Mar 31, 2023
Provisions, Contingent Liabilities and Contingent Assets
The Company recognises provisions when there is present
obligation as a result of past event and it is probable that
there will be an outflow of resources and reliable estimate
can be made of the amount of the obligation. A disclosure
for Contingent liabilities is made in the notes on accounts
when there is a possible obligation or a present obligation
that may, but probably will not, require an outflow of
resources. Contingent assets are disclosed in the financial
statements when flow of economic benefits is probable.
Financial assets and financial liabilities are recognised when
the Company becomes a party to the contractual provisions
of the instrument.
Financial assets and financial liabilities are initially measured
at fair value. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and financial
liabilities (other than financial assets and financial liabilities
at fair value through profit or loss) are added to or deducted
from the fair value of the financial assets or financial
liabilities, as appropriate, on initial recognition. Transaction
costs directly attributable to the acquisition of financial
assets or financial liabilities at fair value through profit or
loss are recognised immediately in statement of profit and
loss.
2.18 Financial assets:Financial asset is
1 Cash / Equity Instrument of another Entity,
2. Contractual right to -
a) receive Cash / another Financial Asset from
another Entity, or
b) exchange Financial Assets or Financial Liabilities
with another Entity under conditions that are
potentially favourable to the Entity.
2.19 Subsequent measurement of the financial assets:
(i) Financial assets carried at amortised cost
A financial asset is subsequently measured at
amortised cost if it is held within a business model
whose objective is to hold the asset in order to collect
contractual cash flows and the contractual terms of
the financial asset give rise on specified dates to cash
flows that are solely payments of principal and interest
on the principal amount outstanding.
(ii) Financial assets at fair value through other
comprehensive income
A financial asset is subsequently measured at fair
value through other comprehensive income if it is
held within a business model whose objective is
achieved by both collecting contractual cash flows
and selling financial assets and the contractual terms
of the financial asset give rise on specified dates to
cash flows that are solely payments of principal and
interest on the principal amount outstanding. Further,
in case where the company has made an irrevocable
selection based on its business model, for its
investments which are classified as equity instruments,
the subsequent changes in fair value are recognised in
other comprehensive income.
(iii) Financial assets at fair value through profit or loss
A financial asset which is not classified in any of the
above categories are subsequently fair valued through
profit or loss.
(iv) The Company recognises loss allowances using the
expected credit loss (ECL) model for the financial
assets which are not fair valued through profit or loss.
Loss allowance for trade receivables with no significant
financing component is measured at an amount equal
to lifetime ECL. For all other financial assets, expected
credit losses are measured at an amount equal to the
12-month ECL, unless there has been a significant
increase in credit risk from initial recognition in which
case those are measured at lifetime ECL. The amount
of expected credit losses (or reversal) that is required
to adjust the loss allowance at the reporting date
to the amount that is required to be recognised is
recognised as an impairment gain or loss in statement
of profit and loss.
Financial liability is Contractual Obligation to
a) Deliver Cash or another Financial Asset to another
Entity, or
b) Exchange Financial Assets or Financial Liabilities with
another Entity under conditions that are potentially
unfavourable to the Entity.
The company''s financial liabilities include trade and other
payables, loans and borrowings including bank overdrafts.
2.21 Subsequent measurement of the financial liabilities:
Financial liabilities are subsequently carried at amortized
cost using the effective interest rate method. For trade and
other payables maturing within one year from the balance
sheet date, the carrying amounts approximate the fair value
due to the short maturity of these instruments.
2.22 Derecognition of financial instruments:
The Company derecognises a financial asset when the
contractual rights to the cash flows from the financial asset
expire or it transfers the financial asset and the transfer
qualifies for derecognition under Ind AS 109. A financial
liability (or a part of a financial liability) is derecognised from
the Company''s balance sheet when the obligation specified
in the contract is discharged or cancelled or expires.
2.23 Fair value of financial instruments:
In determining the fair value of its financial instruments,
the Company uses a variety of methods and assumptions
that are based on market conditions and risks existing at
each reporting date. The methods used to determine fair
value include discounted cash flow analysis, available
quoted market prices and dealer quotes. All methods
of assessing fair value result in general approximation of
value, and such value may or may not be realized.
Intangible assets and property, plant and equipment:
Intangible assets and property, plant and equipment are
evaluated for recoverability whenever events or changes in
circumstances indicate that their carrying amounts may not
be recoverable. For the purpose of impairment testing, the
recoverable amount (i.e. the higher of the fair value less cost
to sell and the value-in-use) is determined on an individual
asset basis unless the asset does not generate cash flows
that are largely independent of those from other assets. In
such cases, the recoverable amount is determined for the
Cash Generating Unit (CGU) to which the asset belongs.
If such assets are considered to be impaired, the impairment
to be recognised in the statement of profit and loss is
measured by the amount by which the carrying value of the
assets exceeds the estimated recoverable amount of the
asset. An impairment loss is reversed in the statement of
profit and loss if there has been a change in the estimates
used to determine the recoverable amount. The carrying
amount of the asset is increased to its revised recoverable
amount, provided that this amount does not exceed the
carrying amount that would have been determined (net
of any accumulated amortization or depreciation) had no
impairment loss been recognised for the asset in prior years.
The Company measures certain financial instruments at fair
value at each reporting date. Fair value is the price that would
be received on sale of an asset or paid to transfer a liability
in an orderly transaction between market participants at
the measurement date. The fair value measurement is
based on the presumption that the transaction to sell the
asset or transfer the liability takes place either:
a. In the principal market for the asset or liability, or
b. In the absence of principal market, in the most
advantageous market for the asset or liability.
The fair value of an asset or a liability is measured using
the assumptions that market participants would use
when pricing the asset or liability, assuming that market
participants act in their economic best interest.
The Company uses valuation techniques that are
appropriate in the circumstances and for which sufficient
data are available to measure fair value, maximising the
use of relevant observable inputs and minimising the use of
unobservable inputs.
The Company assesses at contract inception whether
a contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset for
a period of time in exchange for consideration. At the date
of commencement of the lease, the Company recognises
a right-of-use asset ("ROU") and a corresponding lease
liability for all lease arrangements in which it is a lessee,
except short-term leases and low value leases.
Ind AS 116 requires lessees to determine the lease term
as the non-cancellable period of a lease adjusted with
any option to extend or terminate the lease, if the use of
such option is reasonably certain. The Company makes an
assessment on the expected lease term on a lease-by-lease
basis and thereby assesses whether it is reasonably certain
that any options to extend or terminate the contract will
be exercised. In evaluating the lease term, the Company
considers factors such as any significant leasehold
improvements undertaken over the lease term, costs
relating to the termination of the lease and the importance
of the underlying asset to the Company''s operations taking
into account the location of the underlying asset and the
availability of suitable alternatives.
The Company applies the short-term lease recognition
exemption to its short-term leases of premises and
construction equipment (i.e., those leases that have a lease
term of 12 months or less from the commencement date or
the adoption of Ind AS 116 and do not contain a purchase
option). Lease payments on short-term leases and leases of
low-value assets are recognised as expense on a straight¬
line basis over the lease term.
Basic earnings per equity share is computed by dividing
the net profit for the year attributable to the Equity
Shareholders by the weighted average number of equity
shares outstanding during the year. Diluted earnings per
share is computed by dividing the net profit for the year,
adjusted for the effects of dilutive potential equity shares,
attributable to the Equity Shareholders by the weighted
average number of the equity shares and dilutive potential
equity shares outstanding during the year except where the
results are anti-dilutive.
Cash flows are reported using the indirect method,
whereby profit / (loss) before extraordinary items and tax is
adjusted for the effects of transactions of non-cash nature
and any deferrals or accruals of past or future cash receipts
or payments. The cash flows from operating, investing and
financing activities of the Company are segregated based
on the available information.
Cash comprises cash on hand and demand deposits with
banks. Cash equivalents are short-term balances (with an
original maturity of three months or less from the date
of acquisition), highly liquid investments that are readily
convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
2.29 Critical judgements in applying accounting policies:
The following are the critical judgements, apart from those
involving estimations, that the directors have made in the
process of applying the Company''s accounting policies
and that have the most significant effect on the amounts
recognised in the financial statement.
(i) Revenue recognition: The Company uses the stage
of completion method using survey method and /or on
completion of physical proportion of the contract work
to measure progress towards completion in respect of
construction contracts. This method is followed when
reasonably dependable estimates of costs applicable
to various elements of the contract can be made. Key
factors that are reviewed in estimating the future costs
to complete include estimates of future labour costs
and productivity efficiencies. Because the financial
reporting of these contracts depends on estimates
that are assessed continually during the term of these
contracts, recognised revenue and profit are subject
to revisions as the contract progresses to completion.
When estimates indicate that a loss will be incurred,
the loss is provided for in the period in which the loss
becomes probable.
(ii) Key sources of estimation uncertainty: The
following are the key assumptions concerning the
future, and other key sources of estimation uncertainty
at the end of the reporting period that may have a
significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the
next financial year.
Exceptional Items represents the nature of transactions
which are not in recurring nature during the ordinary course
of business but lead to increase / decrease in profit / loss
for the year.
The Company adopts operating cycle based on the project
period (including Defect Liability Period) and accordingly
all project related assets and liabilities are classified into
current and non current. Other than project related assets
and liabilities, 12 months period is considered as normal
operating cycle.
2.32 Recent accounting pronouncements:
Standards issued but not yet effective and not early adopted
by the Company
Ministry of Corporate Affairs ("MCA") notifies new standard
or amendments to the existing standards. On March 31,
2023, the MCA, issued certain amendments to Ind AS. The
amendments relate to the following standards:
- Ind AS 101, First-time Adoption of Indian Accounting
Standards
- Ind AS 1, Presentation of Financial Statements
- Ind AS 8, Accounting Policies, Changes in Accounting
Estimates and Errors
- Ind AS 12, Income Taxes
These amendments are effective from April 01, 2023. The
Company believes that the aforementioned amendments
will not materially impact the financial statements of the
Company.
Mar 31, 2022
Unclaimed equity shares of 25,984 (31.03.2021: 25,984) are held in "NCC Limited - Unclaimed suspense account" in trust. Rights of the share holders
The equity shares of the company having par value of '' 2 per share, rank pari passu in all respects including voting rights and entitlement to dividend. Repayment of the capital in the event of winding up of the Company will inter alia be subject to the provisions of Companies Act 2013, the Articles of Association of the Company and as may be determined by the Company in General Meeting prior to such winding up.
The Company had issued and allotted 18,000,000 Convertible Warrants on February 12, 2021 at a price of '' 59.00 per Warrant on preferential basis to the specified Promoters / Promoter Group of the Company, as per the provision of Chapter VII of the SEBI ICDR Regulations. The Company has received the part payment (25% of total consideration) of '' 26.55 crores. As per the said regulations the Warrants would be converted into equivalent number of equity shares of '' 2.00 each (at a premium of '' 57.00 per share) on payment of the balance amount prior to expiry of 18 months from the date of issue of convertible warrants.
20.1 In accordance with the Payment of Gratuity Act, 1972 the company provides for gratuity covering eligible employees. The liability on account of gratuity is covered partially through a recognized Gratuity Fund managed by Life Insurance Corporation of India (LIC) and balance is provided on the basis of valuation of the liability by an independent actuary as at the year end. The management understands that LIC overall portfolio of assets is well diversified and as such, the long term return on the policy is expected to be higher than the rate of return on Central Government bonds.
(i) Liability for gratuity as on March 31, 2022 is '' 69.88 crores (31.03.2021: '' 61.53 crores) of which '' 3.13 crores (31.03.2021: '' 2.31 crores) is funded with the Life Insurance Corporation of India. The balance of '' 66.75 crores (31.03.2021: '' 59.22 crores) is included in Provision for Gratuity.
(ii) Details of the Company''s post-retirement gratuity plans for its employees including whole-time directors are given below, which is certified by the actuary.
21.1 Working Capital Demand Loans and Cash Credit facilities availed from consortium of banks are secured by:
a) Hypothecation against first charge on stocks, book debts and other current assets of the Company, (excluding specific projects) both present and future, ranking parri passu amongst consortium banks.
b) Collateral Security pari passu first charge (Hypothecation / Pledge) amongst the members of consortium on unencumbered movable fixed assets of the Company at WDV (specific assets) and Shares of NCC Infrastructure Holdings Limited (Refer note 4.3) and NCC Urban Infrastructure Limited (Refer note 4.4).
c) Equitable mortgage of sixteen properties (Land & Buildings).
d) Personal Guarantee of Sri. A A V Ranga Raju, Sri A G K Raju & Sri A S N Raju.
These facilities carry an interest rate of 8.40% to 10.05% per annum.
21.2 The Company used the borrowings from banks and financial institutions for the specific purpose for which it was taken.
21.3 The Company has borrowings from banks on the basis of security of current assets, and the quarterly returns and statements of current assets filed by the Company with banks are in agreement with the books of accounts.
21.4 The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries).
30.1 Defined contribution plans
The Company made Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised '' 18.84 crores (31.03.2021: '' 16.47 crores) for Provident Fund contributions and '' Nil crores (31.03.2021: '' 0.02 crores) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.
34 Contingent Liabilities and Commitments (to the extent not provided for) (i) Contingent Liability ('' in crores) |
||
As at March 31, 2022 |
As at March 31, 2021 |
|
(a) Matters under litigation |
||
Claims against the company not acknowledged as debt* |
||
- Disputed sales tax / entry tax liability for which the Company preferred appeal |
290.53 |
287.80 |
Disputed central excise duty relating to clearance of goods of LED division in favour of Developers of SEZ, for which the Company has filed an appeal to CESTAT, Bangalore |
0.46 |
0.46 |
- Disputed Service tax liability for which the Company preferred appeal |
96.31 |
96.31 |
- Others |
37.43 |
37.43 |
* interest, if any, not ascertainable after the date of order. |
||
(b) Guarantees |
||
Corporate Guarantees / Comfort Letter given to Banks for financial assistance extended to Subsidiaries. |
31.97 |
157.53 |
The Company has filed claims and has also filed counter claims in several legal disputes related to construction contracts and same are pending before legal authorities. The Management does not expect any material adverse effect on its financial position. (ii) Commitments ('' in crores) |
||
As at March 31, 2022 |
As at March 31, 2021 |
|
( ) Estimated amount of contracts remaining to be executed on capital account and not '' provided for. |
108.59 |
1.61 |
(b) Future Export commitments on account of import of machinery and equipments at '' concessional rate of duty under EPCG scheme |
1.76 |
1.76 |
The Company''s capital management objective is to maximise the total shareholder return by optimising cost of capital through flexible capital structure that supports growth. Further, the Company ensures optimal credit risk profile to maintain / enhance credit rating.
The Company determines the amount of capital required on the basis of annual operating plan and long-term strategic plans. The funding requirements are met through internal accruals and long-term/short-term borrowings. The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.
For the purpose of capital management, capital includes issued equity capital, securities premium and all other revenue reserves. Net debt includes all long and short-term borrowings as reduced by cash and cash equivalents.
The Company''s business activities exposed to a variety of financial risk viz., market risk, credit risk and liquidity risk. The Company''s focus is to estimate a vulnerability of financial risk and to address the issue to minimize the potential adverse effects of its financial performance.
i) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Company''s exposure to market risk is primarily on account of the following:
Out of total borrowings, large portion represents short term borrowings (WCDL) and the interest rate primarily basing on the Company''s credit rating and also the changes in the financial market. Company continuously monitoring over all factors influence rating and also factors which influential the determination of the interest rates by the banks to minimize the interest rate risks.
