Cemindia Projects Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

xxii. Provisions, Contingent Liabilities and
Contingent Assets

A provision is recognised when the Company has
a present obligation (legal or constructive) as a
result of past events and it is probable that an
outflow of resources embodying economic benefits
will be required to settle the obligation, in respect
of which a reliable estimate can be made of the
amount of obligation. Provisions (excluding gratuity
and compensated absences) are determined based
on management''s estimate required to settle the
obligation at the Balance Sheet date. In case the time
value of money is material, provisions are discounted
using a current pre-tax rate that reflects 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. These are reviewed
at each Balance Sheet date and adjusted to reflect
the current management estimates.

Contingent liabilities are disclosed in respect of
possible obligations that arise from past events,
whose existence would be confirmed by the
occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the Company. A contingent liability also arises, in
rare cases, where a liability cannot be recognised
because it cannot be measured reliably.

Contingent assets are disclosed where an inflow of
economic resources is probable.

xxiii. Commitments

Commitments are future liabilities for contractual
expenditure, classified and disclosed as estimated
amount of contracts remaining to be executed on
capital account and not provided for.

xxiv. Exceptional Items

When items of income and expense within profit or
loss from ordinary activities are of such size, nature
or incidence that their disclosure is relevant to

explain the performance of the enterprise for the
period, the nature and amount of such material items
are disclosed separately as exceptional items.

xxv.Recent accounting pronouncements

The 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 lease back transactions,
applicable from April 1, 2024. The Company has
assessed that there is no significant impact on its
financial statements.

f. Bonus shares/ buy back/shares for consideration other than cash issued during past five years:

(i) Aggregate number and class of shares allotted as fully paid up pursuant to contracts without payment being
received in cash - Nil

(ii) Aggregate number and class of shares allotted as fully paid up by way of bonus shares - Nil

(iii) Aggregate number and class of shares bought back - Nil

g. Out of the total issued capital, 25,260 (31 March 2024: 25,260) equity shares of I 1 each have been kept in
abeyance pending final settlement of rights issues.

h. The Board of Directors of the Company has recommended equity dividend of I 2.00 per share (31 March 2024:
I 1.70 per share) for the year ended 31 March 2025. (Refer note 44)

Nature and purpose of reserves

(i) Securities premium

Securities premium is used to record the premium received on issue of shares. This account is utilised in
accordance with the provisions of the Companies Act 2013 (''the Act'').

(ii) General Reserve

Under the erstwhile Companies Act 1956, a general reserve was created through an annual transfer of net profit
at a specified percentage in accordance with applicable regulations. Consequent to the introduction of the
Companies Act, 2013, the requirement to mandatorily transfer a specified percentage of net profit to general
reserve has been withdrawn.

(iii) Retained Earnings

Retained earnings represents the profits/losses that the Company has earned / incurred till date including gain /
(loss) on fair value of defined benefits plans as adjusted for distributions to owners, transfer to other reserves etc.

(iv) Equity instruments at fair value through other comprehensive income

The Company has elected to recognise changes in the fair value of certain investments in equity securities in
other comprehensive income. These changes are accumulated within fair value through other comprehensive
income (''FVTOCI'') reserve within equity. The Company transfers amount from this reserve to retained earnings
when the relevant equity securities are derecognised.

(v) Exchange differences on translating the financial statements of a foreign operation

The Company has recognised exchange differences arising on translation of the foreign operations (i.e. Branch in
Bangladesh, Sri Lanka and Myanmar) in other comprehensive income and accumulated in ''Foreign Currency
Translation Reserve'' in Other Equity.

Terms of repayment and details of security

Note 18.1 - Term loan from banks

Loans obtained from banks for capital expenses including reimbursement of expenses carry interest rates linked to
1 year/ 6 month MCLR currently ranging from 8.50% to 11.35% (31 March 2024: 9.75% to 10.65% p.a.) are repayable
in 14 /16 quarterly and 48 / 60 monthly installments. One of these loans is secured with exclusive charge on an
immovable property of the Company and others are secured by first and exclusive charge on specific equipment
financed by the banks.

172 ITD Cementation India Limited

Loan obtained under Emergency Credit Line Guarantee Scheme 2.0 (''ECLGS'') for general corporate/long term working
capital purposes carry interest rates ranging from 8.00% to 9.25% (31 March 2024: 7.50% to 9.55% p.a.) for a period of
60 months including moratorium period of 12 months and thereafter repayable in 48 monthly installments. These loans
are secured by second pari passu charge on the current assets and movable plant and machinery, other than those
charged in favour of equipment specific term loans. The entire facility under ECLGS is also covered by way of 100%
guarantee cover available from National Credit Guarantee Trustee Company Limited (NCGTC).

Note 18.2 - Vehicle loans from banks

Loans obtained for purchase of vehicles carry interest rates ranging from 7.25% p.a. to 9.15% p.a. (31 March 2024:
7.25% p.a. to 9.15% p.a.) and balance outstanding as on 31 March 2025 are repayable in 1 to 60 monthly balance
installments. These loans are secured by hypothecation of the vehicles purchased out of these loans.

Note 18.3 - Loans guaranteed by directors Nil (31 March 2024: Nil)

Note 18.4 - Net debt reconciliation

An analysis of net debts and the movement in net debts for each of the reporting period is as follows:

Notes:

Note 18.4.1: Difference is on account of income tax deduced at source (''TDS'') by clients from running account bills
and considered as trade receivables pending receipt of TDS certificate for the purposes of submission of quarterly
statements to banks.

Note 18.4.2: Stock statement submitted was based on unaudited books of accounts.

Note 18.4.3: The statement for the quarter ended 31 March 2025 was not submitted as at date of the financial
statements. Accordingly, disclosure thereof has not been included above.

Note 21.1 Cash credit facilities (secured):

Cash credit facilities availed from consortium bankers carry effective interest rates ranging from 9.18% p.a. to 11.95%
p.a. (31 March 2024: 9.50% p.a. to 11.90% p.a.) and are secured by first pari passu charge on the current assets and
movable plant and machinery (other than those charged in favour of equipment specific term loans). These facilities
are repayable on demand.

Note 21.2 Working capital demand loans (secured):

Working capital demand loans carry effective interest rates ranging from 9.23% p.a. to 12.05% p.a. (31 March 2024: 9.50
% p.a. to 12.00% p.a.) and are secured by first pari passu charge on the current assets and movable plant and machinery
(other than those charged in favour of equipment specific term loans). These facilities are repayable on demand.

Note 21.3 Bill discounting (unsecured):

Bill discounting facilities carried on interest rates ranging from 10.00% p.a. to 10.40% p.a. (31 March 2024: 9.75% p.a.
to 10.60% p.a) and are repayable upto 90 days from the date of discounting/ date of invoice.

Note 21.4 - Loans guaranteed by directors Nil (31 March 2024: Nil)

Note 30.2: CSR expenditure

As per the Section 135 of the Companies Act, 2013 every year the Company is required to spend at least 2% of its
average net profits made during the three immediate preceding financial years on the Corporate Social Responsibility
(CSR) activities. Following is the information regarding projects undertaken and expenses incurred on CSR activities.

a. Gross amount required to be spent by the Company during the year ended 31 March 2025: I 430.43 Lakhs
(31 March 2024: I 171.33 Lakhs)

c. Amount of shortfall at the end of the year ended 31 March 2025 out of the amount required to be spent during
the year: I 23.62 Lakhs (31 March 2024: I 0.84 Lakhs).

d. Total of previous year shortfall: Nil

e. Reason for shortfalls:

Actual cost incurred for one of the CSR activities was less by I 1.45 Lakh against the allocated amount and
for balance amount of I 22.17 Lakh, the Company could not identify any viable CSR projects falling under
Schedule VII of the Companies Act, 2013, in which the unspent amount could be utilised.

Consequently, the total unspent amount for FY 2024-25 in respect of CSR is I 23.62 Lakh, which the Board
of the Company, decided to transfer to Swachh Bharat Kosh, set up by the Central Government for the
promotion of sanitation.

f. Nature of CSR activities undertaken: Health care, Education including special education and employment
enhancing vocational skill development, environmental sustainability, Women empowerment, Animal welfare
and activities related to setting up old age homes & hostels for women, orphans and senior citizens.

(vi) Provident Fund

Based on the judgement delivered by the Honorable Supreme Court dated 28 February 2019, past provident
fund liability, is not determinable at present, in view of uncertainty on the applicability of the judgement
to the Company with respect to timing and the components of its compensation structure. In absence of
further clarification, the Company has been legally advised to await further developments in this matter to
reasonably assess the implications on its financial statements, if any.

Notes-

(a) The Company has a number of claims on customers for price escalation and / or variation in contract
work. In certain cases which are currently under arbitration, the customers have raised counter-claims.
The Company has received legal advice that none of the counter-claims are legally tenable. Accordingly no
provision is considered necessary in respect of these counter claims. It also include claims by third parties.

(b) It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the
above pending resolution of the respective proceedings. The Company does not expect any reimbursements
in respect of the above contingent liabilities other than stated therein above. Future cash outflows in
respect of the above are determinable only on receipt of judgements/ decisions pending with various forums/
authorities. The Company does not expect any outflow of economic resources in respect of the above and
therefore no provision is made in respect thereof.

Note 33: The Company''s trade receivables and unbilled work-in-progress include amount aggregating I 913.04 Lakhs
and I 2,099.68 Lakhs (31 March 2024: I 882.79 Lakhs and I 2,494.65 Lakhs), respectively, which represent various
receivables/ claims which have been raised based on the terms and conditions implicit in the contracts of certain
completed/ nearing completion projects. These receivables/ claims are mainly in respect of cost over-run arising due
to client caused delays, suspension of projects, deviation in design and change in scope of work; for which Company
is at various stages of negotiations/ discussions/ arbitration/ litigation with the clients. Considering the contractual
tenability, progress of negotiations/ discussions/arbitration/ litigations and as legally advised in certain contentious
matters, the management is confident of recovery of these receivables.

Note 34 Segment reporting

The Company''s Managing Director who is identified as the Chief Operating Decision Maker of the Company, examines
the performance of the business and allocates funds on the basis of a single reportable segment i.e. ''Construction''.
Further, the Company has operations mainly in India and has no other reportable segment.

Accordingly, the segment revenue, segment results, total carrying amount of segment assets and segment liability,
total cost incurred to acquire segment assets and total amount of charge for depreciation during the period, is as
reflected in the Standalone Financial Statements as on and for the financial year ended 31 March 2025.

Note 37 Financial instruments

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.

Note 39 Financial risk management objectives and policies

The Company''s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company''s
focus is to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its
financial performance.

i Market risk

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 three types of risk: interest rate risk, currency risk and other price
risk, such as equity price risk. Major financial instruments affected by market risk includes loans and borrowings.

a 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 relates
primarily to the Company''s total debt obligations with floating interest rates.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion
of loans and borrowings affected. With all other variables held constant, the Company''s profit before tax is
affected through the impact on floating rate borrowings, as follows:

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable
market environment, showing a significantly higher volatility than in prior years.

Foreign currency risk

The Company has balances in foreign currency and consequently the Company is exposed to foreign exchange
risk. Foreign currency risk arrises from future commercial transactions and recognised assets and liabilities
denominated in a currency that is not the company''s functional currency (INR). The Company evaluates exchange
rate exposure arising from foreign currency transactions and follows established risk management policies.

