Source - RNS
RNS Number : 1084J
Noida Toll Bridge Co. Ltd.
06 September 2016
 

Noida Toll Bridge Company Limited

 

("NTBCL" or the "Company")

 

Regd. Office: Toll Plaza, DND Flyway, Noida 201 301, Uttar Pradesh, India

 

 

IFRS audited results for the year ended 31 March 2016

 

 

The Directors are pleased to announce the audited results of the Company under IFRS for the year to 31 March 2016.

 

 

 

For further details please contact:

 

Noida Toll Bridge Company Limited                       


Harish Mathur 

00 91 120 2516380





Cairn Financial Advisers LLP


Sandy Jamieson, Emma Earl           

00 44 207 148 7900

 

 

About the Company:

 

NTBCL is a special purpose vehicle promoted by Infrastructure Leasing and Financial Services Limited, a specialist financial institution focusing on the development and financing of infrastructure, to construct and operate the Delhi Noida Toll Bridge on a build, own, operate and transfer basis. The Delhi Noida Toll Bridge is a tolled facility connecting Noida to South Delhi across the Yamuna river. The Company's principal business is operating the bridge and the Company generates revenues mainly through the levy of toll charges on users of the bridge.

 



 

 

NOIDA TOLL BRIDGE COMPANY LIMITED AND ITS SUBSIDIARY COMPANY


CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH, 2016






Note

31-Mar-16

31-Mar-15

 US $

 US $

Assets








Non Current Assets




Property, Plant and Equipment

2

2,341,507

802,841

Capital Work In Progress                                

3

                                          -  

                                 44,683

Intangible Asset

4

68,450,278

78,245,860

Deferred Tax Asset

14

                           1,982,876

                              456,863

Loans and Advances

5

2,246,024

251,740



                        75,020,685

                        79,801,987

Current Assets




Inventories

6

23,761

60,162

Trade Receivables

7

561,837

219,395

Loans and Advances

5

1,237,298

1,017,906

Prepayments


46,839

55,635

Available-for-Sale Investments

8

3,334,657

                                          -  

Cash and Cash Equivalent

9

4,805,376

1,108,686



                        10,009,768

                           2,461,784

Total Assets


                        85,030,453

                        82,263,771





Equity and Liabilities




Issued Capital

10

42,419,007

42,419,007

Securities Premium

11

21,897,839

23,206,321

Debenture Redemption Reserve

11

                                          -  

863,956

Net Unrealised Gains Reserve

11

                                 13,632

                                          -  

General Reserve

11

1,648,299

882,835

Effect of Currency Translation

11

                       (20,601,145)

                       (17,847,236)

Retained earnings (Profit & Loss Account)


23,660,427

24,021,142

Equity attributable to equity holders


                        69,038,059

                        73,546,025

Non Controlling Interest


                             (156,753)

                             (170,402)

Total Equity


                        68,881,306

                        73,375,623





Non Current Liabilities




Interest-bearing Loans and Borrowings

12

                           5,859,954

                                          -  

Provisions

13

1,514,715

799,975

Trade and Other Payables

15

500,008

527,949

Current Liabilities




Interest-bearing Loans and Borrowings

12

540,012

3,413,422

Trade and Other Payables

15

6,903,164

2,816,073

Provisions

13

740,789

1,328,053

Provision for Taxes


90,505

2,676

Total Liabilities


                        16,149,147

                           8,888,148





Total Equity and Liabilities


                        85,030,453

                        82,263,771

 



 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED MARCH 31, 2016







  Year ended

  Year ended



31 March 2016

31 March 2015

Revenue

Note

 US $

 US $

Toll Revenue


17,063,077

16,918,536

License Fee


2,868,669

3,249,945

Miscellaneous Income


156,298

972,751

Total Income


                         20,088,044

                                    21,141,232





Operating and Administrative Expenses




  - Operating Expenses

16

1,835,988

2,249,818

  - Administrative Expenses

16

3,881,938

3,563,593

  - Depreciation

2

387,831

127,285

  - Amortisation

4

5,455,260

5,757,524

Total Operating and Administrative Expenses


                         11,561,017

                                    11,698,220





Operating Profit from Continuing Operations


                           8,527,027

                                       9,443,012





Finance Income - Profit on Sale of Investments


286,901

265,643

Finance Charges

17

                             (415,855)

                                         (462,751)



                             (128,954)

                                         (197,108)





Profit from Continuing Operations before taxation

                           8,398,073

                                       9,245,904

Income Taxes:




  - Current Taxes


                          (1,787,318)

                                     (2,913,164)

  - Deferred Tax

14

1,572,397

9,980,043

Profit after tax for the  year


                           8,183,152

                                    16,312,783





Other Comprehensive Income




Gain on fair valuation of available for sale instruments

13,632

                                             (4,237)

