BSCPL AR single color · Phones: 91-40-23307831 Fax: 91-40-23307385 e-mail: [email protected] Website: Company Secretary B. S. Bhaskar Chief Financial Officer A. V. B. R. Narasimham

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Annual Report 2010 -11

BSCPL INFRASTRUCTURE LTD.

Executive Committee

B. Krishnaiah

B. Seenaiah

K. Thanu Pillai

Board CommitteesAudit Committee

Murali Krishna P

Agrawal MM

Amitabha Guha

N. Sivaraman

K. Thanu Pillai

IPO Committee

K. Thanu Pillai

Rajiv Sahney

N. Sivaraman

Shareholders and Investors’

Grievance Committee

Ashoke Joshi

Kameswara Rao B

Murali Krishna P

K. Thanu Pillai

Board of Directors

B. Krishnaiah - Chairman

B. Seenaiah - Managing Director

K. Thanu Pillai - Whole time Director

Rajiv Sahney - Investor Director

N. Sivaraman - Investor Director

Agrawal MM - Independent Director

Amitabha Guha - Independent Director

Ashoke Joshi - Independent Director

Kameswara Rao B - Independent Director

Murali Krishna P - Independent Director

Walker, Chandiok & Co Chartered Accountants7th Floor, Block III, White House, Kundan Bagh, Begumpet, Hyderabad - 500 016.

Joint Statutory Auditors

Anjaneyulu & Co Chartered Accountants30, Bhagyalakshmi Nagar, KawadigudaHyderabad - 500 080.

Registered Office6-2-913/914, 5th Floor, Progressive TowersKhairatabad, Hyderabad - 500 004.

Company Addresses

Corporate OfficeJIVI Towers, 8-2-502/1/A, Road No. 7,Banjara Hills, Hyderabad - 500 034.

Contacts

Phones: 91-40-23307831 Fax: 91-40-23307385 e-mail: [email protected] Website:www.bscpl.net

Company Secretary

B. S. Bhaskar

Chief Financial Officer

A. V. B. R. Narasimham

BSCPL Infrastructure Ltd.

Executive Committee

B. Krishnaiah

B. Seenaiah

K. Thanu Pillai

Board CommitteesAudit Committee

Murali Krishna P

Agrawal MM

Amitabha Guha

N. Sivaraman

K. Thanu Pillai

IPO Committee

K. Thanu Pillai

Rajiv Sahney

N. Sivaraman

Shareholders and Investors’

Grievance Committee

Ashoke Joshi

Kameswara Rao B

Murali Krishna P

K. Thanu Pillai

Board of Directors

B. Krishnaiah - Chairman

B. Seenaiah - Managing Director

K. Thanu Pillai - Whole time Director

Rajiv Sahney - Investor Director

N. Sivaraman - Investor Director

Agrawal MM - Independent Director

Amitabha Guha - Independent Director

Ashoke Joshi - Independent Director

Kameswara Rao B - Independent Director

Murali Krishna P - Independent Director

Walker, Chandiok & Co Chartered Accountants7th Floor, Block III, White House, Kundan Bagh, Begumpet, Hyderabad - 500 016.

Joint Statutory Auditors

Anjaneyulu & Co Chartered Accountants30, Bhagyalakshmi Nagar, KawadigudaHyderabad - 500 080.

Registered Office6-2-913/914, 5th Floor, Progressive TowersKhairatabad, Hyderabad - 500 004.

Company Addresses

Corporate OfficeJIVI Towers, 8-2-502/1/A, Road No. 7,Banjara Hills, Hyderabad - 500 034.

Contacts

Phones: 91-40-23307831 Fax: 91-40-23307385 e-mail: [email protected] Website:www.bscpl.net

Company Secretary

B. S. Bhaskar

Chief Financial Officer

A. V. B. R. Narasimham


Regional Offices

GurgaonJaya Plaza, C-1/B, 1st Floor, Sector 14,Old DLF Colony, Gurgaon - 122 001.

ChennaiNew No. 87/1, Old 39/1, Poes GardenCheenai - 600 086.

State Bank of Hyderabad Vijaya Bank Bank of India Axis Bank Ltd.

State Bank of India Allahabad Bank Andhra Bank YES Bank

Standard Chartered Bank IDBI Bank ICICI Bank

Bankers

Overseas

Fujairah, UAE

Dubai

Afghanistan

Project Sites

India

Andhra Pradesh

Nellore

Rajahmundry

Vizianagaram

Kurnool and Cumbum

Bihar - Patna, Mokama, Muzaffarpur

Gujarat - Godhra

Meghalaya

Karnataka - Hassan

West Bengal - Mughalsarai

Assam

Notice 1-9

Directors' Report 10-13

Auditors’ Report 14-16

Standalone Financials 17-48

Consolidated Financials 49-84

INDEX

th13 Annual Report

NOTICE

Notice is hereby given at a Shorter Notice that the Thirteenth

Annual General Meeting of the Company will be held on

Wednesday the 21st day of September 2011 at 10.00 A.M. at

the Registered Office of the Company, i.e. at 6-2-913/914, 5th

Floor, Progressive Towers, Khairatabad, Hyderabad – 500

004, to transact the following business.

ORDINARY BUSINESS:

1. To receive, consider, and adopt the audited Balance

Sheet as at March 31, 2011 and the Profit and Loss

Account for the year ended as on that date, along with the

Directors’ Report and Auditors’ Report thereon.

2. To appoint a director in place of Mr. Bollineni Krishnaiah,

Director who retires by rotation and being eligible offers

himself for reappointment and on such re-appointment

his remaining term as a Whole Time Director of the

Company shall continue from the date of reappointment.

3. To consider, and if thought fit, to pass with or without

modifications, the following resolution as an Ordinary

Resolution:

“RESOLVED THAT M/s. Walker, Chandiok & Co.

(Member Firm of Grant Thornton International),

Chartered Accountants, Hyderabad and M/s. Anjaneyulu

& Co., Chartered Accountants, Hyderabad, the retiring

Joint Statutory Auditors of the Company be and are

hereby re-appointed as Joint Statutory Auditors of the

Company to hold office from the conclusion of this

Annual General Meeting until the conclusion of the next

Annual General Meeting at such remuneration as may be

determined by the Board of Directors.”

SPECIAL BUSINESS:

4. Appointment of Mr. P. Murali Krishna as Director:

To consider and if thought fit, to pass, with or without

modification, the following resolution as an Ordinary

Resolution:

“RESOLVED that Mr. P. Murali Krishna, who was

appointed as an Additional Director by the Board of

Directors of the Company on September 16th 2011, and

who holds office as such up to the date of the Thirteenth

Annual General Meeting and in respect of whom notice

under section 257 of the Companies Act, 1956 was

received in writing proposing him as a candidate for the

office of Director of the Company, be and is hereby

appointed as a Director of the Company liable to retire by

rotation as per the Articles of Association of the

Company.”

5. Appointment of Mr. Ashoke Joshi as Director:



Resolution:

“RESOLVED that Mr. Ashoke Joshi, who was appointed

as an Additional Director by the Board of Directors of the

Company on September 16th 2011, and who holds

office as such up to the date of the Thirteenth Annual

General Meeting and in respect of whom notice under

section 257 of the Companies Act, 1956 was received in

writing proposing him as a candidate for the office of

Director of the Company, be and is hereby appointed as

a Director of the Company liable to retire by rotation as

per the Articles of Association of the Company.”

6. Appointment of Mr. Amitabha Guha as Director:



Resolution:

“RESOLVED that Mr. Amitabha Guha, who was










Company.”

7. Appointment of Mr. Man Mohan Agrawal as Director:



Resolution:

“RESOLVED that Mr. Man Mohan Agrawal, who was










Company.”


th13 Annual Report 1

Regional Offices

GurgaonJaya Plaza, C-1/B, 1st Floor, Sector 14,Old DLF Colony, Gurgaon - 122 001.

ChennaiNew No. 87/1, Old 39/1, Poes GardenCheenai - 600 086.

State Bank of Hyderabad Vijaya Bank Bank of India Axis Bank Ltd.

State Bank of India Allahabad Bank Andhra Bank YES Bank

Standard Chartered Bank IDBI Bank ICICI Bank

Bankers

Overseas

Fujairah, UAE

Dubai

Afghanistan

Project Sites

India

Andhra Pradesh

Nellore

Rajahmundry

Vizianagaram

Kurnool and Cumbum

Bihar - Patna, Mokama, Muzaffarpur

Gujarat - Godhra

Meghalaya

Karnataka - Hassan

West Bengal - Mughalsarai

Assam

Notice 1-9

Directors' Report 10-13

Auditors’ Report 14-16

Standalone Financials 17-48

Consolidated Financials 49-84

INDEX

th13 Annual Report

NOTICE

Notice is hereby given at a Shorter Notice that the Thirteenth

Annual General Meeting of the Company will be held on

Wednesday the 21st day of September 2011 at 10.00 A.M. at

the Registered Office of the Company, i.e. at 6-2-913/914, 5th

Floor, Progressive Towers, Khairatabad, Hyderabad – 500

004, to transact the following business.

ORDINARY BUSINESS:

1. To receive, consider, and adopt the audited Balance

Sheet as at March 31, 2011 and the Profit and Loss

Account for the year ended as on that date, along with the

Directors’ Report and Auditors’ Report thereon.

2. To appoint a director in place of Mr. Bollineni Krishnaiah,

Director who retires by rotation and being eligible offers

himself for reappointment and on such re-appointment

his remaining term as a Whole Time Director of the

Company shall continue from the date of reappointment.

3. To consider, and if thought fit, to pass with or without

modifications, the following resolution as an Ordinary

Resolution:

“RESOLVED THAT M/s. Walker, Chandiok & Co.

(Member Firm of Grant Thornton International),

Chartered Accountants, Hyderabad and M/s. Anjaneyulu

& Co., Chartered Accountants, Hyderabad, the retiring

Joint Statutory Auditors of the Company be and are

hereby re-appointed as Joint Statutory Auditors of the

Company to hold office from the conclusion of this

Annual General Meeting until the conclusion of the next

Annual General Meeting at such remuneration as may be

determined by the Board of Directors.”

SPECIAL BUSINESS:

4. Appointment of Mr. P. Murali Krishna as Director:



Resolution:

“RESOLVED that Mr. P. Murali Krishna, who was










Company.”

5. Appointment of Mr. Ashoke Joshi as Director:



Resolution:

“RESOLVED that Mr. Ashoke Joshi, who was appointed

as an Additional Director by the Board of Directors of the

Company on September 16th 2011, and who holds

office as such up to the date of the Thirteenth Annual

General Meeting and in respect of whom notice under

section 257 of the Companies Act, 1956 was received in

writing proposing him as a candidate for the office of

Director of the Company, be and is hereby appointed as

a Director of the Company liable to retire by rotation as

per the Articles of Association of the Company.”

6. Appointment of Mr. Amitabha Guha as Director:



Resolution:

“RESOLVED that Mr. Amitabha Guha, who was










Company.”

7. Appointment of Mr. Man Mohan Agrawal as Director:



Resolution:

“RESOLVED that Mr. Man Mohan Agrawal, who was










Company.”



8. Appointment of Mr. B. Kameswara Rao as Director:



Resolution:

“RESOLVED that Mr. B. Kameswara Rao, who was










Company.”

9. Reappointment of Mr. B. Seenaiah as Managing

Director:


modification, the following resolution as a Special

Resolution:

“RESOLVED THAT pursuant to the provisions of Section

198, 269,309,311 Schedule XIII and other applicable

provisions, if any, of the Companies Act, 1956, the

decision of the Board of Directors be and is hereby

ratified, reappointing Mr. B. Seenaiah as Managing

Director of the Company for a period of 3 (three) years

with effect from May 1, 2011 at the following remuneration

and allowances, with liberty to the Board of Directors of

the Company to alter and vary the terms in such manner

from time to time as may be necessary and reasonable

and that he shall not be liable to retire by rotation.”

Salary: Rs. 10,00,000/- per month

Medical Reimbursement:

Reimbursement of expenditure incurred for the

Managing Director and his family, subject to ceiling of

one month’s salary in a year, or three months salary over

a period of three years.

Leave Travel Concession:

Once in a year, in accordance with Rules of the Company,

to the Managing Director and his family.

Club Fees:

Fees of clubs, subject to a maximum of two clubs

provided that no admission and life membership fees

shall be payable by the Company.

Personal Accident Insurance:

Personal Accident Insurance of an amount, the annual

premium on which shall not exceed Rs. 15, 000/-

Provision of car and phone:

Provisions of car for use on Company’s business and

telephone/cell phone at residence will not be considered

as perquisites. Personal long distance call on telephone

and use of car for private purpose shall be billed by the

Company to the Managing Director.

10. Reappointment of Mr. T. Dayakar as Whole Time

Director:



Resolution:





ratified, reappointing Mr. T. Dayakar as Wholetime

Director of the Company for a period of 1 (one) year with

effect from April 1, 2011 at the following remuneration





Salary: Rs. 3, 50,000/- per month









Club Fees:




th13 Annual Report 2 th13 Annual Report 3




premium on which shall not exceed Rs.15,000/-







Other Benefits:

l Reimbursement of actual expenses incurred on Gas,

Electricity, Water and furnishings not exceeding 10%

of the salary per month.

l Reimbursement of entertainment expenses actually

and properly incurred for the business of the

Company.

11. Increasing the remuneration of Mr. T. Dayakar, Whole

Time Director:



Resolution:

“RESOLVED THAT pursuant to Sections 198, 269, 310,

311 and other applicable provisions if any, of the

Companies Act, 1956, consent of the Company be and is

hereby accorded for increasing the monthly

remuneration of Mr. T. Dayakar, Whole Time Director of

the company to Rs. 4,00,000/- with effect from April 1,

2011 until the expiry of his present term of office.

RESOLVED FURTHER that the other terms and

conditions of his appointment shall remain unaltered and

that in case of absence or inadequacy of profits the

remuneration payable be restricted to the amounts

specified in Schedule XIII of the Companies Act, 1956

and further that the Board of Directors shall be at liberty to

vary further the remuneration as stated above as they

may deem appropriate from time to time in compliance

with the provisions of Companies Act, 1956.”

12. Increasing the remuneration of Mr. U. Jayakodi, Whole

Time Director:



Resolution:





remuneration of Mr. U. Jayakodi, Whole Time Director of

the company to Rs. 4,00,000/- with effect from 1st April,


“RESOLVED FURTHER that the other terms and









13. Increasing the remuneration of Mr. K. Thanu Pillai,

Whole Time Director:



Resolution:





remuneration of Mr. K. Thanu Pillai, Whole Time Director

of the company to Rs. 2, 75,000/- with effect from 1st

April, 2011 until the expiry of his present term of office.










14. Resignation by Mr. U. Jayakodi, Wholetime Director



Resolution:

“RESOLVED that the resignation of Mr. U. Jayakodi as

Director and Wholetime Director, as approved by the

Board of Directors at its meeting held on September 16,

2011 be and is hereby ratified.”

8. Appointment of Mr. B. Kameswara Rao as Director:



Resolution:

“RESOLVED that Mr. B. Kameswara Rao, who was










Company.”

9. Reappointment of Mr. B. Seenaiah as Managing

Director:



Resolution:





ratified, reappointing Mr. B. Seenaiah as Managing

Director of the Company for a period of 3 (three) years

with effect from May 1, 2011 at the following remuneration





Salary: Rs. 10,00,000/- per month









Club Fees:






premium on which shall not exceed Rs. 15, 000/-







10. Reappointment of Mr. T. Dayakar as Whole Time

Director:



Resolution:





ratified, reappointing Mr. T. Dayakar as Wholetime

Director of the Company for a period of 1 (one) year with

effect from April 1, 2011 at the following remuneration





Salary: Rs. 3, 50,000/- per month









Club Fees:








premium on which shall not exceed Rs.15,000/-







Other Benefits:

l Reimbursement of actual expenses incurred on Gas,

Electricity, Water and furnishings not exceeding 10%

of the salary per month.

l Reimbursement of entertainment expenses actually

and properly incurred for the business of the

Company.

11. Increasing the remuneration of Mr. T. Dayakar, Whole

Time Director:



Resolution:





remuneration of Mr. T. Dayakar, Whole Time Director of

the company to Rs. 4,00,000/- with effect from April 1,











12. Increasing the remuneration of Mr. U. Jayakodi, Whole

Time Director:



Resolution:





remuneration of Mr. U. Jayakodi, Whole Time Director of

the company to Rs. 4,00,000/- with effect from 1st April,


“RESOLVED FURTHER that the other terms and









13. Increasing the remuneration of Mr. K. Thanu Pillai,

Whole Time Director:



Resolution:





remuneration of Mr. K. Thanu Pillai, Whole Time Director

of the company to Rs. 2, 75,000/- with effect from 1st

April, 2011 until the expiry of his present term of office.










14. Resignation by Mr. U. Jayakodi, Wholetime Director



Resolution:

“RESOLVED that the resignation of Mr. U. Jayakodi as




Amount (Rs.) Board Resolution DateNature of Transaction

Corporate Mokama – To guarantee the loanGuarantee Munger sanctioned by a

Highway Limited consortium of bankersto the Subject Company

Corporate Simhapuri To guarantee the loan 2040,00,00,000 September 8, 2010Guarantee Expressway Limited sanctioned by a

consortium of bankersto the Subject Company

Corporate North Bihar To guarantee the loan 525,00,00,000 November 29, 2010Guarantee Highway Ltd. sanctioned by a


TOTAL 2920,00,00,000

355,00,00,000 September 8, 2010

PurposeSubject Company

15. Resignation by Mr. T. Dayakar, Wholetime Director



Resolution:

“RESOLVED that the resignation of Mr. T. Dayakar as




16. Ratification of Corporate Guarantees given by the

Board:



Resolution:

“RESOLVED that the ratification of the members of the

Company be and is hereby accorded to the Board of

Directors for the following corporate guarantees, though

exempted under section 372A (8), being approved by

the Board due to the exceptional circumstances, which

prevented the Company from obtaining previous

authorization by a special resolution passed in a general

meeting for giving such guarantees:

17. Authority for providing Corporate Guarantee or

Security:



Resolution:

“RESOLVED that in supersession of the Special

Resolution passed by the members of the Company at

the Annual General Meeting held on September 30, 2008

and further pursuant to the provisions of Section 372A of

the Companies Act, 1956, the Board of Directors of the

Company be and is hereby authorized to

i. acquire, by way of subscription, purchase or

otherwise the securities of, and/or

ii. give any guarantee or provide any security in

connection with credit facilities sanctioned by a

bank(s) or financial institution(s) (referred as

‘Lenders’) or a consortium of such Lenders to a body

corporate promoted or co-promoted in joint venture

with another Partner, by the Company or by its Wholly

Owned Subsidiary, to undertake and execute any

Infrastructure Project on BOT (Built – Operate –

Transfer) basis, upto an aggregate limit of Rs. 5000




MumbaiSeptember 16, 2011

By order of the BoardBSCPL Infrastructure Limited

B.S. BhaskarDy. V.P. & Company Secretary

NOTES

1. A member entitled to attend and vote at the Thirteenth

Annual General Meeting is entitled to appoint a proxy to

attend and vote on a poll instead of him and the proxy

need not be a member of the company. Proxies in order

to be effective must be received by the Company not less

than 48 hours before the commencement of the Annual

General Meeting.

2. An Explanatory Statement pursuant to Section 173 (2) of

the Companies Act, 1956 relating to the Special Business

is annexed herewith.

3. The Register of Members and Share Transfer Books shall

remain closed on September 21, 2011.

4. Members are requested to intimate the Company about

changes, if any, in their bank mandate, Depository

Participant particulars, correspondence address and

authorized official.

Crores (Rupees Five Thousand Crores only),

outstanding at any time on such terms and

conditions as the Board of Directors may think fit,

provided that such acquisition, subscription, giving

of such guarantee or providing of such security is in

the opinion of the Board of Directors made only for

fulfilling a pre-condition of the Lenders while

sanctioning the credit facilities.”

18. Authority for payment of commission out of profits to

directors:



Resolution:

“RESOLVED THAT pursuant to the provisions of

Section 198, 309, 310 and other applicable provisions,

if any, of the Companies Act, 1956 (hereinafter referred

to as ‘the Act’, which term shall include any statutory

modification or reenactment thereof, for the time being

in force) and subject to requisite consents, approvals,

permissions, if any, from the Government or statutory

authority(ies), the payment of commission of a sum not

exceeding one percent per annum of the net profits of

the Company computed in the manner referred to in

Section 198, 349 and 350 of the Act, in addition to the

fees for attending the meetings of the Board of Directors

or Committees thereof, in respect of each financial year

of the Company, or part thereof, over a period of five

years commencing from April 1, 2011, to the Director(s)

of the Company (other than Managing and Wholetime

Director(s) or some/any of them including Non-resident

Director(s), if any, in such amount(s) or proportions and

in such manner as may be decided by the Board of

Directors, in its absolute discretion, which each such

Director may be entitled to receive, be and is hereby

approved.”

RESOLVED FURTHER THAT the Board be and is hereby

authorized to modify, amend, revise, alter and substitute

in any manner in its absolute discretion including the

liberty and authority to decide the mode, manner and

time of payment whether in Indian or foreign currency

(subject to such restriction on remittances of foreign

currency as may be applicable and for the time being in

force) of such commission including the authority to do

all such acts, deeds and things, in its absolute discretion,

as it may consider necessary expedient or desirable, for

giving effect to the resolution or otherwise considered by

the Board in the best interests of the Company.”

Amount (Rs.) Board Resolution DateNature of Transaction

Corporate Mokama – To guarantee the loanGuarantee Munger sanctioned by a

Highway Limited consortium of bankersto the Subject Company

Corporate Simhapuri To guarantee the loan 2040,00,00,000 September 8, 2010Guarantee Expressway Limited sanctioned by a


Corporate North Bihar To guarantee the loan 525,00,00,000 November 29, 2010Guarantee Highway Ltd. sanctioned by a


TOTAL 2920,00,00,000

355,00,00,000 September 8, 2010

PurposeSubject Company

15. Resignation by Mr. T. Dayakar, Wholetime Director



Resolution:

“RESOLVED that the resignation of Mr. T. Dayakar as




16. Ratification of Corporate Guarantees given by the

Board:



Resolution:

“RESOLVED that the ratification of the members of the

Company be and is hereby accorded to the Board of

Directors for the following corporate guarantees, though

exempted under section 372A (8), being approved by

the Board due to the exceptional circumstances, which

prevented the Company from obtaining previous

authorization by a special resolution passed in a general

meeting for giving such guarantees:

17. Authority for providing Corporate Guarantee or

Security:



Resolution:

“RESOLVED that in supersession of the Special

Resolution passed by the members of the Company at

the Annual General Meeting held on September 30, 2008

and further pursuant to the provisions of Section 372A of

the Companies Act, 1956, the Board of Directors of the

Company be and is hereby authorized to

i. acquire, by way of subscription, purchase or

otherwise the securities of, and/or

ii. give any guarantee or provide any security in

connection with credit facilities sanctioned by a

bank(s) or financial institution(s) (referred as

‘Lenders’) or a consortium of such Lenders to a body

corporate promoted or co-promoted in joint venture

with another Partner, by the Company or by its Wholly

Owned Subsidiary, to undertake and execute any

Infrastructure Project on BOT (Built – Operate –

Transfer) basis, upto an aggregate limit of Rs. 5000







NOTES

1. A member entitled to attend and vote at the Thirteenth

Annual General Meeting is entitled to appoint a proxy to

attend and vote on a poll instead of him and the proxy

need not be a member of the company. Proxies in order

to be effective must be received by the Company not less

than 48 hours before the commencement of the Annual

General Meeting.

2. An Explanatory Statement pursuant to Section 173 (2) of

the Companies Act, 1956 relating to the Special Business

is annexed herewith.

3. The Register of Members and Share Transfer Books shall

remain closed on September 21, 2011.

4. Members are requested to intimate the Company about

changes, if any, in their bank mandate, Depository

Participant particulars, correspondence address and

authorized official.

Crores (Rupees Five Thousand Crores only),

outstanding at any time on such terms and

conditions as the Board of Directors may think fit,

provided that such acquisition, subscription, giving

of such guarantee or providing of such security is in

the opinion of the Board of Directors made only for

fulfilling a pre-condition of the Lenders while

sanctioning the credit facilities.”

