REG - Noida Toll Bridge Co - IFRS Audited Results for the Year to 31 March 2014 <Origin Href="QuoteRef">NOID.NS</Origin> - Part 2
29/10/2014 09:24
- Part 2: For the preceding part double click ID:nRSA0126Oa
depreciation) - 697,525 106,839 6,196 57,295 867,856
At 1 April 2013
Cost 846,434 886,490 525,402 213,180 295,977 2,767,483
Accumulated depreciation (797,842) (94,313) (414,353) (186,307) (204,161) (1,696,976)
Net carrying amount 48,592 792,177 111,049 26,873 91,816 1,070,507
At 31 March, 2014
Cost 766,015 802,266 519,781 193,329 230,793 2,512,184
Accumulated depreciation (766,015) (104,741) (412,942) (187,133) (173,498) (1,644,330)
Net carrying amount - 697,525 106,839 6,196 57,295 867,856
31 March 2013 Advertisement StructuresUS ($) BuildingUS ($) Office and Data Processing EquipmentUS ($) FurnitureandFixturesUS ($) VehiclesUS ($) TotalUS ($)
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 (797,842) (94,313) (414,353) (186,307) (204,161) (1,696,977)
Net carrying amount 48,592 792,177 111,049 26,873 91,816 1,070,507
3. Capital Work IN Progress
31 March, 2014US ($) 31 March, 2013US ($)
Opening Balance 8,731 -
Exchange difference on translation (829) -
Additions 8,731
Capitalised during the year (7,902) -
Closing Balance (net of accumulated amortization) - 8,731
4. Intangible Assets
31 March, 2014US ($) 31 March, 2013US ($)
Opening Balance (net of accumulated amortization) 97,413,042 104,463,429
Exchange difference on translation (9,260,419) (6,204,589)
Amortization charge for the year (806,849) (845,798)
Closing Balance (net of accumulated amortization) 87,345,774 97,413,042
Opening Balance 1 April, 2013US ($) 1 April, 2012US ($)
Cost 110,560,995 117,541,292
Accumulated amortization (13,147,953) (13,077,863)
Net carrying amount 97,413,042 104,463,429
Closing Balance 31 March, 2014US ($) 31 March, 2013US ($)
Cost 100,056,781 110,560,995
Accumulated amortization (12,711,007) (13,147,953)
Net carrying amount 87,345,774 97,413,042
5. Loans & Advances
31 March, 2014US ($) 31 March, 2013US ($)
Non Current - Loans and Advances
Loans to staff 9,993 7,626
Sundry deposit 42,557 41,176
52,550 48,802
Current - Loans and Advances
Advance recoverable in cash or kind or for value to be received 287,446 120,297
Loans to staff 3,250 2,519
Advance tax including Tax Deducted at Source 656,940 655,370
Related Parties -
- Advance recoverable in cash or kind or for value to be received 7,299 2,681
954,935 780,867
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 non current assets and those that have an
original maturity period of 1 year or less are classified as current assets.
6. Inventories
31 March, 2014US ($) 31 March, 2013US ($)
Electronic Cards and 'On Board Units' 31,942 48,191
Consumables 28,931 32,613
60,873 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 interrupted running of toll plaza.
7. Trade Receivables
31 March, 2014US ($) 31 March, 2013US ($)
Non-Current - -
Current 214,790 313,793
214,790 313,793
Trade receivable pertains to advertising and other revenue. Trade receivables having maturity period more than one year has
been classified as non-current receivables and are interest bearing. Current receivable 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
31 March, 2014US ($) 31 March, 2013US ($)
Principal Debt Opportunities Fund-Conservative Plan-Regular-Growth - 1,154,754
Canara Robeco Treasury Advantage Institution - 1,995,900
Reliance Floating Rate Fund-Short Term Plan-Growth - 420,772
SBI SHF-Ultra Short Term Fund-Institutional Plan-Growth 668,389 2,513,197
SBI SHDF-Short Term Fund-Institutional Plan-Growth - 671,819
UTI Treasury Advantage Fund Institutional Plan -Growth option - 2,854,205
LIC NOMURA MF Liquid Fund- Growth Plan 339,071 -
1,007,460 9,610,647
Available-for-sale investments are being carried at fair values at respective balance sheet dates.
9. Cash and cash equivalents
31 March, 2014US ($) 31 March, 2013US ($)
Cash in Hand 117,742 98,768
Cash at Bank (Current Accounts) 286,785 139,724
Cash at Bank (Deposit) 1,164,725 551,572
Other Bank Balances (Unclaimed Dividend) 229,498 67,001
1,798,750 857,065
The carrying value of cash and current account balances in banks are representative of fair values at respective balance
sheet dates. Other bank balance has restricted use, on account of balance held in unclaimed dividend account.
