NBCC (India) Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

1.4.11 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

A provision is recognised when the Company has a present obligation as a result of past event, it is probable that
an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate

can be made of the amount of the obligation. Provisions determined based on the best estimate required to settle
the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the
current best estimates.

Provisions are discounted to their present values, where the time value of money is material. Where discounting is
used, the increase in the provision due to the passage of time is recognized within finance costs.

The principal provisions recognized by the Company are as follows:

Provision for warranty charges:

Provision for warranty is recognized based on an assessment of future claims with reference to past experience.
Provision for Onerous Contracts:

Present obligations arising under onerous contracts are recognized and measured as provisions. An onerous
contract is considered to exist where the company has a contract under which the unavoidable costs of meeting the
obligations under the contract exceed the economic benefits expected to be received under it.

Arbitration Awards:

Arbitration / Court’s awards along with related interest receivable/payable are, to the extent not taken into accounts
at the time of initiation, are recognized after it becomes decree. Permanent Machinery of Arbitration, Govt of India,
is accounted for on finalization of award by the appellate authority. Interests to/from in these cases are accounted
when the payment is probable which the point is when matter is considered settled by management.

Other Provisions:

Other Provisions include Provision for Research & Development, Provision for CSR Activities and Provision for
Other Contingency.

Contingent liabilities and claims against the company not acknowledged as debt, and contingent liabilities related to
legal proceedings or regulatory matters, including certain guarantees, are not recognised in the financial statements.
However, these are disclosed unless the probability of settlement is remote.

Contingent Liabilities are disclosed on basis of judgment of management after a careful evaluation of facts and legal
aspects of matter involved.

Contingent Assets are disclosed when probable and recognised when realization of income is virtually certain.

1.4.12 OTHER INCOME

Interest, Dividend and Rental income

Interest income is reported on an accrual basis using the Effective Interest Rate method (EIR). Interest income on
mobilisation advances/financial assistance given to contractors recoverable in short term is recognised using simple
interest method which approximates the effective interest rate.

Interest income on bank deposits held on behalf of client is netted off from interest payable to client on such deposits.
Dividend income is recognised at the time the right to receipt is established.

Other items of income are recognised in the statement of profit and loss when control of respective goods or service
has been transferred to customer.

1.4.13 INVESTMENT PROPERTY
Recognition

Investment Properties are stated at their cost of acquisition. The cost comprises purchase price, borrowing cost,
if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the
intended use. Any trade discount and rebates are deducted in arriving at the purchase price.

When an asset is acquired or added during the financial year, depreciation is charged based on the Proportionate
number of days the asset is available for use within that financial year.

The residual values, useful lives and methods of depreciation of investment properties are reviewed at each financial
year end and adjusted prospectively, if appropriate.

De-Recognition

An item of Investment Property and any significant part initially recognised is derecognised upon disposal or when
no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of
the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is
included in the income statement when the asset is derecognised.

1.4.14 CASH AND CASH EQUIVALENTS

Cash and Cash Equivalents comprise Cash in hand, Balances in Bank Account, Remittance in Transit, Cheques
in hand and Demand Deposits, together with other short-term, highly liquid investments (original maturity less than
3 months) that are readily convertible into known amounts of cash and which are subject to an insignificant risk of
changes in value.

1.4.15 EQUITY, RESERVES AND DIVIDEND PAYMENTS

Share capital represents the nominal value of shares that have been issued. Any transaction costs associated with
the issuing of shares are deducted from retained earnings, net of any related income tax benefits.

Other components of equity include Other Comprehensive Income (OCI) arising from actuarial gain or loss on re¬
measurement of defined benefit liability and return on plan assets.

Retained earnings include all current and prior period retained profits. All transactions with owners of the parent
are recorded separately within equity. Annual dividend distribution to shareholders is recognised as a liability in the
period in which the dividend is approved by the shareholders. Any interim dividend paid is recognised on approval by
Board of Directors. Dividend payable and corresponding tax on dividend distribution is recognised directly in equity.

1.4.16 INTANGIBLE ASSETS
Recognition

Intangible assets are initially measured at cost of acquisition thereof. The cost comprises purchase price, borrowing
cost if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the
intended use. Any trade discount and rebates are deducted in arriving at the purchase price.

Subsequent Measurement (Amortization)

Amortization on Intangible Assets is charged on the straight line method on the basis of rates arrived at with reference
to the useful life of the assets evaluated and approved by the Management.

De-recognition

An item of Intangible Asset or any significant part initially recognised is derecognised upon disposal or when no
future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the
asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is
included in the Statement of Profit and Loss Account when the asset is derecognized.

1.4.17 LEASES

Company as a Lessee

At inception of a contract, the company assess whether the contract is, or contains, a lease.

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period
of time in exchange for consideration.

Recognition:

1. “Right of Use (ROU) Asset”:

At the commencement date, the company recognizes a right-of-use asset and a lease liability, except:

a. For lease with a term of twelve months or less (Short term leases) and,

b. Leases for which the underlying asset is of low value

For short term lease and assets of low value the company recognizes the lease payments as an operating expense
on a straight-line basis over the term of lease.

2. “Lease Liability”

At the commencement date, the company measures the lease liability at the present value of the lease payments
that are not paid at that date.

The lease payments are discounted using the effective interest rate.

Subsequent measurement

1. “Right of Use (ROU) Asset”:

After the commencement date, the company measure the right-of-use asset at cost less any accumulated
depreciation and is subject to impairment losses.

2. “Lease Liability”

After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and
reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there
is any reassessment or modification.

The residual values, useful lives and methods of depreciation of right of use are reviewed at each financial year
end and adjusted prospectively, if appropriate.

De-Recognition

A right of use assets initially recognised is derecognized upon disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss arising on de-recognistion of the right of use assets (calculated as
the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement
of Profit and Loss account when the right of use asset is derecognized.

Company as a Lessor
Operating lease

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are
classified as operating leases. Assets leased out under operating leases are recognized & presented according to
the nature of the underlying asset.

Rental income is recognized on straight-line basis over the lease term except where scheduled increase in rent
compensates the Company with expected inflationary costs.

1.4.18 NON CURRENT ASSETS HELD FOR SALE

Non-current assets and disposal groups are classified as held for sale if their carrying amount is intended to be
recovered principally through a sale (rather than through continuing use) when the asset (or disposal group) is
available for immediate sale in its present condition subject only to terms that are usual and customary for sale
of such asset (or disposal group) and the sale is highly probable and is expected to qualify for recognition as a
completed sale within one year from the date of classification.

Non-current assets and disposal groups classified as held for sale are measured at lower of their carrying amount
and fair value less costs to sell. The determination of fair value less costs to sell includes use of management
estimates and assumptions.

Non-current assets are not depreciated or amortized while they are classified as held for sale.

1.4.19 LIQUIDATED DAMAGES

Liquidated Damages / Compensation for delay in respect of clients/ contractors, if any, are accounted for when
payment is probable which is the point when matter is considered settled by management.

1.4.20 PRIOR PERIOD EXPENDITURE INCOME

Expenditures / Incomes relating to prior periods and considered not material has been accounted for in the respective
head of accounts in the current year.

1.4.21 SIGNIFICANT MANAGEMENT JUDGEMENT IN APPLYING ACCOUNTING POLICIES AND ESTIMATION
UNCERTAINTY

Financial Statements are prepared in accordance with GAAP in India which require management to make estimates
and assumptions that affect the reported balances of assets, liabilities and disclosure of contingent liabilities at the
date of the financial statements and reported amounts of income & expenses during the periods. Although these
estimates and assumptions used in accompanying Financial Statements are based upon management’s evaluation
of relevant facts and circumstances as of date of Financial Statements which in management’s opinion are prudent
and reasonable, actual results may differ from estimates and assumptions used in preparing accompanying Financial
Statements. Any revision to accounting estimates is recognized prospectively from the period in which results are
known/ materialize in accordance with applicable Indian Accounting Standards

Information about estimates and assumptions that have the most significant effect on recognition and measurement
of assets, liabilities, income and expenses is provided below.

SIGNIFICANT MANAGEMENT JUDGEMENT

The following are Significant Management Judgements in applying the Accounting Policies of the Company that
have the most significant effect on the Financial Statements:

Recognition of Deferred Tax Assets - The extent to which deferred tax assets can be recognized is based on
an assessment of the probability of the Company’s future taxable income against which the deferred tax assets
can be utilized.

Evaluation of indicators for Impairment of Assets— Significant judgements are involved in evaluation of
applicability of indicators of impairment of assets which requires assessment of several external and internal factors
which could result in deterioration of recoverable amount of the assets. These indicators may include significant
financial difficulty of the issuer or debtor, default or delinquency in payments, significant adverse changes in the
technological, market, economic, or legal environment, among others.

Property, Plant and Equipment - Management assess the remaining useful lives and residual value of property,
plant and equipment and believes that the assigned useful lives and residual value are reasonable

ESTIMATION UNCERTAINTY

Information about estimates and assumptions that have the most significant effect on recognition and measurement
of assets, liabilities, income and expenses is provided below.

Revenue Recognition— Where revenue contracts include deferred payment terms, the management determines
the fair value of consideration receivable using the expected collection period and interest rate applicable to similar
instruments with a similar credit rating prevailing at the date of transaction.

Recoverability of Advances/ Receivables— The Project heads, Zonal heads and Regional/Strategic Business
groups from time to time review the recoverability of advances and receivables. The review is done at least once in
a financial year and such assessment requires significant management judgement based on financial position of the
counter-parties, market information and other relevant factors.

Defined Benefit Obligation (DBO) - Management’s estimate of the DBO is based on a number of critical underlying
assumptions such as standard rates of inflation, medical cost trends, mortality, discount rate and anticipation of
future salary increases. Variation in these assumptions may impact the DBO amount and the annual defined
benefit expenses.

Contingencies - Management judgement is required for estimating the possible outflow of resources, if any, in
respect of contingencies/claim/litigations against the Company as it is not possible to predict the outcome of pending
matters with accuracy.

Provisions for Warranties - Management’s estimate of the warranties is based on engineering estimates and
variation in these assumptions may impact the provision amount and the annual warranty expenses.

Liquidated Damages - Liquidated Damages receivables are estimated and recorded as per contractual terms;
estimate may vary from actual as levied on contractor.

1.4.22 RECENT ACCOUNTING PRONOUNCEMENT:

The Ministry of Corporate Affairs (“MCA”), vide notification dated May 07, 2025, amended the Companies (Indian
Accounting Standards) Rules as below:

Ind AS 21 - The Effects of Changes in Foreign Exchange Rates: amendment requires the entities to assesses
whether a currency is exchangeable into another currency at a measurement date & for a specified purpose. If
an entity is able to obtain no more than an insignificant amount of the other currency at the measurement date for
the specified purpose, the currency is not exchangeable into the other currency." In that case entity is required to
Estimate the spot exchange rate that meets the objective in paragraph 19A by using either

(a) an observable exchange rate without adjustment; or

(b) another estimation technique

The effective date of the amendment is May 07, 2025. The Company has evaluated the above amendment and there
is no impact on the Standalone Financial Statements.

Note -20 D

The Company has only one class of Equity Shares having a par value of H 1 per share. Each shareholder is eligible for one vote
per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuring
Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to
receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Note -20 E

During the current Financial year 2024-25, the Company has issued 90,00,00,000 equity shares of H 1.00 each as fully paid
bonus shares in the ratio of one equity share of H 1.00 each for every two equity shares held with rights pari passu with
existing Equity Shares.

Note -20 F

During the current year, Company has transferred 21136 (P.Y. 3657) number of shares in Investor Education and Protection
Fund (IEPF) held by investors pursuant to section 124(6) of The Companies Act, 2013 and the rules notified thereunder
whose dividend is unclaimed/unpaid for seven years to a demat account of the Investor Education and Protection Fund
(IEPF) Authority.

Note -20 G

During the current year, Company has transferred H 1.00 Lakh (P.Y. NIL) on account of Unpaid amount of sale proceed of
bonus fraction shares in Investor Education and Protection Fund (IEPF) held by investors pursuant to section 124(6) of The
Companies Act, 2013 and the rules notified thereunder

Reserves and Surplus

Nature and purpose of Other Reserves

Retained Earnings

Retained Earning represent the undistributed profits of the Company.

General Reserve

General Reserve represents the statutory reserve, this is in accordance with Corporate law wherein a portion of profit is
apportioned to General Reserve. Under Companies Act, 1956 it was mandatory to transfer amount before a company can
declare dividend from above specified limits, however under Companies Act, 2013 transfer of any amount to General Reserve
is at the discretion of the Company.

Other Comprehensive Income

Other Comprehensive Income represents balance arising on account of Gain/(Loss) booked on Re-measurement of Defined
Benefit Plans and Exchange Difference on translation of foreign operation.

Note - 29B

Disclosure as per Indian Accounting Standard (Ind AS) - 19 on Employee Benefit :

Gratuity

The Company has defined benefit gratuity plan. Every employee who has rendered continuous service of five years or more
is entitled to get gratuity on superannuation, resignation, termination, disablement or on death in accordance with Gratuity
Act 1972. In the year 2017-18, consequent upon the amendment in the Gratuity Act 1972, the maximum limit of Gratuity
to be paid to any employee enhanced from H 10.00 lakh to H 20.00 lakh. The scheme is funded by the Company and is
managed by a separate trust formed in the year 2007-08. The liability for the same is recognised on the basis of actuarial
valuation and accordingly transferred to Gratuity Trust. The provision for the year 2024-25 is H 543.36 lakh {Previous Year
H 529.98 lakh}. The gains/losses on the remeasurement of the assumptions on the Gratuity plan have been recognised in
Other Comprehensive Income (OCI).

Earned Leave (EL)

The Company has other long term benefit plan for Earned Leave Encashment. Provision for Encashment of Earned Leave
equivalent to maximum of 300 days (basic pay plus dearness allowance) is provided at the year end and charged to Statement
of Profit & Loss. The liability for the year 2024-25 is accounted for on the basis of Actuarial Valuation. The cumulative liability
for Earned Leave Encashment as on March 31,2025 is H 4020.97 lakh {Previous Year H 3796.89 lakh}.

Half Pay Leave (HPL)

The encashment of half pay leave on superannuation is allowed only to the extent of short fall in earned leave. e.g.If an
employee is having earned leave of less than 300 days on the day of supperannuation, he/she is entitled for payment of half
of the Basic pay plus dearness allowance thereon on the number of days by which earned leave is short of 300 days.The
liability for the year 2024-25 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Half Pay leave
Encashment as on March 31,2025 is H 1339.42 lakh {previous year H 1370.02 lakh}.

Travelling Allowance on Superannuation

The cumulative liability for Travelling Allowance to be paid to the employees on superannuation (exit) as on March 31, 2025
is H 37.33 lakh {previous year H 37.29 lakh} based on actuarial valuation.The gains/losses on the remeasurement of the
assumptions on the plan have been recognised in Other Comprehensive Income (OCI).

Post Retirement Medical Benefits (PRMB)

The Company has been providing medical benefit to retired employees under Post Retirement Medical Benefits (PRMB),
which considered to be a defined benefit plan and Provision for such benefits, till September 30, 2024, amounting to
H 15173.72 lakh (March 31,2024, H 12180.89 lakh) was provided based on actuarial valuation basis and actuarial gains/losses
on the remeasurement of the plan up to September 30, 2024 of H 3138.20 lakh (P.Y. H 3585.89 lakh) was recognised in Other
Comprehensive Income (OCI).

W.e.f. October 01, 2024, the Company decided to provide benefits under PRMB through a funded trust, which will take a
medical policy for provision of the benefits under PRMB. The Company has also decided that w.e.f. October 01,2024 the rate
of contribution to the trust would be @3.19% Per Month of Salary (Basic Pay plus Dearness Allowance) of regular employees.
The Net liability of the Company towards trust as on March 31, 2025 is H 14757.86 lakh (being the provision stood as at
September 30, 2024 plus contribution @3.19% pm from October 01,2024 to March 31,2025, Amount Recovered/Recoverable
from Retired Employee less the amount of premium paid by the Company for procurement of insurance policy). Same is shown
under Note no. 27 - Other Current financial liabilities, which shall be transferred to the Trust on obtaining approval from CIT,
Income Tax under section 10(23AAA).

Pension

The company had implemented pension scheme through NBCC Employees Defined Contribution Superannuation (NBCC
EDCS) Pension trust for employee under Industrial Dearness Allowance (IDA) Pay pattern for those employees who have
completed 15 years of service in the CPSE and on the regular rolls of the company as on November 26, 2008. The scheme is
managed by a separate Trust formed in the year 2012-13 for the purpose.

Company has migrated from Existing NBCC EDCS Pension Scheme to NPS scheme w.e.f. December 01,2021 wherein minimum
qualifying service of 15 years is no longer required in accordance with the guidelines of Pay Revision of Board level and below
Board level Executives and Non-Unionised Supervisors of Central Public Sector Enterprises (CPSEs) w.e.f. 01.01.2017. The
NPS scheme is applicable to all employees except those were superannuated on or before March 31, 2022. The Company
continued to contribute 7.00% of the Salary (Basic plus Dearness Allowance) of the regular employees till September 30, 2024.

W.e.f. October 01, 2024, Company restructured the components of superannuation benefits and decided to enhance the
employer’s contribution from 7% to 10% of the Basic plus Dearness Allowance of the salary of regular employees. The
contribution for pension amounting to H 1084.65 lakh {Previous Year H 884.65 lakh} has been made during the year 2024-25.

Provident Fund

The Company contributes @12% as Employer Contribution to Employee Provident Fund, which is being managed by a EPF
trusts, established under Employees'' Provident Funds and Miscellaneous Provisions Act, 1952 for this purpose, Contribution
made is charged to the Statement of Profit and Loss. In accordance with regulatory requirements, shortfall if any in the net income
of the trusts below the Government-specified minimum rate of return is made good by the Company. During the current year,
the Company declared an interest rate on the Provident Fund that exceeded the Government-specified minimum rate of return.

Long Service Awards

The Company has a Scheme of Long Service Awards, introduced from Financial Year 2016-17 covering all the below Board
Level regular employees of the Company, who were on the roll of the Company as on September 3, 2016 onwards and
completed (i) 25 Years of Service or more (ii) 30 Years of Service or more (iii) 35 Years of Service or more & (iv) 40 Years of
Service or more. From March 31,2025, the Company restructured the scheme to include additional slabs for 36, 37, 38, and
39 years of service, in addition to the existing categories. The company has recognised a liability of H 457.05 lakh {Previous
Year H 201.31 lakh} as at March 31 ,2025 on the basis of Actuarial Valuation.

2. Transactions & Balances with Related Parties

The company is a government company under the aegis of Ministry of Housing and Urban Affairs. 61.75% of the share
holding in the company as at March 31,2025 (As at March 31,2024 61.75%) is held by President of India.

The Company is having three fully owned subsidiaries and One partly owned subsidiary over which government exercise
direct/indirect control by holding more than 50% of the voting power.

In accordance with paragraph 25 of Indian Accounting Standard (Ind AS) 24 - Related Party Disclosures, the Company
is exempted from providing disclosures pertaining to transactions with its subsidiary companies and joint venture entities,
as these entities are state-controlled enterprises where the ownership by the Central and/or State Government, directly
or indirectly, exceeds 50% of the voting rights.

The company generally enter into transactions with the subsidiary companies/ Joint Ventures at arm''s length price in the
normal course of business which includes the purchase and sale of properties, rendering of services, receipt of services
and secondment of employees.

The carrying amount of Trade Receivables, Trade Payables and Cash & Cash Equivalent are considered to be the same as
their Fair Values due to their short term nature.

The carrying amount of the Financial Assets and Liabilities carried Amortised Cost is considered a reasonable
approximation of Fair Value.

The above table excludes Investment in Subsidiaries, Associate and Joint Venture, which are measured at cost in accordance
with Ind AS 27, ''Separate Financial Statements''.

(i) Fair Value Hierarchy

Financial Assets and Financial Liabilities measured at fair value in the Balance Sheet are grouped into three Levels of a fair
value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement as follows:

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

• Level 2: The fair value of Financial Instruments that are not traded in an active market is determined using valuation
techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates.

• Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3.

(iii) Valuation Technique used to determine Fair Value

Specific valuation techniques used to value Financial Instruments includes the use of Net Asset Value for Mutual Funds
on the basis of the statement received from investee party.

Note -52

Financial Risk Management

The Company’s activities expose it to credit risk, liquidity risk and market risk. The Company''s board of directors has overall
responsibility for the establishment and oversight of the Company''s risk management framework. This note explains the sources
of risk which the entity is exposed to and how the entity manages the risk and the related impact in the Financial Statements.

(A) Credit Risk

The Company is exposed to credit risk from its Operating Activities (Primarily Trade Receivables) and from its Financing
Activities including Deposits with Banks, Mutual Funds and Financial Institutions and other Financial Instruments.

(i) Credit Risk Management

The Company assesses and manages credit risk of Financial Assets based on following categories arrived on the
basis of assumptions, inputs and factors specific to the class of Financial Assets.

A: Low Credit Risk on financial reporting date

B: Moderate Credit Risk

C: High Credit Risk

(B) Liquidity Risk

The Company''s principal sources of liquidity are Cash and Cash Equivalents which are generated from Cash Flow from
Operations. The Company has no fund based outstanding Bank Borrowings. The Company considers that the Cash
Flows from Operations are sufficient to meet its current liquidity requirements.

Maturities of Financial Liabilities

The tables below analyse the Company’s Financial Liabilities into relevant maturity groupings based on their contractual
maturities. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12
months equal their carrying balances as the impact of discounting is insignificant.

Dealing in foreign currencies involve foreign exchange risk, and the exchange rate may change unfavourably before the
currency is exchanged. In order to minimise or eliminate foreign exchange risk, surplus funds are exchanged/ repatriated to
India at the appropriate time. The Company has minimise their exchange fluctuation risk, as inwards and outwards is in the
same foreign currency. This provides natural hedging against foreign currency fluctuation risk.

Note -53

Capital Management

The Company’s objectives when managing capital are to:

(i) Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and
benefits for other stakeholders, and

Note -58

Inventory Disclosures

LAND BANK, WORK IN PROGRESS AND COMPLETED PROJECTS:

(i) Land at Naya Raipur, Chattisgarh

Real estate Land bank shown under Note No.11 includes H 2,552.39 Lakh (Previous year H 2,195.35 Lakh) toward Land
for a Group Housing Plot admeasuring 30,436 Sqm. at Naya Raipur, Chattisgarh, lease deed in respect of which is yet to
be executed. As per the terms of allotment, lease deed shall be executed between owners association / Housing society,
to-be-formed in future and Naya Raipur Development Authority (NRDA). The company is in the process of development
of land, approval for development from various authorities is being taken.

(ii) Land at Faridabad

Real estate Land bank shown under Note No.-11 includes H13,178.41 Lakh (Previous year H 13,178.41 Lakh) toward
Land for a Group Housing Plot admeasuring 16,753.99 Sqm. at Faridabad, execution of conveyance deed in respect of

which is pending for want of Environment clearance which is dependent on submission of NOC from Forest Department.
NOC from Forest department was not received on the ground that “the criteria for clarification of deemed forests is
pending before the Hon’ble Supreme Court and Govt. of Haryana has yet not identified deemed forests”. Company has
taken up the matter with Government of Haryana to either issue necessary instructions to Forest Department for issuing
of NOC as required for Environmental Clearance or refund the amount paid with interest to company.

A provision of H1,073.66 Lakh as at March 31,2025 (up to Previous year H1,073.66 Lakh) has been made in the books
towards reduction in the Net Realisable Value of the said land.

(iii) Land at Mouza Kalikapur, South 24 Parganas, West Bengal:

During the year a provision of H 182.35 lakh as at March 31,2025, has been made to write down the full value of land
parcel measuring 2 acres at Mouza Kalikapur, South 24 Parganas, West Bengal considering that there is no demonstrable
progress on the project for which land was acquired on long term lease.

(iv) Govindpuram Ghaziabad:

Real Estate Land Bank shown under Note No-11 includes H 6,450.22 Lakh up to March 31, 2025 (H 6,450.22 Lakh
up to March 31, 2024) for a land parcel measuring 14,675 Sqm. at Govind Puram Ghaziabad purchased in the year
2012. A demand notice against impugned corner charges and infrastructure charges for H 1,228.76 Lakh was issued by
Ghaziabad Development Authority (GDA) against which the Company has filed a Writ petition before Allahabad High
Court. Pending decision of the Writ Petition, Company has deposited H 1228.76 lakh as on May 24, 2025 under protest
as against recovery certificate of SDM Ghaziabad.

During the Current financial year 2024-25, Company has reversed the Provision of H 199.21 lakh as made in previous
years (P.Y. 2023-24 NIL) on account of increase in Net Realizable Value as per valuation done by IBBI Registered Valuer.

(v) NBCC Plaza at PushpVihar

The Company had paid a sum of H 3,021.78 Lakh to Land & Development Office (L&DO), Ministry of Housing & Urban
Affairs (MoHUA) in the year 2011 as additional premium for availing additional ground coverage (FAR) for construction of
“Additional Shopping cum Car Parking Blocks” in “NBCC Plaza” at Pushp Vihar, New Delhi. The company has incurred
a sum of H 1,718.84 lakh on construction cost including ground rent of the project till March 31, 2025 (H 1,718.84 lakh
upto March 31, 2024).Real Estate Construction Work in Progress shown under Note No-11 includes an amount of
H 4,740.61 Lakh (Previous Year H 4,740.61 Lakh) toward said project. Project is on hold pending approval of building
plan by Municipal Corporation of Delhi (MCD) since MCD is also demanding H 3,224.45 Lakh towards additional FAR
Charges. Since the Company had already paid the applicable FAR premium to L&DO, it contested the MCD''s demand on
grounds of dual charging for the same component by two different authorities. The matter has been represented before
both MCD and L&DO at various forums, and the Company continues to pursue resolution with L&DO, MCD, and MoHUA.
A complete provision representing the value of expenditure towards construction amounting to H 954.43 lakh as at March
31,2025 (up to Previous year H 634.53 lakh) has been created in the books.

(vi) Kochi, Kerala

The Company has constructed a Group Housing Real Estate project at Kochi, Kerala, comprising 3,20,216 sq. ft. of
residential and 4,424 sq. ft. of commercial area on a land parcel of 3.18 acres having a value of H 281.77 Lakh. The total
cost including land, incurred on the project amounts to H 8,732.68 lakh as of March 31,2025 (H 8,722.60 lakh as of March
31,2024). The sale of units in the project was put on hold due to the non-availability of Environmental Clearance (EC) and
other requisite statutory approvals. RERA Registration was received for the project which has been expired in December,
2024 and renewal of the same is under process. EC was pending for project.

The State Expert Appraisal Committee (SEAC) in 147th meeting held on July 21, 2023 recommended the grant of EC
under the Office Memorandum (OM) dated July 07, 2021 and January 28, 2022 issued by Ministry of Environment Forest
& Climate Change (MoEFCC). EC was put on hold due to stay on aforesaid both the aforesaid OMs by the Hon’ble
Supreme Court, in W.P.(C) No. 1394/2023 titled Vanashakti vs. Union of India, vide order dated January 02, 2024.

Further, vide order dated May 16, 2025, in the said Writ Petition, the Hon’ble Supreme Court held that the 2017 Notification,
OM of 2021 and all related circulars, orders, and notifications issued in furtherance thereof are illegal and accordingly
struck them down.

The Company is currently exploring all legal and regulatory remedies available, Company has written down the value of
its inventory toward said project by H 8,015.53 lakh as Exceptional Item. Value of land of the project has been restated at
its original cost of H 281.77 lakh and being shown under “real estate land bank” and H 435.38 Lakh is being shown under
“Real Estate Building Structure (Unsold Units) -Scrap”, being net realisable scrap value.

(vii) Jackson Gate, Agartala

Real Estate Completed Projects shown under Note No-11 includes H 916.96 lakh up to March 31, 2025 (H 916.96 lakh
up to March 31, 2024), towards its share in development of a project located at Jackson Gate, Agartala, under Joint
Operations with Agartala Municipal Corporation (AMC). Since the project has already been completed, RERA registration
is not required, as confirmed by the Tripura Real Estate Regulatory Authority (T-RERA). The Company is exploring the
potential modalities in deliberation with AMC for monetisation of its share in the joint operation. Company is in receipt of
communications from Agartala Municipal Corporation that Govt. of Tripura has decided to set up a 50 bedded city hospital
in vacant portion of building.

(viii) Group Housing project in Alwar

Real Estate Completed Projects shown under Note No-11 includes H 5,806.44 Lakh up to March 31, 2025 (H 5,787.45
Lakh up to March 31, 2024) towards the cost of a Group Housing project located at Alwar named Aravali Apartments.
The substantial portion of the project was completed in the year 2018. The project is Pending for Sale. The completion
certificate of the project has been obtained and RERA registration/exemption has been received from Authority on
October 29, 2024.

A provision of H1,256.44 Lakh as at March 31,2025 (up to Previous year H 737.33 Lakh) has been created in the books
towards reduction in the Net Realisable Value of the said Project.

(ix) Sukheas Lane, Kolkata

Real Estate Construction Work in Progress shown under Note No-11 includes a project at Sukheas Lane, Kolkata,
developed under a Joint Venture between NBCC (India) Limited and Kolkata Metro Rail Corporation Limited (KMRCL).
The Company has incurred a total cost of H 549.59 lakh up to March 31,2025 (Previous Year: H 549.59 lakh as of March
31,2024). Since no MOU has been executed between the joint venture partners and given the prolonged inaction and
lack of tangible progress, the cost incurred by the Company on this project has been fully provided for during current year
ended March 31,2025.

(x) Sector - 37 D, Gurugram

The company had developed a residential real estate project at NBCC Green View, Sector - 37 D, Gurugram. The
Company had sold 392 units (255 flats, 126 EWS and 11 shops) out of 942 units and had received total amount of
H 21,012.80 lakh out of which H 15,957.58 lakh was recognised as revenue in the previous years and H 4,048.57 lakh was
booked as advance from Allottees till March 31,2022.

Subsequently, the buildings in the project exhibited structural cracks. Following expert advice from IIT Delhi, IIT Roorkee,
CBRI Roorkee, and CPWD, the building was fully evacuated due to safety concerns.

The company provides multiple settlement options to the allottees, including reconstruction of flats / units, full refund
with or without interest based on internal assessment and the order of various forum, since affected buyer filed petition
at various forum i.e. Haryana RERA, High Court and National Consumer Disputes Redressal Commission (NCDRC)
Subsequently, the National Consumer Disputes Redressal Commission (NCDRC), via its order dated March 5, 2024,
instructed the company to refund all deposits with 9% p.a. interest and pay H 10 lakh as exemplary damages to each
allottee within two months. The Board, in its 537th meeting on April 27, 2024, approved settlement with affected allottees
except those opting for reconstruction. A review petition led to an NCDRC clarification on April 16, 2024, confirming the
applicability of the order to all non-settled allottees.

Accordingly provisions were made in the books as per the NCDRC Orders for all allotees except those who opted for
reconstruction. In respect of those allotees who opted reconstruction, provision was made based on cost of reconstruction.
As a result, the company has recognized total provisions/write-offs/expenses amounting to H 45,302.13 lakh till March 31,
2024 as exceptional items. During the FY 2024-25, an additional provision of H1,580.38 Lakhs were made in the books
on account of increase in the area /enhanced specification to be offered to the allotees opted for settlement through
reconstruction. As a result, the company has recognized cumulative total provisions/write-offs/expenses amounting to
H 46,882.51 lakh up to March 31,2025 (H 45,302.13 lakh till March 31,2024) as exceptional items.

For the year ended on March 31, 2025, the Company spent H 20,823.25 lakh, including H 18,354.11 lakh for buybacks
of flats/ units, H 2,082.40 lakh for refund of advance, and H 386.74 lakh for stamp duty paid to state authorities. The
Company has written down inventory amounting to H 16,935.10 lakh being excess of amount paid H 18,354.11 Lakh over
proportionate value of units/flats H 1,419.01 lakh (Lower of Cost or Net Realizable Value (NRV)) and equivalent Provision
of H 16,935.10 lakh as was created in earlier year for buyback of flats/units as per NCDRC order has been reversed under
Exceptional Item.

Further, the land of the said project representing the proportionate value of undivided share attributable to unsold/buy-
back units of H 8,869.17 lakh as at March 31, 2025 (H 7,394.46 lakh as at March 31, 2024) included in the Real Estate
Land Bank under Note No-11 and salvage value of the construction portion of H 2,325 lakh as at March 31,2025 (H 2,325
lakh as at March 31,2024) is shown under “Real Estate Building Structure (Unsold Units) -Scrap” in the same note.

Legal Cases:

A recovery suit has been filed in the Delhi High Court against Ramacivil India Construction (P) Ltd. and others for H 75,000
lakh related to the project. Currently, there are 25 pending litigations against the company from allottees, who are neither
accepting refund as per NCDRC nor opting settlement through reconstruction, and also from contractors.

The costs and liabilities (if any), that may possibly be incurred towards additional interest or other compensation are not
ascertainable as on date(Refer Note No 46(A)(d)). However, quantifiable claims of homebuyers/allottees and contractor
is H 6,605.26 lakh as at March 31,2025 (March 31,2024 H 6,619.16 lakh), same has been included in Contingent liability
(Refer Note No 46(A)(a)).

Note -59

Other Disclosures

(a) Additional Informations in pursuance to Schedule III Division II is disclosed as under:

(i) The company has not been declared a Wilful Defaulters by any bank or financial institution or consortium thereof in
accordance with the guidelines on Wilful defaulters issued by the RBI.

(ii) There are no proceedings initiated or pending against the company for holding any Benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(iii) The company has not traded or invested in Crypto currency or virtual curreny during the Year.

(iv) The company has neither advanced, loaned or invested fund nor received any fund to/from any person or entity
including foreign entities (Intermediaries) for lending or investing or providing guarantee to/on behalf of the ultimate
beneficiary during the year.

(v) During the Financial year, there is no charge or satisafaction of charge which is yet to be registered with ROC
beyond the statutory period.

(vi) During the FY 2024-25 till March 31,2025 the company has not entered into any scheme of arrangement in terms
of sections 230 to 237 of the Companies Act, 2013.

(vii) The company does not have any transaction not recorded in the books of accounts that has been surrendered or not
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

(viii) Pursuant to Rule 2(2)(d) of the Companies (Restriction on number of Layers) Rules, 2017, the requirment of number
of layers not applicable to the company.

(ix) The company has not taken any Fund based loan / limit from banks or financial institutions on the basis of security
of current assets. Hence, the use of borrowing for specific purpose not applicable to the company.

