BUILT-IN RESILIENCE

DELIVERING GROWTH
NCC LIMITED
Annual Report 2021-22

Annual Report 2021-22 1

TABLE OF CONTENTS
Built-in Resilience Delivering Growth 01
About Us 02
Corporate Information 03
Our Major Clients 04
Message from Founder & Chairman Emeritus 05
Chairman’s Message 06
Discussion with Managing Director 08
Key Performance Indicators 10
Corporate Social Responsibility 12
Directors’ Report 13
Management Discussion & Analysis 25
Report on Corporate Governance 31
Business Responsibility Report 46
Standalone Financial Statements 52
Consolidated Financial Statements 120

Disclaimer:
In this Annual report we have disclosed forward-looking information to enable investors to comprehend our prospects and take informed investment
decisions. This report and other statements – written and oral – that we periodically make contain forward- looking statements that set out anticipated
results based on the management’s plans and assumptions. We have tried wherever possible to identify such statements by using words such as
‘anticipates’, ‘estimates’, ‘expects’, ‘projects’, ‘intends’, ‘plans’, ‘believes’ and words of similar substance in connection with any discussion of future
performance. We cannot guarantee that these forward-looking statements will be realised, although we believe we have been prudent in assumptions.
The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties
materialise, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. We
undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
2 NCC LIMITED
 BUILT-IN RESILIENCE
DELIVERING GROWTH
Over the years we have set NCC as a benchmark among construction
companies with our unique business model and operational approach.
During the tough years in the past, we focused on making NCC’s
internal environment more resilient
Hemant M Nerurkar
Chairman
Chairman’s Message on Page 06

We have maintained our strength and decisive attitude, strong execution

skills, capabilities, diverse order booking and debt reduction in the year
under review
A A V Ranga Raju
Managing Director
Discussion with MD on page 08

Annual Report 2021-22 1

ABOUT US
Established in 1978 as a partnership firm and converted into a limited company
in 1990, NCC has progressed consistently and is now in its 44th year. We are one
of the leading construction companies in terms of revenue. NCC is entrenched
in its values of openness and trust, integrity and reliability, teamwork and
collaboration, commitment and creativity.
NCC undertakes construction in segments such as:

Buildings & Water &

Roads Electrical Mining
Housing Environment

Irrigation Power Railways Metals

ENVIRONMENT, HEALTH AND SAFETY POLICY OUR PEOPLE

NCC Limited is committed to prevent ill Health & Injury to its Experienced human capital of 5109 spread across head office,
Employees, Contractors and Visitors and Environmental Pollution regional offices and various sites.
associated with all its activities and services through:
• Establishing, implementing and maintaining Environmental
and Occupational Health & Safety Management Systems in
compliance with International Standards.
• Continually improving the Health, Safety & Environmental
performance by setting and reviewing relevant objectives
and targets.
• Complying with applicable EHS legal and other requirements.
• Dissemination of this EHS Policy through effective
communication and training to personnel working for
and on behalf on of NCC and be made available to other
interested parties, as required.

2 NCC LIMITED
CORPORATE INFORMATION
Padma Shri Awardee
Dr A V S Raju, Founder & Chairman Emeritus

Board of Directors Chief Financial Officer & EVP (F&A) Registered Office
Sri K Krishna Rao NCC House
Sri Hemant M Nerurkar
Madhapur, Hyderabad - 500 081
Independent Director - Chairman
Tel: +91 40 23268888
Company Secretary & EVP (Legal)
Email: [email protected]
Smt Renu Challu Sri M V Srinivasa Murthy
www.ncclimited.com
Independent Director
Statutory Auditors
Dr. A S Durga Prasad Registrar and Share Transfer Agents
M/s. S R Batliboi & Associates LLP
Independent Director KFin Technologies Limited
Chartered Accountants
Selenium Tower B, Plot No.31 & 32
THE SKYVIEW 10
Sri O P Jagetiya Gachibowli, Financial District,
Survey No. 83/1, Raidurgam
Independent Director Nanakramguda, Serilingampally,
Hyderabad - 500 032
Hyderabad -500 032
Sri Utpal Sheth Toll Free No: 1800 309 4001
Director Bankers Email: [email protected]
State Bank of India www: kfintech.com
Sri A A V Ranga Raju Canara Bank
Managing Director Punjab National Bank
Indian Overseas Bank
Sri A G K Raju ICICI Bank
Executive Director Standard Chartered Bank
IDBI Bank
Sri A S N Raju Union Bank of India
Wholetime Director IndusInd Bank
Punjab & Sind Bank
Sri J V Ranga Raju Indian Bank
Wholetime Director Export Import Bank of India
Karnataka Bank
Sri A V N Raju
Wholetime Director

32nd Annual General Meeting

Monday, 22nd August 2022
at 3.00 p.m. (IST) through VC/OAVM

Annual Report 2021-22 3

OUR MAJOR CLIENTS
Airports Authority of India, New Delhi Ministry of Transport & Communication - Govt. of Oman
Allahabad Development Authority Limited Mumbai Metropolitan Region Development Authority, Mumbai
Amaravathi Development Corporation Ltd. Municipal Corporation of Greater Mumbai
Andhra Pradesh Township Infrastructure Development Muscat Municipality, Sultanate of Oman
Ansal Properties & Infrastructure Limited, Lucknow Nagpur Metro Rail Corporation Ltd. Nagpur
AP Capital Region Development Authority, Vijayawada Nalanda University, Rajgir, Bihar
AP Medical Services & Infrastructure Development Corporation National Highways Authority of India (NHAI)
Ballari City Corporation, Ballari National Institute of Technology
Bangalore Electricity Supply Company Limited, Bangalore National Mineral Development Corporation Limited
Bangalore Metro Rail Corporation, Bangalore National Thermal Power Corporation
Bennett Coleman and Company Limited Navi Mumbai Municipal Corporation
Bharat Heavy Electricals Limited Naya Raipur Atal Nagar Vikas Pradikaran
Bihar Agricultural University NBCC Limited
Bihar Medical Services & Infrastructure Corporation Limited Odisha Bridge & Construction Corporation Limited
Bridge and Roof Co. (India) Ltd Pacschimanchal Vidyut Vitran Nigam Limited
Central Public Works Department Patni Computers
Chennai Metro Rail Limited Public Health Engineering Department (of various states)
Chennai Metropolitan Water Supply and Sewerage Board Purvanchal Vidyut Vitran Nigam Limited
Dakshinanchal Vidyut Vitran Nigam Ltd Rail Vikas Nigam Limited
Delhi Metro Rail Corporation Limited Rajiv Gandhi Rural Housing Corporation Limited, Bangalore
Dept. of Space, Govt. of India, Sriharikota Reliance Industries Limited
Dept. of Sports, Govt. of Uttarakhand Reserve Bank of India
Directorate of Arts & Culture, Meghalaya Road Development authority, Srilanka
Engineers India Limited Rural water supply & Sanitation, Odisha
Greater Hyderabad Municipal Corporation, Hyderabad, Telangana Sahara India Commercial Corporation Limited, Pune
Greater Visakhapatnam Municipal Corporation, Visakhapatnam, AP Sardar Sarovar Narmada Nigam Limited
Gujarat Water Supply and Sewerage Board Shriram Properties Private Limited
Hindustan Aeronautics Limited Singareni Collieries Company Limited
Hindustan Steelworks Construction Limited State Electricity Boards (of various States)
HLL Infra Tech Serivces Limited State Public Works Departments (of various states)
Hyderabad Growth Corridor Limited, Hyderabad State Water & Sanitation Mission, (NG&RWS Dept), Govt of UP
Hyderabad Metropolitan Water Supply and Sewerage Board Steel Authority of India Limited
Indian Institute of Technology, Jodhpur Symbiosis University
Irrigation and CAD departments (of various States) Tamil Nadu Generation and Distribution Corporation Limited,
Jharkhand Bijili Vitaran Nigam Limited Chennai
Jharkhand Urban Infrastructure Development Company Limited Tamil Nadu Housing Board
Karnataka Housing Board Tamil Nadu Trade Promotion Organization
Karnataka Road Development Corporation Telangana Sate Power Generation Corporation Limited
Madhya Pradesh Public Works Department, Bhopal, Madhya The Project Seabird, New Delhi
Pradesh The West Bengal Power Development Corporation Limited
Madhyanchal Vidyut Vitran Nigam Limited Transmission Corporation of Telangana Limited
Mahanadi Coal Fields Limited UP Expressway Industrial Development Authority
Maharashtra Airport Development Company, Mumbai Uttar Pradesh Housing & Development Board, Lucknow
Maharashtra Metro Rail Corporation Ltd. West Bengal Housing Infrastructure Limited
Maharashtra State Road Development Corporation Ltd Western Coalfields Limited
Military Engineer Services

4 NCC LIMITED
MESSAGE FROM THE
FOUNDER & CHAIRMAN EMERITUS
Dear Shareholders, NCC continue to be a key
constituent in building the
At the outset, I am
country’s infrastructure, which
delighted that FY22 has
is akin to our vision and mission.
been a remarkable year
Through diversified construction
concerning revenue
abilities and strong execution
growth and strong Balance
skills we have been creating
Sheet performance. I
value for all our stakeholders
would primarily attribute
as well as for the country as a
this success to the hard
whole.
work of our people and
as an outcome of our I thank you all – our valued
management’s operational shareholders for their continued
skills. Our national and local patronage.
political leaderships are
Warm Regards
relentlessly pursuing various
developmental activities to Dr. AVS Raju
take this country to the next Founder & Chairman Emeritus
level.

VISION MISSION VALUES

To be a world-class construction To build a strong future ensuring Openness and Trust
and infrastructure enterprise increased returns to shareholders
Integrity and reliability
committed to quality, timely and enhanced support to
completion, customer satisfaction, associates Team work and collaboration
continuous learning and Commitment
To adopt the latest technologies
enhancement of stakeholders’
in the field of engineering, Creativity
value
construction, operation and
maintenance of infrastructure
projects
To encourage innovation,
professional integrity, upgradation
of knowledge and skills of
employees and a safe working
environment
To be a responsible corporate
citizen committed to the social
cause

Annual Report 2021-22 5

CHAIRMAN’S MESSAGE

During the hard times

our company exhibited
time-tested operational
endurance, meticulously built
over the years. Among the
infrastructure-construction
companies we are indeed
uniquely positioned with our
execution skills and pragmatic
financial, risk and project
management capabilities.

Dear Shareholders, On Performance

FY22 year’s performance is yet again a testimonial of our Performance in FY22 is an outcome of our key strategies i.e to
company’s ability to remain resilient during difficult times. remain asset light, strong execution coupled with our financial
This year has been relatively a good year for our Company. I discipline. We increased our revenue across our key business
congratulate the management and our strong team of employees verticals. Margins during the year were subdued because of
for tirelessly working for this success. higher commodity prices. On a standalone basis our revenue
A Resilient NCC during the year under review is ` 9,930 crore as against ` 7256
crore in FY21. Segment diversity across building, mining, railways,
It’s a known fact that macro-economic volatilities make an adverse electrical, water & environment is one of the key differentiators
impact on businesses. The outcome of such shocks can at times at NCC. Our diversified order book asset is at ` 39,361 crore as
be detrimental for many, yet few remain resilient during these of March 31, 2022. This includes new orders of ` 12,158 crore
adverse times as they learn, adapt, change and emerge stronger. received during FY 22. I am happy that we considerably reduced
To remain strong has its foundation on the quality of corporate our debts during the year.
governance, capabilities such as strategic agility, risk management
and focus on quality. At NCC since its inception, the company has External environment
gone through many economic upheavals. Over the years we have
set NCC as a benchmark among construction companies with We have stepped into FY23 amidst mounting global economic
our unique business model and operational approach. During the challenges and fiscal measures by our country to contain the
tough years in the past, we focused on making NCC’s internal impact. Retail inflation increased to an eight-year high of 7.79%
environment more resilient. in April, 2022. The RBI’s twice hike in repo rate was impending
due to the inflation spike and global macroeconomic scenarios.

6 NCC LIMITED
At NCC since its inception, the company has gone through
many economic upheavals. Over the years we have set NCC
as a benchmark among construction companies with our
unique business model and operational approach.
Performance in FY22 is an outcome of our key strategies
i.e to remain asset light, strong execution coupled with our
financial discipline.

Increased interest rates will certainly make the cost of borrowing ¾¾ The finance ministry has asked key infrastructure ministries
increase and impact the overall feasibility of large infrastructure and departments to speed up the project with a 60% capex
projects. However, with inflation lingering persistently high, RBI expenditure i.e ` 4.45 Lakh crore target to reach by end of
had little choice. I hope the hike in the repo rate would contain September, 2022. The government has put in a monitoring
rising commodity prices and ensure sustainable growth in the mechanism to check the progress of the projects.
long term. The cost of construction input materials like steel and
cement had gone up significantly in the last six months, resulting Dividend
in construction costs going up substantially. After the repo rate The Board of Directors of NCC Limited at its meeting held on May
hikes announced by RBI, I hope, going forward commodities 11, 2022, has recommended a Dividend of ` 2/- (100%) per share
prices for items like steel and cement to come down. The on the Equity Share of face value of ` 2/- each, for the Financial
government in May, 22 had imposed a 15% tax on exports of Year 2021-22, subject to the approval of the Members at the
several key categories of steel in a bid to control the increasing ensuing Annual General body meeting.
price of the alloy in the domestic market. There was no duty on
steel exports earlier. This initiative has resulted in the steel prices Corporate Social Responsibility
coming down in early June,22.
We continue to uphold our founding legacy of commitment
At NCC, the management is keenly watching all the opportunities towards society and channelling resources for holistic social
and challenges for evaluating and exploring opportunities and upliftment. During the year our key social interventions were in
containing margin risks. the areas of rural housing, education, healthcare and women and
childcare. During the year the company spent an amount of ` 854
Key Drivers of the Business
Lakhs towards 20 social projects in the states of Andhra Pradesh,
¾¾ The country’s infrastructure development plans are intact Telangana, Maharashtra and Utter Pradesh.
despite these challenges
I take this opportunity to thank our employees, customers,
¾¾ In recent years, there has been a significant clean-up shareholders, suppliers, banks and Central and State Government
happening in the banking as well as public infrastructure agencies for their continued support.
ecosystems. NPAs have significantly come down since 2018.
The Banks are in a position to support the infrastructure
Yours truly
sector.
¾¾ There is an increase in the FY23 budget allocation for capital Hemant M Nerurkar
expenditure from ` 6.02 lakh crore in FY22 to ` 7.5 lakh Chairman
crore.

Annual Report 2021-22 7

DISCUSSION WITH MANAGING DIRECTOR

Going forward we expect more

orders to come in from
diverse segments like buildings,
roads, water and others.
I am confident that FY 2022-23
and beyond we are on a strong
position aided by our existing
order book as well as the new
emerging opportunities.

Dear Shareholders, economy. Amidst external challenges, as per the initial estimates,
India’s GDP is expected to grow in the range of 7.5% in FY 2022-
We began the year amidst a huge wave of the pandemic which
23. With low non-performing assets (NPAs) and healthy balance
took a severe toll on lives and livelihoods both in our country and
sheets, the Indian banking system is well positioned to offer
the world over. As the world was witnessing the disruptions
much needed support to businesses. As a result, despite certain
brought by the pandemic, economic activity continued to
setbacks, I am optimistic that India’s growth story will continue.
experience severe volatility and uncertainty. Your company too
was affected particularly in the first half year of the year under Overview of FY 2021-22
review due to the disruptions caused by the pandemic and as
I had projected in my previous letter about improving our order
a result of the pragmatic steps taken by the management, the
book and a strong FY 2021-22. I am happy to inform you that
situation gradually improved especially in the 3rd & 4th quarters.
with the relentless pursuit of our team with support from our
We have maintained our strength and decisive attitude, strong
clients, we have achieved good growth in Turnover of the
execution skills, capabilities, diverse order booking and debt
Company besides good collections from the clients including
reduction in the year under review.
Andhra Pradesh which led to a steep reduction in the debt of the
The ongoing geopolitical conflict, re-imposition of lockdown in Company. The margins were affected in the year under review
China on account of fresh COVID-19 cases, global inflation and because an increase in the input costs. An order book to sales
continuing supply shortages are expected to adversely impact ratio of 4x provides strong visibility in revenue growth in the near
the global GDP growth in 2022-23. The world bank expects term future. We have a strong order book from buildings, water,
global growth to decelerate from an estimated 5.5% to 3.25%. environment, railways, electricals and mining segments. Some of
The Govt. of India’s decision to lower fuel prices is one of our major clients in buildings include UP Housing Development
the important steps to contain the increasing burden on the Board, AAI, AIIMS, NBCC, BMRCL and MMRDA. Our water and

8 NCC LIMITED
NCC will continue playing an essential role in the
advancement of various infrastructure sectors of the
country. The same can be seen in our order book. Our
strong revenue visibility in FY 2022-23 and beyond is
attributable to our dynamic order book and exceptional
execution skills.

environment order book is well diversified across proactive and The Gati Shakti initiative is one of the centerpieces of the Budget
growth-oriented states such as Gujarat, Telangana, Uttar Pradesh, 2022-23. Roads and railways have seen a large increase in outlays,
Odisha, Jharkhand and Rajasthan. Similarly, our clients and project with a year-on-year increase of more than 50%. Over the next
locations are well diversified across all other business segments. three years, 100 PM Gati Shakti Cargo terminals are envisioned
as part of the rail connection. Similarly, it is suggested that the
On a standalone basis our revenue increased by 37% year on
National Highways network be expanded by 25,000 kilometres
year i.e from ` 7256 Crores to ` 9930 crores. It may be noted
this year, about double the maximum accomplished in any of the
that commodity price increase during the financial year had an
previous five years. The proposed budget for urban infrastructure,
impact on the margins. Despite such an increase, the Company
housing and ports has been kept at FY 2021-22 levels with the Jal
posted a Net Profit of ` 490 crore as compared to ` 261 crore the
Jeevan Mission budget being increased by 20%.
previous year. We continue to closely watch the commodity rates.
I must say that the RBI’s decision to increase the repo rate was an I am pleased that State Governments are giving the required
expected measure. We would continue to focus on orders with importance to areas where they have jurisdiction, including urban
our benchmark margins and cost control initiatives while going infrastructure, irrigation, health and education. The budget has
forward. increased the outlay for “State Government Support for Capital
Expenditure” from ` 15,000 crore in 2021-22 to ` 1 lakh crore
Situational Analysis:
in 2022-23 to improve the infrastructure in these sectors. NCC is
By 2022, India is predicted to overtake China as the world’s third poised to encash new opportunities and I am confident that NCC
largest market. India’s GDP is expected to double in the next will keep up its frontline position in the infrastructure construction
7-8 years, which will demand a huge thrust on infrastructure segment.
expenditure. For India’s development to be accelerated, it will
Remarks at the end
require investments of about ` 50 trillion across all sectors of
public and private infrastructure. NCC will continue playing an essential role in the advancement
of various infrastructure sectors of the country. The same can be
The Union Government has reaffirmed its commitment to utilize
seen in our order book. Our strong revenue visibility in FY 2022-
infrastructure as a force multiplier for sustainable economic
23 and beyond is attributable to our dynamic order book and
growth in Budget 2022-23, with a budgeted infrastructure
exceptional execution skills.
investment of over ` 10 lakh crore and a capex increase of over
35% year-on-year. One of the primary focus areas in infrastructure
Regards
is using multimodal transportation infrastructure to minimize
logistics costs and improve India’s overall competitiveness. A A V Ranga Raju
Similarly, the budget has emphasized the importance of Managing Director
collaboration across several Ministries/Agencies to identify and
complete important projects on time.

Annual Report 2021-22 9

KEY PERFORMANCE INDICATORS
TURNOVER (` in crore) EBIDTA (` in crore)

FY 22 10038 FY 22 996
FY 21 7372 FY 21 855
FY 20 8370 FY 20 1030
FY 19 12198 FY 19 1423
FY 18 7675 FY 18 855

PAT (` in crore) CASH PROFIT (` in crore)

FY 22 490 FY 22 672
FY 21 261 FY 21 436
FY 20 382 FY 20 560
FY 19 564 FY 19 713
FY 18 287 FY 18 404

EBIDTA (%) PAT (%)

FY 22 10.03 FY 22 4.88
FY 21 11.79 FY 21 3.55
FY 20 12.53 FY 20 4.56
FY 19 11.78 FY 19 4.62
FY 18 11.31 FY 18 3.74

10 NCC LIMITED
GROSS BLOCK (` in crore) ORDER BOOK (` in crore)

FY 22 2267 FY 22 39361
FY 21 2173 FY 21 37911
FY 20 2042 FY 20 26572
FY 19 1975 FY 19 35121
FY 18 1573 FY 18 32532

DEBT EQUITY - RATIO BOOK VALUE PER SHARE (`)

FY 22 0.20 FY 22 95.16
FY 21 0.33 FY 21 87.97
FY 20 0.37 FY 20 83.72
FY 19 0.42 FY 19 78.74
FY 18 0.31 FY 18 70.62

basic EPS (`) DIVIDEND (%)

FY 22 8.04 FY 22 100
FY 21 4.29 FY 21 40
FY 20 6.34 FY 20 10
FY 19 9.39 FY 19 75
FY 18 5.09 FY 18 50

Annual Report 2021-22 11

CORPORATE SOCIAL RESPONSIBILITY
Shared responsibility and generosity for society have long been part of the Indian tradition. The
tradition continues at NCC, where Corporate Social Responsibility (CSR) is etched in the organisational
DNA. It is therefore no surprise that at NCC, we continuously think of ways to give back to society
from successful business endeavours towards Community Development. During the financial year
2021-22, NCC undertook a wide range of socio-economic, healthcare, and educational initiatives
under its CSR Programme touching the lives of the marginalized population.

Health Care
Mobile Milk Mid-Day
Bank for Dhaatri Meal Van to
Mother’s Milk Akshaya Patra
Bank, Hyderabad Foundation,
Lucknow

Rural Development
Skill Rural Housing at
Development Antarvedipalem,
Center at East Godavari
Antarvedipalem, District,
East Godavari Andhra Pradesh
District,
Andhra Pradesh

Education
Robotics in Online education
Academics - for the dropouts
hands-on-training & unschooled
for children from students in
government Secondary
schools in the grades through
latest Robotics AAS Vidyalaya
technologies, at its Nagpur
Hyderabad Centre

12 NCC LIMITED
BOARD’S REPORT
To the Members, year. The operations resulted in a net profit attributable to the
shareholders of the Company of ` 482.41crores as against ` 268.31
Your Directors take pleasure in presenting the 32 Annual Report
nd
crores in the previous financial year.
together with the Audited Statement of Accounts for the Financial
Year ended March 31, 2022. During the year the Company, on consolidated basis, bagged new
orders valued around ` 12158 crores (including change in scope of
Standalone Financial Results (` in crores)
work) and after deducting the Orders executed, the order Book of
Particulars 2021-22 2020-21 the company as on March 31, 2022 stood at ` 39361 crores.
Revenue from Operations 9930.03 7256.02 Aftermath of COVID 19 in the FY 2020-21 and the first half of
Other Income 108.21 115.60 the FY under review, there has been a gradual improvement in
Total Income 10038.24 7371.62 the operations of the Company consequent to the proactive steps
Profit before Interest, Depreciation, taken by the Company. The Company is putting in all efforts to
1104.32 970.97
Exceptional Items and Tax (PBIDT) achieve higher levels of growth and post a further improvement in
Less: Finance Costs 459.60 457.81 its performance in the FY 2022-23.
Profit before Depreciation, Exceptional Items Dividend
644.72 513.16
and Tax
Less: Depreciation and Amortisation Expenses 182.34 174.09 Your Board takes pleasure in recommending payment of Dividend
Profit before exceptional item & tax 462.38 339.07 of ` 2/- (100%) per Equity Share of ` 2/- each as against ` 0.80 per
Exceptional items (Net) 145.64 - Equity Share in the previous year for the consideration and approval
of the members of the Company at the forthcoming Annual General
Profit before tax 608.02 339.07
Meeting.
Provision for Tax(Including earlier Year
117.90 77.58 Transfer to Reserves
Taxation)
Profit after Tax 490.12 261.49 Out of the amount of ` 1919.75 crores available for appropriation
Other comprehensive income / (loss) for the your Board approved transfer of ` 250.00 crores to the Reserves and
(2.82) (11.67)
year the remaining amount of ` 1669.75 crores in the retained earnings.
Total comprehensive income for the year 487.30 249.82
Management Discussion and Analysis
Retained earnings- Opening Balance 1478.42 1429.14
Add: Profit for the Year 490.12 261.49 Business Overview and Outlook and the state of the affairs of the
Less: Transferred to General Reserve 250.00 200.00 Company and the Industry in which it operates, is discussed in detail
Less: Dividend paid during the year 48.79 12.21 in the section relating to Management Discussion & Analysis which
Retained earnings - Closing Balance 1669.75 1478.42 forms part of this Report.
Paid up Capital 121.97 121.97 Change in nature of business
Operational performance There has been no change in the nature of business carried on by the
Company during the year under review.
A. Standalone
Material Changes and Commitments affecting the financial
Your Board takes pleasure in reporting that the Revenue from
position of the Company
Operations of the Company for the Financial Year ended 31st March
2022 amounted to ` 9930.03 crores as against ` 7256.02 crores There are no Material Changes and Commitments affecting the
in FY 2020-21 and earned a Profit before Interest, Depreciation, financial position of the Company which occurred between the end
Exceptional Items and Tax (PBIDT) of ` 1104.32 crores for the F.Y of the financial year to which the financial statements relate and the
2021-22 as against ` 970.97 crores in the previous year. After date of this Report.
deducting financial charges of ` 459.60 crores, providing a sum of Merger
` 182.34 crores towards depreciation, ` 117.90 crores for income
tax and after exceptional items of ` 145.64 crores, the operations NCC Limited and two of its Wholly Owned Subsidiary Companies
of the Company resulted in a net profit of ` 490.12 crores for the (WOSs) viz., Aster Rail Pvt. Ltd., and Vaidehi Avenues Ltd., in their
F.Y 2021-22 as against ` 261.49 crores in F.Y 2020-21. respective Board meetings held in December, 2019 subject to
requisite approvals including that of NCLT, approved the merger of
B. Consolidated said WOSs with NCC Limited (Holding Company) with the appointed
date as 1st April, 2019. NCLT vide its Order dated 26th August 2021
During the year under review, the Revenue from Operations of
has approved the merger with revised appointed date as 1st April
the Company on a consolidated basis amounted to ` 11137.96
2020. The Effective date, being the date of filing of Form INC-28 was
crores as against ` 7949.42 crores in the previous fiscal. Your
30th September 2021. All the formalities relating to the merger have
Company has earned a PBIDT of ` 1094.52 crores for the F.Y
been completed.
2021-22 as against ` 1034.99 crores in the previous Financial

Annual Report 2021-22 13

Share Capital (e) The Company had laid down internal financial controls to
During the financial year under review the Authorised Share Capital be followed by the Company and that such internal financial
of the Company increased from ` 150.00 Crores to ` 161.50 Crores controls are adequate and were operating effectively; and
consequent to the Merger of two Wholly-owned Subsidiaries with (f) We have devised proper systems to ensure compliance with
the Company as indicated above. There has however been no the provisions of all applicable laws and that such systems
change in the Paid up Share Capital of the Company. were adequate and operating effectively.
Preferential Issue of Warrants to Promoters Subsidiary / Joint venture Companies:
Pursuant to the provisions of the Companies Act, 2013, SEBI (Issue The Company has 24 subsidiaries (including step down subsidiaries)
of Capital and Disclosure Requirements) Regulations, 2018 (SEBI as on 31st March 2022. During the financial year the entire equity
ICDR Regulations) and the approval accorded by the members of stake held in NCC Vizag Urban Infrastructure Ltd (NCCVUIL), a
the Company, the Company has issued 1,80,00,000 Convertible subsidiary was divested and NCCVUIL ceased to be a subsidiary
Warrants on Preferential basis to the Promoters / Promoter Group of the Company. Further, 7 step-down subsidiaries Viz. Vara
Shareholders of the Company at a price of ` 59/- per warrant Infrastructure Private Limited, Sradha Real Estates Private Limited,
(Including premium of ` 57/- per warrant). The Company has received Siripada Homes Private Limited, NCC Urban Meadows Private
25% of the total consideration money amounting to ` 26.55 crores Limited, NCC Urban Villas Private Limited, Sri Raga Nivas Ventures
as per the applicable SEBI ICDR Regulations and allotted partly paid Private Limited and Nagarjuna Suites Private Limited and one
warrants to the allottees on 12th February 2021. These warrants are Subsidiary Viz. NCC International Convention Centre Limited which
due for conversion into equity shares of the Company within 18 were not having operations, on application from the respective
months from the date of Allotment i.e. on or before 11th August companies, were Struck-off by the Registrar of Companies during
2022, subject to payment of balance 75% of the consideration the FY under review.
amount by the allottees. As per the provisions of Section 129 of the Companies Act, 2013
Particulars of Contracts or Arrangements with Related Parties read with the Companies (Accounts) Rules, 2014, a separate
statement containing the salient features of the financial statements
All related party transactions entered during the financial year were of the Subsidiary Companies / Associate Companies/Joint Venture
in the ordinary course of the business of the Company and were on Companies is prepared in Form AOC-1 and is attached to the
an arm’s length basis. There were no materially significant related Financial Statements of the Company.
party transactions entered by the Company during the year with the
Promoters, Directors, Key Managerial Personnel or other persons In accordance with the provisions of the Companies Act, 2013 and
which may have a potential conflict with the interest of the Company. the Rules framed thereunder, the Balance Sheet, Statement of
Profit and Loss and other documents of the subsidiary companies
The policy on Related Party Transactions as approved by the Audit are being made available on the website of the Company and
Committee and the Board of Directors is hosted on the website of are not attached with the Financial Statements of the Company.
the Company and the link for the same is: http:// ncclimited.com/ The Company will make available the Financial Statements of the
Policies.html. subsidiary companies and the related information to any member
Directors’ responsibility statement of the Company who may be interested in obtaining the same.
Pursuant to the provisions of Section 134(5) of the Companies Act, In compliance with Section 134 of the Companies Act, 2013 read
2013, your Directors to the best of their knowledge and ability with the rules framed thereunder and the provisions of the SEBI
confirm as under: (Listing Obligations and Disclosure Requirement) Regulations,
2015, as amended from time to time the Financial Statements
(a) In the preparation of the annual accounts, the applicable for the F.Y 2021-22 have been prepared in compliance with the
accounting standards have been followed along with proper applicable Indian Accounting Standards.
explanation relating to material departures, if any;
Consolidated financial statements
(b) We have selected such accounting policies and applied them
In compliance with Regulation 34 of the SEBI (Listing Obligations
consistently and made judgments and estimates that are
and Disclosure Requirements) Regulations, 2015 and in compliance
reasonable and prudent so as to give a true and fair view of
with the provisions of Section 129(3) and other applicable
the state of affairs of the Company as at 31st March, 2022
provisions of the Companies Act, 2013 and the Indian Accounting
and of the profit of the Company for the financial year ended
Standards Ind AS-110 and other applicable Accounting Standards,
31st March, 2022;
your Directors have pleasure in attaching the consolidated financial
(c) We have taken proper and sufficient care for the maintenance statements for the financial year ended March 31, 2022, which
of adequate accounting records in accordance with the forms part of the Annual Report.
provisions of the said Act for safeguarding the assets of the
Disclosures: Deposits
Company and for preventing and detecting fraud and other
irregularities; During the year, the Company has not accepted any public deposits.
(d) The annual accounts have been prepared on a going concern
basis;

14 NCC LIMITED
Conservation of energy, technology absorption and foreign Policy on Directors’ Appointment and remuneration and
exchange earnings and outgo other details
A. Conservation of energy The Company’s policy on Directors’ appointment and remuneration
The Company’s core activity is civil construction which is not and other matters pursuant to Section 178(3) of the Companies
power intensive. The Company is making every effort to Act, 2013 is hosted on the Company’s website and the web link
conserve the usage of power wherever possible. thereto is: http://ncclimited.com/Policies.html.
B. R&D and technology absorption: Not applicable The requisite information pursuant to Section 178(4) of the Act is
given in the Corporate Governance Report which forms part of the
C. Foreign exchange earnings and outgo during the F.Y 2021-22 Annual Report.
Foreign exchange earnings - ` 6.97 crores
Board Evaluation
Foreign exchange outgo:
The Board of Directors has carried out an annual evaluation of its
i. Towards travel ` 0.10 crores
own performance, Board Committees, the Individual Directors, the
ii. Towards import of capital goods & material supplies Chairman of the Company etc pursuant to the provisions of the
` 59.93 crores Companies Act, 2013 read with the Rules framed thereunder and
During the year under review no significant and material orders SEBI (LODR) Regulations.
were passed by the regulators or courts or tribunals impacting the The performance of the Board was evaluated by the Board after
going concern status and the Company’s operations in future. seeking inputs from all the Directors on the basis of criteria such
Particulars of loans, guarantees or investments under Section 186; as the board composition and structure, effectiveness of board
processes, information and functioning, etc.
Details of Loans, Guarantees, Investments under the provisions
of Section 186 of the Companies Act, 2013 read with Companies The performance of the Committees was evaluated by the Board
(Meetings of Board and its Powers) Rules, 2014 as at 31st March, after seeking inputs from the Committee Members on the basis of
2022 form part of the Notes to the financial statements provided criteria such as the composition of committees, effectiveness of
in this Annual Report. committee meetings, etc.
In a separate meeting of Independent Directors, performance of the
Directors:
Directors, the Board as a whole and the Chairman of the Company
In pursuance of Section 152 of the Companies Act, 2013 and the was evaluated, taking into account the views of executive directors
rules framed there under, Sri J V Ranga Raju (DIN 00020547), Whole- and non-executive directors.
time Director, and Sri Utpal Sheth (DIN 00081012) Director are
The Board and the Nomination and Remuneration Committee
liable to retire by rotation, at the ensuing Annual General Meeting
reviewed the performance of individual directors on the basis of
and being eligible have offered themselves for reappointment.
criteria such as the contribution of the individual director to the
Based on the recommendation of the Nomination and Remuneration Board and Committee meetings like preparedness on the issues to
Committee and subject to the approval of the members of the be discussed, meaningful and constructive contribution and inputs
Company at the ensuing AGM, the Board of Directors at its meeting in meetings, etc.
held on 8th February 2022 have approved the re-appointment of
Sri A A V Ranga Raju as the Managing Director, Sri A G K Raju as Meetings of Board of Directors
the Executive Director and Sri J V Ranga Raju, as a Whole-time The Board Calendar is prepared and circulated in advance to the
Director of the Company for another term of five (5) years w.e.f. Directors. During the Financial Year under review the Board has
1st April 2022. met 7 times i.e. on April 28, 2021, May 28, 2021, August 5, 2021,
The Independent Directors have submitted the requisite declaration October 25, 2021, November 9, 2021, February 8, 2022 and March
of independence, pursuant to Section 149(7) of the Companies Act, 31, 2022. The details with respect to the Board and Committee
2013 stating that they meet the criteria of independence as provided meetings and attendance there at as required under the Secretarial
in sub-section (6) of Section 149 of the Companies Act, 2013 read Standard-1 issued by the Institute of Company Secretaries of India
with sub rule (1) and (2) of Rule 6 of Companies (Appointment and have been provided in the Corporate Governance Report forming
Qualification of Directors) Rules, 2014 as amended. part of this Annual Report.

Key Managerial Personnel Familiarization Programme

As on 31st March 2022 Sri A A V Ranga Raju, Managing Director, The details of the familiarization programme formulated for
Sri A G K Raju, Executive Director, Sri A S N Raju, Sri J V Ranga Raju Independent Directors is hosted on the Company’s website and the
and Sri A V N Raju, Wholetime Directors, Sri K Krishna Rao, EVP web link thereto is http://ncclimited.com/corporate_ governance.
(F&A) and CFO and Sri M V Srinivasa Murthy, Company Secretary html
& EVP (Legal) continued as the Key Managerial Personnel of the Audit Committee
Company in accordance with the provisions of Section 2(51)
and 203 of the Companies Act, 2013 read with the Companies The Company has in place an Audit Committee in terms of the
(Appointment and Remuneration of Managerial Personnel) Rules, requirements of the Companies Act, 2013 read with the Rules made
2014. thereunder and Regulation 18 of the SEBI (LODR) Regulations,

Annual Report 2021-22 15

2015. The details relating to the Audit Committee are given in March 31, 2022 form part of this Annual Report and do not contain
the section relating to Corporate Governance forming part of the any qualification(s) or adverse observations.
Annual Report. The present Statutory Auditors are eligible for reappointment for
Whistle Blower Policy/ Vigil Mechanism a second term of 5 consecutive years. The Company has received
confirmation from the Auditors to the effect that their appointment,
Pursuant to Section 177 of the Companies Act, 2013 and the
if made, will be in accordance with the limits specified under the
Rules framed there under and pursuant to the provisions of SEBI
Companies Act, 2013 and the firm satisfies the criteria specified
(Listing Obligations and Disclosure Requirements) Regulations,
in Section 141 of the Companies Act, 2013 read with Rule 4 of
2015 the Company has established a mechanism through which
Companies (Audit & Auditors) Rules 2014. The Board is of the
all the stakeholders can report the suspected frauds and genuine
opinion that continuation of M/s. S R Batliboi & Associates LLP,
grievances to the appropriate authority. The Whistle Blower Policy
Chartered Accountants, as the Statutory Auditors of the Company
which has been approved by the Board of Directors of the Company
will be in the best interest of the Company and therefore, the
has been hosted on the website of the Company http://ncclimited.
members are requested to consider their re-appointment as
com/Policies.html. During the year under review the Company has
the Statutory Auditors of the Company, for second term of five
not received any complaint(s) under the said policy.
consecutive years, from the conclusion of the ensuing Annual
Risk Management General Meeting, till the Annual General Meeting to be held in the
year 2027, at such remuneration mutually agreed and approved by
The Company has established Enterprise Risk Management process
the Board.
to manage risks with the objective of maximizing shareholders
value. Secretarial Audit Report
The Board of Directors of the Company has formed a Risk As per the provisions of Section 204(1) of the Companies Act, 2013
Management Committee to implement and monitor the risk and the Rules framed there under, the Company has appointed
management Policy of the Company. The development and M/s. BS & Company Company Secretaries LLP, Practicing Company
implementation of the risk management policy has been covered Secretaries to conduct Secretarial Audit of the records and
in the Management Discussion and Analysis, which forms part of documents of the Company for the Financial Year 2021-22. The
this report. Secretarial Audit Report for the Financial Year ended 31st March,
2022 in Form MR-3 is annexed here to and forms part of this Report
Internal Financial Controls and their adequacy
- Annexure - I. The Secretarial Auditors’ Report to the Members of
The Company has in place adequate internal financial controls the Company for the Financial Year ended March 31, 2022 does
commensurate with the size, scale and complexity of its operations. not contain any qualification(s) or adverse observations.
The Company has policies and procedures in place for ensuring
proper and efficient conduct of its business, the safeguarding of Cost Audit
its assets, the prevention and detection of frauds, the accuracy and In compliance with the provisions of Section 148 of the Companies
completeness of the accounting records and the timely preparation Act, 2013 and the Rules framed thereunder and based on
of reliable financial information. the recommendation of the Audit Committee, the Board of
Directors of the Company at its meeting held on May 28, 2021
Compliance with Secretarial Standards
had appointed M/s. Vajralingam & Co., Cost Accountants (Firm
The Company has complied with applicable provisions of the Registration No.101059) as the Cost Auditors of the Company for
Secretarial Standards issued by the Institute of Company Secretaries the FY 2021-22 to conduct audit of the cost accounts and records
of India and approved by the Government of India under Section maintained by the Company to the extent applicable. In terms of
118(10) of the Companies Act, 2013. the provisions of Section 148(3) of the Companies Act, 2013 read
Annual Return with Rule 14(a)(ii) of the Companies (Audit and Auditors) Rules,
2014, the remuneration of the Cost Auditors has to be ratified by
Pursuant to Section 92 (3) of the Companies Act, 2013 a copy of the members. Accordingly, necessary resolution is proposed at the
the annual return for the financial year ended 31st March 2022 has ensuing AGM for ratification of the remuneration payable to the
been placed on the website of the Company at http://ncclimited. Cost Auditors for FY-2021-22.
com/AGM_EGM_Info.html.
Corporate Governance
Statutory Auditors and their report
Pursuant to the provisions of Chapter IV read with Schedule V
M/s. S R Batliboi & Associates LLP Chartered Accountants (Firm of the SEBI (Listing Obligations and Disclosure Requirements)
Registration No.101049W/ E300004), who were appointed by Regulations, 2015, a separate section on Corporate Governance
the Members of the Company as the Statutory Auditors of the has been incorporated in the Annual Report for the information
Company for a term of five years from the conclusion of the 27th of the members of the Company. A certificate from the Secretarial
Annual General Meeting till the conclusion of the 32nd Annual Auditors of the Company regarding compliance with the conditions
General Meeting conducted the Statutory Audit for the FY- 2021- of Corporate Governance as stipulated under the said Schedule V of
22. The Independent Auditors’ Report(s) to the Members of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
Company in respect of the Standalone Financial Statements and 2015 also forms part of this Annual Report.
the Consolidated Financial Statements for the Financial Year ended

16 NCC LIMITED
Business Responsibility Report Particulars of Employees
As stipulated under Regulation 34 of the SEBI (LODR) Regulation Details in respect of the remuneration paid to the employees as
2015, Business Responsibility Report is attached hereto and forms required under Section 197 (12) of the Companies Act, 2013,
part of the Annual Report. read with Rule 5(2) & (3) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, as amended
Investor Education and Protection Fund (IEPF)
from time to time forms part of this report. The Annual Report and
Pursuant to the applicable provisions of the Companies Act, accounts are being sent to the share-holders excluding the aforesaid
2013, read with the IEPF Authority (Accounting, Audit, Transfer exhibits. Shareholders interested in obtaining this information may
and Refund) Rules, 2016 (‘the Rules’), all unpaid or unclaimed access the same from the Company’s website.
dividend are required to be transferred by the Company to the IEPF
The ratio of the remuneration of each Director to the median
established by the Government of India, after the completion of
employee’s remuneration and other details in terms of Section
seven years. Further, according to the said Rules, the shares on
197(12) of the Companies Act, 2013 read with Rule 5(1) of the
which dividend has not been paid or claimed by the shareholders
Companies (Appointment and Remuneration of Managerial
for seven consecutive years or more shall also be transferred to
Personnel) Rules, 2014, is given in Annexure – III and forms part
the demat account of the IEPF Authority. In compliance with the
of this Report.
aforesaid provisions the Company has transferred the unclaimed
and unpaid dividends and corresponding shares to IEPF. The details Protection of Women at Work Place
of the unclaimed / un paid dividend during the last seven years The Company has formulated a policy on Prevention of Sexual
and also the details of the unclaimed shares transferred to IEPF are Harassment of Women at Workplace in accordance with The Sexual
given in the Report on Corporate Governance forming part of the Harassment of Women at Workplace (Prevention, Prohibition and
Annual Report. Redressal) Act, 2013. The Company has an Internal Complaints
Reporting of Frauds Committee for providing a redressal mechanism pertaining to
sexual harassment of women employees at workplace. During
There have been no instances of fraud reported by the Auditors of
the financial year ended 31st March, 2022, the Company has not
the Company under Section 143(12) of the Companies Act, 2013
received any complaints pertaining to Sexual Harassment.
and the Rules framed there under either to the Company or to the
Central Government. Details of any proceeding pending under the Insolvency and
Bankruptcy Code, 2016 (31 of 2016)
Corporate Social Responsibility
During the year, no corporate insolvency resolution process was
The brief outline of the Corporate Social Responsibility (CSR)
initiated under the Insolvency and Bankruptcy Code, 2016, either
Policy of the Company and the initiatives undertaken by the
by or against the Company, before National Company Law Tribunal;
Company on CSR activities during the year under review are set
out in Annexure-II of this Report in the format prescribed in the Acknowledgements
Companies (Corporate Social Responsibility Policy) Rules, 2014, as Your Directors place on record their sincere appreciation and
amended. The CSR Policy is available on the website of the Company thanks for the valuable cooperation and support received from
http://ncclimited.com/Policies.html. As per the provisions of the the employees of the Company at all levels, Company’s Bankers,
Companies Act, 2013 and the Rules framed thereunder during Central and State Government Authorities, Associates, JV partners,
the F.Y 2021-22 the Company was required to spend an amount clients, consultants, sub-contractors, suppliers and Members of the
of ` 10.68 Crore towards CSR activities. During the F.Y 2021-22 Company and look forward for the same in equal measure in the
the Company had spent an amount of ` 8.54 crores towards CSR coming years.
expenditure upto 31st March, 2022 as per details given in the said
Annexure-II. The shortfall in the expenditure was mainly due to
delay in finalisation of the drawings and local issues. In compliance For and on behalf of the Board
with the applicable statutory provisions the unspent CSR amount of
` 2.14 crores has been transferred to a separate bank account to Hemant M Nerurkar
be utilised for completion of the ongoing CSR projects. Place: Hyderabad Chairman
Date: May 11, 2022 (DIN No. 0265887)

Annual Report 2021-22 17

ANNEXURE – I
Form No. MR-3 (ii) The Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015 as amended from time
[Pursuant to Section 204(1) of the Companies Act, 2013 and to time;
Rule No.9 of the Companies (Appointment and Remuneration of During the period under review, the Company has complied with the
Managerial Personnel) Rules, 2014] provisions of the Act, Rules, Regulations, Guidelines, Standards, etc.
mentioned above.
SECRETARIAL AUDIT REPORT We further report that:
FOR THE FINANCIAL YEAR ENDED MARCH 31, 2022
The Board of Directors of the Company is duly constituted with proper
To, balance of Executive Directors, Non-Executive Directors and Independent
The Members, Directors. The changes in the composition of the Board of Directors that
NCC Limited took place during the period under review were carried out in compliance
Hyderabad with the provisions of the Act.
We have conducted the Secretarial audit of the compliance of applicable
statutory provisions and the adherence to good corporate practices by Adequate notice was given to all directors to schedule the Board meetings,
NCC Limited (hereinafter referred to as the “Company”). Secretarial agenda and detailed notes on agenda were sent in advance, and a system
Audit was conducted in a manner that provided us a reasonable basis for exists for seeking and obtaining further information and clarifications on
evaluating the corporate conducts/ statutory compliances and expressing the agenda items before the meeting and for meaningful participation at
our opinion thereon. the meeting.

Based on our verification of the Company’s books, papers, minute books, During the period under review, resolutions were carried through
forms and returns filed and other documents/records maintained by the majority. As confirmed by the Management, there were no dissenting
Company and also the information provided by the Company, its officers, views expressed by any of the members on any business transacted at the
agents and authorized representatives during the conduct of Secretarial meetings held during the period under review.
audit, we hereby report that in our opinion, the Company has, during
the audit period covering the financial year ended on March 31, 2022 We further report that there are adequate systems and processes in the
complied with the statutory provisions listed hereunder and also that company commensurate with the size and operations of the Company to
the Company has proper Board-processes and compliance mechanism in monitor and ensure compliance with applicable laws, rules, regulations
place to the extent, in the manner and subject to the reporting made and guidelines.
hereinafter:
We further report that during the audit period the Company has the
We have examined the books, papers, minute books, forms and returns following major event:
filed and other records maintained by the Company for the financial year
ended March 31, 2022, according to the provisions of: 1. Pursuant to the NCLT Order dated 26.08.2021, M/s. Vaidehi
Avenues Limited (a Subsidiary of the Company) and M/s. Aster Rail
(i) The Companies Act, 2013 (“the Act”) and the rules made there
Private Limited (a Subsidiary of the Company), under a scheme of
under;
arrangement have merged with M/s. NCC Limited.
(ii) The Securities Contracts (Regulation) Act, 1956 and the rules made
there under; 2. Mr. Anantha Venkata Ranga Raju Alluri was re-appointed
as the Managing Director of the Company for the period of
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws
5 years.
framed thereunder;
(iv) The Foreign Exchange Management Act, 1999 and the rules and 3. Mr. Gopala Krishnam Raju Alluri and Mr. Jampana Venkata Ranga
regulations made there under to the extent of Foreign Direct Raju were re-appointed as the Whole Time Directors of the Company
Investment; for the period of 5 years.
(v) The following Regulations prescribed under the Securities and 4. Mr. Alluri Venkata Narasimha Raju was re-appointed as
Exchange Board of India Act, 1992:- the Whole Time Director of the Company for the period of
(a) The Securities and Exchange Board of India (Substantial 5 years.
Acquisition of Shares and Takeovers) Regulations, 2011;
For BS & Company Company Secretaries LLP
(b) The Securities and Exchange Board of India (Prohibition of
Insider Trading) Regulations, 2015;
(c) The Securities and Exchange Board of India (Registrars to an
K.V.S. Subramanyam
Issue and Share Transfer Agents) Regulations, 1993 regarding
FCS No.: 5400
the Companies Act and dealing with client
Date: May 11, 2022 C P No.: 4815
We have also examined compliance with the applicable clauses of the Place: Hyderabad UDIN: F005400D000298000
following:
Note: This report is to be read with our letter of even date which is
(i) Secretarial Standards issued by The Institute of Company Secretaries
annexed as ‘Annexure’ and forms an integral part of this report.
of India.

18 NCC LIMITED
Annexure
To,
The Members,
NCC Limited
Hyderabad
Our report of even date is to be read along with this letter.
1. Maintenance of Secretarial records is the responsibility of the Management of the Company. Our responsibility is to express an
opinion on these secretarial records based on our audit.
2. We have followed the audit practices and process as were appropriate to obtain reasonable assurance about the correctness of the
contents of the Secretarial records. The verification was done on test basis to ensure that correct facts are reflected in secretarial
records. We believe that the processes and practices, we followed provide a reasonable basis for our opinion.
3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
4. Wherever required, we have obtained the Management representation about the compliance of laws, rules and regulations and
happening of events etc.
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of
management. Our examination was limited to the verification of procedures on test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with
which the Management has conducted the affairs of the Company.
7. We further report that, based on the information provided by the Company, its officers, authorized representatives during the conduct
of the audit in our opinion adequate systems and process and control mechanism exist in the Company to monitor compliance with
applicable general laws like labour laws, Environment laws and Data protection policy.
8. We further report that the compliance by the Company of applicable fiscal laws like Direct & Indirect tax laws, Labour Laws, General
and other specific Laws as may be applicable to the Company, have not been reviewed in this audit since the same has been subject
to review by the statutory financial audit and other designated professionals.
9. Under the situation of COVID-19 pandemic prevailing during the period, secretarial audit was conducted with the verification of all
the documents, records and other information electronically as provided by the management.

For BS & Company Company Secretaries LLP

K.V.S. Subramanyam
FCS No.: 5400
Date: May 11, 2022 C P No.: 4815
Place: Hyderabad UDIN: F005400D000298000

Annual Report 2021-22 19

ANNEXURE – II
ANNUAL REPORT ON CSR ACTIVITIES FOR FINANCIAL YEAR 2021-22
1. Brief outline on CSR Policy of the Company:
The perception of CSR is changing from Philanthropy to Sustainability. Shared responsibility and generosity for the society have long
been part of the Indian tradition. The tradition continues at NCC, where corporate social responsibility is etched in the organisational
DNA. At NCC, we continuously think of ways to direct wealth from successful business endeavours towards societal development.
Our responsibility doesn’t end with mere thinking. NCC commits resources and effort.
2. Composition of CSR Committee:

Number of meetings Number of meetings of

Designation/
Sl. No. Name of Director of CSR Committee held CSR Committee attended
Nature of Directorship
during the year during the year
1 Sri A S N Raju Chairman 3 3
2 Sri Hemant M Nerurkar Member 3 3
3 Dr. A S Durga Prasad Member 3 3
4 Sri O P Jagetiya Member 3 3
5 Sri A G K Raju Member 3 3
3. Provide the web-link where Composition of CSR committee, CSR Policy and CSR projects approved by the Board are disclosed on the
website of the company: http://ncclimited.com
4. Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of the Companies
(Corporate Social Responsibility Policy) Rules, 2014, if applicable (attach the report): Not Applicable
5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate Social Responsibility
Policy) Rules, 2014 and amount required for set off for the financial year, if any: NIL
6. Average net profit of the Company as per section 135(5): ` 53347.74 Lakh
7. (a) Two percent of average net profit of the Company as per section 135(5): ` 1066.95 Lakh.
(b) Surplus arising out of the CSR projects/ programmes or activities of the previous financial years: NIL
(c) Amount required to be set off for the financial year, if any: NIL
(d) Total CSR obligation for the financial year :(7a+7b- 7c): ` 1066.95 Lakh (Budgeted for ` 1067.71 Lakh)
8. (a) CSR amount spent or unspent for the financial year:

Amount Unspent (in ` Lakhs)

Total Amount transferred to
Total Amount Spent Amount transferred to any fund specified under
Unspent CSR Account as per section
for the Financial Year. Schedule VII as per second proviso to section 135(5)
135(6)
(in ` Lakhs)
Amount
Date of transfer Name of the Fund Amount Date of transfer
(` Lakhs)
853.81 213.90 30th April 2022 N.A. N.A. N.A.

20 NCC LIMITED
(b) Details of CSR amount spent against ongoing projects for the financial year:

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Amount Mode of Implementation
Location of the project. transferred - Through Implementing
Item from Amount to Unspent Agency
Amount
the list of spent in CSR Mode of
allocated
Sl. Name of the activities in Local area Project the current Account Implementa
for the
No. Project. Schedule (Yes/No). duration. financial for the tion - Direct CSR
project (in
VII to the State. District. Year (in ` project as (Yes/No). Name Registration
` Lakhs).
Act. Lakhs). per Section number.
135(6) (in
` Lakhs).
Construction of
Toilets for Boys
and Girls at
1. Govt. School, I N Telangana Nalgonda 2 Months 35.00 4.10 30.90 Yes - -
Pulicharla,
Nalgonda,
Telangana
Construction
of Comfort
Uttar
2. Rooms in Govt. I Y 6 Months 183.00 0 183.00 Yes - -
Pradesh
Schools &
Colleges
TOTAL - - 218.00 4.10 213.90

(c) Details of CSR amount spent against other than ongoing projects for the financial year:

(1) (2) (3) (4) (5) (6) (7) (8)

Item from Mode of implementation -
Location of the project Mode of
the list of Amount spent Through implementing agency
Sl. Local area implementati
Name of the Project activities in for the project CSR
No. (Yes/ No) on- Direct
schedule VII State District (in ` Lakhs) Name registration
(Yes/No)
to the Act. number
Education facility
(Computers, Projector,
Uniform and Sports
1. Equipment’s, Desk II Y Telangana Hyderabad 5.86 Yes - -
etc., for students) at
MPPS and ZPHS School,
Kothapeta
Provision of Furniture
and Fittings for
Multipurpose Hall to The Mahatma
2. I, II & III N Telangana Nalgonda Dist 3.46 No CSR00007903
be user for Training & Charitable Trust
other activities, Chityal,
Nalgonda
Construction of Hall for Karunasri Seva
3. III Y Telangana Hyderabad 10.00 No CSR00005551
Orphanage Samiti
Comprehensive Lactation
Management Center
Andhra Sushena Health
4. (CLMC) and Mothers I N Kakinada 25.00 No CSR00005664
Pradesh Foundation
Milk Bank (MBB) at Govt.
General Hospital
Dhaatri Mother’s Milk
Bank – Mobile Milk for
Sushena Health
5. community outreach to I Y Telangana Hyderabad 11.92 No CSR00005664
Foundation
decrease infant mortality
and morbidity
Delivery Vehicle for
Uttar Akshaya Patra
6. Transportation of I Y Lucknow 13.40 No CSR00000286
Pradesh Foundation
Cooked Food

Annual Report 2021-22 21

 Isolation Center for
Police personnel and Nirmaan
7 I Y Telangana Hyderabad 20.00 No CSR00000146
their families infected Organisation
with COVID 19 – HCSC
AAS Vidyalaya Online
education for the
dropouts, partially Avileen Education
8 II N Maharashtra Nagpur 8.70 No CSR00000634
schooled & unschooled Foundation
students in Secondary
grades
Maintenance expenses
of the buildings and the Andhra Antervedipalem,
9 III N 8.00 No NCC Foundation CSR00004366
infrastructure created at Pradesh E G Dist
Antervedipalem, E G Dist
One time Capex
for setting up
Uttar Sushena Health
10 Comprehensive Lactation I Y Lucknow 60.00 No CSR00005664
Pradesh Foundation
Management Center
(CLMC) in Lucknow
2nd Year Operational
Expenses of Dhatri’s Sushena Health
11 I Y Telangana Hyderabad 10.66 No CSR00005664
Milik Bank at Niloufer Foundation
Hospital
2nd Year support
12 funds for implementing I N Maharashtra Nagpur 19.00 No Saksham CSR00004963
Aaryajanani Program
Corneal topographer
– IERTLI Phaco
Emulsification Model
Pushpagiri Vitreo
13 Catarhex CR3 for I Y Telangana Hyderabad 15.00 No CSR00000138
Retina Institute
treatment of corneal
blindness at Pushpagiri
Eye Hospital
Purchase and supply of
Oxygen concentrators
to the Government
Andhra
14 Hospital at Chittor, AP I N Chittor 36.69 Yes - N.A
Pradesh
for treating the patients
who had contracted
COVID 19
Robotics in Academics
– hands on training to
Soham Academy of
15 500 Children from Govt. II Y Telangana Hyderabad 5.19 No CSR00011394
Human Excellence
Schools in the latest
Robotics Technologies
Construction of Road
Dam at Thallacheruvu
16 X N Telangana Wanaparthy 29.00 No NCC Foundation CSR00004366
Alugu in Wanaparthy
Mandal
Robotics in Academics
– hands on training
to 1000+ Children Soham Academy of
17 II Y Telangana Hyderabad 10.26 No CSR00011394
from Govt. Schools Human Excellence
in the latest Robotics
Technologies
Education for children of
18 II Y Telangana Hyderabad 4.26 No NCC Foundation CSR00004366
deceased employees
Construction of Rural
Andhra Antervedipalem,
19 Housing and other Rural X N 500.00 No NCC Foundation CSR00004366
Pradesh E G Dist
Development Projects
TOTAL 796.40

(d) Amount spent in Administrative Overheads: ` 53.31 Lakh

(e) Amount spent on Impact Assessment, if applicable: Nil
(f) Total amount spent for the Financial Year (8b+8c+8d+8e): ` 853.81 Lakh

22 NCC LIMITED
(g) Excess amount for set off, if any : NIL

Sl. No. Particular Amount (in ` Lakh)

(i) Two percent of average net profit of the company as per section 135(5) 1066.95
(ii) Total amount spent for the Financial Year 853.81
(iii) Excess amount spent for the financial year [(ii)-(i)] -
Surplus arising out of the CSR projects or programmes or activities of the
(iv) -
previous financial years, if any
(v) Amount available for set off in succeeding financial years [(iii)-(iv)] -
9. (a) Details of Unspent CSR amount for the preceding three financial years: FY 2020-21 – ` 876.58 Lakh
(b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s): ` 660.87 Lakh
10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through CSR spent
in the financial year: NIL
(a) Date of creation or acquisition of the capital asset(s).
(b) Amount of CSR spent for creation or acquisition of capital asset.:
(c) Details of the entity or public authority or beneficiary under whose name such capital asset is registered, their address etc.
(d) Provide details of the capital asset(s) created or acquired (including complete address and location of the capital asset):
11. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per section 135(5):
As against the amount of ` 1067.71 Lakh required to be spent towards CSR expenditure during the F.Y. 2021-22, the Company has
spent an amount of ` 853.81 Lakh. The shortfall in the expenditure was mainly on account of inability of the Company to execute 2
of the approved CSR Projects because of delay in the finalization of the drawings and due to election in the State of Uttar Pradesh.
The unspent CSR amount has been transferred to the Unspent CSR Account of the FY 2021-22.

For and on behalf of Corporate Social Responsibility Committee

A A V Ranga Raju A S N Raju

Place: Hyderabad
Managing Director Chairman, CSR Committee
Date: May 11, 2022
(DIN-00019161) (DIN-00017416)

Annual Report 2021-22 23

ANNEXURE – III
Statement of particulars as per Rule 5 of Companies (Appointment and Remuneration of Managerial personnel) Rules, 2014.
(i) The ratio of the remuneration of each director to the median remuneration of the employees of the company for the financial year
2021-22.:

S. No. Name of the Director Ratio of the remuneration to the median remuneration of the employees
1 Sri Hemant M Nerurkar 4.6:1
2 Smt. Renu Challu 3.4:1
3 Dr. A S Durga Prasad 4.8:1
4 Sri O P Jagetiya 3.4:1
5 Sri Utpal Sheth 1:1
6 Sri A A V Ranga Raju 129:1
7 Sri A G K Raju 66:1
8 Sri A S N Raju 66:1
9 Sri J V Ranga Raju 33:1
10 Sri A V N Raju 65:1
(ii) The percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer, Company Secretary or
Manager in the financial year.

S. No. Name of the KMP Percentage increase in the remuneration

1 Directors (*)
2 Sri K Krishna Rao, EVP (F&A) & CFO 7.3
3 Sri M V Srinivasa Murthy, CS & EVP (Legal) 7.4
(*) There is no increase in the remuneration of the Directors during the F.Y 2021-22. However, there has been an increase in the
remuneration of the Working Directors on account of increase in the commission linked to the profit earned by the Company during
the Financial Year 2021-22.
(iii) The percentage increase in the median remuneration of employees in the financial year 11.60%
(iv) The number of permanent employees on the rolls of Company as on 31st March 2022 stood at 5109 employees.
(v) Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial year
and its comparison with the percentile increase in the managerial remuneration and justification thereof and point out if there are
any exceptional circumstances for increase in the managerial remuneration:
Average percentile increase in the salaries of the employees other than the managerial personnel in the last financial year was
11.50% and there has been no increase in the managerial remuneration (other than on account of Commission on Profits) during
the last financial year.
(vi) The Remuneration paid to Key Managerial Personnel is as per the Remuneration Policy of the Company.

For and on behalf of the Board

Hemant M Nerurkar
Place: Hyderabad Chairman
Date: May 11, 2022 (DIN No. 00265887)

24 NCC LIMITED
MANAGEMENT DISCUSSION & ANALYSIS
Global Economy: Market Size:
The last two years have been difficult for the world economy on • India’s nominal gross domestic product (GDP) at current
account of the COVID-19 pandemic. Repeated waves of infection, prices is estimated to be at ` 232.15 trillion (US$ 3.12 trillion)
supply-chain disruptions and, more recently, inflation have created in FY22.
particularly challenging times for policymaking. Global effects
• India is the third-largest unicorn base in the world with over
on commodity markets, supply chains, inflation, and financial
100 unicorns with a total valuation of US$ 332.7 billion.
conditions have steepened the slowdown in global growth.
• India needs to increase its rate of employment growth and
Numerous risks could further derail what is now a precarious
create 90 million non-farm jobs between 2023 and 2030, for
recovery. Among them is the possibility of stubbornly high
productivity and economic growth according to McKinsey
global inflation accompanied by tepid growth, reminiscent of the
Global Institute. The net employment rate needs to grow by
stagflation of the 1970s. This could eventually result in a sharp
1.5% per year from 2023 to 2030 to achieve 8-8.5% GDP
tightening of monetary policy in advanced economies to rein in
growth between 2023 and 2030.
inflation, lead to surging borrowing costs, and possibly culminate
in financial stress in some emerging market and developing • According to data from the Department of Economic Affairs,
economies. A forceful and wide-ranging policy response is required as of January 28, 2022, foreign exchange reserves in India
by the global community to boost growth, bolster macroeconomic reached the US$ 634.287 billion mark.
frameworks, reduce financial vulnerabilities, provide support to
Recent economic developments in India are as follows:
vulnerable population groups, and attenuate the long-term impacts
of the global shocks of recent years. • With an improvement in the economic scenario, there have
been investments across various sectors of the economy.
Risks to the global baseline are tilted to the downside. The
The private equity - venture capital (PE-VC) sector recorded
emergence of new COVID-19 variants could prolong the pandemic
investments worth US$ 5.8 billion across 117 deals in
and induce renewed economic disruptions. Moreover, supply chain
February 2022, 24% higher than in January 2022. Some of
disruptions, energy price volatility, and localized wage pressures
the important recent developments in the Indian economy are
mean uncertainty around inflation and policy paths is high. As
as follows:
advanced economies lift policy rates, risks to financial stability
and emerging market and developing economies’ capital flows, • India’s merchandise exports were at an all-time high of US$
currencies, and fiscal positions—especially with debt levels having 417.81 billion in FY22. In April 2022, the Manufacturing
increased significantly in the past two years—may emerge. Other Purchasing Managers’ Index (PMI) in India stood at 54.7.
global risks may crystallize as geopolitical tensions remain high,
and the ongoing climate emergency means that the probability of • The gross Goods and Services Tax (GST) revenue collection hit
major natural disasters remains elevated. an all-time high of ` 1.68 trillion (US$ 21.73 billion) in April
2022. This is a 20% increase over the previous year.
With the pandemic continuing to maintain its grip, the emphasis
on an effective global health strategy is more salient than ever. • India’s Index of Industrial Production (IIP) for January 2022
Worldwide access to vaccines, tests, and treatments is essential stood at 138.4 against 136.6 for January 2021.
to reduce the risk of further dangerous COVID-19 variants. This • Consumer Food Price Index (CFPI) – Combined inflation
requires increased production of supplies, as well as better in-country was 2.9% in 2021-22 (April-December) against 9.1% in the
delivery systems and fairer international distribution. Monetary corresponding period last year.
policy in many countries will need to continue on a tightening
path to curb inflation pressures, while fiscal policy—operating • Consumer Price Index (CPI) – Combined inflation was 5.20%
with more limited space than earlier in the pandemic—will need to in 2021-2022 (April-December) against 6.6% in 2020-21
prioritize health and social spending while focusing support on the • Foreign portfolio investors (FPIs) invested ` 50,009 crore (US$
worst affected. In this context, international cooperation will be 6.68 billion) in the Calendar year 2021.
essential to preserve access to liquidity and expedite orderly debt
restructurings where needed. Investing in climate policies remains • The wheat procurement in Rabi 2021-22 and the anticipated
imperative to reduce the risk of catastrophic climate change. paddy purchase in Kharif 2021-22 would include 1208 lakh
(120.8 million) metric tonnes of wheat and paddy from 163
India Economy: lakh (16.7 million) farmers, as well as a direct payment of
India has emerged as the fastest-growing major economy in MSP value of ` 2.37 lakh crore (US$ 31.74 billion) to their
the world and is expected to be one of the top three economic accounts.
powers in the world over the next 10-15 years, backed by its robust
democracy and strong partnerships.

