NOTE 1 :

Corporate Information :

HEC Infra Projects Limited is a public company incorporated in India. Its shares are listed on the emerge platiorm of the National Stock Exchange of India. The Company is mainly engaged in the electrification services.

The significant accounting policies followed by the company are as stated below :

2.1 TERMS/RIGHTS ATTACHED TO EQUITY SHARE

The company has only one class of Equity Shares having a par value of Rs. 10/- per share. Each equity Share Holder is entitled to one vote par Share.

2.2 DIVIDEND

The Dividend proposed by the Board of Directors is Rs. 1 per share which is subject to approval of the Share holders in the ensuing Annual General Meeting. The Company declares and pays dividends in Indian Rupees.

2.3 During the financial year 2013-14 company has issued 697666 bonus shares in the ratio of 1:1 utilising share premium account

2.4 During the financial year 2014-15 company has redeemed 93500 preference shares by way of conversion into equity shares.

2.5 In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. The holders of Partly Paid Equity Shares will have to contribute unpaid amount on the the Equity Shares held by them. As per records of the company including its register of members and other declarations received from them regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares

2.6 No Shares has been Reserved for Issue under the Employee Stock Option (ESOP).

2.7 No Share options are outstanding at the end of the year.

2.8 Pursuant to the initial public offer some of the shares are locked in from the date of allotment of fresh shares in the IPO viz. from 23rd March 2016, as under :

(a) 414000 shares held by the the promoter, for a Period of three year.

Company has taken secured loan facility from SIDBI “Small Industries Development Bank of India” . The same has been secured by subservient charge on all the movable and immovable assets of the borrower already charged to Bank of India. Such charges would be subsurvient to all the existing and prospective charges created/ to be created by the borrower on the said assets in favour of Bank of India,which has extended/would extend busines loans(viz. term loans for machineries,business premises and working capital) to the borrower for the same business for which SIDBI has extended the sub-debt. All such aforesaid lenders would be referred to as “ Senior Secured Lenders”.Company has also given irrevocable and unconditional gurantee of directors 1) Shri Gaurang P shah 2) Rupal G Shah and all such persons hoding a stake of more than 10% in the company.Over and above this, company has also liened Fixed deposit amounting to Rs. 2500000.

3.1 Cash Credit facilities from Bank of India is secured by way of hypothecation of stock, book debts and other current assets of the company both present and future and is also secured by personal guarantee of directors. It is also collaterally secured by hypothecation of Plant & Machinery and Equitable mortgage of Following properties.(1) Office premises-61 6th floor, Titanium, Nr. Prahaladnagar, Ahmedabad owned by the company (2) Corporate house no 6 , Sigma corporate 1, Sindhu Bhavan road, Bodakdev, Ahmedabad . Over and above this, personal property of Directors Shri Gaurang P. Shah & Smt. Rupal G. Shah’s has been given as a Collateral security.

Interest rates on Cash Credit Accounts are varying , which are linked to base rate of Bank from time to time.

*This fixed deposit is liened in favour of Bank of India as cash margin for bank guarantee limits utilized from the Bank.

#This fixed deposit lis liened in favour of SIDBI as security towards loan of Rs. 4 crores (oustanding of Rs. 2.5 crores as on 31 March 2018) sanctioned.

NOTE - 4

CONTINGENT LIABILITY

(a) Estimated amounts of contracts remaining to be executed which are under process - Rs. 7956.70 Lakh

(b) Estimated amounts of contracts remaining to be executed which are yet to begin - Rs. 4500.00 Lakh

NOTE - 5

INITIAL PUBLIC OFFER

During the financial year 2015-16, the company has made an Initial public Offer(IPO) for 538800 equity shares of Rs. 10 each.The equity shares were issued at a price of Rs. 100 per share (Including premium of Rs. 90 per share). During the year company has received Rs. 538.80 lacs from the proceeds received in the IPO.

NOTE - 6

Previous year’s figures have been regrouped / recasted / reclassified wherever necessary to correspond with the current year’s classification / disclosure.

Additional Information required to be given pursuant to the Schedule III of The Companies Act, 2013 are either Nil or not applicable and hence not disclosed for better presentation of accounts.