1.4.11 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
A provision is recognised when the Company has a present obligation as a result of 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 determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.
Provisions are discounted to their present values, where the time value of money is material. Where discounting is used, the increase in the provision due to the passage of time is recognized within finance costs.
The principal provisions recognized by the Company are as follows:
Provision for warranty charges:
Provision for warranty is recognized based on an assessment of future claims with reference to past experience.
Provision for Onerous Contracts:
Present obligations arising under onerous contracts are recognized and measured as provisions. An onerous contract is considered to exist where the company has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it.
Arbitration Awards:
Arbitration / Court's awards along with related interest receivable/payable are, to the extent not taken into accounts at the time of initiation, are recognized after it becomes decree. Permanent Machinery of Arbitration, Govt of India, is accounted for on finalization of award by the appellate authority. Interests to/from in these cases are accounted when the payment is probable which the point is when matter is considered settled by management.
Other Provisions:
Other Provisions include Provision for Research & Development, Provision for CSR Activities and Provision for Other Contingency.
Contingent liabilities and claims against the company not acknowledged as debt, and contingent liabilities related to legal proceedings or regulatory matters, including certain guarantees, are not recognised in the financial statements. However, these are disclosed unless the probability of settlement is remote.
Contingent Liabilities are disclosed on basis of judgment of management after a careful evaluation of facts and legal aspects of matter involved.
Contingent Assets are disclosed when probable and recognised when realization of income is virtually certain.
1.4.12 OTHER INCOME
Interest, Dividend and Rental income
Interest income is reported on an accrual basis using the Effective Interest Rate method (EIR). Interest income on mobilisation advances/financial assistance given to contractors recoverable in short term is recognised using simple interest method which approximates the effective interest rate.
Interest income on bank deposits held on behalf of client is netted off from interest payable to client on such deposits.
Dividend income is recognised at the time the right to receipt is established.
Other items of income are recognised in the statement of profit and loss when control of respective goods or service has been transferred to customer.
1.4.13 INVESTMENT PROPERTY Recognition
Investment Properties are stated at their cost of acquisition. The cost comprises purchase price, borrowing cost, if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discount and rebates are deducted in arriving at the purchase price.
Subsequent Measurement (Depreciation)
Depreciation on Investment Property is charged on straight line method either on the basis of rates arrived at with reference to the useful life of the assets evaluated by the Committee consisting of Technical experts and approved by the Management or rates are arrived at based on useful life prescribed under Part C of Schedule II of the Companies Act, 2013. The following useful lives are applied:
When an asset is acquired or added during the financial year, depreciation is charged based on the Proportionate number of days the asset is available for use within that financial year.
The residual values, useful lives and methods of depreciation of investment properties are reviewed at each financial year end and adjusted prospectively, if appropriate.
De-Recognition
An item of Investment Property and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is derecognised.
1.4.14 CASH AND CASH EQUIVALENTS
Cash and Cash Equivalents comprise Cash in hand, Balances in Bank Account, Remittance in Transit, Cheques in hand and Demand Deposits, together with other short-term, highly liquid investments (original maturity less than 3 months) that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.
1.4.15 EQUITY, RESERVES AND DIVIDEND PAYMENTS
Share capital represents the nominal value of shares that have been issued. Any transaction costs associated with the issuing of shares are deducted from retained earnings, net of any related income tax benefits.
Other components of equity include Other Comprehensive Income (OCI) arising from actuarial gain or loss on re-measurement of defined benefit liability and return on plan assets.
Retained earnings include all current and prior period retained profits. All transactions with owners of the parent are recorded separately within equity. Annual dividend distribution to shareholders is recognised as a liability in the period in which the dividend is approved by the shareholders. Any interim dividend paid is recognised on approval by Board of Directors. Dividend payable and corresponding tax on dividend distribution is recognised directly in equity.
1.4.16 INTANGIBLE ASSETS Recognition
Intangible assets are initially measured at cost of acquisition thereof. The cost comprises purchase price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discount and rebates are deducted in arriving at the purchase price.
Subsequent Measurement (Amortization)
Amortization on Intangible Assets is charged on the straight line method on the basis of rates arrived at with reference to the useful life of the assets evaluated and approved by the Management.
When an asset is acquired or added during the financial year, depreciation is charged based on the Proportionate number of days the asset is available for use within that financial year.
De-recognition
An item of Intangible Asset or any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement of Profit and Loss Account when the asset is derecognized.
1.4.17 LEASES
Company as a Lessee
At inception of a contract, the company assess whether the contract is, or contains, a lease.
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
Recognition:
1. “Right of Use (ROU) Asset":
At the commencement date, the company recognizes a right-of-use asset and a lease liability, except:
a. For lease with a term of twelve months or less (Short term leases) and,
b. Leases for which the underlying asset is of low value
For short term lease and assets of low value the company recognizes the lease payments as an operating expense on a straight-line basis over the term of lease.
2. “Lease Liability"
At the commencement date, the company measures the lease liability at the present value of the lease payments that are not paid at that date.
The lease payments are discounted using the effective interest rate.
Subsequent measurement
1. “Right of Use (ROU) Asset":
After the commencement date, the company measure the right-of-use asset at cost less any accumulated depreciation and is subject to impairment losses.
2. “Lease Liability"
After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is any reassessment or modification.
The residual values, useful lives and methods of depreciation of right of use are reviewed at each financial year end and adjusted prospectively, if appropriate
De-Recognition
A right of use assets initially recognised is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognistion of the right of use assets (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement of Profit and Loss account when the right of use asset is derecognized.
Company as a Lessor
Operating lease
Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Assets leased out under operating leases are recognized & presented according to the nature of the underlying asset.
Rental income is recognized on straight-line basis over the lease term except where scheduled increase in rent compensates the Company with expected inflationary costs.
1.4.18 NON CURRENT ASSETS HELD FOR SALE
Non-current assets and disposal groups are classified as held for sale if their carrying amount is intended to be recovered principally through a sale (rather than through continuing use) when the asset (or disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sale of such asset (or disposal group) and the sale is highly probable and is expected to qualify for recognition as a completed sale within one year from the date of classification.