The Company''s exposure to foreign currency risk at the end of the reporting period are as follows:

During the year, to mitigate the Company''s exposure to foreign currency risk, non-INR cash flows are monitored
and forward exchange contracts are entered into in accordance with the Company''s risk management policies.
Generally, the Company''s risk management procedures distinguish short-term foreign currency cash flows (due
within 6 months) from longer-term cash flows (due after 6 months).

The net effect of exchange rate changes on cash and cash equivalents as per Ind AS 7 is I 33.52 Lakhs.
Non presentation in cash flow has no impact on the profit and loss of the company.

Sensitivity analysis

The Company''s exposure in foreign currency is not material and hence the impact of any significant fluctuation
in the exchange rates is not expected to have a material impact on the operating profits of the Company.

c Equity price risk

The Company''s exposure in equity securities as at 31 March 2025 is I 5 Lakhs (31 March 2024: I 5 Lakhs) and as
a result the impact of any price change will not have a material effect on the profit or loss of the Company.

ii Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed.
The maximum exposure of the financial assets are contributed by trade receivables. Company''s exposure to credit
risk for receivable from customers (retention - not due) beyond one year is I 21,874.69 Lakhs.

a Trade receivable

Trade receivables are typically unsecured and are derived from revenue earned from two main classes of trade
receivables i.e receivables from sale to government corporations and receivables from sales to private third
parties. A substantial portion of the Company''s trade receivables are from government promoted corporations
customers having strong credit worthiness.

The following table gives details in respect of percentage of revenues generated from government promoted
agencies and others:

b Financial assets other than trade receivables

Financial assets other than trade receivables comprise of cash and cash equivalents, other bank balances,
loan to employees and other financial assets. The Company monitors the credit exposure on these financial
assets on a case-to-case basis. Based on the Company''s historical experience, the credit risk on other financial
assets is also low.

The following table gives details in respect of contract revenues generated from the top customer and top 5
customers for each of the reporting period:

iii Liquidity risk

Liquidity is defined as the risk that the Company will not be able to settle or meet its obligations on time
or at a reasonable price. The Company''s treasury department is responsible for liquidity, funding as well as
settlement management. In addition, processes and policies related to such risks are overseen by senior
management. Management monitors the Company''s net liquidity position through rolling forecasts on the basis
of expected cash flows.

The table below provides details regarding the contractual maturities of significant financial liabilities:

Note 40 - Disclosure pursuant to Ind AS 115 Revenue from Contracts with Customers:

Refer note 2(xvi)(a) for accounting policy on revenue recognition.

(a) Disaggregation of revenue

The Company''s entire business falls under one operational segment of ''Engineering and Construction''.
Contract revenue represents revenue from Engineering and Construction contracts wherein the performance
obligation is satisfied over a period of time. Further, the management believes that the nature, amount, timing
and uncertainty of revenue and cash flows from all its contracts are similar. Accordingly, disclosure of revenue
recognised from contracts disaggregated into categories has not been made.

(b) Unsatisfied performance obligations

The aggregate amount of transaction price allocated to performance obligations that are unsatisfied as at the
end of the year is I 17,81,923.84 Lakhs (31 March 2024: I 19,28,246.15 Lakhs). Most of Company''s contracts
have a life cycle of 2-3 years. Management expects that around 25% - 30% of the transaction price allocated to
unsatisfied contracts as of 31 March 2025 will be recognised as revenue during next reporting period depending
upon the progress on each contracts. The remaining amounts are expected to be recognised over the next 3
years. The amount disclosed above does not include variable consideration.

Note: Increase in contract assets is primarily due to higher revenue recognition as compared to progress
billing during the year in certain projects, whereas increase in contract liabilities is due to higher progress
billing as compared to revenue recognition during the year in certain other projects.

(ii) Revenue recognised during the year from opening balance of contract liabilities (i.e. due to customers)
amounts to I 10,821.98 Lakhs (31 March 2024: I 15,947.82 Lakhs).

(iii) Revenue recognised during the year from the performance obligation satisfied upto previous year amounts
to Nil (31 March 2024: Nil).

(e) Cost to obtain or fulfil the contract:

i. Amount of amortisation recognised in Statement of Profit and Loss during the year: Nil (31 March 2024: Nil)

ii. Amount recognised as contract assets as at 31 March 2025: Nil (31 March 2024: Nil)

Note 41 Leases - Ind AS 116
Right-of-use Assets:

The net carrying value of right-of-use assets as at 31 March 2025 of I 2,513.12 Lakhs (31 March 2024: I 2,470.93
Lakhs) have been disclosed on the face of the balance sheet. (Also refer note 3B)

Lease liabilities:

(i) As at 31 March 2025, the lease obligations aggregating I 2,841.78 Lakhs (31 March 2024: I 2,708.68 Lakhs)
which have been classified to lease liabilities on the face of the balance sheet. (Also refer note 18)

(ii) The following is the movement in lease liabilities:

Note 42 Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity
reserves attributable to the equity holders of the Company. The Company strives to safeguard its ability to continue as
a going concern so that they can maximise returns for the shareholders and benefits for other stake holders. The aim
to maintain an optimal capital structure and minimise cost of capital.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company may return capital
to shareholders, issue new shares or adjust the dividend payment to shareholders (if permitted). Consistent with
others in the industry, the Company monitors its capital using the gearing ratio which is total debt divided by total
capital (equity).

(iii) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies
beyond the statutory period.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company has 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 has 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 such 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 wilful defaulter by any bank or financial institution or government or any
government authority.

(ix) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(x) The Company has not entered into any scheme of arrangement which has an accounting impact on the current
or previous financial year.

Note 46 Disclosure for maintenance of books of accounts with Audit Trail (Edit log)

During the year, the Company has used a particular accounting software for maintaining books of accounts for all its
projects in India and a different Accounting software for its overseas projects. The accounting software used by the
Company in India has a feature of recording audit trail (edit log) facility and the same has operated throughout the
year for all relevant transactions recorded in the software.

Further, for the periods where the audit trail (edit log) facility was enabled and operational, there are no instances of
the audit trail feature being tampered with.

Note 47 Previous period figures have been regrouped / reclassified whereever necessary, to conform to the current
period''s classification.

As per our attached report of even date

For T R Chadha & Co LLP For and on behalf of the Board of Directors

Chartered Accountants

Firm Registration No. 006711N / N500028

Pramod Tilwani Santi Jongkongka Jayanta Basu

Partner Executive Vice Chairman Managing Director

Membership No: 076650 DIN: 08441312 DIN: 08291114

Prasad Patwardhan Rahul Neogi

Chief Financial Officer Company Secretary

ACA No.44453 ACS No.10653

Place: Mumbai Place: Mumbai

Date: May 13, 2025 Date: May 13, 2025

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Mar 31, 2024

b. Terms/rights attached to equity shares:

The Company has only one class of equity shares having a par value of H 1 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed if any by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except interim dividend.

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, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

f. Bonus shares/buy back/shares for consideration other than cash issued during past five years:

(i) Aggregate number and class of shares allotted as fully paid up pursuant to contracts without payment being received in cash - Nil

(ii) Aggregate number and class of shares allotted as fully paid up by way of bonus shares - Nil

(iii) Aggregate number and class of shares bought back - Nil

g. Out of the total issued capital, 25,260 (31 March 2023: 25,260) equity shares of 11 each have been kept in abeyance pending final settlement of rights issues.

h. The Board of Directors of the Company has recommended equity dividend of 1 1.70 per share (31 March 2023: 1 0.75 per share) for the year ended 31 March 2024. (Refer note 43)

Nature and purpose of reserves

(i) Securities premium

Securities premium is used to record the premium received on issue of shares. This account is utilised in accordance with the provisions of the Companies Act 2013 (‘the Act’).

(ii) General Reserve

Under the erstwhile Companies Act 1956, a general reserve was created through an annual transfer of net profit at a specified percentage in accordance with applicable regulations. Consequent to the introduction of the Companies Act, 2013, the requirement to mandatorily transfer a specified percentage of net profit to general reserve has been withdrawn.

(iii) Retained Earnings

Retained earnings represents the profits/losses that the Company has earned/incurred till date including gain/(loss) on fair value of defined benefits plans as adjusted for distributions to owners, transfer to other reserves etc.

(iv) Equity instruments at fair value through other comprehensive income

The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within fair value through other comprehensive income (‘FVTOCI’) reserve within equity. The Company transfers amount from this reserve to retained earnings when the relevant equity securities are derecognised.

(v) Exchange differences on translating the financial statements of a foreign operation

The Company has recognised exchange differences arising on translation of the foreign operations (i.e. Branch in Myanmar, Sri Lanka and Bangladesh) in other comprehensive income and accumulated in ‘Foreign Currency Translation Reserve’ in Other Equity.

Terms of repayment and details of security Note 17.1 - Rupee Term loan from banks

Loans obtained from banks for capital expenses including reimbursement of expenses carry interest rates linked to 1 year/6 month MCLR currently ranging from 9.75% to 10.65% (31 March 2023: 7.25% to 10.10% p.a.) are repayable in 14/16 quarterly and 20/55 monthly installments. One of these loans is secured with exclusive charge on an immovable property of the Company and others are secured by first and exclusive charge on specific equipment financed by the banks.

Loan obtained under Emergency Credit Line Guarantee Scheme 2.0 (‘ECLGS’) for general corporate/long term working capital purposes carry interest rates ranging from 7.50% to 9.55% (31 March 2023: 7.50% to 9.55% p.a.) for a period of 60 months including moratorium period of 12 months and thereafter repayable in 48 monthly installments. These loans are secured by second pari passu charge on the current assets and movable plant and machinery, other than those charged in favour of equipment specific term loans. The entire facility under ECLGS is also covered by way of 100% guarantee cover available from National Credit Guarantee Trustee Company Limited (NCGTC).

Note 17.2 - Vehicle loans from banks

Loans obtained for purchase of vehicles carry interest rates ranging from 7.25% p.a. to 9.15% p.a. (31 March 2023: 7.65% p.a. to 7.85% p.a.) and balance outstanding as on 31 March 2024 are repayable in 1 to 60 monthly balance installments. These loans are secured by hypothecation of the vehicles purchased out of these loans.

Note 17.4.1: Difference is on account of income tax deduced at source (‘TDS’) by clients from running account bills and considered as trade receivables pending receipt of TDS certificate for the purposes of submission of quarterly statements to banks.

Note 17.4.2: Stock statement submitted for the quarter March 2023 was based on unaudited books of accounts.

Note 17.4.3: The statement for the quarter ended 31 March 2024 was not submitted as at date of the financial statements. Accordingly, disclosure thereof has not been included above.

Note 20.1 Cash credit facilities (secured):

Cash credit facilities availed from consortium bankers carry effective interest rates ranging from 9.50% p.a. to 11.90% p.a. (31 March 2023: 8.85% p.a. to 11.00% p.a.) and are secured by first pari passu charge on the current assets and movable plant and machinery (other than those charged in favour of equipment specific term loans). These facilities are repayable on demand.

Note 20.2 Working capital demand loans (secured):

Working capital demand loans carry effective interest rates ranging from 9.50% p.a. to 12.00% p.a. (31 March 2023: 7.80 % p.a. to 10.75% p.a.) and are secured by first pari passu charge on the current assets and movable plant and machinery (other than those charged in favour of equipment specific term loans). These facilities are repayable on demand.

