, present and future, of the projects financed;
(d) Debt Service Reserve Account (DSRA) to be maintained for an amount equivalent to the next 3 months of interest servicing;
(e) Corporate guarantee given by Ideal Toll and Infrastructure Private Limited;
(f) Personal Guarantee given by Mr. J.D. Mhaiskar director of the Company;
The term loan carries an interest rate calculated on base rate of the bank plus a spread of 2.30% p.a. The loan is repayable in bullet upon release of Bid/Performance Security by the Authority of the project financed.
B) Term Loans from bank amounting to Rs, Nil (previous year : Rs, 1,028.36 lakhs) is secured as below :
(a) Hypothecation / assignment of receivables to be generated from the Toll collection account of the projects financed;
(b) Hypothecation of other movable assets, like toll equipment and performance security deposit receivable;
(c) Corporate guarantee given by Ideal Toll and Infrastructure Private Limited, (Holding Company);
(d) Personal Guarantee given by Mr. J.D. Mhaiskar, Director of the Company;
The term loan carries an interest rate calculated on base rate of 13.% p.a. (floating) at monthly rest. The loan is repayable in 4 equal weekly installments during 12th and last month from the date of first disbursement.
C) Term Loans from bank amounting to Rs, 495.00 lakhs (previous year : Nil) is secured as below :
(a) Hypothecation / assignment of receivables to be generated from the Toll collection account of the projects financed;
(b) Hypothecation of other movable assets, like toll equipment and performance security deposit receivable;
(c) Personal Guarantee given by Mr. J.D. Mhaiskar, Director of the Company;
The term loan carries an interest rate calculated on base rate of 12.50 % p.a. (floating) at monthly rest. The loan is repayable in 4 equal weekly installments during 12th and last month from the date of first disbursement.
D) Term Loans from bank amounting to Rs, 705.00 lakhs (previous year : Nil) is secured as below :
(a) Hypothecation / assignment of receivables to be generated from the Toll collection account of the projects financed;
(b) Hypothecation of other movable assets, like toll equipment and performance security deposit receivable;
(c) Personal Guarantee given by Mr. J.D. Mhaiskar, Director of the Company;
The term loan carries an interest rate calculated on base rate of 12.50 % p.a. (floating) at monthly rest. The loan is repayable in 4 equal weekly installments during 12th and last month from the date of first disbursement.
E) Term Loans from bank amounting to Rs, 617.25 lakhs (previous year : Nil) is secured as below :
(a) Hypothecation / assignment of receivables to be generated from the Toll collection account of the projects financed;
(b) Hypothecation of other movable assets, like toll equipment and performance security deposit receivable;
(c) Personal Guarantee given by Mr. J.D. Mhaiskar, Director of the Company;
The term loan carries an interest rate calculated on base rate of 12.50 % p.a. (floating) at monthly rest. The loan is repayable in 4 equal weekly installments during 12th and last month from the date of first disbursement.
F) Term Loans from bank amounting to Rs, 1799.25 lakhs (previous year : Nil) is secured as below :
(a) Hypothecation / assignment of receivables to be generated from the Toll collection account of the projects financed;
(b) Pari passu charge on the project cash flows of toll collection project with the BG issuing bank and Exclusive charge over the performance security deposit with Authority and its subsidiaries for any project funded by the bank;
(c) Personal Guarantee given by Mr. J.D. Mhaiskar and Mrs. Anuya J. Mhaiskar, Director of the Company;
The term loan carries an interest rate calculated on base rate of 12.50 % p.a. (floating) i.e. 3.25% below PLR. The loan is repayable in 12 unequal monthly installments from the date of first disbursement.
II) Loans repayable on demand
A) Loans repayable on demand include an overdraft facility from a bank amounting to Rs, 4,999.07 lakhs (previous year : Rs, 4,998.27 lakhs) which is secured as below:
(a) First charge / hypothecation / assignment of security interest on Escrow account;
(b) Personal guarantee given by Mr. J.D. Mhaiskar & Mr. D.P. Mhaiskar, directors of the Company;
(c) Corporate guarantee given by Ideal Toll and Infrastructure Private Limited;
Loan carries an interest rate calculated on the base rate of the bank plus a spread of 3% p.a.