18. Authority for payment of commission out of profits to

directors:



Resolution:

“RESOLVED THAT pursuant to the provisions of

Section 198, 309, 310 and other applicable provisions,

if any, of the Companies Act, 1956 (hereinafter referred

to as ‘the Act’, which term shall include any statutory

modification or reenactment thereof, for the time being

in force) and subject to requisite consents, approvals,

permissions, if any, from the Government or statutory

authority(ies), the payment of commission of a sum not

exceeding one percent per annum of the net profits of

the Company computed in the manner referred to in

Section 198, 349 and 350 of the Act, in addition to the

fees for attending the meetings of the Board of Directors

or Committees thereof, in respect of each financial year

of the Company, or part thereof, over a period of five

years commencing from April 1, 2011, to the Director(s)

of the Company (other than Managing and Wholetime

Director(s) or some/any of them including Non-resident

Director(s), if any, in such amount(s) or proportions and

in such manner as may be decided by the Board of

Directors, in its absolute discretion, which each such

Director may be entitled to receive, be and is hereby

approved.”

RESOLVED FURTHER THAT the Board be and is hereby

authorized to modify, amend, revise, alter and substitute

in any manner in its absolute discretion including the

liberty and authority to decide the mode, manner and

time of payment whether in Indian or foreign currency

(subject to such restriction on remittances of foreign

currency as may be applicable and for the time being in

force) of such commission including the authority to do

all such acts, deeds and things, in its absolute discretion,

as it may consider necessary expedient or desirable, for

giving effect to the resolution or otherwise considered by

the Board in the best interests of the Company.”

explanatory STATEMENT[Pursuant to Section 173(2) of the Companies Act, 1956]

Item No.4: Appointment of Mr. Murali Krishna as Director:

Mr. Murali Krishna was appointed on the Board as an

Additional Director at its Meeting on 16th day of September

2011. He is an Independent Director as per the provisions of

Clause 49 of the Listing Agreement. His brief Profile is

attached to this Notice as Annexure.

None of the Directors, except Mr. Murali Krishna, is interested

or concerned in the proposed resolution.

Your directors recommend the resolution set out in Item No.

4, for the approval of the Members.

Item No.5: Appointment of Mr. Ashoke Joshi as Director:

Mr. C. V. Ashoke Joshi was appointed on the Board as an





None of the Directors, except Mr. Ashoke Joshi, is interested




Item No.6: Appointment of Mr. Amitabha Guha as Director:

Mr. Amitabha Guha was appointed on the Board as an





None of the Directors, except Mr. Amitabha Guha, is

interested or concerned in the proposed resolution.

Your directors recommend the resolution set out in Item No. 6,

for the approval of the Members.

Item No.7: Appointment of Mr. Man Mohan Agrawal as

Director:

Mr. Man Mohan Agrawal was appointed on the Board as an





None of the Directors, except Mr. Man Mohan Agrawal is




Item No.8: Appointment of Mr. B. Kameswara Rao as

Director:

Mr. B. Kameswara Rao was appointed on the Board as an





None of the Directors, except Mr. B. Kameswara Rao is




Item No.9: Reappointment of Mr. B. Seenaiah as Managing

Director

Mr. Bollineni Seenaiah was appointed by the Board of

Directors as Managing Director for a term of three years with

effect from May 1, 2008, which was subsequently approved

by the members at the General Meeting, held on September

30, 2008. His term of three years has expired on April 30,

2011.

The Board of Directors at its meeting held on March 28, 2011

reappointed Mr. Seenaiah as Managing Director of the

Company for a further period of three years with effect from

May 1, 2011 at the same remuneration and allowances as

provided in the resolution.

None of the Directors, except Mr. Bollineni Seenaiah and Mr.

Bollineni Krishnaiah, is interested or concerned in the

proposed resolution.



Item No.10: Reappointment of Talluru Dayakar as

Wholetime Director

Mr. Dayakar has been on the Board as Wholetime Director

since April 1, 1999. He was appointed on April 1, 2009 for a

term of two years, which would expire on March 31, 2011.

Keeping in view his significant contribution to the execution of

various projects of the Company, the Board, at its meeting

held on March 28, 2011, has reappointed him as a Wholetime

Director w.e.f April 1, 2011 for a term of one year, at such

remuneration as mentioned in the resolution, subject to the

approval of the Members of the Company.

None of the Directors, except Mr. Talluru Dayakar, is interested





10 for the approval of the Members.

Item No.11: Increase in remuneration of Mr. T. Dayakar,

Wholetime Director

Mr. T. Dayakar is one of the Promoter Directors of the

Company and has been associated with the Company right

from its inception. He is a graduate in commerce and has

over 15 years of experience in the Construction Industry. In

view of the improved performance of the Company in terms

of revenues, PAT, Order Book position, growth prospects and

the proposed IPO during the next year, and having

considered his contribution in the timely execution of

projects at different sites, the Board of Directors at their

meeting held on June 3, 2011 accorded their approval for

enhancing the monthly remuneration of Sri T. Dayakar to

` 4,00,000/- w.e.f April 1, 2011 until the expiry of his present

term of office, subject to the approval of the Members at the

annual general meeting. The other terms and conditions of

his appointment as Wholetime Director will remain

unchanged.

None of the directors, except Sri T. Dayakar, is in any way

interested or concerned in the resolution.

Your Directors recommend the resolution set out under Item

No. 11 for the approval of Members.

Item No.12: Increase in remuneration of Mr. U. Jayakodi,

Wholetime Director

Mr. Jayakodi, a Civil Engineer by qualification, has put up a

rich experience in roads construction throughout his career.

He has been associated with the Company since 1992; his

major contribution being in the areas of joint venture

formation, bidding and technical aspects of project

execution.

In view of the improved performance of the Company, the

proposed IPO during the next year, and having regard to his

contribution to growth of the Company, the Board of

Directors, at its meeting held on June 3, 2011, enhanced his

remuneration to Rs. 4,00,000/- with effect from April 1, 2011,

until the expiry of his present term of office, subject to the

approval of the Members at the annual general meeting. The

other terms and conditions of his appointment as Wholetime

Director remain unaltered.

None of the Directors, except Mr. U. Jayakodi, is in any way




Item No. 13: Increase in remuneration of Mr. K. Thanu Pillai,

Wholetime Director

Mr. K. Thanu Pillai, Director joined the Company in 2002 after

putting in four decades of experience in the Banking Sector.

He has been instrumental in enhancing the credit limits of the

Company. Besides overseeing the financial operations of the

Company, Mr. Pillai actively participates in all major non-

technical deals / negotiations and activities of the Company

and is responsible in finalizing several crucial agreements.

In consideration of the improved performance of the

Company in terms of revenues, PAT, Order Book position,

growth prospects and the proposed IPO during the next year,

and his significant contribution in the financial area, it is

proposed to revise his salary to Rs.2,75,000/- p.m. with effect

from April 1, 2011.

None of the Directors, except Mr. K. Thanu Pillai, is in any way



13, for the approval of Members.

Item No.14: Resignation by U. Jayakodi as director and

Wholetime Director

The Company is preparing to file the DRHP based on the

audited accounts of March 31, 2011. In order to comply with

the requirements of Clause 49 of the Listing Agreement

before filing the DRHP, the Board has been reconstituted by

inducting five Independent Directors. Mr. U. Jayakodi has

offered himself to resign to accommodate the independent

directors.

Item No.15: Resignation by T. Dayakar as director and

Wholetime Director





inducting five Independent Directors. Mr. T. Dayakar has


directors.

Item No.16: Ratification of Corporate Guarantees given by

the Board

The Members, at their AGM held on September 30, 2008

empowered the Board of Directors to give guarantee and

provide security upto an aggregate value of not exceeding

explanatory STATEMENT[Pursuant to Section 173(2) of the Companies Act, 1956]

Item No.4: Appointment of Mr. Murali Krishna as Director:

Mr. Murali Krishna was appointed on the Board as an





None of the Directors, except Mr. Murali Krishna, is interested




Item No.5: Appointment of Mr. Ashoke Joshi as Director:

Mr. C. V. Ashoke Joshi was appointed on the Board as an





None of the Directors, except Mr. Ashoke Joshi, is interested




Item No.6: Appointment of Mr. Amitabha Guha as Director:

Mr. Amitabha Guha was appointed on the Board as an





None of the Directors, except Mr. Amitabha Guha, is




Item No.7: Appointment of Mr. Man Mohan Agrawal as

Director:

Mr. Man Mohan Agrawal was appointed on the Board as an





None of the Directors, except Mr. Man Mohan Agrawal is




Item No.8: Appointment of Mr. B. Kameswara Rao as

Director:

Mr. B. Kameswara Rao was appointed on the Board as an





None of the Directors, except Mr. B. Kameswara Rao is




Item No.9: Reappointment of Mr. B. Seenaiah as Managing

Director

Mr. Bollineni Seenaiah was appointed by the Board of

Directors as Managing Director for a term of three years with

effect from May 1, 2008, which was subsequently approved

by the members at the General Meeting, held on September

30, 2008. His term of three years has expired on April 30,

2011.

The Board of Directors at its meeting held on March 28, 2011

reappointed Mr. Seenaiah as Managing Director of the

Company for a further period of three years with effect from

May 1, 2011 at the same remuneration and allowances as

provided in the resolution.

None of the Directors, except Mr. Bollineni Seenaiah and Mr.

Bollineni Krishnaiah, is interested or concerned in the

proposed resolution.



Item No.10: Reappointment of Talluru Dayakar as

Wholetime Director

Mr. Dayakar has been on the Board as Wholetime Director

since April 1, 1999. He was appointed on April 1, 2009 for a

term of two years, which would expire on March 31, 2011.

Keeping in view his significant contribution to the execution of

various projects of the Company, the Board, at its meeting

held on March 28, 2011, has reappointed him as a Wholetime

Director w.e.f April 1, 2011 for a term of one year, at such

remuneration as mentioned in the resolution, subject to the

approval of the Members of the Company.

None of the Directors, except Mr. Talluru Dayakar, is interested





10 for the approval of the Members.

Item No.11: Increase in remuneration of Mr. T. Dayakar,

Wholetime Director

Mr. T. Dayakar is one of the Promoter Directors of the

Company and has been associated with the Company right

from its inception. He is a graduate in commerce and has

over 15 years of experience in the Construction Industry. In

view of the improved performance of the Company in terms

of revenues, PAT, Order Book position, growth prospects and

the proposed IPO during the next year, and having

considered his contribution in the timely execution of

projects at different sites, the Board of Directors at their

meeting held on June 3, 2011 accorded their approval for

enhancing the monthly remuneration of Sri T. Dayakar to

` 4,00,000/- w.e.f April 1, 2011 until the expiry of his present

term of office, subject to the approval of the Members at the

annual general meeting. The other terms and conditions of

his appointment as Wholetime Director will remain

unchanged.

None of the directors, except Sri T. Dayakar, is in any way

interested or concerned in the resolution.

Your Directors recommend the resolution set out under Item

No. 11 for the approval of Members.

Item No.12: Increase in remuneration of Mr. U. Jayakodi,

Wholetime Director

Mr. Jayakodi, a Civil Engineer by qualification, has put up a

rich experience in roads construction throughout his career.

He has been associated with the Company since 1992; his

major contribution being in the areas of joint venture

formation, bidding and technical aspects of project

execution.

In view of the improved performance of the Company, the

proposed IPO during the next year, and having regard to his

contribution to growth of the Company, the Board of

Directors, at its meeting held on June 3, 2011, enhanced his

remuneration to Rs. 4,00,000/- with effect from April 1, 2011,

until the expiry of his present term of office, subject to the

approval of the Members at the annual general meeting. The

other terms and conditions of his appointment as Wholetime

Director remain unaltered.

None of the Directors, except Mr. U. Jayakodi, is in any way




Item No. 13: Increase in remuneration of Mr. K. Thanu Pillai,

Wholetime Director

Mr. K. Thanu Pillai, Director joined the Company in 2002 after

putting in four decades of experience in the Banking Sector.

He has been instrumental in enhancing the credit limits of the

Company. Besides overseeing the financial operations of the

Company, Mr. Pillai actively participates in all major non-

technical deals / negotiations and activities of the Company

and is responsible in finalizing several crucial agreements.

In consideration of the improved performance of the

Company in terms of revenues, PAT, Order Book position,

growth prospects and the proposed IPO during the next year,

and his significant contribution in the financial area, it is

proposed to revise his salary to Rs.2,75,000/- p.m. with effect

from April 1, 2011.

None of the Directors, except Mr. K. Thanu Pillai, is in any way




Item No.14: Resignation by U. Jayakodi as director and

Wholetime Director





inducting five Independent Directors. Mr. U. Jayakodi has


directors.

Item No.15: Resignation by T. Dayakar as director and

Wholetime Director





inducting five Independent Directors. Mr. T. Dayakar has


directors.

Item No.16: Ratification of Corporate Guarantees given by

the Board

The Members, at their AGM held on September 30, 2008

empowered the Board of Directors to give guarantee and

provide security upto an aggregate value of not exceeding

Rs.1000 crores in respect of credit facilities sanctioned by a

bank or financial institution or a consortium of such lenders to

a body corporate promoted or co-promoted in joint venture

with another Partner, by the Company or by its Wholly Owned

Subsidiary, to undertake and execute any Infrastructure

Project on BOT (Built – Operate – Transfer) basis.

However, during the FY 10-11, the Board has given

guarantee in respect of the loans availed by SPV companies

promoted either by itself or in association with JV Partners

aggregating to Rs.2920 Crores as tabulated in the

resolution.

As per the second proviso to sub-section (1) of Section 372A

of the Companies Act, 1956, your Board of Directors seek the

ratification of members for the above said investments

made, guarantees given and securities provided in

connection with the loans availed by the SPV Companies

promoted by the Company either by singly or in joint venture

with other partners, as the same is in excess of the approved

limit of Rs.1,000 Cr.

None of the Directors is in any way interested or concerned in

the proposed resolution.



Item No.17: Authority for providing Corporate Guarantee

or Security:

The Board of Directors is empowered, as per the provisions

of Section 372A of the Companies Act, 1956, to give

guarantee or provide security in connection with a loan made

up to:

a. 60% of the Company’s paid up capital and free

reserves (or)

b. 100% of the company’s free reserves, whichever is

more.

The Board is to be empowered by the Company to exceed

the limits, prescribing an upper limit upto which the loan,

guarantee or security may be approved in aggregate and

outstanding at any time.

The Members, at the their Annual General Meeting held on

September 30, 2008 empowered the Board to give

guarantee and provide security upto an aggregate value of

not exceeding Rs.1000 crores in respect of credit facilities

sanctioned by a bank or financial institution or a consortium

of such lenders to any body corporate promoted or co-

promoted in joint venture with another Partner, by the

Company or by its Wholly Owned Subsidiary, to undertake

and execute any Infrastructure Project on BOT (Built –

Operate – Transfer) basis.

As more BOT projects have been successfully awarded to

the Company and are being executed through SPV

companies, your company is required to provide corporate

guarantee or provide security by way of pledge of shares to

the lenders of the SPV company, it is becoming increasingly

necessary for the company to enhance its earlier limit of

Rs.1,000 crores. It is recommended that the Board may be

authorized upto Rs.5,000 crores.





Item No.18: Authority for payment of commission to

directors out of profits

In order to invite independent directors having good repute

and talent, your Board feels it appropriate to reward them

with reasonable compensation. Your Board suggests that a

commission as a percentage of net profits may be paid to

them. The legal provisions of the Companies Act, 1956

stipulate that the Board should be properly authorized by the

members to pay any remuneration to independent directors,

over and above the sitting fee. Hence, the approval of the

members is sought under this section.


the proposed resolution, except Messrs. P. Murali Krishna,

Ashoke Joshi, Amitabha Guha, Man Mohan Agrawal and B.

Kameswara Rao being Independent Directors on the Board.








Mr. Amitabha Guha was born on 10th November 1948. He

has done M.Sc and was ranked 2nd in the Merit List of the

University of Calcutta. He started his career in Banks in the

Year 1987. He was the Chief Manager (Personal

Administration) of State Bank of Saurashtra from July 1987 to

September 1988. Thereafter he has held various posts in

various banks in India. In May 2004, he took over as the

Managing Director of State Bank of Hyderabad and worked

there till May 2008, and finally on 27th May 2008, he took over

as Dy. Managing Director of State Bank in India, Inspection &

Management Audit Department who reports to the Audit

Committee of the Board (ACB) in Functional Matters. Within

the brief period of Incumbency, the system of Auditing was

realigned with the software platform the bank adopted. He is

the Member of the following Professional Institutes:

l Indian Banks Association (IBA).

l Personal Committee of IBA.

l Finance Committee of IBA.

l Indian Institute of Banking and Finance.

l Advisory board of ICFAI Business School, Hyderabad.

l Hyderabad Management Association.

l School of Management Studies, University of Hyderabad

Mr. Ashoke Joshi was born on 5th September 1943. He

commissioned as an officer in the Indian Army in 1964 and

served there for about Six Years. In 1969 he qualified the

Competitive Examination for the Indian Administrative

Service. He has held various posts in the State and the

Central Government of India. Some of the Posts held by him

in IAS cadre were:

l District Collector, Dharmapuri District.

l Chairman Madras Port.

l Deputy Chairman, JN Port, Mumbai.

l Joint Secretary (Ports) Ministry of Shipping and Ports.

l Chairman Bombay Trust Port.

l Home Secretary, Government of Tamil Nadu.

l Additional Secretary, Ministry of Shipping and Transport.

l Secretary, Ministry of Road Transport and Highways.

Since his retirement in 2003, he is heading the Srinivasan

Service Trust, which is a team of 127 Professionals who lives

and work from the Villages. The Trust believes in providing

Holistic and Sustainable Development to the rural folk. The

Trust has helped over 6,00,000 people to lead a financially

secured life with dignity.

Mr. B. Kameswara Rao, aged about 79 years has worked in a

Central Government Department for about two and a half

decades. Later on, he moved into Private Sector. He worked

as Managing Director of an Infrastructure Company, which

was pioneer in real estate development and commercial /

residential buildings in the City of Hyderabad. He also

worked as Managing Director of a reputed hospital in

Hyderabad. Presently, he is on the Board of Krishna Institute

of Medical Sciences Ltd.

Mr. Man Mohan Agrawal was born on 4th August 1950. He

has done his B.E, C.A.I.I.B part – 1. He has been working in

the banking sector for over three Decades and is having

immense experience and has held various posts in the banks.

In the year 1973 he joined the State Bank of Bikaner and

Jaipur and continued to work there for 21 years until he

resigned in 1994 as Chief Manger Credit. Thereafter in the

year 1994 he joined the Axis Bank and has worked there for 16

years and retired in the year 2010, at the time of his retirement,

he was the Deputy Managing Director of the Axis Bank.

Mr. Murali Krishna is a Fellow Member of the Institute of

Chartered Accountants of India, an Associate Member of the

Institute of Company Secretaries of India. Mr. Krishna is also a

Member of the Bar Council of the State of Andhra Pradesh.

He is in the profession for around four decades. During this

period he has held various positions in the Corporates. He

started his career in Brahmayya & Co. Chartered Accountants

and worked there from 1971 to 1974. Thereafter, in 1975 he

occupied the post of a Senior Executive in Smithkline

Beecham Consumer Brands Ltd., (Presently GSK Ltd.) and

worked there for 6 years and in 1982 he started Practicing as a

Chartered Accountant in Hyderabad and continued till 1995.

Since April 1995 he is practicing as an Advocate in the High

Court of Andhra Pradesh. He has appeared and argued

several matters on Tax and Corporate Laws in the Tax Tribunal,

High Court and the Supreme Court of India.

Brief Profiles of Independent Directors

Rs.1000 crores in respect of credit facilities sanctioned by a

bank or financial institution or a consortium of such lenders to

a body corporate promoted or co-promoted in joint venture

with another Partner, by the Company or by its Wholly Owned

Subsidiary, to undertake and execute any Infrastructure

Project on BOT (Built – Operate – Transfer) basis.

However, during the FY 10-11, the Board has given

guarantee in respect of the loans availed by SPV companies

promoted either by itself or in association with JV Partners

aggregating to Rs.2920 Crores as tabulated in the

resolution.

As per the second proviso to sub-section (1) of Section 372A

of the Companies Act, 1956, your Board of Directors seek the

ratification of members for the above said investments

made, guarantees given and securities provided in

connection with the loans availed by the SPV Companies

promoted by the Company either by singly or in joint venture

with other partners, as the same is in excess of the approved

limit of Rs.1,000 Cr.





Item No.17: Authority for providing Corporate Guarantee

or Security:

The Board of Directors is empowered, as per the provisions

of Section 372A of the Companies Act, 1956, to give

guarantee or provide security in connection with a loan made

up to:

a. 60% of the Company’s paid up capital and free

reserves (or)

b. 100% of the company’s free reserves, whichever is

more.

The Board is to be empowered by the Company to exceed

the limits, prescribing an upper limit upto which the loan,

guarantee or security may be approved in aggregate and

outstanding at any time.

The Members, at the their Annual General Meeting held on

September 30, 2008 empowered the Board to give

guarantee and provide security upto an aggregate value of

not exceeding Rs.1000 crores in respect of credit facilities

sanctioned by a bank or financial institution or a consortium

of such lenders to any body corporate promoted or co-

promoted in joint venture with another Partner, by the

Company or by its Wholly Owned Subsidiary, to undertake

and execute any Infrastructure Project on BOT (Built –

Operate – Transfer) basis.

As more BOT projects have been successfully awarded to

the Company and are being executed through SPV

companies, your company is required to provide corporate

guarantee or provide security by way of pledge of shares to

the lenders of the SPV company, it is becoming increasingly

necessary for the company to enhance its earlier limit of

Rs.1,000 crores. It is recommended that the Board may be

authorized upto Rs.5,000 crores.





Item No.18: Authority for payment of commission to

directors out of profits

In order to invite independent directors having good repute

and talent, your Board feels it appropriate to reward them

with reasonable compensation. Your Board suggests that a

commission as a percentage of net profits may be paid to

them. The legal provisions of the Companies Act, 1956

stipulate that the Board should be properly authorized by the

members to pay any remuneration to independent directors,

over and above the sitting fee. Hence, the approval of the

members is sought under this section.


the proposed resolution, except Messrs. P. Murali Krishna,

Ashoke Joshi, Amitabha Guha, Man Mohan Agrawal and B.

Kameswara Rao being Independent Directors on the Board.








Mr. Amitabha Guha was born on 10th November 1948. He

has done M.Sc and was ranked 2nd in the Merit List of the

University of Calcutta. He started his career in Banks in the

Year 1987. He was the Chief Manager (Personal

Administration) of State Bank of Saurashtra from July 1987 to

September 1988. Thereafter he has held various posts in

various banks in India. In May 2004, he took over as the

Managing Director of State Bank of Hyderabad and worked

there till May 2008, and finally on 27th May 2008, he took over

as Dy. Managing Director of State Bank in India, Inspection &

Management Audit Department who reports to the Audit

Committee of the Board (ACB) in Functional Matters. Within

the brief period of Incumbency, the system of Auditing was

realigned with the software platform the bank adopted. He is

the Member of the following Professional Institutes:

l Indian Banks Association (IBA).

l Personal Committee of IBA.

l Finance Committee of IBA.

l Indian Institute of Banking and Finance.

l Advisory board of ICFAI Business School, Hyderabad.

l Hyderabad Management Association.

l School of Management Studies, University of Hyderabad

Mr. Ashoke Joshi was born on 5th September 1943. He

commissioned as an officer in the Indian Army in 1964 and

served there for about Six Years. In 1969 he qualified the

Competitive Examination for the Indian Administrative

Service. He has held various posts in the State and the

Central Government of India. Some of the Posts held by him

in IAS cadre were:

l District Collector, Dharmapuri District.

l Chairman Madras Port.

l Deputy Chairman, JN Port, Mumbai.

l Joint Secretary (Ports) Ministry of Shipping and Ports.

l Chairman Bombay Trust Port.

l Home Secretary, Government of Tamil Nadu.

l Additional Secretary, Ministry of Shipping and Transport.

l Secretary, Ministry of Road Transport and Highways.

Since his retirement in 2003, he is heading the Srinivasan

Service Trust, which is a team of 127 Professionals who lives

and work from the Villages. The Trust believes in providing

Holistic and Sustainable Development to the rural folk. The

Trust has helped over 6,00,000 people to lead a financially

secured life with dignity.

Mr. B. Kameswara Rao, aged about 79 years has worked in a

Central Government Department for about two and a half

decades. Later on, he moved into Private Sector. He worked

as Managing Director of an Infrastructure Company, which

was pioneer in real estate development and commercial /

residential buildings in the City of Hyderabad. He also

worked as Managing Director of a reputed hospital in

Hyderabad. Presently, he is on the Board of Krishna Institute

of Medical Sciences Ltd.

