3.14 Provisions and Contingent Liabilities:
Provisions are recognised when the
Company has a present obligation
(legal or constructive) as a result of a
past event, it is probable that an
outflow of resources embodying
economic benefits will be required to
settle the obligation and a reliable
estimate can be made of the amount
of the obligation. Provisions are
measured at the best estimate of the
expenditure required to settle the
present obligation at the Balance
Sheet date.
If the effect of the time value of money is material, provisions are discounted to reflect its
present value using a current pre-tax rate that reflects the current market assessments of
the time value of money and the risks specific to the obligation. When discounting is used,
the increase in the provision due to the passage of time is recognised as a finance cost.
Contingent liabilities are disclosed
when there is a possible obligation
arising from past events, the existence
of which will be confirmed only by the
occurrence or non-occurrence of one
or more uncertain future events not
wholly within the control of the
3.15 Inventories
The stock of construction material,
stores and spares are valued at lower
of cost on FIFO basis and net all
charges in bringing the goods to their
present location and condition,
including octroi and other levies,
transit insurance and receiving
charges. Work-in-progress and
finished goods include appropriate
3.16 Exceptional items
Items of income or expense from
ordinary activities which are non¬
recurring and are of such size, nature
or incidence that their separate
disclosure is considered necessary to
3.17 Non-derivative financial instruments
Financial assets and liabilities are
recognised when the Company
becomes a party to the contractual
provisions of the instrument. Financial
assets and liabilities are initially
measured at fair value. Transaction
costs that are directly attributable to
the acquisition or issue of financial
Company or a present obligation that
arises from past events where it is
either not probable that an outflow of
resources will be required to settle the
obligation or a reliable estimate of the
amount cannot be made.
proportion of overheads and, where
applicable, excise duty. Net realisable
value is the estimated selling price in
the ordinary course of business, less
the estimated costs of completion and
the estimated costs necessary to make
the sale. realisable value after
providing for obsolescence and other
losses, where considered necessary.
explain the performance of the
Company are disclosed as Exceptional
items in the Statement of Profit and
Loss.
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 measured on initial
recognition of financial asset or
financial liability.
a. Financial assets
Cash and cash equivalents:
The Company considers all highly
liquid financial instruments, which
are readily convertible into known
amounts of cash that are subject
to an insignificant risk of change
in value and having original
Trade Receivables and Loans:
Trade receivables are initially
recognised at fair value.
Subsequently, these assets are
held at amortised cost, using the
effective interest rate (EIR)
Debt Instruments: Debt
instruments are initially measured
at amortised cost, fair value
through other comprehensive
income ('FVOCI') or fair value
through profit or loss ('FVTPL') till
Equity Instruments: All
investments in equity instruments
classified under financial assets
are initially measured at fair
value, the Company may, on
b. Financial assets-Subsequent measurement
Financial assets at amortised
cost: Financial assets are
subsequently measured at
amortised cost if these financial
assets are held within a business
whose objective is to hold these
assets in order to collect
Financial assets at fair value
through other comprehensive
income (FVTOCI): Financial
assets are measured at fair value
through other comprehensive
income if these financial assets
are held within a business whose
maturities of three months or less
from the date of purchase, to be
cash equivalents. Cash and cash
equivalents consist of balances
with banks, which are
unrestricted for withdrawal and
usage.
method net of any expected credit
losses. The EIR is the rate that
discounts estimated future cash
income through the expected life
of financial instrument.
de-recognition on the basis of (i)
the entity's business model for
managing the financial assets and
(ii) the contractual cash flow
characteristics of the financial
asset.
initial recognition, irrevocably
elect to measure the same either
at FVOCI or FVTPL. The Company
makes such election on an
instrument-by-instrument basis.
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.
objective is achieved by both
collecting contractual cash flows
that give rise on specified dates
to solely payments of principal
and interest on the principal
amount outstanding and by
selling financial assets.
Financial assets at fair value
through profit or loss (FVTPL):
Financial assets are measured at
fair value through profit or loss
unless it is measured at amortised
cost or at fair value through other
comprehensive income on initial
recognition. The transaction costs
directly attributable to the
acquisition of financial assets and
liabilities at fair value through
profit or loss are immediately
recognised in profit or loss.
c. Financial liabilities
Loans and borrowings: After initial recognition, interest-bearing loans and borrowings
are subsequently measured at amortised cost on accrual basis.
recognized initially as a liability at
fair value, adjusted for
transaction costs that are directly
attributable to the issuance of the
guarantee. Subsequently, the
liability is measured at the higher
of the amount of loss allowance
determined as per impairment
requirements of Ind AS 109 and
the amount recognized less
cumulative amortization.
the balance sheet date, carrying
amounts approximate the fair
value due to the short maturity of
these instruments.
"Financial Instruments". A
financial liability (or a part of
financial liability) is de-recognised
from the Company's balance
sheet when the obligation
specified in the contract is
discharged or cancelled or
expired.
the recognised amounts and
there is an intention to settle on a
net basis, to realise the assets
and settle the liabilities
simultaneously.