The Company''s exposure to changes in interest rates relates primarily to the Company''s outstanding floating rate borrowings. Out of the total borrowings of '' 1,184.08 crores (31.03.2021: '' 1,788.92 crores) as of 31.03.2022, the floating rate borrowings are '' 1,052.71 crores (31.03.2021: '' 1,469.53 crores). For every 50 base points change in the interest rate when no change in other variables, it will affect the profit before tax by '' 5.26 crores for the year ended March 31, 2022 (31.03.2021: '' 7.35 crores).
⢠Foreign currency risk
The Company has several balances in foreign currency and consequently the Company is exposed to foreign exchange risk. The exchange rate between the rupee and foreign currencies has changed substantially in recent years, which has affected the results of the Company, and may fluctuate substantially in the future. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.
We summarize below the financial instruments which have the foreign currency risks as at March 31, 2022 and March 31, 2021.
(b) Foreign currency sensitivity analysis:
The Company is not substantially exposed for business activities in foreign currency except in the form of investments and loans into its foreign subsidiaries and associates. Hence, the impact of any significant fluctuation in the exchange rates is not expected to have a material impact of the operating profits of the Company.
Credit Risk refers to the risk for a counter party default on its contractual obligation resulting a financial loss to the Company.
Credit risk on trade receivables and contract assets is limited as the customers of the Company mainly consists of the Government promoted entities having a strong credit worthiness. For doubtful receivables the company uses a provision matrix to compute the expected credit loss allowances for trade receivables and contract assets. In assessing the recoverability of the trade receivables and contracts assets, management''s judgement involves consideration of aging status, evaluation of litigations and the likelihood of collection based on the terms of the contract. Refer note 6, 10.3, 15 and 15.4 for provision made against trade receivable and contract assets.
Credit risk on account of investments, loans (including interest) and other receivables from group companies / related parties has been adequately provided in the books. The cash and bank balances (excluding cash on hand) are held with banks and financial institutions having good credit rating.
iii) Liquidity risk management
The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuous planning and monitoring of actual cash flows and by matching the maturity profiles of financial assets and liabilities.
The table below provides details regarding the contractual maturities of financial liabilities including estimated interest payments as at March 31, 2022:
40 The exceptional items for the year ended March 31,2022 is '' 145.64 (March 31,2021 is '' Nil ), pertains to Profit on sale of stake in the Subsidiary Company, NCC Vizag Urban Infrastructure Limited ,additional area allotted to NCC Limited on approval of revised plan as per the contractual terms in relation to Investment property under construction and provision made for impairment of investment.
41 Consequent to the encashment of Bank Guarantees (BGs) of '' 343.10 crores in the year 2017-18 by one of the customer (Sembcorp Energy India Limited), NCCL invoked the arbitration clause and submitted a claim of '' 1,571.41 crores towards refund of retention money, refund of BGs amount, payment of pending bills, additional works done and cost incurred on prolongation of the project by the customer. Against which, the customer has filed a counter claim of '' 1,071.46 crores towards liquidated damages, turbine replacement, balance works, etc. As per the management assessment and legal advise, no provision is required for the subject matter and arbitration proceedings are expected to be completed within a year''s time.
43 Amounts included in contract liabilities at the beginning of the year recognised as revenue in the current year of '' 533.29 crores (31.03.2021: '' 721.14 crores).
Change in the contract assets and contract liabilities as at March 31, 2022 from March 31, 2021 is on account of increase in operations of the Company.
44 Reconciling the amount of revenue recognised in the statement of profit and loss with the contracted price:
There is no difference in the contract price negotiated and the revenue recognised in the statement of profit and loss for the current year. There is no significant revenue recognised in the current year from performance obligations satisfied in previous periods.
The transaction price allocated to the remaining performance obligations (excluding non-moving orders) is '' 36,303 crores (31.03.2021: '' 36,239 crores), which will be recognised as revenue over the respective project durations. Generally the project duration of contracts with customers is ranging 1 to 3 years.
46 Pursuant to the Scheme of Amalgamation approved by the Hon''ble National Company Law Tribunal (NCLT), Hyderabad, vide order dated August 26, 2021, Aster Rail Private Limited and Vaidehi Avenues Limited (wholly owned subsidiaries) have merged with the Company, with effect from April 1, 2020, being the appointed date as per the scheme.
This being a common control business combination, the financial information of the wholly owned subsidiaries is included in the financial results of the Company and has been restated for comparative purpose from the appointed date and the impact of this restatement is not material.
The Scheme of Arrangement have been accounted for in the books of account of the Company ''in accordance with the Scheme'' and ''in accordance with accounting standards''
47 The trade receivables and contract assets includes an amount of '' 189.52 crores (31.03.2021: '' 254.15 crores) (net of mobilisation advance and provisions) relating to the Amaravati Capital City projects in the state of Andhra Pradesh. These works were commenced and were in good progress till May 2019. However, Subsequently, there is slow movement of execution of the work / payment in these projects. Management based on its internal assessments and discussions with the agencies is of the view that no further provision is required in this regard.
48 Estimation of uncertainties relating to the global health pandemic from COVID-19:
The Company has assessed the possible impact of COVID-19 pandemic on its operations, liquidity position and recoverability of its asset balances as at March 31, 2022 based on the internal and external sources of information upto the date of approval of these audited standalone financial statements. The Management will continue to monitor any material changes to the future economic conditions.
50 No charges are pending for registration with Registrar of Companies (ROC) beyond the statutory period.
51 No transactions made with the Struck off Companies in the current year (31.03.2021: '' Nil).
52 Previous period''s figures have been regrouped wherever necessary to conform to current period''s presentation.
53 Approval of financial statements:
The financial statements were approved for issue by the Board of Directors on May 1 1, 2022.
Mar 31, 2018
32.1 Defined contribution plans
The Company made Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs, 178.08 million (31.03.2017: Rs, 176.45 million) for Provident Fund contributions and Rs, 77.98 million (31.03.2017: Rs, 69.63 million) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.
32.2 Refer note 20.1 and 20.2 for expenses recognized for gratuity and cost of compensated absences of employees.
37. Related Party Transactions
i) Following is the list of related parties and relationships:
S.No Particulars S.No Particulars
A) Subsidiaries 38 Sradha Real Estates Private Limited
1 NCC Infrastructure Holdings Limited 39 Siripada Homes Private Limited
2 NCC Urban Infrastructure Limited 40 NJC Avenues Private Limited
3 NCC Vizag Urban Infrastructure Limited 41 NCC Urban Lanka (Private) Limited
4 Nagarjuna Construction Co. Ltd and Partners L.L.C. 42 NCC WLL
5 NCC Infrastructure Holdings Mauritius Pte. Limited 43 Al Mubarakia Contracting Company L.L.C.
NCCA International Kuwait General Contracts
6 Nagariuna Construction Company International L.L.C. 44
Company L.L.C.
7 Nagarjuna Contracting Co. L.L.C. 45 Samashti Gas Energy Limited
8 Patnitop Ropeway and Resorts Limited 46 NCC Infra Limited
9 Western UP Tollway Limited ** 47 NCC Urban Homes Private Limited
10 Vaidehi Avenues Limited 48 NCC Urban Ventures Private Limited
11 NCC International Convention Centre Limited 49 NCC Urban Meadows Private Limited
12 NCC Oil & Gas Limited 50 NCC Urban Villas Private Limited
13 Nagarjuna Construction Company (Kenya) Limited@ 51 Nagarjuna Suites Private Limited
14 Naftogaz Engineering Private Limited 52 Savitra Agri Industrial Park Private Limited
15 Aster Rail Private Limited 53 OB Infrastructure Limited
16 Pachhwara Coal Mining Private Limited C) Associates
17 Talaipalli Coal Mining Private Limited (w.e.f. December 12, 2017) 54 Paschal Form Work (India) Private Limited
B) Step-Down Subsidiaries 55 Nagarjuna Facilities Management Services L.L.C.
18 Liquidity Limited 56 Jubilee Hills Landmark Projects Private Limited
19 Dhatri Developers & Projects Private Limited 57 Tellapur Technocity (Mauritius)
20 Sushanti Avenues Private Limited 58 Tellapur Technocity Private Limited
21 Sushruta Real Estates Private Limited 59 Apollonius Coal and Energy Pte. Limited
22 PRG Estates Private Limited 60 Ekana Sportz City Private Limited
23 Thrilekya Real Estates Private Limited 61 Brindavan Infrastructure Company Limited
24 Varma Infrastructure Private Limited 62 Bangalore Elevated Tollway Limited *
25 Nandyala Real Estates Private Limited 63 Pondicherry Tindivanam Tollway Limited
26 Kedarnath Real Estates Private Limited D) Key Management Personnel
27 AKHS Homes Private Limited 64 Sri A.A.V. Ranga Raju
28 JIC Homes Private Limited 65 Sri A.S.N. Raju
29 Sushanthi Housing Private Limited 66 Sri A.G.K. Raju
30 CSVS Property Developers Private Limited 67 Sri A.V.N. Raju
31 Vera Avenues Private Limited 68 Sri N.R. Alluri#
32 Sri Raga Nivas Property Developers Private Limited 69 Sri J.V. Ranga Raju
33 VSN Property Developers Private Limited 70 Sri R.S. Raju
34 MA Property Developers Private Limited 71 Sri M.V. Srinivasa Murthy
35 Vara Infrastructure Private Limited 72 Sri Ramachandra Venkataraman Shastri
36 Sri Raga Nivas Ventures Private Limited 73 Sri Utpal Hemendra Sheth
37 Mallelavanam Property Developers Private Limited 74 Smt. Renu Challu
S.No Particulars S.No Particulars
Enterprises owned or significantly influenced by
75 Sri Ravi Shankararamaiah F) . ^
key management personnel or their relatives
76 Sri Hemant Madhusudan Nerurkar 97 NCC Blue Water Products Limited
77 Sri Durga Prasad Subramanyam Anapindi 98 NCC Finance Limited
78 Sri Neeraj Mohan 99 Shyamala Agro Farms Private Limited E) Relatives of Key Management Personnel 100 Ranga Agri Impex Private Limited
79 Dr. A.V.S. Raju 101 NCC Foundation
80 Smt. A. Bharathi Raju 102 Sirisha Projects Private Limited
81 Smt. B. Kausalya 103 Ruthvik Estates Private Limited
82 Smt. A. Satyanarayanamma 104 Narasimha Developers Private Limited
83 Smt. J. Sridevi 105 Mihika Agro Farms Private Limited
84 Smt. J. Sowjanya 106 Lalit Agro Farms Private Limited
85 Smt. A. Arundhati 107 Bhuvanesh Realtors Private Limited
86 Sri. A. Srinivasa Rama Raju 108 Arnesh Ventures Private Limited
87 Smt. A.Swetha 109 Suguna Estates Private Limited
88 Sri. J. Krishna Chaitanya Varma 110 AVSR Holdings Private Limited
89 Smt. A. Subhadra Jyotirmayi 111 Sridevi Properties
90 Smt. A.Shyama 112 Natural Buildtech Private Limited
91 Smt. A.Suguna 113 Prakrithi Promoters Private Limited
92 Sri. A. Sri Harsha Varma 114 Matrix Security and Surveillance Private Limited
93 Sri. S.R.K. Surya Srikrishna Raju 115 Jampana Constructions Private Limited
94 Sri. A. Vishnu Varma
95 Ms. A. Nikitha
96 Sri. U Sunil (w.e.f. February 14, 2018)
* Ceased to be Associate w.e.f . October 18, 2016 ** Ceased to be Subsidiary w.e.f . May 11, 2016
@ The entity ceased to exist w.e.f . March 31, 2018
# Key Management Person upto November 11, 2017
1 Financial risk management objectives
The company''s business activities exposed to a variety of financial risk viz., market risk, credit risk and liquidity risk. The company''s focus is to estimate a vulnerability of financial risk and to address the issue to minimize the potential adverse effects of its financial performance.
i) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Company''s exposure to market risk is primarily on account of the following:
- Interest rate risk
Out of total borrowings, large portion represents short term borrowings (WCDL) and the interest rate primarily basing on the Company''s credit rating and also the changes in the financial market. Company continuously monitoring over all factors influence rating and also factors which influential the determination of the interest rates by the banks to minimize the interest rate risks.
The Company''s exposure to changes in interest rates relates primarily to the Company''s outstanding floating rate borrowings. Out of the total borrowings of Rs, 13,000.67 million (31.03.2017: Rs, 15,766.71 million) as of 31.03.2018, the floating rate borrowings are Rs, 10,068.48 million (31.03.2017: Rs, 15,602.07 million). For every 50 base points change in the interest rate when no change in other variables, it will affect the profit before tax by Rs, 52.84 million for the year ended March 31, 2018 (31.03.2017:? 78.01 million).
- Foreign currency risk
The Company has several balances in foreign currency and consequently the Company is exposed to foreign exchange risk. The exchange rate between the rupee and foreign currencies has changed substantially in recent years, which has affected the results of the Company, and may fluctuate substantially in the future. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.
We summarize below the financial instruments which have the foreign currency risks as at March 31, 2018 and March 31, 2017.
The Company doesn''t have any forex derivative instrument, hence all the above balances are unhedged.
(b) Foreign currency sensitivity analysis:
The Company is not substantially exposed for business activities in foreign currency except in the form of investments and loans into its foreign subsidiaries and associates. Hence, the impact of any significant fluctuation in the exchange rates is not expected to have a material impact of the operating profits of the company.
ii) Credit risk management
Credit Risk refers to the risk for a counter party default on its contractual obligation resulting a financial loss to the Company. The maximum exposure of the financial assets represents trade receivables and loans to group companies.
Credit risk on trade receivables is limited as the customers of the Company mainly consists of the Government promoted entities having a strong credit worthiness. For doubtful receivables the company uses a provision matrix to compute the expected credit loss allowances for trade receivables. The provision matrix takes into account ageing of accounts receivables and the Company''s historical experience of the customers and financial conditions of the customers. The Company has made a provision of Rs, 531.98 million and Rs, 403.00 million towards doubtful amounts receivable as at March 31, 2018 and March 31, 2017 respectively.
iii) Liquidity risk management
The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
.The table below provides details regarding the contractual maturities of financial liabilities including estimated interest payments as at March 31, 2018:
The fair values of the financial assets and financial liabilities included above have been determined in accordance with generally accepted pricing models.
2.a) Gross amount required to be spent by the Company towards CSR during the year Rs, 46.80 million (March 31, 2017: Rs, 23.73 million)
b) Amount spent:
3. The exceptional items for the year ended March 31, 2018 is Rs, 1,065.64 million after netting off profit on investment Rs, 124.16 million, provision made for impairment of investment, loans and interest Rs,1,189.80 million.
The exceptional items for the year ended March 31, 2017 is Rs, 503.37 million after netting off interest earned Rs, 277.71 million, profit on sale of investments Rs, 219.22 million with provision made on investments, loans, interest and warranties / claims Rs, 1,000.30 million.