Debenture Redemption Reserve


                                           -  

                                         (157,083)

Effect of Currency Translation


                          (4,160,883)

                                     (2,990,417)

Total Other Comprehensive Income


                          (4,147,251)

                                     (3,151,737)





Total Comprehensive Income


                           4,035,901

                                    13,161,046





Profit attributable to




Equity Shareholders


8,179,056

16,398,034

Non Controlling Interest


4,095

                                           (85,252)



                           8,183,151

                                    16,312,782

Comprehensive Income attributable to




Equity Shareholders


4,031,805

13,246,297

Non Controlling Interest


4,095

                                           (85,252)



                           4,035,900

                                    13,161,045

Profit per share




Basic and Diluted for the period

18

                                    0.044

                                               0.088





 



 

 

CONSOLIDATED CASH FLOW FOR THE YEAR ENDED MARCH 31, 2016







  Year ended

 Year ended


31 March 2016

31 March 2015


 US$

 US$

A. Cash Flow from Operating Activities



Receipts from Customers

19,660,014

20,385,314

Payment to Suppliers and Employees

                        (5,108,196)

                           (6,119,923)

Deposits, Advances and Staff Loan

                                  1,873

                                 (12,842)

Purchase of Inventories

                              (14,863)

                                 (77,626)

Income Taxes Paid

                        (4,159,293)

                           (3,167,031)

Net Cash from / (used in) Operating Activities (A)

                       10,379,535

                          11,007,892




B. Cash Flow from Investment Activities



Purchase of Fixed Assets

                        (1,950,668)

                               (145,448)

Proceeds from Sale of Fixed Assets

                                  1,070

                                     3,613

Purchase of 'Available for Sale' Investments

                     (26,084,896)

                         (18,908,926)

Proceeds from sale of 'Available for Sale' Investments

23,006,634

20,160,565

Net Cash from/ (used in) Investment Activities (B)

                        (5,027,860)

                             1,109,804

 



C. Cash flow from Financing Activities



Dividends Paid (including tax thereon)

                        (8,558,759)

                         (10,869,746)

Term Loans from Banks

                         6,568,897

                                            -  

Repayment of DDBs

                        (3,422,437)

                                            -  

Repayment of Term Loan from Others

                                         -  

                               (817,661)

Interest and Finance Charges Paid

                           (341,056)

                           (1,063,358)

Net Cash from/ (used in) Financing Activities (C)

                        (5,753,355)

                         (12,750,765)




Net Increase/ (Decrease) in Cash and Cash Equivalents (A+B+C)

                           (401,680)

                               (633,069)

Net Foreign Exchange Difference

                              (57,246)

                                 (56,995)

Cash and Cash Equivalents (Opening Balance)- Refer Note-9

1,108,686

1,798,750

Cash and Cash Equivalents (Closing Balance) -

                             649,760

                             1,108,686




 


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31,2016




















Share capital

Securities Premium

Effect of Exchange Translation Reserve

General Reserve

Retained Earnings

Net Unrealised Gains Reserve

Debenture Redemption Reserve

Equity

Minority Interest

Total Equity

US$

US$

US$

US$

US$

US$

US$

US$

US$

US$

At 1st April 2014

      42,419,007

            24,167,781

        (15,884,142)

              919,412

    18,610,017

         4,237

       736,159

        70,972,471

          (90,720)

   70,881,751

Net Profit during the period

 -

 -

 -

                              -  

    16,398,034


 -

        16,398,034

          (85,252)

   16,312,782

Debenture Redemption Reserve

 -

 -

 -

                              -  

         (157,083)


       157,083

                                -  

                         -  

                          -  

Fair value change on available for sale financial assets






       (4,237)


                    (4,237)

                         -  

              (4,237)

Dividend*

 -

 -

 -

                              -  

     (9,134,668)

 -

 -

         (9,134,668)

                         -  

    (9,134,668)

Dividend Tax

 -

 -

 -

                              -  

     (1,695,158)

 -

 -

         (1,695,158)

                         -  

    (1,695,158)

Difference for Currency Translation

                              -  

                  (961,460)

           (1,963,094)

               (36,577)

                           -  

                   -  

        (29,286)

         (2,990,417)

               5,570

    (2,984,847)

At March 31, 2015

      42,419,007

            23,206,321

        (17,847,236)

              882,835

    24,021,142

                   -  

       863,956

        73,546,025

       (170,402)

   73,375,623












As at 1 April 2015

      42,419,007

            23,206,321

        (17,847,236)

              882,835

    24,021,142

                   -  

       863,956

        73,546,025

       (170,402)