Non-current assets and disposal groups classified as held for sale are measured at lower of their carrying amount and fair value less costs to sell. The determination of fair value less costs to sell includes use of management estimates and assumptions.
Non-current assets are not depreciated or amortized while they are classified as held for sale.
1.4.19 LIQUIDATED DAMAGES
Liquidated Damages / Compensation for delay in respect of clients/ contractors, if any, are accounted for when payment is probable which is the point when matter is considered settled by management.
1.4.20 PRIOR PERIOD EXPENDITURE INCOME
Expenditures / Incomes relating to prior periods and considered not material has been accounted for in the respective head of accounts in the current year.
1.4.21 SIGNIFICANT MANAGEMENT JUDGEMENT IN APPLYING ACCOUNTING POLICIES AND ESTIMATION UNCERTAINTY
Financial Statements are prepared in accordance with GAAP in India which require management to make estimates and assumptions that affect the reported balances of assets, liabilities and disclosure of contingent liabilities at the date of the financial statements and reported amounts of income & expenses during the periods. Although these estimates and assumptions used in accompanying Financial Statements are based upon management's evaluation of relevant facts and circumstances as of date of Financial Statements which in management's opinion are prudent and reasonable, actual results may differ from estimates and assumptions used in preparing accompanying Financial Statements. Any revision to accounting estimates is recognized prospectively from the period in which results are known/ materialize in accordance with applicable Indian Accounting Standards.
Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below.
SIGNIFICANT MANAGEMENT JUDGEMENT
The following are Significant Management Judgements in applying the Accounting Policies of the Company that have the most significant effect on the Financial Statements:
Recognition of Deferred Tax Assets - The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the Company's future taxable income against which the deferred tax assets can be utilized.
Evaluation of indicators for Impairment of Assets- Significant judgements are involved in evaluation of applicability of indicators of impairment of assets which requires assessment of several external and internal factors which could result in deterioration of recoverable amount of the assets. These indicators may include significant financial difficulty of the issuer or debtor, default or delinquency in payments, significant adverse changes in the technological, market, economic, or legal environment, among others.
Property, Plant and Equipment - Management assess the remaining useful lives and residual value of property, plant and equipment and believes that the assigned useful lives and residual value are reasonable.
ESTIMATION UNCERTAINTY
Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below.
Revenue Recognition- Where revenue contracts include deferred payment terms, the management determines the fair value of consideration receivable using the expected collection period and interest rate applicable to similar instruments with a similar credit rating prevailing at the date of transaction.
Recoverability of Advances/ Receivables- The Project heads, Zonal heads and Regional/Strategic Business groups from time to time review the recoverability of advances and receivables. The review is done at least once in a financial year and such assessment requires significant management judgement based on financial position of the counter-parties, market information and other relevant factors.
Defined Benefit Obligation (DBO) - Management's estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation, medical cost trends, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may impact the DBO amount and the annual defined benefit expenses.
Contingencies- Management judgement is required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.
Provisions for Warranties- Management's estimate of the warranties is based on engineering estimates and variation in these assumptions may impact the provision amount and the annual warranty expenses.
Liquidated Damages- Liquidated Damages receivables are estimated and recorded as per contractual terms; estimate may vary from actual as levied on contractor.
# The company in its board meeting dated August 11, 2018 decided to close the subsidiary companies viz. NBCC International Limited and NBCC Environment Engineering Limited. The company has received approval of its administrative Ministry i.e. Ministry of Housing and Urban Affairs and DIPAM on March 27, 2019 and May 09, 2019, respectively for the proposed closure by way of merger. Accordingly the company filed a joint application of scheme of merger with the Ministry of Corporate Affairs on December 24, 2020. The Ministry of Corporate Affairs (MCA) heard the matter of merger on January 20, 2022. The company in its Board Meeting dated July 14, 2022, decided to withdraw the application for scheme of Merger from MCA. Accordingly, the respective subsidiary companies in their Board Meeting dated August 01, 2022 decided to initiate the working for closure of the companies through voluntary liquidation. The Board of Directors of both Companies has declared solvency under section 59 of IBC, 2016 in the Board Meeting dated September 13, 2022. Further the Voluntary liquidation of both Companies has been commenced from date of Shareholders approval in AGM i.e. September 26, 2022 of respective subsidiary companies. The Liquidator were appointed for both Companies accordingly.
Liquidator has remitted to NBCC ' 97.69 Lakh & ' 96.29 Lakh for NBCC International Limited & NBCC Environment Engineering Limited respectively against its share capital of ' 100 Lakh each in both the companies, hence, Impairment provision of ' 2.31 lakh & ' 3.71 lakh were made for the shortfall amount against investment in respective subsidiaries during the year ended on March 31, 2023.
Winding-up process by liquidator were completed for NBCC International Limited and an application before Hon'ble NCLT was filed on January 16, 2023 for final dissolution order. The Hon'ble NCLT pronounced order for dissolution of NBCC International Limited on July 05, 2023. Accordingly, the accounting adjustment in respect of said company were carried out and ' 97.69 lakh which was received from NBCC International Limited got adjusted from the Investment and balance amount of ' 2.31 lakh written off and corresponding impairment provision of ' 2.31 lakh made in previous year had also been written back during the year ended on March 31, 2024. (Refer Note No 30 & 38)
Further, winding-up process by liquidator were also been completed for NBCC Environment Engineering Limited and an application before Hon'ble NCLT was filed on January 15, 2023 for final dissolution order. The Hon'ble NCLT pronounced order for dissolution of NBCC Environment Engineering Limited on September 15, 2023. Accordingly, the accounting adjustment in respect of said company has been carried out and ' 96.29 lakh which was received from NBCC Environment Engineering Limited got adjusted from the Investment and balance amount of ' 3.71 lakh written off and corresponding impairment provision of ' 3.71 lakh made in previous year has also been written back during the year ended on March 31, 2024. (Refer Note No 30 & 38)
Note -20 D
The Company has only one class of Equity Shares having a par value of ' 1 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuring Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
Note -20 E
During the year 2016-17, 30,00,00,000 Equity Shares of ' 2/- each were issued as fully paid Bonus Shares with rights pari passu with existing Equity Shares.