Note 29.2: CSR expenditure

As per the Section 135 of the Companies Act, 2013 every year the Company is required to spend at least 2% of its average net profit made during the immediately three preceding financial years on the Corporate Social Responsibility (CSR) activities. Following is the information regarding projects undertaken and expenses incurred on CSR activities.

a. Gross amount required to be spent by the Company during the year ended 31 March 2024: I 171.33 Lakhs (31 March 2023: I 80.62 Lakhs)

c. Amount of shortfall at the end of the year ended 31 March 2024 out of the amount required to be spent during the year: 0.84 Lakhs (31 March 2023: Nil).

d. Reason for shortfalls:

An implementing agency, to whom the Company made a financial contribution of I 5.90 Lakhs, could spend an amount of I 5.06 Lakhs only, leaving an unspent amount of I 0.84 Lakhs as on 31 March 2024. Subsequently, the Board decided to transfer the said unspent amount of I 0.84 Lakhs to Ganga Clean Fund, being the designated Fund specified in Schedule VII of the Companies Act, 2013, set up by the Central Government for rejuvenation of river Ganga, within the stipulated period of 6 month from the expiry of the financial year ended 31 March 2024.

e. Nature of CSR activities undertaken: Promotion of Education, Health care and Training to promote Paralympic sports.

NOTE 31 CONTINGENT LIABILITIES AND COMMITMENTS A. Contingent liabilities (H Lakhs)
	As at 31 March 2024	As at 31 March 2023
(i) Guarantees given by banks in respect of contracting commitments in the normal course of business
- for the Company	49,595.79	41,132.84
- for unincorporated entities	61,638.14	35,670.37
(ii) Corporate Guarantee given to bank on behalf of unincorporated entities	10,772.10	15,518.17
(iii) Claims against the Company not acknowledged as debts (Refer note ''a'' below)	11,338.20	19,820.20
(iv) Sales Tax/Value Added Tax (''VAT'')/Service Tax/GST matters pending in appeals	11,345.35	8,704.31
(v) Income Tax matters pending in appeals	2,541.82	3,148.09
(vi) Provident Fund Based on the judgement by the Honourable Supreme Court dated 28 February 2019, past provident fund liability, is not determinable at present, in view of uncertainty on the applicability of the judgement to the Company with respect to timing and the components of its compensation structure. In absence of further clarification, the Company has been legally advised to await further developments in this matter to reasonably assess the implications on its financial statements, if any.

(a) The Company has a number of claims on customers for price escalation and/or variation in contract work. In certain cases which are currently under arbitration, the customers have raised counter-claims. The Company has received legal advice that none of the counter-claims are legally tenable. Accordingly no provision is considered necessary in respect of these counter claims.

(b) I t is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings. The Company does not expect any reimbursements in respect of the above contingent liabilities other than stated therein above. Future cash outflows in respect of the above are determinable only on receipt of judgments/decisions pending with various forums/authorities. The Company does not expect any outflow of economic resources in respect of the above and therefore no provision is made in respect thereof.

B. Commitments		(H Lakhs)
	As at	As at
	31 March 2024	31 March 2023
Estimated amount of contracts remaining to be executed on capital account and not provide for (net of advance paid)	7,298.27	19,909.11

NOTE 32

The Company’s trade receivables and unbilled work-in-progress include amount aggregating I 882.79 Lakhs and I 2,494.65 Lakhs (31 March 2023: I 865.39 Lakhs and I 2,519.81 Lakhs), respectively, which represent various receivables/ claims which have been raised based on the terms and conditions implicit in the contracts of certain completed/nearing completion projects. These receivables/claims are mainly in respect of cost over-run arising due to client caused delays, suspension of projects, deviation in design and change in scope of work; for which Company is at various stages of negotiations/discussions/arbitration/litigation with the clients. Considering the contractual tenability, progress of negotiations/discussions/arbitration/litigations and as legally advised in certain contentious matters, the management is confident of recovery of these receivables.

NOTE 33 SEGMENT REPORTING

The Company’s managing director who is identified as the Chief Operating Decision Maker of the Company, examines the performance of the business and allocates funds on the basis of a single reportable segment i.e. ‘Construction’. Further, the Company has operations mainly in India and has no other reportable segment.

Accordingly, the segment revenue, segment results, total carrying amount of segment assets and segment liability, total cost incurred to acquire segment assets and total amount of charge for depreciation during the period, is as reflected in the Standalone Financial Statements as on and for the financial year ended 31 March 2024.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

Expected contribution in the next year 1,226.01 Lakhs (31 March 2023: I 1,050.75 Lakhs)

f) Quantities sensitivity analysis for significant assumption is as below:

Sensitivity for significant actuarial assumptions is computed by varying one actuarial assumption used for the valuation of the defined benefit obligation, keeping all other actuarial assumptions constant. The significant actuarial assumptions are discount rate and salary escalation rate.

B Defined benefit obligations - Provident Fund

In accordance with Provident Fund and Miscellaneous Provision Act, 1952, all eligible employees of the Company are entitled to receive benefits under the provident fund plan in which both the employee and employer (at a determined rate) contribute monthly to “ITD Cementation India Limited Workmen Provident Fund”, a Trust set up by the Company to manage the investments and distribute the amounts to employees at the time of separation from the Company or retirement, whichever is earlier. This plan is a defined plan as the Company is obligated to provide its members a rate of return which should, at a minimum, meet the interest rate declared by Government administered provident fund.

A part of the Company’s contribution is transferred to Government administered pension fund. The contributions made by the Company and the shortfall of interest, if any, are recognised as an expense in the Statement of Profit and Loss under “Employee benefits expense”.

I n accordance with an actuarial valuation of provident fund liabilities on the basis of guidance issued by Actuarial Society of India and based on the assumptions as mentioned below, there is no deficiency in the interest cost as the present value of the expected future earnings of the fund is greater than the expected amount to be credited to the individual members based on the expected guaranteed rate of interest of Government administered provident fund.

NOTE 36 FINANCIAL INSTRUMENTS

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

NOTE 38 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company’s focus is to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance.

i Market risk

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 three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk. Major financial instruments affected by market risk includes loans and borrowings.

a Interest rate risk

I nterest 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 relates primarily to the Company’s total debt obligations with floating interest rates.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company’s profit before tax is affected through the impact on floating rate borrowings, as follows:

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment, showing a significantly higher volatility than in prior years.

b Foreign currency risk

The Company has balances in foreign currency and consequently the Company is exposed to foreign exchange risk. Foreign currency risk arrises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company’s functional currency (I). The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

During the year, to mitigate the Company’s exposure to foreign currency risk, non-INR cash flows are monitored and forward exchange contracts are entered into in accordance with the Company’s risk management policies. Generally, the Company’s risk management procedures distinguish short-term foreign currency cash flows (due within 6 months) from longer-term cash flows (due after 6 months).

Sensitivity analysis

The Company’s exposure in foreign currency is not material and hence the impact of any significant fluctuation in the exchange rates is not expected to have a material impact on the operating profits of the Company.

c Equity price risk

The Company’s exposure in equity securities as at 31 March 2024 is I 5 Lakhs (31 March 2023: I 5 Lakhs) and as a result the impact of any price change will not have a material effect on the profit or loss of the Company.

ii Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. The maximum exposure of the financial assets are contributed by trade receivables. Company’s exposure to credit risk for receivable from customers (retention - not due) beyond one year is I 14,600.85 Lakhs.

a Trade receivable

Trade receivables are typically unsecured and are derived from revenue earned from two main classes of trade receivables i.e receivables from sale to government corporations and receivables from sales to private third parties. A substantial portion of the Company’s trade receivables are from government promoted corporations customers having strong credit worthiness.

b Financial assets other than trade receivables

Financial assets other than trade receivables comprise of cash and cash equivalents, other bank balances, loan to employees and other financial assets. The Company monitors the credit exposure on these financial assets on a case-to-case basis. Based on the Company’s historical experience, the credit risk on other financial assets is also low.

iii Liquidity risk

Liquidity is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company’s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company’s net liquidity position through rolling forecasts on the basis of expected cash flows.

The table below provides details regarding the contractual maturities of significant financial liabilities:

NOTE 39 - DISCLOSURE PURSUANT TO IND AS 115 REVENUE FROM CONTRACTS WITH CUSTOMERS:

Refer note 2(xvi)(a) for accounting policy on revenue recognition.

(a) Disaggregation of revenue

The Company’s entire business falls under one operational segment of ‘Engineering and Construction’. Contract revenue represents revenue from Engineering and Construction contracts wherein the performance obligation is satisfied over a period of time. Further, the management believes that the nature, amount, timing and uncertainty of revenue and cash flows from all its contracts are similar. Accordingly, disclosure of revenue recognised from contracts disaggregated into categories has not been made.

(b) Unsatisfied performance obligations

The aggregate amount of transaction price allocated to performance obligations that are unsatisfied as at the end of the year is I 19,28,246.15 Lakhs (31 March 2023: I 19,23,305.63 Lakhs). Most of Company’s contracts have a life cycle of 2-3 years. Management expects that around 25% - 30% of the transaction price allocated to unsatisfied contracts as of 31 March 2024 will be recognised as revenue during next reporting period depending upon the progress on each contracts. The remaining amounts are expected to be recognised over the next 3 years. The amount disclosed above does not include variable consideration.

Note: Increase in contract assets is primarily due to higher revenue recognition as compared to progress billing during the year in certain projects, whereas increase in contract liabilities is due to higher progress billing as compared to revenue recognition during the year in certain other projects.

(ii) Revenue recognised during the year from opening balance of contract liabilities (i.e. due to customers) amounts to I 15,947.82 Lakhs (31 March 2023: I 7,546.74 Lakhs).

(iii) Revenue recognised during the year from the performance obligation satisfied upto previous year amounts to Nil (31 March 2023: Nil).

(e) Cost to obtain or fulfil the contract:

i. Amount of amortisation recognised in Statement of Profit and Loss during the year: Nil (31 March 2023: Nil)

ii. Amount recognised as contract assets as at 31 March 2024: Nil (31 March 2023: Nil)

NOTE 40 LEASES - IND AS 116

Right-of-use Assets:

The net carrying value of right-of-use assets as at 31 March 2024 of I 2,470.93 Lakhs (31 March 2023: I 4,150.99 Lakhs) have been disclosed on the face of the balance sheet. (Also refer note 3B)

Lease liabilities:

(i) As at 31 March 2024, the lease obligations aggregating I 2,708.68 Lakhs (31 March 2023: I 4,144.25 Lakhs) which have been classified to lease liabilities on the face of the balance sheet. (Also refer note 18)

NOTE 41 CAPITAL MANAGEMENT

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The Company strives to safeguard its ability to continue as a going concern so that they can maximise returns for the shareholders and benefits for other stake holders. The aim to maintain an optimal capital structure and minimise cost of capital.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may return capital to shareholders, issue new shares or adjust the dividend payment to shareholders (if permitted). Consistent with others in the industry, the Company monitors its capital using the gearing ratio which is total debt divided by total capital (equity).

(iii) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(v) The Company has 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 has 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 such 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 wilful defaulter by any bank or financial institution or government or any government authority.

(ix) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

(x) The Company has not entered into any scheme of arrangement which has an accounting impact on the current or previous financial year.

NOTE 45 DISCLOSURE FOR MAINTENANCE OF BOOKS OF ACCOUNTS WITH AUDIT TRAIL (EDIT LOG)

During the year, the Company has used a particular accounting software for maintaining books of accounts for all its projects in India and a different Accounting software for its overseas projects. The accounting software used by the Company in India has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. The said software had an option to disable the audit trail (edit log) facility in tables for changing the configuration of audit trail (edit log).

In respect of accounting software of one of the overseas projects, the audit trail (edit log) feature was enabled during the year by upgrading to an advanced version of the accounting software whereas in another overseas project, the audit trail feature was enabled after the year end.