(b) The major clients of the company are ministries, Government Departments, Government Authorities and Public Sector
Undertakings. The balances of the clients in the nature of Trade Receivables, Loans and Advances, Earnest Money
Deposit, Security Deposit and Deposits in the nature of trade receivables classified under current and non current assets;
and also the trade payables are subject to confirmation, reconciliation and consequent adjustments. The management
does not expect any significant impact upon such reconciliation.

(c) Company has submitted a Resolution Plan under the Insolvency and Bankruptcy Code 2016 on May 17, 2025 as
Resolution Applicant in the matter of Corporate Insolvency Resolution Process (CIRP) of Celebration City Projects Private
Limited (CCPPL), to be referred as Corporate Debtor.

In case resolution plan is accepted by the Committee of Creditors (CoC), the Corporate Debtor would be acquired as a
going concern entity to be a subsidiary of the Company. Since the Resolution Plan is subject to voting / acceptance of
CoC with approval of NCLT, amount of equity to be infused would be known thereafter.

Expenditure incurred during the process of Resolution plan will be booked and paid in the financial year of 2025-26.

(d) The Company has incorporated a wholly owned subsidiary named NBCC Overseas Real Estate LLC in Dubai Mainland,
(UAE) on April 23, 2025 for carrying out real estate business. Authorized Dealer (AD Bank) on May 26, 2025 has informed
that RBI has approved application for remittance of equity share capital. The Company are in process of equity infusion.

(e) The company has acquired a 100% stake in HSCC (India) Limited (HSCC) by paying H 28,500.00 lakh to the Government
of India during FY 2018-19. As of March 31, 2025, the Net Asset Value of HSCC is lower than the carrying amount
of the company''s investment. The subsidiary has consistently generated profits, paid dividends to the company, and
experienced an increase in its Net Asset Value since the acquisition.

Considering the revenue projections, existing order in hand, anticipated future profitability, and the liquidity position, the
management is confident that the Net Asset Value of the subsidiary company will improve and eventually match the
carrying value of the investment.

Note -60

Events After Balance Sheet Date

Proposed Final Dividend H 0.14 per share on face value of H 1.00 per share for total 27,000.00 lakh Number of Equity Shares
(P.Y. H 0.63 per share on face value of H 1 per share for total 18,000.00 lakh Number of Equity Shares) for the financial year
2024-25 which is subject to approval of shareholders in ensuing annual general meeting of the company.

Note -61

Regrouping / Reclassified

Previous year figures have been regrouped and/or reclassified, wherever considered, necessary to conform to those of the
current year grouping and/or classification. Negative figures have been shown in brackets.

As per our Report of even date attached For and on behalf of the Board of Directors
For ASA & Associates LLP

Chartered Accountants

Firm Reg. No: 009571N/N500006

Sd/- Sd/- Sd/- Sd/-

Parveen Kumar K. P. Mahadevaswamy Anjeev Kumar Jain Deepti Gambhir

(Partner) Chairman & Managing Director Director (Finance) & CFO Company Secretary

Membership No. 088810 (DIN : 10041435) (DIN : 09233328) (FCS : 4984)

Place : New Delhi
Date : May 29, 2025

---

Mar 31, 2024

1.4.11 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

A provision is recognised when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Provisions are discounted to their present values, where the time value of money is material. Where discounting is used, the increase in the provision due to the passage of time is recognized within finance costs.

The principal provisions recognized by the Company are as follows:

Provision for warranty charges:

Provision for warranty is recognized based on an assessment of future claims with reference to past experience.

Provision for Onerous Contracts:

Present obligations arising under onerous contracts are recognized and measured as provisions. An onerous contract is considered to exist where the company has a contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it.

Arbitration Awards:

Arbitration / Court''s awards along with related interest receivable/payable are, to the extent not taken into accounts at the time of initiation, are recognized after it becomes decree. Permanent Machinery of Arbitration, Govt of India, is accounted for on finalization of award by the appellate authority. Interests to/from in these cases are accounted when the payment is probable which the point is when matter is considered settled by management.

Other Provisions:

Other Provisions include Provision for Research & Development, Provision for CSR Activities and Provision for Other Contingency.

Contingent liabilities and claims against the company not acknowledged as debt, and contingent liabilities related to legal proceedings or regulatory matters, including certain guarantees, are not recognised in the financial statements. However, these are disclosed unless the probability of settlement is remote.

Contingent Liabilities are disclosed on basis of judgment of management after a careful evaluation of facts and legal aspects of matter involved.

Contingent Assets are disclosed when probable and recognised when realization of income is virtually certain.

1.4.12 OTHER INCOME

Interest, Dividend and Rental income

Interest income is reported on an accrual basis using the Effective Interest Rate method (EIR). Interest income on mobilisation advances/financial assistance given to contractors recoverable in short term is recognised using simple interest method which approximates the effective interest rate.

Interest income on bank deposits held on behalf of client is netted off from interest payable to client on such deposits.

Dividend income is recognised at the time the right to receipt is established.

Other items of income are recognised in the statement of profit and loss when control of respective goods or service has been transferred to customer.

1.4.13 INVESTMENT PROPERTY Recognition

Investment Properties are stated at their cost of acquisition. The cost comprises purchase price, borrowing cost, if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discount and rebates are deducted in arriving at the purchase price.

Subsequent Measurement (Depreciation)

Depreciation on Investment Property is charged on straight line method either on the basis of rates arrived at with reference to the useful life of the assets evaluated by the Committee consisting of Technical experts and approved by the Management or rates are arrived at based on useful life prescribed under Part C of Schedule II of the Companies Act, 2013. The following useful lives are applied:

When an asset is acquired or added during the financial year, depreciation is charged based on the Proportionate number of days the asset is available for use within that financial year.

The residual values, useful lives and methods of depreciation of investment properties are reviewed at each financial year end and adjusted prospectively, if appropriate.

De-Recognition

An item of Investment Property and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is derecognised.

1.4.14 CASH AND CASH EQUIVALENTS

Cash and Cash Equivalents comprise Cash in hand, Balances in Bank Account, Remittance in Transit, Cheques in hand and Demand Deposits, together with other short-term, highly liquid investments (original maturity less than 3 months) that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

1.4.15 EQUITY, RESERVES AND DIVIDEND PAYMENTS

Share capital represents the nominal value of shares that have been issued. Any transaction costs associated with the issuing of shares are deducted from retained earnings, net of any related income tax benefits.

Other components of equity include Other Comprehensive Income (OCI) arising from actuarial gain or loss on re-measurement of defined benefit liability and return on plan assets.

Retained earnings include all current and prior period retained profits. All transactions with owners of the parent are recorded separately within equity. Annual dividend distribution to shareholders is recognised as a liability in the period in which the dividend is approved by the shareholders. Any interim dividend paid is recognised on approval by Board of Directors. Dividend payable and corresponding tax on dividend distribution is recognised directly in equity.

1.4.16 INTANGIBLE ASSETS Recognition

Intangible assets are initially measured at cost of acquisition thereof. The cost comprises purchase price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discount and rebates are deducted in arriving at the purchase price.

Subsequent Measurement (Amortization)

Amortization on Intangible Assets is charged on the straight line method on the basis of rates arrived at with reference to the useful life of the assets evaluated and approved by the Management.

When an asset is acquired or added during the financial year, depreciation is charged based on the Proportionate number of days the asset is available for use within that financial year.

De-recognition

An item of Intangible Asset or any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement of Profit and Loss Account when the asset is derecognized.

1.4.17 LEASES

Company as a Lessee

At inception of a contract, the company assess whether the contract is, or contains, a lease.

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Recognition:

1. “Right of Use (ROU) Asset":

At the commencement date, the company recognizes a right-of-use asset and a lease liability, except:

a. For lease with a term of twelve months or less (Short term leases) and,

b. Leases for which the underlying asset is of low value

For short term lease and assets of low value the company recognizes the lease payments as an operating expense on a straight-line basis over the term of lease.

2. “Lease Liability"

At the commencement date, the company measures the lease liability at the present value of the lease payments that are not paid at that date.

The lease payments are discounted using the effective interest rate.

Subsequent measurement

1. “Right of Use (ROU) Asset":

After the commencement date, the company measure the right-of-use asset at cost less any accumulated depreciation and is subject to impairment losses.

2. “Lease Liability"

After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is any reassessment or modification.

The residual values, useful lives and methods of depreciation of right of use are reviewed at each financial year end and adjusted prospectively, if appropriate

De-Recognition

A right of use assets initially recognised is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognistion of the right of use assets (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Statement of Profit and Loss account when the right of use asset is derecognized.

Company as a Lessor

Operating lease

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Assets leased out under operating leases are recognized & presented according to the nature of the underlying asset.

Rental income is recognized on straight-line basis over the lease term except where scheduled increase in rent compensates the Company with expected inflationary costs.

1.4.18 NON CURRENT ASSETS HELD FOR SALE

Non-current assets and disposal groups are classified as held for sale if their carrying amount is intended to be recovered principally through a sale (rather than through continuing use) when the asset (or disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sale of such asset (or disposal group) and the sale is highly probable and is expected to qualify for recognition as a completed sale within one year from the date of classification.

Non-current assets and disposal groups classified as held for sale are measured at lower of their carrying amount and fair value less costs to sell. The determination of fair value less costs to sell includes use of management estimates and assumptions.

Non-current assets are not depreciated or amortized while they are classified as held for sale.

1.4.19 LIQUIDATED DAMAGES

Liquidated Damages / Compensation for delay in respect of clients/ contractors, if any, are accounted for when payment is probable which is the point when matter is considered settled by management.

1.4.20 PRIOR PERIOD EXPENDITURE INCOME

Expenditures / Incomes relating to prior periods and considered not material has been accounted for in the respective head of accounts in the current year.

1.4.21 SIGNIFICANT MANAGEMENT JUDGEMENT IN APPLYING ACCOUNTING POLICIES AND ESTIMATION UNCERTAINTY

Financial Statements are prepared in accordance with GAAP in India which require management to make estimates and assumptions that affect the reported balances of assets, liabilities and disclosure of contingent liabilities at the date of the financial statements and reported amounts of income & expenses during the periods. Although these estimates and assumptions used in accompanying Financial Statements are based upon management''s evaluation of relevant facts and circumstances as of date of Financial Statements which in management''s opinion are prudent and reasonable, actual results may differ from estimates and assumptions used in preparing accompanying Financial Statements. Any revision to accounting estimates is recognized prospectively from the period in which results are known/ materialize in accordance with applicable Indian Accounting Standards.

Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below.

SIGNIFICANT MANAGEMENT JUDGEMENT

The following are Significant Management Judgements in applying the Accounting Policies of the Company that have the most significant effect on the Financial Statements:

Recognition of Deferred Tax Assets - The extent to which deferred tax assets can be recognized is based on an assessment of the probability of the Company''s future taxable income against which the deferred tax assets can be utilized.

Evaluation of indicators for Impairment of Assets- Significant judgements are involved in evaluation of applicability of indicators of impairment of assets which requires assessment of several external and internal factors which could result in deterioration of recoverable amount of the assets. These indicators may include significant financial difficulty of the issuer or debtor, default or delinquency in payments, significant adverse changes in the technological, market, economic, or legal environment, among others.

Property, Plant and Equipment - Management assess the remaining useful lives and residual value of property, plant and equipment and believes that the assigned useful lives and residual value are reasonable.

ESTIMATION UNCERTAINTY

Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below.

Revenue Recognition- Where revenue contracts include deferred payment terms, the management determines the fair value of consideration receivable using the expected collection period and interest rate applicable to similar instruments with a similar credit rating prevailing at the date of transaction.

Recoverability of Advances/ Receivables- The Project heads, Zonal heads and Regional/Strategic Business groups from time to time review the recoverability of advances and receivables. The review is done at least once in a financial year and such assessment requires significant management judgement based on financial position of the counter-parties, market information and other relevant factors.

Defined Benefit Obligation (DBO) - Management''s estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation, medical cost trends, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may impact the DBO amount and the annual defined benefit expenses.

Contingencies- Management judgement is required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.

Provisions for Warranties- Management''s estimate of the warranties is based on engineering estimates and variation in these assumptions may impact the provision amount and the annual warranty expenses.

Liquidated Damages- Liquidated Damages receivables are estimated and recorded as per contractual terms; estimate may vary from actual as levied on contractor.

# The company in its board meeting dated August 11, 2018 decided to close the subsidiary companies viz. NBCC International Limited and NBCC Environment Engineering Limited. The company has received approval of its administrative Ministry i.e. Ministry of Housing and Urban Affairs and DIPAM on March 27, 2019 and May 09, 2019, respectively for the proposed closure by way of merger. Accordingly the company filed a joint application of scheme of merger with the Ministry of Corporate Affairs on December 24, 2020. The Ministry of Corporate Affairs (MCA) heard the matter of merger on January 20, 2022. The company in its Board Meeting dated July 14, 2022, decided to withdraw the application for scheme of Merger from MCA. Accordingly, the respective subsidiary companies in their Board Meeting dated August 01, 2022 decided to initiate the working for closure of the companies through voluntary liquidation. The Board of Directors of both Companies has declared solvency under section 59 of IBC, 2016 in the Board Meeting dated September 13, 2022. Further the Voluntary liquidation of both Companies has been commenced from date of Shareholders approval in AGM i.e. September 26, 2022 of respective subsidiary companies. The Liquidator were appointed for both Companies accordingly.

Liquidator has remitted to NBCC '' 97.69 Lakh & '' 96.29 Lakh for NBCC International Limited & NBCC Environment Engineering Limited respectively against its share capital of '' 100 Lakh each in both the companies, hence, Impairment provision of '' 2.31 lakh & '' 3.71 lakh were made for the shortfall amount against investment in respective subsidiaries during the year ended on March 31, 2023.

Winding-up process by liquidator were completed for NBCC International Limited and an application before Hon''ble NCLT was filed on January 16, 2023 for final dissolution order. The Hon''ble NCLT pronounced order for dissolution of NBCC International Limited on July 05, 2023. Accordingly, the accounting adjustment in respect of said company were carried out and '' 97.69 lakh which was received from NBCC International Limited got adjusted from the Investment and balance amount of '' 2.31 lakh written off and corresponding impairment provision of '' 2.31 lakh made in previous year had also been written back during the year ended on March 31, 2024. (Refer Note No 30 & 38)

Further, winding-up process by liquidator were also been completed for NBCC Environment Engineering Limited and an application before Hon''ble NCLT was filed on January 15, 2023 for final dissolution order. The Hon''ble NCLT pronounced order for dissolution of NBCC Environment Engineering Limited on September 15, 2023. Accordingly, the accounting adjustment in respect of said company has been carried out and '' 96.29 lakh which was received from NBCC Environment Engineering Limited got adjusted from the Investment and balance amount of '' 3.71 lakh written off and corresponding impairment provision of '' 3.71 lakh made in previous year has also been written back during the year ended on March 31, 2024. (Refer Note No 30 & 38)

Note -20 D

The Company has only one class of Equity Shares having a par value of '' 1 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuring Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Note -20 E

During the year 2016-17, 30,00,00,000 Equity Shares of '' 2/- each were issued as fully paid Bonus Shares with rights pari passu with existing Equity Shares.

Note -20 F

Company has split face value of equity share from '' 10/- each to '' 2/- per share as approved by the shareholders of the Company through postal ballot on June 02, 2016

Company has split face value of equity share from '' 2/- each to '' 1/- per share as approved by the shareholders of the Company through postal ballot on April 05, 2018.

Note -20 G

During the current year, Company has transferred 3657 (P.Y. 14916) number of shares in Investor Education and Protection Fund (IEPF) held by investors pursuant to section 124(6) of The Companies Act, 2013 and the rules notified thereunder whose dividend is unclaimed/unpaid for seven years to a demat account of the Investor Education and Protection Fund (IEPF) Authority.

Note -20 H

Reserves and Surplus

Nature and purpose of Other Reserves Retained Earnings

Retained Earning represent the undistributed profits of the Company.

General Reserve

General Reserve represents the statutory reserve, this is in accordance with Corporate law wherein a portion of profit is apportioned to General Reserve. Under Companies Act, 1956 it was mandatory to transfer amount before a company can declare dividend, however under Companies Act, 2013 transfer of any amount to General Reserve is at the discretion of the Company.

Other Comprehensive Income

Other Comprehensive Income represents balance arising on account of Gain/(Loss) booked on Re-measurement of Defined Benefit Plans and Exchange Difference on translation of foreign operation.

Note - 28B

The Company has adopted Indian Accounting Standard (Ind AS) - 19 on Employee Benefit as under :

Gratuity

The Company has defined benefit gratuity plan. Every employee who has rendered continuous service of five years or more is entitled to get gratuity on superannuation, resignation, termination, disablement or on death in accordance with Gratuity Act 1972. In the year 2017-18, consequent upon the amendment in the Gratuity Act 1972, the maximum limit of Gratuity to be paid to any employee enhanced from '' 10.00 lakh to '' 20.00 lakh. The scheme is funded by the Company and is managed by a separate trust formed in the year 2007-08. The liability for the same is recognised on the basis of actuarial valuation and accordingly transferred to Gratuity Trust. The provision for the year 2023-24 is '' 529.98 lakh {Previous Year ''? 498.76 lakh}. The gains/losses on the remeasurement of the assumptions on the Gratuity plan have been recognised in Other Comprehensive Income (OCI).

Earned Leave

The Company has other long term benefit plan for Earned Leave Encashment. Provision for Encashment of Earned Leave equivalent to maximum of 300 days (basic pay plus dearness allowance) is provided at the year end and charged to Statement of Profit & Loss. The liability for the year 2023- 24 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Earned Leave Encashment as on March 31, 2024 is '' 3796.89 lakh {Previous Year '' 3655.40 lakh}.

Sick Leave

The Company has other long term benefit plan for Sick Leave Encashment. The encashment of half pay leave on superannuation will be allowed in addition to encashment of earned leave subject to overall limit of 300 days. The cash equivalent payable for Sick leave would be equal to leave salary as admissible for half basic pay plus dearness allowance and to make up the shortfall in earned leave. No commutation of Sick leave shall be allowed for this purpose. The liability for the year 2023-24 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Sick Leave Encashment as on March 31, 2024 is '' 1370.02 lakh {previous year '' 1432.66 lakh}.

Travelling Allowance on Superannuation

The cumulative liability for Travelling Allowance to be paid to the employees on superannuation (exit) as on March 31, 2024 is '' 37.28 lakh {previous year '' 38.16 lakh} based on actuarial valuation. The gains/losses on the remeasurement of the assumptions on the plan have been recognised in Other Comprehensive Income (OCI).

Post Retirement Medical Benefits (PRMB)

The Company is having a defined benefit plan for Post Retirement Medical Benefits payable to the employees and the retirees of the company. The liability for the year 2023-24 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Post Retirement Medical Benefits as on March 31, 2024 is '' 12180.89 lakh {Previous Year '' 9065.33 lakh}. The gains/losses on the remeasurement of the assumptions on the plan have been recognised in Other Comprehensive Income (OCI).

Pension

The company has implemented pension scheme through NBCC Employees Defined Contribution Superannuation Pension trust under IDA pattern for those employees who have completed 15 years of service in the CPSE and on the regular rolls of the company as on November 26, 2008. The scheme is managed by a separate Trust formed in the year 2012-13 for the purpose.

Company has migrated from Existing NBCC EDCS Pension Scheme to NPS scheme w.e.f. 01st Dec''2021 wherein minimum qualifying service of 15 years is no longer required in accordance with the guidelines of Pay Revision of Board level and below Board level Executives and Non-Unionised Supervisors of Central Public Sector Enterprises (CPSEs) w.e.f. 01.01.2017. The NPS scheme is applicable to all employees except those were superannuated on or before 31st March'' 2022. Company is contributing 7.00% of the salary (Basic Pay D.A.) and the NPS is adopted as a defined contribution pension scheme. The contribution for pension amounting to '' 884.65 lakh {Previous Year '' 875.65 lakh} has been paid during the year 2023-24.

Long Service Awards

The Company has introduced a Scheme of Long Service Awards during the Financial Year 2016-17 covering all the Employees below Board Level who are on the regular roll as on September 3, 2016 onwards and completed (i) 25 Years of Service or more (ii) 30 Years of Service or more (iii) 35 Years of Service or more & (iv) 40 Years of Service or more. The company has recognised a liability of '' 201.31 lakh {Previous Year '' 191.38 lakh} during the Financial Year 2023-24 on the basis of Actuarial Valuation.

(ii) Practical Expedients Applied

In applying Ind-AS 116 for the first time, the Company has used the following practical expedients permitted by

the standard:

a) The use of a single discount rate to a portfolio of leases with reasonably similar characteristics.

b) Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than or equal to 12 months of lease term on the date of initial application.

c) The use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease and excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.

d) Applied the practical expedient to grandfather the assessment of transactions lease. Accordingly, Ind AS 116 is applied only to contracts that were previously identified as leases under Ind AS 17.

The Company has total commitment for short-term leases of '' 9.29 lakh as at 31^st March, 2024 ('' 11.48 lakh as at 31^st March, 2023).

Note -47

Disclosure as per Indian Accounting Standard (Ind AS) 108 “Operating Segments"

a) Operating Segments

Management currently identifies the Company''s three service lines as its Operating Segments as follows:- Project Management Consultancy (PMC)

- Real Estate

- Engineering, Procurement and Construction (EPC)

b) Segment Revenue & Expenses

Revenue & Expenses directly attributable to the segment is considered as “Segment Revenue & “Segment Expenses".

c) Segment Assets & Liabilities

Segment Assets & Liabilities include the respective directly identifiable to each of the segments.

These Operating Segments are monitored by the Company''s chief operating decision maker and strategic decisions are made on the basis of segment Operating Results. Segment performance is evaluated based on the profit of each segment.

Financial Assets and Financial Liabilities measured at fair value in the Balance Sheet are grouped into three Levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement as follows:

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

• Level 2: The fair value of Financial Instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates.

• Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

Specific valuation techniques used to value Financial Instruments includes the use of Net Asset Value for Mutual Funds on the basis of the statement received from investee party.

Note -49

Financial Risk Management

The Company''s activities expose it to credit risk, liquidity risk and market risk. The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the Financial Statements.

(A) Credit Risk

The Company is exposed to credit risk from its Operating Activities (Primarily Trade Receivables) and from its Financing Activities including Deposits with Banks, Mutual Funds and Financial Institutions and other Financial Instruments.

(i) Credit Risk Management

The Company assesses and manages credit risk of Financial Assets based on following categories arrived on the

basis of assumptions, inputs and factors specific to the class of Financial Assets.

A: Low Credit Risk on financial reporting date

B: Moderate Credit Risk

C: High Credit Risk

In respect of Trade Receivables, the company recognises a provision for lifetime Expected Credit Loss.

Based on business environment in which the Company operates, a default on a Financial Asset is considered when the counter party fails to make payments within the agreed time period as per contract or decided later based upon the factual circumstances on case to case basis. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

During the current financial year, the company has identified certain debtors where the management has assessed substantial increase in credit risk. Following the prudent accounting practices and as per the accounting policy, the company has made a provision of '' 23862.84 lakh upto March 31, 2023 (Upto March 31, 2023''22414.91 lakh) on the

(B) Liquidity Risk

The Company''s principal sources of liquidity are Cash and Cash Equivalents which are generated from Cash Flow from Operations. The Company has no fund based outstanding Bank Borrowings. The Company considers that the Cash Flows from Operations are sufficient to meet its current liquidity requirements.

Maturities of Financial Liabilities

The tables below analyse the Company''s Financial Liabilities into relevant maturity groupings based on their contractual maturities. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is insignificant.

(C) Market Risk

The Company''s exposure towards Price Risk arises from Investments held and classified in the Balance Sheet either as Fair Value through Other Comprehensive Income or at Fair Value through Profit & Loss. To manage the price risk arising from investments in equity securities, the Company diversifies its portfolio of assets.

Capital Management

The Company''s objectives when managing capital are to:

(i) Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

(ii) Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt (net debt comprises of borrowings less cash and cash equivalents). Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio.

Note -51

Revenue from Contracts with Customers :

Significant changes in contract Assets and Liabilities :

(a) Contract Liabilities - Deferred Income (Revenue Received in Advance):

Invoicing in excess of revenue recognised is classified as revenue received in advance. Any amount previously recognised as revenue received in advance is recognised to revenue on satisfaction of the performance obligation over the construction period.

LAND BANK

The company is carrying inventory of 16 Lands of '' 69689.70 Lakh for over 8 years. These lands are purchased for Real Estate Development. However, due to slowdown in real estate market, the company has deferred its plans to develop some of the lands. Further following lands are not registered in the name of the company:

(i) Land at Nava Raipur, Chattisgarh

The company has purchased a Group Housing Plot admeasuring 30,436 Sqm. in Naya Raipur from Naya Raipur Development Authority (NRDA) on lease in the year 2014. Company incurred total cost of '' 2195.35 Lakh upto March 31, 2024 ('' 2099.37 Lakh upto March 31, 2023). As per the terms of allotment, the lease/conveyance deed shall be executed between the owners association/housing society and NRDA once all the units are sold and all obligations as per the development agreement signed between the company and NRDA are fulfilled. However, the construction on the said land was kept in abeyance. The company has decided for development of land. Accordingly, the Building permission fees and security deposit for RWH has been deposited to the Authority to get the approval. The preliminary fire NOC has also been obtained. Further market survey to explore the market feasibility and demand at the location is being carried out for development of the plot.

(ii) Land at Faridabad

The company purchased a freehold plot admeasuring 16,753.99 Sqm. for group housing in open auction from Municipal Corporation of Faridabad (MCF) in the year 2013. The company has paid full consideration and has taken the possession of land. Company incurred total cost of '' 13178.41 Lakh (Including provision of Stamp Duty) up to March 31, 2024 ('' 13178.41 Lakh upto March 31, 2023). The company has been pursuing MCF for execution of lease deed but till date the same has not been executed for want of environment clearance. The company has applied for environment clearance for which obtaining NOC from Forest Department is necessary. Accordingly, the company applied for NOC from Forest department, however the same is denied on the ground that “the criteria for clarification of deemed forests is pending before the Hon''ble Supreme Court and Govt. of Haryana has not identified deemed forests". Company has taken up the matter with Government of Haryana to either issue necessary instructions to Forest Department for issuing of NOC as required for Environmental Clearance or refund the amount paid with interest to company. A meeting between NBCC and MCF Commissioner was held on July 06, 2023 and representation in this regard submitted vide letter dated July 07, 2023 for early resolution and requested to MCF to provide the modalities of further sale of the land parcel on ''as is what is where is basis'' as the terms regarding the same are not mentioned in the Allotment letter of the said land parcel.

Further request has also been sent to Commissioner, MCF vide letter dated October 31, 2023 to conduct a joint meeting with Forest Department, MCF and NBCC officials to resolve the long pending issue at the earliest. In this regards, MCF intimated to NBCC vide letter dated January 02, 2024 (received on January 25, 2024) that there is no responsibility for granting NOC by Forest Department and same shall be obtained at NBCC level. In response of said letter of MCF, NBCC has again written a letter dated February 06, 2024 and email dated April 12, 2024 to resolve the issue on priority, response of which is awaited.

The Net Realisable Value of the said land Inventory had deteriorated and the company has made provision of '' 1073.66 lakh towards impairment upto March 31, 2024 ('' 1006.41 lakh upto March 31, 2023). Company has reversed impairment provision of '' NIL during FY 2023-24 (P.Y. 2022-23''268.28 lakh on account of increase in Net Realisable Value as per valuation done by IBBI Registered Valuer).

(iia) Land at Plot No. GH-3B, Koval Enclave

The company has purchased a Group Housing Plot admeasuring 5766.84 Sqm. in Koyal Enclave, Ghaziabad in the year 2015. Company incurred total cost of '' 1969.83 Lakh up to March 31, 2024 ('' 1969.83 Lakh up to March 31, 2023).

The company has made '' NIL (P.Y. '' 39.47 lakh up to March 31, 2023) provision towards impairment up to March 31, 2024. Company has reversed impairment provision of '' 39.47 lakh during FY 2023-24 (P.Y. 2022-23''116.69 lakh) on account of increase in Net Realisable Value as per valuation done by IBBI Registered Valuer.

(iib) Land at Plot No. 2, Gandhi Path, Jaipur

The company has purchased a Group Housing Plot mix use admeasuring 8594.05 Sqm. in Gandhi Path, Jaipur in the year 2015.Company incurred total cost of '' 12292.07 Lakh up to March 31, 2024 ('' 12102.85 Lakh up to March 31, 2023).

The company has reversed impairment provision of NIL during FY 2023-24 (P.Y. 2022-23''359.89 lakh) on account of increase in Net Realisable Value as per valuation done by IBBI Registered Valuer.

Work in progress and completed projects

(iii) NBCC Plaza at Pushp Vihar

The company has undertaken a project for construction of “Additional Shopping cum Car Parking Blocks" in “NBCC Plaza" at Pushp Vihar, New Delhi and has paid a sum of '' 3021.78 Lakh to Land & Development Office (L&DO), Ministry of Housing & Urban Affairs (MoHUA) in the year 2010 as additional premium for availing additional ground coverage (FAR). However, later Municipal Corporation of Delhi (MCD) erstwhile South Delhi Municipal Corporation (SDMC), vide its letter dated May 20, 2015, while approving the building plans subject to compliance of few conditions, demanded additional FAR charges amounting to '' 3224.45 Lakh. The MCD also stayed the construction till the time, said amount is paid to them. Since the company had already deposited the said amount with L&DO, it represented the matter to MCD as well as L&DO, at different forums. During the year 2021-22, MoHUA has informed the company that MCD may only recover charges other than additional FAR charges, if any. MoHUA also directed MCD to release the sanctioned building plan to company at the earliest. However, the MCD is still insisting for payment of additional FAR of '' 3224.45 lakh to sanction building plan. A Joint meeting was held on July 04, 2022 which was attended by all the stakeholders (L&DO, NBCC, DDA & MCD) to deliberate on the issue. It was concluded that MCD should entitled such Additional FAR charges and the amount already paid towards additional FAR charges shall be returned by L&DO to the company so that requisite amount demanded by MCD could be paid. Company has taken up the matter with L&DO to refund the said amount. However, L&DO vide letter dated May 22, 2023 has refused to refund the amount paid by the company. Company has again requested to L&DO vide letter dated May 26, 2023 to settle the matter as additional FAR charges already been deposited with L&DO and additional demand of MCD for '' 3224.45 Lakh shall be dual charging of same component by two different authorities, for the same purpose. Accordingly MCD may be directed to withdraw its demand and release the sanction plan. Further a meeting held on October 11, 2023 between L&DO and management of NBCC to resolve the issue. The company has once again reiterated its request to L&DO in a letter dated April 24, 2024 to settle the matter. However, as of now, a response to this request is still awaited.

In addition to the above, the company has incurred a sum of '' 1718.84 lakh on construction of the project till March 31, 2024 ('' 1718.84 lakh upto March 31, 2023). The Net Realisable Value (NRV) of the project had deteriorated and the company has made provision of '' 634.53 lakh towards impairment upto March 31, 2024 ('' 643.84 lakh upto March 31, 2023). Company has reversed impairment provision of '' 9.31 lakh during FY 2023-24 (P.Y. 2022-23''250.35 lakh) on account of increase in Net Realisable Value as per valuation done by IBBI Registered Valuer.

(iv) Kochi, Kerala

The company has constructed Group Housing Real Estate project at Kochi, Kerala comprising of 3,20,216 Sq. ft. residential and 4424 Sq. ft. commercial area. The company has incurred a total cost amounting ^ 8722.60 lakh there on upto March 31, 2024 ('' 8719.13 lakh upto March 31, 2023). The sale in the project was on hold for want of environmental clearance (EC) and other necessary statutory approvals. However, RERA registration for the project has been received on the basis of available documents. The damage assessment plan has been submitted on November 23, 2022 and case was discussed in 137th SEAC (State Expert Appraisal Committee) meeting held on 24th and 25th January, 2023 for issuing the environmental clearance (EC). SEAC chairman and member also inspected the project site in respect of environmental clearance (EC) on March 31, 2023.

Based on said inspection, SEAC had asked to submit revised EIA along with damage assessment plan through Parivesh portal. The revised damage assessment plan was submitted online and case was considered in 145th SEAC meeting held on June 19, 2023. The minutes of 145th meeting was received on July 03, 2023 wherein the committee has asked to provide some modification in the remediation plan submitted. Accordingly, the revised documents were submitted on Parivesh Portal on July 07, 2023. The project was discussed in 147th SEAC meeting held on July 21, 2023. Minutes of 147th meeting received on August 01, 2023 wherein the SEAC has recommended to grant Environmental clearance for a period of 7 years. Accordingly, Company has made a total provision of ^ 177.19 lakh during the year ended on March 31, 2024 (towards penalty and expenditure etc. required to be incurred in three consecutive years on the activities as per direction from SEAC).

Further, Ministry of Environment, Forest and Climate Change vide OM dated January 08, 2024 announced that, Hon''ble Supreme Court in W.P.(C) No 1394/2023 dated January 02, 2024 titled Vanashakti vs. Union of India, has stayed the operation of both the office memorandum dated July 07, 2021 and January 28, 2022 issued by the Ministry until further orders. As a result of this obtaining of Environmental clearance is on hold till further order. Further, the matter has been heard in the SEIAA meeting held on 29th and 30th January 2024. The Authority (SEIAA) discussed the case in detail and decided to delist the application for time being till further order from Hon''ble Supreme Court and informed the detail to the Project Proponent.

(v) Jackson Gate. Agartala

The company executed a real estate project at Jackson Gate, Agartala in the year 2009 under Joint Operations with Agartala Municipal Corporation erstwhile Agartala Municipal Council (AMC). As the company was unable to sell the constructed area, the substantial portion of the constructed area has been let-out to various Government Organizations. Company is exploring the possibilities to sell the same in consultation with Joint Operator (AMC). The company has incurred a sum of ^ 916.96 lakh upto March 31, 2024 (^ 916.96 lakh upto March 31, 2023).

Occupancy certificate for the project has been issued by Agartala Municipal Corporation on January 09, 2024 and updated certificate issued on February 02, 2024 effective from November 2009. The process for obtaining “as built" drawing has been initiated. The process of completing RERA formalities for sale will be initiated after receipts of “as built" drawing etc from AMC (Joint Operator).

(vi) Group Housing project in Alwar

The company has executed Group Housing project in Alwar with a total cost of ^ 5787.45 Lakh upto March 31, 2024 (^ 5766.21 Lakh upto March 31, 2023). The substantial portion of the project was completed in the year 2018. The company initiated the sale of the project in the year 2014-15. No sale, however, could be effected. The Net Realisable Value of the project has deteriorated and the company has made provision of ^ 737.33 lakh towards impairment upto March 31, 2024 (^ 641.21 lakh upto March 31, 2023). Company has reversed impairment provision of ^ NIL during FY 2023-24 (P.Y. 2022-23 ^ 364.59 lakh on account of increase in Net Realisable Value as per valuation done by IBBI Registered Valuer). The completion certificate of the project has been obtained and accordingly RERA registration/exemption has been initiated by the company. Sale in the project shall be opened after receipt of necessary clearances from RERA.