Note -20 F
Company has split face value of equity share from ' 10/- each to ' 2/- per share as approved by the shareholders of the Company through postal ballot on June 02, 2016
Company has split face value of equity share from ' 2/- each to ' 1/- per share as approved by the shareholders of the Company through postal ballot on April 05, 2018.
Note -20 G
During the current year, Company has transferred 3657 (P.Y. 14916) number of shares in Investor Education and Protection Fund (IEPF) held by investors pursuant to section 124(6) of The Companies Act, 2013 and the rules notified thereunder whose dividend is unclaimed/unpaid for seven years to a demat account of the Investor Education and Protection Fund (IEPF) Authority.
Note -20 H
Reserves and Surplus
Nature and purpose of Other Reserves Retained Earnings
Retained Earning represent the undistributed profits of the Company.
General Reserve
General Reserve represents the statutory reserve, this is in accordance with Corporate law wherein a portion of profit is apportioned to General Reserve. Under Companies Act, 1956 it was mandatory to transfer amount before a company can declare dividend, however under Companies Act, 2013 transfer of any amount to General Reserve is at the discretion of the Company.
Other Comprehensive Income
Other Comprehensive Income represents balance arising on account of Gain/(Loss) booked on Re-measurement of Defined Benefit Plans and Exchange Difference on translation of foreign operation.
Note - 28B
The Company has adopted Indian Accounting Standard (Ind AS) - 19 on Employee Benefit as under :
Gratuity
The Company has defined benefit gratuity plan. Every employee who has rendered continuous service of five years or more is entitled to get gratuity on superannuation, resignation, termination, disablement or on death in accordance with Gratuity Act 1972. In the year 2017-18, consequent upon the amendment in the Gratuity Act 1972, the maximum limit of Gratuity to be paid to any employee enhanced from ' 10.00 lakh to ' 20.00 lakh. The scheme is funded by the Company and is managed by a separate trust formed in the year 2007-08. The liability for the same is recognised on the basis of actuarial valuation and accordingly transferred to Gratuity Trust. The provision for the year 2023-24 is ' 529.98 lakh {Previous Year '? 498.76 lakh}. The gains/losses on the remeasurement of the assumptions on the Gratuity plan have been recognised in Other Comprehensive Income (OCI).
Earned Leave
The Company has other long term benefit plan for Earned Leave Encashment. Provision for Encashment of Earned Leave equivalent to maximum of 300 days (basic pay plus dearness allowance) is provided at the year end and charged to Statement of Profit & Loss. The liability for the year 2023- 24 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Earned Leave Encashment as on March 31, 2024 is ' 3796.89 lakh {Previous Year ' 3655.40 lakh}.
Sick Leave
The Company has other long term benefit plan for Sick Leave Encashment. The encashment of half pay leave on superannuation will be allowed in addition to encashment of earned leave subject to overall limit of 300 days. The cash equivalent payable for Sick leave would be equal to leave salary as admissible for half basic pay plus dearness allowance and to make up the shortfall in earned leave. No commutation of Sick leave shall be allowed for this purpose. The liability for the year 2023-24 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Sick Leave Encashment as on March 31, 2024 is ' 1370.02 lakh {previous year ' 1432.66 lakh}.
Travelling Allowance on Superannuation
The cumulative liability for Travelling Allowance to be paid to the employees on superannuation (exit) as on March 31, 2024 is ' 37.28 lakh {previous year ' 38.16 lakh} based on actuarial valuation. The gains/losses on the remeasurement of the assumptions on the plan have been recognised in Other Comprehensive Income (OCI).
Post Retirement Medical Benefits (PRMB)
The Company is having a defined benefit plan for Post Retirement Medical Benefits payable to the employees and the retirees of the company. The liability for the year 2023-24 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Post Retirement Medical Benefits as on March 31, 2024 is ' 12180.89 lakh {Previous Year ' 9065.33 lakh}. The gains/losses on the remeasurement of the assumptions on the plan have been recognised in Other Comprehensive Income (OCI).
Pension
The company has implemented pension scheme through NBCC Employees Defined Contribution Superannuation Pension trust under IDA pattern for those employees who have completed 15 years of service in the CPSE and on the regular rolls of the company as on November 26, 2008. The scheme is managed by a separate Trust formed in the year 2012-13 for the purpose.
Company has migrated from Existing NBCC EDCS Pension Scheme to NPS scheme w.e.f. 01st Dec'2021 wherein minimum qualifying service of 15 years is no longer required in accordance with the guidelines of Pay Revision of Board level and below Board level Executives and Non-Unionised Supervisors of Central Public Sector Enterprises (CPSEs) w.e.f. 01.01.2017. The NPS scheme is applicable to all employees except those were superannuated on or before 31st March' 2022. Company is contributing 7.00% of the salary (Basic Pay D.A.) and the NPS is adopted as a defined contribution pension scheme. The contribution for pension amounting to ' 884.65 lakh {Previous Year ' 875.65 lakh} has been paid during the year 2023-24.
Long Service Awards
The Company has introduced a Scheme of Long Service Awards during the Financial Year 2016-17 covering all the Employees below Board Level who are on the regular roll as on September 3, 2016 onwards and completed (i) 25 Years of Service or more (ii) 30 Years of Service or more (iii) 35 Years of Service or more & (iv) 40 Years of Service or more. The company has recognised a liability of ' 201.31 lakh {Previous Year ' 191.38 lakh} during the Financial Year 2023-24 on the basis of Actuarial Valuation.
(ii) Practical Expedients Applied
In applying Ind-AS 116 for the first time, the Company has used the following practical expedients permitted by
the standard:
a) The use of a single discount rate to a portfolio of leases with reasonably similar characteristics.
b) Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than or equal to 12 months of lease term on the date of initial application.
c) The use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease and excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.
d) Applied the practical expedient to grandfather the assessment of transactions lease. Accordingly, Ind AS 116 is applied only to contracts that were previously identified as leases under Ind AS 17.
