RNS Number : 3564W
Noida Toll Bridge Co. Ltd.
24 December 2013
Noida Toll Bridge Company Limited
("Noida Toll Bridge" or the "Company")
Interim Results for half year ended 30 September 2013
The Board of Directors of Noida Toll Bridge have today approved the Company's audited results for the half year ended 30 September 2013.
The interim results released today have been prepared under IFRS. In terms of the Listing Agreement signed with the Indian Stock Exchanges, results under Indian GAAP were released to the market on 25 October 2013 (RNS: 4040R) on AIM, BSE and NSE simultaneously.
Noida Toll Bridge Company Limited
Harish Mathur
+91 (12) 0251 6380
Libertas Capital Corporate Finance Limited
Sandy Jamieson
+44 (20) 3697 9495
NOIDA TOLL BRIDGE COMPANY LIMITED AND ITS SUBSIDIARY COMPANY
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER, 2013
Note
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 March, 2013 US ($)
Assets
Non Current Assets
Property, Plant and Equipment
2
887,309
1,117,539
1,070,507
Capital Work in Progress
3
-
23,200
8,731
Intangible Asset
4
84,004,799
101,075,717
97,413,042
Loans and Advances
5
43,920
51,473
48,802
84,936,028
102,267,929
98,541,082
Current Assets
Inventories
6
39,051
68,773
80,804
Trade Receivables
7
293,261
428,390
313,793
Loans and Advances
5
740,508
743,433
780,867
Prepayments
109,794
124,783
62,899
Available-for-Sale Investments
8
7,128,683
7,955,679
9,610,647
Cash and Cash Equivalents
9
3,334,644
2,241,163
857,065
11,645,941
11,562,221
11,706,075
Total Assets
96,581,969
113,830,150
110,247,157
Equity and Liabilities
Issued Capital
10
42,419,007
42,419,007
42,419,007
Securities Premium
11
23,136,089
27,561,360
26,704,976
Debenture Redemption Reserve
11
634,453
597,203
650,755
Net Unrealised Gains Reserve
11
4,486
22,248
55,039
General Reserve
11
8,011
9,544
9,247
Effect of Currency Translation
(17,906,529)
(9,494,122)
(11,022,304)
Retained earnings
19,987,595
16,444,246
19,769,014
Total
68,283,112
77,559,486
78,585,734
Non Controlling Interest
(55,696)
(2,644)
(24,160)
Total Equity
68,227,416
77,556,842
78,561,574
Non Current Liabilities
Interest-bearing Loans and Borrowings
12
4,151,641
10,630,404
5,115,086
Provisions
13
195,615
2,251,345
153,786
Trade and other payables
15
514,621
572,668
555,701
Deferred Tax Liability
14
8,664,180
8,005,232
9,093,922
Current Liabilities
Interest-bearing Loans and Borrowings
12
5,200,417
8,791,234
10,398,916
Trade and Other Payables
15
5,314,974
3,699,965
2,203,928
Provisions
13
4,236,153
2,111,369
4,156,160
Provision for Taxes
76,952
211,091
8,084
Total Liabilities
28,354,553
36,273,308
31,685,583
Total Equity and Liabilities
96,581,969
113,830,150
110,247,157
In terms of our report of even date On Behalf of the Board of Directors
For Luthra & Luthra
Chartered Accountants
Reg. No. 002081N
Amit Luthra Director Executive Director & CEO
Partner
(M. No 85847)
Place: Noida
Date: 20.12.2013 AVP Company Secretary
NOIDA TOLL BRIDGE COMPANY LIMITEDAND ITS SUBSIDIARY COMPANY
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 30 SEPTEMBER 2013
Note
Half Year ended 30 Sept, 2013 US ($)
Half Year ended 30 Sept, 2012 US ($)
Year ended 31 Mar, 2013 US ($)
Toll Revenue
8,255,424
7,626,040
16,314,980
License Fee
1,564,532
1,702,754
3,452,070
Miscellaneous Income
48,890
334,520
370,580
Total Income
9,868,846
9,663,314
20,137,630
Operating and Administrative Expenses
- Operating Expenses
16
1,113,666
1,286,091
2,383,477
- Administrative Expenses
16
1,928,645
1,588,632
3,727,548
- Depreciation
2
85,229
96,089
190,318
- Amortisation
4
414,043
322,594
845,798
Total Operating and Administrative Expenses
3,541,583
3,293,406
7,147,141
Group Operating Profit from Continuing Operations
6,327,263
6,369,908
12,990,489
Profit on Sale of Investments
371,001
426,875
819,613
Finance Charges
17
(681,853)
(1,072,490)
(1,998,581)
(310,852)
(645,615)
(1,178,968)
Profit from Continuing Operations before taxation
6,016,411
5,724,293
11,811,521
Income Taxes:
- Current Taxes
(1,275,714)
(1,128,448)
(2,477,762)
- Deferred Tax
14
(834,356)
(1,126,257)
(2,468,209)
Profit/(Loss) after tax for the period
3,906,341
3,469,588
6,865,550
Other Comprehensive Income
Gain on fair valuation of available for sale investments
(50,553)
5,456
38,247
Debenture Redemption Reserve
(70,666)
(74,829)
(144,612)
Effect of Currency translation
(10,541,316)
(2,218,896)
(4,619,990)
Total Other Comprehensive Income
(10,662,535)
(2,288,269)
(4,726,355)
Total Comprehensive Income
(6,756,194)
1,181,319
2,139,195
Profit Attributable to
Equity Shareholders
3,943,265
3,468,843
6,886,375
Non Controlling Interest
(36,924)
745
(20,825)
3,906,341
3,469,588
6,865,550
Comprehensive Income attributable to
Equity Shareholders
(6,719,270)
1,180,574
2,160,020
Non Controlling Interest
(36,924)
745
(20,825)
(6,756,194)
1,181,319
2,139,195
Profit per share - basic and diluted for the period
18
0.021
0.0186
0.037
In terms of our report of even date On Behalf of the Board of Directors
For Luthra & Luthra
Chartered Accountants
Reg. No. 002081N
Amit Luthra Director Executive Director & CEO
Partner
(M. No 85847)
Place: Noida
Date: 20.12.2013 AVP Company Secretary
NOIDA TOLL BRIDGE COMPANY LIMITED AND ITS SUBSIDIARY COMPANY
CONSOLIDATED STATEMENT OF CASH FLOW FOR THE HALF YEAR ENDED 30th SEPTEMBER, 2013
Half Year ended 30 Sept, 2013 US ($)
Half Year ended 30 Sept, 2012 US ($)
Year ended 31 Mar, 2013 US ($)
A. Cash Flow from Operating Activities
Receipts from Customers
9,889,147
9,322,144
19,892,762
Payment to Suppliers and Employees
(2,044,030)
(2,512,858)
(5,049,655)
Deposits, Advances and Staff Loan
(2,051)
(15,744)
(14,012)
Purchase of Inventories
(3,623)
(83,811)
(141,831)
Income Tax Paid
(1,195,954)
(1,039,214)
(2,679,387)
Net Cash from/(used in) Operating Activities (A)
6,643,489
5,670,517
12,007,877
B. Cash Flow from Investment Activities
Purchase of Fixed Assets
(34,569)
(131,492)
(200,182)
Proceeds from 'Available for Sale' Investments
46,417,994
40,231,568
75,445,591
Purchase of 'Available for Sale' Investments
(44,820,933)
(40,962,924)
(77,657,003)
Proceeds from Sale of fixed assets
3,516
212
5,078
Net Cash from/ (used in) Investment Activities (B)
1,566,008
(862,636)
(2,406,516)
C. Cash flow from Financing Activities
Dividend & Dividend Tax Paid
(3,685,313)
(1,976,621)
(1,987,266)
Repayment of Term Loan to Banks, Financial Institutions and Others
(4,045,252)
(2,574,662)
(6,095,023)
Interest and Finance Charges Paid
(875,473)
(1,211,522)
(2,106,555)
Net Cash from/ (used in) Financing Activities (C)
(8,606,038)
(5,762,805)
(10,188,844)
Net Increase/ (Decrease) in Cash and Cash Equivalents (A+B+C)
In terms of our report of even date On Behalf of the Board of Directors
For Luthra & Luthra
Chartered Accountants
Reg. No. 002081N
Amit Luthra Director Executive Director & CEO
Partner
(M. No 85847)
Place: Noida
Date: 20.12.2013 AVP Company Secretary
NOIDA TOLL BRIDGE COMPANY LIMITEDAND ITS SUBSIDIARY COMPANY
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 30 SEPTEMBER, 2013
(in US$)
Issued capital
Securities Premium
Effect of Currency translation Reserve
General Reserve
Retained earning
Unrealized Gains Reserve
Debenture Redemption Reserve
Equity
Non Controlling Interest
Total Equity
As At April 1, 2012
42,419,007
28,391,002
(8,120,879)
9,831
15,037,534
16,792
538,098
78,291,385
(3,521)
78,287,864
Comprehensive Income
-
-
-
-
3,468,843
-
-
3,468,843
745
3,469,588
Fair value change on available for sale investments
-
-
-
-
-
5,456
-
5,456
-
5,456
Creation of Debenture Redemption Reserve
-
-
-
-
(74,829)
-
74,829
-
-
-
Final Dividend
-
-
-
-
(1,700,722)
-
-
(1,700,722)
-
(1,700,722)
Dividend Tax
-
-
-
-
(286,580)
-
-
(286,580)
-
(286,580)
Difference for currency translation
-
(829,642)
(1,373,243)
(287)
-
-
(15,724)
(2,218,896)
132
(2,218,764)
As At Sept 30,2012
42,419,007
27,561,360
(9,494,122)
9,544
16,444,246
22,248
597,203
77,559,486
(2,644)
77,556,842
As at April 1, 2013
42,419,007
26,704,976
(11,022,304)
9,247
19,769,014
55,039
650,755
78,585,734
(24,160)
78,561,574
Comprehensive Income
-
3,943,265
3,943,265
(36,924)
3,906,341
Fair value change on available for sale investment
-
-
-
-
-
(50,553)
-
(50,553)
-
(50,553)
Creation of Debenture Redemption Reserve
-
-
-
-
(70,666)
-
70,666
-
-
-
Proposed Dividend
-
-
-
-
(3,149,975)
-
-
(3,149,975)
-
(3,149,975)
Dividend Tax
-
-
-
-
(504,043)
(504,043)
-
(504,043)
Difference for currency translation
-
(3,568,887)
(6,884,225)
(1,236)
-
-
(86,968)
(10,541,316)
5,388
(10,535,928)
At Sept 30, 2013
42,419,007
23,136,089
(17,906,529)
8,011
19,987,595
4,486
634,453
68,283,112
(55,696)
68,227,416
Half Year ended 30 Sept, 2013 Rs.