Financial guarantee contracts:
Financial guarantee contracts
issued by the Company are those
contracts that require a payment
to be made to reimburse the
holder for a loss it incurs because
the specified debtor fails to make
a payment when due in
accordance with the terms of a
debt instrument. Financial
guarantee contracts are
d. Financial liabilities - Subsequent measurement
Financial liabilities are measured
at amortised cost using the
effective interest method. For
trade and other payables
maturing within one year from
e. De-recognition of financial instrument
The Company de-recognizes a
financial assets when the
contractual rights to the cash
flows from the financial asset
expires or it transfers the
financial assets and the transfer
qualifies for de-recognition under
Indian Accounting Standard 109
f. Offsetting of financial instruments
Financial assets and financial
liabilities are offset and the net
amount is reported in financial
statements if there is a currently
enforceable legal right to offset
3.18 Borrowing costs
General and specific borrowing costs
(including exchange differences arising
from foreign currency borrowing to the
extent that they are regarded as an
adjustment to interest cost) that are
directly attributable to the acquisition,
construction or production of a
Investment income earned on the
temporary investment of specific
borrowings pending their expenditure
on qualifying assets is deducted from
qualifying asset are capitalised during
the period of time that is required to
complete and prepare the asset for its
intended use or sale. Qualifying assets
are assets that necessarily take a
substantial period of time to get ready
for their intended use or sale.
the borrowing costs eligible for
capitalisation. Other borrowing costs
are expensed in the period in which
they are incurred.
3.19 Employee Benefits
Employee benefits consist of contribution to employees state insurance, provident fund,
gratuity fund and compensated absences.
Defined Contribution plans
Contributions to defined contribution
schemes such as employees' state
insurance, labour welfare fund,
employee pension scheme etc. are
charged as an expense based on the
amount of contribution required to be
made as and when services are
rendered by the employees.
Company's provident fund contribution
Defined benefit plans:
The Company operates defined benefit
plan in the form of gratuity. The
liability or asset recognised in the
balance sheet in respect of its defined
benefit plans is the present value of
the defined benefit obligation at the
end of the reporting period. The
defined benefit obligation is calculated
is made to a government administered
fund and charged as an expense to the
Statement of Profit and Loss. The
above benefits are classified as
Defined Contribution Schemes as the
Company has no further defined
obligations beyond the monthly
contributions.
annually by actuaries using the
projected unit credit method. The
present value of the said obligation is
determined by discounting the
estimated future cash out flows, using
market yields of government bonds
that have tenure approximating the
tenures of the related liability.
The interest expense are calculated by applying the discount rate to the net defined benefit
liability or asset. The net interest expense on the net defined benefit liability or asset is
recognised in the Statement of Profit and loss.
Re-measurement gains and losses
arising from experience adjustments
and changes in actuarial assumptions
are recognised in the period in which
they occur, directly in other
comprehensive income. They are
included in retained earnings in the
Statement of Changes in Equity and in
the Balance Sheet. Changes in the
present value of the defined benefit
obligation resulting from plan
amendments or curtailments are
recognised immediately in profit or
loss as past service cost.
Compensated Absences
The employees are entitled to
accumulate leave subject to certain
limits, for future encashment and
availment, as per the policy of the
Company. The liability towards such
unutilized leave as at the yearend is
determined based on independent
actuarial valuation and recognized in
the Statement of Profit and Loss.
The classification of the company's net obligation into current and non- current is as per the
actuarial valuation report.
3.20 Earnings per share (EPS)
Basic EPS is computed by dividing the
profit or loss attributable to the equity
shareholders of the Company by the
weighted average number of Ordinary
shares outstanding during the year.
Diluted EPS is computed by adjusting
the profit or loss attributable to the
ordinary equity shareholders and the
weighted average number of ordinary
equity shares, for the effects of all
dilutive potential Ordinary shares.
23.2 Details of Security
I Cash Credits and Working Capital Demand Loan from Consortium Banks
(a) Cash Credit
Cash Credits and Working Capital Demand Loans are secured by hypothecation of book debts, inventories and other current assets (excluding those charged to lenders of
specific-funding projects). Further these loans are secured by mortgage of property in Land and Buildings owned by the Company ranking pari passu among the consortium
banks aggregating to ' 101.54 million and lien of the Fixed Deposit of ' 4.20 million. The loans are Second Charged on current assets of the specific-funding projects on
reciprocal basis. Cash Credit of IDBI amounting to ' 1,754.50 million is further secured by first and exclusive charge on all present and future fixed assets and current
assets, except lease rights of the lease hold land of IVRCL TLT Private Limited, a subsidiary of the company.
(b) Working Capital Term Loan
WCTL - I is secured by first paripassu charge on fixed assets excluding the exclusive security given to various lenders book debts beyond the cover period and non-current
assets excluding retention money and investments. Second paripassu on entire stocks, book-debts upto cover period, unbilled revenue, retention money and any current
assets as per audited balance sheet both present and future.
(c) Priority Debt
' 1,226.48 million (' 1,226.48 million) has been availed out of ' 1,750.00 million Priority Debt sanctioned. Priority Debt is secured by first parispassu charge on fixed
assets excluding the exclusive security given to various lenders, book debts beyond the cover period and non-current assets excluding retention money and investments.