   73,375,623

Net Profit




                              -  

       8,179,056



           8,179,056

               4,095

      8,183,151

Transfer from Debenture redemption reserve to General Reserve


                                    -  

                                 -  

              815,242

                           -  

                   -  

     (815,242)

                                -  

                         -  

                          -  

Fair value change on available for sale financial assets

                              -  

                                    -  

                                 -  

                              -  

                           -  

      13,632

                       -  

                   13,632


             13,632

Dividend*

                              -  

                                    -  

                                 -  

                              -  

     (7,111,097)

                   -  

                       -  

         (7,111,097)


    (7,111,097)

Dividend Tax

                              -  

                                    -  

                                 -  

                              -  

     (1,428,674)

                   -  

                       -  

         (1,428,674)


    (1,428,674)

Difference for Currency Translation

                              -  

             (1,308,482)

           (2,753,909)

               (49,778)

                           -  

                   -  

        (48,714)

         (4,160,883)

               9,554

    (4,151,329)

At March 31,2016

      42,419,007

            21,897,839

        (20,601,145)

         1,648,299

    23,660,427

      13,632

                       -  

        69,038,059

       (156,753)

   68,881,306























*Dividends paid and proposed












Year ended March 31,2016

Year ended   March 31,2015








Final dividend for 2013-14 @ US$ 0.016 per share

                                    -  

             3,044,890








Interim dividend for 2014-15 @ US$ 0.03 per share

                                    -  

             6,089,778








Final dividend for 2014-15 @ US$ 0.016 per share

               2,844,409

                                 -  








Interim dividend for 2015-16 @ US$ 0.023 per share

               4,266,688

                                 -  









               7,111,097

             9,134,668








Proposed for approval at the annual general meeting (not recognised as a liability as at 31st March) 










Final dividend for 2015-16 @ US$ 0.023 per share (2014-15 @ US$ 0.016 per share)

               4,210,651

             2,974,836








 


 

Notes to consolidated financial statement for the year ended March 31, 2016

 

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. The GDRs of NTBCL 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 27). 

 

The Group's consolidated financial statements are authorized for issue by the company's Board of Directors on May 03, 2016

 

 

(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, through 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.

 

              In the past, New Okhla Industrial Development Authority (NOIDA) has been in discussion with the Company to consider modifications of a few terms of the Concession Agreement. Considering the recent developments, the Company at it's 9th July 2015 Board meeting, approved the draft proposal (Subject to approval by NOIDA & Shareholders) for terminating the concession & handing over the bridge on March 31, 2031 & freezing the amount payable as on 31st March 2011.

 

Further details of concession agreement are given in Note 28.

 

(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 that have been measured at fair value.  The presentation and grouping of individual items in the statement of financial position, 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 commisioning. 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).  Based on the independent professional expert's advice, the company had estimated the life of the bridge to be of 100 years. The intangible asset was being amortised over the same useful life under to unit of usage method. As the Company at it's 9th July 2015 Board meeting, approved the draft proposal (Subject to approval by Noida & Share holders) for terminating the concession & handing over the bridge on March 31, 2031, useful life of the Intangible Asset has been revised to 30 years.

 

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 a 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 year 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, this intangible asset is being amortised over the remaining life of the Delhi Noida Toll Bridge from the date of commissioning of the Mayur Vihar Link Road under unit of usage method. As the Company at it's 9th July 2015 Board meeting, approved the draft proposal (Subject to approval by Noida & Shareholders) for terminating the concession & handing over the bridge on March 31, 2031, useful life of the Intangible Asset has been revised to 30 years.

 

 

(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. It is being amortised under unit of usage method over the balance period of the estimated useful life. 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 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                                                                                    30 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 a 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 Board of Directors.

 

(za)          New Standards to be applicable at later date

 

In July 2014, the International Accounting Standards Board issued the final version of IFRS 9, Financial Instruments. The standard reduces the complexity of the current rules on financial instruments as mandated in IAS 39. IFRS 9 has fewer classification and measurement categories as compared to IAS 39 and has eliminated the categories of held to maturity, available for sale and loans and receivables. Further it eliminates the rule-based requirement of segregating embedded derivatives and tainting rules pertaining to held to maturity investments. For an investment in an equity instrument which is not held for trading, IFRS 9 permits an irrevocable election, on initial recognition, on an individual share-by-share basis, to present all fair value changes from the investment in other comprehensive income. No amount recognized in other comprehensive income would ever be reclassified to profit or loss. It requires the entity, which chooses to measure a liability at fair value, to present the portion of the fair value change attributable to the entity's own credit risk in the other comprehensive income. The standard also introduces new presentation and disclosure requirements. The effective date for adoption of IFRS 9 is annual periods beginning on or after January 1, 2018, though early adoption is permitted.