Further, for the periods where the audit trail (edit log) facility was enabled and operational, we did not come across any instance of the audit trail feature being tampered with.

NOTE 46 Previous period figures have been regrouped/reclassified whereever necessary, to conform to the current period’s classification.

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Mar 31, 2023

Provisions, Contingent Liabilities and Contingent Assets

A provision is recognised when the Company has a
present obligation (legal or constructive) as a result of
past events and it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation, in respect of which a reliable estimate
can be made of the amount of obligation. Provisions
(excluding gratuity and compensated absences) are
determined based on management’s estimate required
to settle the obligation at the Balance Sheet date. In
case the time value of money is material, provisions are
discounted using a current pre-tax rate that reflects 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. These are reviewed at each
Balance Sheet date and adjusted to reflect the current
management estimates.

Contingent liabilities are disclosed in respect of possible
obligations that arise from past events, whose existence
would be confirmed by the occurrence or non-occurrence
of one or more uncertain future events not wholly within
the control of the Company. A contingent liability also
arises, in rare cases, where a liability cannot be recognised
because it cannot be measured reliably.

Contingent assets are disclosed where an inflow of
economic resources is probable.

xxiii. Commitments

Commitments are future liabilities for contractual
expenditure, classified and disclosed as estimated
amount of contracts remaining to be executed on capital
account and not provided for.

xxiv. Exceptional Items

When items of income and expense within profit or
loss from ordinary activities are of such size, nature
or incidence that their disclosure is relevant to explain
the performance of the enterprise for the period, the
nature and amount of such material items are disclosed
separately as exceptional items.

xxv. Recent accounting pronouncements

The 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. On 31 March 2023, MCA
amended the Companies (Indian Accounting Standards)
Amendment Rules, 2023, as below:

Amendment to Ind AS 1, Presentation of Financial
Statements

This amendment requires the companies to disclose their
material accounting policies rather than their significant
accounting policies. Accounting policy information,
together with other information, is material when it can
reasonably be expected to influence decisions of primary
users of financial statements.

Amendment to Ind AS 8, Accounting Policies,
Changes in Accounting Estimates and Errors

The amedments replace the definition of a change in
accounting estimates with a definition of accounting
estimates. Under the new definition, accounting estimates
are “monetary amounts in financial statements that are
subject to measurement uncertainty”. The amendments

clarify the distinction between changes in accounting
estimates and changes in accounting policies and
the correction of errors. Also, they clarify how entities
use measurement techniques and inputs to develop
accounting estimates.

Amendment to Ind AS 12, Income Taxes

The amendments clarify how companies account
for deferred tax on transactions such as leases and
decommissioning obligations. The amendment has
narrowed the scope of the initial recognition exemption
so that it does not apply to transactions that give rise to
equal and offsetting temporary differences. Accordingly,
companies will need to recognise a deferred tax asset
and a deferred tax liability for temporary differences
arising on transactions such as initial recognition of a
lease and a decommissioning provision.

These amendments shall come into force with effect from
1 April 2023. The Company is assessing the potential
effect of the amendments on its financial statements. The
Company will adopt these amendments, if applicable,
from applicability date.

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Dec 31, 2016

1. Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of H1 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed if any by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except interim dividend.

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, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date.

The Company has not issued any bonus shares, shares for consideration other than cash and bought back any shares during five years immediately preceding the reporting date.

3. Out of the total issued capital, 25,260 (Previous year : 25,260) equity shares of H1 each have been kept in abeyance pending final settlement of rights issues.

Rupee term loan from bank (secured)

Term loan obtained from Doha Bank carries an interest rate of 10.15 percent per annum and repayable in 3 installments starting from November 2017. This loan is secured by hypothecation of Kolkata area depot land.

Term loan obtained from Vijaya Bank carried an interest rate of 12.25 percent per annum and has been fully repaid during the year. This loan was secured by hypothecation of Kolkata area depot land.

Rupee term loans from other parties (secured)

Term loan obtained from Indiabulls Housing Finance Limited carried an interest rate of 13.50 percent per annum and has been fully repaid during the year. This loan was secured by hypothecation of Kolkata office premises

Term loan obtained from Tata Capital Financial Services Limited carried an interest rate of 13 percent per annum and has been fully repaid during the year. This loan was secured by hypothecation of the office purchased out of this loan.

Plant loans from bank (secured)

Loan obtained from Axis bank for purchase of commercial vehicle /construction equipment carries interest rate ranging between 10.75 to 11.03 percent per annum and are repayable in 36 monthly installments. These loans are secured by first and exclusive charge on specific vehicle/equipment financed by the bank.

Loan obtained from Kotak Mahindra Bank Ltd. for purchase of commercial vehicle /construction equipment carries an interest rate of 9.65 percent per annum and are repayable in 46 to 58 monthly installments. These loans are secured by first and exclusive charge on specific vehicle/equipment financed by the bank.

Plant loans from other party (secured)

Loans obtained from Tata Capital Limited for purchase of construction equipment carry interest rate ranging between 11.00 to 12.50 percent per annum and are repayable in 29 to 60 monthly installments. These loans are secured by first and exclusive charge on specific equipment financed by the institution.

Vehicle loans from bank (secured)

Loan obtained from Axis Bank for purchase of vehicles carry interest rate ranging between 9.51 to 10.50 percent per annum and are repayable in 60 monthly installments. These loans are secured by hypothecation of the vehicles purchased out of these loans.

Cash credit facilities (secured)

Cash credit facilities are availed from consortium bankers carries various interest rates ranging from 11.00 to 15.15 percent per annum and are secured by first pari passu charge on the current assets and movable plant and machinery other than those hypothecated against plant loans. These facilities are payable on demand.

4. Short-term borrowings (contd.)

Working capital demand loan (secured)

Working capital demand loan carry interest rate ranging from 9.70 to 12.00 percent per annum and are secured by first pari passu charge on the current assets and movable plant and machinery other than those hypothecated against plant loans. These facilities are payable on demand.

Commercial Paper (unsecured)

Commercial Paper is issued to HDFC Trustee Company Limited and Escorts Mutual Fund carries interest rate ranging between 10.00 to 10.50 percent.

5. Provident fund

The Company''s expense for the provident fund aggregates H966.47 lakhs during the year ended31 December 2016 (31 December 2015 - Rs.774.51 lakhs).

Provident fund of employees is managed by the Company through trust "ITD Cementation India Limited Workmen Provident Fund" In line with the Provident Fund and Miscellaneous Provision Act, 1952. The plan guarantees interest at the rate notified by the Provident Fund Authorities. The contribution by the employer and employee together with the interest accumulated thereon are payable to employees at the time of separation from the Company or retirement, whichever is earlier. The benefits vests immediately on rendering of the services by the employee.

In terms of the guidance note issued by the Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India for measurement of provident fund liabilities, the valuer has certified that there is no shortfall as at 31 December 2016 and 31 December 2015.

6. Superannuation

The Company''s expense for the superannuation, a defined contribution plan aggregates Rs.565.11 lakhs during the year ended 31 December 2016 (31 December 2015 – Rs.388.19 lakhs) .

7. Leave entitlement

The liability for leave entitlement and compensated absences as at 31 December 2016 is Rs.1,033.49 lakhs (31 December 2015 : Rs.792.54 lakhs).

8.. Related Party Disclosures :

9. Names of related parties and description of relationship A Enterprise where control exists

10. Holding Company

Italian-Thai Development Public Company Limited

11. Subsidiary Company

ITD Cementation Projects India Limited B Other related parties with whom the Company had transactions i) Joint Ventures (unincorporated)

ITD Cemindia JV ITD - ITD Cem JV

ITD - ITDCem JV (Consortium of ITD - ITD Cementation)

ITD - Cem Maytas Consortium CEC - ITD Cem-TPL JV

ii) Key management personnel (KMP)

Mr. Adun Saraban - Managing Director Mr. S. Ramnath - Chief Financial Officer

Mr. Rahul Neogi - Company Secretary (appointed w.e.f. 1st February 2017) Mr. R C. Daga - Company Secretary (retired on 31st January 2017)

12. Fellow subsidiary

First Dhaka Elevated Expressway (FDEE) Company Limited

13. (a) Long-term trade receivables at 31 December 2016 include variation claims of Rs.309 lakhs (31 December 2015 – Rs.309 lakhs) for which the Company had received an arbitration award in its favour which has subsequently been upheld by the District Court. The customer has challenged this Court Order. However, based on the above arbitration award, Court Order and legal opinion, management is reasonably confident of recovery of these amounts.

14. Long-term trade receivables and unbilled work-in-progress at 31 December 2016 include Rs.1,139.96 lakhs (31 December 2015 - Rs.1,139.96 lakhs ) and Rs.2,755.80 lakhs (31 December 2015 - Rs.2,755.80 lakhs), in respect of a contract which has been rescinded by the Company and long-term trade receivables and unbilled work-in-progress as at 31 December 2016 includes Rs. 1,414.41 lakhs (31 December 2015 - Rs.1,414.41 lakhs) and Rs.5,921.77 lakhs (31 December 2015 - Rs.5,921.77 lakhs) respectively, in respect of another contract where the Company has received a notice from the customer withdrawing from the Company the balance works to be executed under the contract for which the Company has also issued guarantees aggregating Rs.1,497.13 lakhs (31 December 2015 - Rs.1,497.13 lakhs). The Company has made claims against the customer to recover these amounts and has initiated legal action. Based upon legal opinion received, management is reasonably confident of recovery of these amounts of long term trade receivable and unbilled work-in-progress and consequently no changes have been made to the values and classification of these amounts in the financial statements.

15. During the previous year ended 31 December 2015, the Company had signed a definitive agreement with the National Highways Authority of India (NHAI) under which both parties have agreed to settle all awards received, claims under consideration at various forums, pending disputes and amounts outstanding in the Company''s and joint venture''s books of account under trade receivables and unbilled work-in-progress in respect of all the contracts executed by the company and Joint Venture. Pursuant to this settlement the Company including its share in Joint Venture had accounted for the resultant loss on the settlement of Rs.12,397.19 lakhs which had been disclosed as an exceptional item.

16. Operating lease

17. The Company has taken various residential/commercial premises and construction equipment on cancellable operating lease. These lease agreements are normally renewed on expiry. Rental expenses in the statement of profit and loss for the year includes lease payments towards premises Rs.2,010.60 lakhs (31 December 2015 - Rs.1,974.18 lakhs).

18. General descriptions of non-cancellable lease terms :

- Lease rentals are charged on the basis of agreed terms.

- Assets are taken on lease over a period of 3-5 years.

- The Company did not sublease any of its assets and hence did not receive any sub lease payments during the current or previous year.

19. The tax year for the Company being the year ending 31 March, the provision for taxation for the year is the aggregate of the provision made for the three months ended 31 March 2016 and the provision based on the figures for the remaining nine months up to 31 December 2016, the ultimate tax liability of which will be determined on the basis of the figures for the period 1 April 2016 to 31 March 2017.

20. Previous year figures have been regrouped or reclassified, to conform to the current year''s presentation wherever considered necessary.

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Dec 31, 2014

1. CORPORATE INFORMATION

ITD Cementation India Limited (''ITD Cem'' or ''the Company'') was incorporated in 1978 and is engaged in construction of a wide variety of structures like maritime structures, mass rapid transport systems (MRTS), dams & tunnels, airports, highways, bridges & flyovers, buildings and other foundations and specialist engineering work. The activities of the Company comprise only one business segment viz Construction.