The Company has total commitment for short-term leases of ' 9.29 lakh as at 31st March, 2024 (' 11.48 lakh as at 31st March, 2023).
Note -47
Disclosure as per Indian Accounting Standard (Ind AS) 108 “Operating Segments"
a) Operating Segments
Management currently identifies the Company's three service lines as its Operating Segments as follows:- Project Management Consultancy (PMC)
- Real Estate
- Engineering, Procurement and Construction (EPC)
b) Segment Revenue & Expenses
Revenue & Expenses directly attributable to the segment is considered as “Segment Revenue & “Segment Expenses".
c) Segment Assets & Liabilities
Segment Assets & Liabilities include the respective directly identifiable to each of the segments.
These Operating Segments are monitored by the Company's chief operating decision maker and strategic decisions are made on the basis of segment Operating Results. Segment performance is evaluated based on the profit of each segment.
Financial Assets and Financial Liabilities measured at fair value in the Balance Sheet are grouped into three Levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement as follows:
• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
• Level 2: The fair value of Financial Instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates.
• Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.
Specific valuation techniques used to value Financial Instruments includes the use of Net Asset Value for Mutual Funds on the basis of the statement received from investee party.
Note -49
Financial Risk Management
The Company's activities expose it to credit risk, liquidity risk and market risk. The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the Financial Statements.
(A) Credit Risk
The Company is exposed to credit risk from its Operating Activities (Primarily Trade Receivables) and from its Financing Activities including Deposits with Banks, Mutual Funds and Financial Institutions and other Financial Instruments.
(i) Credit Risk Management
The Company assesses and manages credit risk of Financial Assets based on following categories arrived on the
basis of assumptions, inputs and factors specific to the class of Financial Assets.
A: Low Credit Risk on financial reporting date
B: Moderate Credit Risk
C: High Credit Risk
In respect of Trade Receivables, the company recognises a provision for lifetime Expected Credit Loss.
Based on business environment in which the Company operates, a default on a Financial Asset is considered when the counter party fails to make payments within the agreed time period as per contract or decided later based upon the factual circumstances on case to case basis. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.
During the current financial year, the company has identified certain debtors where the management has assessed substantial increase in credit risk. Following the prudent accounting practices and as per the accounting policy, the company has made a provision of ' 23862.84 lakh upto March 31, 2023 (Upto March 31, 2023'22414.91 lakh) on the
(B) Liquidity Risk
The Company's principal sources of liquidity are Cash and Cash Equivalents which are generated from Cash Flow from Operations. The Company has no fund based outstanding Bank Borrowings. The Company considers that the Cash Flows from Operations are sufficient to meet its current liquidity requirements.
Maturities of Financial Liabilities
The tables below analyse the Company's Financial Liabilities into relevant maturity groupings based on their contractual maturities. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is insignificant.
(C) Market Risk
The Company's exposure towards Price Risk arises from Investments held and classified in the Balance Sheet either as Fair Value through Other Comprehensive Income or at Fair Value through Profit & Loss. To manage the price risk arising from investments in equity securities, the Company diversifies its portfolio of assets.
Capital Management
The Company's objectives when managing capital are to:
(i) Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and
(ii) Maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt (net debt comprises of borrowings less cash and cash equivalents). Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio.
Note -51
Revenue from Contracts with Customers :
Significant changes in contract Assets and Liabilities :
(a) Contract Liabilities - Deferred Income (Revenue Received in Advance):
Invoicing in excess of revenue recognised is classified as revenue received in advance. Any amount previously recognised as revenue received in advance is recognised to revenue on satisfaction of the performance obligation over the construction period.
LAND BANK
The company is carrying inventory of 16 Lands of ' 69689.70 Lakh for over 8 years. These lands are purchased for Real Estate Development. However, due to slowdown in real estate market, the company has deferred its plans to develop some of the lands. Further following lands are not registered in the name of the company:
(i) Land at Nava Raipur, Chattisgarh
The company has purchased a Group Housing Plot admeasuring 30,436 Sqm. in Naya Raipur from Naya Raipur Development Authority (NRDA) on lease in the year 2014. Company incurred total cost of ' 2195.35 Lakh upto March 31, 2024 (' 2099.37 Lakh upto March 31, 2023). As per the terms of allotment, the lease/conveyance deed shall be executed between the owners association/housing society and NRDA once all the units are sold and all obligations as per the development agreement signed between the company and NRDA are fulfilled. However, the construction on the said land was kept in abeyance. The company has decided for development of land. Accordingly, the Building permission fees and security deposit for RWH has been deposited to the Authority to get the approval. The preliminary fire NOC has also been obtained. Further market survey to explore the market feasibility and demand at the location is being carried out for development of the plot.
(ii) Land at Faridabad
The company purchased a freehold plot admeasuring 16,753.99 Sqm. for group housing in open auction from Municipal Corporation of Faridabad (MCF) in the year 2013. The company has paid full consideration and has taken the possession of land. Company incurred total cost of ' 13178.41 Lakh (Including provision of Stamp Duty) up to March 31, 2024 (' 13178.41 Lakh upto March 31, 2023). The company has been pursuing MCF for execution of lease deed but till date the same has not been executed for want of environment clearance. The company has applied for environment clearance for which obtaining NOC from Forest Department is necessary. Accordingly, the company applied for NOC from Forest department, however the same is denied on the ground that “the criteria for clarification of deemed forests is pending before the Hon'ble Supreme Court and Govt. of Haryana has not identified deemed forests". Company has taken up the matter with Government of Haryana to either issue necessary instructions to Forest Department for issuing of NOC as required for Environmental Clearance or refund the amount paid with interest to company. A meeting between NBCC and MCF Commissioner was held on July 06, 2023 and representation in this regard submitted vide letter dated July 07, 2023 for early resolution and requested to MCF to provide the modalities of further sale of the land parcel on 'as is what is where is basis' as the terms regarding the same are not mentioned in the Allotment letter of the said land parcel.