 

In May 2014, the International Accounting Standards Board issued IFRS 15, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cashflows arising from the entity's contracts with customers. The standard permits the use of either the retrospective or cumulative effect transition method. The effective date for adoption of IFRS-15 is annual periods beginning on or after January 1, 2017, though early adoption is permitted. In September2015, the IASB issued an amendment to IFRS 15, deferring the adoption of the standard to periods beginning on or after January 1, 2018 instead of January 1, 2017.

 

On January 13, 2016, the International Accounting Standards Board issued the final version of IFRS 16, Leases. IFRS 16 will replace the existing leases Standard, IAS 17 Leases, and related Interpretations. The Standard sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract i.e., the lessee and the lessor. IFRS16 introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. Currently, operating lease expenses are charged to the statement of comprehensive income. The Standard also contains enhanced disclosure requirements for lessees. IFRS 16 substantially carries forward the lessor accounting requirements in IAS 17.  The effective date for adoption of IFRS16 is annual periods beginning on or after January 1, 2019, though early adoption is permitted

 

As per management evaluation, application of above IFRSs would not have significant impact on the consolidated financial statements of the group on its application.

 

 

 

 

 

 

                                        


 

2. Property, Plant and Equipment














31-Mar-16

Advertisement Structure

Building

Office and Data Processing Equipment

Furniture & Fixtures

Vehicles

 Total


US$

US$

US$

US$

US$

US$

At 1 April 2015 (net of accumulated depreciation)

                         -  

          625,069

         137,855

              8,440

            31,477

              802,841

Exchange Difference on Conversion

                    (257)

           (34,990)

          (28,262)

                (466)

            (2,345)

              (66,320)

Additions

               27,135

             24,713

     1,872,697

              1,841

            67,006

          1,993,392

Disposals

                         -  

                      -  

                (575)

                      -  

                     -  

                    (575)

Depreciation charge for the year

                (7,549)

           (44,057)

       (310,044)

             (2,607)

          (23,574)

            (387,831)

At 31 March 2016 (net of accumulated depreciation)

               19,329

          570,735

     1,671,671

              7,208

            72,564

          2,341,507








At 1 April 2015







Cost

             735,542

          770,349

         556,241

          191,026

         203,142

          2,456,300

Accumulated depreciation

           (735,542)

         (145,280)

       (418,386)

        (182,586)

        (171,665)

        (1,653,459)

Net carrying amount

                         -  

          625,069

         137,855

              8,440

            31,477

              802,841

At 31 March 16







Cost

             482,043

          751,303

     2,362,984

          182,071

         254,439

          4,032,840

Accumulated depreciation

           (462,714)

         (180,568)

       (691,313)

        (174,863)

        (181,875)

        (1,691,333)

Net carrying amount

               19,329

          570,735

     1,671,671

              7,208

            72,564

          2,341,507















31-Mar-15

 Advertisement Structure

 Building

 Office and Data Processing Equipment

 Furniture & Fixtures

 Vehicles

 Total


 US$

 US$

 US$

 US$

 US$

 US$

 At 1 April 2014 net of accumulated depreciation

                         -  

          697,525

         106,839

              6,195

            57,295

              867,854

 Exchange difference on Conversion

                         -  

           (26,697)

            (5,081)

                (305)

            (1,724)

              (33,807)

 Additions

                         -  

                      -  

           93,332

              6,382

                     -  

                99,714

 Disposals

                         -  

                      -  

            (3,631)

                     (4)

                     -  

                 (3,635)

 Depreciation charge for the year

                         -  

           (45,759)

          (53,604)

             (3,828)

          (24,094)

            (127,285)

 At 31 March 2015 (net of accumulated depreciation)

                         -  

          625,069

         137,855

              8,440

            31,477

              802,841

 At 1 April 2014







 Cost

             766,015

          802,266

         519,781

          193,328

         230,793

          2,512,183

 Accumulated depreciation

           (766,015)

         (104,741)

       (412,942)

        (187,133)

        (173,498)

        (1,644,329)

 Net carrying amount






                          -  

 At 31 March, 2015

                         -  

          697,525

         106,839

              6,195

            57,295

              867,854

 Cost







 Accumulated depreciation

             735,542

          770,349

         556,241

          191,026

         203,142

          2,456,300

 Net carrying amount

           (735,542)

         (145,280)

       (418,386)

        (182,586)

        (171,665)

        (1,653,459)


                         -  

          625,069

         137,855

              8,440

            31,477

              802,841




































3. Capital Work in Progress












31-Mar-16

31-Mar-15






US$

US$

Opening Balance





            44,683

                          -  

Exchange difference on Translation





            (2,520)

                          -  

Additions





      1,718,314

                44,683

Capitalsed during the year





    (1,760,477)

