(p) Provisions and contingent liabilities:
i. General
A provision is recognised when the Company
has a present legal or constructive obligation as
a result of a past event and it is probable that an
outflow of resources will be required to settle the
obligation, in respect of which reliable estimate can
be made. Provisions are reviewed at each balance
sheet date and adjusted to reflect the current best
estimates.
If the effect of the time value of money is material,
provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used,
the increase in the provision due to the passage of
time is recognised as a finance cost.
ii. Contingent laibilities
A disclosure for contingent liabilities is made
where there is a possible obligation or a present
obligation that may probably not require an
outflow of resources. When there is a possible or
a present obligation where the likelihood of outflow
of resources is remote, no provision or disclosure
is made.
iii. Onerous contracts
Provision for onerous contracts. i.e. contracts
where the expected unavoidable cost of meeting
the obligations under the contract exceed the
economic benefits expected to be received under
it, are recognised when it is probable that an outflow
of resources embodying economic benefits will be
required to settle a present obligation as a result of
an obligating event based on a reliable estimate of
such obligation.
(q) Cash and cash equivalents:
Cash and cash equivalents comprise cash at bank and in
hand and short term investments with original maturity of
three months or less.
(r) Cash flow statement:
Cash flows are reported using the indirect method,
whereby profit / (loss) before extraordinary items and tax
is adjusted for the effects of transactions of non-cash
nature and any deferrals or accruals of past or future cash
receipts or payments. The cash flows from operating,
investing and financing activities of the Company are
segregated based on the available information.
(s) Current and non-current classification:
The Schedule III to the Act requires assets and liabilities
to be classified as either current or non-current.
The Company presents assets and liabilities in the balance
sheet based on current/ non-current classification.
An asset is current when it satisfies any of the following
criteria:
• It is expected to be realised or intended to sold or
consumed in normal operating cycle;
• It is held primarily for the purpose of trading;
• It is expected to be realised within twelve months
after the reporting year; or
• It is Cash or cash equivalent unless restricted from
being exchanged or used to settle a liability for
at least twelve months after the reporting period.
Current assets include the current portion of
non-current financial assets. All other assets are
classified as non-current.
A liability is current when it satisfies any of the following
criteria:
• It is expected to be settled in normal operating
cycle;
• It is held primarily for the purpose of trading;
• It is due to be settled within twelve months after the
reporting year; or
• There is no unconditional right to defer the
settlement of the liability for at least twelve months
after the reporting period.
Deferred tax assets and liabilities are classified as non¬
current assets and liabilities.
(t) Operating cycle:
Operating cycle is the time between the acquisition of
assets for processing and their realization in cash or cash
equivalents. Accordingly, the Company has ascertained
its operating cycle as 12 months for the purpose of current
- non-current classification of assets and liabilities.
(u) Recent accounting pronouncements
Ministry of Corporate Affairs ("MCA”) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. For the year ended March 31,
2025, MCA has notified Ind AS - 117 Insurance Contracts
and amendments to Ind AS 116 - Leases, relating to sale
and leaseback transactions, applicable to the Company
w.e.f. April 1, 2024. The Company has reviewed the
new pronouncements and based on its evaluation has
determined that it does not have any significant impact in
its financial statements.
225.000 (March 31,2024 : 225,000) 6% cumulative redeemable preference shares (CRPS) of Rs. 100 each fully paid-up total
face value of Rs. 2.25 (March 31,2024 : Rs. 2.25) are classified as financial liability (Refer note 16)
3.750.000 (March 31,2024 : 3,750,000) 6% optionally convertible cumulative redeemable preference shares (OCCRPS) of Rs.
100 each fully paid-up total face value of Rs. 37.50 (March 31,2024 : Rs. 37.50) are classified as financial liability (Refer note
16)
(b) Terms/rights attached to equity shares
The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled
to one vote per share. The Company declares and pays dividends in Indian rupees.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts. The distributions are in proportion to the number of equity shares held
by the shareholders.
(c) Restrictions attached to equity shares
As per the Master Restructuring Agreement (MRA) entered into by the Company with its bankers, the promoter’s shareholding
would be retained at a minimum of 26% of issued equity share capital of the Company at any point of time for a maximum
period of four years from the effective date i.e. September 27, 2010. Further vide letter dated September 30, 2015, Infrastructure
Leasing and Financial Services Limited confirmed that the promoters will not, without the prior written consent of the Banks,
dilute its equity holding in the Company below 26% of the paid up equity share capital of the Company.
(d) Terms of preference shares
For rights, preferences and restrictions attached to 6% Cumulative Redeemable Preference Shares (CRPS) and 6% Optionally
Convertible Cumulative Redeemable Preference Shares (OCCRPS) of Rs. 100 each, classified as financial liability, refer note 16.