Mr. Man Mohan Agrawal was born on 4th August 1950. He

has done his B.E, C.A.I.I.B part – 1. He has been working in

the banking sector for over three Decades and is having

immense experience and has held various posts in the banks.

In the year 1973 he joined the State Bank of Bikaner and

Jaipur and continued to work there for 21 years until he

resigned in 1994 as Chief Manger Credit. Thereafter in the

year 1994 he joined the Axis Bank and has worked there for 16

years and retired in the year 2010, at the time of his retirement,

he was the Deputy Managing Director of the Axis Bank.

Mr. Murali Krishna is a Fellow Member of the Institute of

Chartered Accountants of India, an Associate Member of the

Institute of Company Secretaries of India. Mr. Krishna is also a

Member of the Bar Council of the State of Andhra Pradesh.

He is in the profession for around four decades. During this

period he has held various positions in the Corporates. He

started his career in Brahmayya & Co. Chartered Accountants

and worked there from 1971 to 1974. Thereafter, in 1975 he

occupied the post of a Senior Executive in Smithkline

Beecham Consumer Brands Ltd., (Presently GSK Ltd.) and

worked there for 6 years and in 1982 he started Practicing as a

Chartered Accountant in Hyderabad and continued till 1995.

Since April 1995 he is practicing as an Advocate in the High

Court of Andhra Pradesh. He has appeared and argued

several matters on Tax and Corporate Laws in the Tax Tribunal,

High Court and the Supreme Court of India.

Brief Profiles of Independent Directors


Similarly, the company has the following BOT Projects under execution through various SPV’s

No.TPC Value(Rs. in Mi.)

1

2 Mokama Munger Highway Ltd. 4440 68.57 50 Annuity 14-May-13

3 North Bihar Highways Limited 6560 86.20 50 Annuity 26-Nov-13

4 Simhapuri Expressway Ltd. 25500 183.75 49 Toll 28-Feb-14

5 Patna-BakhtiyarpurTollway Limited 9080 50.65 50 Toll 30-Mar-14

BSCPL Godhra Tollways Ltd. 7500 86.60 100 Toll 28-Aug-13

Concessionaire Company TypeRoad

Length(KM)

BSCPLShare

Scheduled Dateof Completion

Recently, the company has emerged as a successful bidder in a BOT Project valued at Rs.10,500 Millions, titled “4 laning of Orrissa Border - Aurang section from Km 88/000 to Km 239/000 of NH-6 in the State of Chhattisgarh to be executed as BOT (Toll) on DBFOT pattern under NHDP Phase-IV”

With these BOT Projects on hand, a consistent revenue flow in terms of the Project execution as EPC Contractor, for the next three years is assured, notwithstanding the toll, which will be collected by the SPV Companies for the next fifteen to twenty years.

Real Estate Projects

The ‘Bollineni Hillside’ residential houses project at Chennai on a 92 acre land has progressed very well. The Phase-I of the Project has 1,314 dwelling units of different sizes and specifications with a total built up area of 2.20 million sft. 821 Dwelling Units (out of total 1314 Units) have already been sold (as on July 31, 2011) and the Company has commenced handing over of possession for occupation. The Work on Phase-II, consisting of high-rise apartments, with a built up area of approximately 5.70 million sft. will commence during next financial year.

The Company’s ‘Arena Apartments’ Project in Dubai is still under abeyance due to the continued recession in real estate space there. Efforts are being made by the Company to complete the Project at the earliest.

Irrigation Projects

The Company has four Irrigation Projects in the State of Andhra Pradesh. The value of unfinished work is about Rs.310 crores. Lot of procedural delays, such as finalizing structural designs, legal and environmental clearances, socio-political factors, bill processing, unfavorable weather conditions etc. will disrupt and prolong the execution of construction work. However, fortunately, the works under execution by us are very important and prestigious Irrigation Projects to the Government of Andhra Pradesh; and hence, we envisage good funds allocation.

Initial Public Offering

The Company is planning to issue equity shares to public through IPO. The issue size is being worked out in consultation with Merchant Bankers. Relevant resolutions seeking the approval of members to facilitate the IPO are included in the Notice convening the Annual General Meeting for this year. The Directors solicit the support of the members to complete the process smoothly and list the Company on a Stock Exchange.

The purpose and objects of the Issue are broadly:

l To invest in equity of subsidiary and associate/joint venture companies executing BOT Projects

l To pre-pay a portion of debt availed by the Company and

l To meet general corporate expenses

Directors

Mr. B. Krishnaiah, Chairman retires by rotation at the ensuing thirteenth annual general meeting and being eligible, offers himself for reappointment. On his reappointment, he will continue as Executive Chairman for the rest of his tenure.

The Board has inducted five independent directors as additional directors on to the Board in compliance with the Corporate Governance provisions of SEBI and Stock Exchanges. The Independent Directors are: Messrs Amitabha Guha, Ashoke Joshi, B. Kameswara Rao, Man Mohan Agrawal and Murali Krishna. Brief profiles of the directors are given as annexure to the Notice. Resolutions proposing their appointment as directors of the Company are included in the notice convening the AGM, for the approval of the members.

Auditors

M/s. Walker, Chandiok & Co. (Member Firm of Grant Thornton International), Chartered Accountants, Hyderabad and M/s. Anjaneyulu & Co., Chartered Accountants, Hyderabad, the retiring Joint Statutory Auditors of the Company hold office until the conclusion of the twelfth annual general meeting and being eligible, offer themselves for reappointment.



DIRECTORS' REPORT

Dear Shareholders,

Your Board of Directors is pleased to present the Thirteenth Annual Report along with the audited annual accounts for the Financial Year ended March 31, 2011.

Consolidated Financial summary for the year 2010-11 and 2009-10 comparatives (Rs. in Cr.)

2010-11 2009-10Particulars

1 Gross Billing 1078.62 1541.51

2 Gross Income 1110.59 1559.63

3 Profit before interest and depreciation 291.36 321.39

a. Interest and Finance Cost 144.80 125.99

b. Depreciation 64.83 62.28

4. Profit before tax 81.73 133.12

a. Prior period items (2.50) (2.71)

b. Provision for taxation 32.55 41.04

c. Provision for deferred taxation (1.55) 14.05

5. Profit after tax 53.23 80.74

6 Balance brought forward 262.61 181.87

7 Profit available for appropriations 315.84 262.61

8 Balance carried to next year 315.84 262.61

9 Paid up Equity Capital 24.86 24.86

10 Accumulated Reserves & Surplus 657.22 610.09

11 EPS (in Rs.) 21.42 32.48

No.

Performance

The revenue for the FY 10-11 was lower by Rs.462.89 Cr.

(30.03%) as compared to the previous FY 09-10. Though the

Company could bag good number of EPC/BOT Projects

during the year under review, with a comfortable order book

position of Rs. 5,778 Cr. (as on July 31, 2011), a substantial

portion of it could not be converted into revenues due to

delay in handing over of land by NHAI and delay in receiving

the Appointed Dates and thereby leading to a delay in

commencing the work. In spite of having achieved the

required financial closure by the SPV Companies executing

the BOT Projects, the work could not be started by the

company, as an EPC Contractor for the said reasons. As a

result, the company incurred revenue expenditure on

running the camps at sites, mobilizing men and machines.

These expenses also impacted the EBIDTA margins.

However, the Board is optimistic that from the third quarter of

the current FY 11-12, the revenue flows would improve as the

construction work at three BOT Projects has commenced.

Road Projects

BSCPL is executing 10 number of road projects spanning an

aggregate line KM of 623.01 (BSCPL Share) with an aggregate

value of Rs. 38778.84 Million (the value of unfinished road works

of BSCPL). The Projects are either directly from NHAI or EPC

contracts awarded by SPV companies executing the BOT

Projects or through JVs. The company, being in existence for

over three decades, is equipped with well-trained work force

and latest technology machines, and enjoys the comfort and

ease of executing the projects with good quality and within the

stipulated time schedules. The Company is continuously giving

thrust to business development and is bidding for more and

more projects. The execution capabilities of your company are

very well scalable to handle new projects upto its bidding

capacity. Hence, with the great importance and impetus given

by the Government to improve roads, BSCPL stands a fair

chance of capturing the new projects upto its maximum

eligibility, in spite of the tough competition among the many

players in the Industry.

BOT & Annuity Projects

The Board is happy to inform that the Kurali - Kiratpur Toll

Road, being the first BOT Project executed under the SPV,

has been completed and opened to toll collection. The

collection of toll is also very encouraging and as per

projections.


Similarly, the company has the following BOT Projects under execution through various SPV’s

No.TPC Value(Rs. in Mi.)

1

2 Mokama Munger Highway Ltd. 4440 68.57 50 Annuity 14-May-13

3 North Bihar Highways Limited 6560 86.20 50 Annuity 26-Nov-13

4 Simhapuri Expressway Ltd. 25500 183.75 49 Toll 28-Feb-14

5 Patna-BakhtiyarpurTollway Limited 9080 50.65 50 Toll 30-Mar-14

BSCPL Godhra Tollways Ltd. 7500 86.60 100 Toll 28-Aug-13

Concessionaire Company TypeRoad

Length(KM)

BSCPLShare

Scheduled Dateof Completion

Recently, the company has emerged as a successful bidder in a BOT Project valued at Rs.10,500 Millions, titled “4 laning of Orrissa Border - Aurang section from Km 88/000 to Km 239/000 of NH-6 in the State of Chhattisgarh to be executed as BOT (Toll) on DBFOT pattern under NHDP Phase-IV”

With these BOT Projects on hand, a consistent revenue flow in terms of the Project execution as EPC Contractor, for the next three years is assured, notwithstanding the toll, which will be collected by the SPV Companies for the next fifteen to twenty years.

Real Estate Projects

The ‘Bollineni Hillside’ residential houses project at Chennai on a 92 acre land has progressed very well. The Phase-I of the Project has 1,314 dwelling units of different sizes and specifications with a total built up area of 2.20 million sft. 821 Dwelling Units (out of total 1314 Units) have already been sold (as on July 31, 2011) and the Company has commenced handing over of possession for occupation. The Work on Phase-II, consisting of high-rise apartments, with a built up area of approximately 5.70 million sft. will commence during next financial year.

The Company’s ‘Arena Apartments’ Project in Dubai is still under abeyance due to the continued recession in real estate space there. Efforts are being made by the Company to complete the Project at the earliest.

Irrigation Projects

The Company has four Irrigation Projects in the State of Andhra Pradesh. The value of unfinished work is about Rs.310 crores. Lot of procedural delays, such as finalizing structural designs, legal and environmental clearances, socio-political factors, bill processing, unfavorable weather conditions etc. will disrupt and prolong the execution of construction work. However, fortunately, the works under execution by us are very important and prestigious Irrigation Projects to the Government of Andhra Pradesh; and hence, we envisage good funds allocation.

Initial Public Offering

The Company is planning to issue equity shares to public through IPO. The issue size is being worked out in consultation with Merchant Bankers. Relevant resolutions seeking the approval of members to facilitate the IPO are included in the Notice convening the Annual General Meeting for this year. The Directors solicit the support of the members to complete the process smoothly and list the Company on a Stock Exchange.

The purpose and objects of the Issue are broadly:

l To invest in equity of subsidiary and associate/joint venture companies executing BOT Projects

l To pre-pay a portion of debt availed by the Company and

l To meet general corporate expenses

Directors

Mr. B. Krishnaiah, Chairman retires by rotation at the ensuing thirteenth annual general meeting and being eligible, offers himself for reappointment. On his reappointment, he will continue as Executive Chairman for the rest of his tenure.

The Board has inducted five independent directors as additional directors on to the Board in compliance with the Corporate Governance provisions of SEBI and Stock Exchanges. The Independent Directors are: Messrs Amitabha Guha, Ashoke Joshi, B. Kameswara Rao, Man Mohan Agrawal and Murali Krishna. Brief profiles of the directors are given as annexure to the Notice. Resolutions proposing their appointment as directors of the Company are included in the notice convening the AGM, for the approval of the members.

Auditors

M/s. Walker, Chandiok & Co. (Member Firm of Grant Thornton International), Chartered Accountants, Hyderabad and M/s. Anjaneyulu & Co., Chartered Accountants, Hyderabad, the retiring Joint Statutory Auditors of the Company hold office until the conclusion of the twelfth annual general meeting and being eligible, offer themselves for reappointment.



DIRECTORS' REPORT

Dear Shareholders,

Your Board of Directors is pleased to present the Thirteenth Annual Report along with the audited annual accounts for the Financial Year ended March 31, 2011.

Consolidated Financial summary for the year 2010-11 and 2009-10 comparatives (Rs. in Cr.)

2010-11 2009-10Particulars

1 Gross Billing 1078.62 1541.51

2 Gross Income 1110.59 1559.63

3 Profit before interest and depreciation 291.36 321.39

a. Interest and Finance Cost 144.80 125.99

b. Depreciation 64.83 62.28

4. Profit before tax 81.73 133.12

a. Prior period items (2.50) (2.71)

b. Provision for taxation 32.55 41.04

c. Provision for deferred taxation (1.55) 14.05

5. Profit after tax 53.23 80.74

6 Balance brought forward 262.61 181.87

7 Profit available for appropriations 315.84 262.61

8 Balance carried to next year 315.84 262.61

9 Paid up Equity Capital 24.86 24.86

10 Accumulated Reserves & Surplus 657.22 610.09

11 EPS (in Rs.) 21.42 32.48

No.

Performance

The revenue for the FY 10-11 was lower by Rs.462.89 Cr.

(30.03%) as compared to the previous FY 09-10. Though the

Company could bag good number of EPC/BOT Projects

during the year under review, with a comfortable order book

position of Rs. 5,778 Cr. (as on July 31, 2011), a substantial

portion of it could not be converted into revenues due to

delay in handing over of land by NHAI and delay in receiving

the Appointed Dates and thereby leading to a delay in

commencing the work. In spite of having achieved the

required financial closure by the SPV Companies executing

the BOT Projects, the work could not be started by the

company, as an EPC Contractor for the said reasons. As a

result, the company incurred revenue expenditure on

running the camps at sites, mobilizing men and machines.

These expenses also impacted the EBIDTA margins.

However, the Board is optimistic that from the third quarter of

the current FY 11-12, the revenue flows would improve as the

construction work at three BOT Projects has commenced.

Road Projects

BSCPL is executing 10 number of road projects spanning an

aggregate line KM of 623.01 (BSCPL Share) with an aggregate

value of Rs. 38778.84 Million (the value of unfinished road works

of BSCPL). The Projects are either directly from NHAI or EPC

contracts awarded by SPV companies executing the BOT

Projects or through JVs. The company, being in existence for

over three decades, is equipped with well-trained work force

and latest technology machines, and enjoys the comfort and

ease of executing the projects with good quality and within the

stipulated time schedules. The Company is continuously giving

thrust to business development and is bidding for more and

more projects. The execution capabilities of your company are

very well scalable to handle new projects upto its bidding

capacity. Hence, with the great importance and impetus given

by the Government to improve roads, BSCPL stands a fair

chance of capturing the new projects upto its maximum

eligibility, in spite of the tough competition among the many

players in the Industry.

BOT & Annuity Projects

The Board is happy to inform that the Kurali - Kiratpur Toll

Road, being the first BOT Project executed under the SPV,

has been completed and opened to toll collection. The

collection of toll is also very encouraging and as per

projections.

Subsidiary Financials:

In accordance with the general circular issued by the Ministry of Corporate Affairs, Government of India, the Balance Sheet, Profit and Loss Account and other documents of the subsidiary companies are not being attached with the Balance Sheet of the Company. The Company will make available the Annual Accounts of the subsidiary companies and the related detailed information to any member of the Company who may be interested in obtaining the same. The annual accounts of the subsidiary companies will be kept open for inspection at the Registered Office of the Company and that of the respective subsidiary companies.

Statutory Disclosures

A. Deposits

During the year under review, the company has not accepted any public deposits.

B. Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo

The particulars as required by Section 217 (1) (e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Directors) Rules, 1988 are set out below:

Conservation of Energy

The company is primarily into construction activity, which is not power intensive. However, the company is putting conscious efforts to avoid the wastage on the consumption of power.

R& D and Technology Absorption : Not Applicable

Foreign Exchange Earnings and Outgo

Foreign Exchange earnings : Rs.131,334,002

Foreign Exchange outgo : Rs.78,655,495

C. Particulars of Employees

Par t icu la rs to be repor ted as requ i red u /s 217 (2A) of the Companies Act, 1956 read with the Companies : Not Appl icable (Par t icu lars o f Employees)Rules, 1975 as amended upto March 31, 2011.

D. Directors Responsibility Statement

Pursuant to section 217 (2AA) of the Companies Act, 1956, the Board of Directors of the Company confirms:

1. That in the preparation of the annual accounts for the Financial Year 2010-11, the applicable accounting standards have been followed along with proper explanations relating to the material departures.

2. That the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year 2010-11and of the profit or loss of the company for that period.

3 That the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities:

4 That the directors had prepared the annual accounts for the Financial Year 2010-11 on a going concern basis.

Acknowledgments

The Board of Directors record their sincere appreciation to all stakeholders of the Company for their valuable support, co-operation and assistance, viz., the Members, the NHAI, the business Partners, the Govt. of India, several State Governments, various Govt. Departments, the Consortium of Banks and other Lenders/financial institutions, the equipment suppliers and financiers, the creditors, the employees at all levels and to one and all without whose support the Company would not have achieved growth.

Hyderabad September 16, 2011

B. KrishnaiahChairman

For and on behalf of the BoardBSCPL Infrastructure Ltd.


Financial information of Subsidiary Companies for the year ended March 31, 2011

SNo.

1

2 BSC C&C Kurali Toll Road Limited 1,04,18,00,000 42,78,99,046 4,07,72,33,317 2,60,75,34,271

3 BSCPL Godhra Tollways Limited 1,24,80,060 22,75,25,000 1,76,17,05,060 1,52,17,00,000

4 BSCPL International FZE 50,86,66,170 89,02,361 51,77,53,448 1,84,917

5 Progressive International Holding Inc. 22,62,151 - 13,45,36,487 13,22,74,335

6 Green Desert Venture Inc. 22,62,151 - 81,37,51,002 81,14,88,851

7 Green Desert Venture Ltd. 12,32,780 - 26,93,748 14,60,968

BSCPL Infra Projects Limited 1,01,63,08,413 1,04,50,91,352 2,06,13,99,765 -

Name of the Subsidiary Capital Total Liabilities Total Assets Reserves


SNo.

1 BSCPL Infra Projects Limited 84,31,79,910 - (1,48,757) - (1,48,757) -

2 BSC C&C Kurali Toll Road Limited - - -

3 BSCPL Godhra Tollways Limited - - -

4 BSCPL International FZE 2,43,03,051 2,16,17,968 2,16,17,968 -

5 Progressive International - - - Holding Inc.

6 Green Desert Venture Inc.

7 Green Desert Venture Ltd.

Name of the Subsidiary

Investments (Except in

case ofInvestment inSubsidiaries)

Profit/(Loss)

after Tax

Profit/(Loss)

before Tax

Turnover/

Total income

Provisions for

Taxation

Proposed

Dividend



Subsidiary Financials:

In accordance with the general circular issued by the Ministry of Corporate Affairs, Government of India, the Balance Sheet, Profit and Loss Account and other documents of the subsidiary companies are not being attached with the Balance Sheet of the Company. The Company will make available the Annual Accounts of the subsidiary companies and the related detailed information to any member of the Company who may be interested in obtaining the same. The annual accounts of the subsidiary companies will be kept open for inspection at the Registered Office of the Company and that of the respective subsidiary companies.

Statutory Disclosures

A. Deposits

During the year under review, the company has not accepted any public deposits.

B. Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo

The particulars as required by Section 217 (1) (e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Directors) Rules, 1988 are set out below:

Conservation of Energy

The company is primarily into construction activity, which is not power intensive. However, the company is putting conscious efforts to avoid the wastage on the consumption of power.

R& D and Technology Absorption : Not Applicable

Foreign Exchange Earnings and Outgo

Foreign Exchange earnings : Rs.131,334,002

Foreign Exchange outgo : Rs.78,655,495

C. Particulars of Employees

Par t icu la rs to be repor ted as requ i red u /s 217 (2A) of the Companies Act, 1956 read with the Companies : Not Appl icable (Par t icu lars o f Employees)Rules, 1975 as amended upto March 31, 2011.

D. Directors Responsibility Statement

Pursuant to section 217 (2AA) of the Companies Act, 1956, the Board of Directors of the Company confirms:

1. That in the preparation of the annual accounts for the Financial Year 2010-11, the applicable accounting standards have been followed along with proper explanations relating to the material departures.

2. That the directors had selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of the financial year 2010-11and of the profit or loss of the company for that period.

3 That the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities:

4 That the directors had prepared the annual accounts for the Financial Year 2010-11 on a going concern basis.

Acknowledgments

The Board of Directors record their sincere appreciation to all stakeholders of the Company for their valuable support, co-operation and assistance, viz., the Members, the NHAI, the business Partners, the Govt. of India, several State Governments, various Govt. Departments, the Consortium of Banks and other Lenders/financial institutions, the equipment suppliers and financiers, the creditors, the employees at all levels and to one and all without whose support the Company would not have achieved growth.

Hyderabad September 16, 2011


For and on behalf of the BoardBSCPL Infrastructure Ltd.



SNo.

1

2 BSC C&C Kurali Toll Road Limited 1,04,18,00,000 42,78,99,046 4,07,72,33,317 2,60,75,34,271

3 BSCPL Godhra Tollways Limited 1,24,80,060 22,75,25,000 1,76,17,05,060 1,52,17,00,000

4 BSCPL International FZE 50,86,66,170 89,02,361 51,77,53,448 1,84,917

5 Progressive International Holding Inc. 22,62,151 - 13,45,36,487 13,22,74,335

6 Green Desert Venture Inc. 22,62,151 - 81,37,51,002 81,14,88,851

7 Green Desert Venture Ltd. 12,32,780 - 26,93,748 14,60,968

BSCPL Infra Projects Limited 1,01,63,08,413 1,04,50,91,352 2,06,13,99,765 -

Name of the Subsidiary Capital Total Liabilities Total Assets Reserves


SNo.

1 BSCPL Infra Projects Limited 84,31,79,910 - (1,48,757) - (1,48,757) -

2 BSC C&C Kurali Toll Road Limited - - -

3 BSCPL Godhra Tollways Limited - - -

4 BSCPL International FZE 2,43,03,051 2,16,17,968 2,16,17,968 -

5 Progressive International - - - Holding Inc.

6 Green Desert Venture Inc.

7 Green Desert Venture Ltd.

Name of the Subsidiary

Investments (Except in

case ofInvestment inSubsidiaries)

Profit/(Loss)

after Tax

Profit/(Loss)

before Tax

Turnover/

Total income

Provisions for

Taxation

Proposed

Dividend



For Walker, Chandiok & CoChartered AccountantsFirm Registration No: 001076N

per Sanjay KumarPartner Membership No.: 207660

Place: HyderabadDate: 22 August 2011

For Anjaneyulu & CoChartered AccountantsFirm Registration No: 000180S

per D.V. AnjaneyuluPartner Membership No.: 21036


To

The Members of BSCPL Infrastructure Limited

1. We have audited the attached Balance Sheet of BSCPL Infrastructure Limited (the ‘Company’) as at 31 March 2011, and also the Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto (collectively referred as the ‘financial statements’). These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor’s Report) Order, 2003 (the ‘Order’) (as amended), issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956 (the ‘Act’), we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

4. The accompanying financial statements for the year ended 31 March 2011 include the Company’s share of profit (net of share in losses) aggregating to ` 571,556,930 (31 March 2010: ̀ 475,139,981) from jointly controlled entities in which the Company is a co-venturer. The financial statements of these jointly controlled entities as at and for the year ended 31 March 2011 were audited by other auditors whose reports have been furnished to us and our opinion is solely based on the report of other auditors.