4. During the previous year, a customer of NCC Limited had raised claims for an amount of Rs, 2,882.50 million and US $ 9.04 million towards liquidated damages claiming delays in execution of the project by NCC Limited. Failing amicable settlement of various issues, NCC Limited had issued a notice of dispute stating that the delays are not attributable to NCC Limited and subsequently the matter has been referred to Arbitration Tribunal. The claims primarily represents recovery of receivables for the work executed of Rs, 6,526.00 million and additional costs incurred by NCC Limited of Rs, 12,010.00 million with interest. Against which the customer has filed a counter claim of Rs, 10,230.00 million. While the matter is in arbitration, the customer had invoked the Bank Guarantees of Rs, 3,398.50 million and NCC Limited had appealed the matter to the Honourable Supreme Court for stay against the invocation of the bank guarantees, but the Honourable Supreme Court has dismissed the appeal. Consequently, the bankers honoured the bank guarantees. As of March 31, 2018 the matter is in arbitration and as per the management estimates and legal advice, no provision is required for the subject matter and the matter is expected to be resolved in the financial year 2018-19.
5. Approval of financial statements:
The financial statements were approved for issue by the Board of Directors on May 24, 2018.
Mar 31, 2017
1 In accordance with the Payment of Gratuity Act, 1972 the company provides for gratuity covering eligible employees. The liability on account of gratuity is covered partially through a recognized Gratuity Fund managed by Life Insurance Corporation of India (LIC) and balance is provided on the basis of valuation of the liability by an independent actuary as at the year end. The management understands that LIC overall portfolio of assets is well diversified and as such, the long term return on the policy is expected to be higher than the rate of return on Central Government bonds.
A Defined benefit plans
(i) Liability for gratuity as on March 31, 2017 is Rs, 143.18 million (31.03.2016:Rs, 123.17 million and 01.04.2015: Rs, 113.32 million) of which Rs, 31.89 million (31.03.2016: Rs, 41.15 million and 01.04.2015: Rs, 24.86 million) is funded with the Life Insurance Corporation of India. The balance of Rs, 111.29 million (31.03.2016:Rs, 82.02 million and 01.04.2015: Rs, 88.46 million ) is included in Provision for Gratuity.
(ii) Details of the company''s post-retirement gratuity plans for its employees including whole-time directors are given below, which is certified by the actuary.
2 Working Capital Demand Loans and Cash Credit facilities availed from consortium of banks are secured by:
a) Hypothecation against first charge on stocks, book debts, shares of NCC Infrastructure Holdings Limited (Refer note 4.3) and other current assets of the Company, (excluding specific projects) both present and future, ranking parri passu amongst consortium banks.
b) Hypothecation against first charge on unencumbered fixed assets of the Project Division and Light Engineering Division (excluding Land & Buildings) of the Company rank parri passu amongst consortium banks.
c) Equitable mortgage of three properties (Land & Buildings).
d) The Company availed overdraft facility from ICICI Bank and is secured, in terms of the sanction letter, by:
- mortgage over immovable fixed assets;
- pledge of shares of NCC Urban Infrastructure Limited held by NCC Limited;
- personal guarantees of Sri. A.A.V. Ranga Raju, Sri A.G.K. Raju, Sri. A.S.N. Raju, Sri. A.V.N. Raju, Sri. A.K.H.S. Rama Raju, Sri. N.R. Alluri and Sri. J.V. Ranga Raju;
This facility carries an interest rate of 13.50% per annum.
3 Unsecured - term loans from Others: having a maturity of less than one year and carry interest rate of 12.00 % per annum.
4. Related Party Transactions
i) Following is the list of related parties and relationships:
S.No Particulars S.No Particulars
A) Subsidiaries 36 Sri Raga Nivas Ventures Private Limited
1 NCC Infrastructure Holdings Limited 37 Mallelavanam Property Developers Private Limited
2 NCC Urban Infrastructure Limited 38 Sradha Real Estates Private Limited
3 NCC Vizag Urban Infrastructure Limited 39 Siripada Homes Private Limited
4 Nagarjuna Construction Co.Ltd and Partners LLC 40 NJC Avenues Private Limited
5 OB Infrastructure Limited 41 NCC Urban Lanka (Private) Limited
6 NCC Infrastructure Holdings Mauritius Pte. Limited 42 NCC WLL
7 Nagarjuna Construction Company International LLC 43 Al Mubarakia Contracting Company LLC
8 Nagarjuna Contracting Co.LLC 44 NCCA International Kuwait General Contracts Company LLC
9 Patnitop Ropeway and Resorts Limited 45 Samashti Gas Energy Limited
10 Western UP Tollway Limited ** 46 NCC Infra Limited
11 Vaidehi Avenues Limited 47 NCC Urban Homes Private Limited
12 NCC International Convention Centre Limited 48 NCC Urban Ventures Private Limited
13 NCC Oil & Gas Limited 49 NCC Urban Meadows Private Limited
14 Nagarjuna Construction Company (Kenya) Limited 50 NCC Urban Villas Private Limited
15 Naftogaz Engineering Private Limited 51 Nagarjuna Suites Private Limited
16 Aster Rail Private Limited 52 Savitra Agri Industrial Park Private Limited (formerly NCC Power
Projects (Sompeta) Private Limited)
17 Pachhwara Coal Mining Private Ltd
B) Step-Down Subsidiaries C) Associates
18 Liquidity Limited 53 Paschal Form Work (India) Private Limited
19 Dhatri Developers & Projects Private Limited 54 Nagarjuna Facilities Management Services LLC
20 Sushanti Avenues Private Limited 55 Himalayan Green Energy Private Limited
21 Sushruta Real Estates Private Limited 56 Jubilee Hills Landmark Projects Private Limited
22 PRG Estates Private Limited 57 Tellapur Technocity (Mauritius)
23 Thrilekya Real Estates Private Limited 58 Tellapur Technocity Private Limited
24 Varma Infrastructure Private Limited 59 Apollonius Coal and Energy Pte.Ltd.
25 Nandyala Real Estates Private Limited 60 Ekana Sportz City Private Limited
26 Kedarnath Real Estates Private Limited 61 Varapradha Real Estates Private Limited
27 AKHS Homes Private Limited 62 Brindavan Infrastructure Company Limited
28 JIC Homes Private Limited 63 Bangalore Elevated Tollway Limited *
29 Sushanthi Housing Private Limited 64 Pondicherry Tindivanam Tollway Limited
30 CSVS Property Developers Private Limited
31 Vera Avenues Private Limited D) Key Management Personnel
32 Sri Raga Nivas Property Developers Private Limited 65 Sri A.A.V. Ranga Raju
33 VSN Property Developers Private Limited 66 Sri A.S.N. Raju
34 MA Property Developers Private Limited 67 Sri A.G.K. Raju
35 Vara Infrastructure Private Limited 68 Sri A.V.N. Raju
S.No Particulars S.No Particulars
69 Sri N.R. Alluri 94 Shyamala Agro Farms Private Limited
70 Sri J.V. Ranga Raju 95 Ranga Agri Impex Private Limited
71 Sri R.S. Raju 96 NCC Foundation
72 Sri M.V. Srinivasa Murthy 97 Sirisha Projects Private Limited
98 Ruthvik Estates Private Limited
E) Relatives of Key Management Personnel 99 Narasimha Developers Private Limited
73 Dr. A.V.S. Raju 100 Mihika Agro Farms Private Limited
74 Smt. A. Bharathi 101 Lalit Agro Farms Private Limited
75 Smt. B. Kausalya 102 Bhuvanesh Realtors Private Limited
76 Smt. A. Satyanarayanamma 103 Arnesh Ventures Private Limited
77 Smt. J. Sridevi 104 Suguna Estates Private Limited
78 Smt. J. Sowjanya 105 AVSR Holdings Private Limited
79 Smt. A. Arundhati 106 Kolleru Industries Pvt Ltd
80 Sri. A. Srinivasa Rama Raju 107 Godavari Holiday Resorts Private Limited
81 Smt. A.Swetha 108 Sridevi Properties
82 Sri. J. Krishna Chaitanya 109 Kaveri Properties
83 Smt. A. Subhadra Jyotirmayi 110 Avathesh Property Developers Private Limited
84 Smt. A.Shyama 111 Jyothi Greenlands Private Limited
85 Smt. A.Suguna 112 Arundhathi Greeenlands Private Ltd
86 Sri. A. Harsha Varma 113 Sirisha Mining Private Limited
87 Sri. SK. S.S.K. Raju 114 Nirathi Mining Private Limited
88 Sri. A. Vishnu Varma 115 Jyothirmayi Minerals Private Limited
89 Ms. A. Nikitha 116 Prakrithi Realty Private Limited
117 Natural Buildtech Private Limited
F) Enterprises owned or significantly influenced by key 118 Prakrithi Promoters Private Limited management personnel or their relatives
90 NCC Blue Water Products Limited
91 Swetha Estates
92 NCC Finance Limited
93 Sirisha Memorial Charitable Trust
* Ceased to be Associate w.e.f October 18, 2016 ** Ceased to be Subsidiary w.e.f May 11, 2016
5 Leases
(i) Rental expenses of Rs, 410.03 million (31.03.2016: Rs, 366.15 million) has been charged to Statement of Profit and Loss in respect of cancellable operating lease.
(ii) The Company has entered into Operating Lease arrangement for certain equipments. The lease is non-cancellable for a period of 5 years from March 28, 2013 to March 27, 2018.
6.Financial instruments
7. Capital management
The Company''s capital management objective is to maximize the total shareholder return by optimizing cost of capital through flexible capital structure that supports growth. Further, the Company ensures optimal credit risk profile to maintain/enhance credit rating.
The Company determines the amount of capital required on the basis of annual operating plan and long-term strategic plans. The funding requirements are met through internal accruals and long-term/short-term borrowings. The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.
For the purpose of capital management, capital includes issued equity capital, securities premium and all other revenue reserves. Net debt includes all long and short-term borrowings as reduced by cash and cash equivalents.
8. Financial risk management objectives
The company''s business activities exposed to a variety of financial risk viz., market risk, credit risk and liquidity risk. The company''s focus is to estimate a vulnerability of financial risk and to address the issue to minimize the potential adverse effects of its financial performance.
9. Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes. The company''s exposure to market risk is primarily on account of foreign currency exchange rate risk.
- Interest rate risk
Out of total borrowings, large portion represents short term borrowings (WCDL) and the interest rate primarily basing on the company''s credit rating and also the changes in the financial market. Company continuously monitoring over all factors influence rating and also factors which influential the determination of the interest rates by the banks to minimize the interest rate risks.
- Foreign currency risk
The company has several balances in foreign currency and consequently the company is exposed to foreign exchange risk. The exchange rate between the rupee and foreign currencies has changed substantially in recent years, which has affected the results of the company, and may fluctuate substantially in the future. The company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.
We summarize below the financial instruments which have the foreign currency risks as at March 31, 2017, March 31, 2016 and April 1, 2015.
Equity risks
The company is exposed only to non-listed equity investments and as a policy matter the company bringing down the equity investment exposure to the various companies. The company continuously in the process of disinvestment of its investments in the foreign companies. As the exposure has come down significantly and does not have any equity investment in the listed entities, the impact of change in equity price on profit or loss is not significant.
10. Credit risk management
Credit Risk refers to the risk for a counter party default on its contractual obligation resulting a financial loss to the company. The maximum exposure of the financial assets represents trade receivables, work in progress and receivables from group companies.
Credit risk on trade receivables, work in progress is limited as the customers of the company mainly consists of the Government promoted entities having a strong credit worthiness. For doubtful receivables the company uses a provision matrix to compute the expected credit loss allowances for trade receivables. The provision matrix takes into account ageing of accounts receivables and the company''s historical experience of the customers and financial conditions of the customers. The company has made a provision of '' 403.00 million and '' 230.00 million towards amounts doubtful to receive during the year ended March 31, 2017 and March 31, 2016 respectively.
11. Liquidity risk management
The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. Note
12.sets out details of additional undrawn facilities that the Company has at its disposal to reduce liquidity risk.
The table below provides details regarding the contractual maturities of financial liabilities including estimated interest payments as at March 31, 2017:
13. Fair value measurements
Some of the Company''s financial assets and financial liabilities are measured at fair value at the end of the reporting period. The following table gives information about how the fair values of these financial assets and financial liabilities are determined (in particular, the valuation techniques and inputs used):
(1) In case of Investments in equity instruments, the company adopted fair value as deemed cost for certain investments as on transition date i.e. April 01, 2015.
(2) In case of certain loans and other receivables, the company has provided expected credit loss allowance as on transition date i.e. April 01, 2015.
(3) The fair values of the financial assets and financial liabilities included above have been determined in accordance with generally accepted pricing models.
14 Expenses incurred on Corporate Social Responsibility (CSR) programs under Section 135 of the Companies Act, 2013 are charged to the Statement of Profit and Loss under ''Other Expenses'' (Note 34) - Rs, 20.73 million and an advance of Rs, 3.00 million has been paid for CSR related activities (31.03.2016: Rs, 12.94 million).
15 The exceptional items for the year ended March 31, 2017 is Rs, 503.37 million after netting off interest earned Rs, 277.71 million, profit on sale of investments Rs, 219.22 million with provision made on investments, loans, interest and warranties / claims Rs, 1,000.30 million.
The exceptional items for the year ended March 31, 2016 is Rs, 203.23 million after netting off profit on sale of non current investments Rs, 309.77 million with provision made for impairment of noncurrent investments Rs, 513.00 million.
16. During the current year, a customer of the Company had raised claims for an amount of Rs, 2,882.50 million and of US$ 9.04 million on February 23, 2017 towards liquidated damages towards the delays in execution of the project. As against this, on March 14, 2017 the Company has issued a notice of disputes under the contracts and amongst other things, had counter claimed payment of additional costs of Rs, 6,847.80 million, with interest. The Company filed petitions under Section 9 of the Arbitration and Conciliation Act, 1996, before the Hon''ble Court of the XXIV Additional Chief Judge cum Commercial Court, City Civil Courts, Hyderabad ("Commercial Court"), seeking injunction restraining the Company from invoking the Performance Bank Guarantees issued in favour of the Company, pursuant to the terms of the EPC Contracts. On April 18, 2017, the Commercial Court dismissed the petition filed by the Company. The Company has filed an appeal before the High Court to set aside the Order passed by Commercial Court until the disputes are adjudicated and settled between the parties through arbitration as per the terms of the contract and restraining the Company from invoking or encashing the bank guarantee(s). In the interim, the demand notices for the bank guarantees had already been presented to the respective banks by the Customer and the bank guarantee for '' 516.00 million issued by the Syndicate Bank was honoured. The matter is pending disposal as of date and as per the Management estimates, no additional provision required for this project.
17 "First-time adoption of Ind-AS
(i) These financial statements, for the year ended March 31, 2017 have been prepared in accordance with the Ind AS. For the purpose of transition to Ind AS, the Company has complied with Ind AS 101 - "First time adoption of Indian Accounting Standard" for exemptions and exceptions, on transition date (i.e. April 1, 2015) and Indian GAAP is the previous GAAP followed by the company.
The transition to Ind AS has resulted in changes in the presentation of financial statements, disclosures in the notes and accounting policies and principles. The accounting policies set out in Note 2 have been applied in preparing the separate financial statements for the year ended March 31, 2017 and the comparative information.
(ii) Deemed cost for investments in Subsidiaries, associates and Other entities:
The Company has elected to continue with the carrying value for all its investments in subsidiaries and associates as of April 1, 2015 measured under Indian GAAP as deemed cost as of April 1, 2015 (transition date) except certain investments where fair value has been considered as deemed cost.
(iii) Cumulative translation differences on foreign operations:
The Company has elected to transfer the cumulative foreign currency translation reserve existed as of April 1, 2015 (transition date) to retained earnings.
(iv) Derecognition of Financial Assets (i.e. Loans, Accrued Interest etc.):
The Company has applied the derecognition of financial assets and financial liabilities prospectively for transactions occuring on or after April 1, 2015(trasition date).