(vii) Sukheas Lane, Kolkata

Sukheas Lane, Kolkata property is Joint Venture Property with Kolkata Metro Rail Corporation Limited (KMRCL) located in the city centre of Kolkata. The construction on the property is not completed from long time due to pendency of writ Petition no. 833/2014 before Hon''ble High court of Kolkata since the year 2014 challenging the aforesaid land acquisition by KMRCL. The said writ petition filed by M/s Archana Properties was disposed off on January 09, 2020 due to default of non-appearance of petitioners by the Hon''ble High Court of Calcutta. In this regard an IA bearing GA No 3/2021 have been filed by M/s Archana Properties in the matter in March 2021 as per website of Hon''ble High Court of Calcutta. However, the said IA has neither been served nor has any notice been received by company as on date from the Hon''ble High Court of Calcutta. The company has incurred a sum of ^ 549.59 lakh upto March 31, 2024 (P.Y. ^ 549.59 lakh up to March 31, 2023) on this project which are lying since 2014.

(viii) Sector - 37 D, Gurugram

Background of Project & events upto March 31, 2022:

The company developed a residential real estate project at NBCC Green View, Sector - 37 D, Gurugram. The occupancy certificate (OC) of the project was received in the year 2017-18. The complex was partially sold-out and the physical possession of flats, shops and EWS unit were also given to the allottees after receipt of the Occupancy Certificate of the project.

Company has sold 392 units (255 flats, 126 EWS and 11 shops) out of 942 units and had received total amount of ^ 21012.80 lakh out of which ^ 15957.58 lakh were recognised as revenue in the previous years and ^ 4048.57 lakh were booked as advance from Allottees till March 31, 2022.

Subsequently, the buildings in the project exhibited structural cracks. Company received many complaints and representation from some of home buyers. Company appointed IIT Delhi to look into the matters. IIT Delhi vide its report dated October 06, 2021 inter-alia advised that the buildings must be vacated within two months in view of safety of the occupants and further advised to get the feasibility of repairs re-examined.

Thereafter a committee of experts from IIT Roorkee and CBRI Roorkee (Central Buildings Research Institute) was constituted for structural assessment of this project in furtherance to the report of IIT Delhi. This expert committee opined that “No repair/restoration method seems economically viable and safe in the long term. It is recommended to demolish the structure"

Further a review panel of two retired SDG''s of CPWD was constituted which also concurred with recommendation given by the expert committee.

In view of the advice from the experts and considering safety of the residents, the buildings were evacuated completely with the help of the District Administration under Disaster Management Act.

The company had taken valuation of the projects from the IBBI registered valuation agencies. As per valuation report of March 31, 2022, the total net realizable value (NRV) of the project was ^ 27040.00 lakhs (on conservative basis). The proportionate NRV pertaining to the unsold portion of the project work out to ^ 20151.64 lakhs. The carrying value of unsold inventory of above project was ^ 30131.46 lakhs. Accordingly, the company had writedown of inventory by ^ 9979.83 lakhs in the year ended on March 31, 2022.

Development during Financial Year 2022-23:

The company in its 513th Board meeting held on June 21, 2022, accorded the approval to settle with all the homebuyers/allottees by way of buyback of their flats/units by paying the total amount received from the allottees against sale of flats/units amounting to ^ 21012.80 lakh and the cost of Stamp duty & registration charges paid by them amounting to ^ 973.73 lakh. Accordingly, the offer letter for buyback of their flats/EWS units/shops was communicated to all homebuyers/allottees through post as well as through mail.

In view of the uninspiring response from the buyers against the first buyback offer of the company, Board in its 522nd meeting held on January 27, 2023 decided to reconsider the same in order to arrive at an amicable settlement. Accordingly, the Board of Directors accorded in principal approval to settle with all the homebuyers/ allottees by way of buyback of their flats/units by paying settlement amount to '' 25609.00 lakh (approx) including cost of Stamp duty & registration charges to homebuyers/allottees as per defined categories. In addition to this '' 1354.00 lakh (approx.) was estimated to be incurred towards cost of Stamp duty & registration charges for execution of title deed of flats/units in the favor of company. Accordingly, the revised offer letter for buyback of their flats/EWS units/shops was communicated to all homebuyers/allottees through post as well as through mail.

In view of the above, and to comply with the provisions of Ind AS 37, the company had made a provision for expected loss of ^ 16060.86 lakh against sale of flats/ units, towards cost of Stamp duty & registration charges for execution of title deed of flats/units in the favor of company at the year ended on March 31, 2023. (Refer Note 39 Exceptional Item).

During Financial year 2022-23, company has spent total amount of '' 812.86 lakh ('' 562.00 lakh for buyback of flats/units & '' 250.86 lakh against refund of advance received from allottee). The proportionate Net Realizable Value (NRV) to the units/flats received against this payment was '' 184.98 lakh. Accordingly, inventory amounting to '' 377.02 Lakh has been written down in the year ended on March 31, 2023 (Refer Note 39 Exceptional Item). Further, in addition to this, '' 119.84 lakh were written off from Trade Receivables towards outstanding dues of Maintenance, water and electricity charges from the homebuyers/allottees of the said project for the year ended March 31, 2023 (Refer Note 39 Exceptional Item).

Company had deposited ^ 732.15 lakh for court fees and the said amount has been recorded as expenses in the books of accounts in the year ended on March 31, 2023 (Refer Note 39 Exceptional Items).

Further, As per valuation done by IBBI Registered Valuer of March 31, 2023, the total Net Realizable Value (NRV) of the project was ^ 27475.00 lakh (on conservative basis). The proportionate NRV pertaining to the unsold portion of the project was ^ 20660.80 lakh. Since the carrying value of unsold inventory of above project was ^ 20336.62 lakh. Accordingly, the company has made reversal of write down of inventory by ^ 324.18 lakh in the year ended on March 31, 2023 on account of increase in Net Realisable Value as per valuation done by IBBI Registered Valuer. (Refer Note 11 Inventories & Note 39 Exceptional Item).

Hence, Company recognised total provision/expenses of ^ 16965.69 lakh as exceptional item during financial year 2022-23. (Refer Note 39 Exceptional Item).

Development during Financial Year 2023-24:

In view of the uninspiring response from the buyers against the first & second buyback offer of the company, Board in its 529th meeting held on August 18, 2023 decided to reconsider the same in order to arrive at an amicable settlement. Accordingly, the Board of Directors has accorded in principal approval to settle with all the homebuyers/allottees by way of buyback of their flats/units by paying amount received from them with @ 6.00% per annum simple interest from date of receipt till the approval date i.e. August 18, 2023.

In view of the uninspiring response from the buyers against the first, second and third buyback offer of the company, Board in its 532nd meeting held on January 10, 2024 decided to reconsider the same in order to arrive at an amicable settlement. Accordingly, the Board of Directors has accorded in principal approval to settle with all the homebuyers/ allottees by way of reconstruction of their flats/units.

Meanwhile, National Consumer Disputes Redressal Commission (NCDRC), New Delhi vide its order dated March 05, 2024 in the consumer complaint no. 1128 of 2017 has instructed the company to refund entire amount deposited by the complainants with interest @ 9% per annum from the date of respective deposit till the date of refund and pay each set of allottee ^ 10.00 lakh as exemplary damage, within two months from order date. In view of the above order, Board in its 537th meeting held on April, 27, 2024 has accorded in principal approval to settle with allottees named in said NCDRC Order except those who opted for reconstruction.

Further, In response to the review petition filed by the company, NCDRC vide order dated April 16, 2024 clarified “that the judgment dated March 05, 2024 shall be applicable to all the allottees except those who had settled their dispute".

In view of the above, and to comply with the provisions of Ind AS 37, the company has made total Provision of ^ 13791.02 lakh for Refund of Amount Paid by Allottees for Flats/ Units including Interest and Provision of ^ 5356.95 lakh for Reconstruction of Flats/Units for allottees who opted for the reconstruction option and reversed unutilized provision as was created earlier for buyback of flats/units ^ 14832.92 Lakh during the year ended on March 31, 2024. (Refer Note 39 Exceptional Item).

During the current year company has spent total amount of ^ 3750.35 lakh (^ 3100.22 lakh for buyback of flats/ units & ^ 650.13 lakh against refund of advance received from allottee.

Further, Pursuant to the decision of management for reconstruction of flats/ units, as the project shall not be treated as completed project to be sold on AS IS WHERE IS BASIS, the project is required to be valued at lower of cost or respective NRV (whichever is lower) of land and salvage value of construction portion of unsold units. In view of this, as per valuation done by IBBI Registered Valuer as on March 31, 2024 the NRV pertaining to the proportionate Land inventory is ^15243.63 lakh (Entire land NRV ^ 21015.07 lakh) which is higher than the carrying cost of land ^ 7394.46 lakh. Further, salvage value of construction portion of entire project is ^ 2327.94 lakh against carrying value of said Inventory of ^ 16366.56 lakh. However the company has considered the salvage value of construction portion of entire project as ^ 2325.00 lakh as per valuation dated March 31, 2023 on a conservative basis. Hence, inventory amounting to ^ 14041.56 lakh has been written down during the year ended March 31, 2024. (Refer Note 11 Inventories & Note 39 Exceptional Item).

Hence, Company recognised total provision/expenses of ^ 18356.61 lakh as exceptional item during financial year 2023-24. (Refer Note 39 Exceptional Item).

Legal Cases:

A recovery suit has been filed in the High Court of Delhi, "NBCC (India) Ltd versus Ramacivil India Construction (P) ltd. and ors. Vide CS (Comm.) No. 153 of 2023" for recovery of ^ 75000.00 Lak

---

Mar 31, 2023

(iv) Description of Valuation Techniques used and key inputs to Valuation on Investment Properties:

Valuation approach - Market Price Method.

The valuation of the investment property was carried out by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. The Valuation Report is based upon the market Price method approach in which the market value is determined by comparing recent sales/quoted prices of assets located nearby and adjusting these comparable to the asset to be valued based on factors like size, condition, specifications, type of sale etc. Accordingly, the valuer has conducted market research & survey of nearby area and based on the discussion with various property consultants and local market enquiries.

(v) All resulting fair value estimates for Investment Properties are included in level 2 Fair Value

approval of Central Government. However in case the affiliate ceased to be an affiliate of the Company by any reasons, the shares so held by the affiliate shall be transferred back to the Company. Notwithstanding anything contained in the transfer agreement, the Company shall continue to have the beneficial ownership of the shares and shall be bound by all the obligation of transfer as a principal obligator.

** In case of HSCC (INDIA) Ltd the Company is not entitled directly or indirectly to sell or transfer, or create any encumbrance or transfer the legal or beneficial ownership of the shares, to any person without prior approval of Goverment of India for a period of three years from acquisition date i.e. December 26, 2018.

# Investment classsified as Current Investment in the Current Year, Refer Note No. 10.

The Company is holding NIL equity shares (Previous Year 600) in Domestic Subsidiary Companies in the name of nominees of the Company.

* The Company, in its Board Meeting dated September 23, 2019, has decided to close the Subsidiary Company NBCC Engineering & Consultancy Limited. The approval of its administrative Ministry i.e. Ministry of Housing and Urban Affairs was received on June 16, 2020 for the proposed closure. The Board of Directors of the Subsidiary Company passed a special resolution for the voluntary winding-up and appointment of liquidator at Extraordinary General Meeting of the Subsidiary Company held on February 19, 2021. The process of winding-up of the said Company by the Liquidator was completed and had remitted to Company '' 30.58 Lakh as against share capital of '' 100 Lakh in NBCC Engineering & Consultancy Limited (NECL). Final application for the dissolution of the Company was filed before the Hon''ble NCLT on February 10, 2022 and NCLT Pronounced the order on March 16, 2023. The Company has been dissolved w.e.f March 16,2023. In Continuation of liquidation process on receipt of dissolution order from NCLT on March 16, 2023, the Company, during the year has written off Investment of '' 69.42 lakh after adjustment of '' 30.58 lakh received against total investment of '' 100.00 lakh. Simultaneously, the provision of impairment on the above investments amounting to '' 100.00 lakh provided in the earlier year has been written back. (Refer Note 28 & 36).

# The Company in its Board meeting dated August 11, 2018 decided to close the subsidiary companies viz. NBCC International Limited and NBCC Environment Engineering Limited. The Company has received approval of its administrative Ministry i.e. Ministry of Housing and Urban Affairs and DIPAM on March 27, 2019 and May 09, 2019, respectively for the proposed closure by way of merger. Accordingly the Company filed a joint application of scheme of merger with the Ministry of Corporate Affairs on December 24, 2020. The Ministry of Corporate Affairs (MCA) heard the matter of merger on January 20, 2022. The Company in its Board Meeting dated July 14, 2022, decided to withdraw the application for scheme of Merger from MCA. Accordingly, the respective subsidiary companies in their Board Meeting dated August 01, 2022 decided to initiate the working for closure of the companies through voluntary liquidation. The Board of Directors of both Companies has declared solvency under section 59 of IBC, 2016 in the Board Meeting dated September 13, 2022. Further the Voluntary liquidation of both Companies has been commenced from date of Shareholders approval in AGM i.e. September 26, 2022 of respective subsidiary companies. The Liquidator were appointed for both Companies accordingly. Liquidator has remitted to parent NBCC '' 97.69 Lakh & '' 96.29 Lakh for NBCC International Limited & NBCC Environment Engineering Limited respectively against its share capital of '' 100 Lakh each in both the companies, hence, Impairment provision of '' 2.31 lakh & '' 3.71 lakh has been made for the shortfall amount against investment in respective subsidiaries during the year ended on March 31, 2023. The Accounting adjustments related to investment & Impairment provision shall be carried on receipt of dissolution order from the NCLT. Winding-up process by liquidator has been completed for both Companies and applications before Hon''ble NCLT has been filed on January 15, 2023 & January 16, 2023 for NBCC Environment Engineering Limited and NBCC International Limited respectively for final dissolution order. In case of NBCC Environment Engineering Limited NCLT has reserved the order on April 13, 2023 and the matter in respect of NBCC International Limited is under consideration of NCLT. The next date of hearing would be held on May 30, 2023.

Note - 18 D

The Company has only one class of Equity Shares having a par value of '' 1 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Note - 18 E

During the year 2016-17, 30,00,00,000 Equity Shares of '' 2/- each were issued as fully paid Bonus Shares with rights pari passu with existing Equity Shares.

Note -18 F

Company has split face value of equity share from '' 10/- each to '' 2/- per share as approved by the shareholders of the Company through postal ballot on June 02, 2016

Company has split face value of equity share from '' 2/- each to '' 1/- per share as approved by the shareholders of the Company through postal ballot on April 05, 2018.

Note -18 G

During the current year, Company has transferred 11246 (P.Y. 1130) & 3670 (P.Y. 60) number of shares in NSDL and CDSL respectively held by investors pursuant to section 124(6) of The Companies Act, 2013 and the rules notified thereunder whose dividend is unclaimed/unpaid for seven years to a demat account of the Investor Education and Protection Fund (IEPF) Authority.

Note -18 H

Reserves and Surplus

Nature and purpose of Other Reserves

Retained Earnings

Retained Earning represent the undistributed profits of the Company.

General Reserve

General Reserve represents the statutory reserve, this is in accordance with Corporate law wherein a portion of profit is apportioned to General Reserve. Under Companies Act, 1956 it was mandatory to transfer amount before a Company can declared dividend, however under Companies Act, 2013 transfer of any amount to General Reserve is at the discretion of the Company.

Other Comprehensive Income

Other Comprehensive Income represents balance arising on account of Gain/(Loss) booked on Re-measurement of Defined Benefit Plans and Exchange Difference on translation of foreign operation.

Note - 26 B

The Company has adopted Indian Accounting Standard (Ind AS) - 19 on Employee Benefit as under :

Gratuity

The Company has defined benefit gratuity plan. Every employee who has rendered continuous service of five years or more is entitled to get gratuity on superannuation, resignation, termination, disablement or on death in accordance with Gratuity Act 1972. In the year 2017-18, consequent upon the amendment in the Gratuity Act 1972, the maximum limit of Gratuity to be paid to any employee enhanced from '' 10.00 lakh to '' 20.00 lakh. The scheme is funded by the Company and is managed by a separate trust formed in the year 2007-08. The liability for the same is recognised on the basis of actuarial valuation and accordingly transferred to Gratuity Trust. The provision for the year 2022-23 is '' 498.76 lakh {Previous Year '' 491.13 lakh}. The gains/losses on the remeasurement of the assumptions on the Gratuity plan have been recognised in Other Comprehensive Income (OCI).

Earned Leave

The Company has other long term benefit plan for Earned Leave Encashment. Provision for Encashment of Earned Leave equivalent to maximum of 300 days (basic pay plus dearness allowance) is provided at the year end and charged to Statement of Profit & Loss. The liability for the year 2022-23 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Earned Leave Encashment as on March 31, 2023 is '' 3,655.40 lakh {Previous Year '' 3,579.16 lakh}.

Sick Leave

The Company has other long term benefit plan for Sick Leave Encashment. The encashment of half pay leave on superannuation will be allowed in addition to encashment of earned leave subject to overall limit of 300 days. The cash equivalent payable for Sick leave would be equal to leave salary as admissible for half basic pay plus dearness allowance and to make up the shortfall in earned leave. No commutation of Sick leave shall be allowed for this purpose. The liability for the year 2022-23 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Sick Leave Encashment as on March 31, 2023 is '' 1,432.66 lakh {previous year '' 1,158.01 lakh}.

Travelling Allowance on Superannuation

The cumulative liability for Travelling Allowance to be paid to the employees on superannuation (exit) as on March 31, 2023 is '' 38.16 lakh {previous year '' 39.90 lakh} based on actuarial valuation. The gains/losses on the remeasurement of the assumptions on the plan have been recognised in Other Comprehensive Income (OCI).

Post Retirement Medical Benefits (PRMB)

The Company is having a defined benefit plan for Post Retirement Medical Benefits payable to the employees and the retirees of the Company. The liability for the year 2022-23 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Post Retirement Medical Benefits as on March 31, 2023 is '' 9,065.33 lakh {Previous Year '' 8,314.21 lakh}. The gains/losses on the remeasurement of the assumptions on the plan have been recognised in Other Comprehensive Income (OCI).

Pension

The Company has implemented pension scheme through NBCC Employees Defined Contribution Superannuation Pension trust under IDA pattern for those employees who have completed 15 years of service in the CPSE and on the regular rolls of the Company as on November 26, 2008. The scheme is managed by a separate Trust formed in the year 2012-13 for the purpose. Company has migrated from Existing NBCC EDCS Pension Scheme to NPS scheme w.e.f. 01^st Dec, 2021 wherein minimum qualifying service of 15 years is no longer required in accordance with the guidelines of Pay Revision of Board level and below Board level Executives and Non-Unionised Supervisors of Central Public Sector Enterprises (CPSEs) w.e.f. 01.01.2017. The NPS scheme is applicable to all employees except those were superannuated on or before 31^st March, 2022. Company is contributing 7.00% of the salary (Basic Pay D.A.) and the NPS is adopted as a defined contribution pension scheme. The contribution for pension amounting to '' 875.65 lakh {Previous Year '' 841.91 lakh} has been paid during the year 2022-23.

Long Service Awards

The Company has introduced a Scheme of Long Service Awards during the Financial Year 2016-17 covering all the Employees below Board Level who are on the regular roll as on September 3, 2016 onwards and completed (i) 30 Years of Service or more (ii) 35 Years of Service or more. The Company has recognised a liability of '' 191.38 lakh {Previous Year '' 144.99 lakh} during the Financial Year 2022-23 on the basis of Actuarial Valuation.

Note - 41			('' in Lakh)
Contingent Liabilities, Contingent Assets and Commitments (To the extent not provided for)		As at March 31, 2023	As at March 31, 2022
(A)	Contingent Liabilities
(a)	Claims against the Company not acknowledged as debts. Counter claims of the Corporation against these claims amounting to '' 4,229.85 lakh (March 31, 2022 '' 4,251.05 lakh) not accounted for in books. (It includes several claims received during the current year aggregating to '' 29,479.86 lakh from single contractor for different projects and the same are sub-judice at various legal forums).	1,24,042.12	1,03,337.58
(b)	Demand in respect of taxes not accepted by Company:
	i) Value Added Tax Including Interest & Penalty as per demand notice order: During the current Financial Year, DVAT Demand of '' 40,480.01 lakh has been set aside by Hon''ble Appellate Tribunal vide order dt.10.11.2022, However the case has been remanded back to Ld. OHA for recalculation of Tax liability. Till the reporting date no further demand order has been received by Company from DVAT Department in this case.	AMOUNT NOT ASCERTAINABLE	40,480.01
	ii) Other Value Added Tax Including Interest & Penalty as per demand notice order. Company is contesting these demands.	6,615.66	8,222.97
	iii) Goods and Services Tax (as per ruling of Delhi Authority of Advance Ruling, The MoHUA, Govt. of India is not exempt from payment of GST on sale of Commercial built-up space, as it does not relate to any function entrusted to a municipality under article 243w of the Constitution and the Company is also liable to pay GST on sale of Commercial built-up area which is recoverable from customer as per terms of sale.)	3,046.35	3,046.35
	iv) Service Tax (Company is contesting demands)	4,783.16	5,443.79
	v) Income Tax Demands raised by Income Tax Department but not accepted by the Company.	413.96	380.20
	vi) Income Tax Appeals decided in favour of Company but department has filed further appeals.	715.06	767.48
	vii) Property Tax deposited under Protest	686.81	686.81
	viii) Employee Provident Fund demand ( Company is contesting Demand )	154.74	154.74
	ix) Penalty levied by the Stock Exchanges (NSE & BSE) for non-compliance of Regulation 17,18 & 19 of SEBI (LODR) Regulations, 2015. The Company has made request to the Stock Exchanges for waiver of Penalty as non-compliance are related to composition of Board and Committees due to awaited appointment of Independent Directors from the Government through Administrative Ministry as it is beyond the control of the Company)	134.13	100.15
(c)	Infrastructure Charges/Surcharge/Compensation demanded by various Authorities for Real Estate Inventory (Land & WIP) and PPE	5,147.87	5,396.25
(d)	In respect of developed real estate project at Sector 37D, Gurugram:-
	Any liability that may become payable to homebuyers/allottees of the above project on account of interest and other compensation, in respect of which ongoing litigation pending at various legal forums.[Refer Note No. 53 (viii)]	AMOUNT NOT ASCERTAINABLE	AMOUNT NOT ASCERTAINABLE
(e)	Guarantees.
	(i) Bank Guarantees for performance, Earnest Money Deposits and Security Deposits including foreign bank guarantee.	34,761.00	46,498.00

Contingent Liabilities, Contingent Assets and Commitments (To the extent not provided for)		As at March 31, 2023	As at March 31, 2022
	(ii) The Govt. guarantee charges on internal / external borrowings have not been accounted for as the matter regarding waiver of these charges has been taken up with the Govt. of India, Ministry of Housing & Urban Affairs.	1,654.93	1,654.93
(f)	Recovery at penal rate on account of excess consumption of material over theoretical norms for the materials supplied by the clients at issue price and free of cost, pending final settlement with the clients.	AMOUNT NOT ASCERTAINABLE	AMOUNT NOT ASCERTAINABLE
(B)	Contingent Assets
	i) Value Added Tax Including Interest & Penalty (Refer Note 41 (A)(b)(i) above) is fully payable by the Client in the event of confirmation of demand.	AMOUNT NOT ASCERTAINABLE	40,480.18
	ii) Goods and Service Tax (as per ruling of Delhi Authority of Advance Ruling, The MoHUA, Govt. of India is not exempt from payment of GST on sale of Commercial built-up space, as it does not relate to any function entrusted to a municipality under article 243w of the Constitution and the Company is also liable to pay GST on sale of Commercial built-up area which is recoverable from customer as per terms of sale). (Refer Note 41(A)(b)(iii) above).	2,205.36	2,205.36
(C) Commitments : Capital commitment for Construction & development of capital asset is '' 1,007.95 lakh (P.Y. NIL). (Refer Note 3 Capital Work in Progress)

A) Proposed Final Dividend '' 0.54 per share on face value of '' 1.00 per share (P.Y. '' 0.50 per share on face value of '' 1 per share).

B) Proposed Dividend is subject to approval of Shareholders in ensuing annual general meeting of the Company.

C) Company declared dividend during Financial Year 2018-19 and DDT liability was accordingly discharged. Subsequently Company received dividend from its subsidiary which was eligible for deduction u/s 115-O of Income Tax Act, 1961. Accordingly, Company claimed deduction for the same in the Income Tax Return for Financial Year 2018-19 and refund for the same has been received during Financial Year 2022-23.

3. Relationship with Entities Details of Subsidiaries

NBCC Services Limited (NSL)

NBCC Environment Engineering Limited (NEEL)

NBCC International Limited (NIL)

Hindustan Steelworks Construction Limited (HSCL)

HSCC (INDIA) Limited (HSCC)

NBCC DWC LLC- Dubai

The Company is a government Company under the aegis of Ministry of Housing and Urban Affairs. 61.75% of the share holding in the Company as at March 31, 2023 (March 31, 2022 61.75%) is held by President of India.

The Company is having Five fully owned subsidiaries and One partly owned subsidiary over which government exercise direct/ indirect control by holding more than 50% of the voting power.

In accordance with para 25 of Indian Accounting Standard (Ind As - 24) Related Party Disclosure, no disclosure is required for Subsidiary Companies/ Joint Venture Entities which can be treated as state controlled enterprises ( i.e ownership by Central/ State Government, directly or Indirectly, is more than 50% of voting rights )

The Company generally enter into transactions with the subsidiary companies at arm''s length price in the normal course of business which includes the purchase and sale of properties, rendering of services, receipt of services and secondment of employees.

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due

(ii) Practical Expedients Applied

In applying Ind-AS 116 for the first time, the Company has used the following practical expedients permitted by the standard:

a) The use of a single discount rate to a portfolio of leases with reasonably similar characteristics.

b) Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than or equal to 12 months of lease term on the date of initial application.

c) The use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease and excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.

d) Applied the practical expedient to grandfather the assessment of transactions lease. Accordingly, Ind AS 116 is applied only to contracts that were previously identified as leases under Ind AS 17.

The Company has total commitment for short-term leases of '' 11.48 lakh as at 31^st March, 2023 ('' 35.86 lakh as at 31^st March, 2022)

Note - 45

Disclosure as per Indian Accounting Standard (Ind AS) 108 "Operating Segments"

a) Operating Segments

Management currently identifies the Company''s three service lines as its Operating Segments as follows:- Project Management Consultancy ( PMC )

- Real Estate

- Engineering, Procurement and Construction ( EPC )

b) Segment Revenue & Expenses

Revenue & Expenses directly attributable to the segment is considered as "Segment Revenue" & "Segment Expenses"

c) Segment Assets & Liabilities

Segment Assets & Liabilities include the respective directly identifiable to each of the segments.

These Operating Segments are monitored by the Company''s chief operating decision maker and strategic decisions are made on the basis of segment Operating Results. Segment performance is evaluated based on the profit of each segment.

The following tables present Revenue and Profit Information and certain Assets and Liability information regarding the Company''s reportable segments for the years ended March 31, 2023 and March 31, 2022:

The carrying amount of Trade Receivables, Trade Payables and Cash & Cash Equivalent are considered to be the same as their Fair Values due to their short term nature

The carrying amount of the Financial Assets and Liabilities carried Amortised Cost is considered a reasonable approximation of Fair Value.

The above table excludes Investment in Subsidiaries, Associate and Joint Venture, which are measured at cost in accordance with Ind AS 27, ''Separate Financial Statements''.

(i) Fair Value Hierarchy

Financial Assets and Financial Liabilities measured at fair value in the Balance Sheet are grouped into three Levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement as follows:

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

• Level 2: The fair value of Financial Instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates

• Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

The following table shows the Levels within the hierarchy of Financial Assets and Liabilities measured at Fair Value on a recurring basis at March 31, 2023 and March 31, 2022:

(iii) Valuation Technique used to determine Fair Value

Specific valuation techniques used to value Financial Instruments includes the use of Net Asset Value for Mutual Funds on the basis of the statement received from investee party.

Note -47

Financial Risk Management

The Company''s activities expose it to credit risk, liquidity risk and market risk. The Company''s Board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the Financial Statements.

(A) Credit Risk

The Company is exposed to credit risk from its Operating Activities (Primarily Trade Receivables) and from its Financing Activities including Deposits with Banks, Mutual Funds and Financial Institutions and other Financial Instruments.

(i) Credit Risk Management

The Company assesses and manages credit risk of Financial Assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of Financial Assets.

A: Low Credit Risk on financial reporting date

B: Moderate Credit Risk

C: High Credit Risk

In respect of Trade Receivables, the Company recognises a provision for lifetime Expected Credit Loss.

Based on business environment in which the Company operates, a default on a Financial Asset is considered when the counter party fails to make payments within the agreed time period as per contract or decided later based upon the factual circumstances on case to case basis. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

During the current Financial Year, the Company has identified certain debtors where the management has assessed substantial increase in credit risk. Following the prudent accounting practices and as per the accounting policy, the Company has made a provision of '' 22,414.91 lakh upto March 31, 2023 (Upto March 31, 2022''22,820.33 lakh) on the net exposure of the trade receivables and corresponding trade payables where the Company has legally enforceable right to adjust the same.

Assets are written off when there is no reasonable expectation of recovery, such as a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognised in Statement of Profit and Loss.

The Company''s principal sources of liquidity are Cash and Cash Equivalents which are generated from Cash Flow from Operations. The Company has no fund based outstanding Bank Borrowings. The Company considers that the Cash Flows from Operations are sufficient to meet its current liquidity requirements.

Maturities of Financial Liabilities

The tables below analyse the Company''s Financial Liabilities into relevant maturity groupings based on their contractual maturities. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is insignificant.

The Company''s exposure towards Price Risk arises from Investments held and classified in the Balance Sheet either as Fair Value through Other Comprehensive Income or at Fair Value through Profit & Loss. To manage the price risk arising from investments in equity securities, the Company diversifies its portfolio of assets.

Note - 48

Capital Management

The Company''s objectives when managing capital are to:

(i) Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

(ii) Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt (net debt comprises of borrowings less cash and cash equivalents). Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio.

The Company has no outstanding fund based debt as at the end of the respective years. Accordingly Company has NIL Capital gearing ratio as at March 31, 2023 and March 31, 2022.

Note - 49

Revenue from Contracts with Customers :

Significant changes in contract Assets and Liabilities :

(a) Contract Liabilities - Deferred Income (Revenue Received in Advance):

Invoicing in excess of revenue recognised is classified as revenue received in advance. Any amount previously recognised as revenue received in advance is recognised to revenue on satisfaction of the performance obligation over the construction period.

(c) Contract Assets - Unbilled Revenue:

Invoicing to the clients is based on milestones as defined in the contract. This would result in the timing of revenue recognition being different from the timing of billing the customers. Revenue in excess of billing is recorded as unbilled revenue and is classified as a contract asset. Any amount previously recognised as a contract asset is reclassified to trade receivables on satisfaction of the condition attached i.e. future service which is necessary to achieve the billing milestone.

(e) Revenue Recognised in relation to Contract Liabilities :

Disclosure pursuant to para 116(b) & (c) of Ind AS 115 in respect of ''revenue recognised in the reporting period that was included in the contract liability balance at the beginning of the period'' and ''revenue recognised in the reporting period from performance obligations satisfied (or partially satisfied) in previous periods are as below:

(g) Performance obligations and remaining performance obligations :

Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the remaining performance obligation related disclosures for contracts as the revenue recognized corresponds directly with the value to the customer of the entity''s performance completed to date. Remaining performance obligation estimates are subject to change and are affected by several factors, such as changes in the scope of contracts, periodic revalidations, terminations, adjustment for revenue that has not materialized as at the reporting date.

Inventory Disclosures

LAND BANK

The Company is carrying inventory of 15 Lands of '' 61,873.20 Lakh for over 8 years. These lands are purchased for Real Estate

Development. However, due to slowdown in real estate market, the Company has deferred its plans to develop some of the

lands. Further following lands are not registered in the name of the Company:

(i) Land at Naya Raipur, Chattisgarh

The Company has purchased a Group Housing Plot admeasuring 30,436 Sqm. in Naya Raipur from Naya Raipur Development Authority (NRDA) on lease for a total sum of '' 2,099.37 Lakh in the year 2014. As per the terms of allotment, the lease/conveyance deed shall be executed between the owners association/housing society and NRDA once all the units are sold and all obligations as per the development agreement signed between the Company and NRDA are fulfilled. However, the construction on the said land was kept in abeyance upto previous Financial Year. The Company has decided for development of land. Accordingly, the Building permission fees and security deposit for RWH has been deposited to the Authority to get the approval. The preliminary fire NOC has also been obtained. Further market survey to explore the market feasibility and demand at the location is being carried out for development of the plot. The development of plot may start in next Financial Year given the favorable conditions of the market.

(ii) Land at Faridabad

The Company purchased a freehold plot admeasuring 16,753.99 Sqm. for group housing in open auction from Municipal Corporation of Faridabad (MCF) for a total sum of '' 13,178.41 Lakh (Including provision of Stamp Duty) in the year 2013. The Company has paid full consideration and has taken the possession of land. The Company has been pursuing MCF for execution of lease deed but till date the same has not been executed for want of environment clearance. The Company has applied for environment clearance for which obtaining NOC from Forest Department is necessary. Accordingly, the Company applied for NOC from Forest department, however the same is denied on the ground that "the criteria for clarification of deemed forests is pending before the Hon''ble Supreme Court and Govt. of Haryana has not identified deemed forests". Whereas in Clause No. 24 of letter of allotment of land, the MCF stated that, "Deputy Conservator of Forests, Faridabad vide her office memo no. 569 dated August 28, 2012 has intimated that the area under Group Housing plots is notified under general section-4 of Punjab Land Preservation Act, 1900". Thus, denial of NOC by Forest Department is contrary to what is contained in Letter of Allotment. Company has taken up the matter with Government of Haryana to either issue necessary instructions to Forest Department for issuing of NOC as required for Environmental Clearance or refund the amount paid with interest to Company. The Company is exploring the possibility of early execution of lease deed from MCF or referring the matter to AMRCD for early resolution.