Second paripasssu on entire stocks, book-debts upto cover period, unbilled revenue, retention money and any current assets as per audited balance sheet both present
and future.
(d ) Term Loans from Banks
(i) ICICI Bank
The loan amount of ' 1,627.51 million (' 1,627.51 million), is secured by first and exclusive hypothecation charge over specific fixed assets of the Company including
freehold land.
(ii) IndusInd Bank
The loan amount of ' 714.89 millions (' 714.89 million), is secured by equitable mortgage of land and pledge of certain equity shares held in subsidiaries, as per the terms
of sanction letter.
(iii) Punjab & Sind Bank
Secured by first and exclusive hypothecation charge over specific fixed assets of the Company. The balance outstanding as at March 31, 2019 is ' 56.99 million ('
56.99 million), which is overdue.
(iv) AXIS Bank
Out of loan amount of ' 304.69 million (' 304.69 million), ' 46.50 million was secured by sepcific equipments.
(v) Nova Scotia
The loan amount of ' 250.00 million is secured by mortagage of freehold land.
(vi) TATA Capital Financial Services Limited
The loan amount of ' 133.33 million is secured by mortgage of freehold non-agricultural land.
Equitable mortgage over Club House bearing Sy. No. 25, Hill Ridge Springs, Gachibowli, Hyderabad, 2)value of pledge of 29.7% shares of IVRC Salem Tollways Limited and
29.7% shares of IVRCL in Kumarapalyam Tollways Limited
(vii) SREI Equipment Finance Private Limited
The loan amount of ' 1,199.63 million (' 1,199.63 million) is secured by first charge by way of hypothecation of specific movable assets.
(viii) Standard Chartered Bank (External Commercial Borrowings)
Secured by First charge on exclusive hypothecation of construction equipment procured out of loan amount.
(ix) Union Bank of India
Secured by first and exclusive hypothecation charge over specific fixed assets of the Company. The balance outstanding as at March 31, 2020 is ' 879.52 million (' 879.52
million), which is overdue.
II Project Specific Working Capital Loan from Banks
Project Specific Working Capital Loan from Banks are secured by hypothecation of book debts and inventory and other current assets of respective projects.
III Funded Interest Term Loan
The interest due and accrued on Term Loan, Non-Convertible Debentures, Short Term Loans, Equipment Term Loans, CGTL, WCTL-I, WCTL-II facilities from Cut-off-Date
to till September 30, 2015 was to be funded and converted into a Funded Interest Term Loan. The proposed FITL along with accrued interest was to be converted into
equity based on the earlier CDR regulatory guide lines.
IV 12.15% Non-Convertible Debentures
2,000 Debentures of ' 1,000,000 each issued to Life Insurance Corporation of India during the year 2008-09. The debentures were due for redemption at the end of five
years (i.e., December 19, 2013) from the date of allotment. The debentures are secured by way of first pari passu charge over certain specific fixed assets including
immovable properties of the Company. IDBI Trusteeship Services Limited, Mumbai were the trustees for the debenture holders in respect of the non-convertible
debentures.
V Promotors Guarantee (Additional Security)
On the failure of the Company to pay and/or discharge any of its Guaranteed Obligations in full, or in part or on failure to comply with its obligations under the CDR
Documents, the Promotor shall, unconditionally and irrevocably, upon demand raised by the Security Trustee, pay to the Security Trustee without demur or protest,
forthwith, the amount stated in the demand certificate, as if he was the primary obligtor and principal debtor and not merely as surety in respect of that amount, the
amount stated in the demand certificate (the "Demand Certificate", in the form and manner set out in Deed of Guarantee, which shall mean any demand made by the
Security Trustee on the Promotor, thereby invoking this Guarantee)
36. As more fully described in Note 37 below,
as per section 134 of the Companies Act,
2013, the standalone financial statements
of a Company are required to be
authenticated by the Chairperson of the
Board of Directors, where authorized by
the Board or at least two Directors, of
which one shall be the Managing Director
or the CEO (being a Director), the CFO and
the Company Secretary where they are
appointed. In view of the ongoing
Liquidation as a going concern, all the
powers of the Board of Directors, and Key
Managerial Personnel ceased to have effect
and is vested with Mr. Sutanu Sinha, the
Liquidator. Accordingly, financial results of
the Company for the year ended March 31,
2024 were taken on record and authorized
for issue to concerned authorities by the
Liquidator.
37. The Hon'ble National Company Law
Tribunal, Hyderabad Bench ("NCLT") has
passed its order dated July 26, 2019 read
with corrigendum order issued on July 31,
2019 for "Liquidation of M/s IVRCL Limited
as going concern" and the Resolution
professional (RP) for the Company has
The Hon'ble National Company Law
Appellate Tribunal, New Delhi ("NCLAT")
vide its order dated September 06, 2019
ordered that the Liquidator to ensure that
the company remains as going concern and
the liquidator would not sell or transfer or
alienate movable or immovable property of
the corporate debtor without the prior
been appointed as the Liquidator. The
Liquidator to exercise the powers and
duties as enumerated in sections 35 to 50,
52 to 54 of the Insolvency and Bankruptcy
Code, 2016 read with Insolvency and
Bankruptcy Board of India (Liquidation
Process) Regulations, 2016.
approval of the Appellate Tribunal. The said
order is vacated by the Hon'ble National
Company Law Appellate Tribunal, New
Delhi ("NCLAT") vide its order dated May
29, 2020 and upholds the Order of NCLT,
Hyderabad dated July 26, 2019 with
corrigendum order dated July 31, 2019.
