1. Company Overview

M/s. IVRCL Limited (the Company) having its registered office at M-22/3RT, Vijayanagar Colony, Hyderabad-500 057, Telangana India, is a public Company domiciled in India and is incorporated under the provisions of Companies Act applicable in India. The Company is in the business of development and execution of Engineering, Procurement, Construction and Commissioning (EPCC) and Lump Sum Turn Key (LSTK) facilities in various infrastructure projects such as water supply, Roads and Bridges, Townships and Industrial Structures, Power Transmission etc. for Central/State Governments, other local bodies and private sector. The corporate office of the Company is located at MIHIR, 8-2-350/5/A/24/1-B&2, Road no 2, Panchavati Colony, Banjara Hills, Hyderabad- 500 034, Telangana, India.

2. Recent accounting pronouncement

Appendix B to Ind AS 21, Foreign currency transactions and advance consideration:

On March 28, 2018, Ministry of Corporate Affairs ("MCA") has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency.

The amendment will come into force from April 1, 2018. The Company has evaluated the effect of this on the financial statements and the impact is not material.

Ind AS 115- Revenue from Contract with Customers: On March 28, 2018, Ministry of Corporate Affairs ("MCA") has notified the Ind AS 115, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts with customers.

The standard permits two possible methods of transition: Full Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors. Modified Retrospective Approach- Under this approach there will be cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch - up approach). The effective date for adoption of Ind AS 115 is financial periods beginning on or after April 1, 2018. The impact on adoption of Ind AS 115 is expected to be insignificant.

3. Margin money deposit represents deposit with Banks against guarantees issued by them.

4. Unpaid dividend account represents Cash and Cash equivalent deposited in unpaid dividend account and are not available for use by the Company other than for specific purposes. However, the bank has deducted certain bank charges from the unpaid dividend account. The company is in the process of depositing the requisite amount in the unpaid dividend account.

5. The company has entered into share purchase agreement with two buyer Companies for sale of equity shares and Debenture/equity shares on conversion of such debentures into equity respectively on achieving COD of the respective project implemented by such companies. The Company has received equal amount of advance against sale of such investment from the respective buyer companies, such advance is classified under liability held for sale.

* Pledged against the money borrowed by the Company, Subsidiary Companies and Associates. (Refer Note 67)

6. Terms/Rights attached to Equity Shares

The equity shares of the Company having par value of Rs. 2 per share rank pari passu in all respects including voting right and entitlement to dividend. Repayment of the capital in the event of the winding up of the Company will inter alia be subject to the provisions of the Companies Act, 2013, the Articles of the Association of the Company or as may be determined by the Company in general meeting prior to such winding up.

7. During the previous year, 54,214,322 nos. of equity shares were alloted to the lender banks pursuant to scheme of Corporate Debt Restructuring and Stratagic Debt Restructuring by converting the debt amounting to Rs. 833.81 million into equity share capital (including securities premium).

Nature and purpose of reserves

a. Retained earnings: Retained earnings comprise of the profits of the Company earned till date net of distributions and other adjustments.

b. Securities Premium: The amount of difference between the issue price and the face value of the shares is recognized in Securities premium reserve.

c. Capital Reserve: Pursuant to the Composite Scheme of Arrangement under Section 391 to 394 of the Companies Act, 1956 between the Company, IVRCL Assets & Holdings Limited (IVRCL A&H), RIHIM Developers Private Limited (RDPL) and IVRCL TLT Private Limited (IVRCL TLT) and their respective shareholders, which was sanctioned by the Hon'ble High Court of Andhra Pradesh in earlier year, the excess of assets over liabilities has been credited to Capital Reserve.

d. General Reserve: General Reserve is the accumulation of the portions of the net profits transferred by the Company in the past years pursuant to the earlier provisions of the Companies Act, 1956.

e. Debenture redemption reserve: The Company is required to create a debenture redemption reserve out of the profits which are available for payment of divided to be utilised for the purpose of redemption of debentures in accordance with the provisions of the Act.

f. Foreign Exchange Translation Reserve: Exchange difference arising on translation of the foreign operation is accumulated in separate reserve within equity.

g. Other items of other Comprehensive Income: The Company has recognized remeasurement gains/(loss) on defined benefit plans in OCI. These changes are accumulated within the OCI reserve within other equity.