Work in progress and completed projects

(iii) NBCC Plaza at Pushp Vihar

The Company has undertaken a project for construction of "Additional Shopping cum Car Parking Blocks" in "NBCC Plaza" at Pushp Vihar, New Delhi and has paid a sum of '' 3,021.78 Lakh to Land & Development Office (L&DO), Ministry of Housing & Urban Affairs (MoHUA) in the year 2010 as additional premium for availing additional ground coverage (FAR). However, later Municipal Corporation of Delhi (MCD) erstwhile South Delhi Municipal Corporation (SDMC), vide its letter dated May 20, 2015, while approving the building plans subject to compliance of few conditions, demanded additional FAR charges amounting to '' 3,224.45 Lakh. The MCD also stayed the construction till the time, said amount is paid to them. Since the Company had already deposited the said amount with L&DO, it represented the matter to MCD as well as L&DO, at different forums. MoHUA also directed MCD to release the sanctioned building plan to Company at the earliest. However, the MCD is still insisting on payment of additional FAR of '' 3,224.45 lakh to sanction building plan. A Joint meeting was held on July 04, 2022 which was attended by all the stakeholders (L&DO, NBCC, DDA & MCD) to deliberate on the issue. It was concluded that MCD should entitled to such Additional FAR charges and the amount already paid towards additional FAR charges shall be returned by L&DO to the Company so that requisite amount demanded by MCD could be paid. Though, the Minutes of the said meeting are still awaited, Company has taken up the matter with L&DO to refund the said amount. However L&DO vide letter dated May 22, 2023 has refused to refund the amount paid by the Company. Company has again requested to L&DO vide letter dated May 26, 2023 to settle the matter as additional FAR charges already been deposited with L&DO and additional demand of MCD for '' 3,224.45 Lakh shall be dual charging of same component by two different authorities, accordingly MCD may be directed to withdraw its demand and release the sanction plan. The response of the same is awaited from L&DO.

In addition to the above, the Company has incurred a sum of '' 1,718.84 lakh on construction of the project till March 31, 2023. The net realisable value (NRV) of the constructed block is '' 1,075.00 lakh. The Company has already made a provision in the books for impairment in the value of assets amounting to '' 643.84 lakh.

(iv) Kochi, Kerala

The Company has constructed Group Housing Real Estate project at Kochi, Kerala comprising 3,20,216 Sq. ft. residential and 4,424 Sq. ft. commercial area. The Company has incurred a total cost amounting '' 8,719.13 lakh thereon upto March 31, 2023. The sale in the project is pending for want of environmental clearance (EC) and other necessary statutory approvals. However, RERA registration for the project has been received on the basis of available documents. The Company expect to receive environmental clearance (EC) soon as the process is in advance stage and Terms of Reference (TOR) was received on November 03, 2022 for submission of requisite information & reports to State Environment Impact Assessment Authority (SEIAA) for approval of plan. The damage assessment plan was submitted on November 23, 2022 and case was discussed in 137^th State Expert Appraisal Committee (SEAC) meeting held on January 24, 2023 & January 25, 2023 for issuing the environmental clearance (EC). SEAC chairman and member also inspected the project site in respect of environmental clearance (EC) on March 31, 2023.

Based on said inspection, case of environmental clearance (EC) was discussed in 142^nd State Expert Appraisal Committee (SEAC) meeting held on May 11, 2023. Based on the said meeting minutes issued on May 24, 2023 in which SEAC has asked to submit revised EIA along with damage assessment plan through Parivesh portal. The damage assessment plan is being prepared by considering 1% penalty on project cost. i.e. '' 87.90 lakh. The penalty amount may change based on decision of SEAC committee at the time of hearing. The bank guarantee for final penalty amount shall be submitted by Company on finalization of penalty by SEAC committee. It shall be utilized for in three consecutive years based on direction from SEAC and accounted for in accordance with accounting principles.

(v) Jackson Gate, Agartala

The Company executed a real estate project at Jackson Gate, Agartala in the year 2010 under Joint Operations with Agartala Municipal Council (AMC). As the Company was unable to sell the constructed area, the substantial portion of the constructed area has been let-out to various Government Organizations. Company is exploring the possibilities to sell the same in consultation with Joint Operator (AMC). The Company has incurred a sum of '' 916.96 lakh as on date. Joint Operator (AMC) is yet to issue OC/CC certificate post which RERA formalties will be done and sales will be opened/ launched.

(vi) Group Housing project in Alwar

The Company has executed Group Housing project in Alwar with a total expenditure of '' 5,766.21 Lakh upto March 31, 2023. The substantial portion of the project was completed in the year 2018. The Company initiated the sale of the project in the year 2014-15. No sale, however, could be effected. The Net Realisable Value of the project has deteriorated and the Company has made provision of '' 641.21 lakh towards impairment upto March 31, 2023. The completion certificate of the project has been obtained and accordingly RERA registration/exemption has been initiated by the Company. Sale in the project shall be opened after receipt of necessary clearances from RERA.

(vii) Sukheas Lane, Kolkata

Sukheas Lane, Kolkata property is Joint Venture Property with Kolkata Metro Rail Corporation Limited (KMRCL) located in the city centre of Kolkata. The construction on the property is not completed from long time due to pendency of writ Petition no. 833/2014 before Hon''ble High court of Calcutta since the year 2014 challenging the aforesaid land acquisition by KMRCL. The said writ petition filed by M/s Archana Properties was disposed off on January 09, 2020 due to default of non-appearance of petitioners by the Hon''ble High Court of Calcutta. In this regard an IA bearing GA No 3/2021 have been filed by M/s Archana Properties in the matter in March 2021 as per website of Hon''ble High Court

of Calcutta. However, the said IA has neither been served nor has any notice been received by Company as on date from the Hon''ble High Court of Calcutta. The Company has incurred a sum of '' 549.59 lakh on this project which are lying since 2014.

(viii) Sector - 37 D, Gurugram

The Company developed a residential real estate project at NBCC Green View, Sector - 37 D, Gurugram. The occupancy certificate (OC) of the project was received in the year 2017-18. The complex is partially sold-out and the physical possession of flats, shops and EWS unit were also given to the allottees after receipt of the Occupancy Certificate of the project.

Company has sold 392 units (255 flats, 126 EWS and 11 shops) out of 942 units and had received total amount of '' 21,012.80 lakh out of which '' 15,957.58 lakh were recognised as revenue in the previous years and '' 4,048.57 lakh were booked as advance from Allottees till March 31, 2022.

Subsequently, the buildings in the project exhibited structural cracks. Company received many complaints and representation from some of home buyers. Company appointed IIT Delhi to look into the matters. IIT Delhi vide its report dated October 06, 2021 inter-alia advised that the buildings must be vacated within two months in view of safety of the occupants and further advised to get the feasibility of repairs re-examined.

Thereafter a committee of experts from IIT Roorkee and CBRI Roorkee (Central Buildings Research Institute) was constituted for structural assessment of this project in furtherance to the report of IIT Delhi. This expert committee opined that "No repair/restoration method seems economically viable and safe in the long term. It is recommended to demolish the structure"

Further a review panel of two retired SDG''s of CPWD was constituted which also concurred with recommendation given by the expert committee.

In view of the advice from the experts and considering safety of the residents, the buildings were evacuated completely with the help of the District Administration under Disaster Management Act.

The Company in its 513^th Board meeting held on June 21, 2022, has accorded the approval to settle with all the homebuyers/allottees by way of buyback of their flats/units by paying the total amount received from the allottees against sale of flats/units amounting to '' 21,012.80 lakh and the cost of Stamp duty & registration charges paid by them amounting to '' 973.73 lakh. Accordingly, the offer letter for buyback of their flats/EWS units/shops was communicated to all homebuyers/allottees through post as well as through mail.

In view of the uninspiring response from the buyers against the first buyback offer of the Company, Board in its 522^nd meeting held on January 27, 2023 decided to reconsider the same in order to arrive at an amicable settlement. Accordingly, the Board of Directors has accorded in principal approval to settle with all the homebuyers/allottees by way of buyback of their flats/units by paying settlement amount to '' 25,609.00 lakh (approx) including cost of Stamp duty & registration charges to homebuyers/allottees as per defined categories. In addition to this '' 1,354.00 lakh (approx.) estimated to be incurred towards cost of Stamp duty & registration charges for execution of title deed of flats/units in the favor of Company. Accordingly, the revised offer letter for buyback of their flats/EWS units/shops was communicated to all homebuyers/allottees through post as well as through mail.

In view of the above, and to comply with the provisions of Ind AS 37, the Company has made a provision for expected loss of '' 16,060.86 lakh against sale of flats/ units, towards cost of Stamp duty & registration charges for execution of title deed of flats/units in the favor of Company at the year ended on March 31, 2023.

Further, in addition to above, '' 119.84 lakh has been written off from Trade Receivables towards outstanding dues of Maintenance, water and electricity charges from the homebuyers/allottees of the said project for the year ended March 31, 2023 (Refer Note 37 Exceptional Item).

Futher, during the year Company has spent total amount of '' 812.86 lakh ('' 562.00 lakh for buyback of flats/units & '' 250.86 lakh against refund of advance received from allottee). The proportionate Net Realizable Value (NRV) to the units/flats received against this payment is '' 184.98 lakh. Accordingly, inventory amounting to '' 377.02 Lakh has been written down in the year ended on March 31, 2023 (Refer Note 9 Inventories & Note 37 Exceptional Item).

Further, as per valuation report, the total Net Realizable Value (NRV) of the project is '' 27,475.00 lakh (on conservative basis) as at March 31, 2023. The proportionate NRV pertaining to the unsold portion of the project is '' 20,660.80 lakh. Since the carrying value of unsold inventory of above project was '' 20,336.62 lakh. Accordingly, the Company has made reversal of write down of inventory by '' 324.18 lakh in the year ended on March 31, 2023 (Refer Note 9 Inventories & Note 37 Exceptional Item).

A recovery suit has been filed in the Hon''ble High Court of Delhi, "NBCC (India) Ltd versus Ramacivil India Construction (P) ltd. and ors. Vide CS (Comm.) No. 153 of 2023" for recovery of '' 75,000.00 Lakh in the matter of NBCC Greenview Sec 37D, Gurugram, Haryana. The matter is sub judice. Company has deposited '' 732.15 lakh for court fees and the said amount has been recorded as expenses in the books of accounts. (Refer Note 37 Exceptional Items)

As on date, there are 21 ongoing litigations before various forums for refund of the amount paid by homebuyers/allottees along with interest and other compensations and also by contractor for various claims. However, since the matter is sub judice and is pending at various forums and the costs and liabilities (if any), that may possibly be incurred towards interest and other compensations are not ascertainable as on the date, hence, no provision for the same is provided in the year ended on March 31, 2023. (Refer Note No 41(A)(d)). However, claims of homebuyers/allottees and contractor which is sub judice and is pending at various forums amounting '' 6187.20 lakh has been included in Contingent liability (Refer Note No 41(A)(a)).

Note -54

Other Disclosures

(a) Additional Informations in pursuance to Schedule III Division II is disclosed as under:

(i) The Company has not been declared a Wilful Defaulters by any bank or financial institution or consortium thereof in accordance with the guidelines on Wilful defaulters issued by the RBI.

(ii) There are no proceedings initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(iii) The Company has not traded or invested in Crypto currency or virtual curreny during the reporting periods.

(iv) The Company has neither advanced, loaned or invested fund nor received any fund to/from any person or entity for lending or investing or providing guarantee to/on behalf of the ultimate beneficiary during the reporting periods.

(v) During the Financial Year, there is no charge or satisfaction of charge which is yet to be registered with ROC beyond the statutory period.

(vi) The Board of Directors of the Company on July 06, 2020 approved a scheme of merger in terms of Section 230-232 of the Companies Act, 2013 in respect of two wholly owned Subsidiaries with Holding Company i.e. Merger of NBCC Environment Engineering Limited (Transferor Company No. 1) and NBCC International Limited (Transferor Company No. 2) with NBCC (India) Limited (Transferee Company). However, Company in its Board meeting dated July 14, 2022 had decided to withdraw the scheme of merger, and the Ministry of Corporate Affairs (MCA) had also closed the application of the aforesaid merger vide letter dated August 04, 2022. Accordingly, for the FY 2022-23 till March 31, 2023 the Company has not entered into any scheme of arrangement in terms of sections 230 to 237 of the Companies Act, 2013.

(vii) The Company does not have any transaction not recorded in the books of accounts that has been surrendered or not disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

(viii) Pursuant to Rule 2(2)(d) of the Companies (Restriction on number of Layers) Rules, 2017, the requirement of number of layers not applicable to the Company.

(ix) The Company has not taken any Fund based loan / limit from banks or financial institutions on the basis of security of current assets. Hence, the use of borrowing for specific purpose not applicable to the Company.

(b) The major clients of the Company are ministries, Government Departments, Government Authorities and Public Sector Undertakings. The balances of the clients in the nature of Trade Receivables, Loans and Advances, Earnest Money

Deposit, Security Deposit and Deposits in the nature of trade receivables classified under current and non current assets; and also the trade payables are subject to confirmation, reconciliation and consequent adjustments. The management does not expect any significant impact upon such reconciliation.

(c) Advance to Ghaziabad Development Authority (GDA) for Land at Koyal Enclave Ghaziabad:

The Company purchased a land admeasuring 16,225.05 Sq. Mtr. at Koyal Enclave from Ghaziabad Development Authority (GDA) in the year 2015. The Company has incurred a total cost of '' 5,503.13 Lakh (Including provision for stamp duty). The lease deed and the possession in respect of the above plot have not yet been executed. GDA has demanded a sum of '' 462.41 Lakh towards infrastructure Charges vide letter No. 2433 dated December 13, 2019. The said demand is not acceptable to the Company and in view of the same, the Company has requested GDA for cancellation of allotment & refund of entire amount with interest as per the terms of allotment etc. GDA has offered to refund the purchased amount after deduction of the cancellation charges. The Company has not accepted the offer of GDA and taken up the matter with higher authorities of Govt. of Uttar Pradesh.

Consequent to opinion taken from The Expert Advisory Committee of Institute of Chartered Accountants of India, the Company has transferred the amount paid to GDA from Land Inventory (Inventories) to advance paid for Land (Other Current Assets) and reversed the provision made for Stamp duty under taxes payable (Other Current Liabilities) in current year and previous year figures also regrouped accordingly.

(d) The Company has acquired a 100% stake in HSCC (India) Limited (HSCC) by paying '' 28,500.00 lakh to the Government of India during FY 2018-19. As of March 31, 2023, the Net Asset Value of HSCC is lower than the carrying amount of the Company''s investment. The subsidiary has consistently generated profits, paid dividends to the Company, and experienced an increase in its Net Asset Value since the acquisition. Considering the revenue projections, existing order in hand, anticipated future profitability, and the liquidity position, the management is confident that the Net Asset Value of the subsidiary Company will improve and eventually match the carrying value of the investment.

(e) The spread of COVID - 19 pandemic has impacted businesses around the globe. In many countries, including India, there have been disruptions in regular business operations due to Lockdown. During the Previous year, the country was in partially in lockdown and the Company temporarily suspended its operations in all its offices, in compliance with the Lockdown advisory issued by Central / Respective State Government. As a result of Lockdown, the volumes for the previous year have been partially impacted.

Note -55

Events After Balance Sheet Date

Proposed Final Dividend of '' 0.54 per equity share on face value of '' 1.00 per equity share (Previous year '' 0.50 per equity

share on face value of '' 1.00 per equity share) for the Financial Year 2022-23 which is subject to approval of shareholders in

ensuing annual general meeting of the Company.

Note -56

Regrouping / Reclassified

Previous year figures have been regrouped and/or reclassified, wherever considered, necessary to conform to those of the

current year grouping and/or classification. Negative figures have been shown in brackets.

---

Mar 31, 2022

The Company is holding 2148 equity shares (Previous Year 2148) in Domestic Subsidiary Companies in the name of its

nominees.

* The company is entitled to transfer the shares held in HSCL only to an affiliate of the company upto an extent of 25% subject to the approval of Central Government. However in case the affiliate ceased to be an affiliate of the company by any reasons, the shares so held by the affiliate shall be transferred back to the company. Notwithstanding anything contained in the transfer agreement, the company shall continue to have the beneficial ownership of the shares and shall be bound by all the obligation of transfer as a principal obligator.

** In case of HSCC (INDIA) Ltd the company is not entitled directly or indirectly to sell or transfer, or create any encumbrance or transfer the legal or beneficial ownership of the shares, to any person without prior approval of Goverment of India for a period of three years from acquisition date i.e. December 26, 2018.

# The company in its Board Meeting dated August 11, 2018 has decided to close the subsidiary companies. The company has received approval of its administrative Ministry i.e. Ministry of Housing and Urban Affairs and DIPAM on March 27, 2019 and May 09, 2019 respectively for the proposed closure by way of merger. Accordingly the Company filed a joint application of Scheme of Merger with the Ministry of Corporate Affairs on December 24, 2020. The Ministry of Corporate Affairs (MCA) heard the matter of merger on January 20, 2022 and sought further information with reference to Shareholding and Creditors Meeting. The same is under consideration.

The Company is holding 600 equity shares (Previous Year 600) in Domestic Subsidiary Companies in the name of its nominees.

# The Company, in its Board Meeting dated September 23, 2019, has decided to close the Subsidiary Company NBCC Engineering & Consultancy Limited. The approval of its administrative Ministry i.e. Ministry of Housing and Urban Affairs was received on June 16, 2020 for the proposed closure. The Board of Directors of the Subsidiary Company passed a special resolution for the voluntary winding-up and appointment of liquidator at Extraordinary General Meeting of the Subsidiary Company held on February 19, 2021. The process of winding-up of the Company by the Liquidator has been completed. Further a final application for the dissolution of the Company has been filed before the Hon''ble NCLT on February 10, 2022. The matter is under consideration of NCLT. The next date of hearing July 06, 2022.

## The Company, in its Board Meeting dated July 15, 2019, decided to close the Subsidiary Company NBCC GULF L.L.C. The approval of its administrative Ministry i.e. Ministry of Housing and Urban Affairs was received on June 16, 2020 for the proposed closure. The partners of NBCC Gulf LLC, in its meeting dated July 02, 2020, unanimously resolved to liquidate the company and approved the appointment of liquidator. The liquidator, on September 1, 2020, filed necessary documents w.r.t Liquidation with the Registrar of Companies in Sultanate of Oman. The notification of the liquidation was published in official gazette on September 13, 2020. The partners of the company, in its meeting dated March 29, 2021, approved the final report of the liquidator and the final form of the liquidation work. The partners decided to register the partners resolution and to complete the liquidation procedure by publishing in the official gazette and thus to cancel the certificate of registration of the Subsidiary Company to end its legal entity status. The certificate of registration of the company has been cancelled on June 20, 2021 by Sultanate of Oman.

In Continuation of liquidation process on cancellation of the certificate of registration of one of the Subsidiary Company viz NBCC GULF L.L.C. by Sultanate of Oman, the company, during the year has written off Investment of ''133.17 lakh after adjustment of '' 158.87 lakh received against total investment of '' 292.04 lakh. Simultaneously, the provision of impairment on the above investments amounting to '' 137.83 lakh provided in the earlier year has been written back. (Refer Note 27 & 35).

Note -17 D

The Company has only one class of Equity Shares having a par value of '' 1 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuring Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Note -17 E

During the year 2016-17, 30,00,00,000 Equity Shares of '' 2/- each were issued as fully paid Bonus Shares with rights pari passu with existing Equity Shares.

Note -17 F

Company has split face value of equity share from '' 10/- each to '' 2/- per share as approved by the shareholders of the Company through postal ballot on June 02, 2016.

Company has split face value of equity share from '' 2/- each to '' 1/- per share as approved by the shareholders of the Company through postal ballot on April 05, 2018.

Note -17 G

During the current year, Company has transferred 1130 (P.Y. 4804) & 60 (P.Y. NIL) number of shares in NSDL and CDSL respectively held by investors pursuant to section 124(6) of The Companies Act, 2013 and the rules notified thereunder whose dividend is unclaimed/unpaid for seven years to a demat account of the Investor Education and Protection Fund (IEPF) Authority.

Note -17 HReserves and SurplusNature and purpose of Other ReservesRetained Earnings

Retained Earning represent the undistributed profits of the Company.

General Reserve

General Reserve represents the statutory reserve, this is in accordance with Corporate law wherein a portion of profit is apportioned

Notes to the standalone Financial Statements for the year ended March 31, 2022

to General Reserve. Under Companies Act, 1956 it was mandatory to transfer amount before a company can declared dividend, however under Companies Act, 2013 transfer of any amount to General Reserve is at the discretion of the Company.

Other Comprehensive Income

Other Comprehensive Income represents balance arising on account of Gain/(Loss) booked on Re-measurement of Defined Benefit Plans and Exchange Difference on translation of foreign operation.

Note - 25BThe Company has adopted Indian Accounting Standard (Ind AS) - 19 on Employee Benefit as under : Gratuity

The Company has defined benefit gratuity plan. Every employee who has rendered continuous service of five years or more is entitled to get gratuity on superannuation, resignation, termination, disablement or on death in accordance with Gratuity Act 1972. In the year 2017-18, consequent upon the amendment in the Gratuity Act 1972, the maximum limit of Gratuity to be paid to any employee enhanced from ''10.00 Lakh to '' 20.00 Lakh The scheme is funded by the Company and is managed by a separate trust formed in the year 2007-08. The liability for the same is recognised on the basis of actuarial valuation and accordingly transferred to Gratuity Trust. The provision for the year 2021-22 is '' 491.13 Lakh {Previous Year '' 483.34 Lakh}. The gains/losses on the remeasurement of the assumptions on the Gratuity plan have been recognised in Other Comprehensive Income (OCI).

Earned Leave

The Company has other long term benefit plan for Earned Leave Encashment. Provision for Encashment of Earned Leave equivalent to maximum of 300 days (basic pay plus dearness allowance) is provided at the year end and charged to Statement of Profit & Loss. The liability for the year 2021-22 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Earned Leave Encashment as on March 31, 2022 is '' 3579.16 Lakh {Previous Year '' 3878.59 Lakh}.

Sick Leave

The Company has a other long term benefit plan for Sick Leave Encashment. The encashment of half pay leave on superannuation will be allowed in addition to encashment of earned leave subject to overall limit of 300 days. The cash equivalent payable for Sick leave would be equal to leave salary as admissible for half basic pay plus dearness allowance and to make up the shortfall in earned leave. No commutation of Sick leave shall be allowed for this purpose. The liability for the year 2021-22 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Sick Leave Encashment as on March 31, 2022 is '' 1158.01 takh {previous year '' 1271.55 Lakh}.

Travelling Allowance on Superannuation

The cumulative liability for Travelling Allowance to be paid to the employees on superannuation (exit) as on March 31, 2022 is '' 39.90 Lakh {previous year '' 41.96 Lakh} based on actuarial valuation.The gains/losses on the remeasurement of the assumptions on the plan have been recognised in Other Comprehensive Income (OCI).

Post Retirement Medical Benefits (PRMB)

The Company is having a defined benefit plan for Post Retirement Medical Benefits payable to the employees and the retirees of the company. The liability for the year 2021-22 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Post Retirement Medical Benefits as on March 31, 2022 is '' 8314.21 lakh {Previous Year '' 6707.41 Lakh}. The gains/losses on the remeasurement of the assumptions on the plan have been recognised in Other Comprehensive Income (OCI).

Pension

The company has implemented pension scheme through NBCC Employees Defined Contribution Superannuation Pension trust under IDA pattern for those employees who have completed 15 years of service in the CPSE and on the regular rolls of the company as on November 26, 2008. The scheme is managed by a separate Trust formed in the year 2012-13 for the purpose. The contribution for pension amounting to '' 841.91 Lakh {Previous Year '' 872.22 Lakh} has been paid during the year 2021-22.

Long Service Awards

The Company has introduced a Scheme of Long Service Awards during the Financial Year 2016-17 covering all the Employees below Board Level who are on the regular roll as on September 3, 2016 onwards and completed (i) 30 Years of Service or more (ii) 35 Years of Service or more. The company has recognised a liability of '' 144.99 Lakh { Previous Year '' 150.78 Lakh } during the Financial Year 2021-22 on the basis of Actuarial Valuation.

(i) Sensitivities due to Mortality & withdrawls are not material and hence impact of change due to these not calculated.

(ii) Sensitivities as to rate of increase of pensions in payment, rate of increase of pensions before retirement & life expectancy are not applicable.

(iii) Changes in Defined Benefit Obligation due to 0.5% Increase/Decrease in Mortality Rate, if all other assumptions remain constant is negligible.

(iv) Sensitivities as to rate of inflation, rate of increase of pensions in payment, rate of increase of pensions before retirement & life expectancy are not applicable being a lump sum benefit on retirement.

Note - 40		('' in lakh)
Contingent Liabilities, Contingent Assets and Commitments (To the extent not	As at March 31,	As at March 31,
provided for)	2022	2021
(A) Contingent Liabilities
(a) Claims against the Company not acknowledged as debts. Counter claims of the Corporation against these claims amounting to '' 4251.05 lakh (March 31, 2021 '' 4321.78 lakh) not accounted for in books.	1,03,337.58	42,970.09
(b) Demand in respect of taxes not accepted by company:
i) Value Added Tax Including Interest & Penalty as per demand notice order. Company is contesting these demands.	48,702.98	48,821.48
ii) Goods and Services Tax (as per ruling of Delhi Authority of Advance Ruling, The MoHUA, Govt. of India is not exempt from payment of GST on sale of Commercial built-up space, as it does not relate to any function entrusted to a municipality under article 243w of the Constitution and the Company is also liable to pay GST on sale of Commercial built-up area which is recoverable from customer as per terms of sale.	3,046.35	3,046.35
iii) Service Tax (Company is contesting demands)	5,443.79	4,593.47
Income Tax:
iv) Demands raised by Income Tax Department but not accepted by the company.	380.20	482.48
v) Appeals decided in favour of company but department has filed further appeals	767.48	843.94
vi) Property Tax deposited under Protest	686.81	686.81
vii) Employee Provident Fund demand ( Company is contesting Demand )	154.74	152.49
(c) Infrastructure Charges/Surcharge/Compansation demanded by various Authorities for Real Estate Inventory (Land & WIP) and PPE	5,396.25	3,640.02
(d) In respect of developed real estate project at Sector 37D, Gurugram:- Any liability that may become payable to Home buyers of the above project on account of amounts received from them, interest payable, taxes and compensation,	AMOUNT NOT
in respect of which a decision is pending with the management and at various legal forums. [Refer Note No. 52(x)]	ASCERTAINABLE
(e) Guarantees (i) Bank Guarantees for performance, Earnest Money Deposits and Security Deposits including foreign bank guarantee.	46,498.00	49,165.00
(ii) Performance Bank Guarantee Jaypee Infratech Limited	-	10,000.00
(iii) The Govt. guarantee charges on internal / external borrowings have not been accounted for as the matter regarding waiver of these charges has been taken up with the Govt. of India, Ministry of Housing & Urban Affairs.	1,654.93	1,654.93
(f) Recovery at penal rate on account of excess consumption of material over theoretical norms for the materials supplied by the clients at issue price and free of cost, pending final settlement with the clients.	NOT ASCERTAINABLE	NOT ASCERTAINABLE
(B) Contingent Assets
i) Value Added Tax Including Interest & Penalty (Refer Note 40 (A)(b)(i) above) is fully payable by the Client in the event of confirmation of demand.	40,480.18	40,480.18
ii) Goods and Service Tax (as per ruling of Delhi Authority of Advance Ruling, The MoHUA, Govt. of India is not exempt from payment of GST on sale of Commercial built-up space, as it does not relate to any function entrusted to a municipality under article 243w of the Constitution and the Company is also liable to pay GST on sale of Commercial built-up area which is recoverable from customer as per terms of sale.) (Refer Note 40(A)(b)(ii) above).	2,205.36	2,205.36

(C) Commitments

i) Capital commitment for acquisition of capital asset is NIL (P.Y. NIL).

(ii) The company in its Board Meeting dated 23.09.2019 has decided to close the subsidiary companies viz. NBCC Engineering & Consultancy Limited. The company has received approval of its administrative Ministry i.e. Ministry of Housing and Urban Affairs on 16.06.2020 for the proposed closure which is under process. The company will provide all required assistance and financial support to subsidiary company as may be necessary for their closure. The amount for the same is unascertanable as on date.

The company is a government company under the aegis of Ministry of Housing and Urban Affairs. 61.75% of the share holding in the company as at March 31, 2022 (March 31, 2021 61.75%) is held by President of India.

The Company is having six fully owned subsidiaries and One partly owned subsidiary over which government exercise direct/indirect control by holding more than 50% of the voting power.

In accordance with para 25 of Indian Accounting Standard (Ind As - 24) Related Party Disclosure, no disclosure is required for Subsidiary Companies/ Joint Venture Entities which can be treated as state controlled enterprises( i.e ownership by Central/ State Government, directly or Indirectly, is more than 50% of voting rights )

The company generally enter into transactions with the subsidiary companies at arm''s length price in the normal course of business which includes the purchase and sale of properties, rendering of services and secondment of employees.

* The provisions of section 203 of The Companies Act, 2013 regarding appointment of KMP are not applicable to the companies.

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

(ii) Practical expedients applied

In applying Ind-AS 116 for the first time, the Company has used the following practical expedients permitted by the standard:

a) The use of a single discount rate to a portfolio of leases with reasonably similar characteristics.

b) Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term on the date of initial application.

c) The use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease and excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.

d) Applied the practical expedient to grandfather the assessment of transactions lease. Accordingly, Ind AS 116 is applied only to contracts that were previously identified as leases under Ind AS 17.

The Company has total commitment for short-term leases of '' 35.86 Lakh as at 31st March, 2022 ('' 5.97 Lakh as at 31st March, 2021)

Note -44

Disclosure as per Indian Accounting Standard (Ind AS) 108 "Operating Segments"

a) Operating Segments

Management currently identifies the Company''s three service lines as its Operating Segments as follows:- Project Management Consultancy ( PMC )

- Real Estate

- Engineering, Procurement and Construction ( EPC )

b) Segment Revenue & Expenses

Revenue & Expenses directly attributable to the segment is considered as "Segment Revenue & Segment Expenses"

c) Segment Assets & Liabilities

Segment Assets & Liabilities include the respective directly identifiable to each of the segments.

These Operating Segments are monitored by the Company''s chief operating decision maker and strategic decisions are made on the basis of segment Operating Results. Segment performance is evaluated based on the profit of each segment.

The carrying amount of Trade Receivables, Trade Payables and Cash & Cash Equivalent are considered to be the same as their Fair Values due to their short term nature.

The carrying amount of the Financial Assets and Liabilities carried Amortised Cost is considered a reasonable approximation of Fair Value.

The above table excludes Investment in Subsidiaries, Associate and Joint Venture, which are measured at cost in accordance with Ind AS 27, ''Separate Financial Statements''.

(i) Fair Value Hierarchy

Financial Assets and Financial Liabilities measured at fair value in the Balance Sheet are grouped into three Levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement as follows:

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

• Level 2: The fair value of Financial Instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates.

• Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

(iii) Valuation Technique used to determine Fair Value

Specific valuation techniques used to value Financial Instruments includes the use of Net Asset Value for Mutual Funds on the basis of the statement received from investee party.

Note - 46

Financial Risk Managment

The Company''s activities expose it to credit risk, liquidity risk and market risk. The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the Financial Statements.

(A) Credit Risk

The Company is exposed to credit risk from its Operating Activities (Primarily Trade Receivables) and from its Financing Activities including Deposits with Banks, Mutual Funds and Financial Institutions and other Financial Instruments.

(i) Credit Risk Management

The Company assesses and manages credit risk of Financial Assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of Financial Assets.

A: Low Credit Risk on Fincial Reporting date

In respect of Trade Receivables, the company recognises a provision for lifetime Expected Credit Loss.

Based on business environment in which the Company operates, a default on a Financial Asset is considered when the counter party fails to make payments within the agreed time period as per contract or decided later based upon the factual circumstances on case to case basis. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

During the current financial year, the company has identified certain debtors where the management has assessed substantial increase in credit risk. Following the prudent accounting practices and as per the amended accounting policy, the company has made a provision of '' 22,820.33 lakh upto March 31, 2022 (Upto March 31, 2021''17,861.76 lakh) on the net exposure of the trade receivables and corresponding trade payables where the company has legally enforceable right to adjust the same.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognised in Statement of Profit and Loss.

Concentration of Trade Receivables

The Company''s major exposure to credit risk for trade receivables are from various Government Departments/ Ministries

Credit Risk Exposure

Provision for Expected Credit Losses

The Company provides for expected credit loss based on 12 month and lifetime expected credit loss basis for following Financial Assets -A: Low Credit Risk

(B) Liquidity Risk

The Company''s principal sources of liquidity are Cash and Cash Equivalents which are generated from Cash Flow from Operations. The Company has no fund based outstanding Bank Borrowings. The Company considers that the Cash Flows from Operations are sufficient to meet its current liquidity requirements.

Maturities of Financial Liabilities

The tables below analyse the Company''s Financial Liabilities into relevant maturity groupings based on their contractual maturities. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is insignificant.

C) Market Risk

The Company''s exposure towards Price Risk arises from Investments held and classified in the Balance Sheet either as Fair Value through Other Comprehensive Income or at Fair Value through Profit & Loss. To manage the price risk arising from investments in equity securities, the Company diversifies its portfolio of assets.

The Company''s exposure to equity securities price risk arises from Investments held by the Company and classified in the Balance Sheet as Fair Value through Profit & Loss.

Note -47

Capital Management

The Company''s objectives when managing capital are to:

(i) Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

(ii) Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt (net debt comprises of borrowings less cash and cash equivalents). Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio.

The Company has no outstanding fund based debt as at the end of the respective years. Accordingly company has NIL Capital gearing ratio as at March 31, 2022 and March 31, 2021.

Note - 48

Revenue from Contracts with Customers :

Significant changes in contract Assets and Liabilities:

a) Contract Liabilities - Deferred Income (Revenue Received in Advance):

Invoicing in excess of revenue recognised is classified as revenue received in advance. Any amount previously recognised as revenue received in advance is recognised to revenue on satisfaction of the performance obligation over the construction period.

c) Contract Assets - Unbilled Revenue:

Invoicing to the clients is based on milestones as defined in the contract. This would result in the timing of revenue recognition being different from the timing of billing the customers. Revenue in excess of billing is recorded as unbilled revenue and is classified as a contract asset. Any amount previously recognised as a contract asset is reclassified to trade receivables on satisfaction of the condition attached i.e. future service which is necessary to achieve the billing milestone.

g) Performance obligations and remaining performance obligations :

Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the remaining performance obligation related disclosures for contracts as the revenue recognized corresponds directly with the value to the customer of the entity''s performance completed to date. Remaining performance obligation estimates are subject to change and are affected by several factors, such as changes in the scope of contracts, periodic revalidations, terminations, adjustment for revenue that has not materialized as at the reporting date.