Annual Report 2021-22 25

Government Initiatives • In the Union Budget of 2022-23, the government has allocated
` 44,720 crore (US$ 5.98 billion) to Bharat Sanchar Nigam
• The Government of India has taken several initiatives to
Limited (BSNL) for capital investments in the 4G spectrum.
improve the economic condition of the country. Some of
these are: • Minister for Finance & Corporate Affairs, Ms. Nirmala
Sitharaman allocated ` 650 crore (US$ 86.69 million) for the
• As of April 2022, India signed 13 Free Trade Agreements (FTAs)
Deep Ocean mission that seeks to explore vast marine living
with its trading partners including major trade agreements
and non-living resources. Department of Space (DoS) has got
like the India-UAE Comprehensive Partnership Agreement
` 13,700 crore (US$ 1.83 billion) in 2022-23 for several key
(CEPA) and the India-Australia Economic Cooperation and
space missions like Gaganyaan, Chandrayaan-3, and Aditya
Trade Agreement (Ind Aus ECTA).
L-1 (sun).
• The Union Budget of 2022-23 was presented on February
• In May 2021, the government approved the production linked
1, 2022, by the Minister for Finance & Corporate Affairs,
incentive (PLI) scheme for manufacturing advanced chemistry
Ms. Nirmala Sitharaman. The budget had four priorities PM
cell (ACC) batteries at an estimated outlay of ` 18,100 crore
GatiShakti, Inclusive Development, Productivity Enhancement
(US$ 2.44 billion); this move is expected to attract domestic
and Investment and Financing of Investments. In the Union
and foreign investments worth ` 45,000 crore (US$ 6.07
Budget 2022-23, effective capital expenditure is expected to
billion).
increase by 27% at ` 10.68 lakh crore (US$ 142.93 billion)
to boost the economy. This will be 4.1% of the total Gross • Minister for Finance & Corporate Affairs Ms Nirmala
Domestic Production (GDP). Sitharaman announced in the Union Budget of 2022-23 that
the Reserve Bank of India (RBI) would issue Digital Rupee
• Under PM Gati Shakti Master Plan the National Highway
using blockchain and other technologies.
Network will develop 25,000 km of new highways network
which will be worth ` 20,000 crore (US$ 2.67 billion). In • In the Union Budget of 2022-23, Railway got an investment of
2022-23 increased government expenditure is expected to ` 2.38 lakh crore (US$ 31.88 billion) and over 400 new high-
attract private investments, with a production-linked incentive speed trains were announced. The concept of “One Station,
scheme providing excellent opportunities. Consistently One Product” was also introduced.
proactive, graded, and measured policy support is anticipated
to boost the Indian economy. • To boost competitiveness, Budget 2022-23 has announced
reforming the 16-year-old Special Economic Zone (SEZ) act.
• In February 2022, Minister for Finance and Corporate Affairs
Ms. Nirmala Sitharaman said that productivity linked incentive • In June 2021, the RBI (Reserve Bank of India) announced that
(PLI) schemes would be extended to 14 sectors to achieve the investment limit for FPI (foreign portfolio investors) in the
the mission of AtmaNirbhar Bharat and create 60 lakh jobs State Development Loans (SDLs) and government securities
with an additional production capacity of ` 30 lakh crore (US$ (G-secs) would persist unaffected at 2% and 6%, respectively,
401.49 billion) in the next five years. in FY22.

• In the Union Budget of 2022-23, the government announced • To boost the overall audit quality and transparency and add
funding for the production linked incentive (PLI) scheme for value to businesses, in April 2021, the RBI issued a notice
domestic solar cells and module manufacturing of ` 24,000 on new norms to appoint statutory and central auditors for
crore (US$ 3.21 billion). commercial banks, large urban co-operatives, and large non-
banks and housing finance firms.
• In the Union Budget of 2022-23, the government announced a
production linked incentive (PLI) scheme for Bulk Drugs which • In May 2021, the Government of India allocated ` 2,250 crore
was an investment of ` 2500 crore (US$ 334.60 million). (US$ 306.80 million) for the development of the horticulture
sector in 2021-22.
• In the Union Budget of 2022, Minister for Finance & Corporate
Affairs Ms. Nirmala Sitharaman announced that a scheme for • In November 2020, the Government of India announced
design-led manufacturing in 5G would be launched as part of ` 2.65 lakh crore (US$ 36 billion) stimulus package to
the PLI scheme. generate job opportunities and provide liquidity support to
various sectors such as tourism, aviation, construction, and
• In September 2021, Union Cabinet approved major housing. Also, India’s cabinet approved the production-linked
reforms in the telecom sector, which are expected to boost incentives (PLI) scheme to provide ~ ` 2 trillion (US$ 27 billion)
employment, growth, competition, and consumer interests. over five years to create jobs and boost production in the
Key reforms include rationalization of adjusted gross revenue, country.
rationalization of bank guarantees (BGs), and encouragement
of spectrum sharing. • Numerous foreign companies are setting up their facilities in
India on account of various Government initiatives like Make
in India and Digital India. Prime Minister of India Mr. Narendra
Modi launched the Make in India initiative with an aim to

26 NCC LIMITED
 boost the country’s manufacturing sector and increase the • According to an official source, as of September 15, 2021,
purchasing power of an average Indian consumer, which 52 companies have filed applications under the ` 5,866 crore
would further drive demand and spur development, thus (US$ 796.19 million) production-linked incentive scheme for
benefiting investors. The Government of India, under its Make the white goods (air conditioners and LED lights) sector.
in India initiative, is trying to boost the contribution made by
• India is expected to attract investment of around US$ 100
the manufacturing sector with an aim to take it to 25% of
billion in developing the oil and gas infrastructure during
the GDP from the current 17%. Besides, the government has
2019-23.
also come up with the Digital India initiative, which focuses on
three core components: the creation of digital infrastructure, • The Government of India is going to increase public health
delivering services digitally, and increasing digital literacy. spending to 2.5% of the GDP by 2025.
• On January 29, 2022, the National Asset Reconstruction Opportunities and Strengths
Company Ltd (NARCL) will acquire bad loans worth up to
` 50,000 crore (US$ 6.69 billion) about 15 accounts by March Opportunities Strengths
31, 2022. India Debt Resolution Co. Ltd (IDRCL) will control
the resolution process. This will clean up India’s financial Demand for world class Strong brand awareness
system and help fuel liquidity and boost the Indian economy. infrastructure in India and reputation

• National Bank for Financing Infrastructure and Development • “Make in India” • Recognised industry leader
(NaBFID) is a bank that will provide non-recourse infrastructure initiative would demand in large civil construction
financing and is expected to support projects from the first good infrastructure and infrastructure projects
quarter of FY2022-23; it is expected to raise ` 4 lakh crore specifically roads, • More than four decades
(US$ 53.58 billion) in the next three years. railways, etc thus of experience.
offering opportunities
• By November 1, 2021, India and the United Kingdom hope to for construction • Track record of successfully
begin negotiations on a free trade agreement. The proposed companies completing complex
FTA between these two countries is likely to unlock business projects
opportunities and generate jobs. Both sides have renewed • Government’s “100
smart cities” initiative • Ensuring quality and
their commitment to boost trade in a manner that benefits all.
timely completion of
• In August 2021, NITI Aayog and Cisco collaborated to • Higher budgetary the projects without cost
encourage women’s entrepreneurship in India. allocation for overruns
infrastructure sector
• In August 2021, Prime Minister Mr. Narendra Modi announced • Diversified business
an initiative to start a national mission to reach the US$ 400 • Pro- industry policies portfolio and strong order
billion merchandise export target by FY22. and initiatives such as book
lowering of corporate
• In August 2021, Prime Minister Mr. Narendra Modi launched • Enduring relationships
tax, setting up of REITs
a digital payment solution, e-RUPI, a contactless and cashless built on mutual trust and
and Infrastructure
instrument for digital payments. respect with our clients,
Investment Trusts
sub-contractors, financial
• In June 2021, RBI Governor Mr. Shaktikanta Das announced would drive investment
institutions and shareholders
the policy repo rate unchanged at 4%. He also announced in Infrastructure sector,
various measures, including ` 15,000 crores (US$ 2.05 billion) etc. • Pan India presence
liquidity support to contact-intensive sectors such as tourism • Large pool of talented and
and hospitality. skilled employees with low
attrition rate.
• In June 2021, Finance Ministers of G-7 countries, including
the US, the UK, Japan, Italy, Germany, France and Canada, I. OPERATIONAL PERFORMANCE - Consolidated
attained a historic contract on taxing multinational firms as
per which the minimum global tax rate would be at least a. Revenue from Operations: The Group reported a Revenue
15%. The move is expected to benefit India by increasing from Operations of ` 11137.96 crores during the year
foreign direct investments in the country. 2021-22 as against ` 7949.42 crores in the previous year,
resulting in an increase of 40%.
• In June 2021, the Indian government signed a US$ 32 million
loan with World Bank for improving healthcare services in b. EBIDTA: The Group reported an EBIDTA of ` 1023.80 crores
Mizoram. as against ` 919.08 crores in the previous year. The increase is
primarily on account of increase in Turnover during the year.
• In May 2021, the Government of India (GoI) and European There is a decline in EBIDTA margin from 11.56% to 9.19%.
Investment Bank (EIB) signed the finance contract for the The decrease is mainly on account of increase in the input
second tranche of EUR 150 million (US$ 182.30 million) for cost.
the Pune Metro Rail project.

Annual Report 2021-22 27

c. Net profit: The Group reported a Net Profit Attributable to volume of operations and profit of ` 149.50 crores on account
Shareholders of the Company of ` 482.41 crores as against of stake sale in one of the subsidiary companies.
` 268.31 crores in the previous year and reported a growth of
i. Total Comprehensive Income: The Company has reported
80%. The Increase is mainly increase in volume of operations
a Total Comprehensive Income of ` 487.30 crores as against
and profit of ` 149.50 crores on account of stake sale in one
` 249.82 crores in the previous year.
of the subsidiary companies.
j. Dividend: The Board of Directors have recommended a
II. OPERATIONAL AND FINANCIAL PERFORMANCE -
dividend of ` 2.00/- per share (100%) for the year under
Standalone
review and the dividend works out to ` 121.97 crores as
a. Revenue from Operations: The Company has reported a against ` 48.79 crores in the previous year.
Revenue from Operations of ` 9930.03 crores during the year
k. Return on Equity: The Company has reported return on
2021-22 as against ` 7256.02 crores in the previous year,
equity at 8.78% for the year under review as against 5.00%
resulting an increase of 37%.
reported in the year 2020-21. The increase is partly on account
b. Other Income: The other income of the company for the of increase in volume of operations and partly on account of
year is ` 108.21 crores as against ` 115.60 crores of previous profit on stake sale in one of the subsidiary companies.
year. Other income comprises of Interest on loans & advances,
Equity & Liabilities:
Interest on Bank Margin Money deposits, interest on income
tax refund, Profit on Sale of Property, Plant and Equipment, a. Net worth: The Company’s net worth increased from
Investment Property(net) and miscellaneous income. ` 5364.66 crores to ` 5803.17 crores. The increase of ` 438.51
crores is primarily on account of internal generation of profits.
c. Direct cost: The direct cost for the year under review works
b. Borrowings (Long-Term & Short-Term): During the year
out to 83.31% of the turnover as against 80.83% last year.
under review the borrowings decreased by ` 604.84 crores
The increase is primarily on account of increase in input costs.
from ` 1788.92 crores to ` 1184.08 crores.
d. Overheads: Overheads comprising salaries and administrative
Assets:
expenses, is ` 661.70 crores for the year under review as
against ` 535.80 crores in the previous year. The increase of a. Property, Plant & Equipment (PPE): The Company’s PPE
23% amounting to ` 125.90 crores over the previous year, is (gross block plus Capital WIP) increased by ` 93.81 crores
mainly increase in volume of operations. (net) in 2021-22 from ` 2173.16 crores to ` 2266.97 crores.
b. Investments: The investments decreased by ` 104.60 crores,
e. Finance cost: The Finance cost during the year is ` 459.60
from ` 999.09 crores to ` 894.49 crores during the year
crores as against ` 457.81 crores of previous year and there
2021-22. The decrease is primarily on account of stake sale in
is no change despite the steep increase in the volume of
one of the subsidiary Companies.
operation. There is an increase in the finance cost on account
of increase in utilization BGs & LCs and there is a decrease in c. Inventories: The Company’s inventories stands at ` 787.78
finance cost on borrowings due to decrease in borrowings crores as against of ` 526.80 crores of previous year.
and also decline in the average cost of borrowings from d. Trade Receivables (Current & Non-Current): The
9.22% of 2020-21 to 8.77% in 2021-22. Company’s trade receivables decreased by ` 168.04 crores in
2021-22 from ` 2660.27 crores to ` 2492.23 crores.
f. Depreciation: The Company’s depreciation for the year has
increased from ` 174.09 crores to ` 182.34 crores. e. Loans (Current & Non-Current): Loans comprises loans
given to group companies and other corporates. Loans given
g. Tax Expense: The tax expense of the company for the to group companies & other corporates increased from
year 2021-22 is ` 117.90 crores as against ` 77.58 crores of ` 329.99 crores to ` 407.81 crores during the year under
previous year. review. Increase is mainly on account of loan given to NCC
h. EBIDTA: The Company has reported an EBIDTA of ` 996.11 Vizag Urban Infrastructure Limited.
crores as against ` 855.37 crores in the previous year. The Cash Flow
increase is primarily on account of increase in Turnover during
the year. There is a decline in EBIDTA margin from 11.79% to During the year the Company reported Net cash inflows from
10.03%. operating activities of ` 1295.98 crores as against ` 709.73 crores,
Net cash used in investing activities ` 131.06 crores as against Net
d. Net profit: The Company has reported a Net Profit of cash inflow from investing activities ` 63.88 crores and Net cash
` 490.12 crores as against ` 261.49 crores in the previous used in financing activities ` 1099.19 crores as against ` 689.34
year, an increase of 87%. The Increase is mainly increase in crores in the previous year.

28 NCC LIMITED
Key Financial Ratios

S. % of
Ratio FY 2021-22 FY 2020-21 Reasons for change in the ratio by more than 25%
No change
i) Trade Receivables turnover 3.85 2.75 40% The increase mainly on account of good collections from
days the client in FY 2021-22.
ii) Inventory turnover days 15.11 13.93 8% -
iii) Interest Coverage Ratio 4.84 3,23 50% The collections from clients are improved and used for
repayment of working capital loans, resulted in decline
in debt.
iv) Current Ratio 1.36 1.34 2% -
v) Debt-Equity Ratio 0.20 0.33 (39%) The collections from clients are improved and used for
repayment of working capital loans, resulted in decline
in debt.
vi) Operating Profit Margin (%) 10.03% 11.79% (15%) -
vii) Net profit ratio 4.94% 3.60% 37% Net Profit increased primarily on account of profit on sale
of investment in Subsidiary Company.
viii) Return on Net Worth 8.78% 5.00% 76% Increased partly on account of profit from operations
due to higher turnover and partly on account of profit
on sale of investment in Subsidiary Company.

III. Order Inflow and Order Book transactions are properly authorized, correctly reported and assets
are safeguarded. The Audit Committee periodically reviews the
During the year the Company received order inflow of ` 12158
findings and recommendations of the Auditors and takes corrective
crores as against ` 18943 crores received in previous year 2020-21.
action as deemed necessary. Enterprise Resource Planning Software
The group order book stands at ` 39361 crores as at the end of the
is in use at Head Office, Divisions, Regional Offices and Project Sites,
year registering a growth of 4% over the previous year.
further strengthening the Internal Control mechanism.
Order Book Composition RISKS AND CONCERNS:
The Company has an integrated and structured Enterprise Risk
Management process to manage risks with ultimate objective of
maximizing stakeholders’ value. The risk management process
at NCC broadly consists of identification, assessment, mitigation,
prioritization and monitoring of risks. This process allows the
Company to enhance confidence in achieving its desired goals and
objectives, effectively restrain risks to acceptable levels and to take
informed decisions about exploiting opportunities. Some of the key
risks that the Company faces along with their mitigation strategies
adopted are listed below:
Political Risks: The Company has operations in multiple locations
in multiple states and is consequently subject to various geo-political
risks. Appropriate mitigation strategies are in place to address the
same.
Competition Risks: There has been an increase in the number of
INTERNAL CONTROL SYSTEM: operators in the niche segment that the Company functions in.
However, the Company’s competitive advantage is derived from
The Company has adequate system of Internal Controls to help
experienced workforce, strong track record, technical expertise,
Management review the effectiveness of the Financial and
financial strength, brand equity and regular engagement with
Operating Controls and assurance about adherence to Company’s
Clients and representatives.
laid down Systems and Procedures. As per the provisions of the
Companies Act, 2013, Internal Controls and documentation are Operational Risks: To suit the project requirements, due care is
in place for all activities. Both Internal Auditors and Statutory exercised in the selection of sub-contractors, vendors, key technical
Auditors have verified the Internal Financial Controls (IFC) at entity and non-technical employees, insurance coverages, financial
level and operations level and satisfied about control effectiveness. tie-ups, timely obtaining of Right of Way, designs and drawings
The controls are reviewed at regular intervals to ensure that etc. Identification of associated risks and initiation of mitigation

Annual Report 2021-22 29

measures are helping the Company to address the operational risks. delivering for stakeholders. Our philosophy of building leaders
from within continues to guide our actions towards identifying,
Market Risks: Securing orders is always a big challenge for
developing, and nurturing talent. With greater emphasis on
Construction Companies and the same depends upon availability
futuristic thinking, digital mindset and commitment to nation
of orders in various States and various Departments. In order to
building, we have made significant shifts towards developing our
mitigate the market risks and to ensure continuous order booking,
people for the future. The Company provides an environment that
the Company is operating multi-divisions such as Buildings &
helps individuals to showcase their talents and rewards performance
Housing, Roads, Water, Railways, Electrical, Irrigation, Mining,
and results. This challenging workplace has helped NCC attract,
Metal, etc. The Company strategically participates in bids using its
develop, and retain talent, and we have done this successfully for
multi-divisional experiences.
over 43 years.
Working Capital Risks: Project delays, cost overruns and
The total human capital base of the company as of 31st March
consequent delays in payment receipt from the Clients lead to an
2022 stood at 5109 employees, consisting a mix of people from
increase in working capital requirement. There is a process of close
diverse backgrounds, educational qualifications and a wealth of
monitoring & follow-up with the Clients for the timely approvals
experience from across the Industry.
and payments for better working capital management.
Learning & Development
Contract & Claims: In the competitive environment, to address
the foreseeable litigations & claims, the Company maintains a The L&D interventions at NCC are geared towards providing
robust documentation and follow up mechanism with Clients, employees a platform for continuous learning opportunities,
subcontractors and vendors to address the related claims, disputes motivate people to seize learning opportunities, and focus on
etc. To mitigate the possible risks due to the differences & disputes helping people identify and develop new and needed skills. L&D
with the Clients, sub-contractors and vendors, the Company has an offers a variety of programs on personal effectiveness, digital
exclusive Contracts & Claims Department. capability, functional, technical, Environmental, Health, Safety and
a wide range of Supervisory and leadership development programs.
Cyber security Risks: With increasing use of IT in business areas
Our comprehensive learning model combining face-to-face, on-the-
and as systems get interconnected, cyber security becomes an
job-training, workshops, case studies, classroom sessions and online
important challenge for the organization in order to protect
learning modules where employees are provided opportunities for
its information and systems so as to maintain confidentiality,
self-learning through a digital interface, which hosts a variety of
data integrity and to prevent loss of data. The Company has
content. During the Financial Year 2021-22, a total of 613 training
implemented a cyber-security framework to identify, detect and
programs were organised at Various project sites, HO and external
prevent such risks. The Company has been focusing on systematic
venues. A special emphasis on training & awareness towards
communication of possible cyber risks and the remedial measures
COVID-19 and its appropriate behaviour was given to employees.
to be followed through awareness programs for all the employees
concerned. Employee Engagement:
COVID-19: The COVID-19 pandemic has been one of the major We believe that our employees are partners in our progress. The
risks impacting the Company’s Operations. During the last structure of our working lives encourages innovation, knowledge
quarter, the operations of the Company recovered further from sharing and collaboration for long-term success. Our core values:
the economic slowdown caused by the Covid-19 pandemic. The Openness and Trust; Integrity and Reliability; Teamwork and
Company has been taking necessary measures for containing the Collaboration; Commitment; Creativity is our guiding principle and
spread of COVID-19 virus so that the work in the project sites is defines our identity.
not hampered. It continues to monitor the economic effects of the
Our employees are encouraged to share ideas, work together, and
uncertainty arising from the second wave of the pandemic while
understand that it is the collective strength of a team that makes
taking steps to improve its scale of execution.
us successful.
Human Resources
The well-being of the employees at all project locations is a
At NCC, the biggest asset is our employees. We have always central concern. NCC Ltd has always focused on various employee
aspired to be an organisation and a workplace committed to engagement initiatives for the benefit of employees and their
helping its people gain varied experiences, accomplish challenging families.
assignments, learn continuously and build their careers while

30 NCC LIMITED
REPORT ON CORPORATE GOVERNANCE
In compliance with Chapter IV read with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as
amended (‘Listing Regulations’) the Company sets forth the report on the Corporate Governance on the matters as mentioned in the said
schedule and practices followed by the Company.
1. Company’s philosophy on the Code of Governance
The Company aims at maintaining, transparency, accountability and equity in all facets of its operations on a continuous basis and in all
interactions with the Stakeholders, including the Shareholders, Employees, Government, Lenders and other constituents while fulfilling
the role of a responsible corporate representative committed to good corporate practices. The Company is committed to maintain the
high standards of Corporate Governance on a continuous basis by laying emphasis on Ethical Corporate Citizenship and establishment
of transparent Corporate Cultures which aim at true Corporate Governance. The Corporate Governance process and systems have been
gradually strengthened over the years.
The Company believes that all its operations and actions must result in enhancing the overall shareholder value in terms of maximization of
shareholder’s benefits, among others, over a sustained period of time. NCC Limited is committed to conduct its business in ethical manner
there by attaining highest level of all its stakeholders’ confidence and satisfaction.
2. Board of Directors
As on March 31, 2022, the Company’s Board of Directors comprised of a judicious mix of Ten Directors consisting of Five Executive
Directors, One Non-Executive Director and Four Independent Directors one among them is a Woman Director as stipulated under the
Companies Act, 2013 and the Listing Regulations. The following table explains the composition of the Company’s Board, category,
number of Board Meetings held during the year, attendance of each Director at the Board Meeting and at the last Annual General
Meeting, other Directorships, Memberships and Chairmanships of Committees held by each of the Director during the Financial Year.
The Company is compliant with all the Listing Regulations and the provisions of the Companies Act, 2013 and the rules made thereunder
relating to appointment of Directors.
Composition of the Board of Directors as on March 31, 2022

Attendance Number Number of

Number at the last of other committee positions
Name of the of Board AGM held Director held in other public Directorships in other Listed Companies
Category companies (##)
Director Meetings on August Ship(s) as & Category of Directorship
attended 27, 2021 on 31-03- Membership(s) /
2022 (#) Chairman
1. Igarashi Motors India Ltd – Non-
Executive & Non Independent
Director
2. Adani Enterprises Ltd - Non-
Executive & Independent Director
Sri Hemant M
Non-Executive 7 (including 3 as - Chairperson
Nerurkar 7 Yes 8
and Independent Chairman) 3. Crompton Greaves Consumer
(Chairman)
Electricals Ltd - Non-Executive &
Independent Director -Chairperson
4. DFM Foods Limited – Non-
Executive & Independent Director
–Chairperson
Non-Executive
Dr. A S Durga Prasad 7 Yes 3 2 Nil
and Independent
1. Schaeffler India Ltd - Non-Executive
Non-Executive 3 (including 2 as & Independent Director
Smt Renu Challu 7 Yes 2
and Independent Chairperson) 2. Ceinsys Tech Ltd - Non-Executive &
Independent Director
Non-Executive
Sri O P Jageitya 7 No 1 Nil Nil
and Independent

Annual Report 2021-22 31

 1. Aptech Ltd - Non-Executive & Non -
Independent Director
Non-Executive
2. Star Health Alied Insurance
Sri Utpal Sheth and non- 7 Yes 16 1
Company Ltd - Nominee Director
Independent
3. Kabra Extrusion Technik Ltd -
Independent Director
Sri A A V Ranga Raju Promoter and
7 Yes 1 Nil Nil
(Managing Director) Executive
Sri A G K Raju Promoter and
7 Yes 1 1 Nil
(Executive Director) Executive
Sri A S N Raju Promoter and 1
(Wholetime Director Executive
7 Yes 1
(as Chairman)
Nil

Sri J V Ranga Raju Promoter and

6 Yes Nil Nil Nil
(Wholetime Director Executive
Sri A V N Raju Promoter and
6 Yes 2 1 Nil
(Wholetime Director Executive
(#) The Directorships held by the Directors as mentioned above, do not include directorships in foreign companies and Companies under
Section 8 of the Companies Act, 2013
(##) Represents Membership / Chairmanship in Audit Committee and Stakeholders Relationship Committee of other public limited
companies.
Notes:
The Company convened minimum of one Board Meeting in each quarter as required under the Companies Act, 2013 and Listing Regulations
as amended and the Company ensured maximum gap between two Board Meetings has not exceeded One Hundred and Twenty Days.
The Board confirms that, based on the disclosures received from all the independent directors and also in its opinion, the independent
directors fulfil the conditions specified in the Companies Act, 2013, the Listing Regulations and are independent of the management.
Shares held by Non-Executive / Independent Directors as on March 31, 2022.

Name of the Director No. of Shares held % on paid-up Capital of the Company
Dr. A S Durga Prasad 300 Negligible
Board Meetings held during the FY2021-22:
During the Financial Year - 2021-22, The Board met seven times and dates of the Board meetings and attendance at the meetings
are as follows:

Sl. No. Date of Meeting Board Strength No. of Directors Present

1 April 28, 2021 10 10
2 May 28, 2021 10 10
3 August 5, 2021 10 10
4 October 25, 2021 10 10
5 November 9, 2021 10 9
6 February 8, 2022 10 10
7 March 31, 2022 10 9

Familiarization Programme
The Company conducts Familiarization Programme for the Board Members and particularly for Independent Directors to enable them
to be familiarized with the company, its management and its operations to gain a clear understanding of their roles, rights and
responsibilities for enabling their contribution to the Company. Presentations are made at Board meetings on updates on regulatory,
business environment, risk management, Company policies and other relevant issues. Quarterly Operations Report which includes
information on business performance, operations, market share, financial parameters, working capital management, material litigations,
compliances, fund-flows, subsidiary data. Details of the familiarization programmes are hosted on http://ncclimited.com/corporate_
governance.html.

32 NCC LIMITED
Inter-se relationship between Directors: Name of the Director Skills/ Expertise/ Competencies
The Promoter Directors namely Sri A A V Ranga Raju, Leadership, Operational experience,
Sri A S N Raju, Sri A G K Raju and Sri A V N Raju, are related to each Business Strategy, Management &
other in terms of the definition of “Relative” under Section 2(77) Sri A A V Ranga Raju Governance, Project Planning and
of the Companies Act, 2013 and Rules framed there under. The Management and relevant industry
aforementioned Promoter Directors are not related to the other experience.
Board members, except as stated there is no inter-se relationship Leadership, Operational experience,
existing between the Directors of the Company. Sri A G K Raju Business Strategy, Finance and relevant
industry experience.
Information supplied to the Board
Leadership, Operational experience
As a policy measure, all the major decisions which involve new Business Strategy, Project Planning and
investments and capital expenditure, in addition to the matters Sri A S N Raju
Management and relevant industry
which statutorily require Board approval, including the information experience.
under Regulation 17(7) Part A of Schedule II of the Listing Leadership, Operational experience,
Regulations are put up for consideration of the Board or the Business Strategy, Project Planning and
Committee(s) of the Board. Sri J V Ranga Raju
Management and relevant industry
Code of Conduct experience.
Leadership, Operational experience,
The Board of Directors of the Company laid a Code of Conduct for
Business Strategy, Project Planning and
Directors and senior management personnel. The Code of Conduct Sri A V N Raju
Management and relevant industry
is posted on the Company’s web-site http://ncclimited.com/
experience.
code_of_conduct.html. All Directors and designated personnel in
the senior management affirmed compliance with the Code for Board Committees
the year under review. The declaration to this effect, signed by The details regarding various Committees of the Board of the
Sri A A V Ranga Raju, Managing Director is annexed to this report. Company as on 31st March 2022 is given below:
Core Skills / Expertise / Competencies available with the 3. Audit Committee of the Board
Board.
The Audit Committee presently comprises of five Directors. The
The Board comprises of qualified members who possess required members of the Committee are financially literate and bring in
skills, expertise and competencies that allow them to make effective expertise in the fields of Accounting & Finance, Strategy, Banking,
contributions to the Board and its Committees. The following skills Engineering and Management. Dr. A S Durga Prasad, Independent
/ expertise / competencies have been identified for the effective Director, a Fellow Member of the Institute of the Cost Accountants
functioning of the Company and are currently available with the of India is the Chairman of the Committee.
Board.
The Audit Committee met eight times during the Financial Year i.e.
Leadership, Operational experience, Business Strategy, on May 28, 2021, August 5, 2021, October 25, 2021, November
Management and Governance, Accounts & Finance, Project 9, 2021, December 9, 2021, February 8, 2022 March 25, 2022
Planning and Management and relevant industry experience. and March 31, 2022. The Company is in compliance with the
Matrix of Board Expertise: requirements of Listing Regulations and the Companies Act, 2013
in terms of time gap between any two Audit Committee Meetings.
Name of the Director Skills/ Expertise/ Competencies
The composition of the Audit Committee as on March 31, 2022 and
Leadership, Operational experience,
details of attendance for the Meetings of the Audit Committees are
Sri Hemant M Nerurkar Business Strategy, Management and
as under.
Governance.
Business Strategy, Operational No. of No. of
Dr. A S Durga Prasad experience, Management and Name of the Director Designation meetings meetings
Governance, Accounting & Finance. held attended
Business Strategy, Operational Dr. A S Durga Prasad Chairman 8 8
Smt. Renu Challu experience, Management and
Sri. Hemant M Nerurkar Member 8 8
Governance, Finance
Smt. Renu Challu Member 8 8
Leadership, Operational experience,
Sri O P Jagetiya Sri O P Jagetiya Member 8 8
Management and Governance.
Business Strategy, Operational Sri A G K Raju Member 8 8
Sri Utpal Sheth experience, Management and
Governance, Accounting & Finance.

Annual Report 2021-22 33

Terms of reference of the Audit Committee 10. Valuation of undertakings or assets of the Company, wherever
it is necessary;
1. Oversight of the company’s financial reporting process and
the disclosure of its financial information to ensure that the 11. Evaluation of internal financial controls and risk management
financial statements are correct, sufficient and credible; systems;
2. Recommendation for appointment, remuneration and terms 12. Reviewing, with the Management, performance of statutory
of appointment of the Statutory and the Internal Auditors of and internal auditors, adequacy of the internal control
the company; systems;
3. Approval of payment to Statutory Auditors for any other 13. Reviewing the adequacy of internal audit function, if any,
services rendered by them. including the structure of the internal audit department,
staffing and seniority of the official heading the department,
4. Reviewing, with the Management, the annual financial
reporting structure coverage and frequency of internal audit;
statements and Auditor’s Report thereon before submission
to the Board for approval, with particular reference to: 14. Discussion with internal auditors of any significant findings
and follow up there on;
a. Matters required to be included in the Director’s
Responsibility Statement to be included in the Board’s 15. Reviewing the findings of any internal investigations by the
Report in terms of clause (c) of sub-section 3 of section internal auditors into matters where there is suspected fraud
134 of the Companies Act, 2013. or irregularity or a failure of internal control systems of a
material nature and reporting the matter to the Board;
b. Changes, if any, in accounting policies and practices and
reasons for the same. 16. Discussion with Statutory Auditors before the audit
commences, about the nature and scope of audit as well as
c. Major accounting entries involving estimates based on
post-audit discussion to ascertain any area of concern;
the exercise of judgment by Management.
17. To look into the reasons for substantial defaults if any in the
d. Significant adjustments made in the financial statements
payment to the depositors, debenture holders, shareholders
arising out of audit findings.
(in case of non-payment of declared dividends) and creditors;
e. Compliance with listing and other legal requirements
18. To review the functioning of the Whistle Blower mechanism;
relating to financial statements.
19. Approval of appointment of Chief Financial Officer (i.e., the
f. Disclosure of any related party transactions.
whole-time Finance Director or any other person heading the
g. Modified opinions if any in the draft Audit Report. finance function or discharging that function) after assessing
the qualifications, experience and background, etc. of the
5. Reviewing, with the Management, the quarterly financial candidate;
statements before submission to the Board for approval;
20. Carrying out any other function as is mentioned in the terms
6. Reviewing, with the Management, the statement of uses / of reference of the Audit Committee.
application of funds raised through an issue (public issue,
rights issue, preferential issue, etc.), the statement of funds 21. Reviewing the utilization of loans and/ or advances from/
utilized for purposes other than those stated in the offer investment by the holding company in the subsidiary
document / prospectus / notice and the report submitted exceeding rupees ` 100 crore or 10% of the asset size of
by the monitoring agency, monitoring the utilization of the subsidiary, whichever is lower including existing loans /
proceeds of a public or rights issue, and making appropriate advances / investments existing as on the date of coming into
recommendations to the Board to take up steps in this matter; force of this provision.
7. Review and monitor the auditor’s independence and 22. Consider and comment on rationale, cost-benefits and impact
performance, and effectiveness of audit process; of schemes involving merger, demerger, amalgamation etc.,
on the listed entity and its shareholders.
8. Approval or any subsequent modification of transactions of
the company with related parties; The Company Secretary is the Secretary to the Audit Committee.
9. Scrutiny of inter-corporate loans and investments;

34 NCC LIMITED
4. Nomination and Remuneration Committee
The Committee comprises of four Non-Executive Directors, of which three are Independent Directors. The Committee met three times i.e.,
on May 27, 2021, November 09, 2021 and February 8, 2022. Details of composition of the Committee and meetings held / attended are
given hereunder:

Name of the Director Designation No. of meetings held No. of meetings attended
Smt Renu Challu Chairperson 3 3
Sri Hemant M Nerurkar Member 3 3
Dr. A S Durga Prasad Member 3 3
Sri Utpal Sheth Member 3 3
Terms of reference
(1) Formulation of the criteria for determining qualifications, positive attributes and independence of a director and recommend to the
Board of Directors a policy relating to the remuneration of the directors, key managerial personnel and other employees;
(2) Formulation of criteria for evaluation of performance of Independent Directors and the Board of Directors and various Committees
of the Board.
(3) Devising policy on diversity of Board of Directors.
(4) Identifying persons who are qualified to become Directors and who may be appointed in senior management in accordance with the
criteria laid down, and recommend to the Board of Directors their appointment and removal.
(5) Whether to extend or continue the term of appointment of the Independent Director, on the basis of the report of performance
evaluation of Independent Directors.
(6) Recommend to the Board, all remuneration, in whatever form, payable to senior management.
5. Stakeholders Relationship Committee:
The Committee primarily focuses on Shareholder grievances, inter-alia, redressal of Investor complaints, attending Investor requests,
approving the issue of duplicate Share Certificates and overseeing and review all matters connected with servicing of investors. The
Committee oversees the performance of the Registrar and Transfer Agents and recommends measures for overall quality improvement of
investor services. The Chairperson of the Committee is Smt. Renu Challu, Independent Director and the Company Secretary is the Secretary
of the Committee. Sri M V Srinivasa Murthy, Company Secretary and EVP (Legal) is the Compliance Officer of the Company.
The Committee met twice during the Financial Year i.e. on May 27, 2021 and November 8, 2021.
Composition and attendance of Members at the Stakeholders Relationship Committee Meetings held during the year are as follows.

Name of the Director Designation No. of meetings held No. of meetings attended
Smt Renu Challu Chairperson 2 2
Dr. A S Durga Prasad Member 2 2
Sri O P Jagetiya Member 2 2
Sri A G K Raju Member 2 2
During the Financial Year 2021-22, the Company has received 12 complaints/ requests from the shareholders/investors. All the requests
were promptly attended to and there were no un-resolved shareholder requests were pending as on March 31, 2022. The Company has
processed and approved all valid requests received for transfer and dematerialization of Shares and there were no pending requests as on
March 31, 2022. The Company has designated a separate email id [email protected] for investor grievances.

Annual Report 2021-22 35

5 A. Risk Management Committee
The Board has constituted the Enterprise Risk Management Committee in line with the provisions of Regulation 21 of the Listing
Regulations. The Committee met thrice during the year on July 30, 2021, January 13, 2022 and February 4, 2022.
The role of the committee is:
(1) To formulate a detailed risk management policy which shall include:
(a) A framework for identification of internal and external risks specifically faced by the Company, in particular including financial,
operational, sectoral, sustainability (particularly, ESG related risks), information, cyber security risks or any other risk as may be
determined by the Committee.
(b) Measures for risk mitigation including systems and processes for internal control of identified risks.
(c) Business continuity plan.
(2) To ensure that appropriate methodology, processes and systems are in place to monitor and evaluate risks associated with the
business of the Company;
(3) To monitor and oversee implementation of the risk management policy, including evaluating the adequacy of risk management
systems;
(4) To periodically review the risk management policy, at least once in two years, including by considering the changing industry
dynamics and evolving complexity;
(5) To keep the Board of Directors informed about the nature and content of its discussions, recommendations and actions to be taken;
(6) The appointment, removal and terms of remuneration of the Chief Risk Officer (if any) shall be subject to review by the Risk
Management Committee.
Composition and attendance of Members at the Enterprise Risk Management Committee Meetings held during the year are as
follows.
Name of the Director Designation No. of meetings held No. of meetings attended
Dr. A S Durga Prasad Chairperson 3 3
Sri O P Jagetiya (*) Member 1 1
Sri A A V Ranga Raju Member 3 3
Sri K Krishna Rao-CFO Member 3 3
(*) Appointed with effect from 8 February, 2022
th

6. Details of remuneration/ sitting fee paid to the Directors for the year
The details of remuneration covering salary and other benefits paid for the year ended March 31, 2022 to the Managing Director,
Executive Director and the Whole Time Directors of the Company are as follows-
(Amount in `)
Other Bonus
Name & Designation Salary Pension Commission Total
benefits / Exgratia
Sri. A A V Ranga Raju
1,63,20,000 20,77,039 14,40,000 Nil 4,43,20,000 6,41,57,039
Managing Director
Sri. A G K Raju
81,60,000 16,77,583 7,20,000 Nil 2,21,60,000 3,27,17,583
Executive Director
Sri. A S N Raju
81,60,000 18,26,029 7,20,000 Nil 2,21,60,000 3,28,66,029
Wholetime Director
Sri. J V Ranga Raju
1,42,80,000 10,08,000 12,60,000 Nil Nil 1,65,48,000
Wholetime Director
Sri. A V N Raju
81,60,000 11,91,537 7,20,000 Nil 2,21,60,000 3,22,31,537
Wholetime Director
Besides the above remuneration, the Managing Director, Executive Director and the Whole Time Directors are also eligible for gratuity and
encashment of leave at the end of their respective tenures as per the rules of the Company.

36 NCC LIMITED
The details of sitting Fee and commission paid to the Non-Executive Directors (including Independent Directors) for the Financial Year
2021-22 is detailed below:
(Amount in `)
Sl Name of the Director Sitting Fees Commission Total
1 Sri. Hemant M Nerurkar 7,75,000 15,00,000 22,75,000
2 Dr. A S Durga Prasad 9,00,000 15,00,000 24,00,000
3 Smt. Renu Challu 6,75,000 10,00,000 16,75,000
4 Sri O P Jagetiya 6,75,000 10,00,000 16,75,000
5 Sri. Utpal Sheth 5,00,000 Nil 5,00,000
Remuneration being paid to Directors is in compliance with the Remuneration Policy approved by the Board of Directors and the approval
accorded by the Members of the Company.
Board Level Performance Evaluation Remuneration Committee reviews the said Performance Evaluation
on annual basis.
Pursuant to provisions of the Companies Act, 2013 and the Listing
Regulations, annual performance evaluation of the Directors Separate Meeting of Independent Directors:
including Chairperson, Board and its Committees viz., the Audit
Pursuant to the provisions of the Companies Act, 2013 read with
Committee, Nomination and Remuneration Committee, and
the rules made there under and Secretarial Standard-I issued by the
Stakeholders Relationship Committee has been carried out. The
Institute of Company Secretaries of India and the Listing Regulations,
Performance evaluation of Independent Directors was carried
a meeting of the Independent Directors of the Company for the
out by the entire Board of Directors without participation of the
Financial Year 2021-22 was held on February 8, 2022.
directors who are subject to the evaluation. The Nomination and

7. General Body Meetings

The following are the details of previous three Annual General Meetings and the Special resolutions passed there at;

AGM
Year Location Special Resolutions passed
Date & Time
2019 Avasa Hotel, Friday 6, 1) Re-appointment of Sri Hemant M Nerurkar (DIN 00265887) as
Constellation Hall, September, 2019 at an Independent Director.
1st Floor, Plot No. 15, 24, 25 & 3.00 p.m.
2) Re-appointment of Smt. Renu Challu (DIN 00157204) as an
26, Sector - 1, Survey No.64,
Independent Director.
Near Cyber Towers, Hitech
City, Madhapur, 3) Re-appointment of Sri A S N Raju (DIN 00017416) as a Whole
Hyderabad – 500 081 time Director and to fix the remuneration payable to him.
Telangana.
2020 Held through Friday 25, 1) Re-appointment of Dr. A S Durga Prasad (DIN.00911306) as an
Video Conferencing September, 2020 at Independent Director.
3.00 p.m.
2021 Held through Friday 27, 1) Re-appointment of Sr A V N Raju (DIN-00018965) as a
Video Conferencing August, 2021 at Wholetime Director of the Company and Remuneration payable
3.00 p.m. to him.
Postal Ballot Statements along with the Auditor’s Report thereon, the Secretarial
During the year no resolution was passed through Postal Ballot, Audit Report, Special Initiatives and Shareholders Information. The
under the provisions of the Companies Act, 2013. Company’s Annual Report is also available in downloadable form
on the Company’s website and can be accessed at http://www.
Currently, there is no proposal to pass any resolution through Postal
ncclimited.com.
Ballot.
The Annual General Meeting(AGM) is the principal forum for
8. Means of Communication
interaction with the Shareholders, where the Board answers
The Company was having 3,38,342 shareholders as on March 31, queries raised by the Shareholders. The Board acknowledges its
2022. The main channel of communication with the shareholders is responsibility towards its Shareholders and encourages open and
through the annual report which inter alia includes the statement active dialogue with all its Members and Stake Holders.
of Chairman Emeritus, the Directors Report, Business Responsibility
Report, Report on Corporate Governance, Management Discussion Regular communication with shareholders ensures that the
and Analysis Report, the Standalone and Consolidated Financial Company’s strategy is being clearly understood. Details relating to

Annual Report 2021-22 37

quarterly performance and financial results are disseminated to the Reminder Letters to Investors
shareholders through press releases and are also uploaded on the
- Reminder Letter dated 22nd July 2021 addressed to the
Company’ website
Shareholders who have not encashed their Dividend for a
Quarterly results continuous period of Seven Years intimating them that their
The Quarterly Results of the Company are published in newspapers shares are liable to be transferred to the Demat Account of
such as Business Standard / Business Line/Eanadu/Andhra Jyothi / IEPF Account.
Saakshi (regional language), along with the official press releases - As per SEBI Circular dated 3rd November 2021, the Company
and are also hosted on the Company’s website. has sent letters to the physical shareholders on 11th January
News releases, presentations, among others: 2022 requesting them to update their KYC (PAN, Aadhar,
Bank Account, Email ID, Mobile No. and Nominee details).
Official news releases and official media releases are sent to
Stock Exchanges and are put on the Company’s website (www. NSE Electronic Application Processing System (NEAPS):
ncclimited.com). The NEAPS is a web-based application designed by NSE for
Presentations to institutional Investors / Analysts: corporates. All periodical compliance filing like shareholding
pattern, corporate governance report, media releases, statement
Detailed presentations are made to institutional investors and
of investor complaints, among others are also filed electronically
financial analysts on the Company’s quarterly, half-yearly as well as
on NEAPS.
annual financial results. These presentations and schedule of analyst
or institutional investors meet are also hosted on the Company’s BSE corporate Compliance & Listing Centre (“Listing Centre”):
website and can be accessed at http://ncclimited.com/analysts.
BSE’s Listing Centre is a web-based application designed for
html as well as sent to the Stock Exchanges. No unpublished price
corporates. All periodical compliance filings like shareholding
sensitive information is discussed in meeting / presentation with
pattern, corporate governance report, media releases, statement
institutional investors and financial analysts.
of investor complaints, among others are also filed electronically on
Website: the Listing Centre.
The Company’s website (www.ncclimited.com) contains a separate SEBI Complaints Redress System (SCORES):
section i.e Investor Relations where shareholder’s information is
available. The Investor complaints are processed in a centralized web-based
complaints redress system. The salient features of this system are:
centralized database of all complaints, online upload of Action
Taken Reports (ATR) by concerned companies and online viewing
by investors of actions taken on the complaint and its current status.

9. General shareholders’ information

(a) Day, date and time of 32nd Annual General Meeting
32nd Annual General Meeting of the Members of the Company is scheduled to be held on Monday, 22nd August 2022 at 3.00 p.m.
through Video Conferencing (VC) or through other Audio Visual Means (OAVM) as permitted by the Ministry of Corporate Affairs vide
its Circulars dated 5th May, 2020 & 5th May 2022.
(b) Financial calendar (Tentative) for the Financial Year 2022-23.
Quarter ending Financial Results release Trading window closure
June 30, 2022 August 9, 2022 July 01, 2022 to August 11, 2022
September 30, 2022 November 8, 2022 October 01, 2022 to November 11, 2022
December 31, 2022 February 8, 2023 January 01, 2023 to February 10, 2023
March 31, 2023 May 16, 2023 April 01, 2023 to May 18, 2023
Record Date: 12th August 2022 for payment of dividend.
(c) Dividend payment date: (subject to approval of shareholders at the AGM) on or before 15th September 2022.
(d) The Company’s Equity Shares are listed on the BSE Limited and the National Stock Exchange of India Limited.

BSE Limited National Stock Exchange of India Ltd.,

Phiroze Jeejeebhoy Towers Exchange Plaza, C-1, Block G,
Dalal Street Bandra Kurla Complex, Bandra (E)
Mumbai- 400 001 Mumbai – 400 051

Listing fee for the financial year 2022-23 has been paid to BSE Limited and National Stock Exchange of India Ltd in the month of April,
2022.

38 NCC LIMITED
(a) Stock codes Equity shares
BSE Code: 500294, NSE Symbol: NCC
(b) Market price data
The monthly High and Low stock quotations during the year under review and performance in comparison to SENSEX (BSE) and NIFTY
(NSE) are given below-

BSE Sensex NSE Nifty

Month
High price ` Low price ` High Low High price ` Low price ` High Low
April 2021 82.65 69.10 50375.77 47204.50 82.60 69.20 15044.35 14151.40
May 2021 89.40 72.75 52013.22 48028.07 89.50 72.65 15606.35 14416.25
June 2021 94.00 77.65 53126.73 51450.58 94.00 77.60 15915.65 15450.90
July 2021 98.45 84.60 53290.81 51802.73 98.50 84.50 15962.25 15513.45
August 2021 90.40 69.95 57625.26 52804.08 90.40 70.00 17153.50 15834.65
September 2021 87.45 75.80 60412.32 57263.90 87.50 75.05 17947.65 17055.05
October 2021 85.45 69.50 62245.43 58551.14 85.50 69.50 18604.45 17452.90
November 2021 83.85 69.15 61036.56 56382.93 83.90 69.00 18210.15 16782.40
December 2021 77.75 66.30 59203.37 55132.68 77.75 66.20 17639.50 16410.20
January 2022 79.85 68.10 61475.15 56409.63 79.90 68.10 18350.95 16836.80
February 2022 78.50 55.80 59618.51 54383.20 78.50 55.75 17794.60 16203.25
March 2022 64.50 57.45 58890.92 52260.82 65.00 57.40 17559.80 15671.45
(a) Registrar and Transfer Agents:
M/s. KFin Technologies Limited.
Selenium Tower B, Plot No.31 & 32,
Gachibowli, Financial District,
Nanakramguda, Hyderabad -500 032
Phone:1800 309 4001
Email: [email protected]
https://www.kfintech.com
(b) Share Transfer System
SEBI vide its Circular dated June 8, 2018 effective from April 01, 2019, mandated that except in case of transmission or transposition
of securities, requests for effecting transfer of securities shall not be processed unless the securities are held in dematerialized form
with a depository. Any investor who is desirous of transferring shares (which are held in physical form) after April 01, 2019 can do
so only after the shares are dematerialized. However, this does not prohibit the investor from holding the shares in physical form
and investor has the option of holding shares in physical form even after April 01, 2019. KFin Technologies Limited is the common
Registrar and Transfer Agents for dealing with all the activities connected with both physical and demat segments pertaining to the
Securities of the Company.
(c) Distribution of shareholding as on March 31, 2022.
Number of shareholders* Total Shares of Details of shareholding
Number of shares held
No % ` 2/-each Value of shares of (`) %
1 - 5,000 325910 96.33 86730915 173461830 14.22
5,001 - 10,000 6825 2.01 25096269 50192538 4.12
10,001 - 20,000 3047 0.90 22508468 45016936 3.69
20,001 - 30,000 904 0.27 11288254 22576508 1.85
30,001 - 40,000 462 0.13 8304224 16608448 1.36
40,001 - 50,000 254 0.08 5840401 11680802 0.96
50,001 - 100,000 458 0.14 16406376 32812752 2.69
100,001 and above 482 0.14 433671681 867343362 71.11
Total 338342 100.00 60,98,46,588 1,21,96,93,176 100.00
*After clubbing the common PAN

Annual Report 2021-22 39

(a) Shareholding Pattern as on March 31, 2022

Category No. of Shares of ` 2/- each %

Promoters & Promoters Group 120046680 19.68
Domestic Institutional Investors/Banks 3168 0.00
Bodies Corporate 50422962 8.27
Foreign Portfolio Investors 54193741 8.89
NRIs 8477845 1.39
Mutual Funds 74704841 12.25
Indian Public 301492328 49.44
IEPF 479039 0.08
Unclaimed Suspense Account 25984 0.00
Total 609846588 100.00
(b) Dematerialization.
Over 99.86% of the outstanding shares were dematerialized up to March 31, 2022. The Company’s shares are liquid and actively
traded.

Category No. of Shareholders* Number of Shares %

NSDL 126,756 402,635,827 66.02
CDSL 219,302 206,361,254 33.84
Physical 814 849,507 0.14
Total 346,872 609,846,588 100
* without Clubbing the common PAN
(c) International Securities Identification Number (ISIN): INE868B01028
(d) Address for Correspondence Physical / Electronic mode

M/s. KFin Technologies Limited Shareholders General Correspondence

(Unit: NCC Limited) Company Secretary & Compliance Officer
Selenium Tower B, Plot No.31 & 32 NCC Limited
Gachibowli, Financial District, 9th Floor, NCC House,
Nanakramguda, Hyderabad - 500 032 Madhapur, Hyderabad - 500 081
Email: [email protected] Phone : 040-23268888 / 23268942
https://www.kfintech.com E-Mail : [email protected]
Toll Free No.1800-309-4001 www.ncclimited.com
(e) Credit Ratings:
Credit rating agency “India Ratings & Research” reviewed the rating assigned to the various credit facilities of the Company during
the financial year ended 31st March 2022. Vide their letter dated 29th March 2022, the agency affirmed the Company’s Long-Term
Issuer Rating at ‘IND A’. The Outlook is Positive. The instrument-wise rating actions are as follows:

Instrument Type Rating/Outlook Rating Action

Fund Based working capital limits IND A/Positive/IND A1 Affirmed
Non-Fund based limits IND A/Positive/IND A1 Affirmed
Term Loans IND A/Positive/IND A1 Affirmed

40 NCC LIMITED
ECS Facility;
The Company is providing facility of “Electronic Clearing Service” (ECS) for payment of dividend to shareholders. Shareholders who have
not furnished such details earlier are once again requested to provide details of their bank account for availing ECS facility. Further, ECS
facility is available to the beneficial owners of shares held in electronic form as well as in physical form. Those desirous of availing the ECS
facility may provide their mandate to the Company in writing, in the form that can be obtained from the Company or the Company’s
Registrar and Transfer Agents M/s. KFin Technologies Limited.
Unclaimed dividend
Pursuant to the provisions of Sections 124 &125 of Companies Act, 2013 the Company is required to transfer the amount of dividend
remaining unclaimed consecutively for a period of seven years from the date of transfer to the unclaimed dividend account to the Investor
Education and Protection Fund (IEPF). Shareholders are requested to ensure that they claim the dividend(s) from the Company before
transfer to the Investor Education and Protection Fund (IEPF). In compliance with above said provisions of the Companies Act, 2013, the
Company transferred the unclaimed dividend amounting to ` 2,11,336/- (Rupees Two Lakhs Elven Thousand Three Hundred Thirty-Six
only) (Final Dividend) pertaining to the year 2013-2014 to the Investor Education and Protection Fund.
Due dates for transfer of dividend unclaimed to IEPF are as follows:

Amount of unclaimed dividend Last date for claiming

Type of Date of Due date for
Financial year outstanding as on March 31, Un-paid Dividend by
dividend declaration transfer to IEPF
2022 (`) investors
2014-15 Final 24.08.2015 4,21,658.40 30.09.2022 29.10.2022
2015-16 Final 24.08.2016 6,14,298.60 30.09.2023 29.10.2023
2016-17 Final 24-08-2017 4,32,844.00 30-09-2024 29-10-2024
2017-18 Final 10-08-2018 10,50,698.00 16-09-2025 15-10-2025
2018-19 Final 06-09-2019 12,34,444.50 12-10-2026 11-11-2026
2019-20 Final 25-09-2020 3,64,249.20 30-10-2027 28-11-2027
2020-21 Final 27-08-2021 10,85,305.20 02-10-2028 01-11-2028
Dividend Distribution policy
In compliance with Regulation 43A of the Listing Regulations the Company has formulated its Dividend Distribution Policy, the details of
which are available on the Company’s website at: http://ncclimited.com/Policies.html
10. Other Disclosures
(a) During 2021-22 certain transactions were entered into with related parties. The details thereof are given in note number 35 of the
Standalone Financial Statements.
(b) There were no occasions of non-compliance by the Company and no penalties or strictures were imposed on the Company by the
Stock Exchanges or the SEBI or any statutory authority, on any matter related to Capital markets, during the last three years.
(c) The Company has formulated and adopted formal Whistle Blower Policy/Vigil Mechanism and the same is hosted on the Company’s
Web site and no concerned person has been denied access to the Audit Committee.
(d) The Company has complied with all the mandatory requirements of Schedule V of the SEBI (Listing and Disclosure Requirements)
Regulations, 2015.
(e) Policy on Material Subsidiaries is hosted on our website
The following is the web link: http://ncclimited.com/images/PDF/Policies/Policy on Material Subsidiary(s).pdf
(f) Policy on Related party transactions is hosted in our website www.ncclimited.com, the following is the web link;
http://ncclimited.com/images/PDF/Policies/Policy on Related Party Transactions.pdf
(g) Details of utilization of funds raised through preferential allotment or QIP as specified under Regulation 32 (7A):
During the Financial Year 2021-22 the Company has not raised any fund either through preferential allotment or QIP.

Annual Report 2021-22 41

During the year, there was no treatment of any transaction different from that as prescribed in the Accounting Standards as required
under Section 133 of the Companies Act, 2013.
A report on risk management forms a part of the Management Discussion and Analysis in this Annual Report.
This Annual Report has a detailed section on Management Discussion and Analysis.
The information on appointment/ re-appointment of Directors and their brief profiles forms part of the Notice of the ensuing Annual
General Meeting for the information of shareholders.
Secretarial Compliance Report
Pursuant to Regulation 24A of the Listing the Company has submitted to the Stock Exchanges the Secretarial Compliance Report for
the Financial Year 2021-22 furnished by M/s. BS & Company, Company Secretaries LLP, a firm of Practicing Company Secretaries. The
Company shall be filing the Secretarial Compliance Report for the Financial Year 2021-22 within the prescribed time.
Certificate from Practicing Company Secretary
Certificate as required under Part C of Schedule V of the Listing Regulations furnished by M/s. BS & Company, Company Secretaries
LLP, that none of the Directors on the Board of the Company have been debarred or disqualified from being appointed or continuing as
directors of the Company by the Securities and Exchange Board of India/ Ministry of Corporate Affairs or any such statutory authority was
placed before the Board of Directors at its meeting held on 11th May 2022.
Recommendations of Committees of the Board
There were no instances during the financial year 2021-22, wherein the Board had not accepted recommendations made by any Committee
of the Board
Code of Conduct to Regulate, Monitor and Report Trading by Designated Persons:
The Company has adopted a Code of Conduct to Regulate, Monitor and Report trading by Designated Persons (Insider Trading Code) under
Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 (SEBI Insider Trading Regulations). SEBI notified
several amendments to SEBI Insider Trading Regulations pursuant to SEBI (Prohibition of Insider Trading) (Amendment) Regulations, 2018
which were effective from 1st April, 2019.
In accordance with the said amendments to the SEBI Insider Trading Regulations, the Company has, inter alia, amended/formulated the
following:
(a) Code of Conduct to Regulate, Monitor and Report trading by Designated Persons.
(b) Policy for determination of ‘legitimate purposes’ as a part of ‘Code of Fair Disclosure and Conduct.
(c) Policy for inquiry in case of leak of Unpublished Price Sensitive Information (UPSI)
(d) Whistle Blower Policy to enable reporting in case of leak of UPSI.
The Audit Committee reviews cases of non-compliances, if any, and makes necessary recommendations w.r.t. action taken against such
defaulters. The said non – compliances are promptly intimated to SEBI.
The Code of Conduct to Regulate, Monitor and Report trading by Designated Persons, Code of Fair Disclosure & Conduct and Whistle
Blower Policy duly approved by the Board of Directors of the Company have been uploaded on website of the Company.
11. The Company has complied with all the requirements of Corporate Governance Report as set out in paras (2) to (10) above.
12. The Company has complied with the Non-mandatory requirements/Discretionary Requirements as stipulated in Regulation 27 (1)
read with Part E of the Schedule II of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 as indicated below;
(a) The Company’s financial statements are with unmodified audit opinion.
(b) The Company has appointed separate persons to the post of Chairman and Managing Director.
(c) The Internal auditors of the Company report directly to the Audit Committee of the Board.
13. The Company has complied with all the mandatory clauses of Corporate Governance requirements specified in regulation 17 to 27
and clauses (b) to (i) of sub-regulation (2) of the regulation 46 of the Listing Regulations from the date of its applicability.

42 NCC LIMITED
14. Disclosures with respect to unclaimed suspense account:
The Company has followed the due procedure as provided in the Regulation 39 (4) read with Schedule V & VI of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 in dealing with the unclaimed shares in Public issue/Rights issues. The
movement of un-claimed shares in the “NCC Ltd – Unclaimed Suspense Account” during the year as follows: -

Particulars No of shareholders No. of Equity Shares

Aggregate Number of Shareholders and outstanding shares lying in the Unclaimed
29 25984
Suspense Account as on April 1, 2021
Unclaimed shares Credited to the Account during the year - -
Number of shareholders approached the Company for transfer of shares from
- -
Unclaimed Suspense Account during the year
No. of Shares transferred to IEPF Account - -
Aggregate Number of Shareholders and outstanding Shares lying in the Unclaimed
29 25984
Suspense Account as on March 31, 2022
The voting rights of the above said unclaimed shares lying in Demat Account shall
remain frozen till rightful owner of such shares claims the shares.
15. Transfer of Shares Unpaid/Unclaimed Amounts and to Investor Education and Protection Fund (IEPF)
In accordance with the provisions of Companies Act, 2013, the Company has transferred 27185 (Twenty-Seven Thousand One Hundred
Eight Five only) Equity Shares of ` 2/- each during the Financial Year 2021-22 to the credit of IEPF Authority. As on 31st March, 2022, the
Company has cumulatively transferred 479929 (Four Lakhs Seventy-Nine Thousand Nine Hundred Twenty-Nine only) so far for all Financial
Years. Equity Shares to the credit of IEPF Authority. The Company is initiating necessary action for transfer of shares in respect of which
dividend has not been claimed by the members consecutively since 2014-15.
Pursuant to Rule 6(13) of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, the
Company has credited an amount of ` 2,99,527.20 (Rupees Two Lakhs Ninety-Nine Thousand Five Hundred Twenty-Seven Paisa Twenty
only) to the Investor Education and Protection Fund (IEPF) during the Financial Year 2021-22 towards Dividend paid on the Unclaimed
Shares transferred to IEPF Authority.
The Company has uploaded on its website the details of unpaid and unclaimed amounts lying with the Company as on date of last Annual
General Meeting (i.e. August 27, 2021) and details of shares transferred to IEPF. The aforesaid details are put on the Company’s website
and can be accessed at: http://ncclimited.com/UDI.html
The Company has also uploaded these details on the website of the IEPF Authority (www.iepf.gov.in).
16. M/S.S. R. Batliboi & Associates LLP, Chartered Accountants (Firm Registration No. 101049W/E30004) have been appointed as Statutory
Auditors of the Company. The particulars of payments to Statutory Auditors S. R. Batliboi & Associates LLP, Chartered Accountants (Firm
Registration No. 101049W/E300004 or any other firm in their group on consolidated basis is given below.

Description of Service Amount in (` in Crore)

Services as Statutory Auditors (Audit fee) 1.70
Certification fee 0.18
Total 1.88
17. Disclosure under Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013:
Number of complaints filed during the financial year Nil
Number of complaints disposed of during the financial year Nil
Number of complaints pending as on end of the financial year Nil

Annual Report 2021-22 43

 DECLARATION OF COMPLIANCE WITH THE CODE OF CONDUCT
I hereby confirm that the Company has obtained from all the members of the Board and Senior Management Personnel, affirmation that
they have complied with the Code of Conduct for Board Members and Senior Management Personnel in respect of the financial year
ended March 31, 2022.
For NCC Limited

A A V Ranga Raju
Place: Hyderabad Managing Director
Date: May 11, 2022 DIN No.00019161

CERTIFICATE OF CORPORATE GOVERNANCE

Under Regulation 34(3) read with Schedule V (E) of the Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015 as amended
To,
The Members of
NCC Limited
Hyderabad
We have examined all the relevant records of NCC Limited (the Company) for the purpose of certifying the compliance of the conditions
of Corporate Governance by the Company as stipulated under Regulation 17 to 27, Clauses (b) to (i) of sub-regulation (2) of Regulation
46 and para C, D and E of Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 as amended (‘SEBI Listing Regulations’) for the period commencing from 1st April, 2021 and ended on 31st March,
2022. We have obtained all the information and explanations which are to the best of our knowledge and belief were necessary for the
purpose of certification.
The compliance of the conditions of Corporate Governance is the responsibility of the Management of the Company. Our examination
was limited to the procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the
Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, we certify that the company has complied
with the conditions of Corporate Governance as stipulated in the SEBI Listing Regulations for the Financial Year ended on 31st March,
2022.
This Certificate is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with which the
Management has conducted the affairs of the Company.

For BS & Company, Company Secretaries LLP

D Soumya
Designated Partner
FCS No.: 11754
Date: May 11, 2022 C.P. No: 13199
Place: Hyderabad UDIN: A029312D000305665

44 NCC LIMITED
 Certificate of Non-Disqualification of Directors
(pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015)
To,
The Members of
NCC Limited
NCC House, Madhapur,
Hyderabad – 500081.
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of NCC Limited having
CIN L72200TG1990PLC011146 and having registered office at NCC House, Madhapur, Hyderabad - 500081 (hereinafter referred to as
‘the Company’), produced before us by the Company for the purpose of issuing this Certificate, in accordance with Regulation 34(3)
read with Schedule V Para-C Sub-clause 10(i) of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015.
In our opinion and to the best of our information and according to the verifications (including Directors Identification Number (DIN) status
at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the Company & its officers, We hereby certify
that none of the Directors on the Board of the Company as stated below for the Financial Year ending on 31st March, 2022 have been
debarred or disqualified from being appointed or continuing as Directors of companies by the Securities and Exchange Board of India,
Ministry of Corporate Affairs.