8. The Lenders of the Company had in earlier year approved a Corporate Debt Restructuring Scheme (CDR) with certain reliefs in relation to repayment timelines of loans and accumulated unpaid interest with certain condition w. e. f June 30, 2014. Subsequently, the CDR EG vide meeting dated August 31, 2017 has approved the exit from CDR. As it is, now, a case of failed CDR, the Concesions provided in the CDR Package under the terms of the Master Restructuring Agreement (MRA) are rolled back since cut-off date November 30, 2013. Accordingly, concessions provided as per CDR Package stands withdrawn, reversed and revoked as per the relevant clauses of the MRA. Hence, interest and penal interest has been recalculated with considering the effect of reversed and revoked concessions provided as per CDR and interest and penal interest pertaining to the previous years has represented under the "Exceptional Item".

9. Details of Security

Cash Credits and Working Capital Demand Loan from Consortium Banks

(a) Cash Credit

Cash Credits and Working Capital Demand Loans are secured by hypothecation of book debts, inventories and other current assets (excluding those charged to lenders of specific-funding projects). Further these loans are secured by mortgage of property in Land and Buildings owned by the Company ranking pari passu among the consortium banks aggregating to Rs.101.54 million and lien of the Fixed Deposit of Rs.4.20 million. The loans are Second Charged on current assets of the specific-funding projects on reciprocal basis. Cash Credit of IDBI amounting to Rs.1,754.50 million is further secured by first and exclusive charge on all present and future fixed assets and current assets, except lease rights of the lease hold land of IVRCL TLT Private Limited, a subsidiary of the company.

(b) Working Capital Term Loan

WCTL - I is secured by first paripassu charge on fixed assets excluding the exclusive security given to various lenders book debts beyond the cover period and non-current assets excluding retention money and investments. Second paripassu on entire stocks, book-debts upto cover period, unbilled revenue, retention money and any current assets as per audited balance sheet both present and future.

(c) Priority Debt

Rs.1,226.48 million (Rs.1,217.98 million) has been availed out of Rs.1,750.00 million Priority Debt sanctioned. Priority Debt is secured by first parispassu charge on fixed assets excluding the exclusive security given to various lenders, book debts beyond the cover period and non-current assets excluding retention money and investments. Second paripasssu on entire stocks, book-debts upto cover period, unbilled revenue, retention money and any current assets as per audited balance sheet both present and future.

(d) Term Loans from Banks

(i) ICICI Bank

The loan amount of Rs.1,627.51 million (Rs. 1,659.52 million), is secured by first and exclusive hypothecation charge over specific fixed assets of the Company including freehold land.

(ii) IndusInd Bank

The loan amount of Rs.714.89 millions (Rs. 714.20 million), is secured by equitable mortgage of land and pledge of certain equity shares held in subsidiaries, as per the terms of sanction letter.

(iii) Punjab & Sind Bank

Secured by first and exclusive hypothecation charge over specific fixed assets of the Company. The balance outstanding as at March 31, 2018 is Rs.56.99 million (Rs. 50.55 million), which is overdue.

(iv) AXIS Bank

Out of loan amount of Rs.304.69 million (Rs. 296.50 million), Rs. 46.50 million was secured by specific equipments.

(v) Nova Scotia

The loan amount of Rs. 250.00 million is secured by mortgage of freehold land.

(vi) TATA Capital Financial Services Limited

The loan amount of Rs. 133.33 million is secured by mortgage of freehold non-agricultural land.

(vii) SREI Equipment Finance Private Limited

The loan amount of Rs. 1,199.63 million (Rs. 1,203.63 million) is secured by first charge by way of hypothecation of specific movable assets.

(viii) Standard Chartered Bank (External Commercial Borrowings)

Secured by First charge on exclusive hypothecation of construction equipment procured out of loan amount.

(ix) Union Bank of India

Secured by first and exclusive hypothecation charge over specific fixed assets of the Company. The balance outstanding as at March 31, 2018 is Rs.879.52 million (Rs. 985.50 million), which is overdue.

II Project Specific Working Capital Loan from Banks

Project Specific Working Capital Loan from Banks are secured by hypothecation of book debts and inventory and other current assets of respective projects.