2. 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. The dividend proposed, if any by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except interim dividend.

During the year; Rs. Nil (31 December 2013 : Rs. 1.00) per share dividend recognised as distributions to equity share holders.

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, if any The distribution will be in proportion to the number of equity shares held by the shareholders.

3. a) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding 31 December 2014

The Company has not issued any bonus shares nor has there been any buy back of shares during five years immediately preceding 31 December 2014.

b) Out of the total issued capital, 2,526 (31 December 2013 : 2,526) equity shares of Rs. 10 each have been kept in abeyance pending final settlement of rights issues.

c) The Company has issued and allotted 4,000,000 equity shares of Rs. 10 each fully paid for cash at a premium of Rs. 350 per equity share to Qualified Institutions Buyers ("QIB") aggregating to Rs. 14,400 lakhs.

Expenses in relation to shares issued to QIB aggregating to Rs. 400.94 lakhs debited to Securities premium account.

4. Long-term borrowings

Rupee term loan - from bank (secured)

Term loan obtained from Vijaya Bank carries interest rate of 12.25 percent per annum and repayable in 3 monthly installments of starting from November 2015. This loan is secured by hypothecation of Kolkata area depot land.

Rupee term loans from others (secured)

Loan obtained from Indiabulls Housing Finance Limited for purchase of office premises (Kolkata) carries an interest rate of 13.50 percent per annum and is repayable in 84 monthly installments commenced from April 2013. This loan is secured by hypothecation of the office purchased out of this loan.

Loan obtained from Tata Capital Financial Services Limited carries an interest rate of 13 percent per annum and is repayable in 24 monthly installments commenced from April 2014. This loan is secured by first and exclusive charge on specific equipments financed by the institution.

Plant loans from financial institution (secured)

Loans obtained from Tata Capital Limited for purchase of construction equipment carry interest rate ranging between 13.01 to 13.25 percent per annum and are repayable in 57 to 84 monthly installments. These loans are secured by first and exclusive charge on specific equipments financed by the institution.

Vehicle loans from bank (secured)

Loan obtained from AXIS Bank for purchase of vehicles carry interest rate ranging between 10 to 10.5 percent per annum and are repayable in 60 monthly installments. These loans are secured by hypothecation of the vehicles purchased out of these loans.

Term loan - from financial institution (unsecured)

Term loan obtained from SREI Equipment Finance Private Limited carries interest rate of 11.56 percent per annum. These loans are repayable in 29 monthly installments commenced from September 2012.

5. Working capital loan from banks

Working capital loans availed from consortium bankers carries interest rates ranging between 11.7 to 15.7 percent per annum and are secured by first pari passu charge on the current assets and movable plant and machinery other than those charged in favour of Tata Capital Limited. These facilities are repayable on demand.

Buyer''s credit

Buyer credit loans obtained from bankers carries interest of LIBOR plus 1.5 to 3.5 percent per annum (quarterly rests). These loans are secured by first pari passu charge on the current assets and movable plant and machinery other than those charged in favour ofTata Capital Limited.

* Face value of Rs. 10 each, unless otherwise stated

** The Company has 80% share in ITD Cemindia JV, 49% share in ITD-ITDCem JV 40% share in ITD-ITDCem JV (Consortium of ITD-ITD Cementation) and 95% share in ITD Cem-Maytas Consortium. These joint ventures are jointly controlled entities formed in India. The extent of investment in these unincorporated joint ventures represents entirely the Company''s share of profits /(losses) after tax in the joint ventures from inception to date, as reduced by the distribution of profit by the joint ventures, if any

6. Contingent Liabilities

Year ended Year ended 31st December 31st December 2014 2013 a) Guarantees given by banks in respect of contracting commitments in the normal course 23,503.42 27,117.78

of business

b) Corporate Guarantee given to bank on behalf of Joint Ventures 51,000.00 51,000.00

c) The Company has a number of claims on customers for price escalation and / or variation in contract work. 12,016.77 12,244.58 In certain cases which are currently under arbitration, the customers have raised counter-claims. The Company has received legal advice that none of the counter-claims are legally tenable. Accordingly no provision is considered necessary in respect of these counter claims.

d) Sales Tax matters pending in appeals 2,721.46 3,469.69

e) Income Tax matters pending in appeal 1,165.44 970.68

f) Excise matter pending in appeal 52.00 52.00

Future cash outflows in respect of above matters are determinable only on receipt ofjudgments/decisions pending at various forums/authorities. The management does not expect these claims to succeed and accordingly, no provision for the contingent liability has been recognized in the financial statements.

7. The gratuity fund is invested in a Group Gratuity policy invested with the Life Insurance Corporation of India and Birla Sunlife Insurance. The fair value of plan assets with Life Insurance Corporation of India and Birla Sunlife Insurance as at 31 December 2014 are Rs. 0.15 lakhs (31 December 2013 - Rs. 0.13 lakhs) and Rs. 1,367.06 lakhs (31 December 2013 - Rs. 1,225.54 lakhs) respectively The management understands that the assets in these portfolios are well diversified and as such the long term return thereon is expected to be higher than the rate of return on Government Bonds.

The estimates of future salary increases, considered in actuarial valuation take account of inflation, seniority promotion and other relevant factors such as supply and demand in the employment market.

The Guidance Note on implementing AS I 5,"Employee Benefits", issued by the Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India states that Provident Fund set up by employers that guarantee a specified rate of return and which require interest shortfall to be met by the employer would be Defined Benefit Plan in accordance with the requirements of paragraph 26(b) of AS 15. Pursuant to the Guidance Note, the liability in respect of the shortfall of interest earnings of the fund is Nil as determined on the basis of an actuarial valuation carried out as at 31 December 2014. As per the actuarial valuation report, the interest shortfall liability being "Other Long-term Employee Benefit", detailed disclosures are not required The Company''s expense for the superannuation, a defined contribution plan aggregates Rs. 337.36 lakhs during the year (31 December 2013 - Rs. 3I5.90 lakhs).

The Company''s expense for the provident fund aggregates Rs. 798.78 lakhs during the year ended (31 December 2013 - Rs. 760.93 lakhs)

The liability for leave entitlement and compensated absences as at year end is Rs. 670.I5 lakhs (31 December 2013 : Rs. 513.I0 lakhs).

8. Segment reporting

The activities of the Company comprises of only one business segment viz Construction. The Company operates in only one geographical segment viz India. Hence the Company''s financial statements also represents the segmental information.

9. Trade receivables and Unbilled Work-in-progress as at December 31,2014 include amounts aggregating Rs. 2,655 Lakhs and Rs. 1,584 Lakhs respectively which have been outstanding for a substantial period of time. The Company has been actively negotiating for speedy recovery of the balance receivables. In view thereof, management is reasonably confident of their recovery

10. (a) Trade receivables as at 31 December 2014 representing variation claims and interim work bills recognized by the Company aggregating Rs. 6,842 lakhs (31 December 2013 : Rs. 6,849 lakhs). These claims are presently under various stage of litigations. Considering favorable arbitration awards, claims under consideration at various forums, past experience of the Company and based on the legal opinion received, the management is reasonably confident of recovery of these amounts and are expected to be realised within next twelve months..

(b) Trade receivables as at 31 December 2014 include Rs. 696 lakhs (31 December 2013 : Rs. 1,140 lakhs) relating to price escalation claims which are disputed by the customer. The Company has received an arbitration award in its favour which has subsequently been upheld by the High Court. The customer has challenged this High Court order However, based on the above arbitration award, High Court order and legal opinion, management is reasonably confident of recovery of these amounts and are expected to be realised within next twelve months.

(c) Long term trade receivables as at 31 December 2014 include variation claims of Rs. 309 lakhs (Trade receivables as at 31 December 2013 : Rs. 309 lakhs) for which the Company had received an arbitration award in its favour which has subsequently been upheld by the District Court. The customer has challenged this Court Order However based on the above arbitration award, Court Order and legal opinion, management is reasonably confident of recovery of these amounts.

(d) Long term trade receivables and unbilled work-in-progress as at 31 December 2014 include Rs. 1,140 lakhs (Trade receivables as at 31 December 2013 - Rs. 1,140 lakhs ) and Rs. 2,756 lakhs (31 December 2013 - Rs. 2,756 lakhs) respectively in respect of a contract which has been rescinded by the Company and long term trade receivable and unbilled work-in-progress as at 31 December 2014 include Rs. 1,414 lakhs (Trade receivables as at 31 December 2013 : Rs. 689 lakhs) and Rs. 5,922 lakhs (31 December 2013 - Rs. 5,922 lakhs) respectively in respect of another contract where the Company has received a notice from the customer withdrawing from the Company the balance works to be executed under the contract; for which the Company has also issued guarantees aggregating Rs. 1,497 lakhs (31 December 2013 - Rs. 2,227 lakhs). The Company has made claims against the customer to recover these amounts and has initiated legal action. Based upon legal opinion received, management is reasonably confident of recovery of these amounts of long term trade receivable and unbilled work-in-progress and consequently no changes have been made to the values and classification of these amounts in the financial statements.

(e) Trade receivables and unbilled work in progress as at 31 December 2014 includes Rs. 983 lakhs (31 December 2013 - Rs. 972 lakhs) and Rs. 16,789 lakhs (31 December 2013 - Rs. 16,829 lakhs) respectively in respect of certain road contracts which are executed by the Company The Company has made claims on the customer for recovery of these amounts. Based on the contract terms and legal opinion obtained, the management is reasonably confident of recovery of these amounts and are expected to be realised within next twelve months.

11. Short term Loans and advances as at 31 December 2014 include Rs. 6,819 lakhs on account of advances to ITD Cemindia JV Company''s joint venture. These amounts will be refunded by the joint venture on receipt of money from its customerThe joint venture had recognized various claims during earlier period based on the terms and conditions implicit in the contract, which are presently under various stage of litigations. Considering favorable arbitration award, pending claims at various forums and based on independent legal opinion, management is reasonably confident of recovery of these advances.

12. Micro, Small and Medium Enterprises

There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31 December 2014. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the Company There is no interest paid or payable during the year

13. Operating lease

a) The Company has taken various residential/commercial premises and construction equipment on cancellable operating lease.These lease agreements are normally renewed on expiry Rental expenses in the statement of profit and loss for the year includes lease payments towards premises Rs. 1,472.70 lakhs (31 December 2013 - Rs. 1,346.31 lakhs).

These leases have no escalation clauses.

Rental expenses in the statement of profit and loss for the year includes Rs. 640.89 lakhs (31 December 2013 - Rs. 627.90 lakhs) towards such non-cancellable leases.

b) General descriptions of non-cancellable lease terms :

* Lease rentals are charged on the basis of agreed terms.

* Assets are taken on lease over a period of 3-5 years.

* The Company did not sublease any of its assets and hence did not receive any sub lease payments during the current or previous year.

14. Company has unabsorbed depreciation and business loss during the year which is available for set off against future taxable income under the Income Tax Act. The Company has recognized deferred tax asset on such unabsorbed depreciation and business loss amounting Rs. 6,029 lakhs on the basis of profitable non-cancellable binding contracts in hand. Management believes that the profitable non-cancellable binding contracts in hand satisfies the test of virtual certainty with convincing evidence as required by Accounting Standard (AS) - 22 on Accounting for taxes on income.

15. The tax year for the Company being the year ending 31 March, the provision for taxation for the year is the aggregate of the provision made for the three months ended 31 March 2014 and the provision based on the figures for the remaining nine months up to 31 December 2014, the ultimate tax liability of which will be determined on the basis of the figures for the period 1 April 2014 to 31 March 2015.