As part of the Liquidation process under the provisions of the Insolvency and Bankruptcy Code
2016, Third E-auction was held on 15th December 2021 with a Reserved Price not less than
INR.1200 Crores (Rupees One thousand two hundred crores).
Under third E-auction, the Liquidator was in
receipt of EOI of 23 no.s out of which only
one of the prospective bidder Mr.Ponguleti
Prasada Reddy along with five other
On 15th December 2021, Liquidator
conducted third E-Auction for the sale of
IVRCL Limited as a Going Concern through
an E- Auction platform provided by E-
Auction service provider. However, no bids
were received on the date of third E-
Auction. As such the consortium of
individuals led by Mr. Ponguleti Prasad
On 29th December 2021, as per advice of
the Stakeholders' Consultation Committee
of the IVRCL Limited, Liquidator issued
Demand notice to the successful bidder Mr.
Ponguletti Prasad Reddy along with five
other members forming SPV to pay the
balance sale consideration under Third E-
auction Process of IVRCL Limited under
Liquidation as going concern to complete
the sale process and the reminder letter
was issued by the Liquidator on 19th
January 2022.Liquidator has written
several letters/reminders, viz.,letter dated
members forming SPV M/s Raghava Square
Private Limited submitted EMD of Rs.50
crores on 10th December 2021.
Reddy, being the sole Qualified Bidder was
automatically registered in the Third E-
Auction held on 15th December 2021 at
the minimum reserve price of Rs. 1200
crore as per the clause 10.3 of Third E-
Auction Process Information Document
dated November 20,2021.
16 June 2022 and repeated reminders vide
letters dated 28 July 2022; 05 August
2022; 12 August 2022; 16 August 2022;
24 August 2022; 01 September 2022; 14
September 2022; 20 September 2022; 24
September 2022;13 October 2022;28
October 2022; 21 November 2022; 16
January 2023 and 15 February 2023 and
29th March 2023 respectively, however,
Successful Bidders have not yet paid
Balance Consideration as per NCLT Order
dated 15 June 2022.
Hon'ble NCLT vide order dated 15th June
2022 passed in MA 2 of 2022 filed by
Liquidator directed the successful bidder to
pay the balance sale consideration of
Rs.1,150 Crores (Rs.1200 Cr- Rs.50 Cr
being Earnest Money Deposit already paid)
for acquiring M/S.IVRCL Limited under
Liquidation as a Going Concern within a
period of 12 months from the date of order
(i.e. 15th June 2022) in SIX tranches. As
per Hon'ble NCLT order dated 15th June
2022, payment schedule to be adhered by
the successful bidder is as follows: Five
tranches of Rs.200 crores each to be paid
by successful bidder on
Hon'ble NCLT vide order dated 25th July
2022 in IA 656 of 2022 filed by successful
bidder inter alia directed that prior to the
approval of the IVRCL Ltd being sold as a
going concern, whatever the Business Plan
the successful bidders have submitted to
the Liquidator or Stakeholder's
Consultation Committee on account of
which both the parties have come forward
before Hon'ble Tribunal to approve the
14.08.2022,14.10.2022,14.12.2022,
14.02.2023, 14.04.2023 respectively and
the final tranche of Rs.150 Crores shall
payable on 14.06.2023. Further, as per
said Order, any delay in adherence to the
aforesaid payment schedule will attract
interest at 12% p.a. for the delayed
period.The successful bidder has paid only
Rs.100 crores on 26th September 2022
against the first tranche of Rs.200 Crores
payable on 14.08.2022 and no payment
has been made by successful bidder
thereafter and the same were attracting
interest @ 12% for the delayed.
sale as a going concern,shall be
scrupulously followed by both the parties;
and also directed to form a supervisory
committee consisting of the successful
bidders, Liquidator and other stakeholders
who shall meet as and when necessary to
take stock of the situation with regard to
the business of the IVRCL Limited and also
to protect the assets of the IVRCL Limited .
Liquidator filed IA 1456 of 2022 before Hon'ble NCLT to direct the successful bidders to make
requisite payment as per direction of Hon'ble NCLT Order dated 15th June 2022 and to pass
appropriate directions in order to enable the Liquidator to successfully consummate the sale of
the IVRCL Limited as a going concern, to the successful bidders. Hon'ble NCLT vide order dated
02nd January 2023 in the aforesaid IA 1456 of 2022 (filed by Liquidator) directed that "The
petitioner is at liberty to take appropriate steps by filing appropriate application for failure of the
buyers to comply with the direction which is already given by the tribunal."