S. No. Name of Directors DIN Date of Appointment in the Company

1 Sri Srimanarayana Raju Alluri 00017416 22/03/1990
2 Sri Alluri Venkata Narasimha Raju 00018965 01/06/1999
3 Sri Gopala Krishnam Raju Alluri 00019100 22/03/1990
4 Sri Anantha Venkata Ranga Raju Alluri 00019161 22/03/1990
5 Sri Jampana Venkata Ranga Raju 00020547 23/03/1990
6 Sri Utpal Hemendra Sheth 00081012 11/10/2013
7 Smt Renu Challu 00157204 13/08/2014
8 Sri Hemant Madhusudan Nerurkar 00265887 09/04/2014
9 Dr Durga Prasad Subramanyam Anapindi 00911306 24/05/2016
10 Sri Om Prakash Jagetiya 00546495 30/12/2020
Ensuring the eligibility of Directors, for the appointment/continuity of every Director on the Board is the responsibility of the management
of the Company. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an assurance as
to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the
Company.

For BS & Company, Company Secretaries LLP

D Soumya
Designated Partner
FCS No.: 11754
Date: May 11, 2022 C.P. No: 13199
Place: Hyderabad UDIN:A029312D000305643

Annual Report 2021-22 45

BUSINESS RESPONSIBILITY REPORT
SECTION A: GENERAL INFORMATION ABOUT THE COMPANY
1. Corporate Identity Number (CIN) of the Company: L72200TG1990PLC011146
2. Name of the Company: NCC Limited
3. Registered address: NCC House, Madhapur, Hyderabad – 500081. Telangana
4. Website: www.ncclimited.com
5. E-mail id: [email protected]
6. Financial Year reported: 2021-22
7. Sector(s) that the Company is engaged in (industrial activity code-wise): Construction, Engineering and Infrastructure Development
activities.
8. List three key services that the Company manufactures/provides (as in balance sheet):
Construction, Engineering and Infrastructure Development activities.
9. Total number of locations where business activity is undertaken by the Company:
(a) Number of National Locations: The Company executes construction projects in most of the States and Union Territories in India
(b) Number of International Locations: Two (Sultanate of Oman and Sri Lanka)
10. Markets Served by the Company: Local, State, National and International
SECTION B: FINANCIAL DETAILS OF THE COMPANY FY 2021-22
1. Paid up capital (INR): ` 121.97 Crore
2. Total Income (INR): ` 10038.24 Crore
3. Total profit after taxes (INR): ` 490.12 Crore
4. Total spending on Corporate Social Responsibility (CSR) as percentage of profit after tax (%) :
As stipulated under section 135 of the Companies Act, 2013, on the basis of 2% of the average net profits of the previous three
financial years the Company budgeted to spend ` 10.68 Crores in the Financial Year 2021-22, out of which an amount of ` 8.54
Crores was spent on various CSR activities. The shortfall in the expenditure was mainly on account of inability of the Company to
execute 2 of the approved CSR Projects was mainly because of delay in the finalization of the drawings and due to election in the
State of Uttar Pradesh.
5. List of activities in which the Corporate Social Responsibility (CSR) expenditure has been incurred:
a) Rural Development Projects.
b) Promoting Education
c) Promoting Health Care
SECTION C: OTHER DETAILS

Yes, as on 31st March 2022, the Company has 24

1 Does the Company have Subsidiary Companies
Subsidiary Companies including step down Subsidiaries
Do the Subsidiary Companies participate in the BR initiatives of
2 Yes, through their own BR initiatives
the parent Company
Do any other entity/entities (e.g. suppliers, distributors etc.) that
3 the Company does business with participate in the BR initiatives No
of the Company if yes, then indicate the percentage

46 NCC LIMITED
SECTION D: BR INFORMATION
1. Details of Director/Directors responsible for BR
(a) Details of Director/Directors responsible for implementation of BR policy /policies

Sl.No Particulars Details

1 DIN Number 00019100
2 Name Sri A G K Raju
3 Designation Executive Director
(b) Details of BR Head

Sl.No Particulars Details

1 DIN Number (if Applicable) 00019100
2 Name Sri A G K Raju
3 Designation Executive Director
4 Phone Number 040-23268888
5 e-mail id [email protected]
2. Principle-wise (as per NVGs)
Principle 1: Businesses should conduct and govern themselves with Ethics, Transparency and Accountability.
Principle 2: Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle.
Principle 3: Businesses should promote the well-being of all employees.
Principle 4: Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged,
vulnerable and marginalised.
Principle 5 : Businesses should respect and promote human rights.
Principle 6 : Business should respect, protect and make efforts to restore the environment.
Principle 7: Business when engaged in influencing public and regulatory policy, should do so in a responsible manner.
Principle 8: Businesses should support inclusive growth and equitable development.
Principle 9: Businesses should engage with and provide value to their customers and consumers in a responsible manner.
(a) Details of compliances (Reply in Y/N)

S.No Questions P1 to P9
1 Do you have policy or policies for Yes
Has the policy been formulated in consultation with stake Policies formulated after internal consultation covering all
2
holders? functional areas
Does the policy conform to any national or international
3 The Policies conform to statutory provisions
standards?
Yes, The policies were approved by the Board of Directors
Has the policy been approved by the Board?
and the Managing Director and the Executive Director have
4 Has it been signed by MD / Owner / CEO /
been authorised to take necessary steps for complying with
Appropriate Board Director
the BRR requirements
Does the Company have a specified committee of the Board
5 of Directors / Official(s) to oversee the implementation of the Yes. Executive Director
policy?
Policies hosted on the Company’s website http://ncclimited.
6 Indicate the link for the policy to be viewed online
com/images/PDF/Policies and / or on Company’s intra net
Has the policy been communicated to all relevant internal and
7 Yes. Communicated to all internal stakeholders
external stakeholders?

Annual Report 2021-22 47

 Does the Company have in house structure to implement the
8 Yes.
policy or policies?
Does the Company have a grievance redressal mechanism
9 related to the policy /policies to address the stake holders’ Yes
grievances related to the policy / policies?
Has the Company carried out independent audit/evaluation
10 Yes. Internal evaluation
of the working of this policy by internal or external agency ?
(b) If answer to the question at serial number 1 against any principle, is ‘NO’, please explain why (Tick up to 2 options): Not Applicable
3. Governance related BR

Indicate the frequency with which the Board of Directors,

a Committee of the Board or CEO to assess the BR performance Annually
of the Company
Yes, the Company publishes BR Report as part of the Annual
Does the Company publish a BR or a Sustainability Report?
Report and also hosts the same on the Company’s website.
b
Web link for viewing the BR Report http://ncclimited.com/images/PDF/Policies
How frequently it is published? Annually
E: PRINCIPLE-WISE PERFORMANCE
Principle 1: Businesses should conduct and govern themselves with Ethics, Transparency and Accountability

Coverage of policy relating to ethics, bribery and corruption The policy is basically applicable to the Company. The group
1
(e.g. Joint Ventures, Suppliers, Contractors, NGOs etc.). Companies have adopted similar policies
How many stake holder complaints have been received in the
2 Nil
Financial Year 2021-22?
Principle 2: Businesses should provide goods and services that are safe and contribute to sustainability throughout their life
cycle

a. Construction,
List three products or services whose design has incorporated
1 b. Engineering and
social or environmental concerns, risks and/or opportunities.
c. Infrastructure Development activities.
The Company is not engaged in the business of
manufacturing goods and consumer products. The company
For each such product, provide the following details in respect however takes necessary steps to ensure efficient use of
2
of resource use (energy, water, raw material etc) the raw materials and goods required for execution of the
projects including in relation to energy, water, raw material
etc.
Does the company have procedures in place for sustainable
3 Yes
sourcing ?
Yes. During the execution of the projects awarded to the
Company, the Company to the extent possible / permitted
Has the Company taken any steps to procure goods and
under the contracts awarded procures raw materials including
4 services from local & small producers, including communities
bricks, aggregates, sand etc from local & small producers.
surrounding their place of work?
The company also utilises the services of locals to the extent
possible / permitted under the contracts awarded to it
Recycling the product is not applicable as the company is not
Does the Company have a mechanism to recycle products and
5 engaged in manufacturing activities. Hazardous wastes are
waste?
disposed off as per the statutory provisions

48 NCC LIMITED
Principle 3: Businesses should promote the well-being of all employees

1 Total number of permanent employees as 5109

on 31.03.2022
2 No. of employees hired on contractual Depending upon the requirements of each of the projects awarded to the Company, the Company
basis engages employees on contractual basis (79 as on 31st March 2022)
3 Number of permanent women employees 83
4 Number of permanent employees with 05
disabilities
5 Employee associations Nil
6 Number of complaints relating to child Nil
labour, forced labour, involuntary labour,
sexual harassment in the last financial
year and pending, as on the end of the
financial year
7 Brief details of Training programs held Learning & Development
during the F.Y 2021-22 for the employees During the financial year 2021-22, a total of 613 Training Programs were organized through
including with regard to Safety, Skill virtual and classroom mode. Out of these, 113 training programmes were organized through
Development / Up-gradation Programs. virtual mode covering the aspects of Technical, Functional, Behavioural, Environment, Wellness
Programs held for exclusively for the and Safety. A Special emphasis on training & awareness towards Covid-19 and its appropriate
women employees: behaviour was given widely in the office. A total of 2452 employees attended the training
programs.
In total 3055 man-days were achieved during the period on the various training aspects like
Behavioural, Managerial, Leadership, Technical / Functional, Environment, Health & Safety
Awareness (EHS) and other topics too.
ISO
ISO A total of 33 (internal & External) IMS & QMS audits and 3 sessions on ISO awareness
programs were organized virtually for the employees at sites during the year to fulfil the audit
requirements.
Employee Engagement
We believe that our employees are partners in our progress. The structure of our working lives
encourages innovation, knowledge sharing and collaboration for long-term success. Our core
values: Openness and Trust; Integrity and Reliability; Teamwork and Collaboration; Commitment;
Creativity is our guiding principle and defines our identity.
Our employees are encouraged to share ideas, work together, and understand that it is the
collective strength of a team that makes us successful.
The well-being of the employees at all project locations is a central concern. NCC Ltd has always
focused on various employee engagement initiatives for the benefit of employees and their
families.
NCC communicates and connects with employees working in multiple locations across projects
through our in-house magazine “Samasthi”.
Measures taken during COVID-19:
• Control measures implemented at the early stages during the first wave of COVID-19 helped
in the successful mitigation of virus spread during 2nd and 3rd Wave. Amid the ensuing
chaos due to COVID19, NCC has gone the extra mile to keep its staff protected by organizing
vaccination drives to precautionary medication.
• NCC has provided free vaccination to employees and their families, 24/7 assistance to
employees and their family members by working closely with Hospitals managements, testing
labs and team of Doctors for securing Oxygen and beds, also ensuring sufficient supply of PPE
kits and sanitizers for the affected staff has made life easy for everyone.
• For NCC, employees are top priority and we took all possible steps to help them through
this crisis. Over & above Company taking regular medical insurance and any excess amount
incurred by employee was reimbursed during Covid time.
• NCC has procured Ambulance for providing 24/7 service for meeting any emergency crisis. It is
equipped with advance Medical equipment and tools with lifesaving services, It will be handled
by medical Technician for supporting patients requiring more specialized care and transferring
for more emergency treatment cases.
• NCC has displayed unmatched commitment to the health and safety of their employees.
• Sanitization, temperature checking of all the people entering the building, project sites
compulsory Masks, refrain from in-person meetings
• Replacement of thumb based attendance system with Facial Recognition attendance system
helped ensure touchless safety containing spread of virus.

Annual Report 2021-22 49

 • COVID Task Force consisting of Senior Management and HOD’s & COVID Action team with
Front Line Covid Team was put in place to help employees in every way possible.
• Awareness Training Programmes with help of panel of doctors.
• Social distancing, Using Arogya Setu app, Body temperature screening, Use of Face
Mask, Minimal Use of Lift, using toothpicks for operating lift buttons, minimal use
of cafeteria for lunch by avoiding the food supplies from outside and increasing the
disinfection of floors and office premises on regular basis.
• Work from Home except permitting the essential and critical Team of our Admin to
take of the maintenance and upkeep of UPS, equipments, water supply, watch ward etc.
Principle 4: Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are
disadvantaged, vulnerable and marginalised

1 Has the Company Mapped its internal and external stakeholders? Yes, internal stakeholders
Out of the above, has the Company identified the disadvantaged, vulnerable and
2 For the internal Stakeholders
marginalised stakeholders?
Are there any special initiatives taken by the Company to engage with disadvantaged,
3 As applicable
vulnerable and marginalised stakeholders?
Principle 5: Businesses should respect and promote human rights

The policy is basically applicable to

Does the Company’s policy on human rights cover only the Company or extend to the
1 the company. Same is extended to
Group /Joint Ventures / Suppliers / Contractors/ NGOs/Others?
the group companies
2 How many Stakeholders complaints have been received in the Financial Year 2021-22? Nil

Percentage of satisfactory resolution of Stake Holders complaints?

Not Applicable as the Company has
3
not received any complaints
Principle 6: Business should respect, protect and make efforts to restore the environment

Does the policy related to Principle 6 cover only the company

The policy is basically applicable to the Company. The group
1 or extends to the Group / Joint Ventures / Suppliers /
companies have adopted similar policies
Contractors / NGOs / others?
Does the company have strategies / initiatives to address Yes. The company addresses issues such as climate change,
global environmental issues such as climate change, global global warming through conservation of natural resources. To
2
warming, etc? Y/N. protect the environment hazardous wastes are disposed of as
If yes, please give hyperlink for webpage etc. per the statutory provisions
The company addresses the issues through the Environment,
Does the company identify and assess potential environmental Health and Safety (EHS) Policy and also holds the ISO
3
risks? certification in respect of Environment, Health and
Management System
Does the company have any project related to Clean Wherever the projects awarded to the company permit
4 Development Mechanism? adoption of Clean Development Mechanism, the company
If Yes, whether any environmental compliance report is filed? strictly adheres to the same.
Has the company undertaken any other initiatives on-clean As part of the project execution the Company has undertaken
5 technology, energy efficiency, renewable energy, etc.? initiatives relating to clean technology, energy efficiency,
If yes, please give hyperlink for web page etc. renewable energy, etc.
Are the Emissions / Waste generated by the company within
6 the permissible limits given by CPCB / SPCB for the financial Yes. Complied to the extent applicable
year being reported?
Number of show cause / legal notices received from CPCB /
7 SPCB which are pending (i.e. not resolved to satisfaction) as Nil
on end of Financial Year.

50 NCC LIMITED
Principle 7: Business, when engaged in influencing public and regulatory policy, should do so in a responsible manner

Yes
1. Construction Federation of India
2. Builders Association of India
3. Construction Industry Development Council (CIDC)
Is the Company a member of any trade and chamber or
4. Confederation of Indian Industry
1 association and If Yes, name of major ones that the
5. Water Supply Contractors Association
Company deals with
6. National Highway Builders Federation
7. National Safety Council of India
8. Federation of Telangana Chamber of Commerce and Industry
9. BRICS Chamber of Commerce & Industry
Whenever Policy guidelines are issued, the company has been
Has the Company advocated/lobbied through the above
providing its suggestions to the Government and the above Trade
associations for the advancement or improvement of
2 / Chamber Associations. Company officials have also attended
the public good?
seminars / workshops organized by the apex organizations for
If yes specify the broad areas
facilitating views on the policies.
Principle 8: Businesses should support inclusive growth and equitable development

Yes. The Company has adopted the CSR policy pursuant to Section
Has the Company carried on programmes / initiatives
135/Schedule VII of the Companies Act, 2013. The details of the
1 / projects in support of inclusive growth and equitable
CSR projects under taken by the Company is provided in the
development?
Annexure II to the Directors’ Report
Are the programmes/projects undertaken through
2 in-house team / Own foundation / External NGO / In house teams and External Agencies viz., charitable organisations.
Government structures or any other organisations?
Have you done any impact assessment of your
3 Informal assessment
initiatives
What is the Company’s Direct contribution to the
4 ` 8.01 Crore
community development projects?
Has the Company taken any steps to ensure that that
5 the above initiatives are successfully adopted by the Yes
community?
Principle 9: Businesses should engage with and provide value to their customers and consumers in a responsible manner

What percentage of customer complaints / consumer

1 Nil
cases are pending as on the end of financial year.
Does the company display product information on the
2 product label, over and above what is mandated as per Not Applicable
local laws?
Is there any case filed by any stakeholder against the
company regarding unfair trade practices, irresponsible
3 No
advertising and/or anti-competitive behaviour during the
last five years and pending as on end of financial year?
Did your company carry out any consumer survey/
4 Not Applicable
consumer satisfaction trends?

Annual Report 2021-22 51

INDEPENDENT AUDITOR’S REPORT
To the Members of
NCC Limited
Report on the Audit of the Standalone Ind AS Financial
Statements
Opinion Key Audit Matters
We have audited the accompanying standalone Ind AS financial Key audit matters are those matters that, in our professional
statements of NCC Limited (“the Company”), which includes 5 judgment, were of most significance in our audit of the standalone
branches and 30 joint operations comprising the Balance sheet as Ind AS financial statements for the financial year ended March 31,
at March 31, 2022, the Statement of Profit and Loss, including 2022. These matters were addressed in the context of our audit
the statement of Other Comprehensive Income, the Cash Flow of the standalone Ind AS financial statements as a whole, and in
Statement and the Statement of Changes in Equity for the year then forming our opinion thereon, and we do not provide a separate
ended, and notes to the standalone Ind AS financial statements, opinion on these matters. For each matter below, our description
including a summary of significant accounting policies and other of how our audit addressed the matter is provided in that context.
explanatory information (hereinafter referred to as “the standalone
Ind AS financial statements). We have determined the matters described below to be the key
audit matters to be communicated in our report. We have fulfilled
In our opinion and to the best of our information and according the responsibilities described in the Auditor’s Responsibilities for
to the explanations given to us and based on the consideration of the Audit of the Standalone Ind AS Financial Statements section
reports of the branch auditors and other auditors on the separate of our report, including in relation to these matters. Accordingly,
financial statements and on the other financial information of the our audit included the performance of procedures designed to
branches and joint operations referred to in the Other Matter respond to our assessment of the risks of material misstatement
paragraph below, the aforesaid standalone Ind AS financial of the standalone Ind AS financial statements. The results of our
statements give the information required by the Companies Act, audit procedures, including the procedures performed to address
2013, as amended (“the Act”) in the manner so required and give the matters below, provide the basis for our audit opinion on the
a true and fair view in conformity with the accounting principles accompanying standalone Ind AS financial statements.
generally accepted in India, of the state of affairs of the Company
as at March 31, 2022, its profit including other comprehensive loss,
its cash flows and the changes in equity for the year ended on that
date.
Basis for Opinion
We conducted our audit of the standalone Ind AS financial
statements in accordance with the Standards on Auditing (SAs),
as specified under section 143(10) of the Act. Our responsibilities
under those Standards are further described in the ‘Auditor’s
Responsibilities for the Audit of the standalone Ind AS financial
statements’ section of our report. We are independent of the
Company in accordance with the ‘Code of Ethics’ issued by the
Institute of Chartered Accountants of India together with the ethical
requirements that are relevant to our audit of the Standalone Ind AS
financial statements under the provisions of the Act and the Rules
thereunder, and we have fulfilled our other ethical responsibilities
in accordance with these requirements and the Code of Ethics. We
believe that the audit evidence we and other auditors, referred to
in the Other Matter paragraph below, have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
standalone Ind AS financial statements.

52 NCC LIMITED
Key audit matters How our audit addressed the key audit matters
Trade receivables and contract assets
Total trade receivables and total contract assets amounting to Our audit procedures amongst others included the following:
` 2,492.23 crores and ` 4,628.25 crores respectively, represents
• We understood and tested on a sample basis the design and
approximately 51.50% of the total assets of the Company as at
operating effectiveness of management controls over the
March 31, 2022.
recognition and the recoverability of the trade receivables
In assessing the recoverability of the aforesaid balances and and contract assets.
determination of allowance for expected credit loss, management’s
• We performed test of details and tested relevant contracts,
judgement involves consideration of aging status, historical payment
documents and subsequent settlements for material trade
records, evaluation of litigations, the likelihood of collection based on
receivable balances and amounts included in contract assets
the terms of the contract and the credit information of its customers.
that are due on performance of future obligations.
Management estimation is required in the measurement of work
• We tested the aging of trade receivables at the year end.
completed as at year end for recognition of unbilled revenue.
• We performed test of details and tested relevant contracts
We considered this as key audit matter due to the materiality of the
and documents with specific focus on measurement of work
amounts and significant estimates and judgements as stated above.
completed as at the year-end for material unbilled revenue
balances included in contract asset.
• We performed additional procedures, in respect of
material over-due trade receivables and long outstanding
contract assets, i.e. tested historical payment records,
correspondence with customers and legal advice obtained
by the management on litigations from legal experts.
• We evaluated the competence, capabilities and objectivity of
the aforesaid legal experts.
• We performed additional procedures in respect of balances
disclosed in note 47, which include review of communications
to/ from customers, physical inspection of work done in
respect of unbilled revenue, verification of last bills certified,
etc.
• We assessed the allowance for expected credit loss made by
management.
Carrying value of investment made in a subsidiary
The Company’s carrying value of investment in NCC Infrastructure Our audit procedures amongst others included the following:
Holdings Limited (‘NCCIHL’), a subsidiary, as at March 31, 2022 is
• We obtained and read management’s assessment of the
` 388.53 crores which is higher by ` 176.28 crores as compared
recoverable amount of the investment.
to the Company’s share of net worth in NCCIHL as per its audited
financial statements. (refer note 4.3) • We traced the net worth of NCCIHL to the audited financial
statements of NCCIHL as at and for the year ended March
Management’s assessment of the recoverable amount of the
31, 2022, audited by another firm of chartered accountants.
investment in the above subsidiary has been identified as a key audit
matter due to the significance of the carrying value of the investment • We obtained a summary of the claims filed by NCCIHL but
and that it requires the management to make significant estimate of not accounted for. We read and assessed the legal advice
future cash flows including from the claims filed/won at arbitration obtained by the Company from expert in respect of the
by NCCIHL which are sub-judice and not accounted for, by taking tenability of the above claims.
into consideration the management’s internal assessment and legal
• We obtained and read the arbitration orders received in
advice on the tenability of these claims.
favor of NCCIHL.
• We evaluated the competence, capabilities and objectivity of
the aforesaid expert.
• We assessed the allowance for impairment made by
management.

Annual Report 2021-22 53

 Key audit matters How our audit addressed the key audit matters
Indirect tax litigations
The Company is subject to assessments by tax authorities on various Our audit procedures amongst others included the following:
indirect tax matters resulting into litigations/disputes (refer note 34(i)
• We obtained list of indirect tax litigations as at March 31,
(a) to the standalone Ind AS financial statements).
2022 from the management.
The tax matters involve material amounts which are at various stages
• We discussed the matters with the management to
and the proceedings take significant time to resolve.
understand the possible outcome of these disputes.
Management exercises significant judgement in assessing the
• We involved our experts to review the management’s
financial impact of the tax matters due to the complexity of the cases
assessment of the possible outcome of the disputes relating
and involvement of various tax authorities.
to indirect tax litigations.
Accordingly, we have identified this as a key audit matter.
• We assessed management’s assumptions and estimates in
respect of contingent liability disclosure in note 34(i)(a) to
the accompanying standalone Ind AS financial statements.

We have determined that there are no other key audit matters to judgments and estimates that are reasonable and prudent; and
communicate in our report. the design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the
Information Other than the Financial Statements and
accuracy and completeness of the accounting records, relevant to
Auditor’s Report Thereon
the preparation and presentation of the standalone Ind AS financial
The Company’s Board of Directors is responsible for the other statements that give a true and fair view and are free from material
information. The other information comprises the information misstatement, whether due to fraud or error.
included in the Annual report but does not include the standalone
In preparing the standalone Ind AS financial statements,
Ind AS financial statements and our auditor’s report thereon.
management is responsible for assessing the Company’s ability
Our opinion on the standalone Ind AS financial statements does to continue as a going concern, disclosing, as applicable, matters
not cover the other information and we do not express any form of related to going concern and using the going concern basis of
assurance conclusion thereon. accounting unless management either intends to liquidate the
Company or to cease operations, or has no realistic alternative but
In connection with our audit of the standalone Ind AS financial
to do so.
statements, our responsibility is to read the other information and,
in doing so, consider whether such other information is materially Those charged with governance are also responsible for overseeing
inconsistent with the standalone Ind AS financial statements or the Company’s financial reporting process.
our knowledge obtained in the audit or otherwise appears to be
Auditor’s Responsibilities for the Audit of the Standalone Ind
materially misstated. If, based on the work we have performed,
AS Financial Statements
we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing Our objectives are to obtain reasonable assurance about whether
to report in this regard. the standalone Ind AS financial statements as a whole are free
from material misstatement, whether due to fraud or error, and
Responsibilities of Management for the Standalone Ind AS
to issue an auditor’s report that includes our opinion. Reasonable
Financial Statements
assurance is a high level of assurance, but is not a guarantee that
The Company’s Board of Directors is responsible for the matters an audit conducted in accordance with SAs will always detect a
stated in section 134(5) of the Act with respect to the preparation material misstatement when it exists. Misstatements can arise from
of these standalone Ind AS financial statements that give a true and fraud or error and are considered material if, individually or in the
fair view of the financial position, financial performance including aggregate, they could reasonably be expected to influence the
other comprehensive loss, cash flows and changes in equity economic decisions of users taken on the basis of these standalone
of the Company in accordance with the accounting principles Ind AS financial statements.
generally accepted in India, including the Indian Accounting
As part of an audit in accordance with SAs, we exercise professional
Standards (Ind AS) specified under section 133 of the Act read
judgment and maintain professional skepticism throughout the
with the Companies (Indian Accounting Standards) Rules, 2015,
audit. We also:
as amended. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of • Identify and assess the risks of material misstatement of the
the Act for safeguarding of the assets of the Company and for standalone Ind AS financial statements, whether due to fraud
preventing and detecting frauds and other irregularities; selection or error, design and perform audit procedures responsive to
and application of appropriate accounting policies; making those risks, and obtain audit evidence that is sufficient and

54 NCC LIMITED
 appropriate to provide a basis for our opinion. The risk of Other Matter
not detecting a material misstatement resulting from fraud is
We did not audit the financial statements and other financial
higher than for one resulting from error, as fraud may involve
information of 4 branches and 11 joint operations included in
collusion, forgery, intentional omissions, misrepresentations,
the accompanying standalone Ind AS financial statements of
or the override of internal control.
the Company whose financial statements and other financial
• Obtain an understanding of internal control relevant to the information reflect total assets of ` 185.06 crores as at March
audit in order to design audit procedures that are appropriate 31, 2022 and the total revenues of ` 286.85 crores and net cash
in the circumstances. Under section 143(3)(i) of the Act, we inflows of ` 1.85 crores for the year ended on that date. These
are also responsible for expressing our opinion on whether financial statements/information of these branches and joint
the Company has adequate internal financial controls with operations have been audited by the branch auditors and other
reference to standalone Ind AS financial statements in place auditors respectively, whose reports have been furnished to us, and
and the operating effectiveness of such controls. our opinion in so far as it relates to the amounts and disclosures
included in respect of these branches and joint operations, is based
• Evaluate the appropriateness of accounting policies used
solely on the report of such branch auditors and other auditors
and the reasonableness of accounting estimates and related
respectively.
disclosures made by management.
Of these, 1 branch is located outside India whose financial
• Conclude on the appropriateness of management’s use of the
statements and other financial information have been prepared in
going concern basis of accounting and, based on the audit
accordance with accounting principles generally accepted in their
evidence obtained, whether a material uncertainty exists
respective country and which has been audited by branch auditors
related to events or conditions that may cast significant doubt
under generally accepted auditing standards applicable in their
on the Company’s ability to continue as a going concern. If we
respective country. The Company’s management has converted
conclude that a material uncertainty exists, we are required
the financial statement of such branch located outside India from
to draw attention in our auditor’s report to the related
accounting principles generally accepted in their respective country
disclosures in the financial statements or, if such disclosures
to accounting principles generally accepted in India. We have
are inadequate, to modify our opinion. Our conclusions are
audited these conversion adjustments made by the Company’s
based on the audit evidence obtained up to the date of our
management. Our opinion in so far as it relates to the balances and
auditor’s report. However, future events or conditions may
affairs of such branch located outside India is based on the report
cause the Company to cease to continue as a going concern.
of branch auditors and the conversion adjustments prepared by the
• Evaluate the overall presentation, structure and content of management of the Company and audited by us.
the standalone Ind AS financial statements, including the
Our opinion on the standalone Ind AS financial statements and our
disclosures, and whether the standalone Ind AS financial
report on Other Legal and Regulatory Requirements below is not
statements represent the underlying transactions and events
modified in respect of these matters.
in a manner that achieves fair presentation.
Report on Other Legal and Regulatory Requirements
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit 1. As required by the Companies (Auditor’s Report) Order, 2020
and significant audit findings, including any significant deficiencies (“the Order”), issued by the Central Government of India in
in internal control that we identify during our audit. terms of sub-section (11) of section 143 of the Act, we give
in the “Annexure 1” a statement on the matters specified in
We also provide those charged with governance with a statement
paragraphs 3 and 4 of the Order.
that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships 2. As required by Section 143(3) of the Act, we report that:
and other matters that may reasonably be thought to bear on our
(a) We have sought and obtained all the information and
independence, and where applicable, related safeguards.
explanations which to the best of our knowledge and
From the matters communicated with those charged with belief were necessary for the purposes of our audit;
governance, we determine those matters that were of most
(b) In our opinion, proper books of account as required by
significance in the audit of the standalone Ind AS financial
law have been kept by the Company so far as it appears
statements for the financial year ended March 31, 2022 and are
from our examination of those books and proper returns
therefore the key audit matters. We describe these matters in our
adequate for the purposes of our audit have been
auditor’s report unless law or regulation precludes public disclosure
received from the branches not visited by us;
about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report (c) The reports on the accounts of the branch offices of the
because the adverse consequences of doing so would reasonably Company audited under Section 143(8) of the Act by
be expected to outweigh the public interest benefits of such branch auditors have been sent to us and have been
communication. properly dealt with by us in preparing this report;

Annual Report 2021-22 55

 (d) The Balance Sheet, the Statement of Profit and Loss iv. a) The management has represented that, to
including the Statement of Other Comprehensive the best of its knowledge and belief no funds
Income, the Cash Flow Statement and the Statement have been advanced or loaned or invested
of Changes in Equity dealt with by this Report are in (either from borrowed funds or share premium
agreement with the books of account and with the or any other sources or kind of funds) by the
returns received from the branches not visited by us; Company to or in any other persons or entities,
including foreign entities (“Intermediaries”),
(e) In our opinion, the aforesaid standalone Ind AS financial
with the understanding, whether recorded
statements comply with the Accounting Standards
in writing or otherwise, that the Intermediary
specified under Section 133 of the Act, read with
shall, whether, directly or indirectly lend or
Companies (Indian Accounting Standards) Rules, 2015,
invest in other persons or entities identified in
as amended;
any manner whatsoever by or on behalf of the
(f) On the basis of the written representations received Company (“Ultimate Beneficiaries”) or provide
from the directors as on March 31, 2022 taken on any guarantee, security or the like on behalf of
record by the Board of Directors, none of the directors is the Ultimate Beneficiaries;
disqualified as on March 31, 2022 from being appointed
b) The management has represented that, to
as a director in terms of Section 164 (2) of the Act;
the best of its knowledge and belief no funds
(g) With respect to the adequacy of the internal financial have been received by the Company from any
controls with reference to these standalone Ind AS persons or entities, including foreign entities
financial statements and the operating effectiveness of (“Funding Parties”), with the understanding,
such controls, refer to our separate Report in “Annexure whether recorded in writing or otherwise,
2” to this report; that the Company shall, whether, directly or
indirectly, lend or invest in other persons or
(h) In our opinion, the managerial remuneration for the
entities identified in any manner whatsoever
year ended March 31, 2022 has been paid / provided
by or on behalf of the Funding Party (“Ultimate
by the Company to its directors in accordance with the
Beneficiaries”) or provide any guarantee,
provisions of section 197 read with Schedule V to the
security or the like on behalf of the Ultimate
Act;
Beneficiaries; and
(i) With respect to the other matters to be included in
c) Based on such audit procedures that were
the Auditor’s Report in accordance with Rule 11 of the
considered reasonable and appropriate in
Companies (Audit and Auditors) Rules, 2014, as amended
the circumstances, nothing has come to our
in our opinion and to the best of our information and
notice that has caused us to believe that the
according to the explanations given to us:
representations under sub-clause (a) and (b)
i. The Company has disclosed the impact of pending contain any material misstatement.
litigations on its financial position in its standalone
v. The dividend declared or paid during the year by
Ind AS financial statements – Refer Note 34(i) and
the Company is in compliance with section 123 of
41 to the standalone Ind AS financial statements;
the Act.
ii. The Company has made provision, as required
under the applicable law or accounting standards,
for material foreseeable losses, if any, on long-term For S.R. Batliboi & Associates LLP
contracts including derivative contracts; Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004
iii. There has been no delay in transferring amounts,
required to be transferred, to the Investor Education
per Navneet Rai Kabra
and Protection Fund by the Company
Partner
Membership Number: 102328
UDIN: 22102328AITLHW4991

Place of Signature: Hyderabad

Date: May 11, 2022

56 NCC LIMITED
Annexure 1, referred to in paragraph 1 of our report of even date
Re: NCC Limited (‘The Company’)
In terms of the information and explanations sought by us and (i) (b) A major portion of fixed assets have been physically
given by the Company and the books of account and records verified by the management in accordance with the
examined by us in the normal course of audit and to the best of programme of verification, which, in our opinion, provides
our knowledge and belief, we state that: for physical verification of all fixed assets at reasonable
interval having regard to the size of the Company and
(i)(a)(A) The Company has maintained proper records showing full
nature of its assets and no material discrepancies were
particulars, including quantitative details and situation of
identified on such verification.
property, plant and equipment.
(i) (c) The title deeds of immovable properties (other than
(B) The Company has maintained proper records showing full
properties where the Company is the lessee and the lease
particulars of intangible assets.
agreements are duly executed in favour of the lessee)
disclosed in note 3.4 to the financial statements are held
in the name of the Company except two immovable
properties as indicated in the below mentioned cases:

Whether title deed holder

Period held –
Description Gross is a promoter, director Reason for not
Title deeds held Indicate range,
of the item Carrying or relative# of promoter/ being held in name
in the name of where
of property Value director or employee of of company*
Appropriate
promoter/director
` 15.00 NCC Urban Infrastructure Limited From December 31, Refer Note 3.4 of the
Land No
crores (subsidiary of the Company) 2020 to till date* financial statements
Vaidehi Avenues Limited
` 5.13 (subsidiary of the Company From April 01, 2020 Refer Note 3.4 of the
Land No
crores merged with effect from April till date* financial statements
01, 2020)
*the above dates are date of purchase of the property by the Company.

(i) (d) TheCompany has not revalued its property, plant and (iii) (a) During the year, the Company has provided loans and
equipment (including right of use assets) or intangible stood guarantee to other entities, the details of which are
assets during the year. tabulated below:
(i) (e) 
No proceedings have been initiated or are pending (` in crores)
against the Company for holding any benami property
under the Benami Transactions (Prohibition) Act, 1988 Guarantees
(45 of 1988) and rules made thereunder. Particulars Loans (Financial
guarantees)
(ii) (a) 
The management has conducted physical verification
Aggregate amount granted / provided
of inventory at reasonable intervals during the year.
during the year
In our opinion and according to the information and
explanations given to us, the coverage and procedure of - Subsidiaries 105.35 31.48
such verification by the management is appropriate and - Others 41.16 -
no discrepancies of 10% or more in the aggregate for
Balance outstanding as at the balance
each class of inventory were noticed on such physical
sheet date in respect of above cases
verification.
- Subsidiaries 81.04 31.97
(ii) (b) As disclosed in note 21.3 to the financial statements,
the Company has been sanctioned working capital limits - Others 330.04 -
in excess of ` five crores in aggregate from banks and/ (iii) (b) 
During the year, the investments made, guarantees
or financial institutions during the year on the basis of provided, securities given and the terms and conditions
security of current assets of the Company. The quarterly of all loans granted are not prejudicial to the Company’s
returns/statements filed by the Company with such banks interest.
and financial institutions are in agreement with the books
of accounts of the Company.

Annual Report 2021-22 57

(iii) (c) 
The Company has granted loans during the year to (iii) (d) There are no amounts of loans and advance in the nature
companies, where the schedule of repayment of of loans granted which are overdue for more than ninety
principal and payment of interest has been stipulated days.
and the repayment or receipts are regular except in
(iii) (e) The Company had granted loans to companies which had
case of repayment of principal (refer clause iii(e) below
fallen due during the year. The Company had renewed
for principal amount of loans renewed/extended)
loans during the year to the respective parties to settle
and payment of interest dues by NCC Vizag Urban
the dues which had fallen due for the existing loans.
Infrastructure Private Limited and NCC Infrastructure
Holdings Mauritius Pte. Ltd. where the Company has The aggregate amount of such loans renewed and the
waived off the interest receivable. percentage of the aggregate to the total loans granted
during the year are as follows:
(` in crores)
Aggregate amount of overdues Percentage of the aggregate to the
Name of Parties of existing loans renewed or total loans or advances in the nature
extended or settled by fresh loans of loans granted during the year
NCC Infrastructure Holdings Mauritius Pte. Ltd. 57 100%
(Subsidiary of the Company)
NCC Vizag Urban Infrastructure Limited (Subsidiary 192 66%
of the Company till March 30, 2022)

(iii) (f) The Company has not granted any loans or advances records under section 148(1) of the Companies Act,
in the nature of loans, either repayable on demand or 2013, related to the construction services, and are of
without specifying any terms or period of repayment to the opinion that prima facie, the specified accounts and
companies, firms, Limited Liability Partnerships or any records have been made and maintained. We have not,
other parties. Accordingly, the requirement to report however, made a detailed examination of the same.
on clause 3(iii)(f) of the Order is not applicable to the
(vii) (a) 
The Company is generally regular in depositing with
Company.
appropriate authorities undisputed statutory dues
(iv) Loans, investments, guarantees and security in respect including goods and service tax, provident fund,
of which provisions of sections 185 and 186 of the employees’ state insurance, income-tax, sales tax, service
Companies Act, 2013 are applicable have been complied tax, duty of custom, duty of excise, Value added tax,
with by the Company. cess and other statutory dues have been applicable to it.
According to the information and explanations given to
(v) The Company has neither accepted any deposits from the
us and based on audit procedures performed by us, no
public nor accepted any amounts which are deemed to
undisputed amounts payable in respect of these statutory
be deposits within the meaning of sections 73 to 76 of
dues were outstanding, at the year end, for a period
the Companies Act and the rules made thereunder, to
of more than six months from the date they became
the extent applicable. Accordingly, the requirement to
payable.
report on clause 3(v) of the Order is not applicable to the
Company. (vii) (b) 
According to the records of the Company, the dues
outstanding of income-tax, sales-tax, service tax, custom
(vi) 
We have broadly reviewed the books of account
duty, excise duty, Goods and Service tax, value added tax
maintained by the Company pursuant to the rules made
and cess on account of any dispute, are as follows:
by the Central Government for the maintenance of cost
(` in crores)
Period to which
Nature of Amount Amount paid
Statute Forum where dispute is pending the amount
the dues involved under protest
relates
CST Appellate Authority, Bhopal 2011-15 0.72 0.49
Commissioner of
CST 2014-15 0.31 -
Commercial Taxes, Ranchi, Jharkhand
Sales tax and
CST Sales Tax Tribunal, Mumbai 2010-14 10.88 0.47
VAT Law
VAT Additional Commissioner, Andhra Pradesh 2012-13 12.47 8.27
Additional Commissioner, Grade-2 (Appeals),
VAT 2006-07 1.55 0.16
Commercial Tax, Range-5 Lucknow

58 NCC LIMITED
 (` in crores)
Period to which
Nature of Amount Amount paid
Statute Forum where dispute is pending the amount
the dues involved under protest
relates
VAT Additional Commissioner (CT), West Bengal 2010-11 20.32 -
VAT Commissioner of Sales Tax, New Delhi 2009-11 & 2012-14 13.00 4.74
VAT Appellate Deputy Commissioner, Kerala 2008-09 0.31 0.05
VAT Additional Commissioner, West Bengal 2014-15 2.77 2.93
VAT Commissioner of Sales Tax, Kerala 2012-14 2.13 -
VAT Joint Commissioner, (Appeals), SGST, Kerala 2012-13 7.81 2.74
Commissioner of Commercial Taxes, Ranchi,
VAT 2014-15 0.32 0.15
Jharkhand
High Court of Judicature at Hyderabad for the
VAT State of Telangana and the State of Andhra 2005-06 1.45 -
Pradesh
VAT Hon'ble High Court of Odisha 2007-12 10.00 3.38
VAT Hon'ble High Court of Tamil Nadu 2006-07 0.44 -
VAT Sales Tax Appellate Tribunal, Andhra Pradesh 2005-09 11.99 13.13
VAT Sales Tax Tribunal, Mumbai. 2010-15 36.64 5.77
Sales tax and VAT Sr. Joint Commissioner (Appeals), West Bengal 2008-10 & 2012-13 31.93 0.94
VAT Law 2007-10 & 2013-14
VAT Appellate Deputy Commissioner, Hyderabad 39.74 39.74
to 2015-17
Sales Tax Appellate Joint Commissioner, Andhra
VAT 2010-12 14.76 14.76
Pradesh
VAT Joint Commissioner, Lucknow 2013 -17 44.32 29.48
VAT Joint Commissioner, West Bengal 2015-17 8.70 6.78
Deputy Commissioner of Sales Tax,
VAT Oct'15 to Mar'18 12.19 2.40
Bhubaneswar
VAT Joint Commissioner, Lucknow (Appeals) 2017-18 2.95 2.29
High Court of Judicature at Hyderabad for the
Entry Tax State of Telangana and the State of Andhra 2012-13 0.99 0.40
Pradesh
Entry Tax Hon'ble High Court of Orissa 2007-12 0.74 -
High Court of Judicature at Hyderabad for the
Sales Tax State of Telangana and the State of Andhra 1994-95 0.44 0.27
Pradesh
Sales Tax Sales Tax Appellate Tribunal, Andhra Pradesh 2000-01 0.69 0.10
Central Excise
Excise Duty CESTAT, Bangalore 2007-08 0.46 0.10
Act 1944
Service Tax CESTAT, Bangalore 2005-12 75.03 0.80
Service Tax CESTAT, Hyderabad 2010-15 7.87 0.48
Finance Act Service Tax Commissioner (Appeals), Service Tax 2005-08 0.39 0.10
1994
High Court of Judicature at Hyderabad for the
Service Tax State of Telangana and the State of Andhra 2007-09 13.02 -
Pradesh

Annual Report 2021-22 59

(viii) 
The Company has not surrendered or disclosed any (ix) (d) On an overall examination of the balance sheet of the
transaction, previously unrecorded in the books of Company, we report that no funds raised on short-term
account, in the tax assessments under the Income Tax basis have been used for long-term purposes by the
Act, 1961 as income during the year. Accordingly, the Company.
requirement to report on clause 3(viii) of the Order is not
(ix) (e) On an overall examination of the balance sheet of the
applicable to the Company.
Company/ examination of the cash flow statement of the
(ix) (a) The Company has not defaulted in repayment of loans or Company, we report that the Company has not taken
other borrowings or in the payment of interest thereon to any funds from any entity or person on account of or to
any lender. meet the obligations of its subsidiaries, associates or joint
ventures.
(ix) (b) The Company has not been declared as a wilful defaulter
by any bank or financial institution or any other lender. (ix) (f) The Company has raised loans on the pledge of securities
held in its subsidiaries as per details below. Further, the
(ix) (c) Term loans were applied for the purpose for which the
Company has not defaulted in repayment of such loans
loans were obtained.
raised.

Name of Amount of loan as Details of security

Nature of loan taken Name of the subsidiary Relation Remarks
lender at March 31, 2022 pledged
Cash Credit and Consortium ` 1,007.73 crores NCC Infrastructure Holdings Subsidiary Refer Note 4.3 & None
Working Capital of 13 banks Limited & NCC Urban 4.4 of the financial
Demand Loans Infrastructure Limited statements

(x) (a) The Company has not raised any money way of initial (xiii) Transactions with the related parties are in compliance
public offer or further public offer (including debt with section 177 and 188 of Companies Act, 2013 where
instruments) and hence, reporting under clause 3(x)(a) is applicable and the details have been disclosed in the
not applicable to the Company. notes to the standalone Ind AS financial statements, as
required by the applicable accounting standards.
(x) (b) The Company has not made any preferential allotment or
private placement of shares or fully or partly convertible (xiv) (a) The Company has an internal audit system commensurate
debentures during the year under review and hence, with the size and nature of its business.
reporting requirements under clause 3(x)(b) are not
(xiv) (b) The internal audit reports of the Company issued till the
applicable to the Company.
date of the audit report, for the period under audit have
(xi) (a) No fraud by the Company or no fraud on the Company been considered by us.
has been noticed or reported during the year.
(xv) 
The Company has not entered into any non-cash
(xi) (b) 
During the year, no report under sub-section (12) of transactions with its directors or persons connected with
section 143 of the Companies Act, 2013 has been filed its directors and hence requirement to report on clause
by cost auditor/ secretarial auditor or by us in Form ADT 3(xv) of the Order is not applicable to the Company.
– 4 as prescribed under Rule 13 of Companies (Audit and
(xvi) (a) The provisions of section 45-IA of the Reserve Bank of India
Auditors) Rules, 2014 with the Central Government.
Act, 1934 (2 of 1934) are not applicable to the Company.
(xi) (c) 
As represented to us by the management, there are Accordingly, the requirement to report on clause (xvi)(a)
no whistle blower complaints received by the Company of the Order is not applicable to the Company.
during the year.
(xvi) (b) 
The Company has not conducted any Non-Banking
(xii) (a) The Company is not a nidhi Company as per the provisions Financial or Housing Finance activities without obtaining
of the Companies Act, 2013. Therefore, the requirement a valid Certificate of Registration (CoR) from the Reserve
to report on clause 3(xii)(a) of the Order is not applicable Bank of India as per the Reserve Bank of India Act, 1934.
to the Company.
(xvi) (c) 
The Company is not a Core Investment Company as
(xii) (b) The Company is not a nidhi company as per the provisions defined in the regulations made by Reserve Bank of India.
of the Companies Act, 2013. Therefore, the requirement Accordingly, the requirement to report on clause 3(xvi) of
to report on clause 3(xii)(b) of the Order is not applicable the Order is not applicable to the Company.
to the Company.
(xvi) (d) The Group has one Core Investment Company as part of
(xii) (c) The Company is not a nidhi company as per the provisions the Group.
of the Companies Act, 2013. Therefore, the requirement
(xvii) The Company has not incurred cash losses in the current
to report on clause 3(xii)(c) of the Order is not applicable
financial year and in the immediately preceding financial
to the Company.
year respectively.

60 NCC LIMITED
(xviii) There has been no resignation of the statutory auditors (xx) (a) In respect of other than ongoing projects, there are no
during the year and accordingly the provisions of clause 3 unspent amounts that are required to be transferred to a
(xviii) of the order are not applicable to the Company. fund specified in Schedule VII of the Companies Act (the
Act), in compliance with second proviso to sub section 5
(xix) On the basis of the financial ratios disclosed in note 49
of section 135 of the Act. This matter has been disclosed
to the financial statements, ageing and expected dates
in note 39(d) to the financial statements.
of realization of financial assets and payment of financial
liabilities, other information accompanying the financial (xx) (b) All amounts that are unspent under section (5) of section
statements, our knowledge of the Board of Directors 135 of Companies Act, pursuant to any ongoing project,
and management plans and based on our examination has been transferred to special account in compliance of
of the evidence supporting the assumptions, nothing with provisions of sub section (6) of section 135 of the
has come to our attention, which causes us to believe said Act. This matter has been disclosed in note 39(d) to
that any material uncertainty exists as on the date of the the financial statements.
audit report that Company is not capable of meeting its
liabilities existing at the date of balance sheet as and
when they fall due within a period of one year from the For S.R.BATLIBOI & ASSOCIATES LLP
balance sheet date. We, however, state that this is not an Chartered Accountants
assurance as to the future viability of the Company. We ICAI Firm registration number : 101049W/E300004
further state that our reporting is based on the facts up
to the date of the audit report and we neither give any Per Navneet Rai Kabra
guarantee nor any assurance that all liabilities falling due Partner
within a period of one year from the balance sheet date, Membership No.102328
will get discharged by the Company as and when they fall UDIN: 22102328AITLHW4991
due.
Place: Hyderabad
Date: May 11, 2022

Annual Report 2021-22 61

ANNEXURE 2 TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE
STANDALONE IND AS FINANCIAL STATEMENTS OF NCC LIMTED
Report on the Internal Financial Controls under Clause (i) Our audit involves performing procedures to obtain audit
of Sub-section 3 of Section 143 of the Companies Act, 2013 evidence about the adequacy of the internal financial controls
(“the Act”) with reference to these standalone Ind AS financial statements
and their operating effectiveness. Our audit of internal
We have audited the internal financial controls with reference
financial controls with reference to standalone Ind AS financial
to these standalone Ind AS financial statements of NCC Limited
statements included obtaining an understanding of internal
(“the Company”) as of March 31, 2022 in conjunction with
financial controls with reference to these standalone Ind AS
our audit of the standalone Ind AS financial statements of the
financial statements, assessing the risk that a material weakness
Company for the year ended on that date.
exists, and testing and evaluating the design and operating
Management’s Responsibility for Internal Financial effectiveness of internal control based on the assessed risk.
Controls The procedures selected depend on the auditor’s judgement,
including the assessment of the risks of material misstatement
The Company’s Management is responsible for establishing
of the financial statements, whether due to fraud or error.
and maintaining internal financial controls based on the
internal control over financial reporting criteria established We believe that the audit evidence we have obtained is sufficient
by the Company considering the essential components of and appropriate to provide a basis for our audit opinion on the
internal control stated in the Guidance Note on Audit of Company’s internal financial controls with reference to these
Internal Financial Controls Over Financial Reporting issued standalone Ind AS financial statements.
by the Institute of Chartered Accountants of India (“ICAI”).
Meaning of Internal Financial Controls With Reference to
These responsibilities include the design, implementation and
these Standalone Ind AS Financial Statements
maintenance of adequate internal financial controls that were
operating effectively for ensuring the orderly and efficient A company’s internal financial controls with reference to these
conduct of its business, including adherence to the Company’s standalone Ind AS financial statements is a process designed
policies, the safeguarding of its assets, the prevention and to provide reasonable assurance regarding the reliability of
detection of frauds and errors, the accuracy and completeness financial reporting and the preparation of standalone Ind AS
of the accounting records, and the timely preparation of reliable financial statements for external purposes in accordance with
financial information, as required under the Companies Act, generally accepted accounting principles. A company’s internal
2013. financial controls with reference to these standalone Ind AS
financial statements includes those policies and procedures that
Auditor’s Responsibility
(1) pertain to the maintenance of records that, in reasonable
Our responsibility is to express an opinion on the Company’s detail, accurately and fairly reflect the transactions and
internal financial controls with reference to these standalone dispositions of the assets of the company; (2) provide reasonable
Ind AS financial statements based on our audit. We conducted assurance that transactions are recorded as necessary to permit
our audit in accordance with the Guidance Note on Audit preparation of standalone Ind AS financial statements in
of Internal Financial Controls Over Financial Reporting (the accordance with generally accepted accounting principles, and
“Guidance Note”) and the Standards on Auditing, as specified that receipts and expenditures of the company are being made
under section 143(10) of the Companies Act 2013, to the extent only in accordance with authorisations of management and
applicable to an audit of internal financial controls, both issued directors of the company; and (3) provide reasonable assurance
by ICAI. Those Standards and the Guidance Note require that regarding prevention or timely detection of unauthorised
we comply with ethical requirements and plan and perform the acquisition, use, or disposition of the company’s assets that
audit to obtain reasonable assurance about whether adequate could have a material effect on the standalone Ind AS financial
internal financial controls with reference to these standalone statements.
Ind AS financial statements was established and maintained
and if such controls operated effectively in all material respects.

62 NCC LIMITED
Inherent Limitations of Internal Financial Controls With financial controls with reference to these standalone Ind AS
Reference to these Standalone Ind AS Financial Statements financial statements were operating effectively as at March
31, 2022, based on the internal control over financial reporting
Because of the inherent limitations of internal financial controls
criteria established by the Company considering the essential
with reference to these standalone Ind AS financial statements,
components of internal control stated in the Guidance Note
including the possibility of collusion or improper management
issued by the ICAI.
override of controls, material misstatements due to error or
fraud may occur and not be detected. Also, projections of any
evaluation of the internal financial controls with reference to
these standalone Ind AS financial statements to future periods For S.R. Batliboi & Associates LLP
are subject to the risk that the internal financial control with Chartered Accountants
reference to these standalone Ind AS financial statements may ICAI Firm Registration Number: 101049W/E300004
become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may per Navneet Rai Kabra
deteriorate. Partner
Membership Number: 102328
Opinion UDIN: 22102328AITLHW4991
In our opinion, the Company has, in all material respects,
adequate internal financial controls with reference to these Place of Signature: Hyderabad
standalone Ind AS financial statements and such internal Date: May 11, 2022

Annual Report 2021-22 63

BALANCE SHEET AS AT MARCH 31, 2022 (` in crores)

AS AT AS AT
Note
MARCH 31, 2022 MARCH 31, 2021

ASSETS

Non Current Assets

Property, Plant and Equipment 3 1,063.71 1,043.72

Capital Work in Progress 3 7.02 21.53

Investment Property 3.1 159.85 178.39

Investment Property under Construction 3.1 103.47 68.10

Other Intangible Assets 3.2 0.72 0.71

Financial Assets

Investments in Associates 4.1 7.08 10.54

Other Investments 4.1 886.34 973.52

Loans 5 197.49 158.38

Trade Receivables 6 107.96 139.59

Other Financial Assets 7 140.20 153.09

Deferred Tax Assets (Net) 8 54.14 41.14

Non Current Tax Assets (Net) 14 149.63 78.84

Other Non Current Assets 15 233.10 223.92

Total Non - Current Assets 3,110.71 3,091.47

Current Assets

Inventories 9 787.78 526.80

Financial Assets

Other Investments 4.2 1.07 15.03

Trade Receivables 10 2,384.27 2,520.68

Cash and Cash Equivalents 11.1 235.39 169.66

Bank balances other than above 11.2 323.15 268.96

Loans 12 210.32 171.61

Other Financial Assets 13 285.59 146.41

Current Tax Assets (Net) 14.1 74.22 100.31

Other Current Assets 15.1 6,414.11 5,687.72

Total Current Assets 10,715.90 9,607.18

Total Assets 13,826.61 12,698.65

64 NCC LIMITED
BALANCE SHEET AS AT MARCH 31, 2022 (contd.) (` in crores)

AS AT AS AT
Note
MARCH 31, 2022 MARCH 31, 2021
EQUITY AND LIABILITIES
Equity
Equity Share Capital 16 121.97 121.97
Other Equity 17 5,681.20 5,242.69
Total Equity 5,803.17 5,364.66
Liabilities
Non Current Liabilities
Financial Liabilities
Borrowings 18 82.03 98.60
Trade Payables 19 19.91 22.96
Provisions 20 52.52 45.08
Total Non Current Liabilities 154.46 166.64
Current Liabilities
Financial Liabilities
Borrowings 21 1,102.05 1,690.32
Trade Payables 22
Total outstanding dues of micro and small enterprises 34.03 49.84
Total outstanding dues of creditors other than micro
4,226.63 3,641.37
and small enterprises
Other Financial Liabilities 23 87.90 73.88
Provisions 24 64.33 57.14
Other Current Liabilities 25 2,354.04 1,654.80
Total Current Liabilities 7,868.98 7,167.35
Total Equity and Liabilities 13,826.61 12,698.65

The accompanying notes are an integral part of the financial statements

In terms of our report attached

For S.R. BATLIBOI & ASSOCIATES LLP For and on behalf of the Board
ICAI Firm Registration No. 101049W/E300004
CHARTERED ACCOUNTANTS

per NAVNEET RAI KABRA K. KRISHNA RAO A.A.V. RANGA RAJU

Partner E.V.P (F&A) / CFO Managing Director / CEO
Membership No. 102328 (DIN No: 00019161)

M.V. SRINIVASA MURTHY A.G.K. RAJU

Company Secy. & E.V.P (Legal) Executive Director
(DIN No: 00019100)
Hyderabad, May 11, 2022

Annual Report 2021-22 65

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2022
(` in crores)
YEAR ENDED YEAR ENDED
Note
MARCH 31, 2022 MARCH 31, 2021
INCOME
Revenue from Operations 26 9,930.03 7,256.02
Other Income 27 108.21 115.60
Total Income 10,038.24 7,371.62
EXPENSES
Cost of Materials Consumed 28 3,393.62 2,383.17
Construction Expenses 29 1,177.82 876.70
Sub-Contractors Work Bills 3,700.78 2,604.98
Employee Benefits Expense 30 429.13 349.62
Finance Costs 31 459.60 457.81
Depreciation and amortisation expenses (Refer note 3, 3.1 and 3.2) 182.34 174.09
Other Expenses 32 232.57 186.18
Total Expenses 9,575.86 7,032.55
Profit Before Exceptional Items and Tax 462.38 339.07
Exceptional Items (Net) 40 145.64 -
Profit Before Tax 608.02 339.07
Tax Expense 33
Current Tax (including earlier year taxation) 130.21 7.37
Deferred Tax (12.31) 70.21
117.90 77.58
Profit for the year 490.12 261.49
Other comprehensive income / (loss)
Items that will not be reclassified to profit or loss
Remeasurement gains / (losses) of the defined benefit plans (2.74) (12.05)
Income tax effect on the above 0.69 0.82
Items that may be reclassified to profit or loss
Exchange differences in translating the financial statements of
(0.77) (0.44)
foreign operations
Other comprehensive income / (loss) for the year (net of taxes) (2.82) (11.67)
Total comprehensive income for the year 487.30 249.82
Earnings per share of face value of ` 2 each.
Basic - ` 37 8.04 4.29
Diluted - ` 37 7.98 4.28
The accompanying notes are an integral part of the financial statements
In terms of our report attached

For S.R. BATLIBOI & ASSOCIATES LLP For and on behalf of the Board
ICAI Firm Registration No. 101049W/E300004
CHARTERED ACCOUNTANTS

per NAVNEET RAI KABRA K. KRISHNA RAO A.A.V. RANGA RAJU

Partner E.V.P (F&A) / CFO Managing Director / CEO
Membership No. 102328 (DIN No: 00019161)

M.V. SRINIVASA MURTHY A.G.K. RAJU

Company Secy. & E.V.P (Legal) Executive Director
(DIN No: 00019100)
Hyderabad, May 11, 2022

66 NCC LIMITED
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31, 2022
A. Equity share capital

Number of shares Amount (` in crores)

Balance as at April 01, 2020 609,846,588 121.97
Add: Issue of Share Capital
Balance as at March 31, 2021 609,846,588 121.97
Add: Issue of Share Capital - -
Balance as at March 31, 2022 609,846,588 121.97

B. Other equity (` in crores)

Items of Other Comprehensive Income
Reserves and Surplus
/ (Loss)
Money received Other items Exchange differences Total
Capital Securities against share General Retained of other on translating
Reserve Premium warrants (Refer Reserve Earnings comprehensive financial statement of
note 16.5) income a foreign operations
Balance at April 01, 2020 5.44 2,639.62 - 922.00 1,435.83 (15.90) (3.32) 4,983.67
Effect of merger of Vaidehi Avenues Limited 1.55 - - - (6.69) - - (5.14)
and Aster Rail Private Limited
As at April 01, 2020 (restated) 6.99 2,639.62 - 922.00 1,429.14 (15.90) (3.32) 4,978.53
Profit for the year - - - - 261.49 - - 261.49
Other comprehensive income / (loss) for
- - - - - (11.23) (0.44) (11.67)
the year, net of tax
Total comprehensive income for the year - - - - 261.49 (11.23) (0.44) 249.82
Proceeds received against share warrants - - 26.55 - - - - 26.55
Dividend (Inclusive of Tax on Dividend) - - - - (12.21) - - (12.21)
Transfer to General Reserve - - - 200.00 - - - 200.00
Transfer from Retained Earnings - - - - (200.00) - - (200.00)
Balance at April 01, 2021 6.99 2,639.62 26.55 1,122.00 1,478.42 (27.13) (3.76) 5,242.69
Profit for the year - - - - 490.12 - - 490.12
Other comprehensive income / (loss) for
- - - - - (2.05) (0.77) (2.82)
the year, net of tax
Total comprehensive income for the year - - - - 490.12 (2.05) (0.77) 487.30
Dividend (Inclusive of Tax on Dividend) - - - - (48.79) - - (48.79)
Transfer to General Reserve - - - 250.00 - - - 250.00
Transfer from Retained Earnings - - - - (250.00) - - (250.00)
Balance at March 31, 2022 6.99 2,639.62 26.55 1,372.00 1,669.75 (29.18) (4.53) 5,681.20
The accompanying notes are an integral part of the financial statements
In terms of our report attached

For S.R. BATLIBOI & ASSOCIATES LLP For and on behalf of the Board
ICAI Firm Registration No. 101049W/E300004
CHARTERED ACCOUNTANTS

per NAVNEET RAI KABRA K. KRISHNA RAO A.A.V. RANGA RAJU

Partner E.V.P (F&A) / CFO Managing Director / CEO
Membership No. 102328 (DIN No: 00019161)

M.V. SRINIVASA MURTHY A.G.K. RAJU

Company Secy. & E.V.P (Legal) Executive Director
(DIN No: 00019100)
Hyderabad, May 11, 2022

Annual Report 2021-22 67

CASH FLOW STATEMENT for the year ended March 31, 2022
(` in crores)

Year Ended Year Ended

March 31, 2022 March 31, 2021
A. Cash flows from operating activities
Profit before tax 608.02 339.07
Adjustments for:
Depreciation and amortisation expenses 182.34 174.09
Profit on sale of Property, Plant and Equipment and Investment Property (2.32) (19.37)
Finance costs 459.60 457.81
Interest income (60.42) (78.07)
Dividend income (11.68) -
Trade Receivables / Advances written off 2.00 3.40
Provision for doubtful trade receivables / advances / others 13.00 19.30
Expected credit loss for Unbilled revenue 30.01 10.36
Exceptional items (net) (145.64) -
Rental income from investment properties (1.62) (4.10)
465.27 563.42
Operating profit before working capital changes 1,073.29 902.49
Changes in working capital:
Adjustments for (Increase) / Decrease in operating assets:
In Inventories (260.98) (11.97)
In Trade receivables 154.27 (86.34)
In Other financial assets (7.28) (16.88)
In Other assets (767.60) 96.68
Adjustments for Increase / (Decrease) in operating liabilities:
In Trade payables 566.41 (269.37)
In Other current liabilities 699.23 109.15
In Provisions 11.89 4.36
395.94 (174.37)
Cash generated from operations 1,469.23 728.12
Net income tax (paid) (173.25) (18.39)
Net cash flows from operating activities (A) 1,295.98 709.73

68 NCC LIMITED
CASH FLOW STATEMENT for the year ended March 31, 2022 (contd.)
(` in crores)

Year Ended Year Ended

March 31, 2022 March 31, 2021
B. Cash flows from investing activities
Capital expenditure for property, plant and equipment, Investment property,
(215.33) (191.53)
Intangible Assets including Capital Work in Progress
Proceeds from disposal of Property, Plant and Equipment and Investment Property 47.58 39.92
Movement in Margin money deposits / other deposits (122.59) (78.63)
Proceeds from sale of a subsidiary 47.50 -
Sale / (Purchase) of non current and current investments - Associates / Others 16.14 (15.03)
Loans given to subsidiaries, associates and others (146.51) (37.94)
Loans realised from subsidiaries, associates and others 167.02 279.29
Interest received 61.83 63.70
Dividend received from subsidiary 11.68 -
Rental income from investment properties 1.62 4.10
Net cash flows (used) / from investing activities (B) (131.06) 63.88
C. Cash flows from financing activities
Purchase of non current of investments - Subsidiaries - (120.55)
Proceeds received against share warrants - 26.55
Proceeds from long term borrowings 104.53 260.98
Repayment of long term borrowings (289.19) (332.21)
Short term borrowings borrowed / repaid (net) (420.18) (49.95)
Finance costs paid (445.56) (461.95)
Dividend and Dividend Tax paid (48.79) (12.21)
Net cash flows (used) in financing activities (C) (1,099.19) (689.34)
Net Increase in Cash and cash equivalents (A+B+C) 65.73 84.27
Cash and cash equivalents at the beginning of the year 169.66 85.39
Cash and cash equivalents at the end of the year 235.39 169.66
Reconciliation of Cash and cash equivalents with the Balance Sheet:
Cash and cash equivalents 235.39 169.66
Cash and cash equivalents at the end of the year 235.39 169.66
Note: Figures in brackets represents cash outflows.
The accompanying notes are an integral part of the financial statements
In terms of our report attached