5. Without qualifying our opinion we draw attention to:a. Note 7 on Schedule 23 to the financial statements

regarding claims amounting to ` 2,857,892,943 (31 March 2010: ` 1,716,376,422) outstanding as at 31 March 2011 including a sum of ̀ 941,460,652 (31 March 2010: ` 787,691,868) recognised as income during the current year based on the terms and conditions implicit in the contract. The claims being technical in nature and being subject matter of arbitration, the Company has assessed the recoverability of these claims based on dispute resolution board, arbitration tribunal orders received and legal opinion from an independent counsel. On the basis of such assessment, management is of the opinion that the claims are tenable and would be realized in full accordingly no

adjustments have been made in these financial statements.

b. Note 14 on Schedule 23 to the financial statements, regarding management assessment of carrying value of its investment of ` 548,817,430 in its wholly owned subsidiary, BSCPL International FZE, Dubai. On the basis of such assessment, management is of the opinion that the investment would be realized in full accordingly no adjustments have been made in these financial statements.

c. Note 15 on Schedule 23 to the financial statements regarding duty drawback claims amounting to ` 155,512,244 outstanding as at 31 March 2011, including a sum of ` 10,227,875 recognised as income during the current year. The Company has assessed the recoverability of these claims based on legal opinion from an independent counsel. On the basis of such assessment, management is of the opinion that the claims are tenable and would be realized in full accordingly no adjustments have been made in these financial statements.

6. We report that:a. We have obtained all the information and explanations,

which to the best of our knowledge and belief were necessary for the purposes of our audit;

b. In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

c. The financial statements dealt with by this report are in agreement with the books of account;

d. On the basis of the written representations received from the directors, as on 31 March 2011, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31 March 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Act; and

e. In our opinion and to the best of our information and according to the explanations given to us, the financial statements dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Act and the Rules framed there under and give the information required by the Act, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, in the case of:

i. the Balance Sheet, of the state of affairs of the Company as at 31 March 2011;

ii. the Profit and Loss Account, of the profit for the year ended on that date; and

iii. the Cash Flow Statement, of the cash flows for the year ended on that date.

Auditors’ Report



Annexure to the Auditor's Report of even date to themembers of BSCPL Infrastructure Limited, on the

financial statements for the year ended 31 March 2011.

Based on the audit procedures performed for the purposes of reporting a true and fair view on the financial statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit, we report that:

i. a. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

b. The fixed assets have been physically verified by the management during the year and no material discrepancies were noticed on such verification. In our opinion, the frequency of verification of the fixed assets is reasonable having regard to the size of the Company and the nature of its assets.

c. In our opinion, a substantial part of fixed assets has not been disposed off during the year.

ii. a. The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

b. The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c. The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

iii. a. The Company has not granted any loan, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Act. Accordingly, the provisions of clauses 4(iii)(b) to (d) of the Order are not applicable.

e. The Company had taken loan from a party covered in the register maintained under section 301 of the Act. The maximum amount outstanding during the year was` 30,000,000 and the year-end balance was ̀ Nil.

f. In our opinion, the rate of interest and other terms and conditions for such loans are not, prima facie, prejudicial to the interest of the Company.

g. In respect of loans taken, repayment of the principal amount is as stipulated and payment of interest has been regular.

iv. In our opinion, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the aforesaid internal control system.

v. a. In our opinion, the particulars of all contracts or arrangements that need to be entered into the register maintained under section 301 of the Act have been so entered.

b. Owing to the unique and specialized nature of the items involved and in the absence of any comparable prices, we are unable to comment as to whether the transactions made in pursuance of such contracts or arrangements have been made at prevailing market prices at the relevant time.

vi. The Company has not accepted any deposits from the public within the meaning of sections 58A and 58AA of the Act and the Companies (Acceptance of Deposits) Rules, 1975. Accordingly, the provisions of clause 4(vi) of the Order are not applicable.

vii. In our opinion, the Company has an internal audit system commensurate with its size and the nature of its business.

viii. To the best of our knowledge and belief, the Central Government has not prescribed maintenance of cost records under clause (d) of sub-section (1) of section 209 of the Act, in respect of Company’s products and services. Accordingly, the provisions of clause 4(viii) of the Order are not applicable.

ix. a. Undisputed statutory dues including provident fund, investor education and protection fund, employees’ state insurance, income-tax, sales-tax, wealth-tax, service-tax, custom duty, excise duty, cess and other material statutory dues, as applicable, have generally been regularly deposited with the appropriate authorities, though there has been a slight delay in a few cases. No undisputed amounts payable in respect thereof were outstanding at the yearend for a period of more than six months from the date they became payable.








To

The Members of BSCPL Infrastructure Limited

1. We have audited the attached Balance Sheet of BSCPL Infrastructure Limited (the ‘Company’) as at 31 March 2011, and also the Profit and Loss Account and the Cash Flow Statement for the year ended on that date annexed thereto (collectively referred as the ‘financial statements’). These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor’s Report) Order, 2003 (the ‘Order’) (as amended), issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Companies Act, 1956 (the ‘Act’), we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

4. The accompanying financial statements for the year ended 31 March 2011 include the Company’s share of profit (net of share in losses) aggregating to ` 571,556,930 (31 March 2010: ̀ 475,139,981) from jointly controlled entities in which the Company is a co-venturer. The financial statements of these jointly controlled entities as at and for the year ended 31 March 2011 were audited by other auditors whose reports have been furnished to us and our opinion is solely based on the report of other auditors.

5. Without qualifying our opinion we draw attention to:a. Note 7 on Schedule 23 to the financial statements

regarding claims amounting to ` 2,857,892,943 (31 March 2010: ` 1,716,376,422) outstanding as at 31 March 2011 including a sum of ̀ 941,460,652 (31 March 2010: ` 787,691,868) recognised as income during the current year based on the terms and conditions implicit in the contract. The claims being technical in nature and being subject matter of arbitration, the Company has assessed the recoverability of these claims based on dispute resolution board, arbitration tribunal orders received and legal opinion from an independent counsel. On the basis of such assessment, management is of the opinion that the claims are tenable and would be realized in full accordingly no

adjustments have been made in these financial statements.

b. Note 14 on Schedule 23 to the financial statements, regarding management assessment of carrying value of its investment of ` 548,817,430 in its wholly owned subsidiary, BSCPL International FZE, Dubai. On the basis of such assessment, management is of the opinion that the investment would be realized in full accordingly no adjustments have been made in these financial statements.

c. Note 15 on Schedule 23 to the financial statements regarding duty drawback claims amounting to ` 155,512,244 outstanding as at 31 March 2011, including a sum of ` 10,227,875 recognised as income during the current year. The Company has assessed the recoverability of these claims based on legal opinion from an independent counsel. On the basis of such assessment, management is of the opinion that the claims are tenable and would be realized in full accordingly no adjustments have been made in these financial statements.

6. We report that:a. We have obtained all the information and explanations,

which to the best of our knowledge and belief were necessary for the purposes of our audit;

b. In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

c. The financial statements dealt with by this report are in agreement with the books of account;

d. On the basis of the written representations received from the directors, as on 31 March 2011, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31 March 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Act; and

e. In our opinion and to the best of our information and according to the explanations given to us, the financial statements dealt with by this report comply with the accounting standards referred to in sub-section (3C) of Section 211 of the Act and the Rules framed there under and give the information required by the Act, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, in the case of:

i. the Balance Sheet, of the state of affairs of the Company as at 31 March 2011;

ii. the Profit and Loss Account, of the profit for the year ended on that date; and

iii. the Cash Flow Statement, of the cash flows for the year ended on that date.

Auditors’ Report



Annexure to the Auditor's Report of even date to themembers of BSCPL Infrastructure Limited, on the

financial statements for the year ended 31 March 2011.

Based on the audit procedures performed for the purposes of reporting a true and fair view on the financial statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit, we report that:

i. a. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

b. The fixed assets have been physically verified by the management during the year and no material discrepancies were noticed on such verification. In our opinion, the frequency of verification of the fixed assets is reasonable having regard to the size of the Company and the nature of its assets.

c. In our opinion, a substantial part of fixed assets has not been disposed off during the year.

ii. a. The inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.

b. The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c. The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification.

iii. a. The Company has not granted any loan, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Act. Accordingly, the provisions of clauses 4(iii)(b) to (d) of the Order are not applicable.

e. The Company had taken loan from a party covered in the register maintained under section 301 of the Act. The maximum amount outstanding during the year was` 30,000,000 and the year-end balance was ̀ Nil.

f. In our opinion, the rate of interest and other terms and conditions for such loans are not, prima facie, prejudicial to the interest of the Company.

g. In respect of loans taken, repayment of the principal amount is as stipulated and payment of interest has been regular.

iv. In our opinion, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the aforesaid internal control system.

v. a. In our opinion, the particulars of all contracts or arrangements that need to be entered into the register maintained under section 301 of the Act have been so entered.

b. Owing to the unique and specialized nature of the items involved and in the absence of any comparable prices, we are unable to comment as to whether the transactions made in pursuance of such contracts or arrangements have been made at prevailing market prices at the relevant time.

vi. The Company has not accepted any deposits from the public within the meaning of sections 58A and 58AA of the Act and the Companies (Acceptance of Deposits) Rules, 1975. Accordingly, the provisions of clause 4(vi) of the Order are not applicable.

vii. In our opinion, the Company has an internal audit system commensurate with its size and the nature of its business.

viii. To the best of our knowledge and belief, the Central Government has not prescribed maintenance of cost records under clause (d) of sub-section (1) of section 209 of the Act, in respect of Company’s products and services. Accordingly, the provisions of clause 4(viii) of the Order are not applicable.

ix. a. Undisputed statutory dues including provident fund, investor education and protection fund, employees’ state insurance, income-tax, sales-tax, wealth-tax, service-tax, custom duty, excise duty, cess and other material statutory dues, as applicable, have generally been regularly deposited with the appropriate authorities, though there has been a slight delay in a few cases. No undisputed amounts payable in respect thereof were outstanding at the yearend for a period of more than six months from the date they became payable.








Income Tax Income 7,039,405 7,039,405 2005-06 Commissioner Of

Act, 1961 Tax 8,688,321 2,210,614 2005-06 Income Tax

7,264,953 2,042,013 2006-07 (Appeals), Hyderabad

8,683,993 743,594 2007-08

4,043,694 318,056 2008-09

The Central Sales 4,843,084 1,210,771 2004-05 High Court of

Sales Tax Act, 1956 Tax 17,994,352 4,498,558 2003-04 Andhra Pradesh

9,789,078 2,447,270 2002-03

Madhya Pradesh 40,382,297 2007-08

Sthaniya Kshetra Me Entry tax 21,528,960 17,500,000 2008-09 Supreme court

Mal Ke Pravesh 9,917,682 2009-10

Par Kar Abhiyan, 1976 141,335,590 - 2007-08

Entry tax 75,348,910 - 2008-09 High Court of Jabalpur

39,694,451 1,246,000 2009-10

Name of the Statute

b. The dues outstanding in respect of income-tax, sales-tax, service tax, custom duty, wealth-tax, excise duty, cess on account of any dispute, are as follows:

Period towhich the

amount relates

Natureof dues

Amountin `

Paid underprotest `

Forum wheredispute is pending

x. In our opinion, the Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and the immediately preceding financial year.

xi. In our opinion, the Company has not defaulted in repayment of dues to a financial institution or a bank or debenture holders during the year.

xii. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, the provisions of clause 4(xii) of the Order are not applicable.

xiii. In our opinion, the Company is not a chit fund or a nidhi/ mutual benefit fund/ society. Accordingly, the provisions of clause 4(xiii) of the Order are not applicable.

xiv. In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Order are not applicable.

xv. In our opinion, the terms and conditions on which the Company has given guarantee for loans taken by others

from banks or financial institutions are not, prima facie, prejudicial to the interest of the Company.

xvi. In our opinion, the Company has applied the term loans for the purpose for which the loans were obtained, except an amount of ` 614,299,413 pending immediate utilization have been utilized towards general corporate purposes.

xvii. In our opinion, no funds raised on short-term basis have been used for long-term investment.

xviii. The Company has not made any preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Act. Accordingly, the provisions of clause 4(xviii) of the Order are not applicable.

xix. The Company has neither issued nor had any outstanding debentures during the year. Accordingly, the provisions of clause 4(xix) of the Order are not applicable.

xx. The Company has not raised any money by public issues during the year. Accordingly, the provisions of clause 4(xx) of the Order are not applicable.

xxi. No fraud on or by the Company has been noticed or reported during the period covered by our audit.


STANDALONEFINANCIALS


th13 Annual Report







Income Tax Income 7,039,405 7,039,405 2005-06 Commissioner Of

Act, 1961 Tax 8,688,321 2,210,614 2005-06 Income Tax

7,264,953 2,042,013 2006-07 (Appeals), Hyderabad

8,683,993 743,594 2007-08

4,043,694 318,056 2008-09

The Central Sales 4,843,084 1,210,771 2004-05 High Court of

Sales Tax Act, 1956 Tax 17,994,352 4,498,558 2003-04 Andhra Pradesh

9,789,078 2,447,270 2002-03

Madhya Pradesh 40,382,297 2007-08

Sthaniya Kshetra Me Entry tax 21,528,960 17,500,000 2008-09 Supreme court

Mal Ke Pravesh 9,917,682 2009-10

Par Kar Abhiyan, 1976 141,335,590 - 2007-08

Entry tax 75,348,910 - 2008-09 High Court of Jabalpur

39,694,451 1,246,000 2009-10

Name of the Statute

b. The dues outstanding in respect of income-tax, sales-tax, service tax, custom duty, wealth-tax, excise duty, cess on account of any dispute, are as follows:

Period towhich the

amount relates

Natureof dues

Amountin `

Paid underprotest `

Forum wheredispute is pending

x. In our opinion, the Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and the immediately preceding financial year.

xi. In our opinion, the Company has not defaulted in repayment of dues to a financial institution or a bank or debenture holders during the year.

xii. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, the provisions of clause 4(xii) of the Order are not applicable.

xiii. In our opinion, the Company is not a chit fund or a nidhi/ mutual benefit fund/ society. Accordingly, the provisions of clause 4(xiii) of the Order are not applicable.

xiv. In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Order are not applicable.

xv. In our opinion, the terms and conditions on which the Company has given guarantee for loans taken by others

from banks or financial institutions are not, prima facie, prejudicial to the interest of the Company.

xvi. In our opinion, the Company has applied the term loans for the purpose for which the loans were obtained, except an amount of ` 614,299,413 pending immediate utilization have been utilized towards general corporate purposes.

xvii. In our opinion, no funds raised on short-term basis have been used for long-term investment.

xviii. The Company has not made any preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Act. Accordingly, the provisions of clause 4(xviii) of the Order are not applicable.

xix. The Company has neither issued nor had any outstanding debentures during the year. Accordingly, the provisions of clause 4(xix) of the Order are not applicable.

xx. The Company has not raised any money by public issues during the year. Accordingly, the provisions of clause 4(xx) of the Order are not applicable.

xxi. No fraud on or by the Company has been noticed or reported during the period covered by our audit.


STANDALONEFINANCIALS


th13 Annual Report

Balance Sheet as at 31 March 2011All amounts in Indian Rupees unless otherwise stated

SchedulesAs at 31 March

2011 2010Particulars

The schedules referred to above form an integral part of the Balance Sheet.

This is the Balance Sheet referred to in our report of even date. For and on behalf of the Board of Directors of BSCPL Infrastructure Limited

For Walker, Chandiok & CoChartered Accountants

For Anjaneyulu & CoChartered Accountants


B. SeenaiahManaging Director

per Sanjay KumarPartner

per D.V. AnjaneyuluPartner

A. V. B. R. NarasimhamChief Financial Officer

B. S. BhaskarCompany Secretary

Place: Hyderabad Date: 22 August 2011


SOURCES OF FUNDS

Shareholders' funds

Share capital 1 248,573,360 124,286,680

Reserves and surplus 2 6,400,720,658 5,996,907,512

6,649,294,018 6,121,194,192

Loan funds

Secured loans 3 7,699,921,784 6,052,179,179

Unsecured loans 4 1,549,700,001 753,573,833

9,249,621,785 6,805,753,012

Deferred tax liabilities, net 5 212,984,465 264,499,474

Total 16,111,900,268 13,191,446,678

APPLICATION OF FUNDS

Fixed assets 6

Gross block 4,481,670,933 4,269,186,126

Less: Accumulated depreciation 1,822,485,218 1,416,503,354

Net block 2,659,185,715 2,852,682,772

Capital work-in-progress (including capital advances) 339,788,504 163,160,406

Investments 7 2,712,682,439 1,036,350,276

Current assets, loans and advances

Inventories 8 4,101,288,920 2,961,898,142

Sundry debtors 9 3,520,047,837 2,982,672,754

Cash and bank balances 10 573,819,055 359,586,349

Other current assets 11 51,284,367 221,196,849

Loans and advances 12 5,880,949,395 4,376,256,025

14,127,389,574 10,901,610,119

Less: Current liabilities and provisions

Current liabilities 13 3,705,339,502 1,743,535,422

Provisions 14 21,806,462 18,821,473

3,727,145,964 1,762,356,895

Net current assets 10,400,243,610 9,139,253,224

Total 16,111,900,268 13,191,446,678

Notes to accounts 23


The schedules referred to above form an integral part of the Profit and Loss account.

This is the Profit and Loss account. referred to in our report of even date. For and on behalf of the Board of Directors of BSCPL Infrastructure Limited











Profit and Loss Account for the year ended 31 March 2011All amounts in Indian Rupees unless otherwise stated

SchedulesFor the year ended 31 March


Income

Contract revenues 15 3,620,017,542 7,136,757,903

Sale of metals 183,900,862 231,078,606

Increase in closing stock 16 1,050,727,185 496,661,031

Other income 17 219,476,322 143,487,464

5,074,121,911 8,007,985,004

Expenditure

Materials consumed 18 1,557,703,153 3,240,789,543

Personnel expenses 19 778,488,150 778,418,765

Construction expenses 20 1,185,417,637 2,071,556,247

Administrative and selling expenses 21 276,914,629 236,264,465

Depreciation 6 455,215,720 432,815,912

Interest and finance charges 22 913,707,604 758,587,219

5,167,446,893 7,518,432,151

Profit/(loss) before tax and prior period items (93,324,982) 489,552,853

Prior period items 23(13) (12,407,694) (31,347,584)

Profit/(loss) before tax (80,917,288) 520,900,437

Tax expenses

Current tax 14,054,826 146,163,216

(includes tax of earlier year (` 5,592,750)

(31 March 2010: (` 5,054,010))

Deferred tax (benefit)/expense (51,515,010) 39,356,840

Profit/(loss) after tax (43,457,104) 335,380,381

Company's share of profit in integrated joint ventures, (net) 571,556,930 475,139,981

Net profit 528,099,826 810,520,362

Balance brought forward from previous year 2,664,171,709 1,853,651,347

Surplus carried to balance sheet 3,192,271,535 2,664,171,709

Earnings per share (EPS) 23(21)

Basic and diluted 21.25 32.61

Nominal value per share 10 10

Weighted average number of equity shares used in

computation of EPS 24,857,336 24,857,336




Balance Sheet as at 31 March 2011All amounts in Indian Rupees unless otherwise stated



The schedules referred to above form an integral part of the Balance Sheet.

This is the Balance Sheet referred to in our report of even date. For and on behalf of the Board of Directors of BSCPL Infrastructure Limited











SOURCES OF FUNDS

Shareholders' funds

Share capital 1 248,573,360 124,286,680

Reserves and surplus 2 6,400,720,658 5,996,907,512

6,649,294,018 6,121,194,192

Loan funds

Secured loans 3 7,699,921,784 6,052,179,179

Unsecured loans 4 1,549,700,001 753,573,833

9,249,621,785 6,805,753,012

Deferred tax liabilities, net 5 212,984,465 264,499,474

Total 16,111,900,268 13,191,446,678

APPLICATION OF FUNDS

Fixed assets 6

Gross block 4,481,670,933 4,269,186,126

Less: Accumulated depreciation 1,822,485,218 1,416,503,354

Net block 2,659,185,715 2,852,682,772

Capital work-in-progress (including capital advances) 339,788,504 163,160,406

Investments 7 2,712,682,439 1,036,350,276


Inventories 8 4,101,288,920 2,961,898,142

Sundry debtors 9 3,520,047,837 2,982,672,754

Cash and bank balances 10 573,819,055 359,586,349

Other current assets 11 51,284,367 221,196,849

Loans and advances 12 5,880,949,395 4,376,256,025

14,127,389,574 10,901,610,119


Current liabilities 13 3,705,339,502 1,743,535,422

Provisions 14 21,806,462 18,821,473

3,727,145,964 1,762,356,895


Total 16,111,900,268 13,191,446,678



The schedules referred to above form an integral part of the Profit and Loss account.

This is the Profit and Loss account. referred to in our report of even date. For and on behalf of the Board of Directors of BSCPL Infrastructure Limited











Profit and Loss Account for the year ended 31 March 2011All amounts in Indian Rupees unless otherwise stated

SchedulesFor the year ended 31 March


Income


Sale of metals 183,900,862 231,078,606

Increase in closing stock 16 1,050,727,185 496,661,031

Other income 17 219,476,322 143,487,464

5,074,121,911 8,007,985,004

Expenditure

Materials consumed 18 1,557,703,153 3,240,789,543

Personnel expenses 19 778,488,150 778,418,765



Depreciation 6 455,215,720 432,815,912

Interest and finance charges 22 913,707,604 758,587,219

5,167,446,893 7,518,432,151

Profit/(loss) before tax and prior period items (93,324,982) 489,552,853

Prior period items 23(13) (12,407,694) (31,347,584)

Profit/(loss) before tax (80,917,288) 520,900,437

Tax expenses

Current tax 14,054,826 146,163,216

(includes tax of earlier year (` 5,592,750)

(31 March 2010: (` 5,054,010))


Profit/(loss) after tax (43,457,104) 335,380,381

Company's share of profit in integrated joint ventures, (net) 571,556,930 475,139,981

Net profit 528,099,826 810,520,362

Balance brought forward from previous year 2,664,171,709 1,853,651,347

Surplus carried to balance sheet 3,192,271,535 2,664,171,709

Earnings per share (EPS) 23(21)



Weighted average number of equity shares used in

computation of EPS 24,857,336 24,857,336




Schedules forming part of the financial statementsAll amounts in Indian Rupees unless otherwise stated

As at 31 March


Schedule 1: Share Capital

Authorised

30,000,000 (31 March 2010: 20,000,000) equity shares of 10 each 300,000,000 200,000,000

Issued, subscribed and paid up

"24,857,336 (31 March 2010: 12,428,668) equity shares of 248,573,360 124,286,680

`10 each fully paid-up

(Of the above, 12,428,668 (31 March 2010: Nil) equity shares of `10

each are alloted as fully paid up bonus shares by capitalization

of balance in share premium account.)"

Schedule 2: Reserves and surplus

Share premium account

As per last balance sheet 2,067,176,855 2,067,176,855

Less: Utilized for issue of bonus shares 124,286,680 -

1,942,890,175 2,067,176,855

General reserve


Add:Transferred from debenture redemption reserve - 82,849,315

1,265,558,948 1,265,558,948

Debenture redemption reserve

As per last balance sheet - 82,849,315

Less:Tranferred to general reserve - 82,849,315

- -

Balance in profit and loss account 3,192,271,535 2,664,171,709

6,400,720,658 5,996,907,512

Schedule 3: Secured loans

(Refer note 5 on Schedule 23)

From banks

Term loans 4,515,534,019 1,576,555,076

[Repayable within one year ̀1,190,148,893 (31 March 2010: ̀954,119,177)]

Equipment and vehicle loans 18,715,778 64,473,700

[Repayable within one year ` 18,715,778 (31 March 2010: ` 43,849,482)]

Working capital loans 2,740,752,011 3,250,123,244

[Repayable within one year]

From others

Term loans 409,297,993 1,084,736,923

[Repayable within one year ̀409,297,993 (31 March 2010: ̀375,000,000)]

Equipments and vehicle loans 15,621,983 76,290,236

[Repayable within one year ` 15,621,983 (31 March 2010 : ` 51,668,272)]

7,699,921,784 6,052,179,179

`



As at 31 March


Schedule 4: Unsecured loans

From banks

Commercial paper - 400,000,000

(Repayable within one year)

Less: Unamortised discount - 10,095,410

- 389,904,590

Others - 200,000,000

From others

Mobilisation advances from customers 1,549,700,001 163,669,243

1,549,700,001 753,573,833

Schedule 5: Deferred tax liabilities, net

Deferred tax liability

On account of:

Fixed assets 223,429,373 274,547,721

223,429,373 274,547,721

Deferred tax assets

On account of:

Retirement benefits 3,091,374 2,148,669

Others 7,353,534 7,899,578

10,444,908 10,048,247

212,984,465 264,499,474




As at 31 March


Schedule 1: Share Capital

Authorised



"24,857,336 (31 March 2010: 12,428,668) equity shares of 248,573,360 124,286,680

`10 each fully paid-up

(Of the above, 12,428,668 (31 March 2010: Nil) equity shares of `10

each are alloted as fully paid up bonus shares by capitalization

of balance in share premium account.)"