Half Year ended 30 Sept, 2012 Rs.
Final Dividend For 2011-12@ USD 0.01 per Share
1,700,722
Final Dividend For 2012-13 @ USD 0.02 per Share
3,149,975
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Corporate Information
Noida Toll Bridge Company Limited (NTBCL) is a public limited company incorporated and domiciled in India on 8th April 1996 with its registered office at Toll Plaza, DND Flyway, Noida - 201301, Uttar Pradesh, India. The equity shares of NTBCL are publicly traded in India on the National Stock Exchange and Bombay Stock Exchange. NTBCL launched the issue of global depository receipts (GDRs) represented by equity shares in March 2006 which are traded on Alternate Investment Market (AIM) of the London Stock Exchange.
The NTBCL has been set up to develop, establish, construct, operate and maintain a project relating to the construction of the Delhi Noida Toll Bridge under the "Build-Own-Operate-Transfer" (BOOT) basis. The Delhi Noida Toll Bridge comprises the Delhi Noida Toll Bridge, adjoining roads and other related facilities, the Ashram flyover which has been constructed at the landfall of the Delhi Noida Toll Bridge and the Mayur Vihar Link and it operates under a single business and geographical segment (Refer Note 28).
(b) Service Concession Arrangement entered into between IL&FS, NTBCL and NOIDA
A 'Concession Agreement' entered into between the NTBCL, Infrastructure Leasing and Financial Services Limited (IL&FS, the promoter company) and the New Okhla Industrial Development Authority, Government of Uttar Pradesh, conferred the right to the Company to implement the project and recover the project cost, throu--gh the levy of fees/ toll revenue, with a designated rate of return over the 30 years concession period commencing from 30 December 1998 i.e. the date of Certificate of Commencement, or till such time the designated return is recovered, whichever is earlier. The Concession Agreement further provides that in the event the project cost together with the designated return is not recovered at the end of 30 years, the concession period shall be extended by 2 years at a time until the project cost and the return thereon is recovered. The rate of return is computed with reference to the project costs, cost of major repairs and the shortfall in the recovery of the designated returns in earlier years. As per the certification by the independent auditors, the total recoverable amount comprises project cost and 20% designated return. NTBCL shall transfer the Project Assets to the New Okhla Industrial Development Authority in accordance with the Concession Agreement upon the full recovery of the total cost of project and the returns thereon.
New Okhla Industrial Development Authority had initiated preliminary discussion with the Company to consider modification of some the terms and conditions of the Concession Agreement. Pending Final outcome of such discussions, the accounts have been prepared based on extant Concession Agreement. Further details of concession agreement are given in Note 29.
(c) Basis of preparation
The consolidated financial statements of Noida Toll Bridge Company Limited and its subsidiary ('the Group') have been prepared in accordance with International Financial Reporting Standards (IFRS) and interpretations as laid down by the International Financial Reporting Interpretations Committee (IFRIC)
These consolidated financial statements have been drawn up in accordance with the going-concern principle and on a historical cost basis, except for available-for sale investments and Intangible Asset that have been measured at fair value. The presentation and grouping of individual items in the Statement of financial position, the statement of comprehensive income and the statement of cash flow, as well as the changes in equity, are based on the principle of materiality.
(d) Significant accounting judgments and estimates
The preparation of financial statements in conformity with IFRS requires management to make estimates, Judgements and assumptions. Judgements and estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Judgements
In the process of applying the Group's accounting policies, management has made the following judgments, apart from those involving estimations, which have the most significant effect on the amounts recognised in the financial statements:
Recognition of Concession Agreement as an Intangible Asset
(i) Basis of accounting for the service concession
The Group has determined that IFRIC 12 Service Concession Arrangements is applicable to the Concession Agreement and hence has applied it in accounting for the concession. The directors have determined that the intangible asset model in IFRIC 12 Service Concession Arrangement is applicable to the concession. In particular, they note that users pay tolls directly so the grantor does not have the primary responsibility to pay the operator.
In order to facilitate the recovery of the project cost and 20% designated returns through collection of toll and development rights, the grantor has guaranteed extensions to the terms of the Concession, initially set at 30 years. The Group has received an "in-principle" approval for development rights from the grantor. However the Group has not yet entered into any agreement with the grantor which would constitute an assurance from the grantor to facilitate the recovery of shortfalls. Management recognizes that the development right agreement when executed will give rise to intangible assets in their own right.
Disclosures for Service Concession Arrangement as prescribed under SIC 29 Service Concession Arrangements - Disclosure have been incorporated into the financial statements.
(ii) Significant assumptions in accounting for the intangible asset
On completion of construction of the Delhi Noida Toll Bridge (6 February 2001), the rights under the Concession Agreement have been recognized as an intangible asset, received in exchange for the construction services provided. Construction costs include besides others, expenditure incurred and provisions for outstanding capital commitments on the Ashram Flyover, which was significantly completed on the date of recognition of the intangible asset. This section of the bridge was commissioned on 30th October 2001. The intangible asset received has been measured at fair value of the construction services as of US$ 112,391,294 as on the date of commissioning. The Group has recognized a profit of US$ 32,591,491, which is the difference between the cost of construction services rendered (the cost of the project asset of US$ 79,799,802) and the fair value of the construction services.
The Directors have concluded that as operators of the bridge, they have provided construction services to NOIDA, the grantor, in exchange for an intangible asset, i.e. the right to collect toll from road-users during the Concession period.
Accordingly, the Group has measured the intangible asset at cost, i.e. the fair value of the construction services as at 6 February 2001, the date of completion of construction and commissioning of the asset.
The key assumptions used in establishing the cost of the intangible asset are as follows:
Ø Construction of the DND Flyway commenced in 1998 and was completed on 6 February 2001. The exchange of construction services for an intangible asset is regarded as a transaction that generates revenue and costs, which have been recognized by reference to the stage of completion of the construction. Contract revenue has been measured at the fair value of the consideration receivable. Hence in each of the years of construction, construction revenue has been calculated at cost plus 17.5% and the corresponding construction profit has been recognized through retained earnings.
Ø Management has capitalised qualifying finance expenses until the completion of construction.
Ø The intangible asset is assumed to be received only upon completion of construction. Until then, management has recognised a receivable for its construction services. The fair value of construction services have been estimated to be equal to the construction costs plus margin of 17.5% and the effective interest rate of 13.5% for lending by the grantor. The construction industry margins range between 15-20% and management has determined that a margin of 17.5% is both conservative and appropriate. The effective interest rate used on the receivable during construction is the normal interest rate which grantor would have paid on delayed payments.
Ø The intangible asset has been recognised on the completion of construction, i.e. 6th February 2001.
Ø The management considers that they will not be able to earn the designated return under the Concession Agreement over 30 years. The company has an assured extension of the concession as required to achieve project cost and designated returns (see Note 1(b) above). The company has estimated the life of the bridge to be of 100 years. Intangible asset is being amortised over the same useful life under unit of usage method.
Ø Development rights will be accounted for as and when exercised.
Construction of the Mayur Vihar Link commenced in 2006-07. NTBCL has obtained land from Noida for the construction of the Mayur Vihar Link vide Supplement to Noida Land Lease Deed executed between them. As per the terms of said lease deed Mayur Vihar Link Road will form part of Noida Bridge Project and the expenditure incurred by NTBCL on it shall be included in the cost of Noida Bridge with respect to the concession agreement. As the Mayur Vihar Link fall under the jurisdiction of Delhi Government, Municipal Corporation of Delhi vide confirmation agreement dated 9th January 2005 agreed not to declare the Mayur Vihar Link as public street and to recognize the right of NTBCL to operate and maintain the Mayur Vihar Link as a private street and charge user the fees in respect thereof. This right has been recognized as an intangible asset, received in exchange for the construction services provided to the grantor of the concession agreement. The intangible asset received has been measured at fair value of construction services as of US $ 15,961,837. The Group has recognized a profit of US $ 3,662,423 which is the difference between the cost of construction services rendered (the cost of project asset of US$ 12,299,414) and the fair value of the construction services.
The key assumptions used in establishing the cost of the intangible asset (i.e. right to collect toll on Mayur Vihar Link) are as follows:
Ø Construction commenced in June 2006 and was completed on January 19, 2008. The exchange of construction services for an intangible asset is regarded as a transaction that generates revenue and costs, which have been recognized by reference to the stage of completion of the construction. Contract revenue has been measured at the fair value of the consideration receivable. Hence in each of the years of construction, construction revenue has been calculated at cost plus 17.5% and the corresponding construction profit has been recognized through construction revenue.
Ø Management has capitalised qualifying finance expenses until the completion of construction.
Ø The intangible asset is assumed to be received upon the completion of the construction and during the construction phase, management has recognised it as additions to the Intangible assets. The fair value of construction services have been estimated to be equal to the construction costs plus margin of 17.5% and the effective interest rate of 12.5% for lending by the grantor. The construction industry margins range between 15-20% and management has determined that a margin of 17.5% is both conservative and appropriate. The effective interest rate used on the receivable during construction is the normal interest rate which grantor would have paid on borrowing obtained.
