A. General Information:

RKEC Projects Limited(Formerly known as RKEC Projects Private Limited), having registered office at 1012-1, RednamAlcazar, 3rd Floor, Opp. SBI Main Branch, Old Jail Road, RednamGardens,Visakhapatnam, A.P.-530020, India was incorporated under the provisions of Companies Act, 1956 now Companies Act, 2013 with the Registrar of Companies, Hyderabad (CIN L45200AP2005PLC045795). The Company is engaged in the business of Civil Works and specialized in Marine Works, Construction of Roads, Buildings, Bridges& Fly overs, Survey works under Unmanned Aerial Systemsetc. Company has been changed from Private Limited Company to a limited Company on November10, 2016. Company was listed under SME platform of National Stock Exchange of India Ltd (NSE) in the month of October,2017.

b) Terms/ rights attached to equity shares

The Company has only one class of equity shares having par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. In the event of Dividend declaration, Company will pay the amount in Indian rupees, if dividend proposed by Board of Directors subject to approval of the shareholders in the ensuing Annual General Meeting.

c) Public issue of equity shares

During the previous year ended 31 March 2018, the Company had completed the initial public offer (IPO), pursuant to which 63,78,000 equity shares of Rs. 10 each were allotted, at an issue price of Rs. 45, consisting of fresh issue of 46,78,000 equity shares and an offer for sale of 17,00,000 equity shares by selling shareholder.

The equity shares of the Company were listed on SME-Emerge of National Stock Exchange of India Limited (NSE) via Symbol RKEC on October 09, 2017.

e) Aggregate number of bonus shares issued during the period of Five years immediately preceeding the reporting date

During the FY 2016-17, 96,56,300 number of equity shares of Rs. 10 each (fully paid-up) have been issued as bonus shares by Capitalisation of General reserve in the ratio of 1:1 to all existing share holders.

1. Nature of Security & Terms of repayment

Company availed Cash credit limit of Rs. 15.00 crores from Vijaya Bank, at an interest rate of base rate 3.00% (present effective rate is 12.65% p.a.) and the outstanding balance as on 31st March, 2017 was Nil. The loan was secured by way of first charge on current assets of company, collateral security on assets of the directors & Company and personal guarantee of certain Directors.

*interest in joint venture

The company discloses its investment in joint ventures at cost and recognises its share of profit/(loss) in the profit and loss account. Interest of the company in profit - 51%, Share of profit/Loss for the year 2017-18 Rs. 8,543, interest of the other constituent name - M/s. Suryadevara Engineers and contractors.

* Includes amount due from M/s. IVRCL limited Rs. 1,06,44,944 and M/s. SEW infra Structure limited Rs. 2,35,04,121. In the case of M/s. IVRCL limited insolvency resolution process was under progress before NCLT. The Company is confident about full recovery of the dues from the said companies.

**This includes an amount of Rs. 112.50 lakhs (Prev year Rs.112.50 Lakhs) paid for loan arrangement to individuals, who failed to arrange the said loan, in the fin year 2015-16. The company has lodged complaint with the Joint Commissioner of Police, Mumbai and no FIR is registered as on date. The management is taking steps for recovery and it is under process of mediation. No provision was made for the said amount in the books, the management is confident about the recovery of the said amount in full.

2. IPO Expenses:

The IPO expenses amounting to Rs. 2,84,02,400 (net off GST) have been allocated between the Company and the selling shareholder in proportion to the equity shares allotted to the public as fresh issue by the Company and under offer for sale by the existing shareholders.

3. IPO Proceeds utilization:

During the year ended 31 March 2018, the Company had completed the initial public offer (IPO), the proceeds from IPO was Rs. 21,05,10,000 to the company:

Details of utilization of IPO proceeds are as follows:

a) IPO Expenses net of recovery from selling shareholders : Rs. 2,08,31,989.

b) General corporate purposes - Working capital: Rs. 18,96,78,011.

4. Dividend

The Board of Directors at its meeting held on May 30,2018 have recommended a final dividend of Rs.1.00 per equity share of face value of Rs.10.00 each for the financial year ended March 31,2018. The above is subject to approval at the ensuing Annual General Meeting of the Company and hence is not recognized as a liability.

5. Segment Reporting

The Company's operations predominantly consist of construction / project activities. The Company also in to the business of survey works under Unmanned Aerial Systems (UAS). The Business of UAS is not very significant to identify as reportable segment. Hence there are no reportable segments under Accounting Standard - 17. During the year under report, Company has carried out all the business operations in India. The conditions prevailing in India being uniform, no separate geographical disclosures are considered necessary.

6. Company has no Capital commitments pending for execution on balance sheet date (previous year nil).

7. Based on the information available with the Company, there are no suppliers registered as micro & small enterprises under Micro, Small, Medium Enterprises Development Act, 2006. Accordingly, no interest is due or payable or paid or accrued and remaining unpaid to such suppliers.

8. Previous year's figures have been regrouped/reclassified, wherever considered necessary to conform to this year's classification.