III Funded Interest Term Loan

The interest due and accrued on Term Loan, Non-Convertible Debentures, Short Term Loans, Equipment Term Loans, CGTL, WCTL-I, WCTL-II facilities from Cut-off-Date to till September 30, 2015 was to be funded and converted into a Funded Interest Term Loan. The proposed FITL along with accrued interest was to be converted into equity based on the earlier CDR regulatory guide lines.

IV 12.15% Non-Convertible Debentures

2,000 Debentures of Rs.1,000,000 each issued to Life Insurance Corporation of India during the year 2008-09. The debentures were due for redemption at the end of five years (i.e., December 19, 2013) from the date of allotment. The debentures are secured by way of first pari passu charge over certain specific fixed assets including immovable properties of the Company. IDBI Trusteeship Services Limited, Mumbai were the trustees for the debenture holders in respect of the non-convertible debentures.

V Promotors Guarantee (Additional Security)

On the failure of the Company to pay and/or discharge any of its Guaranteed Obligations in full, or in part or on failure to comply with its obligations under the CDR Documents, the Promotor shall, unconditionally and irrevocably, upon demand raised by the Security Trustee, pay to the Security Trustee without demur or protest, forthwith, the amount stated in the demand certificate, as if he was the primary obligtor and principal debtor and not merely as surety in respect of that amount, the amount stated in the demand certificate (the "Demand Certificate", in the form and manner set out in Deed of Guarantee, which shall mean any demand made by the Security Trustee on the Promotor, thereby invoking this Guarantee)

10. Amount payable is pertaining to land parcels/development rights sold in earlier years. The Company has obligation to pay the consideration to original alloting authority, If the buyer fails to make payament to the authority. Company is entitled to recover such payments from the buyer. So far the Company has not received any demand from the authority in respect of any demand/liability not paid by the buyer. however, as a matter of prudence the liability payable and corresponding recoverables has been recognized in the books.

IV. Impact of pending legal cases

The company is party to several cases with contractee/clients as well as vendors/sub-contractors, pending before various forums /courts/ arbitration proceedings. Due to the initiation of CIRP against the company during the year, the moratorium has been declared inter-alia against any recovery proceedings/winding up proceedings against the Company as more fully described in Note 37 below.

The Company is also liable jointly and severally in respect of joint venture projects and liquidated damages in completion of projects.

11. As more fully described in Note 37 below, as per section 134 of the Companies Act, 2013, the standalone financial statements of a Company are required to be authenticated by the Chairperson of the Board of Directors, where authorized by the Board or at least two Directors, of which one shall be the Managing Director or the CEO (being a Director), the CFO and the Company Secretary where they are appointed. In view of the ongoing CIRP , powers of the board of directors have been suspended and these powers are, in terms of the code, now vested with Mr. Sutanu Sinha, as Interim Resolution Professional (IRP) to carry out the functions of the Company in his capacity as the IRP from February 23, 2018. Accordingly, Financial statements of the Company for the year ended March 31, 2018 were taken on record and authorized for issue by Resolution Professional (RP) on June 29, 2018.

37. The Lenders of the Company had in earlier year approved a Corporate Debt Restructuring Scheme (CDR) with certain reliefs in relation to repayment timelines of loans and accumulated unpaid interest with certain conditions w.e.f. June 30, 2014. The efforts to raise additional funds, however, could not materialise and in the earlier year, the Joint Lenders have decided to adopt Strategic Debt Restructuring (SDR) in their meeting held on November 26, 2015, involving conversion of part of their debt into equity share capital to facilitate majority shareholding (i.e more than 51%) by the Joint Lenders Forum (JLF).

During the year, the stipulated time line has ended on May 25, 2017 and no Investor has come forward with a binding offer to acquire the lenders stake. The company has been treated as a case of failed CDR and SDR and lenders have excercised rights available to them on such failure of CDR/SDR including withdrawal / reversals of waivours / reliefs earlier granted to them w.e.f November 30, 2013.

During the year, a lender has filed a petition against the Company for initiation of CIRP that has been admitted by the Hon'ble National Company Law Tribunal, Hyderabad Bench ("NCLT") vide its order dated February 23, 2018 declaring moratorium inter-alia against any recovery proceedings/winding up proceedings against the Company. The order of moratorium shall have effect from February 23, 2018 in accordance with section 14 (1) of the Insolvency and bankruptcy Code, 2016 ("the Code").