Further request has also been sent to Commissioner, MCF vide letter dated October 31, 2023 to conduct a joint meeting with Forest Department, MCF and NBCC officials to resolve the long pending issue at the earliest. In this regards, MCF intimated to NBCC vide letter dated January 02, 2024 (received on January 25, 2024) that there is no responsibility for granting NOC by Forest Department and same shall be obtained at NBCC level. In response of said letter of MCF, NBCC has again written a letter dated February 06, 2024 and email dated April 12, 2024 to resolve the issue on priority, response of which is awaited.
The Net Realisable Value of the said land Inventory had deteriorated and the company has made provision of ' 1073.66 lakh towards impairment upto March 31, 2024 (' 1006.41 lakh upto March 31, 2023). Company has reversed impairment provision of ' NIL during FY 2023-24 (P.Y. 2022-23'268.28 lakh on account of increase in Net Realisable Value as per valuation done by IBBI Registered Valuer).
(iia) Land at Plot No. GH-3B, Koval Enclave
The company has purchased a Group Housing Plot admeasuring 5766.84 Sqm. in Koyal Enclave, Ghaziabad in the year 2015. Company incurred total cost of ' 1969.83 Lakh up to March 31, 2024 (' 1969.83 Lakh up to March 31, 2023).
The company has made ' NIL (P.Y. ' 39.47 lakh up to March 31, 2023) provision towards impairment up to March 31, 2024. Company has reversed impairment provision of ' 39.47 lakh during FY 2023-24 (P.Y. 2022-23'116.69 lakh) on account of increase in Net Realisable Value as per valuation done by IBBI Registered Valuer.
(iib) Land at Plot No. 2, Gandhi Path, Jaipur
The company has purchased a Group Housing Plot mix use admeasuring 8594.05 Sqm. in Gandhi Path, Jaipur in the year 2015.Company incurred total cost of ' 12292.07 Lakh up to March 31, 2024 (' 12102.85 Lakh up to March 31, 2023).
The company has reversed impairment provision of NIL during FY 2023-24 (P.Y. 2022-23'359.89 lakh) on account of increase in Net Realisable Value as per valuation done by IBBI Registered Valuer.
Work in progress and completed projects
(iii) NBCC Plaza at Pushp Vihar
The company has undertaken a project for construction of “Additional Shopping cum Car Parking Blocks" in “NBCC Plaza" at Pushp Vihar, New Delhi and has paid a sum of ' 3021.78 Lakh to Land & Development Office (L&DO), Ministry of Housing & Urban Affairs (MoHUA) in the year 2010 as additional premium for availing additional ground coverage (FAR). However, later Municipal Corporation of Delhi (MCD) erstwhile South Delhi Municipal Corporation (SDMC), vide its letter dated May 20, 2015, while approving the building plans subject to compliance of few conditions, demanded additional FAR charges amounting to ' 3224.45 Lakh. The MCD also stayed the construction till the time, said amount is paid to them. Since the company had already deposited the said amount with L&DO, it represented the matter to MCD as well as L&DO, at different forums. During the year 2021-22, MoHUA has informed the company that MCD may only recover charges other than additional FAR charges, if any. MoHUA also directed MCD to release the sanctioned building plan to company at the earliest. However, the MCD is still insisting for payment of additional FAR of ' 3224.45 lakh to sanction building plan. A Joint meeting was held on July 04, 2022 which was attended by all the stakeholders (L&DO, NBCC, DDA & MCD) to deliberate on the issue. It was concluded that MCD should entitled such Additional FAR charges and the amount already paid towards additional FAR charges shall be returned by L&DO to the company so that requisite amount demanded by MCD could be paid. Company has taken up the matter with L&DO to refund the said amount. However, L&DO vide letter dated May 22, 2023 has refused to refund the amount paid by the company. Company has again requested to L&DO vide letter dated May 26, 2023 to settle the matter as additional FAR charges already been deposited with L&DO and additional demand of MCD for ' 3224.45 Lakh shall be dual charging of same component by two different authorities, for the same purpose. Accordingly MCD may be directed to withdraw its demand and release the sanction plan. Further a meeting held on October 11, 2023 between L&DO and management of NBCC to resolve the issue. The company has once again reiterated its request to L&DO in a letter dated April 24, 2024 to settle the matter. However, as of now, a response to this request is still awaited.
In addition to the above, the company has incurred a sum of ' 1718.84 lakh on construction of the project till March 31, 2024 (' 1718.84 lakh upto March 31, 2023). The Net Realisable Value (NRV) of the project had deteriorated and the company has made provision of ' 634.53 lakh towards impairment upto March 31, 2024 (' 643.84 lakh upto March 31, 2023). Company has reversed impairment provision of ' 9.31 lakh during FY 2023-24 (P.Y. 2022-23'250.35 lakh) on account of increase in Net Realisable Value as per valuation done by IBBI Registered Valuer.
(iv) Kochi, Kerala
The company has constructed Group Housing Real Estate project at Kochi, Kerala comprising of 3,20,216 Sq. ft. residential and 4424 Sq. ft. commercial area. The company has incurred a total cost amounting ^ 8722.60 lakh there on upto March 31, 2024 (' 8719.13 lakh upto March 31, 2023). The sale in the project was on hold for want of environmental clearance (EC) and other necessary statutory approvals. However, RERA registration for the project has been received on the basis of available documents. The damage assessment plan has been submitted on November 23, 2022 and case was discussed in 137th SEAC (State Expert Appraisal Committee) meeting held on 24th and 25th January, 2023 for issuing the environmental clearance (EC). SEAC chairman and member also inspected the project site in respect of environmental clearance (EC) on March 31, 2023.