Share premium account


Less: Utilized for issue of bonus shares 124,286,680 -

1,942,890,175 2,067,176,855

General reserve


Add:Transferred from debenture redemption reserve - 82,849,315

1,265,558,948 1,265,558,948



Less:Tranferred to general reserve - 82,849,315

- -


6,400,720,658 5,996,907,512



From banks

Term loans 4,515,534,019 1,576,555,076

[Repayable within one year ̀1,190,148,893 (31 March 2010: ̀954,119,177)]

Equipment and vehicle loans 18,715,778 64,473,700



[Repayable within one year]

From others

Term loans 409,297,993 1,084,736,923

[Repayable within one year ̀409,297,993 (31 March 2010: ̀375,000,000)]

Equipments and vehicle loans 15,621,983 76,290,236

[Repayable within one year ` 15,621,983 (31 March 2010 : ` 51,668,272)]

7,699,921,784 6,052,179,179

`



As at 31 March



From banks


(Repayable within one year)

Less: Unamortised discount - 10,095,410

- 389,904,590

Others - 200,000,000

From others

Mobilisation advances from customers 1,549,700,001 163,669,243

1,549,700,001 753,573,833



On account of:

Fixed assets 223,429,373 274,547,721

223,429,373 274,547,721

Deferred tax assets

On account of:

Retirement benefits 3,091,374 2,148,669

Others 7,353,534 7,899,578

10,444,908 10,048,247

212,984,465 264,499,474



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As at 31 March


Schedule 7: Investments


Quoted - Non trade

Current investments (at lower of cost and market value)30,000 (31 March 2010: 40,000) equity shares of ` 10 each fully 342,679 456,905 paid up in Vijaya Bank Limited

9,140 (31 March 2010: 9,140) equity shares of ` 10 each fully 1,156,667 2,219,192paid up inC & C Constructions Limited

Long term, trade (at cost, unquoted)

In others729,972 (31 March 2010: 729,972) equity shares of ` 10 each, 1,459,944 1,459,944 fully paid-up, in Aishu Projects Limited

400,000 (31 March 2010: 400,000) preference share of `10 each, 30,000,000 30,000,000partly paid-up in Pipal Tree Venture Limited

In joint ventures800,000 (31 March 2010: 800,000) equity shares of NPR100 each 50,000,000 50,000,000 fully paid up in BSC - C & C (JV) Nepal Private Limited

13,000 (31 March 2010: Nil) equity shares of `10 each, fully 130,000 - paid-up in North Bihar High Way Limited

245,700 (31 March 2010: Nil ) equity shares of ` 10 each fully 23,400,000 - paid up in Mokkama Munger Highways Limited

In subsidiaries Nil (31 March 2010: 50,006) equity shares of ` 10 each, fully - 500,060paid-up in BSCPL Realty limited

15,917,881 (31 March 2010:10,400,006) equity shares of `10 each, 1,207,575,060 104,000,060 fully paid-up in BSCPL Infra Projects Limited

1 (31 March 2010: 1) equity share of DHM150,000 fully paid-up in 1,875,150 1,875,150 BSCPL International FZE

100 (31 March 2010: 100) equity shares of ` 10 each fully paid 1,000 1,000 up in BSC C&C Kurali Toll Road Limited

1,000,000 (31 March 2010: 1,000,000) preference shares of ` 100 100,000,000 100,000,000 each, fully paid-up in BSCPL Infra Projects Limited

Share application money pending allotmentBSCPL Infra Projects Limited 757,129,603 258,076,598

BSCPL International FZE 546,942,280 495,221,311

Mokama - Munger Highway Limited 130,000 -

2,720,142,383 1,043,810,220

Less: Provision for diminution, other than temporary, in the 7,459,944 7,459,944 carrying value of long term investments

2,712,682,439 1,036,350,276

Aggregate book value of quoted investments 1,499,346 2,676,097

Aggregate book value of unquoted investments 2,718,643,037 1,041,134,123

Market value of quoted investments 3,574,336 4,117,192



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As at 31 March


Schedule 7: Investments


Quoted - Non trade

Current investments (at lower of cost and market value)30,000 (31 March 2010: 40,000) equity shares of ` 10 each fully 342,679 456,905 paid up in Vijaya Bank Limited

9,140 (31 March 2010: 9,140) equity shares of ` 10 each fully 1,156,667 2,219,192paid up inC & C Constructions Limited

Long term, trade (at cost, unquoted)

In others729,972 (31 March 2010: 729,972) equity shares of ` 10 each, 1,459,944 1,459,944 fully paid-up, in Aishu Projects Limited

400,000 (31 March 2010: 400,000) preference share of `10 each, 30,000,000 30,000,000partly paid-up in Pipal Tree Venture Limited

In joint ventures800,000 (31 March 2010: 800,000) equity shares of NPR100 each 50,000,000 50,000,000 fully paid up in BSC - C & C (JV) Nepal Private Limited

13,000 (31 March 2010: Nil) equity shares of `10 each, fully 130,000 - paid-up in North Bihar High Way Limited

245,700 (31 March 2010: Nil ) equity shares of ` 10 each fully 23,400,000 - paid up in Mokkama Munger Highways Limited

In subsidiaries Nil (31 March 2010: 50,006) equity shares of ` 10 each, fully - 500,060paid-up in BSCPL Realty limited

15,917,881 (31 March 2010:10,400,006) equity shares of `10 each, 1,207,575,060 104,000,060 fully paid-up in BSCPL Infra Projects Limited

1 (31 March 2010: 1) equity share of DHM150,000 fully paid-up in 1,875,150 1,875,150 BSCPL International FZE

100 (31 March 2010: 100) equity shares of ` 10 each fully paid 1,000 1,000 up in BSC C&C Kurali Toll Road Limited

1,000,000 (31 March 2010: 1,000,000) preference shares of ` 100 100,000,000 100,000,000 each, fully paid-up in BSCPL Infra Projects Limited

Share application money pending allotmentBSCPL Infra Projects Limited 757,129,603 258,076,598

BSCPL International FZE 546,942,280 495,221,311

Mokama - Munger Highway Limited 130,000 -

2,720,142,383 1,043,810,220

Less: Provision for diminution, other than temporary, in the 7,459,944 7,459,944 carrying value of long term investments

2,712,682,439 1,036,350,276


Aggregate book value of unquoted investments 2,718,643,037 1,041,134,123

Market value of quoted investments 3,574,336 4,117,192




As at 31 March


Schedule 8: Inventories(Refer note 2 (vii) on Schedule 23)

Raw materials 492,343,071 429,680,925 [includes materials in transit ` 3,808,872 (31 March 2010: ` 8,279,559)]

Stores and spares 161,831,810 111,193,099

Work-in-progress 395,151,221 442,150,709

Real estate under development 3,021,387,074 1,884,416,229

[includes land held for development of ` 309,321,320(31 March 2010: ` 265,525,195)]

Finished goods 30,575,744 94,457,180

4,101,288,920 2,961,898,142

Schedule 9: Sundry debtors (unsecured, considered good)(Refer note 7 on Schedule 23)

Debts outstanding for a period exceeding six months 1,855,309,505 1,220,103,966

[Includes retention money `138,270,090 (31 March 2010: ` 286,035,776)]

Other debts 1,664,738,332 1,762,568,788

[Includes retention money ` 72,562,423 (31 March 2010: ` 182,931,695)]

3,520,047,837 2,982,672,754

Includes dues from company under the same managemnent:

BSCPL Godhra Tollways Limited 358,007,402 -

Schedule 10: Cash and bank balancesCash balances on hand 6,665,055 10,766,521

Bank balances

with scheduled banks:

- on current accounts 450,196,114 238,204,058

- on deposit accounts * 110,282,983 108,557,085

Cheques in hand 3,446,465 -

[* Held under lien with the bankers]

with others:

- on current account with Abu Dhabi Commercial Bank, Abu Dhabi. 3,228,438 2,058,685

573,819,055 359,586,349

Maximum amount outstanding at any time during the year with the

non-scheduled bank 18,094,250 18,556,602

Schedule 11: Other current assets(unsecured, considered good)Interest accrued on advances 50,060,086 220,273,962

Interest accrued on fixed deposits 1,224,281 922,887

51,284,367 221,196,849



As at 31 March


Schedule 12: Loans and advances(unsecured, considered good)(Refer note 7, 9 and 15 on Schedule 23)

Advances recoverable in cash or kind or for value to be received 643,610,894 1,087,387,882

Loans and advances to subsidiaries 1,558,954 664,321

Loans and advances to joint ventures 4,767,464,988 2,841,297,452

Deposits 29,289,545 46,843,529

Duty drawback receivable 155,512,244 210,831,204

Balances with government authorities 101,933,648 112,247,620

Advance tax (net of provision) 181,579,122 76,984,017

5,880,949,395 4,376,256,025

Schedule 13: Current liabilitiesSundry creditors

-Total outstanding dues of micro enterprises and small enterprises - -


-Total outstanding dues of creditors other than micro enterprises 733,212,517 903,583,337and small enterprises

733,212,517 903,583,337

Deferred revenue 437,183,119 -

Advances from customers 2,430,854,102 689,275,378

Book overdraft 1,602,385 19,316,273

Retention money 63,307,278 60,550,629

Other liabilities 34,686,017 65,359,089

Interest accrued but not due 4,494,084 5,450,716

3,705,339,502 1,743,535,422

Schedule 14: Provisions

For defect liability 12,500,000 12,500,000

For gratuity 9, 306,462 6,321,473

21,806,462 18,821,473

Schedule 15: Contract revenues

Construction activity 3,504,813,892 6,886,899,832

Equipment hire-charges 104,975,775 118,970,966

Excise duty draw back 10,227,875 130,887,105

3,620,017,542 7,136,757,903

Schedule 16: Increase in closing stockWork-in-progress

Closing work-in-progress 395,151,221 442,150,709

Less: Opening work-in-progress 442,150,709 555,006,323

(46,999,488) (112,855,614)




As at 31 March


Schedule 8: Inventories(Refer note 2 (vii) on Schedule 23)

Raw materials 492,343,071 429,680,925 [includes materials in transit ` 3,808,872 (31 March 2010: ` 8,279,559)]

Stores and spares 161,831,810 111,193,099

Work-in-progress 395,151,221 442,150,709



Finished goods 30,575,744 94,457,180

4,101,288,920 2,961,898,142

Schedule 9: Sundry debtors (unsecured, considered good)(Refer note 7 on Schedule 23)


[Includes retention money `138,270,090 (31 March 2010: ` 286,035,776)]

Other debts 1,664,738,332 1,762,568,788

[Includes retention money ` 72,562,423 (31 March 2010: ` 182,931,695)]

3,520,047,837 2,982,672,754

Includes dues from company under the same managemnent:

BSCPL Godhra Tollways Limited 358,007,402 -

Schedule 10: Cash and bank balancesCash balances on hand 6,665,055 10,766,521

Bank balances

with scheduled banks:


- on deposit accounts * 110,282,983 108,557,085


[* Held under lien with the bankers]

with others:

- on current account with Abu Dhabi Commercial Bank, Abu Dhabi. 3,228,438 2,058,685

573,819,055 359,586,349

Maximum amount outstanding at any time during the year with the

non-scheduled bank 18,094,250 18,556,602

Schedule 11: Other current assets(unsecured, considered good)Interest accrued on advances 50,060,086 220,273,962

Interest accrued on fixed deposits 1,224,281 922,887

51,284,367 221,196,849



As at 31 March


Schedule 12: Loans and advances(unsecured, considered good)(Refer note 7, 9 and 15 on Schedule 23)

Advances recoverable in cash or kind or for value to be received 643,610,894 1,087,387,882

Loans and advances to subsidiaries 1,558,954 664,321

Loans and advances to joint ventures 4,767,464,988 2,841,297,452

Deposits 29,289,545 46,843,529



Advance tax (net of provision) 181,579,122 76,984,017

5,880,949,395 4,376,256,025

Schedule 13: Current liabilitiesSundry creditors

-Total outstanding dues of micro enterprises and small enterprises - -


-Total outstanding dues of creditors other than micro enterprises 733,212,517 903,583,337and small enterprises

733,212,517 903,583,337

Deferred revenue 437,183,119 -


Book overdraft 1,602,385 19,316,273

Retention money 63,307,278 60,550,629



3,705,339,502 1,743,535,422



For gratuity 9, 306,462 6,321,473

21,806,462 18,821,473



Equipment hire-charges 104,975,775 118,970,966


3,620,017,542 7,136,757,903

Schedule 16: Increase in closing stockWork-in-progress

Closing work-in-progress 395,151,221 442,150,709

Less: Opening work-in-progress 442,150,709 555,006,323

(46,999,488) (112,855,614)




For the year ended

31 March 2011 31 March 2010Particulars

Real estate under development

Closing real estate under development 3,021,387,074 1,884,416,229

Add: Land transferred to fixed assets 24,637,264 -

Less: Opening real estate under development 1,884,416,229 1,188,618,617

Less: Prior period items - 13,928,925

1,161,608,109 681,868,687

Finished goodsClosing finished goods 30,575,744 94,457,180

Less: Opening finished goods 94,457,180 166,809,222

(63,881,436) (72,352,042)

1,050,727,185 496,661,031

Schedule 17: Other income

Interest on fixed deposits (gross) 7,480,393 9,663,066

[Tax deducted at source ` 715,096 (31 March 2010: ` 1,290,744)]

Interest on loans and advances [gross] 15,000,000 67,662,000

[Tax deducted at source ` 1,500,000 (31 March 2010: ` 6,766,200)]

Interest from others 126,388,326 43,692,084

Profit on disposal of current investments 1,015,774 -

Reversal of diminution in the value of current investments - 1,301,079

Liabilities no longer required written back 35,978,245 -

Miscellaneous income 33,613,584 21,169,235

219,476,322 143,487,464

Schedule 18: Materials consumed

Opening stock 429,680,925 656,468,088

Purchases during the year 1,620,365,299 3,014,002,380

2,050,046,224 3,670,470,468

Less: Closing stock 492,343,071 429,680,925

1,557,703,153 3,240,789,543

Schedule 19: Personnel expenses

Salaries, wages and bonus 693,817,873 675,908,640

Contribution to provident and other funds 13,487,461 14,259,282

Staff welfare 61,876,354 74,082,931

Gratuity 9,306,462 14,167,912

778,488,150 778,418,765

Schedule 20: Construction expenses

Power and fuel 333,580,228 813,777,578

Repairs and maintenance

- Plant and machinery 126,594,745 179,933,750

- Vehicles 18,896,472 48,663,997

- Others 8,719,321 2,157,957



For the year ended


Site expenses 478,210,158 682,416,434

Sub-contract expenses - 29,063,066

Equipment hire charges 33,240,989 114,624,690

Freight and transportation charges 26,312,166 6,681,191

Insurance 15,555,131 16,667,867

Sales tax 140,547,447 170,219,049

Service tax 3,760,980 7,350,668

1,185,417,637 2,071,556,247

Schedule 21: Administrative and selling expenses

Rent 22,834,989 13,165,328

Rates and taxes 68,558,209 54,114,448

Office maintenance 3,133,966 2,564,216

Communication cost 6,551,051 7,154,241

Printing and stationery 6,766,688 7,844,970

Legal and professional charges 51,606,696 74,947,854

Fixed assets written-off - 10,896,216

Tender expenses 31,115,936 21,254,306

Business promotion 11,187,712 9,722,104

Travelling and conveyance 18,993,355 15,095,245

Auditors' remuneration 2,700,000 2,835,020

Advances written off 11,328,055 1,080,107

Duty drawback written off 33,343,366 -

Exchange fluctuation loss, (net) 1,398,420 3,078,199

Diminution in the value of current investments 1,062,525 -

Provision for diminution other than temporary in the carrying value of long term investment - 6,000,000

Miscellaneous expenses 6,333,661 6,512,211

276,914,629 236,264,465

Schedule 22: Interest and finance charges

Interest on debentures - 8,967,359

Interest on

- fixed period loans 656,150,865 640,182,582

- others 211,914,018 44,312,342

Bank charges and commission 58,152,995 88,214,559

Total interest cost* 926,217,878 781,676,842

Less: Borrowing cost capitalised for asset construction under progress 12,510,274 23,089,623

913,707,604 758,587,219

* Includes borrowing costs aggregating to ` 154,590,245 (31 March 2010: ` 123,172,143) transferred to real estate under development through increase in work in progress.




For the year ended







1,161,608,109 681,868,687

Finished goodsClosing finished goods 30,575,744 94,457,180


(63,881,436) (72,352,042)

1,050,727,185 496,661,031




Interest on loans and advances [gross] 15,000,000 67,662,000




Reversal of diminution in the value of current investments - 1,301,079



219,476,322 143,487,464

Schedule 18: Materials consumed

Opening stock 429,680,925 656,468,088


2,050,046,224 3,670,470,468

Less: Closing stock 492,343,071 429,680,925

1,557,703,153 3,240,789,543


Salaries, wages and bonus 693,817,873 675,908,640


Staff welfare 61,876,354 74,082,931

Gratuity 9,306,462 14,167,912

778,488,150 778,418,765


Power and fuel 333,580,228 813,777,578


- Plant and machinery 126,594,745 179,933,750

- Vehicles 18,896,472 48,663,997

- Others 8,719,321 2,157,957



For the year ended


Site expenses 478,210,158 682,416,434

Sub-contract expenses - 29,063,066



Insurance 15,555,131 16,667,867

Sales tax 140,547,447 170,219,049

Service tax 3,760,980 7,350,668

1,185,417,637 2,071,556,247


Rent 22,834,989 13,165,328

Rates and taxes 68,558,209 54,114,448


Communication cost 6,551,051 7,154,241

Printing and stationery 6,766,688 7,844,970


Fixed assets written-off - 10,896,216

Tender expenses 31,115,936 21,254,306



Auditors' remuneration 2,700,000 2,835,020

Advances written off 11,328,055 1,080,107

Duty drawback written off 33,343,366 -

Exchange fluctuation loss, (net) 1,398,420 3,078,199

Diminution in the value of current investments 1,062,525 -

Provision for diminution other than temporary in the carrying value of long term investment - 6,000,000


276,914,629 236,264,465



Interest on

- fixed period loans 656,150,865 640,182,582

- others 211,914,018 44,312,342


Total interest cost* 926,217,878 781,676,842


913,707,604 758,587,219

* Includes borrowing costs aggregating to ` 154,590,245 (31 March 2010: ` 123,172,143) transferred to real estate under development through increase in work in progress.




Schedule 23: Notes to Accounts1. Nature of operations

BSCPL Infrastructure Limited (‘the Company’ or

‘BSCPL’) is a Hyderabad based infrastructure company

primarily engaged in civil and engineering construction

and has executed several construction projects in roads,

large scale bridge works and irrigation. The Company is

also executing a real estate project at Chennai.

2. Statement of significant accounting policies

i. Basis of preparation

The financial statements have been prepared and

presented under the historical cost convention on the

accrual basis of accounting in accordance with the

generally accepted accounting principles in India

(‘Indian GAAP’) and in compliance with the

mandatory Accounting Standards (‘AS’) as

prescribed under Companies (Accounting

Standards) Rules, 2006 (“the Rules”) (as amended)

and the relevant provisions of the Companies Act,

1956 (“the Act”).

ii. Use of estimates

The preparation of the financial statements in

conformity with Indian GAAP requires management

to make estimates and assumptions that affect the

balances of assets and liabilities and disclosures

relating to contingent liabilities as at the reporting

date of the financial statements and amounts of

income and expenses. Examples of such estimates

include contract revenue, provision for defect liability,

provision for doubtful debts, useful lives of fixed

assets, income taxes, determination of quantity of

certain types of inventory and future obligations

under employee retirement benefit plans.

Management periodically assesses whether there is

an indication that an asset may be impaired and

makes provision in the accounts for any impairment

losses estimated. Contingencies are recorded when

it is probable that a liability will be incurred, and the

amount can be reasonably estimated.

Although these estimates are based upon

management’s best knowledge of current events and

actions, actual results could differ from these

estimates. Any revision to accounting estimates is

recognised prospectively in the current and future

periods.

iii. Fixed assets and depreciation

Fixed assets are stated at cost less accumulated

depreciation and impairment losses, if any. Cost

comprises of purchase price, freight, non refundable

duties and taxes and any other cost attributable to

bringing the asset to its working condition for its

intended use. Borrowing costs relating to acquisition

of fixed assets which takes substantial period of time

to get ready for its intended use are also included to

the extent they relate to the period till such assets are

ready for its intended use. Advances paid towards

the acquisition of fixed assets and outstanding at

each balance sheet date and the cost of assets under

construction are disclosed as capital work-in-

progress.

Assets retired from active use and held for disposal

are stated at their estimated net realisable values or

net book values, whichever is lower.

Depreciation is provided on Straight Line Method

based on useful life of the assets as estimated by

management which coincides with rates prescribed

under Schedule XIV to the Act, except in respect of (a)

temporary erections in the form of sheds, camps,

etc., which are depreciated over the period of the

respective project, (b) shuttering materials which are

depreciated over a period of 6 years as against 20

years as prescribed under Schedule XIV to the Act,

and (c) asset individually costing ` 5,000 or less are

depreciated in full in the year of purchase.

iv. Impairment

The carrying amounts of assets are reviewed at each

balance sheet date if there is any indication of

impairment based on internal/external factors. An

impairment loss is recognized wherever the carrying

amount of an asset exceeds its recoverable amount.

The recoverable amount is the greater of the asset’s

net selling price and its value in use. In assessing

value in use, the estimated future cash flows are

discounted to their present value at the weighted

average cost of capital.


After impairment, depreciation is provided on the

revised carrying amount of the asset over its

remaining useful life.

v. Revenue recognition

Revenue is recognised to the extent that it is probable

that the economic benefits will flow to the Company

and revenue can be reliably measured and

collectability is reasonably assured.

a. Revenue from long term construction contracts is

recognized using percentage of completion

method as prescribed under AS 7 “Construction

Contracts” and with reference to stage of

completion of the contract activity at the reporting

date. Depending on the nature and terms of

individual contract, stage of completion is

determined on the basis of surveys performed or

the proportion of costs incurred for the work

performed till date to the total estimated contract

costs. Where the total cost of the contract, based

on technical and other estimates expected to

exceed the corresponding contract value, such

expected loss is provided for. The effect of any

adjustment arising from revision of estimates is

included in the Profit and Loss Account of the

period in which revision is made.

b. Price escalation and other claims and /or variation

in the contract work are included in contract

revenue only when:

l Negotiations have reached at an advanced

stage such that it is probable that customer

will accept the claim; and

l The amount that is probable will be accepted

by the customer can be measured reliably

c. Revenue from sale of metal and aggregates is

recognised when significant risk and reward of

ownership of the goods have passed to the buyer.

d. Revenue from the sale of real estate properties is

recognized when the significant risks and rewards

of ownership have been transferred to the

customer, which coincides with physical delivery

of possession to the customer.

e. Interest income is recognized on time proportion

basis taking into account the amount outstanding

and the rate applicable.

f. Dividend is recognized when the right to receive

the payment is established.

g. Investments in joint ventures registered in the

form of Association of Persons (AOPs) are

classified as jointly controlled entities in terms of

(AS) 27 ‘Financial Reporting of Interest in Joint

Ventures’ and are considered as integrated joint

ventures. Income in the form of the Company’s

share in profit/losses of the respective entities is

recognized on accrual basis in accordance with

the provisions of Schedule VI to the Act.

h. Benefits on account of entitlement to excise duty

draw back scheme is included in revenues and

are accrued and accounted in the year in which it

is reasonably certain that such benefits are

realizable.

vi. Investments

Investments in readily realisable securities that are

intended to be held for not more than a year are

classified as current investments. All other

investments are classified as long term investments.

Long-term investments are carried at cost. Provision

for diminution in value is made to recognise a decline,

other than temporary, in the value of the investments.

Current investments are carried at lower of cost and

market value determined on individual investment

basis.

a. Works-in-progress related to project and

construction is valued at cost till such time the

outcome of the related project is ascertained

reliably and at contractual rates thereafter.

b. Construction materials, stores, spares and loose

tools are valued at the lower of cost and net

realizable value. However, materials and other

items held for use in the construction are not

written down below cost if the services in which

they will be incorporated are expected to be billed

at or above cost. Cost is determined on first-in-

first out basis.