10. Issued Capital
31 March, 2014US ($) 31 March, 2013US ($)
Authorised
Ordinary Shares of INR 10 each 46,476,127 46,476,127
46,476,127 46,476,127
Issued and fully paid
31 March, 2013 31 March, 2012
Share (Number)* 186,195,002 186,195,002
Value US ($) 42,419,007 42,419,007
*Includes 45,075 equity shares represented by 9,015 GDRs (Previous Year 45,075 equity shares represented by 9,015 GDRs)
(Each GDR representing 5 ordinary shares of Rs. 10 each)
The company has only one class of ordinary equity shares having a par value of Rs. 10 per share. Each holder of equity
shares is entitled to one vote per share. Each holder of these ordinary shares is entitled to receive dividends as and when
declared by the company.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of
the Company, after distribution of all preferential amounts. The distribution will be in proportionate to the number of
equity shares held by the shareholders.
Share Option Scheme
NTBCL has two Employee Stock Option Plans (ESOP 2004, ESOP 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 % 31 March,2014US ($) 31 March,2013US ($)
Non Current
Deep Discount Bonds (Net of transaction cost) * 3,276,354 3,336,695
Related Party -
- Term Loan ** 404,981 1,778,391
3,681,335 5,115,086
Current
Term Loan from Financial Institution *** - 3,288,043
Related Party
- Term Loan ** 1,316,556 7,110,873
1,316,556 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.
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. Term loan has been fully repaid since then.
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 fully repaid the same since then.
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 and 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 and US$ 7,168,053/- has been repaid till the date of financial
statement. 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 term loan has been fully repaid since then.
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 term loan has been fully repaid since then.
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
31 March, 2014US ($) 31 March, 2013US ($)
Non Current
Opening Balance 52,843 -
Accretion During the Year (Note 16) 83,777 52,784
Exchange difference on Translation (4,463) 59
Closing Balance 132,157 52,843
Current
Opening Balance 2,776,039 2,841,155
Utilised During the Year (1,071,425) (1,349,861)
Accretion During the Year (Note 16) 903,086 1,453,355
Exchange difference on Translation (264,867) (168,610)
Closing Balance 2,342,833 2,776,039
Provision for Resurfacing: The Group has a contractual obligation to maintain, replace or restore infrastructure, except
for any enhancement element. The Group has recognised the provision at the best estimate of the expenditure required to
settle the present obligation at the balance sheet date. Overlay of MVRL has been completed during the previous year, next
overlay of MVRL is expected to be carried out after expiry of five years. Overlay of DND Flyways is under progress.
Provision for Holiday Pay 31 March, 2014US ($) 31 March, 2013US ($)
Opening Balance 87,487 81,883
Utilised during the year (6,535) (8,715)
Provided during the year 19,054 19,170
Exchange difference on Translation (8,229) (4,851)
Closing Balance 91,777 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 31 March, 2014US ($) 31 March, 2013US ($)
Opening Balance 136,319 442,902
Utilised during the year (113,087) (173,190)
Written back during the year (9,465) (242,951)
Provided during the year 119,792 136,169
Exchange difference on Translation (12,970) (26,611)
Closing Balance 120,589 136,319
Provision for Employees Benefit 31 March, 2014US ($) 31 March, 2013US ($)
Opening Balance 5,374 4,199
Utilised during the year (4,832) (3,946)
Provided during the year 4,135 5,368
Exchange difference on translation (514) (247)
Closing Balance 4,163 5,374
Provision for Litigation 31 March, 2014US ($) 31 March, 2013US ($)
Opening Balance 1,238,427 1,098,284
Utilised during the year - -
Provided during the year 197,648 205,140
Exchange difference on translation (116,345) (64,996)
Closing Balance 1,319,730 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$ 0.49 million and provided for. The actual settlement may result in possible but not
probable obligation to the extent of additional US$ 0.50 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$ 1.91/- 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$ 1.91/- 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$ 1.91/-. 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 @ Rs. US$ 1.91/- 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
31 March, 2014US ($) 31 March, 2013US ($)
Deferred Income Tax Liabilities
Property, Plant & Equipment and Intangible Asset (11,476,712) (12,355,232)