B) Loans repayable on demand include an overdraft facility from a bank amounting to Rs, 7,496.65 lakhs (previous year : Rs, 6,717.22 lakhs) which is secured as below:
(a) First charge / hypothecation / assignment of security interest on Escrow account;
(b) First charge by way of hypothecation of all the movable assets, present and future, of the projects financed.
(c) First charge on receivable of the projects financed.
(d) Personal Guarantee given by Mr. J.D. Mhaiskar, director of the Company;
(e) Corporate guarantee given by Ideal Toll and Infrastructure Private Limited;
(f) Loan carries an interest rate calculated on the base rate of the bank plus a spread of 2.50% p.a.
III) Unsecured loans
A) Interest free unsecured loan from Mr. J.D. Mhaiskar, director of the Company of Rs, 25.82 lakhs (previous year : Rs, 100.00 lakhs) is repayable on demand.
* Office premises are under mortgage with a bank.
During the previous year ended 31 March 2015, the Management has reassessed the useful lives of fixed assets prescribed under Schedule II of the Companies Act, 2013. As a result of the change, the depreciation charge for the previous year is higher by Rs, 284.23 lakhs with a corresponding decrease in the written down value of fixed assets and profit before tax for the previous year ended 31 March 2015.
Notes
*Other bank balances includes fixed deposits with Banks of Rs, 1,879.42 lakhs (previous year : Rs, 1,703.61 lakhs) which are provided as a lien for maintenance of Debt Service Reserve Account. Bank deposits of Rs, 375.00 lakhs (previous year : Rs, 375.00 lakhs) with a bank is provided as cash margin for bank overdraft. Bank deposits of Rs, 2,708.52 lakhs (previous year : Rs, 2,199.96 lakhs) with various banks are provided as a lien for bank guarantees given to authorities.
1. SEGMENT REPORTiNG
The segment information has been disclosed in the consolidated financial statements of the Company in accordance with paragraph 4 of AS
17 ''Segment reporting'' as specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.
2. DUE TO MiCRO AND SMALL SUPPLiERS
Under the Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from 2 October 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the Management, outstanding dues to the Micro, Small and Medium enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006 are set out in following disclosure: (n irrency- Indian niPees in
3. EMPLOYEE BENEFiTS
The disclosures as required as per the revised Accounting Standard 15 are as under:
I) Defined contribution plan
i) Contribution to Provident Fund
ii) Contribution to Employees State Insurance Corporation
iii) Contribution to Maharashtra Labour Welfare Fund
*Included in Contribution to provident fund and other funds (refer note 23 - Employee benefits)
II) Defined Benefit plan Gratuity
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on death or resignation or retirement 15 days salary (last drawn salary) for each completed year of service. The company during the period provided Rs, 55.19 lakhs (Previous year : Rs, 57.95 lakhs) towards gratuity in the Statement of Profit and Loss.
The Estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.
* Based on unaudited financial statements
The Company''s interest in this Jointly Controlled Entities is reported as Non-current investment (refer note 12) and is stated at cost (net of provision for other than temporary diminution in value). The Company''s share of each of the assets, liabilities, income, expenses (each without elimination of the effect of transactions between the Company and the Jointly Controlled Entities) related to its interest in this jointly controlled
4. CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES
The Company has spent Rs, 5.00 lakhs (previous year : Nil) towards various schemes of Corporate Social Responsibility as prescribed under section 135 of the Companies Act, 2013. The details are:
I. Gross amount required to be spent by the Company during the year: Rs, 38.59 lakhs (previous year: Rs, 41.71 lakhs)
5. The Company has a receivable from a jointly controlled entity aggregating to Rs, 709.27 lakhs as at 31 March 2016. The management is confident of recovering the same and hence no provision has been made for the same.
6. UTILIZATION OF PROCEEDS FROM INITIAL PUBLIC OFFER
During the Financial Year 2015-16, funds were raised pursuant to an Initial Public Offering (IPO) For:
(i) Repayment/Pre-payment in full or part of certain loans availed by the Company''s Subsidiary viz. MEP Infrastructure Private Limited (MIPL), and
(ii) General Corporate Purposes.