Ø The management considers that they will not be able to earn the designated return under the Concession Agreement over 30 years. The company has an assured extension of the concession as required to achieve project cost and designated returns (see Note 1(b) above). As the lease period for the land is coterminous with the concession agreement and the estimated remaining useful life of the bridge, this intangible asset was being amortised over the remaining life of the Delhi Noida Toll Bridge from the date of commissioning of the Mayur Vihar Link Road. Intangible asset is being amortised over the same useful life under unit of usage method.
(e) Basis of Consolidation
The consolidated financial statements comprise the financial statements of Noida Toll Bridge Company Limited and its subsidiary ITNL Toll Management Services Limited. The financial statements of the subsidiary are prepared for the same reporting year as the parent company, using consistent accounting policies.
All intercompany balances and transactions, including unrealised profits arising from intra-group transactions, have been eliminated in full.
Subsidiary is fully consolidated from the date of acquisition, being the date on which the Group obtains control and continue to be consolidated until the date that such control ceases.
(f) Foreign Currency Translation
The functional currency of Noida Toll Bridge Company Limited and ITNL Toll Management Services Limited is Indian Rupees. Transactions in foreign currencies are initially recorded in the functional currency rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. All differences are taken to the income statement.
The presentation currency is US$. For the purpose of translation from functional currency to presentation currency, assets and liabilities for each balance sheet presented is translated at the closing rate at the date of that balance sheet. Income and expense for each income statement and cash flow statement presented is translated using a weighted average rate and all resulting exchange difference is recognised as a separate component of equity.
(g) Intangible Assets
Construction on the Delhi Noida Toll Bridge was completed and made operational on 6th February 2001. The Ashram Flyover's construction, which was significantly complete on that date, was commissioned on 30th October 2001. Collectively referred to as the "Bridge", the completed construction has been recognised as an intangible asset on 6th February 2001, in accordance with the guidelines given for recognition and measurement for service concession agreements on adoption of IFRIC 12, Service Concession Arrangement.
Construction on Mayur Vihar Link Road which has been completed and made fully operational on January 19, 2008 has been recognised as intangible asset, in accordance with the guidelines given for recognition and measurement for service concession agreements in IFRIC 12, Service Concession Arrangement.
The value of the intangible asset was measured on the date of completion of construction at the fair value of the construction services provided which has been recognised as the intangible asset's cost. The amortisation expense is recognised in the income statement as part of operating and administrative expenses. The carrying value is reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable.
Management reviews the estimated useful life of the rights and number of the vehicles expected to use the facility at periodical intervals.
Specific policies that apply to the intangible assets are as follows:
Ø Construction services
Construction services exchanged for the intangible asset included all costs that related directly to the construction of the Delhi Noida Toll Bridge / Mayur Vihar Link including valuation of all work done by subcontractors, whether certified or not, and all overheads other than those relating to the general administration of the Group.
Ø Construction profit
Construction profit is the difference between the fair value of the consideration receivable and the construction services provided in building the Bridge.
Ø Borrowing costs
Project specific borrowing costs were capitalised until the completion of construction services. Where funds are temporarily invested pending their expenditures on the qualifying asset, any investment income, earned on such fund is deducted from the borrowing cost incurred.
Ø Maintenance obligations
Contractual obligations to maintain, replace or restore the infrastructure (principally resurfacing costs and major repairs and unscheduled maintenance which are required to maintain the Bridge in operational condition except for any enhancement element) are recognised and measured at the best estimate of the expenditure required to settle the present obligation at the balance sheet date. The provision is discounted to its present value at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.
(h) Property, Plant and equipment
Plant and equipment is stated at cost less accumulated depreciation and accumulated impairment in value. Such cost includes the cost of replacing part of such plant and equipment when that cost is incurred if the recognition criteria are met.
The carrying values of plant and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition 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 in the year the asset is derecognised.
The asset's residual values, useful lives and methods are reviewed, and adjusted if appropriate, at each financial year end.
(i) Depreciation
Depreciation is calculated on a straight-line basis over the estimated useful life of the asset as follows:
Building 62 years
Data Processing Equipment 3 years
Office Equipment 5 years
Vehicles 5 years
Furniture & Fixtures 7 years
Advertisement Structure 5 years
(j) Investments and other financial assets
Financial assets (non derivative) are classified as either loans and receivables or available-for-sale financial assets, as appropriate. When financial assets are recognised initially, they are measured at fair value, plus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs. The Group determines the classification of its financial assets after initial recognition and, where allowed and appropriate, re-evaluates this designation at each financial year-end.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are carried at amortised cost using the effective interest method. Gains and losses are recognised in income when the loans and receivables are derecognised or impaired, as well as through the amortisation process.
Investments (Available-for-sale financial assets)
All investments are initially recognised at cost, being the fair value of the consideration given and including acquisition charges associated with the investment.
After initial recognition available-for sale financial assets are measured at fair value with gains or losses being recognised as a separate component of equity until the investment is sold, collected or otherwise disposed of or until the investment is determined to be impaired at which time the cumulative gain or loss previously reported in equity is included in the income statement.
(k) Inventories
Inventories of Electronic Cards (prepaid cards), "On Board Units" and consumables are valued at the lower of cost or net realisable value. Cost is recognised on First In First Out basis.
(l) Cash and Cash equivalents
Cash and cash equivalents in the balance sheet comprises of cash at bank and in hand.
(m) Interest bearing loans and borrowings
All loans and borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs.
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. Amortised cost is calculated by taking into account any transaction costs, and any discount or premium on settlement.
(n) Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a 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. Where the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the income statement net of any reimbursement. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as other finance expense
(o) Employee costs, Pensions and other post-employment benefits
Wages, salaries, bonuses, social security contributions, paid annual leave and sick leave are accrued in the year in which the associated services are rendered by employees of the Group.
The Group has three funded retirement benefit plans in operation viz. Gratuity, Provident Fund and Superannuation. The Superannuation Fund and Provident Fund are defined contribution schemes whereby the Group has to deposit a fixed amount to the fund every year / month respectively.
The Gratuity plan for the Group is a defined benefit scheme. The cost of providing benefits under gratuity is determined using the projected unit credit actuarial valuation method. Actuarial gains and losses are recognised in full in the period in which they occur and directly in equity through the income statement.
(p) Leases
Finance leases which transfer substantially all the risks and benefits incidental to ownership of the leased item, are capitalised at the inception of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged directly against income.
Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases. Operating lease payments are recognised as an expense in the income statement on the straight line basis over the lease term.
(q) Impairment
Where an indication of impairment exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or cash-generating unit's fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses of continuing operations are recognised in the income statement in those expense categories consistent with the function of the impaired asset.
(r) Derecognition of financial assets and liabilities
Financial assets
A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is derecognised where:
Ø the rights to receive cash flows from the asset have expired;
Ø the Group retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a 'pass-through' arrangement; or
Ø the Group has transferred its rights to receive cash flows from the asset and either (a) has transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
Where the Group has transferred its rights to receive cash flows from an asset and has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is recognised to the extent of the Group's continuing involvement in the asset. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay.
Financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.
Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in the income statement.
(s) Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue comprises:
Toll Revenue
Toll Revenue is recognised in respect of toll collected at the Delhi Noida Toll Bridge and the attributed share revenue from prepaid cards.
License Fee
License fee income from advertisement hoardings & office premises is recognised on an accruals basis in accordance with contractual obligations.
Service Charges
Service charges are recognised on accrual basis in respect of revenue recovered for the various business auxiliary services provided to the parties.
Interest income
Revenue is recognised as interest accrues (using the effective interest method that is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument to the net carrying amount of the financial asset).
Investment income
The profit or loss on sale of investments is the difference between the net sale consideration and the carrying amount. Related fair value movements are derecognised from net unrealised gains reserve and transferred to the income statement at the time of sale.
Other Income
Other income comprises service fee and miscellaneous income which are recognised on receipt basis.
(t) Income tax
Current tax represents the amount that would be payable based on computation of tax as per prevailing taxation laws under the Indian Income Tax Act, 1961.
Deferred income tax is provided using the liability method, on all temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences.
Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax assets and unused tax losses (where such right has not been forgone), to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax assets and unused tax losses can be utilised, except where the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of transaction, affects neither the accounting profit nor taxable profit or loss.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.
(u) Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use. Where funds are temporarily invested pending their expenditures on the qualifying asset, any such investment income, earned on such fund is deducted from the borrowing cost incurred.
All other borrowing costs are recognised as interest expense in the income statement in the period in which they are incurred.
(v) Share based payment transactions
Equity-settled, share option plan are valued at fair value at the date of the grant and are expensed over the vesting period, based on the Group's estimate of shares that will eventually vest. The total amount to be expensed over the vesting period is determined by reference to the fair value of the options granted, excluding the impact of any non-market vesting conditions. At each balance sheet date, the entity revises its estimates of the number of options that are expected to become exercisable. The share awards are valued using the Black-Scholes option valuation method.
The Group recognises the impact of the revision of original estimates, if any, in the income statement, with a corresponding adjustment to equity. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.
The dilutive effect of outstanding options is reflected as additional share dilution in the computation of earnings per share.
(w) Securities Premium
Securities premium represent the amount being difference between the issue price and the face value of the securities issued by the company. Securities premium have been recognized as separate component of the equity. Under the Indian Companies Act 1956, securities premium have restricted usage. Securities premium has been adjusted to the extent utilized for the purposes allowed under the Indian Companies Act, 1956 and disclosed in the statement of equity.
(x) Debenture Redemption Reserve
Debenture redemption reserve (DRR) represents the reserve created for the redemption of the Deep Discount Bond (DDBs). Under the Indian Companies Act 1956, DRR is to be created out of the profits for the year in financial statement prepared under Indian GAAP. The group recognized the DRR for an amount equal to the issue price of the DDBs by apportioning from the profit of the year under Indian GAAP a sum calculated under sum of digit method. DRR has been recognized as separate component of equity. On redemption of the DDBs, DRR is to be transferred to general reserve.