Preference shares of both classes carry a preferential right as to dividend over equity shareholders. The Company declares
and pays dividends in Indian Rupees. The holder of preference shares are entitled to one vote per share only on resolutions
placed before the Company which directly affect their rights attached to the preference shares. In the event of liquidation of the
Company during the existence of preference shares, the holders of preference shares will have priority over equity shares in the
payment of dividend and repayment of capital.
(e) There were no bonus shares, shares issued for consideration other than cash and shares bought back during the period of five
years immediately preceding the reporting date.
The details regarding terms of borrowings and securities are furnished hereunder based on agreements / documents
available with the Company.
(b) Indian rupee Term loans from banks to the extent of Rs. 34.71 (March 31,2024: Rs. 34.71) carries interest @ 11% p.a.
The loan is repayable in 20 equal quarterly installments commencing from June 30, 2014. These loans are secured by
pari passu first mortgage and charge on the Company’s immovable properties both present and future and pari passu
first charge by way of hypothecation of all the movable assets including movable equipment, machinery spares, tools,
accessories, current assets both present and future except to the extent of assets exclusively hypothecated against
vehicle loans/ finance leased assets from others. The company has defaulted in the repayment of principal and interest.
Further, Indian rupee term loans to an extent of Rs. 44.00 (March 31,2024: Rs. 44.00) carry an interest rate of : 9.85 % to
10.50 % p.a. (March 31,2024 : 9.85 % to 10.50 % p.a.). These loans are repayable in 4 years as per the schedule given
below:
These loans are secured by pari passu first mortgage and charge on the Company’s immovable properties both present
and future and pari passu first charge by way of hypothecation of all the movable assets including movable equipment’s,
machinery spares, tools, accessories, current assets both present and future except to the extent of assets exclusively
hypothecated against vehicle loans/ finance leased assets from others. These loans are additionally covered by letter of
comfort/undertaking support from Infrastructure Leasing and Financial Services Limited. The Company has defaulted in
payment of interest and repayment of principal installment for above term loans.
(c) Vehicle loans from Non-Banking Financial Companies carry interest @ 13.50% to 16.48% p.a. (March 31,2024 : 13.50%
to 16.48% p.a.). These loans are repayable in equated monthly installments over the tenure of 24 months to 60 months
from the date of disbursement of loan. Vehicle loans are secured by hypothecation of vehicles purchased out of the loan
taken. Due to a default in repayment, the lender has repossessed the vehicle, and the Company is currently awaiting the
issuance of a No Objection Certificate (NOC) from the lender.
(d) Secured loans from Infrastructure Leasing and Financial Services Limited, related party amounting to Rs. 721.31 (March
31,2024: Rs. 721.31) carry interest @ 12% to 13% p.a. These loans carry an option to reset the interest rate after every
12 months from the date of first disbursement and 12 months thereafter by giving 30 days clear notice to the Company.
Out of the above, loan to the extent of Rs. 334.79 (March 31,2024 Rs. 334.79) is repayable in three annual installments
of 30%, 30% and 40% after 60 months from the date of first disbursement and was secured by way of pari passu pledge
of investments in preference shares of Bangalore Elevated Tollway Private Limited, during the year, the the pledge got
released and preference shares has been redeemed, sharing of charge with IL&FS Financial Services Limited on a pari
passu basis on the equity shares of Gautami Power Limited and Pass Through Certificates issued by Maytas Investment
Trust with IL&FS Financial Services Limited and negative lien on sub-ordinate loan given to Bangalore Elevated Tollway
Private Limited. Out of the above, loan of Rs. 153.07 (March 31, 2024 : Rs. 153.07) is additionally secured by second
charge on Inter-Corporate Deposits given to Hill County Properties Limited (HCPL) along with accumulated interest
thereon and second charge on loans given to and equipment hire charges receivable from Terra Infra Limited along with
accumulated interest thereon.
Loan to the extent of Rs. 266.00 (March 31, 2024 : 266.00) is repayable in three annual installments of 30%, 30%
and 40% after 36 months from the date of first disbursement and secured by second charge on Inter Corporate
Deposits of Rs. 343.78 provided by the Company. Of these, loan of Rs. 196.00 (March 31, 2024 : 196.00) is
additionally secured by way of second charge on net receivables from a road project to the extent of Rs. 40.00.
Loan to the extent of Rs. 40.00 (March 31,2024 : Rs. 40.00) is repayable in three annual installments of 30%, 30% and
40% after 36 months from the date of first disbursement and secured by way of hypothecation on second charge basis
of the Loans and Advances (including interest accrued) provided by the Company to Cyberabad Expressway Limited &
Pondicherry Tindivanam Tollway Limited and investment in Maytas Infra Saudi Arabia Company (Limited Liability Company).