For S.R. BATLIBOI & ASSOCIATES LLP For and on behalf of the Board
ICAI Firm Registration No. 101049W/E300004
CHARTERED ACCOUNTANTS

per NAVNEET RAI KABRA K. KRISHNA RAO A.A.V. RANGA RAJU

Partner E.V.P (F&A) / CFO Managing Director / CEO
Membership No. 102328 (DIN No: 00019161)

M.V. SRINIVASA MURTHY A.G.K. RAJU

Company Secy. & E.V.P (Legal) Executive Director
Hyderabad, May 11, 2022 (DIN No: 00019100)

Annual Report 2021-22 69

Notes forming part of the financial statements
1 General Information: In addition, for financial reporting purposes, fair value
measurements are categorised into Level 1, 2 or 3 based on
NCC Limited, (“NCCL”, / “the Company”) was established
the degree to which the inputs to the fair value measurements
as a Partnership firm in 1978, which was subsequently
are observable and the significance of the inputs to the fair
converted into a Limited Company in 1990. The shares of
value measurement in its entirety, which are described as
the Company were listed on the stock exchanges in India
follows:
during 1992 pursuant to the Initial Public Offer of equity
shares. The registered office of the Company is located at • Level 1 inputs are quoted prices (unadjusted) in active
NCC House, Madhapur, Hyderabad - 500 081, Telangana, markets for identical assets or liabilities that the entity
India. The Company is engaged in the infrastructure sector, can access at the measurement date;
primarily in the construction of industrial and commercial
• Level 2 inputs are other than quoted prices included
buildings, housing project, roads, bridges and flyovers, water
within Level 1, that are observable for the asset or
supply and environment projects, mining, power transmission
liability, either directly or indirectly; and
lines, irrigation and hydrothermal power projects, real estate
development, etc. • Level 3 inputs are unobservable inputs for the asset or
liability.
2 Significant accounting policies:
2.3 Interest in Joint Operations:
2.1 Statement of compliance:
A joint operation is a joint arrangement where by the parties
These financial statements have been prepared in accordance
that have joint control of the arrangement have rights to
with Indian Accounting Standards (Ind AS) notified under the
the assets and obligations for the liabilities, relating to the
Companies (Indian Accounting Standards) Rules, 2015 (as
arrangement. Joint control is the contractually agreed sharing
amended from time to time).
of control of an arrangement, which exists only when decisions
2.2 Basis of preparation and presentation: about the relevant activities require unanimous consent of the
parties sharing control.
These financial statements are prepared in accordance with
Indian Accounting Standards (Ind AS) under the historical cost When a company undertakes its activities under joint
convention on the accrual basis except for certain financial operations, the company as a joint operator recognises in
instruments which are measured at fair values, the provisions relation to its interest in a joint operation:
of the Companies Act, 2013 (‘Act’), including presentation
1. its assets, including its share of any assets held jointly,
requirements of Division II of Schedule III to the Companies
Act, 2013 (Ind AS Compliant Schedule III), as applicable to 2. its liabilities, including its share of any liabilities incurred
the standalone financial statements (to the extent notified) jointly,
and guidelines issued by the Securities and Exchange Board 3. its revenue, including its share of any revenue arising
of India (SEBI). The Ind AS are prescribed under Section jointly.
133 of the Act read with Rule 3 of the Companies (Indian 4. its expenses, including its share of any expenses incurred
Accounting Standards) Rules, 2015 (as amended from time jointly.
to time). Historical cost is generally based on the fair value of
the consideration given in exchange for goods and services. The Company accounts for the assets, liabilities, revenues,
and expenses relating to its interest in a joint operation in
Fair value is the price that would be received to sell an asset accordance with the Ind AS applicable to the particular assets,
or paid to transfer a liability in an orderly transaction between liabilities, revenues, and expenses.
market participants at the measurement date, regardless of
whether that price is directly observable or estimated using 2.4 Revenue Recognition:
another valuation technique. In estimating the fair value of Revenue from contracts with customers is recognised when
an asset or a liability, the Company takes into account the control of the goods or services are transferred to the
characteristics of the asset or liability if market participants customer at an amount that reflects the consideration to
would take those characteristics into account when pricing which the Company expects to be entitled in exchange for
the asset or liability at the measurement date. Fair value for those goods or services.
measurement and/ or disclosure purposes in these financial
statements is determined on such a basis and measurements A single performance obligation is identified in the
that have some similarities to fair value but are not fair value, construction projects that the Company engages in, owing
such as a net realisable value in Ind AS 2 or value in use in Ind to the high degree of integration and customisation of the
AS 36. various goods and services to provide a combined output
which is transferred to the customer over time and not at a

70 NCC LIMITED
Notes forming part of the financial statements
specific point in time, since the entity’s performance creates goods or services to which the asset relates.
or enhances as asset that the customer controls as the asset is
Provision for future losses
created or enhanced.
Provision for future losses are recognised as soon as it
With respect to the method for recognising revenue over time
becomes evident that the total costs expected to be incurred
(i.e. the method for measuring progress towards complete
in a contract exceed the total expected revenue from that
satisfaction of a performance obligation), the Company has
contract.
established certain criteria that are applied consistently for
similar performance obligations. In this regard, the method Contract balances
chosen by the Company to measure the value of goods or
i) Contract assets
services for which control is transferred to the customer over
time is the output method based on surveys of performance A contract asset is recognised for amount of work done
completed to date (or measured unit of work), according but pending billing/acknowledgement by customer or
to which revenue is recognised corresponding to the units amounts billed but payment is due on completion of
of work performed and on the basis of the price allocated future performance obligation, since it is conditionally
thereto. In cases where the work performed till the reporting receivable. The provision for Expected Credit Loss on
date has not reached the milestone specified in the contract, contract assets is made on the same basis as financial
the Company recognises revenue only to the extent that it assets as stated in note no. 2.19.
is highly probable that the customer will acknowledge the
same. This method is applied as the progress of the work ii) Trade receivables
performed can be measured during its performance on the A receivable represents the Company’s right to an
basis of the contract. Under this method, on a regular basis, amount of consideration that is unconditional (i.e., only
the work completed under each contract is measured and the the passage of time is required before payment of the
corresponding output is recognised as revenue. consideration is due). Refer to accounting policies of
Contract modifications are accounted for when additions, financial assets in section Financial instruments – initial
deletions or changes are approved either to the scope or recognition and subsequent measurement.
price or both. Goods/services added that are not distinct iii) Contract liabilities
are accounted for on a cumulative catch up basis. Goods /
services those that are distinct are accounted for prospectively A contract liability is the obligation to transfer goods
as a separate contract, if the additional goods/services are or services to a customer for which the Company has
priced at the standalone selling price else as a termination received advance payments from the customer. If a
of the existing contract and creation of a new contract . In customer pays consideration before the Company
cases where the additional work has been approved but the transfers goods or services to the customer, a contract
corresponding change in price has not been determined, the liability is recognised when the consideration received.
recognition of revenue is made for an amount with respect to 2.5 Other income:
which it is highly probable that a significant reversal will not
occur. a) Dividend Income : Dividend income from Investments
is recognised when the shareholder’s right to receive
If the consideration promised in a contract includes a variable payment has been established.
amount, this amount is recognised only to the extent that it
is highly probable that a significant reversal in the amount b) Interest income : Interest income from a financial asset
recognised will not occur. is recognised when it is probable that the economic
benefits will flow to the company and the amount of
Contract costs income can be measured reliably. Interest income is
Costs related to work performed in projects are recognised on accrued on a time basis, by reference to the principal
an accrual basis. Costs incurred in connection with the work outstanding and at the effective interest rate applicable,
performed are recognised as an expense. which is the rate that exactly discounts estimated future
cash receipts through the expected life of the financial
Cost to fulfill the contract asset to that asset’s net carrying amount on initial
The Company recognises asset from the cost incurred to recognition.
fulfill the contract such as set up and mobilisation costs and c) Rental income : Rental income from operating leases is
amortises it over the contract period on a systematic basis generally recognised over the term of the relevant lease.
that is consistent with the transfer to the customer of the

Annual Report 2021-22 71

Notes forming part of the financial statements
2.6 Foreign exchange translation and foreign currency Payment to defined contribution retirement benefit plans are
transactions: recognised as an expense when employees have rendered
service entitling them to the contributions.
The functional currency of the Company is the Indian rupee.
These financial statements are presented in Indian rupees Superannuation
(rounded off to crores)
The Company’s contribution to superannuation fund is
Foreign currency transactions are accounted at the exchange considered as defined contribution plans and are charged as
rates prevailing on the date of transactions. Gains and losses an expense based on the amount of contribution required to
resulting from settlement of such transactions are recognised be made and when services are rendered by the employees.
in the Statement of Profit and Loss.
Provident Fund
Monetary assets and liabilities related to foreign currency
Contribution to Provident fund (a defined contribution
transactions remaining unsettled at the end of the year are
plan) made to Regional Provident Fund Commissioner are
translated at year end rates. The difference in translation of
recognised as expense.
monetary assets and liabilities and realised gains and losses
on foreign exchange transactions are recognised in the Defined Benefit Plans
Statement of Profit and Loss.
For defined benefit retirement benefit plans, the cost of
The exchange difference on restatement of long term providing benefits is determined using the projected unit credit
receivables / payables from / to foreign operations that method, with actuarial valuations being carried out at the end
are considered as net investments in such operation are of each annual reporting period. Remeasurement, comprising
recognised in the statement of profit and loss in the separate actuarial gains and losses, the effect of the changes to the asset
financial statements of the reporting entity or the individual ceiling ( if applicable) and the return on plan assets (excluding
financial statements of the foreign operation, as appropriate. net interest), is reflected immediately in the balance sheet with
a charge or credit recognised in other comprehensive income
Foreign branches functional currency is other than reporting
in the period in which they occur. Remeasurement recognised
currency of its parent and foreign branch financial statements
in other comprehensive income is reflected immediately in
are translated into reporting currency of its parent using the
retained earnings and is not reclassified to profit or loss. Past
following procedures.
service cost is recognised in Statement of Profit and Loss in
Assets and Liabilities (both monetary and non-monetary) are the period of a plan amendment. Net interest is calculated by
translated at the closing rate at the year end. Income and applying the discount rate at the beginning of the period to
expenses are translated at the monthly average rate at the end the net defined benefit liability or asset.
of the respective month. All resulting exchange differences
2.8.2 Compensated Absences:
are recognised in other comprehensive income till the disposal
of the net investment. The employees are entitled to accumulate leave subject to
certain limits, for future encashment, as per the policy of the
2.7 Borrowing Costs:
Company.
Borrowing costs include interest and exchange differences
The liability towards such unutilized leave as at the end of
arising from foreign currency borrowings to the extent
each balance sheet date is determined based on independent
they are regarded as an adjustment to the interest cost.
actuarial valuation and recognised in the Statement of Profit
Costs in connection with the borrowing of funds to the
and Loss.
extent not directly related to the acquisition of qualifying
assets are charged to the Statement of Profit and Loss In respect of employees of overseas branch, end of
over the tenure of the loan. Borrowing costs, allocated to service benefit is accrued in accordance with the terms of
and utilised for qualifying assets, pertaining to the period employment. Employees entitlements to annual leave and
from commencement of activities relating to construction gratuity are recognised on actual basis and charged to the
/ development of the qualifying asset upto the date of Statement of Profit and Loss.
capitalisation of such asset are included in the cost of the
2.9 Taxation:
assets. Capitalisation of borrowing costs is suspended and
charged to the Statement of Profit and Loss during extended Income tax expense represents sum of the tax currently
periods when active development activity on the qualifying payable and deferred tax
assets is interrupted.
2.9.1 Current Tax: Current tax is the amount of tax payable on
2.8 Employee Benefits: the taxable income for the year as determined in accordance
with the applicable tax rates and the provisions of the Income-
2.8.1 Retirement benefit costs and termination benefits:

72 NCC LIMITED
Notes forming part of the financial statements
tax Act, 1961 and other applicable tax laws that have been tax returns with respect to situations in which applicable
enacted or substantively enacted by the end of the reporting tax regulations are subject to interpretation and establishes
period in the countries where the Company operates and provisions where appropriate.
generates taxable income.
2.10 Property, plant and equipment:
2.9.2 Deferred tax:
Property, plant and equipment (PPE) are carried at cost less
Deferred tax is recognised on temporary differences between accumulated depreciation and impairment losses, if any. The
the carrying amounts of assets and liabilities in the financial cost of Property, plant and equipment comprises of purchase
statements and the corresponding tax bases used in the price, applicable duties and taxes, any directly attributable
computation of taxable profit. Deferred tax liabilities are expenditure on making the asset ready for its intended
generally recognised for all taxable temporary differences. use, other incidental expenses and interest on borrowings
Deferred tax assets are generally recognised for all deductible attributable to acquisition/construction of qualifying PPE, that
temporary differences to the extent that it is probable that takes a substantial period of time to get ready for its intended
taxable profits will be available against which those deductible use, upto the date the asset is ready for its intended use. The
temporary differences can be utilised. Such deferred tax assets initial estimate of the costs of dismantling and removing the
and liabilities are not recognised if the temporary differences item and restoring the site on which it is located is required to
arise from the initial recognition (other than in a business be included in the cost of the respective item of property plant
combination) of assets and liabilities in a transaction that and equipment and Cost of major inspections is recognised
affects neither the taxable profit nor the accounting profit. in the carrying amount of property, plant and equipment as
In addition, deferred tax liabilities are not recognised if the a replacement, if recognition criteria are satisfied and any
temporary difference arises from the initial recognition of remaining carrying amount of the cost of previous inspection
goodwill. is derecognised. For transition to Ind AS, the Company has
elected to adopt as deemed cost, the carrying value of PPE
The carrying amount of deferred tax assets is reviewed at the
measured as per previous GAAP, accumulated depreciation
end of each reporting period and reduced to the extent that
and cumulative impairment on the transition date of April 1,
it is no longer probable that sufficient taxable profits will be
2015.
available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax PPE retired from active use and held for sale are stated at the
rates that are expected to apply in the period in which the lower of their net book value and net realisable value and are
liability is settled or the asset realised, based on tax rates (and disclosed separately.
tax laws) that have been enacted or substantively enacted by
An item of PPE is derecognised upon disposal or when no
the end of the reporting period.
future economic benefits are expected to arise from the
Minimum alternate tax (MAT) paid in a year is charged to the continued use of the asset. Any gain or loss arising on the
statement of profit and loss as current tax for the year. The disposal or retirement of an item of property, plant and
deferred tax asset is recognised for MAT credit available only equipment is determined as the difference between the
to the extent that it is probable that the concerned company sale proceeds and the carrying amount of the asset and is
will pay normal income tax during the specified period, i.e., the recognised in statement of profit and loss.
period for which MAT credit is allowed to be carried forward.
2.11 Depreciation and Amortisation:
In the year in which the company recognises MAT credit as
an asset, it is created by way of credit to the statement of Depreciable amount for assets is the cost of an asset, or other
profit and loss and shown as part of deferred tax asset. The amount substituted for cost less its estimated residual value.
company reviews the “MAT credit entitlement” asset at each
Depreciation on Property, Plant and equipment and investment
reporting date and writes down the asset to the extent that
property have been provided on the straight line method as per
it is no longer probable that it will pay normal tax during the
the useful life prescribed in Schedule II to the Companies Act,
specified period.
2013 except in respect of construction accessories (6 years),
2.9.3 Current and deferred tax for the year: some of the mining equipments such as Excavators upto 3.1
cum capacity (7 years), Tippers (6 years), Dozers & Motor
Current and deferred taxes are recognised in Statement of
Graders (8 years) working in Mining projects, in whose case
Profit and Loss, except when they relate to items that are
the life of the assets has been assessed based on technical
recognised in other comprehensive income or directly in
assessment, taking into account the nature of asset, the
equity, in which case, the current and deferred tax are also
estimated usage of the asset, the operating conditions of the
recognised in other comprehensive income or directly in
asset, past history of replacement, anticipated technological
equity respectively.
changes, maintenance, etc.
Management periodically evaluates positions taken in the

Annual Report 2021-22 73

Notes forming part of the financial statements
Depreciation on Property, Plant and equipment in joint venture development expenditure, administrative expenses and
operations provided on Straight Line Method/Written Down borrowing costs.
Value Method based on useful life prescribed in Schedule II of
2.15 Investments in Subsidiaries, Associates and Joint
the Companies Act, 2013.
ventures: On initial recognition, these investments are
Intangible Assets are amortised, on straight line method recognised at fair value plus any directly attributable
based on the useful life as assessed by the Management. transaction cost. Subsequently, they are measured at cost.
The amortisation period and the amortisation method for an
2.16 Provisions, Contingent Liabilities and Contingent Assets:
intangible asset is reviewed every year.
The Company recognises provisions when there is present
2.12 Investment property: Investment properties are properties
obligation as a result of past event and it is probable that
held to earn rentals and/or for capital appreciation (including
there will be an outflow of resources and reliable estimate
property under construction for such purposes). Investment
can be made of the amount of the obligation. A disclosure for
properties are measured initially at cost, including transaction
Contingent liabilities is made in the notes on accounts when
costs. Subsequent to initial recognition, investment properties
there is a possible obligation or a present obligation that
are measured in accordance with the Ind AS16’s requirement
may, but probably will not, require an outflow of resources.
for cost model.
Contingent assets are disclosed in the financial statements
An investment property is derecognised upon disposal or when flow of economic benefits is probable.
when the investment property is permanently withdrawn
2.17 Financial instruments:
from use and no further economic benefits expected from
disposal. Any gain or loss arising on derecognition of the Financial assets and financial liabilities are recognised when
property is included in Statement of Profit and Loss in the the Company becomes a party to the contractual provisions
period in which the property is derecognised. of the instrument.
For transition to Ind AS, the Company has elected to adopt Financial assets and financial liabilities are initially measured at
as deemed cost, the carrying value of Investment property fair value. Transaction costs that are directly attributable to the
measured as per previous GAAP, accumulated depreciation acquisition or issue of financial assets and financial liabilities
and cumulative impairment on the transition date of April 01, (other than financial assets and financial liabilities at fair
2015. value through profit or loss) are added to or deducted from
the fair value of the financial assets or financial liabilities, as
2.13 Intangible Assets:
appropriate, on initial recognition. Transaction costs directly
Identifiable intangible assets are recognised when the attributable to the acquisition of financial assets or financial
Company controls the asset, it is probable that future liabilities at fair value through profit or loss are recognised
economic benefits attributed to the asset will flow to the immediately in statement of profit and loss.
Company and the cost of the asset can be reliably measured.
2.18 Financial assets:
At initial recognition, the separately acquired intangible
assets are recognised at cost. Following initial recognition, Financial asset is
the intangible assets are carried at cost less any accumulated 1. Cash / Equity Instrument of another Entity,
amortization and accumulated impairment losses, if any. The
2. Contractual right to –
estimated useful life and amortization method reviewed at the
end of each reporting period, with the effect of any changes a) receive Cash / another Financial Asset from another
in estimate being accounted for on a prospective basis. Entity, or
b) exchange Financial Assets or Financial Liabilities
2.14 Inventories:
with another Entity under conditions that are
Raw Materials: potentially favourable to the Entity.
Raw Materials, construction materials and stores & spares 2.19 Subsequent measurement of the financial assets:
are valued at weighted average cost or net realisable value, (i) Financial assets carried at amortised cost
whichever is lower. Cost includes all charges in bringing the
materials to the place of usage, excluding refundable duties A financial asset is subsequently measured at amortised
and taxes. cost if it is held within a business model whose objective
is to hold the asset in order to collect contractual cash
Properties Under Development: flows and the contractual terms of the financial asset
Properties under development are valued at cost or net give rise on specified dates to cash flows that are solely
realisable value, whichever is lower. Cost comprises all direct payments of principal and interest on the principal
amount outstanding.

74 NCC LIMITED
Notes forming part of the financial statements
(ii) Financial assets at fair value through other 2.22 Derecognition of financial instruments:
comprehensive income
The Company derecognises a financial asset when the
A financial asset is subsequently measured at fair value contractual rights to the cash flows from the financial asset
through other comprehensive income if it is held within expire or it transfers the financial asset and the transfer
a business model whose objective is achieved by both qualifies for derecognition under Ind AS 109. A financial
collecting contractual cash flows and selling financial liability (or a part of a financial liability) is derecognised from
assets and the contractual terms of the financial asset the Company’s balance sheet when the obligation specified in
give rise on specified dates to cash flows that are solely the contract is discharged or cancelled or expires.
payments of principal and interest on the principal
amount outstanding. Further, in case where the 2.23 Fair value of financial instruments:
company has made an irrevocable selection based on its In determining the fair value of its financial instruments, the
business model, for its investments which are classified Company uses a variety of methods and assumptions that
as equity instruments, the subsequent changes in fair are based on market conditions and risks existing at each
value are recognised in other comprehensive income. reporting date. The methods used to determine fair value
(iii) Financial assets at fair value through profit or loss include discounted cash flow analysis, available quoted
market prices and dealer quotes. All methods of assessing
A financial asset which is not classified in any of the fair value result in general approximation of value, and such
above categories are subsequently fair valued through value may or may not be realized.
profit or loss.
2.24 Impairment of Assets:
(iv) The Company recognises loss allowances using the
expected credit loss (ECL) model for the financial assets Intangible assets and property, plant and equipment:
which are not fair valued through profit or loss. Loss Intangible assets and property, plant and equipment are
allowance for trade receivables with no significant evaluated for recoverability whenever events or changes in
financing component is measured at an amount equal circumstances indicate that their carrying amounts may not
to lifetime ECL. For all other financial assets, expected be recoverable. For the purpose of impairment testing, the
credit losses are measured at an amount equal to the recoverable amount (i.e. the higher of the fair value less cost
12-month ECL, unless there has been a significant to sell and the value-in-use) is determined on an individual
increase in credit risk from initial recognition in which asset basis unless the asset does not generate cash flows that
case those are measured at lifetime ECL. The amount are largely independent of those from other assets. In such
of expected credit losses (or reversal) that is required to cases, the recoverable amount is determined for the Cash
adjust the loss allowance at the reporting date to the Generating Unit (CGU) to which the asset belongs.
amount that is required to be recognised is recognised If such assets are considered to be impaired, the impairment to
as an impairment gain or loss in statement of profit and be recognised in the statement of profit and loss is measured
loss. by the amount by which the carrying value of the assets
2.20 Financial liabilities: exceeds the estimated recoverable amount of the asset. An
impairment loss is reversed in the statement of profit and loss
Financial liability is
if there has been a change in the estimates used to determine
Contractual Obligation to the recoverable amount. The carrying amount of the asset
is increased to its revised recoverable amount, provided that
a) deliver Cash or another Financial Asset to another Entity,
this amount does not exceed the carrying amount that would
or
have been determined (net of any accumulated amortization
b) exchange Financial Assets or Financial Liabilities with or depreciation) had no impairment loss been recognised for
another Entity under conditions that are potentially the asset in prior years.
unfavourable to the Entity.
2.25 Fair value measurement:
The company’s financial liabilities include trade and other
payables, loans and borrowings including bank overdrafts. The Company measures certain financial instruments at fair
value at each reporting date. Fair value is the price that would
2.21 Subsequent measurement of the financial liabilities: be received on sale of an asset or paid to transfer a liability
Financial liabilities are subsequently carried at amortized in an orderly transaction between market participants at the
cost using the effective interest rate method. For trade and measurement date. The fair value measurement is based
other payables maturing within one year from the balance on the presumption that the transaction to sell the asset or
sheet date, the carrying amounts approximate the fair value transfer the liability takes place either:
due to the short maturity of these instruments. a. In the principal market for the asset or liability, or

Annual Report 2021-22 75

Notes forming part of the financial statements
b. In the absence of principal market, in the most of dilutive potential equity shares, attributable to the Equity
advantageous market for the asset or liability. Shareholders by the weighted average number of the equity
shares and dilutive potential equity shares outstanding during
The fair value of an asset or a liability is measured using the
the year except where the results are anti-dilutive.
assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in 2.28 Cash Flow Statement:
their economic best interest.
Cash flows are reported using the indirect method, whereby
The Company uses valuation techniques that are appropriate profit / (loss) before extraordinary items and tax is adjusted
in the circumstances and for which sufficient data are for the effects of transactions of non-cash nature and
available to measure fair value, maximising the use of relevant any deferrals or accruals of past or future cash receipts or
observable inputs and minimising the use of unobservable payments. The cash flows from operating, investing and
inputs. financing activities of the Company are segregated based on
2.26 Leases : the available information.

The Company assesses at contract inception whether a Cash comprises cash on hand and demand deposits with banks.
contract is, or contains, a lease. That is, if the contract Cash equivalents are short-term balances (with an original
conveys the right to control the use of an identified asset for maturity of three months or less from the date of acquisition),
a period of time in exchange for consideration. At the date of highly liquid investments that are readily convertible into
commencement of the lease, the Company recognises a right- known amounts of cash and which are subject to insignificant
of-use asset (“ROU”) and a corresponding lease liability for all risk of changes in value.
lease arrangements in which it is a lessee, except short-term 2.29 Critical judgements in applying accounting policies:
leases and low value leases. The following are the critical judgements, apart from those
Ind AS 116 requires lessees to determine the lease term as involving estimations, that the directors have made in the
the non-cancellable period of a lease adjusted with any option process of applying the Company’s accounting policies
to extend or terminate the lease, if the use of such option and that have the most significant effect on the amounts
is reasonably certain. The Company makes an assessment recognised in the financial statement.
on the expected lease term on a lease-by-lease basis and (i) Revenue recognition: The Company uses the stage of
thereby assesses whether it is reasonably certain that any completion method using survey method and /or on
options to extend or terminate the contract will be exercised. completion of physical proportion of the contract work
In evaluating the lease term, the Company considers factors to measure progress towards completion in respect of
such as any significant leasehold improvements undertaken construction contracts. This method is followed when
over the lease term, costs relating to the termination of the reasonably dependable estimates of costs applicable
lease and the importance of the underlying asset to the to various elements of the contract can be made. Key
Company’s operations taking into account the location of the factors that are reviewed in estimating the future costs
underlying asset and the availability of suitable alternatives. to complete include estimates of future labour costs and
The Company applies the short-term lease recognition productivity efficiencies. Because the financial reporting
exemption to its short-term leases of premises and construction of these contracts depends on estimates that are
equipment (i.e., those leases that have a lease term of 12 assessed continually during the term of these contracts,
months or less from the commencement date or the adoption recognised revenue and profit are subject to revisions as
of Ind AS 116 and do not contain a purchase option). Lease the contract progresses to completion. When estimates
payments on short-term leases and leases of low-value assets indicate that a loss will be incurred, the loss is provided
are recognised as expense on a straight-line basis over the for in the period in which the loss becomes probable.
lease term.
(ii) Key sources of estimation uncertainty: The following are
2.27 Earnings Per Share : the key assumptions concerning the future , and other
key sources of estimation uncertainty at the end of
Basic earnings per equity share is computed by dividing the
the reporting period that may have a significant risk of
net profit for the year attributable to the Equity Shareholders
causing a material adjustment to the carrying amounts
by the weighted average number of equity shares outstanding
of assets and liabilities within the next financial year.
during the year. Diluted earnings per share is computed by
dividing the net profit for the year, adjusted for the effects

76 NCC LIMITED
Notes forming part of the financial statements
Items Items
requiring requiring
Assumption and estimation uncertainty Assumption and estimation uncertainty
significant significant
estimate estimate
The Company reviews the estimated useful The Company is subjected to VAT assessments
lives, depreciation method and residual value of in various states where projects were executed.
Review of
property plant and equipment at the end of each Basing on applicable VAT rules of various states
property, plant
reporting period. During the current year, there the Company estimated the VAT liability and
and equipment Indirect tax
has been no change in life, depreciation method provided in the book of accounts. The VAT
litigations
and residual value considered for the assets. assessments in different states are at different
Some of the Company’s assets and liabilities stages and on some of the assessment orders, the
are measured at fair value for the financial Company made appeals and they are at various
reporting purposes. The valuation committee tribunals and courts.
which is headed by the Chief Financial Officer 2.30 Exceptional Items:
of the Company determines the appropriate
valuation techniques and inputs for fair value Exceptional Items represents the nature of transactions which
measurements. are not in recurring nature during the ordinary course of
business but lead to increase / decrease in profit / loss for the
Fair value In estimating the fair value of an asset or a liability, year.
measurements the Company uses market-observable data to
the extent it is available. Where Level 1inputs 2.31 Operating cycle:
and valuation
processes are not available, the Company engages third The Company adopts operating cycle based on the project
party / internal qualified valuers to perform the period (including Defect Liability Period) and accordingly all
valuation . Finance team works closely with the project related assets and liabilities are classified into current
qualified external / internal valuers to establish and non current. Other than project related assets and
the appropriate valuation techniques and inputs liabilities, 12 months period is considered as normal operating
to the model. The Chief Financial Officer reports cycle.
the valuation committee’s findings to the Board of
Directors about the causes of fluctuations in the 2.32 Recent accounting pronouncements:
fair value of the assets and liabilities. Standards issued but not yet effective and not early adopted
In assessing the recoverability of the trade by the Company
Provision
receivables and contracts assets, management’s Ministry of Corporate Affairs (“MCA”) notifies new standard
for doubtful
judgement involves consideration of aging status, or amendments to the existing standards. On March 23,
receivables and
evaluation of litigations and the likelihood of 2022, the MCA, issued certain amendments to Ind AS. The
contract assets
collection based on the terms of the contract. amendments relate to the following standards:
Inventories are stated at the lower of cost and - Ind AS 101, First-time Adoption of Indian Accounting
Estimation of
Fair value. In estimating the net realisable value Standards
net realisable
/ Fair value of Inventories the Company makes
value of - Ind AS 103, Business Combinations
an estimate of future selling prices and costs
inventories - Ind AS 107, Financial Instruments: Disclosures
necessary to make the sale.
The Company uses actuarial assumptions to - Ind AS 109, Financial Instruments
determine the obligations for employee benefits - Ind AS 16, Property, Plant and Equipment
Provision for
at each reporting period . These assumptions
employee - Ind AS 37, Provisions, Contingent Liabilities and
include the discount rate, expected long-term
benefits Contingent Assets
rate of return on plan assets, rate of increase in
compensation levels and mortality rates. These amendments are effective from April 01, 2022. The
Significant judgments are required in determining Company believes that the aforementioned amendments
the provision for income taxes, including the will not materially impact the financial statements of the
amount expected to be paid / recovered for Company.
Provision for uncertain tax positions. The company reviews the
taxes “MAT credit entitlement” asset at each reporting
date and writes down the asset to the extent that
it is no longer probable that it will pay normal tax
during the specified period.

Annual Report 2021-22 77

Notes forming part of the financial statements
Note 3
Property, Plant & Equipment and Capital Work-in-Progress: (` in crores)

Plant Lease
Furniture Construc- Construc-
and Office Office Hold
Land Buildings and tion tion Total
Equip- Vehicles Equipment Improve-
Fixtures Vehicles Accessories
ment ments

Cost:

Balance as at April 01, 2020 5.13 62.13 837.12 12.90 180.95 85.93 51.91 16.19 779.78 2,032.04

Additions - 6.42 60.16 0.83 46.91 8.78 3.80 - 49.02 175.92

Disposals / Adjustments - 0.21 11.63 0.11 4.10 2.64 0.38 0.11 37.15 56.33

As at March 31, 2021 5.13 68.34 885.65 13.62 223.76 92.07 55.33 16.08 791.65 2,151.63

Additions 7.25 8.31 83.37 1.13 23.96 17.30 7.91 - 76.59 225.82

Disposals / Adjustments - (3.25) 67.89 1.00 19.74 4.56 1.47 - 26.09 117.50

As at March 31, 2022 12.38 79.90 901.13 13.75 227.98 104.81 61.77 16.08 842.15 2,259.95

Depreciation:

Balance as at April 01, 2020 - 15.76 370.39 6.41 77.45 40.04 39.92 11.43 418.04 979.44

Depreciation - 5.08 56.58 1.06 16.67 8.17 4.39 3.54 77.94 173.43

Disposals / Adjustments - 0.08 10.10 0.10 3.96 2.24 0.36 0.11 28.01 44.96

As at March 31, 2021 - 20.76 416.87 7.37 90.16 45.97 43.95 14.86 467.97 1,107.91

Depreciation - 5.80 59.11 1.01 22.62 9.02 4.50 0.57 79.15 181.78

Disposals / Adjustments - (0.03) 46.20 0.93 18.53 3.54 1.38 - 22.90 93.45

As at March 31, 2022 - 26.59 429.78 7.45 94.25 51.45 47.07 15.43 524.22 1,196.24

Net Block

As at March 31, 2021 5.13 47.58 468.78 6.25 133.60 46.10 11.38 1.22 323.68 1,043.72

As at March 31, 2022 12.38 53.31 471.35 6.30 133.73 53.36 14.70 0.65 317.93 1,063.71

Capital work in progress ` 7.02 crores (31.03.2021: ` 21.53 crores).

Note: Refer note 18 and 21 for details of assets pledged.

78 NCC LIMITED
Notes forming part of the financial statements
Note 3.1
Investment property & Investment property under construction: (` in crores)

Land Buildings* Total

Cost:
Balance as at April 01, 2020 56.02 92.57 148.59
Additions 20.07 24.83 44.90
Disposals / Adjustments - 10.92 10.92
As at March 31, 2021 76.09 106.48 182.57
Additions - 3.20 3.20
Disposals / Adjustments 2.74 18.78 21.52
As at March 31, 2022 73.35 90.90 164.25
Depreciation:
Balance as at April 01, 2020 - 5.37 5.37
Depreciation - 0.55 0.55
Disposals / Adjustments - 1.74 1.74
As at March 31, 2021 - 4.18 4.18
Depreciation - 0.55 0.55
Disposals / Adjustments - 0.33 0.33
As at March 31, 2022 - 4.40 4.40
Net Block
As at March 31, 2021 76.09 102.30 178.39
As at March 31, 2022 73.35 86.50 159.85
*Cost includes given under operating lease ` 22.23 crores (31.03.2021: ` 35.61 crores).
Investment property under construction ` 103.47 crores (31.03.2021: ` 68.10 crores).
Note: Refer note 18 and 21 for details of assets pledged and note 27 for the details of Rental income.

Fair value of the investment property and investment property under construction:
Details of the investment property and information about the fair value hierarchy as at March 31, 2022 and March 31, 2021 are as follows:
(` in crores)

Fair value as at Fair value as at

Fair value hierarchy
March 31, 2022 March 31, 2021
Land Level 3 170.67 152.77
Buildings Level 3 176.56 192.68
Investment property under construction Level 3 127.85 82.86
Total 475.08 428.31
The internal technical team of the Company has valued for some of the properties at ` 315.62 crores (31.03.2021: ` 319.90 crores) and
the balance properties have been valued by independent valuer at ` 159.46 crores (31.03.2021: ` 108.41 crores). The Valuation is based
on Government rates, market research, market trend and comparable values as considered appropriate.

Annual Report 2021-22 79

Notes forming part of the financial statements
3.2 Other Intangible Assets (` in crores)
Computer Software Total
Cost:
Balance as at April 01, 2020 13.14 13.14
Additions 0.02 0.02
Disposals / Adjustments - -
As at March 31, 2021 13.16 13.16
Additions 0.02 0.02
Disposals / Adjustments - -
As at March 31, 2022 13.18 13.18
Amortisation:
Balance as at April 01, 2020 12.34 12.34
Amortisation 0.11 0.11
Disposals / Adjustments - -
As at March 31, 2021 12.45 12.45
Amortisation 0.01 0.01
Disposals / Adjustments - -
As at March 31, 2022 12.46 12.46
Net Block
As at March 31, 2021 0.71 0.71
As at March 31, 2022 0.72 0.72

3.3 Capital work in progress (CWIP) Ageing Schedule as at 31.03.2022: (` in crores)

Total Less than1 year 1-2 years 2-3 years More than 3 years
(i)Projects in progress - PPE commissioning 7.02 6.24 0.29 0.40 0.09
(ii)Projects temporarily suspended - - - - -
Total 7.02 6.24 0.29 0.40 0.09

Capital work in progress (CWIP) Ageing Schedule as at 31.03.2021: (` in crores)

Total Less than1 year 1-2 years 2-3 years More than 3 years
(i)Projects in progress - PPE commissioning 21.53 10.49 10.95 0.09 -
(ii)Projects temporarily suspended - - - - -
Total 21.53 10.49 10.95 0.09 -

80 NCC LIMITED
Notes forming part of the financial statements
3.4 The title deeds of all the immovable properties disclosed in the financial statements are held in the name of the company
except the below properties.
(` in crores)
Relevant line item Description Gross Whether title Property
Title deeds held in the Reason for not being held in the
in the Balance of item of carrying deed holder is held since
name of name of the company
Sheet property value a promoter which date
Investment NCC Urban Company intends to sell this
Land 15.00 No 31.12.2020
property Infrastructure Limited property.
Acquired pursuant to a Scheme
of Amalgamation approved by
National Company Law Tribunal’s
Property, Plant & Vaidehi Avenues
Land 5.13 No 01.04.2020 (NCLT) order dated August 26,
Equipment Limited
2021 and the Company is currently
in the process of getting this land
mutated.

3.5 The Company uses both internal technical team and independent valuers for fair valuation of the investment properties.
3.6 No proceeding has been initiated or pending against the Company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
(` in crores)
As at March 31, 2022 As at March 31, 2021
Number of Number of
Amount Amount
Shares Shares
4 Investments
4.1 Non Current Investments
A In Associates
Trade (Unquoted) (At Cost)
(i) Investment in equity shares
In Shares of ` 10 each, fully paid up
Paschal Form Work (India) Private Limited 6,549,892 6.91 6,549,892 6.91
Less: Provision for Impairment in value of Investments 3.46 -
3.45 6.91
Brindavan Infrastructure Company Limited 8,643,036 3.46 8,643,036 3.46
Pondicherry Tindivanam Tollway Limited (valued at ` 1,000) 100 - 100 -
In Shares of one USD each fully paid up
Apollonius Coal and Energy Pte Limited 1,498,757 8.00 1,498,757 8.00
Less: Provision for Impairment in value of Investments 8.00 8.00
- -
In Shares of 'AED' 1000 each fully paid up
Nagarjuna Facilities Management Services, LLC, Dubai 147 0.17 147 0.17
Total aggregate investments in Associates 7.08 10.54

Annual Report 2021-22 81

Notes forming part of the financial statements
(` in crores)
As at March 31, 2022 As at March 31, 2021
Number of Number of
Amount Amount
Shares Shares
B In Subsidiaries
Trade (Unquoted) (At Cost)
(i) Investment in equity shares
In Shares of ` 10 each, fully paid up
NCC Infrastructure Holdings Limited (NCCIHL) (Refer note 4.3) 445,874,458 457.91 445,874,458 457.91
Less: Provision for Impairment in value of Investments 69.38 69.38
388.53 388.53
NCC Urban Infrastructure Limited (Refer note 4.4) 200,000,000 240.00 200,000,000 240.00
NCC Vizag Urban Infrastructure Limited (Refer note 4.5) - - 50,000,000 50.00
OB Infrastructure Limited (Valued at ` 6,000) 600 - 600 -
NCC International Convention Centre Limited - 1,000,000 1.00
Less: Provision for Impairment in value of Investments - 1.00
- -
Savitra Agri Industrial Park Private Limited 50,000 0.05 50,000 0.05
Pachhwara Coal Mining Private Limited 102,000 0.10 102,000 0.10
Talaipalli Coal Mining Private Limited 45,900 0.05 45,900 0.05
In Shares of Omani Rials one each, fully paid up
Nagarjuna Construction Company International LLC, Oman 12,818,000 193.37 12,818,000 193.37
Less: Provision for Impairment in value of Investments 113.52 78.52
79.85 114.85
In Shares of US $ 10 each, fully paid up
NCC Infrastructure Holdings Mauritius Pte. Ltd. 2,687,508 61.88 2,687,508 61.88
Less: Provision for Impairment in value of Investments 21.22 21.22
40.66 40.66
In Shares of 'AED' 1000 each, fully paid up
Nagarjuna Contracting Company Limited, LLC, Dubai 300 0.34 300 0.34
(ii) Investment in debentures
0% Compulsory Convertible Debentures
NCC Infrastructure Holdings Mauritius Pte. Ltd. (US $ 1 each) 20,596,720 135.24 20,596,720 135.24
Total aggregate investments in Subsidiaries 884.82 969.82
C In Other entities
Trade (Unquoted)
Investments - fair value through profit and loss account
SNP Developers and Projects LLP (Valued at ` 35,500 ) - -
SNP Ventures LLP - 2.18
SNP Property Developers LLP 0.01 0.01
NAC Quippo Equipment Services Limited 1,499,900 1.50 1,499,900 1.50

82 NCC LIMITED
Notes forming part of the financial statements
(` in crores)
As at March 31, 2022 As at March 31, 2021
Number of Number of
Amount Amount
Shares Shares
In Shares of ` 25 each, fully paid up
Akola Urban Co-operative Bank Limited 4,040 0.01 4,040 0.01
Total aggregate investments in Other entities 1.52 3.70
Total aggregate investments in Subsidiaries and Other entities 886.34 973.52
4.2 Current Investments
Investment at Fair Value through Profit and Loss Account
In Mutual Funds (Quoted)
Trust MF Banking & PSU Debt Fund 10,093 1.07 149,993 15.03
Grand Total 894.49 999.09
Aggregate market value of current Quoted Investments 1.07 15.03
Aggregate amount of Unquoted Investments 1,109.00 1,162.18
Aggregate amount of impairment in value of investments 215.58 178.12
4.3 Of these 444,600,000 (31.03.2021: 374,412,894) equity shares have been pledged with SBICAP Trustee Company Limited (Security
trustee) on behalf of consortium of working capital lenders.
The carrying value of investment in ‘NCCIHL’ as at March 31, 2022 is higher by ` 176.28 crores as compared to the Company’s share
of net worth in NCCIHL. However, based on the internal assessment and legal advice, the carrying value is recoverable, considering
the future cash flows from the claims filed by NCCIHL.
4.4 Of these 100,000,000 (31.03.2021: Nil) equity shares have been pledged with SBICAP Trustee Company Limited (Security trustee)
on behalf of consortium of working capital lenders.
4.5 Ceased to be Subsidiary with effect from March 31, 2022.
4.6 The Company has not traded or invested in Crypto currency or Virtual Currency in the current year (31.03.2021: ` Nil).
(` in crores)

As at March 31, 2022 As at March 31, 2021

5 Loans
Unsecured
Loans to Related Parties
Subsidiaries (Refer note 12.1)
Considered Good 47.49 158.38
Significant increase in credit risk 10.00 10.00
57.49 168.38
Less : Allowance for significant increase in credit risk 10.00 10.00
47.49 158.38
Other Body Corporates 150.00 -
Total 197.49 158.38

Annual Report 2021-22 83

Notes forming part of the financial statements
(` in crores)
As at March 31, 2022 As at March 31, 2021
6 Trade Receivables
Unsecured (Refer note 10.1 to 10.3 & 10.5)
Considered Good 109.90 143.22
Considered Doubtful 10.00 11.80
119.90 155.02
Less : Allowance for doubtful trade receivables 11.94 15.43
Total 107.96 139.59
7 Other Financial Assets
Unsecured, Considered good
Deposits with Customers and Others 0.25 0.33
Margin Money Deposits (Refer note 11.5) 139.49 71.25
In Deposit Accounts with remaining maturity more than 12
0.46 0.33
months
Interest accrued on loans - 81.18
Total 140.20 153.09
8 Deferred Tax Assets (Net) (Refer note 42) 54.14 41.14
9 Inventories
Raw Materials 771.49 510.87
Raw Material in Transit 0.87 0.51
Property Development Cost 15.42 15.42
Total 787.78 526.80
10 Trade Receivables
Unsecured (Refer note 10.1 to 10.4 & 10.6)
Considered Good 2,398.79 2,526.68
Considered Doubtful 23.26 23.71
2,422.05 2,550.39
Less : Allowance for doubtful trade receivables 37.78 29.71
Total 2,384.27 2,520.68

10.1 Trade receivables are generally realisable from customers within a period of 30 days from the date of submission of bill / invoice.
10.2 In determining the allowance for trade receivables the company has used practical expedients based on financial condition of the
customer, ageing of the customer receivables and overdues, availability of collaterals and historical experience of collections from
customers. The concentration of risk with respect to trade receivables is reasonably low as most of the customers are Government
organisations though there may be normal delays in collections.

84 NCC LIMITED
Notes forming part of the financial statements
10.3 Movement in the allowance for doubtful trade receivables: (` in crores)

As at As at
March 31, 2022 March 31, 2021
Balance at beginning of the year 45.14 45.24
Add: Allowance for doubtful trade receivables 6.17 9.30
Less: Allowance written off during the year / transferred to contract asset (8.42) (9.40)
Balance at the end of the year 42.89 45.14
10.4 Trade receivables includes ` 29.23 crores (31.03.2021: ` 29.23 crores) from associates.
10.5 Ageing of Non-current Trade receivables as on 31.03.2022: (` in crores)

Outstanding from the due date of payment

Particulars Not yet Less than 6 months More than
1-2 years 2-3 years Total
Due 6 months - 1 year 3 years
Unsecured
Undisputed Trade receivables
Considered Good - - 0.81 1.78 30.90 4.96 38.45
Considered Doubtful - - - - - - -
Disputed Trade receivables
Considered Good - - 0.36 0.50 46.42 24.17 71.45
Considered Doubtful - - - - 5.00 5.00 10.00
- - 1.17 2.28 82.32 34.13 119.90
Less : Allowance for doubtful trade receivables 11.94
Total 107.96

Ageing of Non-current Trade receivables as on 31.03.2021: (` in crores)

Outstanding from the due date of payment
Particulars Not yet Less than 6 months More than
1-2 years 2-3 years Total
Due 6 months - 1 year 3 years
Unsecured
Undisputed Trade receivables
Considered Good 0.65 0.88 0.93 37.09 4.91 7.03 51.49
Considered Doubtful - - - - - - -
Disputed Trade receivables
Considered Good - 0.03 0.50 35.41 19.51 36.28 91.73
Considered Doubtful - - - 0.80 1.00 10.00 11.80
0.65 0.91 1.43 73.30 25.42 53.31 155.02
Less : Allowance for doubtful trade receivables 15.43
Total 139.59

Annual Report 2021-22 85

Notes forming part of the financial statements
10.6 Ageing of Current Trade receivables as on 31.03.2022: (` in crores)
Outstanding from the due date of payment
Particulars Not yet Less than 6 months More than
1-2 years 2-3 years Total
Due 6 months - 1 year 3 years
Unsecured
Undisputed Trade receivables
Considered Good 1,040.26 631.08 165.13 187.63 199.15 92.37 2,315.62
Considered Doubtful - - - - 5.26 13.00 18.26
Disputed Trade receivables
Considered Good - 1.18 - - 8.58 73.41 83.17
Considered Doubtful - - - - 1.00 4.00 5.00
1,040.26 632.26 165.13 187.63 213.99 182.78 2,422.05
Less : Allowance for doubtful trade receivables 37.78
Total 2,384.27

Ageing of Current Trade receivables as on 31.03.2021: (` in crores)

Outstanding from the due date of payment
Particulars Not yet Less than 6 months More than
1-2 years 2-3 years Total
Due 6 months - 1 year 3 years
Unsecured
Undisputed Trade receivables
Considered Good 843.66 669.88 309.20 499.24 87.16 46.30 2,455.44
Considered Doubtful - - - - 2.51 16.20 18.71
Disputed Trade receivables
Considered Good - - - 11.25 28.03 31.96 71.24
Considered Doubtful - - - - 2.00 3.00 5.00
843.66 669.88 309.20 510.49 119.70 97.46 2,550.39
Less : Allowance for doubtful trade receivables 29.71
Total 2,520.68

(` in crores)
As at March 31, 2022 As at March 31, 2021
11 Cash and Bank Balances
11.1 Cash and Cash Equivalents
Cash on hand (Refer note 11.3) 1.00 0.90
Balances with Banks
In Current Accounts (Refer note 11.4) 211.26 168.58
In Deposit Accounts with original maturity less 23.13 0.18
than 3 months
235.39 169.66
11.2 Other Bank Balances
In Deposit Accounts
Margin Money Deposits (Refer note 11.5) 307.07 251.68
In Deposit Accounts with remaining maturity 13.40 16.74
less than 12 months
320.47 268.42
Earmarked balances with Banks
Unpaid dividend accounts (Refer note 11.6) 0.52 0.54
Un-spent CSR account 2.16 -
323.15 268.96
Total 558.54 438.62

86 NCC LIMITED
Notes forming part of the financial statements
11.3 Cash on hand includes ` 0.24 crores (31.03.2021: ` 0.19 crores) held in foreign currency.
11.4 Current account balance includes ` Nil (31.03.2021: ` Nil) remittance in transit
11.5 Margin Money Deposits represents the deposits lodged with Banks against Guarantees issued by them.
11.6 Represents Cash and Cash equivalents deposited in unpaid dividend account and are not available for use by the Company other than
specific purpose.
11.7 Changes in liabilities arising from financing activities: (` in crores)
Balance As at
Cash Flows
As at April 01, 2021 March 31, 2022
Current borrowings (including current maturity) 1,690.32 (588.27) 1,102.05
Non-current borrowings 98.60 (16.57) 82.03
Total 1,788.92 (604.84) 1,184.08
(` in crores)
Balance As at As at
Cash Flows
April 01, 2020 March 31, 2021
Current borrowings (including current maturity) 1,736.43 (46.11) 1,690.32
Non-current borrowings 173.67 (75.07) 98.60
Total 1,910.10 (121.18) 1,788.92
(` in crores)

As at March 31, 2022 As at March 31, 2021

12 Loans
Other Body Corporate 180.04 17.59
Unsecured, considered good
Loans to Related Parties (Refer note 12.1)
Subsidiaries 23.55 149.49
Loans and Advances to Employees 6.73 4.53
Total 210.32 171.61

12.1 Particulars of Loans and Advances in the nature of loans as required by Regulation 34(3) and 53(f) of Securities and Exchange Board
of India (Listing Obligations and Disclosures Requirements) Regulations, 2015.
(` in crores)
Maximum Maximum
As at As at outstanding outstanding
March 31, March 31, during the during the
2022 2021 year year
(2021-22) (2020-21)

Subsidiaries:

NCC Urban Infrastructure Limited 22.31 149.49 149.49 434.83

NCC Vizag Urban Infrastructure Limited * - 110.89 307.74 110.89

NCC Infrastructure Holdings Mauritius Pte Ltd 57.49 57.49 57.49 57.49

Nagarjuna Construction Company International LLC, Oman 1.24 - 5.18 3.94

Annual Report 2021-22 87

Notes forming part of the financial statements
(` in crores)

As at March 31, 2022 As at March 31, 2021

13 Other Financial Assets
Unsecured, considered good
Receivables 272.42 115.26
Interest Accrued on Deposits and others 13.17 31.15
Total 285.59 146.41
14 Non Current Tax Assets (Net)
Advance Taxes and Tax Deducted at Source (Net of Provisions
149.63 78.84
for tax)
14.1 Current Tax Assets (Net)
Advance Taxes and Tax Deducted at Source (Net of Provisions
74.22 100.31
for tax)

(` in crores)
As at March 31, 2022 As at March 31, 2021
15 Other Non - Current Assets
Sales Tax / Value Added Tax credit receivable 113.70 113.56
Contract Asset
Due on performance of future obligations
Retention Money
Considered Good 70.65 59.70
Considered Doubtful - 10.00
70.65 69.70
Less : Allowance for doubtful retention money - 10.00
70.65 59.70
Unbilled revenue (Refer note 15.4)
Considered Good 48.75 50.66
Considered Doubtful 4.00 4.00
52.75 54.66
Less : Expected credit loss for unbilled revenue 4.00 4.00
48.75 50.66
Total 233.10 223.92

88 NCC LIMITED
Notes forming part of the financial statements
(` in crores)
As at March 31, 2022 As at March 31, 2021
15.1 Other Current Assets
Advances to Suppliers, Sub-contractors and Others (Refer note
15.2)
Considered Good 1,222.91 967.95
Considered Doubtful 10.29 17.95
1,233.20 985.90
Less : Allowance for doubtful advances 10.29 17.95
1,222.91 967.95
Contract Asset
Due on performance of future obligations
Retention Money (Refer note 15.3) 1,936.12 2,029.49
Others 345.10 472.83
Unbilled revenue (Refer note 15.4)
Considered Good 2,227.63 1,669.17
Considered Doubtful 138.16 108.15
2,365.79 1,777.32
Less : Expected credit loss for unbilled revenue 138.16 108.15
2,227.63 1,669.17
Prepaid Expenses 45.19 55.63
Project Facilities 39.97 -
Balances with Government Authorities
Sales Tax / Value Added Tax credit receivable 90.77 100.35
Goods and Service Tax credit receivable 506.42 392.30
Total 6,414.11 5,687.72
15.2 Advances to Suppliers, Sub–contractors and Others, includes advances to related parties of ` 6.35 crores (31.03.2021: ` 32.61
crores).
15.3 Retention money includes receivable from associate of ` 21.03 crores (31.03.2021: ` 21.03 crores).
15.4 Movement in the Expected credit loss for unbilled revenue: (` in crores)
As at As at
March 31, 2022 March 31, 2021
Balance at beginning of the year 112.15 98.26
Add: Expected credit loss for unbilled revenue during the year / transferred from Trade
Receivables 30.01 13.89
Balance at the end of the year 142.16 112.15

Annual Report 2021-22 89

Notes forming part of the financial statements
(` in crores)

As at March 31, 2022 As at March 31, 2021

Number of Number of
Amount Amount
shares shares
16 Share Capital
Authorised :
Equity Shares of ` 2 each 807,500,000 161.50 750,000,000 150.00
Issued :
Equity Shares of ` 2 each (Refer note 16.1) 609,846,588 121.97 609,846,588 121.97
Subscribed and Paid up :
Equity Shares of ` 2 each 609,846,588 121.97 609,846,588 121.97
Total 121.97 121.97

16.1 Reconciliation of the number of equity shares and amount outstanding at beginning and at end of the year
(` in crores)
Year Ended March 31, 2022 Year Ended March 31, 2021
Number of Number of
Amount Amount
shares shares
Balance at beginning of the year 609,846,588 121.97 609,846,588 121.97
Add: Issue of Share Capital - - - -
Balance at end of the year 609,846,588 121.97 609,846,588 121.97

16.2 Details of shares held by each shareholder holding more than 5% shares:
As at March 31, 2022 As at March 31, 2021
Number of Number of
% holding % holding
shares shares
Smt. Rekha Jhunjhunwala 667,33,266 10.94 667,33,266 10.94
A V S R Holdings Private Limited 635,56,225 10.42 627,66,225 10.29

16.3 Unclaimed equity shares of 25,984 (31.03.2021: 25,984) are held in “NCC Limited - Unclaimed suspense account“ in trust.
16.4 Rights of the share holders
The equity shares of the company having par value of ` 2 per share, rank pari passu in all respects including voting rights and
entitlement to dividend. Repayment of the capital in the event of winding up of the Company will inter alia be subject to the
provisions of Companies Act 2013, the Articles of Association of the Company and as may be determined by the Company in
General Meeting prior to such winding up.
16.5 The Company had issued and allotted 18,000,000 Convertible Warrants on February 12, 2021 at a price of ` 59.00 per Warrant
on preferential basis to the specified Promoters / Promoter Group of the Company, as per the provision of Chapter VII of the
SEBI ICDR Regulations. The Company has received the part payment (25% of total consideration) of ` 26.55 crores. As per
the said regulations the Warrants would be converted into equivalent number of equity shares of ` 2.00 each (at a premium of
` 57.00 per share) on payment of the balance amount prior to expiry of 18 months from the date of issue of convertible
warrants.

90 NCC LIMITED
Notes forming part of the financial statements
16.6 Shares held by promoter group at the end of the year:

Change during the Change during the

As at 31.03.2020 As at 31.03.2021 As at 31.03.2022
S. FY 2020-21 FY 2021-22
Promoter Name
No No. of % of No. of % of No. of % of % of No. of % of
No. of shares
shares holding shares change shares holding change shares holding
1 Sri. A.A.V. Ranga 13,563,196 2.22% (1,580,000) (11.65%) 11,983,196 1.96% (10,000,000) (83.45%) 1,983,196 0.33%
Raju
2 Sri. A.S.N. Raju 5,782,985 0.95% (790,000) (13.66%) 4,992,985 0.82% - - 4,992,985 0.82%
3 Sri. A.G.K. Raju 6,109,080 1.00% (1,627,511) (26.64%) 4,481,569 0.73% - - 4,481,569 0.73%
4 Sri. J.V. Ranga Raju 2,465,916 0.40% - - 2,465,916 0.40% - - 2,465,916 0.40%
5 AVSR Holdings 49,653,278 8.14% 13,112,947 26.41% 62,766,225 10.29% 790,000 1.26% 63,556,225 10.42%
Private Limited
6 Sirisha Projects 12,144,158 1.99% 2,999,511 24.70% 18,610,669 3.05% - - 18,610,669 3.05%
Private Limited
7 Avathesh Property 3,467,000 0.57% - - - - - - - -
Developers Private
Limited*
8 Sri. A. Srinivas 3,076,668 0.50% (2,902,668) (94.34%) 174,000 0.03% - - 174,000 0.03%
Ramaraju
9 Sri. N.R. Alluri 8,858,806 1.45% (7,637,228) (86.21%) 1,221,578 0.20% - - 1,221,578 0.20%
10 Sri. U. Sunil 55,000 0.01% - - 55,000 0.01% - - 55,000 0.01%
11 Smt. A. Bharathi 124,059 0.02% - - 124,059 0.02% - - 124,059 0.02%
12 Sri. A.V.N. Raju 7,985,791 1.31% (2,255,051) (28.24%) 5,730,740 0.94% (790,000) (13.79%) 4,940,740 0.81%
13 Smt. A. Shyama 374,902 0.06% 189,000 50.41% 563,902 0.09% - - 563,902 0.09%
14 Smt. A. Subhadra 308,091 0.05% - - 308,091 0.05% - - 308,091 0.05%
Jyotirmayi
15 Smt. A. 7,288 0.00% - - 7,288 0.00% - - 7,288 0.00%
Satyanarayanamma
16 Smt. A. Arundhati 847,222 0.14% 295,800 34.91% 1,143,022 0.19% - - 1,143,022 0.19%
17 Smt. J. Sridevi 287,859 0.05% - - 287,859 0.05% - - 287,859 0.05%
18 Smt. BH. Kaushalya 41,590 0.01% 137,000 329.41% 178,590 0.03% - - 178,590 0.03%
19 Sri. J. Krishna 306,121 0.05% - - 306,121 0.05% - - 306,121 0.05%
Chaitanya Varma
20 Smt. A. Sridevi 113,884 0.02% - - 113,884 0.02% - - 113,884 0.02%
21 Smt. M. Swetha 1,225,530 0.20% - - 1,225,530 0.20% - - 1,225,530 0.20%
22 Smt. A. Neelavathi 73,281 0.01% - - 73,281 0.01% - - 73,281 0.01%
Devi
23 Sri. A. Sri Harsha 41,780 0.01% - - 41,780 0.01% - - 41,780 0.01%
Varma
24 Sri. A. Vishnu 15,100 0.00% - - 15,100 0.00% - - 15,100 0.00%
Varma
25 Smt. A. Sravani 333,450 0.05% 83,500 25.04% 416,950 0.07% 4,000 0.96% 420,950 0.07%
26 Smt. J. Sowjanya 559,166 0.09% - - 559,166 0.09% - - 559,166 0.09%
27 Smt. A. Suguna - 0.00% - - - 0.00% 7,000,000 100% 7,000,000 1.15%
28 Smt. U. Ramya - 0.00% - - - 0.00% 3,000,000 100% 3,000,000 0.49%
29 Narasimha 1,516,179 0.25% 680,000 44.85% 2,196,179 0.36% - - 2,196,179 0.36%
Developers Private
Limited
Total 119,337,380 19.57% 705,300 120,042,680 19.68% 4,000 120,046,680 19.68%
*Avathesh Property Developers Private Limited is merged with Sirisha Projects Private Limited with effect from April 1, 2020, being the appointed date as
per the scheme.

Annual Report 2021-22 91

Notes forming part of the financial statements
(` in crores)

As at March 31, 2022 As at March 31, 2021

17 Other Equity
17.1 Capital Reserve 6.99 6.99
17.2 Securities Premium 2,639.62 2,639.62
Money received against share warrants
17.3 26.55 26.55
(Refer note 16.5)
17.4 General Reserve
Opening balance 1,122.00 922.00
Add : Transfer from Retained Earnings 250.00 200.00
Closing balance 1,372.00 1,122.00
17.5 Retained Earnings (Refer note 17.5.a)
Opening balance 1,478.42 1,429.14
Add : Profit for the year 490.12 261.49
1,968.54 1,690.63
Less : Appropriations
Dividend distributed to equity shareholders (2021-22:
48.79 12.21
` 0.80 per share (2020-21: ` 0.20 per share))
Transfer to General Reserve 250.00 200.00
298.79 212.21
Closing balance 1,669.75 1,478.42
17.6 Other Components of Equity
Remeasurement gains / (losses) of the defined
(29.18) (27.13)
benefit plans (Net of tax)
Exchange differences in translating the financial
(4.53) (3.76)
statements of foreign operations (Net of tax )
Total 5,681.20 5,242.69
17.5.a For the year ended March 31, 2022, the Board of Directors have proposed a dividend of ` 2.00 per share. The dividend payable
on approval of the shareholders is ` 121.97 crores.

92 NCC LIMITED
Notes forming part of the financial statements
(` in crores)
As at March 31, 2022 As at March 31, 2021
Non Current Current* Non Current Current*
18 Borrowings (Refer note 21.2 to 21.5)
Term Loans
Secured - at amortised cost
From Banks (Refer note 18.1) 48.11 49.13 77.02 210.77
From Other Parties (Refer note 18.2) 29.93 41.22 17.36 34.55
Unsecured - at amortised cost
From Other Parties (Refer note 18.3) - - - 12.90
Vehicle Loans
Secured - at amortised cost
From Banks (Refer note 18.4) 1.98 2.35 2.73 2.45
From Others (Refer note 18.4) 2.01 1.62 1.49 1.74
Total 82.03 94.32 98.60 262.41
* Current maturities are included in Note 21 - Borrowings.
18.1 Term Loans from Banks:
(i) Axis Bank Limited / Kotak Mahindra Bank / Indus Ind Bank Limited, YES Bank
- Secured by hypothecation of specific assets purchased out of the loan
(ii) Canara Bank
- Exclusive charge on the entire equipment and machinery purchased out of the loan facility
(iii) Bank of Baharain & Kuwait
- Exclusive charge on the entire equipment and machinery purchased out of the loan facility with a cover of minimum 1.15
times to be maintained throughout the tenor of the loan.
(iv) Karnataka Bank Ltd
- Exclusive Hypothecation charge on the machineries/equipments/ vehicles purchased out of the loan facility.
The details of rate of interest and repayment terms of the loans are as under.
Number of Loans Outstanding balance Interest Balance number of Frequency
outstanding As at As at (` in crores) Installments as at Commencing
S. No. Particulars Range % of
From- To
31.03.2022 31.03.2021 31.03.2022 31.03.2021 per annum 31.03.2022 31.03.2021 Installments
Axis Bank October 10, 2017
(i) 1 18 0.05 11.53 8.26 to 9.60 1 5 to12 Monthly
Limited to April 20, 2022
March 02, 2019
(ii) Canara Bank - 1 - 47.69 9.40 - 3 Quarterly to December 02,
2021
Kotak December 20,
7.57 to
(iii) Mahindra 17 44 10.29 19.17 30 to 31 7 to 43 Monthly 2018 to October
8.10
Bank Limited 10, 2024
February 01,
Indus Ind
(iv) 66 60 25.66 35.90 8.95 to 9.76 8 to 36 20 to 46 Monthly 2019 to April 15,
Bank Limited
2025
Bank of November 30,
(v) Bahrain and 1 1 44.97 41.62 7.05 to 9.45 6 to 12 10 Quarterly 2020 to May 31,
Kuwait 2025
May 08, 2019 to
(vi) Yes Bank 34 42 9.38 20.90 8.05 to 9.40 1 to 33 12 to 45 Monthly
Dec 15,2024
Karnataka June 30, 2022 to
(vii) 2 - 6.89 - 8 30 - Monthly
Bank Ltd March 19, 2025

Annual Report 2021-22 93

Notes forming part of the financial statements
(v) Covid Emergency Line Of Credit-Term Loans
- Extension of existing security offered to Working Capital Demand Loans and Cash Credit facilities availed from consortium
of banks during the previous year and these loans were repaid during the financial year 2021-22.

Outstanding balance Interest Balance number of

As at (` in crores) Installments as at Monthly Installments
S.No. Particulars Range %
Commencing From- To
31.03.2022 31.03.2021 per annum 31.03.2022 31.03.2021
December 31, 2020 to
(i) Allahabad Bank - 4.32 7.50 - 2
May 31, 2021
January 31, 2021 to
(ii) Canara Bank - 35.33 8.35 - 15
June 30, 2022
February 28, 2021 to
(iii) Punjab National Bank - 4.44 8.10 - 16
July 31, 2022
November 30, 2020 to
(iv) State Bank Of India - 44.43 7.25 - 13
April 30, 2022
November 30, 2020 to
(v) Union Bank Of India - 15.38 8.00 - 13
April 30, 2022
January 31, 2021 to
(vi) Punjab & Sindh Bank - 2.37 8.75 - 15
June 30, 2022
Punjab National Bank (e. March 31, 2021 to
(vii) - 4.71 7.85 - 17
OBC) August 31, 2022

18.2 i) Term Loans from Other Parties:

Secured by hypothecation of specific assets purchased out of loan, comprising Plant and Machinery and Construction equipment.
The details of rate of interest and repayment terms of term loans are as under.