(y) Fair Value Measurement
The company measures financial instruments, such as, available for sale investment and non-financial assets such as intangible assets, at fair value at each balance sheet date.
Fair Value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair Value Measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
· In the principal market for the asset or liability
· In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible to by the company. The fair value of an asset or a liability is measured using the assumption that market participants would use when pricing the asset or liability assuming that market participants act in their economic best interest.
A fair value measurement of a non financial asset takes into account a market participants ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
The company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured and disclosed financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
· Level 1 - Quoted (Unadjusted) market prices in active markets for identical assets or liabilities.
· Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
· Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For assets and liabilities that are recognized in the financial statements on a recurring basis the company determines whether transfers have occurred levels in hierarchy by reassessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
(z) Dividend
Final dividends on shares are recorded as liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company's Boards of Directors.
(za) New Accounting standards:
The group has adopted the following new standards and amendments to standards, including any consequential amendments to other standards w.e.f. April 01, 2013
a) IFRS 10 Consolidated Financial Statements
b) IFRS 11 Joint Arrangements
c) IFRS 12 Disclosure of Interests in Other Entities
d) IFRS 13, Fair Value Measurement
e) IAS 1 Presentation of Financial Statements
f) IAS 19(Amended), Employee Benefits
Adoption of these standards are either not relevant to or have no significant impact on the financial statement.
New Standards to be applicable at later date
In November 2009, IASB has issued IFRS 9 "Financial Instruments on the classification and measurement of financial assets". IFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost or fair value, replacing the many different rules in IAS 39. The approach in IFRS 9 is based on how an entity manages its financial instruments (its business model) and the contractual cash flow characteristics of the financial assets. IFRS 9 was further amended in October 2010 and such amendment introduced requirement on accounting for financial liabilities. This amendment addresses the issue of volatility in the profit or loss due to changes in the fair value of an entity's own debt. IFRS 9 is effective for fiscal years beginning on or after January 1, 2015. Earlier application is permitted.
In December 2011, the IASB issued amendments to IAS 32, Offsetting Financial Assets and Financial Liabilities which clarify when an entity has a legally enforceable right to set-off and when gross settlement is equivalent to net settlement The group is required to adopt amendments to IAS 32 by accounting year commencing April 1, 2014.
As per management evaluation, application of above IFRSs would not have significant impact on the consolidated financial statements of the group on its application.
NOTES TO CONSOLIDATED BALANCE SHEET
2. Property, Plant and Equipment
30 September 2013
Advertisement Structures US ($)
Building US ($)
Office and Data Processing Equipment US ($)
Furniture and Fixtures US ($)
Vehicles US ($)
Total US ($)
At 1 April 2013 (net of accumulated depreciation)
48,592
792,177
111,049
26,873
91,816
1,070,507
Exchange difference on Conversion
(5,072)
(105,289)
(15,898)
(2,893)
(11,420)
(140,571)
Additions
-
-
42,029
574
-
42,603
Disposals
Depreciation charge for the half year
(24,335)
(9,884)
(23,957)
(12,511)
(14,542)
(85,2229)
At 30th September,2013 (net of accumulated depreciation)
19,185
677,004
113,223
12,043
65,854
887,309
At 1 April 2013
Cost
846,434
886,490
525,402
213,180
295,977
2,767,483
Accumulated depreciation
(797,843)
(94,313)
(414,353)
(186,307)
(204,161)
(1,696,977)
Net carrying amount
48,591
792,177
111,049
26,873
91,816
1,070,506
At 30 September, 2013
Cost
733,316
768,019
487,618
185,232
220,940
2,395,125
Accumulated depreciation
(714,131)
(91,015)
(374,395)
(173,189)
(155,086)
(1,507,816)
Net carrying amount
19,185
677,004
113,223
12,043
65,854
887,309
30 September 2012
Advertisement Structures US ($)
Building US ($)
Office and Data Processing Equipment US ($)
Furniture and Fixtures US ($)
Vehicles US ($)
Total US ($)
At 1 April 2012 (net of accumulated depreciation)
114,673
819,423
85,805
56,512
60,783
1,137,196
Exchange difference on Conversion
(4,493)
(24,210)
(1,562)
(2,158)
(302)
(32,725)
Additions
-
-
48,591
680
59,886
109,157
Disposals
-
-
-
-
-
-
Depreciation charge for the half year
(29,527)
(6,811)
(24,161)
(13,783)
(21,807)
(96,089)
At 30th September,2012 (net of accumulated depreciation)
80,653
788,402
108,673
41,251
98,560
1,117,539
At 1 April 2012
Cost
899,873
903,058
481,578
225,090
257,407
2,767,006
Accumulated depreciation
(785,201)
(83,635)
(395,773)
(168,578)
(196,625)
(1,629,812)
Net carrying amount
114,672
819,423
85,805
56,512
60,782
1,137,194
At 30 September, 2012
Cost
873,579
874,922
513,153
219,220
312,089
2,792,963
Accumulated depreciation
(792,926)
(86,520)
(404,480)
(177,969)
(213,529)
(1,675,424)
Net carrying amount
80,653
788,402
108,673
41,251
98,560
1,117,539
31 March 2013
Advertisement Structures US ($)
Building US ($)
Office and Data Processing Equipment US ($)
Furniture and Fixtures US ($)
Vehicles US ($)
Total US ($)
At 1 April 2012 (net of accumulated depreciation)
114,673
819,423
85,805
56,512
60,783
1,137,196
Exchange difference on Conversion
(6,875)
(48,640)
(5,062)
(3,384)
(3,571)
(67,532)
Additions
-
38,710
79,133
1,455
72,162
191,460
Disposals
-
-
(299)
-
-
(299)
Depreciation charge for the year
(59,206)
(17,316)
(48,528)
(27,710)
(37,558)
(190,318)
At 31st March, 2013 (net of accumulated depreciation)
48,592
792,177
111,049
26,873
91,816
1,070,507
At 1 April 2012
Cost
899,874
903,058
481,578
225,090
257,408
2,767,008
Accumulated depreciation
(785,201)
(83,635)
(395,773)
(168,578)
(196,625)
(1,629,812)
Net carrying amount
114,673
819,423
85,805
56,512
60,783
1,137,196
At 31 March, 2013
Cost
846,434
886,490
525,402
213,180
295,977
2,767,483
Accumulated depreciation
(797,843)
(94,313)
(414,353)
(186,307)
(204,161)
(1,696,977)
Net carrying amount
48,592
792,177
111,049
26,873
91,816
1,070,506
3. Capital Work In Progress
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 March, 2013 US ($)
Opening Balance
8,731
-
-
Exchange difference on translation
(1,166)
-
-
Additions
-
23,200
8731
Capitalised during the year
(7,565)
-
-
Closing Balance (net of accumulated amortization)
-
23,200
8731
4. Intangible Assets
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Opening Balance (net of accumulated amortization)
97,413,042
104,463,429
104,463,429
Exchange difference on translation
(12,994,200)
(3,065,118)
(6,204,589)
Additions
-
-
-
Amortization charge for the period
(414,043)
(322,594)
(845,798)
Closing Balance (net of accumulated amortization)
84,004,799
101,075,717
97,413,042
Opening Balance
1 April, 2013 US ($)
1 April, 2012 US ($)
1 April, 2012 US ($)
Cost
110,560,995
117,541,292
117,541,292
Accumulated amortization
(13,147,953)
(13,077,863)
(13,077,863)
Net carrying amount
97,413,042
104,463,429
104,463,429
Closing Balance
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Cost
95,785,481
114,106,500
110,560,995
Accumulated amortization
(11,780,682)
(13,030,783)
(13,147,953)
Net carrying amount
84,004,799
101,075,717
97,413,042
5. Loans & Advances
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Non Current - Loans and Advances
Loans to staff
8,247
8,977
7,626
Sundry deposit
35,673
42,496
41,176
43,920
51,473
48,802
Current - Loans and Advances
Advance recoverable in cash or kind or for value to be received
164,605
153,830
120,297
Loans to staff
2,474
3,370
2,519
Advance tax including Tax Deducted at Source
562,637
578,127
655,370
Related Parties -
- Advance recoverable in cash or kind or for value to be received
10,792
8,106
2,681
740,508
743,433
780,867
The carrying values of loans and advances are representative of their fair values at respective balance sheet dates. The loans and advances having a maturity period of more than a year are classified as noncurrent assets and those that have an original maturity period of 1 year or less are classified as current assets.
6. Inventories
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Electronic Cards and 'On Board Units'
12,761
23,452
48,191
Consumables
26,290
45,321
32,613
39,051
68,773
80,804
Electronic cards are prepaid smart cards with an inbuilt sensor which record passages through toll road. On Board Units (machines) are installations in customer cars which facilitate an uninterrupted drive through the toll plaza. Consumables are the item which facilitates uninterrupted running of toll plaza.
7. Trade Receivables
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Non Current
-
-
-
Current
293,261
428,390
313,793
293,261
428,390
313,793
Trade receivable pertains to advertising and other revenues. Trade Receivables having maturity period more than one year has been classified as Non Current receivables and are interest bearing.
Current receivables are non-interest bearing and are generally on 30-60 day's terms. The carrying values of these receivables are representative of their fair values at respective balance sheet dates.
8. Available-for-Sale Investments
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Canara Robeco short term Retail-Growth fund
-
469,315
-
Reliance Dynamic Bond Fund-Growth Plan
734,897
-
-
Canara Robeco Treasury Advantage Institutional Growth fund
-
1,838,939
1,995,900
Principal Debt Opportunities Fund-Conservative Plan-Regular-Growth
-
-
1,154,754
Kotak Floater Long Term-Growth
-
1,630,700
-
SBI Premier Liquid Fund- Regular Plan-Growth
988,987
-
-
UTI Treasury Advantage Fund-Institutional Plan (Growth Option)
5,404,799
1,462,484
2,854,205
SBI -Ultra Short Term Fund-Institutional Plan-Growth
-
2,165,796
2,513,197
SBI -Short Term Fund-Institutional Plan-Growth
-
388,445
671,819
Reliance Floating Rate Fund-Short Term Plan-Growth
-
-
420,772
7,128,683
7,955,679
9,610,647
Available-for-sale investments are being carried at fair values at respective balance sheet dates.