Further, pursuant to the order of NCLT, a public announcement of CIRP was made on March 03, 2018 and a Committee of Creditors (COC) was formed pursuant to the provisions of the code and COC held their first meeting on March 29, 2018 and inter alia confirmed Interim Resolution Professional as Resolution professional (RP) for the Company. Hence, term loan including Working Capital Term Loan, Funded Interest Term Loan, Priority Debts etc has been classified as current borrowings as repayable on demand.

12. During the year, the Company has incurred a net loss of Rs.19,910.93 Million resulting in to accumulated losses of Rs.41,762.43 Million as at March 31, 2018 and erosion of its Net worth. The Company has obligations towards fund based borrowings aggregating to Rs. 77,577.28 Million and non fund based exposure aggregating to Rs.12,831.73 Million, subject to reconciliation/verification as stated in Note 43 below, that have been demanded/recalled by the financial creditors pursuant to CIRP, obligations pertaining to operations including unpaid creditors and statutory dues as at March 31, 2018. The Company's ability to continue as going concern is dependent upon many factors including continued support from the financial creditors, operational creditors and submission of a viable revival plan by the prospective investor/bidder. In the opinion of the management, resolution and revival of the company is possible in foreseable future, accordingly, in view of ongoing CIRP, above results have been prepared on the basis that the Company is a Going Concern.

13. The Company had recognized deferred tax assets on account of carried forward unused tax losses and other taxable temporary differences aggregating to Rs.9,570.59 Million (Rs. 9,570.59 Million as at March 31, 2017). Based on unexecuted orders on hand and expected future orders, the Management of the Company is confident that sufficient future taxable income will be available against which such deferred tax assets will be realised.

14. The Company has certain trade receivables, unbilled revenue, security deposit, withheld, claims of indirect taxes and other deposits including bank guarantee encashed by the customers aggregating to Rs.19,682.35 Million (Rs. 18,682.13 Million as at March 31, 2017) which are subject matters of various disputes / arbitration proceedings / negotiations with the contractee/ clients due to termination / fore closure of contracts and other disputes. The management of the Company is confident of positive outcome of litigations / resolutions of disputes and recovering the aforesaid dues.

15. The Company has an investment of Rs.12,063.29 Million (Rs. 6,761.85 Million as at March 31, 2017) in subsidiaries engaged in BOT and other projects, which are under disputes with the concessionaire, and other subsidiaries that have significant accumulated losses as at March 31, 2018. The management of the Company is at various stages of negotiation/ communication/arbitration with respective contractee/clients of such subsidiaries engaged in BOT and other projects to recover the dues and cost incurred by the Company and taking necessary steps to turnaround the loss making subsidiary Companies. Considering the long-term nature of investments and in view of ongoing discussion, no provision has been considered necessary by the management in respect of impairment in the value of investment.

16. The Company has outstanding loans and advances of Rs. 7,142.20 Million (Rs.4,322.33 Million as at March 31, 2017) given to subsidiary companies, associate, net receivable against development rights, various sub-contractors, vendors and other parties that are outstanding for long period. The management of the Company is at various stages of negotiation/ communication/arbitration with respective contractee/clients/ sub-contractors/vendors to recover the dues and cost incurred by the Company and taking necessary steps to turnaround the loss making subsidiary Companies. Accordingly, no provision has been considered necessary by the management in respect of impairment in the value of loans and advances.

17. Pursuant to the commencement of Corporate Insolvency Resolution Process of the Company (CIRP) under Insolvency and Bankruptcy Code, 2016 (IBC), there are various claims submitted by the operational creditors, the financial creditors, employee and other creditors against the Company including the claim on Company's subsidiaries. Some of these claims are under further verification/validation and the same may be updated as per any additional information which may be received in future.

18. Confirmation of balances could not be obtained as at March 31, 2018 for banks balances aggregating to Rs.24.84 Million, bank borrowings and for various trade receivables, trade payables, though, the management has requested for the confirmation of balances. Management believes that no material adjustments would be required in books of account upon receipt of these confirmations.