Note -52

Inventory Disclosures LAND BANK

The company is carrying inventory of 17 Lands of '' 68516.31 Lakh for over 7 years. These lands are purchased for Real Estate Development. However, due to slowdown in real estate market, the company has deferred its plans to develop these lands. Further following lands are not registered in the name of the company:

(i) Land at Nava Raipur, Chattisgarh

The company has purchased a Group Housing Plot admeasuring 30,436 Sqm. in Naya Raipur from Naya Raipur Development Authority (NRDA) on lease for a total sum of '' 2276.93 Lakh in the year 2014. As per the terms of allotment, the lease deed is to be executed on completion of 50% construction as per the approved plan. However, the construction on the said land was kept in abeyance upto previous financial year. During the year, the company has decided for development of land. Accordingly, the Building permission fees and security deposit for RWH has been deposited to the Authority to get the approval. The preliminary fire NOC has also been obtained. Further market survey to explore the market feasibility and demand at the location is being carried out for development of the plot. As such, the execution of conveyance deed is pending.

(ii) Land at Faridabad

The company purchased a freehold plot admeasuring 16,753.99 Sqm. for group housing in open auction from Municipal Corporation of Faridabad (MCF) for a total sum of '' 13178.41 Lakh (Including provision of Stamp Duty) in the year 2013. The company has paid full consideration and has taken the possession of land. The company has been pursuing MCF for execution of lease deed but till date the same has not been executed for want of environment clearance. The company has applied for environment clearance for which obtaining NOC from Forest Department is necessary. Accordingly, the company applied for NOC from Forest department, however the same is denied on the ground that "the criteria for clarification of deemed forests is pending before the Hon''ble Supreme Court and Govt. of Haryana has not identified deemed forests". Whereas in Clause No. 24 of letter of allotment of land, the MCF stated that, "Deputy Conservator of Forests, Faridabad vide her office memo no. 569 dated August 28, 2012 has intimated that the area under Group Housing plots is notified under general section-4 of Punjab Land Preservation Act, 1900". Thus, denial of NOC by Forest Department is contrary to what is contained in Letter of Allotment. NBCC has taken up with Government of Haryana to either issue necessary instructions to Forest Department for issuing of NOC as required for Environmental Clearance or refund the amount paid with interest to NBCC. The company is exploring the possibility of early execution of lease deed from MCF or referring the matter to AMRCD for early resolution.

(iii) Land at Alwar

The company purchased a plot admeasuring 4197 Sq. Mtr. from Urban Improvement Trust (UIT), Alwar in the year 2013 for '' 983.64 Lakh. Even after several requests for handing over the possession and execution of lease deed, UIT failed to hand over the possession and execute the lease deed. UIT intimated that lease cannot be executed due to Civil Writ petition filed before Hon''ble High Court of Rajasthan in the matter of Giriraj Prasad Vs. State of Rajasthan and the Lease deed will be executed only after judgment in favour of the State Government. The company is exploring the possibility for early resolution of matter through AMRCD.

(iv) Land at Ghaziabad

The company purchased a land admeasuring 16225.05 Sq. Mtr. at Koyal Enclave from Ghaziabad Development Authority (GDA) in the year 2015. The company has incurred a total cost of '' 5503.13 Lakh (Including provision for stamp duty). The lease deed and the possession in respect of the above plot have not yet been executed. GDA has demanded a sum of '' 462.41 Lakh towards infrastructure Charges vide letter No. 2433 dated December 13, 2019. The said demand is not acceptable to the company and in view of the same, the company has requested GDA for cancellation of allotment & refund of entire amount with interest as per the terms of allotment etc. GDA has offered to refund the purchased amount after deduction of

the cancellation charges. The company has not accepted the offer of GDA and taken up the matter with higher authorities of Govt. of Uttar Pradesh.

WORK IN PROGRESS AND COMPLETED PROJECTS

(v) NBCC Plaza at Pushp Vihar

The company has undertaken a project for construction of "Additional Shopping cum Car Parking Blocks" in "NBCC Plaza" at Pushp Vihar, New Delhi and has paid a sum of '' 3021.78 Lakh to L&DO, MoHUA in the year 2010 as additional premium for availing additional ground coverage (FAR). However, later South Delhi Municipal Corporation [SDMC], vide its letter dated May 20, 2015, while approving the building plans subject to compliance of few conditions, demanded additional FAR charges amounting to '' 3,224.45 Lakh. The SDMC also stayed the construction till the time, said amount is paid to them. Since the company had already deposited the said amount with L&DO, it represented the matter to SDMC as well as L&DO, at different forums. During the year 2021-22 MoHUA has informed the company that SDMC may only recover charges other than additional FAR charges, if any. MoUHA also directed SDMC to release the Sanctioned Building Plan to NBCC at the earliest. However, the SDMC is still insisting on payment of additional FAR of '' 3,224.45 lakh to sanction building plan.

In addition to the above the company has incurred a sum of '' 1,718.84 lakh on construction of the project till March 31, 2022. The net realisable value (NRV) of the constructed block is '' 825.63 lakh. The company has already made a provision in the books for impairment in the value of assets amounting to '' 894.19 lakh.

(vi) Kochi, Kerala

The company has constructed Group Housing Real Estate project at Kochi, Kerala comprising of 3,20,216 Sq. ft. residential and 4,424 Sq. ft. commercial area. The company has incurred a consutruction cost amounting '' 8701.85 lakh thereon. The sale in the project is pending for want of environmental clearance (EC), which is under process and it is mandatory for registration under RERA registration.

(vii) Jakson Gate, Agartala

The company executed a real estate project at Jakson Gate, Agartala in the year 2010 under Joint Operations with Agartala Municipal Council (AMC). As the company was unable to sell the constructed area, the substantial portion of the constructed area has been let-out to various Government Organizations. Real Estate Marketing Division is exploring the possibilities to sell the same in consultation with JV partner. The company has incurred a sum of '' 916.96 lakh as on date.

(viii) Group Housing project in Alwar

The company has executed Group Housing project in Alwar with a total expenditure of '' 5766.21 Lakh. The substantial portion of the project was completed in the year 2018. The company initiated the sale of the project in the year 2014-15. No sale, however, could be effected. The company plans to re-start the sale in the project. The Net Realisable Value of the project has deteriorated and the company has made provision of '' 1005.81 lakh towards impairment in the cost of the work in progress.

(ix) Sukheas Lane, Kolkata

Sukheas Lane, Kolkata property is Joint Venture Property with Kolkata Metro Rail Corporation Limited (KMRCL) located in the city centre of Kolkata. The construction on the property is not completed from long time due to pendency of writ Petition no. 833/2014 before Hon''ble High court of Kolkata since the year 2014 challenging the aforesaid land acquisition by KMRCL. The said writ petition filed by M/s Archana Properties was disposed of on January 09, 2020 due to default of non-appearance of petitioners by the Hon''ble High Court of Calcutta. In this regard an IA bearing GA No 3/2021 have been filed by M/s Archana Properties in the matter in March 2021 as per website of Hon''ble High Court of Calcutta. However, the said IA has not been served nor has any notice been received by company as on date from the Hon''ble High Court of Calcutta. The company has incurred a sum of '' 549.59 lakh on this project which are lying since 2014.

(x) Sector - 37 D, Gurugram

(i) The company developed a residential real estate project at NBCC Green View, Sector - 37 D, Gurugram. The occupancy

certificate (OC) of the project was received in the year 2017-18. The complex is partially sold-out and the physical possession of flats, shops and EWS unit were also given to the allottees after receipt of the Occupancy Certificate of the project.

Company has sold 392 units (255 flats, 126 EWS and 11 shops) out of 942 units and received total amount of '' 21,012.80 lakh out of which ''15,957.58 lakh were recognised as revenue in the previous years and '' 4,048.57 lakh are still booked as advance from Allottees.

Subsequently, the buildings in the project exhibited structural cracks. Company received many complaints and representation from some of home buyers. Company appointed IIT Delhi to look into the matters. IIT Delhi vide its report dated October 06, 2021 inter-alia advised that the buildings must be vacated within two months in view of safety of the occupants and further advised to get the feasibility of repairs re-examined.

Thereafter a committee of experts from IIT Roorkee and CBRI Roorkee (Central Buildings Research Institute) was constituted for structural assessment of this project in furtherance to the report of IIT Delhi. This expert committee opined that "No repair/restoration method seems economically viable and safe in the long term. It is recommended to demolish the structure".

Further a review panel of two retired SDG''s of CPWD was constituted. The crux of the report submitted by The Review Panel is as under:

"The review committee concured with the recommendation given by the expert committee of IIT Roorkee and CBRI Roorkee i.e. to dismantle the structure".

In view of the advice from the experts and considering safety of the residents, notices were issued to the occupants of NBCC Green View project and the buildings were evacuated completely with the help of the District Administration under Disaster Management Act. As on date, the premises of NBCC Green View Apartments, Sector-37D, Gurugram stands completely vacated.

The company has taken valuation of the projects from the IBBI registered valuation agencies. As per valuation report, the total net realizable value (NRV) of the project is '' 27,040.00 lakh (on conservative basis). The proportionate NRV pertaining to the unsold portion of the project work out to '' 20,151.64 lakh. The carrying value of unsold inventory of above project was '' 30,131.46 lakh. Accordingly, the company has writte-down of inventory by '' 9,979.83 lakh in the accounts and disclosure in this regard has been made under Note No. 8.

(ii) As on date there are 12 ongoing litigations before various forums out of which 2 cases are filed by the contractor M/s Rama Civil India Construction Pvt. Ltd. and 10 cases are filed by the Home buyers. The required disclosure with regards to the claims of the contractor are disclosed in the contingent liabilities Note No. 40(A)(a).

The cases filed by the Home buyers are pending at various levels in the different courts/forums. The home buyers have claimed refund of the amount paid by them along with interest and other compensations.

The company is in the process of exploring various options that can be offered and negotiated under the ''settlement plan'' with the allotees. Further, the Board is also in process of appointing a Transaction Advisor to guide various other options in this regards.

The physical possibility, legal permissibility and financial feasibility, that may be intrinsic to the ''settlement plan'' is in the process of evaluation by the Board and are also subject matters of various court cases which are pending at various forums. Since, the costs and liabilities that may possibly be incurred under the ''settlement plan'' (as the same is yet to be approved by the Board / decided by courts) are not ascertainable as on the date, no provision for the same is recognized in the financial statements, in compliance of the applicable Indian Accounting Standards. However, the contingent liabilities in this regard, being un-ascertainable, has been disclosed in the Note No. 40 (A)(d).

Other Disclosures

(a) Additional Informations in pursuance to Schedule III Division II is disclosed as under:

(i) The company has not been declared a Wilful Defaulters by any bank or financial institution or consortium thereof in accordance with the guidelines on Wilful defaulters issued by the RBI.

(ii) There are no proceedings initiated or pending against the company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(iii) The company has not traded or invested in Crypto currency or virtual curreny during the reporting periods.

(iv) The company has neither advanced, loaned or invested fund nor received any fund to/from any person or entity for lending or investing or providing guarantee to/on behalf of the ultimate beneficiary during the reporting periods.

(v) During the Financial year, there is no charge or satisafaction of charge which is yet to be registered with ROC beyond the statutory period.

(vi) The Board of Directors of the Company on July 06, 2020 approved a scheme of merger in terms of Section 230-232 of the Companies Act, 2013 in respect of two wholly owned Subsidiaries with Holding Company i.e. Merger of NBCC Environment Engineering Limited (Transferor Company No. 1) and NBCC International Limited (Transferor Company No. 2) with NBCC (India) Limited (Transferee Company). The proposed Merger is under process. The effect of the scheme of arrangement shall be accounted for in the books of accounts of the company in accordance with the scheme and in accordance with the accounting standards as and when the scheme of arrangement approved by the competent authority.

(vii) The company does not have any transaction not recorded in the books of accounts that has been surrendered or not disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

(viii) Pursuant to Rule 2(2)(d) of the Companies (Restriction on number of Layers) Rules, 2017, the requirment of number of layers not applicable to the company.

(ix) The company has not taken any Fund based loan / limit from banks or financial institutions on the basis of security of current assets. Hence, the use of borrowing for specific purpose not applicable to the company.

(b) The major clients of the company are ministries, Government Departments, Government Authorities and Public Sector Undertakings. The balances of the clients in the nature of Trade Receivables, Loans and Advances, Earnest Money Deposit, Security Deposit and Deposits in the nature of trade receivables classified under current and non current assets; and also the trade payables are subject to confirmation, reconciliation and consequent adjustments. The management does not expect any significant impact upon such reconciliation.

(c) As per agreement between NBCC and IIT Kharagpur, company was executing contracts for construction & management of various construction works. Due to irregularities in measurement and consequential billing in one of the construction works of "B type facility accommodation" in the earlier financial years from 2015-16 to 2018-19, the company got technical audit conducted in financial year 2020-21 from internal technical audit division. Based on the findings of said audit, company formed a committee for accounting adjustments to be done. On the recommendation of committee, the necessary accounting adjustments have been made in the year ended on March 31, 2022. Due to said accounting adjustments, Revenue from Operation has reduced by '' 2,150.46 lakh, Work & Consultancy Expenses has reduced by '' 2,000.43 lakh and Profit before Tax has reduced by '' 150.03 lakh for the year ended on March 31, 2022. The management has referred the matter to vigilance department which is under investigation as on date.

(d) The spread of COVID - 19 pandemic has severely impacted businesses around the globe. In many countries, including India, there have been severe disruptions in regular business operations due to Lockdown. During the current financial year 2021-22 and Previous year, the country was in partially in lockdown and the company temporarily suspended its operations in all its offices, in compliance with the Lockdown advisory issued by Central / Respective State Government.

As a result of Lockdown, the volumes for the year and previous year have been partially impacted. The company''s management has made an initial assessment of likely adverse impact on revenues and believes that the impact on revenues is likely to be short term in nature. The company has also made a detailed assessment of its liquidity position for the next year and also the recoverability & carrying value of its assets comprising property plant and equipment, right to use assets, investments, inventories and trade receivables. Based on current indicators of future economic conditions, the company expects to recover the carrying amount of these assets. The situation is changing rapidly and is giving rise to inherent uncertainties around the extent and timing of the potential future impact of COVID - 19 which may be different from that estimated at the time of approval of these financial statements. The company continues to closely monitor any material changes arising out of future economic conditions and impact on its business. The management does not see any risk in the ability of the company to continue as a going concern and meeting its liabilities as and when due.

Note -54

Events After Balance Sheet Date

Proposed Dividend '' 0.50 per share on face value of '' 1.00 per share (previous year '' 0.47 per share on face value of '' 1.00 per share)

Note -55

Regrouping / Reclassified

Previous year figures have been regrouped and/or reclassified, wherever considered, necessary to conform to those of the current year grouping and/or classification. Negative figures have been shown in brackets.

For and on behalf of the Board of Directors

---

Mar 31, 2021

* The company is entitled to transfer the shares held in HSCL only to an affiliate of the company upto an extent of 25% subject to the approval of Central Government. However in case the affiliate ceased to be an affiliate of the company by any reasons, the shares so held by the affiliate shall be transferred back to the company. Notwithstanding anything contained in the transfer agreement, the company shall continue to have the beneficial ownership of the shares and shall be bound by all the obligation of transfer as a principal obligator.

** In case of HSCC (INDIA) Ltd the company is not entitled directly or indirectly to sell or transfer, or create any encumbrance or transfer the legal or beneficial ownership of the shares, to any person without prior approval of Goverment of India for a period of three years from acquisition date i.e. December 26, 2018.

# The company in its Board Meeting dated August 11, 2018 has decided to close the subsidiary companies. The company has received approval of its administrative Ministry i.e. Ministry of Housing and Urban Affairs and DIPAM on March 27, 2019 and May 09, 2019 respectively for the proposed closure by way of merger. Accordingly the Company filed a joint application of Scheme of Merger with the Ministry of Corporate Affairs on December 24, 2020 which is under process.

# The Company, in its Board Meeting dated September 23, 2019, has decided to close the Subsidiary Company NBCC Engineering & Consultancy Limited. The approval of its administrative Ministry i.e. Ministry of Housing and Urban Affairs was received on June 16, 2020 for the proposed closure. The Board of Directors of the Subsidiary Company passed a special resolution for the voluntary winding-up and appointment of liquidator at Extraordinary General Meeting of the Subsidiary Company held on February 19, 2021.

## The Company, in its Board Meeting dated July 15, 2019, decided to close the Subsidiary Company NBCC GULF L.L.C. The approval of its administrative Ministry i.e. Ministry of Housing and Urban Affairs was received on June 16, 2020 for the proposed closure. The partners of NBCC Gulf LLC, in its meeting dated July 02, 2020, unanimously resolved to liquidate the company and approved the appointment of liquidator. The liquidator, on September 1, 2020, filed necessary documents w.r.t Liquidation with the Registrar of Companies in Sultanate of Oman. The notification of the liquidation was published in official gazette on September 13, 2020. The partners of the company, in its meeting dated March 29, 2021, approved the final report of the liquidator and the final form of the liquidation work. The partners decided to register the partners resolution and to complete the liquidation procedure by publishing in the official gazette and thus to cancel the certificate of registration of the Subsidiary Company to end its legal entity status. The certificate of registration of the company has been cancelled on June 20, 2021 by Sultanate of Oman.

* NAV per unit is '' NIL (P.Y. '' 2288.3938)

The Company has only one class of Equity Shares having a par value of '' 1 per share. Each shareholders is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuring Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Note -17 D

During the year 2016-17, 300000000 Equity Shares of '' 2/- each were issued as fully paid Bonus Shares with rights pari passu with existing Equity Shares.

Note -17 E

Company has split face value of equity share from '' 10/- each to '' 2/- per share as approved by the shareholders of the Company through postal ballot on June 02, 2016

Company has split face value of equity share from '' 2/- each to '' 1/- per share as approved by the shareholders of the Company through postal ballot on April 05, 2018.

Note -17 F

Company has transferred 4804 (P.Y. 1361) & NIL (P.Y. 1) number of shares in NSDL and CSDL respectivly held by investors pursuant to section 124 (6) of The Companies Act, 2013 and the rules notified thereunder whose dividend is unclaimed/unpaid for seven years to a demat account of the Investor Education and Protection Fund (IEPF) Authority on November 12, 2020.

Gratuity

The Company has defined benefit gratuity plan. Every employee who has rendered continuous service of five years or more is entitled to get gratuity on superannuation, resignation, termination, disablement or on death in accordance with Gratuity Act 1972. In the year 2017-18, consequent upon the amendment in the Gratuity Act 1872, the maximum limit of Gratuity to be paid to any employee enhanced from '' 10.00 Lakhs to '' 20.00 Lakhs The scheme is funded by the Company and is managed by a separate trust formed in the year 2007-08. The liability for the same is recognised on the basis of actuarial valuation and accordingly transferred to Gratuity Trust. The provision for the year 2020-21 is '' 483.34 Lakhs {Previous Year '' 457.95 Lakhs}. The gains/losses on the remeasurement of the assumptions on the Gratuity plan have been recognised in Other Comprehensive Income (OCI).

Earned Leave

The Company has other long term benefit plan for Earned Leave Encashment. Provision for Encashment of Earned Leave equivalent to maximum of 300 days (basic pay plus dearness allowance) is provided at the year end and charged to Statement of Profit & Loss. The liability for the year 2020-21 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Earned Leave Encashment as on March 31, 2021 is '' 3878.59 Lakhs {Previous Year '' 3360.27 Lakhs}.

Sick Leave

The Company has a other long term benefit plan for Sick Leave Encashment. The encashment of half pay leave on superannuation will be allowed in addition to encashment of earned leave subject to overall limit of 300 days. The cash equivalent payable for Sick leave would be equal to leave salary as admissible for half basic pay plus dearness allowance and to make up the shortfall in earned leave. No commutation of Sick leave shall be allowed for this purpose. The liability for the year 2020-21 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Sick Leave Encashment as on March 31, 2021 is '' 1271.55 lakhs {previous year '' 1556.70 Lakhs}.

Travelling Allowance on Superannuation

The cumulative liability for Travelling Allowance to be paid to the employees on superannuation (exit) as on March 31, 2021 is '' 41.96 Lakhs {previous year '' 45.68 Lakhs} based on actuarial valuation.The gains/losses on the remeasurement of the assumptions on the plan have been recognised in Other Comprehensive Income (OCI).

Post Retirement Medical Benefits (PRMB)

The Company is having a defined benefit plan for Post Retirement Medical Benefits payable to the employees and the retirees of the company. The liability for the year 2020-21 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Post Retirement Medical Benefits as on March 31, 2021 is '' 6707.41 lakhs {Previous Year '' 5811.58 Lakhs}. The gains/losses on the remeasurement of the assumptions on the plan have been recognised in Other Comprehensive Income (OCI).

Pension

The company has implemented pension scheme through NBCC Employees Defined Contribution Superannuation Pension trust under IDA pattern for those employees who have completed 15 years of service in the CPSE and on the regular rolls of the company as on

(i) Sensitivities due to Mortality & withdrawls are not material and hence impact of change due to these not calculated.

(ii) Sensitivities as to rate of increase of pensions in payment, rate of increase of pensions before retirement & life expectancy are not applicable.

(iii) Changes in Defined Benefit Obligation due to 0.5% Increase/Decrease in Mortality Rate, if all other assumptions remain constant is negligible.

(iv) Sensitivities as to rate of inflation, rate of increase of pensions in payment, rate of increase of pensions before retirement & life expectancy are not applicable being a lump sum benefit on retirement.

The company is a government company under the aegis of Ministry of Housing and Urban Affairs. 61.75% of the share holding in the company as at March 31, 2021 is held by President of India.

The Company is having six fully owned subsidiary and two partly owned subsidiary over which government exercise direct/ indirect control by holding more than 50% of the voting power.

In accordance with para 25 of Indian Accounting Standard (Ind As - 24) Related Party Disclosure, no disclosure is required for Subsidiary Companies/ Joint Venture Entities which can be treated as state controlled enterprises( i.e ownership by Central/ State Government, directly or Indirectly, is more than 50% of voting rights )

The company generally enter into transactions with the subsidiary companies at arm''s length price in the normal course of business which includes the purchase and sale of properties, rendering of services and secondment of employees.

* The provisions of section 203 of The Companies Act, 2013 regarding appointment of KMP are not applicable to the companies.

The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due

(ii) Practical expedients applied

In applying Ind-AS 116 for the first time, the Company has used the following practical expedients permitted by the standard:

a) The use of a single discount rate to a portfolio of leases with reasonably similar characteristics.

b) Applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term on the date of initial application.

c) The use of hindsight in determining the lease term where the contract contains options to extend or terminate the lease and excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application.

d) Applied the practical expedient to grandfather the assessment of transactions lease. Accordingly, Ind AS 116 is applied only to contracts that were previously identified as leases under Ind AS 17.

The Company has total commitment for short-term leases of '' 5.97 Lakhs as at 31st March, 2021 ('' 1.25 as at 31st March, 2020)

Disclosure as per Indian Accounting Standard (Ind AS) 108 "Operating Segments"

a) Operating Segments

Management currently identifies the Company''s three service lines as its Operating Segments as follows:- Project Management Consultancy ( PMC )

- Real Estate

- Engineering, Procurement and Construction ( EPC )

b) Segment Revenue & Expenses

Revenue & Expenses directly attributable to the segment is considered as "Segment Revenue & Segment Expenses"

c) Segment Assets & Liabilities

Segment Assets & Liabilities include the respective directly identifiable to each of the segments.

These Operating Segments are monitored by the Company''s chief operating decision maker and strategic decisions are made on the basis of segment Operating Results. Segment performance is evaluated based on the profit of each segment.

The carrying amount of Trade Receivables, Trade Payables and Cash & Cash Equivalent are considered to be the same as their Fair Values due to their short term nature

The carrying amount of the Financial Assets and Liabilities carried Amortised Cost is considered a reasonable approximation of Fair Value.

The above table excludes Investment in Subsidiaries, Associate and Joint Venture, which are measured at cost in accordance with Ind AS 27, ''Separate Financial Statements''.

(i) Fair Value Hierarchy

Financial Assets and Financial Liabilities measured at fair value in the Balance Sheet are grouped into three Levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement as follows:

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

• Level 2: The fair value of Financial Instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates.

• Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

Financial Risk Managment

The Company''s activities expose it to credit risk, liquidity risk and market risk. The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the Financial Statements.

(A) Credit Risk

The Company is exposed to credit risk from its Operating Activities (Primarily Trade Receivables) and from its Financing Activities including Deposits with Banks, Mutual Funds and Financial Institutions and other Financial Instruments.

(i) Credit Risk Management

The Company assesses and manages credit risk of Financial Assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of Financial Assets.

Based on business environment in which the Company operates, a default on a Financial Asset is considered when the counter party fails to make payments within the agreed time period as per contract or decided later based upon the factual circumstances on case to case basis. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

During the current financial year, the company has identified certain debtors where the management has assessed substantial increase in credit risk. Following the prudent accounting practices, the company has made a provision of '' 17861.76 Lakhs upto March 31, 2021 (Upto March 31, 2020 '' 1859.16) on the net exposure of the trade receivables and corresponding trade payables where the company has legally enforceable right to adjust the same.

g) Performance obligations and remaining performance obligations :

Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the remaining performance obligation related disclosures for contracts as the revenue recognized corresponds directly with the value to the customer of the entity''s performance completed to date. Remaining performance obligation estimates are subject to change and are affected by several factors, such as changes in the scope of contracts, periodic revalidations, terminations, adjustment for revenue that has not materialized as at the reporting date.

Note -47

Inventory Disclosures LAND BANK

The company is carrying inventory of 17 Lands of '' 67216.56 Lakhs for over 6 years. These lands are purchased for Real Estate Development. However, due to slowdown in real estate market, the company has deferred the plans to develop these lands. Further following lands are not registered in the name of the company:

(i) Land at Naya Raipur, Chattisgarh

The company has purchased a Group Housing Plot admeasuring 30,436 Sqm. in Naya Raipur from Naya Raipur Development Authority (NRDA) on lease for a total sum of '' 2247.09 Lakhs in the year 2014. As per the terms of allotment, the lease deed is to be executed on completion of 50% construction as per the approved plan. However, in view of the current market scenario, the company has kept in abeyance the construction on the said land. As such, the execution of conveyance deed is pending.

(ii) Land at Faridabad

The company purchased a freehold plot admeasuring 16,753.99 Sqm. for group housing in open auction from Municipal Corporation of Faridabad (MCF) for a total sum of '' 13178.41 Lakh in the year 2013. The company has paid full consideration and has taken the possession of land. The company has been pursuing MCF for execution of lease deed but till date the same has not yet been executed for want of environment clearance. The company has applied for environment clearance for which obtaining NOC from Forest Department is necessary. Accordingly, the company applied for NOC from Forest department, however the same is denied on the ground that "the criteria for clarification of deemed forests is pending before the Hon''ble Supreme Court and Govt. of Haryana has not identified deemed forests". Whereas in Clause No. 24 of letter of allotment of land, the MCF stated that, "Deputy Conservator of Forests, Faridabad vide her office memo no. 569 dated August 28, 2012 has intimated that the area under Group Housing plots is notified under general section-4 of Punjab Land Preservation Act, 1900". Thus, denial of NOC by Forest Department is contrary to what is contained in Letter of Allotment. NBCC has taken up with Government of Haryana to either issue necessary instructions to Forest Department for issuing of NOC as required for Environmental Clearance or refund the amount paid with interest to NBCC. The company is also exploring the possibility of early execution of lease deed from MCF or referring the matter to AMRCD for early resolution.

(iii) Land at Alwar

The company purchased a plot admeasuring 4197 Sq. Mtr. from Urban Improvement Trust (UIT), Alwar in the year 2013 for '' 974.03 Lakh. Even after several requests for handing over the possession and execution of lease deed, UIT failed to hand over the possession and execute the lease deed. UIT intimated that lease cannot be executed due to Civil Writ petition filed before Hon''ble High Court of Rajasthan in the matter of Giriraj Prasad Vs. State of Rajasthan and the Lease deed will be executed only after judgment in favour of the State Government. The company is exploring the possibility for early resolution of matter through AMRCD.

(iv) Land at Ghaziabad

The company purchased a land admeasuring 16225.05 Sq. Mtr. at Koyal Enclave from Ghaziabad Development Authority (GDA) in the year 2015. The company has incurred a total cost of '' 5495.13 Lakh. The lease deed and the possession in respect of the above plot has not yet been executed. GDA has demanded a sum of '' 462.41 Lakh towards infrastructure Charges vide letter No. 2433 dated December 13, 2019. The said demand is not acceptable to the company and in view of the same, the company has requested Ghaziabad Development Authority for cancellation of allotment & refund of entire amount with interest as per the terms of allotment etc.

WORK IN PROGRESS AND COMPLETED PROJECTS

(v) NBCC Plaza at PushpVihar

"The company has undertaken a project for construction of "Additional Shopping cum Car Parking Blocks" in "NBCC Plaza" at PushpVihar, New Delhi and has paid a sum of '' 3021 Lakh to L&DO, MoHUA in the year 2010 as additional premium for availing additional ground coverage (FAR). However, later South Delhi Municipal Corporation [SDMC], vide its letter dated May 20, 2015, while approving the building plans subject to compliance of few conditions, demanded additional FAR charges amounting to '' 3224 Lakh. The SDMC also stayed the construction till the time, said amount is paid to them. Since the company had already deposited the said amount with L&DO, it represented the matter to SDMC as well as L&DO, at different forums. During the year MoHUA has informed the company that SDMC may only recover charges other than additional FAR charges, if any. MoUHA also directed SDMC to release the Sanctioned Building Plan to NBCC at the earliest. In addition to the above the company has incurred a sum of '' 1718.84 lakhs on construction of the project till March 31, 2021. The net realisable value of the constructed block is '' 824.65 lakhs. The company has made a provision in the books for impairment in the value of assets amounting to '' 894.19 lakhs."

(vi) Kochi, Kerala

The company has constructed Group Housing Real Estate project at Kochi, Kerala containing 3,20,216 Sq. ft. residential and 3,979 Sq. ft. commercial area. The company has incurred an amount of '' 8699.87 lakh thereon. The sale in the project is pending for want of environmental clearance (EC), which is also mandatory for registration under RERA registration.

(vii) Jakson Gate, Agartala

The company executed a real estate project at Jakson Gate, Agartala in the year 2010 under Joint Operations with Agartala Municipal Council (AMC). As the company was unable to sell the constructed area, the substantial portion of the constructed area has been let-out to various Government Organizations. Real Estate Marketing Division is exploring the possibilities to sell the same in consultation with JV partner. The company has incurred a sum of '' 916.96 lakh as on date.

(viii) Group Housing project in Alwar

The company has executed Group Housing project in Alwar with a total expenditure of '' 5775.82 Lakh. The substantial portion of the project was completed in the year 2018. The company initiated the sale of the project in the year 2014 - 15. No sale, however, could be effected. The company plans to re-start the sale in the project, for which it has to incur additional cost to refurbish the constructed area. The value of the project has deteriorated and the company has made provision of '' 1172.23 lakhs towards impairment in the cost of the work in progress.

(ix) Sukheas Lane, Kolkata

Sukheas Lane, Kolkata property is Joint Venture Property with Kolkata Metro Rail Corporation Limited (KMRCL) located in the city centre of Kolkata. The property is not completed from long time due to pendency of Writ Petition no. 833/2014 before Hon''ble High court of Kolkata since the year 2014 challenging the aforesaid land acquisition by KMRCL. The company has incurred a sum of '' 549.59 lakhs on this project which are lying since 2014.

(x) Sector - 37 D, Gurugram

"The company developed a residential real estate project comprising residential and EWS units at NBCC Green View, Sector - 37 D, Gurugram. The project was completed and the occupancy certificate was received in the year 2017 - 18. The complex is partially sold and occupied by the residents. Owing to the observations by NBCC officials and several representations from homebuyers regarding various structural and other defects, the company appointed IIT Delhi (IITD) to examine the matter and suggest methodology to retrofit the structures for mitigating the noticed defects in totality. The work as per the methodology given by IITD is being done on site by the main civil contractor at his cost. The company is also considering other value additions in structural designs as suggested by IITD for enhancing marketing of the balance inventory. The cost, if any, in this regard shall be borne by the company. The matter is under investigation by vigilance department for any irregularity, internal or otherwise. Necessary accounting adjustments, if warranted, shall be made after conclusion of vigilance procedures."

Other Disclosures

(i) Reference to the Corporate Insolvency Resolution Process (CIRP) of Jaypee Infratech Limited (JIL), the company (NBCC) had submitted its resolution plan on December 3, 2019 along with an addendum dated December 09, 2019 which was approved by Committee of Creditors (CoC) by a majority (97.36%) of voting share pursuant to the e-voting initiated on December 10, 2019 and ended on December 16, 2019.

The Hon''ble Supreme Court vide its order dated March 24, 2021 passed in Civil Appeal No. 3395 of 2020, Jaypee Kensington Boulevard Apartments Welfare Association & Ors. vs NBCC (India) Ltd. & Ors. has inter alia directed IRP to complete the CIRP within the extended time of 45 days from the date of judgments i.e. March 24, 2021. The Hon''ble Supreme Court allowed IRP to invite modified/fresh resolution plans from the company and Suraksha Realty by extending time to submit the same within 2 weeks i.e. up to April 07, 2021.

As per the Hon''ble Supreme Court Order dated March 24, 2021, IRP invited the company vide email dated March 24, 2021 for submission of the revised resolution plan.

The company submitted its final resolution plan on June 04, 2021 supplemented by addendums dated June 07, 2021 & June 09, 2021 which was accepted by Committee of Creditors (COC) of JIL and put to vote for COC through e-voting initiated on June 14, 2021 and ended on June 23, 2021. Since the company lost bidding, the resolution plan submitted by the company has not been approved by COC.

The company has incurred an amount of ''148.92 Lakhs (P.Y. '' 114.00 Lakhs ) in financial year 2020-21 on account of legal and professional fee after initiation of the bidding process of JIL and the same have been charged to revenue during the year in which the expenditure has been incurred."

(ii) The company is executing contracts for construction of various buildings of IIT Kharagpur. The trade receivables as on March 31, 2021 include '' 1582.04 Lakh on account of outstanding for above project. Due to irregularities in the project, the matter is pending with vigilance department. Other corresponding accounts as on the date of balance sheet include trade payables of '' 1714.66 Lakh, Security deposit from contractors of '' 365.67 Lakh and the provision for expected credit loss [ECL] of '' 288.08 Lakh. Necessary accounting adjustments, if any, shall be made after conclusion of vigilance procedures and remeasurement.