18. The effect of the Company''s transition to Ind AS is summarized as reconciliations of Equity, Profit and Total comprehensive income with Indian GAAP as explained below:
(a) Reconciliation of equity as previously reported under Indian GAAP to Ind AS.
(b) Reconciliation of profit or loss and Total Comprehensive income as previously reported under Indian GAAP to Ind AS.
(c) Adjustments to the statement of cash flows.
(i) Under Indian GAAP, the Company accounted for investments in subsidiaries and associates (unquoted) measured at cost less provision for other than temporary diminution in the value of investments. Under Ind AS, as of April 01, 2015 (transition date) the company opted the deemed cost of investments in subsidiaries and associates as the carrying value as per Indian GAAP except certain investments where fair value has been considered as deemed cost.
(ii) Under Indian GAAP, the Company accounted for other entity investments as investments measured at lower of cost and fair value. Under Ind AS, the Company has designated such investments as FVTPL.
(iii) Under Indian GAAP, the Company measured financial assets at cost. As at the transition date, the company recognized the provision for expected credit loss for certain financial assets as per the criteria set out in Ind AS 101.
(iv) Under Indian GAAP, dividends on equity shares recommended by the Board of Directors after the end of the reporting period but before the financial statements were approved for issue were recognized in the financial statements as a liability. Under Ind AS, such dividends along with the dividend distribution tax thereon are recognized as a liability when approved by the members in a general meeting.
(v) Under Ind AS, the company has recognized interest income on financial guarantees given on behalf of its group companies.
(vi) The Company recognizes costs related to its post-employment defined benefit plan on an actuarial basis both under Indian GAAP and Ind AS. Under Indian GAAP, the entire cost including actuarial gains and losses and return on planned assets are charged to profit or loss. Under Ind AS, actuarial gains and losses and return on planned assets recognized immediately in the Balance Sheet with a corresponding debit or credit to retained earnings through Other Comprehensive Income.
(vii) Under Indian GAAP, transaction costs incurred in connection with borrowings are charged in statement of profit or loss in respective year. Under Ind AS, such costs are included in the initial recognition amount of financial liability are charged to statement of profit or loss using the effective interest method (i.e., over the tenure of the loan).
(viii) Under Indian GAAP, the company has accumulated the foreign exchange translation differences in Foreign Currency Translation Reserve (FCTR). Under Ind AS as of April 1, 2015, the company elected to net off the accumulated FCTR to retained earnings and subsequently charge off all the exchange gains and losses to the statement of profit and loss except translation differences arising during the conversion of financial statements of branches from their respective reporting currency to company presentation currency and such translation differences are recognized in other comprehensive income.
(ix) Consequential deferred tax on above applicable adjustments
(c) Effect of adoption of Ind AS on the Statement of cash flows for the year ended March 31, 2016:
Following is the impact on cash flows on transition from Indian GAAP to Ind AS. Cash flows relating to interest are classified in a consistent manner as operating, investing or financing each year.
19. Approval of financial statements:
The financial statements were approved for issue by the Board of Directors on May 23, 2017.
Mar 31, 2015
1 Corporate information:
NCC Limited, formerly Nagarjuna Construction Company Limited ("NCCL", /
"the Company") was established as a Partnership firm in 1978, which was
subsequently converted into a Limited Company in 1990. The shares of
the Company were listed on the stock exchanges in India during 1992
pursuant to the Initial Public Offer of equity shares. The Company is
engaged in the infrastructure sector, primarily in the construction of
industrial and commercial buildings, roads, bridges and flyovers, water
supply and environment projects, housing, power transmission lines,
irrigation and hydrothermal power projects, real estate development,
etc.
2 Rights of the share holders a) The equity shares of the company having
par value of Rs. 2 per share, rank pari passu in all respects including
voting rights (except GDRs) and entitlement to dividend. Repayment of
the capital in the event of winding up of the Company will inter alia be
subject to the provisions of Companies Act 2013, the Articles of
Association of the Company and as may be determined by the Company in
General Meeting prior to such winding up.
b) 18,700 (31.03.2014: 39,700) equity shares represent the shares
underlying outstanding GDRs. Each GDR represent one underlying equity
share having par value of Rs. 2. The GDRs, rank pari passu in all
respects with the equity shares issued by the Company, except in
respect of voting rights.
3 Pursuant to the approval of the shareholders during their meeting
held on May 22, 2014, the Authorised equity share capital has been
increased from Rs. 600 million comprising of 300,000,000 shares of Rs. 2
each to Rs.1,500 million comprising of 750,000,000 shares of Rs. 2 each.
4 During the current year, the Company, had offerred 299,347,778 equity
shares of Rs. 2 each on rights basis to all the shareholders whose names
had appeared in the Register of Members as on record date fixed for the
Rights issue i.e September 19, 2014 at a premium of Rs. 18. The rights
issue was fully subscribed and 299,347,778 equity shares have been
allotted on October 30, 2014.
5 11.95% Redeemable Non convertible Debentures
(i) Debentures numbering to 1,000 having a face value of Rs. 1 million
each aggregating to Rs. 1,000 million privately placed with Life
Insurance Corporation of India on February 4, 2009. These are secured
by first charge created in favour of IDBI Trusteeship Services Limited,
trustees to the debenture holders:
* by way of hypothecation of the Company's movable properties specified
in the Schedule-2 of Memorandum of Hypothecation dated April 25, 2009;
* first charge by way of equitable mortgage by deposit of title deeds
of the Company's immovable property situated at Gujarat as specified in
first schedule to the Debenture Trust Deed dated April 23, 2009;
* equitable mortgage by deposit of title deeds of Company's immovable
properties situated at Hyderabad, Bangalore, Mumbai and New Delhi as
specified in Schedule-A of Declaration and Undertaking dated April 25,
2009.
(ii) These debentures are to be redeemed at par in 3 installments in
the ratio of 25:25:50 commencing at the end of 3rd year from the date
of allotment i.e., February 4, 2012 onwards.
(iii) The debenture holders have consented for deferment of due date
for final installment of Rs. 500.00 million from February 04, 2014 to
September 30, 2014 with an increase in rate of interest by 25 basis
points effective from February 04, 2014.
(iv) During the current year the final installment has been repaid.
6 10.50% Redeemable Non convertible Debentures
(i) Debentures numbering to 1,000 having a face value of Rs. 1 million
each comprising of ten (10) Detachable and Separately Transferable,
Redeemable Principal Parts ("STRPPS") aggregating to Rs. 1,000 million
privately placed during 2009-10 with various banks and financial
institutions. These are secured by first charge created in favour of
IDBI Trusteeship Services Limited, trustees to the debenture holders, by
way of equitable mortgage of the title deeds in respect of the company's
immovable property situated at Kadi Taluka, Mehasana district, Gujarat
as specified in the first schedule to the Debenture Trust Deed dated
September 15, 2009 and by way of equitable mortgage by deposit of title
deeds of the immovable properties of the Company and its subsidiary and
its step-down subsidiaries, situated at Hyderabad as specified in
Schedule-A to I of Declaration and Undertaking dated October 12, 2009.
(ii) These debentures are to be redeemed at par in 3 installments in
the ratio of 30:30:40 commencing at the end of 3rd year from the date
of allotment i.e., July 24, 2012 onwards.
(iii) During the current year these debentures have been fully
redeemed.
7 9.50 % Redeemable Non-Convertible Debentures
(i) Debentures numbering to 500 having face value of Rs. 4 million each
comprising of four (4) Detachable and Separately Transferable Redeemable
principal parts ("STRPPS") of face value of Rs. 1 million each
aggregating to Rs. 2,000 million privately placed with ICICI Bank
Limited.
(ii) These Debentures are to be redeemed at par in four equated
installments commencing at the end of second year from the date of
allotment i.e. August 11, 2012 onwards.
8 Term Loans from Banks
(i) Term loans from Andhra Bank, State Bank of Hyderabad, State Bank of
India, Syndicate Bank, Indian Overseas Bank and
Standard Chartered Bank aggregating Rs. 2,572.00 million are secured /
to be secured, in terms of the sanction letter, by:
* first parri-passu charge on the properties owned by NCC Limited, NCC
Urban Infrastructure Limited, Dhatri Developers and Properties Private
Limited and the subsidiaries of NCC Urban Infrastructure Limited
* pledge of shares of NCC Urban Infrastructure Limited held by NCC
Limited.
* personal guarantees of Sri AAV Ranga Raju, Sri AGK Raju, Sri ASN
Raju, Sri AVN Raju, Sri AKHS Rama Raju, Sri NR Alluri and Sri JV Ranga
Raju.
These loans are repayable in 8 quarterly installments (with a
moratorium of 24 months) commencing from September 30, 2016 to June
30,2018 and carry interest rate of 13.50% per annum with monthly rests.
(ii) HDFC Bank and Indus Ind Bank Ltd
* Secured by hypothecation of specific assets purchased out of the
loan, comprising Plant and Machinery
(iii) Axis Bank Limited and Kotak Mahindra Bank
* Secured by hypothecation of specific assets purchased out of the loan
9 Working Capital Demand Loans and Cash Credit facilities availed
from consortium of banks are secured by:
a) Hypothecation against first charge on stocks, book debts, shares of
NCC Infrastracture Holdings Limited (Refer note 14.3) and other current
assets of the Company, (excluding specific projects) both present and
future, ranking parri passu amongst consortium banks.
b) Hypothecation against first charge on unencumbered fixed assets of
the Project Division and Light Engineering Division(excluding Land &
Buildings) of the Company rank parri passu amongst consortium banks.
c) Equitable mortgage of three properties (Land & Buildings).
d) The Company availed overdraft facility from ICICI Bank with validity
upto August 5, 2015 and is secured, in terms of the sanction letter,by:
* mortagage over immovable fixed assets;
* pledge of shares of NCC Urban Infrastructure Limited held by NCC
Limited;
* personal guarantees of Sri AAV Ranga Raju, Sri AGK Raju, Sri ASN
Raju, Sri AVN Raju, Sri AKHS Rama Raju, Sri NR Alluri and Sri JV Ranga
Raju;
This facility carries an interest rate of 13.50% per annum.
10 Secured - term loans from Banks:
a) Collateral security / First charge on immovable property and second
charge on current assets of the company
b) The company availed short term loans from various banks having a
maturity of less than one year and carry interest rate ranging between
12.50% to 14.00 % per annum.
c) During the current year these term loans from banks have been fully
repaid.
11 Unsecured - term loans from Banks:
a) Includes an amount of Rs. 948.07 million (31.03.2014: Rs. 948.07
million) availed from Standard Chartered Bank under retention money
discounting facility.
b) The company availed short term loans from various banks having a
maturity of less than one year and carry interest rate ranging between
12.50% to 13.05% per annum.
c) During the current year these term loans from banks have been fully
repaid.
12 Unsecured - term loans from Others: having a maturity of less than
one year and carry interest rate of 12.00 % per annum and these loans
have been fully repaid.
13 Contingent Liabilities and Commitments
(Rs. in million)
As at As at
March 31, 2015 March 31, 2014
(i) Contingent Liability
(a) Matters under litigation
Claims against the company not
acknowledged as debt
- Disputed sales tax / entry tax
liability for which the Company
preferred appeal 1,190.79 499.49
- Disputed central excise duty
relating to clearance of goods
of LED division in favour of
Developers of SEZ, for which
the Company has filed an appeal
to CESTAT, Bangalore 5.73 5.73
- Disputed service tax liability
for which the Company preferred
appeal 1,953.57 3,249.89
- Disputed Income tax liability
for which the Company preferred
appeal 120.50 179.81
(Net off Tax Deduction at Source
certificates and interest thereon
submitted to the Tax Authorities)
- Others 12.53 2.86
(b) Impact of pending legal
suits in various courts:
- The Company is a party to several
legal suits on construction contract
terms related disputes, pending
before various courts in India as
well as arbitration proceedings.
It is not possible to make a fair
assessment of the likely financial
impact of these pending disputes /
litigations
until the cases are decided by
the appropriate authorities.
- Joint and several liability in Amount not Amount not
respect of joint venture projects ascertainable ascertainable
and liquidated damages in
respect of delays in completion of
projects
- Levy of labour cess @ 1%
(w.e.f. July 2007) on the construction
contracts executed by the Company in
the State of Andhra Pradesh contested
before the Hon'ble High Court of
Andhra Pradesh
(c) Guarantees
Counter Guarantees and Letter
of Credits given to the Bankers * 1,572.32 1,558.35
Performance guarantees,
given on behalf of Subsidiaries * - 362.50
Corporate Guarantees given to
Banks for financial assistance
extended to Subsidiaries. 16,116.10 11,566.06
*Excludes Guarantees given
against Company's liabilities,
in terms of Guidance Note issued
by the Institute of Chartered
Accountants of India.
(ii) Commitments
(a) Estimated amount of contracts
remaining to be executed on capital
account and not provided for [net of
advances Rs. 2.78 million
(31.03.2014: Rs. 1.01 million)]
Tangible 4.48 8.62
(b) Other commitments
Commitment towards
investment in companies 783.43 2,609.11
[net of advances Rs. 27,283.80
million (31.03.2014:
Rs. 24,480.11 million)]
Future Export commitments
on account of import of
machinery and equipments at 517.90 517.90
concessional rate of duty
under EPCG scheme
14 Pursuant to Schedule II of the Companies Act, 2013, with effect from
April 1, 2014, the Company has adopted revised useful life of the
assets aligning the same with those specified in Schedule II. The
Company has fully depreciated the carrying value of assets, net of
residual value, where the remaining useful life of the asset was
determined to be Nil as on April 1, 2014 and has adjusted an amount of
Rs. 80.40 million (net of deferred tax of Rs. 35.71 million) from the
opening surplus in the Statement of Profit and Loss under Reserves and
Surplus. Consequent to the change in the useful life of the other
assets, the impact on the depreciation expense for the current year is
higher by Rs. 187.45 million.
15 The Company is awaiting Central Government approval with regard to
excess managerial remuneration paid / payable in the previous year.
16 Advance from Customers include an amount of Rs. 1,000.00 million
from Gayatri Energy Ventures Private Limited (GEVPL), being
consideration of sale of remaining 88,495,576 of equity shares of NCC
Infrastracture Holdings Limited, pursuant to agreement dated February
28, 2014, as amended.
17 During the previous year the Company had received assessment orders
for Income Tax for the financial years 2000-01, 2001-02 and 2003-04 to
2006-07 and refund orders aggregating to Rs. 652.26 million has been
received by the Company. Accordingly, provision of Rs. 362.38 million
towards prior years has been reversed, Rs. 112.81 million has been
recognised as Interest on income tax refunds and Rs. 176.12 million has
been adjusted towards Advance Income Tax.
18 Expenses incurred on Corporate Social Responsibility (CSR) programs
under Section 135 of the Companies Act, 2013 are charged to the
Statement of Profit and Loss under 'Other Expenses' (Note 29) - Rs.
7.98 million and an advance of Rs. 0.60 million has been paid for CSR
related activities.
19 Previous year figures have been regrouped / reclassified wherever
necessary to correspond with the current year classification /
disclosure.