Pursuant to Hon'ble NCLT order dated 02nd
January, 2023 passed in IA 1456 of 2022,
Liquidator filed Contempt Petition 2 of 2023
to direct successful bidder to purge the
contempt by making payment of the
outstanding amounts as per the directions
of Hon'ble NCLT in Order dated 15th June
2022, amongst other reliefs. The said
Contempt Petition 2 of 2023 is still under
consideration of Hon'ble NCLT. Liquidator
has cancelled the bid process on 28th
July2023 and the bidder has challenged the
cancellation that has been stayed.
The Liquidator issued letter, pursuant to
the deliberation held in the 30th
Stakeholders' Consultation Committee
meeting of the IVRCL LIMITED (under
Liquidation as a Going Concern) held on
Friday, the 28th day of July 2023 for
cancellation of (i) Demand Notice dated
December 29, 2021 ("Demand Notice") and
accepted on December 29, 2021; and (ii)
proposed sale of IVRCL Limited
("Company") pursuant to the E-auction of
the Company conducted on December 15,
2021, and in response to the letter,
Raghava Square Private Limited filed an IA
947 before Hon'ble NCLT, Hyderabad Bench
for extension in time with respect to
payment as NCLT order of 2022 which sub-
judice which They are amending pursuant
to our liquidation period being extended
As per the NCLT order dated 15th June 2022, the last date of completion of Liquidation
process was 14th June 2023, as the bidder did not make the payment of Balance sale
consideration, so based on the suggestions received from Stakeholders' Consultation
Committee, the Liquidator filed an IA for seeking exclusion / extension of time for conducting
the Liquidation process, and the Hon'ble NCLT vide its order dated 17th July 2023 has allowed
to exclude the period from 28.12.2021 to 14.06.2023 from the liquidation period. The
liquidation period has been extended further till 14th Feb 2025 by The Hon'ble NCLT order
dated April 23, 2024.
As per Regulation 33(2)(b) of the SEBI
(Listing Obligations and Disclosure
Requirements) Regulations 2015, the
standalone financial results of a company
submitted to the stock exchange shall be
signed by the Chairperson or Managing
Director or Whole Time Director or in
absence of all of them, it shall be signed by
any Director of the Company who is duly
authorized by the Board of Directors to sign
38. The Company has incurred a Net Loss of
?7,260.17 Million for the quarter and
?26,959.62 Million for the year ended
March 31,2024 resulting into accumulated
losses of ?1,74,637.15 Million and erosion
of its Net worth as at March 31,2024. This
includes inter alia ?6,940.23 Million
towards Finance cost.The Company has
obligations towards fund based borrowings
(including interest) aggregating to
?1,91,151.67 Million as per books of
accounts and non-fund based exposure
aggregating to Rs. ?3,736.86 Miliion,
operational creditors and statutory dues,
subject to reconciliation/verification as
stated in note below, that have been
the standalone financial results. In view of
the Liquidation Order passed by the NCLT,
all the powers of the Board of Directors,
and Key Managerial Personnel ceased to
have effect and is vested with Mr. Sutanu
Sinha, the Liquidator. Accordingly, financial
results of the Company for the year
ended March 31, 2024 were taken on
record and authorized for issue to
concerned authorities by the Liquidator.
demanded/recalled by the
financial/operating creditors pursuant to
ongoing Liquidation process as going
concern, obligations pertaining to
operations including unpaid creditors and
statutory dues as at March 31, 2024. As
the company is a going concern by order of
the NCLT dated 26th July 2019 with
corrigendum order issued on July 31,2019
and started receiving the bid amount under
Third E-auction process for sale of the
company as a going concern, in the opinion
of the management, the company will
continue its operations and the above
results have been prepared on the basis
that the Company is Going Concern.
39. The company recognized deferred tax asset
on account of carry forward unused tax
losses and other taxable temporary
differences aggregating to ?.9,570.59
Million generated as on 31st March 2017.
Subsequently, there has not been
recognised deferred tax on unused tax
losses and other taxable temporary
difference a raised except on Ind AS
adjustment. As the company is a going
40. The Company has certain trade
receivables, security deposit, withheld,
claims of indirect taxes and other deposits
including bank guarantee encashed by the
customers aggregating to ? 15,767.48
Million (?16,393.62 as at March 31,2023)
which are subject matters of various
disputes/arbitration
proceedings/negotiations with the
41. The Company has an investment of
?18,343.88 Million in subsidiaries,
associates and Joint Ventures engaged in
BOT and other projects as at March 31,
2024 which are under disputes with the
concessionaire/clients, and have significant
accumulated losses as at March 31, 2024.
The management of the Company is at
various stages of negotiation/
communication /arbitration with respective
contractee/clients of such subsidiaries
engaged in BOT and other projects to
recover the dues and cost incurred by the
Company and taking necessary steps to
42. The Company has outstanding loans and
advances of ?8,028.10 Million (?7,997.17
Million as at March 31, 2023) as at March
31,2024 given to subsidiary companies,
associate, net receivable against
development rights, various sub¬
contractors, vendors and other parties that
are outstanding for long period. The
management of the Company is at various
stages of
negotiation/communication/arbitration with
respective contractee/clients/ sub-
concern by order of the NCLT dated 26th
July 2019 with corrigendum order issued
on July 31,2019 and received the bid under
Third E-auction process for sale of the
company as a going concern the
management of the company is confident
that sufficient future taxable income will be
available against which such deferred tax
asset will be realized.