7. RELATED PARTY DISCLOSURES
In accordance with the requirements of Accounting Standard 18 ''Related Party Transactions'' as specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, following are the names of related parties and their relationships, details of the transaction during the year and balances as at the yearend :
A. (i) Names of related parties where control exists
MEP Infrastructure Private Limited Subsidiary
Raima Ventures Private Limited Subsidiary
Rideema Toll Private Limited Subsidiary
MEP Nagzari Toll Road Private Limited Subsidiary
MEP IRDP Solapur Toll Road Private Limited Subsidiary
MEP Highway Solutions Private Limited Subsidiary
Rideema Toll Bridge Private Limited Subsidiary
Raima Toll Road Private Limited Subsidiary
MEP Hyderabad Bangalore Toll Road Private Limited Subsidiary
MEP Chennai Bypass Toll Road Private Limited Subsidiary
MEP RGSL Toll Bridge Private Limited Subsidiary
MEP Tormato Private Limited Subsidiary
Raima Toll and Infrastructure Private Limited Subsidiary Baramati Toll ways Private Limited (a subsidiary of Rideema Toll Private Limited) Fellow Subsidiary
MEP Infraprojects Private Limited Subsidiary
MEP Toll & Infrastructure Private Limited Subsidiary
MEP Infra Constructions Private Limited Subsidiary
Mhaiskar Toll Road Private Limited Subsidiary
MEP Roads & Bridges Private Limited Subsidiary
MEP Una Bus Terminal Private Limited Fellow Subsidiary
MEP Hamirpur Bus Terminal Private Limited Fellow Subsidiary
A J Tolls Private Limited Fellow Subsidiary
Ideal Toll & Infrastructure Private Limited Associate Concern
KVM Technology Solutions Private Limited Jointly controlled entity
SMYR Consortium LLP Jointly controlled entity
IEPL Power Trading Company Private Limited Ideal Energy Projects Limited MEP Toll Gates Private Limited
VCR Toll Services Private Limited Enterprises over which significant influence is exercised by key
MEP Infracon Private Limited managerial personnel
Rideema Enterprises.
Jan Transport
D S Enterprises J \
Mr. Jayant.Mhaiskar Key Management Person - Managing Director & Vice Chairman
Mr. Murzash Manekshana Key Management Person - Whole time Director
8. DOMESTIC TRANSFER PRICING
The Indian Finance Bill, 2012 had sought to bring in certain class of domestic transactions in the ambit of the transfer pricing regulations with effect from 1 April 2012. The Company''s management is of the opinion that its domestic transaction are at arm''s length so that appropriate legislation will not have an impact on financial statements, particularly on the amount of tax expense and that of provision for taxation. The Company does not have any international transactions with related parties during the year.
9. PRIOR PERIOD EXPENSE
Prior period expense (net) in the Statement of Profit and Loss for the year ended 31 March 2015 comprises charge towards maintenance cost paid to Authority of Rs, 50.88 lakhs, professional fees of Rs, 14.78 lakhs, ESIC of Rs,1.50 lakhs, membership fees of Rs, 2.97 lakhs and prior period income of Rs, 40.89 lakhs towards reversal of share issue expenses charged in previous year.
10. OTHER MATTERS
Information with regards to other matters specified in Schedule III to the Act, is either nil or not applicable to the Company for the period.
Mar 31, 2015
1. (Rs. in Lakhs)
Particulars 31 March 2015 31 March 2014
Contingent liabilities /
other commitments
Interest on late payments to
Maharashtra State Road Development
Corporation Limited - 68.04
Claims made against the Company
not acknowledged as debts 8,171.18 8,171.18
Bank guarantees 22,086.18 16,494.34
Corporate guarantees given on
behalf of subsidiaries 346,289.50 354,203.00
376,546.86 378,936.56
2. Due to micro and small supplier
Under the Micro, Small and Medium Enterprises Development Act, 2006,
(MSMED) which came into force from 2 October 2006, certain disclosures
are required to be made relating to Micro, Small and Medium
enterprises. On the basis of the information and records available with
the Management, outstanding dues to the Micro, Small and Medium
enterprises as defined in the Micro, Small and Medium Enterprises
Development Act, 2006 as set out in following disclosure:
3. Related party disclosures
In accordance with the requirements of Accounting Standard 18 'Related
Party Transactions' as specified under Section 133 of the Companies
Act, 2013 read with Rule 7 of the Companies (Accounts) Rule, 2014,
following are the names of related parties and their relationships,
details of the transaction during the year and balances as at the year
end :
A. Name of related parties and the nature of relationship