                          -  

Closing Balance





                     -  

                44,683








4. Intangible Assets












31-Mar-16

31-Mar-15






US$

US$

Opening Balance (net of accumulated amortization)





   78,245,860

        87,345,774

Exchange Difference on translation





    (4,340,322)

        (3,342,390)

Amortization charge for the year





    (5,455,260)

        (5,757,524)

Closing Balance (net of accumulated amortization)





   68,450,278

        78,245,860








Opening Balance





01-Apr-15

01-Apr-14






US$

US$

Cost





   96,076,251

     100,056,781

Accumulated amortization





  (17,830,391)

      (12,711,007)

Net carrying amount





   78,245,860

        87,345,774








Closing Balance





31-Mar-16

31-Mar-15






US$

US$

Cost





   90,659,016

        96,076,251

Accumulated amortization





  (22,208,738)

      (17,830,391)

Net carrying amount





   68,450,278

        78,245,860

 

 

 

5. Loans & Advances 








 







31-Mar-16

31-Mar-15

 






US$

US$

 

Non Current - Loans and Advances







 

Loans to staff






11,904

17,375

 

Security Deposit






46,009

46,200

 

Capital Advances






                  77,452

                188,165

 

Advance tax






            2,110,659

                            -  

 









 







2,246,024

251,740

 

Current - Loans and Advances








 

Advance recoverable in cash or kind or for value to be received



161,303

212,213

 

Loans to staff






2,637

2,551

 

Advance tax including Tax Deducted at Source



1,068,276

794,912

 

Related Parties -








 

 - Advance recoverable in cash or kind or for value to be received



5,082

8,230

 







1,237,298

1,017,906

 









 

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-Mar-16

31-Mar-15

 






US$

US$


 

Electronic Cards and 'On Board Units'






20,831

35,315

 

Consumables






2,930

24,847

 







23,761

60,162

 









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-Mar-16

31-Mar-15

 







US$

US$

 







-

-

 







561,837

219,395

 







561,837

219,395

 

 

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-Mar-16

31-Mar-15



 





US$

US$



 

UTI Treasury Advantage Fund-Institutional Plan (Growth Option)




3,334,657

-



 





3,334,657

-



 

 

Available-for-sale investments are being carried at fair values at respective balance sheet dates



 









 

.




 









 

9. Cash and Cash equivalents








 







31-Mar-16

31-Mar-15

 






US$

US$

 

Cash in Hand






112,420

144,709        

 

Cash at Bank (Current Accounts)






160,437

714,943               

 

Cash at Bank (Deposit)






376,903

-                              

 







649,760

859,652

 

Other Bank Balance








 

-Unclaimed Dividend & DDBs






4,155,616

249,034                

 









 







4,805,376

1,108,686

 









 

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-Mar-16

31-Mar-15



 





US$

US$



 

Authorised








 

Ordinary Shares of Rs.10 each




46,476,127

46,476,127



 





46,476,127

46,476,127



 

Issued and fully paid








 

Number of shares *




186,195,002

186,195,002



 

 

Share Capital (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 up to 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 year.

 

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







 







31-Mar-16

31-Mar-15

 







US$

US$

 









 

Non-Current








 

Term Loan from Bank






6,482,738

-                               

 

Less: unamortised transaction cost






(82,772)               

-                               

 






6,399,966


                            -  

 

Less: Current Portion





540,012



 

Term Loan from Bank






5,859,954


 









 

Current








 

Term Loan from Bank






                540,012

                            -  

 

Deep Discount Bonds (Net of transaction Cost)*






-

3,413,422

 







540,012

3,413,422

 









 

Note 1:

 

(a)    a first ranking mortgage and charge on all the Borrower's immoveable properties, both present and future;

(b)   a first charge on all the Borrower's movable fixed assets, including moveable plant and machinery, machinery spares, tools and accessories, furniture, fixtures, vehicles and all other movable assets, both present and future;

(c)     a first charge, by way of hypothecation, on all the current assets of the Borrower, both present and future;

(d)     a first charge on the future receivables as a Concessionaire in case of partial or total cancellation of Concession Agreement or re-negotiation under a tri-partite agreement; and

(e)    Security Interest/ assignment over (i) all the rights, title, interest, benefits, claims and demands whatsoever of the Borrower under the Concession Agreement, except to the extent not permitted by the Government Authority or under Applicable Laws; and (ii) and other intangible assets of the Borrower.

(f) a first charge on all rights, titles, interests, benefits, claims and demands whatsoever of the Borrower, over the current bank account wherein all amounts, revenues, receipts and other receivables, owing to, received and/ or receivable by the Borrower as a Concessionaire under the Concession Agreement are deposited / shall be deposited

 

Note 2: 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) were matured on 3rd November 2015 at maturity value of US $ 521.26 each.

 

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.