Loan to the extent of Rs. 80.52 (March 31,2024 : Rs. 80.52) is repayable in three annual installments of 30%, 30% and
40% after 36 months from the date of first disbursement and secured by way of second charge on current assets of the
Company. Out of the above, loan to the extent of Rs. 38.50 (March 31,2024 : Rs. 38.50) is additionally secured by way
of second charge on fixed assets of the Company. The Company has defaulted in payment of interest and repayment of
principal installment for above loans."
(e) Secured loans from IL&FS Financial Services Limited, related party amounting to Rs. 128.40 (March 31, 2024 : Rs.
128.40) the terms of which are as follows:
(i) Loan to the extent of Rs. 80.40 (March 31,2024 : Rs. 80.40) carries interest @ 13% p.a. compounded on an annual
basis and also carries an option to reset the interest rate after every 12 months from the date of first disbursement
and every 12 months thereafter by giving 30 days clear notice to the Company. Loan is repayable in three annual
installments of 30%, 30% and 40% after 36 months from the date of first disbursement. The Company has defaulted
in payment of interest and repayment of principal installment for above loans.
(ii) Loan to the extent of Rs. 48.00 (March 31, 2024 : Rs. 48.00) carries interest @ 13% p.a linked to variation in
IFIN benchmark rate of 16% p.a. and is repayable at the end of 36 months from the date of first disbursement.
Loan of Rs. 80.40 (March 31, 2024 : Rs. 80.40) was secured by way of pari passu pledge of investments in
preference shares of Bangalore Elevated Tollway Private Limited, during the earlier year the pledge got released
and preference shares has been redeemed, sharing of charge with Infrastructure Leasing and Financial Services
Limited on a pari passu basis on the equity shares of Gautami Power Limited and Pass Through Certificates issued
by Maytas Investment Trust and negative lien on sub-ordinate loan given to Bangalore Elevated Tollway Private
Limited. Further, Rs. 48.00 carries same security for which charge is yet to be created (refer Note 55(iii)). The
Company has defaulted in payment of interest and repayment of principal installment for above loans."
(f) Secured Loan from IL&FS Airports Limited (w.e.f June 19, 2018 assigned from Bhopal e-Governance Limited), related
party of Rs. 30.60 (March 31, 2024 : Rs. 30.60) carries interest @ IFIN benchmark rate (16% p.a. currently) 0.25%
p.a. This loan is repayable at the end of 36 months from the date of first disbursement and is secured by Second Pari
Passu charge by hypothecation of the present and future current assets of the borrower (including but not limited to book
debts, operating cash flows, receivables, loans and advances, deposits, investments, commission and revenues of
whatsoever nature and whenever arising), created from the proceeds of facility and providing a cover of 1.0 x at all times
during the facility. During the earlier years, as per the Assignment and Novation Agreement dated June 19, 2018, loans
from Bhopal e-Goverance Limited has been has unconditionally and irrecovacbly transferred, assignsed and conveyed
to IL&FS Airports Limited with all the right, title and interest together with all its security interest in the above loan facility.
The Company has defaulted in payment of principal and interest.
(g) Unsecured loan from Infrastructure Leasing and Financial Services Limited, related party of Rs. 933.75 (March 31,2024 :
Rs. 933.75) carries interest @ 12% p.a. which is payable quarterly in arrears. Loan is to be repaid at the end of 24 months
from the date of first disbursement. The Company has defaulted in payment of interest and repayment of principal
installment for above loans.
(h) Unsecured loan from Rohtas Bio Energy Limited, related party of Rs. 62.00 (March 31,2024 : Rs. 62.00) carries interest
at prevaling IFIN Benchmarking rate which is currently 16% p.a. which is payable quarterly in arrears. Loan is to be repaid
at the end of 24 months from the date of first disbursement. The Company has defaulted in payment of principal and
interest.
(i) Unsecured loan from RIDCOR Infra Projects Limited of Rs. 20.00 (March 31, 2024 : Rs. 20.00) carries interest ranging
from @ 16% p.a. which is payable quarterly in arrears and the interest rate, as stated above, will be linked to IFIN
Benchmark rate (IBMR) which is currently at 16% p.a., i.e., at prevailing IBMR, and would vary to the extent of variation in
IBMR. Loan is to be repaid at the end of 24 months from the date of first disbursement. The Company has defaulted in
payment of principal and interest. During the year, the loan has been assigned to IL&FS Financial Services Ltd.