(iii) The major clients of the company are ministries, Government Departments, Government Authorities and Public Sector Undertakings. The balances of the clients in the nature of Trade Receivables, Loans and Advances, Earnest Money Deposit, Security Deposit and Deposits in the nature of trade receivables classified under current and non current assets; and also the trade payables are subject to confirmation, reconciliation and consequent adjustments. The management does not expect any significant impact upon such reconciliation.

(iv) The Company, during the year has opened a foreign branch at Republic of Maldives on March, 31, 2021 and there is no financial transaction at the branch.

(v) The spread of COVID - 19 pandemic has severely impacted businesses around the globe. In many countries, including India, there have been severe disruptions in regular business operations due to Lockdown. During the financial year 2020-21, the country was in partially in lockdown and the company temporarily suspended its operations in all its offices, in compliance with the Lockdown advisory issued by Central / Respective State Government.

As a result of Lockdown, the volumes for the year have been partially impacted. The company''s management has made an initial assessment of likely adverse impact on revenues and believes that the impact on revenues is likely to be short term in nature. The company has also made a detailed assessment of its liquidity position for the next year and also the recoverability & carrying value of its assets comprising property plant and equipment, right to use assets, investments, inventories and trade receivables. Based on current indicators of future economic conditions, the company expects to recover the carrying amount of these assets. The situation is changing rapidly and is giving rise to inherent uncertainties around the extent and timing of the potential future impact of COVID - 19 which may be different from that estimated at the time of approval of these financial results. The company continues to closely monitor any material changes arising out of future economic conditions and impact

on its business. The management does not see any risk in the ability of the company to continue as a going concern and meeting its liabilities as and when due"

Note -49

Events After Balance Sheet Date

Proposed Dividend '' 0.47 per share on face value of '' 1.00 per share (previous year '' 0.135 per share on face value of '' 1 per share)

Note -50

Regrouping / Reclassified

Previous year figures have been regrouped and/or reclassified, wherever considered, necessary to conform to those of the current year grouping and/or classification. Negative figures have been shown in brackets.

---

Mar 31, 2018

* Disclosure in pursuant to Guidance Note issued by the Institute of Chartered Accountants of India on Accounting for Real Estate Transactions (for entities to whom Ind AS is applicable) & Indian Accounting Standard (Ind AS) - 11 (Refer Note 22B & 22C respectively)

** Includes outstanding advance of Rs,1300.00 Lakhs (Previous Year Rs,1300.00 Lakhs) recoverable from Indian Drugs and Pharmaceuticals Limited (IDPL), a public sector undertaking (PSU). M/s IDPL was declared sick by Board for Industrial & Financial Reconstruction (BIFR). The company''s claim was admitted by IDPL during BIFR proceedings. However, BIFR has been wound up by Government of India via notification dated November 25, 2016. The company has filed its application before NCLT Chandigarh for recovery of the Claim. Since the amount had earlier been admitted by IDPL during BIFR proceedings, the company considers advance of Rs,1300.00 Lakhs recoverable from IDPL as good for recovery and no provision is required in respect of such advance.

The Company has only one class of Equity Shares having a par value of Rs, 2 per share. Each shareholders is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuring Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Note -1

During the year 2011-12, 30000000 Equity Shares of Rs, 10/- each were issued as fully paid Bonus Shares with rights pari passu with existing Equity Shares.

During the year 2016-17, 300000000 Equity Shares of Rs, 2/- each were issued as fully paid Bonus Shares with rights pari passu with existing Equity Shares.

Note -2

Company has split face value of equity share from Rs, 10/- each to Rs, 2/- per share as approved by the shareholders of the Company through postal ballot on June 02, 2016

Note -3

Reserves and Surplus

Nature and purpose of Other Reserves

Retained Earnings

Retained Earning represent the undistributed profits of the Company.

General Reserve

General Reserve represents the statutory reserve, this is in accordance with Corporate law wherein a portion of profit is apportioned to General Reserve. Under Companies Act, 1956 it was mandatory to transfer amount before a company can declared dividend, however under Companies Act, 2013 transfer of any amount to General Reserve is at the discretion of the Company.

Other Comprehensive Income

Other Comprehensive Income represents balance arising on account of Gain/(Loss) booked on Re-measurement of Defined Benefit Plans.

Note - 4

The Company has adopted Indian Accounting Standard (Ind AS) - 19 on Employee Benefit as under :

Gratuity

The Company has a defined benefit gratuity plan. Every employee who has rendered continuous service of five years or more is entitled to get gratuity on superannuation, resignation, termination, disablement or on death in accordance with Gratuity Act 1972. In the year 2017-18, consequent upon the amendment in the Gratuity Act 1872, the maximum limit of Gratuity to be paid to any employee has been enhanced from Rs,10.00 Lakhs to Rs,20.00 Lakhs The scheme is funded by the Company and is managed by a separate trust formed during the financial year 2007-08. The liability for the same is recognized on the basis of actuarial valuation and accordingly transferred to Gratuity Trust. The provision for the year 2017-18 is Rs,4146.82 Lakhs {Previous Year Rs,436.36 Lakhs}. The gains/losses on the remeasurement of the assumptions on the Gratuity plan have been recognized in Other Comprehensive Income (OCI).

Earned Leave

The Company has a other long term benefit plan for Earned Leave Encashment. Provision for Encashment of Earned Leave equivalent to maximum of 300 days (basic pay plus dearness allowance) is provided at the year end and charged to Statement of Profit & Loss. The liability for the year 2017-18 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Earned Leave Encashment as on March 31, 2018 is Rs,2982.55 Lakhs {Previous Year Rs,3590.19 Lakhs}.

Sick Leave

The Company has a other long term benefit plan for Sick Leave Encashment. The encashment of half pay leave on superannuation will be allowed in addition to encashment of earned leave subject to overall limit of 300 days. The cash equivalent payable for Sick leave would be equal to leave salary as admissible for half pay plus DA and to make up the shortfall in earned leave. No commutation of Sick leave shall be allowed for this purpose. The liability for the year 2017-18 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Sick Leave Encashment as on March 31, 2018 is Rs,1240.06 lakhs {previous year Rs,1085.23 Lakhs}.

Travelling Allowance on Superannuation

The cumulative liability for Travelling Allowance to be paid to the employees on superannuation (exit) as on March 31, 2018 is Rs,47.21 lakhs {previous year Rs,45.75 Lakhs} based on actuarial valuation.

Post Retirement Medical Benefits

The Company is having a defined benefit plan for Post Retirement Medical Benefits payable to the employees and the retirees of the company. The liability for the year 2017-18 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Post Retirement Medical Benefits as on March 31, 2018 is Rs,3834.06 lakhs {Previous Year Rs,2370.43 Lakhs}.

Pension

The company has implemented pension scheme through NBCC Employees Defined Contribution Superannuation Pension trust under IDA pattern for those employees who have completed 15 years of service in the CPSE and on the regular rolls of the company as on November 26, 2008. The scheme is managed by a separate Trust formed in the year 2012-13 for the purpose. The contribution for pension amounting to Rs,922.18 Lakhs {Previous Year Rs,763.96 Lakhs} has been paid during the year 2017-18.

Long Service Awards

The Company has introduced a Scheme of Long Service Awards during the Financial Year 2016-17 covering all the Employees below Board Level who are on the regular roll as on September 3, 2016 onwards and completed (i) 30 Years of Service or more (ii) 35 Years of Service or more. The company has recognized a liability of Rs,147.36 Lakhs { Previous Year Rs,187.10 Lakhs } during the Financial Year 2017-18 on the basis of Actuarial Valuation

A) Proposed Dividend Rs,0.56 per share on face value of Rs,1.00 per share (previous year Rs,1.10 per share on face value of Rs,2 per share)

B) Proposed Dividend per share for the year is after considering sub division of the equity shares of the company to face value of Rs,1.00 per share by shareholders of the company through postal ballot on April 5, 2018.

C) Proposed Dividend is subject to approval of Shareholders in ensuing general meeting of the company.

Note -5 Related party transactions

Subsidiaries Joint Ventures Key Managerial Personnel (KMP)

NBCC Services Ltd. NBCC - MHG Dr. Anoop Kumar Mittal (Chairman-cum-Managing Director)

NBCC Engineering & Consultancy Ltd. NBCC - AB Mr. S. K. Pal, Director (Finance) (Ceased to be Director w.e.f January

NBCC Environment Engineering Ltd. NBCC - R.K. Millen ^{30, 2018)}

NBCC International Ltd. Real Estate Development & ^Mr'' ^{Rajendra Chaudhari}, ^Director (^Commercial)

NBCC Gulf L L C Construction Corporation of Mr. Neelesh Kumar Shah, Director (Projects) w.e.f. February 13, 2018

Hindustan Steelworks Construction ^{Rajasthan Limited}

Ltd. J^{BCC International} (^PTY) Mrs. Deepti Gambhir (Company Secretary)

Disclosures in respect of transactions with identified related parties are given only for such period during which such relationships existed.

Disclosures in respect of Key Managerial Personnel remuneration are given in Note No. - 28A

In accordance with para 25 of Indian Accounting Standard (Ind As - 24) Related Party Disclosure, no disclosure is required for Subsidiary Companies/ Joint Venture Entities which can be treated as state controlled enterprises( i.e ownership by Central/ State Government, directly or Indirectly, is more than 50% of voting rights )

Note 6

Operating Leases - Lessee

The Company''s significant leasing arrangements are in respect of operating leases relating to its leased office premises. These lease arrangements which are cancelable, are generally renewable by mutual consent.

Disclosure as per Indian Accounting Standard (Ind AS) 108 "Operating Segments"

a) Operating Segments

Management currently identifies the Company''s three service lines as its Operating Segments as follows:- Project Management Consultancy ( PMC )

- Real Estate

- Engineering, Procurement and Construction ( EPC )

b) Segment Revenue & Expenses

Revenue & Expenses directly attributable to the segment is considered as "Segment Revenue" & "Segment Expenses"

c) Segment Assets & Liabilities

Segment Assets & Liabilities include the respective directly identifiable to each of the segments.

These Operating Segments are monitored by the Company''s chief operating decision maker and strategic decisions are made on the basis of segment Operating Results. Segment performance is evaluated based on the profit of each segment.

The following tables present Revenue and Profit Information and certain Assets and Liability information regarding the Company''s reportable segments for the years ended March 31, 2018 and March 31, 2017-

Geographical Information

The operations of the Company are mainly carried out within the country and therefore, geographical segments are not disclosed.

Information about major customers

During the year ended March 31, 2018 revenue of approximately 23.53% (previous year : 22.44%) are derived from a single external customer in the Project Management Consultancy Segment)

The carrying amount of Trade Receivables, Trade Payables and Cash & Cash Equivalent are considered to be the same as their Fair Values due to their short term nature

The carrying amount of the Financial Assets and Liabilities carried Amortized Cost is considered a reasonable approximation of Fair Value.

The above table excludes Investment in Subsidiaries, Associate and Joint Venture, which are measured at cost in accordance with Ind AS 27, ''Separate Financial Statements''.

(i) Fair Value Hierarchy

Financial Assets and Financial Liabilities measured at fair value in the Balance Sheet are grouped into three Levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:

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

- Level 2: The fair value of Financial Instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data rely as little as possible on entity specific estimates.

- Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

The following table shows the Levels within the hierarchy of Financial Assets and Liabilities measured at Fair Value on a recurring basis at March 31, 2018 and March 31, 2017:

(iii) Valuation Technique used to determine Fair Value

Specific valuation techniques used to value Financial Instruments includes the use of Net Asset Value for Mutual Funds on the basis of the statement received from investee party.

Financial Risk Management

The Company''s activities expose it to credit risk, liquidity risk and market risk. The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the Financial Statements.

(A) Credit Risk

The Company is exposed to credit risk from its Operating Activities ( Primarily Trade Receivables ) and from its Financing Activities including Deposits with Banks, Mutual Funds and Financial Institutions and other Financial Instruments.

(i) Credit Risk Management

The Company assesses and manages credit risk of Financial Assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of Financial Assets.

A: Low Credit Risk on financial reporting date B: Moderate Credit Risk C: High Credit Risk

In respect of Trade Receivables, the company recognises a provision for lifetime Expected Credit Loss.

Based on business environment in which the Company operates, a default on a Financial Asset is considered when the counter party fails to make payments within the agreed time period as per contract or decided later based upon the factual circumstances on case to case basis. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognized in Statement of Profit and Loss.

Concentration of Trade Receivables

The Company''s Major Exposure to Credit Risk for Trade Receivables are from various Government Departments/ Ministries

Credit Risk Exposure

Provision for Expected Credit Losses

The Company provides for Expected Credit Loss based on 12 month and lifetime Expected Credit Loss basis for following Financial Assets -

(B) Liquidity Risk

The Company''s principal sources of liquidity are Cash and Cash Equivalents which are generated from Cash Flow from Operations. The Company has no outstanding Bank Borrowings. The Company Consider that the Cash Flows from Operations are sufficient to meet its current liquidity requirements.

Maturities of Financial Liabilities

The tables below analyse the Company''s Financial Liabilities into relevant maturity groupings based on their contractual maturities. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is insignificant.

(C) Market Risk

The Company''s exposure towards Price Risk arises from Investments held and classified in the Balance Sheet either as Fair Value through Other Comprehensive Income or at Fair Value through Profit & Loss. To manage the price risk arising from investments in equity securities, the Company diversifies its portfolio of assets.

The Company''s exposure to equity securities price risk arises from Investments held by the Company and classified in the Balance Sheet as Fair Value through Profit & Loss.

Note -7

Capital Management

The Company''s objectives when managing capital are to:

- Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt (net debt comprises of borrowings less cash and cash equivalents). Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio.

The Company has no outstanding debt as at the end of the respective years. Accordingly company has NIL Capital gearing ratio as at March 31, 2018 and March 31, 2017.

Note -8

Events After Balance Sheet Date

A. Company has split face value of equity share to Rs, 1.00 per share as approved by the shareholders of the Company through postal ballot on April 05, 2018.

B. Proposed Dividend Rs, 0.56 per share on face value of Rs,1.00 per share (previous year Rs, 1.10 per share on face value of Rs,2 per share)

Note -9

Previous year figures have been regrouped and/or reclassified, wherever, necessary to conform to those of the current year grouping and/or classification. Negative figures have been shown in brackets.

---

Mar 31, 2017

Notes to accounts

1. NATURE OF PRINCIPAL ACTIVITIES

NBCC (India) Limited {referred to as “NBCC” or “the Company” or “Parent Company”) is a Government of India Nirvana Enterprise under the Ministry of Urban Development The Company operates into three major segments namely Project Management Consultancy, Real Estate and Engineering Procurement & Construction.

2. GENERAL INFORM ATION AND STATEMENT OF COMPLIANCE WITH IND AS

The Company is incorporated and domiciled in India with registered office at New Delhi. The Company is headquartered in New Delhi, India. The shares of the Company are listed on the National Stock Exchange and the Bombay Stock Exchange.

The Standalone Financial Statements of the Company have been prepared in accordance with the Companies (Indian Accounting Standards) Rules 2015 issued by Ministry of Corporate Affairs (‘MCA’). The Company has uniformly applied the Accounting Policies during the period presented. These are the Company’s First Financial Statements prepared in accordance with Ind AS (see note 45 for explanation of the transition to IND AS), Unless otherwise stated, all amounts are stated in Lakhs of Rupees).

The Standalone Financial Statements for the year ended SI March 2017 were authorized and approved for issue by the Board of Directors on 26¹â€ May, 2017.

Note 3

Investment Property

(i) Amounts recognised In Profit & Loss for Investment Properties:

(ii) Leasing Arrangements

Certain Investment Properties are leased to tenants under long-term operating leases with rentals payable monthly (Refer Mote 40). The Company Capitalized Rs.170.70 Lakhs from Inventory ( Real Estate Completed Projects) as investment property during the financial year 2016-17. Future minimum lease payments receivable under long-term operating leases of Investment Properties in the aggregate is Rs.31.36 Lakhs and for each of the following period.

(iii) Pair value

(iv) Description of Valuation Techniques used and key inputs to Valuation on Investment Properties:

Valuation Approach - The valuation of the investment Property was conducted based on Direct Sales Comparison Method. This approach estimates value of the properties by comparing recent sales/ listings of similar interests in commercial shops located in the surrounding area. By analysing sales/ listings adjustments can be made for size., length and other relevant factors when comparing such sales/ listings against the properties. This approach is commonly used to value standard properties when reliable sales/listings evidence is available.

Commercial property in same commercial complex was used for comparison and adjustments made for following factors i) Listing Discount, ii) Location, iii) Size, and iv) Economic Obsolescence.

(v) All resulting fair value estimates for Investment Properties are included in Ievel 2 f air Value

Note 4A

The Company has only one class of Equity Share having a par value of Rs.2 per share- Each shareholders is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuring Annual General Meeting, except in case of interim dividend. In the event of liquidation .the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Note -4B

During the year 2011-1Z, 30000000 Equity Shares of Rs. 10/- each were issued as fully paid Bonus Shares with rights pari passu with existing Equity Shares.

During the year 2016-17, 300000000 Equity Shares of Rs. 2/- each were issued as fully paid Bonus Shares with rights pari passu with existing Equity Shares.

Note-4C

Company has split face value of equity share from 7 10/- each to Rs.2/- per share as approved by the shareholders of the Company through postal ballot on June 02,2016

Note -4D

Reserves and Surplus

Nature and purpose of Other Reserves

Retained Earnings

Retained Earning represent the undistributed profits of the Company.

General Reserve

General Reserve represents the statutory reserve, this is in accordance with Corporate law wherein a portion of profit is apportioned to genera I reserve. Under Companies Act, 1956 it was mandatory to transfer amount before a company can declared dividend, however under Companies Act, 2013 transfer of any amount to General Reserve is at the discretion of the Company.

Other Comprehensive income

Other Comprehensive Income represents balance arising on account of Gain/Loss) booked on Re-measurement of Defined Benefit Plans.

Note 5

The Company has adopted Indian Accounting Standard (Ind AS)- 19 on Employee Benefit as under:

Gratuity

The Company has a defined benefit gratuity plan. Every employee who has rendered continuous service of five years or more is entitled to get gratuity on superannuation, resignation, termination, disablement or on death in accordance with Gratuity Act 1972. The scheme is funded by the Company and is managed by a separate trust formed during the financial year 2007-08. T he liability for the same is recognised on the basis of actuarial valuation and accordingly transferred to Gratuity Trust. The provision for the year 2016-17 is Rs. 436.36 Lakhs {Previous Year Rs. 411.30 Lakhs}.

Earned Leave

The Company has a other long term benefit plan for Earned Leave Encashment. Provision for Encashment of Earned Leave equivalent to maximum of 500 days (basic pay plus dearness allowance) is provided at the year end and charged to Statement of Profit & Loss. The liability for the year 2016-17 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Earned Leave Encashment as on March 31, 2017 is Rs. 3590.19 lakhs (Previous Year Rs. 3662.99 Lakhs).

Sick Leave

The Company has a other long term benefit plan for Sick Leave Encashment. The encashment of half pay leave on superannuation will be ail owed in addition to encashment of earned leave sublet to overall limit of 300 days. The cash equivalent payable for Sick leave would be equal to leave salary as admissible for half pay plus DA and to make up the shortfall in earned leave. No commutation of Sick leave shall be allowed for this purpose. The liability for the year 2016-17 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Sick Leave Encashment as on March 31,2017 is Rs. 1085.23 lakhs {previous year Rs. 1046.87 Lakhs}.

Travelling Allowance on Superannuation

The cumulative liability for Travel ling Allowance to be paid to the employees on superannuation (exit) as on March 31, 2017 is Rs. 45.75 lakhs {previous year Rs. 42.51 Lakhs) based o n actuarial valuation.

Post Retirement Medical Benefits

The Company is having a defined benefit plan for Post Retirement Medical Benefits payable to the employees and the retirees of the company. The liability for the year 2016-17 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Post Retirement Medical Benefits as on March 31, 2017 is Rs.2370.42 lakhs (Previous Year Rs. 1836.3 7 Lakhs).

Pension

The company has implemented pension scheme through NBCC Employees Defined Contribution Superannuation Pennon trust under IDA pattern for those employees who have completed 15 years of service in the CPSE and on the regular rolls of (he company as on November 26, 200G. The scheme is managed by a separate Trust formed in the year 2012-13 for the purpose. The contribution for pension amounting to Rs. 763.96 lacs {Previous Year Rs. 757.32 Lacs} has been paid during the year 2016-17.

Long Service Awards

The Company has introduced a scheme of Long service Awards during the Financial Year 2016-17 covering all the Employees below Board Level who are on the regular roll a son September 3, 2016 onwards ind completed (i) 30 Years of Service or more (ii) 35 Years of Service or more. The company has recognised a liability of Rs. 187.10 Lakhs during the Financial Year 2016-17 on the basis of Actuarial Valuation

Note 6

During the year, the Company had specified bank note or other denomination note as defined in the MCA notification G.5.R 303(E) dated March 31, 2017 on the details of Specified Sank Notes (STIN) held and transacted during the period from November S, 2016 to December 30, 2016, the denomination wise SBNs and other notes as per the notification is given below.

Note -7

Operating leases-Lessee

The Company’s significant leasing arrangements are in respect of operating leases relating to its teased office premises. These lease arrangements which are cancellable, are generally renewable by mutual consent.

Disclosure as per Indian Accounting Standard (Ind AS) 103 “Operating Segments”

a) Operating Segments

Management currently Identifies the Company’s three service lines as its Operating Segments as follows;-

- Project Management Consultancy (PMC)

- Real Estate

- Engineering, Procurement and Construction (EPC)

b) Segment Revenue & Expenses

Revenue & Expenses directly attributable to the segment is considered as “Segment Revenue & ”Segment Expenses”

c) Segment Assets & Liabilities

Segment Assets & Liabilities include the respective directly identifiable to each of the segments.

These Operating Segments are monitored by the Company’s chief operating decision maker and strategic decisions are made on the basis of segment 0perating Results. Segment performance is evaluated based on the profit of each segment.

The following tables present Revenue and Profit Information and certain Assets and Liability information regarding the Company’s reportable segments for the years ended March 31,2017 and March 31,2016 -

Note 8

Financial Assets and Liabilities

The carrying amounts of Financial Assets and Financial Liabilities in each category are as follows: Financial Instruments by Category

The carrying amount of Trade Receivables, Trade Payables and Cash & Cash Equivalent are considered to be the same as their Fair Values due to their short term nature

The carrying amount of the Financial Assets and Liabilities carried Amortised Cost is considered a reasonable approximation of Fair Value.

The above table excludes Investment in Subsidiaries, Associate and Joint Venture, which are measured at cost in accordance with Ind AS 27, ‘Sep a rate Financial Statements’.

(i) Fair Value Hierarchy

Financial Assets and Financial Liabilities measured at fair value in the Balance Sheet are grouped into three Levels of a fair value hierarchy. The three Levels are defined based on the observability of significant in puts to the measurement, as follows:

Level 1: Quoted prices (unadjusted) inactive markets for Identical assets or liabilities

Level 2: The fair value of Financial Instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data rely as little as possible on entity specific estimates.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Ievel 3.

The foil owing table shows the Levels within the hierarchy of Financial Assets and Liabilities measured at Fair Value on a recurring basis at March 31,2017, March 31,2016 and April 1,2015:

(ii) Valuation Technique used to determine Fair Value

Specific valuation techniques used to value Financial Instruments includes the use of Met Asset Value for Mutual Funds on the basis of the statement received from investee party.

Note 9

Financial Risk Management

The Company’s activities expose it to credit risk, liquidity risk and market risk. The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk manage me nt framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the Financial Statements.

(A) Credit Risk

The Company is exposed to credit risk from its Operating Activities (Primarily Trade Receivables) and from its Financing Activities including Deposits with Banks, Mutual Funds and Financial institutions and other Financial Instruments,

(i) Credit Risk Management

The Company assesses and manages credit risk of Financial Assets based on following categories arrived on the basis of assumptions., inputs and factors specific to the class of Financial Assets.

A: Low Credit Risk on financial reporting date

B: Moderate Credit Risk

C: High Credit Risk

In respect of Trade Receivable, the company recognises a provision for lifetime Exited Credit Loss.

Based on business, environment in which the Company operates, a default on a Financial Asset is considered when the counter party fails to make payments within the agreed time period as per contract or decided later based upon the factual circumstances on case to case basis. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognised in Statement of Profit an d Loss.

Concentration of Trade Receivables

The CompanyMajor Exposure to Credit Risk for Trade Receivables are from various Government Departments/ Ministries

Credit Risk Exposure

Provision for Expected Credit Losses

The Company provides For Expected Credit Loss based on 12 month and lifetime Expected Credit Loss basis for following Financial Assets-

(B) Liquidity Risk

The Company’s principal sources of liquidity are Cash and Cash Equivalents which art generated from Cash Flow from Operations. The Com par y has no outstanding Bank Borrowings. The Company Consider that the Cash Flows from Operations are sufficient to meet its current liquidity requirements.

Maturities of Financial Liabilities

The tables below analyse the Company’s Financial Liabilities into relevant maturity groupings based on their contractual maturities- The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is insignificant.

(C) Market Risk

The Company’s exposure towards Price Risk arises from Investments held and classified in the Balance Sheet either as Fair Value through Other Comprehensive Income or at Fair Value through Profit & Loss. To manage the price risk arising from investments in equity securities; the Company diversifies its portfolio of assets.

The Company’s exposure to equity securities price risk arises from investments held by the Company and classified in the Balance Sheet as Fair Value through Profit & Loss.

Note -10

Capital Management

The Company’s Objectives when managing capital are to:

- Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- Maintain an optimal capital structure to reduce the cost of capital.

Note -11

First time adoption of Ind AS

These are the Company’s First Financial Statements prepared in accordance with Ind AS.

The accounting policies set out in note 1 have been applied in preparing the Financial Statements for the year ended on March 31, 2017, the comparative information presented in these financial statements for the year ended March 31,2016 and in the preparation of an opening Ind AS Balance Sheet at April 1; 2015 (the Company’s date of transition). An explanation of how the transition, from previous GAAP to Ind AS has affected the Company’s Financial Position, Financial Performance and cash flows is set out in the following tables and notes.

A Ind AS optional exemptions

Deemed cost for Property, Plant and Equipment, Investment Property and Intangible Assets

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its Property Plant and Equipment as recognised In the Financial Statements as at the date of transition to Ind AS_r measured as per the previous GAAP and use that a sits deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets and investment property covered by Ind AS 40 Investment Properties. Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value.

B Ind AS Mandatory Exemptions

Estimates

An entity’s estimates in accordance with ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect an/ difference in Accounting Policies), unless there is objective evidence that those estimates were In error.

Ind AS estimates as at April 01, ZQ15 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

a) Investment in Financial Instruments carried at FVTPL

b) Impairment of Financial Assets based on Expected Credit Loss modeI.

C Reconciliations between previous GAAP and Ind AS

ind AS 101 requires an entity to reconcile Equity, Total Comprehensive Income and Cash Flows for prior periods. The following tables represent the reconciliations From previous GAAP to Ind AS.

D Fair Valuation of Mutual Funds

Under previous GAAP, investments in mutual funds are shown at cost or market value whichever is lower. Under Ind AS, such investments are evaluated under ind AS 109 which requires the Company to account for such instruments at Fair Value Through Profit and Loss (FVTPL) As a result of this- there is no change on the Profit for the year ended on March 31, 2016 and consequent to this there is no change in the equity as on March 31, 2016 &. April 1, 2015 respectively.

E Amortised cost of Retention Money, Security Deposit Asset & Unbilled Revenue

Under the previous GAAP, interest free retention money, security deposits & unbilled revenue (that are refundable /Receivables in cash on completion) are recorded at their transaction value. Under Ind AS, all financial assets are required to be recognised at fair value. Accordingly, the Company has fair valued these retention money, security deposits & unbilled revenue under Ind AS Difference between the fair value and transaction value of the retention money, security deposits unbilled revenue has been recognised as reduction from revenue. As a result of this change, the Revenue for the year ended March 31,2016 decreased by Rs. 854.63 Lakh Consequently total equity decreased by Rs. 3120.88 Lakh as at March 31, 2016 (April 1, 2015 Rs. 2266.25 Lakh),

F Fair Value of Land and Inventory purchased an Deferred Payment

Under Ind AS, Company has availed the exemption available under Ind AS 101 to carry the asset on the deemed cost so there is no change in the carrying value of the asset. However in order to bring the deferral liability at its fair value, the Land liability In respect of capital asset & inventory has been increased by Rs. 116.60 Lakh at April 1,2015.

G Provision for Trade Receivables and Other Current Assets

Under previous GAAP, the Company has created provision for Trade Receivables in respect of specific amounts based on management estimate of recoverability. Under Ind AS, impairment allowance has been determined based on Life time Expected Credit Loss model (ECL) for Trade Receivables. Further certain recoverable from vendors have been provided for based on specific identification by the management. As a result of this change, the Profit for the year ended March 3L 2016 decreased by Rs. 2885.51 Lakh. Consequently total equity decreased by f 12176.37 Lakh as at March 31,2016 {April 1,2015 Rs. 9290.86 Lakh).

H Provision for Warranty Charges

Under Ind AS - 37, the company has recognised a provision for expected cost to be incurred on completed and ongoing projects during the effective defect liability period. Consequently the Profit for the year ended March 31, 2016 decreased by Rs. 461.00 Lakh and total equity decreased by Rs. 1911.00 Lakh as at March 31,2016 ( April 1, 2015 Rs. 1450.00 Lakh).

I Amortisation of leasehold Land

Under previous GAAP, long-term leasehold land is recognised at transaction value and annual lease rentals are recognised as expense on time period basis. Under Ind AS, long-term leasehold land are assessed as being finance or operating lease and accordingly accounted. The Company has recognised one of its land from land bank Si one of its land from capital assets under finance lease model and accordingly amortisation of leasehold land is recorded for the remaining life of leasehold land considering deemed cost exemption on transition date. As a result of this change_, the Profit For the year ended March 31,2016 decreased by Rs.21.94 Lakh. Consequently total equity decreased by Rs.21.94 Lakh as at March 31,2016 ( April 1,2015 NIL).

J Dividend adjustment

Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial Statements we re considered 3S adjusting events. Accordingly, provision for Proposed Dividend was recognised as a liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting. Accordingly, the liability for Proposed Dividend and Dividend Distribution Tan has been reversed with corresponding adjustment to Retained Earnings. Asa result of this change, total equity increased by Rs. 14442.92 Lakh as at March 31,2016 (April 1,2015 Rs. 7943.60 Lakh).

K Remeasurements of Post - Employment Benefit Obligation

Under Ind AS, actuarial gain and losses on defined benefit plan liabilities and plan assets are recognised in other comprehensive income instead of profit and loss. Under the previous GAAP_r such measurements were charged to profit and loss for the respective year. As a result of this change; the profit for the year ended March 31,2016 increased by Rs. 104.28 Lakhs. There is no impact on the total equity as at March 31,2016 and April 1,2015,

L Tax impact on above adjustments

Retained earnings has been adjusted consequent to the all ind AS transition adjustments with corresponding impact to Deferred Tax. Consequently the Profit for the year ended March 31, 2016 increased by Rs. 1077.50 Lakh and total equity increased by Rs. 5651.83 Lakh as at March 31,2016 (April 1,2015 Rs. 4574.33 Lakh).

M Investment Property

Under the previous GAAP, Investment Properties were presented as part of Fixed Assets. Under Ind AS, Investment Properties are required to be separately presented on the face of the balance sheet. There is no impact on the total equity or profit as a result of this adjustment.

N Retained earnings

Retained earnings as at April 1,2015 has been adjusted consequent to the above Ind AS transition adjustments.

O Other Comprehensive Income

Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the statement of profit and loss as ‘other comprehensive income’ includes re-measurements of defined benefit plans, foreign exchange differences arising on translation of foreign operations etc. The concept of other comprehensive income did not exist under previous GAAP.

P Prior Period Items

Ind AS does not permit the impact of prior period in the financials. Hence prior period Items are transferred to retained earnings. Consequent the Profit for the year ended March 31; 2016 increased by Rs. 38.38 Lakh and total equity increased by NlL as at March 31,2016 (April 1,2015 Rs.38.88 Lakh).

Note -12

Events After Balance Sheet Date

A. On April 1, 2017 the Company announced its acquisition of Hindustan Steel works Construction Ltd (HSCL) with effect from April 1, 2 017 for consideration of Rs. 3,570 Lakh. At the time the Financial Statements were authorised for issue, the Company had not completed the accounting for the acquisition of HSCL and the impact on the Balance Sheet has not been determined.

B Proposed Dividend Rs. 1.10 per share on face value of Rs. 2.00 per share (previous year Rs.2 per share on face value of Rs. 2 per share)

Note-13

Previous year figures have been regrouped and/or reclassified, wherever, necessary to conform to those of the current year grouping and/or classification. Negative figures have been shown in brackets.

---

Mar 31, 2016

During the year 2011-12, 30000000 equity shares of Rs,10/- each were issued as fully paid paid Bonus Shares with rights pari passu with existing equity shares.

3A. Proposed Dividend Rs,2.00 per share on face value of Rs,2.00 per share* (Previous year Rs,5.50 per share on face value of Rs,10 per share)

3B. Proposed Dividend per share for the year is after considering sub division of the equity shares of the company to face value of Rs,2.00 per share by shareholders of the company through postal ballot on 30th April, 2016.

3C. The company has provided Depreciation from retained earnings Nil (P.Y. ''102.08 Lakhs) on account of change in Depreciation Policy in accordance with Companies Act 2013.

5A In terms of Section 22 of the Micro, Small and Medium Enterprises Development Act 2006, the outstanding, interest due thereon, interest paid etc to these enterprises are required to be disclosed. However, these enterprises are required to be registered under the Act. In absence of information about registration of the enterprises under the above Act, the required information could not be furnished.

5B Trade Payable Includes Rs,1514.81 Lakhs (Previous Year NIL) payable to Subsidiary Companies.

The company has adopted Accounting Standard-15 on Employee Benefits as under:

GRATUITY

The company has a defined benefit gratuity plan. Every employee who has rendered continuous service of five years or more is entitled to get gratuity on superannuation, resignation, termination, disablement or on death in accordance with Gratuity Act 1972.. The scheme is funded by the company and is managed by a separate trust formed during the financial year 2007-08. The liability for the same is recognized on the basis of actuarial valuation and accordingly transferred to Gratuity Trust. The provision for the year 2015-16 is Rs,518.52 Lacs { Previous Year Rs,328.22 Lacs }.

