- The securities provided for the Term loan from Banks amounting to ' Nil (P.Y. - ' 1,862.55/- lakhs) is as follows:
i. Exclusive charge by way of hypothecation of the respective vehicles/construction equipments.
- The securities provided for the Term loan from Banks amounting to ' 17,114.80 lakhs (P.Y. - Nil) is as follows:
Margin provided: 25% for Stocks / Receivables
25% for receivables upto 6 months 40% for retention receivable up to 12 months
- The above loans carry interest rates ranging from 8.00% to 12.50%. The loans are repayable in monthly installments along with interest.
c) Loan from financial institutions
- The securities provided for the Term loan from financial institutions amounting to ' 21,686.16/- lakhs (P.Y. - ' 41,124.74/- lakhs) is as follows:
i. Personal guarantee of Mr. Dilip Suryavanshi, the Managing
Director of the Company.
ii. The loans are secured by way of hypothecation of the respective vehicles/construction equipments.
- The securities provided for the Term loan from financial institutions amounting to ' Nil (P.Y. - ' 3,355.00/- lakhs) is as follows:
i. Pledge of Equity Shares of Dilip Buildcon Limited held by Mr. Dilip Suryavanshi, the Managing Director of the Company, the market value of which is not less than 2.10 times the outstanding obiligations of the borrower at the point of facility drawndown.
35,00,000 shares of Dilip Buildcon Limited held by Mr. Dilip Suryavanshi, the Managing Director of the Company,
has been pledged as security at the point of facility drawndown.
ii. Personal guarantee of Mr. Dilip Suryavanshi, the Managing
Director of the Company and Mr. Devendra Jain, the CEO of the Company.
- The securities provided for the Term loan for Working Capital from financial institutions amounting to ' Nil (P.Y. - 1,342.71 lakhs) is as follows:
- Unconditional and irreovcable bank guarantee
iii. The details of redemption is as fottows:
8.90% Series -VIl: 450 NCDs of ' 10,00,000 each redeemable on 28-Jun-2021
8.90% Series -VIII: 450 NCDs of ' 10,00,000 each redeemable on 28-Sep-2021
8.90% Series -XI: 450 NCDs of ' 10,00,000 each redeemable on 28-Dec-2021
8.90% Series -X: 450 NCDs of ' 10,00,000 each redeemable on 28-Mar-2022
8.90% Series -XI :500 NCDs of ' 10,00,000 each redeemable on 28-Jun-2022
8.90% Series- XII: 500 NCDs of ' 10,00,000 each redeemable on 28-Sep-2022
8.90% Series -Xll: 500 NCDs of ' 10,00,000 each redeemable on 28-Dec-2022
8.75%, 500 NCDs of ' 10,00,000 each redeemable on 29-Nov-2022
8.75%, 500 NCDs of ' 10,00,000 each redeemable on 29-May-2023
8.67%, 300 NCDs of ' 10,00,000 each redeemable on 29-Jul-2021
8.67%, 300 NCDs of ' 10,00,000 each redeemable on 29-Jan-2022
8.67%, 300 NCDs of ' 10,00,000 each redeemable on 29-Jul-2022
8.67%, 300 NCDs of ' 10,00,000 each redeemable on 29-Jan-2023
8.67%, 500 NCDs of ' 10,00,000 each redeemable on 29-Jun-2023
b) Term Loan from Banks
- The securities provided for the Term loan from Banks amounting to ' 17,597.15/- lakhs (P.Y. - ' 21,750.70/-lakhs) is as follows:
i. Personal guarantee of Mr. Dilip Suryavanshi, the Managing
Director of the Company.
ii. The loans are secured by way of hypothecation of the respective vehicles/construction equipments.
- The securities provided for the Term loan from Banks amounting to ' 10,228.82/- lakhs (P.Y. - ' 8,964.70/-lakhs) is as follows:
i. Unconditional and irrevocable Personal guarantee of Mr. Dilip Suryavanshi, the Managing Director of the Company,
Mrs. Seema Suryavanshi, the Whole-time Director of the Company and Mr. Devendra Jain, the CEO of the Company; till the tenure of loan.
ii. Exclusive charge by way of hypothecation of the respective vehicles/construction equipments.
- The above loans carry interest rates ranging from 8.00% to 12.50%. The loans are repayable in monthly installments along with interest.