Name of related party Nature of relationship
Ideal Toll & Infrastructure Private Limited Holding Company
MEP Infrastructure Private Limited Subsidiary
Raima Ventures Private Limited Subsidiary
Rideema Toll Private Limited Subsidiary
MEP Nagzari Toll Road Private Limited Subsidiary
MEP IRDP Solapur Toll Road Private Limited Subsidiary
MEP Highway Solutions Private Limited Subsidiary
Rideema Toll Bridge Private Limited Subsidiary
Raima Toll Road Private Limited Subsidiary
MEP Hyderabad Bangalore Toll Road Private
Limited Subsidiary
MEP Chennai Bypass Toll Road Private Limited Subsidiary
MEP RGSL Toll Bridge Private Limited Subsidiary
MEP Tormato Private Limited Subsidiary
Raima Toll and Infrastructure Private
Limited Subsidiary
Baramati Tollways Private Limited Subsidiary
MEP Infraprojects Private Limited Subsidiary
MEP Toll & Infrastructure Private Limited Subsidiary
MEP Infra Constructions Private Limited Subsidiary
Mhaiskar Toll Road Private Limited Subsidiary
MEP Roads & Bridges Private Limited Subsidiary
MEP Una Bus Terminal Private Limited Fellow Subsidiary
MEP Hamirpur Bus Terminal Private Limited
Fellow Subsidiary
A J Tolls Private Limited Fellow Subsidiary
4. Domestic transfer pricing
The Indian Finance Bill, 2012 had sought to bring in certain class of
domestic transactions in the ambit of the transfer pricing regulations
with effect from 1 April 2012. The Company's management is of the
opinion that its domestic transaction are at arm's length so that
appropriate legislation will not have an impact on financial
statements, particularly on the amount of tax expense and that of
provision for taxation. The Company does not have any international
transactions during the year.
5. Prior period expense (net)
Prior period expense (net) in the Statement of Profit and Loss is a net
result of prior period charge towards maintenance cost paid to
Authority of Rs. 50.88 lakhs, professional fees of Rs. 14.78 lakhs, ESIC of
Rs. 1.50 lakhs, membership fees of Rs. 2.97 lakhs and prior period income
of Rs. 40.89 lakhs towards reversal of share issue expenses charged in
previous year. Prior period expense (net) in the Statement of Profit
and Loss for the year ended 31 March 2014 is a net result of prior
period charge towards concession fees paid to Authority Rs. 89.39 lakhs,
ESIC ofRs. 1.87 lakhs and Toll Collection ofRs. 7.50 lakhs.
6. Other matters
Information with regards to other matters specified in Schedule III to
the Act, is either nil or not applicable to the Company for the period.
7. Previous year comparatives
Previous year's figures have been reclassified wherever considered
necessary to conform to the current year's presentation, details of the
same are as follows:
Mar 31, 2014
1 Company overview
MEP Infrastructure Developers Private Limited ('MEPIDPL' or 'the
Company') was incorporated on 8 August 2002 under Companies Act, 1956
('the Act'). The Company is into the business of collection of toll as
per the contract entered with various authorities and also in the
providing road, repair and maintenance service to its subsidiary. "
The Company has undertaken following contracts for toll collection:
Rajasthan State Road Development & Construction Corporation Limited.
'RSRDC at Gazipur & Phulwada.
Maharashtra State Road Development Corporation Limited , 'MSRDC at:
a) Rajiv Gandhi Sea Link (for Bandra Worli Sea Link Project) along with
maintenance.
b) Ratai-Gove
Road infrastructure Development Company of Rajasthan Limited, 'RIDCOR*
at:
a) Afwar - Bhlwadi
b) Lalsot - Rota
National Highways Authority of India. 'NHAI' at:
(b) Rights, preferences and restrictions attached to equity shares
The company has a single class of equity shares. Accordingly, all
equity shares rank equally with regard to dividends and share in the
Company's residual assets. The equity shareholders are entitled to
receive dividend as declared from time to time subject to payment of
dividend to preference shareholders. The voting rights of an equity
shareholder on a poll (not on show of hands) are in proportion to its
share of the paid-up equity capital of the Company. Voting rights
cannot be exercised in respect of shares on which any call or other
sums presently payable have not been paid. Failure to pay any amount
called up on shares may lead to forfeiture of the shares.
On winding up of the Company, the holders of equity shares will be
entitled to receive the residual assets of the Company, remaining after
distribution of all preferential amounts in proportion to the number of
equity shares held.