(j) Terms of 6% cumulative redeemable preference shares
On December 06, 2010, the Company had allotted 5,749,500 6% CRPS of Rs. 100 each fully paid as per the terms of
MRA entered with Bankers. CRPS carry cumulative dividend of 6% p.a. The Company had further allotted 236,280 CRPS
of Rs. 100 each as fully paid bonus shares to the holders of initial CRPS in the ratio of 1:24.33 (i.e. one fully paid CRPS of
Rs. 100 each for every 24.33 CRPS held) on September 29, 2011. The aforesaid CRPS were redeemed on the due date
i.e., March 31,2015.
The Company had also allotted 1,500,000 CRPS to the holders of OCCRPS on September 29, 2011 as fully paid bonus
shares in the ratio of 1:16.67 i.e. (one fully paid CRPS of Rs. 100 each for every 16.67 OCCRPS held). The redemption
schedule of these bonus CRPS is - 30% on September 30, 2012; 15% each on September 30, 2013 and September 30,
2015; 20% each on September 30, 2014 and September 30, 2016. The 30% bonus CRPS (450,000 CRPS of Rs. 100 each)
which were due for redemption on September 30, 2012 were purchased by IL&FS Trust Company Limited (ITCL), being
the Trustee of Maytas Investment Trust (MIT), on September 29, 2012. The Company had extended the redemption period
of these preference shares by a period of 3 years with an early redemption right with the Company before the extended
period of 3 years by giving 30 days notice period to the shareholders. These shares have been redeemed on September
30, 2015. The 15% Bonus CRPS (225,000 CRPS of Rs. 100 each) which were due for redemption on September 30, 2013
were purchased by ITCL being the Trustee of MIT, on September 30, 2013. The Company has extended the redemption
period of these preference shares by a period of 6 years with an early redemption right with the Company before the
extended period of 6 years by giving 30 days notice period to the shareholders. The 20% Bonus CRPS (300,000 CRPS
of Rs. 100 each) which were due for redemption on September 30, 2014 were redeemed by the Company on March 23,
2015, as per the terms of the issue, as amended. The 15% bonus CRPS (225,000 CRPS of Rs.100 each) which were due
for redemption on September 30, 2015, have been redeemed on due date. The 20% bonus CRPS (300,000 CRPS of RS.
100 each) which were due for redemption on September 30, 2016 were redeemed by the Company on March 28, 2017,
within the extended period for redemption granted by CRPS holders. The Company has defaulted in the redemption of
these CRPS to the extent of 225,000 CRPS of Rs. 100 each which were due for redemption on Septermber 30, 2019 (refer
Note 50)
30. Going Concern
The Company has accumulated loss of Rs.3,600.37 as at March 31,2025 (as at March 31,2024: Rs. 3,595.44). The Company
has loss of Rs. 5.04 for year ended March 31,2025 (Loss for the year ended March 31,2024 Rs.77.47 ). The Company’s net
worth is fully eroded and the current liabilities exceed its current assets by Rs.3,804.62 as at the reporting date. Existing projects
being executed by the Company are nearing completion / or approaching their end of term, which resulted in significant
reduction in the Company’s operations over the past three years. The Company has continued to default in payment of various
loans to the lenders of the Company, including borrowings from promoter group entities.
As part of its initiaives for resolution of IL&FS Group, the Reconstituted Board of Directors of IL&FS in their reports to National
Company Law Tribunal (“NCLT”) categorized the Company under the Group "Red" implying that the Company is unable to
meet its contractual, statutory and debt obligations. the National Company Law Appellate Tribunal (“NCLAT”) by way of its order
on October 15, 2018 (“Interim Order”) in the Company Appeal (AT) 346 of 2018, after taking into consideration the nature of
the case, stayed certain coercive and precipitate actions against IL&FS and its group companies including the Company. The
NCLAT vide its Judgement dated March 12, 2020 accepted the resolution process and revised resolution framework, including
October 15, 2018 as date of initiation of resolution process of IL&FS Group entities, (including the Company) and crystallization
of claims as of that date i.e. cut-off date with no interest, additional interest, penal charges or other similar charges to accrue
after the said cut-off date. Accordingly, the Company is currently not settling liabilities existing prior to October 15 2018, being
the cutoff date to its Financial Creditors and the Operational Creditors.