Schedule 23: Notes to Accounts1. Nature of operations


‘BSCPL’) is a Hyderabad based infrastructure company

primarily engaged in civil and engineering construction

and has executed several construction projects in roads,

large scale bridge works and irrigation. The Company is

also executing a real estate project at Chennai.


i. Basis of preparation

The financial statements have been prepared and

presented under the historical cost convention on the

accrual basis of accounting in accordance with the

generally accepted accounting principles in India

(‘Indian GAAP’) and in compliance with the

mandatory Accounting Standards (‘AS’) as

prescribed under Companies (Accounting

Standards) Rules, 2006 (“the Rules”) (as amended)

and the relevant provisions of the Companies Act,

1956 (“the Act”).


The preparation of the financial statements in

conformity with Indian GAAP requires management

to make estimates and assumptions that affect the

balances of assets and liabilities and disclosures

relating to contingent liabilities as at the reporting

date of the financial statements and amounts of

income and expenses. Examples of such estimates

include contract revenue, provision for defect liability,

provision for doubtful debts, useful lives of fixed

assets, income taxes, determination of quantity of

certain types of inventory and future obligations

under employee retirement benefit plans.

Management periodically assesses whether there is

an indication that an asset may be impaired and

makes provision in the accounts for any impairment

losses estimated. Contingencies are recorded when

it is probable that a liability will be incurred, and the

amount can be reasonably estimated.

Although these estimates are based upon


actions, actual results could differ from these

estimates. Any revision to accounting estimates is

recognised prospectively in the current and future

periods.






bringing the asset to its working condition for its

intended use. Borrowing costs relating to acquisition

of fixed assets which takes substantial period of time

to get ready for its intended use are also included to

the extent they relate to the period till such assets are

ready for its intended use. Advances paid towards

the acquisition of fixed assets and outstanding at

each balance sheet date and the cost of assets under

construction are disclosed as capital work-in-

progress.

Assets retired from active use and held for disposal

are stated at their estimated net realisable values or

net book values, whichever is lower.

Depreciation is provided on Straight Line Method



under Schedule XIV to the Act, except in respect of (a)

temporary erections in the form of sheds, camps,

etc., which are depreciated over the period of the

respective project, (b) shuttering materials which are

depreciated over a period of 6 years as against 20

years as prescribed under Schedule XIV to the Act,

and (c) asset individually costing ` 5,000 or less are


iv. Impairment


balance sheet date if there is any indication of

impairment based on internal/external factors. An

impairment loss is recognized wherever the carrying

amount of an asset exceeds its recoverable amount.

The recoverable amount is the greater of the asset’s

net selling price and its value in use. In assessing

value in use, the estimated future cash flows are

discounted to their present value at the weighted



After impairment, depreciation is provided on the

revised carrying amount of the asset over its

remaining useful life.

v. Revenue recognition


that the economic benefits will flow to the Company

and revenue can be reliably measured and

collectability is reasonably assured.


recognized using percentage of completion

method as prescribed under AS 7 “Construction

Contracts” and with reference to stage of

completion of the contract activity at the reporting

date. Depending on the nature and terms of

individual contract, stage of completion is

determined on the basis of surveys performed or

the proportion of costs incurred for the work

performed till date to the total estimated contract

costs. Where the total cost of the contract, based

on technical and other estimates expected to




included in the Profit and Loss Account of the

period in which revision is made.

b. Price escalation and other claims and /or variation

in the contract work are included in contract

revenue only when:

l Negotiations have reached at an advanced

stage such that it is probable that customer

will accept the claim; and

l The amount that is probable will be accepted

by the customer can be measured reliably





recognized when the significant risks and rewards

of ownership have been transferred to the

customer, which coincides with physical delivery

of possession to the customer.




f. Dividend is recognized when the right to receive

the payment is established.

g. Investments in joint ventures registered in the

form of Association of Persons (AOPs) are

classified as jointly controlled entities in terms of

(AS) 27 ‘Financial Reporting of Interest in Joint

Ventures’ and are considered as integrated joint

ventures. Income in the form of the Company’s


recognized on accrual basis in accordance with

the provisions of Schedule VI to the Act.

h. Benefits on account of entitlement to excise duty

draw back scheme is included in revenues and

are accrued and accounted in the year in which it

is reasonably certain that such benefits are

realizable.

vi. Investments

Investments in readily realisable securities that are

intended to be held for not more than a year are

classified as current investments. All other

investments are classified as long term investments.

Long-term investments are carried at cost. Provision

for diminution in value is made to recognise a decline,

other than temporary, in the value of the investments.

Current investments are carried at lower of cost and

market value determined on individual investment

basis.



outcome of the related project is ascertained

reliably and at contractual rates thereafter.


tools are valued at the lower of cost and net

realizable value. However, materials and other

items held for use in the construction are not

written down below cost if the services in which

they will be incorporated are expected to be billed

at or above cost. Cost is determined on first-in-

first out basis.




c. Finished goods are valued at lower of cost and net

realizable value. Cost includes direct materials,

labour and a proportion of manufacturing

overheads based on normal operating capacity.

Cost is determined on a first-in-first out basis.

d. Real estate under development comprises of the

purchase cost of land and other direct

development costs including borrowing costs

and is valued at the lower of cost and net

realizable value.

Net realizable value is the estimated selling price in

the ordinary course of business, reduced by the

estimated costs of completion and costs to affect the

sale.

viii. Employee benefits

Provident Fund

Retirement benefit in the form of provident fund is a

defined contribution scheme and the contributions

are charged to the Profit and Loss Account of the year

when the contributions to the respective funds are

due. There are no other obligations other than the

contribution payable to the respective authorities

Gratuity

Gratuity is a defined benefit obligation. The liability

recognized in the balance sheet represents the

present value of the defined benefit obligation at the

balance sheet date, together with adjustments for

past service costs. An independent actuary using the

projected unit credit method calculates the defined

benefit obligation annually.

Actuarial gains or losses arising from experience

adjustments and changes in actuarial assumptions

are credited or charged to the Profit and Loss

Account in the year in which such gains or losses

arises.

Other short-term benefits

Expense in respect of other short-term benefits

including performance bonus is recognized on the

basis of amount paid or payable for the year during

which the employees render services.

ix. Income taxes

Tax expense consists of current and deferred taxes.

Current income tax is measured at the amount

expected to be paid to the tax authorities in

accordance with the Income Tax Act, 1961 of India.

Deferred income taxes reflect the impact of current

period timing differences between taxable income

and accounting income for the year and reversal of

timing differences of earlier years.

Deferred tax is measured based on the tax rates and

the tax laws enacted or substantively enacted at the

balance sheet date. Deferred tax assets are

recognized only to the extent that there is reasonable

certainty that sufficient future taxable income will be

available against which such deferred tax assets can

be realised. In situations where the Company has

unabsorbed depreciation or carry forward tax losses,

all deferred tax assets are recognized only if there is

virtual certainty supported by convincing evidence

that they can be realized against future taxable

profits.

Unrecognized deferred tax assets of earlier years are

re-assessed and recognized to the extent that it has

become reasonably certain or virtually certain, as the

case may be that future taxable income will be


be realized.

The carrying amount of deferred tax assets are

reviewed at each balance sheet date. The company

writes-down the carrying amount of a deferred tax

asset to the extent that it is no longer reasonably

certain or virtually certain, as the case may be, that

sufficient future taxable income will be available

against which deferred tax asset can be realized. Any

such write-down is reversed to the extent that it

becomes reasonably certain or virtually certain, as

the case may be, that sufficient future taxable income

will be available.

x. Foreign currency transactions

Initial recognition

Foreign currency transactions are recorded in the

reporting currency, by applying to the foreign



currency amount the exchange rate between the

reporting currency and foreign currency at the date of

the transaction.

Conversion

Foreign currency monetary items are reported using

the year-end rates. Non-monetary items which are

carried in terms of historical cost denominated in

foreign currency are reported using the exchange

rate at the date of the transaction.

The financial statements of an integral foreign

operation are translated as if the transactions of the

foreign operation have been those of the Company

itself.

Forward exchange contracts not intended for

trading or speculation purposes

In case of forward exchange contracts, difference

between the forward rate and the exchange rate on

the date of transaction is recognized as expense or

income over the life of the contract. Exchange

differences on such contracts are recognized in the

Profit and Loss Account in the year in which the

exchange rates change. Any profit or loss arising on

cancellation or renewal of forward exchange contract

is recognized as income or as expense for the year.

xi. Leases

Where the company is a lessee

Leases, where the substantial risks and benefits

incidental to ownership of the leased item are

transferred to the Company, are classified as finance

leases. Assets under finance leases, where there is

no reasonable uncertainty that the Company will

obtain the ownership by the end of the lease term,

such assets are capitalized and depreciated over the

tenure of the lease or estimated useful life of the asset

whichever is shorter.

Leases, where the lessor effectively retains

substantially all the risks and benefits of ownership of

the leased item, are classified as operating leases.

Operating lease payments are recognised as an

expense in the Profit and Loss Account on a Straight-

Line basis over the lease term.

Where the company is a lessor

Assets under operating leases are included in fixed

assets. Lease income is recognised in the Profit and

Loss Account on a straight-line basis over the lease

term. Costs, including depreciation are recognised

as an expense in the Profit and Loss Account. Initial

direct costs such as legal costs, brokerage costs,

etc. are recognised immediately in the Profit and Loss

Account.

xii. Accounting for joint ventures

Accounting for joint ventures undertaken by the

Company has been done as follows:

Jointly controlled operations: Company’s share of

revenues, expenses, assets and liabilities are

included in the financials statements as revenues,

expenses, assets and liabilities respectively.

Jointly controlled entities: Investments made in

integrated joint ventures registered in the form of

partnership firms or Association Of Persons (AOPs)

are classified as Jointly Controlled Entities in terms of

AS-27 “Financial Reporting of Interest in Joint

Ventures” as notified by the Rules and Company’s


recognized in the financial statements in accordance

with the provisions of the Schedule VI to the Act. The

net investment in the joint ventures is reflected as

investment or loans and advances. Company’s share

in profits of the incorporated joint ventures is

accounted when the dividends are declared by the

respective joint venture companies.

xiii. Earnings per share

Basic earnings per share are calculated by dividing

the net profit or loss for the period attributable to

equity shareholders by the weighted average number

of equity shares outstanding during the period. For

the purpose of calculating diluted earnings per share,


equity shareholders and the weighted average

number of shares outstanding during the year are

adjusted for the effects of all dilutive potential equity

shares.






labour and a proportion of manufacturing

overheads based on normal operating capacity.

Cost is determined on a first-in-first out basis.

d. Real estate under development comprises of the

purchase cost of land and other direct

development costs including borrowing costs

and is valued at the lower of cost and net

realizable value.




sale.

viii. Employee benefits

Provident Fund


defined contribution scheme and the contributions

are charged to the Profit and Loss Account of the year

when the contributions to the respective funds are

due. There are no other obligations other than the

contribution payable to the respective authorities

Gratuity


recognized in the balance sheet represents the

present value of the defined benefit obligation at the

balance sheet date, together with adjustments for

past service costs. An independent actuary using the

projected unit credit method calculates the defined

benefit obligation annually.


adjustments and changes in actuarial assumptions

are credited or charged to the Profit and Loss

Account in the year in which such gains or losses

arises.


Expense in respect of other short-term benefits

including performance bonus is recognized on the

basis of amount paid or payable for the year during

which the employees render services.

ix. Income taxes


Current income tax is measured at the amount

expected to be paid to the tax authorities in

accordance with the Income Tax Act, 1961 of India.

Deferred income taxes reflect the impact of current

period timing differences between taxable income

and accounting income for the year and reversal of

timing differences of earlier years.

Deferred tax is measured based on the tax rates and

the tax laws enacted or substantively enacted at the

balance sheet date. Deferred tax assets are

recognized only to the extent that there is reasonable

certainty that sufficient future taxable income will be


be realised. In situations where the Company has

unabsorbed depreciation or carry forward tax losses,

all deferred tax assets are recognized only if there is

virtual certainty supported by convincing evidence

that they can be realized against future taxable

profits.

Unrecognized deferred tax assets of earlier years are

re-assessed and recognized to the extent that it has


case may be that future taxable income will be


be realized.

The carrying amount of deferred tax assets are

reviewed at each balance sheet date. The company

writes-down the carrying amount of a deferred tax

asset to the extent that it is no longer reasonably

certain or virtually certain, as the case may be, that

sufficient future taxable income will be available

against which deferred tax asset can be realized. Any

such write-down is reversed to the extent that it

becomes reasonably certain or virtually certain, as

the case may be, that sufficient future taxable income

will be available.

x. Foreign currency transactions

Initial recognition


reporting currency, by applying to the foreign



currency amount the exchange rate between the

reporting currency and foreign currency at the date of

the transaction.

Conversion

Foreign currency monetary items are reported using

the year-end rates. Non-monetary items which are

carried in terms of historical cost denominated in

foreign currency are reported using the exchange

rate at the date of the transaction.

The financial statements of an integral foreign

operation are translated as if the transactions of the

foreign operation have been those of the Company

itself.

Forward exchange contracts not intended for

trading or speculation purposes


between the forward rate and the exchange rate on

the date of transaction is recognized as expense or

income over the life of the contract. Exchange

differences on such contracts are recognized in the

Profit and Loss Account in the year in which the

exchange rates change. Any profit or loss arising on

cancellation or renewal of forward exchange contract

is recognized as income or as expense for the year.

xi. Leases



incidental to ownership of the leased item are

transferred to the Company, are classified as finance

leases. Assets under finance leases, where there is

no reasonable uncertainty that the Company will

obtain the ownership by the end of the lease term,

such assets are capitalized and depreciated over the

tenure of the lease or estimated useful life of the asset

whichever is shorter.

Leases, where the lessor effectively retains

substantially all the risks and benefits of ownership of

the leased item, are classified as operating leases.

Operating lease payments are recognised as an

expense in the Profit and Loss Account on a Straight-

Line basis over the lease term.




Loss Account on a straight-line basis over the lease

term. Costs, including depreciation are recognised

as an expense in the Profit and Loss Account. Initial

direct costs such as legal costs, brokerage costs,

etc. are recognised immediately in the Profit and Loss

Account.

xii. Accounting for joint ventures

Accounting for joint ventures undertaken by the

Company has been done as follows:

Jointly controlled operations: Company’s share of

revenues, expenses, assets and liabilities are

included in the financials statements as revenues,

expenses, assets and liabilities respectively.

Jointly controlled entities: Investments made in

integrated joint ventures registered in the form of

partnership firms or Association Of Persons (AOPs)

are classified as Jointly Controlled Entities in terms of

AS-27 “Financial Reporting of Interest in Joint

Ventures” as notified by the Rules and Company’s


recognized in the financial statements in accordance

with the provisions of the Schedule VI to the Act. The

net investment in the joint ventures is reflected as

investment or loans and advances. Company’s share

in profits of the incorporated joint ventures is

accounted when the dividends are declared by the

respective joint venture companies.


Basic earnings per share are calculated by dividing


equity shareholders by the weighted average number

of equity shares outstanding during the period. For

the purpose of calculating diluted earnings per share,


equity shareholders and the weighted average

number of shares outstanding during the year are

adjusted for the effects of all dilutive potential equity

shares.





xiv. Cash and cash equivalents

Cash and cash equivalents in the cash flow

statement comprise cash at bank and cash in hand

and short-term investments with an original maturity

of three months or less.

xv. Derivative instruments

As per the ICAI announcement, accounting for

derivative contracts, other than those covered under

AS-11, are marked to market on a portfolio basis, and

the net loss after considering the offsetting effect on

the underlying hedge item is charged to the Profit and

Loss Account. Net gains are ignored.

xvi. Provisions and contingent liabilities

A provision is recognised when the Company has a

present obligation as a result of a past event i.e., it is

probable that an outflow of resources will be required

to settle the obligation in respect of which a reliable

estimate can be made. Provisions are not discounted

to its present value and are determined based on

best estimate required to settle the obligation at the

balance sheet date.

These are reviewed at each balance sheet date and

adjusted to reflect the current best estimates. A

disclosure of the contingent liability is made when

there is a possible or a present obligation that may,

but probably will not, require an outflow of resources.

Present obligations arising under onerous contracts

are recognized and measured as a provision. An

onerous contract is considered to exist where the

Company has a contract under which the

unavoidable costs of meeting the obligations under

the contract exceed the economic benefits expected

to be received under it.

3. Capital commitments

l Estimated amount of contracts remaining to be

executed on capital account and not provided for

(net of capital advances) ` 32,041,253 (31 March

2010: ̀ 2,033,908).

l Commitments of the Company in relation to its

interest in joint ventures and its share of capital

commitments of joint ventures ` 4,789,812,000 (31

March 2010: ̀ Nil).



As at 31 March


Claims against the Company not acknowledged as debts on

account of joint ventures

Uncalled liability on partly paid up shares 10,000,000 10,000,000

Demand from income tax authorities in respect of which the Company 7,039,405 7,039,405

has gone for appeal to Commissioner of Income

Tax (Appeals), Hyderabad

Income tax demand for non deduction of tax at source in respect 28,680,961 28,680,961

of interest embedded in monthly installments paid to non-banking

financial corporations. The Company’s appeal is pending with

Commissioner of Income Tax (Appeals), Hyderabad.

Penalties levied by sales tax department for misuse of C-Forms 32,626,514 32,626,514

in the years 2002-03 to 2004-05 in respect of which the Company’s

appeal is pending before Honorable High Court of Andhra Pradesh

The Company has received provisional demand notices for 71,828,939 71,828,939

payment of entry tax under the provisions of the Madhya Pradesh

Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Abhiyan, 1976.

The Company has contested the same in Honorable Supreme Court

The Company has received provisional demand notices for payment of 256,378,951 -

penalty on entry tax under the provisions of the Madhya Pradesh


The Company has contested the same in Honorable High Court of Jabalpur

Demand for entry tax under the Andhra Pradesh Tax on Entry of - 27,642,000

Motor Vehicles into Local Areas Act, 1996 in respect of which the

Company has filed an appeal with honorable High Court of Andhra Pradesh.

Demand for entry tax received under the provisions of the - 16,816,370

Karnataka Tax on Entry of Goods Act, 1979 in respect of which the

Company has gone for an appeal.

Income tax demands of BSC-C&C Joint venture to the extent of our

share for which the Joint venture entity has preferred for an appeal 70,322,500 20,455,444

322,032,500 684,975,887

4. Contingent liabilities not provided for





Cash and cash equivalents in the cash flow

statement comprise cash at bank and cash in hand

and short-term investments with an original maturity

of three months or less.


As per the ICAI announcement, accounting for

derivative contracts, other than those covered under

AS-11, are marked to market on a portfolio basis, and

the net loss after considering the offsetting effect on

the underlying hedge item is charged to the Profit and

Loss Account. Net gains are ignored.



present obligation as a result of a past event i.e., it is

probable that an outflow of resources will be required

to settle the obligation in respect of which a reliable

estimate can be made. Provisions are not discounted

to its present value and are determined based on

best estimate required to settle the obligation at the

balance sheet date.



disclosure of the contingent liability is made when

there is a possible or a present obligation that may,

but probably will not, require an outflow of resources.

Present obligations arising under onerous contracts

are recognized and measured as a provision. An

onerous contract is considered to exist where the

Company has a contract under which the

unavoidable costs of meeting the obligations under

the contract exceed the economic benefits expected

to be received under it.


l Estimated amount of contracts remaining to be

executed on capital account and not provided for

(net of capital advances) ` 32,041,253 (31 March

2010: ̀ 2,033,908).

l Commitments of the Company in relation to its

interest in joint ventures and its share of capital

commitments of joint ventures ` 4,789,812,000 (31

March 2010: ̀ Nil).



As at 31 March


Claims against the Company not acknowledged as debts on




has gone for appeal to Commissioner of Income

Tax (Appeals), Hyderabad





Penalties levied by sales tax department for misuse of C-Forms 32,626,514 32,626,514

in the years 2002-03 to 2004-05 in respect of which the Company’s

appeal is pending before Honorable High Court of Andhra Pradesh

The Company has received provisional demand notices for 71,828,939 71,828,939

payment of entry tax under the provisions of the Madhya Pradesh


The Company has contested the same in Honorable Supreme Court




The Company has contested the same in Honorable High Court of Jabalpur




Demand for entry tax received under the provisions of the - 16,816,370

Karnataka Tax on Entry of Goods Act, 1979 in respect of which the

Company has gone for an appeal.

Income tax demands of BSC-C&C Joint venture to the extent of our

share for which the Joint venture entity has preferred for an appeal 70,322,500 20,455,444

322,032,500 684,975,887





5. Secured loans

l Term loans availed in respect of specific projects is

secured by way of first charge on the fixed assets

related to the project. In respect of other term loans

they are secured by the pledge of shares and second

charge on unencumbered fixed assets.

l Working capital facilities are secured by pari-passu

first charge on the current assets both present and

future and on unencumbered fixed assets of the

company.

l Equipment and vehicle loans are secured by way of

hypothecation of the underlying fixed assets.

l All secured loans are also secured by way of personal

guarantees of the Chairman and Managing Director

of the Company.

For the year ended


Opening balance 12,500,000 -

Additions during the year 4,894,356 12,500,000

Amounts used during the year 4,894,356 -

Closing balance 12,500,000 12,500,000

6. Provision for defect liability

A provision is recognized for expected claims from customers for roads constructed by the Company. The Company, as per

terms of the road construction agreement, is liable to repair all defects in road constructed by it for a period of 6 to 12 months

from the date of completion of the construction. Provision for defect liability is recognized based on past experience of level

of repairs. Assumption used to calculate the provision for defect liability was based on road projects under execution..

7. Sundry debtors and Loans and advances

Sundry debtors and Loans and advances as at 31

March 2011 include claims aggregating to

` 2,599,137,075 (31 March 2010: ` 1,716,376,422)

and ̀ 258,755,868 respectively (31 March 2010: ̀ Nil)

respectively including a sum of ` 941,460,652 (31

March 2010: ` 787,691,868) recognized as income

during the current year. The Company has preferred

such claims based on the terms and conditions

implicit in the respective contract and lodged with

concerned authorities, which is pending settlement.

Since the claims being technical in nature and are the

subject matter of arbitration, the Company has

obtained a legal opinion on the recoverability of such

claims from an independent counsel. On the basis of

such assessment, management is of the opinion that

the claims are tenable and there exist no uncertainty

as to ultimate collection.

8. Retirement benefits

Disclosures related to defined contribution plan

Provident fund contribution recognized as expense in the

Profit and Loss Account ` 13,183,312 (31 March 2010:

` 14,115,297).

Disclosures related to defined benefit plan

The Company has a defined benefit gratuity plan. Every

employee who has completed five years or more of

continuous service gets a gratuity on retirement at 15

days last drawn salary for each completed year of

service. The scheme is funded with an insurance

company in the form of a qualifying insurance policy.



For the year ended


Current service cost 6,407,325 5,721,864

Interest cost on benefit obligation 3,158,646 1,963,862

Expected return on plan assets (3,337,980) (2,433,266)

Past service cost (vested benefits) - 5,238,256

Net actuarial loss / (gains) 2,606,325 3,677,196

Net expense 8,834,316 14,167,912

Actual return on plan assets 3,352,983 1,840,739

Net employee benefit expense (recognised in employee cost)

As at 31 March


Defined benefit obligation 51,150,204 40,003,255

Fair value of plan assets 41,843,742 33,681,782

Provision for gratuity (net) 9,306,462 6,321,473

Details of provision for gratuity

As at 31 March


Opening defined benefit obligation 40,003,255 25,101,935

Interest cost 3,158,646 1,963,862


Past service cost - 5,238,256

Benefits paid (1,040,350) (1,107,331)

Actuarial loss on obligation 2,621,328 3,084,669

Closing defined obligation 51,150,204 40,003,255

Changes in the present value of the defined benefit obligation for gratuity

As at 31 March


Opening fair value of plan assets 33,681,782 20,770,104

Expected return 3,337,980 2,433,266

Contributions by employer 5,849,327 12,178,270

Benefits paid (1,040,350) (1,107,331)

Actuarial losses / (gains) 15,003 (592,527)

Closing fair value of plan assets 41,843,742 33,681,782

Changes in the fair value of plan assets




5. Secured loans



related to the project. In respect of other term loans






company.


hypothecation of the underlying fixed assets.

l All secured loans are also secured by way of personal

guarantees of the Chairman and Managing Director

of the Company.