I) Term loans
A) Term loan includes loan from a bank amounting to Rs Nil (previous
year : Rs 8,895.94 lakhs) which is secured by way ot first charge of
hypothecation / assignment / security interest on the escrow account of
the projects financed.
Further, the term loan is also secured by corporate guarantee from
Ideal Toll & Infrastructure Private Limited, the holding company and
personal guarantee given by Mr. J.D. Mhaiskar, Managing Director of the
Company. The term loan carries an interest rate calculated on the base
rate of the bank plus a spread ranging from 3% - 3.25% p.a. The term
loan is repayable at the end of 24 months from the date of first
drawdown or on the receipt of the earnest money deposit or performance
security from the authority whichever is earlier.
B) Term loan includes loan from a bank amounting to Rs 7,495.42 lakhs
(previous year: Rs 7,500 lakhs) which is secured by way of first charge
of hypothecation / assignment / security interest on escrow account of
the projects financed and also, by pledge of 500,000 equity shares and
negative lien on 250,000 equity shares from IRB Infrastructure
Developers Private Limited held by the promoters of the Company.
Further, the term loan is also secured by corporate guarantee given by
Ideal Toll & infrastructure Private Limited, the holding company and
personal guarantee given by Mr. J.D. Mhaiskar & Mr. D.P. Mhaiskar,
Directors of the Company. The term loan carries an interest rate
calculated on base rate of the bank plus a spread of 350 basis points.
The term loan is repayable in two equal installments of Rs 3,750.00
lakhs from 1 March 2014.
C) Term loan includes a loan from a bank amounting to Rs 850.00 lakhs
(previous year : Nil ) which is secured by way of assignment /
hypothecation of receivables to be generated from the Toll collection
account of the projects financed.
Further, the term loan is also secured by corporate guarantee given by
Ideal foil & Infrastructure Private Limited, the holding company and
personal guarantee given by Mr. J.D. Mhaiskar, Director of the Company.
The term loan carries an interest rate ot 13% p.a. The term loan is
repayable in 35 unequal monthly installments commencing from the date
of first disbursement. ^55=^5^
II) Vehicle loans
A) Vehicle loans from banks of Rs 383.72 lakhs (previous year : Rs
25.36 lakhs) carrying interest rates ranging from 9.89% - 12.38% p.a.
The loans are repayable in 36 monthly installments along with interest.
The loans are secured by way of hypothecation of the respective
vehicles.
B) Vehicle loans include loan from various financial institutions of Rs
13.58 lakhs (previous year : Rs 123.62 lakhs) carrying an interest rate
ranging from 10.83% - 12.34% p.a. The loans are repayable in 35 monthly
installments along with interest. The loans are secured by way of
hypothecation of the respective vehicles.
III) Unsecured loans from related parties
A) Unsecured loan from Raima Ventures Private Limited asubsidiary, of
Rs 461.32 lakhs (previous year : Nil) was taken on 31 October 2013 and
is repayable in three equal installments at the end of the 8th, 9th and
10th years from the date of disbursement. The loan carries an interest
rate of 12.5% p.a.
B) Unsecured loan from MEP RGSL Toll Bridge Private Limited a
subsidiary, of Rs 2,244.78 lakhs (previous year: Nil) was taken on 24
March 2014 and is repayable in three equal installments at the end of
the 8th, 9th and 10th years from the date of disbursement. The loan
carries an interest rate of 9.5% p.a.
C) Interest free unsecured loan from MEP 1RDP Solapur Toll Road Private
Limited, a subsidiary, of Rs 11.23 lakhs (previous year ; Nil) was
taken on 2 June 2013 and is repayable in three equal installments at
the end of the 8 th, 9th and 10th years from the date of disbursement.
I) Term loan
Term Loans from bank amounting to Rs 236.75 lakhs (previous year: Nil)
is secured as below :
(a) assignment / hypothecation of receivables to be generated from the
Toll collection account of the projects financed;
(b) Personnel Guarantee given by Mr. J.D. Mhaiskar & Mr. D.P. Mhaiskar,
directors of the Company;
(c) Corporate guarantee given by Ideal Toll and Infrastructure Private
Limited, (Holding Company);
(d) The term loan carries an interest rate of 2.35% p.a. below the
Bank's Prime Lending Rate subject to minimum of 13% p.a.