19. Physical verification for fixed assets aggregating to Rs.169.12 Million (WDV as on March 31, 2018) and inventory aggregating to Rs.41.23 Million could not be carried out at certain locations including project site that are terminated/ foreclosed/ having slow progress. Management believe that no item of fixed assets and inventory has a net realizable value in the ordinary course of business which is less than the amount at which it is included in the fixed assets and inventories. Accordingly, no provision is required in respect of such fixed assets and inventories.

20. The company has various input credits and balances with various statutory authorities pertaining to service tax, VAT, sales tax etc aggregating to Rs.2,003.47 Million. The recovery of these amounts is subject to reconciliation, filing of returns and admission by respective statutory authorities. No adjustments has been made in the books of accounts in respect of such amounts.

21. During the year, the company has received a Show Cause Notice U/s 279 (1) of the IT Act 1961 for initiation of prosecution proceedings U/s 276 (B) of the IT Act 1961 for failure to deposit the deducted Tax at Source within due date in Central Government Account for financial year 2016-17 & 2017-18 for the amount of Rs.103.40 Million and Rs.189.12 Million respectively.

In respect of the above, IT department has also sent notices U/s 226 (3) of the IT Act, 1961 to certain banks and customers of the company demanding the recovery of aforesaid arrears.

The Resolution Professional has communicated to the IT department about the ongoing CIRP and requested the IT department to withdraw the aforesaid notice and not to proceed with any further actions against the company in this regard.

22. During the year , the company has received order of the Regional Provident Fund Commissioner in the matter of levy of damages pertaining to the earlier years U/s 14 B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 aggregating to Rs.0.41 Million for the period from 10/1999 to 02/2009 and Rs.60.86 Million for the period from 07/2009 to 03/2015.

In respect of the above, the Employees' Provident Fund Organisation has also sent notice U/s 8f of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 to a bank demanding the recovery of Rs.91.22 Million (including interest of Rs.29.95 Million).

The company has filed an appeal U/s 7-I of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 with Employees' Provident Fund Appellate Tribunal, Bangalore Bench regarding the damages amounting to ' 61.27 Million and the matter is presently sub-judice.

23. During the previous year, the management had expressed its intention to sell three BOT Projects for which definitive agreements for sale were signed with the buyer and accordingly, these projects had been classified as "Assets held for sales". Pursuant to the cancellation of the said agreements during the year these projects assets have been classified as Non-current Investment.

24. Other expenses for the year ended on March 31, 2018 includes provision for doubtful trade receivables aggregating to Rs.1,221.20 Million (for the year ended March 31, 2017 is Rs.2,978.28 Million).

25. Exceptional items represent interest/penal interest charged and benefits withdrawn by the lenders upto March 31, 2017 that were extended pursuant to CDR/SDR scheme from the cut off date (i.e. November 30, 2013).

(e) In accordance with the payment of Gratuity Act, 1972 the Company provides for gratuity covering eligible employees. The liability on account of gratuity is covered partially through a recognized Gratuity Fund managed by Life Insurance Corporation of India and balance is provided on the basis of valuation of the liability by an independent actuary as at the period end. The invested return earned on the policy comprises bonus declared by LIC having regard to LIC's investment earnings. The information on the allocation of the fund into major asset classes and expected return on each major class are not available. The management understands that LIC's overall portfolio assets are well diversified and as such, the long-term return of the policy is expected to be higher than the rate of return on Central Government Bonds.

26. Financial Instruments

26.1 Capital risk management

The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the return to stakeholders through optimisation of debt and equity balance. The Company is not subject to any externally imposed capital requirements.

The capital structure of the Company consists of net debt (borrowings as detailed in Notes 21, 23 & 25 and 14 & 15 offset by cash and bank balances) and total equity of the Company. Equity consists of equity capital, share premium and all other equity reserves attributable to the equity holders.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants.

26.2 Financial risk management

The Company's principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance and support the Company's operations. The Company's principal financial assets comprise investments, cash and bank balance, trade and other receivables.

The Company is exposed to various financial risks such as market risk, credit risk and liquidity risk. The financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives.

a. Market risk

The Company's activities expose it primarily to the financial risk of changes in foreign currency exchange rates and changes in interest rates. There have been no changes to the Company's exposure to market risk or the manner in which it manages and measures the risk in recent past.