Fair Value Change on Recognition of Intangible Asset (7,673,624) (84,79,220)
Deferred Income Tax Assets
MAT Credit 8,372,905 60,22,883
Losses available for set off against future taxable income - 37,77,826
Operation & Maintenance Expense 796,448 1,465,800
Timing difference in allowance of Borrowing Cost 302,372 474,021
Net Deferred Tax Liability 9,678,611 9,093,922
Income Statement
31 March, 2014US ($) 31 March, 2013US ($)
Deferred Income Tax Liabilities
Property, Plant & Equipment and Intangible Asset (293,378) (412,154)
Deferred Income Tax Assets
MAT Credit 2,902,925 2,474,562
Difference in amortization of Preliminary expenses
Losses available for offset against future taxable income (3,396,297) (3,824,840)
Allowance of Borrowing Cost (125,776) (97,704)
Allowance of O&M Expense (526,585) (124,389)
Adjustment of tax rate change - (483,684)
Deferred Tax Expense 1,439,110 2,468,209
Reconciliation of Tax Expense:
31 March, 2014 31 March, 2013
US$ US$
Accounting Profit before tax 13,177,822 11,811,521
Enacted Tax rates in India 33.99% 33.99%
Computed enacted tax expenses 4,479,142 4,014,735
Effect of non taxable income (38,833) (45,710)
Effect of non-deductible expenses 237 6,814
Effect of change in tax rate - 483,684
Tax reversals (95,313) 486,448
Total Tax Expenses 4,345,233 4,945,971
Reconciliation of Deferred Tax Liability 31 March, 2014US ($) 31 March, 2013US ($)
Opening Balance 9,093,922 7,041,132
Deferred Tax Expenses 1,439,110 2,468, 209
Exchange difference on Translation (854,421) (415,419)
Closing Balance (9,678,611) (9,093,922)
15. Trade and Other Payables 31 March, 2014US ($) 31 March, 2013US ($)
Current
Deposit From Customers 546,892 555,701
546,892 555,701
Non Current
Trade Payables 84,285 110,907
Interest accrued but not due - 5,383
Other Liabilities* 2,077,225 2,058,787
Related Parties
Trade Payables - 28,851
2,161,510 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 31 March, 2014US ($) 31 March, 2013US ($)
Consumption of Prepaid Cards and On Board Units 73,055 91,452
Repairs and Maintenance 433,771 506,465
Provision for Resurfacing(Note 13) 986,863 1,506,139
Electricity charges 296,160 279,421
1,789,849 2,383,477
Administrative Expenses
31 March, 2014US ($) 31 March, 2013US ($)
Employee Benefit Expense (Note 19(a)) 1,339,316 1,471,685
Rates and Taxes 1,241,623 924,939
Insurance 97,337 105,111
Professional Charges 406,428 569,103
Litigation Settlement expenses - 202,020
Audit Fees 49,140 54,141
Directors Sitting Fees 118,347 92,195
Loss on Fixed Assets 857 -
Travelling and Conveyance 82,111 91,591
Other Administrative Expenses 239,834 216,763
3,574,993 3,727,548
17. Finance Charges 31 March, 2014US ($) 31 March, 2013US ($)
Interest on Deep Discount Bonds 254,976 261,080
Interest on Term Loans 833,526 1,707,275
Other Finance Charges 25,425 30226
1,113,927 1,998,581
18. Earning Per Share
Basic earnings per share amounts are calculated by dividing net profit for the year attributable to ordinary equity holders
of the parent by the weighted average number of ordinary shares outstanding during the year.
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 year 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:
31 March, 2014US ($) 31 March, 2013US ($)
Net Profit/(Loss) attributable to equity share holders 8,900,991 6,886,375
31 March, 2014 31 March, 2013
Weighted average number of ordinary shares for basic / diluted earning per share 186,195,002 186,195,002
19. Employee Benefits
(a) Employee Benefits Expenses
31 March, 2014US ($) 31 March, 2013US ($)
Salaries and Allowances 1,229,724 1,345,058
Pension Cost 12,185 12,164
Post-employment benefits other than pensions - Provident Fund 73,711 92,379
Post-employment benefits other than pensions - Gratuity 23,696 22,084
1,339,316 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
31 March, 2014US ($) 31 March, 2013US ($)
Current service cost 19,428 20,160
Interest cost on benefit obligation 10,556 11,134
Expected return on plan assets (11,620) (7,388)
Net actuarial(gain)/loss recognised in year 5,332 (1,823)
Expenses for the period 23,696 22,083
Benefit asset
31 March, 2014 31 March, 2013US ($)
US ($)
Defined benefit obligation (156,914) (142,328)
Fair value of plan assets 187,911 172,323
Benefit asset 30,997 29,995
Changes in the present value of the defined benefit obligation are as follows:
31 March, 2014 31 March, 2013US ($)
US ($)
Opening defined benefit obligation 142,328 147,086
Interest cost 10,556 11,134
Exchange difference on translation (13,336) (31,490)
Current service cost 19,428 20,160
Benefits paid (7,688) (4,590)
Actuarial (gains)/losses on obligation 5,626 28
Closing defined benefit obligation 156,914 142,328
Changes in the fair value of plan assets are as follows:
31 March, 2014 31 March, 2013US ($)
US ($)