LEAVE ENCASHMENT

The company has a defined benefit plan for Earned Leave Encashment. Provision for Encashment of Earned Leave equivalent to maximum of 300 days (basic pay plus dearness allowance) is provided at the year end and charged to Statement of Profit & Loss. The liability for the year 2015-16 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Earned Leave Encashment as on 31.03.2016 is Rs,3662.99 lacs { Previous Year Rs,3904.60 Lacs }.

The company has a defined benefit plan for Sick Leave Encashment. The encashment of half pay leave on superannuation will be allowed in addition to encashment of earned leave subject to overall limit of 300 days. The cash equivalent payable for Sick leave would be equal to leave salary as admissible for half pay plus DA and to make up the shortfall in earned leave. No commutation of Sick leave shall be allowed for this purpose. The liability for the year 2015-16 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Sick Leave Encashment as on 31.03.2016 is ''1046.87 lacs { Previous Year Rs,924.06 Lacs }.

TRAVELLING ALLOWANCE ON SUPERANNUATION

The cumulative liability for Travelling Allowance to be paid to the employees on superannuation (exit) as on

31.03.2016 is ''42.51 lacs { Previous Year Rs,41.16 Lacs } based on actuarial valuation.

POST RETIREMENT MEDICAL BENEFIT PLAN

The Company is having a defined benefit plan for Post Retirement Medical Benefits payable to the employees and the retirees of the company. The company has recognized the Post Retirement Medical Benefits from the year 201516 on the basis of actuarial valuation and created a corpus of ''1836.37 lacs during the year.

PENSION

The company has implemented pension scheme through NBCC Employees Defined Contribution Superannuation Pension trust under IDA pattern for those employees who have completed 15 years of service in the CPSE and on the regular rolls of the company as on 26.11.2008. The scheme is managed by a separate Trust formed in the year 2012-13 for the purpose. The contribution for pension amounting to ''757.32 lacs { Previous Year ''711.06 Lacs } has been paid during the year 2015-16.

Other disclosures as required under Accounting Standard - 15 on “Employees Benefits”, in respect of defined benefit obligation are as under:

C) Actuarial assumptions :-

The principal assumptions are the discount rate of 8.0% and salary growth rate of 5.5%. The discount rate is generally based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities & the salary growth rate takes account of inflation, seniority, promotion and other relevant factors on long term basis.

*The main lease is in favor of Bharat Heavy Electricals Limited and a separate agreement for entitlement of ownership has been made in favor of the company.

The above figures represent the land cost including provision for stamp duties payable on execution of lease / title deeds have been made in respect of (i), (iii) and (vi).

1200 equity shares in subsidiary companies are held in the name of nominees of the company.

2 equity shares in Joint Venture Company are held in the name of nominees of the company.

are outstanding for more than three years. Out of this sum, an amount of Rs,2647.20 Lakhs (Previous Year Rs,3399.00 Lakhs) is pending in arbitration/ court cases. No provision has been considered against these amounts as the same are considered good for recovery.

14B. Trade Receivables includes Rs,42824.98 lakhs recoverable from Employee State Insurance Corporation (ESIC), Government of India for works executed for them which are considered good for recovery.

16A. Advances to PRWs, Suppliers, Staff & Others includes outstanding advance of Rs,1300.00 Lakhs (Previous Year Rs,1300.00 Lakhs) recoverable from Indian Drugs & Pharmaceuticals Limited (IDPL). M/s IDPL has been declared sick by Board for Industrial & Financial Reconstruction (BIFR). The company''s claim has been admitted by IDPL during BIFR proceedings and is pending before the Government for cabinet approval.

In view of above the company considers advance of Rs,1300.00 Lakhs recoverable from IDPL is good for recovery and no provision is required in respect of such advance.

16B Vide Finance Bill, 2016, Service Tax on certain projects of the company has been withdrawn with effect from April 1st, 2015. Refund shall be made of all such Service Tax which has been collected but which would not have been so collected because of this amendment. No effect has been given in accounts due to this amendment in Finance Bill since relevant rules for giving effect to these amendments are yet to be notified. The company expects this will have no effect on profit for the year.

No disclosure is required for Subsidiary Companies/ Joint Venture Entities which can be treated as state controlled enterprises (i.e. ownership by Central/State Govt, directly or indirectly, is more than 50% of voting rights)

Notes to Financial Statements

NOTE 1

In respect of closed units (Domestic or Foreign), the reconciliation of balances of such units is in progress. The effect, if any of such balances on the Profit/ Loss of the Company is not ascertainable.

NOTE 2

Balances of Trade Receivables/ Trade Payables and Loans & Advances are subject to reconciliation and confirmation.

NOTE 3

The Company''s significant leasing arrangement are in respect of operating leases relating to its leased office premises. These lease arrangements which are cancelable, are generally renewable by mutual consent. The aggregate lease rentals paid is disclosed under rent in Note No.26.

NOTE 4

Disclosure as per Accounting Standard - 17 on ‘Segment Reporting''

a) Business segments

The Company''s principal business is providing Project Management Consultancy, development of Real Estate and Engineering, Procurement & Construction services.

b) Segment Revenue & Expenses

Revenue & Expenses directly attributable to the segment is considered as ''Segment Revenue'' & ''Segment Expenses''.

c) Segment Assets & Liabilities

Segment Assets & Liabilities include the respective directly identifiable to each of the segments.

SECONDARY SEGMENT DISCLOSURE:

a) The operations of the company are mainly carried out within the country and therefore, geographical segments are inapplicable

Company has split face value of equity share to Rs,2 per share as approved by the shareholders of the company through postal ballot on 30th April, 2016. As per Accounting Standard on Earning per Share (AS-20), Per Share calculation for the current year & previous year are based on new number of equity shares.

NOTE 5

Negative figures have been shown in brackets.

NOTE 6

Previous year figures have been regrouped/ recast/ rearranged wherever deemed necessary to conform to current year''s classification.

---

Mar 31, 2015

Note 1

The Company has only one class of equity shares and the shareholders of the company are entitled to receive dividends as and when declared by the company and enjoy proportionate voting rights in case any resolution is put to vote. Further, the shareholders have all such rights, as may be available to a shareholder of a listed public company, under the Companies Act, the terms of the listing agreements executed with the Stock Exchanges, and Memorandum of Association and Articles of Association of the Company.

Note 2

The company has adopted Accounting Standard-15 on Employee Benefits as under:

Gratuity

The company has a defined contribution gratuity plan. Every employee who has rendered continuous service of five years or more is entitled to get gratuity on superannuation, resignation, termination, disablement or on death. The scheme is funded by the company and is managed by a separate trust formed during the financial year 2007-08. The liability for the same is recognised on the basis of actuarial valuation and accordingly transferred to Gratuity Trust. The contribution for the year 2014-15 is Rs. 328.22 Lacs { Prevous Year Rs. 757.70 Lacs }.

Leave Encashment

The company has a defined benefit plan for Earned Leave Encashment. Provision for Encashment of Earned Leave equivalent to maximum of 300 days (basic pay plus dearness allowance) is provided at the year end and charged to Statement of Profit & Loss. The liability for the year 2014-15 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Earned Leave Encashment as on 31.03.2015 is Rs.3904.60 lacs { Prevous Year Rs. 5301.34 Lacs }.

The company has a defined benefit plan for Half Pay Leave Encashment. The encashment of half pay leave on superannuation will be allowed in addition to encashment of earned leave subject to overall limit of 300 days. The cash equivalent payable for half pay leave would be equal to leave salary as admissible for half pay plus DA and to make up the shortfall in earned leave. No commutation of half pay leave shall be allowed for this purpose. The liability for the year 2014-15 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Half Pay Leave Encashment as on 31.03.2015 is Rs.924.06 lacs { Prevous Year Rs.531.97 Lacs }.

Travelling Allowance on Superannuation

The cumulative liability for Travelling Allowance to be paid to the employees on superannuation (exit) as on 31.03.2015 is Rs.41.16 lacs { Prevous Year Rs.40.50 Lacs } based on actuarial valuation.

Pension

The company has implemented pension scheme through NBCC Employees Defined Contribution Superannuation Pension trust under IDA pattern for those employees who have completed 15 years of service in the CPSE and on the regular rolls of the company as on 26.11.2008. The scheme is managed by a seperate Trust formed in the year 2012-13 for the purpose. The contribution for pension amounting to Rs. 711.06 lacs { Prevous Year Rs.696.59 Lacs } has been paid during the year 2014-15.

C) Acturial assumptions :-

The principal assumptions are the discount rate of 8.5% and salary growth rate of 5.5%. The discount rate is generally based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities & the salary growth rate takes account of inflation, seniority, promotion and other relevant factors on long term basis.

NOte 3 ( Rs. in Lakhs)

Contingent Liabilities and Commitments For the year ended (To the extent not provided for) on March 31, 2015

(a) contingent liabilities

Claims against the Company not acknowledged as debts. Counter claims of the Corporation against these claims amounting to Rs. 23,756.86 lakhs 29,863.01 (Previous year Rs. 23,706.36 lakhs) not accounted for in books.

Demand in respect of taxes not 619.62 accepted by company

a) Value Added Tax (VAT) 2,032.12 (Company is contesting demand)

b) Service Tax (Company is contesting demand)

c) Income Tax

i) Demand raised by Income 1,968.08 Tax Department but not accepted by the company.

ii) Appeals decided in favour 621.72 of company but department has filed further appeals

Bank Guarantees for performance, 40,713.50 Earnest Money Deposits and Security Deposits

The Govt. guarantee charges on 1,654.93 internal / external borrowings have not been accounted for as the matter regarding waiver of these charges has been taken up with the Govt. of India, Ministry of Urban Development (MOUD).

Recovery at penal rate on account NOT ASCERTAINABLE of excess consumption of material over theoretical norms for the materials supplied by the clients at issue price and free of cost, pending final settlement with the clients.

B) Other Committments Nil

Contingent Liabilities and Commitments For the year ended (To the extent not provided for) on March 31, 2014

(a) contingent liabilities

Claims against the Company not 24,188.14 acknowledged as debts. Counter claims of the Corporation against these claims amounting to Rs. 23,756.86 lakhs (Previous year Rs. 23,706.36 lakhs) not accounted for in books.

Demand in respect of taxes not accepted by company

a) Value Added Tax (VAT) 227.12 (Company is contesting demand)

b) Service Tax (Company is 1,119.73 contesting demand)

c) Income Tax

i) Demand raised by Income 2,967.52 Tax Department but not accepted by the company.

ii) Appeals decided in favour 693.52 of company but department has filed further appeals

Bank Guarantees for performance, 42,885.77 Earnest Money Deposits and Security Deposits

The Govt. guarantee charges on 1,654.93 internal / external borrowings have not been accounted for as the matter regarding waiver of these charges has been taken up with the Govt. of India, Ministry of Urban Development (MOUD).

Recovery at penal rate on account NOT ASCERTAINABLE of excess consumption of material over theoretical norms for the materials supplied by the clients at issue price and free of cost, pending final settlement with the clients.

B) Other Committments Nil

Note 4

As per Accounting Standard-18 on Related Party Disclosures:

List of the related parties-

Subsidiary of the Company Joint Ventures:-

(a) NBCC Services (a) Jamal NBCC International (PTY) Limited Limited (w.e.f. 16.10.2014) (b) nbcc - amc

(c) NBCC - R.K. Millen

(d) NBCC - MHG

(e) NBCC - AB

Key Managerial Personnel:-

(a) Dr. Anoop. K. Mittal, Chairman-cum-Managing Director

(b) Mr.S.K.Pal, Director(Finance)

(c) Mr. S.K. Chaudhary, Director (Projects)

(d) Mrs. Deepti Gambhir (Company Secretary) (with effect from 12.08.2014)

Note 5

In respect of closed units (Domestic or Foreign), the reconciliation of balances of such units is in progress. The effect, if any of such balances on the Profit/ Loss of the Company is not asscertainable.

Note 6

Balances of Trade Receivables/ Trade Payables and Loans & Advances are subject to reconciliation and confirmation.

Note 7

The Company''s significant leasing arrangement are in respect of operating leases relating to its leased office premises. These lease arrangements which are cancelable, are generally renewable by mutual consent. The aggregate lease rentals paid is disclosed under rent in Note No.26.

Note 8

Disclosure as per Accounting Standard - 17 on ''Segment Reporting''

a) Business segments

The Company''s principal business is providing Project Management Consultancy, development of Real Estate and Engineering, Procurement & Construction services.

b) Segment Revenue & Expenses

Revenue & Expenses directly attributable to the segment is considered as ''Segment Revenue'' & ''Segment Expenses''.

Note 9

Negative figures have been shown in brackets.

Note 10

Previous year figures have been regrouped/ recast/ rearranged wherever deemed necessary to conform to current year''s classification.

---

Mar 31, 2014

Note 1A

The Deptt. of Disinvestment through the Ministry of Urban Development decided 10% disinvestment of government equity in the company. Cabinet Committee on Economic Affairs accorded approval for disinvestment of 10% government shareholding under the book building process. The company issued fully paid bonus shares amounting to Rs. 30 crore to the existing equity shareholders in the ratio of 3:1. Out of total paid up equity capital of Rs.120 crores,an IPO for disinvestment of 10% equity held was by Government of India amounting to Rs. 12 crores comprising of 1.20 crores equity shares of face value of Rs. 10 each. Public issue in a price band of Rs. 90/- to Rs. 106/- per equity share of Rs. 10 each opened for public on 22.3.2012 and the issue closed on 27.3.2012. Overall, the issue was over subscribed by 4.93 times. In the Empowered Group of Ministers'' meeting (EGoM) held on 28.3.2012, the price of equity share ofRs. 10/- each was decided at Rs. 106/- for the purpose of allotment of shares in consultations with the BSE Ltd. (lead Stock Exchange). However, this IPO was for disinvestment of shares held by Government Of India so, Company''s Share Capital is not affected. The Company is now listed on BSE & NSE w.e.f. 12.4.2012.

Note 1C

The Company has only one class of equity shares and the shareholders of the company are entitled to receive dividends as and when declared by the company and enjoy proportionate voting rights in case any resolution is put to vote. Further, the shareholders have all such rights, as may be available to a shareholder of a listed public company, under the Companies Act, the terms of the listing agreements executed with the Stock Exchanges, and Memorandum of Association and Articles of Association of the Company.

Note 1D

Note 1E

During the year 2011-12, 30000000 equity shares of Rs. 10/- each issued as fully paid paid Bonus Shares with rights pari passu with existing equity shares.

The company had adopted Accounting Standard-15 (Revised 2005) Employee Benefits Scheme as under:

Gratuity

The company has a defined contribution gratuity plan. Every employee who has rendered continuous service of five years or more is entitled to get gratuity on superannuation, resignation, termination, disablement or on death. The scheme is funded by the company and is managed by a separate trust formed during the financial year 2007-08. The liability for the same is recognised on the basis of actuarial valuation and accordingly transferred to Gratuity Trust. The liability for the year 2013-14 isRs.757.70 Lacs.

Leave Encashment

The company has a defined benefit plan for Earned Leave Encashment. Provision for Encashment of Earned Leave equivalent to maximum of 300 days (basic pay plus dearness allowance) is provided at the year end and charged to Statement of Profit & Loss. The liability for the year 2013-14 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Earned Leave Encashment as on 31.03.2014 is Rs.5301.34 lacs.

The company has a defined benefit plan for Half Pay Leave Encashment. The encashment of half pay leave on superannuation will be allowed in addition to encashment of earned leave subject to overall limit of 300 days. The cash equivalent payable for half pay leave would be equal to leave salary as admissible for half pay plus DA and to make up the shortfall in earned leave. No commutation of half pay leave shall be allowed for this purpose. The liability for the year 2013-14 is accounted for on the basis of Actuarial Valuation. The cumulative liability for Half Pay Leave Encashment as on 31.03.2014 is Rs. 531.97 lacs.

Travelling Allowance on Superannuation

The cumulative liability for Travelling Allowance to be paid to the employees on superannuation (exit) as on 31.03.2014 is Rs.40.50 lacs based on actuarial valuation.

Pension

NBCC has implemented pension scheme through NBCC Employees Defined Contribution Superannuation Pension trust under IDA pattern for those employees who have completed 15 years of service in the CPSE and on the regular rolls of the company as on 26.11.2008. The scheme is managed by a seperate Trust formed in the year 2012-13 for the purpose. The contribution for pension amounting to Rs. 696.59 lacs has been paid during the year 2013-14.

Other disclosures as required under AS-15 (Revised) on "Employees Benefits", in respect of defined benefit obligation are as under :

a) Principal Actuarial assumption at the Balance Sheet date (expressed as weighted averages)

C) Acturial assumptions :-

The principal assumptions are the discount rate of 8.5% and salary growth rate of 6%. The discount rate is generally based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities & the salary growth rate takes account of inflation, seniority, promotion and other relevant factors on long term basis.

Note 30 ( Rs. in Lakhs)

Contingent Liabilities and Commitments For the year ended For the year ended (To the extent not provided for) on March 31, 2014 on March 31, 2013

(a) CONTINGENT LIABILITIES

Claims against the Company not acknowledged as debts. Counter claims of the Corporation against these claims amounting to Rs. 23706.36 lakhs (Previous year Rs. 12386.89 lakhs) not accounted for in books. 24188.14 17042.34

Demand in respect of taxes not accepted by company 5007.89 4023.21

Bank Guarantees for performance, EMD and Security Deposit 42885.77 37350.99

The Govt. guarantee charges on internal / external borrowings have not been accounted for as the matter regarding waiver of these charges has been taken up with the Govt. of India, Ministry of Urban Development (MOUD). 1654.93 1654.93

Recovery at penal rate on account of excess consumption of material over theoretical norms for the materials supplied by the clients at issue price and free of cost, pending final settlement with the clients. NOT ASCERTAINABLE NOT ASCERTAINABLE

(b) Other Committments Nil Nil

Note 31

As per Accounting Standard-18, the list of the related parties during the period is given below:- Joint Ventures:- (a) Jamal NBCC International (PTY) Limited

(b) NBCC - AMC

(c) NBCC - R.K. Millen

(d) NBCC - MHG

(e) NBCC - AB

(f) CPWD - NBCC JV

(g) NBCC- HUDCO (General) (h) NBCC- HUDCO KAUSHAMBI

Key Managerial Personnel:-

(a) Dr. Anoop.K.Mittal,Chairman-cum-Managing Director

(b) Mr. S.K.Pal, Director(Finance)

(c) Mr. S.K. Chaudhary, Director (Projects) - w.e.f. 13.11.2013

Note 32

In respect of closed units (Domestic or Foreign), the reconciliation of balances of such units is in progress. The effect, if any of such balances on the Profit/ Loss of the Company is not asscertainable.

Note 33

Balances of Trade Receivables/ Trade Payables and Loans & Advances are subject to reconciliation and confirmation.

Note 34

Office premises taken on lease

The Company''s significant leasing arrangement are in respect of operating leases relating to its leased office premises. These lease arrangements which are cancelable, are generally renewable by mutual consent. The aggregate lease rentals paid is disclosed under rent in Note No.26.

Note 38

Minus figures have been shown in brackets.

Note 39

Previous year figures have been regrouped/ recast/ rearranged wherever deemed necessary to conform to current year''s classification.

---

Mar 31, 2013

Note 1

As per According Standard -18 the disclosures of transactions with the related party as defined in the According standard are given below.

List of related parties with whom transactions have taken place and relationship.

Joint ventures

Jamal NBCC international (PTY) Limited

NBCC-AMC

NBCC - H.K. Millen

NBCC - WHG

NBCC - AB

Key Managerial Personnel Mr,V.P.Das Chairman-cum-Management Director up to 31.03.2013.

Mr.Anoop K.Mittal Chairman-cum-Managing Director w,e,f,01.04.2013

Mr,Anoop K.Mittal Director (projects) up to 31.03.2013

Mr,Ajay K.Garg Director (Finance) up to 18.04.2012

Mr,S.K.Pal Director (Finance) w,e,f, 01.02.2013

Note 2

In respect of closed units (Domestic or Foreign) the reconciliation of balances of such units is in progress The effect if any of such balances on the project/loss of the company is not ascertainable..

Note 3

Balances of Trade Receivables/Trade payable and Loans & Advances are subject to reconciliation and confirmation..

Note 4

Certain modifications changes have been made in accounting procedures policies during the financial year 2012-13 which do not have any financial impact on profit loss of the company..

Note 5

Other premises taken on lased

The company signification leasing arrangement are in respect of operating leases relating to its leased offices premises These lease arrangements which are cancelable are generally renewable by mutual consent The Aggregate lease rentals is disclosed under rent in Note No.28.

Note 6

Minus figures have been shown in brackets

Note 7

Previous year''s figures have been regrouped / recast / rearranged whenever deemed necessary to conform to current year''s classifications.

---

Mar 31, 2012

The Deptt. of Disinvestment through the Ministry of Urban Development decided 10% disinvestment of government equity in the company. Cabinet Committee on Economic Affairs accorded approval for disinvestment of 10% government shareholding under the book building process. The company issued fully paid bonus shares amounting to Rs. 30 crore to the existing equity shareholders in the ratio of 3:1. Out of total paid up equity capital of Rs.120 crores, an IPO for disinvestment of 10% equity was held by Government of India amounting to Rs. 12 crores comprising of 1.20 crores equity shares of face value of Rs.10 each. Public issue in a price band of Rs. 90/- to Rs. 106/- per equity share of Rs.10 each opened for public on 22.3.2012 and the issue closed on 27.3.2012. Overall, the issue was over subscribed by 4.93 times. In the Empowered Group of Ministers' meeting (EGoM) held on

28.3.2012, the price of equity share of Rs.10/- each was decided at Rs.106/- for the purpose of allotment of shares in consultations with the BSE Ltd. (lead Stock Exchange). However, this IPO was for disinvestment of shares held by Government Of India so, Company's Share Capital is not affected. The Company is now listed on BSE & NSE w.e.f. 12.4.2012.

The statutory dues are deposited regularly with the appropriate authorities as stipulated under the Statutory Act subject to an exception of :-

Undeposited amount of Labour Welfare Cess to the tune of Rs. 1996.27 lakhs disclosed in Note-6 of the Balance Sheet under the head Other Current Liabilities. This includes an amount of Rs.296.22 lacs on account of the difference of the levied rate of cess @ 0.3% and 1% in the case of the respective Law of the states and the rate applicable at the Centre. The Balance undeposited amount of Rs. 1700.05 lacs pertains to labour cess collected from contractors in respect of various states. However the amount will be deposited on receipt of demand from Labour Welfare Cess Board of the concerned states.

Service tax has been deposited by respective Units/Zones on accrual system. In few units/zones,service tax has not been deposited on accrual basis. Quantification of the same could not be ascertained. Amount will be deposited after ascertaining the exact liability.

Gratuity

The company has a defined benefit gratuity plan. Every employee who has rendered continuous service of five years or more is entitled to get gratuity on superannuation, resignation, termination, disablement or on death. The scheme is funded by the company and is managed by a separate trust formed during the financial year 2007-08. The liability for the same is recognized on the basis of actuarial valuation and accordingly transferred to Gratuity Trust. Actuarial valuation of liability for the year 2011-12 is Rs. 828.07 lakhs.

Leave Encashment

Provision for Encashment of Earned Leave equivalent to maximum of 300 days (basic plus dearness allowance) is provided at the year end and charged to profit & loss account. Actuarial valuation of liability as on 31.03.2012 is Rs. 4372.08 lakhs.

Provision for encashment of Half Pay Leave accruing to the employee on or after 01.04.2005 subject to an overall ceiling of 240 days (equal to 120 days on full pay) on superannuation / death is provided and charged to profit & loss account. Actuarial valuation of liability as on 31.03.2012 is Rs.1259.45 lakhs.

Travelling Allowance on Superannuation

The provision for Travelling Allowance to be paid to the employees on superannuation (exit) to the tune of Rs. 36.13 lakhs is provided based on actuarial valuation by taking into account the average cost of Rs. 2851.00 per employee.

Other disclosures as required under AS-15 (Revised) on "Employees Benefits", in respect of defined benefit obligation are as under:

Acturial assumptions:-

The physical assumptions are the discount rate & salary growth rate. The discount rate is generally based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities & the salary growth rate takes account of inflation, seniority,promotion and other relevant factors on long term basis.

Trade Receivables includes outstanding dues from Govt. / PSUs and other departments in respect of closed projects amounting to Rs. 5858.36 lakhs (previous year Rs. 4045.37 lakhs) which are outstanding for more than three years. Out of this sum, an amount of Rs. 1742.30 lakhs (previous year Rs. 1756.18 lakhs) is pending in arbitration / court proceedings. No provision has been considered against these amounts as the same are considered good for recovery.

(I) Item a, c, d,e,f & g are valued at lower of cost or net realizable value.

Item b. -The expenditure charged to Profit & Loss Account in respect of Real Estate Projects has been worked out on the basis of Standard Costing Method.

(II) Lease / Title Deeds for the following Land and Buildings are pending for execution in the name of Corporation:

Chairman-cum-Managing Director and full time Directors have used company's Car including for private journeys on payment of prescribed charges in accordance with the Government of India, Ministry of Finance BPE's circular No.2(28)/83-BPE(wc) dated 17.11.1983 read with the Government of India, Ministry of Finance BPE's circular No.4/(12)/82- BPE(wc) dated 01.04.1987 and DPE OM No.2(53).90-DEP (wc)-GIV dated 26.03.1999. Since recovery for personal use of car is being made, use of company's car is not considered as a perquisite.

NOTE-1 (Rs. in lakhs)

Contingent Liabilities For the year ended For the year ended 31 March 2012 31 March 2011

Claims against the Corporation not acknowledged as debts. 100,554.37 39,858.38

Counter claims of the Corporation against these claims amounting to Rs.52914.18 lakhs (Previous year Rs. 19986.04 lakhs) not accounted for in books.

Bank Guarantees for performance, EMD and Security Deposit 38,206.58 34,040.66

The Corporation had paid tax in earlier years in Libya on profits 2,696.04 2,482.43 based on accounts audited by local auditors. Additional demand for tax amounting to LD 6716079.430 equivalent to Rs. 2696.04 lakhs (previous year LD 6,716,079.430 equivalent to Rs. 2482.43 lakhs) based on turnover etc., for the years from 1977-78 to 1989-90 raised by the tax department of the said foreign country has not been accepted by the Corporation and not provided for. The Corporation has filed appeal / objections against the above demand under the local tax laws.

The Govt. guarantee charges on internal / external borrowings 1,654.93 1,654.93 have not been accounted for as the matter regarding waiver of these charges has been taken up with the Govt. of India, Ministry of Urban Development (MOUD).

Recovery at penal rate on account of excess consumption of NOT NOT material over theoretical norms for the materials supplied by the ASCERTAINABLE ASCERTAINABLE clients at issue price and free of cost, pending final settlement with the clients.

NOTE 2

As per Accounting Standard-18, issued by the Institute of Chartered Accountants of India, the disclosures of transactions with the related party as defined in the Accounting Standard are given below:-

List of related parties with whom transactions have taken place and relationship:-

Joint Ventures:-

Jamal NBCC International (PTY) Limited

NBCC-AMC

NBCC - R.K. Millen

NBCC - MHG

NBCC-AB

Key Managerial Personnel:- Mr. Vishnu P. Das, Chairman-cum-Managing Director

Mr.Anoop K.Mittal,Director (Projects) w.e.f. 05.12.2011 Mr. Ajay K. Garg, Director (Finance) upto 18.04.2012

NOTE 3

In respect of closed units be it dometstic or foreign, the reconcilliation of balances of such units is in progress. The effect if any of such balances on the profit/ loss of the corporation is not ascertainable.

NOTE 4

Balances of Trade Receivables/ Trade Payables and Loans ans Advances are subject to reconcilliation and confirmation.

NOTE 5

Minus figures have been shown in brackets

NOTE 6

Previous years figures have been regrouped / recast / rearranged wherever deemed necessary to conform to current year's classifications.

---

Mar 31, 2008

1. (Rs. in lakhs)

2007-2008 2006-2007

1. CONTINGENT LIABILITIES:

(a) (i) Claims against the Corporation not acknowledged as 66955.24 20693.95 debts. Counter claims of the Corporation against these claims amounting to Rs.20530.10 lakhs (Previous year Rs.12828.55 lakhs) not accounted for in books.

(ii) Bank Guarantees for performance, EMD and Security 10441.22 7011.98 Deposit

(b) (i) The Corporation had paid tax in earlier years in Libya 2276.75 2280.78 on profits based on accounts audited by local auditors. Additional demand for tax amounting to LD 6,716,079.430 equivalent to Rs.2276.75 lakhs (previous year LD 6,716,079.430 equivalent to Rs.2280.78 lakhs) based on turnover etc., for the years from 1977-78 to 1989-90 raised by the tax department of the said foreign country has not been accepted by the Corporation and not provided for. The Corporation has filed appeal / objections against the above demand under the local tax laws.

(ii) The Govt. guarantee charges on internal/external 1654.93 1557.19 borrowings have not been accounted for as the matter regarding waiver of these charges has been taken up with the Govt. of India, Ministry of Urban Development (MOUD)

(iii) Recovery at penal rate on account of excess NOT ASCERTAINABLE consumption of material over theoretical norms for the materials supplied by the clients at issue price and free of cost, pending final settlement with the clients.

(iv) Letters of credit opened but not utilized.

c) Old outstanding dues in respect of works executed in 3673.20 Libya and Iraq have been shown as Contingent Assets

2. Fixed Deposits / Deposits with scheduled / non-scheduled banks for Rs.7220.87 lakhs (previous year Rs.9074.03 lakhs) includes Rs.7151.00 lakhs (previous year Rs.8951.00 lakhs) for issuing of bank guarantees which are under lien with banks as per stipulation of the bank.

* The main lease is in favour of M/s BHEL and a separate agreement for entitlement of ownership has been made in favour of NBCC.

The above figures represent the land cost including provision for stamp duties payable on execution of lease / title deeds have been made in respect of (i) & (iii) to (vii).

4. Sundry Debtors includes outstanding dues from Govt. /PSUs and other departments in respect of closed projects (other than Foreign Projects) amounting to Rs. 4186.58 lakhs (previous year Rs. 3828.17 lakhs) which are outstanding for more than three years. Out of this sum, an amount of Rs. 1327.29 lakhs (previous year Rs. 1340.45 lakhs) is pending in arbitration / court proceedings. No provision has been considered against these amounts as the same are considered good for recovery.

5. In respect of closed units be it domestic or foreign the reconciliation of balances of such unit is in progress. The effect if any of such balances on the profit / loss of the Corporation is not ascertainable.

6. Debtors, Creditors and Loans & Advances are subject to confirmation and reconciliation.

7. Unclaimed liabilities and other credit balances outstanding since previous year amounting to Rs. 2517.82 lakhs (previous year Rs. 959.39 lakhs ) have been written-back in the books under the head "Unadjusted credit balances written- back" being not payable consequent to a review of such accounts during the year.

8. The statutory dues are deposited regularly with the appropriate authorities as stipulated under the Statutory Act.

9. The expenditure charged to Profit & Loss Account has been worked out on the basis of Standard Costing Method in respect of Real Estate Projects.

10. During the financial year 2007-08 the company has revised its accounting policy for income recognition in ascertaining the value of work done:-

The possible likely rejections were deducted upto financial year 2006-07. There is no financial impact of this change during the year.

11. The company has revised its accounting policy for basis of conversion of foreign currency in respect of Revenue items translated into Indian Currency during the financial year 2007-08

i) The basis for conversion of revenue items other than opening and closing inventories and depreciation in respect of foreign projects translated into Indian Currency at an average rate of opening and closing buying rates of the financial year till 2006-07 was changed to an average rate of the month of the transaction.

ii) Foreign currency in respect of Revenue items pertaining to Indian Projects are translated into Indian Currency at the conversion rate on the date of transaction.

There is no financial impact of this change during the financial year 2007-2008.

12. During the financial year 2007-08 the gratuity trust has been constituted and the amount of provision has been transferred to the gratuity trust accordingly.

13. Consequent upon the recommendations of 6th pay commission for employees under CDA Pattern and Pay Committee Report on IDA Pattern effective from January, 2006 and January, 2007 in respect of CDA & IDA Pattern respectively, the liability on account of revision of pay and perks of Rs. 2562.05 lakhs has been provided.

14. Govt. of India issued subscribed and fully paid up 7% non-cumulative Preference Shares redeemable in 10 years upto 31.03.2007 for Rs. 30.00 crores have been redeemed during the financial year 2007-08.

15. As per Accounting Standard-18, issued by the Institute of Chartered Accountants of India, the disclosures of transactions with the related party as defined in the Accounting Standard are given below:-

A) List of related parties with whom transactions have taken place and relationship:-

a) Joint Ventures:-

i) Jamal NBCC International (Proprietary) Limited

ii) IJM- NBCC - VRM

iii) AMC - NBCC

iv) R.K. Millen - NBCC

b) Key Managerial Personnel:-

i) Mr. Arup Roy Choudhury, CMD

ii) Mr. V.P. Das, Director (Projects)

iii) Mr. Ajay K Garg, Director(Finance)

* As a matter of prudence Deferred Tax Asset / (Liability) has been calculated at 30% of actual Deferred Tax Asset / (Liability)

Note: 1) The accounts for 2007-08 have not yet been finalized hence not incorporated except AMC- NBCC. Investment has been accounted for on payment basis.

2) The financial results of Joint Venture IJM - NBCC - VRM have not been received hence not incorporated.

16. Chairman-cum-Managing Director and full time Directors have used company's Car Including for private journeys on payment of prescribed charges in accordance with the Government of India, Ministry of Finance BPE's circular No.2(28)/83-BPE(wc) dated 17.11.1983 read with the Government of India, Ministry of Finance BPE's circular No.4/(12)/82-BPE(wc) dated 01.04.1987 and DPE OM No.2(53).90-DEP (wc)-GIV dated 26.03.1999. Since recovery for personal use of car is being made, use of company's car is not considered as a perquisite.

17. Minus figures have been shown in brackets.

18. Previous years figures have been regrouped/recast/rearranged wherever deemed necessary in order to make them comparable to the presentation adopted for the year under report.