Number of Loans Outstanding balance Interest Balance number of Frequency

outstanding As at As at (` in crores) Installments as at Commencing
S.No. Particulars Range % of
From- To
31.03.2022 31.03.2021 31.03.2022 31.03.2021 per annum 31.03.2022 31.03.2021 Installments
Tata Capital August 21,
Financial 7.60 to Monthly / 2019 to
(i) 5 4 45.49 32.04 3 to 21 1 to 33
Services 10.50 Quarterly December 03,
Limited* 2023
October
Daimler Financial
13, 2018 to
(ii) Services India - 2 - 0.82 8.42 - 4 to 5 Monthly
August 04,
(Private) Limited
2021
February
Volvo Financial
7.10 to 07, 2021 to
(iii) Services (India) 27 42 25.66 19.05 21 to 32 12 to 33 Monthly
8.04 November
Private Limited
15, 2024
*Term Loan from Tata Capital Financial Services Limited, for March 31, 2022 ` 45.49 crores, March 31, 2021 ` 32.04 crores
is secured by:
- First and Exclusive Charge on the assets being procured / financed and Collateral Charge on two properties.

94 NCC LIMITED
Notes forming part of the financial statements
18.3 Unsecured term loan from other parties: (` in crores)
- These loans were repaid during the financial year 2021-22.
Number of Loans Outstanding balance Interest Balance number of
Frequency
outstanding As at As at (` in crores) Range Installments as at Commencing
S.No. Particulars of
% per From- To
31.03.2022 31.03.2021 31.03.2022 31.03.2021 annum 31.03.2022 31.03.2021 Installments
Hewlett Packard July 31, 2018
8.99 to
(i) Financial Services - 7 - 10.45 - 1 to 4 Quarterly to January 31,
9.52
Limited 2022
CISCO Systems May 10, 2018
5.02 to
(ii) Capital Private - 5 - 2.45 - 1 to 2 Quarterly to August 05,
8.66
Limited 2021

18.4 Vehicle Loans:

Vehicle loans are secured by hypothecation of the vehicles financed through the loan arrangements. Such loans are repayable in
equal monthly installments over a period of 3 to 5 years and carry interest rate ranging between 7.20 % to 9.50 % per annum.
(` in crores)

As at March 31, 2022 As at March 31, 2021

19 Trade Payables (Refer note 22.2)
Retention money 19.91 22.96
Total 19.91 22.96
20 Provisions
Provision for Employee Benefits
Compensated absences (Refer note 20.2) - 0.04
Gratuity (Refer note 20.1) 52.52 45.04
Total 52.52 45.08

20.1 In accordance with the Payment of Gratuity Act, 1972 the company provides for gratuity covering eligible employees. The liability
on account of gratuity is covered partially through a recognized Gratuity Fund managed by Life Insurance Corporation of India (LIC)
and balance is provided on the basis of valuation of the liability by an independent actuary as at the year end. The management
understands that LIC overall portfolio of assets is well diversified and as such, the long term return on the policy is expected to be
higher than the rate of return on Central Government bonds.
A Defined benefit plans
(i) Liability for gratuity as on March 31, 2022 is ` 69.88 crores (31.03.2021: ` 61.53 crores) of which ` 3.13 crores (31.03.2021:
` 2.31 crores) is funded with the Life Insurance Corporation of India. The balance of ` 66.75 crores (31.03.2021: ` 59.22 crores)
is included in Provision for Gratuity.
(ii) Details of the Company’s post-retirement gratuity plans for its employees including whole-time directors are given below, which
is certified by the actuary.
Amount to be recognised in Balance Sheet: (` in crores)

As at As at
March 31, 2022 March 31, 2021
Present Value of Funded Obligations 69.88 61.53
Fair Value of Plan Assets (3.13) (2.31)
Net Liability 66.75 59.22

Annual Report 2021-22 95

Notes forming part of the financial statements
(iii) Expenses to be recognized in Statement of Profit and Loss under Employee Benefit Expenses: (` in crores)

Year Ended Year Ended

March 31, 2022 March 31, 2021
Current Service Cost 6.09 5.24
Interest on Defined Benefit Obligation 4.09 3.04
Expected Return on Plan assets (0.18) (0.22)
Total included in "Employee Benefits Expense" 10.00 8.06

(iv) Expenses to be recognized in Statement of Profit and Loss under Other Comprehensive Income: (` in crores)

Year Ended Year Ended

March 31, 2022 March 31, 2021
Return on Plan Assets 0.03 0.02
Net Actuarial Losses / (Gains) Recognised in Year 2.71 12.03
Total included in "Other Comprehensive Income" 2.74 12.05

(v) Reconciliation of benefit obligation and plan assets for the year: (` in crores)

Year Ended Year Ended

March 31, 2022 March 31, 2021
Change in Defined Benefit Obligation
Opening Defined Benefit Obligation 61.53 48.16
Current Service Cost 6.09 5.24
Increase / (Decrease) due to effect of any business combination / divesture / transfer) 0.07 0.12
Interest Cost 4.09 3.04
Actuarial Losses / (Gain) 2.71 12.03
Benefits Paid (4.61) (7.07)
Closing Defined Benefit Obligation 69.88 61.53
Opening Fair Value of Plan assets 2.31 4.05
Expected Return on Plan Assets 0.22 0.20
Contributions 5.21 5.13
Benefits Paid (4.61) (7.07)
Closing Fair Value of Plan Assets 3.13 2.31
Expected Employer's Contribution Next Year 15.00 15.00

(vi) Asset information:

As at As at
March 31, 2022 March 31, 2021
Category of Assets
Insurer Managed Funds –Life Insurance Corporation of India 100% 100%
Amount - ` in crores 3.13 2.31

96 NCC LIMITED
Notes forming part of the financial statements
(vii) Experience Adjustments: (` in crores)

2021-22 2020-21 2019-20 2018-19 2017-18

Defined Benefit Obligations (DBO) 69.88 61.53 48.16 32.88 21.08
Plan Assets 3.13 2.31 4.05 6.36 3.18
Surplus / (Deficit) (66.75) (59.22) (44.11) (26.52) (17.90)

(viii) Sensitivity Analysis:

Gratuity Plan
As at As at
March 31, 2022 March 31, 2021
Assumptions
Discount rate 7.33% 6.91%
Estimated rate of return on plan assets 7.35% 6.84%
Expected rate of salary increase 6.00% 5.00%
Attrition rate 14.60% 18.61%
Sensitivity analysis – DBO at the end of the year
Discount rate + 100 basis points (4.10%) (3.50%)
Discount rate - 100 basis points 4.50% 3.80%
Salary increase rate +1% 4.40% 3.80%
Salary increase rate -1% (4.10%) (3.60%)
Attrition rate +1% 0.20% 0.20%
Attrition rate -1% (0.30%) (0.20%)
The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit
obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.
(ix) The following pay-outs are expected in future years: (` in crores)

Particulars March 31, 2022

March 31, 2023 14.08
March 31, 2024 11.13
March 31, 2025 9.81
March 31, 2026 8.52
March 31, 2027 7.96
20.2 The Liability for Cost of Compensated absences is ` 50.10 crores (31.03.2021: ` 42.94 crores) has been actuarially determined and
provided for in the books.

Annual Report 2021-22 97

Notes forming part of the financial statements
(` in crores)

As at As at
March 31, 2022 March 31, 2021
21 Borrowings
Loans repayable on demand
Secured Loans - Banks
Working Capital Demand Loan (Refer note 21.1) 1,004.96 1,223.54
Cash Credit (Refer note 21.1) 2.77 204.37
Current maturities of Long Term Borrowings (Refer note 18) 94.32 262.41
Total 1,102.05 1,690.32

21.1 Working Capital Demand Loans and Cash Credit facilities availed from consortium of banks are secured by:
a) Hypothecation against first charge on stocks, book debts and other current assets of the Company, (excluding specific projects)
both present and future, ranking parri passu amongst consortium banks.
b) Collateral Security pari passu first charge (Hypothecation / Pledge) amongst the members of consortium on unencumbered
movable fixed assets of the Company at WDV (specific assets) and Shares of NCC Infrastructure Holdings Limited (Refer note
4.3) and NCC Urban Infrastructure Limited (Refer note 4.4).
c) Equitable mortgage of sixteen properties (Land & Buildings).
d) Personal Guarantee of Sri. A A V Ranga Raju, Sri A G K Raju & Sri A S N Raju.
These facilities carry an interest rate of 8.40% to 10.05% per annum.
21.2 The Company used the borrowings from banks and financial institutions for the specific purpose for which it was taken.
21.3 The Company has borrowings from banks on the basis of security of current assets, and the quarterly returns and statements of
current assets filed by the Company with banks are in agreement with the books of accounts.
21.4 The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind
of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries).
21.5 The company is not declared as a wilful defaulter by any bank or financial Institution or other lender during the financial year.
(` in crores)

As at March 31, 2022 As at March 31, 2021

22 Trade Payables (Refer note 22.3)
Micro and small enterprises 34.03 49.84
Other than micro and small enterprises
Acceptances 686.83 377.71
Other than Acceptances (includes retention money payable) 3,539.80 3,263.66
4,226.63 3,641.37
Total 4,260.66 3,691.21

98 NCC LIMITED
Notes forming part of the financial statements
(` in crores)
As at March 31, 2022 As at March 31, 2021
22.1 Trade payable other than acceptances include certain dues to
Micro and Small Enterprises, under the Micro, Small and Medium
Enterprises Development Act, 2006 that have been determined
based on the information available with the company and the
required disclosures are given below:
a) Principal amount remaining unpaid 34.03 49.84
b) Interest due thereon 0.10 0.52
Interest paid by the Company in terms of Section 16 of Micro,
Small and Medium Enterprises Development Act, 2006, along
c) - -
with the amount of the payment made to the supplier beyond
the appointed day during the year.
Interest due and payable for the period of delay in making
payment (which have been paid but beyond the day during the
d) - -
year) but without adding the interest specified under Micro, Small
and Medium Enterprises Development Act, 2006.
Interest accrued and remaining unpaid at the end of accounting
e) - -
year
Further interest remaining due and payable even in the succeeding
f) years, until such date when the interest dues as above are actually - -
paid to the small enterprises.

22.2 Ageing of Non-current Trade payables as on 31.03.2022: (` in crores)

Outstanding from the due date of payment

Particulars Less than More than
Not Due 1-2 years 2-3 years Total
1 year 3 years
(i) MSME - - - - - -
(ii) Others 19.66 0.25 - - - 19.91
(iii) Disputed dues - MSME - - - - - -
(iv) Disputed dues - Others - - - - - -
Total 19.66 0.25 - - - 19.91

Ageing of Non-current Trade payables as on 31.03.2021: (` in crores)

Outstanding from the due date of payment
Particulars Less than More than
Not Due 1-2 years 2-3 years Total
1 year 3 years
(i) MSME - - - - - -
(ii) Others 20.48 2.48 - - - 22.96
(iii) Disputed dues - MSME - - - - - -
(iv) Disputed dues - Others - - - - - -
Total 20.48 2.48 - - - 22.96

Annual Report 2021-22 99

Notes forming part of the financial statements
22.3 Ageing of Current Trade payables as on 31.03.2022: (` in crores)
Outstanding from the due date of payment
Particulars Less than More than
Not Due 1-2 years 2-3 years Total
1 year 3 years
(i) MSME - 34.03 - - - 34.03
(ii) Others 2,256.78 1,217.86 6.56 9.46 54.46 3,545.12
(iii) Disputed dues - MSME - - - - - -
(iv) Disputed dues - Others 13.32 - - - 7.89 21.21
2,270.10 1,251.89 6.56 9.46 62.35 3,600.36
Accrued expenses 660.30
Total 4,260.66

Ageing of Current Trade payables as on 31.03.2021: (` in crores)

Outstanding from the due date of payment
Particulars Less than More than
Not Due 1-2 years 2-3 years Total
1 year 3 years
(i) MSME - 49.84 - - - 49.84
(ii) Others 1,963.44 944.78 9.21 49.87 - 2,967.30
(iii) Disputed dues - MSME - - - - - -
(iv) Disputed dues - Others 13.32 - 1.37 22.67 0.45 37.81
1,976.76 994.62 10.58 72.54 0.45 3,054.95
Accrued expenses 636.26
Total 3,691.21

(` in crores)
Year Ended March 31, 2022 Year Ended March 31, 2021
23 Other Financial Liabilities
Interest Accrued but not due on borrowings and others 87.28 72.82
Unpaid Dividend Accounts (Refer note 11.6) 0.52 0.54
Other Payables
Interest Accrued on Trade Payables (Refer note 22.1) 0.10 0.52
Total 87.90 73.88
24 Provisions
Provision for Employee Benefits
Compensated absences (Refer note 20.2) 50.10 42.90
Gratuity (Refer note 20.1) 14.23 14.24
Total 64.33 57.14
25 Other Current Liabilities
TDS / Service Tax / Other payable 28.67 23.01
Goods and Service Tax payable - 6.54
Contract Liabilities
Mobilisation Advance from Customers 2,055.41 1,406.73
Advances from Customers 184.27 109.96
Advances from others 85.69 108.56
Total 2,354.04 1,654.80

100 NCC LIMITED

Notes forming part of the financial statements
(` in crores)

Year Ended March 31, 2022 Year Ended March 31, 2021
26 Revenue from Operations
Income from Contracts and Services 9,860.00 7,180.12
Other Operating Income 70.03 75.90
Total 9,930.03 7,256.02
27 Other Income
Interest Income
On Deposits and Others 16.14 18.45
On Loans and Advances 31.21 45.25
On Income Tax refund 8.32 7.62
On Others 4.75 6.97
Dividend Income 11.68 -
Net Gain / (Loss) on foreign currency transactions 3.53 1.14
Other Non-Operating Income
Rental Income from operating lease on investment property 1.62 4.17
Profit on Sale of Property, Plant and Equipment / Investment
2.32 19.37
Property (Net)
Miscellaneous Income 28.64 12.63
Total 108.21 115.60
28 Cost of Materials Consumed 3,393.62 2,383.17
29 Construction Expenses
Transport Charges 45.91 42.05
Operation and Maintenance
Machinery 383.26 331.73
Others 17.80 13.14
401.06 344.87
Hire Charges for Machinery and others 164.00 106.68
Power and Fuel 40.13 30.17
Technical Consultation 53.74 43.42
Royalties, Seigniorage and Cess 40.52 16.88
Other Expenses 402.45 282.27
Expected credit loss for unbilled revenue 30.01 10.36
730.85 489.78
Total 1,177.82 876.70

Annual Report 2021-22 101

Notes forming part of the financial statements
(` in crores)
Year Ended March 31, 2022 Year Ended March 31, 2021
30 Employee Benefits Expense
Salaries and Other Benefits 388.95 318.29
Contribution to Provident Fund and Other Funds (Refer note 20.1
28.65 24.69
and 30.1)
Staff Welfare Expenses 11.53 6.64
Total 429.13 349.62

30.1 Defined contribution plans

The Company made Provident Fund and Superannuation Fund contributions to defined contribution plans for qualifying
employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund
the benefits. The Company recognised ` 18.84 crores (31.03.2021: ` 16.47 crores) for Provident Fund contributions and
` Nil crores (31.03.2021: ` 0.02 crores) for Superannuation Fund contributions in the Statement of Profit and Loss. The
contributions payable to these plans by the Company are at rates specified in the rules of the schemes.
30.2 Refer note 20.1 and 20.2 for expenses recognised for gratuity and cost of compensated absences of employees.

(` in crores)

Year Ended March 31, 2022 Year Ended March 31, 2021
31 Finance Costs
Interest Expense on
Borrowings
Term Loans 15.80 32.19
Working Capital Demand Loans and Cash Credit 159.20 163.34
Mobilisation Advance 117.78 116.00
Others 27.30 9.51
320.08 321.04
Other Borrowing Costs
Commission on - Bank Guarantees 107.32 110.63
- Letters of Credit 22.02 14.64
129.34 125.27
Bank and Other Financial Charges 10.18 11.50
Total 459.60 457.81
32 Other Expenses
Rent 59.54 48.97
Travelling and Conveyance 21.51 15.33
Office Maintenance 27.66 21.40
Electricity Charges 8.10 8.18
Rates and Taxes 5.94 4.49
Consultation Charges 13.16 6.44
Postage, Telegrams and Telephones 2.92 2.94
Insurance 9.56 8.94
Printing and Stationery 5.12 4.37
Legal and Professional Charges 17.06 11.88
Auditors' Remuneration (Refer note 32.1) 1.88 1.48

102 NCC LIMITED

Notes forming part of the financial statements
(` in crores)
Year Ended March 31, 2022 Year Ended March 31, 2021
Directors' Sitting Fees 0.35 0.37
Trade Receivables / Advances written off 2.00 3.40
Provision for Doubtful Trade Receivables / Advances / Others 13.00 19.39
Tender Schedule Expenses 1.38 1.37
Donations 3.55 0.80
CSR Expenditure (Refer note 39) 10.67 12.60
Software Acquisition Expenses 4.90 2.70
Repairs & Maintenance 7.34 4.80
Digitization Expenses 6.79 -
Miscellaneous Expenses 10.14 6.33
Total 232.57 186.18
32.1 Auditors’ Remuneration
Statutory Audit fee 1.70 1.36
Certification fee 0.18 0.12
Total 1.88 1.48
33 Tax Expense
Current Tax 130.80 84.07
Earlier year taxes (net) (0.59) (76.70)
Deferred Tax (12.31) 70.21
Total 117.90 77.58

33.1 Tax expense for the year ended March 31, 2021 is after accounting of tax credit of ` 32.03 crores on receipt of intimation of
assessment from department for earlier year.
33.2 Reconciliation of tax expense to the accounting profit is as follows: (` in crores)
Year Ended March 31, 2022 Year Ended March 31, 2021
Accounting profit before tax 608.02 339.07
Tax expense at statutory tax rate at 25.168% 153.03 85.34
Adjustments:
Adjustments recognised in the current year in relation to the current tax
(2.79) (76.38)
of prior years
Effect of expenses that are not deductible in determining taxable profit 13.64 6.74
Effect of capital gains set off with unused capital losses (47.51) (0.23)
Reversal of MAT credit due to adoption of new tax rate - 26.71
Adjustments recognised in the current year in relation to the MAT credit /
- 23.53
reversal of DTA of prior years
Others including effect of higher tax rate in joint operations 1.53 11.87
(35.13) (7.76)
Tax expense reported in the Statement of Profit and Loss 117.90 77.58

33.3 Income tax credit / (expense) recognized in Other Comprehensive Income: (` in crores)
Year Ended Year Ended
March 31, 2022 March 31, 2021
Tax effect on actuarial gains/losses on defined benefit obligations 0.69 0.82

33.4 No additions made in the income tax assessments in the current year (31.03.2021: ` Nil).

Annual Report 2021-22 103

Notes forming part of the financial statements
34 Contingent Liabilities and Commitments (to the extent not provided for)
(i) Contingent Liability (` in crores)
As at As at
March 31, 2022 March 31, 2021
(a) Matters under litigation
Claims against the company not acknowledged as debt*
- Disputed sales tax / entry tax liability for which the Company preferred appeal 290.53 287.80
Disputed central excise duty relating to clearance of goods of LED division in favour of
- 0.46 0.46
Developers of SEZ, for which the Company has filed an appeal to CESTAT, Bangalore
- Disputed Service tax liability for which the Company preferred appeal 96.31 96.31
- Others 37.43 37.43
* interest, if any, not ascertainable after the date of order.
(b) Guarantees
Corporate Guarantees / Comfort Letter given to Banks for financial assistance
31.97 157.53
extended to Subsidiaries.
The Company has filed claims and has also filed counter claims in several legal disputes related to construction contracts and same are
pending before legal authorities. The Management does not expect any material adverse effect on its financial position.
(ii) Commitments (` in crores)
As at As at
March 31, 2022 March 31, 2021
Estimated amount of contracts remaining to be executed on capital account and not
(a) 108.59 1.61
provided for.
Future Export commitments on account of import of machinery and equipments at
(b) 1.76 1.76
concessional rate of duty under EPCG scheme

104 NCC LIMITED

Notes forming part of the financial statements
35. Related Party Transactions
i) Following is the list of related parties and relationships:
S.No Particulars S.No Particulars
List of entities over which control exist 37 Samashti Gas Energy Limited
A) Subsidiaries 38 NCC Infra Limited
1 NCC Infrastructure Holdings Limited 39 NCC Urban Homes Private Limited
2 NCC Urban Infrastructure Limited 40 NCC Urban Ventures Private Limited
3 NCC Vizag Urban Infrastructure Limited$$$ 41 NCC Urban Meadows Private Limited$
4 NCC Infrastructure Holdings Mauritius Pte Limited 42 NCC Urban Villas Private Limited$
5 Nagarjuna Construction Company International L.L.C. 43 Nagarjuna Suites Private Limited^^^
6 Nagarjuna Contracting Co. L.L.C. 44 OB Infrastructure Limited
7 Patnitop Ropeway and Resorts Limited@ 45 Savitra Agri Industrial Park Private Limited
8 Vaidehi Avenues Limited@@@@ B) Associates
9 NCC International Convention Centre Limited# 46 Paschal Form Work (India) Private Limited
10 Aster Rail Private Limited@@@@ 47 Nagarjuna Facilities Management Services L.L.C.
11 Pachhwara Coal Mining Private Limited 48 Tellapur Technocity (Mauritius)@@
12 Talaipalli Coal Mining Private Limited 49 Apollonius Coal and Energy Pte. Ltd.
Step-Down Subsidiaries 50 Ekana Sportz City Private Limited
13 Dhatri Developers & Projects Private Limited 51 Brindavan Infrastructure Company Limited
14 Sushanti Avenues Private Limited 52 Pondicherry Tindivanam Tollway Limited
15 Sushrutha Real Estate Private Limited C) Key Management Personnel
16 PRG Estates LLP 53 Sri. A.A.V. Ranga Raju
17 Thrilekya Real Estates LLP 54 Sri. A.S.N. Raju
18 Varma Infrastructure LLP 55 Sri. A.G.K. Raju
19 Nandyala Real Estates LLP 56 Sri. A.V.N. Raju
20 Kedarnath Real Estates LLP 57 Sri. J.V. Ranga Raju
21 AKHS Homes LLP 58 Sri. Utpal Hemendra Sheth
22 JIC Homes Private Limited 59 Smt. Renu Challu
23 Sushanti Housing Private Limited 60 Sri. Ravi Shankararamiah##
24 CSVS Property Developers Private Limited 61 Sri. Hemant Madhusudan Nerurkar
25 Vera Avenues Private Limited 62 Dr. Durga Prasad Subramanyam Anapindi
26 Sri Raga Nivas Property Developers LLP 63 Sri. Om Prakash Jagetiya$$
27 VSN Property Developers LLP 64 Sri. R.S. Raju^^
28 M A Property Developers Private Limited 65 Sri. K. Krishna Rao**
29 Vara Infrastructure Private Limited$ 66 Sri. M.V. Srinivasa Murthy
30 Sri Raga Nivas Ventures Private Limited^ D) Relatives of Key Management Personnel
31 Mallelavanam Property Developers Private Limited 67 Dr. A.V.S. Raju
32 Sradha Real Estates Private Limited$ 68 Smt. A. Satyanarayanamma
33 Siripada Homes Private Limited$ 69 Sri. N.R. Alluri
34 NJC Avenues Private Limited * 70 Sri. A. Srinivasa Rama Raju
35 Al Mubarakia Contracting Co. L.L.C. 71 Smt. BH. Kaushalya
36 NCCA International Kuwait General Contracts Company L.L.C. 72 Smt. J. Sridevi

Annual Report 2021-22 105

Notes forming part of the financial statements
S.No Particulars S.No Particulars
Enterprises owned or significantly influenced by
73 Smt. J. Sowjanya E)
key management personnel or their relatives
74 Smt. A. Arundhati 88 NCC Blue Water Products Limited
75 Smt. M. Swetha 89 NCC Finance Limited ###
76 Sri. J. Krishna Chaitanya Varma 90 Shyamala Agro Farms LLP####
77 Smt. A. Subhadra Jyotirmayi 91 Ranga Agri Impex LLP
78 Smt. A. Shyama 92 NCC Foundation
79 Smt. A. Suguna 93 Sirisha Projects Private Limited***
80 Sri. A. Sri Harsha Varma 94 Narasimha Developers Private Limited
81 Sri. S.R.K. Surya Srikrishna Raju 95 Avathesh Property Developers Private Limited***
82 Sri. A. Vishnu Varma 96 Arnesh Ventures Private Limited
83 Smt. A. Nikitha 97 AVSR Holdings Private Limited
84 Sri. U. Sunil 98 Sridevi Properties
85 Sri. P. Manoj Raj@@@ 99 Matrix Security and Surveillance Private Limited
86 Smt. A. Sravani 100 Jampana Constructions Private Limited
87 Smt. U Ramya 101 Shri Aruna Constructions Private Limited ****
@ Liquidated (voluntary) with effect from February 12, 2021.
# Struck off from the register of companies w.e.f June 22, 2021.
$ Struck off from the register of companies w.e.f April 09, 2021.
^ Struck off from the register of companies w.e.f December 02, 2021.
* Ceased to be Subsidiary with effect from July 27, 2020.
@@ Disslouted with effect from March 07, 2021.
## Key Management Person upto November 9, 2020.
Avathesh Property Developers Private Limited is merged with Sirisha Projects Private Limited with effect from April 1, 2020,
***
being the appointed date as per the scheme.
#### Converted into LLP with effect from June 28,2021.
$$ Key Management Person with effect from December 30, 2020.
^^ Key Management Person upto November 30, 2020.
** Key Management Person with effect from December 01, 2020.
@@@ With effect from August 14, 2020.
### Liquidated with effect from February 19, 2021.
$$$ Ceased to be Subsidiary with effect from March 31, 2022.
^^^ Struck off from the register of companies w.e.f January 31,2022.
@@@@ Merged with NCC Limited with effect from April 1, 2020, being the appointed date as per the scheme.
**** Ceased to be enterprises owned or significantly influenced by key management with effect from March 31, 2021.

106 NCC LIMITED

Notes forming part of the financial statements
(ii) Related Party transactions during the year are as follows: (` in crores)

Enterprises owned
and significantly
Subsidiaries Key Management
influenced by
S.No Particulars (including Step- Associates personnel and
key management
down Subsidiaries) relatives
personnel or their
relatives
2021-22 2020-21 2021-22 2020-21 2021-22 2020-21 2021-22 2020-21
1 Investment in Equity shares - 120.55 - - - - - -
2 Investments written-off - 1.07 - - - - - -
3 Advances written- off 0.99 - - - - - - -
4 Loans granted 105.77 20.35 - - - - - -
5 Loan repayment received 131.12 276.95 - - - - - -
6 Advances granted 0.99 4.33 - - - - 4.91 67.50
Advances Repayment received/
7 13.63 7.32 - - - - - 1.23
Adjusted
8 Advances repaid / adjusted - - - - - - 0.09 -
Mobilisation Advance recovered /
9 - - - - - - - 7.10
adjusted by the Company
10 Interest received/adjusted 14.87 45.02 - - - - - -
11 Remittance to Trade Payables - 0.70 0.86 - - - 3.88 13.41
12 Trade/Accounts Receivables realised - - - 0.24 - - - -
13 Other Operating Income 17.30 6.23 - - - - - -
14 Material Purchase & Services - - 0.51 0.43 - - - -
Purchase of Property, Plant and
15 - 15.00 - - - - - 0.12
Equipment / Investment property
16 Sale of Property, Plant and Equipment - - - 0.16 - - - -
17 Interest Income 29.79 45.03 - - -
18 Reimbursement of Expenses 1.11 1.10 - - 0.02 0.02 0.24 2.68
19 Sub-Contractors work bills - 7.18 - - - - 12.83 76.58
20 Remuneration (Including commission)*
Short-term employee benefits - - - - 22.67 17.42 - -
Post employee benefits - - - - 0.69 0.64 - -
21 Directors sitting fee and commission - - - - 0.85 0.67 - -
22 Other income 0.19 0.05 - - - - - -
Commission income on Corporate
23 8.74 - - - - - - -
Guarantees
24 Dividend Income 11.68 - - - - - - -
25 Rent expenses - 0.07 - - 0.70 0.70 10.27 10.10
Contribution towards Corporate Social
26 - - - - - - 5.41 -
Responsibility
27 Dividend paid - - - - 2.89 0.82 6.69 1.58
28 Reduction in Corporate Guarantees 157.04 109.21 - - - - - -
Corporate Guarantees / Comfort Letter
29 31.48 55.41 - - - - - -
given
* As the future liabilities for gratuity and leave encashment is provided on actuarial basis for the Company as a whole, the amount
pertaining to the Directors is not ascertainable, therefore not included above.

Annual Report 2021-22 107

Notes forming part of the financial statements
(iii) Related Party balances outstanding are as follows: (` in crores)
Enterprises owned
and significantly
Subsidiaries Key Management
influenced by
(including Step- Associates personnel and
key management
down Subsidiaries) relatives
S.No Particulars personnel or their
relatives
As at As at As at As at As at As at As at As at
March March March March March March March March
31, 2022 31, 2021 31, 2022 31, 2021 31, 2022 31, 2021 31, 2022 31, 2021
1 Debit Balances outstanding
NCC Urban Infrastructure Limited 22.59 149.88 - - - - - -
NCC Vizag Urban Infrastructure Limited - 192.09 - - - - - -
NCC Infrastructure Holdings Mauritius Pte. Limited 57.49 57.49 - - - - - -
Nagarjuna Construction Company International L.L.C 3.01 12.53 - - - - - -
Talaipalli Coal Mining Private Limited 0.14 0.12 - - - - - -
Paschal Form Work (India) Private Limited - - - 0.08 - - - -
Ekana Sportz City Private Limited - - 50.25 50.25 - - - -
Sridevi Properties - - - - - - 0.19 0.19
Jampana Construction Private Limited - - - - - - 3.57 11.30
Shri Aruna Constructions Private Limited - - - - - - - 5.65
Sri J V Ranga Raju - - - - 0.08 0.08 - -
Smt J Sowjanya - - - - 0.10 0.10 - -
Smt J.Sridevi - - - - 0.08 0.08 - -
Sri J.Krishna Chaitanya Varma - - - - 0.13 0.13 - -
2 Credit Balances outstanding - - - - - -
NCC Urban Infrastructure Limited 0.45 0.44 - - - - - -
Nagarjuna Facilities Management Services L.L.C - 0.25 0.25 - - - -
NCC Blue Water Products Limited - - - - - - - 0.05
Shyamala Agro Farms LLP - - - - - - 0.03 -
Jampana Construction Private Limited - - - - - - 0.75 0.83
Shri Aruna Constructions Private Limited - 12.75
Sridevi Properties - - - - - - 0.12 0.13
Matrix Security and Surveillance Pvt. Ltd - - - - - - 0.02 0.03
Sri. A.A.V. Ranga Raju* - - - - 2.68 2.25 - -
Sri. A.S.N. Raju* - - - - 1.42 1.11 - -
Sri. A.G.K. Raju* - - - - 1.42 1.12 - -
Sri. A.V.N. Raju - - - - 1.42 1.12 - -
Sri. J.V. Ranga Raju - - - - 0.34 0.39 - -
Sri. Hemant Madhusudan Nerurkar - - - - 0.14 0.09 - -
Smt. Renu Challu - - - - 0.09 0.05 - -
Dr. Durga Prasad Subramanyam Anapindi - - - - 0.14 0.09 - -
Sri. Ravi Shankararamiah - - - - - 0.03 - -
Sri. Om Prakash Jagetiya - - - - 0.09 0.02 - -
Sri . R.S. Raju - - - - - 0.05 - -
Sri, K. Krishna Rao - - - - 0.05 0.04 - -
Sri. M.V. Srinivasa Murthy - - - - 0.05 0.08 - -
Sri. S.R.K.Surya Srikrishna Raju - - - - 0.05 0.04 - -

108 NCC LIMITED

Notes forming part of the financial statements
(iii) Related Party balances outstanding are as follows: (` in crores)
Enterprises owned
and significantly
Subsidiaries Key Management
influenced by
(including Step- Associates personnel and
key management
down Subsidiaries) relatives
S.No Particulars personnel or their
relatives
As at As at As at As at As at As at As at As at
March March March March March March March March
31, 2022 31, 2021 31, 2022 31, 2021 31, 2022 31, 2021 31, 2022 31, 2021
Sri. A. Vishnu Varma - - - - 0.07 0.06 - -
Smt A. Nikhita - - - - 0.05 0.03 - -
Sri. P. Manoj Raj - - - - 0.03 0.01 - -
Sri. Sri Harsha Varma - - - - 0.04 0.03 - -
Sri. U Sunil - - - - 0.07 0.03 - -
Sri. J Krishna Chaitanya Varma - - - - 0.19 0.20 - -
Smt J.Sowjanya - - - - 0.05 0.06 - -
Smt J.Sridevi - - - - 0.03 0.03 - -
Smt. B.H. Kaushalya - - - - 0.02 0.03 - -
3 Corporate Guarantees / Comfort Letter given
Nagarjuna Construction Company International
0.49 102.12 - - - - - -
L.L.C
NCC Urban Infrastructure Limited 31.48 55.41 - - - - - -
* Refer note 18 and 21 for details of personal guarantee given by Directors.
(iv) Disclosure in respect of transactions which are more than 10% of the total transactions of the same type with related parties during
the year.
(` in crores)
Particulars 2021 - 22 2020 - 21
Investment in Equity shares
- NCC Urban Infrastructure Limited - 120.00
Investments written off
- Patnitop Ropeway and Resorts Limited - 1.07
Advances written off
- Nagarjuna Construction Company International L.L.C 0.99 -
Loans Granted
- NCC Urban Infrastructure Limited - 20.25
- NCC Vizag Urban Infrastructure Limited 100.58 -
Loan Repayment Received
- NCC Urban Infrastructure Limited 127.18 270.35
Advances Granted
- Jampana Construction Private Limited 4.91 21.61
- Shri Aruna Constructions Private Limited - 45.66
- Nagarjuna Construction Company International L.L.C 0.95 -
Advances Repayment Received / Adjusted
- Nagarjuna Construction Company International L.L.C 13.63 4.61
- Matrix Security and Surveillance Private Limited # - 1.13

Annual Report 2021-22 109

Notes forming part of the financial statements
(iv) Disclosure in respect of transactions which are more than 10% of the total transactions of the same type with related parties during
the year.
(` in crores)
Particulars 2021 - 22 2020 - 21
Advances repaid / adjusted
- NCC Blue Water Products Limited 0.09 -
Mobilisation Advance Recovered / Adjusted by the Company
- Shri Aruna Constructions Private Limited - 7.10
Interest Received
- NCC Urban Infrastructure Limited 13.21 44.95
- NCC Vizag Urban Infrastructure Limited 1.66 -
Remittance to Trade Payables
- Jampana Construction Private Limited 3.86 3.51
- Shri Aruna Constructions Private Limited - 9.91
- Paschal Form Work (India) Private Limited 0.86 -
Trade / Accounts Receivables realised
- Brindavan Infrastructure Company Limited - 0.24
Other Operating Income
- Pachhwara Coal Mining Private Limited 17.30 6.23
Material Purchases and Services
- Paschal Form Work (India) Private Limited 0.51 0.43
Purchase of Property Plant and Equipment / Investment Property
- NCC Urban Infrastructure Limited - 15.00
Sale of Property Plant and Equipment
- Paschal Form Work (India) Private Limited - 0.16
Interest Income
- NCC Urban Infrastructure Limited 13.21 44.95
- NCC Vizag Urban Infrastructure Limited 16.58 -
Reimbursement of Expenses
- Nagarjuna Construction Company International LLC 1.09 1.07
- Shri Aruna Constructions Private Limited - 1.60
- Matrix Security and Surveillance Private Limited# - 0.64
Sub-Contractors Work Bills
- Jampana Construction Private Limited 12.83 11.85
- Shri Aruna Constructions Private Limited - 64.61
Remuneration (Including Commission)
- Sri A.A.V. Ranga Raju 6.41 5.01
- Sri A.S.N. Raju 3.28 2.57
- Sri A.G.K. Raju 3.27 2.56
- Sri A.V.N. Raju 3.22 2.53
Directors Sitting Fee and Commission
- Sri. Hemant Madhusudan Nerurkar 0.23 0.19
- Smt. Renu Challu 0.17 0.13

110 NCC LIMITED

Notes forming part of the financial statements
(iv) Disclosure in respect of transactions which are more than 10% of the total transactions of the same type with related parties during
the year.
(` in crores)
Particulars 2021 - 22 2020 - 21
- Dr. Durga Prasad Subramanyam Anapindi 0.24 0.20
- Sri. Om Prakash Jagetiya$ 0.17 -
Other Income
- NCC Urban Infrastructure Limited 0.04 0.05
- NCC Vizag Urban Infrastructure Limited 0.15 -
Commission Income on Corporate Guarantees
- Nagarjuna Construction Company International LLC 8.74 -
Dividend Income
- Pachhwara Coal Mining Private Limited 11.68 -
Rent Expenses
- Sirisha Projects Private Limited 9.47 9.33
Dividend Paid
- AVSR Holdings Private Limited 5.02 1.22
- Sri A.A.V. Ranga Raju# - 0.27
- Sirisha Projects Private Limited 1.49 0.33
Contribution towards Corporate Social Responsibility
- NCC Foundation 5.41 -
Reduction in Corporate Guarantees
- Nagarjuna Construction Company International LLC 101.63 109.21
- NCC Urban Infrastructure Limited 55.41 -
Corporate Guarantees / Comfort Letter given
- NCC Urban Infrastructure Limited 31.48 55.41
$ Transactions occurred during the previous year with the party do not exceed 10% of the total transaction value. Hence, amount not
disclosed.
# Transactions occurred during the year with the party do not exceed 10% of the total transaction value. Hence, amount not disclosed.
36 Segment Reporting:
In accordance with Ind AS 108 “Operating Segments”, segment information has been given in the consolidated financial statements
of NCC Limited and therefore no separate disclosure on segment information is given in these financial statements.
37 Earnings per share:

Year Ended Year Ended

March 31, 2022 March 31, 2021
Net Profit after tax available for equity shareholders (` in crores) 490.12 261.49
Weighted Average number of equity shares for Basic EPS (Nos) 609,846,588 609,846,588
Weighted Average number of equity shares for Diluted EPS (Nos) 614,097,235 610,598,660
Face value per share (`) 2.00 2.00
Basic EPS (`) 8.04 4.29
Diluted EPS (`) 7.98 4.28

Annual Report 2021-22 111

Notes forming part of the financial statements
38 Financial instruments:
38.1 Capital management
The Company’s capital management objective is to maximise the total shareholder return by optimising cost of capital through
flexible capital structure that supports growth. Further, the Company ensures optimal credit risk profile to maintain / enhance credit
rating.
The Company determines the amount of capital required on the basis of annual operating plan and long-term strategic plans. The
funding requirements are met through internal accruals and long-term/short-term borrowings. The Company monitors the capital
structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.
For the purpose of capital management, capital includes issued equity capital, securities premium and all other revenue reserves. Net
debt includes all long and short-term borrowings as reduced by cash and cash equivalents.
The following table summarises the capital of the Company: (` in crores)

As at As at
March 31, 2022 March 31, 2021
Equity 5,803.17 5,364.66
Short-term borrowings and current portion of long-term borrowings 1,102.05 1,690.32
Long-term borrowings 82.03 98.60
Cash and cash equivalents (235.39) (169.66)
Net debt 948.69 1,619.25
Total capital (equity + net debt) 6,751.86 6,983.91
Gearing ratio 0.16 0.30

38.2 Categories of financial instruments (` in crores)

As at As at
March 31, 2022 March 31, 2021
Financial assets
Measured at fair value through profit or loss (FVTPL)
Mandatorily measured:
Equity investments in other entities 1.52 3.70
Investments in Mutual funds 1.07 15.03
Measured at amortised cost
Cash and bank balances 558.54 438.62
Other financial assets at amortised cost 3,325.83 3,289.76
Measured at cost
Investments in equity instruments in subsidiaries and associates
a) Equity shares 757.73 845.12
b) Debentures 135.24 135.24
4,779.93 4,727.46
Financial liabilities
Measured at amortised cost 5,552.55 5,576.97

112 NCC LIMITED

Notes forming part of the financial statements
38.3 Financial risk management objectives
The Company’s business activities exposed to a variety of financial risk viz., market risk, credit risk and liquidity risk. The Company’s
focus is to estimate a vulnerability of financial risk and to address the issue to minimize the potential adverse effects of its financial
performance.
i) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices. The Company’s exposure to market risk is primarily on account of the following:
• Interest rate risk
Out of total borrowings, large portion represents short term borrowings (WCDL) and the interest rate primarily basing
on the Company’s credit rating and also the changes in the financial market. Company continuously monitoring over all
factors influence rating and also factors which influential the determination of the interest rates by the banks to minimize
the interest rate risks.
The Company’s exposure to changes in interest rates relates primarily to the Company’s outstanding floating rate
borrowings. Out of the total borrowings of ` 1,184.08 crores (31.03.2021: ` 1,788.92 crores) as of 31.03.2022, the
floating rate borrowings are ` 1,052.71 crores (31.03.2021: ` 1,469.53 crores). For every 50 base points change in the
interest rate when no change in other variables, it will affect the profit before tax by ` 5.26 crores for the year ended
March 31, 2022 (31.03.2021: ` 7.35 crores).
• Foreign currency risk
The Company has several balances in foreign currency and consequently the Company is exposed to foreign exchange
risk. The exchange rate between the rupee and foreign currencies has changed substantially in recent years, which has
affected the results of the Company, and may fluctuate substantially in the future. The Company evaluates exchange rate
exposure arising from foreign currency transactions and follows established risk management policies.
We summarize below the financial instruments which have the foreign currency risks as at March 31, 2022 and March 31,
2021.
(a) The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities
based on gross exposure at the end of the reporting period is as under:

Liabilities Assets
Currency As at As at As at As at
March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021
USD (crores) 4.23 4.24 5.89 5.91
INR (` in crores) 320.60 310.80 446.56 443.03
OMR (crores) - - 0.01 0.06
OMR (` in crores) - - 1.24 11.39
EURO (crores) 0.08 - - -
EURO (` in crores) 6.92 - - -
GBP (crores) 0.10 - - -
GBP (` in crores) 10.20 - - -
The Company doesn’t have any forex derivative instrument, hence all the above balances are unhedged.

(b) Foreign currency sensitivity analysis:

The Company is not substantially exposed for business activities in foreign currency except in the form of investments and loans
into its foreign subsidiaries and associates. Hence, the impact of any significant fluctuation in the exchange rates is not expected
to have a material impact of the operating profits of the Company.

Annual Report 2021-22 113

Notes forming part of the financial statements
(` in crores)

As at As at
Currency USD impact on:
March 31, 2022 March 31, 2021
Impact of `1 strengthening against US Dollar on profit or (loss) for the year (1.66) (1.67)
Impact of `1 weakening against US Dollar on profit or (loss) for the year 1.66 1.67
Impact of `1 strengthening against US Dollar on Equity as at the end of the reporting
(1.66) (1.67)
period
Impact of `1 weakening against US Dollar on Equity as at the end of the reporting
1.66 1.67
period
ii) Credit risk management
Credit Risk refers to the risk for a counter party default on its contractual obligation resulting a financial loss to the Company.
Credit risk on trade receivables and contract assets is limited as the customers of the Company mainly consists of the Government
promoted entities having a strong credit worthiness. For doubtful receivables the company uses a provision matrix to compute
the expected credit loss allowances for trade receivables and contract assets. In assessing the recoverability of the trade
receivables and contracts assets, management’s judgement involves consideration of aging status, evaluation of litigations and
the likelihood of collection based on the terms of the contract. Refer note 6, 10.3, 15 and 15.4 for provision made against trade
receivable and contract assets.
Credit risk on account of investments, loans (including interest) and other receivables from group companies / related parties
has been adequately provided in the books. The cash and bank balances (excluding cash on hand) are held with banks and
financial institutions having good credit rating.
iii) Liquidity risk management
The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by
continuous planning and monitoring of actual cash flows and by matching the maturity profiles of financial assets and liabilities.
The table below provides details regarding the contractual maturities of financial liabilities including estimated interest payments as
at March 31, 2022:
(` in crores)
Payable Total
Carrying
contracted
amount Within 1 year 1-3 year Beyond 3 years cash flows
Accounts payable and acceptances 4,280.57 4,062.13 176.37 42.07 4,280.57
Borrowings and interest accrued 1,271.36 1,189.33 80.00 2.03 1,271.36
Other financial liabilities 0.62 0.62 - - 0.62
Total 5,552.55 5,252.08 256.37 44.10 5,552.55
The table below provides details regarding the contractual maturities of financial liabilities including estimated interest payments as
at March 31, 2021:
(` in crores)
Payable Total
Carrying
contracted
amount Within 1 year 1-3 year Beyond 3 years cash flows
Accounts payable and acceptances 3,714.17 3,482.64 186.72 44.81 3,714.17
Borrowings and interest accrued 1,861.74 1,763.07 92.68 5.99 1,861.74
Other financial liabilities 1.06 1.06 - - 1.06
Total 5,576.97 5,246.77 279.40 50.80 5,576.97

114 NCC LIMITED

Notes forming part of the financial statements
38.4 Fair value measurements:
Some of the Company’s financial assets and financial liabilities are measured at fair value at the end of the reporting period. The
following table gives information about how the fair values of these financial assets and financial liabilities are determined (in
particular, the valuation techniques and inputs used):
(` in crores)
Fair Value as at* Valuation
Fair value
Financial Assets / Financial Liabilities As at As at techniques &
hierarchy
March 31, 2022 March 31, 2021 key inputs used
Investments in Mutual funds at FVTPL 1.07 15.03 Level 1 Refer note 2
Investments in unquoted equity instruments at FVTPL 1.52 3.70 Level 2 Refer note 3
*Positive value denotes financial asset (net) and negative value denotes financial liability (net).
Notes:
(1) There were no transfers between Level 1 and 2 in the period.
(2) The Level 1 financial instruments are measured using quotes in active market.
(3) The following table shows the valuation technique and key input used for Level 2:

Financial Instrument Valuation Technique Key Inputs used

Government notified value of the lands is taken as fair market value in
Unquoted Equity Instruments Net worth method
the absence of reliable comparable data.

Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are required)
(` in crores)

As at As at
March 31, 2022 March 31, 2021
Carrying amount Fair value Carrying amount Fair value
Financial assets
Financial assets at amortised cost:
- Trade receivables 2,492.23 2,492.23 2,660.27 2,660.27
- Cash and cash equivalents 235.39 235.39 169.66 169.66
- Bank balances other than cash and cash equivalents 323.15 323.15 268.96 268.96
- Loans 407.81 407.81 329.99 329.99
- Other financial assets 425.79 425.79 299.50 299.50
Financial liabilities
Financial liabilities at amortised cost:
- Borrowings 1,184.08 1,184.08 1,788.92 1,788.92
- Trade payables 4,280.57 4,280.57 3,714.17 3,714.17
- Other financial liabilities 87.90 87.90 73.88 73.88
The fair values of the financial assets and financial liabilities included above have been determined in accordance with generally accepted
pricing models.

Annual Report 2021-22 115

Notes forming part of the financial statements
39 Corporate Social Responsibility: (` in crores)

March 31, 2022 March 31, 2021

a) Gross amount required to be spent by the Company during the year 10.67 10.96
b) Amount approved by the Board to be spent during the year 10.68 13.17*
* Including the unspent amount pertains to the year ended March 31, 2020.
c) Amount spent during the year ended: (` in crores)

March 31, 2022 March 31, 2021

Particulars
In cash Yet to be paid Total In cash Yet to be paid Total
i) Construction/acquisition of any asset - - - 0.26 - 0.26
ii) On purposes other than (i) above 8.54 - 8.54 4.14 - 4.14
Total 8.54 - 8.54 4.40 - 4.40

d) Details related to spent / unspent obligations: (` in crores)

Particulars March 31, 2022 March 31, 2021

i) Spent for CSR activities (for On going project ` 0.04 crores (31.03.2021: ` 2.96 crores)
1.00 4.10
during the year ended March 31, 2022)
ii) Contribution 7.54 0.30
iii) Unspent amount in relation to:
- Ongoing project * 2.14 8.77
- Other than ongoing project - -
Total 10.68 13.17
* Unspent amount of ` 2.14 crores (31.03.2021: ` 8.77 crores is deposited in the separate bank account on April 29, 2021)
deposited in the separate bank account on April 30, 2022.
e) Others: (` in crores)

Particulars March 31, 2022 March 31, 2021

Identification of the Govt schools and colleges for
Unable to execute the projects due
i) Reason for shortfall implementation of the project in the State of Uttar
to Covid-19.
Pradesh was delayed because of the state election.
Rural Development, Education, Health care and Rural Development, Education,
ii) Nature of CSR activities
Skill development. Health care and Skill development.
iii) Details of related party transactions
in relation to CSR expenditure as
per relevant Accounting Standard -
Contribution to NCC Foundation in 5.41
relation to CSR expenditure
40 The exceptional items for the year ended March 31, 2022 is ` 145.64 (March 31, 2021 is ` Nil ), pertains to Profit on sale of stake in
the Subsidiary Company, NCC Vizag Urban Infrastructure Limited ,additional area allotted to NCC Limited on approval of revised plan
as per the contractual terms in relation to Investment property under construction and provision made for impairment of investment.
41 Consequent to the encashment of Bank Guarantees (BGs) of ` 343.10 crores in the year 2017-18 by one of the customer (Sembcorp
Energy India Limited), NCCL invoked the arbitration clause and submitted a claim of ` 1,571.41 crores towards refund of retention
money, refund of BGs amount, payment of pending bills, additional works done and cost incurred on prolongation of the project
by the customer. Against which, the customer has filed a counter claim of ` 1,071.46 crores towards liquidated damages, turbine
replacement, balance works, etc. As per the management assessment and legal advise, no provision is required for the subject
matter and arbitration proceedings are expected to be completed within a year’s time.

116 NCC LIMITED

Notes forming part of the financial statements
42 Deferred tax assets (Net):
Significant components of deferred tax (liabilities) / assets for the year ended March 31, 2022: (` in crores)
As at As at
March 31, 2022 March 31, 2021
Deferred tax (liabilities) / assets in relation to:
Property, plant and equipment (5.37) (12.51)
Provision for doubtful trade receivables, contract assets, advances and others 50.41 48.17
Provision for employee benefits 31.32 27.70
Deferment in recognisition of income (22.22) (22.22)
Total 54.14 41.14

42.1 Unrecognised deductible temporary differences, unused tax losses and unused tax credits: (` in crores)
As at As at
March 31, 2022 March 31, 2021
Deductible temporary differences, unused tax losses and unused tax credits for which no
deferred tax assets have been recognised are attributable to the following:
- Long-term capital loss 64.43 613.57
43 Amounts included in contract liabilities at the beginning of the year recognised as revenue in the current year of ` 533.29 crores
(31.03.2021: ` 721.14 crores).
Change in the contract assets and contract liabilities as at March 31, 2022 from March 31, 2021 is on account of increase in
operations of the Company.
44 Reconciling the amount of revenue recognised in the statement of profit and loss with the contracted price:
There is no difference in the contract price negotiated and the revenue recognised in the statement of profit and loss for the current
year. There is no significant revenue recognised in the current year from performance obligations satisfied in previous periods.
45 Performance obligation:
The transaction price allocated to the remaining performance obligations (excluding non-moving orders) is ` 36,303 crores
(31.03.2021: ` 36,239 crores), which will be recognised as revenue over the respective project durations. Generally the project
duration of contracts with customers is ranging 1 to 3 years.
46 Pursuant to the Scheme of Amalgamation approved by the Hon’ble National Company Law Tribunal (NCLT), Hyderabad, vide order
dated August 26, 2021, Aster Rail Private Limited and Vaidehi Avenues Limited (wholly owned subsidiaries) have merged with the
Company, with effect from April 1, 2020, being the appointed date as per the scheme.
This being a common control business combination, the financial information of the wholly owned subsidiaries is included in the
financial results of the Company and has been restated for comparative purpose from the appointed date and the impact of this
restatement is not material.
The Scheme of Arrangement have been accounted for in the books of account of the Company ‘in accordance with the Scheme’ and
‘in accordance with accounting standards’

Annual Report 2021-22 117

Notes forming part of the financial statements
Details of amalgamating companies: (` in crores)

Aster Rail Private Vaidehi Avenues

Name of the amalgamating Companies
Limited Limited
Date on which the transferor obtains control of the transferee 01.04.2020 01.04.2020
% of holding by transferor 100% 100%
No of shares issued as consideration Nil Nil
the amount of any difference between the consideration and the value of net identifiable 1.55 Nil
assets acquired,
- and the treatment thereof. accounted in Nil
Capital Reserve
47 The trade receivables and contract assets includes an amount of ` 189.52 crores (31.03.2021: ` 254.15 crores) (net of mobilisation
advance and provisions) relating to the Amaravati Capital City projects in the state of Andhra Pradesh. These works were commenced
and were in good progress till May 2019. However, Subsequently, there is slow movement of execution of the work / payment
in these projects. Management based on its internal assessments and discussions with the agencies is of the view that no further
provision is required in this regard.
48 Estimation of uncertainties relating to the global health pandemic from COVID-19:
The Company has assessed the possible impact of COVID-19 pandemic on its operations, liquidity position and recoverability of its
asset balances as at March 31, 2022 based on the internal and external sources of information upto the date of approval of these
audited standalone financial statements. The Management will continue to monitor any material changes to the future economic
conditions.
49 Additional Regulatory Information:

FY FY % of Reasons for change in the

S.No Ratio Numerator Denominator
2021-22 2020-21 change ratio by more than 25%
Current Current
i) Current Ratio 1.36 1.34 2%
Assets Liabilities
The collections from clients are improved and
Shareholder’s
ii) Debt-Equity Ratio Total Debt 0.20 0.33 -39% used for repayment of working capital loans,
Equity
resulted in decline in debt.
Net Profit +
The collections from clients are improved and
Debt Service Depreciation
iii) Debt Service 1.83 1.20 53% used for repayment of working capital loans,
Coverage Ratio + Interest
resulted in decline in debt.
expense
ROE increased partly on account of profit from
Average
Return on Equity operations due to higher turnover and partly
iv) Net Profit Shareholder’s 8.78% 5.00% 76%
Ratio on account of profit on sale of investment in
Equity
Subsidiary Company.
Inventory Revenue from Average
v) 15.11 13.93 8%
turnover days Operations Inventory
Trade Receivables Revenue from Average Trade The increase mainly on account of good
vi) 3.85 2.75 40%
turnover days Operations Receivables collections from the client in FY 2021-22.
Expenses
Trade payables Average Trade
vii) for Trade 3.88 3.23 20%
turnover days Payables
payables
Net capital Revenue from Working
viii) 3.49 2.97 17%
turnover days Operations Capital

118 NCC LIMITED

Notes forming part of the financial statements
FY FY % of Reasons for change in the
S.No Ratio Numerator Denominator
2021-22 2020-21 change ratio by more than 25%
Net Profit increased primarily on account
Revenue from
ix) Net profit ratio Net Profit 4.94% 3.60% 37% of profit on sale of investment in Subsidiary
Operations
Company.
PBT after
Exceptional On account of profit from operations due to
Return on Capital Net Worth +
x) Items + 11.21% 7.47% 50% higher turnover and partly on account of profit
employed Total Debt
Interest on sale of investment in Subsidiary Company.
expense

50 No charges are pending for registration with Registrar of Companies (ROC) beyond the statutory period.
51 No transactions made with the Struck off Companies in the current year (31.03.2021: ` Nil).
52 Previous period’s figures have been regrouped wherever necessary to conform to current period’s presentation.
53 Approval of financial statements:
The financial statements were approved for issue by the Board of Directors on May 11, 2022.

For S.R. BATLIBOI & ASSOCIATES LLP For and on behalf of the Board
ICAI Firm Registration No. 101049W/E300004
CHARTERED ACCOUNTANTS

per NAVNEET RAI KABRA K. KRISHNA RAO A.A.V. RANGA RAJU

Partner E.V.P (F&A) / CFO Managing Director / CEO
Membership No. 102328 (DIN No: 00019161)

M.V. SRINIVASA MURTHY A.G.K. RAJU

Company Secy. & E.V.P (Legal) Executive Director
(DIN No: 00019100)
Hyderabad, May 11, 2022

Annual Report 2021-22 119

CONSOLIDATED FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT
To the Members of
NCC Limited
Report on the Audit of the Consolidated Ind AS Financial
Statements
Opinion Key Audit Matters
We have audited the accompanying consolidated Ind AS financial Key audit matters are those matters that, in our professional
statements of NCC Limited (hereinafter referred to as “the Holding judgment, were of most significance in our audit of the consolidated
Company”), which includes 5 branches and 30 joint operations and Ind AS financial statements for the financial year ended March 31,
its subsidiaries (the Holding Company and its subsidiaries together 2022. These matters were addressed in the context of our audit
referred to as “the Group”) and its associates comprising of the of the consolidated Ind AS financial statements as a whole, and
consolidated Balance sheet as at March 31, 2022, the consolidated in forming our opinion thereon, and we do not provide a separate
Statement of Profit and Loss, including the statement of other opinion on these matters. For each matter below, our description
comprehensive income, the consolidated Cash Flow Statement of how our audit addressed the matter is provided in that context.
and the consolidated Statement of Changes in Equity for the
We have determined the matters described below to be the key
year then ended, and notes to the consolidated Ind AS financial
audit matters to be communicated in our report. We have fulfilled
statements, including a summary of significant accounting policies
the responsibilities described in the Auditor’s Responsibilities for
and other explanatory information (hereinafter referred to as “the
the Audit of the Consolidated Ind AS Financial Statements section
consolidated Ind AS financial statements”).
of our report, including in relation to these matters. Accordingly,
In our opinion and to the best of our information and according our audit included the performance of procedures designed to
to the explanations given to us and based on the consideration of respond to our assessment of the risks of material misstatement of
reports of the branch auditors and other auditors on the separate the consolidated Ind AS financial statements. The results of audit
financial statements and on the other financial information of the procedures performed by us and by other auditors of components
subsidiaries, associates, branches and joint operations, referred to not audited by us, as reported by them in their audit reports
in the Other Matter paragraph below, the aforesaid consolidated furnished to us by the management, including those procedures
Ind AS financial statements give the information required by the performed to address the matters below, provide the basis for our
Companies Act, 2013, as amended (“the Act”) in the manner audit opinion on the accompanying consolidated Ind AS financial
so required and give a true and fair view in conformity with the statements.
accounting principles generally accepted in India, of the consolidated
state of affairs of the Group and its associates as at March 31,
2022, their consolidated profit including other comprehensive loss,
their consolidated cash flows and the consolidated statement of
changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the consolidated Ind AS financial
statements in accordance with the Standards on Auditing (SAs),
as specified under section 143(10) of the Act. Our responsibilities
under those Standards are further described in the ‘Auditor’s
Responsibilities for the Audit of the Consolidated Ind AS Financial
Statements’ section of our report. We are independent of the
Group and its associates in accordance with the ‘Code of Ethics’
issued by the Institute of Chartered Accountants of India together
with the ethical requirements that are relevant to our audit of the
consolidated Ind AS financial statements under the provisions of
the Act and the Rules thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and
the Code of Ethics. We believe that the audit evidence we and
other auditors, referred to in Other Matter paragraph below, have
obtained is sufficient and appropriate to provide a basis for our
audit opinion on the consolidated Ind AS financial statements.

Annual Report 2021-22 121

 Key audit matters How our audit addressed the key audit matters
Trade receivables and contract assets of the Holding Company
Total trade receivables and total contract assets of the Holding Our audit procedures in respect of the Holding Company amongst
Company amounting to ` 2,492.23 crores and ` 4,628.25 crores others included the following:
respectively, represents approximately 49.25% of the total assets
• We understood and tested on sample basis the design and
of the Group as at March 31, 2022.
operating effectiveness of management controls over the
In assessing the recoverability of the aforesaid balances and recognition and the recoverability of the trade receivables and
determination of allowance for expected credit loss, management’s contract assets.
judgement involves consideration of aging status, historical payment
• We performed test of details, and tested relevant contracts,
records, evaluation of litigations, the likelihood of collection based
documents and subsequent settlements for material trade
on the terms of the contract and the credit information of its
receivable balances and amounts included in contract assets
customers.
that are due on performance of future obligations.
Management estimation is required in the measurement of work
• We tested the aging of trade receivables at the year end.
completed as at year end for recognition of unbilled revenue.
• We performed test of details and tested relevant contracts
We considered this as key audit matter due to the materiality of
and documents with specific focus on measurement of work
the amounts and significant estimates and judgements as stated
completed at the year end for material unbilled revenue
above.
balances included in contract asset.
• We performed additional procedures, in respect of material
over-due trade receivables and long outstanding contract
assets, i.e. tested historical payment records, correspondence
with customers and legal advice obtained by the management
on litigations from legal experts.
• We evaluated the competence, capabilities and objectivity of
the aforesaid legal experts
• We performed additional procedures in respect of balances
disclosed in note 57, which include review of communications
to/ from customers, physical inspection of work done in
respect of unbilled revenue, verification of last bills certified,
etc.
• We assessed the allowance for expected credit loss made by
management.
Indirect tax litigations of the Holding Company
The Holding Company is subject to assessments by tax authorities Our audit procedures in respect of the Holding Company amongst
on various indirect tax matters resulting into litigations/disputes others included the following:
(Significant portion of the amounts disclosed in note 37(i)(a) to
• We obtained list of indirect tax litigations as at March 31,
the consolidated Ind AS financial statements are from the Holding
2022 from the management.
Company).
• We discussed the matters with the management to understand
The tax matters involve material amounts which are at various
the possible outcome of these disputes.
stages and the proceedings take significant time to resolve.
• We involved our experts to review the management’s
Management exercises significant judgement in assessing the
assessment of the possible outcome of the disputes relating
financial impact of the tax matters due to the complexity of the
to indirect tax litigations.
cases and involvement of various tax authorities.
• We assessed management’s assumptions and estimates in
Accordingly, we have identified this as a key audit matter.
respect of contingent liability disclosure in note 37(i)(a) to the
accompanying consolidated Ind AS financial statements.

122 NCC LIMITED

Key audit matters How our audit addressed the key audit matters
Litigation on sale of investment
The statutory auditors of NCC Infrastructure Holdings Limited The procedures performed by the auditors of NCCIHL, as reported
(‘NCCIHL’), a subsidiary of the Holding Company have reported by them, included the following:
litigation on sale of investment as a key audit matter as follows: • Reviewed the relevant documents regarding the litigation in
NCCIHL has ongoing litigation with respect to sale of its investment particular the arbitration award, the claims and counter claims
in a subsidiary. For details of the litigation refer Note No. 43 of the raised by the parties as well as the opinion from the in-house
accompanying consolidated Ind AS financial statements. legal and claims team to assess the adequacy of the provision
made.
Management’s assessment of the outcome of the aforesaid
• Understood and tested the design and operating effectiveness
litigation has been identified as a key audit matter due to the
of management control over assessment of the outcome of
materiality of the potential obligation as it requires significant
the litigation.
judgment in assessing the outcome of the litigation and provision
to be made towards aforesaid litigation. • Discussed and understood various steps being taken by
management to resolve the dispute.