Opening fair value of plan assets 172,323 131,333
Expected return 11,620 7,388
Exchange difference on translation (16,161) (7,745)
Contributions 19,835 40,863
Benefits paid - (1,366)
Actuarial gains/(losses) on fund 294 1,850
Closing fair value of plan assets 187,911 172,323
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:
31 March, 2014% 31 March, 2013%
Discount rate 8.25 8.25
Future salary increases 6.00 6.00
Rate of interest 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
Contributions expected to be made by the Company during the next year is US$ 30,418
The amounts for the current year and previous annual periods are given below:
31-Mar-14 31-Mar-13 31-Mar-12 31-Mar-11 31-Mar-10
Defined benefit obligation 156,914 142,328 147,086 130,455 241,091
Defined benefit Assets 187,911 172,323 131,333 129,291 340,441
Surplus/(Deficit) 30,997 29,995 (15,753) (1,163) 99,350
Experience adjustments on plan liabilities 2,544 19,496 (61,172) (93,667) 7,478
Experience adjustments on plan assets 294 5,086 5,159 7,050 12,645
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 31 March 2014: US$ 1 = Rs. 60.10
§ as at 31 March 2013: US$ 1 = Rs. 54.39
· For conversion of all expenses and income for the respective years, yearly average exchange rates have been used,
which are as follows:
§ For the year ended 31 March 2014: US$ 1 = Rs 60.50
§ 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) Estimated amount of contracts remaining to be executed on capital account and not provided for NIL (PY US$ 4,026/-)
b) Based on environment and social assessment, compensation for rehabilitation and resettlement of project affected persons
has been estimated and considered as part of the project cost and provided for based on estimates made by the Company.
c) A Public Interest Litigation has been filed in the Allahabad High Court to make the Project a toll free facility for
general public.
22. Pending execution of contract with SMS AAMW Tollways Private Limited, service charges @ 3% (as per MCD
directives) of MCD toll has been recognised for collecting MCD toll tax on their behalf by ITMSL. Necessary adjustment, if
any, will be recognised on finalisation of contract.
23. 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
31 March 2014 31 March, 2013
ITNL Toll Management Services Limited India 51% 51%
The Group has following related parties with whom Group made transaction during the relevant financial year:
(a) Shareholder having significant influence
The following shareholder, which are also the Promoter of the Group has had a significant influence in all periods under review:
- Infrastructure Leasing & Financial Services Limited
- IL&FS Transportation Network Limited
b) Associate entities of shareholders having significant influence
-IL&FS Environment Infrastructure & Services Ltd
-IL&FS Trust Co Ltd
-IL&FS ETS Ltd
-Badarpur Tollway Operations Management Limited
-IL&FS Security Services Ltd
-IL&FS Rail Ltd
(c) Key Managerial Personnel
31 March 2014 31 March 2013
Executive Directors Executive Directors
Mr Harish Mathur Mr Harish Mathur
Non Executive Directors Non Executive Directors
Mr Arun K Saha Mr Arun K Saha
Mr Deepak Prem Narayan Mr Deepak Prem Narayan
Mr K Ramchand Mr K Ramchand
Mr Piyush G Mankand Mr Piyush G Mankand
Mr R K Bhargava Mr R K Bhargava
Mr. Sanat Kaul Mr. Sanat Kaul
(d) Chief Executive Officer and Key Managers
Mr. Harish Mathur(CEO) Mr. Harish Mathur(CEO)
(e)Other related Parties
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 31 March 2014 31 March 2013
US ($) US ($)
Reimbursement of expenses (including on account of Key Managerial Personnel) 101,796 113,630
Rent Income - 3,967
Interest expenses 642,529 1,126,518
Dividend 2,028,719 450,827
Amount owed to 1,721,537 8,918,115
Amount receivable 7,299 2,681
(b) Associate entities of shareholders having significant influence
Transaction/outstanding balances 31 March 2014 31 March 2013
US ($) US ($)
Rent Income 380,826 444,298
Service Income 15,381 232,472
Miscellaneous Income 15,682 -
Professional charges 10,743 41,154
Amount receivable 9,154 153,592
Amount payable - 9,131
` (c) Key management Persons-
Transaction/outstanding balances 31 March 2014 31 March 2013
US ($) US ($)
Sitting fees paid 43,967 27,916
Directors Commission 74,380 64,279
(d) Other Related Parties.
Transaction/outstanding balances 31 March , 2014 31 March , 2013
US ($) US ($)
Contribution to employees post employment benefit fund 35,881 34,248
(ii) Compensation to key management personnel of the Group:
31 March, 2014 31 March, 2013
US ($) US ($)
Sitting fees 8,678 5,051
Other Compensation* - -
- -
* 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.
24. 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
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