2) Current borrowingsa) Loans payable on demand from Banks
i. Hypothecation of unencumbered plant and machinery and equipments (present and future).
ii. Pledge of Fixed Deposit Receipts standing in the name of the Company
iii. Pledge of 1,25,00,000 equity shares of Dilip Buildcon Limited held by Mr. Dilip Suryavanshi, the Managing
Director of the Company and Mr. Devendra Jain, the CEO of the Company
iv. Pari Passu charge of all lender banks by of hypothecation of stock of Material, Stock-in-process i.e. Cement, Steel, Steel Pipes, Gitty, Murram, Boulders, Diesel, Bituminous, Oil Grease etc. used in construction works at various sites of the Company, work in progress, completed projects along with book-debts and the Government receivables there against.
v. Margin 25% for Stocks / Receivables
provided: 25% for receivables upto 6 months
40% for retention receivable up to 12 months (only with Government Departments) Consortium members banks have permitted 10% relaxation in margin provided till 30 September 2021
vi. Personal guarantee of Mr. Dilip Suryavanshi, the Managing Director of the Company, Mrs. Seema Suryavanshi, the Whole-time Director of the Company, Mr. Devendra Jain, the CEO of the Company and Mrs. Preeti Jain, the relative of the CEO of the Company.
vii. Guarantee of the firm M/s B. S. Associates
viii. The collateral securities provided for the above loans are as follows:
Pari Passi charge of all lender banks by way of Extension of
Equitable Mortgage of the following Immovable properties:
1) Vacant Plot khasra No. 9/1/2/1/4 situated at vill. Banjari, Kolar Road, Bhopal standing in the name of, Mr. Dilip
Suryavanshi, the Managing Director of the Company.
2) Vacant plot at K.No. 83/2/1, PH.No.35; R.N.M. - 4, vill. ChapriRatibar, Bhopl, standing in the name of, Mrs. Seema Suryavanshi, the Whole-time Director of the Company.
3) Plot at Khasra No. 235 (Old 85,86/1, 87/23) ; Patwari Halka No. 35, Vill. Chapri, Ratibar Tehsil- Huzur; Distt. Bhopal, standing in the name of, Mr. Dilip Suryavanshi,
the Managing Director of the Company and Mrs. Seema Suryavanshi, the Whole-time Director of the Company.
4) Diverted land at Khasra No 56ja (Old khasra No. 56) at Village Sevania Gond PH No 40, Vikas Khand - Phanda, Tehsil Huzur, Dist. Bhopal, standing in the name of, Mr. Dilip
Suryavanshi, the Managing Director of the Company.
5) Diverted land at Khasra No 56jha (Old khasra No. 56) at Village Sevania Gond PH No. 40, Vikas Khand - Phanda, Tehsil Huzur, Dist. Bhopal, standing in the name of, Mrs.
Seema Suryavanshi, the Whole-time Director of the Company
6) Diverted Land at Survey No. 9/1/2/1/5, Gram Banjari, Near Ganpati Enclave, Ph no. 39, Kolar Road, Tehsil Huzur, Bhopal standing in the name of relative of, Mr.Dilip Suryavanshi, the Managing Director of the Company.
7) Diverted Land at Survey No. 7/3/1, Gram Baradari, Falodi Colony, Ward No. 14, Ph No. 18 (Behind Vivekanand School) Pargana, Raigarh, Tehsil & District Rajgarh (M.P) H. No. 7/522) standing in the name of, Mr. Devendra Jain, the CEO of the Company.
8) Diverted Land at Survey No. 7/3/1, Gram Baradari, Falodi Colony, Ward No. 14, Ph No. 18 (Behind Vivekanand School) Pargana, Raigarh, District Rajgarh (M.P) H. No. 7 standing in the name of, Mr. Devendra Jain, the CEO of the Company.
9) Land at part Khasra No. 315/2, PatwariHalka No. 35 R N M - 4, Gram Chapri (Ratlam) Vikas KhandFanda, Tehsil Huzur, Bhopal. Standing in the name of, Mr. Dilip Suryavanshi,
the Managing Director of the Company and Mrs. Seema Suryavanshi, the Whole-time Director of the Company.
10) Immovable property at khasra no. 51/1/2/1, 51/1/2/2, 51/1/2/3, 51/1/2/4, Behind Halalpura Bus Stand, Bhopal standing in the name of B.S. Associates (partnership firm).