Information Other than the Financial Statements and controls, that were operating effectively for ensuring the accuracy
Auditor’s Report Thereon and completeness of the accounting records, relevant to the
preparation and presentation of the consolidated Ind AS financial
The Holding Company’s Board of Directors is responsible for the
statements that give a true and fair view and are free from material
other information. The other information comprises the information
misstatement, whether due to fraud or error, which have been
included in the Annual report, but does not include the consolidated
used for the purpose of preparation of the consolidated Ind AS
Ind AS financial statements and our auditor’s report thereon.
financial statements by the Directors of the Holding Company, as
Our opinion on the consolidated Ind AS financial statements does aforesaid.
not cover the other information and we do not express any form of
In preparing the consolidated Ind AS financial statements, the
assurance conclusion thereon.
respective Board of Directors of the companies included in the
In connection with our audit of the consolidated Ind AS financial Group and of its associates are responsible for assessing the ability
statements, our responsibility is to read the other information and, of the Group and of its associates to continue as a going concern,
in doing so, consider whether such other information is materially disclosing, as applicable, matters related to going concern and
inconsistent with the consolidated Ind AS financial statements or using the going concern basis of accounting unless management
our knowledge obtained in the audit or otherwise appears to be either intends to liquidate the Group or to cease operations, or has
materially misstated. If, based on the work we have performed, no realistic alternative but to do so.
we conclude that there is a material misstatement of this other
Those respective Board of Directors of the companies included in
information, we are required to report that fact. We have nothing
the Group and of its associates are also responsible for overseeing
to report in this regard.
the financial reporting process of the Group and of its associates.
Responsibilities of Management for the Consolidated Ind AS
Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements
Ind AS Financial Statements
The Holding Company’s Board of Directors is responsible for the
Our objectives are to obtain reasonable assurance about whether
preparation and presentation of these consolidated Ind AS financial
the consolidated Ind AS financial statements as a whole are free
statements in terms of the requirements of the Act that give a true
from material misstatement, whether due to fraud or error, and
and fair view of the consolidated financial position, consolidated
to issue an auditor’s report that includes our opinion. Reasonable
financial performance including other comprehensive loss,
assurance is a high level of assurance, but is not a guarantee that
consolidated cash flows and consolidated statement of changes
an audit conducted in accordance with SAs will always detect a
in equity of the Group including its associates in accordance with
material misstatement when it exists. Misstatements can arise
the accounting principles generally accepted in India, including the
from fraud or error and are considered material if, individually or
Indian Accounting Standards (Ind AS) specified under section 133
in the aggregate, they could reasonably be expected to influence
of the Act read with the Companies (Indian Accounting Standards)
the economic decisions of users taken on the basis of these
Rules, 2015, as amended. The respective Board of Directors of
consolidated Ind AS financial statements.
the companies included in the Group and of its associates are
responsible for maintenance of adequate accounting records in As part of an audit in accordance with SAs, we exercise professional
accordance with the provisions of the Act for safeguarding of judgment and maintain professional skepticism throughout the
the assets of the Group and of its associates and for preventing audit. We also:
and detecting frauds and other irregularities; selection and
• Identify and assess the risks of material misstatement of the
application of appropriate accounting policies; making judgments
consolidated Ind AS financial statements, whether due to fraud
and estimates that are reasonable and prudent; and the design,
or error, design and perform audit procedures responsive to
implementation and maintenance of adequate internal financial

Annual Report 2021-22 123

 those risks, and obtain audit evidence that is sufficient and We also provide those charged with governance with a statement
appropriate to provide a basis for our opinion. The risk of that we have complied with relevant ethical requirements regarding
not detecting a material misstatement resulting from fraud is independence, and to communicate with them all relationships
higher than for one resulting from error, as fraud may involve and other matters that may reasonably be thought to bear on our
collusion, forgery, intentional omissions, misrepresentations, independence, and where applicable, related safeguards.
or the override of internal control. From the matters communicated with those charged with
• Obtain an understanding of internal control relevant to the governance, we determine those matters that were of most
audit in order to design audit procedures that are appropriate significance in the audit of the consolidated Ind AS financial
in the circumstances. Under section 143(3)(i) of the Act, we statements for the financial year ended March 31, 2022 and are
are also responsible for expressing our opinion on whether therefore the key audit matters. We describe these matters in our
the Holding Company has adequate internal financial controls auditor’s report unless law or regulation precludes public disclosure
with reference to consolidated Ind AS financial statements in about the matter or when, in extremely rare circumstances, we
place and the operating effectiveness of such controls. determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably
• Evaluate the appropriateness of accounting policies used be expected to outweigh the public interest benefits of such
and the reasonableness of accounting estimates and related communication.
disclosures made by management.
Other Matter
• Conclude on the appropriateness of management’s use of the (a) We did not audit the financial statements and other financial
going concern basis of accounting and, based on the audit information, in respect of 40 subsidiaries, 11 joint operations
evidence obtained, whether a material uncertainty exists and 4 branches, whose financial statements include total
related to events or conditions that may cast significant doubt assets of ` 2,093.91 crores as at March 31, 2022, total
on the ability of the Group and its associates to continue as revenues of ` 1,512.57 crores and net cash inflows of
a going concern. If we conclude that a material uncertainty ` 10.91 crores for the year ended on that date. These financial
exists, we are required to draw attention in our auditor’s statement and other financial information have been audited
report to the related disclosures in the consolidated Ind AS by other auditors, which financial statements, other financial
financial statements or, if such disclosures are inadequate, to information and auditor’s reports have been furnished to
modify our opinion. Our conclusions are based on the audit us by the management. The consolidated Ind AS financial
evidence obtained up to the date of our auditor’s report. statements also include the Group’s share of net profit of
However, future events or conditions may cause the Group ` 1.55 crores for the year ended March 31, 2022, as
and its associates to cease to continue as a going concern. considered in the consolidated Ind AS financial statements,
• Evaluate the overall presentation, structure and content of in respect of 4 associates whose financial statements, other
the consolidated Ind AS financial statements, including the financial information have been audited by other auditors and
disclosures, and whether the consolidated Ind AS financial whose reports have been furnished to us by the Management.
statements represent the underlying transactions and events Our opinion on the consolidated Ind AS financial statements,
in a manner that achieves fair presentation. in so far as it relates to the amounts and disclosures included
in respect of these subsidiaries, branches, joint operations
• Obtain sufficient appropriate audit evidence regarding the and associates, and our report in terms of sub-sections (3) of
financial information of the entities or business activities Section 143 of the Act, in so far as it relates to the aforesaid
within the Group and its associates of which we are the subsidiaries and associates, is based solely on the reports of
independent auditors and whose financial information we such other auditors.
have audited, to express an opinion on the consolidated Ind
Of the above 2 subsidiaries and 1 branch are located
AS financial statements. We are responsible for the direction,
outside India whose financial statements and other financial
supervision and performance of the audit of the financial
information have been prepared in accordance with
statements of such entities included in the consolidated Ind
accounting principles generally accepted in their respective
AS financial statements of which we are the independent
countries and which have been audited by other auditors
auditors. For the other entities included in the consolidated
under generally accepted auditing standards applicable in their
Ind AS financial statements, which have been audited by
respective countries. The Holding Company’s management
other auditors, such other auditors remain responsible for the
has converted the financial statements of such subsidiaries
direction, supervision and performance of the audits carried
and branch located outside India from accounting principles
out by them. We remain solely responsible for our audit
generally accepted in their respective countries to accounting
opinion.
principles generally accepted in India. We have audited these
We communicate with those charged with governance of the Holding conversion adjustments made by the Holding Company’s
Company and such other entities included in the consolidated Ind management. Our opinion in so far as it relates to the
AS financial statements of which we are the independent auditors balances and affairs of such subsidiaries and branch located
regarding, among other matters, the planned scope and timing of outside India is based on the report of other auditors and the
the audit and significant audit findings, including any significant conversion adjustments prepared by the management of the
deficiencies in internal control that we identify during our audit. Holding Company and audited by us.

124 NCC LIMITED

(b) The accompanying consolidated Ind AS financial statements (b) In our opinion, proper books of account as required by
include unaudited financial statements and other unaudited law relating to preparation of the aforesaid consolidated
financial information in respect of 1 subsidiary, whose Ind AS financial statements have been kept so far as
financial statements and other financial information reflect it appears from our examination of those books and
total assets of Rs Nil as at March 31, 2022, total revenues reports of the other auditors;
of Rs Nil and net cash outflow of Rs Nil for the year ended
(c) The Consolidated Balance Sheet, the Consolidated
on that date. These unaudited financial statements and
Statement of Profit and Loss including the Statement
other unaudited financial information have been furnished
of Other Comprehensive Income, the Consolidated
to us by the management. The consolidated Ind AS financial
Cash Flow Statement and Consolidated Statement
statements also include the Group’s share of net loss of
of Changes in Equity dealt with by this Report are in
` 0.15 crores for the year ended March 31, 2022, as considered
agreement with the books of account maintained for
in the consolidated Ind AS financial statements, in respect
the purpose of preparation of the consolidated Ind AS
of 4 associates, whose financial statements, other financial
financial statements;
information have not been audited and whose unaudited
financial statements, other unaudited financial information (d) The reports on the accounts of the branch offices of the
have been furnished to us by the Management. Our opinion, Holding Company audited under Section 143(8) of the
in so far as it relates amounts and disclosures included in Act by branch auditors have been sent to us and have
respect of these subsidiaries and associates, and our report been properly dealt with by us in preparing this report;
in terms of sub-sections (3) of Section 143 of the Act in so
(e) In our opinion, the aforesaid consolidated Ind AS
far as it relates to the aforesaid subsidiaries and associates,
financial statements comply with the Accounting
is based solely on such unaudited financial statements and
Standards specified under Section 133 of the Act, read
other unaudited financial information. In our opinion and
with Companies (Indian Accounting Standards) Rules,
according to the information and explanations given to us
2015, as amended;
by the Management, these financial statements and other
financial information are not material to the Group. (f) On the basis of the written representations received
from the directors of the Holding Company as on March
Our opinion above on the consolidated Ind AS financial statements,
31, 2022 taken on record by the Board of Directors of
and our report on Other Legal and Regulatory Requirements below,
the Holding Company and the reports of the statutory
is not modified in respect of the above matters with respect to our
auditors who are appointed under Section 139 of the
reliance on the work done and the reports of the other auditors and
Act, of its subsidiary companies and associate companies,
the financial statements and other financial information certified by
none of the directors of the Group’s companies and its
the Management.
associates, incorporated in India, is disqualified as on
Report on Other Legal and Regulatory Requirements March 31, 2022 from being appointed as a director in
terms of Section 164 (2) of the Act;
1. As required by the Companies (Auditor’s Report) Order,
2020 (“the Order”), issued by the Central Government (g) With respect to the adequacy of the internal financial
of India in terms of sub-section (11) of section 143 of the controls with reference to these consolidated Ind
Act, based on our audit and on the consideration of report AS financial statements of the Holding Company,
of the other auditors on separate financial statements and its subsidiary companies and associate companies,
the other financial information of the subsidiary companies incorporated in India, and the operating effectiveness of
and associate companies, incorporated in India, as noted in such controls, refer to our separate Report in “Annexure
the ‘Other Matter’ paragraph we give in the “Annexure 1” a 2” to this report;
statement on the matters specified in paragraph 3(xxi) of the
(h) In our opinion and based on the consideration of
Order.
reports of other statutory auditors of the subsidiaries
2. As required by Section 143(3) of the Act, based on our audit and associates incorporated in India, the managerial
and on the consideration of report of the other auditors remuneration for the year ended March 31, 2022 has
on separate financial statements and the other financial been paid / provided by the Holding Company, its
information of branches, subsidiaries, associates and joint subsidiaries and associates incorporated in India to their
operations, as noted in the ‘other matter’ paragraph we directors in accordance with the provisions of section
report, to the extent applicable, that: 197 read with Schedule V to the Act;
(a) We/the other auditors whose report we have relied (i) With respect to the other matters to be included in
upon have sought and obtained all the information and the Auditor’s Report in accordance with Rule 11 of
explanations which to the best of our knowledge and the Companies (Audit and Auditors) Rules, 2014,
belief were necessary for the purposes of our audit of as amended, in our opinion and to the best of our
the aforesaid consolidated Ind AS financial statements; information and according to the explanations given
to us and based on the consideration of the report of

Annual Report 2021-22 125

 the other auditors on separate financial statements as b) The respective managements of the Holding Company and
also the other financial information of the branches, its subsidiaries which are companies incorporated in India
subsidiaries, associates and joint operations, as noted in whose financial statements have been audited under the
the ‘Other matter’ paragraph: Act have represented to us and the other auditors of such
subsidiaries respectively that, to the best of its knowledge
i. The consolidated Ind AS financial statements
and belief, no funds (which are material either individually
disclose the impact of pending litigations on its
or in the aggregate) have been received by the respective
consolidated financial position of the Group and
Holding Company or any of such subsidiaries from any
its associates in its consolidated Ind AS financial
persons or entities, including foreign entities (“Funding
statements – Refer Note 37(i) and 51 to the
Parties”), with the understanding, whether recorded in
consolidated Ind AS financial statements;
writing or otherwise, that the Holding Company or any
ii. Provision has been made in the consolidated of such subsidiaries shall, whether, directly or indirectly,
Ind AS financial statements, as required under lend or invest in other persons or entities identified in
the applicable law or accounting standards, for any manner whatsoever by or on behalf of the Funding
material foreseeable losses, if any, on long-term Party (“Ultimate Beneficiaries”) or provide any guarantee,
contracts including derivative contracts: and security or the like on behalf of the Ultimate Beneficiaries;
and
iii. There has been no delay in transferring amounts,
required to be transferred, to the Investor Education c) Based on the audit procedures that has been considered
and Protection Fund by the Holding Company, its reasonable and appropriate in the circumstances
subsidiaries and associates incorporated in India performed by us and those performed by the auditors
during the year ended March 31, 2022. of the subsidiaries which are companies incorporated
in India whose financial statements have been audited
iv. a) 
The respective managements of the Holding
under the Act, nothing has come to our or other auditor’s
Company and its subsidiaries which are companies
notice that has caused us or the other auditors to believe
incorporated in India whose financial statements
that the representations under sub-clause (a) and (b)
have been audited under the Act have represented
contain any material mis-statement.
to us and the other auditors of such subsidiaries
respectively that, to the best of its knowledge and v) The dividend declared or paid during the year by the Holding
belief, no funds have been advanced or loaned company and subsidiary companies incorporated in India, is in
or invested (either from borrowed funds or share compliance with section 123 of the Act.
premium or any other sources or kind of funds) by
the Holding Company or any of such subsidiaries to
or in any other persons or entities, including foreign For S.R. Batliboi & Associates LLP
entities (“Intermediaries”), with the understanding, Chartered Accountants
whether recorded in writing or otherwise, that the ICAI Firm Registration Number: 101049W/E300004
Intermediary shall, whether, directly or indirectly
per Navneet Rai Kabra
lend or invest in other persons or entities identified
Partner
in any manner whatsoever by or on behalf of
Membership Number: 102328
the respective Holding Company or any of such
UDIN: 22102328AITNXD6937
subsidiaries (“Ultimate Beneficiaries”) or provide
any guarantee, security or the like on behalf of the Place of Signature: Hyderabad
Ultimate Beneficiaries; Date: May 11, 2022

126 NCC LIMITED

Annexure ‘1’ referred to in paragraph under the heading “Report on other
legal and regulatory requirements” of our report of even date
Re: NCC Limited (“the Company”)

In terms of the information and explanations sought by us and

given by the company and to the best of our knowledge and belief,
we state that:
3(xxi) There are no qualifications or adverse remarks by the
respective auditors in the Companies (Auditors Report) Order
(CARO) reports of the companies included in the consolidated
financial statements. Accordingly, the requirement to report
on clause 3(xxi) of the Order is not applicable to the Holding
Company.

For S.R. Batliboi & Associates LLP

Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004

per Navneet Rai Kabra

Partner
Membership Number: 102328
UDIN: 22102328AITNXD6937

Place of Signature: Hyderabad

Date: May 11, 2022

Annual Report 2021-22 127

ANNEXURE 2 TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE
CONSOLIDATED IND AS FINANCIAL STATEMENTS OF NCC LIMTED
Report on the Internal Financial Controls under Clause (i) of included obtaining an understanding of internal financial controls
Sub-section 3 of Section 143 of the Companies Act, 2013 (“the with reference to these consolidated Ind AS financial statements,
Act”) assessing the risk that a material weakness exists, and testing
and evaluating the design and operating effectiveness of internal
In conjunction with our audit of the consolidated Ind AS financial
control based on the assessed risk. The procedures selected depend
statements of NCC Limited (hereinafter referred to as the “Holding
on the auditor’s judgement, including the assessment of the risks
Company”) as of and for the year ended March 31, 2022, we
of material misstatement of the financial statements, whether due
have audited the internal financial controls with reference to these
to fraud or error.
consolidated Ind AS financial statements of the Holding Company
and its subsidiaries (the Holding Company and its subsidiaries We believe that the audit evidence we have obtained and the audit
together referred to as “the Group”) and its associates, which are evidence obtained by the other auditors in terms of their reports
companies incorporated in India, as of that date. referred to in the Other Matters paragraph below, is sufficient
and appropriate to provide a basis for our audit opinion on the
Management’s Responsibility for Internal Financial Controls
internal financial controls with reference to these consolidated Ind
The respective Board of Directors of the companies included in AS financial statements.
the Group and its associates, which are companies incorporated
Meaning of Internal Financial Controls With Reference to
in India, are responsible for establishing and maintaining internal
these Consolidated Ind AS Financial Statements
financial controls based on the internal control over financial
reporting criteria established by the Holding Company considering A company’s internal financial control with reference to these
the essential components of internal control stated in the Guidance consolidated Ind AS financial statements is a process designed to
Note on Audit of Internal Financial Controls Over Financial provide reasonable assurance regarding the reliability of financial
Reporting issued by the Institute of Chartered Accountants of India reporting and the preparation of financial statements for external
(ICAI). These responsibilities include the design, implementation purposes in accordance with generally accepted accounting
and maintenance of adequate internal financial controls that principles. A company’s internal financial control with reference
were operating effectively for ensuring the orderly and efficient to these consolidated Ind AS financial statements includes those
conduct of its business, including adherence to the respective policies and procedures that (1) pertain to the maintenance of
company’s policies, the safeguarding of its assets, the prevention records that, in reasonable detail, accurately and fairly reflect
and detection of frauds and errors, the accuracy and completeness the transactions and dispositions of the assets of the company;
of the accounting records, and the timely preparation of reliable (2) provide reasonable assurance that transactions are recorded
financial information, as required under the Companies Act, 2013. as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that
Auditor’s Responsibility
receipts and expenditures of the company are being made only
Our responsibility is to express an opinion on the Holding Company’s in accordance with authorisations of management and directors
internal financial controls with reference to these consolidated Ind of the company; and (3) provide reasonable assurance regarding
AS financial statements based on our audit. We conducted our prevention or timely detection of unauthorised acquisition, use,
audit in accordance with the Guidance Note on Audit of Internal or disposition of the company’s assets that could have a material
Financial Controls Over Financial Reporting (the “Guidance Note”) effect on the financial statements.
and the Standards on Auditing, specified under section 143(10) of
Inherent Limitations of Internal Financial Controls With
the Act, to the extent applicable to an audit of internal financial
Reference to these Consolidated Ind AS Financial Statements
controls, both issued by ICAI. Those Standards and the Guidance
Note require that we comply with ethical requirements and plan Because of the inherent limitations of internal financial controls
and perform the audit to obtain reasonable assurance about with reference to these consolidated Ind AS financial statements,
whether adequate internal financial controls with reference to including the possibility of collusion or improper management
these consolidated Ind AS financial statements was established and override of controls, material misstatements due to error or
maintained and if such controls operated effectively in all material fraud may occur and not be detected. Also, projections of any
respects. evaluation of the internal financial controls with reference to these
consolidated Ind AS financial statements to future periods are
Our audit involves performing procedures to obtain audit evidence
subject to the risk that the internal financial controls with reference
about the adequacy of the internal financial controls with reference
to these consolidated Ind AS financial statements may become
to these consolidated Ind AS financial statements and their
inadequate because of changes in conditions, or that the degree of
operating effectiveness. Our audit of internal financial controls
compliance with the policies or procedures may deteriorate.
with reference to these consolidated Ind AS financial statements

128 NCC LIMITED

Opinion
In our opinion, the Group and its associates, which are companies
incorporated in India, have, maintained in all material respects,
adequate internal financial controls with reference to these
consolidated Ind AS financial statements and such internal financial
controls with reference to these consolidated Ind AS financial
statements were operating effectively as at March 31, 2022, based
on the internal control over financial reporting criteria established
by the Holding Company considering the essential components of
internal control stated in the Guidance Note issued by the ICAI.
Other Matters
Our report under Section 143(3)(i) of the Act on the adequacy
and operating effectiveness of the internal financial controls with
reference to these consolidated Ind AS financial statements of the
Holding Company, in so far as it relates to these 23 subsidiaries and
1 associate, which are companies incorporated in India, is based on
the corresponding reports of the auditors of such subsidiaries and
associates.

For S.R. Batliboi & Associates LLP

Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004

per Navneet Rai Kabra

Partner
Membership Number: 102328
UDIN: 22102328AITNXD6937

Place of Signature: Hyderabad

Date: May 11, 2022

Annual Report 2021-22 129

CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2022

(` in crores)

AS AT AS AT
Note
MARCH 31, 2022 MARCH 31, 2021
ASSETS
Non Current Assets
Property, Plant and Equipment 3 1,138.11 1,129.21
Capital Work in Progress 3 7.35 21.86
Investment Property 3.1 199.62 218.34
Investment Property under Construction 3.1 103.47 68.10
Goodwill 0.63 0.63
Other Intangible Assets 3.2 0.72 0.71
Financial Assets
Investments in Associates 4.1 115.85 122.00
Other Investments 4.1 211.25 213.43
Loans 5 150.00 -
Trade Receivables 6 107.96 139.59
Other Financial Assets 7 285.58 258.82
Deferred Tax Assets (Net) 8 64.26 57.61
Non Current Tax Assets (Net) 15 151.66 80.54
Other Non Current Assets 9 468.94 459.91

Total Non - Current Assets 3,005.40 2,770.75

Current Assets
Inventories 10 1,153.34 1,222.21
Financial Assets
Other Investments 4.2 18.72 104.20
Trade Receivables 11 2,545.16 2,739.62
Cash and Cash Equivalents 12.1 266.54 191.64
Bank balances other than above 12.2 333.99 312.94
Loans 13 217.06 52.65
Other Financial Assets 14 342.34 199.21
Current Tax Assets (Net) 15.1 74.68 105.03
Other Current Assets 16 6,500.76 5,841.63

Total Current Assets 11,452.59 10,769.13

Total Assets 14,457.99 13,539.88

130 NCC LIMITED

CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2022 (contd.)

(` in crores)

AS AT AS AT
Note
MARCH 31, 2022 MARCH 31, 2021
EQUITY AND LIABILITIES
Equity
Equity Share Capital 17 121.97 121.97
Other Equity 18 5,480.77 5,049.33
Equity Attributable to Shareholders of the Company 5,602.74 5,171.30
Non-Controlling Interests 293.41 298.11
Total Equity 5,896.15 5,469.41
Liabilities
Non Current Liabilities
Financial Liabilities
Borrowings 19 120.18 169.61
Trade Payables 20 25.64 26.57
Provisions 21 57.88 50.10
Total Non Current Liabilities 203.70 246.28
Current Liabilities
Financial Liabilities
Borrowings 22 1,182.25 1,892.43
Trade Payables 23
Total outstanding dues of micro and small
34.25 51.99
enterprises
Total outstanding dues of creditors other than
4,363.55 3,776.53
micro and small enterprises
Other Financial Liabilities 24 99.35 99.35
Provisions 25 79.21 123.23
Current Tax Liabilities (Net) 26 2.17 2.35
Other Current Liabilities 27 2,597.36 1,878.31
Total Current Liabilities 8,358.14 7,824.19
Total Equity and Liabilities 14,457.99 13,539.88

The accompanying notes are an integral part of the consolidated financial statements
In terms of our report attached

For S.R. BATLIBOI & ASSOCIATES LLP For and on behalf of the Board
ICAI Firm Registration No. 101049W/E300004
CHARTERED ACCOUNTANTS

per NAVNEET RAI KABRA K. KRISHNA RAO A.A.V. RANGA RAJU

Partner E.V.P (F&A) / CFO Managing Director / CEO
Membership No. 102328 (DIN No: 00019161)

M.V. SRINIVASA MURTHY A.G.K. RAJU

Company Secy. & E.V.P (Legal) Executive Director
(DIN No: 00019100)
Hyderabad, May 11, 2022

Annual Report 2021-22 131

CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2022
(` in crores)
YEAR ENDED YEAR ENDED
Note
MARCH 31, 2022 MARCH 31, 2021
INCOME
Revenue from Operations 28 11,137.96 7,949.42
Other Income 29 70.72 115.91
Total Income 11,208.68 8,065.33
EXPENSES
Cost of Materials Consumed 30 3,484.62 2,426.56
Construction Expenses 31 1,245.42 902.09
Changes in Inventories of Work in Progress 32 105.49 48.90
Sub-Contractors Work Bills 4,568.97 3,059.81
Employee Benefits Expense 33 452.66 380.50
Finance Costs 34 478.07 479.91
Depreciation and Amortization Expenses (Refer note 3, 3.1 and 3.2) 186.74 181.25
Other Expenses 35 257.00 212.48
Total Expenses 10,778.97 7,691.50
Profit Before Share of Profit / (Loss) of Associate Companies, and Tax 429.71 373.83
Share of Profit / (Loss) of Associate Companies 1.40 1.29
Profit Before Exceptional Items and Tax 431.11 375.12
Exceptional Items (Net) 50 203.57 (12.60)
Profit Before Tax 634.68 362.52
Tax Expense 36
Current Tax (including earlier year taxation) 146.58 16.90
Deferred Tax (5.93) 62.58
140.65 79.48
Profit for the year 494.03 283.04
Attributable to
Shareholders of the Company 482.41 268.31
Non-Controlling Interests 11.62 14.73
Other comprehensive income / (loss)
Items that will not be reclassified to profit or (loss)
Remeasurement gains / (losses) of the defined benefit plans (2.84) (12.03)
Income tax effect on the above 0.72 0.82
Items that may be reclassified to profit or (loss)
Exchange differences in translating the financial statements of
(0.42) (2.46)
foreign operations
Other comprehensive income / (loss) for the year (net of taxes) (2.54) (13.67)
Total comprehensive income for the year 491.49 269.37
Attributable to
Shareholders of the Company 479.89 254.63
Non-Controlling Interests 11.60 14.74
Earnings per equity share of face value of ` 2 each.
Basic - ` 48 7.91 4.40
Diluted - ` 48 7.86 4.39

The accompanying notes are an integral part of the consolidated financial statements
In terms of our report attached
For S.R. BATLIBOI & ASSOCIATES LLP For and on behalf of the Board
ICAI Firm Registration No. 101049W/E300004
CHARTERED ACCOUNTANTS
per NAVNEET RAI KABRA K. KRISHNA RAO A.A.V. RANGA RAJU
Partner E.V.P (F&A) / CFO Managing Director / CEO
Membership No. 102328 (DIN No: 00019161)
M.V. SRINIVASA MURTHY A.G.K. RAJU
Company Secy. & E.V.P (Legal) Executive Director
(DIN No: 00019100)
Hyderabad, May 11, 2022
132 NCC LIMITED
 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31, 2022
A. Equity share capital

Amount
Number of shares
(` in crores)

Annual Report 2021-22

Balance as at April 01, 2020 609,846,588 121.97
Add: Issue of Share Capital - -
Balance as at March 31, 2021 609,846,588 121.97
Add: Issue of Share Capital - -
Balance as at March 31, 2022 609,846,588 121.97

B. Other Equity (` in crores)

Items of Other Comprehensive

Reserves and Surplus
Income / (Loss)
Equity
Exchange attributable
Non-
Reserve Money received Differences to the
Other items controlling Total
Debenture Legal / Under against share on translating shareholders
Capital Securities General Retained of other interests
Redemption Statutory Section warrants the financial of the
Reserve Premium Reserve Earnings comprehensive Company
Reserve Reserve 45 IC - RBI (Refer note statements
income
Act 17.5) of a foreign
operations

Balance at April 01,

5.64 2,639.62 11.89 25.88 0.24 - 935.18 1,137.97 (16.28) 44.34 4,784.48 252.84 5,037.32
2020

Effect of merger of
Vaidehi Avenues
1.39 - - - - - - (1.39) - - - - -
Limited and Aster Rail
Private Limited

As at April 01, 2020

7.03 2,639.62 11.89 25.88 0.24 - 935.18 1,136.58 (16.28) 44.34 4,784.48 252.84 5,037.32
(restated)

Profit for the year - - - - - - - 268.31 - - 268.31 14.73 283.04

Other Comprehensive
Income / (Loss) for - - - - - - - - (11.22) (2.46) (13.68) 0.01 (13.67)
the year (net of taxes)

Total
Comprehensive - - - - - - - 268.31 (11.22) (2.46) 254.63 14.74 269.37
Income for the year

133
 B. Other Equity (Contd.) (` in crores)

134
Items of Other Comprehensive
Reserves and Surplus
Income / (Loss)
Equity
Exchange attributable
Non-
Reserve Money received Differences to the
Other items controlling Total
Debenture Legal / Under against share on translating shareholders
Capital Securities General Retained of other interests
Redemption Statutory Section warrants the financial of the
Reserve Premium Reserve Earnings comprehensive Company
Reserve Reserve 45 IC - RBI (Refer note statements
income
Act 17.5) of a foreign
operations

Proceeds received
against share - - - - - 26.55 - - - - 26.55 - 26.55
warrants

Transferred to
Retained earnings
- - (11.89) - - - - 8.51 - - (3.38) 3.38 -
& Non-Controlling
Interests

Dividend (Inclusive of
- - - - - - - (12.21) - - (12.21) - (12.21)
Tax on Dividend)

Transfer to General
- - - - - - 200.00 - - - 200.00 - 200.00
Reserve

Transfer from
- - - - - - - (200.00) - - (200.00) - (200.00)
Retained Earnings

Adjustment
on account of
Consolidation / 0.75 - - (0.74) - - - (0.75) - - (0.74) 27.15 26.41
Foreign currency
fluctuation

Balance at April 01,

7.78 2,639.62 - 25.14 0.24 26.55 1,135.18 1,200.44 (27.50) 41.88 5,049.33 298.11 5,347.44
2021

Profit for the year - - - - - - - 482.41 - - 482.41 11.62 494.03

Other Comprehensive
Income / (Loss) for - - - - - - - - (2.10) (0.42) (2.52) (0.02) (2.54)
the year (net of taxes)

Total
Comprehensive - - - - - - - 482.41 (2.10) (0.42) 479.89 11.60 491.49
Income for the year

NCC LIMITED
 B. Other Equity (Contd.) (` in crores)

Items of Other Comprehensive

Reserves and Surplus
Income / (Loss)
Equity
Exchange attributable
Non-
Reserve Money received Differences to the

Annual Report 2021-22

Other items controlling Total
Debenture Legal / Under against share on translating shareholders
Capital Securities General Retained of other interests
Redemption Statutory Section warrants the financial of the
Reserve Premium Reserve Earnings comprehensive Company
Reserve Reserve 45 IC - RBI (Refer note statements
income
Act 17.5) of a foreign
operations

Dividend (Inclusive of
- - - - - - - (48.79) - - (48.79) - (48.79)
Tax on Dividend)

Adjustment
on account of
Consolidation / 0.67 - - 0.84 - - (0.50) (0.67) - - 0.34 (16.30) (15.96)
Foreign currency
fluctuation

Transfer to General
- - - - - - 250.00 - - - 250.00 - 250.00
Reserve

Transfer from
- - - - - - - (250.00) - - (250.00) - (250.00)
Retained Earnings

Balance at March
8.45 2,639.62 - 25.98 0.24 26.55 1,384.68 1,383.39 (29.60) 41.46 5,480.77 293.41 5,774.18
31, 2022

The accompanying notes are an integral part of the consolidated financial statements
In terms of our report attached

For S.R. BATLIBOI & ASSOCIATES LLP For and on behalf of the Board
ICAI Firm Registration No. 101049W/E300004
CHARTERED ACCOUNTANTS

per NAVNEET RAI KABRA K. KRISHNA RAO A.A.V. RANGA RAJU

Partner E.V.P (F&A) / CFO Managing Director / CEO
Membership No. 102328 (DIN No: 00019161)
M.V. SRINIVASA MURTHY A.G.K. RAJU
Company Secy. & E.V.P (Legal) Executive Director
(DIN No: 00019100)
Hyderabad, May 11, 2022

135
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2022
(` in crores)

Year Ended Year Ended

March 31, 2022 March 31, 2021
A. Cash flows from operating activities
Profit before tax 634.68 362.52
Adjustments for:
Depreciation and amortisation expenses 186.74 181.25
Share of loss from associate companies (1.40) (1.29)
Loss / (Profit) on sale of Property, Plant and Equipment and Investment Property 3.97 (24.26)
Finance costs 478.07 479.91
Interest income (38.64) (42.13)
Profit on sale of current & Non-Current investments (net) (2.06) (1.30)
Gain on remeasuring investment at FVTPL (net) (1.72) (8.96)
Trade Receivables / Advances written off 1.01 3.51
Provision for doubtful trade receivables / advances / others 13.66 19.39
Expected credit loss for Unbilled revenue 30.01 10.36
Exceptional items (net) (203.57) 12.60
Rental income from investment properties (3.71) (5.47)
462.36 623.61
Operating profit before working capital changes 1,097.04 986.13
Changes in working capital:
Adjustments for (Increase) / Decrease in operating assets:
In Inventories (263.53) 162.39
In Trade receivables 212.65 14.54
In Other financial assets 34.36 39.60
In Other assets (699.94) 87.34
Adjustments for Increase / (Decrease) in operating liabilities:
In Trade payables 568.34 (313.92)
In Other financial liabilities (13.19) (15.56)
In Other current liabilities 704.77 (94.19)
In Provisions (39.08) (0.71)
504.38 (120.51)
Cash generated from operations 1,601.42 865.62
Net income tax (paid) (185.87) (23.78)
Net cash flows from operating activities (A) 1,415.55 841.84
B. Cash flows from investing activities
Capital expenditure for property , plant and equipment, Investment property,
(218.78) (192.32)
Intangible Assets including Capital Work in Progress
Proceeds from disposal of Property, Plant and Equipment, Investment Property 51.62 52.62
Movement in Margin Money Deposits / Other Deposits (89.44) (79.85)
Sale of Non current / current investments 91.44 19.51
Loans (given) / realised from Associates and others (4.70) (31.33)
Proceeds from sale of a subsidiary 47.50 0.05
Interest received 53.00 22.31
Rental income from investment property 3.71 5.47
Foreign Exchange translation adjustment (arising on consolidation) (0.39) (3.02)
Net cash flows (used) / from investing activities (B) (66.04) (206.56)

136 NCC LIMITED

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2022 (contd.)
(` in crores)

Year Ended Year Ended

March 31, 2022 March 31, 2021
C. Cash flow from financing activities
Proceeds from issue of Shares to Non-Controlling Interests - 30.00
Proceeds received against share warrants - 26.55
Redemption of debentures (61.00) (49.80)
Proceeds from long term borrowings 115.65 316.39
Repayment of long term borrowings (313.02) (332.65)
Short term borrowings borrowed / repaid (net) (487.64) (53.37)
Finance costs paid (464.86) (482.99)
Payment made to Non-Controlling Interests (14.95) -
Dividend and Dividend Tax paid (48.79) (12.21)
Net cash flows (used) in financing activities (C ) (1,274.61) (558.08)
Net Increase in Cash and cash equivalents (A+B+C) 74.90 77.20
Cash and cash equivalents at the beginning of the year 191.64 114.44
Cash and cash equivalents at the end of the year 266.54 191.64
Reconciliation of Cash and cash equivalents with the Balance Sheet:
Cash and cash equivalents 266.54 191.64
Cash and cash equivalents at the end of the year 266.54 191.64
Note: Figures in brackets represents cash outflows.
The accompanying notes are an integral part of the financial statements
In terms of our report attached

For S.R. BATLIBOI & ASSOCIATES LLP For and on behalf of the Board
ICAI Firm Registration No. 101049W/E300004
CHARTERED ACCOUNTANTS

per NAVNEET RAI KABRA K. KRISHNA RAO A.A.V. RANGA RAJU

Partner E.V.P (F&A) / CFO Managing Director / CEO
Membership No. 102328 (DIN No: 00019161)

M.V. SRINIVASA MURTHY A.G.K. RAJU

Company Secy. & E.V.P (Legal) Executive Director
(DIN No: 00019100)
Hyderabad, May 11, 2022

Annual Report 2021-22 137

Notes forming part of the consolidated financial statements
1 Corporate information: In addition, for financial reporting purposes, fair value
measurements are categorised into Level 1, 2 or 3 based on
NCC Limited, (“NCCL”/“the Company”) was established as a
the degree to which the inputs to the fair value measurements
Partnership firm in 1978, which was subsequently converted
are observable and the significance of the inputs to the fair
into a limited Company in 1990. The shares of the Company,
value measurement in its entirety, which are described as
was listed on the stock exchanges in India, in 1992 pursuant
follows:
to Public offer of equity shares. The registered office of the
Company is located at NCC House, Madhapur, Hyderabad • Level 1 inputs are quoted prices (unadjusted) in active
- 500 081, Telangana, India. The Company, its subsidiaries, markets for identical assets or liabilities that the entity
and Associates collectively referred to as the “Group” is can access at the measurement date;
engaged in the infrastructure sector and undertaking turn-
• Level 2 inputs are other than quoted prices included
key EPC contracts as well as BOT projects on Public-Private
within Level 1, that are observable for the asset or
Partnership basis. The Group’s range of verticals comprises
liability, either directly or indirectly; and
of Buildings & Housing, Roads, Railways, Mining, Water &
Environment, Irrigation, Power, Electrical, Metals, Oil & Gas • Level 3 inputs are unobservable inputs for the asset or
and International business. liability.
2 Significant accounting policies:
2.3 Basis of consolidation:
2.1 Statement of Compliance:
These consolidated financial statements incorporate the
These consolidated financial statements have been prepared financial statements of the Company and entities controlled by
in accordance with Indian Accounting Standards (Ind AS) the parent Company and its subsidiaries. Control is achieved
notified under the companies (Indian Accounting Standards) when the Company:
Rules, 2015 (as amended from time to time).
• Has power over the investee;
2.2 Basis of preparation and presentation:
• Is exposed, or has rights, to variable returns from its
These consolidated financial statements are prepared in involvement with the investee; and
accordance with Ind AS under the historical cost convention on
the accrual basis except for certain financial instruments which • Has the ability to use its power to affect its returns.
are measured at fair values, the provisions of the Companies The Group reassesses whether or not it controls an investee
Act, 2013 (‘Act’), Including presentation requirements of if facts and circumstances indicate that there are changes to
Division II of Schedule III to the Companies Act, 2013 (Ind one or more of the three elements of control listed above.
AS Compliant Schedule III), as applicable to the consolidated
financial statements (to the extent notified) and guidelines Consolidation of a subsidiary begins when the Group obtains
issued by the Securities and Exchange Board of India (SEBI). control over the subsidiary and ceases when the Group loses
The Ind AS are prescribed under Section 133 of the Act read control of the subsidiary. Specifically, income and expenses
with Rule 3 of the Companies (Indian Accounting Standards) of a subsidiary acquired or disposed of during the year are
Rules, 2015 (as amended from time to time). Historical cost is included in the consolidated Statement of profit and loss from
generally based on the fair value of the consideration given in the date the Company gains control until the date when the
exchange for goods and services. Company ceased to control the subsidiary.
Fair value is the price that would be received to sell an asset Profit and loss and each component of other comprehensive
or paid to transfer a liability in an orderly transaction between income are attributed to the shareholders of the Company
market participants at the measurement date, regardless of and to the non-controlling interests. Total comprehensive
whether that price is directly observable or estimated using income of subsidiaries is attributed to the shareholders of
another valuation technique. In estimating the fair value the Company and to the non-controlling interests even if this
of an asset or a liability, the Group takes into account the results in the non-controlling interests having a deficit balance.
characteristics of the asset or liability if market participants When necessary, adjustments are made to the financial
would take those characteristics into account when pricing statements of subsidiaries to bring their accounting policies
the asset or liability at the measurement date. Fair value into line with the Group’s accounting policies.
for measurement and / or disclosure purposes in these
consolidated financial statements is determined on such a All intragroup assets and liabilities, equity, income, expenses
basis and measurements that have some similarities to fair and cash flows relating to transactions between members of
value but are not fair value, such as a net realisable value in the Group are eliminated in full on consolidation.
Ind AS 2 or value in use in Ind AS 36.

138 NCC LIMITED

Notes forming part of the consolidated financial statements
2.4 Principles of Consolidation: g) Non-controlling interests in the net assets of consolidated
subsidiaries consists of:
The consolidated financial statements have been prepared on
the following basis: i) The amount of equity attributable to Non-
a) NCCL consolidates entities which it owns or controls. controlling holders at the date on which investment
The consolidated financial statements comprise the in a subsidiary is made; and
financial statements of the Company and its subsidiaries ii) The Non-controlling holders share of movements
as disclosed in Note 39. Subsidiaries are consolidated in the equity since the date the parent subsidiary
from the date control commences until the date control relationship came into existence.
ceases. Subsidiary companies are consolidated on a
h) The consolidated financial statements are prepared
line-by-line basis by adding together the book values
to the extent possible using uniform accounting
of like items of assets, liabilities, income and expenses,
policies for like transactions and other events in similar
after fully eliminating intra-group balances, intra-group
circumstances and are presented to extent possible, in
transactions and resulting unrealised profits or losses
the same manner as the Company’s separate financial
on intra-group transactions as per Indian Accounting
statements.
Standard 110.
The Subsidiaries and Associate Companies are considered
b) Associates are entities over which the Group has
for consolidated financial statements are given in Note
significant influence but not control. Investments in
39.
associates are accounted for using the equity method
of accounting. The investment is initially recognised at
2.5 Changes in the Group’s ownership interests in existing
cost, and the carrying amount is increased or decreased
subsidiaries:
to recognise the investor’s share of the profit or loss
of the investee after the acquisition date. The Group’s Changes in the Group’s ownership interests in subsidiaries that
investment in associates includes goodwill identified on do not result in the Group losing control over the subsidiaries
acquisition. are accounted for as equity transactions. The carrying amounts
of the Group’s interest and the non-controlling interests are
c) A Joint Venture is a joint arrangement whereby the adjusted to reflect the changes in their relative interests in the
parties that have joint control of the arrangement, have subsidiaries. Any difference between the amount by which
rights to the net assets of the joint arrangement. Joint the non-controlling interests are adjusted and the fair value
control is the contractually agreed sharing of control of of the consideration paid or received is recognised directly in
an arrangement, which exists only when decisions about equity and attributed to shareholders of the Company.
the relevant activities require unanimous consent of the
parties sharing control. Investments in Joint Venture are When the Group loses control of a subsidiary, a gain or loss is
accounted for using the equity method of accounting. recognised in Statement of Profit and Loss and is calculated
The investment is initially recognised at cost, and the as the difference between (i) the aggregate of the fair value
carrying amount is increased or decreased to recognise of the consideration received and (ii) the previous carrying
the investor’s share of the profit or loss of the investee amount of the assets (including goodwill), and liabilities of
after the acquisition date. The Group’s investment in the subsidiary and any non-controlling interest. All amounts
joint venture includes goodwill identified on acquisition. previously recognised in other comprehensive income in
relation to that subsidiary are accounted for as if the Group
d) The financial statements of the Subsidiaries, Joint had directly disposed of the related assets or liabilities of the
ventures and the Associates used in the consolidation subsidiary (i.e. reclassified to the statement of profit and
are drawn up to the same reporting date as that of the loss or transferred to another category of equity as specified
Company, i.e. March 31, 2022. / permitted by applicable Ind AS). The fair value of any
investment retained in the former subsidiary at the date when
e) The excess of cost to the Group, of its investment in control is lost is regarded as the fair value on initial recognition
the subsidiaries over the Group’s share of equity is for subsequent accounting under Ind AS 109, or when
recognised in the consolidated financial statements as applicable, the cost on initial recognition of an investment in
Goodwill and tested for impairment annually. an associate or a joint venture.
f) Non-controlling interests in the net assets of the 2.6 Goodwill:
consolidated subsidiaries is identified and presented
Goodwill arising on an acquisition of a business is carried at
in consolidated balance sheet under the Total Equity
cost as established at the date of acquisition of the business
group.
less accumulated impairment losses, if any.

Annual Report 2021-22 139

Notes forming part of the consolidated financial statements
The Group’s policy for goodwill arising on the acquisition of If the consideration promised in a contract includes a variable
an associate and a joint venture is described at note 2.4. amount, this amount is recognised only to the extent that it
is highly probable that a significant reversal in the amount
2.7 Revenue Recognition :
recognised will not occur.
Revenue from contracts with customers is recognised when
Real Estate
control of the goods or services are transferred to the
customer at an amount that reflects the consideration to The Group has assessed and determined that the performance
which the Group expects to be entitled in exchange for those obligation for all its revenue streams are performed at a point
goods or services. in time.
Project division Contract costs
A single performance obligation is identified in the construction Costs related to work performed in projects are recognised on
projects that the Group engages in, owing to the high degree an accrual basis. Costs incurred in connection with the work
of integration and customisation of the various goods and performed are recognised as an expense.
services to provide a combined output which is transferred
Cost to fulfill the contract
to the customer over time and not at a specific point in time,
since the entity’s performance creates or enhances as asset The Group recognises asset from the cost incurred to fulfill the
that the customer controls as the asset is created or enhanced. contract such as set up and mobilisation costs and amortises
it over the contract period on a systematic basis that is
With respect to the method for recognising revenue over time
consistent with the transfer to the customer of the goods or
(i.e. the method for measuring progress towards complete
services to which the asset relates.
satisfaction of a performance obligation), the Group has
established certain criteria that are applied consistently for Provision for future losses
similar performance obligations. In this regard, the method
Provision for future losses are recognised as soon as it
chosen by the Group to measure the value of goods or
becomes evident that the total costs expected to be incurred
services for which control is transferred to the customer over
in a contract exceed the total expected revenue from that
time is the output method based on surveys of performance
contract.
completed to date (or measured unit of work), according
to which revenue is recognised corresponding to the units Contract balances
of work performed and on the basis of the price allocated
thereto. In cases where the work performed till the reporting i) Contract assets
date has not reached the milestone specified in the contract, A contract asset is recognised for amount of work done
the Group recognises revenue only to the extent that it is but pending billing / acknowledgement by customer or
highly probable that the customer will acknowledge the amounts billed but payment is due on completion of
same. This method is applied as the progress of the work future performance obligation, since it is conditionally
performed can be measured during its performance on the receivable. The provision for Expected Credit Loss on
basis of the contract. Under this method, on a regular basis, contract assets is made on the same basis as financial
the work completed under each contract is measured and the assets as stated in note no. 2.21.
corresponding output is recognised as revenue.
ii) Trade receivables
Contract modifications are accounted for when additions,
deletions or changes are approved either to the scope or A receivable represents the Group’s right to an amount of
price or both. Goods / Services added that are not distinct consideration that is unconditional (i.e., only the passage
are accounted for on a cumulative catch up basis. Goods / of time is required before payment of the consideration
Services those that are distinct are accounted for prospectively is due). Refer to accounting policies of financial assets
as a separate contract, if the additional goods / services are in section Financial instruments – initial recognition and
priced at the standalone selling price else as a termination subsequent measurement.
of the existing contract and creation of a new contract . In iii) Contract liabilities
cases where the additional work has been approved but the
corresponding change in price has not been determined, the A contract liability is the obligation to transfer goods or
recognition of revenue is made for an amount with respect to services to a customer for which the Group has received
which it is highly probable that a significant reversal will not advance payments from the customer. If a customer
occur. pays consideration before the Group transfers goods or
services to the customer, a contract liability is recognised
when the consideration received.

140 NCC LIMITED

Notes forming part of the consolidated financial statements
2.8 Other Income: in other comprehensive income and accumulated in equity
(and attributed to non-controlling interests as appropriate).
a) Dividend Income: Dividend income from Investments
is recognised when the shareholder’s right to receive On the disposal of a foreign operation (i.e. disposal of the
payment has been established. Group’s entire interest in a foreign operation, a disposal
b) Interest income: Interest income from a financial asset involving loss of control over a subsidiary that includes a
is recognised when it is probable that the economic foreign operation, or a partial disposal of an interest in
benefits will flow to the Group and the amount of income an associate that includes a foreign operation of which
can be measured reliably. Interest income is accrued on the retained interest becomes a financial asset), all of the
a time basis, by reference to the principal outstanding exchange differences accumulated in equity in respect of that
and at the effective interest rate applicable, which is the operation attributable to the owners of the Company are
rate that exactly discounts estimated future cash receipts reclassified to Statement of Profit and Loss.
through the expected life of the financial asset to that 2.10 Borrowing Costs:
asset’s net carrying amount on initial recognition.
Borrowing costs include interest and exchange differences
c) Rental income: Rental income from operating leases is arising from foreign currency borrowings to the extent
generally recognised over the term of the relevant lease. they are regarded as an adjustment to the interest cost.
Costs in connection with the borrowing of funds to the
2.9 Foreign exchange translation and foreign currency extent not directly related to the acquisition of qualifying
transactions: assets are charged to the Statement of Profit and Loss
over the tenure of the loan. Borrowing costs, allocated to
These financial statements are presented in Indian rupees and utilised for qualifying assets, pertaining to the period
(rounded off to crores). from commencement of activities relating to construction
In preparing the financial statements of each individual group / development of the qualifying asset up to the date of
entity, transactions in currencies other than the entity’s capitalisation of such asset are included in the cost of the
functional currency (foreign currencies) are recognised assets. Capitalisation of borrowing costs is suspended and
at the rates of exchange prevailing at the dates of the charged to the Statement of Profit and Loss during extended
transactions. At the end of each reporting period, monetary periods when active development activity on the qualifying
items denominated in foreign currencies are translated at the assets is interrupted.
rates prevailing at that date. Non-monetary items carried 2.11 Employee Benefits:
at fair value that are denominated in foreign currencies are
retranslated at the rates prevailing at the date when the 2.11.1Retirement benefit costs and termination benefits:
fair value was determined. Non-monetary items that are
Payment to defined contribution retirement benefit plans are
measured in terms of historical cost in a foreign currency are
recognised as an expenses when employees have rendered
not retranslated.
service entitling them to the contributions.
Exchange differences on monetary items are recognised in
Superannuation
Statement of Profit and Loss in the period in which they arise
except for exchange differences on monetary items receivable The Group’s contribution to Superannuation fund is
from or payable to a foreign operation for which settlement considered as defined contribution plans and are charged as
is neither planned nor likely to occur (therefore forming an expense based on the amount of contribution required to
part of the net investment in the foreign operation), which be made and when services are rendered by the employees.
are recognised initially in other comprehensive income and
Provident Fund
reclassified from equity to Statement of Profit and Loss on
repayment of the monetary items. Contribution to Provident fund made to Regional Provident
Fund Commissioner are recognised as expense.
For the purposes of presenting these consolidated financial
statements, the assets and liabilities of the Group’s foreign Defined Benefit Plans
operations including foreign branches are translated into
For defined post benefit retirement benefit plans, the cost
Indian Rupees using exchange rates prevailing at the end
of providing benefits is determined using the projected unit
of each reporting period. Income and expense items are
credit method, with actuarial valuations being carried out at
translated at the average exchange rates for the period, unless
the end of each annual reporting period. Remeasurement,
exchange rates fluctuated significantly during that period, in
comprising actuarial gains and losses, the effect of the
which case the exchange rates at the dates of the transactions
changes to the asset ceiling (if applicable) and the return on
are used. Exchange differences arising if any, are recognised
plan assets (excluding net interest), is reflected immediately

Annual Report 2021-22 141

Notes forming part of the consolidated financial statements
in the balance sheet with a charge or credit recognised in than in a business combination) of assets and liabilities in
other comprehensive income in the period in which they a transaction that affects neither the taxable profit nor the
occur. Remeasurement recognised in other comprehensive accounting profit. In addition, deferred tax liabilities are not
income is reflected immediately in retained earnings and is recognised if the temporary difference arises from the initial
not reclassified to Statement of Profit and Loss. Past service recognition of goodwill.
cost is recognised in the Statement of Profit and Loss in the
The carrying amount of deferred tax assets is reviewed at the
period of a plan amendment. Net interest is calculated by
end of each reporting period and reduced to the extent that
applying the discount rate at the beginning of the period to
it is no longer probable that sufficient taxable profits will be
the net defined benefit liability or asset.
available to allow all or part of the asset to be recovered.
In respect of employees of overseas subsidiaries and branches, Deferred tax assets and liabilities are measured at the tax
contribution to defined benefit contribution retirement plans, rates that are expected to apply in the period in which the
is determined in accordance with the respective state laws. liability is settled or the asset realised, based on tax rates (and
tax laws) that have been enacted or substantively enacted by
2.11.2Compensated Absences:
the end of the reporting period.
The employees are entitled to accumulate leave subject to
Minimum alternate tax (MAT) paid in a year is charged to the
certain limits, for future encashment and availment, as per
statement of profit and loss as current tax for the year. The
the policy of the Group.
deferred tax asset is recognised for MAT credit available only
The liability towards such unutilized leave as at the end of to the extent that it is probable that the concerned company
each balance sheet date is determined based on independent will pay normal income tax during the specified period, i.e., the
actuarial valuation and recognised in the Statement of Profit period for which MAT credit is allowed to be carried forward.
and Loss. In the year in which the company recognises MAT credit as
an asset, it is created by way of credit to the Statement of
In respect of employees of overseas subsidiaries and branches,
Profit and Loss and shown as part of deferred tax asset. The
end of service benefit is accrued in accordance with the terms
company reviews the “MAT credit entitlement” asset at each
of employment. Employees entitlements to annual leave is
reporting date and writes down the asset to the extent that
recognised on actual basis and charged to the Statement of
it is no longer probable that it will pay normal tax during the
Profit and Loss.
specified period.
2.12 Taxes on Income:
2.12.3Current and deferred tax for the year:
Income tax expense represents the sum of the tax currently
Current and deferred tax are recognised in Statement of Profit
payable and deferred tax.
and Loss, except when they relate to items that are recognised
2.12.1Current Tax: in other comprehensive income or directly in equity, in which
case, the current and deferred tax are also recognised in
Current tax is the amount of tax payable on the taxable other comprehensive income or directly in equity respectively.
income for the year as determined in accordance with the Management periodically evaluates positions taken in the
applicable tax rates and the provisions of the Income-tax Act, tax returns with respect to situations in which applicable
1961 and other applicable tax laws that have been enacted tax regulations are subject to interpretation and establishes
or substantively enacted by the end of the reporting period provisions where appropriate.
in the countries where the Group operates and generates
taxable income. 2.13 Property, plant and equipment:
2.12.2Deferred Tax: Property, plant and equipment (PPE) are carried at cost less
accumulated depreciation and impairment losses, if any. The
Deferred tax is recognised on temporary differences cost of Property, plant and equipment comprises of purchase
between the carrying amounts of assets and liabilities in the price, applicable duties and taxes, any directly attributable
consolidated financial statements and the corresponding tax expenditure on making the asset ready for its intended
bases used in the computation of taxable profit. Deferred tax use, other incidental expenses and interest on borrowings
liabilities are generally recognised for all taxable temporary attributable to acquisition / construction of qualifying PPE, that
differences. Deferred tax assets are generally recognised for takes a substantial period of time to get ready for its intended
all deductible temporary differences to the extent that it is use, up to the date the asset is ready for its intended use. The
probable that taxable profits will be available against which initial estimate of the costs of dismantling and removing the
those deductible temporary differences can be utilised. Such item and restoring the site on which it is located is required to
deferred tax assets and liabilities are not recognised if the be included in the cost of the respective item of property plant
temporary differences arise from the initial recognition (other and equipment and Cost of major inspections is recognised

142 NCC LIMITED

Notes forming part of the consolidated financial statements
in the carrying amount of property, plant and equipment as from use and no further economic benefits expected from
a replacement, if recognition criteria are satisfied and any disposal. Any gain or loss arising on derecognition of the
remaining carrying amount of the cost of previous inspection is property is included in the Statement of Profit and Loss in the
derecognised. For transition to Ind AS, the Group has elected period in which the property is derecognised.
to adopt as deemed cost, the carrying value of PPE measured
For transition to Ind AS, the Group has elected to adopt
as per previous GAAP, accumulated depreciation and
as deemed cost, the carrying value of Investment property
cumulative impairment on the transition date of April 1, 2015.
measured as per previous GAAP, accumulated depreciation
PPE retired from active use and held for sale are stated at the
and cumulative impairment on the transition date of April 1,
lower of their net book value and net realisable value and are
2015.
disclosed separately.
2.16 Intangible Assets:
An item of PPE is derecognised upon disposal or when no
future economic benefits are expected to arise from the Identifiable intangible assets are recognised when the Group
continued use of the asset. Any gain or loss arising on the controls the asset, it is probable that future economic benefits
disposal or retirement of an item of property, plant and attributed to the asset will flow to the Group and the cost of
equipment is determined as the difference between the the asset can be reliably measured. At initial recognition, the
sale proceeds and the carrying amount of the asset and is separately acquired intangible assets are recognised at cost.
recognised in Statement of profit and loss. Following initial recognition, the intangible assets are carried
at cost less any accumulated amortisation and accumulated
2.14 Depreciation and Amortisation:
impairment losses, if any. The estimated useful life and
Depreciable amount for assets is the cost of an asset, or other amortization method reviewed at the end of each reporting
amount substituted for cost less its estimated residual value. period, with the effect of any changes in estimate being
accounted for on a prospective basis.
Depreciation on Property, Plant and equipment and
investment property have been provided on the straight line 2.17 Inventories:
method as per the useful life prescribed in Schedule II to
Raw Materials:
the Companies Act, 2013 except in respect of construction
accessories (6 years), some of the mining equipments such Raw Materials, construction materials and stores & spares
as Excavators upto 3.1 cum capacity (7 years), Tippers (6 are valued at weighted average cost or net realisable value,
years), Dozers & Motor Graders (8 years) working in Mining whichever is lower. Cost includes all charges in bringing the
projects, in whose case the life of the assets has been materials to the place of usage, excluding refundable duties
assessed based on technical assessment, taking into account and taxes.
the nature of asset, the estimated usage of the asset, the
Properties Under Development:
operating conditions of the asset, past history of replacement,
anticipated technological changes, maintenance, etc. Properties under development are valued at cost or net
realisable value, whichever is lower. Cost comprises all direct
Depreciation on Property, Plant and equipment in joint venture
development expenditure, administrative expenses and
operations provided on Straight Line Method / Written Down
borrowing costs.
Value Method based on useful life prescribed in Schedule II of
the Companies Act, 2013. Real Estate projects:
Intangible Assets are amortised on straight line method Completed properties held for sale are stated at the
based on the useful life as assessed by the Management. The actual cost or net realizable value, whichever is lower.
amortisation method, the residual value and amortisation Construction Work-in-progress is valued at cost. Cost is sale
period for intangible assets shall be reviewed at least at each value less profit margin.
financial year-end.
2.18 Provisions, Contingent Liabilities and Contingent Assets :
2.15 Investment property: Investment properties are properties
held to earn rentals and / or for capital appreciation (including The Group recognises provisions when there is present
property under construction for such purposes). Investment obligation as a result of past event and it is probable that
properties are measured initially at cost, including transaction there will be an outflow of resources and reliable estimate
costs. Subsequent to initial recognition, investment properties can be made of the amount of the obligation. A disclosure for
are measured in accordance with the Ind AS16’s requirement Contingent liabilities is made in the notes on accounts when
for cost model. there is a possible obligation or a present obligation that
may, but probably will not, require an outflow of resources.
An investment property is derecognised upon disposal or Contingent assets are disclosed in the financial statements
when the investment property is permanently withdrawn when flow of economic benefit is probable.

Annual Report 2021-22 143

Notes forming part of the consolidated financial statements
2.19 Financial instruments: (iii) Financial assets at fair value through Profit or loss
Financial assets and financial liabilities are recognised when A financial asset which is not classified in any of the
the Group becomes a party to the contractual provisions of above categories are subsequently fair valued through
the instrument. Profit or loss.
Financial assets and financial liabilities are initially measured at (iv) The Group recognises loss allowances using the expected
fair value. Transaction costs that are directly attributable to the credit loss (ECL) model for the financial assets which are
acquisition or issue of financial assets and financial liabilities not fair valued through profit or loss. Loss allowance
(other than financial assets and financial liabilities at fair for trade receivables with no significant financing
value through profit or loss) are added to or deducted from component is measured at an amount equal to lifetime
the fair value of the financial assets or financial liabilities, as ECL. For all other financial assets, expected credit losses
appropriate, on initial recognition. Transaction costs directly are measured at an amount equal to the 12-month ECL,
attributable to the acquisition of financial assets or financial unless there has been a significant increase in credit risk
liabilities at fair value through profit or loss are recognised from initial recognition in which case those are measured
immediately in Statement of Profit and Loss. at lifetime ECL. The amount of expected credit losses (or
reversal) that is required to adjust the loss allowance at
2.20 Financial assets:
the reporting date to the amount that is required to be
Financial asset is recognised is recognised as an impairment gain or loss in
Statement of Profit and Loss.
1. Cash / Equity Instrument of another Entity,
2.22 Financial liabilities:
2. Contractual right to –
Financial liability is Contractual Obligation to
a) receive Cash / another Financial Asset from another
Entity, or a) deliver Cash or another Financial Asset to another Entity,
or
b) exchange Financial Assets or Financial Liabilities
with another Entity under conditions that are b) exchange Financial Assets or Financial Liabilities with
potentially favourable to the Entity. another Entity under conditions that are potentially
unfavourable to the Entity.
2.21 Subsequent measurement of the financial assets:
The Group’s financial liabilities include trade and other
(i) Financial assets carried at amortised cost
payables, loans and borrowings including bank overdrafts.
A financial asset is subsequently measured at amortised
2.23 Subsequent measurement of the financial liabilities:
cost if it is held within a business model whose objective
is to hold the asset in order to collect contractual cash Financial liabilities are subsequently carried at amortised
flows and the contractual terms of the financial asset cost using the effective interest method. For trade and other
give rise on specified dates to cash flows that are solely payables maturing within one year from the balance sheet
payments of principal and interest on the principal date, the carrying amounts approximate the fair value due to
amount outstanding. the short maturity of these instruments.
(ii) Financial assets at fair value through other 2.24 Derecognition of financial instruments:
comprehensive income
The Group derecognises a financial asset when the contractual
A financial asset is subsequently measured at fair value rights to the cash flows from the financial asset expire or
through other comprehensive income if it is held within it transfers the financial asset and the transfer qualifies for
a business model whose objective is achieved by both derecognition under Ind AS 109. A financial liability (or a
collecting contractual cash flows and selling financial part of a financial liability) is derecognised from the Group’s
assets and the contractual terms of the financial asset balance sheet when the obligation specified in the contract is
give rise on specified dates to cash flows that are solely discharged or cancelled or expires.
payments of principal and interest on the principal
2.25 Fair value of financial instruments:
amount outstanding. Further, in case where the Group
has made an irrevocable selection based on its business In determining the fair value of its financial instruments,
model, for its investments which are classified as equity the Group uses a variety of methods and assumptions that
instruments, the subsequent changes in fair value are are based on market conditions and risks existing at each
recognised in other comprehensive income. reporting date. The methods used to determine fair value
include discounted cash flow analysis, available quoted

144 NCC LIMITED

Notes forming part of the consolidated financial statements
market prices and dealer quotes. All methods of assessing 2.28 Fair value measurement:
fair value result in general approximation of value, and such
The Group measures certain financial instruments at fair value
value may or may not actually be realised.
at each reporting date. Fair value is the price that would
2.26 Receivable under Service concession arrangement: be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the
These arrangements are accounted for based on the
measurement date. The fair value measurement is based
nature of the consideration. The intangible asset model is
on the presumption that the transaction to sell the asset or
used to the extent that the Group bears the demand risk.
transfer the liability takes place either:
The financial asset model is used when the Group has an
unconditional contractual right to receive cash or another a. In the principal market for the asset or liability, or
financial asset from or at the direction of the grantor for
b. In the absence of principal market, in the most
the construction services. When the unconditional right to
advantageous market for the asset or liability.
receive cash covers only part of the service, the two models
are combined to account separately for each component. The fair value of an asset or a liability is measured using the
If the Group performs more than one service (i.e., construction assumptions that market participants would use when pricing
or upgrade services and operation services) under a single the asset or liability, assuming that market participants act in
contract or arrangement, consideration received or receivable their economic best interest.
is allocated by reference to the relative fair values of the services
delivered, when the amounts are separately identifiable. The Group uses valuation techniques that are appropriate in
the circumstances and for which sufficient data are available to
In the financial asset model, the amount due from the grantor measure fair value, maximising the use of relevant observable
meets the definition of a receivable which is measured at fair inputs and minimising the use of unobservable inputs.
value. It is subsequently measured at amortised cost. The
amount initially recognised plus the cumulative interest on that 2.29 Leases:
amount is calculated using the effective interest method. Any The Group assesses at contract inception whether a contract
asset carried under concession arrangements is derecognised is, or contains, a lease. That is, if the contract conveys the right
on disposal or when no future economic benefits are expected to control the use of an identified asset for a period of time in
from its future use or disposal or when the contractual rights exchange for consideration. At the date of commencement of
to the financial asset expire. the lease, the Group recognises a right-of-use asset (“ROU”)
2.27 Impairment of Assets: and a corresponding lease liability for all lease arrangements
in which it is a lessee, except short-term leases and low value
Intangible assets and property, plant and equipment: leases.
Intangible assets and property, plant and equipment are
evaluated for recoverability whenever events or changes in Ind AS 116 requires lessees to determine the lease term as
circumstances indicate that their carrying amounts may not the non-cancellable period of a lease adjusted with any option
be recoverable. For the purpose of impairment testing, the to extend or terminate the lease, if the use of such option is
recoverable amount (i.e. the higher of the fair value less cost reasonably certain. The Group makes an assessment on the
to sell and the value-in-use) is determined on an individual expected lease term on a lease-by-lease basis and thereby
asset basis unless the asset does not generate cash flows that assesses whether it is reasonably certain that any options
are largely independent of those from other assets. In such to extend or terminate the contract will be exercised. In
cases, the recoverable amount is determined for the Cash evaluating the lease term, the Group considers factors such
Generating Unit (CGU) to which the asset belongs. as any significant leasehold improvements undertaken over
the lease term, costs relating to the termination of the lease
If such assets are considered to be impaired, the impairment to and the importance of the underlying asset to the Group’s
be recognised in the Statement of Profit and Loss is measured operations taking into account the location of the underlying
by the amount by which the carrying value of the assets asset and the availability of suitable alternatives.
exceeds the estimated recoverable amount of the asset. An
impairment loss is reversed in the statement of profit and loss The Group applies the short-term lease recognition exemption
if there has been a change in the estimates used to determine to its short-term leases of premises and construction
the recoverable amount. The carrying amount of the asset equipment (i.e., those leases that have a lease term of 12
is increased to its revised recoverable amount, provided that months or less from the commencement date or the adoption
this amount does not exceed the carrying amount that would of Ind AS 116 and do not contain a purchase option). Lease
have been determined (net of any accumulated amortisation payments on short-term leases and leases of low-value assets
or depreciation) had no impairment loss been recognised for are recognised as expense on a straight-line basis over the
the asset in prior years. lease term.