---

Mar 31, 2006

1. (Rs. in lakhs) 2005-2006 2004-2005

1. CONTINGENT LIABILITIES:-

(a) (i) Claims against the Corporation not acknowledged as debts. Counter claims of the Corporation against these claims amounting to Rs.24783.53 lakhs (Previous year Rs.24075.02 lakhs) not accounted for in books. 28847.66 29875.19

(ii) Bank Guarantees for performance, EMD and Security Deposit 6357.68 6422.38

(b) (i) The Corporation had paid tax in earlier years in Libya on profits based on accounts audited by local auditors. Additional demand for tax amounting to LD 6,716,079.430 equivalent to Rs.5737.54 lakhs (previous year LD 6,716,079.430 equivalent to Rs.5737.54 lakhs) based on turnover etc., for the years from 1977-78 to 1989-90 raised by the tax department of the said foreign country has not been accepted by the Corporation and not provided for. The Corporation has filed appeal / objections against the above demand under the local tax laws. 5737.54 5737.54

(ii) The Govt. guarantee charges on internal/external borrowings have not been accounted for as the matter regarding waiver of these charges has been taken up with the Govt. of India, Ministry of Urban Development (MOUD). 1531.19 2250.35

(iii) Recovery at penal rate on account of excess consumption of material over theoretical norms for the materials supplied by the clients at issue price and free of cost, pending final settlement with the clients. NOT ASCERTAINABLE

(iv) Letters of credit opened but not _ _ utilised.

2. Fixed Deposits / Deposits with scheduled/non-scheduled banks for Rs. 13038.57 lakhs (previous year Rs.5463.04 lakhs) includes Rs.12770.00 lakhs (previous year Rs.5200.00 lakhs) for issuing of bank guarantees which are under lien with banks as per stipulation of the bank.

3. An amount of Rs. 1128.60 lakhs (Previous year Rs.1128.60 lakhs) lying with Rasheed Bank, Iraq can not be repatriated to India. Balance confirmation for this amount is not available from the Bank.

4. Lease/Title Deeds for following Land and Buildings are pending for execution in the name of Corporation:

* The main lease is in favour of M/s BHEL and a separate agreement for entitlement of ownership has been made in favour of NBCC.

Provision for stamp duties payable on execution of lease/title deeds have been made in respect of (i) & (iii) under Fixed Assets and (i) to (v) under work in progress.

3. Sundry Debtors includes outstanding dues from Govt./PSUs and other departments in respect of closed projects(other than Foreign Projects) amounting to Rs.5601.01 lakhs (previous year Rs.6132.23 lakhs) which are outstanding for more than three years. Out of this sum, an amount of Rs.1969.80 lakhs (previous year Rs.2488.23 lakhs) is pending in arbitration/court proceedings. No provision has been considered against these amounts as the same are considered good for recovery.

4. Debtors include sum of Rs. 5234.41 lakhs (Previous year Rs. 7001.44 lakhs) outstanding in respect of Iraqi Projects.

5. Debtors include a sum of Rs.4836.41 lakhs (Net) (Previous year Rs.4836.41 lakhs - Net) outstanding in respect of Libyan projects which are recoverable from Libyan Government in respect of two projects which were completed prior to 1990 and dues against which are not forthcoming due to US sanctions. Efforts are being made to realise the dues through diplomatic channels.

6. Security Deposit amounting to Rs.875.99 lakhs (previous year Rs.875.99 lakhs) is outstanding in respect of Libyan projects which is recoverable from Libyan Government in respect of two projects which were completed prior to 1990 and amount thereof is not forthcoming due to US sanctions. Efforts are being made to realise the dues through diplomatic channels.

7. Current liabilities include Rs. 3426.84 lakhs (previous year Rs. 2663.76 lakhs) received from MOUD during the earlier years on account of outstanding dues in respect of Iraqi Projects covered under INDO-IRAQ Government to Government Deferred Payment Arrangement (DPA) and Cash Contract, the same are pending reconciliation/clearance.

8. In respect of closed units be it domestic or foreign the reconciliation of balances of such unit is in progress. The effect if any of such balances on the profit / loss of the Corporation is not ascertainable.

9. Debtors, Creditors and Loans & Advances are subject to confirmation and reconciliation.

10. No provision for Dividend on Preference Shares has been made in view of Section 205 of the Companies Act, 1956.

11. Income Tax (Overseas) paid amounting to Turkish Lira 13279220000.00 equivalent to Indian Rs. 4.33 lakhs (Previous year Turkish Lira 29885240000 equivalent to Indian Rs. 9.77 lakhs) pertains to projects in Turkey.

12. Unclaimed liabilities and other credit balances outstanding since previous years amounting to Rs. 430.40 lakhs (previous year Rs. 134.92 lakhs) have been written- back in the books under the head "Unadjusted credit balances written-back" being not payable consequent to a review of such accounts during the year.

13. The accounts of Libyan and Iraqi Projects have been converted into Indian Currency at the closing buying rates prevailing as on 31.03.2001 since the rates after this date were not available which is inconsistent with the provision of AS-11. Financial impact of the same is not ascertainable.

14. Arbitration awards are accounted for on the basis of Rule of Court.

15. Govt. of India issued subscribed and fully paid up 7% non-cumulative preference shares redeemable in 10 years upto 31.03.2007 for Rs. 30.00 crore. As per the guidelines issued by Govt. of India vide letter No.0-17031/38/94-PS dated 20.11.1998 the shares are redeemable in 10 years. Hence the provision for yearly redeemable shares not considered because the guidelines do not specify for yearly redemption of shares.

16. The statutory dues are deposited regularly with the appropriate authorities as stipulated under the Statutory Act.

17. The depreciation charged earlier in respect of lease hold land at MBP Ghitorni and Lodhi Road amounting to Rs.23.21 and Rs.2.44 lakhs respectively has been written-back.

18. The Corporation as a matter of policy executes some projects on no profit no loss basis as a social obligation.

19. As per Accounting Standard- 18, issued by the Institute of Chartered Accountants of India, the disclosures of transactions with the related party as defined in the Accounting Standard are given below:-

A) List of related parties with whom transactions have taken place and relationships:-

a) Joint Ventures:-

i) Jamal NBCC International(Proprietary) Limited

ii) IJM - NBCC - VRM

b) Key Managerial Personnel:-

i) Mr. Arup Roy Choudhury, CMD

ii) Mr. B.L. Bajaj, Director(Finance)

Note: 1) Since Corporation is yet to pay its 49% ownership interest the information as per vi(a) to (f) of (1) above are not applicable.

2) The results of Joint Venture IJM - NBCC - VRM have not been received hence not accounted for.

Note:- i) Cash and Cash equivalents consist of cash in hand and balances with banks. Cash and cash equivalents included in the cash flow statement comprise the following balance sheet amount.

ii) Cash and cash equivalents at the end of 31.03.2006 include deposits with Banks amounting to Rs. 1128.60 lakhs which are not freely remissible to the Company.

iii) The above Cash Flow Statement has been prepared in accordance with the requirement of Accounting Standard-3 " Cash Flow Statement" issued by the Institute of Chartered Accountants of India.

iv) Figures in brackets indicate cash outgo.

20. Chairman-cum-Managing Director and full time Directors have used company's car Including for private journeys on payment of prescribed charges in accordance with the Government of India, Ministry of Finance BPE's circular No.2(28)/83-BPE(wc) dated 17.11.1983 read with the Government of India, Ministry of Finance BPE's circular No.4/(12)/82-BPE(wc) dated 01.04.1987 and DPE OM No.2(53).90-DEP (wc)-GIV dated 26.03.1999. Since recovery for personal use of car is being made, use of company's car is not considered as a perquisite.

21. Minus figures have been shown in brackets.

22. Previous years figures have been regrouped/recast/rearranged wherever deemed necessary in order to make them comparable to the presentation adopted for the year under report.

---

Mar 31, 2005

1. (Rs. in thousands) 2004-2005 2003-2004

1. CONTINGENT LIABILITIES:-

(a) (i) Claims against the Corporation not acknowledged as debts. Counter claims of the Corporation against these claims amounting to Rs.240,75,02 thousands (Previous year Rs.250,73,68 thousands) not accounted for in books. 298.75.19 342,14,80

(ii) Bank Guarantees for performance,

EMD and Security Deposit 64.22.38 59,91,27

(b) (i) The Corporation had paid tax in earlier years in Libya on profits based on accounts audited by local auditors.

Additional demand for tax amounting to LD 6,716,079.430 equivalent to Rs.57,37,54 thousands (previous year LD 6,716,079.430 equivalent to Rs.57,37,54 thousands) based on turnover etc., for the years from 1977-78 to 1989-90 raised by the tax department of the said foreign country has not been accepted by the Corporation and not provided for.

The Corporation has filed appeal / objections against the above demand under the local tax laws. 57.37.54 57,37,54

(ii) The Govt. guarantee charges on internal/external borrowings have not been accounted for as the matter regarding waiver of these charges has been taken up with the Govt. of India, Ministry of Urban Development (MOUD). 22.50.35 21,23,18 (iii) Recovery at penal rate on account of excess consumption of material over theoretical norms for the materials supplied by the clients at issue price and free of cost, pending final settlement with the clients. NOT ASCERTAINABLE

(iv) Letters of credit opened but not -- -- utilized.

2. Fixed Deposits / Deposits with scheduled/non-scheduled banks for Rs.54,63,04 thousands (previous year Rs.92,51,95 thousands) includes Rs.52,00,00 thousands (previous year Rs.89,88,00 thousands) for issuing of bank guarantees, are under lien with banks as per stipulation.

3. An amount of Rs. 11,28,60 thousands (Previous year Rs. 11,28,60 thousands) lying with Rushed Bank, Iraq can not be repatriated to India. Balance confirmation for this amount is not available from the Bank.

4. The physical verification report of fixed assets as on 31st March,2005 is pending for reconciliation with balance as per books. Discrepancies, if any, will be accounted for on completion of reconciliation.

* The main lease is in favors of M/s BHEL and a separate agreement for entitlement of ownership has been made in favors of NBCC.

However provision for stamp duties payable on execution of lease/title deeds have been made in respect of (i) & (iii) under Fixed Assets and (i), (ii) & (iii) under work in progress.

5. Sundry Debtors includes outstanding dues from Govt./PSUs and other departments in respect of closed projects(other than Foreign Projects) amounting to Rs.61,32,23 thousands (previous year Rs.65,21,48 thousands) which are outstanding for more than three years. Out of this sum, an amount of Rs.24,88,23 thousands (previous year Rs.18,06,99 thousands) is pending in arbitration/court proceedings. No provision has been considered against these amounts as the same are considered good for recovery.

6. Debtors include sum of Rs. 70,01,44 thousands (Previous year Rs. 70,01,44 thousands) is outstanding in respect of Iraqi Projects represents:

i) An amount of Rs.38,03,81 thousands (previous year Rs.38,03,81 thousands) including interest of Rs. 24,86,52 thousands (Previous year of Rs.24,86,52 thousands) recoverable from Exam Bank of India, under Deferred Payment Agreement (DPA) between Government of Iraq and Government of India. The above amount includes Rs.14,44,36 thousands (Previous year Rs.14,44,36 thousands) due from Iraqi Projects for which DPA agreement is pending for renewal since January,1991.

ii) An amount of Rs.20,93,20 thousands (previous year Rs.20,93,20 thousands) on account of war claims pending for approval from clients in respect of projects covered under DPA.

iii) An amount of Rs.11,04,43 thousands (Previous year Rs.11,04,43 thousands) under cash contract is pending due to UN sanctions.

7. Debtors include a sum of Rs.62,43,19 thousands (Net) (Previous year Rs.62,43,19 thousands - Net) outstanding in respect of Libyan projects which represents:

i) An amount of Rs. 48,36,41 thousands (Previous year Rs.48,36,41 thousands) recoverable from Libyan Government in respect of two projects which were completed prior to 1990, for which dues are not forthcoming due to US sanctions. Efforts are being made to realise the dues through diplomatic channels.

ii) An amount of Rs. 14,06,78 thousands (Previous year Rs. 14,06,78 thousands) recoverable from Airport Authority of India (AAI), which was a subject matter for Arbitration. The Arbitration award in favour of NBCC has since been obtained. However, the award has not been implemented against AAI as AAI has asked for the release of Bank Guarantee which was executed by AAI to Libyan Custom Department for import of machinery by NBCC. The matter is under pursuance with Libyan authorities through diplomatic channels.

8. Security Deposit include a sum of Rs. 19,00,56 thousands (previous year Rs.19,00,56 thousands) is outstanding in respect of Libyan projects which represents:

i) An amount of Rs.8,75,99 thousands (Previous year Rs. 8,75,99 thousands) recoverable from Libyan Government in respect of two projects which were completed prior to 1990, for which amount is not forthcoming due to US sanctions. Efforts are being made to realize the dues through diplomatic channels.

ii) An amount of Rs. 10,24,57 thousands (Previous year Rs.10,24,57 thousands) recoverable from Airport Authority of India (AAI) which was a subject matter for Arbitration. The Arbitration award in favors of NBCC has since been obtained. However, the award has not been implemented against AAI as AAI has asked for the release of Bank Guarantee which was executed by AAI to Libyan Custom Department for import of machinery by NBCC. The matter is under pursuance with Libyan authorities through Diplomatic channels.

9. Ministry of Urban Development (MOUD) vide letter No.0-17031/22/80-PS dated 14.03.95 had conveyed decision that Ministry of Finance(MOF) has no objection in giving grant of Rs. 26,00,00 thousands for repayment of OIDB loan of Rs.13,00,00 thousands and interest thereon of Rs.13,00,00 thousands. Corporation had taken into account grant of Rs. 13,00,00 thousands in 1993-94 and Rs. 13,00,00 thousands in 1994-95. MOF has released Rs. 13,00,00 thousands as grant vide letter No.0-17031/22/80-PS (Vol. III) dated 10.01.1997. The matter for the release of the balance grant is under follow up with the Govt. and MOUD vide letter No.0-17031/ 22/80-PS dated 13.07.2005 confirmed that the settlement of interest due is under consideration of the Government.

10. Current liabilities include Rs. 26,63,76 thousands (previous year Rs. 26,63,76 thousands) and Rs. 17,67,03 thousands (Previous year Rs. 17,67,03 thousands) received from MOUD and ECGC during the earlier years on account of outstanding dues in respect of Iraqi Projects covered under INDO-IRAQ Government to Government Deferred Payment Arrangement (DPA) and Cash Contract, the same are pending reconciliation/clearance.

11. In closed units of domestic projects, foreign projects and some running units debit / credit balances of steel & cement, Suppliers, PRWs, Employees, Provident Fund, expenses payable to other parties and suppliers including huge and old balances are outstanding which are subject to reconciliation/clearance/set-off. Review/reconciliation/clearance of these balance is under progress. In some units VWD, Sundry Debtors, Security Deposits and other balances as per unit records and accounts maintained at Zonal Offices are pending reconciliation. The effect on Balance Sheet and Profit & Loss Account of the year of such review/reconciliation & clearance is not ascertainable now.

12. Debtors, Creditors and Loans & Advances are subject to confirmation and reconciliation.

13. The company has duly complied with the Accounting Standards referred to in clause 3(c) of Section 211 of the Companies Act,1956 except in respect of Accounting Standard-7 (Para 35), for the reasons mentioned hereunder:

Foreseeable losses not being provided, as these losses have got the essence of contingencies which are highly uncertain considering the nature of work and involvement of additional expenditure on initial mobilization of the work.

14. No provision for Dividend on Preference Shares has been made in view of Section 205 of the Companies Act, 1956.

15. Income Tax (Overseas) paid amounting to Turkish Lira 29885240000 equivalent to Indian Rs. 9,77 thousands (Previous year Turkish Lira 35831300000 equivalent to Indian Rs. 10,44 thousands) pertains to projects in Turkey.

16. Unclaimed liabilities and other credit balances outstanding since previous years amounting to Rs. 1,34,92 thousands (previous year Rs. 5,90,84 thousands) have been written-back in the books under the head "Unadjusted credit balances written- back" being not payable consequent to a review of such accounts during the year which is a regular process.

17. The accounts of Libyan and Iraqi Projects have been converted into Indian Currency at the closing buying rates prevailing as on 31.03.2001 since the rates after this date were not available which is inconsistent with the provision of AS-11. Financial impact of the same is not ascertainable.

18. MOUD vide letter No.0-17031/11/94-PS(VIII) dated 28.11.1997 has allowed NBCC to encase RBI Bonds amounting to Rs. 6,00,00 thousands to enable NBCC to meet the claims of M/s IRCON. Accordingly liability of MOUD amounting to Rs. 7,63,08 thousands including interest upto 31.03.2000 has been written-back during 2000- 2001 and has been shown under contingent liability.

19. Arbitration awards are accounted for on the basis of Rule of Court.

20. Govt. of India issued subscribed and fully paid up 7% non-cumulative preference shares redeemable in 10 years upto 31.03.2007 for Rs. 30.00 Crore. As per the guidelines issued by Govt. of India vide letter No.0-17031/38/94-PS dated 20.11.1998 the shares are redeemable in 10 years. Hence the provision for yearly redeemable shares not considered because the guidelines do not specify for yearly redemption of shares.

21. There is a special rupee loan from Syndicate Bank with a progressive liability for Rs.45,43,92 thousands (Principal amount Rs. 35,72,24 thousands and interest accrued Rs. 9,71,68 thousands) as on 31.03.2005. The one time settlement of Rs.31,32,00 thousands has been arrived at with Syndicate Bank as confirmed by them vide letter No.NP/9044/1071/2003 dated 23.07.2003 but the overall effect of one time settlement shall be made in the books of accounts when the payment is made to Syndicate Bank.

22. Upto the Financial Year 2003-2004 lease hold land was amortized over the period of lease. From the Financial Year 2004-2005 amortization of lease hold land is discontinued to comply with the provisions of Schedule-XIV of the Companies Act,1956. The Financial impact due to change of this policy is Rs.2,67 thousands which has not been charged in the books of accounts.

23. Till previous year the Sales Tax/Turnover Tax used to be adjusted in the books of accounts at the time of final assessment except where Composite Tax Scheme was adopted. From the financial year 2004-2005 the amount remained uncharged upto 31.03.2004 and the current year amount totaling to Rs.8,33,07 thousands has been charged in the books of accounts and at the time of final assessment refund if any of said taxes shall be reckoned as income.

24. The Corporation represented to the Govt. of India, Ministry of Urban Development vide letter No. NBCC/RE/MOUD/04/1017 dated 01.11.2004 for restricting the interest amount to the extent of principal amount i.e. Rs.8.02 crores of land allotted to NBCC at Pragmatic Vicar. During discussion NBCC was assured that the request of Corporation shall be considered favorably. However, the Govt. of India, MOUD vide their letter No.0-17031/10/96-PS(PT) dated 09.06.2005 communicated the approval for payment of interest of Rs.12.89 crores. The Corporation has again taken up with the Ministry vide letter No. NBCC/CMD/2005 dated 15.06.2005 with a request to reconsider the issue as per discussions held in the Ministry where NBCC's agreement was for one time settlement with the payment of Rs.8.02 crores. In line of the same provisions of Rs.8.02 crores has been made in the books of accounts and Rs.4.87 crores is shown as contingent liability.

25. The statutory dues are deposited regularly with the appropriate authority as stipulated under the Statutory Act.

26. The committee appointed for physical verification has ascertained, on the basis of technical evaluation, that there has been no impairment in the value of the assets at which they are appearing in the books of accounts.

27. The net block of Plant & Machinery and vehicles includes an amount of Rs.26,30 thousands and Rs.34 thousands respectively being the items retired from Active use. However no provision has been made considering that there will be no loss at the time of sale as the estimated realizable value of such assets will be more than their book value.

28. As per Accounting Standard- 18, issued by the Institute of Chartered Accountants of India, the disclosures of transactions with the related party as defined in the Accounting Standard are given below:- ) List of related parties with whom transactions have taken place and relationships:- ) Joint Ventures:-

i) Jamal NBCC International(Proprietary) Limited

ii) IJM - NBCC - VRM ) Key Managerial Personnel:-

iii) Mr. Arup Roy Choudhury, CMD

iv) Mr. S.Shankar, Director(Projects)

v) Mr. B.L. Bajaj, Director(Finance)

Deferred Tax Assets / (Liabilities) of Rs.6,14,98 thousands as at 01.04.2004 includes Rs.31,16 thousands which was not considered in the previous year but has been accounted for in current year.

Note: 1) Since Corporation is yet to pay its 49% ownership interest the information as per vi(a) to (f) of (1) above are not applicable.

2) The results of Joint Venture IJM - NBCC - VRM have not been received hence not accounted for.

Note:- i) Cash and Cash equivalents consist of cash in hand and balances with banks. Cash and cash equivalents included in the cash flow statement comprise the following balance sheet amount.

ii) Cash and cash equivalents at the end of 31.03.2005 include deposits with Banks amounting to Rs. 11,28,60 thousands which are not freely remissible to the Company.

iii) The above Cash Flow Statement has been prepared in accordance with the requirement of Accounting Standard-3 " Cash Flow Statement" issued by the Institute of Chartered Accountants of India.

iv) Figures in brackets indicate cash outgo.

29. Chairman-cum-Managing Director and full time Directors have used company's car Including for private journeys on payment of prescribed charges in accordance with the Government of India, Ministry of Finance BPE's circular No.2(28)/83-BPE(we) dated 17.11.1983 read with the Government of India, Ministry of Finance BPE's circular No.4/(12)/82-BPE(we) dated 01.04.1987 and DPE OM No.2(53).90-DEP (wc)-GIV dated 26.03.1999. Since recovery for personal use of car is being made, use of company's car is not considered as a perquisite.

30. Minus figures have been shown in brackets.

31. Previous years figures have been regrouped/recast/rearranged wherever deemed necessary in order to make them comparable to the presentation adopted for the year under report.

---

Mar 31, 2004

1. (Rs. in thousands) 2003-2004 2002-2003

1. CONTINGENT LIABILITIES:-

(a) (i) Claims against the Corporation not acknowledged as debts. Counter claims of the Corporation against these claims amounting to Rs.250,73,68 thousands (Previous year Rs.247,32,39 thousands) not accounted for in books. 342,14,80 336,15,75

(ii) Bank Guarantees for performance, EMD and Security Deposit 59,91,27 60,97,66

(b) (i) The Corporation had paid tax in earlier years in Libya on profits based on accounts audited by local auditors. Additional demand for tax amounting to LD 6,716,079.430 equivalent to Rs.57,37,54 thousands (previous year LD 6,716,079.430 equivalent to Rs.57,37,54 thousands) based on turnover etc., for the years from 1977-78 to 1989-90 raised by the tax department of the said foreign country has not been accepted by the Corporation and not provided for. The Corporation has filed appeal / objections against the above demand under the local tax laws. 57,37,54 57,37,54

(ii) The Govt. guarantee charges on internal/external borrowings, except omnibus Government Guarantee of Rs.50,00,00 thousands, have not been accounted for as the matter regarding waiver of these charges has been taken up with the Govt. of India, Ministry of Urban Development (MOUD). 21,23,18 17,07,27

(iii) Recovery at penal rate on account of excess consumption of material over theoretical norms for the materials supplied by the clients at issue price and free of cost, pending final settlement with the clients. NOT ASCERTAINABLE

(iv) Letters of credit opened but not -- -- utilised.

2. Fixed Deposits / Deposits with scheduled/non-scheduled banks for Rs.92,51,95 thousands (previous year 44,89,61 thousands) including Rs.89,88,00 thousands (previous year Rs.42,00,00 thousands) for issuing of bank guarantees, are under lien with banks as per arrangements with them

3. Inventory valuing Rs.21,89 thousands (previous year Rs.22,05 thousands) and Plant & Machinery valuing Rs. 2,08 thousands (previous year Rs. 2,08 thousands) (written down value) in respect of Punjab Bridge Works, Vashi Railway Station and CCI Yerraguntala Works are impounded and under the custody of clients.

4. An amount of Rs. 11,28,60 thousands (Previous year Rs. 11,28,60 thousands) lying with Rasheed Bank, Iraq can not be repatriated to India. Balance confirmation for this amount is not available from the Bank.

5. The physical verification report of fixed assets as on 31st March,2004 is pending for reconciliation with books records. Discrepancies, if any, will be accounted for on completion of reconciliation.

However provision for stamp duties payable on execution of lease/title deeds have been made in respect of (i) & (iii) under Fixed Assets and (i) & (ii) under work in progress.

6. In respect of closed projects (other than foreign projects), there are outstanding dues amounting to Rs.65,21,48 thousands (Previous year Rs.60,70,94 thousands) on account of Sundry Debtors, which are for more than three years. Provision has not been considered for these amounts as Corporation considered these as good for recovery in view of dues outstanding from Govt./PSU's and other Departments.

7. Due to pending decision regarding grant of extension of time, provision for Rs.1,89,54 thousands (previous year Rs.1,86,37 thousands) in respect of amounts withheld by clients on account of delay in completion of the Inland projects has not been made.

8. A sum of Rs. 70,01,44 thousands (Previous year Rs. 70,01,44 thousands) is outstanding in respect of Iraqi Projects. This represents:

k) An amount of Rs.38,03,81 thousands (previous year Rs.38,03,81 thousands) including interest of Rs. 24,86,52 thousands (Previous year of Rs.24,86,52 thousands) recoverable from Exim Bank of India, under Deferred Payment Agreement (DPA) between Government of Iraq and Government of India. The above amount includes Rs.14,44,36 thousands (Previous year Rs.14,44,36 thousands) due from Iraqi Projects for which DPA agreement is pending for renewal since January,1991.

ii) An amount of Rs.20,93,20 thousands (previous year Rs.20,93,20 thousands) on account of war claims pending for approval from clients in respect of projects covered under DPA.

iii) An amount of Rs.11,04,43 thousands (Previous year Rs.11,04,43 thousands) under cash contract is pending due to UN sanctions.

9. A sum of Rs.62,43,19 thousands (Net) (Previous year Rs.62,43,19 thousands - Net) is outstanding in respect of Libyan projects. This represents:

i) An amount of Rs. 48,36,41 thousands (Previous year Rs.48,36,41 thousands) recoverable from Libyan Government in respect of two projects which were completed prior to 1990, for which dues are not forthcoming due to US sanctions. Efforts are being made to realise the dues through diplomatic channels.

ii) An amount of Rs. 14,06,78 thousands (Previous year Rs. 14,06,78 thousands) recoverable from Airport Authority of India (AAI), which was a subject matter for Arbitration. The Arbitration award in favour of NBCC has since been obtained. However, the award has not been implemented against AAI as AAI has asked for the release of Bank Guarantee which was executed by AAI to Libyan Custom Department for import of machinery by NBCC. The matter is under pursuance with Libyan authorities through diplomatic channels.

10. A sum of Rs. 19,00,56 thousands (previous year Rs. 19,00,56 thousands) is outstanding towards security deposit in respect of Libyan projects. This represents:

i) An amount of Rs.8,75,99 thousands (Previous year Rs. 8,75,99 thousands) recoverable from Libyan Government in respect of two projects which were completed prior to 1990, for which amount is not forthcoming due to US sanctions. Efforts are being made to realise the dues through diplomatic channels.

ii) An amount of Rs. 10,24,57 thousands (Previous year Rs.10,24,57 thousands) recoverable from Airport Authority of India (AAI) which was a subject matter for Arbitration. The Arbitration award in favour of NBCC has since been obtained. However, the award has not been implemented against AAI as AAI has asked for the release of Bank Guarantee which was executed by AAI to Libyan Custom Department for import of machinery by NBCC. The matter is under pursuance with Libyan authorities through Diplomatic channels.

11. Ministry of Urban Development (MOUD) vide letter No.0-17031/22/80-PS dated 14.03.95 had conveyed decision that Ministry of Finance(MOF) has no objection in giving grant of Rs. 26,00,00 thousands for repayment of OIDB loan and interest amounting to Rs. 13,00,00 thousands each. Corporation had taken into account grant of Rs. 13,00,00 thousands in 1993-94 and Rs. 13,00,00 thousands in 1994- 95. MOF has released Rs. 13,00,00 thousands as grant vide letter No.0- 17031/22/80-PS (Vol. III) dated 10.01.1997. The matter for the release of the balance grant is under follow up with the MOUD.

12. Current liabilities include Rs. 26,63,76 thousands (previous year Rs. 26,63,76 thousands) and Rs. 17,67,03 thousands (Previous year Rs. 17,67,03 thousands) received from MOUD and ECGC during the earlier years on account of outstanding dues in respect of Iraqi Projects covered under INDO-IRAQ Government to Government Deferred Payment Arrangement (DPA) and Cash Contract are pending for reconciliation/clearance.

13. In closed units of domestic projects, foreign projects and some running units debit and credit balances of steel & cement, Suppliers, PRWs, Employees, Provident Fund, expenses payable and other parties and suppliers including large and/or old balances are outstanding and are subject to reconciliation/clearance/set-off. Review/reconciliation/clearance of these balance is under progress. In some units VWD, Sundry Debtors, Security Deposits and other balances as per unit records and accounts maintained at Zonal Offices are pending reconciliation. The effect on Balance Sheet and Profit & Loss Account of the year of such review/reconciliation & clearance can not be ascertained now.

14. Debtors, Creditors and Loans & Advances in so far as these have not been subsequently realised or discharged are subject to confirmation and reconciliation.

15. The company has duly complied with the Accounting Standards referred to in clause 3(c) of Section 211 of the Companies Act,1956 except in respect of Accounting Standard-7 (Paras 35, 12 & 13), for the reasons mentioned hereunder:

- Foreseeable losses not being provided, as these losses are not ascertainable till completion of projects. Financial impact of the same is not ascertainable.

- Claims & variations arising under construction contracts are not accounted for strictly as per Accounting Standard. Claims as considered realisable by the Management are only taken into accounts. Financial impact of the same is not ascertainable.

16. No provision for Dividend on Preference Shares has been made in view of the unabsorbed depreciation under Section 205 of the Companies Act, 1956.

17. Income Tax paid amounting to Turkish Lira 35831300000 equivalent to India Rs. 10,44 thousands (Previous year Turkish Lira 87657720000 equivalent to Indian Rs. 24,54 thousands) pertains to projects in Turkey.

18. Unclaimed liabilities and other credit balances outstanding since previous years amounting to Rs. 5,90,84 thousands (previous year Rs. 1,93,20 thousands) have been written-back in the books under the head "Unadjusted credit balances written- back" being not payable consequent to a review of such accounts during the year which is a regular continuous process.

19. The accounts of Libyan and Iraqi Projects have been translated into Indian Currency at the closing buying rates prevailing as on 31.03.2001 since the rates after this date were not available, as these currencies are not frequently traded. Financial impact on the same is not ascertainable.

20. The Corporation has represented to the Ministry of Urban Development for waiver of interest on land cost at Pragati Vihar, New Delhi which could not be paid in terms of allotment letter No.J-13026/2/85-LD dated 27.03.1991 and for which provision of Rs.25,46,90 thousands was made in the accounts upto 31.03.2000. The representation has been made on the ground that out of the total space built in the Pragati Vihar Complex area measuring 3800 Sq.Mtr. has been sold to DMRC at concessional rates vide Ministry letter No.J-13026/6/97-LD dated 17.03.1997. Had the space been sold at the prevailing market rate, NBCC would have realised an additional sum of Rs. 25,64,00 thousands approximately. Keeping this in view the existing liability of Rs. 25,46,90 thousands alongwith provision of interest from 01.04.2000 to 31.03.2004 of Rs. 20,68,49 thousands (Previous year Rs.14,55,95 thousands) has been treated as Contingent Liability.

21. MOUD vide letter No.0-17031 /11 /94-PS(VIII) dated 28.11.1997 has allowed NBCC to encash RBI Bonds amounting to Rs. 6,00,00 thousands to enable NBCC to meet the claims of M/s IRCON. Accordingly liability of MOUD amounting to Rs. 7,63,08 thousands including interest upto 31.03.2000 has been written-back during 2000- 2001 and has been shown under contingent liability.

22. Arbitration awards are accounted for on the basis of Rule of Court.

23. Till previous year work executed at project upto 20% of the contract value except for cost plus/deposit/project management works was classified under work-in-progress (WIP). From the financial year 2003-2004 as per the revised Accounting Standard-7 (AS-7), the quantum of work executed at project irrespective of any percentage is classified under value of work done instead of work-in-progress(WIP) except expenditure incurred in preparatory works on Defence Housing Projects.

The provision for gratuity and leave encashment in respect of all the employees of the Corporation has been made on actuarial basis.

Financial impact due to above change in policies is not ascertainable.

24. Due to change in assumption of interest rates from 8.5% to 7.5% for actuarial valuation of Gratuity and Leave Encashment, Provision for Gratuity and Leave Encashment during the year is higher by Rs. 60,00 thousands and Rs. 40,00 thousands respectively.

25. Govt. of India issued subscribed and fully paid up 7% non-cumulative preference shares redeemable in 10 years upto 31.03.2007 for Rs. 30.00 crore. As per the guidelines issued by Govt. of India vide letter No.0-17031/38/94-PS dated 20.11.1998 the shares are redeemable in 10 years. Hence the provision for yearly redeemable shares not considered because the guidelines do not specify for yearly redemption of shares.

26. There is a special rupee loan from Syndicate Bank with a progressive liability for Rs.45,43,92 thousands (Principal amount Rs. 35,72,24 thousands and interest accrued Rs. 9,71,68 thousands) as on 31.03.2004. The one time settlement with Syndicate Bank is in the advance stage of completion. In view of this the amount appearing as unsecured loan is considered adequate.

27. As per Accounting Standard- 18, issued by the Institute of Chartered Accountants of India, the disclosures of transactions with the related party as defined in the Accounting Standard are given below:- ) List of related parties with whom transactions have taken place and relationships:- ) Joint Ventures:-

h) Jamal NBCC International(Proprietary) Limited

ii) IJM - NBCC - VRM

) Key Managerial Personnel:-

h) Mr. Arup Roy Choudhury, CMD

ii) Mr. S.Shankar, Director(Projects)

iii) Mr. B.L. Bajaj, Director(Finance)

Note: Since Corporation is yet to pay its 49% ownership interest the information as per vi(a) to (f) of (1) above are not applicable.

Note:- i) Cash and Cash equivalents consist of cash in hand and balances with banks. Cash and cash equivalents included in the cash flow statement comprise the following balance sheet amount.

i) Cash and cash equivalents at the end of 31.03.2004 include deposits with Banks amounting to Rs. 11,28,60 thousands which are not freely remissible to the Company.

i) The above Cash Flow Statement has been prepared in accordance with the requirement of Accounting Standard-3 " Cash Flow Statement" issued by the Institute of Chartered Accountants of India.

i) Figures in brackets indicate cash outgo.

28. Chairman-cum-Managing Director and full time Directors have used company's car Including for private journeys on payment of prescribed charges in accordance with the Government of India, Ministry of Finance BPE's circular No.2(28)/83-BPE(wc) dated 17.11.1983 read with the Government of India, Ministry of Finance BPE's circular No.4/(12)/82-BPE(wc) dated 01.04.1987 and DPE OM No.2(53).90-DEP (wc)-GIV dated 26.03.1999. Since recovery for personal use of car is being made, use of company's car is not considered as a perquisite.

29. Minus figures have been shown in brackets.

30. Previous year's figures have been recognised / recast / rearranged, wherever necessary in order to conform to this year's presentation.