11) House on Plot No C/2, C/3A, C/14, C/15, Falaudi Colony, New Ward No 15, Near Swami Vivekanand Public School, Rajgarh standing in the name of, Mrs. Preeti Jain, relative of the CEO of the Company.
The claims against the company not acknowledged as debts include claims made by others under various laws.
The Company as part of its various commitments to be fulfilled under Construction Contracts has provided Bank Guarantees to various parties.
The company had received the assessment order u/s 143(3) of the Income Tax Act, 1961 of AY 2014-15 where the assessing officer has disallowed certain deductions. The company has filed the appeal against the said order u/s 143(3) to CIT(A) which was rejected by the CIT(A). Further the company has filed the appeal against the order of CIT(A) to ITAT, Indore but meanwhile due to the procedural ground the Assessing Officer levied the penalty on above
disallowance u/s 271(1)(c) amounting to ' 14,66,90,000/-. The company has filed the appeal against the order u/s 271(1)(c) to the CIT (A). Currently, the matter is pending with CIT(A).
The Company maintains policies and procedures to value financial assets or financial Liabilities using the best and most relevant data available. In addition, the Company internally reviews valuations, including independent price validation for certain instruments. Further, in other instances, Company retains independent pricing vendors to assist in corroborating the valuations of certain instruments.
The fair value of the financial assets and liabilities are included at the amount at which the instrument that would be received to sell an asset or paid to transfer liability in an orderly transaction between market participants at the measurement date.
The Following methods and assumptions were used to estimate the Fair values:
* The Company has not disclosed the fair values of trade payabtes, trade receivables and cash and cash equivalents because their carrying amounts are reasonable approximation of fair value.
Fair value of security deposits have been estimated using a discounted cash flow model. The valuation requires management to make certain assumptions about interest rates, maturity period, credit risk, forecated cash flows.
Long-term fixed-rate and variabte-rate receivabtes/borrowings are evaluated by the company based on parameters such as interest rates, individual creditworthiness of the customer and the risk characteristics of the financed project. Based on this evaluation, allowances are taken into account for the expected credit tosses of these receivables. As of reporting date the carrying amounts of such receivables, net of allowances are not materially different from their calculated fair values.
Carrying value of loans from banks, other non current borrowings and other financial liabilities is estimated by discounting future cash flows using rates currently available for debt on simitar terms, credit risk and remaining maturities. The own non- performance risk as at reporting date was assessed to be insignificant.
Fair value hierarchy
The fottowing tabte provides the fair vatue measurement hierarchy of Company's assets and tiabitities grouped into Levet 1 to Levet 3 as described in significant accounting poticies - Note 1. Further tabte describes the vatuation techniques used, key inputs to vatuations and quantitative information about significant unobservabte inputs for fair vatue measurements.
During the year ended 31 March 2021 and 31 March 2020 there were no transfers between tevet 1 and tevet 2 fair vatue measurements and no transfers into and out of tevet 3 fair vatue measurement.
Note 31: Employee Benefits : i Defined Contribution Plans:
a) Amount of ' 5,047.45/- takhs (P.Y. - ' 4,781.77/- takhs) is recognised as an expense and inctuded in "Emptoyees benefits expense” (Note 21) in the Profit and Loss Statement.
b) The expenses for teave entittement recognised in the Profit and Loss Statement is ' 660.82/- takhs (P.Y. - ' 853.17/-takhs) and is inctuded under 'Emptoyee's wetfare and Other amenities' in "Emptoyee benefits expenses” (Note 21) in the Profit and Loss Statement.
Basis used to determine the overall expected return:
The net interest approach effectively aasumes an expected rate of return on plan assets equal to the beginning of the year Discount Rate. Expected return of 6.25% has been used for the valuation purpose.
h) Principal actuarial assumptions at the balance sheet date
(expressed as weighted averages)
1 Discount rate as at 31-03-2021 - 6.25%
2 Expected return on plan assets as at 31-03-2021: 6.25%
3 Salary growth rate : For Gratuity Scheme - 8.00%
4 The estimates of future salary increase considered in actuarial valuation take into account inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.
j) General descriptions of defined plans:1 Gratuity Plan:
The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to fifteen days salary last drawn for each completed year of service. The same is payable on termination of service or retirement whichever is earlier. The benefit vests after five years of continuous service.
k) The Company expects to fund ' 1,527.81/- lakhs towards its gratuity plan in the year 2021-22.
l) Sensitivity analysis
Sensitivity analysis indicates the influence of a reasonable change in certain significant assumptions on the outcome of the Present value of obligaion(PVO). Sensitivity analysis is done by varying (increasing/ decresing) one parameter by 50 basis points (0.5%)
The key objective of the Company's capital management is to ensure that it maintains a stable capital structure with the focus on total equity to uphold investor, creditor, and customer confidence and to ensure future development of its business. The Company is focused on maintaining a strong equity base to ensure independence, security, as well as financial flexibility for potential future borrowings, if required without impacting the risk profile of the Company.