16. Previous year figures have been regrouped or reclassified, to conform to the current year''s presentation wherever considered necessary

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Dec 31, 2013

I. Nature of Operations

ITD Cementation India Limited (''ITD Cem'' or ''the Company'') was incorporated in 1978 and is engaged in construction of a wide variety of structures like maritime structures, mass rapid transport systems (MRTS), dams & tunnels, airports, highways, bridges & flyovers and other foundations and specialist engineering work. The activities of the Company comprise only one business segment viz Construction.

External commercial borrowings (Buyer''s credit) :

Buyer credit loans obtained from bankers carries interest of LIBOR plus 1.5 to 3.5 percent per annum (quarterly rests). These loans are secured by first pari passu charge on the current assets and movable plant and machinery other than those charged in favor of Tata Capital Limited.

Year ended Year ended Particulars 31st December 31st December

2013 2012

1 Contingent Liabilities

a) Guarantees given by banks in respect of contracting commitments

in the normal course of business 27,117.78 31,985.67

b) Corporate Guarantee given to bank on behalf of Joint Ventures 51,000.00 44,800.00

c) The Company has a number of claims on customers for price escalation and / or variation in contract work. In certain cases which are currently under arbitration, the customers have raised counter-claims. The Company has received legal advice that none of the counter-claims are legally tenable. Accordingly no provision is considered necessary in respect of these counter claims. 12,244.58 21,044.14

d) Sales Tax matters pending in appeals 3,469.69 2,090.95

e) Income Tax matters pending in appeal 970.68 1,152.39

f) Excise matter pending in appeal 52.00 52.00

g) Subsequent to the year end, a Client of the Company has, pursuant to its contract with the Company for execution of work, invoked Bank Guarantees provided to the Client by the Company''s banks. Banks have made payments to the Client aggregating to Rs. 9,200 lakh. The Company is currently in dialogue with the Client to resolve the matter amicably and the Company has reasons to believe that the matter will be favourably resolved.

The gratuity fund is invested in a Group Gratuity policy invested with the Life Insurance Corporation and Birla Sunlife Insurance. The fair value of plan assets with Life Insurance Corporation and Birla Sunlife Insurance as at 31st December 2013 are Rs. 0.13 lakh (31st December 2012 - Rs. 0.13 lakh) and Rs. 1,225.54 lakh (31st December 2012 - Rs. 1,216.71 lakh) respectively. The management understands that the assets in these portfolios are well diversified and as such the long term return thereon is expected to be higher than the rate of return on Government Bonds.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled.

The estimates of future salary increases, considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

The Guidance Note on implementing AS 15,"Employee Benefits", issued by the Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India states that Provident Fund set up by employers that guarantee a specified rate of return and which require interest shortfall to be met by the employer would be Defined Benefit Plan in accordance with the requirements of paragraph 26(b) of AS 15. Pursuant to the Guidance Note, the liability in respect of the shortfall of interest earnings of the fund is Nil as determined on the basis of an actuarial valuation carried out as at 31st December, 2013. As per the actuarial valuation report, the interest shortfall liability being "Other Long-term Employee Benefit", detailed disclosures are not required.

The Company''s expense for the superannuation, a defined contribution plan aggregates Rs. 315.90 lakh during the year (31st December 2012 - Rs. 287.24 lakh) .

The Company''s expense for the provident fund aggregates Rs. 760.93 lakh during the year ended (31st December 2012 - Rs. 687.17 lakh)

The liability for leave entitlement and compensated absences as at year end is Rs. 513.10 lakh (31st December 2012 : Rs. 601.42 lakh).

2 Segment reporting

The activities of the Company comprises of only one business segment viz Construction. The Company operates in only one geographical segment viz India. Hence the Company''s financial statements also represents the segmental information.

3. Related Party Disclosures :

a. Names of related parties and description of relationship

A. Enterprise where control exists i) Holding Company

Italian-Thai Development Public Company Limited ii) Subsidiary Company

ITD Cementation Projects India Limited

B. Other related parties i) Associate

AVR Infra Private Limited ii) Joint Ventures (unincorporated) ITD Cemindia JV ITD - ITD Cem JV

ITD - ITDCem JV (Consortium of ITD - ITD Cementation) ITD-Cem Maytas Consortium

iii) Fellow subsidiary

Aquathai Co., Ltd. iv) Key management personnel (KMP)

Mr. Adun Saraban – Managing Director

Mr. S. Ramnath – Chief Financial Officer

Mr. R C. Daga - Company Secretary

4 a. Trade receivables as at 31st December 2013 include variation claims recognised by the Company aggregating Rs. 2,769 lakh (31st December 2012 : Rs. 3,278 lakh) which are disputed by the customer. Out of this claims amounting to Rs. 2,258 lakh (31st December 2012: Rs. 2,346 lakh) are a subject matter of arbitration. The Company has received arbitration award in its favor in respect of the balance amount of Rs. 511 lakh (31st December 2012 : Rs. 932 lakh) which have since been challenged by the customer. Based on the legal opinion from Company''s counsel in the matter, the management is reasonably confident of recovery of these amounts.

b. Trade receivables as at 31st December 2013 include Rs. 4,080 lakh (31st December 2012 : Rs. 3,384 lakh) representing interim work bills for work done which have not been certified by customers beyond normal periods of certification. The management is reasonably confident of the certification and recovery of the same progressively on these contracts based on past experience of the Company, assessment of work done and the fact that these amounts are not disputed by the customer and based on the legal opinion received on this matter.

c. Trade receivables as at 31st December 2013 include Rs. 1,140 lakh (31st December 2012 : Rs. 1,140 lakh) relating to price escalation claims which are disputed by the customer. The Company has received an arbitration award in its favour which has subsequently been upheld by the High Court. The customer has challenged this High Court order. However, based on the above arbitration award, High Court order and legal opinion, management is reasonably confident of recovery of these amounts.

d. Trade receivables as at 31st December 2013 include variation claims of Rs. 309 lakh (31st December 2012 : Rs. 309 lakh) for which the Company had received an arbitration award in its favor which has subsequently been upheld by the District Court. The customer has challenged this Court Order. However, based on the above arbitration award, Court Order and legal opinion, management is reasonably confident of recovery of these amounts.

e. Trade receivables and unbilled work-in-progress as at 31st December 2013 include Rs. 1,140 lakh (31st December 2012 - Rs. 616 lakh ) and Rs. 2,756 lakh (31st December 2012 - Rs. 2,757 lakh) respectively, in respect of a contract which has been rescinded by the Company and trade receivable and unbilled work-in-progress as at 31st December 2013 include Rs. 689 lakh (31st December 2012 : Nil) and Rs. 5,922 lakh (31st December 2012 - Rs. 5,929 lakh) respectively, in respect of another contract where the Company has received a notice from the customer withdrawing from the Company the balance works to be executed under the contract; for which the Company has also issued guarantees aggregating Rs. 2,227 lakh (31st December 2012 - Rs. 2,227 lakh). The Company has made claims against the customer to recover these amounts and has initiated legal action. Based upon legal opinion received, management is reasonably confident of recovery of these amounts of trade receivable and unbilled work-in-progress and consequently no changes have been made to the values and classification of these amounts in the financial statements.

f. Trade receivables and unbilled work in progress as at 31st December 2013 includes Rs. 972 lakh (31st December 2012 - Rs. 1,004 lakh) and Rs. 16,829 lakh (31st December 2012 - Rs. 17,222 lakh) respectively in respect of certain road contracts which are currently being executed by the Company. The customer has already granted two extensions of time and the Company''s request for further extension is under consideration. The Company has made claims on the customer for recovery of these amounts. Based on the contract terms and legal opinion obtained, the management is reasonably confident of recovery of these amounts.

5 Micro, Small and Medium Enterprises

There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st December 2013. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the statutory auditors.

6 Operating lease

a. The Company has taken various residential/commercial premises and construction equipment on cancellable operating lease. These lease agreements are normally renewed on expiry. Rental expenses in the statement of profit and loss for the year includes lease payments towards premises Rs. 1,778.31 lakh (31st December 2012 - Rs. 1,765.63 lakh). Plant hire expense relates to the lease payment for construction equipment.

These leases have no escalation clauses.

Rental expenses in the statement of profit and loss for the year includes Rs. 195.90 lakh (31st December 2012 -,Rs. 129.09 lakh) towards such non-cancellable leases.

c. General descriptions of non-cancellable lease terms :

- Lease rentals are charged on the basis of agreed terms.

- Assets are taken on lease over a period of 3-5 years.

- The Company did not sublease any of its assets and hence did not receive any sub lease payments during the current or previous year.

7. Previous year figures have been regrouped or reclassified, to conform to the current year''s presentation wherever considered necessary.

---

Dec 31, 2012

I. Nature of Operations

ITD Cementation India Limited (''ITD Cem'' or ''the Company'') was incorporated in 1978 and is engaged in construction of a wide variety of structures like maritime structures, mass rapid transport systems (MRTS), dams & tunnels, airports, highways, bridges & flyovers and other foundations and specialist engineering work. The activities of the Company comprise only one business segment viz Construction.

a) Terms/rights attached to equity shares

The Company has only one class of equity shares having at 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. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except interim dividend.

During the year, the amount of per share dividend recognised as distributions to equity share holders was Rs.2.00 (31 December 2011 : Rs.2.00)

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, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.

b) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceeding 31 December 2012

The Company has not issued any bonus shares nor has there been any buy back of shares during five years immediately preceeding 31 December 2012.

c) Out of the total issued capital, 2,526 (31 December 2011 : 2,526) equity shares of Rs.10 each have been kept in abeyance pending final settlement of rights issues.

Plant loan from financial institution (Secured)

Loan obtained from Tata Capital Limited for purchase of vehicles and construction equipment which carries interest rate ranging between 12.75 to 13.75 percent per annum and are repayble in 36 to 60 monthly installments. These loans are secured by first and exclusive charge on vehicles and specific equipment financed by the Institution. Vehicle loan from bank (Secured)

Loan obtained from HDFC Bank for purchase of vehicles which carries interest rate 12 percent approx per annum and are repayble in 60 monthly installments. These loans are secured by hypothecation of the vehicle purchased out of this loan.

Term loan - from bank (Unsecured)

Term loan obtained from Vijaya Bank carries interest rate of base rate plus 2.50 percent per annum. These loans are repayable in six equal monthly installments commencing from January 2013.

Term loan - from financial institution (Unsecured)

Term loan obtained from SREI Equipment Finance Private Limited carries interest rate of 11.56 percent per annum. These loans are repayable in 29 monthly installments commencing from September 15, 2012.

The information on the allocation of the gratuity fund into major asset classes and the expected return on each major class is not readily available. However, the gratuity fund is invested in a Group Gratuity policy invested with the Life Insurance Corporation and Birla Sunlife Insurance. The fair value of plan assets with Life Insurance Corporation and Birla Sunlife Insurance at 31 December 2012 areRs.0.13 lakhs (31 December 2011 :Rs.0.06 lakhs) and Rs.1,216.71 lakhs (31 December 2011 :Rs.1,081.08 lakhs) respectively. The management understands that the assets in these portfolios are well diversified and as such the long term return thereon is expected to be higher than the rate of return on Government Bonds.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled.