Mar 31, 2014
1 Contingent Liabilities and Commitments
As at March As at March
31st 2014 31st 2013
(i) Contingent Liability
(a) Claims against the Company not acknowledged
as debt
- Disputed sales tax / entry tax liability for
which the Company preferred appeal 499.49 1,144.37
- Disputed central excise duty relating to
clearance of goods of LED division in favour of 5.73 5.73
Developeh of SEZ, for which the Company has filed
an appeal to CESTAT, Bangalore
- Disputed service tax liability for which the
Company preferred appeal 3,249.89 1,116.74
- Disputed Income tax liability for which the 179.81 98.11
Company preferred appeal (Net off Tax Deduction
at Source certificates and interest thereon
submitted to the Tax Authorities)
- Disputed sole arbitrator award in case of - 30.00
counter claim by Bhartiya Reserve Bank Note
Mudran Private Limited, against which the
Company has filed appeal before City Civil
Court, Bangalore
- Otheh 2.86 236.76
- Joint and several liability in respect of Amount not Amount not
joint venture projects and liquidated damages
in respect of delays in completion of projects
ascertainable ascertainable
- Levy of labour cess @ 1% (w.e.f. July 200) Amount not Amount not
on the construction contracts executed by
the Company in the State of Andhra Pradesh ascerta ascerta
contested before the hon''ble high Court of inable inable
Andhra Pradesh
(b) Guarantees
Counter Guarantees and Letter of Credits given
to the Bankeh * 1,558.35 1,429.98
Performance guarantees, given on behalf of 362.50 465.32
Subsidiaries *
Corporate Guarantees given to Banks for
financial assistance extended to Subsidiaries. 11,566.06 13,655.55
* Excludes Guarantees given against Company''s
liabilities, in terms of Guidance Note on
Revised Schedule VI, issued by the Institute of
Chartered Accountants of India. (ii) Commitments
(a) Estimated amount of contracts remaining to be
executed on capital account and not provided for
[net of advances Rs1.01 million
(31.03.2013:h1.01 million)] Tangible 8.62 61.97
(b) Other commitments
Commitment towards investment in companies 2,609.11 4,417.23
[net of advances Rs24,480.11 million
(31.03.2013:Rs21,421.31 million)]
Future Export commitments on account of import
of machinery and equipments at 517.90 517.90
Concessional rate of duty under EPCG scheme
2 Related Party Transactions
i) Following is the list of related parties and relationships:
S.No Particulah
A) Subsidiaries
1 NCC Infrastructure holdings Limited
2 NCC Urban Infrastructure Limited
3 NCC Vizag Urban Infrastructure Limited
4 Nagarjuna Construction Co.Ltd and Partneh LLC
5 OB Infrastructure Limited
6 NCC Infrastructure holdings Mauritius Pte. Limited
7 Nagarjuna Construction Company International LLC
8 Nagarjuna Contracting Co.LLC
9 Patnitop Ropeway and Resorts Limited
10 Western UP Tollway Limited
11 Vaidehi Avenues Limited
12 NCC International Convention Centre Limited
13 NCC Oil & Gas Limited
14 Nagarjuna Construction Company (Kenya) Limited
15 Naftagaz Engineering Private Limited
16 NCC Power Projects (Sompeta) Private Limited*
17 Aster Rail Private Limited
B) Step-Down Subsidiaries
18 Liquidity Limited
19 Dhatri Developeh & Projects Private Limited
20 Sushanti Avenues Private Limited
21 Sushruta Real Estates Private Limited
22 PRG Estates Private Limited
23 Thrilekya Real Estates Private Limited
24 Varma Infrastructure Private Limited
25 Nandyala Real Estates Private Limited
26 Kedarnath Real Estates Private Limited
27 AKhS homes Private Limited
28 JIC homes Private Limited
29 Sushanthi housing Private Limited
30 CSVS Property Developeh Private Limited
31 Vera Avenues Private Limited
32 Sri Raga Nivas Property Developeh Private Limited
33 VSN Property Developeh Private Limited
34 M A Property Developeh Private Limited
35 Vara Infrastructure Private Limited
36 Sri Raga Nivas Ventures Private Limited
37 Mallelavanam Property Developeh Private Limited
38 Sradha Real Estates Private Limited
39 Siripada homes Private Limited
40 NJC Avenues Private Limited
41 NCC Urban Lanka (Private) Limited
42 NCC WLL
43 Al Mubarakia Contracting Company LLC
44 NCCA International Kuwait General Contracts Company LLC
45 Samashti Gas Energy Limited
46 NCC Infra Limited
47 NCC Urban homes Pvt Ltd
48 NCC Urban Ventures Pvt. Ltd
49 NCC Urban Meadows Pvt Ltd
50 NCC Urban Villas Pvt Ltd
51 Nagarjuna Suites Pvt Ltd
C) Joint Ventures
52 Brindavan Infrastructure Company Limited
53 Bangalore Elevated Tollway Limited
54 Pondicherry Tindivanam Tollway Limited
55 Varapradha Real Estates Private Limited
56 NCC - himachal
57 NCC - NEC - Maytas
58 NCC - VEE
S.No Particulah
59 Premco - NCC
60 SDB-NCC-NEC
61 NCC-PNC
62 NCC - SJRIPL
63 NCC - MSKEL
D) Associates
64 Paschal Form Work (I) Private Limited
65 Nagarjuna Facilities Management Services LLC
66 himalayan Green Energy Private Limited
67 Jubilee hills Landmark Projects Private Limited
68 Tellapur Technocity (Mauritius)
69 Tellapur Technocity Private Limited
70 Apollonius Coal and Energy Pte.Ltd.
71 NCC Power Projects Limited
E) Key Management Pehonnel
72 Sri AAV Ranga Raju
73 Sri ASN Raju
74 Sri AGK Raju
75 Sri AVN Raju
76 Sri NR Alluri
77 Sri AKhS Ramaraju
78 Sri JV Ranga Raju
F) Relatives of Key Management Pehonnel
79 Dr AVS Raju
80 Smt. A.Bharathi
81 Smt.B.Kausalya
82 Smt.A.Satyanarayanamma
83 Smt.J.Sridevi
84 Smt. Sowjanya
85 Smt. A.Arundathi
86 Sri. A. Srinivasa Rama Raju
87 Smt. A.Swetha
88 Smt.A. Sridevi
89 Sri. J.K. Chaitanya Varma
90 Smt. A. Subhadra Jyothirmayi
91 Smt. A.Shyama
92 Smt. A.Suguna
93 Sri. A. hahha Varma
94 Smt. A. Neelavathi Devi
G) Enterprises owned or significantly influenced by key management
pehonnel or their relatives
95 NCC Blue Water Products Limited
96 Swetha Estates
97 NCC Finance Limited
98 Sirisha Memorial Charitable Trust
99 Shyamala Agro Farms Private Limited
100 Ranga Agri Impex Private Limited
101 NCC Foundation
102 Sirisha Projects Private Limited
103 Ruthvik Estates Private Limited
104 Narasimha Developeh Private Limited
105 Mihika Agro Farms Private Limited
106 Lalit Agro Farms Private Limited
107 Bhuvanesh Realtoh Private Limited
108 Arnesh Ventures Private Limited
109 Suguna Estates Private Limited
110 AVSR holdings Private Limited
3 The Company''s interest in Jointly Controlled Entities as on March
31,2014 and its proportionate share in the Assets, Liabilities,
Income and Expenditure of the Jointly Controlled Entities as on March
31, 2014 are given below:
4 Segment Reporting
The Company''s operations predominantly consist of construction /
project activities. hence there are no reportable segments under
Accounting Standard  17. During the year under report, substantial
part of the Company''s business has been carried out in India. The
conditions prevailing in India being uniform, no separate geographical
disclosures are considered necessary. The Company''s operations
outside India do not qualify as reportable segments as the operations
are not material.
* The Company has no dilutive instruments during the year ended
Mach 31, 2014. As such Diluted Earnings per share equals to Basic
Earnings per share
5 Leases
(i) Rental expenses of Rs.374.34 million (31.03.2013:
Rs.400.72 million) has been charged to Statement of Profit and Loss
in respect of cancellable operating lease.
(ii) The Company has entered into Operating Lease arrangement for
certain equipments. The lease is non-cancellable for a period of 5
yearfrom March 28, 2013 to March 27, 2018.
(iii) Deductions / Adjustments to include certain assets sold and taken
on operating lease by the company during the previous year
aggregating to Rs.0.15 million. The resultant profit of Rs.0.29
million on such sale has been recognized in Statement of Profit and
Loss. The applicable lease rents, puhuant to the arrangement has
been charged to Statement of Profit and Loss.
6 Remittance in foreign currencies for dividend
The company has not remitted any amount in foreign currencies on
account of dividends. The particulah of dividend paid in Indian
rupees to non resident shareholdeh during the year ended March 31,
2014 are as under:
7 Derivative Instruments
(i) The following derivative positions are open as at March 31, 2014.
These transactions have been undertaken to act as econominc hedges
for the Company''s exposures to various risks in foreign exchange
markets and may / may not qualify or be designated as hedging
instruments. Cross currency Swap Contracts (being derivative
instruments), which are not intended for trading or speculative
purposes but for the hedge purposes to establish the amount of
reporting currency required or available at the settlement date of
certain payables.
8 The Company sold 161,732,648 equity shares of h10 each of NCC
Infrastracture holdings Limited (NCCIhL) to Gayatri Energy Ventures
Private Limited (GEVPL), puhuant to the agreement dated February 26,
2014 at a consideration of Rs.1,827.58 million to GEVPL. Additionally,
the Company has received an advance of Rs.1,000.00 million, being the
consideration of sale of remaining 88,495,576 of equity shares,
puhuant to the agreement dated February 28, 2014.
9 During the current year the Company has received assessment
ordeh for Income Tax for the financial yeah 2000-01, 2001-02 and
2003-04 to 2006-07 and refund ordeh aggregating to Rs.652.26 million
has been received by the Company. Accordingly, provision of Rs.362.38
million towards prior year has been revehed, Rs.112.81 has been
recognised as Interest on income tax refunds and Rs.176.12 million has
been adjusted towards Advance Income Tax.
10 The Shareholdeh of the Company approved the remuneration paid
/ payable to its Directoh. Owing to inadequate profits for the
current year, as computed under Section 349 of Companies Act, 1956,
the managerial remuneration paid / payable exceeded the limits
specified under Section 198 read with Section 309 of the Companies
Act, 1956 by Rs.54.43 million. The Company is in the process of
obtaining the requisite approval from the Shareholdeh and the
Central Government.
11 Previous year figures have been regrouped / reclassified wherever
necessary to correspond with the current year classification /
disclosure.
Mar 31, 2013
1.1 Defined contribution plans
The Company made Provident Fund and Superannuation Fund contributions
to defined contribution plans for qualifying employees. Under the
Schemes'' the Company is required to contribute a specified percentage
of the payroll costs to fund the benefits. The Company recognised Rs.
133.23 million (31.03.2012: Rs. 131.68 million) for Provident Fund
contributions and Rs. 39.29 million (31.03.2012: Rs. 35.85 million) for
Superannuation Fund contributions in the Statement of Profit and Loss.
The contributions payable to these plans by the Company are at rates
specified in the rules of the schemes.
2 Segment Reporting
The Company''s operations predominantly consist of construction /
project activities. Hence there are no reportable segments under
Accounting Standard -17. During the year under report'' substantial part
of the Company''s business has been carried out in India. The conditions
prevailing in India being uniform'' no separate geographical disclosures
are considered necessary. The Company''s operations outside India do
not qualify as reportable segments as the operations are not material.
3 Leases
(i) Rental expenses of Rs. 400.72 million (31.03.2012: Rs. 439.72 million)
has been charged to Statement of Profit and Loss in respect of
cancellable operating lease.
(ii) The Company has entered into Operating Lease arrangement for
certain equipments. The lease is non-cancellable for a period of 5
years from March 28'' 2013 to March 27'' 2018.
(iii) Deductions/Adjustments to include certain assets sold and taken
on operating lease by the company during the current year aggregating
to Rs. 557.15 million. The resultant profit of Rs. 0.29 million on such
sale has been recognized in Statement of Profit and Loss. The
applicable lease rents'' pursuant to the arrangement has been charged to
Statement of Profit and Loss.
4 Derivative Instruments
(i) The following derivative positions are open as at March 31'' 2013.
These transactions have been undertaken to act as econominc hedges for
the Company''s exposures to various risks in foreign exchange markets
and may/ may not qualify or be designated as hedging instruments. Cross
currency Swap Contracts (being derivative instruments)'' which are not
intended for trading or speculative purposes but for the hedge purposes
to establish the amount of reporting currency required or available at
the settlement date of certain payables.
5 Previous year figures have been regrouped / reclassified wherever
necessary to correspond with the current year classification/
disclosure.
Mar 31, 2012
1 CORPORATE INFORMATION:
NCC Limited, formerly Nagarjuna Construction Company Limited ("NCCL", /
"the Company") was established as a Partnership firm in 1978, which was
subsequently converted into a limited company in 1990. The shares of
the Company, are listed on the stock exchanges in India, in 1992
pursuant to Public offer of equity shares. The Company is engaged in
the infrastructure sector, primarily in the construction of industrial
and commercial buildings, roads, bridges and flyovers, water supply and
environment projects, housing, power transmission lines, irrigation and
hydrothermal power projects, real estate development, etc.
2.1 Details of Allotment of bonus shares during 5 years immediately
preceding the Balance Sheet
The Company has allotted 103,368,530 Equity Shares of Rs. 2/- each in
2006-07 as fully paid up bonus shares in the ratio of 1:1 by
capitalising Rs. 206.74 million from General Reserve.
2.2 Unclaimed equity shares of 97,265 are held in "NCC Limited -
Unclaimed suspense account" in trust.
2.3 Rights of the share holders
a) The equity shares of the company having par value of Rs. 2/- per
share, rank pari passu in all respects including voting rights and
entitlement to dividend. Repayment of the capital in the event of
winding up of the Company will inter alia be subject to the provisions
of Companies Act 1956, the Articles of Association of the Company and
as may be determined by the Company in General Meeting prior to such
winding up.
b) 75,750 (31.3.2011: 52,750) equity shares represents the shares
underlying outstanding Global Depositary Receipts (GDRs). Each GDRs
represents 1 underlying equity shares having par value of Rs. 2/-. The
GDRs, rank pari passu in all respects with the equity shares issued by
the Company except in respect of voting rights.
3.1 11.95% Redeemable Non Convertible Debentures
(i) Debentures numbering to 1,000 having a face value of Rs. 1 million
each aggregating to Rs. 1,000 million privately placed with Life
Insurance Corporation of India on February 4th, 2009. These are secured
by first charge created in favour of IDBI Trusteeship Services Limited,
trustees to the debenture holders:
- by way of hypothecation of the Company's movable properties specified
in the Schedule-2 of Memorandum of Hypothecation dated April 25, 2009;
- first charge by way of equitable mortgage by deposit of title deeds
of the Company's immovable property situated at Gujarat as specified in
first schedule to the Debenture Trust Deed dated April 23, 2009;
- equitable mortgage by deposit of title deeds of Company's immovable
properties situated at Hyderabad, Bangalore, Mumbai and New Delhi as
specified in Schedule-Aof Declaration and Undertaking dated April 25,
2009.
- These debentures are to be redeemed at par in 3 installments in the
ratio of 25:25:50 commencing at the end of 3rd year from the date of
allotment i.e., 4th February, 2012 onwards.
(ii) These debentures are to be redeemed at par in 3 installments in
the ratio of 25:25:50 commencing at the end of 3rd year from the date
of allotment i.e., February 4, 2012 onwards.