customers and contractors due to
termination/fore closure of contracts and
other disputes. The management of the
Company is confident of positive outcome
of litigations / resolutions of disputes and
recovering the aforesaid dues. However,
the management is in the process of
initiating arbitration/other legal action for
such invocations.
turnaround the loss-making subsidiary
Companies. As the company is a going
concern by order of the NCLT dated 26th
July 2019 with corrigendum order issued
on July 31, 2019 and received the bid
under Third E-auction process for the sale
of the Company as going concern
considering the long-term nature of
investments and in view of ongoing
discussion, no provision has been
considered necessary by the management
in respect of impairment in the value of
investment.
contractors/vendors to recover the dues
and cost incurred by the Company. As the
company is a going concern by order of the
NCLT dated 26th July 2019 with
corrigendum order issued on July 31, 2019
and started receiving the Bid amount under
Third E-auction process for sale of the
company as a going concern and
accordingly, no provision has been
considered necessary by the management
in respect of impairment in the value of
loans and advances.
43. Pursuant to the commencement of
Liquidation process as going concern by
order of the NCLT dated 26th July 2019
with corrigendum order issued on July 31,
2019 there are various claims submitted by
the operational creditors, the financial
creditors, employees, statutory authorities
and other creditors against the Company
including the claims on Company's
subsidiaries. Some of these claims are
under further verification/validation and
the same may be updated as per any
additional information which may be
received in future. Hence there are
differences between the liabilities admitted
vis-a-vis balance as per books of account.
44. Un-invoked Bank Guarantees of ?3736.86 Millions as on March 31,2024 are crystallised as debt
and admitted under claims from the financial creditors as per the provisions of the IBC 2016 and
hence the same is not considered in the books of accounts.
45. Confirmation of balances could not be
obtained as at March 31, 2024 for bank
balances, bank borrowings and for various
trade receivables including retention, loans
and advances, and trade payables including
other financial/non financial liabilities
though, the management has requested for
the confirmation of balances and the status
is still continued. Management believes
that no material adjustments would be
required in books of account upon receipt
of these confirmations.
46. Physical verification for fixed assets aggregating to ?950.05 Million (Net block as on March 31,
2024) and inventory aggregating to ?521.62 Million as on March 31, 2024 is in progress
accordingly, no provision is required in respect of such fixed assets and inventories.
47. The company has various input credits and
balances with various statutory authorities
pertaining to service tax, sales tax/GST,
Income Tax etc aggregating to ?2377.61
Million as at March 31, 2024. The recovery
of these amounts is subject to
48. During the financial year 2017-18, the
company has received a Show Cause
Notice U/s 279 (1) of the IT Act 1961 for
initiation of prosecution proceedings U/s
276 (B) of the IT Act 1961 for failure to
reconciliation, filing of returns and
admission by respective statutory
authorities and status is still continued. No
adjustments have been made in the books
of accounts in respect of such amounts.
deposit the deducted Tax at Source within
due date in Central Government Account
for financial year 2016-17 & 2017-18 for
the amount of ?103.40 Million and ?189.12
Million respectively.
In respect of the above, IT department has also sent notices U/s 226 (3) of the IT Act, 1961 to
certain banks and customers of the company demanding the recovery of aforesaid arrears.
Pursuant to the application under Section
60(5) of the Insolvency and Bankruptcy
Code 2016, the National Company Law
Tribunal, Hyderabad vide its order dated
17th December 2019 directs the IT
The company received demand under
section 271(1)(c)of the Income Tax Act
1961 for the AY. 2015-16, 2016-17 and
2017-18 aggregating ? 314.84 Million
which has been adjusted against the
department to withdraw the garnishee
notices issued to the Banks and also
directed the Banks to release any amount
due to corporate Debtor.
Refund Receivables and the same has not
been recognized in the books of accounts
as the company appealed the matter
before CIT(Appeals).
49. During the financial year 2017-18, the
company has received order of the
Regional Provident Fund Commissioner in
the matter of levy of damages pertaining to
the earlier years U/s 14 B of the
Employees' Provident Funds and
Miscellaneous Provisions Act, 1952
aggregating to ? 0.41 Million for the period
from 10/1999 to 02/2009 and ?60.86
Million for the period from 07/2009 to
03/2015.
In respect of the above, the Employees' Provident Fund Organisation has also sent notice U/s 8f
of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 to a bank demanding
the recovery of ? 91.22 Million (including interest of ? 29.96 Million).
The company has filed an appeal U/s 7-I of the Employees' Provident Funds and Miscellaneous
Provisions Act, 1952 with Employees' Provident Fund Appellate Tribunal, Bangalore Bench
regarding the damages amounting to ? 61.26 Million and the matter is presently sub-judice.