 


 









 

13. Provisions

 








 

Provision for Resurfacing Expenses






31-Mar-16

31-Mar-15

 






US$

US$

 

(Non Current)








 

Opening Balance






680,583

132,157

 

Accretion during the Year






749,136

566,723

 

Exchange Difference on Translation






                (48,200)

                (18,297)

 







1,381,519

680,583

 









 

(Current)








 

Opening Balance






864,323

2,342,833

 

Utilised During the Year





              (646,657)

          (2,072,624)


 

Accretion During the Year






                  78,689

                654,697

 

Exchange Difference on Translation






                (41,287)

                (60,583)

 

Closing Balance






255,068

864,323

 









 

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. Major Overlay activities have been completed and next major overlay is expected to be carried out in FY 2017-18 & 2018-19. Further expenses on account Road Safety are expected to be incurred in next financial year.

 


 









 

Provision for Holiday Pay






31-Mar-16

31-Mar-15

 






US$

US$


 

Opening Balance






                101,242

                  91,777

 

Utilised during the year






                (10,563)

                   (9,130)

 

Provided during the year






                 

                  22,555

 

Exchange Difference on Translation




                   (6,045)

                   (3,960)


 

Closing Balance




120,953

101,242



 









 

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-Mar-16

31-Mar-15


 







US$

US$

 

Opening Balance






                135,597

                120,589

 

Utilised during the year






              (112,126)

              (109,650)

 

Written back during  the year






                (17,526)

                   (8,869)

 

Provided during the year





                174,523

                138,790


 

Exchange Difference on Translation




                   (8,234)

                   (5,263)


 

Closing Balance






172,234

135,597

 

 

 

 

 








 

Provision for Employees benefit 






31-Mar-16

31-Mar-15

 







US$

US$

 

Opening Balance






                    6,575

                    4,163

 

Utilised during the year






                   (6,285)

                   (4,092)

 

Provided during the year






                   

                    6,728

 

Exchange Difference on Translation






                     

                     

 

Closing Balance






5,676

6,575

 









 

Provision for Litigation                  






31-Mar-16

31-Mar-15

 







 US$

 US$

 

Opening Balance






                321,558

            1,319,730

 

Written back during the year




                            -  

              (967,938)



 

Provided during the year






                            -  

                            -  

 

Exchange Difference on Translation






                (18,130)

                (30,234)

 

Closing Balance






                303,428

                321,558

 









 

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. Since August 01, 2009, the Company was contesting imposition of monthly license fee @ Rs 115/- per sq.ft. of the total display area (as against 25% of the gross revenue generated) by MCD. In May 2010, The Hon'ble Court has directed the Company to deposit license fees at 50% of Rs. 115/- per sqft of the display till the final disposal of the matter. As an abundant caution the management had decided to provide for the license fee as demanded by MCD in full.  In November 2014, the Company has entered into MOU with MCD whereby the Company has obtained permission to display advertisement against payment of monthly license fees @ 25% of total income or 25% of zonal rate (whichever is higher).

In February 2015, Hon'able High Court ordered that the imposition of License Fees do not have the authority of law, accordingly set aside the MCD demand  & ordered MCD to refund amount deposited pursuant to its order of May 2010. The Company has stopped paying license fees to MCD from February 2015 and filed an application for refund of the amount paid. The Company had written back the provision recognised in this respect in previous financial year.

 

In August 2015, MCD has issued show-cause notice alleging violation of various terms of MOU and subsequently removed all outdoor advertisement/display on the Delhi side of DND flyway. The Company has initiated legal action and is in process of amicable settlement with MCD.


 









 









 









 

14. Deferred Income Tax








 









 

Balance Sheet







 







31-Mar-16

31-Mar-15

 






US$

US$

 

Deferred Income Tax Liabilities








 

Property, Plant & Equipment and Intangible Asset






          (5,511,560)

          (5,757,753)

 

Fair Value Change on Recognition of Intangible Asset






          (4,912,859)

          (5,206,422)

 

Deferred Income Tax Assets








 

MAT Credit






          11,833,220

          10,885,949

 

Operation & Maintenance Expense






                574,075

                535,089

 

Net Deferred Tax Asset/(Liability)






1,982,876

456,863

 

 

 

 








 

Income Statement






31-Mar-16

31-Mar-15

 






US$

US$

 

Deferred Income Tax Liabilities








 

Property, Plant & Equipment and Intangible Asset






                 

          (5,591,392)

 

Fair Value Change on Recognition of Intangible Asset






(2,349,959)


 

Deferred Income Tax Assets






         


 

MAT Credit






            1,581,820

            2,913,164

 

Allowance of Borrowing Cost






                            -  

              (302,583)

 

Allowance of O&M Expense






70,076                   

(249,315)            

 

Adjustment of tax rate change






              (322,574)