Company's principal financial liabilities, comprise borrowings from banks, trade payables and security deposits. The main purpose of these financial liabilities is to finance Company's operations (short term). Company's principal financial assets include investments, security deposit, trade and other receivables, deposits with banks and cash and cash equivalents, that derive directly from its operations.
Company is exposed to market risk, credit risk and liquidity risk.
The Company's senior management oversees the management of these risks. The Company's senior management is supported by a financial risk committee that advises on financial risks and the appropriate financial risk governance framework for the Company. The financial risk committee provides assurance to the Company's senior management that the Company's financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Company's policy that no trading in derivatives for speculative purposes may be undertaken.
The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk interest rate risk, currency risk and other price risk such as equity price risk and commodity risk. Financial instruments affected by market risk include borrowings, trade and other payables, security deposit, trade and other receivables, deposits with banks.
The sensitivity analysis in the following sections relate to the position as at 31 March 2021 and 31 March 2020. The sensitivity of the relevant income statement item is the effect of the assumed changes in respective market risks. The sensitivity analysis have been prepared on the basis that the amount of net debt and the ratio of fixed to floating interest rates of the debt are constant at 31 March 2021.
The analysis exclude the impact of movements in market variables on: the carrying values of gratuity, other post retirement obligations and provisions "
Company's activities exposed to interest rate risk.
a) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. At the reporting date the interest rate profile of the Company's interest bearing financial instruments are follows:
Credit risk on trade receivables and unbilled work-inprogress is limited as the customers of the Company mainly consists of the government promoted entities having a strong credit worthiness. For other customers, the Company uses a provision matrix to compute the expected credit loss allowance for trade receivables and unbilled work-in-progress. The provision matrix takes into account available external and internal credit risk factors such as credit ratings from credit rating agencies, financial condition, ageing of accounts receivable and the Company's historical experience for customers.
b) Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the company in accordance with company's policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Company monitors rating, credit spreads and financial strength of its counter parties. Company monitors ratings, credit spread and financial strength of its counter parties. Based on ongoing assessment company adjust it's exposure to various counterparties. Company's maximum exposure to credit risk for the components of balance sheet is the carrying amount as disclosed in Note 8.
iii) Liquidity risk
Liquidity risk is the risk that the Company may not be able to meet its present and future cash flow and collateral obligations without incurring unacceptable losses. Company's objective is to, at all time maintain optimum levels of liquidity to meet its cash and collateral requirements. Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing at optimised cost.
The table summarises the maturity profile of company's financial liabilities based on contractual undiscounted payments
Note 34: Capital management
For the purpose of the Company's capital management, capital includes issued equity capital , share premium and all other equity reserves. The primary objective of the Company's capital management is to maximise the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents, excluding discontinued operations.
Note 35: Disclosure of Creditors outstanding under MSMED Act, 2006
Disclosure of sundry creditors under current liabilities is based on the information available with the Company regarding the status of the suppliers as defined under the "Micro, Small and Medium Enterprises Development Act, 2006” (the Act). There are no delays in payment made to such suppliers and there is no overdue amount outstanding as at the Balance sheet date. Relevant disclosures as required under the Act are as follows:
a. Ministry of Corporate Affairs has notified Ind AS 116 “Leases”
which is effective from April 1, 2019. Pursuant to this, the company has applied this standard to all lease contracts existing on April 1, 2019 using the modified retrospective approach under which the cumulative effect is recognised at the date of initial application April 1, 2019.
The Company does not face a significant liquidity risk
with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.
Rental expense recorded for short-term leases was ' 4,750.42/- lakhs (P.Y. - ' 2,137.06/- lakhs) for the year ended 31 March, 2021.
i. Balances of Debtors, Creditors, Advances, Deposits, and Unsecured Loans etc. are subject to confirmation and reconciliation.
ii. In opinion of the Board of Directors of the company, the Current Assets, Loans and Advances are expected to be realized approximately at the value at which they are
stated in the accounts in the ordinary course of business.