Based on said inspection, SEAC had asked to submit revised EIA along with damage assessment plan through Parivesh portal. The revised damage assessment plan was submitted online and case was considered in 145th SEAC meeting held on June 19, 2023. The minutes of 145th meeting was received on July 03, 2023 wherein the committee has asked to provide some modification in the remediation plan submitted. Accordingly, the revised documents were submitted on Parivesh Portal on July 07, 2023. The project was discussed in 147th SEAC meeting held on July 21, 2023. Minutes of 147th meeting received on August 01, 2023 wherein the SEAC has recommended to grant Environmental clearance for a period of 7 years. Accordingly, Company has made a total provision of ^ 177.19 lakh during the year ended on March 31, 2024 (towards penalty and expenditure etc. required to be incurred in three consecutive years on the activities as per direction from SEAC).
Further, Ministry of Environment, Forest and Climate Change vide OM dated January 08, 2024 announced that, Hon'ble Supreme Court in W.P.(C) No 1394/2023 dated January 02, 2024 titled Vanashakti vs. Union of India, has stayed the operation of both the office memorandum dated July 07, 2021 and January 28, 2022 issued by the Ministry until further orders. As a result of this obtaining of Environmental clearance is on hold till further order. Further, the matter has been heard in the SEIAA meeting held on 29th and 30th January 2024. The Authority (SEIAA) discussed the case in detail and decided to delist the application for time being till further order from Hon'ble Supreme Court and informed the detail to the Project Proponent.
(v) Jackson Gate. Agartala
The company executed a real estate project at Jackson Gate, Agartala in the year 2009 under Joint Operations with Agartala Municipal Corporation erstwhile Agartala Municipal Council (AMC). As the company was unable to sell the constructed area, the substantial portion of the constructed area has been let-out to various Government Organizations. Company is exploring the possibilities to sell the same in consultation with Joint Operator (AMC). The company has incurred a sum of ^ 916.96 lakh upto March 31, 2024 (^ 916.96 lakh upto March 31, 2023).
Occupancy certificate for the project has been issued by Agartala Municipal Corporation on January 09, 2024 and updated certificate issued on February 02, 2024 effective from November 2009. The process for obtaining “as built" drawing has been initiated. The process of completing RERA formalities for sale will be initiated after receipts of “as built" drawing etc from AMC (Joint Operator).
(vi) Group Housing project in Alwar
The company has executed Group Housing project in Alwar with a total cost of ^ 5787.45 Lakh upto March 31, 2024 (^ 5766.21 Lakh upto March 31, 2023). The substantial portion of the project was completed in the year 2018. The company initiated the sale of the project in the year 2014-15. No sale, however, could be effected. The Net Realisable Value of the project has deteriorated and the company has made provision of ^ 737.33 lakh towards impairment upto March 31, 2024 (^ 641.21 lakh upto March 31, 2023). Company has reversed impairment provision of ^ NIL during FY 2023-24 (P.Y. 2022-23 ^ 364.59 lakh on account of increase in Net Realisable Value as per valuation done by IBBI Registered Valuer). The completion certificate of the project has been obtained and accordingly RERA registration/exemption has been initiated by the company. Sale in the project shall be opened after receipt of necessary clearances from RERA.
(vii) Sukheas Lane, Kolkata
Sukheas Lane, Kolkata property is Joint Venture Property with Kolkata Metro Rail Corporation Limited (KMRCL) located in the city centre of Kolkata. The construction on the property is not completed from long time due to pendency of writ Petition no. 833/2014 before Hon'ble High court of Kolkata since the year 2014 challenging the aforesaid land acquisition by KMRCL. The said writ petition filed by M/s Archana Properties was disposed off on January 09, 2020 due to default of non-appearance of petitioners by the Hon'ble High Court of Calcutta. In this regard an IA bearing GA No 3/2021 have been filed by M/s Archana Properties in the matter in March 2021 as per website of Hon'ble High Court of Calcutta. However, the said IA has neither been served nor has any notice been received by company as on date from the Hon'ble High Court of Calcutta. The company has incurred a sum of ^ 549.59 lakh upto March 31, 2024 (P.Y. ^ 549.59 lakh up to March 31, 2023) on this project which are lying since 2014.
(viii) Sector - 37 D, Gurugram
Background of Project & events upto March 31, 2022:
The company developed a residential real estate project at NBCC Green View, Sector - 37 D, Gurugram. The occupancy certificate (OC) of the project was received in the year 2017-18. The complex was partially sold-out and the physical possession of flats, shops and EWS unit were also given to the allottees after receipt of the Occupancy Certificate of the project.
Company has sold 392 units (255 flats, 126 EWS and 11 shops) out of 942 units and had received total amount of ^ 21012.80 lakh out of which ^ 15957.58 lakh were recognised as revenue in the previous years and ^ 4048.57 lakh were booked as advance from Allottees till March 31, 2022.
Subsequently, the buildings in the project exhibited structural cracks. Company received many complaints and representation from some of home buyers. Company appointed IIT Delhi to look into the matters. IIT Delhi vide its report dated October 06, 2021 inter-alia advised that the buildings must be vacated within two months in view of safety of the occupants and further advised to get the feasibility of repairs re-examined.
Thereafter a committee of experts from IIT Roorkee and CBRI Roorkee (Central Buildings Research Institute) was constituted for structural assessment of this project in furtherance to the report of IIT Delhi. This expert committee opined that “No repair/restoration method seems economically viable and safe in the long term. It is recommended to demolish the structure"
Further a review panel of two retired SDG's of CPWD was constituted which also concurred with recommendation given by the expert committee.
In view of the advice from the experts and considering safety of the residents, the buildings were evacuated completely with the help of the District Administration under Disaster Management Act.
The company had taken valuation of the projects from the IBBI registered valuation agencies. As per valuation report of March 31, 2022, the total net realizable value (NRV) of the project was ^ 27040.00 lakhs (on conservative basis). The proportionate NRV pertaining to the unsold portion of the project work out to ^ 20151.64 lakhs. The carrying value of unsold inventory of above project was ^ 30131.46 lakhs. Accordingly, the company had writedown of inventory by ^ 9979.83 lakhs in the year ended on March 31, 2022.
Development during Financial Year 2022-23:
The company in its 513th Board meeting held on June 21, 2022, accorded the approval to settle with all the homebuyers/allottees by way of buyback of their flats/units by paying the total amount received from the allottees against sale of flats/units amounting to ^ 21012.80 lakh and the cost of Stamp duty & registration charges paid by them amounting to ^ 973.73 lakh. Accordingly, the offer letter for buyback of their flats/EWS units/shops was communicated to all homebuyers/allottees through post as well as through mail.