3.2 10.50% Redeemable Non Convertible Debentures
(i) Debentures numbering to 1,000 having a face value ofRs. 1 million
each comprising often (10) Detachable and Separately Transferable,
Redeemable Principal Parts ("STRPPS") aggregating to Rs. 1,000 million
privately placed during 2009-10 with various banks and financial
institutions. These are secured by first charge created in favour of
IDBI Trusteeship Services Limited, trustees to the debenture holders,
by way of equitable mortgage of the title deeds in respect of the
company's immovable property situated at Kadi Taluka, Mehasana
district, Gujarat as specified in the first schedule to the Debenture
Trust Deed dated September 15, 2009 and by way of equitable mortgage by
deposit of title deeds of the immovable properties of the Company and
its subsidiary and its step-down subsidiaries, situated at Hyderabad as
specified in Schedule-Ato I of Declaration and Undertaking dated
October 12, 2009.
(ii) These debentures are to be redeemed at par in 3 installments in
the ratio of 30:30:40 commencing at the end of 3rd year from the date
of allotment i.e., July 24, 2012 onwards.
3.3 9.50 % Unsecured Redeemable Non-Convertible Debentures
(i) Debentures numbering to 500 having face value of Rs. 4 million each
comprising of four (4) Detachable and Separately Transferable
Redeemable principal parts ("STRPPS") of face value of Rs. 1 million each
aggregating to Rs. 2,000 million privately placed with ICICI Bank
Limited.
(ii) These Debentures are to be redeemed at par in four equated
installments commencing at the end of second year from the date of
allotment i.e. August 11, 2012 onwards.
3.4 Term Loans from Banks
(i) ICICI Bank
Loan availed of Rs. 20 million (31.03.2011:Rs. 20 million), No. of
Installments outstanding 104 (31.03.2011:116)
Secured by hypothecation of asset purchased out of the loan i.e.
building purchased with the loan.
Rate of Interest -12% per annum, Repayable in 120 monthly installments,
commencing from February 2011.
(ii) HDFC Bank
(a) Loan I
- Loan availed of Rs.15.88 million (31.03.2011: Rs.15.88 million)
- Secured by hypothecation of specific assets purchased out of the
loan, comprising Plant and Machinery
- Duration March 20, 2010 to January 20, 2014, No. of Installments
outstanding 22 (31.03.2011: 34)
- Rate of Interest 8.61 % Per Annum. Repayable in 47 Monthly
Installments
(b) Loan II
- Loan availed ofRs. 185.61 million (31.03.2011:Rs. 185.61 million)
- Secured by exclusive first charge on the machinery purchased out of
term loan
- Personal guarantee of MrAGKRaju
- Duration March 10, 2009 to December 10, 2011, No. of Installments
outstanding Nil (31.03.2011: 3)
- Rate of Interest 9.75% (Interest reset after every year)
- Repayable in 12 equal quarterly installments starting from the end of
9 months from date of first disbursement
(iii) IDBI Bank
Two Loans availed by the company amounting to Rs. 499.53 million
(31.03.2011: Rs. 499.53 million)
Secured by hypothecation of specific assets purchased out of loan,
comprising Plant and machinery Personal Guarantee of Mr.AAV Ranga Raju
and Mr AGK Raju Duration September 29,2007 to May 18, 2012
- No. of Installments outstanding: Loan I - Nil (31.03.2011: 4), Loan 2
- 2 (31.03.2011:14)
Rate of Interest 9.35% & 11.75% (Interest reset annually starting from
date of disbursement)
Repayable in 48 equal monthly installments after initial moratorium
period of one year from date of first disbursement.
(iv) State Bank of India
Loan availed of Rs. 200.00 Million
Secured by hypothecation of specific assets purchased out of the loan
Duration March 31, 2009 to June 30, 2011, No. of Installments
outstanding Nil (31.03.2011:1)
Rate of interest 12.25% per annum, Repayable in 10 equal quarterly
monthly installments after initial moratorium period of one year from
the date of first disbursement
(v) Standard Chartered Bank
Four loans availed by the Company aggregating toRs. 352.04 million
(31.03.2011:Rs. 352.04 million)
Secured by hypothecation of specific assets, comprising Plant and
Machinery
Duration November 29,2010 to October 11, 2013, No. of Installments
outstanding for all Loans 7 (31.03.2011:11)
Rate of Interest ranges from 7.40% to 7.90 %, Repayable in 12 Quarterly
installments.
(vi) Indus Ind Bank Ltd
- Seven loans (31.03.2011: Six loans) availed by the company
aggregating to Rs. 640.89 million (31.03.2011: Rs. 350.00 million)
- Secured by hypothecation of specific assets purchased out of the loan
comprising Plant and Machinery.
- Duration January 31, 2010 to January 31, 2016.
- No. of Installments outstanding: Loan 1 - No. of Installments
Outstanding 15 (31.03.2011: 27), Loan 2 - No. of Installments
Outstanding 25 (31.03.2011: 37), Loan 3 - No. of Installments
Outstanding 30 (31.03.2011: 42), Loan 4 - No. of Installments
Outstanding 40 (31.03.2011: Nil), Loan 5&6 - No. of Installments
Outstanding 42 (31.03.2011: Nil), Loan 7 - No. of Installments
Outstanding 1 (31.03.2011: Nil), Rate of Interest ranges from 9.50% to
12.00 %, Repayable in 42 Monthly installments.
3.5 Term Loans from Others Parties:-
(i) SREI Equipment Finance Private Limited
Seven loans (31.03.2011: Six loans) by the Company aggregating to Rs.
1053.59 million (31.03.2011:Rs. 1021.35 million )
- Secured by hypothecation of specific assets purchased out of loan,
comprising Plant and Machinery and Construction equipment
Duration March 8, 2009 to October 22, 2013
- No. of Installments Outstanding: Loan 1 & 2 - No. of Installments
Outstanding 10 (31.03.2011: 22), Loan 3 & 4 - No. of Installments
Outstanding 15 (31.03.2011: 27), Loan 5 - No. of Installments
Outstanding 26 (31.03.2011: 38), Loan 6 - No. of Installments
Outstanding 27 (31.03.2011: 39), Loan 7 - No. of Installments
Outstanding 34 (31.03.2011: Nil)
- Rate of Interest is based on SREI benchmark rate (SBR), the rate will
be reset at the beginning of the succeeding calendar month of the date
when change in the SBR takes place and accordingly, the installments
falling due in the subsequent months will be reworked.
(ii) L&T Finance Limited
(a) Loan I
Finance Amount Rs. 0.86 million (31.03.2011: Rs. 0.86 million )
Secured by hypothecation of specific assets purchased out of the loan,
comprising Plant and Machinery and
Construction equipment.
Duration June 21, 2009 to April 21, 2012, No. of Installments
Outstanding 1 (31.03.2011:13)
Rate of interest 13.35% per annum.
Repayable in 35 monthly installments after initial moratorium period of
one month from date of first disbursement.
(b) Loan II
Finance Amount Rs. 33.58 million (31.03.2011: Rs. 33.58 million)
Secured by hypothecation of specific assets purchased out of the loan,
comprising Plant and Machinery and
Construction equipment.
Duration May 16, 2009 to January 16, 2013, No. of Installments
Outstanding 10 (31.03.2011: 22)
Rate of interest 13.35% per annum. Repayable in 45 monthly installments
after initial moratorium period of three months from the date of first
disbursement.
3.6 Vehicle Loans
Vehicle loans are secured by hypothecation of the vehicles financed
through the loan arrangements. Such loans are repayable in equal
monthly installments over a period of 3 years and carry interest rate
ranging between 7.68% to 11.52% per annum.
4.1 Defined benefit plans
(i) Liability for retiring gratuity as on March 31, 2012 isRs. 93.20
million (31.03.2011:Rs. 78.79 million) of whichRs. 41.77 million
(31.03.2011: Rs. 28.04 million) is funded with the Life Insurance
Corporation of India. The balance of Rs. 51.43 million (31.03.2011:Rs.
50.75 million) is included in Provision for Gratuity. The Liability for
Gratuity and Cost of Compensated absences has been actuarially
determined and provided for in the books.
(ii) Details of the company's post-retirement gratuity plans for its
employees including whole-time directors are given below, which is
certified by the actuary and relied upon by the auditors.
(iii) In accordance with the payment of Gratuity Act, 1972 the company
provides for gratuity covering eligible employees. The liability on
account of gratuity is covered partially through a recognized Gratuity
Fund managed by Life Insurance Corporation of India and balance is
provided on the basis of valuation of the liability by an independent
actuary as at the year end. The management understands that LIC's
overall portfolio of assets is well diversified and as such, the long
term return on the policy is expected to be higher than the rate of
return on Central Government bonds.
5.1 Working Capital Demand Loans and Cash Credit facilities availed
from consortium of banks are secured by:
a) Hypothecation against first charge on stocks, book debts and other
current assets of the Company,(excluding specific projects) both
present and future, ranking parri passu with consortium banks
b) Hypothecation against first charge on unencumbered fixed assets of
the Project Division and Light Engineering Division(excluding Land &
Buildings) of the Company ranking parri passu with consortium banks.
c) Equitable mortgage of three properties (Land & Buildings).
5.2 Working Capital Demand Loan in foreign currency is secured
either/and or as:
Exclusive First hypothecation charge of project assets pertaining to
the Al Amerat Quriyat road project.
5.3 Short term loans from Banks:
The company availed shortterm loans from various banks during the year
having a maturity of less than one year and carry interest rate ranging
between 11 % to 12.5% per annum.
5.4 Commercial paper represents Rs. 500.00 million (31.03.2011: Rs. 400.00
million) due within one year. The maximum amount of Commercial paper
outstanding at anytime during the year was Rs. 2,300.00 million
(31.03.2011: Rs. 1,500.00 million).
6.1 Of these 36,000,000 (31.03.2011: 36,600,000) equity shares
aggregating Rs. 360.00 million (31.03.2011:Rs. 360.00 million) have been
pledged to Bank of India for the term loan availed by NCC Urban
Infrastructure Limited. Further shares to the extent of 83,400,000
(31.03.2011: 83,400,000) aggregating in value toRs. 834.00 million
(31.03.2011: Rs. 834 million) are subject to non- disposal undertaking
furnished and under lien with the bank.
6.2 The shares are subject to non-disposal undertaking furnished in
favour of consortium of bankers for term loans availed by OB
Infrastructure Limited
6.3 Of these 2,652 (31.03.2011: 2,652) equity shares aggregating in
value toRs. 0.02 million (31.03.2011: Rs. 0.02 million) have been pledged
with Axis Bank and 748 (31.03.2011: 748) equity shares aggregating in
value to Rs. 0.01 million (31.03.2011: Rs. 0.01 million) have been pledged
with IDBI Trustee Ship Services Limited for the term loan availed by
Himachal Sorang Power Limited.
6.4 Of these 224,600 (31.03.2011: 224,600) equity shares aggregating
in value to Rs. 2.25 million (31.03.2011: Rs. 2.25 million) have been
pledged to the consortium of bankers for the term loan availed by
Western UP Tollway Limited.
6.7 Of these 45,000 (31.03.2011: 45,000) equity shares are held by the
joint venture partner under trust for NCC Limited.
6.8 Of these 153 (31.03.2011: 153) equity shares are held by the joint
venture partner under trust for NCC Limited.
6.9 Of these 5,624,725 (31.03.2011:7,499,725) equity shares
aggregating Rs. 56.25 million (31.03.2011: Rs. 74.99 million) have been
pledged in favor of Infrastructure Development Finance Company Limited
for the term loan availed by Brindavan Infrastructure Company Limited
6.10 Of these 40,800 (31.03.2011: 40,800) equity shares aggregating in
value to Rs. 0.4 million (31.03.2011: Rs. 0.4 million) have been pledged to
the consortium of bankers for the term loan availed by Bangalore
Elevated Tollway Limited.
6.11 Of these 535,823 (31.03.2011: 95,696) equity shares aggregating
in value to Rs. 53.58 million (31.03.2011: Rs. 9.57 million) have been
pledged to IDBI Trustee Ship Services Limited and 83,416 (31.03.2011:
83,416) equity shares aggregating to Rs. 5.73 million (31.03.2011: Rs. 5.73
million) have been pledged to Axis Bank for the term loan availed by
Pondichery Tindivanam Tollway Limited.
6.12 During the current year, pursuant to the approval of the Board of
Directors of the Company, the entire equity shares held by the Company
in NCC Power Projects Limited is transferred to NCC Infrastructure
Holdings Limited, as a part of group restructuring.
6.13 During the current year, pursuant to a Scheme of Arrangement and
Amalgamation comprising of various SNP Group of companies, approved by
the Hon'ble High Court of Andhra Pradesh, additional equity shares have
been allotted in certain companies as consideration for transfer of the
equity shares held in certain other companies of the SNP Group.
6.14 Pursuant to the Scheme of Amalgamation, approved by the Hon'ble
High Court of Andhra Pradesh, the business of Paschal Technology
(India) Private Limited has been transferred to Paschal Form Work
(India) Private Limited. The Company was allotted 182,000 equity shares
of Rs. 10 each in Paschal Form work (India) Private Limited, against the
shareholding of the company in Paschal Technology (India) Private
Limited during the year.
6.15 During the current year, pursuant to the Buy back scheme offering
by Brindavan Infrastructure Company Limited, the Company has
surrendered 1,600,000 equity shares, in consideration of Rs. 18 per
share. The resultant gain on such surrender of the shares, has been
recognised in the Statement of Profit and Loss.
6.16 During the current year, Tellapur Tech Park Private Limited and
Tellapur Town Centre Private Limited, have opted for filing application
under 'Easy Exit Scheme 2011' since there were no operations carried
out in the respective companies and for dissolution of the company
under the Companies Act, 1956. The investments made in such companies
have been considered as Loss of Disposal of investments and charged to
the Statement of Profit and Loss.
7.1 Property development cost Rs.16.55 million (31.03.2011: Rs. 16.55
million) representing the cost of acquisition of land from a land
owner, for which the Company holds General Power of Attorney to deal
with such land including registration of the sale in the name of the
Company.
8.1 Cash on hand includes Rs. 0.55 million (31.03.2011: Rs. 0.61 million)
held in foreign currency.
8.2 Current account balance includes Rs. 6.08 million (31.03.2011:Rs.
10.16 million) remittance in transit
8.3 Margin Money Deposits have been lodged with Banks against
Guarantees / letters of credit issued by them.
8.4 Balances meet the definition of "Cash and Cash Equivalents" as per
AS - 3 'Cash Flow Statements'.
9.1 Secured by equitable mortgage of immovable properties of a body
corporate
9.2 Advances to Suppliers, Sub-contractors and others, include Rs.
2,737.48 million (31.03.2011: Rs. 2,256.50 million) representing amounts
withheld by contractees and includes advance to subsidiaries and
associates Rs. 257.76 million (31.03.2011: Rs. 214.13 million); Jointly
Controlled Entities Rs. 0.05 million(31.03.2011:Rs. 0.17 million)
10.1 Defined contribution plans
The Company made Provident Fund and Superannuation Fund contributions
to defined contribution plans for qualifying employees. Under the
Schemes, the Company is required to contribute a specified percentage
of the payroll costs to fund the benefits. The Company recognised
Rs.131.68 million (31.03.2011: Rs. 113.94 million) for Provident Fund
contributions and Rs. 35.85 million (31.03.2011: Rs. 29.88 million) for
Superannuation Fund contributions in the Statement of Profit and Loss.
The contributions payable to these plans by the Company are at rates
specified in the rules of the schemes.