Note 38:
There are no amounts due and outstanding to be credited to
Investor Education and Protection Fund as at 31 March 2021.
Note 39:
Segments have been identified in accordance with Indian Accounting Standards (Ind AS) 108 on Operating Segments
considering the risk or return profiles of the business. As required under Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the performance and allocates resources based on analysis of various performance indicators. Accordingly,
information has been presented for the Group's operating segments and the company has identified business segment as primary segment. The reportable segment is Construction and Engineering Contracts and the business of Construction and
Development of Real Estate is at a nascent stage and no actual operations have commenced.
Note 40:
Royalty on use of construction material is determined by the concerned authorities and the amount of Royalty payable as at year end has not been ascertained in absence of necessary confirmation from the said authorities and the management
does not consider the same to be substantial and material.
Note 41:
During the year, the company has sold 70% shares in respect of one subsidiary, 74% shares in respect of two subsidiaries, 100% shares in respect of one subsidiary, 51.10% shares in respect of one subsidiary and 49% shares in respect of two subsidiaries.
The company has earned Nil profit on these transactions.
Note 42:
a. The Company has entered into Shareholder and
Share Purchase agreement with Cube Highways and Infrastructure III PTE Limited (Cube Highways) on 31 August 2019 to sell its entire shareholding in five subsidiaries
having projects under construction (as per Hybrid Annuity Mode ('HAM') Projects ) for total expected consideration of ' 640 crores in a phased manner subject to shareholding
transfer restrictions set out in concession agreement
executed between National Highways Authority of India and respective subsidiaries and subject to various regulatory and lender approvals.
b. The transaction will be completed in two stages, with the first stage to be completed after the Commercial Operation Date (the “COD”) and the second stage to be completed after expiry of mandatory lock-in period as per the Concession Agreement. Total consideration as stated above, may undergo some changes as per agreed terms on account of prevailing Bank Rate, rate of interest charged by lenders of respective Project, inflation etc. on the date of COD.
c. Since the agreement with Cube Highways are subject to regulatory approvals, lender consent and other applicable approvals, no impact of this proposed transfer has been
given effect to in these results.
Note 43:
As per provisions of the Companies Act, 2013 the Company was required to spend ' 1,366.40/- lakhs (PY. - ' 1,224.89/- lakhs) on CSR activities during the year. The total unspent liability till 31st March 2020 was ' 3,458.48/- lakhs. The Company has incurred expenditure relating to CSR activities amounting to ' 4,826.45/- lakhs (P.Y. - ' 192.60/- lakhs) and the same is reflected in Other Expenses in Note 23. The company has fully spent the total unspent CSR amount which was outstanding till 31 March 2021.
Note 44:
As per Rule 18(7) of the Companies (Share Capital and Debentures) Rules, 2014, the company had to create a Debenture Redemption Reserve for the purpose of redemption
of debentures at the rate of 25% of the value of the outstanding debentures.
The value of outstanding debenture being ' 60,000/- lakhs at year ending March 2018, the debenture redemption reserve of ' 15,000/- lakhs had been created and the equivalent amount had been transferred from 'Retained Earnings' to 'Debenture Redemption Reserve'.
Ministry of Corporate Affairs vide notification dated 16 August 2019 amended the Companies (Share Capital and Debentures) Rules, 2014 and it was called as Companies (Share Capital and
Debentures) Amendment Rules, 2019. Based on this notification, the listed Companies were not required to transfer 25% of the value of outstanding Debentures to the Debenture Redemption Reserve. Therefore, no additional amount was transferred to
Debenture Redemtion Reserve post this notification.
The Company has considered the possible effects that may result from COVID-19 in the preparation of these financial statements including the recoverability of carrying amounts of financial and non-financial assets. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of COVID-19, the Company has, at the date of approval of the financial statements, used internal and external sources of information and expects that the carrying amount of the assets will be recovered.
The impact assessment of COVID-19 is a continuing process given the uncertainties associated with its nature and duration and accordingly the impact may be different from that estimated as at the date of approval of these financial results. The Company will continue to monitor any material changes to future economic conditions.