In view of the uninspiring response from the buyers against the first buyback offer of the company, Board in its 522nd meeting held on January 27, 2023 decided to reconsider the same in order to arrive at an amicable settlement. Accordingly, the Board of Directors accorded in principal approval to settle with all the homebuyers/ allottees by way of buyback of their flats/units by paying settlement amount to ' 25609.00 lakh (approx) including cost of Stamp duty & registration charges to homebuyers/allottees as per defined categories. In addition to this ' 1354.00 lakh (approx.) was estimated to be incurred towards cost of Stamp duty & registration charges for execution of title deed of flats/units in the favor of company. Accordingly, the revised offer letter for buyback of their flats/EWS units/shops was communicated to all homebuyers/allottees through post as well as through mail.
In view of the above, and to comply with the provisions of Ind AS 37, the company had made a provision for expected loss of ^ 16060.86 lakh against sale of flats/ units, towards cost of Stamp duty & registration charges for execution of title deed of flats/units in the favor of company at the year ended on March 31, 2023. (Refer Note 39 Exceptional Item).
During Financial year 2022-23, company has spent total amount of ' 812.86 lakh (' 562.00 lakh for buyback of flats/units & ' 250.86 lakh against refund of advance received from allottee). The proportionate Net Realizable Value (NRV) to the units/flats received against this payment was ' 184.98 lakh. Accordingly, inventory amounting to ' 377.02 Lakh has been written down in the year ended on March 31, 2023 (Refer Note 39 Exceptional Item). Further, in addition to this, ' 119.84 lakh were written off from Trade Receivables towards outstanding dues of Maintenance, water and electricity charges from the homebuyers/allottees of the said project for the year ended March 31, 2023 (Refer Note 39 Exceptional Item).
Company had deposited ^ 732.15 lakh for court fees and the said amount has been recorded as expenses in the books of accounts in the year ended on March 31, 2023 (Refer Note 39 Exceptional Items).
Further, As per valuation done by IBBI Registered Valuer of March 31, 2023, the total Net Realizable Value (NRV) of the project was ^ 27475.00 lakh (on conservative basis). The proportionate NRV pertaining to the unsold portion of the project was ^ 20660.80 lakh. Since the carrying value of unsold inventory of above project was ^ 20336.62 lakh. Accordingly, the company has made reversal of write down of inventory by ^ 324.18 lakh in the year ended on March 31, 2023 on account of increase in Net Realisable Value as per valuation done by IBBI Registered Valuer. (Refer Note 11 Inventories & Note 39 Exceptional Item).
Hence, Company recognised total provision/expenses of ^ 16965.69 lakh as exceptional item during financial year 2022-23. (Refer Note 39 Exceptional Item).
Development during Financial Year 2023-24:
In view of the uninspiring response from the buyers against the first & second buyback offer of the company, Board in its 529th meeting held on August 18, 2023 decided to reconsider the same in order to arrive at an amicable settlement. Accordingly, the Board of Directors has accorded in principal approval to settle with all the homebuyers/allottees by way of buyback of their flats/units by paying amount received from them with @ 6.00% per annum simple interest from date of receipt till the approval date i.e. August 18, 2023.
In view of the uninspiring response from the buyers against the first, second and third buyback offer of the company, Board in its 532nd meeting held on January 10, 2024 decided to reconsider the same in order to arrive at an amicable settlement. Accordingly, the Board of Directors has accorded in principal approval to settle with all the homebuyers/ allottees by way of reconstruction of their flats/units.
Meanwhile, National Consumer Disputes Redressal Commission (NCDRC), New Delhi vide its order dated March 05, 2024 in the consumer complaint no. 1128 of 2017 has instructed the company to refund entire amount deposited by the complainants with interest @ 9% per annum from the date of respective deposit till the date of refund and pay each set of allottee ^ 10.00 lakh as exemplary damage, within two months from order date. In view of the above order, Board in its 537th meeting held on April, 27, 2024 has accorded in principal approval to settle with allottees named in said NCDRC Order except those who opted for reconstruction.
Further, In response to the review petition filed by the company, NCDRC vide order dated April 16, 2024 clarified “that the judgment dated March 05, 2024 shall be applicable to all the allottees except those who had settled their dispute".
In view of the above, and to comply with the provisions of Ind AS 37, the company has made total Provision of ^ 13791.02 lakh for Refund of Amount Paid by Allottees for Flats/ Units including Interest and Provision of ^ 5356.95 lakh for Reconstruction of Flats/Units for allottees who opted for the reconstruction option and reversed unutilized provision as was created earlier for buyback of flats/units ^ 14832.92 Lakh during the year ended on March 31, 2024. (Refer Note 39 Exceptional Item).
During the current year company has spent total amount of ^ 3750.35 lakh (^ 3100.22 lakh for buyback of flats/ units & ^ 650.13 lakh against refund of advance received from allottee.
Further, Pursuant to the decision of management for reconstruction of flats/ units, as the project shall not be treated as completed project to be sold on AS IS WHERE IS BASIS, the project is required to be valued at lower of cost or respective NRV (whichever is lower) of land and salvage value of construction portion of unsold units. In view of this, as per valuation done by IBBI Registered Valuer as on March 31, 2024 the NRV pertaining to the proportionate Land inventory is ^15243.63 lakh (Entire land NRV ^ 21015.07 lakh) which is higher than the carrying cost of land ^ 7394.46 lakh. Further, salvage value of construction portion of entire project is ^ 2327.94 lakh against carrying value of said Inventory of ^ 16366.56 lakh. However the company has considered the salvage value of construction portion of entire project as ^ 2325.00 lakh as per valuation dated March 31, 2023 on a conservative basis. Hence, inventory amounting to ^ 14041.56 lakh has been written down during the year ended March 31, 2024. (Refer Note 11 Inventories & Note 39 Exceptional Item).