9. Cash and cash equivalents
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Cash in Hand
155,438
165,431
98,768
Cash at Bank (Current Accounts)
155,680
265,071
139,724
Cash at Bank (Deposit)
-
-
551,572
311,118
430,502
790,064
Other Bank Balances
unclaimed dividend
57,693
44,105
67,001
unpaid dividend
2,965,833
1,766,556
3,023,526
1,810,661
67,001
3,334,644
2,241,163
857,065
The carrying value of cash and current account balances in banks are representative of fair values at respective balance sheet dates
10. Issued Capital
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Authorised
Ordinary Shares of INR 10 each
46,476,127
46,476,127
46,476,127
46,476,127
46,476,127
46,476,127
Issued and fully paid
30 Sept, 2013
30 Sept, 2012
31 Mar,2013
Number
186,195,002
186,195,002
186,195,002
Value US($)
42,419,007
42,419,007
42,419,007
*Includes 45,075 equity shares represented by 9,015 GDRs (30 September 2012: 45,075 equity shares represented by 9,015 GDRs & 31 March 2013: 45,075 equity shares represented by 9,015 GDRs) (Each GDR representing 5 ordinary shares of Rs. 10 each)
Share Option Scheme
NTBCL has two Employee Stock Option Plans (ESOP 2004, E3SOP 2005). Under ESOP 2004 options to subscribe for the Company's shares have been granted to directors, senior executive and general employees. All Stock Options granted in the past have been exercised, allotted or have lapsed. Under ESOP 2005 no options have been granted upto the date of financial statement.
11. Reserves
Nature and purpose of other reserves
Securities Premium Account
The Securities Premium Account is used to record the value difference between issue price of GDRs and the face value of the inherent equity shares and the value of the stock option upon exercise by the employee. Transfers are made from the Stock Option Account. Under the Indian Companies Act, 1956 such reserve has restricted usage.
Debenture Redemption Reserve
Debenture Redemption Reserve (DRR) has been created for redemption of Deep Discount Bonds (DDBs) by transferring an amount equal to the amount apportioned from the profit for the year computed under Indian GAAP. Under the Indian Companies Act, 1956 such reserve has restricted usage.
General Reserve
The General Reserve is used to account for the value of stock options that lapse after the vesting period.
Effect of Currency Translation Reserve
The currency translation reserve is used to record exchange differences arising from the translation of the financial statements from the functional currency Indian Rupees to the presentation currency of US$ for reporting purposes.
Net Unrealised Gains Reserve
This reserve records fair value changes on available-for-sale investments.
12. Interest-bearing Loans and Borrowings
Effective Interest Rate %
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Non Current
Deep Discount Bonds (Net of transaction cost)
*
3,013,968
3,309,191
3,336,695
Term Loan from Financial Institutions
***
1,696,743
-
Related Party -
- Term Loan
**
1,137,673
5,624,470
1,778,391
4,151,641
10,630,404
5,115,086
Current
Term Loan From Financial Institutions
***
1,489,957
2,263,505
3,288,043
Term Loan From Bank
8.50%
-
1,812,702
-
Related Party
-
- Term Loan
**
3,710,460
4,715,027
7,110,873
5,200,417
8,791,234
10,398,916
* Refer Note on Deep Discount Bonds
** Refer Note on Term Loan from Related Party
*** Refer to Note on Term Loan from Financial Institutions & Others.
Debt Restructuring
During the initial years of commencing operations, actual cash inflows were significantly lower than anticipated as toll traffic/ revenue did not meet the levels anticipated in the projections, resulting in the Group's inability to comply with certain financial covenants stipulated in the original borrowing agreements with its lenders. The cash flow situation also impacted the Group's ability to complete the links to augment traffic and to continue servicing its then repayment schedule for debt obligation. The Group, decided to rationalise its debt structure and commenced negotiations with lenders to restructure the debt, in particular, the interest rate, in order to align its debt servicing requirements more closely to its available cash flows.
At a meeting of the Senior Lenders of NTBCL on 26 March 2002, the Lenders approved the formation of a Debt Restructuring Committee, as per the Reserve Bank of India Guidelines comprising of the Industrial Development Bank of India (IDBI), State Bank of India (SBI) and the IL&FS for finalization of the restructuring proposal within 30 days of the meeting.
An application was filed on 23 July 2002 for the restructuring of the debts of the company under the Corporate Debt Restructuring (CDR) mechanism. On 6 January 2003, the Company received communication from the CDR Cell approving the proposed restructuring programme at the CDR Empowered Group Meeting on 29th October 2002. On approval, the CDR scheme became effective from 1 April 2002.
The above restructuring covered the term loans from financial institutions, banks and others.
For Deep Discount Bond Holders, who were not within the above restructuring arrangement, the Group, with the consent of the requisite majority of the secured creditors applied for and filed a petition in the Allahabad High Court for approval of a restructuring proposal. The restructuring arrangement was sanctioned by the Court on 24 October 2005.
The impact on the financial statements due to the above restructuring and the changes in the interest rates of the various financial instruments are detailed below.
Deep Discount Bonds
NTBCL issued Deep Discount Bonds (DDBs) of US $ 11,504,832 (100,000 DDB of US $ 115.05 each) on 3rd November 1999 with redemption value US $ 1035.43 at the end of 16th year with an average annualised yield of 14.67%. Nominal Value and Issue Amount were at par.
In accordance with the terms of restructuring scheme of Deep Discount Bonds, the outstanding 10,815 DDBs (Net of repayments made) would mature on 3rd November 2015 and maturity value of the bond as per the revised terms would be US $ 521.26 each. However, NTBCL would have the right to call/ purchase DDBs from the holders at any time after effective date of 24th November 2005 as defined in the scheme with interest calculated @ 13.70% per annum till 31 March 2002 and at 8.5% per annum thereafter up to the date of the payment.
Term Loan from Financial Institutions and Others
As per the restructuring of term loans, fifty percent of the outstanding loan i.e. US$ 10,817,895 has been retained as term loan carrying interest of 12.5% per annum and the same is repayable by 2010 - 2014. The effective rate of interest, considering the overall repayment schedule, work out to 8.5% per annum. The company has prepaid term loan of US$ 6,444,754 to the financial institutions and others out of the proceeds of GDR issue and currently serving the balances as per terms of agreement.
Infrastructure Development Finance Company Limited (IDFC) has converted US$ 12,701,026 being the value of DDBs purchased by them under the scheme of restructuring of DDBs into the term loan. The term loan is repayable during 2010-14. The loan carries interest at the rate of 8.5% per annum payable quarterly on 31 March, 30 June, 30 September and 31 December every year. The Company had prepaid term loan of US$ 7,905,077 to IDFC out of proceeds of the GDR issue and currently serving the balances as per terms of agreement.
Term Loan from Banks
NTBCL had taken term loans from a consortium of eight banks at interest ranging from 13.50% to 14.50% per annum. Post restructuring, the term loans from banks, amounting to US$ 28,000,000 carry interest at a rate of 8.5%. The term loans from banks are payable during 2004-13. It has been fully repaid since then.
Term Loan from IL&FS
NTBCL on 29th March 2005, took financial assistance of US$ 8,000,000 from IL&FS to repay certain amounts to the existing lenders, which had fallen due on 31 March 2005. Interest on the loan is stepping up in certain years and there is terminal interest to be paid. The loan alongwith terminal interest was repayable by 31 March 2017 as per the agreed payment schedule. By virtue of an amendment in the agreement the repayment of the principal amount and the terminal interest has been changed and entire sum is to be repaid by July, 2015. However the effective rate of interest remains to be 12.48% per annum.
IL&FS has converted US$ 8,467,351 being the value of DDBs purchased by them under the scheme of restructuring of DDBs into the term loan. The term loan is repayable during 2010 -14. The loan carries interest at the rate of 8.5% per annum payable quarterly on 31 March, 30 June, 30 September and 31 December every year. The Company had prepaid term loan of US $ 5,322,752 out of proceeds of the GDR issue and currently serving the balance as per terms of agreement.
NTBCL on 21st February, 2006 had acknowledged the loan of US$ 2,786,671 from IL&FS taken for the purpose of restructuring the Group's DDBs. The loan is repayable during 2010 -14. The loan carries interest at the rate of 10% per annum payable quarterly on 31 March, 30 June, 30 September and 31 December every year. The Company is serving the loan as per terms of agreement.
The carrying values of all interest bearing loans and borrowings are representative of their fair values at respective balance sheet dates. The interest bearing loans & borrowings having a maturity period of more than a year are classified as non current liabilities and those that have an original maturity period of 1 year or less are classified as current liabilities.
All interest bearing loans and borrowings are secured by a charge on all tangible and intangible assets of the Group. However the Group has recognised the right to receive toll income as an intangible asset at fair value of construction services rendered to the grantor in compliance with IFRIC 12 Service Concession Arrangement. The charge on Delhi Noida Toll Bridge (Project Assets) created in favor of lenders for interest bearing loans and borrowings continue to remain against project assets now classified as intangible asset.
13. Provisions
Provision for Resurfacing Expenses (Non Current)
(Non Current)
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Opening Balance
52,843
-
-
Adjustment
-
1,410,850
-
Accretion During the period (Note 15)
56,288
653,261
52,784
Exchange difference on Translation
(10,352)
79,901
59
Closing Balance
98,779
2,144,012
52,843
(Current)
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Opening Balance
2,776,039
2,841,155
2,841,155
Adjustment
-
(1,410,850)
-
Utilised During the period
(73,650)
(689,081)
(1,349,861)
Accretion During the period (Note 15)
666,586
235,988
1,453,355
Exchange difference on Translation
(405,655)
(155,177)
(168,610)
Closing Balance
2,963,320
822,035
2,776,039
Provision for Resurfacing: The Group has a contractual obligation to maintain, replace or restore infrastructure, except for any enhancement element. Cost of such obligation is measured at best estimate of expenditure required to settle the obligation at balance sheet date and recognized over the period at end of which the overlay is estimated to carried out. The Overlay of MVRL has been completed and next overlay is expected to be carried out after expiry of five years. Overlay of DND Flyways is expected to be completed by December 2013.