For the year ended


Opening balance 12,500,000 -

Additions during the year 4,894,356 12,500,000

Amounts used during the year 4,894,356 -

Closing balance 12,500,000 12,500,000

6. Provision for defect liability

A provision is recognized for expected claims from customers for roads constructed by the Company. The Company, as per

terms of the road construction agreement, is liable to repair all defects in road constructed by it for a period of 6 to 12 months

from the date of completion of the construction. Provision for defect liability is recognized based on past experience of level

of repairs. Assumption used to calculate the provision for defect liability was based on road projects under execution..

7. Sundry debtors and Loans and advances

Sundry debtors and Loans and advances as at 31

March 2011 include claims aggregating to

` 2,599,137,075 (31 March 2010: ` 1,716,376,422)

and ̀ 258,755,868 respectively (31 March 2010: ̀ Nil)

respectively including a sum of ` 941,460,652 (31

March 2010: ` 787,691,868) recognized as income

during the current year. The Company has preferred

such claims based on the terms and conditions

implicit in the respective contract and lodged with

concerned authorities, which is pending settlement.

Since the claims being technical in nature and are the

subject matter of arbitration, the Company has

obtained a legal opinion on the recoverability of such

claims from an independent counsel. On the basis of

such assessment, management is of the opinion that

the claims are tenable and there exist no uncertainty

as to ultimate collection.




Profit and Loss Account ` 13,183,312 (31 March 2010:

` 14,115,297).




continuous service gets a gratuity on retirement at 15

days last drawn salary for each completed year of

service. The scheme is funded with an insurance

company in the form of a qualifying insurance policy.



For the year ended





Past service cost (vested benefits) - 5,238,256

Net actuarial loss / (gains) 2,606,325 3,677,196

Net expense 8,834,316 14,167,912


Net employee benefit expense (recognised in employee cost)

As at 31 March




Provision for gratuity (net) 9,306,462 6,321,473


As at 31 March



Interest cost 3,158,646 1,963,862


Past service cost - 5,238,256

Benefits paid (1,040,350) (1,107,331)

Actuarial loss on obligation 2,621,328 3,084,669



As at 31 March





Benefits paid (1,040,350) (1,107,331)

Actuarial losses / (gains) 15,003 (592,527)







Discount rate (p.a) 8.00% 8.00%

Increase in compensation cost 6.00% 6.00%

Employee turnover 5.00% 5.00%

Expected return on plan assets (p.a) 9.25% 8.00%

The principal assumptions used in determining gratuity obligations for the Company’s plans are shown below:

The estimates of future salary increases, considered in actuarial valuation, take account of inflation,seniority, promotion and other relevant factors, such as supply and demand in the employment market


Amounts for the current and previous years are as follows:

Defined benefit obligation 51,150,204 40,003,255 25,101,935 20,210,000

Plan assets 41,843,742 33,681,782 20,770,104 12,123,066

Surplus/(deficit) (9,306,462) (6,321,473) (4,331,831) (8,086,934)

Experience adjustments on

plan liabilities (2,621,328) (3,084,669) 1,052,977 (3,797,403)


plan assets 15,003 (592,527) (319,163) (551,096)

20102011

2011 2010

Name of the Party

9. Loans and advances Loans and advances due from companies under the same management:

Krishna Institute of Medical Sciences Limited - 1,476,229 1,476,229 2,302,765

Aishu Casting Limited 3,366,214 19,886,379 19,886,379 26,949,560

Bollineni Developers Limited 513,038 618,723,876 618,723,876 618,723,876

Bollineni Casting and Steels Ltd 6,629,308 7,615,055 7,978,846 10,560,426

Aishu Projects Limited 150,060,086 139,370,086 150,060,086 139,370,086

Simhapuri Expressway Limited 4,247,617 - 4,247,617 -

Mokama–Munger Highway Ltd 112,006 - 112,006 -

BSCPL Godhra Tollways Ltd 1,146,209 - 2,905,773 -

BSCPL Realty Limited - 664,321 664,321 664,321

BSCPL Infra Projects Limited 20,300 - 20,300 -

BSC-C&C Kurali Toll Road Ltd 280,439 275,309 280,439 275,309

2011 2010

As at 31 MarchMaximum amount

outstanding at any timeduring the year ended



10. Disclosure under AS 7 “Construction Contracts”

As at 31 March


Contract revenue from construction activity recognized for the year 3,504,813,892 6,886,899,832

Construction work in progress 395,151,221 442,150,709

Contract cost incurred and recognised profits (less recognised losses) 16,021,527,742 16,909,853,354

for contracts in progress up to the reporting date

Advances received for contracts in progress 1,732,518,915 159,169,243

Amount of retention for contracts in progress 210,832,513 468,967,471

Gross amount due from customers for contract work 395,151,221 442,150,709

11. Managerial remuneration

the directors of the Company is included under Schedule 19 ‘Personnel Expenses’. The above do not include provision for

gratuity, as the same is actuarially determined for the Company as a whole.

Remuneration in the form of salaries and other allowances amounting to ̀ 41,100,000 (31 March 2010: ̀ 39,300,000) paid to





Discount rate (p.a) 8.00% 8.00%

Increase in compensation cost 6.00% 6.00%

Employee turnover 5.00% 5.00%



The estimates of future salary increases, considered in actuarial valuation, take account of inflation,seniority, promotion and other relevant factors, such as supply and demand in the employment market


Amounts for the current and previous years are as follows:

Defined benefit obligation 51,150,204 40,003,255 25,101,935 20,210,000

Plan assets 41,843,742 33,681,782 20,770,104 12,123,066

Surplus/(deficit) (9,306,462) (6,321,473) (4,331,831) (8,086,934)


plan liabilities (2,621,328) (3,084,669) 1,052,977 (3,797,403)


plan assets 15,003 (592,527) (319,163) (551,096)

20102011

2011 2010

Name of the Party

9. Loans and advances Loans and advances due from companies under the same management:

Krishna Institute of Medical Sciences Limited - 1,476,229 1,476,229 2,302,765

Aishu Casting Limited 3,366,214 19,886,379 19,886,379 26,949,560

Bollineni Developers Limited 513,038 618,723,876 618,723,876 618,723,876

Bollineni Casting and Steels Ltd 6,629,308 7,615,055 7,978,846 10,560,426

Aishu Projects Limited 150,060,086 139,370,086 150,060,086 139,370,086

Simhapuri Expressway Limited 4,247,617 - 4,247,617 -

Mokama–Munger Highway Ltd 112,006 - 112,006 -

BSCPL Godhra Tollways Ltd 1,146,209 - 2,905,773 -

BSCPL Realty Limited - 664,321 664,321 664,321

BSCPL Infra Projects Limited 20,300 - 20,300 -

BSC-C&C Kurali Toll Road Ltd 280,439 275,309 280,439 275,309

2011 2010

As at 31 MarchMaximum amount

outstanding at any timeduring the year ended



10. Disclosure under AS 7 “Construction Contracts”

As at 31 March


Contract revenue from construction activity recognized for the year 3,504,813,892 6,886,899,832

Construction work in progress 395,151,221 442,150,709



Advances received for contracts in progress 1,732,518,915 159,169,243


Gross amount due from customers for contract work 395,151,221 442,150,709




Remuneration in the form of salaries and other allowances amounting to ̀ 41,100,000 (31 March 2010: ̀ 39,300,000) paid to



12. Related party transactions

a. Names of related parties and description of relationship


Nature of relationship Name of related parties

1. BSCPL International FZE

2. BSCPL Realty Limited

3. BSCPL Infra Projects Limited

1. BSCPL Godhra Tollways Limited

2. BSC-C&C Kurali Toll Road Limited

1. Green Desert Ventures Limited, Dubai

2. Green Desert Ventures Inc., Bahamas

3. Progressive International Holdings Inc.,British Virgin Islands

1 BSC – C&C (JV)

2. BSC-RBM-PATI (JV)

3. Madhava Hytech – BSCPL (JV)

4. HES-BSCPL (JV)

5. SOMA –BSCPL (JV)

6. BSCPL- SCL (JV)

7. SCL-BSCPL (JV)

8. BSC-KGLC (JV)

9. CR18G-BSCPL (JV)

10. BSC-C&C(JV) Nepal Private Limited

11. BSCPL-KGLC Airport JV

12. BSCPL- KMC- Oriental JV

13. Mokama – Munger Highway Limited

14. North Bihar Highway Limited

1. Simhapuri Expressway Limited

1. Bollineni Castings and Steels Limited

2. Bollineni Developers Limited

3. Aishu Castings Limited

4. Aishu Projects Limited

5. Amar Biotech Limited

6. Krishna Institute of Medical Sciences Limited (KIMS)

7. Bollineni Family Trust

1. B. Krishnaiah, Chairman

2. B. Seenaiah, Managing Director

3. K. Thanu Pillai, Whole-time Director

4. T. Dayakar, Whole-time Director

5. U. Jayakodi, Whole-time Director

1. B. Sujatha (Wife of Chairman)

2. B. Bhaskar Rao (Brother of Chairman)

3. B. Sandeep (Son of Managing Director)

4. B. Yamuna (Wife of Managing Director)

5. J. Bhaskaran (Son of Whole-time Director)

Subsidiaries

Subsidiaries of BSCPL Infra Projects Limited

Joint ventures of BSCPL International FZE

Joint Ventures (JV)

Joint venture of BSCPL Infra Projects Limited

Companies owned by or where significantinfluence exercised by Key ManagementPersonnel (KMP) or their relatives

Key Management Personnel

Relatives of Key Management Personnel



b. Transactions with the related parties during the year

For the year ended


A. Transactions with subsidiaries1. BSCPL International FZE

a. Share application money 51,720,969 344,025,834

2. BSCPL Infra Projects Limited a. Share application money 757,129,603 30,883,471b. Advances during the year 20,300 -c. Equity 845,498,402 -

3. BSCPL Godhra Tollways Limiteda. Advances during the year 1,146,209 -b. Revenue recognized during the year 520,794,389 -c. Revenue deferred during the year 437,183,119 -d. Mobilization advance received 655,000,000 -e. Material advance 182,818,914 -

4. BSC-C&C Kurali Toll Road Limiteda. Advances during the year 5,130 275,309

5. BSCPL Realty Limiteda. Investments and advances Written off 660,562 -b. Loans and advances (503,819) 11,030

B. Transactions with joint venture entities1. Mokama – Munger Highway Limited

a. Advances during the year 112,006 -b. Investment in equity shares 23,400,000 -c. Share application money 130,000 -

2. North Bihar Highway Limiteda. Investments in equity shares 130,000 -

3. BSC – C&C (JV)a. Interest free unsecured loans and advances Made 1,125,803,898 (16,568,810)b. Reimbursable expenses incurred by the Company 49,614,505 48,851,901c. Share of profit 444,795,434 318,430,517

4. BSC-RBM-PATIa. Interest free unsecured loans and advances made (80,719,498) 312,731b. Reimbursable expenses incurred by the Company 23,588,137 1,043,277c. Share of profit 44,080,839 (10,150,043)

5. SOMA-BSCPL (JV)a. Interest free unsecured loans and advances taken (4,212,163) (11,001,883)b. Share of profit 812,289 3,052,709

6. BSCPL - SCL (JV)a. Interest free unsecured loans and advances 7,744,686 81,982,000b. Reimbursable expenses incurred by the Company 6,324,896 49,178,487c. Share of profit 2,639,277 3,752,769

7. SCL-BSCPL (JV)a. Interest free unsecured loans and advances made 139,762,164 215,117,894b. Reimbursable expenses incurred by the Company (3,273,977) 4,658,488c. Income from equipment hire charges 64,410,775 38,610,966d. Share of profit 21,056,748 10,423,702




a. Names of related parties and description of relationship



1. BSCPL International FZE

2. BSCPL Realty Limited

3. BSCPL Infra Projects Limited

1. BSCPL Godhra Tollways Limited

2. BSC-C&C Kurali Toll Road Limited

1. Green Desert Ventures Limited, Dubai

2. Green Desert Ventures Inc., Bahamas

3. Progressive International Holdings Inc.,British Virgin Islands

1 BSC – C&C (JV)

2. BSC-RBM-PATI (JV)

3. Madhava Hytech – BSCPL (JV)

4. HES-BSCPL (JV)

5. SOMA –BSCPL (JV)

6. BSCPL- SCL (JV)

7. SCL-BSCPL (JV)

8. BSC-KGLC (JV)

9. CR18G-BSCPL (JV)

10. BSC-C&C(JV) Nepal Private Limited

11. BSCPL-KGLC Airport JV

12. BSCPL- KMC- Oriental JV

13. Mokama – Munger Highway Limited

14. North Bihar Highway Limited

1. Simhapuri Expressway Limited

1. Bollineni Castings and Steels Limited




5. Amar Biotech Limited

6. Krishna Institute of Medical Sciences Limited (KIMS)


1. B. Krishnaiah, Chairman

2. B. Seenaiah, Managing Director

3. K. Thanu Pillai, Whole-time Director

4. T. Dayakar, Whole-time Director

5. U. Jayakodi, Whole-time Director

1. B. Sujatha (Wife of Chairman)

2. B. Bhaskar Rao (Brother of Chairman)

3. B. Sandeep (Son of Managing Director)

4. B. Yamuna (Wife of Managing Director)

5. J. Bhaskaran (Son of Whole-time Director)

Subsidiaries

Subsidiaries of BSCPL Infra Projects Limited

Joint ventures of BSCPL International FZE

Joint Ventures (JV)

Joint venture of BSCPL Infra Projects Limited

Companies owned by or where significantinfluence exercised by Key ManagementPersonnel (KMP) or their relatives

Key Management Personnel





For the year ended


A. Transactions with subsidiaries1. BSCPL International FZE

a. Share application money 51,720,969 344,025,834

2. BSCPL Infra Projects Limited a. Share application money 757,129,603 30,883,471b. Advances during the year 20,300 -c. Equity 845,498,402 -

3. BSCPL Godhra Tollways Limiteda. Advances during the year 1,146,209 -b. Revenue recognized during the year 520,794,389 -c. Revenue deferred during the year 437,183,119 -d. Mobilization advance received 655,000,000 -e. Material advance 182,818,914 -

4. BSC-C&C Kurali Toll Road Limiteda. Advances during the year 5,130 275,309

5. BSCPL Realty Limiteda. Investments and advances Written off 660,562 -b. Loans and advances (503,819) 11,030

B. Transactions with joint venture entities1. Mokama – Munger Highway Limited

a. Advances during the year 112,006 -b. Investment in equity shares 23,400,000 -c. Share application money 130,000 -

2. North Bihar Highway Limiteda. Investments in equity shares 130,000 -

3. BSC – C&C (JV)a. Interest free unsecured loans and advances Made 1,125,803,898 (16,568,810)b. Reimbursable expenses incurred by the Company 49,614,505 48,851,901c. Share of profit 444,795,434 318,430,517

4. BSC-RBM-PATIa. Interest free unsecured loans and advances made (80,719,498) 312,731b. Reimbursable expenses incurred by the Company 23,588,137 1,043,277c. Share of profit 44,080,839 (10,150,043)

5. SOMA-BSCPL (JV)a. Interest free unsecured loans and advances taken (4,212,163) (11,001,883)b. Share of profit 812,289 3,052,709

6. BSCPL - SCL (JV)a. Interest free unsecured loans and advances 7,744,686 81,982,000b. Reimbursable expenses incurred by the Company 6,324,896 49,178,487c. Share of profit 2,639,277 3,752,769

7. SCL-BSCPL (JV)a. Interest free unsecured loans and advances made 139,762,164 215,117,894b. Reimbursable expenses incurred by the Company (3,273,977) 4,658,488c. Income from equipment hire charges 64,410,775 38,610,966d. Share of profit 21,056,748 10,423,702



For the year ended


8. CR-18G-BSCPL(JV)a. Interest free unsecured loans and advances made - 1,100,000b. Reimbursable expenses incurred by the Company - 9,091,966c. Share of profit 3,586,905 2,550,322

9. BSC – KGLC (JV)a. Reimbursable expenses incurred by the Company - 3,483,631b. Share of loss 26,219 -

10. BSC-KGLC Airport(JV)a. Reimbursable expenses incurred by the Company (4,417,611) 6,793,202b. Interest free unsecured loans and advances taken (24,904,136) (65,768,420)c. Purchases 315,793 11,653,569d. Income from equipment hire charges 40,000,000 80,000,000e. Revenue from Chennai airport subcontract work 75,343,948 -

f. Share of profit 54,611,657 145,711,395

11. Simhapuri Expressway Limiteda. Reimbursable expenses incurred by the company 4,247,617 -b. Mobilization advance 637,500,001 -

C. Transactions with enterprises over which KMP ortheir relatives exercise significant influence1. Bollineni Castings and Steels Limited

a. Expenses reimbursable 525,507 3,937b. Trade advances 205,470 109,711

c. Purchases 1,865,715 730,350

2. Bollineni Developers Limiteda. Interest on trade advances - 47,395,800b. Expenses reimbursable 505,038 46,593c. Purchase of land 22,500,000 -

3. Aishu Castings Limiteda. Purchases 5,472,229 4,516,867b. Trade advances (6,626,088) 23,600,000

4. Aishu Projects Limiteda. Trade advances - (2,000,000)b. Interest on loans and advances 15,000,000 13,500,000c. Sale of investments 1,130,000 -

5. BSCPL Nepal Private Limiteda. Interest free unsecured loan - (2,700,000)

6. Bollineni Family Trusta. Rent 135,840 411,838

D. Transactions with KMP1. B. Krishnaiah

a. Managerial remuneration 18,000,000 18,000,000b. Loan taken 30,000,000 111,800,000c. Interest on loan taken - 1,384,397d. Personnel guarantees against loans 7,699,921,784 6,246,889,248




For the year ended


2. B. Seenaiaha. Managerial remuneration 12,000,000 12,000,000b. Personnel guarantees against loans 7,699,921,784 6,246,889,248

3. T. Dayakara. Managerial remuneration 4,200,000 3,600,000

4. U. Jayakodia. Managerial remuneration 4,200,000 3,600,000

5. K. Thanu Pillaia. Managerial remuneration 2,700,000 2,100,000

E. Transactions with relatives of KMPs1. B. Sujatha

a. Rent 960,000 1,080,000

2. B. Yamunaa. Rent 960,000 1,080,000

3. B. Sandeepa. Salaries - 2,000,000

4. J. Bhaskaran

a. Rent 120,000 120,000

c. Balance outstanding at the end of the year

As at 31 March

2011 2010Amounts receivable / (payable)

BSCPL Realty Limited - 664,321

BSCPL Infra Projects Limited 20,300 -

BSCPL Godhra Tollways Limited (478,665,303) -

BSC - C&C Kurali Toll Road Limited 280,439 275,309

Simhapuri Expressway Limited (633,252,384) -

Mokama -Munger Highway Limited 112,006 -

BSC – C&C 3,507,689,191 1,562,987,816

BSC-RBM-PATI 36,841,593 59,983,809

HES-BSCPL 196,650 196,650

SOMA –BSCPL 10,284,638 10,631,803

BSCPL- SCL 290,514,775 265,905,458

SCL-BSCPL 745,566,721 462,899,725

BSC-KGLC 3,587,085 (163,171,008)

CR18G-BSCPL 27,489,597 68,522,084

BSC-C&C JV Nepal Private Limited 20,195,338 20,195,338

BSC-KGLC Airport JV 155,223,993 78,391,586



For the year ended


8. CR-18G-BSCPL(JV)a. Interest free unsecured loans and advances made - 1,100,000b. Reimbursable expenses incurred by the Company - 9,091,966c. Share of profit 3,586,905 2,550,322

9. BSC – KGLC (JV)a. Reimbursable expenses incurred by the Company - 3,483,631b. Share of loss 26,219 -

10. BSC-KGLC Airport(JV)a. Reimbursable expenses incurred by the Company (4,417,611) 6,793,202b. Interest free unsecured loans and advances taken (24,904,136) (65,768,420)c. Purchases 315,793 11,653,569d. Income from equipment hire charges 40,000,000 80,000,000e. Revenue from Chennai airport subcontract work 75,343,948 -

f. Share of profit 54,611,657 145,711,395

11. Simhapuri Expressway Limiteda. Reimbursable expenses incurred by the company 4,247,617 -b. Mobilization advance 637,500,001 -

C. Transactions with enterprises over which KMP ortheir relatives exercise significant influence1. Bollineni Castings and Steels Limited

a. Expenses reimbursable 525,507 3,937b. Trade advances 205,470 109,711

c. Purchases 1,865,715 730,350

2. Bollineni Developers Limiteda. Interest on trade advances - 47,395,800b. Expenses reimbursable 505,038 46,593c. Purchase of land 22,500,000 -

3. Aishu Castings Limiteda. Purchases 5,472,229 4,516,867b. Trade advances (6,626,088) 23,600,000

4. Aishu Projects Limiteda. Trade advances - (2,000,000)b. Interest on loans and advances 15,000,000 13,500,000c. Sale of investments 1,130,000 -

5. BSCPL Nepal Private Limiteda. Interest free unsecured loan - (2,700,000)

6. Bollineni Family Trusta. Rent 135,840 411,838

D. Transactions with KMP1. B. Krishnaiah

a. Managerial remuneration 18,000,000 18,000,000b. Loan taken 30,000,000 111,800,000c. Interest on loan taken - 1,384,397d. Personnel guarantees against loans 7,699,921,784 6,246,889,248




For the year ended


2. B. Seenaiaha. Managerial remuneration 12,000,000 12,000,000b. Personnel guarantees against loans 7,699,921,784 6,246,889,248

3. T. Dayakara. Managerial remuneration 4,200,000 3,600,000

4. U. Jayakodia. Managerial remuneration 4,200,000 3,600,000

5. K. Thanu Pillaia. Managerial remuneration 2,700,000 2,100,000

E. Transactions with relatives of KMPs1. B. Sujatha

a. Rent 960,000 1,080,000

2. B. Yamunaa. Rent 960,000 1,080,000

3. B. Sandeepa. Salaries - 2,000,000

4. J. Bhaskaran

a. Rent 120,000 120,000


As at 31 March



BSCPL Infra Projects Limited 20,300 -

BSCPL Godhra Tollways Limited (478,665,303) -

BSC - C&C Kurali Toll Road Limited 280,439 275,309

Simhapuri Expressway Limited (633,252,384) -

Mokama -Munger Highway Limited 112,006 -

BSC – C&C 3,507,689,191 1,562,987,816

BSC-RBM-PATI 36,841,593 59,983,809

HES-BSCPL 196,650 196,650

SOMA –BSCPL 10,284,638 10,631,803

BSCPL- SCL 290,514,775 265,905,458

SCL-BSCPL 745,566,721 462,899,725

BSC-KGLC 3,587,085 (163,171,008)

CR18G-BSCPL 27,489,597 68,522,084

BSC-C&C JV Nepal Private Limited 20,195,338 20,195,338

BSC-KGLC Airport JV 155,223,993 78,391,586




As at 31 March


Bollineni Castings and Steel Limited 6,629,308 7,615,055

Bollineni Developers Limited 513,038 618,723,876

Aishu Castings Limited 3,366,214 19,886,379

Aishu Projects Limited 150,060,086 139,370,086

BSCPL Nepal Private Limited - 3,391,793

Amar Biotech Limited - (252,488)

KIMS (1,053,799) 1,476,229

K.Thanu Pillai - 41,412

U. Jayakodi - 57,312

T. Dayakar (99,950) 273,125

B. Sujatha (216,000) (251,305)

B. Yamuna (216,000) (251,305)

B. Sandeep - 810,405

For the year ended


Contract revenue - 59,725,940

Other income (25,433,214) -

Contract expenses 1,309,661 34,270,431

Personnel expenses (52,887) 5,927,779

Material Consumed 744,622 12,539,553

Indirect taxes 2,412,936 9,754,618

Finance cost 3,351,029 6,361,607

Administrative and selling expenses 7,782,583 -

Depreciation - (159,665,767)

Others (2,522,422) (261,745)

Total (12,407,694) (31,347,584)

13. Prior period items

14. Investment in wholly owned subsidiary

As at 31 March 2011 the Company has invested amounts aggregating to 548,817,430 (31 March 2010: 497,096,461) in

its wholly owned subsidiary BSCPL International FZE (“BFZE”), for development of a residential apartment in Dubai through

a joint venture with a local construction company. The construction activities have been temporarily suspended due to

current market conditions. Based on an independent evaluation of current economic and market conditions, the

management believes that there are convincing evidences of overall improvement in the market and realization thereof.