Adverse developments in promoter group entities impacted the operations of the company and also resulted in cancellation/
termination/suspension/foreclosure of certain contracts with customers. The Reconstituted Board and the management of the
Company have taken various steps to continue the operations at present level during the period as per the resolution process
framework accepted by the Hon’ble NCLAT
In line with the said framework, the Reconstituted Board is in the process of finalizing a comprehensive approach to manage the
current situation including sale of existing equity share holding by IL & FS Group. In this process, the Reconstituted Board, as
part of resolution process for the Company, has invited expression of interest for acquiring the equity stake in the Company. In
January 2022, a bid had been received from an unincorporated Consortium which was subjected to challenge through counter
bid under a Swiss Challenge method. The successful bid was submitted to the Committee of Creditors (CoC) for approval and
has been duly approved by the CoC during the year. The bid will now be placed before Justice D.K. Jain (Retd.) for approval,
followed by submission to the National Company Law Tribunal (NCLT)
The ability of the Company to continue as going concern is solely dependent on positive outcome of resolution process
initiated by the Reconstituted Board which would restructure the debt and resume normal operations. Fiancial statements for
the year have been prepared on a going concern basis considering the status of the resolution process and steps taken by the
Reconstituted Board.
**The demands raised by the Sales Tax authorities and Central Excise and Service Tax authorities are mainly towards
enhancement of taxable turnover due to certain disallowances, change in classification of services provided by the
Company, interpretation of the provisions of the Acts etc.
#Excludes Rs. 6.52 (March 31,2024: Rs. 6.52) where it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation. All these cases are under litigation and are pending with various
authorities, and the expected timing of resulting outflow of economic benefits cannot be specified.
(iv) As fully explained in Note 30 and 31(v), adverse developments within the promoter group entities have significantly
impacted the Company’s operations. As a result, certain contracts with customers have been cancelled, terminated,
suspended, or are under discussions for foreclosure, leading to disputes and litigation. The management of the
Company is actively engaged in discussions with the customers to seek settlements and reconciliations regarding these
disputes. Diligent efforts are being made to achieve amicable resolutions and settlements with the involved parties.
The adjustments, if any, arising from these terminated contracts is contingent upon the completion of settlements and
reconciliations by the customers and cannot be determined at this stage.
(v) Investigations etc by the Regulatory / Investigative Agencies:
Consequent to adverse developments at Infrastructure Leasing and Financial Services Limited (“IL&FS”) and IL&FS
group level, the Central Government has reconstituted Board of directors as stated in earlier years. Various regulatory
authorities and investigative agencies have initiated their proceedings and are seeking information from the Company as
part of their investigations since 2018-19 onwards. The Company and the present management are cooperating with the
respective authorities and submitting the information as sought from time to time.
Further, as per the directions of the Reconstituted Board of IL&FS, forensic audit by an independent firm was initiated
for select entities including the Company. The forensic auditors submitted their final report relating to the Company in
May 2021 detailing certain potential anomalies in the financial statements and operations of the Company. The report
has been hosted on the Company’s website and also submitted to the stock exchanges, Serious Fraud Investigation
Office (SFIO), etc. Based on the said report, SFIO and Enforcement Directorate sought additional information from the
Company which the Company has submitted from time to time. The adjustments, if any, arising out these investigations
would be known upon completion of investigation process by respective authorities / agencies and hence, are not
determinable at this stage.
32. Commitments:
(a) Capital Commitments:
Estimated amount of contracts (net of advances) remaining to be executed on capital account and not provided for Rs.
Nil (March 31,2024: Nil).
(b) Other Commitments:
i. The Company has made a commitment to make additional investment of Rs. 49.64 (March 31, 2024: Rs. 49.64)
in Maytas Infra Saudi Arabia Company Limited Liability Company. Based on the latest available management
certified financial statements of the aforesaid subsidiary as on March 31,2018, the net worth of the subsidiary is
fully eroded and the Company may have potential obligation to share further liabilities of the said subsidiary, which
is not determinable at this stage.
The Group has not consolidated one subsidiary “Maytas Infra Saudi Arabia Company” in current year and previous
year as the said subsidiary has ceased its operations for a period in excess of three years. As at the year end
the company is not in receipt of any communication from subsidiary to infuse the funds. In view of the adverse
developments and cessation of operations in overseas subsidiary, the company has made an application to
Reserve Bank of India (RBI) seeking approval for write off of investment in subsidiary in the earlier year. Upon
approval by RBI, the company would initiate closure of subsidiaries operations in Saudi Arabia.
33. Segment reporting :
The Company’s operations fall into a single business segment "Construction and Infrastructure Development" and in
accordance with Ind AS 108 - Operating Segments, segment information with respect to geographical segment has been given
in the consolidated financial statements of the Company, therefore no separate disclosure on segment information is given in
these financial statements.
34. Disclosure pursuant to Ind AS 115 “Revenue from Contracts with Customers”
(a) Disaggregation of revenue:
The Company recognises revenue from contracts with customers which includes Government and Non-Government
customers, for construction / project activities over a period of time. During the year substantial part of the Company’s
business has been carried out in India.