Provision for Holiday Pay
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Opening Balance
87,487
81,883
81,883
Utilised during the period
(5,879)
(7,974)
(8,715)
Provided during the period
21,869
13,482
19,170
Exchange difference on Translation
(12,627)
(2,179)
(4,851)
Closing Balance
90,850
85,212
87,487
Provision for Holiday Pay: The Group has computed the provision for holiday pay based on outstanding leave balance as at the year end.
Provision for performance Related Pay
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Opening Balance
136,319
442,902
442,902
Utilised during the period
(74,681)
(139,913)
(173,190)
Written Back during the year
(9,687)
(237,486)
(242,951)
Provided during the period
72,729
71,625
136,169
Exchange difference on Translation
(17,538)
(24,780)
(26,611)
Closing Balance
107,142
112,348
136,319
Provision for Employees Benefit
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Opening Balance
5,374
4,199
4,199
Utilised during the period
(4,945)
(3,925)
(3,946)
Provided during the period
4,045
4,640
5,368
Exchange difference on translation
(665)
(94)
(247)
Closing Balance
3,809
4,820
5,374
Provision for Litigation
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Opening Balance
1,238,428
1,098,284
1,098,284
Provided during the period
94,484
102,026
205,140
Exchange difference on translation
(171,030)
(28,144)
(64,996)
Closing Balance
1,161,882
1,172,166
1,238,428
Note:
1. The group has acquired the land on Delhi side for the construction of Bridge from the Government of Delhi and DDA and the amount paid has been considered as a part of the project cost. However pending final settlement of the dues the company had estimated the cost of US$ 0.47 million and provided for. The actual settlement may result in possible but not probable obligation to the extent of additional US$ 0.47 million based on management estimates.
2. The Company had applied for and was granted renewal of permission from Municipal Corporation of Delhi (MCD) to display advertisements for a period of five years w.e.f 1.8.2009 subject to payment of monthly license fee @ US$ 1.83 per sq.ft. of the total display area or 25% of the gross revenue generated out of display whichever was higher. The Company has been sharing 25% of the revenue with MCD since inception. The Company contested the aforesaid imposition @ US$ 1.83 on the ground that same was not permitted by the 2008 Outdoor Advertisement policy. The MCD, however cancelled the permission vide Order dated 10.05.2010 for nonpayment @ US$ 1.83. The Company filed a Writ Petition before the Hon'ble Delhi High Court for quashing of the aforesaid Order.
After hearing the submissions of the Company, the Hon'ble Court vide order dated 25.05.2010 stayed the operation of the impungned order subject to NTBCL depositing 50% of the arrears of License fee to be calculated @ US$ 1.83 per sqft of the display and continuing to deposit license fee at the said rate every month till the final disposal of the Writ Petition.
Though the matter is sub judice, company as an abundant caution, has decided to provide for license fee as demanded by MCD in full. Necessary adjustment, if any, would be made on disposal of writ petition.
14. Deferred Income Tax
Balance Sheet
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Deferred Income Tax Liabilities
Property, Plant & Equipment & Intangible Asset
(10,840,418)
(11,997,388)
(12,355,232)
Fair Value Change on Recognition of Intangible Asset
(7,346,046)
(8,353,356)
(84,79,220)
Deferred Income Tax Assets
MAT Credit
6,419,115
4,821,873
60,22,883
Losses available for offset against future taxable income
1,795,020
5,511,448
37,77,826
Borrowing Cost
273,675
441,528
474,021
Operation & Maintenance Expense
1,034,474
1,570,663
1,465,800
Net Deferred Tax Liability
8,664,180
8,005,232
9,093,922
Income Statement
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Deferred Income Tax Liabilities
Property, Plant & Equipment and Intangible Asset
(144,821)
(223,392)
(412,154)
Deferred Income Tax Assets
MAT Credit
1,275,714
1,119,255
2,474,562
Difference in amortisation of Preliminary Expenses
-
-
Losses available for offset against future taxable income
(1,569,693)
(1,908,639)
(3,824,840)
Operation & Maintenance Expense
(250,053)
29,132
(124,389)
Borrowing Cost
(145,503)
(142,613)
(97,704)
Adjustment of Tax Rate change
(483,684)
Net Deferred Tax Expense
(834,356)
(1,126,257)
(2,468,209)
Reconciliation of Tax Expense:
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Accounting Profit before tax
6,016,411
5,724,293
11,811,519
Enacted Tax rates in India
33.99%
32.45%
33.99%
Computed enacted tax expenses
2,044,978
1,857,247
4,014,735
Effect of non taxable income
(19,625)
(21,956)
(45,710)
Losses Lapsed
-
-
Effect of non-deductible expenses
173
219
6,814
Tax reversals
84,544
419,194
486,448
Effect of change in tax rate
-
-
483,684
Total Tax Expenses
2,110,070
2,254,704
4,945,971
Reconciliation of Deferred Tax Liability
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Opening Balance
9,093,921
7,041,134
7,041,132
Deferred Tax Expenses
834,356
1,126,256
2,468,209
Exchange difference on Translation
(1,264,099)
(162,158)
(415,419)
Closing Balance
8,664,178
8,005,232
9,093,921
15. Trade and Other Payables
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Non- Current
Deposit from Customers
514,621
572,668
555,701
514,621
572,668
555,701
Current
Trade Payables
47,950
52,755
110,907
Interest accrued but not due
2,393
7,286
5,383
Dividend Payable
2,183,816
1,300,759
Other Liabilities*
2,174,810
1,612,623
2,058,787
Related Parties
- Interest accrued but not due
99,827
178,381
-
- Dividend Payable
782,017
465,797
-
- trade Payable
24,161
82,364
28,851
5,314,974
3,699,965
2,203,928
The carrying values of all trade creditors and other payable are representative of their fair values at respective balance sheet dates. All the trade creditors and other payables have an original maturity period of 1 year or less are classified as current liabilities.
Trade Creditors are non-interest bearing and are normally settled on 60 day terms.
* Other Liabilities primarily include amount payable to creditors for capital items, accruals for general day to day expenses, advance payments from customers. All other liabilities are non-interest bearing and are normally settled on 60 day terms.
16. Operating and Administrative Expenses
Operating Expenses
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Consumption of Prepaid Cards and On Board Units
36,499
47,777
91,452
Repairs and Maintenance
206,335
219,410
506,465
Provision for Resurfacing(Note 13)
722,875
889,249
1,506,139
Electricity Charges
147,957
129,655
279,421
1,113,666
1,286,091
2,383,477
Administrative Expenses
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Employee Benefit Expense (Note 18(a))
706,767
709,069
1,471,685
Rates and taxes
707,940
425,679
924,939
Insurance
50,396
48,374
105,111
Litigation Settlement expenses
202,020
Professional Charges
210,118
202,112
569,103
Audit Fees
29,005
30,179
54,141
Directors Sitting Fees
53,460
12,788
92,195
Travelling and Conveyance
42,770
48,511
91,591
Other Administrative Expenses
128,189
111,920
216,763
1,928,645
1,588,632
3,727,548
17. Finance Charges
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Interest on Deep Discount Bonds
130,843
130,204
261,080
Interest on Term Loans
542,484
917,432
1,707,275
Other Finance Charges
8,526
24,854
30,226
681,853
1,072,490
1,998,581
18. Earning Per Share
Basic earnings per share amounts are calculated by dividing net profit for the period attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the period.
Diluted earnings per share are calculated by dividing the net profit attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the period plus the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.
The following reflects the income and share data used in the basic and diluted earning per share computations:
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Net Profit/(Loss) attributable to equity share holders
3,943,265
3,468,843
6,865,550
30 Sept, 2013
30 Sept, 2012
31 Mar,2013
Weighted average number of ordinary shares for basic / diluted earning per share
186,195,002
186,195,002
186,195,002
Share Options
There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of completion of these financial statements.
19. Employee Benefits
(a) Emloyee Benefits Expenses
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Salaries and Allowances
638,830
641,820
1,345,058
Pension Cost
6,222
6,033
12,164
Post-employment benefits other than pensions - Provident Fund
38,687
44,495
92,379
- Gratuity
23,028
16,721
22,084
706,767
709,069
1,471,685
(b) Pension and other post-employment benefit plans
The Group has three post employment funded benefit plans, namely gratuity, superannuation and provident fund.
In case of NTBCL gratuity is computed as 30 days salary, for every completed year of service or part there of in excess of 6 months and is payable on retirement/termination/resignation. The benefit vests on the employee completing 3 years of service. The Gratuity plan for the NTBCL is a defined benefit scheme where annual contributions as demanded by the insurer are deposited to a Gratuity Trust Fund established to provide gratuity benefits. The Trust Fund has taken a Scheme of Insurance, whereby these contributions are transferred to the insurer. The Group makes provision of such gratuity asset/ liability in the books of accounts on the basis of actuarial valuation.
In case of ITMSL gratuity is computed as 15 days salary, for every completed year of service or part there of in excess of 6 months and is payable on retirement/termination/resignation. The benefit vests on the employee completing 5 years of service. The Gratuity plan for the ITMSL is a defined benefit scheme. The company makes provision of such gratuity assets / liabilities in the books of account on the basis of actuarial valuation.
The Superannuation (pension) plan for the NTBCL is a defined contribution scheme where annual contribution as determined by the management (Maximum limit being 15% of salary) is paid to a Superannuation Trust Fund established to provide pension benefits. The benefits vests on employee completing 5 years of service. The management has the authority to waive or reduce this vesting condition. The Trust Fund has taken a Scheme of Insurance, whereby these contributions are transferred to the insurer. These contributions will accumulate at the rate to be determined by the insurer as at the close of each financial year. At the time of exit of employee, accumulated contribution will be utilised to buy pension annuity from an insurance company. ITMSL do not provide Superannuation benefits to its employees.