The estimates of future salary increases, considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

In respect of provident funds, the Guidance issued by the Accounting Standards Board (''ASB'') of ICAI on implementing AS 15 states that provident funds trust is set up by employers, which requires interest shortfall to be met by the employer, needs to be treated as a defined benefit plan. The Company''s provident fund does not have any existing deficit or interest shortfall. In regard to any future obligation arising due to interest shortfall (i.e. government interest to be paid on provident fund scheme exceeds rate of interest earned on investment), pending the issuance of the Guidance Note from the Actuarial Society of India, the Company''s actuary has expressed his inability to reliably measure the same.

The Company''s expense for the superannuation, a defined contribution plan aggregates Rs.287.24 lakhs during the year ended 31 December 2012 (31 December 2011 :Rs.233.43 lakhs)

The Company''s expense for the provident fund aggregates Rs.687.17 lakhs during the year ended 31 December 2012 (31 December 2011 :Rs.593.95 lakhs)

1 Segment reporting

The activities of the Company comprises of only one business segment viz Construction. The Company operates in only one geographical segment viz India. Hence the Company''s financial statements also represents the segmental information.

2 Related Party Disclosures :

a) Names of related parties and description of relationship A Enterprise where control exists

i) Holding Company

Italian-Thai Development Public Company Limited

ii) Subsidiary Company

ITD Cementation Projects India Limited

B Other related parties

i) Associate

AVR Infra Private Limited

ii) Joint Ventures (unincorporated)

ITD Cemindia JV

ITD - ITD Cem JV

ITD - ITDCem JV (Consortium of ITD - ITD Cementation)

iii) Key management personnel (KMP)

Mr. Adun Saraban - Managing Director

Mr. S. Ramnath - Chief Financial Officer

Mr. P. B. Patwardhan - Chief Financial Officer (resigned on 30 April 2011)

3 Trade receivables at 31 December 2012 include variation claims recognised by the Company aggregating Rs.3,278 lakhs (31 December 2011 : Rs.3,455 lakhs) which are disputed by the customer. Out of this claims amounting to Rs.2,346 lakhs (31 December 2011 : Rs.2,346 lakhs) are a subject matter of arbitration. The Company has received arbitration award in its favour in respect of the balance amount ofRs.932 lakhs (31 December 2011 : Rs.1,109 lakhs) which have since been challenged by the customer. Considering the legal opinion from Company''s counsel in the matter, the management is reasonably confident of recovery of these amounts.

4 Trade receivables as at 31 December 2012 include Rs. 3,384 lakhs (31 December 2011 : Rs.3,384 lakhs) representing interim work bills for work carried out by the Company which have not been certified by customers beyond normal periods of certification. The management is reasonably confident of the certification and recovery of the same progressively on these contracts based on past experience of the Company, assessment of work done and the fact that these amounts are not disputed by the customer and based on the legal opinion received on this matter.

5 Trade receivables at 31 December 2012 include Rs.1,140 lakhs (31 December 2011 : Rs.1,140 lakhs) relating to price escalation claims which are disputed by the customer. The Company has received favourable verdict from Dispute Redressal Board and also thereafter in Arbitration in respect of these claims. The Customer has appealed against the Arbitration Award. Management is reasonably confident of recovery of this amount based on the above and independent legal opinion from eminent legal counsel in the matter.

6 Trade receivables at 31 December 2012 include variation claims of Rs.309 lakhs (31 December 2011 : Rs.309 lakhs) for which the Company had received an arbitration award in its favour which has subsequently been upheld by the District Court. The customer has challenged this Court Order. However, based on the above arbitration award, Court Order and legal opinion, management is reasonably confident of recovery of these amounts.

7 Trade receivables and Unbilled work-in-progress at 31 December 2012 include Rs.616 lakhs (31 December 2011 : Nil ) and Rs.2,757 lakhs (31 December 2011 : Rs.2,757 lakhs), in respect of a contract which has been rescinded by the Company and Rs.5,929 lakhs (31 December 2011 : Rs.5,929 lakhs) in respect of another contract where the Company has received a notice from the customer withdrawing from the Company the balance works to be executed under the contract; besides the Company has also issued guarantees aggregating Rs.2,227 lakhs (31 December 2011 : Rs.2,227 lakhs). The Company has made claims against the customer to recover these amounts and has initiated legal action. Based upon legal opinion received, management is reasonably confident of recovery of these amounts of work in progress and consequently no changes have been made to the values and classification of these amounts in the financial statements.

8 Trade receivables and Unbilled work in progress as at 31 December 2012 includes Rs.1,004 lakhs and Rs.17,222 lakhs, respectively in respect of certain road contracts which are currently being executed by the Company. The customer has already granted two extensions of time and the Company''s request for further extension is under consideration. These projects are yet to be taken over by the customer. The Company has made claims on the customer for recovery of these amounts. Considering the contractual tenability and legal opinion obtained, the management is reasonably confident of recovery of these amounts.

9 Micro, Small and Medium Enterprises

There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at December 31, 2012. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the statutory auditors.

10 Operating lease

a) The Company has taken various residential/commercial premises and construction equipment on cancellable operating lease. These lease agreements are normally renewed on expiry. Rental expenses in the statement of profit and loss for the year includes lease payments towards premises Rs.1,765.63 lakhs (31 December 2011 -Rs.1,596.14 lakhs). Plant hire expense relates to the lease payment for construction equipments.

b) The Company, in addition to above, has taken construction equipments on leases (non-cancellable operating leases). The future minimum lease payments in respect of which as at 31 December 2012 are as follows:

These leases have no escalation clauses.

Rental expenses in the statement of profit and loss for the year includes Rs.129.09 lakhs (31 December 2011 : Rs.499.09 lakhs) towards such non-cancellable leases.

c) General descriptions of non-cancellable lease terms :

Lease rentals are charged on the basis of agreed terms.

Assets are taken on lease over a period of 3-5 years.

The Company did not sublease any of its assets and hence did not receive any sub lease payments during the current or previous year.

11 The Company has changed the basis of measurement of percentage of completion from ''physical proportion of the contract work'' to ''proportion of contract costs incurred for the work performed to date to the estimated total contract costs''. Consequent to the change in method, turnover is lower by Rs.713 lakhs and profit before tax is higher by Rs.80 lakhs for the year ended 31 December 2012.

12 Further in respect of existing contracts, the Company has adopted a policy of recording trade receivables only to the extent these are certified by the customer. Consequent to this change, uncertified receivables as of December 31, 2011 amounting toRs.25,391 lakhs have been reclassified from trade receivables to unbilled work in progress with respect to running contracts.

13 During the year cheque was stolen and fraudulently encashed from Company''s bank account for a sum of Rs.54.24 lakhs and the same was subsequently recovered by the Company. Investigation to apprehend the culprits involved in the incident is in process.

14 Prior year comparatives

The financial statements for the year ended 31 December 2011 has been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended 31 December 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year''s classification.

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Dec 31, 2011

(i) SEGMENT REPORTING

The activities of the Company comprise only one business segment viz Construction. The Company operates in only one geographical segment viz India. Hence the Company's financial statements also represents the segmental information

(ii) RELATED PARTY TRANSACTIONS

(a) Name of related parties where control exists irrespective of whether transactions have occurred or not.

Italian-Thai Development Public Company Limited - Holding Company

ITD Cementation Projects India Limited - Wholly Owned Subsidiary Company

(iii) (a) Sundry debtors at December 31, 2011 include Rs. 1,140 lakhs (December 31, 2010 - Rs. 1,140 lakhs) relating to price escalation claims which are disputed by the customer. The Company has received favourable verdict from Dispute Redressal Board and also thereafter in Arbitration in respect of these claims. The Customer has appealed against the Arbitration Award. Management is reasonably confident of recovery of this amount based on the above and independent legal advice from eminent legal counsel in the matter. These contracts have been completed and hence during the year ended December 31, 2011, the Company has not recognised any turnover or escalation claims on these road contracts.

(b) Sundry debtors at December 31, 2011 include variation claims of Rs. 309 lakhs (December 31, 2010 - Rs. 309 lakhs) for which the Company had received an arbitration award in its favour which has subsequently been upheld by the district court. The Customer has challenged this Court Order. However on the basis of above arbitration award and Court Order management is reasonably confident of recovering of these amounts.

(iv) Work-in-progress at December 31, 2011 include Rs. 2,757 lakhs (December 31, 2010 - Rs. 2,757 lakhs), in respect of a contract which has been rescinded by the Company and Rs. 5,929 lakhs (Decemebr 31, 2010 - Rs. 5,929 lakhs) in respect of another contract where the Company has received a notice from the customer withdrawing from the Company the balance works to be executed under the contract; besides the Company has also issued guarantees aggregating Rs. 616 lakhs (Decemebr 31, 2010 - Rs. 616 lakhs) and Rs. 2,227 lakhs (Decemebr 31, 2010 - Rs. 2,227 lakhs) for these contracts respectively. The Company has made claims against the customer to recover these amounts and intends to pursue these matters, if necessary, through legal action. Based upon legal advice received, management is reasonably confident of recovery of these amounts of work in progress and consequently no changes have been made to the values and classification of these amounts in the financial statements.

(v) Sundry debtors at December 31, 2011 include variation claims of Rs. 3,455 lakhs (December 31, 2010 - Rs. 3,910 lakhs) recognised up to December 31, 2011, which are disputed by the customer. Out of this, claims amounting to Rs. 2,346 lakhs (December 31, 2010 - Rs. 2,346 lakhs) are a subject matter of arbitration. The Company has received arbitration awards in its favour in respect of the balance amount of Rs. 1,109 lakhs (December 31, 2010 - Rs. 1,564 lakhs) which have since been challenged by the customer (December 31, 2010 - Rs. 1,109 lakhs). During the year ended December 31, 2011, no variation claim was recognised by the Company. Considering the contractual tenability and legal advice from Company's counsel in the matter, the management is reasonably confident of recovery of the same.

(vi) Sundry debtors at December 31, 2011 include Rs. 3,384 lakhs (December 31, 2010 - Rs. 3,384 lakhs) representing interim work bills for work done which have not been certified by customers beyond normal periods Offi certification provided in the respective contracts. The management is reasonably confident of the certification and recovery of the same progressively on these contracts based on past experience of the Company, assessment of work done and the fact that these amounts are not disputed by the customer.

(vii) As per the information available with the Company, there are no Micro, Small and Medium Enterprises, as defined in the Micro, Small, Medium Enterprises Development Act, 2006, to whom the Company owes dues on account of principal or interest.

The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

(viii) OPERATING LEASES

a. The Company has taken various residential/commercial premises and construction equipments on cancelable operating leases. These lease agreements are normally renewed on expiry. Rental expenses in the profit and loss account for the year includes lease payments towards premises of Rs. 1,596.13 lakhs (2010 - Rs. 1,077.54 lakhs). Plant hire expense relates to the lease payments for construction equipments.

b. The Company, in addition to the above, has taken construction equipments on lease (non-cancelable operating leases), the future minimum lease payments in respect of which at 31 December 2011 are as follows:

These leases have no escalation clauses.

Rental expenses in the statement of profit and loss for the year includes Rs. 499.09 lakhs (2010 - Rs. 1,027.04 lakhs) towards such leases.

c. General descriptions of non-cancelable lease terms :

i. Lease rentals are charged on the basis of agreed terms.

ii. Assets are taken on lease over a period of 3-5 years.

iii The Company did not sublease any of its assets and hence did not receive any sub lease payments during the current or previous year.