The credit period towards trade receivables generally ranges between 30 to 180 days. Further the customer retains
certain amounts as per the contractual terms which usually fall due on the completion of defect liability period
(DLP) of contract. These retentions are made to protect the customer from the Company failing to adequately
complete all or some of its obligations under the contract.
Contract assets are initially recognised for revenue earned from transfer of goods and services but not billed to
customer because the work completed has to meet technical requirements as well as various milestones as set out
in the contract with customers. Upon fulfilling the said requirements and acceptance by the customer, the amounts
recognised as contract assets are reclassified to trade receivables.
A contract liability is the obligation to transfer goods or services to a customer for which the Company has received
advance payments from the customer. If a customer pays consideration before the Company transfers goods
or services to the customer, a contract liability is recognised when the consideration received. Contract liabilities
include advances received from customers towards mobilisation of resources, purchase of materials, etc. and
advance billing.
Impairment losses recognised on contract assets and trade receivables have been disclosed in Note-7 & Note-12.
(ii) Revenue recognised during the year from opening balance of contract liabilities amounts to Rs. 38.16
(c) Reconciling the amount of revenue recognised in the statement of profit and loss with the contracted price
There is no difference in the contract price negotiated and the revenue recognised in the statement of profit and loss for
the current year. There is no significant revenue recognised in the current year from performance obligations satisfied in
previous periods.
(d) Performance obligation
The transaction price allocated to the remaining performance obligations is Rs. 635, which will be recognised as revenue
over the respective project durations. Generally the project duration of contracts with customers is 2 to 5 years.
15. Retirement benefits
(a) Disclosures related to defined contribution plan:
The Company makes contributions, determined as a specified percentage of employee salaries, in respect of qualifying
employees towards Provident fund and Employees’ State Insurance contribution (ESI) , which are defined contribution
plans. The contribution are charged to the Statement of profit and loss as they accrue.
(b) Disclosures related to defined benefit plan:
The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets
a gratuity on departure at 15 days last drawn salary for each completed year of service. The scheme is funded with Life
Insurance Corporation of India.
The present value of the defined benefit obligation and the related current service cost are measured using the projected
unit credit method with actuarial valuation being carried out at the balance sheet date.
45. Capital management
Refer Note No. 30 and 31(v) which states the normal business operation of the Company as they existed under the previous
years have ceased and the Reconstituted Board is undertaking steps for revival and restoration of operation of company. The
Company has defaulted in respect of several of its loan obligations.
The capital structure of the company consist of Net Debt of Rs. 2,568.63 (March 31 2024: Rs. 2,606.09) and total equity of Rs.
(3,184.78) (March 31,2024: Rs. (3,179.75))
46. In the earlier years, pursuant to the Debt Restructuring Programme, the Company had settled an irrevocable trust, namely,
Maytas Investment Trust (Trust). The objective of the Trust was to dispose certain underlying investments held and settle the
liability towards the Pass Through Certificate (PTC), wherein the Company was also a contributory. Value of Investment in the
PTC issued by the Company was Rs. 259.67. Further, the Company has receivables from the investee entities in the form of
loans and advances and investments aggregating to Rs. 101.20.
Based on the valuation reports furnished by external valuers, during the earlier year, the Company has recognised an impairment
of Rs. 259.67 towards diminution in the value of PTC. During the earlier year, due to certain developments that occurred in
the said ultimate investee entity, the Company had recognised an impairment towards diminution in the value of loans and
advances including interest.
Note I: Investments in associate and joint venture have been accounted at historical cost. Since these are scope out of Ind AS 109
for the purposes of measurement, the same have not been disclosed in the tables above. Investments in unquoted equity shares of
enitities other than associates and joint ventures have been designated as FVTPL.
B. Measurement of fair values
(i) Valuation techniques and significant unobservable inputs
The carrying amounts of financial assets and liabilities other than those valued at Level 1 and Level 2 are considered to be the
same as their fair values due to the current and short term nature of such balances and no material differences in the values.
(ii) Levels 1,2 and 3
Level 1 : It includes Investment in equity shares that has a quoted price and which are actively traded on the stock exchanges.
It is been valued using the closing price as at the reporting period on the stock exchanges.
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. If all significant
inputs required to fair value an instrument are observable, the instrument is included in level 2.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.
Fair value hierarchy
The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities.
Financial risk management objective
Refer Note No. 30 and 31(v) which states the normal business operation of the company as they existed under the previous
years have ceased and the reconstituted board is undertaking steps for revival and restoration of operation of company.
Accordingly, the company is in process of setting up mechanism to address risk including market risk, credit risk, liquidity risk,
interest rate risk.
Credit risk
Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the company.
The company is exposed to the credit risk from companie’s receivables from customers, contract assets (Unbilled revenue) and
loans and advances given.