The Provident Fund is a defined contribution scheme whereby the Group deposits an amount determined as a fixed percentage of basic pay to the fund every month. The benefit vests upon commencement of employment.
The following table summarises the components of net expense recognised in the income statement and amounts recognised in the balance sheet for gratuity.
Net Benefit expense
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Current service cost
9,793
9,974
20,160
Interest cost on benefit obligation
5,402
5,538
11,134
Expected return on plan assets
(4,880)
(3,815)
(7,388)
Net actuarial(gain)/loss recognized in year
12,713
5,024
(1,823)
Expenses for the period
23,028
16,721
22,083
Benefit asset
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Defined benefit obligation
(142,288)
(141,013)
(142,328)
Fair value of plan assets
167,026
135,028
172,323
Benefit asset
24,738
(5,985)
29,995
Changes in the present value of the defined benefit obligation are as follows:
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Opening defined benefit obligation
142,328
147,086
147,086
Interest cost
5,402
5,538
11,134
Exchange difference on translation
(20,199)
(27,004)
(31,490)
Current service cost
9,793
9,974
20,160
Benefits paid
(4,785)
(3,043)
(4,590)
Actuarial (gains)/losses on obligation
9,749
8,462
28
Closing defined benefit obligation
142,288
141,013
142,328
Changes in the fair value of plan assets are as follows:
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Opening fair value of plan assets
172,323
131,333
131,333
Expected return
4,879
3,815
7,388
Exchange difference on translation
(24,130)
(3,557)
(7,745)
Contributions
16,918
-
40,863
Benefits paid
-
-
(1,366)
Actuarial gains/(losses) on fund
(2,964)
3,437
1,850
Closing fair value of plan assets
167,026
135,028
172,323
The plan asset consists of a scheme of insurance taken by the Trust, which is a qualifying insurance policy. Break down of individual investments that comprise the total plan assets is not supplied by the Insurer.
The principal assumptions used in determining pension and post-employment benefit obligations for the Group's plans are shown below:
30 Sept, 2013
30 Sept, 2012
31 Mar,2013
Discount rate
8.25
8.25
8.25
Future salary increases
6.00
6.00
6.00
Rate of interest
5.00
5.00
5.00
The estimates of future salary increases considered in the actuarial valuation take into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market
The amounts for the current year and previous annual periods are given below:
20. Translation to Presentation Currency
The Group has converted Indian Rupees balances to US$ equivalent balances on the following basis:
For conversion of all assets and liabilities, other than equity, as at the reporting dates, the exchange rates prevailing as at the reporting date have been used, which are as follows:
As at 30 September 2013 : US$ 1 = Rs.62.78
As at 30 September 2012 US$1 = Rs. 52.70
As at 31 March 2013: US$ 1 = Rs.54.39
For conversion of all expenses and income for the respective periods, Periodic average exchange rates have been used, which are as follows:
For the half year ended 30 September 2013: US$ 1 = Rs. 59.11
For the half year ended 30 September 2012: US$ 1 = Rs. 54.74
For the year ended 31 March 2013: US$ 1 = Rs. 54.45
For conversion of issued share capital, historical exchange rates prevailing on the respective dates of issue of shares have been taken into consideration.
For conversion of authorised share capital, historical exchange rates prevailing on the respective dates of authorisation of such share capital have been taken into consideration.
For cash flow purpose, opening and closing cash and cash equivalents have been converted into presentation currency using year end conversion rates for the respective years.
21. Contingent Liabilities:
a) Based on environment and social assessment, compensation for rehabilitation and resettlement of project effected person has been estimated and considered as part of the project cost and provided for based on estimates made by the Company.
b) A public Interest litigation has been filed in Allahabad High Court to make the project toll free to general public.
22.Capital commitment
30 Sept, 2013 US ($)./million
30 Sept, 2012 US ($)./million
31 March, 2013 US ($)./million
Estimated amount of contracts remaining to be executed on capital account and not provided for
NIL
0.014
0.004
23. Pending execution of contract with SMS AAMW Tollways Private Limited, service charges @3% (as per MCD directives) of MCD toll has been recognized for collecting MCD toll tax on their behalf by ITMSL. Necessary adjustment, if any, will be recognized on finalization of contract.
24. Related Party Disclosure
The consolidated financial statements include the financial statements of Noida Toll Bridge Company Limited and the subsidiary listed in the following table.
Name
Country of incorporation
% equity interest
30 Sept, 2013
30 Sept, 2012
31 Mar, 2013
ITNL Toll Management Services Limited
India
51%
51%
51%
The Group has following related parties with whom Group made transaction during the relevant period:
(a) Shareholder having significant influence
The following shareholder, which are also the Promoter of the Group has had a significant influence in the periods under review:
The following employee benefit funds have been related parties in all periods under review
- Noida Toll Bridge Company Limited Employees Group Gratuity Fund. - Noida Toll Bridge Company Limited Employees Superannuation Fund.
(i)The following table provides the total amount of transactions which have been entered into with related parties for the relevant financial year:
(a) Shareholders having significant influence
Transaction/outstanding balances
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Reimbursement of expenses (including reimbursement on account of deputation of key managerial personnel*)
51,235
55,448
113,630
Rent Income
-
1,973
3,967
Dividend
830,570
448,438
450,827
Interest expenses
403,866
577,134
1,126,518
Amount owed to
4,872,294
10,805,293
8,918,115
Amount receivable
12,492
8,106
2,681
(b) Associate entities of shareholders having significant influence
Transaction/outstanding balances
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Rent Income
224,531
223,602
444,298
Service Income
13,412
127,450
232,472
Professional Services
8,022
17,296
41,154
Miscellaneous Income
5350
-
-
Amount receivable
124,435
225,566
153,592
Amount Payable
154
2,883
9,131
(c) Key management Persons-Directors
Transaction/outstanding balances
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Sitting fees paid
19,625
12,788
27,916
Directors Commission
33,835
-
64,279
(d) Other Related Parties.
Transaction/outstanding balances
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Contribution to employees post employment benefit fund
29,250
22,754
34,248
(ii) Compensation to key management personnel of the Group:
30 Sept, 2013 US ($)
30 Sept, 2012 US ($)
31 Mar,2013 US ($)
Sitting fees
3,384
2,740
5,051
Other Compensation*
-
-
-
Total compensation
3,384
2,740
5,051
* Deputation expenses reimbursed (refer note a above)
Terms and conditions of transactions with related parties:
The transactions with Infrastructure Leasing and Financial services Limited are made at normal market prices. Amount owed to on account of loan/ bonds are secured and settlement occurs in cash.
There were few transactions during the year between the company and its subsidiary undertakings, which are eliminated on consolidation and therefore not disclosed.
25. Financial Risk Management Objectives and Policies
The Group's financial risk management objectives and policies are aimed at procuring funding for the construction of the bridge and additional links and to provide working capital to operate the bridge. The Group manages its financial risk by securing cost effective funding for the Group's operations and minimizing the adverse effects of fluctuations in the financial markets on the value of the Group's financial assets and liabilities, on reported profitability and on the cash flows of the Group. The principal financial instruments comprise deep discount bonds, term loans from banks and other financial institutions, current accounts with banks and cash and short-term investments. The Group has various other financial assets and liabilities such as trade receivables and trade payables, which arise directly from its operations.
The main risk arising from the Group's financial instruments are cash flow interest rate risk, liquidity risk and credit risk. The board reviews and agrees policies for managing these risks as summarised below.
Cash flow interest rate risk
The Group's exposure to the risk for changes in market interest rates relates primarily to the Group's long term debt obligations. The Group's policy is to manage its interest cost using only fixed rate debts or step up rates with fixed period for related party debts.
Liquidity risk
The Group's objective is to maintain a balance between continuity of funding and flexibility through the use of term loans with banks and other financial institutions, and other loan instruments. The Group has in the past undertaken necessary restructuring of its loans and obligations to ensure its ability to service interest and debt repayments effectively.
Credit risk
The Group trades only with recognised creditworthy third parties. It is the Group's policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on an ongoing basis with the result that the Group's exposure to bad debts is not significant.
With respect to credit risk arising from the other financial assets of the Group, which comprise cash and cash equivalents, loans and advances and available-for-sale financial assets, the Group's exposure to credit risk arises from default of the counterparty, with maximum exposure equal to the carrying amount of these instruments.
Since the Group trades only with recognised third parties, there is no requirement for collateral. However wherever management feels adequate, obtain collateral in the form of bank guarantees or security deposits from the third parties.
26. Financial Instruments
Fair Values
The carrying value of all financial assets and liabilities are representatives of their fair values at respective balance sheet date. The carrying value of the fixed rate debts of the Group are considered to be equal to their fair value following debt restructuring, which resulted in a reduction of the effective interest rate of all debt (Note 12).
Interest Rate Risk
The following table set out the carrying amount, by maturity, of the Group's financial instruments that are exposed to interest rate risk:
As at 30th September, 2013: (in US($))
Within 1 year
1-2 years
2-3 years
3-4 years
4-5 years
Total
Assets Loans to staff
2,474
2,537
2,601
2,440
669
10,721
Borrowings
Deep Discount Bonds
-
-
3,013,968
-
-
3,013,968
Term Loan from Banks
-
-
-
-
-
-
Term Loan from Financial Institutions
1,489,957
-
-
-
-
1,489,957
Term Loan from Others
3,710,460
1,137,673
-
-
-
4,848,133
As at 30th September, 2012: (in US($))
Within 1 year
1-2 years
2-3 years
3-4 years
4-5 years
Total
Assets Loans to staff
3,370
2,226
2,282
2,340
2,129
12,347
Borrowings
Deep Discount Bonds
-
-
-
3,309,191
-
3,309,191
Term Loan from Banks
1,812,702
-
-
-
-
1,812,702
Term Loan from Financial Institutions
2,263,505
1,696,743
-
-
-
3,960,248
Term Loan from Others
4,715,027
4,420,165
1,204,305
-
-
10,339,497
As at 31st March, 2013: (in US($))
Within 1 year
1-2 years
2-3 years
3-4 years
4-5 years
Total
Assets Loans to staff
2,519
2,184
2,239
2,295
908
10,145
Borrowings
Deep Discount Bonds
-
-
3,336,695
-
-
3,336,695
Term Loan from Financial Institutions
3,288,043
-
-
-
-
3,288,043
Term Loan from Others
7,110,873
1,778,391
-
-
-
8,889,264
Interest on financial instruments classified as fixed rate is fixed until the maturity of the instrument. The other financial instruments of the Group that are not included in the above tables are non-interest bearing and are therefore not subject to interest rate risk. There are no instruments at floating rates of interest.