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and currency risk. Financial instruments affected by market risk include borrowings and bank deposits.

i. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates is limited as the Company's borrowing bear fixed interest rate.

ii. Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the Company's borrowings. The Company's foreign currency risks are identified, measured and managed at periodic intervals in accordance with the Company's policies. For details of un-hedged foreign currency refer Note 58.

b. Credit risk

Credit risk is the risk that counterparty will default on its contractual obligations resulting in financial loss to the company. The Company has adopted a policy of only dealing with creditworthy customers.

Credit risk on trade receivables and unbilled work-in-progress is limited as the customers of the Company mainly consists of the government promoted entities having a strong credit worthiness. For other customers, the Company uses a provision matrix to compute the expected credit loss allowance for trade receivables and unbilled work-in-progress. The provision matrix takes into account available external and internal credit risk factors such as credit ratings from credit rating agencies, financial condition, ageing of accounts receivable and the Company's historical experience for customers.

At March 31, 2018, the company did not consider there to be any significant concentration of credit risk, which had not been adequately provided for. The carrying amount of the financial assets recorded in the financial statements, grossed up for any allowances for losses, represents the maximum exposure to credit risk.

c. Liquidity risk

The Company manages liquidity risk by maintaining adequate reserves and banking facilities, by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities for the Company. The Company has established an appropriate liquidity risk management framework for it's short-term, medium term and long-term funding requirement.

The table below summarizes the maturity profile of the Company's financial assets and financial liabilities based on contractual undiscounted payments:

27. Fair Value measurements

The fair value of the financial assets are included at amounts at which the instruments could be exchanged in a current transaction between willing parties other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair value:

(a) Fair value of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, approximate their carrying amounts largely due to the short-term maturities of these instruments.

(b) Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for the expected losses of these receivables.

B. Fair value hierarchy:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Input other than quoted prices included within Level 1 that are observable for the assets or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

28.1 These Companies have provided/agreed to provide corporate guarantee to the lenders of the Company (i.e. IVRCL Limited) to the extent of all amounts payable to CDR lenders, the monitoring institutions and the security trustee under the Master Restructuring Agreement (MRA) pursuant to scheme of CDR. During the year, the arrangement of CDR/SDR has failed even though, the guarantees are continued alive.

29. Segment Reporting

a) Business segment:

The Company has considered "Engineering & Construction" as one business segment for disclosure in the context of Indian Accounting Standard 108 "Operating Segment". The Company is engaged in the business of Engineering & Construction segment only for the period under report.

b) Geographical Segment:

During the period under report, the Company has engaged in its business primarily within India. The conditions prevailing in India being uniform, no separate geographical disclosure is considered necessary.

30. Standalone financial statements include:

a. Out of the 32 jointly controlled entities, the unaudited financial statement/ financial information of 5 jointly controlled entities as certified by the Management, whose financial results reflect the Company's Share as at March 31, 2018 and share in profit (net) Rs.24.64 million for the year ended on that date. Further, the standalone financial statements does not include the financial results of 4 jointly controlled entities. In the opinion of the management, financial results of such JVs is not material to the Company.

b. the unaudited financial results of a branch Kingdom of Saudi Arabia included in the standalone financial statements of the Company whose financial statements/financial information reflects total assets of Rs.0.01 million as at March 31, 2018 and total revenue is Nil for the year ended on that date.

31. During the year, Managerial Remuneration paid to one of the Director (resigned during the year) was in excess of the minimum remuneration allowable under the Companies Act, 2013. Accordingly, an amount of Rs. 3.76 million has been accounted as due from him. The management is in the process of making / obtaining requisite approval from the Central Government in this regard.

32. These financial statements pertain to a substantial period prior to commencement of Corporate Insolvency Resolution Process (CIRP) of the Company and before the appointment of the Resolution Professional (RP) for the Company. Therefore, the RP is not in a position to verify the authenticity or varacity of the information provided herein. In absence of the Board of Directors, the RP is approving these statements for the purposes of compliance with the provisions of the Companies Act, 2013 and on the basis of representation by the key managerial personnel (KMP) of the Company and others regarding authenticity or varacity of the information provided in the financial statements. Approval of the RP and affixing of signature on these statements by the RP should not be construed as endorsement or certification by the RP of any facts or figures provided herein.