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Dec 31, 2010

2010 2009

(i) CONTINGENT LIABILITIES

a) Guarantees given by banks in respect of normal contracting commitments given in the normal course of business. 17,767.28 17,230.27

b) Corporate Guarantee given to bank on behalf of Joint Venture. - 1,500.00

c) The Company has a number of claims on customers for price escalation and / or variation in contract work. In certain cases which are currently under arbitration, the customers have raised counter-claims. The Company has received legal advice that none of the counter-claims are legally tenable. Accordingly no provision is considered necessary in respect of these counterclaims. 21,058.14 21,074.14

d) Sales tax matters pending in appeals 505.05 310.74

e) Income tax matters pending in appeals 2,262.89 2,276.48

f) Excise matter pending in appeal 52.00 52.00

(ii) SEGMENT REPORTING

The activities of the Company comprise only one business segment viz Construction. The Company operates in only one geographical segment viz India. Hence the Companys financial statements also represents the segmental information.

(iii) RELATED PARTYTRANSACTIONS

(a) Name of related parties where control exists irrespective of whether transactions have occurred or not.

Italian-Thai Development Public Company Limited - Holding Company

ITD Cementation Projects India Limited - Wholly Owned Subsidiary Company

(b) Other entities with whom transactions have taken place

Nameof Related Parties Nature of Relationship

ITD Cemindia JV Joint Venture

ITD - ITDCem JV Joint Venture

ITD - ITDCem JV (Consortium of ITD - ITD Cementation) Joint Venture

AVR Infra Pvt. Ltd. Associate

(iv) (a) Sundry debtors at December 31, 2010 include Rs. 1,140 lakhs (December 31, 2009 - Rs. 1,140 lakhs) relating to price escalation claims which are disputed by the customer. The Company has received favourable verdict from Dispute Redressal Board and also thereafter in Arbitration in respect of these claims. The Customer has appealed against the Arbitration Award. Management is reasonably confident of recovery of this amount based on the above and independent legal advice from eminent legal counsel in the matter. These contracts have been completed and hence during the year ended December 31, 2010, the Company has not recognised any turnover or escalation claims on these road contracts.

(b) Sundry debtors at December 31, 2010 include variation claims of Rs. 1,515 lakhs (December 31, 2009 - Rs. 1,515 lakhs) for which the Company had received an arbitration award in its favour which has subsequently been upheld by the district court.The Customer has challenged this Court Order. However on the basis of above arbitration award and Court Order management is reasonably confident of recovering of these amounts.

(c) Sundry debtors at December 31,2010 include variation claims of Rs. 309 lakhs (December 31,2009 - Rs. 309 lakhs) for which the Company had received an arbitration award in its favour which has subsequently been upheld by the district court. The Customer has challenged this Court Order. However on the basis of above arbitration award and Court Order management is reasonably confident of recovering of these amounts.

(v) Work-in-progress at December 31, 2010 include Rs. 1,812 lakhs, in respect of a contract which has been rescinded by the Company and Rs. 2,174 lakhs in respect of another contract where the Company has received a notice from the customer withdrawing from the Company the balance works to be executed under the contract; besides the Company has also issued guarantees aggregating Rs. 616 lakhs and Rs. 2,227 lakhs. The Company intends to pursue these matters, if necessary, through legal action. Based upon legal/expert advice received, management is reasonably confident of recovery of these amounts of work in progress.

(vi) Sundry debtors at December 31, 2010 include variation claims of Rs. 3,910 lakhs (December 31, 2009 - Rs. 5,042 lakhs) recognised upto December 31,2010, which are disputed by the customer. Out of this, claims amounting to Rs. 2,346 lakhs (December 31, 2009 - Rs. 2,801 lakhs) are a subject matter of arbitration. The Company has received arbitration awards in its favour in respect of the balance amount of Rs. 1,564 lakhs (December 31, 2009 - Rs. 2,241 lakhs) of which, an amount of Rs. 1,109 lakhs (December 31, 2009- Rs. 2,241 lakhs) have since been challenged by the customer. During the year ended December 31, 2010, no variation claim was recognised by the Company. Considering the contractual tenability and legal advice from Companys counsel in the matter, the management is reasonably confident of recovery of the same.

(vii) Sundry debtors at December 31, 2010 include Rs 3,384 lakhs (December 31, 2009 - Rs. 3,384 lakhs) representing interim work bills for work done which have not been certified by customers beyond normal periods of certification provided in the respective contracts. The management is reasonably confident of the certification and recovery of the same progressively on these contracts based on past experience of the Company, assessment of work done and the fact that these amounts are not disputed by the customer.

(viii) As per the information available with the Company, there are no Micro, Small and Medium Enterprises, as defined in the Micro, Small, Medium Enterprises Development Act, 2006, to whom the Company owes dues on account of principal or interest.

The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.This has been relied upon by the auditors.

(ix) OPERATING LEASES

a The Company has taken various residential/commercial premises and construction equipments on cancellable operating lease. These lease agreements are normally renewed on expiry. Rental expenses in the profit and loss account for the year includes lease payments towards premises of Rs. 1,077.54 lakhs (2009 - Rs. 938.00 lakhs). Plant hire expense relates to the lease payment for construction equipments.

c. General descriptions of non-cancellable lease terms

i Lease rentals are charged on the basis of agreed terms.

ii. Assets are taken on lease over a period of 3-5 years.

iii. The Company did not sub lease any of its assets and hence did not receive any sub leases payments during the current or previous year.

(x) Prior year figures have been reclassed wherever necessary to confirm to the current years presentation.

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Dec 31, 2009

2009 2008

1. CONTINGENT LIABILITIES

(a) Guarantees given by banks in respect of normal contracting commitments given in the normal course of business 23,580.90 20,277.26

(b) Corporate Guarantee given to bank on behalf of Joint Venture 1,500.00 11,000.00

(c) The Company has a number of claims on customers for price escalation and/or variation in contract work. In certain cases which are currently under arbitration, the customers have raised counter-claims. The Company has received legal advice that none of the counter-claims are legally tenable. Accordingly no provision is considered necessary in respect of these counter claims 21,074.14 15,816.22

(d) Sales tax matters pending in appeals 310.74 138.50

(e) Service tax matters under dispute -- 173.50

(f) Income tax matters pending in appeal 2,276.48 2,273.81

(g) Excise matter pending in appeal 52.00 52.00

The estimates of future salary increases, considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

In respect of provident funds, the Guidance issued by the Accounting Standards Board (ASB) on implementing AS 15 states that provident funds set up by employers, which requires interest shortfall to be met by the employer, needs to be treated as a defined benefit plan. The Companys provident fund does not have any existing deficit or interest shortfall. In regard to any future obligation arising due to interest shortfall (i.e. government interest to be paid on provident fund scheme exceeds rate of interest earned on investment), pending the issuance of the Guidance Note from the Actuarial Society of India, the Companys actuary has expressed his inability to reliably measure the same.

The companys expense for the superannuation, a defined contribution plan aggregates Rs. 141.75 lakhs during the year ended December 31, 2009 (2008 - Rs.105.63 lakhs).

The companys expense for the provident fund aggregates Rs.439.25 lakhs during the year ended December 31, 2009 (2008 - Rs. 386.25 lakhs).

2. SEGMENT REPORTING

The activities of the Company comprises of only one business segment viz Construction. The Company operates in only one geographical segment viz India. Hence, the Companys financial statements also represent the segmental information.

3. RELATED PARTY TRANSACTIONS

(a) Name of related parties where control exists irrespective of whether transactions have occurred or not.

Italian-Thai Development Public Company Limited - Holding Company.

ITD Cementation Projects India Limited - Wholly Owned Subsidiary Company.

(b) Other entities with whom transactions have taken place

Name of Related Parties Nature of Relationship

ITD Cemindia JV Joint Venture

ITD - ITDCem JV Joint Venture

ITD - ITDCem JV (Consortium of ITD - ITD Cementation) Joint Venture

4. The Company has recognised escalation on two road contracts till December 31, 2009 aggregating to Rs. 2,028 lakhs (December 31, 2008 - Rs.2,028 lakhs). Sundry Debtors at December 31, 2009 include Rs. 1,140 lakhs (December 31, 2008-Rs. 1,140 lakhs) out of this amount. These escalation claims were disputed by the customer and the Company has received favourable verdict from Dispute Redressal Board and also thereafter in Arbitration in respect of these claims. The Customer has appealed against the Arbitration Award. As at December 31, 2009 an amount of Rs.1,140 lakhs (December 31, 2008 - Rs. 1,140 lakhs) is still receivable from customer. Management is reasonably confident of recovery of this amount based on the above and independent legal advice from eminent legal counsel in the matter. These contracts have been completed and hence during the year ended December 31, 2009, the Company has not recognised any turnover or escalation claims on these road contracts.

5. The Company has recognized variation claims of Rs. 5,042 lakhs (December 31, 2008 - Rs. 4,182 lakhs) [including Rs. 2,801 lakhs till December 31, 2009 (December 31, 2008 - Rs. 4,026 lakhs) under arbitration], which are also included in the balance of sundry debtors at December 31, 2009. These claims are disputed by the customer. Of these, the Company has received arbitration awards of Rs. 2,241 lakhs (December 31, 2008 - Rs.2,610 lakhs) in its favour which have been challenged by the customer. During the year ended December 31, 2009, no variation claim was recognised by the Company. Considering the contractual tenability and legal advice from Companys counsel in the matter, the management is reasonably confident of recovery of the same.

6. Sundry Debtors as at December 31, 2009 include Rs 3,384 lakhs (December 31, 2008 - Rs. 3,384 lakhs) representing interim work bills for work done which have not been certified by customers beyond normal periods of certification provided in the respective contracts. The management is reasonably confident of the certification and recovery of the same progressively on these contracts based on past experience of the Company, assessment of work done and the fact that these amounts are not disputed by the customer.

7. Sundry Debtors at December 31, 2009, include an amount of Rs. 1,225 lakhs (December 31, 2008 - Rs. 1,225 lakhs) recognized as income in the earlier years. Based on the payment schedule originally agreed with the customer, the above mentioned claim was expected to be received by the Company over a period of time commencing from financial year 2008/2009. No amounts have been received by the Company till date and further rescheduling of the payment which was in progress at December 31, 2008 has not yet been finalised. The readability of this amount of Rs. 1,225 lakhs is dependent upon finalization of the rescheduled payment plan and the customer adhering to the same. The management is in advanced stage of discussion with the client and confident of recovering the amount due.

8. Debtors at December 31,2009 include variation claims of Rs. 1,515 lakhs (including Rs. 554 lakhs recognised as revenue and Rs. 525 lakhs recognised as interest income during the year ended December 31, 2009) for which the Company had received an arbitration award in its favour which has subsequently been upheld by the district court.

9. As per the information available with the Company, there are no Micro, Small and Medium Enterprises, as defined in the Micro, Small, Medium Enterprises Development Act, 2006, to whom the Company owes dues on account of principal amount together with interest.

The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

10. OPERATING LEASES

(a) The Company has taken various residential/commercial premises on cancellable operating lease. These lease agreements are normally renewed on expiry. The cancellable lease payments in the profit and loss account for the year is Rs. 938.00 lakhs (2008 - Rs.821.90 lakhs).

(c) Non-cancellable lease payments recognised in the profit and loss account for the year is Rs.1,034.82 lakhs (2008 -Rs.1,01 3.97 lakhs)

(d) General descriptions of lease terms

(i) Lease rentals are charged on the basis of agreed terms. (ii) Assets are taken on lease over a period of 3-5 years.

11. Remuneration to Auditor does not include Rs. Nil (including Service Tax) (2008 - Rs. 9.04 lakhs) paid to statutory auditors towards fees paid in connection with Rights Issue, which is debited to securities premium account.

12. Prior year figures have been reclassed wherever necessary to confirm to the current years presentation.