REG - Noida Toll Bridge Co - IFRS Audited Results for the Year to 31 March 2016 <Origin Href="QuoteRef">NOID.NS</Origin> - Part 4
06/09/2016 14:50
- Part 4: For the preceding part double click ID:nRSF1084Jc
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-Mar-16 31-Mar-15
US$ US$
Current service cost 22,203 22,200
Interest cost on 14,036 12,723
benefit obligation
Expected return on (12,178) (12,296)
plan assets
Net 6,078 -3,863
actuarial(gain)/loss
recognised in year
Annual expenses 30,139 18,764
Benefit
asset/(Liability)
31-Mar-16 31-Mar-15
US$ US$
Defined benefit (202,652) (177,929)
obligation
Fair value of plan 202,438 191,179
assets
Benefit (214) 13,250
asset/(Liability)
Changes in the
present value of the
defined benefit
obligation are as
follows:
31-Mar-16 31-Mar-15
US$ US$
Opening defined 177,929 156,914
benefit obligation
Interest cost 14,036 12,723
Exchange difference (10,493) (6,884)
on translation
Current service cost 22,203 22,199
Benefits paid (8,390) (14,773)
Actuarial 7,367 7,750
(gains)/losses on
obligation
Closing defined 202,652 177,929
benefit obligation
Changes in the fair
value of plan assets
are as follows:
31-Mar-16 31-Mar-15
US$ US$
Opening fair value of 191,179 187,911
plan assets
Expected return 12,178 12,296
Exchange difference (11,074) (7,728)
on translation
Contributions 15,277 -
Benefits paid (6,412) (12,912)
Actuarial 1,290 11,612
gains/(losses) on
fund
Closing fair value of 202,438 191,179
plan assets
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-Mar-16 31-Mar-15
% %
Discount rate 8 8.25
Future salary 6 6.00
increases
Rate of interest 5 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 Group during
the next year is US$
42,496 (PY US$
38,180)
The amounts for the
current year and
previous annual
periods are given
below:
31-Mar-16 31-Mar-15 31-Mar-14 31-Mar-13 31-Mar-12
Defined benefit 202,652 177,929 156,914 142,328 147,086
obligation
Defined benefit 202,438 191,179 187,911 172,323 131,333
Assets
Surplus/(Deficit) (214) 13,250 30,997 29,995 (15,753)
Experience 7,367 (7,750) 2,544 19,496 (61,172)
adjustments on plan
liabilities
Experience 586 12,777 294 5,086 5,159
adjustments on plan
assets
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 2016: US$ 1 = Rs. 66.33
-as at 31 March 2015: US$ 1 = Rs. 62.59
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 US$ 1 = Rs 65.46
31 March 2016:
-For the year ended US$ 1 = Rs 61.15
31 March 2015:
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 &
Commitments:
a) Estimated amount
of contracts
remaining to be
executed on capital
account and not
provided for US$ 0.21
million, net of
advance of US$ 0.08
million) (Previous
Year US$ 1.62
million, net of
advance of US$ 1.79
million)
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) Public interest
litigations have been
filed in the Hon'ble
Allahabad High Court
and Hon'ble Delhi
High Court to make
the project a toll
free facility for
general public.
d) Income Tax demand
of US$ 94.68 million
(Previous Year US$
69.54 million) which
is majorly on account
of addition of
designated returns to
be recovered as per
the concession
agreement. The
Company is in the
process of filing
appeal with CIT(A).
Based on legal
opinion, management
believes that the
outcome of the appeal
will be in favour of
the Company.
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
31-Mar-16 31-Mar-15
ITNL Toll Management India 51% 51%
Services Limited
The Group has
following related
parties with whom
Group made
transaction during
the relevant
financial year:
(a) Shareholders
having significant
influence
The following
shareholders, which
are also the Promoter
of the Group has had
a significant
influence in all
years under review:
- Infrastructure
Leasing & Financial
Services Limited
- IL&FS
Transportation
Networks 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
-IL&FS Skills
Development
Corporation Limited
(c) Key Managerial
personnel
31-Mar-16 31-Mar-15
Executive Directors Executive Directors
Mr Harish Mathur Mr Harish Mathur
Ms. Monisha Macedo Ms. Monisha Macedo (from 23.02.2015)
Non Executive Non Executive Directors
Directors
Mr Arun K Saha Mr Arun K Saha
Mr Deepak Prem Mr Deepak Prem Narayan
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 Mr Harish Mathur (CEO)
(CEO)
Ms. Monisha Macedo Ms. Monisha Macedo (from 23.02.2015)
(e)Other related
Parties
The following
employee benefit
funds have been
related parties in
the years 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/Outstandi 31-Mar-16 31-Mar-15
ng Balances
US$ US$
Professional fees 103,140 108,703
Interest expenses - 166,536
Dividend 1,875,000 2,408,586
Amount owed to 95 96,670
Amount receivable 5,082 8,230
(b) Associate
entities of
shareholders having
significant influence
Transaction/outstandi 31-Mar-16 31-Mar-15
ng balances
US$ US$
Rent Income 365,170 390,908
Miscellaneous Income - 2,474
Professional charges 15,364 5,468
CSR Expenses 45,161 89,765
Transfer of assets - 164
Amount receivable 125,960 12,662
Amount Payable 49,334 80,222
(c) Key Management
persons-
Transaction/outstandi 31-Mar-16 31-Mar-15
ng balances
US$ US$
Sitting fees paid 93,799 87,654
Directors Commission 94,714 101,554
(d) Other Related
Parties
Transaction/outstandi 31-Mar-16 31-Mar-15
ng balances
US$ US$
Contribution to 42,216 31,087
employees post
employment benefit
fund
(ii) Compensation to
key management
personnel of the
Group:
31-Mar-16 31-Mar-15
Rs. Rs.
Sitting fees 19,019 19,787
Remuneration 139,831 15,028
Dividend 1,184 507
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.
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,
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 year
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
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