Credit risk
There are no significant concentrations of credit risk within the Group
27. Fair Value Measurement
The following table provides the fair value measurement hierarchy of the company's asset as of September 30, 2013
Fair Value Measurement using
Asset measured at fair value
Date of valuation
Total
Quoted Price in active Markets (Level 1)
Significant Observable Inputs (Level 2)
Significant Unobservable Inputs (Level 3)
Intangible Asset
September 30, 2013
84,004,799
84,004,799
Available for sale Investment
September 30, 2013
7,128,683
7,128,683
There have been no transfers between Level 1 and Level 2 during the period.
Management determined that the intangible assets constitute one class of asset under IFRIC 12, based on the nature, characteristics and risk of the asset.
28. Segment Reporting
The Concession Agreement with NOIDA confers certain economic rights to the Group. These include rights to charge toll and earn advertisement revenue, development income and other economic rights. The income stream of the Group comprises of toll income and advertising income for the period for which IFRS compliant financial statements of the Group have been prepared.
Both these rights are directly or indirectly linked to traffic on the Delhi Noida Toll Bridge and are broadly subject to similar risks. Toll revenue is fully variable while license fee from advertisement is fixed to a certain extent. The operating risk in both the cases is similar and the expenses cannot be segregated as the Company does not have separate departments for the management of each activity. The Management Information System also does not capture both activities separately. As both emanate from the same Concession Agreement and together form a part of the Return as specified in the Concession Agreement, the Group does not have different business reporting segments.
Similarly, the Group operates under a single geographical segment.
29. Salient aspects of Service Concession Arrangement
NOIDA has irrevocably granted to NTBCL the exclusive right and authority during the concession period to develop, establish, finance, design, construct, operate, and maintain the Delhi Noida Toll Bridge as an infrastructure facility.
NOIDA has further granted the exclusive right and authority during the concession period in accordance with the terms and conditions of the agreement to:
Enjoy complete and uninterrupted possession and control of the lands identified constituting the Delhi Noida Toll Bridge site.
Own all or any part of the project assets.
Determine, demand, collect, retain and appropriate a Fee from users of the Delhi Noida Toll Bridge and apply the same in order to recover the Total Cost of Project and the Returns thereon.
Restrict the use of the Delhi Noida Toll Bridge by pedestrians, cycle Rickshaws etc from the Delhi Noida Toll Bridge.
Develop, establish, finance, design, construct, operate, maintain and use any facilities to generate development income arising out of the Development Rights that may be granted in accordance with the provisions of the Concession agreement.
Appoint subcontractors or agents on Company's behalf to assist it in fulfilling its obligations under the agreement.
SIGNIFICANT TERMS OF THE ARRANGEMENT THAT MAY AFFECT THE AMOUNT, TIMING AND CERTAINTY OF FUTURE CASH FLOW
Concession Period
The Concession Period shall commence on 30 December 1998 (the Effective Date) and shall extend until the earlier of:
A period of 30 years from the Effective Date;
The date on which the Concessionaire shall recover the total cost of the project and the returns as determined by the independent auditor and the independent engineer through the demand and collection of fee, the receipt, retention and appropriation of development income and any other method as determined by the parties.
In the event of NTBCL not recovering the total project cost and the returns thereon within the specified time the Concession Period shall be extended by NOIDA for a period of 2 years at a time until the total project cost and the returns thereon have not been recovered by the Concessionaire.
Return
Return means the designated return on the Total Cost of the project recoverable by the concessionaire from the effective date at the rate of 20 % per annum.
Independent Auditor
An Independent Auditor shall be appointed for the entire term of the Concession Agreement. The Independent Auditor shall approve the format for the maintenance of accounts, the accounting standards and the method of cost accounting to be followed by the Concessionaire. The Independent Auditor shall audit, on a quarterly basis the Concessionaire's accounts.
The Independent Auditor shall also certify the Total Cost of Project outstanding and compute the returns thereon from time to time on a per annum basis.
Fees
The Concession Agreement had determined the Base Fee Rates which have been determined and set according to 1996 figures and shall be revised to determine the initial fee to be applied to the users of the project on the Project Commissioning Date (the "Initial Fee Rate"). The following are the Base Fee Rates:
Vehicle Type
One Way Fee in INR
Earth moving / construction vehicle
30
For each additional axle beyond 2 axle
10
Truck - 2 axles
20
Bus - 2 axles
30
Light Commercial Vehicle
20
Cars and other four wheelers
10
Three wheelers
10
Two wheelers
5
Non-motorised vehicles
-
The Initial Fee Rate shall be determined strictly in accordance with the increase in the CPI, based upon the Base Fee Rates as determined in the Concession Agreement and shall be revised in accordance with the following formula:
IFR = CPI (I)*Base Fee Rate/CPI (B)
Where
IFR = Initial Fee Rate
CPI ( I ) = Consumer Price Index for the month previous to the month of setting the Initial Fee Rate
CPI ( B ) = Consumer Price Index of the month in which this Agreement is entered into
The Fee Rates are to be revised annually by the Fee Review Committee. Fee rates are revised as per the following formula:
RFR = CPI ( R ) * IFR / CPI ( I )
where
RFR = Revised Fee Rate
CPI ( R ) = Consumer Price Index for the month previous to the month in which the revision is taking place
CPI ( I ) = Consumer Price Index for the month previous to the month of setting the initial fee rate
IFR = Initial Fee Rate
Fee Review Committee
A Fee Review Committee was established which comprised of one representative each of NOIDA, the Concessionaire and a duly qualified person appointed by the representatives of NOIDA and Concessionaire who shall also be the Chairman of the Committee. The Fee Review Committee shall
review the need for a revision to existing rates of Fee upon occurrence of unexpected circumstances;
review the formula for revision of fees
Cost of Project and calculations of return
The total project cost shall be the aggregate of:
Project Cost
Major Maintenance Expenses
Shortfalls in recovery of Returns in a specific financial year
The Project Cost had to be determined on the Project Commissioning date by the Independent Auditor with the assistance of the Independent Engineer.
The amounts available for appropriation by NTBCL for the purpose of recovering the total project cost and the returns thereon shall be calculated at annual intervals from the Effective Date in the following manner:
Gross revenues from Fee collections, income from advertising and development income
Less: O&M expenses
Less: Taxes (excluding any customs or import duties)
Major Maintenance Expenses
'Major Maintenance Expenses' refer to all expenses incurred by NTBCL for any overhaul of, or major maintenance procedure for, the Delhi Noida Toll Bridge or any portion thereof that require significant disassembly or shutdown the Delhi Noida Toll Bridge including those teardowns overhauls, capital improvements and replacements to major component thereof), which are (i) to be conducted upon the passage of the number of million standard axels or (ii) not regularly schedule. The Independent Engineer shall determine the necessity, of conducting the major maintenance and certify that the work has been executed in accordance with specifications.
TRANSFER OF THE PROJECT UPON TERMINATION OF CONCESSION PERIOD
On the transfer date, NTBCL shall transfer and assign the project assets to NOIDA or its nominated agency and shall also deliver to NOIDA on such dates such operating manuals, plans, design drawings and other information as may reasonably be required by NOIDA to enable it to continue the operation of the bridge.
On the transfer date, the bridge shall be in fair condition subject to normal wear and tear having regard for the nature of asset, construction and life of the bridge as determined by the Independent Engineer. NTBCL shall ensure that on the transfer date, the bridge is in the condition so as to operate at the full rated capacity and the surface riding quality of the bridge will have a minimum performance level of 3000 - 3500 mm per Km when measured by bump integrator.
The asset shall be transferred to NOIDA for a sum Rs. 1/-. NOIDA shall be responsible for the cost and expenses in connection with the transfer of the asset.
OTHER OBLIGATIONS DURING THE CONTRACT TERM
Major Repairs and Unscheduled Maintenance
NTBCL shall inform the Independent Engineer when the work is necessary and use materials that allow for rapid return to normal service and organise work cruise to minimise disruptions. The Independent Engineer to approve work prior to commencement and after repairs are completed Independent Engineer shall confirm that maintenance/ repairs confirm to the required standards.
Overlay
Based on traffic projections and overlay and design Million Standard Axel (MSA), NTBCL shall indicate, in annual report vis-à-vis the MSA projections, the point of time at which the pavement shall require an 'overlay'.
Overlay is defined as a strengthening layer which is require over the entire extent of pavement of the main carriageway and cycle track without in any way effecting the safety of structures. This 'Overlay' shall be carried out by NTBCL upon receipt of Independent Engineer approval. The Independent Engineer can also decide an overlay on particular sections based on pavement specifications.
Liability to Third Parties
NTBCL shall during the Concession period use reasonable endeavors to mitigate any liabilities to third parties as is foreseeable arising out of loss or damage to the bridge or the project site.
30. Figures of the previous period have been regrouped/ rearranged wherever considered necessary.
In terms of our report of even date On Behalf of the Board of Directors
For Luthra & Luthra
Chartered Accountants
Reg. No. 002081N
Amit Luthra Director Executive Director & CEO
Partner
(M. No 85847)
Place: Noida
Date: 20.12.2013 AVP Company Secretary
This information is provided by RNS
The company news service from the London Stock Exchange
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