Annual Report 2021-22 145

Notes forming part of the consolidated financial statements
2.30 Earnings Per Share : Items requiring
Assumption and estimation uncertainty
significant estimate
Basic earnings per equity share is computed by dividing the
net profit for the year attributable to the Equity Shareholders The Group reviews the estimated useful
by the weighted average number of equity shares outstanding lives, depreciation method and residual
during the year. Diluted earnings per share is computed by value of property plant and equipment at
Review of property,
dividing the net profit for the year, adjusted for the effects the end of each reporting period. During
plant and equipment
of dilutive potential equity shares, attributable to the Equity the current year, there has been no
Shareholders by the weighted average number of the equity change in life, depreciation method and
shares and dilutive potential equity shares outstanding during residual value considered for the assets.
the year except where the results are anti-dilutive. Some of The Group’s assets and
liabilities are measured at fair value for
2.31 Cash Flow Statement:
the financial reporting purposes. The
Cash flows are reported using the indirect method, whereby valuation committee which is headed by
profit / (loss) before extraordinary items and tax is adjusted the Chief Financial Officer determines
for the effects of transactions of non-cash nature and the appropriate valuation techniques and
any deferrals or accruals of past or future cash receipts or inputs for fair value measurements.
payments. The cash flows from operating, investing and In estimating the fair value of an asset or a
financing activities of the Group are segregated based on the liability, the Group uses market-observable
available information. Fair value data to the extent it is available. Where
Cash comprises cash on hand and demand deposits with banks. measurements and Level 1 inputs are not available, the Group
Cash equivalents are short-term balances (with an original valuation processes engages third party / internal qualified
maturity of three months or less from the date of acquisition), valuers to perform the valuation. Finance
highly liquid investments that are readily convertible into team works closely with the qualified
known amounts of cash and which are subject to insignificant external / internal valuers to establish
risk of changes in value. the appropriate valuation techniques and
inputs to the model. The Chief Financial
2.32 Critical judgments in applying accounting policies: Officer reports the valuation committee’s
The following are the critical judgments, apart from those findings to the Board of Directors about
involving estimations, that the directors have made in the the cause of fluctuations in the fair value
process of applying the Group’s accounting policies and that of the assets and liabilities.
have the most significant effect on the amounts recognised in
the financial statements. In assessing the recoverability of the
trade receivables and contracts assets,
(i) Revenue recognition: The Group uses the stage of Provision for doubtful
management’s judgement involves
completion method using survey method and /or on receivables and
consideration of aging status, evaluation of
completion of physical proportion of the contract work contract assets
litigations and the likelihood of collection
to measure progress towards completion in respect of based on the terms of the contract.
construction contracts. This method is followed when
Inventories are stated at the lower of
reasonably dependable estimates of costs applicable
cost and Fair value. In estimating the net
to various elements of the contract can be made. Key Estimation of net
realisable value / Fair value of Inventories,
factors that are reviewed in estimating the future costs realisable value of
The Group makes an estimate of future
to complete include estimates of future labour costs and inventories
selling prices and costs necessary to make
productivity efficiencies. Because the financial reporting
the sale.
of these contracts depends on estimates that are
assessed continually during the term of these contracts, The Group uses actuarial assumptions to
recognised revenue and profit are subject to revisions as determine the obligations for employee
the contract progresses to completion. When estimates benefits at each reporting period. These
Provision for
indicate that a loss will be incurred, the loss is provided assumptions include the discount rate,
employee benefits
for in the period in which the loss becomes probable. expected long-term rate of return on plan
assets, rate of increase in compensation
(ii) Key sources of estimation uncertainty: The following levels and mortality rates.
are the key assumptions concerning the future, and
other key sources of estimation uncertainty at the end
of the reporting period that may have a significant risk of
causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year
146 NCC LIMITED
Notes forming part of the consolidated financial statements
Items requiring 2.34 Operating cycle:
Assumption and estimation uncertainty
significant estimate
The Group adopts operating cycle based on the project period
Significant judgments are required in (including Defect Liability Period) and accordingly all project
determining the provision for income related assets and liabilities are classified into current and non
taxes, including the amount expected current. Other than project related assets and liabilities, 12
to be paid / recovered for uncertain tax months period is considered as normal operating cycle.
positions. The Group reviews the “MAT
Provision for taxes 2.35 Recent accounting pronouncements:
credit entitlement” asset at each reporting
date and writes down the asset to the Standards issued but not yet effective and not early
extent that it is no longer probable that adopted by the Group
it will pay normal tax during the specified
period. Ministry of Corporate Affairs (“MCA”) notifies new standard
or amendments to the existing standards. On March 23,
The Group is subjected to VAT assessments
2022, the MCA, issued certain amendments to Ind AS. The
in various states where projects were
amendments relate to the following standards:
executed. Basing on applicable VAT rules
of various states the Group estimated - Ind AS 101, First-time Adoption of Indian Accounting
the VAT liability and provided in the Standards
Indirect tax litigations
book of accounts. The VAT assessments
- Ind AS 103, Business Combinations
in different states are at different stages
and on some of the assessment orders, - Ind AS 107, Financial Instruments: Disclosures
the Group made appeals and they are at
- Ind AS 109, Financial Instruments
various tribunals and courts.
- Ind AS 16, Property, Plant and Equipment
2.33 Exceptional Items:
- Ind AS 37, Provisions, Contingent Liabilities and
Exceptional Items represents the nature of transactions which
Contingent Assets
are not in recurring nature during the ordinary course of
business but lead to increase / decrease in profit / loss for the These amendments are effective from April 01, 2022. The
year. Group believes that the aforementioned amendments will not
materially impact the financial statements of the Company.

Annual Report 2021-22 147

Notes forming part of the consolidated financial statements
Note 3
Property, Plant, Equipment and Capital Work-in-Progress: (` in crores)

Furniture Lease Hold

Plant and Construction Office Office Construction
Land Buildings and Improve- Total
Equipment Vehicles Vehicles Equipment Accessories
Fixtures ments

Cost:

Balance as at April 1,2020 67.74 62.15 928.01 14.79 186.60 93.68 65.56 17.24 803.48 2,239.25

Additions - 6.42 60.23 0.84 46.91 8.78 3.83 - 49.07 176.08

Disposals / Adjustments - 0.21 33.74 0.22 6.92 6.82 2.16 0.11 40.89 91.07

Effect of Foreign Currency - - 2.08 0.02 0.15 0.08 0.32 - 0.35 3.00
Exchange Differences

As at March 31, 2021 67.74 68.36 956.58 15.43 226.74 95.72 67.55 17.13 812.01 2,327.26

Additions 7.25 8.31 85.83 1.18 24.04 17.47 8.00 - 76.77 228.85

Disposals / Adjustments - (3.25) 115.11 1.32 22.29 6.39 10.35 - 34.07 186.28

Effect of Foreign Currency

- - 1.67 0.02 0.05 0.07 0.26 - 0.22 2.29
Exchange Differences

As at March 31, 2022 74.99 79.92 928.97 15.31 228.54 106.87 65.46 17.13 854.93 2,372.12

Depreciation:

Balance as at April 1, 2020 - 15.74 436.08 8.06 81.76 47.40 52.64 12.32 437.22 1,091.22

Depreciation - 5.08 61.95 1.10 16.95 8.44 4.56 3.54 78.79 180.41

Disposals / Adjustments - 0.08 29.38 0.19 6.59 6.17 2.04 0.11 31.37 75.93

Effect of Foreign Currency - - 1.54 0.02 0.12 0.07 0.30 - 0.30 2.35
Exchange Differences

As at March 31, 2021 - 20.74 470.19 8.99 92.24 49.74 55.46 15.75 484.94 1,198.05

Depreciation - 5.80 61.95 1.05 22.84 9.24 4.57 0.58 79.97 186.00

Disposals / Adjustments - (0.03) 85.06 1.24 20.44 5.26 9.81 - 30.13 151.91

Effect of Foreign Currency

- - 1.31 0.02 0.04 0.06 0.25 - 0.19 1.87
Exchange Differences

As at March 31, 2022 - 26.57 448.39 8.82 94.68 53.78 50.47 16.33 534.97 1,234.01

Net Block

As at March 31, 2021 67.74 47.62 486.39 6.44 134.50 45.98 12.09 1.38 327.07 1,129.21

As at March 31, 2022 74.99 53.35 480.58 6.49 133.86 53.09 14.99 0.80 319.96 1,138.11

Capital work in progress ` 7.35 crores (31.03.2021: ` 21.86 crores).

Note: Refer note 19 and 22 for details of assets pledged.

148 NCC LIMITED

Notes forming part of the consolidated financial statements
Note 3.1
Investment property & Investment property under construction: (` in crores)
Land - Freehold Buildings* Total
Cost:
Balance as at April 01, 2020 103.30 98.29 201.59
Additions 11.75 24.83 36.58
Disposals / Adjustments 4.06 10.92 14.98
As at March 31, 2021 110.99 112.20 223.19
Additions - 3.20 3.20
Disposals / Adjustments 2.74 18.78 21.52
As at March 31, 2022 108.25 96.62 204.87
Depreciation:
Balance as at April 01, 2020 - 5.86 5.86
Depreciation - 0.73 0.73
Disposals / Adjustments - 1.74 1.74
As at March 31, 2021 - 4.85 4.85
Depreciation - 0.73 0.73
Disposals / Adjustments - 0.33 0.33
As at March 31, 2022 - 5.25 5.25
Net Block
As at March 31, 2021 110.99 107.35 218.34
As at March 31, 2022 108.25 91.37 199.62
*Cost includes given under operating lease ` 27.95 crores (31.03.2021: ` 41.33 crores).
Investment property under construction ` 103.47 crores (31.03.2021: ` 68.10 crores).
Note: Refer note 19 and 22 for details of assets pledged and Note 29 for the details of Rental income.
Fair value of the investment property and investment property under construction
Details of the investment property and information about the fair value hierarchy as at March 31, 2022 and March 31, 2021 are as follows:
(` in crores)

Fair value Fair value as at Fair value as at

hierarchy March 31, 2022 March 31, 2021
Land Level 3 213.89 195.99
Buildings Level 3 182.27 198.40
Investment property under construction Level 3 127.85 82.86
Total 524.01 477.25
The internal technical team of the Company has valued for some of the properties at ` 364.55 crores (31.03.2021: ` 368.84 crores) and
the balance properties have been valued by independent valuer at ` 159.46 crores (31.03.2021: ` 108.41 crores). The Valuation is based
on Government rates, market research, market trend and comparable values as considered appropriate.

Annual Report 2021-22 149

Notes forming part of the consolidated financial statements
3.2 Other Intangible Assets (` in crores)
Computer Software Total
Cost:
Balance as at April 01, 2020 13.14 13.14
Additions 0.02 0.02
Disposals / Adjustments - -
As at March 31, 2021 13.16 13.16
Additions 0.02 0.02
Disposals / Adjustments - -
As at March 31, 2022 13.18 13.18
Amortisation:
Balance as at April 01, 2020 12.34 12.34
Amortisation 0.11 0.11
Disposals / Adjustments - -
As at March 31, 2021 12.45 12.45
Amortisation 0.01 0.01
Disposals / Adjustments - -
As at March 31, 2022 12.46 12.46
Net Block
As at March 31, 2021 0.71 0.71
As at March 31, 2022 0.72 0.72
3.3 The Group uses both internal technical team and independent valuers for fair valuation of the investment properties.
3.4 No proceeding has been initiated or pending against the Group for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

150 NCC LIMITED

Notes forming part of the consolidated financial statements
(` in crores)

As at March 31, 2022 As at March 31, 2021

Number of Number of
Amount Amount
Shares Shares
4 Investments
4.1 Non Current Investments
A Trade (Unquoted) (At Cost)
a In Associates (Equity method)
i) Investment in equity instruments
In Shares of ` 10 each, fully paid up
Paschal Form Work (India) Private Limited 6,549,892 - 6,549,892 -
Himalayan Green Energy Private Limited 1,000,000 - 1,000,000 -
Ekana Sportz City Private Limited (Refer note 19.2) 2,268,000 23.19 2,268,000 23.32
Brindavan Infrastructure Company Limited 8,643,036 12.44 8,643,036 12.46
Pondicherry Tindivanam Tollway Limited (Refer note 4.3) 3,388,040 - 3,388,040 -
Varapradha Real Estates Private Limited 13,344,973 80.22 13,344,973 78.67
In Shares of one USD each fully paid up
Apollonius Coal and Energy Pte Limited 3,778,757 15.86 3,778,757 15.55
Less: Provision for Impairment in value of Investments 15.86 8.00
- 7.55
In Shares of 1000 Dirham each fully paid up
Nagarjuna Facilities Management Services, L.L.C., Dubai 147 - 147 -
Total aggregate investments in Associates 115.85 122.00
b In Subsidiaries (Refer note 39.1)
Investment in equity instruments
In Equity Shares of "LKR" 10 each, fully paid up
NCC Urban Lanka Private Limited (Value in ` 7) 2 - 2 -
c In Other entities
Investment at Fair Value through Profit and Loss
SNP Developers and Projects LLP (Valued at ` 35,500 ) - -
SNP Ventures LLP - 2.18
SNP Property Developers LLP 0.01 0.01
NAC Quippo Equipment Services Limited 1,499,900 1.50 1,499,900 1.50
In Shares of ` 25 each, fully paid up
Akola Urban Co-operative Bank Limited - 0.01 4,040 0.01

Annual Report 2021-22 151

Notes forming part of the consolidated financial statements
(` in crores)

As at March 31, 2022 As at March 31, 2021

Number of Number of
Amount Amount
Shares Shares
Investment in debentures (Fair value through Profit and
d
Loss)
0% Compulsory Convertible Debentures
Gayatri Energy Ventures Private Limited (each ` 1,483) 1,619,928 240.24 1,619,928 240.24
Less: Provision for Impairment in value of Investments 30.51 30.51
209.73 209.73
Total aggregate investments in Other entities 211.25 213.43
Total 327.10 335.43
4.2 Current Investments
Investment at Fair Value through Profit and Loss Account
In Mutual Funds (Quoted)
L&T Mutual Fund - Debt Funds 102,21,912 17.65 36,417,343 89.17
Trust MF Banking & PSU Debt Fund 10,093 1.07 149,993 15.03
Total 18.72 104.20
Grand Total 345.82 439.63
Aggregate market value of current Quoted Investments 18.72 104.20
Aggregate amount of Unquoted Investments 373.47 373.94
Aggregate amount of impairment in value of investments 46.37 38.51
4.3 Of these 1,853,656 shares (31.03.2021: 1,853,656 shares) are pledged with Axis Bank Limited & WITCO as security for term loans
availed by Pondicherry Tindivanam Tollway Limited.

152 NCC LIMITED

Notes forming part of the consolidated financial statements
(` in crores)
As at March 31, 2022 As at March 31, 2021
5 Loans
Un-Secured, Considered good
Other Body Corporates 150.00 -
Loans and Advances to Related Parties
Associate
Considered Good - -
Significant increase in credit risk 13.91 13.91
13.91 13.91
Less : Allowance for significant increase in credit risk 13.91 13.91
- -
Other Loans and Advances
Considered Good - -
Significant increase in credit risk 26.67 26.67
26.67 26.67
Less : Allowance for significant increase in credit risk 26.67 26.67
- -
Total 150.00 -
6 Trade Receivables
Unsecured (Refer note 11.1 to 11.3 & 11.5)
Considered Good 109.90 143.22
Considered Doubtful 10.00 11.80
119.90 155.02
Less : Allowance for doubtful trade receivables 11.94 15.43
Total 107.96 139.59
7 Other Financial Assets
Un-Secured, Considered good
Other Receivables 0.50 0.56
Margin Money Deposits (Refer note 12.4) 139.49 71.25
In Deposit Accounts with remaining maturity more than 12
0.46 0.33
months
Interest accrued on loans
Considered Doubtful 1.08 1.08
1.08 1.08
Less : Allowance for doubtful interest 1.08 1.08
- -
Deposits with Customers and Others 0.83 4.39
Deposits - Joint Development (Refer note 7.1) 58.04 52.90
Receivable under service concession arrangement 86.26 129.39
Total 285.58 258.82
7.1 Deposits-Joint Development represents deposits with respective land owners against registered Joint Development Agreements
(JDAs)/Memorandum of Understanding (MOU). The lands under respective JDA’s /MOU are in the possession of NCC Urban. NCC
Urban is assessing the market scenario and accordingly initiate execution of the project/s at an appropriate time. Deposits - Joint
development are interest free, refundable deposits.

Annual Report 2021-22 153

Notes forming part of the consolidated financial statements
(` in crores)
As at March 31, 2022 As at March 31, 2021
8 Deferred Tax Assets (Net) (Refer note 52)
Deferred Tax 55.15 51.96
MAT - Minimum Alternate Tax 9.11 5.65
Total 64.26 57.61
9 Other Non - Current Assets
Advance for Purchase of Land (Refer note 9.1) 2.24 2.27
GST / Sales Tax / Value Added Tax credit receivable 113.70 113.68
Contract Asset
Due on performance of future obligations
Retention Money
Considered Good 70.65 59.70
Considered Doubtful - 10.00
70.65 69.70
Less : Allowance for doubtful retention money - 10.00
70.65 59.70
Unbilled revenue (Refer note 16.3)
Considered Good 48.75 50.66
Considered Doubtful 4.00 4.00
52.75 54.66
Less : Expected credit loss for unbilled revenue 4.00 4.00
48.75 50.66
Advances to Suppliers, Sub-contractors, Capital Advances and
233.60 233.60
Others (Refer note 9.2)
Total 468.94 459.91
9.1 Advances for Purchase of Land includes ` 2.24 crores (31.03.2021: ` 2.24 crores) paid towards two properties during the years from
2005-2006 to 2008-2009, by NCC Urban Infrastructure Limited (NCC Urban) in respect of which agreements were expired. NCC
Urban is confident of negotiating with the respective vendors for extension of the agreements and / or registration as per mutually
agreed terms or for recovery of advances.
9.2 Advances to Suppliers, Sub–contractors and others, includes advance to enterprises owned are significantly influenced by key
management personnel or their relatives ` 233.60 crores (31.03.2021: ` 233.60 crores).
(` in crores)
As at March 31, 2022 As at March 31, 2021
10 Inventories
Raw Materials 795.26 541.42
Raw Material in Transit 0.87 0.51
Work-in-progress 268.40 373.89
Property Development Cost 88.81 306.39
Total 1,153.34 1,222.21
11 Trade Receivables
Unsecured (Refer note 11.1 to 11.4 & 11.6)
Considered Good 2,559.68 2,745.62
Considered Doubtful 23.26 23.71
2,582.94 2,769.33
Less : Allowance for doubtful trade receivables 37.78 29.71
Total 2,545.16 2,739.62
11.1 Trade receivables are generally realisable from customers within a period of 30 days from the date of submission of bill / invoice.
11.2 In determining the allowance for trade receivables, the Group has used practical expedients based on financial condition of the
customer, ageing of the customer receivables and overdues, availability of collaterals and historical experience of collections from
customers. The concentration of risk with respect to trade receivables is reasonably low as most of the customers are Government
organisations though there may be normal delays in collections.

154 NCC LIMITED

Notes forming part of the consolidated financial statements
11.3 Movement in the allowance for doubtful trade receivables: (` in crores)
As at As at
March 31, 2022 March 31, 2021
Balance at beginning of the year 45.14 45.24
Add: Allowance for doubtful trade receivables 8.11 9.30
Less: Allowance written off during the year / transferred to contract asset (8.42) (9.40)
Balance at the end of the year 44.83 45.14
11.4 Trade receivables includes ` 29.23 crores (31.03.2021: ` 29.23 crores) from associates.
11.5 Ageing of Non-current Trade receivables as on 31.03.2022: (` in crores)
Outstanding from the due date of payment
Particulars Not yet Less than 6 months - More than
1-2 years 2-3 years Total
Due 6 months 1 year 3 years
Unsecured
Undisputed Trade receivables
Considered Good - - 0.81 1.78 30.90 4.96 38.45
Considered Doubtful - - - - - - -
Disputed Trade receivables
Considered Good - - 0.36 0.50 46.42 24.17 71.45
Considered Doubtful - - - - 5.00 5.00 10.00
- - 1.17 2.28 82.32 34.13 119.90
Less : Allowance for doubtful trade receivables 11.94
Total 107.96

Ageing of Non-current Trade receivables as on 31.03.2021: (` in crores)

Outstanding from the due date of payment
Particulars Not yet Less than 6 months - More than
1-2 years 2-3 years Total
Due 6 months 1 year 3 years
Unsecured
Undisputed Trade receivables
Considered Good 0.65 0.88 0.93 37.09 4.91 7.03 51.49
Considered Doubtful - - - - - - -
Disputed Trade receivables
Considered Good - 0.03 0.50 35.41 19.51 36.28 91.73
Considered Doubtful - - - 0.80 1.00 10.00 11.80
0.65 0.91 1.43 73.30 25.42 53.31 155.02
Less : Allowance for doubtful trade receivables 15.43
Total 139.59

Annual Report 2021-22 155

Notes forming part of the consolidated financial statements
11.6 Ageing of Current Trade receivables as on 31.03.2022: (` in crores)
Outstanding from the due date of payment
Particulars Not yet Less than 6 months - More than
1-2 years 2-3 years Total
Due 6 months 1 year 3 years
Unsecured
Undisputed Trade receivables
Considered Good 1,040.26 747.98 179.34 217.41 199.15 92.37 2,476.51
Considered Doubtful - - - - 5.26 13.00 18.26
Disputed Trade receivables
Considered Good - 1.18 - - 8.58 73.41 83.17
Considered Doubtful - - - - 1.00 4.00 5.00
1,040.26 749.16 179.34 217.41 213.99 182.78 2,582.94
Less : Allowance for doubtful trade receivables 37.78
Total 2,545.16

Ageing of Current Trade receivables as on 31.03.2021: (` in crores)

Outstanding from the due date of payment
Particulars Not yet Less than 6 months - More than
1-2 years 2-3 years Total
Due 6 months 1 year 3 years
Unsecured
Undisputed Trade receivables
Considered Good 843.66 863.21 328.48 505.57 87.16 46.30 2,674.38
Considered Doubtful - - - - 2.51 16.20 18.71
Disputed Trade receivables
Considered Good - - - 11.25 28.03 31.96 71.24
Considered Doubtful - - - - 2.00 3.00 5.00
843.66 863.21 328.48 516.82 119.70 97.46 2,769.33
Less : Allowance for doubtful trade receivables 29.71
Total 2,739.62

156 NCC LIMITED

Notes forming part of the consolidated financial statements
(` in crores)
As at March 31, 2022 As at March 31, 2021
12 Cash and Bank Balances
12.1 Cash and Cash Equivalents
Cash on hand 1.16 1.00
Balances with Banks :
In Current Accounts (Refer note 12.3) 242.25 190.46
In Deposit Accounts with original maturity less than 3 months 23.13 0.18
Total 266.54 191.64
12.2 Other Bank Balances
In Deposit Accounts
Margin Money Deposits (Refer note 12.4) 307.16 253.21
In Deposit Accounts with remaining maturity less than 12 months 15.01 50.57
Earmarked balances with Banks 322.17 303.78
Unpaid dividend accounts (Refer note 12.5) 0.52 0.54
Long Term Deposits (Refer note 12.6 & 12.7) 6.07 5.55
Escrow accounts (Refer note 37 (i) (a)) 3.07 3.07
Un-spent CSR account 2.16 -
11.82 9.16
Total 333.99 312.94
12.3 Current account balance includes ` Nil (31.03.2021: ` Nil) remittance in transit.
12.4 Margin Money Deposits have been lodged with Banks against Guarantees issued by them.
12.5 Represents Cash and Cash equivalents deposited in unpaid dividend account and are not available for use by the Group other than
specific purpose.
12.6 Includes deposits for Debt Service Reserve ` 0.69 crores (31.03.2021: ` 0.53 crores), pursuant to the conditions of term loan
agreement with Standard Chartered Bank.
12.7 Includes deposits for Debt Service Reserve ` 0.36 crores equal to three months interest as per the facility terms with ICICI Bank.

12.8 Changes in liabilities arising from financing activities (` in crores)

Balance As at As at
Cash Flows
April 01, 2021 March 31, 2022
Current borrowings (including current maturity) 1,892.43 (710.18) 1,182.25
Non-current borrowings 169.61 (49.43) 120.18
2,062.04 (759.61) 1,302.43
Add: Borrowing movement in Subsidiary sold during the year (refer note 45) - 13.60 -
Movement as per Cash flow statement (746.01)
(` in crores)
Balance As at As at
Cash Flows
April 01, 2020 March 31, 2021
Current borrowings (including current maturity) 1,941.65 (49.22) 1,892.43
Non-current borrowings 239.82 (70.21) 169.61
Total 2,181.47 (119.43) 2,062.04

Annual Report 2021-22 157

Notes forming part of the consolidated financial statements
(` in crores)

As at March 31, 2022 As at March 31, 2021

13 Loans
Unsecured considered good
Loans to Other Body Corporates 210.04 47.59
Security Deposits 0.23 0.22
Loans and Advances to Employees 6.79 4.84
Total 217.06 52.65
14 Other Financial Assets
Unsecured, considered good
Receivables 274.58 116.80
Deposits with Customers and Others
Considered Doubtful - 5.00
- 5.00
Less: Allowance for Doubtful Deposits - 5.00
- -
Interest Accrued on Deposits and Others 17.27 31.63
Unbilled Annuity Receivable 39.09 39.37
Other Receivables 11.40 11.41
Total 342.34 199.21
15 Non Current Tax Assets (Net)
Advance Taxes and Tax Deducted at Source (Net
151.66 80.54
of Provisions for tax)
15.1 Current Tax Assets (Net)
Advance Taxes and Tax Deducted at Source (Net
74.68 105.03
of Provisions for tax)

158 NCC LIMITED

Notes forming part of the consolidated financial statements
(` in crores)

As at March 31, 2022 As at March 31, 2021

16 Other Current Assets
Advances to Suppliers, Sub-contractors and Others (Refer note 16.1)
Considered Good 1,248.75 983.16
Considered Doubtful 10.29 17.95
1,259.04 1,001.11
Less : Allowance for doubtful advances 10.29 17.95
1,248.75 983.16
Contract Asset
Due on performance of future obligations
Retention Money (Refer note 16.2) 1,980.09 2,067.67
Others 345.21 472.95
Unbilled revenue (Refer note 16.3)
Considered Good 2,230.13 1,760.65
Considered Doubtful 138.16 108.15
2,368.29 1,868.80
Less : Expected credit loss for unbilled revenue 138.16 108.15
2,230.13 1,760.65
Prepaid Expenses 45.62 56.44
Project Facilities 39.97 -
Balances with Government Authorities
Sales Tax / Value Added Tax credit receivable 91.49 100.53
Goods and Service Tax credit receivable 519.50 400.23
Total 6,500.76 5,841.63

16.1 Advances to Suppliers, Sub–Contractors and Others, includes advances to related parties of ` 4.14 crores (31.03.2021: ` 17.62
crores).
16.2 Retention money receivable from associates for ` 21.03 crores (31.03.2021: ` 21.03 crores).
16.3 Movement in the Expected credit loss for unbilled revenue: (` in crores)

As at As at
March 31, 2022 March 31, 2021
Balance at beginning of the year 112.15 98.26
Add: Expected credit loss for unbilled revenue during the year / transferred from Trade
30.01 13.89
Receivables
Balance at the end of the year 142.16 112.15

Annual Report 2021-22 159

Notes forming part of the consolidated financial statements
(` in crores)

As at March 31, 2022 As at March 31, 2021

Number of Number of
Amount Amount
shares shares
17 Share Capital
Authorised :
Equity Shares of ` 2 each 807,500,000 161.50 750,000,000 150.00
Issued :
Equity Shares of ` 2 each (Refer note 17.1) 609,846,588 121.97 609,846,588 121.97
Subscribed and Paid up :
Equity Shares of ` 2 each 609,846,588 121.97 609,846,588 121.97
Total 121.97 121.97

17.1 Reconciliation of the number of equity shares and amount outstanding at beginning and at end of the year:
(` in crores)
Year Ended March 31, 2022 Year Ended March 31, 2021
Number of Number of
Amount Amount
shares shares
Balance at beginning of the year 609,846,588 121.97 609,846,588 121.97
Add: Issue of Share Capital - - - -
Balance at end of the year 609,846,588 121.97 609,846,588 121.97

17.2 Details of shares held by each shareholder holding more than 5% shares:
As at March 31, 2022 As at March 31, 2021
Number of Number of
% holding % holding
shares shares
Smt. Rekha Jhunjhunwala 667,33,266 10.94 667,33,266 10.94
A V S R Holdings Private Limited 635,56,225 10.42 627,66,225 10.29
17.3 Unclaimed equity shares of 25,984 (31.03.2021: 25,984) are held in "NCC Limited - Unclaimed suspense account" in trust.
17.4 Rights of the shareholders
The equity shares of the company having par value of ` 2 per share, rank pari passu in all respects including voting rights and
entitlement to dividend. Repayment of the capital in the event of winding up of the Company will inter alia be subject to the
provisions of Companies Act 2013, the Articles of Association of the Company and as may be determined by the Company in
General Meeting prior to such winding up.
17.5 The Company had issued and allotted 18,000,000 Convertible Warrants on February 12, 2021 at a price of ` 59.00 per Warrant
on preferential basis to the specified Promoters / Promoter Group of the Company, as per the provision of Chapter VII of the
SEBI ICDR Regulations. The Company has received the part payment (25% of total consideration) of ` 26.55 crores. As per
the said regulations the Warrants would be converted into equivalent number of equity shares of ` 2.00 each (at a premium
of ` 57.00 per share) on payment of the balance amount prior to expiry of 18 months from the date of issue of convertible
warrants.

160 NCC LIMITED

Notes forming part of the consolidated financial statements
17.6 Shares held by promoter group at the end of the year:

Change during the Change during the

As at 31.03.2020 As at 31.03.2021 As at 31.03.2022
S. FY 2020-21 FY 2021-22
Promoter Name
No No. of % of No. of % of No. of % of % of No. of % of
No. of shares
shares holding shares change shares holding change shares holding
1 Sri. A.A.V. Ranga 13,563,196 2.22% (1,580,000) (11.65%) 11,983,196 1.96% (10,000,000) (83.45%) 1,983,196 0.33%
Raju
2 Sri. A.S.N. Raju 5,782,985 0.95% (790,000) (13.66%) 4,992,985 0.82% - - 4,992,985 0.82%
3 Sri. A.G.K. Raju 6,109,080 1.00% (1,627,511) (26.64%) 4,481,569 0.73% - - 4,481,569 0.73%
4 Sri. J.V. Ranga Raju 2,465,916 0.40% - - 2,465,916 0.40% - - 2,465,916 0.40%
5 AVSR Holdings 49,653,278 8.14% 13,112,947 26.41% 62,766,225 10.29% 790,000 1.26% 63,556,225 10.42%
Private Limited
6 Sirisha Projects 12,144,158 1.99% 2,999,511 24.70% 18,610,669 3.05% - - 18,610,669 3.05%
Private Limited
7 Avathesh Property 3,467,000 0.57% - - - - - - - -
Developers Private
Limited*
8 Sri. A. Srinivas 3,076,668 0.50% (2,902,668) (94.34%) 174,000 0.03% - - 174,000 0.03%
Ramaraju
9 Sri. N.R. Alluri 8,858,806 1.45% (7,637,228) (86.21%) 1,221,578 0.20% - - 1,221,578 0.20%
10 Sri. U. Sunil 55,000 0.01% - - 55,000 0.01% - - 55,000 0.01%
11 Smt. A. Bharathi 124,059 0.02% - - 124,059 0.02% - - 124,059 0.02%
12 Sri. A.V.N. Raju 7,985,791 1.31% (2,255,051) (28.24%) 5,730,740 0.94% (790,000) (13.79%) 4,940,740 0.81%
13 Smt. A. Shyama 374,902 0.06% 189,000 50.41% 563,902 0.09% - - 563,902 0.09%
14 Smt. A. Subhadra 308,091 0.05% - - 308,091 0.05% - - 308,091 0.05%
Jyotirmayi
15 Smt. A. 7,288 0.00% - - 7,288 0.00% - - 7,288 0.00%
Satyanarayanamma
16 Smt. A. Arundhati 847,222 0.14% 295,800 34.91% 1,143,022 0.19% - - 1,143,022 0.19%
17 Smt. J. Sridevi 287,859 0.05% - - 287,859 0.05% - - 287,859 0.05%
18 Smt. BH. Kaushalya 41,590 0.01% 137,000 329.41% 178,590 0.03% - - 178,590 0.03%
19 Sri. J. Krishna 306,121 0.05% - - 306,121 0.05% - - 306,121 0.05%
Chaitanya Varma
20 Smt. A. Sridevi 113,884 0.02% - - 113,884 0.02% - - 113,884 0.02%
21 Smt. M. Swetha 1,225,530 0.20% - - 1,225,530 0.20% - - 1,225,530 0.20%
22 Smt. A. Neelavathi 73,281 0.01% - - 73,281 0.01% - - 73,281 0.01%
Devi
23 Sri. A. Sri Harsha 41,780 0.01% - - 41,780 0.01% - - 41,780 0.01%
Varma
24 Sri. A. Vishnu 15,100 0.00% - - 15,100 0.00% - - 15,100 0.00%
Varma
25 Smt. A. Sravani 333,450 0.05% 83,500 25.04% 416,950 0.07% 4,000 0.96% 420,950 0.07%
26 Smt. J. Sowjanya 559,166 0.09% - - 559,166 0.09% - - 559,166 0.09%
27 Smt. A. Suguna - 0.00% - - - 0.00% 70,00,000 100% 70,00,000 1.15%
28 Smt. U. Ramya - 0.00% - - - 0.00% 30,00,000 100% 30,00,000 0.49%
29 Narasimha 1,516,179 0.25% 680,000 44.85% 2,196,179 0.36% - - 2,196,179 0.36%
Developers Private
Limited
Total 119,337,380 19.57% 705,300 120,042,680 19.68% 4,000 120,046,680 19.68%
* Avathesh Property Developers Private Limited is merged with Sirisha Projects Private Limited with effect from April 1, 2020, being the appointed date as
per the scheme.

Annual Report 2021-22 161

Notes forming part of the consolidated financial statements
(` in crores)
As at March 31, 2022 As at March 31, 2021
18 Other Equity
18.1 Capital Reserve
Opening balance 7.78 7.03
Add / (Less) : Arising on account of Consolidation 0.67 0.75
Closing balance 8.45 7.78
18.2 Securities Premium 2,639.62 2,639.62
18.3 Debenture Redemption Reserve
Opening balance - 11.89
Less : Transfer to Retained Earnings - 8.51
Less : Transfer to Non Controlling Interests - 3.38
Closing balance - -
18.4 Legal / Statutory Reserve (Refer note 42)
Opening balance 25.14 25.88
Add / (Less): On account of Foreign Currency Fluctuation 0.84 (0.74)
Closing balance 25.98 25.14
18.5 Reserve Fund under Section 45 - IC of RBI Act, 1934 0.24 0.24
18.6 Money received against share warrants (Refer note 17.5) 26.55 26.55
18.7 General Reserve
Opening balance 1,135.18 935.18
Add : Transfer from Retained Earnings 250.00 200.00
Less : Arising on account of Consolidation (0.50) -
Closing balance 1,384.68 1,135.18
18.8 Retained Earnings (Refer note 18.8.a)
Opening balance 1,200.44 1,136.58
Add : Debenture Redemption Reserve (Reclassification) - 8.51
Add : Profit for the year 482.41 268.31
1,682.85 1,413.40
Less : Appropriations
Dividend distributed to equity shareholders (2021-22: ` 0.80 per
48.79 12.21
share (2020-21: ` 0.20 per share))
Transfer to General Reserve 250.00 200.00
Transfer to Capital Reserve 0.67 0.75
299.46 212.96
Closing balance 1,383.39 1,200.44
18.9 Other Components of Equity
Remeasurement gains / (losses) of the defined benefit plans (Net
(29.61) (27.51)
of tax)
Share of Other comprehensive income in Associates 0.01 0.01
Exchange differences in translating the financial statements
of foreign operations (Net of tax) / Adjustment on account of 41.46 41.88
Foreign currency fluctuation
Total 5,480.77 5,049.33
18.8. a For the year ended March 31, 2022, the Board of Directors have proposed a dividend of ` 2.00 per share. The dividend payable
on approval of the shareholders is ` 121.97 crores.

162 NCC LIMITED

Notes forming part of the consolidated financial statements
(` in crores)

As at March 31, 2022 As at March 31, 2021

Non Non
Current* Current*
Current Current
19 Borrowings
Debentures (refer to note 22.4 - 22.7)
Secured - at amortised cost
10.90% Redeemable, Non-Convertible Debentures (Refer note 19.1) - - - 15.60
11.50 % Redeemable, Non-Convertible Debentures (Refer note 19.1) - - 10.60 34.80
0.01 % Optionally Convertible Debentures (Refer note 19.2) 5.00 - 5.00 -
Term Loans :
Secured - at amortised cost
From Banks and Financial Institutions (Refer note 19.3) 79.59 58.87 132.43 210.77
From Other Parties (Refer note 19.4) 29.93 41.22 17.36 34.55
Unsecured - at amortised cost
From Other Parties (Refer note 19.5) - - - 12.90
Vehicle Loans
Secured - at amortised cost
From Banks (Refer note 19.6) 3.65 2.35 2.73 2.64
From Others (Refer note 19.6) 2.01 1.62 1.49 1.74
Total 120.18 104.06 169.61 313.00

* Current maturities are included in Note 22 - Borrowings.

19.1 Redeemable Non Convertible Debentures issued by OB Infrastructure Limited (OBIL) to L&T Infrastructure Finance Limited
with the following principle terms:
Debentures
Secured, Rated, Listed, Non Convertible Debentures.
During February 2014, OBIL issued 20,000 Series ‘A’ Secured, Rated, Listed, Redeemable, Non-Convertible Debentures of ` 1,00,000
each amounting to ` 200.00 crores, 5,000 Series ‘B’ Secured, Rated, Listed, Redeemable, Non-Convertible Debentures of ` 1,00,000
each amounting to ` 50.00 crores and 8,400 Series ‘C’ Secured, Rated, Listed, Redeemable, Non-Convertible Debentures of `1,00,000
each amounting to ` 84.00 crores to L&T Infra Finance Limited, Aggregate value of debentures issued was ` 334.00 crores. L&T Infra
Finance Limited subscribed the total debentures from Debenture Trustee of OBIL. Subsequently L&T Infra Finance Limited transferred
6176 Series “A” debentures of ` 1,00,000 each amounting ` 61.76 crores.
a) Interest
The interest rate payable on the debentures depends upon the ‘Rating’ by rating agency and in accordance with Clause 3.1 of
the Debenture Trust Deed entered between OBIL and IDBI Trusteeship Services Limited, being the Debenture Trustee. Present
applicable interest rate is as follows:-
Series ‘A’ Secured, Rated, Listed, Redeemable, Non-Convertible Debentures of ` 100,000 each - 10.90 % p.a. payable monthly
Series ‘B’ Secured, Rated, Listed, Redeemable, Non-Convertible Debentures of ` 100,000 each - 11.50 % p.a. payable monthly
Series ‘C’ Secured, Rated, Listed, Redeemable, Non-Convertible Debentures of ` 100,000 each - 11.50 % p.a. payable
monthly

Annual Report 2021-22 163

Notes forming part of the consolidated financial statements
b) Security
1) First pari passu charge on all OBIL’s tangible movable assets including vehicles both present and future save and except
the Project Assets
2) First pari passu charge on all the intangible assets of OBIL.
3) First pari passu charge over all accounts of OBIL including Debt Service Reserve Account (DSRA), Escrow account and the
subaccounts and all the funds from time to time deposited therein.
4) First pari passu charge over all receivables and all Authorised Investments or other securities including receivables from
NHAI of the Project, whatsoever nature both present and future subject to the provisions of the Transaction Documents.
5) Assignment by way of security, in :
- All the rights, title, interest, benefits, claims and demands whatsoever of OBIL in the Project Agreements;
- All the rights, title and interest of OBIL in, to and all the Clearances;
- All the rights, title, interest, benefits, claims and demands whatsoever of OBIL in any letters of credit, guarantees,
liquidated damages and performance bonds provided by any party to the Project Agreements;
- All the rights, title, interest, benefits, claims and demands whatsoever of OBIL under all insurance contracts;
6) A pledge on 54% (March 31, 2021: 54%) of the issued, paid up and voting equity share capital of OBIL held by the
promoters of OBIL.
c) Redemption Schedule (` in crores)
Date of Installments Series 'A' Series 'B' Series 'C' Total
June 15, 2022 & December 15, 2022 - - 10.60 10.60
June 15, 2021 & December 15, 2021 15.60 - 34.80 50.40
June 15, 2020 & December 15, 2020 30.00 - 19.80 49.80
June 15, 2019 & December 15, 2019 32.00 10.00 4.00 46.00
June 15, 2018 & December 15, 2018 40.80 - 1.00 41.80
June 15, 2017 & December 15, 2017 22.20 15.00 0.80 38.00
June 15, 2016 & December 15, 2016 17.60 15.00 2.00 34.60
June 15, 2015 & December 15, 2015 14.60 10.00 2.00 26.60
June 15, 2014 & December 15, 2014 14.80 - 9.00 23.80
February 21, 2014 12.40 - - 12.40
Total 200.00 50.00 84.00 334.00
Debentures were repaid during the financial year 2021-22 and received the NOC from Lenders.
19.2 Optionally Convertible Debentures by NCC Infra Limited
NCC Infra Limited issued optionally convertible debentures in to Equity at the option of the issuer at a future date after a term of 3
years, however not exceeding 5 years and pledged the shares of Ekana Sportz of ` 5.00 crores as security.
19.3 Term Loans from Banks and Financial Institutions
(i) Axis Bank Limited / Kotak Mahindra Bank / Indus Ind Bank Limited, YES Bank
- Secured by hypothecation of specific assets purchased out of the loan.
(ii) Canara Bank
- Exclusive charge on the entire equipment and machinery purchased out of the loan facility.
(iii) Bank of Baharain & Kuwait
- Exclusive charge on the entire equipment and machinery purchased out of the loan facility with a cover of minimum 1.15
times to be maintained throughout the tenor of the loan.
(iv) Karnataka Bank Ltd
- Exclusive Hypothecation charge on the machineries/equipments/ vehicles purchased out of the loan facility

164 NCC LIMITED

Notes forming part of the consolidated financial statements
The details of rate of interest and repayment terms of the loans are as under.
Number of Loans Outstanding balance
Interest Balance number of Frequency
outstanding As at As at (` in crores) Installments as at Commencing
S.No Particulars Range % of
From- To
31.03.2022 31.03.2021 31.03.2022 31.03.2021 per annum 31.03.2022 31.03.2021 Installments
October 10,
Axis Bank 8.26 to
(i) 1 18 0.05 11.53 1 5 to12 Monthly 2017 to April
Limited 9.60
20 ,2022
March 02,
Canara 2019 to
(ii) - 1 - 47.69 9.40 - 3 Quarterly
Bank December 02,
2021
Kotak December
Mahindra 7.57 to 20, 2018 to
(iii) 17 44 10.29 19.17 30 to 31 7 to 43 Monthly
Bank 8.10 October 10,
Limited 2024
Indus February 01,
8.95 to
(iv) Ind Bank 66 60 25.66 35.90 8 to 36 20 to 46 Monthly 2019 to April
9.76
Limited 15, 2025
Bank of November 30,
7.05 to
(v) Bahrain 1 1 44.97 41.62 6 to 12 10 Quarterly 2020 to May
9.45
and Kuwait 31, 2025
May 08,
8.05 to
(vi) Yes Bank 34 42 9.38 20.90 1 to 33 12 to 45 Monthly 2019 to Dec
9.40
15,2024
June 30, 2022
Karnataka
(vii) 2 - 6.89 - 8 30 - Monthly to March 19,
Bank Ltd
2025
(iv) Covid Emergency Line Of Credit-Term Loans
- Extension of existing security offered to Working Capital Demand Loans and Cash Credit facilities availed from consortium of
banks during the previous year and these loans were repaid during the financial year 2021-22.

Outstanding balance Interest Balance number of

As at (` in crores) Range Installments as at Monthly Installments
S.No. Particulars
% per Commencing From- To
31.03.2022 31.03.2021 annum 31.03.2022 31.03.2021
December 31, 2020 to
(i) Allahabad Bank - 4.32 7.50 - 2
May 31, 2021
January 31, 2021 to
(ii) Canara Bank - 35.33 8.35 - 15
June 30, 2022
February 28, 2021 to
(iii) Punjab National Bank - 4.44 8.10 - 16
July 31, 2022
November 30, 2020 to
(iv) State Bank Of India - 44.43 7.25 - 13
April 30, 2022
November 30, 2020 to
(v) Union Bank Of India - 15.38 8.00 - 13
April 30, 2022
January 31, 2021 to
(vi) Punjab & Sindh Bank - 2.37 8.75 - 15
June 30, 2022
March 31, 2021 to
(vii) Punjab National Bank (e. OBC) - 4.71 7.85 - 17
August 31, 2022

Annual Report 2021-22 165

Notes forming part of the consolidated financial statements
(vi) Loan of NCC Urban infrastructure Limited (NCC Urban) of ` Nil (March 31, 2021: ` 55.41 crores)
(a) NCC Urban entered into a Facility Agreement with Standard Chartered Bank for availing term loan aggregating to ` 65.00
crores to be utilised towards project development expenses of NCC Urban Mayfair Project, Yelhanka, Bengaluru North Taluk,
Karnataka.
(b) The Loan has a tenor of 60 months with moratorium of 30 months followed by equated quarterly repayments commencing
from 21st April 2023. The rate of interest, as at 31.03.2022 aggregates to 9.25%.
(c) First and Exclusive charge on Developer’s share of land and constructed property of the Project NCC Urban Mayfair situated at
Puttenahalli Village, Yelhanka, Bengaluru North Taluk, Karnataka.
(d) Exclusive charge on cash flows (receivables) generated from developer’s share of the Project.
(e) Corporate Guarantee of NCC Limited to the extent of ` 65.00 crores.
(f) ISRA in the form of lien-marked Fixed Deposit of an amount equivalent to 1 month interest of the total facility.
(g) The Facility was repaid during the financial year 2021-22 through refinancing.
(vii) Loan of NCC Urban infrastructure Limited (NCC Urban) of ` 31.48 crores (March 31, 2021: ` Nil)
(a) NCC Urban, during the year the entered into another Facility agreement with Standard Chartered Bank for a term loan
aggregating to `.95 crores with inner Over Draft limit of ` 26 crores.
(b) The Loan has a tenor of 46 months with moratorium of 27 months followed by equated quarterly repayments commencing
from 24th April 2023.The rate of interest is 9.25%.
(c) First and Exclusive charge on Developer’s share of land and constructed property of the Project NCC Urban Mayfair situated at
Puttenahalli Village, Yelhanka, Bengaluru North Taluk, Karnataka.
(d) Exclusive charge on cash flows (receivables) generated from developer’s share of the Project.
(e) Letter of Comfort from NCC Limited.
(f) ISRA in the form of lien-marked Fixed Deposit of an amount equivalent to 1 month interest of the total facility.
(viii) Loan of NCC Urban infrastructure Limited (NCC Urban) of ` 9.74 crores (March 31, 2021: ` Nil)
(a) NCC Urban, during the year has entered into a Facility agreement with ICICI Bank for a term loan aggregating to ` 15 crores
with inner Over Draft limit of ` 2 crores towards expenses for other projects.
(b) The rate of interest is 9.50%, repayable with 12 monthly installments from November 15, 2022.
(c) DSR equal to 3 months interest to be maintained.
19.4 i) Term Loans from Other Parties:-
Secured by hypothecation of specific assets purchased out of loan, comprising Plant and Machinery and Construction equipment.
The details of rate of interest and repayment terms of term loans are as under.

166 NCC LIMITED

Notes forming part of the consolidated financial statements
Number of Loans Outstanding balance
Interest Balance number of
outstanding As at As at (` in crores)
Range Installments as at Frequency of Commencing
S.No. Particulars
% per Installments From- To
31.03.2022 31.03.2021 31.03.2022 31.03.2021 annum 31.03.2022 31.03.2021

August 21,
Tata Capital Financial 7.60 to Monthly / 2019 to
(i) 5 4 45.49 32.04 3 to 21 1 to 33
Services Limited* 10.50 Quarterly December 03,
2023

Daimler Financial October 13,

(ii) Services India (Private) - 2 - 0.82 8.42 - 4 to 5 Monthly 2018 to August
Limited 04, 2021

February
Volvo Financial
7.10 to 07, 2021 to
(iii) Services (India) Private 27 42 25.66 19.05 21 to 32 12 to 33 Monthly
8.04 November 15,
Limited
2024

*Term Loan from Tata Capital Financial Services Limited, for March 31, 2022 ` 45.39 crores, March 31, 2021 ` 32.04 crores
is secured by:
- First and Exclusive Charge on the assets being procured / financed and Collateral Charge on two properties.
19.5 Unsecured term loan from other parties
- These loans were repaid during the financial year 2021-22.
Interest
Number of Loans Outstanding balance As Balance number of Frequency
Range % Commencing
S.No. Particulars outstanding As at at (` in crores) Installments as at of
per annum From- To
Installments
31.03.2022 31.03.2021 31.03.2022 31.03.2021 31.03.2022 31.03.2021
Hewlett Packard July 31, 2018
8.99 to
(i) Financial Services - 7 - 10.45 - 1 to 4 Quarterly to January 31,
9.52
Limited 2022
CISCO Systems May 10, 2018
5.02 to
(ii) Capital Private - 5 - 2.45 - 1 to 2 Quarterly to August 05,
8.66
Limited 2021

19.6 Vehicle Loans

Vehicle loans are secured by hypothecation of the vehicles financed through the loan arrangements. Such loans are repayable in
equal monthly installments over a period of 3 to 5 years and carry interest rate ranging between 7.20% to 9.50% per annum.
Construction equipment loan:- Loan availed for purchase of construction equipments are secured by hypothecation of construction
equipment acquired out of the said loans. Such loans are repayable in equal monthly installments over a period of 3 years and carry
interest rate ranging between 7.30 % to 9.24 % per annum.
(` in crores)

As at March 31, 2022 As at March 31, 2021

20 Trade Payables (Refer note 23.1)
Retention Money 25.64 26.57
21 Provisions
Provision for Employee Benefits
Compensated absences 1.53 1.50
Gratuity (Refer note 21.1) 56.35 48.60
Total 57.88 50.10

Annual Report 2021-22 167

Notes forming part of the consolidated financial statements
21.1 In accordance with the Payment of Gratuity Act, 1972 the Group provides for gratuity covering eligible employees. The liability on
account of gratuity is covered partially through a recognized Gratuity Fund managed by Life Insurance Corporation of India (LIC)
and balance is provided on the basis of valuation of the liability by an independent actuary as at the year end. The management
understands that LIC overall portfolio of assets is well diversified and as such, the long term return on the policy is expected to be
higher than the rate of return on Central Government bonds.
A Defined benefit plans
(i) Liability for gratuity as on March 31, 2022 is ` 73.93 crores (31.03.2021: ` 65.22 crores) of which ` 3.21 crores (31.03.2021:
` 2.36 crores) is funded with the Life Insurance Corporation of India. The balance of ` 70.72 crores (31.03.2021:` 62.86 crores)
is included in Provision for Gratuity.
(ii) Details of the Group’s post-retirement gratuity plans for its employees including whole-time directors are given below, which is
certified by the actuary.
Amount to be recognised in Balance Sheet: (` in crores)

As at As at
March 31, 2022 March 31, 2021
Present Value of Funded Obligations 73.93 65.22
Fair Value of Plan Assets (3.21) (2.36)
Net Liability 70.72 62.86

(iii) Expenses to be recognized in Statement of Profit and Loss under Employee Benefit Expenses: (` in crores)

Year Ended Year Ended

March 31, 2022 March 31, 2021
Current Service Cost 6.29 5.64
Interest on Defined Benefit Obligation 4.34 3.19
Expected Return on Plan assets (0.25) (0.21)
Total included in "Employee Benefits Expense" 10.38 8.62

(iv) Expenses to be recognized in Statement of Profit and Loss under Other Comprehensive Income: (` in crores)

Year Ended Year Ended

March 31, 2022 March 31, 2021
Return on Plan Assets 0.08 0.02
Net Actuarial Losses / (Gains) Recognised in Year 2.76 12.01
Total included in "Other Comprehensive Income" 2.84 12.03

168 NCC LIMITED

Notes forming part of the consolidated financial statements
(v) Reconciliation of benefit obligation and plan assets for the year: (` in crores)
Year Ended Year Ended
March 31, 2022 March 31, 2021
Change in Defined Benefit Obligation
Opening Defined Benefit Obligation 65.22 59.72
Current Service Cost 6.29 5.64
Interest Cost 4.34 3.19
Actuarial Losses / (Gain) 2.76 12.00
Benefits Paid (4.68) (15.33)
Closing Defined Benefit Obligation 73.93 65.22
Opening Fair Value of Plan assets 2.36 4.10
Expected Return on Plan Assets 0.17 0.19
Contributions 5.36 13.40
Benefits Paid (4.68) (15.33)
Closing Fair Value of Plan Assets 3.21 2.36
Expected Employer's Contribution Next Year 15.00 15.00
(vi) Asset information: (` in crores)
As at As at
March 31, 2022 March 31, 2021
Category of Assets
Insurer Managed Funds –Life Insurance Corporation of India 100% 100%
Amount - ` in crores 3.21 2.36

(vii) Experience Adjustments: (` in crores)

2021 - 22 2020 - 21 2019 - 20 2018 - 19 2017 - 18
Defined Benefit Obligations (DBO) 73.93 65.22 59.72 46.18 37.33
Plan Assets 3.21 2.36 4.10 6.49 3.35
Surplus/(Deficit) (70.72) (62.86) (55.62) (39.69) (33.98)

(viii) Sensitivity Analysis: (` in crores)

Gratuity Plan
As at As at
March 31, 2022 March 31, 2021
Assumptions
Discount rate 7.33% 6.91%
Estimated rate of return on plan assets 7.35% 6.84%
Expected rate of salary increase 6.00% 5.00%
Attrition rate 14.60% 18.61%
Sensitivity analysis – DBO at the end of the year
Discount rate + 100 basis points (4.10%) 3.50%
Discount rate - 100 basis points 4.50% 3.80%
Salary increase rate +1% 4.40% 3.80%
Salary increase rate -1% (4.10%) (3.60%)
Attrition rate +1% 0.20% 0.20%
Attrition rate -1% (0.30%) (0.20%)
The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation
as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

Annual Report 2021-22 169

Notes forming part of the consolidated financial statements
(ix) The following pay-outs are expected in future years: (` in crores)

Particulars March 31, 2022

March 31, 2023 14.08
March 31, 2024 11.13
March 31, 2025 9.81
March 31, 2026 8.52
March 31, 2027 7.96

(` in crores)

As at As at
March 31, 2022 March 31, 2021
22 Borrowings
Loans repayable on demand
Secured Loans - Banks
Working Capital Demand Loan (Refer note 22.1) 1,004.96 1,223.54
Cash Credits and Overdrafts (Refer note 22.1) 2.77 256.43
Current maturities of Long Term Borrowings (Refer note 19) 104.06 313.00
From Others (Refer note 22.2) 15.64 15.74
Unsecured Loans
From Others (Refer note 22.3) 54.82 83.72
Total 1,182.25 1,892.43

22.1 Working Capital Demand Loans of ` 1,004.96 crores (March 31, 2021: ` 1,223.54 crores) and Cash Credit facilities of ` 2.77 crores
(March 31, 2021: ` 204.37 crores) availed from consortium of banks are secured by:
a) Hypothecation against first charge on stocks, book debts and other current assets of the Company, (excluding specific projects)
both present and future, ranking parri passu amongst consortium banks.
b) Collateral Security pari passu first charge (Hypothecation / Pledge) amongst the members of consortium on unencumbered
movable fixed assets of the Company at WDV (specific assets) and equity Shares 444,600,000 (31.03.2021: 374,412,894) of
NCC Infrastructure Holdings Limited and equity shares 100,000,000 (31.03.2021: Nil) of NCC Urban Infrastructure Limited.
These equity shares have been pledged with SBICAP Trustee Company Limited (Security trustee) on behalf of consortium of
working capital lenders.
c) Equitable mortgage of sixteen properties (Land & Buildings).
d) Personal Guarantee of Sri. A A V Ranga Raju, Sri A G K Raju & Sri A S N Raju.
These facilities carry an interest rate of 8.40% to 10.05% per annum.
e) Loans of ` Nil crores (March 31, 2021: ` 52.06 crores) of Nagarjuna Construction Company International L.L.C.
Bank Dhofar borrowings are secured either / and - or as:
- Assignment of project receivables.
22.2 Loans of ` 15.64 crores (March 31, 2021: ` 15.74 crores) of NCC Urban Infrastructure Limited.
NCC Urban Infrastructure Limited during the Financial year 2020-21, entered into a Loan Agreement with Aditya Birla Finance
Limited for availing term loan aggregating to ` 30.00 crores. Term Loan carry an interest rate of 11.50% by securing NCC Limited
Shares held by the promoter group. Total outstanding was repaid during the period and the Company has requested for renewal for
the term loan for ` 15.90 crores against which ` 15.64 crores were disbursed with an interest rate of 9.50% by securing NCC Limited
Shares held by the promoter group. The validity of the said Facility is till October 31, 2022.

170 NCC LIMITED

Notes forming part of the consolidated financial statements
22.3 Unsecured - term loans from Others:
Includes loans of NCC Urban Infrastructure Limited taken from Other Corporates and Directors having a maturity of less than one
year and outstanding balance of ` 54.82 crores (31.03.2021: ` 83.72 crores) and carry interest rate ranging between 11.00% to
12.00 % per annum.
22.4 The Group used the borrowings from banks and financial institutions for the specific purpose for which it was taken.
22.5 The Group has borrowings from banks on the basis of security of current assets, and the quarterly returns and statements of current
assets filed by the Company with banks are in agreement with the books of accounts.
22.6 The Group has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of
funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries).
22.7 The Group is not declared as a wilful defaulter by any bank or financial Institution or other lender during the financial year.
(` in crores)
As at March 31, 2022 As at March 31, 2021
23 Trade Payables (Refer note 23.2)
Micro and small enterprises 34.25 51.99
Other than micro and small enterprises
Acceptances 686.83 377.71
Other than Acceptances (includes retention money payable) 3,676.72 3,398.82
4,363.55 3,776.53
Total 4,397.80 3,828.52

23.1 Ageing of Non-current Trade payables as on 31.03.2022: (` in crores)

Outstanding from the due date of payment
Particulars Less than More than
Not Due 1-2 years 2-3 years Total
1 year 3 years
(i) MSME - - - - - -
(ii) Others 19.66 5.98 - - - 25.64
(iii) Disputed dues - MSME - - - - - -
(iv) Disputed dues - Others - - - - - -
Total 19.66 5.98 - - - 25.64

Ageing of Non-current Trade payables as on 31.03.2021: (` in crores)

Outstanding from the due date of payment
Particulars Less than More than
Not Due 1-2 years 2-3 years Total
1 year 3 years
(i) MSME - - - - - -
(ii) Others 20.48 6.09 - - - 26.57
(iii) Disputed dues - MSME - - - - - -
(iv) Disputed dues - Others - - - - - -
Total 20.48 6.09 - - - 26.57

Annual Report 2021-22 171

Notes forming part of the consolidated financial statements
23.2 Ageing of Current Trade payables as on 31.03.2022: (` in crores)
Outstanding from the due date of payment
Particulars Less than More than
Not Due 1-2 years 2-3 years Total
1 year 3 years
(i) MSME - 34.25 - - - 34.25
(ii) Others 2,256.78 1,343.99 11.79 12.91 56.57 3,682.04
(iii) Disputed dues - MSME - - - - - -
(iv) Disputed dues - Others 13.32 - - - 7.89 21.21
2,270.10 1,378.24 11.79 12.91 64.46 3,737.50
Accrued expenses 660.30
Total 4,397.80

Ageing of Current Trade payables as on 31.03.2021: (` in crores)

Outstanding from the due date of payment
Particulars Less than More than
Not Due 1-2 years 2-3 years Total
1 year 3 years
(i) MSME - 51.99 - - - 51.99
(ii) Others 1,963.46 1,070.33 12.93 54.28 1.46 3,102.46
(iii) Disputed dues - MSME - - - - - -
(iv) Disputed dues - Others 13.32 - 1.37 22.67 0.45 37.81
1,976.78 1,122.32 14.30 76.95 1.91 3,192.26
Accrued expenses 636.26
Total 3,828.52

(` in crores)
As at March 31, 2022 As at March 31, 2021
24 Other Financial Liabilities
Interest Accrued but not due on borrowings and others 87.31 73.68
Unpaid Dividend Accounts (Refer note 12.5) 0.52 0.54
Other Payables
Interest Accrued on Trade Payables 0.10 0.52
Other Liabilities 11.42 24.61
Total 99.35 99.35
25 Provisions
Provision for Employee Benefits
Compensated absences 50.43 42.96
Gratuity (Refer note 21.1) 14.37 14.26
Provision for contractual obligations (Refer note 25.1) 14.41 66.01
Total 79.21 123.23

In respect of subsidiary OB Infrastructure Limited provision has been made for contractual obligations based on its assessment
25.1
of the amount it estimates to incur to meet such obligations, details of which are given below:

172 NCC LIMITED

Notes forming part of the consolidated financial statements
(` in crores)
As at As at
March 31, 2022 March 31, 2021
Balance at beginning of the year 66.01 61.09
Additions (including Unwinding Interest) 23.80 7.23
Incurred during the year 75.40 2.31
Balance at the end of the year* 14.41 66.01
(` in crores)
As at March 31, 2022 As at March 31, 2021
26 Current Tax Liabilities (Net)
Provision for Tax (Net of Advance Tax) 2.17 2.35
27 Other Current Liabilities
TDS / Service Tax / Other payable 31.98 28.85
Goods and Service Tax payable 4.84 7.08
Contract Liabilities
Mobilisation Advance from Customers 2,056.85 1,408.93
Advances from Customers 281.74 204.01
Advances from others 97.28 119.13
Other Liabilities 124.67 110.31
Total 2,597.36 1,878.31

(` in crores)
Year Ended March 31, 2022 Year Ended March 31, 2021
28 Revenue from Operations
Income from Contracts and Services 10,786.80 7,672.21
Income from Real Estate Projects 280.45 198.62
Other Operating Income 70.71 78.59
Total 11,137.96 7,949.42
29 Other Income
Interest Income
On Deposits and Others 19.72 25.72
On Loans and Advances 5.82 1.22
On Income Tax refund 8.35 8.44
On Others 4.75 6.98
Profit on Sale of Investment (Net) 2.06 1.30
Gain on remeasuring investment at FVTPL (Net) 1.72 8.96
Net Gain / (loss) on foreign currency transactions 3.49 1.15
Other Non-Operating Income
Rental Income from operating lease on investment property 3.71 5.47
Profit on Sale of Property, Plant and Equipment / Investment
- 24.26
Property (Net)
Miscellaneous Income 21.10 32.41
Total 70.72 115.91

Annual Report 2021-22 173

Notes forming part of the consolidated financial statements
(` in crores)
Year Ended March 31, 2022 Year Ended March 31, 2021
30 Cost of Materials Consumed 3,484.62 2,426.56
31 Construction Expenses
Transport Charges 46.38 42.38
Operation and Maintenance
Machinery 383.39 331.94
Others 18.39 13.61
401.78 345.55
Hire Charges for Machinery and others 165.37 107.38
Power and Fuel 41.90 31.74
Technical Consultation 72.37 50.80
Royalties, Seigniorage and Cess 46.80 16.88
Property Development Cost 7.80 0.86
Other Expenses 433.01 296.14
Expected credit loss for unbilled revenue 30.01 10.36
797.26 514.16
Total 1,245.42 902.09
32 Changes in Inventories of Work in Progress
Opening Balance 373.89 422.79
Closing Balance 268.40 373.89
Total 105.49 48.90
33 Employee Benefits Expense
Salaries and Other Benefits 410.76 347.10
Contribution to Provident Fund and Other Funds 30.14 26.62
Staff Welfare Expenses 11.76 6.78
Total 452.66 380.50
33.1 Refer note 21.1 for expenses recognised for gratuity of employees.
34 Finance Costs
Interest Expense on
Borrowings
Debentures 1.43 9.45
Term Loans 21.58 35.88
Working Capital Demand Loans and Cash Credit 159.30 163.87
Mobilisation Advance 117.78 116.00
Others 36.15 17.26
336.24 342.46
Other Borrowing Costs
Commission on - Bank Guarantees 107.83 111.15
- Letters of Credit 22.02 14.64
129.85 125.79
Bank and Other Financial Charges 11.98 11.66
Total 478.07 479.91

174 NCC LIMITED

Notes forming part of the consolidated financial statements
(` in crores)

Year Ended March 31, 2022 Year Ended March 31, 2021
35 Other Expenses
Rent 60.61 51.05
Travelling and Conveyance 22.29 16.30
Office Maintenance 28.39 21.83
Electricity Charges 8.75 9.28
Rates and Taxes 7.22 7.79
Consultation Charges 13.94 7.44
Postage, Telegrams and Telephones 3.10 3.15
Insurance 10.25 9.75
Printing and Stationery 5.29 4.52
Legal and Professional Charges 24.11 15.23
Auditors' Remuneration 1.88 1.48
Directors' Sitting Fees 0.41 0.54
Trade Receivables / Advances Written off 1.01 3.51
Loss on Sale of Property, Plant and Equipment / Investment
3.97 -
Property (Net)
Provision for Doubtful Trade Receivables / Advances / Others 13.66 19.39
Tender Schedule Expenses 1.38 1.37
Donations 3.55 0.80
CSR Expenditure (Refer note 49) 11.03 12.60
Software Acquisition Expenses 4.90 2.70
Repairs & Maintenance 7.34 4.80
Digitization Expenses 6.79 -
Miscellaneous Expenses 17.13 18.95
Total 257.00 212.48
36 Tax Expense
Current Tax 147.17 93.65
Earlier year taxes (net) (0.59) (76.75)
Deferred Tax (5.93) 62.58
Total 140.65 79.48
36.1 Tax expense for the year ended March 31, 2021 is after accounting of tax credit of ` 32.03 crores on receipt of intimation of
assessment from department for earlier year.