Due to development outline in note no. 31(v) the receivable, contract asset and loans given by the company had been
substantially impaired/written off in previous years.
Liquidity risk
Due to adverse developments involving promoter group entities, the National Company Law Appellate Tribunal (NCLAT) has
imposed a moratorium on the payment of all liabilities that existed as of the cut-off date, i.e., October 15, 2018. Consequently,
the company has ceased servicing its financial obligations to lenders and has not settled dues owed to operational creditors
for the period prior to the cut-off date.
Under the IL&FS resolution framework, the company has been classified as a "Red Entity", indicating its inability to meet both
debt and operational liabilities. The resolution process is currently in progress. Upon successful implementation, it is expected
to significantly improve the company’s liquidity position.
Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
prices. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates,
interest rates, credit, liquidity and other market changes. The Company’s exposure to market risk is primarily on account of
liquidity and other market changes.
• Interest rate risk
The company is exposed to interest rate risk as it borrows funds at both fixed and floating interest rates. Due to the
matters discussed in Note 52, the company has not accrued interest expense post October, 2018. Accordingly, interest
rate sensitivity analysis is not disclosed.
The Company’s exposure to interest rates on financial instruments is detailed below:
• Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in foreign exchange rate. The Company’s presentation currency is the Indian Rupees. The Company’s exposure
to foreign currency arises in part when the Company holds financial assets and liabilities denominated in a currency
different from the functional currency of the entity.
48. In respect of a road project, consequent to arbitration proceedings, the Company has been awarded a favorable Order by the
Arbitration Tribunal for an amount of Rs. 703.31. The contractee has preferred an appeal against the said award in Hon’ble
High Court of Delhi. The carrying values of assets and liabilities relating to the project was Rs.252.63 [net] which comprises of
interest receivable, trade receivable, retention money, mobilization advance and interest payable on said advance. Considering
the favorable Order as at the date of reporting, the said amount of Rs.252.63 is considered good for recovery.
49. Inter-Corporate Deposits:
Prior to April 1, 2009, the erstwhile promoters had given certain Inter Corporate Deposits (ICDs) to various companies
aggregating to Rs. 343.78. Of the foregoing, documentary evidences had been established that, for an amount of Rs 323.78, the
then Satyam Computer Services Limited (SCSL) was the ultimate beneficiary and for which a claim together with compensation
receivable had been lodged by the Company. During the earlier years, SCSL was taken over by Tech Mahindra Limited(TML)
and the name was changed to Mahindra Satyam Limited(MSL). MSL was later merged into TML pursuant to a Scheme of
Arrangement u/s.391-394 of the Companies Act, 1956. As provided in the Scheme and as per the Judgment of Hon’ble High
Court of Andhra Pradesh on the said Scheme, the aforesaid amount in books of SCSL was transferred to TML. The Company,
through its subsidiaries, preferred an Appeal before the Division Bench of Hon’ble High Court of Andhra Pradesh against
the single judge’s Order approving the merger scheme of SCSL which is pending as on date. TML, in its Audited Financial
Statement for the year ended March 31,2023 continued to disclose as "Suspense Account (Net) Rs. 1,230.40" as disclosed by
SCSL earlier. Management is of the opinion that the claim made by the Company on SCSL is included in the aforesaid amount
disclosed by TML in its Audited Financial Statements. The Company is confident of recovering the said ICDs together with
compensation due thereon from SCSL/TML. Further, based on internal evaluation and legal opinion, documentary evidences
available with the Company and in view of the observations of the Special Court in its verdict dated April 9, 2015 on the criminal
case filed by the Central Bureau of Investigation, confirming that an amount of Rs. 1,425 was transferred to SCSL through the
intermediary companies, out of which an amount of Rs. 1,230.40 continues to subsist with SCSL. During the earlier year, the
Company had recognised a impairment of Rs. 323.78 towards diminution in the value of these ICD considering the uncertainty
in recovering the ICDs in future. The Company has filed a case against the Tech-Mahindra and Ors. for recovery of ICD amounts
vide Commercial Suit No. 181/2022 before the Hon’ble High Court of Bombay. Matter is yet to listed for response from other
sides. The matter is at the stage of framing of issues subject to TML’s application for dismissal of Company’s petition as a
Commercial suit under Commercial Courts Act in the Hon’ble Mumbai High Court.
50. Default in redemption of preference shares and dividend thereon:
In the earlier years, the Company has issued 39,75,000, 6% optionally convertible cumulative redeemable preference shares
(OCCRPS) of Rs 100 each, aggregating to Rs. 37.50 and 2,25,000, 6% cumulative redeemable preference shares (CRPS) of
Rs.100 each aggregating to Rs. 2.25 were outstanding as on September 30, 2019. All these OCCRPS were purchased by
ILFS Trust Company Limited (ITCL), now Vistra ITCL India Limited, being the trustee of Maytas Investment Trust. As per various
agreements/extensions, all these OCCRPS were due for redemption as on September 30, 2019. The Company defaulted in the
redemption of these OCCRPS. Further, the Company has also defaulted in payment of dividend payable Rs 15.79.