Hence, Company recognised total provision/expenses of ^ 18356.61 lakh as exceptional item during financial year 2023-24. (Refer Note 39 Exceptional Item).
Legal Cases:
A recovery suit has been filed in the High Court of Delhi, "NBCC (India) Ltd versus Ramacivil India Construction (P) ltd. and ors. Vide CS (Comm.) No. 153 of 2023" for recovery of ^ 75000.00 Lakh in the matter of NBCC Greenview Sec 37D, Gurugram, Haryana.
As on date, there are 22 ongoing litigations before various forums for refund of the amount paid by homebuyers/ allottees along with interest and other compensations and also by contractor for various claims.
However, since the matter is sub judice and is pending at various forums and the costs and liabilities (if any), that may possibly be incurred towards additional interest and other compensations are not ascertainable as on the date, hence, no provision for the same is provided in the year ended on March 31, 2024. (Refer Note No 43(A)(d)). However, claims of homebuyers/allottees and contractor which is sub judice and is pending at various forums amounting of ^ 6619.16 lakh as at March 31, 2024 (March 31, 2023 ^ 6187.20 lakh) has been included in Contingent liability (Refer Note No 43(A)(a)).
Note -56
Other Disclosures
(a) Additional Informations in pursuance to Schedule III Division II is disclosed as under:
(i) The company has not been declared a Wilful Defaulters by any bank or financial institution or consortium thereof in accordance with the guidelines on Wilful defaulters issued by the RBI.
(ii) There are no proceedings initiated or pending against the company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
(iii) The company has not traded or invested in Crypto currency or virtual curreny during the reporting periods.
(iv) The company has neither advanced, loaned or invested fund nor received any fund to/from any person or entity for lending or investing or providing guarantee to/on behalf of the ultimate beneficiary during the reporting periods.
(v) During the Financial year, there is no charge or satisafaction of charge which is yet to be registered with ROC beyond the statutory period.
(vi) During the FY 2023-24 till March 31, 2024 the company has not entered into any scheme of arrangement in terms of sections 230 to 237 of the Companies Act, 2013.
(vii) The company does not have any transaction not recorded in the books of accounts that has been surrendered or not disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
(viii) Pursuant to Rule 2(2)(d) of the Companies (Restriction on number of Layers) Rules, 2017, the requirment of number of layers not applicable to the company.
(ix) The company has not taken any Fund based loan / limit from banks or financial institutions on the basis of security of current assets. Hence, the use of borrowing for specific purpose not applicable to the company.
(b) The major clients of the company are ministries, Government Departments, Government Authorities and Public
Sector Undertakings. The balances of the clients in the nature of Trade Receivables, Loans and Advances, Earnest Money Deposit, Security Deposit and Deposits in the nature of trade receivables classified under current and non current assets; and also the trade payables are subject to confirmation, reconciliation and consequent adjustments. The management does not expect any significant impact upon such reconciliation.
(c) Advance to Ghaziabad Development Authority (GDA) for Land at Koyal Enclave Ghaziabad
The company purchased a land admeasuring 16225.05 Sq. Mtr. at Koyal Enclave from Ghaziabad Development Authority (GDA) in the year 2015. The company has incurred a total cost of ^ 5503.13 Lakh (Including provision for stamp duty). The lease deed and the possession in respect of the above plot have not yet been executed. GDA has demanded a sum of ^ 462.41 Lakh towards infrastructure Charges vide letter No. 2433 dated December 13, 2019. The said demand is not acceptable to the company and in view of the same, the company has requested GDA for cancellation of allotment & refund of entire amount with interest as per the terms of allotment etc. GDA has offered to refund the purchased amount after deduction of the cancellation charges. The company has not accepted the offer of GDA and taken up the matter with higher authorities of Govt. of Uttar Pradesh.
Consequent to opinion taken from The Expert Advisory Committee of Institute of Chartered Accountants of India, the company has presented amount paid to GDA as Advance in Other Current Assets.
(d) The company has acquired a 100% stake in HSCC (India) Limited (HSCC) by paying ^ 28500.00 lakh to the Government of India during FY 2018-19. As of March 31, 2024, the Net Asset Value of HSCC is lower than the carrying amount of the company's investment. The subsidiary has consistently generated profits, paid dividends to the company, and experienced an increase in its Net Asset Value since the acquisition.
Considering the revenue projections, existing order in hand, anticipated future profitability, and the liquidity position, the management is confident that the Net Asset Value of the subsidiary company will improve and eventually match the carrying value of the investment.
(e) The Ministry of Corporate Affairs (“MCA") notified the Companies (Indian Accounting Standards) Amendment Rules, 2023, on March 31, 2023, mandating entities to disclose their material accounting policies instead of their significant accounting policies, effective for annual periods beginning on or after April 1, 2023. In compliance with this amendment, the company evaluated the requirement and disclosed material accounting policies in Note 1, no financial impact from the said amendments.
Note -57
Events After Balance Sheet Date
Proposed Final Dividend ^ 0.63 per share on face value of ^ 1.00 per share for total 18000.00 lakh Number of Equity
Shares (P.Y. ^ 0.54 per share on face value of ^ 1 per share for total 18000.00 lakh Number of Equity Shares) for the
financial year 2023-24 which is subject to approval of shareholders in ensuing annual general meeting of the company.
Note -58
Regrouping / Reclassified
Previous year figures have been regrouped and/or reclassified, wherever considered, necessary to conform to those of the current year grouping and/or classification. Negative figures have been shown in brackets.
As per our Report of even date attached For and on behalf of the Board of Directors
For ASA & Associates LLP
Chartered Accountants
Firm Reg. No: 009571N/N500006
Sd/- Sd/- Sd/-
Nitin Gupta B. K. Sokhey K. P Mahadevaswamy
(Partner) Director (Finance) & CFO Chairman & Managing Director
Membership No. 122499 (DIN : 06955670) (DIN : 10041435)
Sd/-
Deepti Gambhir
Place : New Delhi Company Secretary
Date : May 28, 2024 (FCS : 4984)
| 