Annual Report 2021-22 175

Notes forming part of the consolidated financial statements
36.2 Reconciliation of tax expense to the accounting profit is as follows: (` in crores)

Year Ended Year Ended

March 31, 2022 March 31, 2021
Accounting profit before tax 634.68 362.52
Tax expense at statutory tax rate at 25.168% 159.74 91.24
Adjustments:
Effect of income that is exempt from taxation (0.49)
Adjustments recognised in the current year in relation to
(2.88) (76.43)
the current tax of prior years
Effect of expenses that are not deductible in determining
14.35 6.88
taxable profit
Effect of capital gains set off with unused capital losses (47.51) (0.23)
Reversal of MAT credit due to adoption of new tax rate 0.93 26.71
Adjustments recognised in the current year in relation to
23.25
the MAT credit / reversal of DTA of prior years
Losses and tax offsets not considered for deferred tax asset 13.49 7.04
Others including effect of different tax rate in joint 2.53 1.51
operations and Subsidiaries
(19.09) (11.76)
Tax expense reported in the Statement of Profit and Loss 140.65 79.48

36.3 Income tax credit / (expense) recognized in Other Comprehensive Income: (` in crores)

Year Ended Year Ended

March 31, 2022 March 31, 2021
Tax effect on actuarial gains/losses on defined benefit obligations 0.72 0.82
36.4 No additions made in the income tax assessments in the current year (31.03.2021: ` Nil).

176 NCC LIMITED

Notes forming part of the consolidated financial statements
37 Contingent Liabilities and Commitments (to the extent not provided for)
(i) Contingent Liability (` in crores)

As at As at
March 31, 2022 March 31, 2021
(a) Matters under litigation
Claims against the company not acknowledged as debt*
- Disputed sales tax / entry tax liability for which the Group & associates preferred appeal 290.53 287.82
Disputed central excise duty relating to clearance of goods of LED division in favour of
- 0.46 0.46
Developers of SEZ, for which the Company has filed an appeal to CESTAT, Bangalore
- Disputed service tax liability for which the Group preferred appeal 96.31 96.31
- Others 40.50 40.50
(Includes claim by National Highway Authority of India (NHAI) towards certain operating
non-compliances by a subsidiary. NHAI has written to the subsidiary's Escrow Agent
M/s. IDBI Bank Limited to hold ` 3.07 crores (31.03.2021: ` 3.07 crores) in Escrow
account pending recovery. The subsidiary has represented to NHAI for releasing the
amount kept on hold and is confident of a favourable decision by the NHAI).
* Interest, if any, not ascertainable after date of order.
(b) Share of group in contingent liabilities of Associates. 0.02 0.02
The Group has filed claims and has also filed counter claims in several legal disputes
related to construction contracts and same are pending before legal authorities. The
Management does not expect any material adverse effect on its financial position.
(ii) Commitments (` in crores)
As at As at
March 31, 2022 March 31, 2021
Estimated amount of contracts remaining to be executed on capital account and not
(a) 108.59 1.61
provided for.
Future Export commitments on account of import of machinery and equipments at
(b) 1.76 1.76
concessional rate of duty under EPCG scheme.

Annual Report 2021-22 177

Notes forming part of the consolidated financial statements
38. Related Party Transactions
i) Following is the list of related parties and relationships:
S.No Particulars S.No Particulars
Enterprises owned or significantly influenced by key
A) Subsidiaries (Refer note 39 & 39.1) E)
management personnel or their relatives
B) Associates (Refer note 39) 36 NCC Blue Water Products Limited
C) Key Management Personnel 37 NCC Finance Limited ^
1 Sri. A.A.V. Ranga Raju 38 Shyamala Agro Farms LLP@@@
2 Sri. A.S.N. Raju 39 Ranga Agri Impex LLP
3 Sri. A.G.K. Raju 40 NCC Foundation
4 Sri. A.V.N. Raju 41 Sirisha Projects Private Limited###
5 Sri. J.V. Ranga Raju 42 Narasimha Developers Private Limited
6 Sri. Utpal Hemendra Sheth 43 Avathesh Property Developers Private Limited###
7 Smt. Renu Challu 44 Arnesh Ventures Private Limited
8 Sri. Ravi Shankararamiah@@ 45 AVSR Holdings Private Limited
9 Sri. Hemant Madhusudan Nerurkar 46 Sridevi Properties
10 Dr. Durga Prasad Subramanyam Anapindi 47 Matrix Security and Surveillance Private Limited
11 Sri. Om Prakash Jagetiya# 48 Jampana Constructions Private Limited
12 Sri. R.S. Raju$ 49 Shri Aruna Constructions Private Limited**
13 Sri. K. Krishna Rao* 50 NCC Urban Infrastructure Company Limited, Dubai
14 Sri. M.V. Srinivasa Murthy
D) Relatives of Key Management Personnel
15 Dr. A.V.S. Raju
16 Smt. A. Satyanarayanamma
17 Sri. N.R. Alluri
18 Sri. A. Srinivasa Rama Raju
19 Smt. BH. Kaushalya
20 Smt. J. Sridevi
21 Smt. J. Sowjanya
22 Smt. A. Arundhati
23 Smt. M. Swetha
24 Sri. J. Krishna Chaitanya Varma
25 Smt. A. Subhadra Jyotirmayi
26 Smt. A. Shyama
27 Smt. A. Suguna
28 Sri. A. Sri Harsha Varma
29 Sri. S.R.K. Surya Srikrishna Raju
30 Sri. A. Vishnu Varma
31 Smt. A. Nikitha
32 Sri. U. Sunil
33 Sri. P.Manoj Raj##
34 Smt. A. Sravani
35 Smt. U Ramya
# Key Management Person with effect from December 30, @@ Key Management Person upto November 9, 2020.
2020. ## With effect from August 14, 2020
$ Key Management Person upto November 30, 2020. ** Ceased to be enterprises owned or significantly influenced by
* Key Management Person with effect from December 01, key management with effect from March 31, 2021.
2020. ### Avathesh Property Developers Private Limited is merged with
@@@ Converted into LLP with effect from June 28,2021. Sirisha Projects Private Limited with effect from April 1, 2020,
^ Liquidated with effect from February 19, 2021. being the appointed date as per the scheme.

178 NCC LIMITED

Notes forming part of the consolidated financial statements
(ii) Related Party transactions during the year are as follows: (` in crores)
Enterprises owned and
Key Management significantly influenced
S.No Particulars Associates
personnel and relatives by key management
personnel or their relatives
2021 - 22 2020 - 21 2021 - 22 2020 - 21 2021 - 22 2020 - 21
1 Loans received - 60.00 45.00 -
2 Loan repaid - 7.28 14.50 30.50 17.46
3 Advances granted - - - - 4.91 67.50
4 Advances Repayment received / Adjusted - 11.26 - - - 1.23
5 Advances repaid / adjusted 0.09 -
Mobilisation Advance recovered /
6 - - - - 7.10
adjusted by the Group
7 Remittance to Trade Payables 0.86 - - - 3.88 13.41
8 Trade/Accounts Receivables realised - 0.24 - - - -
9 Material Purchase & Services 0.51 0.43 - - - -
Purchase of Property Plant and
10 - - - - - 0.12
Equipment
11 Sale of Property Plant and Equipment - 0.16 - - - -
12 Interest Income on loans given - 1.23 - - - -
13 Interest Expense 5.91 0.31 - 0.59 - 0.22
14 Reimbursement of Expenses - - 0.02 0.02 0.24 2.68
15 Sub-Contractors work bills - - - 12.83 76.58
Contribution towards Corporate Social
16 - - - - 5.41 -
Responsibility
17 Remuneration (Including commission)*
Short-term employee benefits - - 23.83 18.76 - -
Post employee benefits - - 0.69 0.64 - -
18 Directors sitting fee and commission - - 0.85 0.67 - -
19 Rent expenses - - 0.70 0.70 10.65 10.47
20 Dividend paid - - 2.89 0.81 6.69 1.58
* As the future liabilities for gratuity and leave encashment is provided on actuarial basis for the Group as a whole, the amount pertaining
to the Directors is not ascertainable, therefore not included above.

Annual Report 2021-22 179

Notes forming part of the consolidated financial statements
(iii) Related Party balances outstanding are as follows: (` in crores)
Enterprises owned and
Key Management significantly influenced
Associates
personnel and relatives by key management
S.No Particulars personnel or their relatives
As at As at As at As at As at As at
March 31, March 31, March 31, March 31, March 31, March 31,
2022 2021 2022 2021 2022 2021
1 Debit Balances outstanding
Paschal Form Work (India) Private Limited - 0.08 - - - -
Ekana Sportz City Private Limited 50.25 50.25 - - - -
NCC Urban Infrastructure Company
- - - - 233.60 233.60
Limited, Dubai
Sridevi Properties - - - - 0.19 0.19
Jampana Constructions Private Limited - - - - 3.57 11.30
Shri Aruna Constructions Private Limited - - - - - 5.65
Sri. J.V. Ranga Raju - - 0.08 0.08 - -
Smt. J. Sowjanya - - 0.10 0.10 - -
Smt. J. Sridevi - - 0.08 0.08 - -
Sri. J. Krishna Chaitanya Varma - - 0.13 0.13 - -
2 Credit Balances outstanding
Nagarjuna Facilities Management Services
0.25 0.25 - - - -
L.L.C.
Varaprada Real Estates Private Ltd 54.57 52.72 - - - -
NCC Blue Water Products limited - - - - - 0.05
Shyamala Agro Farms LLP - - - - 0.03 -
Jampana Constructions Private Limited - - - - 0.75 0.83
Shri Aruna Constructions Private Limited - - - - - 12.75
Sridevi Properties - - - - 0.12 0.13
Matrix Security and Surveillance Private
- - - - 0.02 0.03
Limited
Sri. A.A.V. Ranga Raju* - - 2.68 2.25 - -
Sri. A.S.N. Raju - - 1.42 1.11 - -
Sri. A.G.K. Raju* - - 1.42 1.12 - -
Sri. A.V.N. Raju - - 1.42 1.12 - -
Sri. J.V. Ranga Raju - - 0.34 0.39 - -
Sri. N.R. Alluri - - - 14.50 - -
Sri. Hemant Madhusudan Nerurkar - - 0.14 0.09 - -
Smt. Renu Challu - - 0.09 0.05 - -
Dr. Durga Prasad Subramanyam Anapindi - - 0.14 0.09 - -
Sri. Ravi Shankararamiah - - - 0.03 - -
Sri. Om Prakash Jagetiya - - 0.09 0.02 - -
Sri. R.S. Raju - - - 0.05 - -
Sri. K. Krishna Rao - - 0.05 0.04 - -

180 NCC LIMITED

Notes forming part of the consolidated financial statements
(iii) Related Party balances outstanding are as follows: (` in crores)

Enterprises owned and

Key Management significantly influenced
Associates
personnel and relatives by key management
S.No Particulars personnel or their relatives
As at As at As at As at As at As at
March 31, March 31, March 31, March 31, March 31, March 31,
2022 2021 2022 2021 2022 2021
Sri. M.V. Srinivasa Murthy - - 0.05 0.08 - -
Sri. S.R.K. Surya Srikrishna Raju - - 0.05 0.04 - -
Sri. A. Vishnu Varma - - 0.07 0.06 - -
Smt. A. Nikhita - - 0.05 0.03 - -
Sri. A. Sri Harsha Varma - - 0.04 0.03 - -
Sri. U. Sunil - - 0.07 0.03 - -
Sri. J. Krishna Chaitanya Varma - - 0.19 0.20 - -
Smt. J. Sowjanya - - 0.05 0.06 - -
Smt. J. Sridevi - - 0.03 0.03 - -
Smt. BH. Kaushalya - - 0.02 0.03 - -
Sri. P. Manoj Raj - - 0.03 0.01 - -
*Refer note 19 and 22 for details of personal guarantee given by the Directors.

Annual Report 2021-22 181

Notes forming part of the consolidated financial statements
(iv) Disclosure in respect of significant transactions (which are more than 10% of the total transactions of the same type) with related
parties during the year.
(` in crores)
Particulars 2021 - 22 2020 - 21
Loans Received
- Sirisha Projects Private Limited - 60.00
- Sri. N.R. Alluri - 45.00
Loan Repaid
- AVSR Holdings Private Limited - 7.46
- Varaprada Real Estates Private Ltd - 7.28
- Sirisha Projects Private Limited - 10.00
- Sri. N.R. Alluri 14.50 30.50
Advances Granted
- Jampana Constructions Private Limited 4.91 21.61
- Shri Aruna Constructions Private Limited - 45.66
Advances Repayment Received / Adjusted
- Varaprada Real estates Private Limited - 11.26
Advances repaid / adjusted
- NCC Blue Water Products Limited 0.09 -
Mobilisation Advance Recovered / Adjusted by the Group
- Shri Aruna Constructions Private Limited - 7.10
Remittance to Trade Payables
- Jampana Constructions Private Limited 3.86 3.51
- Shri Aruna Constructions Private Limited - 9.91
- Paschal Form Work (India) Private Limited 0.86 -
Trade / Accounts Receivables realised
- Brindavan Infrastructure Company Limited - 0.24
Material Purchases & Services
- Paschal Form Work (India) Private Limited 0.51 0.43
Purchase of Property Plant and Equipment
- Matrix Security and Surveillance Private Limited - 0.12
Sale of Property Plant and Equipment
- Paschal Form Work (India) Private Limited - 0.16
Interest Income on loans given
- Varaprada Real estates Private Limited - 1.23
Interest Expense
- AVSR Holdings Private Limited - 0.22

182 NCC LIMITED

Notes forming part of the consolidated financial statements
(iv) Disclosure in respect of significant transactions (which are more than 10% of the total transactions of the same type) with related
parties during the year.
(` in crores)

Particulars 2021 - 22 2020 - 21

- Varaprada Real estates Private Limited 5.91 0.31
- Sri. N.R. Alluri - 0.59
Reimbursement of Expenses
- Shri Aruna Constructions Private Limited - 1.60
- Matrix Security and Surveillance Private Limited# - 0.64
- Jampana Constructions Private Limited 0.10 -
- Sridevi Properties 0.10 -
- NCC Blue Water Products Limited 0.04 -
Sub Contract Work Bills
- Jampana Constructions Private Limited 12.83 11.85
- Shri Aruna Constructions Private Limited - 64.61
Contribution towards Corporate Social Responsibility
- NCC Foundation 5.41 -
Remuneration (Including Commission)
- Sri. A.A.V. Ranga Raju 6.41 5.02
- Sri. A.S.N. Raju 3.28 2.57
- Sri. A.G.K. Raju 3.27 2.56
- Sri. A.V.N. Raju 3.22 2.53
Directors Sitting Fees
- Sri. Hemanth M Nerurkar 0.23 0.19
- Smt. Renu Challu 0.17 0.13
- Dr. Durga Prasad Subramanyam Anapindi 0.24 0.20
- Sri Om Prakash Jagetiya$ 0.17 -
Rent Expenses
- Sirisha Projects Private Limited 9.85 9.70
Dividend Paid
- AVSR Holdings Private Limited 5.02 1.22
- Sri. A.A.V. Ranga Raju# - 0.27
- Sirisha Projects Private Limited 1.49 0.33
# Transactions occurred during the year with the party do not exceed 10% of the total transaction value. Hence, amount not disclosed.
$ Transactions occurred during the previous year with the party do not exceed 10% of the total transaction value. Hence, amount not
disclosed.

Annual Report 2021-22 183

Notes forming part of the consolidated financial statements
39 The Subsidiaries and Associate Companies are considered for consolidated financial statements are:
Proportion of Ownership Interest and voting
Place of power held by the Group
Name of Subsidiaries /Associates incorporation and
operation As at As at
March 31, 2022 March 31, 2021
NCC Urban Infrastructure Limited India 80% 80%
NCC Infrastructure Holdings Limited India 62.84% 62.84%
NCC Vizag Urban Infrastructure Limited (Refer note 39.2 (c)) India - 95%
Patnitop Ropeway & Resorts Limited# India - -
NCC International Convention Centre Limited $ India - 100%
Pachhwara Coal Mining Private Limited India 51% 51%
Talaipalli Coal Mining Private Limited India 51% 51%
Nagarjuna Construction Company International L.L.C. Sultanate of Oman 100% 100%
NCC Infrastructure Holdings Mauritius Pte Limited Mauritius 100% 100%
Nagarjuna Contracting Co. L.L.C. Dubai 100% 100%
Subsidiaries of NCC Urban Infrastructure Limited
Dhatri Developers & Projects Private Limited India 100% 100%
Sushanti Avenues Private Limited India 100% 100%
Sushrutha Real Estate Private Limited India 100% 100%
PRG Estates LLP India 100% 100%
Thrilekya Real Estates LLP India 100% 100%
Varma Infrastructure LLP India 100% 100%
Nandyala Real Estates LLP India 100% 100%
Kedarnath Real Estates LLP India 100% 100%
AKHS Homes LLP India 100% 100%
JIC Homes Private Limited India 100% 100%
Sushanti Housing Private Limited India 100% 100%
CSVS Property Developers Private Limited India 100% 100%
Vera Avenues Private Limited India 100% 100%
Sri Raga Nivas Property Developers LLP India 100% 100%
VSN Property Developers LLP India 100% 100%
M A Property Developers Private Limited India 100% 100%
Vara Infrastructure Private Limited@ India - 100%
Sri Raga Nivas Ventures Private Limited^ India - 100%
Mallelavanam Property Developers Private Limited India 100% 100%
Sradha Real Estates Private Limited@ India - 100%
Siripada Homes Private Limited@ India - 100%
NJC Avenues Private Limited (Refer note 39.2 (a)) India - -
Nagarjuna Suites Private Limited^^ India - 100%
NCC Urban Homes Private Limited India 100% 100%
NCC Urban Ventures Private Limited India 100% 100%
NCC Urban Meadows Private Limited@ India - 100%
NCC Urban Villas Private Limited@ India - 100%

184 NCC LIMITED

Notes forming part of the consolidated financial statements
Proportion of Ownership Interest and voting
Place of power held by the Group
Name of Subsidiaries /Associates incorporation and
operation As at As at
March 31, 2022 March 31, 2021
Subsidiaries of NCC Infrastructure Holdings Limited
OB Infrastructure Limited India 64.02% 64.02%
NCC Infra Limited India 100% 100%
Samashti Gas Energy Limited India 100% 100%
Savitra Agri Industrial Park Private Limited India 100%## 100%##
Subsidiaries of NCC Infrastructure Holdings Mauritius Pte.
Limited
Al Mubarakia Contracting Co. L.L.C. Dubai 100% 100%
Subsidiary of Nagarjuna Construction Company
International L.L.C.
NCCA International Kuwait General Contracts Company L.L.C. Kuwait 100% 100%
Partnership Firm of NCC Urban Infrastructure Limited
NR Avenues (Refer note 39.2 (b)) India - -
Associates of the NCC Limited
Brindavan Infrastructure Company Limited India 33.33% 33.33%
Paschal Form Work (India) Private Limited India 23.35% 23.35%
Nagarjuna Facilities Management Services L.L.C. Dubai 49.00% 49.00%
Associates of the NCC Infrastructure Holdings Limited
Pondicherry Tindivanam Tollway Limited India 47.80% 47.80%
Ekana Sportz City Private Limited India 26.00% 26.00%
Associates of the NCC Infrastructure Holdings Mauritius
Pte. Limited
Himalayan Green Energy Private Limited India 50.00% 50.00%
Apollonius Coal and Energy Pte. Ltd. Singapore 44.22%## 44.22%##
Associate of the NCC Urban Infrastructure Limited
Varapradha Real Estates Private Limited India 40.00% 40.00%
# Liquidated (voluntary) with effect from February 12, 2021.
$ Struck off from the register of companies w.e.f June 22, 2021.
@ Struck off from the register of companies w.e.f April 09,2021.
^ Struck off from the register of companies w.e.f December 02,2021.
^^ Struck off from the register of companies w.e.f January 31,2022.
## Including holding by NCC Limited.
Percentage of ownership interest in step subsidiaries and associates reported above represents ownership interest of immediate holding
company and not the effective interest of the Group.
39.1 List of entities not considered for consolidation
(a) In respect of a step subsidiary company, NCC Urban Lanka (Private) Limited, there are no transactions since incorporation, hence not
considered for consolidation.
39.2 Change in the Group’s ownership interest
(a) Ceased to be Subsidiary with effect from July 27, 2020.
(b) Investment in NR Avenues was divested on July 27, 2020.
(c) Ceased to be Subsidiary with effect from March 31, 2022.

Annual Report 2021-22 185

Notes forming part of the consolidated financial statements
39.3 Disclosure of subsidiary having material non-controlling interests:
(i) Summarised statement of Profit and Loss: (` in crores)
NCC Infrastructure Holdings Limited
Particulars Year ended Year ended March
March 31, 2022 31, 2021
Revenue 0.48 0.48
Profit / (loss) for the year (50.52) (18.63)
Total comprehensive income (50.52) (18.63)
Add: Consolidation adjustment 33.51 -
Total comprehensive income after consolidation adjustment (17.01) (18.63)
Non-controlling interest % 37.16% 37.16%
Profit / (loss) allocated to non-controlling interests (6.32) (6.92)

(ii) Summarised Balance Sheet: (` in crores)

NCC Infrastructure Holdings Limited
Particulars As at As at
March 31, 2022 March 31, 2021
Current assets (a) 16.40 12.91
Current liabilities (b) 120.29 105.84
Net current Assets (c) = (a) - (b) (103.89) (92.93)
Non-current assets (d) 441.64 481.20
Non-current liabilities (e) - -
Net non-current Assets (f) = (d) - (e) 441.64 481.20
Net assets (g)=(c)+(f) 337.75 388.28
Add: Consolidation adjustment - -
Net assets after consolidation adjustment 337.75 388.28
Non-controlling interest % 37.16% 37.16%
Accumulated non-controlling interests 125.51 144.28

(iii) Summarised Cash Flow: (` in crores)

NCC Infrastructure Holdings Limited
Particulars Year ended Year ended March
March 31, 2022 31, 2021
Cash flows from operating activities (1.01) (4.72)
Cash flows from investing activities 5.12 4.32
Cash flows from financing activities (0.03) 0.47
Net increase/(decrease) in cash and cash equivalents 4.08 0.07

39.4 Financial information in respect of individually immaterial associates: (` in crores)

Year ended Year ended March
Particulars
March 31, 2022 31, 2021
Aggregate carrying amount of investments in individually immaterial associates as at 115.85 122.00
Aggregate group share of
Profit for the year 1.40 1.29

186 NCC LIMITED

Notes forming part of the consolidated financial statements
40 Additional information as required by Paragraph 2 of the General Instructions for Preparation of Consolidated Financial
Statements to Schedule III to the Companies Act, 2013

All the numbers belong to the year March 31, 2022

Net Assets, i.e., total
Share in other Share in total
assets minus total Share in profit or loss
comprehensive income comprehensive income
liabilities
Name of the Entities in the Group As % of As % of
As % of As % of Consolidated Consolidated
Amount Amount Amount Amount
Consolidated Consolidated other total
(` crores) (` crores) (` crores) (` crores)
net assets profit or loss comprehensive comprehensive
income income
NCC Limited 103.58% 5,803.17 101.60% 490.12 111.90% (2.82) 101.54% 487.30
Subsidiaries
Indian
NCC Urban Infrastructure Limited 6.04% 338.66 3.74% 18.02 2.78% (0.07) 3.74% 17.95
NCC Infrastructure Holdings Limited 6.03% 337.74 (10.47%) (50.52) 0.00% - (10.53%) (50.52)
Samashti Gas Energy Limited 0.00% - 0.00% - 0.00% - 0.00% -
NCC Infra Limited 0.32% 17.70 0.00% - 0.00% - 0.00% -
NCC Vizag Urban Infrastructure Limited 0.00% - (0.01%) (0.05) 0.00% - (0.01%) (0.05)
OB Infrastructure Limited 3.03% 169.90 2.68% 12.94 0.00% - 2.70% 12.94
NCC International Convention Centre Limited 0.00% - 0.00% - 0.00% - 0.00% -
Pachhwara Coal Mining Private Limited 0.21% 11.71 5.24% 25.30 0.00% - 5.27% 25.30
Talaipalli Coal Mining Private Limited 0.00% (0.25) 0.00% - 0.00% - 0.00% -
Savitra Agri Industrial Park Private Limited 1.12% 62.95 0.00% (0.02) 0.00% - 0.00% (0.02)
CSVS Property Developers Private Limited 0.03% 1.83 0.00% - 0.00% - 0.00% -
Dhatri Developers & Projects Private Limited 0.11% 6.39 0.00% - 0.00% - 0.00% -
JIC Homes Private Limited 0.03% 1.82 0.00% - 0.00% - 0.00% -
M A Property Developers Private Limited 0.03% 1.74 0.00% - 0.00% - 0.00% -
Mallelavanam Property Developers Private
0.02% 0.98 0.00% - 0.00% - 0.00% -
Limited
Sushanti Housing Private Limited 0.03% 1.74 0.00% - 0.00% - 0.00% -
Sradha Real Estates Private Limited 0.00% - 0.00% - 0.00% - 0.00% -
Sushrutha Real Estate Private Limited 0.04% 2.28 0.00% - 0.00% - 0.00% -
Sri Raga Nivas Ventures Private Limited 0.00% - 0.00% - 0.00% - 0.00% -
Sushanti Avenues Private Limited 0.08% 4.66 0.00% - 0.00% - 0.00% -
Vera Avenues Private Limited 0.02% 1.40 0.00% - 0.00% - 0.00% -
Vara Infrastructure Private Limited 0.00% - 0.00% - 0.00% - 0.00% -
Siripada Homes Private Limited 0.00% - 0.00% - 0.00% - 0.00% -
Nagarjuna Suites Private Limited 0.00% - 0.00% - 0.00% - 0.00% -
NCC Urban Ventures Private Limited 0.00% 0.01 0.00% - 0.00% - 0.00% -
NCC Urban Homes Private Limited 0.00% 0.01 0.00% - 0.00% - 0.00% -
NCC Urban Meadows Private Limited 0.00% - 0.00% - 0.00% - 0.00% -
NCC Urban Villas Private Limited 0.00% - 0.00% - 0.00% - 0.00% -
Foreign -
Nagarjuna Construction Company
0.11% 6.23 (14.85%) (71.66) 374.60% (9.44) (16.90%) (81.10)
International L.L.C.
NCC Infrastructure Holdings Mauritius Pte
0.72% 40.28 (1.65%) (7.97) 729.76% (18.39) (5.49%) (26.36)
Limited

Annual Report 2021-22 187

Notes forming part of the consolidated financial statements
All the numbers belong to the year March 31, 2022
Net Assets, i.e., total
Share in other Share in total
assets minus total Share in profit or loss
comprehensive income comprehensive income
liabilities
Name of the Entities in the Group As % of As % of
As % of As % of Consolidated Consolidated
Amount Amount Amount Amount
Consolidated Consolidated other total
(` crores) (` crores) (` crores) (` crores)
net assets profit or loss comprehensive comprehensive
income income
Al Mubarakia Contracting Co. L.L.C. 0.00% - 0.00% - 2.78% (0.07) (0.01%) (0.07)
Nagarjuna Contracting Co. L.L.C. 0.00% - 0.00% - 0.79% (0.02) 0.00% (0.02)
NCCA International Kuwait General Contracts
0.06% 3.19 0.00% - 4.37% (0.11) (0.02%) (0.11)
Company L.L.C.
Partnership Firm
AKHS Homes LLP 0.00% 0.03 0.00% - 0.00% - 0.00% -
Kedarnath Real Estates LLP 0.03% 1.43 0.00% - 0.00% - 0.00% -
Sri Raga Nivas Property Developers LLP 0.00% 0.03 0.00% - 0.00% - 0.00% -
VSN Property Developers LLP 0.00% 0.03 0.00% - 0.00% - 0.00% -
Nandyala Real Estates LLP 0.05% 2.84 0.00% - 0.00% - 0.00% -
PRG Estates LLP 0.02% 1.34 0.00% - 0.00% - 0.00% -
Thrilekya Real Estates LLP 0.03% 1.60 0.00% - 0.00% - 0.00% -
Varma Infrastructure LLP 0.03% 1.41 0.00% - 0.00% - 0.00% -
Non Controllling Interest (5.24%) (293.41) (2.41%) (11.62) (0.79%) 0.02 (2.42%) (11.60)
Associates
(Investment as per equity method)
Indian
Himalayan Green Energy Private Limited 0.00% - 0.00% - 0.00% - 0.00% -
Paschal Form Work (India) Private Limited 0.00% - 0.00% - 0.00% - 0.00% -
Ekana Sportz city Private Limited 0.41% 23.19 (0.03%) (0.13) 0.00% - (0.03%) (0.13)
Brindavan Infrastructure Company Limited 0.22% 12.44 0.00% (0.02) 0.00% - 0.00% (0.02)
Pondicherry Tindivanam Tollway Limited 0.00% - 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Varapradha Real Estates Private Limited 1.43% 80.22 0.32% 1.55 0.00% - 0.32% 1.55
Foreign
Nagarjuna Facilities Management Services
0.00% - 0.00% - 0.00% - 0.00% -
L.L.C.
Apollonius Coal and Energy Pte. Ltd. 0.00% - 0.00% - 0.00% - 0.00% -
Total before CFS adjustments &
6,645.29 405.94 (30.90) 375.04
eliminations
CFS adjustments & eliminations (18.61%) (1,042.55) 15.85% 76.47 (1126.19%) 28.38 21.85% 104.85
Total 100.00% 5,602.74 100.00% 482.41 100.00% (2.52) 100.00% 479.89

188 NCC LIMITED

Notes forming part of the consolidated financial statements
41 Financial instruments
41.1 Capital management
The Group’s capital management objective is to maximise the total shareholder return by optimising cost of capital through flexible
capital structure that supports growth. Further, the Group ensures optimal credit risk profile to maintain/enhance credit rating.
The Group determines the amount of capital required on the basis of annual operating plan and long-term strategic plans. The
funding requirements are met through internal accruals and long-term/short-term borrowings. The Group monitors the capital
structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Group.
For the purpose of capital management, capital includes issued equity capital, non-controlling interest, securities premium and all
other revenue reserves. Net debt includes all long and short-term borrowings as reduced by cash and cash equivalents.
The following table summarises the capital of the Group: (` in crores)
As at As at
March 31, 2022 March 31, 2021
Equity 5,896.15 5,469.41
Short-term borrowings and current portion of long-term borrowings 1,182.25 1,892.43
Long-term borrowings 120.18 169.61
Cash and cash equivalents (266.54) (191.64)
Net debt 1,035.89 1,870.40
Total capital (equity + net debt) 6,932.04 7,339.81
Gearing ratio 0.18 0.34

41.2 Categories of financial instruments (` in crores)

As at As at
March 31, 2022 March 31, 2021
Financial assets
Measured at fair value through profit or loss (FVTPL)
Mandatorily measured:
Equity investments in other entities 211.25 213.43
Investments in Mutual funds 18.72 104.20
Measured at amortised cost
Cash and bank balances 600.53 504.58
Other financial assets at amortised cost 3,648.10 3,389.89
Measured at cost
Investments in equity instruments in associates
Equity shares 115.85 122.00
4,594.45 4,334.10
Financial liabilities
Measured at amortised cost 5,825.22 6,016.48
41.3 Financial risk management objectives
The Group’s business activities exposed to a variety of financial risk viz., market risk, credit risk and liquidity risk. The Group’s focus
is to estimate a vulnerability of financial risk and to address the issue to minimize the potential adverse effects of its financial
performance.
i) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices. The Group’s exposure to market risk is primarily on account of the following:
• Interest rate risk
Out of total borrowings, large portion represents short term borrowings (WCDL) and the interest rate primarily basing
on the Group’s credit rating and also the changes in the financial market. Group continuously monitoring over all factors
influence rating and also factors which influential the determination of the interest rates by the banks to minimize the
interest rate risks.

Annual Report 2021-22 189

Notes forming part of the consolidated financial statements
The Group’s exposure to changes in interest rates relates primarily to the Group’s outstanding floating rate borrowings.
Out of the total borrowings of ` 1,302.43 crores (31.03.2021: ` 2,062.04 crores) as of 31.03.2022, the floating rate
borrowings are ` 1,109.58 crores (31.03.2021: ` 1,485.46 crores). For every 50 base points change in the interest rate
when no change in other variables, it will affect the profit before tax by ` 5.55 crores for the year ended March 31, 2022
(31.03.2021: ` 7.43 crores).
• Foreign currency risk
The Group has several balances in foreign currency and consequently the group is exposed to foreign exchange risk. The
exchange rate between the rupee and foreign currencies has changed substantially in recent years, which has affected the
results of the Group, and may fluctuate substantially in the future. The Group evaluates exchange rate exposure arising
from foreign currency transactions and follows established risk management policies.
We summarise below the financial instruments which have the foreign currency risks as at March 31, 2022 and March 31,
2021.
(a) The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities based on
gross exposure at the end of the reporting period is as under:

Liabilities Assets
Currency As at As at As at As at
March 31, 2022 March 31, 2021 March 31, 2022 March 31, 2021
USD (crores) 4.23 4.24 5.26 5.26
INR (` in crores) 320.60 310.80 399.07 385.54
EURO (crores) 0.08 - - -
EURO (` in crores) 6.92 - - -
GBP (crores) 0.10 - - -
GBP (` in crores) 10.20 - - -
The Group doesn’t have any forex derivative instrument, hence all the above balances are unhedged.
(b) Foreign currency sensitivity analysis
The Group is not substantially exposed for business activities in foreign currency. Hence, the impact of any significant fluctuation in
the exchange rates is not expected to have a material impact of the operating profits of the Group.
(` in crores)
As at As at
Currency USD impact on:
March 31, 2022 March 31, 2021
Impact of `1 strengthening against US Dollar on profit or (loss) for the year (1.03) (1.02)
Impact of ` 1 weakening against US Dollar on profit or (loss) for the year 1.03 1.02
Impact of ` 1 strengthening against US Dollar on Equity as at the end of the reporting period (1.03) (1.02)
Impact of ` 1 weakening against US Dollar on Equity as at the end of the reporting period 1.03 1.02
ii) Credit risk management
Credit Risk refers to the risk for a counter party default on its contractual obligation resulting a financial loss to the Group.
Credit risk on trade receivables and contract assets is limited as the customers of the Group mainly consists of the Government
promoted entities having a strong credit worthiness. For doubtful receivables the company uses a provision matrix to compute the
expected credit loss allowances for trade receivables and contract assets. In assessing the recoverability of the trade receivables and
contracts assets, management’s judgement involves consideration of aging status, evaluation of litigations and the likelihood of
collection based on the terms of the contract. Refer note 6, 9, 11.3 and 16.3 for provision made against trade receivable and contract
assets.
Credit risk on account of investments, loans (including interest) and other receivables from related parties has been adequately
provided in the books. The cash and bank balances (excluding cash on hand) are held with banks and financial institutions having
good credit rating.

190 NCC LIMITED

Notes forming part of the consolidated financial statements
iii) Liquidity risk management
The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuous
planning and monitoring of actual cash flows and by matching the maturity profiles of financial assets and liabilities.
The table below provides details regarding the contractual maturities of financial liabilities including estimated interest payments as
at March 31, 2022:
(` in crores)
Payable Total
Carrying
contracted
amount Within 1 year 1-3 year Beyond 3 years cash flows
Accounts payable and acceptances 4,423.44 4,205.00 176.37 42.07 4,423.44
Borrowings and interest accrued 1,389.74 1,269.56 118.15 2.03 1,389.74
Other financial liabilities 12.04 12.04 - - 12.04
Total 5,825.22 5,486.60 294.52 44.10 5,825.22

The table below provides details regarding the contractual maturities of financial liabilities including estimated interest payments as
at March 31, 2021:
(` in crores)
Payable Total
Carrying
contracted
amount Within 1 year 1-3 year Beyond 3 years cash flows
Accounts payable and acceptances 3,855.09 3,623.56 186.72 44.81 3,855.09
Borrowings and interest accrued 2,135.72 1,966.04 125.88 43.80 2,135.72
Other financial liabilities 25.67 25.67 - - 25.67
Total 6,016.48 5,615.27 312.60 88.61 6,016.48

41.4 Fair value measurements

Some of the Group’s financial assets and financial liabilities are measured at fair value at the end of the reporting period. The
following table gives information about how the fair values of these financial assets and financial liabilities are determined (in
particular, the valuation techniques and inputs used):
(` in crores)
Fair Value as at* Valuation
Fair value
Financial assets / financial liabilities As at As at techniques & key
hierarchy
March 31, 2022 March 31, 2021 inputs used
Investments in Mutual funds at FVTPL 18.72 104.20 Level 1 Refer note 2
Investments in unquoted equity instruments at FVTPL 1.52 3.70 Level 2 Refer note 3(a)
Investments in unquoted equity instruments at FVTPL 209.73 209.73 Level 2 Refer note 3(b)
*Positive value denotes financial asset (net) and negative value denotes financial liability (net).
Notes:
(1) There were no transfers between Level 1 and 2 in the year.
(2) The Level 1 financial instruments are measured using quotes in active market
(3) The following table shows the valuation technique and key input used for Level 2:

Financial Instrument Key Inputs used

(a) Unquoted Equity Government notified value of the lands is taken as fair market value in the absence of reliable
Instruments comparable data.
(b) Unquoted Equity Fair value of investments has been arrived either realisable value of underlying assets or as per
Instruments contractually realisable values.

Annual Report 2021-22 191

Notes forming part of the consolidated financial statements
Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are
required)
(` in crores)

As at As at
March 31, 2022 March 31, 2021
Carrying amount Fair value Carrying amount Fair value
Financial assets
Financial assets at amortised cost:
- Trade receivables 2,653.12 2,653.12 2,879.21 2,879.21
- Cash and cash equivalents 266.54 266.54 191.64 191.64
- Bank balances other than cash and cash equivalents 333.99 333.99 312.94 312.94
- Loans 367.06 367.06 52.65 52.65
- Other financial assets 627.92 627.92 458.03 458.03

Financial liabilities
Financial liabilities at amortised cost:
- Borrowings 1,302.43 1,302.43 2,062.04 2,062.04
- Trade payables 4,423.44 4,423.44 3,855.09 3,855.09
- Other financial liabilities 99.35 99.35 99.35 99.35
Note:
The fair values of the financial assets and financial liabilities included above have been determined in accordance with generally
accepted pricing models.

42 Legal / Statutory Reserve transferred and consideration realised in 2012-13. Against

Subsequent sale of shares amount partly received in advance
As per Article 106 of the Commercial law of 1974 in the
and shares transfer completed on January 22, 2019. Balance
Sultanate of Oman, 10% of the Subsidiary Companies Net
consideration receivable ` 9.00 crores against subsequent sale
Profit is required to be transferred to a non-distributable legal
shown under Other Receivables.
reserve until the amount of the legal reserve equals one-third
of the subsidiary’s issued share capital. Similarly, as per the During the year 2012-13, the management has estimated
provisions of the UAE Commercial Companies Act, 10% of the and made a provision of ` 51.96 crores towards its obligation
Subsidiary Companies Net Profit is required to be transferred to meet cost over runs, contingencies, etc. During 2014-15,
to a non-distributable statutory reserve until the amount of TAQA invoked bank guarantee of ` 36.00 crores, submitted
the statutory reserve equals 50% of the subsidiary’s paid up by NCCIHL as security and adjusted this with provision. During
share capital. During the year, the respective subsidiaries had 2017-18 Receivable amounts on account of advances paid to
incurred losses, hence no profit had been transferred to the HSPL for expenses ` 14.08 crores adjusted with this provision.
legal reserve. The net provision amount of ` 1.88 crores presented under
‘‘Other Current Liabilities”.
43 Himachal Sorang Power Limited:
During the year 2014-15, TAQA and HSPL had invoked
NCC Infrastructure Holdings Limited (NCCIHL), a subsidiary arbitration proceedings under the SPA, in Singapore
during the year 2012-13, entered into a Share Purchase International arbitration centre, detailing various disputes/
Agreement (SPA) with TAQA India Power Ventures Private claims aggregating to ` 409.90 crores which is revised to
Limited (TAQA), (formerly TAQA Jyothi Energy Ventures ` 671.43 crores during the Arbitration Process. NCCIHL denied
Private Ltd) for sale of 4,144,300 equity shares of ` 10.00 each all the disputes/claims in its entirety and raised Counter
and 7,858,900 Zero Coupon Irredeemable Fully Convertible Claims aggregating to ` 210.34 crores (subsequently revised
Debentures held by it in Himachal Sorang Power Limited to ` 78.50 crores). The Learned Arbitral Tribunal has while
(HSPL). quashing the claims of TAQA, has allowed certain claims of
HSPL amounting to ` 108.38 crores (after adjustments of
In terms of SPA, the sale of shares to be effected in two receivables) together with interest commencing on varied
tranches viz initial sale and subsequent sale. Initial sale shares dates.

192 NCC LIMITED

Notes forming part of the consolidated financial statements
TAQA/HSPL have filed a petition in Delhi High Court in Mar During the current Financial Year 2021-22, the Management
2018 for enforcement of SIAC Award dt. January 24,2018 reviewed various items of the claims of both the parties
(First Award). NCCIHL filed an application stating Delhi High and also considering the in-house legal experts opinion,
Court does not have jurisdiction since NCCIHL does not have assessed the likely outcome of the claims and basing on such
any assets in Delhi. While several applications were made assessments a further amount of ` 14.36 crores is provided
before the Court and Orders were also made on them, nothing under “Other Current Liabilities” in addition to the provision
concrete has been heard thus far on the main enforcement made in previous years.
matter. The jurisdiction issue was heard substantially and the
44 In respect of step subsidiary Savitra Agri Industrial Park
next hearing is scheduled on May 13, 2022. In the meanwhile,
Private Limited, certain cases were filed by the petitioners in
by way of an Interim Order dt. March 13, 2018, NCCIHL is
Honourable High Court of Andhra Pradesh for setting aside
restrained to sell, alienate, mortgage, or create any third-party
alienation of land at Sompeta by Andhra Pradesh Industrial
interest in its assets, except in the ordinary course of business.
Corporation, setting aside Environmental Clearance for the
Further, TAQA/HSPL and NCCIHL have filed setting aside project and certain other matters. The step subsidiary is a
(of award) applications in Singapore High Court in April and respondent to in all the cases. Besides these, certain individuals
June 2018 respectively. In Jan 2019, Singapore High Court have filed cases in Civil Court for permanent injunctions
has dismissed setting aside applications of both parties and restraining the subsidiary from possession and enjoyment of
grounds for setting aside were provided in November 2019. land admeasuring 1.78 acres. The matters are subjudice. The
Both parties have challenged the Singapore High Court’s Management at this juncture do not foresee any adjustments
decisions in the Court of Appeal, Singapore. The applications to the carrying value of assets and liabilities on account of
in Court of Appeal were filed in February 2019 and by way these cases at this juncture.
of Judgement/Order dt. October 29, 2020, NCCIHL’s appeal
The step subsidiary has planned to develop Aquaculture
was dismissed and TAQA/HSPL’s appeal was allowed in part
in own lands (Patta) in Benkili-Baruva Village, Sompeta
and ordered for remission of part of Award to the Arbitral
Mandal Jurisdiction. Accordingly, it has filed application
Tribunal for its decision. The hearings on this remitted matter
(Form-B) on February 24, 2018, for registration of Fresh
are concluded and the decision on the same is awaited.
Water Aquaculture Farm in 197.00 acres. A Sub-Committee
In the meanwhile, NCCIHL has invoked another arbitration in consisting of the officials from Revenue, Irrigation, Ground
December, 2018 under the SIAC rules against HSPL/TAQA for Water and Agriculture Departments headed by JD-Fisheries
Incentive Payments payable under the provisions of Securities visited the project site and made physical inspections. NOCs
Purchase Agreement (SPA). TAQA has raised counter claims from all the individual departments have been received except
against NCCIHL and NCC (for payment of awarded amount from Agriculture Department which is also expected shortly.
to HSPL from Award dt. January 24, 2018) and filed an
44.A In respect of subsidiary Nagarjuna Contracting Co. L.L.C., as
application with the Arbitral Tribunal for joinder of NCC to
at March 31, 2022, the Entity has a law suit with the customer
the arbitration. The Tribunal has agreed for Joinder of NCC.
and the matter is pending before the courts. During the
By the Award dt. February 04, 2022 (Second Award), the
financial year 2018-19, the Management has decided to cease
Arbitral Tribunal has rejected claims of both the parties and
the operations of the Entity, as the going concern assumption
only certain costs were awarded to the parties.
is not valid for the Entity, the financial statements have
NCCIHL has also filed an application in National Company Law been prepared on the basis of the accounting convention of
Tribunal (NCLT) at Chennai for recovery of ` 9.00 Crores (plus realisable /settlement values of assets and liabilities.
interest) from TAQA, as that portion of the Award dt. January
45 During the year ended March 31, 2022, NCC Limited has
24, 2018 has become final since it was not challenged by TAQA
sold its entire stake in the Subsidiary company, NCC Vizag
in the Singapore High Court. NCLT has dismissed NCCIHL’s
Urban Infrastructure Limited for a consideration amounting to
application citing couple of reasons including the reason that
` 199.50 crores. On disposal of the subsidiary, gain of ` 191.19
there are pending disputes between the parties. NCCIHL has
crores is recognised as exceptional item in the consolidated
filed an appeal in NCLAT (Chennai) and the matter is listed
Statement of Profit and Loss.
on July 20, 2022. NCCIHL has also filed a petition in Madras
High Court against TAQA, for enforcement of Award for this
` 9.00 crores and after hearing both the parties the Court on
January 11, 2022, has allowed this petition and pronounced a
judgement stating that the Award is enforceable as a decree
of this Court. TAQA has filed an appeal in the Supreme Court
and the hearing is tentatively listed for May 19, 2022.

Annual Report 2021-22 193

Notes forming part of the consolidated financial statements
46 Service concession arrangement:
Below service concession arrangement has been accounted under financial asset model

Project Name Orai-Bhognipur Infrastructure Limited

Type of Project BOT (Annuity )
17.5 years (from 19th October 2006 to 19th April 2024, Including 2.5 years of
Concession period
construction)
Fixed semi - annuity based :- ` 44.82 crores (in the month of April and October in
Annuity collection
a financial year)
Investment grant from concession grantor Nil
Constructing ,Operating and Maintaining road highway from 220 km to 255 km
Project Description (i.e. 30 km) on NH-25 and from 421.20 to 449 km on NH-2 on Orai-Bhognipur in
Uttar Pradesh.
Infrastructure return at the end of
Yes
concession period
Renewal and termination options Nil
47 Segment Reporting:
a) Business segment: The Group has considered business segment as primary segment for disclosure. The Group’s operations
predominantly consist of construction / project activities, which in the context of Ind AS 108 “Operating Segments” is considered
the only business segment.
b) Geographical segment: The Group has operations within India and outside India and the disclosures in respect of the
geographical segment are given below:
(` in crores)
Revenue for the Segment assets
Geographical Segment
year ended as at *
Within India
March 31, 2022 11,065.13 1,834.33
March 31, 2021 7,761.29 1,730.94
Outside India
March 31, 2022 72.83 236.17
March 31, 2021 188.13 248.36
* Segment assets represents non current assets excluding financial assets and deferred tax asset.
48 Earnings per share:

March 31, 2022 March 31, 2021

Net Profit after tax available for equity shareholders (` in crores) 482.41 268.31
Weighted Average number of equity shares for Basic EPS (Nos) 609,846,588 609,846,588
Weighted Average number of equity shares for Diluted EPS (Nos) 614,097,235 610,598,660
Face value per share (`) 2.00 2.00
Basic EPS (`) 7.91 4.40
Diluted EPS (`) 7.86 4.39

194 NCC LIMITED

Notes forming part of the consolidated financial statements
49 Corporate Social Responsibility: (` in crores)

March 31, 2022 March 31, 2021

a) Gross amount required to be spent by the Company during the year 10.67 10.96
b) Amount approved by the Board to be spent during the year 10.68 13.17*
* Including the unspent amount pertains to the year ended March 31, 2020.
c) Amount spent during the year ended: (` in crores)

March 31, 2022 March 31, 2021

Particulars Yet to be Yet to be
In cash Total In cash Total
paid paid
i) Construction/acquisition of any asset - - - 0.26 - 0.26
ii) On purposes other than (i) above 8.54 - 8.54 4.14 - 4.14
Total 8.54 - 8.54 4.40 - 4.40

d) Details related to spent / unspent obligations: (` in crores)

Particulars March 31, 2022 March 31, 2021

i) Spent for CSR activities (for On going project ` 0.04 crores (31.03.2021: ` 2.96 crores)
1.00 4.10
during the year ended March 31, 2022)
ii) Contribution 7.54 0.30
iii) Unspent amount in relation to:
- Ongoing project * 2.14 8.77
- Other than ongoing project - -
Total 10.68 13.17

* Unspent amount of ` 2.14 crores (31.03.2021: ` 8.77 crores is deposited in the separate bank account on April 29, 2021)
deposited in the separate bank account on April 30, 2022.
e) Others:

Particulars March 31, 2022 March 31, 2021

i) Reason for shortfall Identification of the Govt schools Unable to execute the projects due
and colleges for implementation to Covid-19.
of the project in the State of Uttar
Pradesh was delayed because of
the state election.
ii) Nature of CSR activities Rural Development, Education, Rural Development, Education,
Health care and Skill development. Health care and Skill development.
iii) Details of related party transactions in relation -
to CSR expenditure as per relevant Accounting
Standard
Contribution to NCC Foundation in relation to CSR 5.41
expenditure

Annual Report 2021-22 195

Notes forming part of the consolidated financial statements
50 The exceptional items for the year ended March 31, 2022 is ` 203.57 crores, pertains to Profit on sale of stake in the Subsidiary
Company, NCC Vizag Urban Infrastructure Limited, additional area allotted to NCC Limited on approval of revised plan as per the
contractual terms in relation to Investment property under construction, provision made for impairment of investment and provision
made on obligation on sale of investment.
The exceptional items for the year ended March 31, 2021 is ` (12.60) crores owards provision made on obligation on sale of
investment.
51 Consequent to the encashment of Bank Guarantees (BGs) of ` 343.10 crores in the year 2017-18 by one of the customer (Sembcorp
Energy India Limited), NCCL invoked the arbitration clause and submitted a claim of ` 1,571.41 crores towards refund of retention
money, refund of BGs amount, payment of pending bills, additional works done and cost incurred on prolongation of the project
by the customer. Against which, the customer has filed a counter claim of ` 1,071.46 crores towards liquidated damages, turbine
replacement, balance works, etc. As per the management assessment and legal advise, no provision is required for the subject
matter and arbitration proceedings are expected to be completed within a year’s time.
52 Deferred tax assets (Net):
Significant components of deferred tax (liabilities) / assets for the year ended March 31, 2022: (` in crores)

As at As at
March 31, 2022 March 31, 2021
Deferred tax (liabilities) / assets in relation to:
Property, plant and equipment (5.72) (11.55)
Provision for doubtful trade receivables, contract assets, advances and others 50.41 48.17
Provision for employee benefits 32.68 28.85
MAT Credit entitlement 9.11 5.65
Deferment in recognisition of income (22.22) (22.22)
Others - 8.71
Total 64.26 57.61

52.1 Unrecognised deductible temporary differences, unused tax losses and unused tax credits: (` in crores)

As at As at
March 31, 2022 March 31, 2021
Deductible temporary differences, unused tax losses and unused tax credits for which no
deferred tax assets have been recognised are attributable to the following:
- Long-term / Short-term capital loss 491.10 1,043.24
- Unused tax credits 94.99 134.33
Total 586.09 1,177.57

53 Amounts included in contract liabilities at the beginning of the year recognised as revenue in the current year of ` 582.05 crores
(31.03.2021: ` 799.92 crores).
Change in the contract assets and contract liabilities as at March 31, 2022 from March 31, 2021 is on account of increase in
operations of the Company.
54 Reconciling the amount of revenue recognised in the statement of profit and loss with the contracted price:
There is no difference in the contract price negotiated and the revenue recognised in the statement of profit and loss for the current
year. There is no significant revenue recognised in the current year from performance obligations satisfied in previous periods.

196 NCC LIMITED

Notes forming part of the consolidated financial statements
55 Performance obligation:
The transaction price allocated to the remaining performance obligations is (excluding non-moving orders) ` 39,361 crores
(31.03.2021: ` 37,911 crores), which will be recognised as revenue over the respective project durations. Generally the project
duration of contracts with customers is ranging 1 to 3 years.
56 Pursuant to the Scheme of Amalgamation approved by the Hon’ble National Company Law Tribunal (NCLT), Hyderabad, vide order
dated August 26, 2021, Aster Rail Private Limited and Vaidehi Avenues Limited (wholly owned subsidiaries) have merged with the
Company, with effect from April 1, 2020, being the appointed date as per the scheme.
57 The trade receivables and contract assets includes an amount of ` 189.52 crores (31.03.2021 ` 254.15 crores) (net of mobilisation
advance and provisions) relating to the Amaravati Capital City projects in the state of Andhra Pradesh. These works were commenced
and were in good progress till May 2019. However, Subsequently, there is slow movement of execution of the work / payment
in these projects. Management based on its internal assessments and discussions with the agencies is of the view that no further
provision is required in this regard.
58 Estimation of uncertainties relating to the global health pandemic from COVID-19:
The Group has assessed the possible impact of COVID-19 pandemic on its operations, liquidity position and recoverability of its
asset balances as at March 31, 2022 based on the internal and external sources of information upto the date of approval of these
audited consolidated financial statements. The management will continue to monitor any material changes to the future economic
conditions.
59 No transactions made with the Struck off Companies in the current year (31.03.2021: ` Nil).
60 Previous period’s figures have been regrouped wherever necessary to conform to current period’s presentation.
61 Approval of financial statements:
The financial statements were approved for issue by the Board of Directors on May 11, 2022.

For S.R. BATLIBOI & ASSOCIATES LLP For and on behalf of the Board
ICAI Firm Registration No. 101049W/E300004
CHARTERED ACCOUNTANTS

per NAVNEET RAI KABRA K. KRISHNA RAO A.A.V. RANGA RAJU

Partner E.V.P (F&A) / CFO Managing Director / CEO
Membership No. 102328 (DIN No: 00019161)

M.V. SRINIVASA MURTHY A.G.K. RAJU

Company Secy. & E.V.P (Legal) Executive Director
(DIN No: 00019100)
Hyderabad, May 11, 2022

Annual Report 2021-22 197

 Form AOC-1

198
Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014)
Statement containing salient features of the financial statement of subsidiaries/associate companies.
PART A: Subsidiaries (` in crores)

The Date
Profit/ Profit/ Extent of
since when Total Provision
Sl. Reporting Share Other Total Total (Loss) (Loss) shareholding
Name of the Subsidiary subsidiary equity & Investments Turnover for
No. currency Capital Equity Liabilities Assets before after (In
was Liabilities taxation
Taxation Taxation percentage)
acquired
NCC Urban Infrastructure
1 8-Dec-2006 INR 250.00 88.66 313.19 651.85 651.85 113.03 343.42 31.67 13.66 18.02 80%
Limited
NCC Infrastructure Holdings
2 27-May-2005 INR 709.49 (371.74) 120.29 458.04 458.04 441.41 0.48 (50.52) - (50.52) 62.84%
Limited
3 Samashti Gas Energy Limited 29-Sep-2010 INR 0.05 - - 0.05 0.05 - - - - - 100%
4 NCC Infra Limited 28-Nov-2011 INR 17.90 (0.20) 5.00 22.70 22.70 22.68 - (0.00) - (0.00) 100%
5 OB Infrastructure Limited 31-Mar-2006 INR 13.34 156.56 23.03 192.92 192.92 17.65 89.64 13.48 0.55 12.94 64.02%
Pachhwara Coal Mining
6 1-Jun-2016 INR 0.20 11.51 51.38 63.09 63.09 - 864.86 33.84 8.54 25.30 51%
Private Limited
Talaipalli Coal Mining Private
7 25-Dec-2017 INR 0.09 (0.34) 0.25 0.01 0.01 - - (0.00) - (0.00) 51%
Limited
Savitra Agri Industrial Park
8 17-Feb-2017 INR 0.12 62.83 - 62.95 62.95 - - (0.02) - (0.02) 100%
Private Limited
CSVS Property Developers
9 13-Feb-2007 INR 0.05 1.78 0.00 1.83 1.83 - - (0.00) - (0.00) 100%
Private Limited
Dhatri Developers & Projects
10 13-Feb-2006 INR 0.10 6.29 0.00 6.39 6.39 - - (0.00) - (0.00) 100%
Private Limited
11 JIC Homes Private Limited 12-Feb-2007 INR 0.05 1.77 0.00 1.82 1.82 - - (0.00) - (0.00) 100%
M A Property Developers
12 17-Feb-2007 INR 0.05 1.69 0.00 1.74 1.74 - - (0.00) - (0.00) 100%
Private Limited
Mallelavanam Property
13 15-Mar-2007 INR 0.05 0.93 0.00 0.98 0.98 - - (0.00) - (0.00) 100%
Developers Private Limited
Sushanti Housing Private
14 12-Feb-2007 INR 0.05 1.69 0.00 1.74 1.74 - - (0.00) - (0.00) 100%
Limited
Sushrutha Real Estate Private
15 13-Feb-2006 INR 0.10 2.18 0.00 2.28 2.28 - - (0.00) - (0.00) 100%
Limited
Sushanti Avenues Private
16 13-Feb-2006 INR 0.10 4.56 0.00 4.66 4.66 - - (0.00) - (0.00) 100%
Limited
17 Vera Avenues Private Limited 13-Feb-2007 INR 0.05 1.35 0.00 1.40 1.40 - - (0.00) - (0.00) 100%
NCC Urban Ventures Private
18 11-Sep-2012 INR 0.01 (0.00) 0.00 0.01 0.01 - - (0.00) - (0.00) 100%
Limited
NCC Urban Homes Private
19 11-Sep-2012 INR 0.01 (0.00) 0.00 0.01 0.01 - - (0.00) - (0.00) 100%
Limited

NCC LIMITED
 The Date
Profit/ Profit/ Extent of
since when Total Provision
Sl. Reporting Share Other Total Total (Loss) (Loss) shareholding
Name of the Subsidiary subsidiary equity & Investments Turnover for
No. currency Capital Equity Liabilities Assets before after (In
was Liabilities taxation
Taxation Taxation percentage)
acquired
Nagarjuna Construction
20 17-Jan-2007 OMR 252.35 (246.12) 124.79 131.02 131.02 3.41 (33.05) (71.66) - (71.66) 100%

Annual Report 2021-22

Company International L.L.C.
NCC Infrastructure Holdings
21 27-Apr-2006 USD 203.71 (163.44) 273.35 313.62 313.62 - - (7.97) - (7.97) 100%
Mauritius Pte Limited
Al Mubarakia Contracting
22 7-Jul-1997 AED 2.06 (2.06) - - - - - - - - 100%
Co. L.L.C.
Nagarjuna Contracting Co.
23 20-Jun-2005 AED 0.62 (0.62) - - - - - - - - 100%
L.L.C.
NCCA International Kuwait
24 General Contracts Company 10-Jan-2017 KWD 6.25 (3.06) - 3.19 3.19 - - - - - 100%
L.L.C.
Sradha Real Estates Private
25 16-Mar-2007 INR - - - - - - - - - - 100%
Limited
Vara Infrastructure Private
26 9-Mar-2007 INR - - - - - - - - - - 100%
Limited
Siripada Homes Private
27 3-Apr-2007 INR - - - - - - - - - - 100%
Limited
NCC Urban Meadows Private
28 11-Sep-2012 INR - - - - - - - - - - 100%
Limited
NCC Urban Villas Private
29 11-Sep-2012 INR - - - - - - - - - - 100%
Limited
NCC International Convention
30 5-Dec-2008 INR - - - - - - - - - - 100%
Centre Limited
Sri Raga Nivas Ventures
31 7-Mar-2007 INR - - - - - - - - - - 100%
Private Limited
Nagarjuna Suites Private
32 14-Sep-2011 INR - - - - - - - - - - 100%
Limited
NCC Vizag Urban
33 25-Jan-2006 INR - - - - - - - (0.05) - (0.05) 95%
Infrastructure Limited
Note:
1 Exchange rate as on 31.03.2022: Omani Rial = ` 196.872, AED = ` 20.63, US$ = ` 75.80, KWD = ` 250.16, QAR = ` 20.82.
2 Reporting period for all subsidiaries is same as of holding company i.e., 1st April to 31st March.
3 Pachhwara Coal Mining Private Limited declared and paid a dividend of ` 22.90 crores cr during the FY 2021-22.
4 Percentage of ownership interest in step subsidiaries and associates reported above represents ownership interest of immediate holding company and not the effective interest of the
Group, except for Savitra Agri Industrial Park Private Limited.
5 Sl No. 25 to 29 - On application from the respective company, were struck off by the RoC, Hyderabd w.e.f April 09,2021.
6 Sl No. 30 - On application from the Company was struck off by the RoC, Hyderabad w.e.f June 22, 2021.
7 Sl No. 31 - On application from the Company was struck off by the RoC, Hyderabad w.e.f December 02, 2021.
8 Sl No. 32 - On application from the Company was struck off by the RoC, Hyderabad w.e.f January 31, 2022.
9 Sl No. 33 - ceased to be Subsidiary with effect from March 31, 2022.

199
 Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies

200
Part B: Associates (` in crores)

Shares of Associate by Net worth

Latest
attributable to Profit/Loss
audited Reason
S. Description of shareholding for the year
Name of associates Balance Amount of for non-
No. No. % significant influence as per latest Considered in
Sheet Investment consolidation
audited consolidation
Date
Balance Sheet
Brindavan Infrastructure Significant influence due
1 31-Mar-22 8,643,036 3.46 33.33% NA 12.44 (0.02)
Company Limited to % of Share capital
Paschal Form Work (India) Significant influence due
2 31-Mar-22 6,549,892 6.91 23.35% NA 0.20 -
Private Limited to % of Share capital
Nagarjuna Facilities Significant influence due
3 31-Mar-22 147 0.17 49.00% NA - -
Management Services L.L.C. to % of Share capital
Himalayan Green Energy Significant influence due
4 31-Mar-22 1,000,000 - 50.00% NA - -
Private Limited to % of Share capital
Apollonius Coal and Energy Significant influence due
5 31-Mar-22 3,778,757 - 44.22% NA - -
Pte. Ltd. to % of Share capital
Pondicherry Tindivanam Significant influence due
6 31-Mar-22 3,388,040 - 47.80% NA - -
Tollway Private Limited to % of Share capital
Ekana Sportz City Private Significant influence due
7 31-Mar-22 2,268,000 22.68 26.00% NA 23.19 (0.13)
Limited to % of Share capital
Varapradha Real Estates Significant influence due
8 31-Mar-22 13,344,973 71.50 40.00% NA 77.50 1.55
Private Limited to % of Share capital

NCC LIMITED
REGIONAL OFFICES
1 Ahmedabad 6. Lucknow
211-212, Sarthik - II Opp: Rajpath Club House no: C-2-183
Sarkhej - Gandhinagar Highway Ansal Golf City Shaheed Path
Ahmedabad - 380 054 Near SJ International School
T : +91 79 26871478/69 Lucknow - 226030
E : [email protected] T : +91 88 60075625
E : [email protected]
2 Bengaluru
301,Batavia Chambers 7. Mumbai
8, Kumara Krupa Road A-914 kanakia wall street
Kumara Park East Bangalore -560 001 Andheri Kurla Road
T : +91 80 22258991/ 3309 Chakala Andheri (East)
E : [email protected] Mumbai 400 093
T : 022-62988000
3. Chennai E : [email protected]
5B Kences Towers
No.1 Ramakrishna Street 8. Patna
Off : North Usman Road A/3, Road No.”A”
T.Nagar Chennai – 600017 2nd Floor, Vivekanand Park
T : +91 44 28143051/52 Boring Patliputra Road
E : [email protected] Patna - 800013
T : 06122571196
4. Delhi E : [email protected]
PHD House 4/2 Siri Institutional Area
August kranti Marg 9. Pune
New Delhi -110016 Purushottam Plaza
T : +91 11 40325300 3rd Floor, Office No.3
E : bldgs.rodelhi @nccltd.in Baner-Balewadi Road, Pune - 411045
T : 020-46504200
5. Kolkata E : [email protected]
ECO Space Business Park
Block No-4A, 5th Floor
New Town Action Area – II
Kolkata - 700156
T :+ 91 33 40298888
E : [email protected]