51. Confirmation of Balances:
As at March 31,2025, fund-based borrowings outstanding aggregates to Rs 2,628.46. These include borrowings from group
entities, aggregating to Rs 2,047.07. The Company neither serviced principal amounts and /or interest payments, wherever
applicable. Adjustments to principal and interest, if any, will be recognized in the year of final settlement.
The Company has not received confirmation of balances for trade receivables from customers and from parties to whom
advances have been made by the Company for supply of services/goods and trade payables. Further, these balances are
subject to reconciliation with respective parties. The management is confident that the settlement of these balances will be
made at the carrying amounts and no provision is required at present. Adjustments for variances, if any will be made in the year
of settlement.
52. Interest Expense:
As detailed in note 31(v), NCLT/NCLAT vide its Judgement dated March 12, 2020 accepted the revised resolution framework
process including October 15, 2018 as date of initiation of resolution process of IL&FS Group entities (including the Company)
and crystallization of claims as of that date i.e. cut-off date with no interest, additional interest, penal charges or other similar
charges to accrue after the said cut-off date.
Pursuant to the above, the Company has not recognized interest expense, which would have otherwise been accrued
and recognized in its financial results in accordance with the applicable Accounting Standards, aggregating to Rs. 451.86
approximately (excluding penal interest etc.) for the year ended March 31, 2025. Aggregate amount of interest expense not
recognized as at March 31,2025 is Rs. 2619.89 approximately (excluding penal interest etc.).
53. Other Statutory Information
(i) There are no proceedings initiated or are pending against the Company for holding any benami property under the
Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.
(ii) The Company does not have any transactions with companies struck off under section 248 of Companies Act 2013 or
Section 560 of Companies Act 1956.
(iii) Apart from the pending charge creations as disclosed under note 16 (e)(ii), the Group does not have any charges or
satisfaction which is yet to be registered with ROC beyond the statutory period. The Company is in the process of filing
the requisite forms with ROC for the registration of said charge.
(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
(vi) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
(vii) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey
or any other relevant provisions of the Income Tax Act, 1961
(viii) The Company has not been declared as a willful defaulter by any bank or financial institution or other lender.
(ix) As a result of the events described in Note 31(v), the Company defaulted in the payment of its dues to its lenders.
Consequently, all the facilities availed by the Company have been classified as NPA and the sanctioned limits have been
recalled by the Lenders. Due to these events, the necessary compliances related to availment of credit facilities are being
done on case to case basis.
Note-A: The Exceptional item represents the arbitration claims accounted for during the year based on arbitration awards
received by the Company.
55. Due to adverse developments within the IL&FS group during the financial year 2018-2019, the Company’s operations have
been significantly impacted since that time. Consequently, certain contracts with customers have been terminated or under
discussions for an amicable foreclosure. The Company is actively engaged in regular and comprehensive review of all its assets
and liabilities specially associated with the terminated and under foreclosure projects. These reviews are being conducted to
assess the net exposure resulting from each terminated or under foreclosure contract. As a result, necessary provisions have
been made in the books based on the net exposure in these contracts.
As of March 31,2025, the amount receivable and payables from such terminated or under foreclosure contracts are reflected
in the Company’s financial statements as follows: Trade receivable (Note 7), Contract assets (Note 12) and Contract liabilities
(Note 19 and 21) include amounts of Rs. 43.04, Rs. 91.97 and Rs. 276.38 respectively.
# As explained in the note no. 52, no interest has been accrued on the debts accordingly, debt service ratio is not disclosed.
*Note - As the networth of the Company is negative, the net debt to total equity ratio, return on capital employed and return on
equity have not been disclosed.
57. All amounts less than Rs. 0.01 have been disclosed as Rs. 0.00.
As per our report of even date
For M Bhaskara Rao & Co. For and on behalf of the Board of Directors of
Chartered Accountants IL&FS Engineering and Construction Company Limited
Firm registration number: 000459S
Sd/- Sd/- Sd/-
M.V. Ramana Murthy Danny Samuel Nand Kishore
Partner Director Non Executive Chairman
Membership No: 206439 DIN: 02348138 DIN: 08267502
Sd/- Sd/- Sd/-
Place: Mumbai Kazim Raza Khan Naveen Kumar Agrawal Rajib Kumar Routray
Date: 28.05.2025 Chief Executive Officer Chief Financial Officer Company Secretary
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