11 CONTINGENT LIABILITIES AND COMMITMENTS
(i) Contingent Liability (Rs.in million)
As at As at
March 31,2012 March 31, 2011
(a) Claims against the company
not acknowledged as debt
- Disputed sales tax liability
for which the Company preferred appeal 687.18 315.01
- Disputed central excise duty
relating to cement plant, which
was sold in earlier year, for which
the Company has filed an appeal to
CESTAT, Bangalore - 29.73
- Disputed central excise duty
relating to clearance of goods
of LED division in favour of
Developers of SEZ, for which
the Company has filed an appeal to
CESTAT, Bangalore 1.17 1.17
- Disputed service tax liability
for which the Company preferred appeal 405.77 318.22
- Disputed sole arbitrator award in
case of counter claim by Bhartiya
Reserve Bank Note Mudran Private
Limited, against which the Company
hasfiled appeal before City Civil
Court, Bangalore 30.00 30.00
- Others 9.78 3.63
- Joint and several liability in
respect of joint venture projects
and liquidated Amount not Amount not
damages in respect of delays in
completion of projects ascertainable ascertainable
- Levy of labour cess @ 1 %
(w.e.f. July 2007) on the
construction contracts Amount not Amount not
executed by the Company in the
State of Andhra Pradesh
contested before ascertainable ascertainable
the Hon'ble High Court of
Andhra Pradesh
(b) Guarantees
Counter Guarantees given to the Bankers * 669.63 180.00
Performance guarantees, given on
behalf of Subsidiaries * 349.09 341.69
Corporate Guarantees given to Banks
and Financial institutions for
financial assistance extended
to Subsidiaries. 14,649.60 15,286.62
*Excludes Guarantees given against
Company's liabilities, in terms of
Guidance Note on Revised Schedule
VI, issued by the Institute of
Chartered Accountants of India.
(ii) Commitments
(a) Estimated amount of contracts
remaining to be executed on capital
account and not provided for
[net of advances Rs. 56.62 million
(31.03.2011: Rs. 66.42 million)]
Tangible 132.53 67.30
Intangible 2.18 4.87
(b) Other commitments
Commitment towards investment in companies 3,420.66 12,206.87
[net of advances Rs. 21,646.45 million
(31.03.2011: Rs. 17,909.87 million)]
Future Export commitments on account
of import of machinery and equipments
at concessional rate of duty under
EPCG scheme 517.90 517.90
12 SEGMENT REPORTING
The Company's operations predominantly consist of construction /
project activities. Hence there are no reportable segments under
Accounting Standard - 17. During the year under report, substantial
part of the Company's business has been carried out in India. The
conditions prevailing in India being uniform, no separate geographical
disclosures are considered necessary. The Company's operations outside
India do not qualify as reportable segments as the operations are not
material.
13 LEASES
Rental expenses of Rs. 439.73 million (31.03.2011: Rs. 265.90 million) has
been charged to Statement of Profit and Loss in respect of cancellable
operating lease.
14 The revised Schedule VI has become effective from April 1, 2011 for
the preparation of Financial Statements. This has significantly
impacted the disclosure and presentation made in the Financial
Statements. Previous year figures have been regrouped / reclassified
wherever necessary to correspond with the current year classification /
disclosure.
Mar 31, 2011
1. Contingent liabilities not provided for:
a) Letters of credit - Rs. 1,674.00 million (31-03-2010: Rs. 1,605.34
million).
b) Counter Guarantees given to the Bankers à Rs. 23,719.43 million
(31-03-2010: Rs. 20,216.47 million).
c) Performance guarantees, given on behalf of Subsidiaries and
Associates Rs. 39.66 million (31-03-2010: Rs. 39.66 million).
d) Corporate Guarantees given to Banks and Financial institutions for
financial assistance extended to Subsidiaries, Associates and Joint
Ventures Rs. 15,286.62 million (31-03-2010: Rs. 16,911.20 million).
e) Disputed income tax liability for which the Company preferred appeal
Rs. Nil (31-03-2010: Rs. 73.38 million).
f) Disputed sales tax liability for which the Company preferred appeal
Rs. 315.01 million (31-03-2010: Rs. 134.85 million).
g) Disputed central excise duty relating to cement plant, which was
sold in earlier year, for which the Company has filed an appeal to
CESTAT, Bangalore Rs. 29.73 million (31-03-2010: Rs. 29.73 million)
h) Disputed central excise duty relating to clearance of goods of LED
division in favour of Developers of SEZ, for which the Company has
filed an appeal to CESTAT, Bangalore Rs. 1.17 million (31-03-2010: Rs. 1.17
million).
i) Disputed service tax liability for which the Company preferred
appeal Rs. 318.22 million (31-03-2010: Rs. 297.99 million)
j) Disputed sole arbitrator award of Rs. 30.00 million in case of counter
claim by Bhartiya Reserve Bank Note Mudran Private Limited, against
which the Company has filed appeal before City Civil Court, Bangalore.
(31-03-2010: Rs. 30.00 million)
k) Claims against the Company not acknowledged as debts Rs. 3.63 million
(31-03-2010: Rs. 3.63 million).
l) Joint and several liability in respect of joint venture projects and
liquidated damages in respect of delays in completion of projects Ã
amount not ascertainable.
m) Levy of labour cess @ 1% (w.e.f. July 2007) on the construction
contracts executed by the Company in the State of Andhra Pradesh
contested before the Honble High Court of Andhra Pradesh - amount not
ascertainable.
n) Future Export commitments on account of import of machinery and
equipments at concessional rate of duty under EPCG scheme is Rs. 517.90
million (31-3-2010: Rs. 534.05 million).
3. Loan Funds
A. Secured Loans
a) 11.95% Redeemable Non Convertible Debentures:
i) 11.95% Redeemable Non Convertible Debentures numbering to 1,000
having a face value of Rs. 1 million each aggregating to Rs. 1,000 million
privately placed with Life Insurance Corporation of India are secured
by first charge in favour of IDBI Trusteeship Services Limited,
trustees to the debenture holders:
a) by way of hypothecation of the Companys movable properties
specified in the Schedule-2 of Memorandum of Hypothecation dated 25th
April, 2009;
b) first charge by way of equitable mortgage by deposit of title deeds
of the Companys immovable property situated at Gujarat as specified in
first schedule to the Debenture Trust Deed dated 23rd April, 2009;
c) equitable mortgage by deposit of title deeds of Companys immovable
properties situated at Hyderabad, Bangalore, Mumbai and New Delhi as
specified in Schedule-A of Declaration and Undertaking dated 25th
April, 2009.
ii) These debentures numbering to 1,000 having a face value of Rs. 1
million each aggregating to Rs. 1,000 million are to be redeemed at par
in 3 instalments in the ratio of 25:25:50 commencing at the end of 3rd
year from the date of allotment i.e., 4th February, 2012 onwards.
b) 10.50% Redeemable Non Convertible Debenture:
i) 10.50% Redeemable Non Convertible Debentures numbering to 1,000
having a face value of Rs. 1 million each comprising of 10 Detachable and
Separately Transferable, Redeemable Principle Parts ("STRPPS")
aggregating to Rs. 1,000 million privately placed during the year with
various banks & financial institution are secured by first charge in
favour of IDBI Trusteeship Services Limited, trustees to the debenture
holders, by way of equitable mortgage of the title deeds in respect of
the companys immovable property situated at Kadi taluka, Mehasana
district, Gujarat as specified in the first schedule to the Debenture
Trust Deed dated 15th September, 2009 and by way of equitable mortgage
by deposit of title deeds of the immovable properties of the Company
and its subsidiary and its step-down subsidiaries, situated at
Hyderabad as specified in Schedule-A to I of Declaration and
Undertaking dated 12th October, 2009.
ii) These debentures numbering to 1,000 having a face value of Rs. 1
million each comprising of 10 STRPPS aggregating to Rs. 1,000 million are
to be redeemed at par in 3 instalments in the ratio of 30:30:40
commencing at the end of 3rd year from the date of allotment i.e., 24th
July, 2012 onwards.
c) The company has created debenture redemption reserve for both the
above redeemable non-convertible debentures.
d) Term Loans
Term Loans availed from banks and others are secured by hypothecation
of specific assets, comprising plant and machinery and construction
equipment, acquired out of the said loans and personal guarantee of a
Director.
e) Working Capital Facilities: Cash Credit facilities and Working
Capital Demand Loans from consortium of banks are secured by:
i) Hypothecation against first charge on stocks, book debts and other
current assets of the Company, both present and future, ranking parri
passu with consortium banks
ii) Hypothecation against first charge on all unencumbered fixed assets
of the Project Division and Light Engineering Division of the Company
both present and future ranking parri passu with consortium banks.
iii) Equitable mortgage of three properties (Land & Buildings).
iv) Personal guarantee of certain Directors.
v) Working Capital Demand Loan in foreign currency is secured
either/and or as:
à Exclusive First hypothecation charge of project assets pertaining to
the Al Amerat Quriyat road project.
f) Vehicle Loans: Vehicle loans availed are secured by hypothecation of
vehicles acquired out of the said loans.
B. Unsecured Loan
a) Commercial Paper: Commercial paper represents Rs. 400 million
(31.03.2010: Rs. 1,500 million) due within one year. The maximum amount
of Commercial paper outstanding at any time during the year was Rs. 1,500
million (31.03.2010: Rs. 1,500 million).
b) 9.50 % Unsecured Redeemable Non-Convertible Debentures:
i) 9.50 % Unsecured Redeemable Non-Convertible Debentures numbering to
500 having face value of Rs. 4 million each comprising of four (4)
Detachable and Separately Transferable Redeemable principal parts
("STRPPS") of face value of Rs. 1 million each aggregating to Rs. 2,000
million privately placed during the year with ICICI Bank and Trust
Investment Advisors Private Limited.
ii) These Debentures numbering to 500 having a face value of Rs. 4
Million each comprising of four (4) STRPPS aggregating to Rs. 2,000
Million are to be redeemed at par in four equated instalments
commencing at the end of second year from the date of allotment i.e
11th August, 2012 onwards.
iii) The company has created debenture redemption reserve for the above
redeemable non-convertible debentures.
4. Inventories
Property Development Cost
Property Development Cost includes Rs. 16.55 million (31-3-2010: Rs. 16.55
million) representing the cost of acquisition of land from a land
owner, for which the Company holds General Power of Attorney to deal
with such land including registration of the sale in the name of the
Company.
5. Cash and Bank balances
a) Cash on hand includes Rs. 0.61 million (31.03.2010: Rs. 0.24 million)
held in foreign currency.
7. Loans and Advances à Advances to Suppliers, SubÃcontractors and
others, include Rs. 2,256.50 million (31-3-2010: Rs. 1,431.79 million)
representing amounts withheld by contractees.
8. Micro, Small and Medium Enterprises under the Micro, Small and
Medium Enterprises Development Act, 2006 have been determined based on
the information available with the company and the required disclosures
are given below:
9. Employee Benefits
a) Liability for retiring gratuity as on March 31, 2011 is Rs. 78.79
million (31-3-2010: Rs. 48.72 million) of which Rs. 28.04 million
(31-3-2010: Rs. 18.45 million) is funded with the Life Insurance
Corporation of India. The balance of Rs. 50.75 million (31-3-2010: Rs.
30.27 million) is included in Provision for Gratuity. The Liability for
Gratuity and Cost of Compensated absences has been actuarially
determined and provided for in the books.
b) Details of the companys post-retirement gratuity plans for its
employees including whole time directors are given below, which is
certified by the actuary and relied upon by the auditors The liability
on account of gratuity is covered partially through a recognized
Gratuity Fund managed by Life Insurance Corporation of India and
balance is provided on the basis of valuation of the liability by an
independent actuary as at the year end. The management understands that
LICs overall portfolio of assets is well diversified and as such, the
long term return on the policy is expected to be higher than the rate
of return on Central Government bonds.
a) Discount Rate:
The discount rate is based on the prevailing market yields of Indian
government securities as at the balance sheet date for the estimated
term of the obligations.
b) Expected Rate of Return on Plan Assets:
This is based on our expectation of the average long term rate of
return expected on investments of the Fund during the estimated term of
the obligations.
c) Salary Escalation Rate:
The estimates of future salary increases considered takes into account
the inflation, seniority, promotion and other relevant factors.
11. Related Party Transactions
Following is the list of related parties and relationships:
Sl.
no. Particulars
A) Subsidiaries
1) NCC Infrastructure Holdings Limited
2) NCC Urban Infrastructure Limited
3) NCC Vizag Urban Infrastructure Limited
4) Nagarjuna Construction Co.Ltd and Partners LLC
5) OB Infrastructure Limited
6) NCC Infrastructure Holdings Mauritius Pte. Limited
7) Nagarjuna Construction Co. International LLC
8) Nagarjuna Contracting Co.LLC
9) Patnitop Ropeway and Resorts Limited
10) Naftogaz Engineering Private Limited
11) NCC International Convention Centre Limited
12) NCC Oil & Gas Limited
B) Step-down Subsidiaries
13) Liquidity Limited
14) Dhatri Developers & Projects Private Limited
15) Sushanti Avenues Private Limited
16) Sushruta Real Estates Private Limited
17) PRG Estates Private Limited
18) Thrilekya Real Estates Private Limited
19) Varma Infrastructure Private Limited
20) Nandyala Real Estates Private Limited
21) Kedarnath Real Estates Private Limited
22) AKHS Homes Private Limited
23) JIC Homes Private Limited
24) Sushanthi Housing Private Limited
25) CSVS Property Developers Private Limited
26) Vera Avenues Private Limited
27) Sri Raga Nivas Property Developers Private Limited
28) VSN Property Developers Private Limited
29) M A Property Developers Private Limited
30) Vara Infrastructure Private Limited
31) Sri Raga Nivas Ventures Private Limited
32) Mallelavanam Property Developers Private Limited
33) Sradha Real Estates Private Limited
34) Siripada Homes Private Limited
35) NJC Avenues Private Limited
36) NCC Urban Lanka (Private) Limited.
37) Himachal Sorang Power Limited
38) Al Mubarakia Contracting Company LLC
39) Nelcast Enegry Corporation Limited
40) Samashti Gas Energy Limited
41) NCC Power Projects Limited*
42) Western UP Tollway Limited*
C) Joint Ventures
43) Brindavan Infrastructure Company Limited
44) Bangalore Elevated Tollway Limited
45) Pondicherry Tindivanam Tollway Limited
46) Premco à NCC
47) NCC Ã MAYTAS
48) SDB Ã NCC Ã NEC
49) NCC Ã PNC
50) NCC Ã SJRIPL
51) Himachal JV
52) NCC Ã KNR
53) NCC Ã NEC Ã Maytas
54) NCC Ã VEE
55) NCC Ã MSKEL
56) NG Ã NCC
D) Associates
57) Paschal Form Work (I) Private Limited
58) Paschal Technology (I) Private Limited
59) Nagarjuna Facilities Management Services LLC
60) Himalayan Green Energy Private Limited
61) Jubilee Hills Landmark Projects Limited
62) Varaprada Real Estates Private Limited
63) Machilipatnam Port Limited
64) Tellapur Technocity (Mauritius)
65) Tellapur Technocity Private Limited
66) Tellapur Town Centre Private Limited
67) Tellapur Tech Park Private Limited
68) Gulbarga Airport Developers Private Limited
69) Shimoga Airport Developers Private Limited
E) Key Management Personnel
70) Dr AVS Raju
71) Sri AAV Ranga Raju
72) Sri NR Alluri
73) Sri JV Ranga Raju
74) Sri AGK Raju
75) Sri ASN Raju
76) Sri RN Raju
77) Sri AVN Raju
F) Relatives of Key Management Personnel
78) Smt. A.Neelavathi
79) Smt. A.Bharathi
80) Smt.B.Kausalya
81) Smt.A.Satyanarayanamma
82) Smt.J.Sridevi
83) Smt. Sowjanya
84) Smt. A.Arundathi
G) Enterprises owned or significantly influenced by key management
personnel or their relatives
85) NCC Blue Water Products Limited
86) Swetha Estates
87) R.R.V. Infra Limited
88) NCC Finance Limited
89) Swetha Capital Private Limited
90) Sirisha Memorial Charitable Trust
91) Shyamala Agro Farms Private Limited
92) Ranga Agri Impex Private Limited
93) NCC Foundation
94) Suryakumari Abraham Memorial Foundation
95) Sirisha Projects Private Limited
13. Segment Reporting: The Companys operations predominantly consist
of construction / project activities. Hence there are no reportable
segments under Accounting Standard à 17. During the year under report,
substantial part of the Companys business has been carried out in
India. The conditions prevailing in India being uniform, no separate
geographical disclosures are considered necessary. The Companys
operations outside India do not qualify as reportable segments as the
operations are not material.