Note 46:
Loan Moratorium facility vide RBI circular
Due to difficulty faced by the borrowers in repayment of loans due to cash flow issues amid lockdown because of Covid-19 pandemic, RBI vide its Notification Ref RBI/2019-201186 DOR.No .BPBC.47l21 .04.04812019-20 dated 27th March 2020 (COVID-19 Regulatory Package) has asked the bankers to provide three months moratorium in loan repayments to its borrowers. The company had opted for this facility and has intimated to the respective bankers vide letter dated 28th March 2020 asking for keeping all the payments due from the company under the Consortium Loan Agreement, any interests and charges therein in abeyance for the month of April and May 2020.
In view of the extension of the lockdown and continuing disruptions on account of COVID-19, RBI vide its letter dated May 22, 2020 had decided to permit lending institutions to extend the moratorium on term loan instalments by another three months, i.e., from June 1, 2020 to August 31, 2020. In regards to same, the Company had opted for this facility and has intimated to the respective bankers vide letter dated May 25, 2020 asking for keeping all the payments due from the company under the Consortium Loan Agreement, any interests and charges therein in abeyance for the month of June 01, 2020 to August 31, 2020.
Note 47: Invocation of Force Majeure Clause due to impact of Covid-19
Ministry of Finance vide its Notification Ref. no. F.18/4/2020-PPD, has announced on 13th May 2020 that is respect of public-private partnership concession contracts, a period of the contract may have become unremunerative. Therefore, after fulfilling due procedure and wherever applicable, contractor may invoke Force Majeure Clause (FMC) for all construction/work contracts and in such event, date for completion of contractual obligations shall stand extended for a period not less than three months
and not more than six months. Accordingly, the Company had invoked FMC for construction contracts and asked for extension of construction period. The Company has been granted the extension for all construction/work contracts in the range of three to nine months.
Note 48:
The disclosure under section 186(4) of the Companies Act, 2013:
(a) Contract with Customers
The company has recognised ' 9,11,530.99/- lakhs (PY. - ' 8,89,551.33/- lakhs) as revenue from Contracts with customers during the year.
(b) Disaggregation of Revenue
Segments have been identified in accordance with Indian Accounting Standards (Ind AS) 108 on Operating Segments
considering the risk or return profiles of the business. As required under Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the performance and allocates resources based on analysis of various performance indicators. Accordingly, information has been presented for the Group's operating segments and the company has identified business segment as primary segment. The reportable segment is Construction and Engineering Contracts and the business of Construction and Development of Real Estate is at a nascent stage and no actual operations have commenced.
Therefore the company has identified the reportable segment as 'Construction and Engineering Contracts' and it believes that this identification best depict show the nature, amount, timing and uncertainty of our revenues and cash flows are affected by industry, market and other economic factors.
Revenue for construction contracts is recognised in profit or Loss in proportion to the stage of completion of the contract. The stage of completion is assessed by reference to surveys of work performed. Otherwise, contract revenue is recognised only to the extent of contract costs incurred that are likely to be recoverable. Revenue in excess of billings is recognised as Unbilled revenue and is classified as Financial Asset for these cases as right to consideration is unconditional upon passage of time.
During the year ended March 31, 2021, ' 54,375.19/- lakhs (PY. - ' 44,476.55/- lakhs) of opening unbilled revenue has been either reclassified to Trade Receivables upon billing to customers on compLetion of miLestone or has been part of closing unbilled revenue.
Changes in Contract Assets and Contract Liabilities are on
account of transaction undertaken in the normaL course of business.
(d) Performance Obligations
The Company has applied the practical expedient as provided in Ind AS 115 and excluded the disclosure relating to remaining performance obLigation for:
(i) Contracts where the original expected duration is one year or Less
(ii) Contracts where the revenue recongnized corresponds directly with the value to the customer of the entity's performance completed to date. Typically this invoLves those contracts where invoicing is on time and materiaL basis.
Remaining performance obLigation estimates are subject to change and are affected by severaL factors such as terminations, changes in the scope of contracts, periodic revaLidations of estimates and other macro economic factors.
The aggregate amount of transaction price allocated to the performance obLigations that are unsatisfied (or partiaLLy unsatisfied) as at March 31, 2021, after considering the
practical expedient mentioned above is ' 28,07,986.98/-lakhs (PY. - ' 19,08,158.43/- lakhs) out of which 40% is expected to be recognised as revenue within the next one year and the balance thereafter.
Note 51: Figures relating to previous years have been regrouped / rearranged, wherever necessary.
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