 

Deferred Tax Reversal






          (1,572,397)

          (9,980,043)

 

 

 








 

Reconciliation of Tax Expense:








 







31-Mar-16

31-Mar-15

 






US$

US$

 

Accounting Profit before tax






8,398,073

9,245,904

 

Enacted Tax rates in India






34.61%

34.61%

 

Computed enacted tax expenses





2,892,644

3,199,822


 

Temporary difference reversing in tax holiday period






                            -  

            (6,526,816)

 

Effect of non taxable income






          (2,683,095)

          (4,122,399)

 

Effect of non-deductible expenses






                    5,372

                  11,779

 

Effect of change in tax rate






                            -  

                322,574

 

Losses on which deferred tax asset not recognised





                            -  

                  49,161

 

Total Tax Expenses






214,921

-7,065,879

 









 

Reconciliation of Deferred Tax Asset/(Liability)






 







31-Mar-16

31-Mar-15

 






US$

US$

 

Opening Balance






                456,863

          (9,678,611)

 

Deferred Tax Expense during the year






            1,572,397

            9,980,042

 

Exchange Difference in Currency Translation






                (46,384)

                155,432

 

Closing Balance






1,982,876

456,863

 

 

 

 

 








 

15. Trade and Other Payables








 







31-Mar-16

31-Mar-15

 






US$

US$

 

Non Current








 

Deposit from customers






500,008

527,949

 







500,008

527,949

 

Current








 

Trade Payables






122,590

58,576

 

Other Liabilities*






6,780,574

2,660,827           

 

Related Parties







-                               

 

- Trade Payable






-                               

96,670

 





6,903,164

2,816,073



 

 

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 having an original maturity 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-Mar-16

31-Mar-15

 







US$

US$

 

Consumption of Prepaid Cards and On Board Units






48,311

75,875

 

Repairs and Maintenance






710,789

644,697

 

Provision for Resurfacing  (Note 13)




827,824

1,221,420


 

Electricity




249,064

307,826



 







1,835,988

2,249,818

 

 

 








 

Administrative Expenses




31-Mar-16

31-Mar-15



 







US$

US$

 

Employee Benefit Expense (Note 19)






            1,571,715

            1,472,072

 

Rates and Taxes






                894,588

                849,625

 

Insurance






                  79,029

                  93,718

 

Professional Charges






                489,873

                425,443

 

Audit Fees






                  52,208

                  58,323

 

Directors Sitting Fees & Commission






                185,762

                189,207

 

Loss/(Gain) on sale of Fixed Asset





                        136

                    3,169


 

Travelling & Conveyance






                  91,044

                  83,726

 

Corporate Social Responsibility






                232,757

                128,215

 

Other Administrative Expenses






                284,826

                260,095

 







            3,881,938

            3,563,593

 









 









 

17. Finance Charges








 







31-Mar-16

31-Mar-15

 






US$

US$

 

Interest on Deep Discount Bonds






158,671

273,708

 

Interest on Term Loans






232,161.00           

166,536

 

Other Finance Charges






25,023

22,507

 







415,855

462,751

 









 

 

18. Earnings 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-Mar-16

31-Mar-15

 







US ($)

US ($)

 

Net Profit/(Loss) attributable to equity share holders






8,179,056

16,398,034

 









 







31-Mar-16

31-Mar-15

 

Weighted average number of ordinary shares for basic / diluted earnings per share

 

 

 

 

 






186,195,002

186,195,002

 

 

19. Employee Benefits








 









 

(a)Employee Benefits Expenses






31-Mar-16

31-Mar-15

 







US$

US$

 

Salaries and Allowances






1,441,262

1,355,263           

 

 

Pension Cost






 

12,077

                  12,323

 

 

Post-employment benefits other than pensions  - Provident Fund






 

88,237

                     85,722

 

Post-employment benefits other than pensions - Gratuity


30,139

18,764                



 







1,571,715

1,472,072            

 









 

 

 

(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 thereof 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-Mar-16

31-Mar-15


 







US$

US$

 

Current service cost






22,203

22,200

 

Interest cost on benefit obligation






14,036

12,723

 

Expected return on plan assets






(12,178)

(12,296)              

 

Net actuarial(gain)/loss recognised in year






6,078

-3,863

 

Annual expenses






30,139

18,764

 









 









 

Benefit asset/(Liability)








 







31-Mar-16

31-Mar-15

 







US$

US$

 

Defined benefit obligation     






(202,652)       

(177,929)            

 

Fair value of plan assets






202,438               

191,179                 

 

Benefit asset/(Liability)






(214)                     

13,250

 









 

Changes in the present value of the defined benefit obligation are as follows:




 







31-Mar-16

31-Mar-15

 







US$

US$

 