50. Interest on borrowings of ? 85,798.07
Millions from the date of commencement of
Liquidation period i.e.,26th July 2019 to
March 31, 2024 has been provided in the
51. Other expenses for the year ended on
March 31, 2024 includes provision for
doubtful trade receivables aggregating to
?248.52 Million (for the year ended March
52. The Company executing a Road project in
Afghanistan and received USD
1,829,609.46 in to IVRCL Limited Bank
account maintained with Azizi Bank, Kabul,
53. (i) IVRCL Chengapally Tollways Limited,
subsidiary of IVRCL Limited was in to CIRP
from 20th April 2022 and the claim was
submitted of Rs. 789 lakhs of which the
claim admitted by RP of Rs. 584 lakhs. The
resolution plan has been approved vide
order dated 1st may 2023 by Hon'ble
NCLT, Hyderabad and as per the resolution
plan approved by NCLT provides that
(i i) IDBI Bank on 23 Nov. 2023 has taken
over possession of IVCL TLT Pvt. Ltd. under
securitisation and reconstruction of
financial asset for the guarantee given to
books of accounts as per the accounting
standards and the same is not required to
be consider under the provisions of IBC
2016.
31, 2023 is ?318.21 Million) against the
receivables aged over 3 years under the
applicable accounting standards.
Afghanistan. The said amount could not be
repatriated to India due to
regulatory/political developments in
Afghanistan and the same is being pursue.
operational creditors shall be paid in full as
claim admitted, hence IVRCL claim
admitted of Rs. 584 lakhs to be receivable.
IVRCL Limited had an Equity investment of
Rs.22,855.30 lakhs in IVRCL Chengapally
Tollways Limited. No affect/provision has
given in the books of accounts by the
management during the year.
the CDR condition to the CDR landers. IDBI
has taken its possession as per the
guarantor condition.
54. The company carried the opening balances for all its international projects as the latest
information is not available on account of termination/ closure of the respective project offices.
55. The Hon'ble Bombay High Court had
directed by the order dated November 29,
2016 in case of Litostroj Power (applicant)
to deposit ? 237.08 Million along with
interest accrued thereon in a separate
account and accordingly it was deposited in
SBI-CAG Branch, Hyderabad.
Subsequently, Hon'ble Bombay High Court
by its order dated 15th January 2020
directed to transfer the deposit of ? 237.08
Million along with interest accrued thereon
to the Hon'ble Bombay High Court. No
accounting adjustments have been made
relating to such transfer of FD in the books
of accounts as the matter is sub-judice
before NCLAT. The next hearing date will
be June 12,2024.
56. The management believes that no impairment assessment required in respect of tangible and
intangible assets.
57. The company has not filed GST returns for
Rajasthan Region with effect from April
2023 due to suspension of IVRCL Limited
GST registration in Rajasthan by the GST
authorities stating the reason that IVRCL
Limited is under Liquidation and advised to
obtain fresh registration. The turnover from
Rajasthan region during the period from
The company has not filed GST returns for
Karnataka Region with effect from July
2023 due to suspension of IVRCL Limited
GST registration in Karnataka by the GST
authorities stating the reason that IVRCL
Limited is under Liquidation and advised to
obtain fresh registration. The turnover from
Karnataka region during the period from
April 2023 to March 2024 is Rs. 2663 Lakhs
and the GST is Rs. 479 Lakhs. Input tax
credit from the subcontractors is at Rs.461
Lakhs. The penal interest on the GST
liability will be around Rs. 35 lakhs and fee
for delay filing will be Rs.0.18 Lakhs until
March31, 2024.
July2023 to March 2024 is Rs. 1490 Lakhs
and the GST is Rs. 138 Lakhs. Input tax
credit from the subcontractors is at Rs.132
Lakhs. The penal interest on the GST
liability will be around Rs. 0.24 lakhs and
fee for delay filing will be Rs.0.10 Lakhs
until March31, 2024
58. During Financial year 2023-24 under review Rs.198.90 Million of construction expenses incurred
for the period from September 2022 to August 2023 at Indira Sagar project Phase- III has been
accounted as balance cost to complete and the details are below:
60 Financial Instruments
60.1 Capital Risk Management
The Company manages its capital to ensure that the Company will be able to continue as
going concern while maximising the return to stakeholders through optimisation of debt and
equity balance. The Company is not subject to any externally imposed capital requirements.
The capital structure of the Company consists of net debt (borrowings as detailed in Notes 23
and 14 & 15 offset by cash and bank balances) and total equity of the Company. Equity
consists of equity capital, share premium and all other equity reserves attributable to the
equity holders.
The Company manages its capital structure and makes adjustments in light of changes in
economic conditions and the requirements of the financial covenants.
60.2 Financial Risk Management
The Company's principal financial liabilities comprise loans and borrowings, trade and other
payables. The main purpose of these financial liabilities is to finance and support the
Company's operations. The Company's principal financial assets comprise investments, cash
and bank balance, trade and other receivables.
The Company is exposed to various financial risks such as market risk, credit risk and liquidity
risk. The financial risks are identified, measured and managed in accordance with the
Company's policies and risk objectives.
a) Market Risk
The Company's activities expose it primarily to the financial risk of changes in foreign
currency exchange rates and changes in interest rates. There have been no changes
to the Company's exposure to market risk or the manner in which it manages and
measures the risk in recent past.