(e) The loan is repayable in 12 equal monthly installments from the
date of first drawdown.
II) Loans repayable on demand
A) Loans repayable on demand include an overdraft facility from a bank
amounting to Rs 5,000.00 lakhs (previous year: Nil) which is secured as
below:
(a) First charge / hypothecation / assignment of security interest on
Escrow account;
(b) Personnel guarantee given by Mr. J.D. Mhaiskar & Mr. D.P. Mhaiskar,
directors of the Company;
(c) Corporate guarantee given by Ideal Toll and Infrastructure Private
Limited, (Holding Company);
(d) Loan carries an interest rate calculated on the base rate of the
bank plus a spread of 3% p.a.
B) Loans repayable on demand include an overdraft facility from a bank
amounting to Rs 4,994.60 lakhs (previous year: Nil) which is secured as
below:
(a) First charge / hypothecation / assignment of security interest on
Escrow account;
(b) First charge by way of hypothecation of all the movable assets,
present and future, of the projects financed.
(c) First charge on receivable of the projects financed.
(d) Personnel Guarantee given by Mr. J.D. Mhaiskar, director of the
Company;
(e) Corporate guarantee given by Ideal Toll and Infrastructure Private
Limited, (Holding Company);
(f) Loan carries an interest rate calculated on the base rate of the
bank plus a spread of 2.25% p.a.
Ill) Unsecured loans
Interest free unsecured loan from Ideal Toll & Infrastructure Private
Limited (Holding Company) of Rs 406.46 lakhs (previous year : Rs 219.00
lakhs) is repayable on demand.
Particulars 31st March 2014 31st March 2013
Inteiesi on late payments to
Maharashtra State Road
Development Corporation Limited 68.04 68.04
Claims made against the Company
not acknowledged as debts by the
Company 8,171.18 -
Bank guarantees 16,494.34 20,063.58
Corporate guarantees given 354,203.00 316,629.12
370,765.38 336.760.74
2. Due to micro and small suppliers
Under the Micro, Small and Medium Enterprises Development Act, 2006,
(MSMED) which came into force from 2 October 2006, certain disclosures
are required to be made relating to Micro, Small and Medium
enterprises. On the basis of the information and records available with
the Management, there are no outstanding dues to the Micro, Small and
Medium enterprises as defined In the Micro, Small and Medium
Enterprises Development Act, 2006 as set out in following disclosure:
3. Employee benefits
The disclosures as required as per the revised Accounting Standard 15
are as under: 1) Defined contribution plan
i) Contribution to Provident Fund
ii) Contribution to Employees State Insurance Corporation
iii) Contribution to Maharashtra Labour Welfare Fund
II) Defined Benefit plan Gratuity
The Company has a defined benefit gratuity plan. Every employee who has
completed five years or more of service gets a gratuity on death or
resignation or retirement 15 days salary (last drawn salary) for each
completed year of service. The company during the year provided Rs
30.90 lakhs (Previous year : Rs. 34.04 lakhs) towards gratuity in the
Statement of Profit and Loss.
The Company is primarily engaged in the business of toil collection,
which is the primary business segment, of the. Company. The Company
does not have any separate geographical segment since all its
operations are carried out in India. Hence, there.are: no separate
reportable segments, as required by 'Accounting Standard 17' on
'Segment reporting' as prescribed by the Companies (Account!jig
Standards) Rules,.2006 issued by the
Central Government, m consultation with the National Advisory Committee
on Accounting Standards.
In accordance with the requirements of Accounting Standard 18 'Related
Party Transactions' as prescribed under the Companies (Accounting
Standards) Rules, 2006, following are the names of related parties and
their relationships, details of the transaction during the year and
balances as at the year end :
3.1 Dom eslic transfer pricing
The Indian Finance Bill, 2012 had sought to bring in certain class of
domestic transactions in the ambit of the transfer pricing regulations
with effect of I April 20P The Company's management is of the opinion
that its domestic transaction are at arm's length so that appropriate
legislation will not have an impact on financial statements,
particularly on the amount of tax expense and that of provision for
taxation. The Company does not have any international transactions
during the year.
3.2 Other matters
Information with regards to other matters specified in Revised Schedule
VI to the Act, is either nil or not applicable to the Company for the
year.
3.3 Previous year comparatives
Previous year's figures have been reclassified wherever necessary to
conform to the current year's presentation.
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