Opening defined benefit obligation






177,929

156,914

 

Interest cost






14,036                  

12,723                   

 

Exchange difference on translation






(10,493)               

(6,884)                 

 

Current service cost






22,203                   

22,199                   

 

Benefits paid






(8,390)                   

(14,773)               

 

Actuarial (gains)/losses on obligation





7,367                    

7,750                    

 

Closing defined benefit obligation





202,652

177,929

 









 

Changes in the fair value of plan assets are as follows:




 







31-Mar-16

31-Mar-15

 







US$

US$

 

Opening fair value of plan assets






191,179

187,911

 

Expected return






12,178

12,296

 

Exchange difference on translation






(11,074)               

(7,728)                  

 

Contributions






15,277                   

-                              

 

Benefits paid






(6,412)                  

(12,912)               

 

Actuarial gains/(losses) on fund






1,290

11,612

 

Closing fair value of plan assets






202,438

191,179

 









 

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 increases






6

6.00

 

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 obligation



202,652

177,929

156,914

142,328

147,086

 

Defined benefit Assets



202,438

191,179

187,911

172,323

131,333

 

Surplus/(Deficit)



                  (214)

             13,250

                  30,997

                  29,995

                (15,753)

 

Experience adjustments on plan liabilities


                7,367

              (7,750)

                    2,544

                  19,496

                (61,172)

 

Experience adjustments on plan assets


586

12,777

294

5,086

5,159

 









 









 

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 31 March 2016:



US$ 1 = Rs 65.46



 

      -For the year ended 31 March 2015:



US$ 1 = Rs 61.15



 









 

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 Services Limited

India

51%

51%

 








 

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




 








 

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)





 

Ms. Monisha Macedo




 








 

 (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/Outstanding Balances




31-Mar-16

31-Mar-15

 






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/outstanding balances




31-Mar-16

31-Mar-15

 






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/outstanding balances




31-Mar-16

31-Mar-15

 






US$

US$

 

Sitting fees paid





93,799

87,654

 

Directors Commission





94,714

101,554

 








 

             (d) Other Related Parties







 

Transaction/outstanding balances




31-Mar-16

31-Mar-15

 






US$

US$

 

Contribution to employees post employment benefit fund



42,216

31,087

 








 

(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 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.

 








 

25. 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 March 31, 2016: (in US$)









Within 1 year

1-2 years

2-3 years

3-4 years

4-5 years

More than 5 Years

Total

Assets








Loans to staff

2,637

1,895

1,130

831

852

7,186

7,345









Borrowings








Term Loan-Bank

540,012

1,080,672

1,081,321

1,081,321

1,081,321

1,618,091

6,482,738

















As at 31 March 2015: (in US$)









Within 1 year

1-2 years

2-3 years

3-4 years

4-5 years

More than 5 Years

Total

Assets

3,369

3,454

2,685

1,890

903

7,626

19,927

Loans to staff
















Borrowings








Deep Discount Bonds

       3,413,422

                     -  

                       -  

                       -  

                            -  


3,413,422


 

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.




 

 








 

 








 

 

26. Fair Value Measurement







 

 








 

 

The following table provides the fair value measurement hierarchy of the company's asset as of March 31, 2016

 


 





Fair Value Measurement using

 

 

 

 

Asset measured at fair value

Date of valuation

Total

Quoted Price in active Markets

Significant Observable Inputs

Significant

Unobservable

Inputs

 





(Level 1)

(Level 2)

(Level 3)


 

Intangible Asset

March 31, 2016

         68,450,279

                       -  

                            -  

68,450,279


 

Available for sale Investment

March 31, 2016

           3,334,657

          3,334,657

                            -  

-


 

 

 

 







 

 








 

 

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.

 

 








 

 

27. 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 year 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.


 

 








 

 








 

 

28. 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 Year







 

 








 

 

The Concession Year shall commence on 30 December 1998 (the Effective Date) and shall extend until the earlier of:

 

 








 

 

•  A year 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 Year shall be extended by NOIDA for a year of 2 years at a time until the total project cost and the returns thereon have not been recovered by the Concessionaire.

 

 








 

 

In the past, New Okhla Industrial Development Authority has been in discussion with the Company to consider modifications of a few terms of the Concession Agreement. Considering the recent developments, the Company at it's 9th July 2015 Board meeting, approved the draft proposal (Subject to approval by Noida & Shareholders) for terminating the concession & handing over the bridge on March 31, 2031 & freezing the amount payable as on 31st March 2011.

 

 








 

 

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 Rs.





 

 

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 Re. 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 year use reasonable endeavours to mitigate any liabilities to third parties as is foreseeable arising out of loss or damage to the bridge or the project site.

 

29.

 

 

 








 










 

 



 

 

 

 

 


 


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