14. Remittance in foreign currencies for dividend
The company has not remitted any amount in foreign currencies on
account of dividends during the year and does not have any information
as to the extent to which remittances, if any, in foreign currencies on
account of dividends have been made to/on behalf of non resident share
holders. The particulars of dividend paid to non resident shareholders
during the year ended March 31, 2011 are as under:
15. Figures of previous year have been regrouped / rearranged /
reclassified wherever necessary to conform to the current year
presentation.
Mar 31, 2010
1. Contingent liabilities not provided for:
a) Letters of credit - Rs.1,605.34 million (31.03.2009: Rs.367.21
million).
b) Counter Guarantees given to the Bankers - Rs. 20,216.47 million
(31.03.2009: Rs. 15,269.51 million).
c) Performance guarantees, given on behalf of Subsidiaries and
Associates Rs.39.66 million (31.03.2009: Rs.95.76 million).
d) Corporate Guarantees given to Banks and Financial institutions for
financial assistance extended to Subsidiaries, Associates and Joint
Ventures Rs. 16,911.20 million (31.03.2009: Rs.16,731.69 million).
e) Disputed income tax liability for which the Company preferred appeal
Rs.73.38 million (31.03.2009: Rs. 69.77 million).
f) Disputed sales tax liability for which the Company preferred appeal
Rs.134.85 million (31.03.2009: Rs. 49.11 million).
g) Disputed central excise duty relating to cement plant, which was
sold in earlier year, for which the Company has filed an appeal to
CESTAT, Bangalore Rs.29.73 million (31.03.2009: Rs.28.23 million).
h) Disputed central excise duty relating to clearance of goods of LED
division in favour of Developers of SEZ, for which the
Company has filed an appeal to CESTAT, Bangalore Rs.1.17 million
(31.03.2009: Rs.Nil). i) Disputed service tax liability for which the
Company preferred appeal Rs.297.99 million (31.03.2009: Rs. 186.12
million).
j) Disputed sole arbitrator award of Rs.30.00 million in case of
counter claim by Bhartiya Reserve Bank Note Mudran Private Limited,
against which the Company has filed appeal before City Civil Court,
Bangalore. (31.03.2009: Rs. 30.00 million)
k) Claims against the Company not acknowledged as debts Rs.3.63 million
(31.03.2009: Rs. 519.51 million).
l) Joint and several liability in respect of joint venture projects and
liquidated damages in respect of delays in completion of projects -
amount not ascertainable.
m) Levy of labour cess @ 1 % (w.e.f. July 2007) on the construction
contracts executed by the Company in the State of Andhra Pradesh
contested before the Honble High Court of Andhra Pradesh - amount not
ascertainable.
n) Future Export commitments on account of import of machinery and
equipments at concessional rate of duty under EPCG scheme is Rs.534.05
million (31.03.2009: Rs.483.04 million).
3. Share Capital
Pursuant to a resolution passed by the members of the Company at the
Annual General Meeting held on July 30, 2009 and the provisions of Sec
81 (1 A) and other applicable provisions of the Companies Act, 1956 the
Company has issued 27,732,900 Equity Shares of Rs.2/- each at a premium
of Rs.130.46 per share aggregating to Rs. 3,673:50 million to Qualified
Institutional Buyers ("QIBs") under Qualified Institutional Placement
("QIP").
4. Loan Funds
A. Secured Loans
a) 11.95% Redeemable Non Convertible Debentures:
i) 11.95% Redeemable Non Convertible Debentures numbering to 1,000
having a face value of Rs.1 million each aggregating to Rs. 1,000
million privately placed with Life Insurance Corporation of India are
secured by first charge in favour of IDBI Trusteeship Services Limited,
trustees to the debenture holders:
(a) by way of hypothecation of the Companys movable properties
specified in the Schedule-2 of Memorandum of Hypothecation dated 25th
April, 2009;
(b) first charge by way of equitable mortgage by deposit of title deeds
of the Companys immovable property situated at Gujarat as specified in
first schedule to the Debenture Trust Deed dated 23rd April, 2009;
(c) equitable mortgage by deposit of title deeds of Companys immovable
properties situated at Hyderabad, Bangalore, Mumbai and New Delhi as
specified in Schedule-A of Declaration and Undertaking dated 25th
April, 2009.
ii) These debentures numbering to 1,000 having a face value of Rs.1
million each aggregating to Rs. 1,000 million are to be redeemed at par
in 3 installments in the ratio of 25:25:50 commencing at the end of 3rd
year from the date of allotment i.e., 4th February, 2012 onwards.
b) 10.50% Redeemable Non Convertible Debentures.
i) 10.50% Redeemable Non Convertible Debentures numbering to 1,000
having a face value of Rs. 1 million each comprising of 10 Detachable
and Separately Transferable, Redeemable Principle Parts ("STRPPS")
aggregating to Rs.1,000 million privately placed during the year with
various banks & financial institution are secured by first charge in
favour of IDBI Trusteeship Services Limited, trustees to the debenture
holders, by way of equitable mortgage of the title deeds in respect of
the companys immovable property situated at Kadi taluka, Mehasana
district, Gujarat as specified in the first schedule to the Debenture
Trust Deed dated 15th September, 2009 and by way of equitable mortgage
by deposit of title deeds of the immovable properties of the Company
and its subsidiary and its step-down subsidiaries, situated at
Hyderabad as specified in Schedule-A to I of Declaration and
Undertaking dated 12th October, 2009.
ii) These debentures numbering to 1,000 having a face value of Rs.1
million each comprising of 10 STRPPS aggregating to Rs. 1,000 million
are to be redeemed at par in 3 installments in the ratio of 30:30:40
commencing at the end of 3rd year from the date of allotment i.e., 24th
July, 2012 onwards.
c) The company has created debenture redemption reserve for both the
above redeemable non-convertible debentures.
d) Term Loans
Term Loans availed from banks and others are secured by hypothecation
of specific assets, comprising plant and machinery and construction
equipment, acquired out of the said loans and personal guarantee of a
Director.
e) Working Capital Facilities: Cash Credit facilities and Working
Capital Demand Loans from consortium of banks are secured by:
i) Hypothecation against first charge on stocks, book debts and other
current assets of the Company, both present
and future, ranking parri passu with consortium banks ii) Hypothecation
against first charge on all unencumbered fixed assets of the Project
Division and Light
Engineering Division of the Company both present and future ranking
parri passu with consortium banks. iii) Equitable mortgage of three
properties (Land & Buildings). iv) Personal guarantee of certain
Directors. v) Working Capital Demand Loan in foreign currency is
secured either/and or as:
Exclusive First hypothecation charge of project assets pertaining to
the Al Amerat Quriyat road project.
f) Vehicle Loans: Vehicle loans availed are secured by hypothecation of
vehicles acquired out of the said loans.
B. Unsecured Loan
Commercial Paper: Commercial paper represents Rs. 1,500 million
(31.03.2009: Nil) due within one year.
The maximum amount of Commercial paper outstanding at any time during
the year was Rs. 1,500 million (31.03.2009:
Nil).
5. Fixed Assets
Fixed assets include Rs.262.96 million (31.03.2009: Rs.418.32 million)
at written down value representing assets of a Joint Venture on which a
second charge has been created in favour of M/s.3i Infotech Trustyship
Services Limited.(a subsidiary of ICICI Bank Limited) for working
capital demand loan of USD 17.60 million sanctioned by ICICI Bank
Limited, Bahrain to Nagarjuna Contracting Company LLC , Dubai, a wholly
owned subsidiary of the Company.
6. Inventories
Property Development Cost
Property Development Cost includes Rs. 16.55 million (31.03.2009: Rs.
16.55 million) representing the cost of acquisition of land from a land
owner, for which the Company holds General Power of Attorney to deal
with such land including registration of the sale in the name of the
Company.
7. Cash and Bank balances
a) Cash on hand includes Rs.0.24.million (31;03.2009: Rs.0.33 million)
held in foreign currency.
b) Balance with banks in current account & deposit account includes
balance with non- scheduled banks as follows:
8. Loans and Advances - Advances to Suppliers, Sub-contractors and
others, include Rs. 1,431.79 million (31.03.2009: Rs. 459.67 million)
representing amounts withheld by contractees.
9. Micro, Small and Medium Enterprises under the Micro,-Small and
Medium Enterprises Development Act, 2006 have been determined based on
the information available with the company and the required disclosures
are given below:
10. Employee Benefits
a) Liability for retiring gratuity as on March 31, 2010 is Rs.48.72
million (31.03.2009: Rs.37.82 million) of which Rs.18.45 million
(31.03.2009: Rs.10.96 million) is funded with the Life Insurance
Corporation of India. The balance of Rs.30.27 million (31.03.2009:
Rs.26.86 million) is included in Provision for Gratuity. The Liability
for Gratuity and Cost of Compensated absences has been actuarially
determined and provided for in the books.
b) Details of the companys post-retirement gratuity plans for its
employees including whole-time directors are given below, which is
certified by the actuary and relied upon by the auditors.
i) Discount Rate:
The discount rate is based on the prevailing market yields of Indian
government securities as at the balance sheet date for the estimated
term of the obligations.
ii) Expected Rate of Return on Plan Assets:
This is based on our expectation of the average long term rate of
return expected on investments of the Fund during the estimated term of
the obligations. iii) Salary Escalation Rate:
The estimates of future salary increases considered takes into account
the inflation, seniority, promotion and other relevant factors.
11. Related Party Transactions
Following is the list of related parties and relationships:
Sl. no. Particulars
A) Subsidiaries
1) NCC Infrastructure Holdings Limited
2) NCC Urban Infrastructure Limited
3) NCC Vizag Urban Infrastructure Limited
4) Nagarjuna Construction Co. Ltd and Partners LLC
5) OB Infrastructure Limited
6) NCC Infrastructure Holdings Mauritius Pte. Limited
7) Nagarjuna Construction Co. International LLC
8) Nagarjuna Contracting Co.LLC
9) Patnitop Ropeway and Resorts Limited
10) Naftogaz Engineering Private Limited
11) NCC Power Projects Limited
12) NCC International Convention Centre Limited
B) Step-down Subsidiaries
13) Liquidity Limited
14) Dhatri Developers & Projects Private Limited
15) Sushanti Avenues Private Limited
16) Sushruta Real Estates Private Limited
17) PRG Estates Private Limited
18) Thrilekya Real Estates, Private Limited
19) Varma Infrastructure Private Limited
20) Nandyala Real Estates Private Limited
21) Kedarnath Real Estates Private Limited
22) AKHS Homes Private Limited
23) JIC Homes Private Limited
24) Sushanthi Housing Private Limited
25) CSVS Property Developers Private Limited
26) Vera Avenues Private Limited
27) Sri Raga Nivas Property Developers Private Limited
28) VSN Property Developers Private Limited
29) M A Property Developers Private Limited
30) Vara Infrastructure Private Limited
31) Sri Raga NivasVentures Private Limited
32) Mallelavanam Property Developers Private Limited
33) Sradha Real Estates Private Limited
34) Siripada Homes Private Limited
35) NJC Avenues Private Limited
36) NCC Urban Lanka (Private) Limited.
37) Himachal Sorang Power Limited
38) Al Mubarakia Contracting Company LLC
C) Joint Ventures
39) Brindavan Infrastructure Company Limited
40) Western UP Tollway Limited
41) Bangalore Elevated Tollway Limited
42) Pondicherry Tindivanam Tollway Limited
43) Premco - NCC
44) NCC - MAYTAS
45) SDB - NCC - NEC
46) NCC - PNC
Sl. no. Particulars
47) NCC - SJRIPL
48) Himachal JV
49) NCC - KNR
50) NCC - NEC - Maytas
51) NCC-VEE
52) NCC - MSKEL
53) NG - NCC
D) Associates
54) Paschal Form Work (I) Private Limited
55) Paschal Technology (I) Private Limited
56) Nagarjuna Facilities Management Services LLC
57) Himalayan Green Energy Private Limited
58) Jubilee Hills Landmark Projects Limited
59) Varaprada Real Estates Private Limited
60) Machilipatnam Port Limited
61) Tellapur Technocity (Mauritius)
62) Tellapur Technocity Private Limited
63) Tellapur Town Centre Private Limited
64) Teilapur Tech Park Private Limited
65) Gulbarga Airport Developers Private Limited
66) Shimoga Airport Developers Private Limited
E) Key Management Personnel.
67) Dr AVS Raju
68) Sri AAV Ranga Raju
69) Sri NR Alluri
70) Sri JV Ranga Raju
71) Sri AGK Raju
72) Sri ASN Raju
73) Sri RN Raju
74) Sri AVN Raju
F) Relatives of Key Management Personnel
75) Smt. A.Neelavathi
76) Smt. A.Bharathi
77) Smt.B.Kausalya
78) Smt.A.Satyanarayanamma
79) Smt.J.Sridevi
80) Smt. Sowjanya
81) Smt. AArundathi
G) Enterprises owned or significantly influenced by key management
personnel or their relatives
82) NCC Blue Water Products Limited
83) Swetha Estates
84) R.R.V. Infra Limited
85) NCC Finance Limited
86) Swetha Capital Private Limited
87) Sirisha Memorial Charitable Trust
88) Shyamala Agro Farms Private Limited
89) Ranga Agri Impex Private Limited 90). NCC Foundation
91) Suryakumari Abraham Memorial Foundation
12. Segment Reporting
The Companys operations predominantly consist of construction /
project activities. Hence there are no reportable segments under
Accounting Standard -17. During the year under report, substantial part
of the Companys business has been carried out in India. The conditions
prevailing in India being uniform, no separate geographical disclosures
are considered necessary. The Companys operations outside India do
not qualify as reportable segments as the operations are not material.
Excluding service tax and education cess thereon.
* Professional charges of Rs.8.50 million paid in connection with issue
of equity shares through Qualified Institutional Placement treated as
share issue expenses and adjusted to securities premium account.
Note: The above figures does not include provision for gratuity and
compensated absences liability actuarially valued as separate figures
are not available
13. Remittance in foreign currencies for dividend
The company has not remitted any amount in foreign currencies on
account of dividends during the year and does not have any information
as to the extent to which remittances, if any, in foreign currencies on
account of dividends have been made to/on behalf of non resident share
holders. The particulars of dividend paid to non resident shareholders
during the year
14. Figures of previous year have been regrouped / rearranged /
reclassified wherever necessary to conform to the current year
presentation.