Market risk is the risk that the fair value of future cash flows of a financial
instrument will fluctuate because of changes in market prices. Market risk comprises
two types of risk: interest rate risk and currency risk. Financial instruments affected
by market risk include borrowings and bank deposits.
i. Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial
instrument will fluctuate because of changes in market interest rates. The
Company's exposure to the risk of changes in market interest rates is limited as
the Company's borrowing bear fixed interest rate.
ii. Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of an
exposure will fluctuate because of changes in foreign exchange rates. The
Company's exposure to the risk of changes in foreign exchange rates relates
primarily to the Company's borrowings. The Company's foreign currency risks
are identified, measured and managed at periodic intervals in accordance with
the Company's policies. For details of un-hedge foreign currency refer Note-65
of the note.
b) Credit risk
Credit risk is the risk that counterparty will default on its contractual obligations
resulting in financial loss to the company. The Company has adopted a policy of only
dealing with creditworthy customers.
Credit risk on trade receivables and unbilled work-in-progress is limited as the
customers of the Company mainly consist of the government promoted entities
having a strong credit worthiness. For other customers, the Company uses a
provision matrix to compute the expected credit loss allowance for trade receivables
and unbilled work-in-progress. The provision matrix takes into account available
external and internal credit risk factors such as credit ratings from credit rating
agencies, financial condition, ageing of accounts receivable and the Company's
historical experience for customers.
At March 31, 2024, the company did not consider there to be any significant
concentration of credit risk, which had not been adequately provided for. The
carrying amount of the financial assets recorded in the financial statements, grossed
up for any allowances for losses, represents the maximum exposure to credit risk.
c) Liquidity risk
The Company manages liquidity risk by maintaining adequate reserves and banking
facilities, by continuously monitoring forecast and actual cash flows and by matching
the maturity profiles of financial assets and liabilities for the Company. The Company
has established an appropriate liquidity risk management framework for it's short¬
term, medium term and long-term funding requirement.
The table below summarizes the maturity profile of the Company's financial assets
and financial liabilities based on contractual undiscounted payments:
61 Fair Value measurement
The fair value of the financial assets are included at amounts at which the instruments could
be exchanged in a current transaction between willing parties other than in a forced or
liquidation sale.
The following methods and assumptions were used to estimate the fair value:
(a) Fair value of cash and short-term deposits, trade and other short-term receivables, trade
payables, other current liabilities, approximate their carrying amounts largely due to the
short-term maturities of these instruments.
(b) Financial instruments with fixed and variable interest rates are evaluated by the Company
based on parameters such as interest rates and individual credit worthiness of the
counterparty. Based on this evaluation, allowances are taken to account for the expected
losses of these receivables.
78 Standalone financial statements include:
Financial Statement of 3 joint ventures included in standalone financial statement, whose
financial result reflects the company's share in net Loss of joint venture aggregating to Rs 1.64
million for the year ended March 31, 2024. 28 joint ventures were not considered in
standalone financial statement. In our opinion the Management, these financial statements, in
aggregate, are not material to the Company.
In absence of the Board of Directors, the Liquidator is approving these statements for the
purposes of compliance with the provisions of the Companies Act, 2013 and on the basis of
representation by the key managerial personnel (KMP) of the Company and others regarding
authenticity or veracity of the information provided in the financial statements. Approval of the
Liquidator and affixing of signature on these statements by the Liquidator should not be
construed as endorsement or certification by the Liquidator of any facts or figures provided
herein.
Definition: Current Ratio=Current Assets/Current Liabilities, Debt-Equity Ratio=Long Term Debt/Total
Equity, Debt Service Coverage Ration = Earning available for debt service/Debt service, Earning for Debt
Service=Net Profit after taxes Non-cash operating expenses like depreciation and other
amortizations Interest other adjustments like loss on sale of fixed assets etc., Return on Equity
(ROE): Net Profits after taxes - Preference Dividend (if any)/Average Shareholder's Equity, Inventory
Turnover Ratio: Cost of goods sold OR sales/Average Inventory, Average inventory is (Opening
Closing balance / 2), Trade receivables turnover ratio: Net Credit Sales/Avg. Accounts Receivable, Net
credit sales consist of gross credit sales minus sales return. Trade receivables include sundry debtors
and bills receivables. Average trade debtors = (Opening Closing balance / 2). Trade payables
turnover ratio: Net Sales/Working Capital, Net sales shall be calculated as total sales minus sales
returns. Working capital shall be calculated as current assets minus current liabilities. Net profit ratio:
Net Profit/Net Sales, Net profit shall be after tax. Net sales shall be calculated as total sales minus sales
returns. Return on capital employed (ROCE): Earning before interest and taxes/Capital Employed,
Capital Employed = Tangible Net Worth Total Debt Deferred Tax Liability. Return on
investment=Net Profit after tax/Capital Employed. Net Capital Turnover Ratio : Equity Share Capital/
Net Sales, Net sales shall be calculated as total sales minus sales returns.
In terms of our report attached
For CHATURVEDI & CO. LLP For IVRCL Limited
Chartered Accountants
FRN :302137E/E300286
RAJESH KUMAR AGARWA SUTANU SINHA
Partner Liquidator for IVRCL IMITED
Membership No. 058769 IP Registration no. IBBI/IPA-
003/IP-N00020/2017-
18/10167
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