Further, the Company is committed to provide continued support to complete the project and recover its investment.

` `




15. Loans and advances as at 31 March 2011 include certain duty drawback claims aggregating to 155,512,244 (31

March 2010: ̀ 210,831,204) including a sum of ̀ 10,227,875 (31 March 2010: ̀ 130,887,105) recognised as income

during the current year. Such claims represent refunds of excise duty paid on purchase of inputs for certain projects

which are funded by notified institutions under the Central Excise Act, 1944. During the year, the Company has

received a correspondence from the department of central excise and customs clarifying that certain input materials

do not qualify for refund of excise duty under the duty draw back scheme. The Company, based on past experience

and opinion of an independent legal counsel, is confident of realizing the claims outstanding as on 31 March 2011.

16. Segment information is presented on the basis of the consolidated financial statements of the Company.

17. CIF Value of imports

`


For the year ended


Capital goods 26,092,382 3,068,779

Raw material 278,143,881 188,974,222

Total 304,236,263 192,043,001

18. Disclosure regarding derivative instruments

a. The following derivative contract is outstanding as at 31 March 2011( as at 31 March 2010: $6,453,435)

Notional amountParticulars

USD/INR Cross Currency Swap Hedge against exposure to principal and

interest outflow on foreign currency loan.

$ 4,425,591

Purpose

As at 31 March


Branch balance (net) 308,108,886 394,510,756

Secured loans 40,051,553 59,725,043

Loans and advances 20,195,338 20,195,338

b. Particulars of un-hedged foreign currency exposure as at 31 March 2011 are detailed below at the exchange rate

prevailing at the year end.




As at 31 March








KIMS (1,053,799) 1,476,229


U. Jayakodi - 57,312

T. Dayakar (99,950) 273,125

B. Sujatha (216,000) (251,305)

B. Yamuna (216,000) (251,305)


For the year ended


Contract revenue - 59,725,940

Other income (25,433,214) -

Contract expenses 1,309,661 34,270,431

Personnel expenses (52,887) 5,927,779

Material Consumed 744,622 12,539,553

Indirect taxes 2,412,936 9,754,618

Finance cost 3,351,029 6,361,607

Administrative and selling expenses 7,782,583 -

Depreciation - (159,665,767)

Others (2,522,422) (261,745)

Total (12,407,694) (31,347,584)


14. Investment in wholly owned subsidiary

As at 31 March 2011 the Company has invested amounts aggregating to 548,817,430 (31 March 2010: 497,096,461) in

its wholly owned subsidiary BSCPL International FZE (“BFZE”), for development of a residential apartment in Dubai through

a joint venture with a local construction company. The construction activities have been temporarily suspended due to

current market conditions. Based on an independent evaluation of current economic and market conditions, the



` `




15. Loans and advances as at 31 March 2011 include certain duty drawback claims aggregating to 155,512,244 (31

March 2010: ̀ 210,831,204) including a sum of ̀ 10,227,875 (31 March 2010: ̀ 130,887,105) recognised as income

during the current year. Such claims represent refunds of excise duty paid on purchase of inputs for certain projects

which are funded by notified institutions under the Central Excise Act, 1944. During the year, the Company has

received a correspondence from the department of central excise and customs clarifying that certain input materials

do not qualify for refund of excise duty under the duty draw back scheme. The Company, based on past experience

and opinion of an independent legal counsel, is confident of realizing the claims outstanding as on 31 March 2011.

16. Segment information is presented on the basis of the consolidated financial statements of the Company.

17. CIF Value of imports

`


For the year ended


Capital goods 26,092,382 3,068,779

Raw material 278,143,881 188,974,222

Total 304,236,263 192,043,001

18. Disclosure regarding derivative instruments

a. The following derivative contract is outstanding as at 31 March 2011( as at 31 March 2010: $6,453,435)

Notional amountParticulars

USD/INR Cross Currency Swap Hedge against exposure to principal and

interest outflow on foreign currency loan.

$ 4,425,591

Purpose

As at 31 March



Secured loans 40,051,553 59,725,043

Loans and advances 20,195,338 20,195,338






For the year ended 31March


Interest paid on foreign currency loans 1,140,069 21,060,537

Traveling expenses 1,176,199 5,690,941

Consumables 1,984,382 48,250,138

Personnel expenses 6,858,388 30,111,737

Quarry expenses 129,593 38,504,629

Administrative expenses 11,962,038 48,801,510

Repairs and maintenance 54,839,841 124,859,564

Site maintenance 203,798 658,452

Transportation 361,187 11,910,485

Total 78,655,495 329,847,993

19. Expenditure in foreign currency (cash basis)



BSC-C&C JV 50 6,855,817,405 3,571,462,560 5,815,788,016 5,084,198,625 286,793,957 444,795,434

6,006,120,910 3,493,805,414 5,128,317,301 4,539,822,988 270,063,798 318,430,516

BSC-RBM-PATI 50 37,667,971 9,324,141 127,368,612 63,657,123 19,630,651 44,080,839 JV 144,174,365 52,769,823 183,568 9,919,377 426,701 (10,162,510)

MADHAVA 50 401,645 401,645 - - - -

HYTECH-BSCPL 1,646,890 1,646,890 - - - -JV

HES-BSCPL JV 50 682,206 675,716 - - - -

682,206 675,716 - - - -

SOMA-BSCPL JV 50 23,391,368 3,655,189 1,189,316 13,788 363,239 812,289

76,984,468 32,070,495 78,487,279 74,065,137 1,369,433 3,052,709

BSCPL-SCL JV 50 463,983,021 334,419,544 148,407,418 144,409,118 1,359,023 2,639,277

475,337,956 403,512,314 56,873,661 51,441,370 1,679,552 3,572,769

SCL-BSCPL JV 35 267,135,119 31,128,294 366,575,283 334,675,953 10,842,583 21,056,748

238,675,474 214,792,695 205,811,704 190,040,604 5,347,398 10,423,702

BSCPL-KGLC JV 60 4,766,050 41,219 15,000 41,218 - (26,219)

6,999,606 2,652,706 - - - -

CR18G-BSC JV 50 295,758,297 292,713,278 129,784,244 123,988,631 2,208,708 3,586,905

313,193,346 290,390,654 92,313,630 88,192,898 1,570,411 2,550,322

BSC-C&C (JV) 50 123,045,718 14,590,537 37,537,043 53,176,132 (41,802) (15,597,287)

Nepal Private Ltd. 143,663,275 88,054,367 178,715,275 176,865,841 301,464 1,547,970

BSCPL-KGLC 90 211,480,084 100,020,215 791,371,652 710,381,554 26,378,441 54,611,657

Airport JV 462,798,051 307,206,912 1,535,349,938 1,305,342,477 84,296,066 145,711,395

North Bihar 26 90,470,507 1,723,688 - - - -Highway Limited - - - - - -

Mokama Munger 26 92,189,349 638,175 - - - -Highway Limited - - - - - -

20. Interest in Joint Ventures

The Company’s financial interest in jointly controlled entities is as under (Previous year figures are disclosed in italics):

Name of the JV % Assets Liabilities Income Expenditure Tax Profit/ (loss)

after tax

Notes:

a. As at 31 March 2011, all joint ventures have contingent liabilities and capital commitments aggregating to 70,322,500 (31

March 2010: ̀ 40,910,887) and ̀ 4,789,812,000 (31 March 2010: ̀ Nil) respectively.

b. All the aforesaid entities are incorporated in India other than BSC-C&C JV Nepal Private Limited which is incorporated in

Nepal.

c. The Company has formed a joint venture KMC-Oriental-BSCPL JV in India, which is in the nature of jointly controlled

operations. The Company’s share in assets, liabilities, income and expenditure are duly accounted for in the accounts of the

Company in accordance with such division of work and therefore does not require separate disclosures. However, joint

venture partners are jointly and severally liable to clients for any claims in this project.

`




For the year ended 31March


Interest paid on foreign currency loans 1,140,069 21,060,537

Traveling expenses 1,176,199 5,690,941

Consumables 1,984,382 48,250,138


Quarry expenses 129,593 38,504,629

Administrative expenses 11,962,038 48,801,510

Repairs and maintenance 54,839,841 124,859,564

Site maintenance 203,798 658,452

Transportation 361,187 11,910,485

Total 78,655,495 329,847,993

19. Expenditure in foreign currency (cash basis)



BSC-C&C JV 50 6,855,817,405 3,571,462,560 5,815,788,016 5,084,198,625 286,793,957 444,795,434

6,006,120,910 3,493,805,414 5,128,317,301 4,539,822,988 270,063,798 318,430,516

BSC-RBM-PATI 50 37,667,971 9,324,141 127,368,612 63,657,123 19,630,651 44,080,839 JV 144,174,365 52,769,823 183,568 9,919,377 426,701 (10,162,510)

MADHAVA 50 401,645 401,645 - - - -

HYTECH-BSCPL 1,646,890 1,646,890 - - - -JV

HES-BSCPL JV 50 682,206 675,716 - - - -

682,206 675,716 - - - -

SOMA-BSCPL JV 50 23,391,368 3,655,189 1,189,316 13,788 363,239 812,289

76,984,468 32,070,495 78,487,279 74,065,137 1,369,433 3,052,709

BSCPL-SCL JV 50 463,983,021 334,419,544 148,407,418 144,409,118 1,359,023 2,639,277

475,337,956 403,512,314 56,873,661 51,441,370 1,679,552 3,572,769

SCL-BSCPL JV 35 267,135,119 31,128,294 366,575,283 334,675,953 10,842,583 21,056,748

238,675,474 214,792,695 205,811,704 190,040,604 5,347,398 10,423,702

BSCPL-KGLC JV 60 4,766,050 41,219 15,000 41,218 - (26,219)

6,999,606 2,652,706 - - - -

CR18G-BSC JV 50 295,758,297 292,713,278 129,784,244 123,988,631 2,208,708 3,586,905

313,193,346 290,390,654 92,313,630 88,192,898 1,570,411 2,550,322

BSC-C&C (JV) 50 123,045,718 14,590,537 37,537,043 53,176,132 (41,802) (15,597,287)

Nepal Private Ltd. 143,663,275 88,054,367 178,715,275 176,865,841 301,464 1,547,970

BSCPL-KGLC 90 211,480,084 100,020,215 791,371,652 710,381,554 26,378,441 54,611,657

Airport JV 462,798,051 307,206,912 1,535,349,938 1,305,342,477 84,296,066 145,711,395

North Bihar 26 90,470,507 1,723,688 - - - -Highway Limited - - - - - -

Mokama Munger 26 92,189,349 638,175 - - - -Highway Limited - - - - - -

20. Interest in Joint Ventures

The Company’s financial interest in jointly controlled entities is as under (Previous year figures are disclosed in italics):

Name of the JV % Assets Liabilities Income Expenditure Tax Profit/ (loss)

after tax

Notes:

a. As at 31 March 2011, all joint ventures have contingent liabilities and capital commitments aggregating to 70,322,500 (31

March 2010: ̀ 40,910,887) and ̀ 4,789,812,000 (31 March 2010: ̀ Nil) respectively.

b. All the aforesaid entities are incorporated in India other than BSC-C&C JV Nepal Private Limited which is incorporated in

Nepal.

c. The Company has formed a joint venture KMC-Oriental-BSCPL JV in India, which is in the nature of jointly controlled

operations. The Company’s share in assets, liabilities, income and expenditure are duly accounted for in the accounts of the

Company in accordance with such division of work and therefore does not require separate disclosures. However, joint

venture partners are jointly and severally liable to clients for any claims in this project.

`




23. Auditors’ remuneration

For the year ended


Statutory audit 1,900,000 1,900,000

Audit of consolidated financial statements 600,000 600,000

Other services 200,000 335,020

Total 2,700,000 2,835,020

For and on behalf of the Board of Directors of

BSCPL Infrastructure Limited

B. Krishnaiah B. Seenaiah A.V.B.R. Narasimham B. S. Bhaskar

Chairman Managing Director Chief Financial Officer Company Secretary

31 March 2011Particulars

22. Imported and Indigenous materials consumed

31 March 2010

% Value % Value

Imported 18 278,143,881 6 188,974,222

Indigenous 82 1,279,559,273 94 3,051,815,321

Total 100 1,557,703,154 100 3,240,789,543

% Value % Value

21. Earnings per share

Reconciliation of equity shares used in computation of basic and diluted earnings per share:

For the year ended


Weighted average number of equity shares during the period 12,428,668 12,428,668

Add: Bonus shares 12,428,668 12,428,668

Weighted average number of equity shares in calculating basic and diluted EPS 24,857,336 24,857,336

24. Earnings in foreign currency (accrual basis)

For the year ended


Sale of metal 127,556,700 148,212,218

Other income 3,777,302 11,469,559

Total 131,334,002 159,681,777

25. Based on information available with the Company, there are no suppliers who are registered as micro and small enterprises under “The Micro, Small and Medium Enterprises Development Act, 2006 as at 31 March 2011.

26. Previous year’s figures have been regrouped / rearranged to conform to those of the current year.

Place: Hyderabad

Date: 22 August 2011


Cash Flow Statement for the year ended 31 March 2011All amounts in Indian Rupees unless otherwise stated

As at 31 March


A. Cash flows from operating activities

Profit/(loss) before tax and share in profits of integrated joint ventures (80,917,288) 520,900,437

Adjustments for:

Loans and advances written off 44,671,421 1,080,107

Depreciation 455,215,720 287,079,070

Interest expense 926,217,878 670,372,660

Interest income (148,868,719) (121,017,150)

Profit on sale of investments (1,015,774) -

Dimunition in value of investments 1,062,525 -

Liabilities no longer required written back (35,978,245) -

Provision for diminution in value of long term investments - 6,000,000

Fixed assets written off - 10,896,216

Reversal of diminution in value of current investments - (1,301,079)

Operating profit before working capital changes 1,160,387,518 1,374,010,262

Increase in inventories (1,139,390,778) (267,036,017)

Decrease in loans and advances 486,540,100 98,587,580

Increase in sundry debtors (537,375,082) (1,067,740,150)

Increase in current liabilities 2,001,723,946 547,268,159

Cash generated from operations 1,971,885,704 685,089,834

Income tax paid (118,649,931) (162,723,692)

Net cash from operating activities 1,853,235,773 522,366,142

B. Cash flows from investing activities

Purchase of fixed asset (467,491,160) (59,150,769)

Sale of fixed asset 16,634,125 -

Sale of investments 1,130,000 -

Investments in subsidiaries and joint ventures (1,677,508,914) (373,248,397)

Loans and advances to subsidiaries and joint ventures, net (1,359,752,856) (249,535,789)

Interest received 318,781,201 63,953,870

Restricted deposits (1,725,898) 95,033,133

Net cash used in investing activities (3,169,933,502) (522,947,952)

C. Cash flows from financing activities

Proceeds from/ (repayment of) secured loans, net 2,157,113,838 (165,221,033)

Proceeds from/ (repayment of) unsecured loans, net 796,126,168 (1,400,263,032)

Proceeds from/ (repayment of) short term borrowings, net (509,371,233) 2,307,031,570

Finance charges (914,664,236) (664,921,944)

Net cash from financing activities 1,529,204,537 76,625,561





For the year ended





Total 2,700,000 2,835,020

For and on behalf of the Board of Directors of

BSCPL Infrastructure Limited

B. Krishnaiah B. Seenaiah A.V.B.R. Narasimham B. S. Bhaskar

Chairman Managing Director Chief Financial Officer Company Secretary

31 March 2011Particulars

22. Imported and Indigenous materials consumed

31 March 2010

% Value % Value

Imported 18 278,143,881 6 188,974,222

Indigenous 82 1,279,559,273 94 3,051,815,321

Total 100 1,557,703,154 100 3,240,789,543

% Value % Value

21. Earnings per share

Reconciliation of equity shares used in computation of basic and diluted earnings per share:

For the year ended


Weighted average number of equity shares during the period 12,428,668 12,428,668

Add: Bonus shares 12,428,668 12,428,668

Weighted average number of equity shares in calculating basic and diluted EPS 24,857,336 24,857,336

24. Earnings in foreign currency (accrual basis)

For the year ended


Sale of metal 127,556,700 148,212,218

Other income 3,777,302 11,469,559

Total 131,334,002 159,681,777

25. Based on information available with the Company, there are no suppliers who are registered as micro and small enterprises under “The Micro, Small and Medium Enterprises Development Act, 2006 as at 31 March 2011.


Place: Hyderabad

Date: 22 August 2011



As at 31 March


A. Cash flows from operating activities

Profit/(loss) before tax and share in profits of integrated joint ventures (80,917,288) 520,900,437

Adjustments for:


Depreciation 455,215,720 287,079,070

Interest expense 926,217,878 670,372,660

Interest income (148,868,719) (121,017,150)

Profit on sale of investments (1,015,774) -

Dimunition in value of investments 1,062,525 -






Increase in inventories (1,139,390,778) (267,036,017)



Increase in current liabilities 2,001,723,946 547,268,159

Cash generated from operations 1,971,885,704 685,089,834

Income tax paid (118,649,931) (162,723,692)

Net cash from operating activities 1,853,235,773 522,366,142


Purchase of fixed asset (467,491,160) (59,150,769)

Sale of fixed asset 16,634,125 -

Sale of investments 1,130,000 -

Investments in subsidiaries and joint ventures (1,677,508,914) (373,248,397)

Loans and advances to subsidiaries and joint ventures, net (1,359,752,856) (249,535,789)



Net cash used in investing activities (3,169,933,502) (522,947,952)


Proceeds from/ (repayment of) secured loans, net 2,157,113,838 (165,221,033)

Proceeds from/ (repayment of) unsecured loans, net 796,126,168 (1,400,263,032)

Proceeds from/ (repayment of) short term borrowings, net (509,371,233) 2,307,031,570

Finance charges (914,664,236) (664,921,944)





As at 31 March


Net increase in cash and cash equivalents (A+B+C) 212,506,808 76,043,751

Cash and cash equivalents at the beginning of the year 251,029,264 174,985,513

Cash and cash equivalents at the end of the year 463,536,072 251,029,264

Notes

1. Cash and cash balance as per Schedule 10 of the financial statements 573,819,055 359,586,349

Less: Fixed deposits considered as restricted cash 110,282,983 108,557,085

463,536,072 251,029,264

2. Profit from integrated jointly controlled entities, considered as non

cash item for the purposes of this cash flow statements.

For and on behalf of the Board of Directors of BSCPL Infrastructure Limited









Place : HyderabadDate : 22 August 2011


This is the cash flow statement referred to in our report of even date.


CONSOLIDATEDFINANCIALS

th13 Annual Report



As at 31 March


Net increase in cash and cash equivalents (A+B+C) 212,506,808 76,043,751



Notes

1. Cash and cash balance as per Schedule 10 of the financial statements 573,819,055 359,586,349

Less: Fixed deposits considered as restricted cash 110,282,983 108,557,085

463,536,072 251,029,264

2. Profit from integrated jointly controlled entities, considered as non

cash item for the purposes of this cash flow statements.












This is the cash flow statement referred to in our report of even date.


CONSOLIDATEDFINANCIALS

th13 Annual Report


auditorS' REPORT

ToThe Board of Directors of BSCPL Infrastructure Limited

1. We have audited the attached Consolidated Balance

Sheet of BSCPL Infrastructure Limited, its subsidiaries

and joint ventures (hereinafter collectively referred to as

the ‘Group’), as at 31 March 2011 and also the

Consolidated Profit and Loss Account and the

Consolidated Cash Flow Statement for the year ended on

the date annexed thereto (collectively referred as the

‘consol idated f inancia l s tatements’ ) . These

Consolidated Financial Statements are the responsibility

of the management and have been prepared by the

management on the basis of separate financial

statements and other financial information regarding

components. Our responsibility is to express an opinion

on these consolidated financial statements based on our

audit.

2. We conducted our audit in accordance with auditing

standards generally accepted in India. Those standards

require that we plan and perform the audit to obtain

reasonable assurance whether the financial statements

are free of material misstatement. An audit includes

examining, on a test basis, evidence supporting the

amounts and disclosures in the financial statements. An

audit also includes assessing the accounting principles

used and significant estimates made by management,

as well as evaluating the overall financial statement

presentation. We believe that our audit provides a

reasonable basis for our opinion.

3. Without qualifying our opinion, we draw attention to:

a. Note 7 on Schedule 23 to the consolidated financial

statements regarding claims amounting to

` 2,857,892,943 (31 March 2010: ` 1,716,376,422)

outstanding as at 31 March 2011, including a sum of

`941,460,652 (31 March 2010: ` 787,691,868)

recognized as income during the current year based

on the terms and conditions implicit in the contract.

The claims being technical in nature and being

subject matter of arbitration, the Group has assessed

the recoverability of these claims based on arbitration

orders received and a legal opinion from an

independent counsel. On the basis of such

assessment, the management is of the opinion that

the claims are tenable and would be realised,

accordingly no adjustments have been made in

these consolidated financial statements.

b. Note 14 on Schedule 23 to the consolidated financial

statements, regarding management’s assessment

of carrying value of real estate under development

aggregating to ` 548,817,430 in a project. On the

basis of such assessment, management is of the

opinion that the realisable value of such inventory is

expected to be higher than the current carrying value,



c. Note 15 on Schedule 23 to the consolidated financial

statements regarding duty drawback claims

amounting to ` 155,512,244 outstanding as at 31

March 2011, including a sum of ` 10,227,875

recognised as income during the current year. The

Group has assessed the recoverability of these

claims based on a legal opinion from an independent

counsel. On the basis of such assessment,

management is of the opinion that the claims are

tenable and would be realized in full accordingly no

adjustments have been made in these consolidated

financial statements.

4. We did not audit the financial statements of subsidiaries

and joint venture entities, whose financial statements

ref lect tota l assets (net of e l iminat ion) of

` 14,386,839,605 as at 31 March 2011, total revenues

(net of elimination) of ` 7,606,113,635 and total cash

flows of ` 177,575,628 for the year then ended. These

financial statements and other financial information have

been audited by other auditors whose reports have been

furnished to us and our opinion in respect thereof is

based solely on the reports of such other auditors.


5. We report that the consolidated financial statements

have been prepared by the management in accordance with

the requirements of Accounting Standard (AS) 21 on

‘Consolidated Financial Statements’ and AS 27 on Financial

Reporting of Interests in Joint Ventures’ as prescribed under

the Companies (Accounting Standards) Rules, 2006, as

amended.6. Based on our audit and consideration of reports of other

auditors on separate financial statements of subsidiaries

and joint venture entities and on the other financial

information of the components, and to the best of our

information and according to the explanations given to

us, we are of the opinion that the attached consolidated

financial statements give a true and fair view in conformity

with the accounting principles generally accepted in

India, in the case of:

a. the Consolidated Balance Sheet, of the state of affairs

of the Group as at 31 March 2011;

b. the Consolidated Profit and Loss Account, of the profit

for the year ended on that date; and

c. the Consolidated Cash Flow Statement, of the cash

flows for the year ended on that date.









auditorS' REPORT

ToThe Board of Directors of BSCPL Infrastructure Limited

1. We have audited the attached Consolidated Balance

Sheet of BSCPL Infrastructure Limited, its subsidiaries

and joint ventures (hereinafter collectively referred to as

the ‘Group’), as at 31 March 2011 and also the

Consolidated Profit and Loss Account and the

Consolidated Cash Flow Statement for the year ended on

the date annexed thereto (collectively referred as the

‘consol idated f inancia l s tatements’ ) . These

Consolidated Financial Statements are the responsibility

of the management and have been prepared by the

management on the basis of separate financial

statements and other financial information regarding

components. Our responsibility is to express an opinion

on these consolidated financial statements based on our

audit.

2. We conducted our audit in accordance with auditing

standards generally accepted in India. Those standards

require that we plan and perform the audit to obtain

reasonable assurance whether the financial statements

are free of material misstatement. An audit includes

examining, on a test basis, evidence supporting the

amounts and disclosures in the financial statements. An

audit also includes assessing the accounting principles

used and significant estimates made by management,

as well as evaluating the overall financial statement

presentation. We believe that our audit provides a

reasonable basis for our opinion.

3. Without qualifying our opinion, we draw attention to:

a. Note 7 on Schedule 23 to the consolidated financial

statements regarding claims amounting to

` 2,857,892,943 (31 March 2010: ` 1,716,376,422)

outstanding as at 31 March 2011, including a sum of

`941,460,652 (31 March 2010: ` 787,691,868)

recognized as income during the current year based

on the terms and conditions implicit in the contract.

The claims being technical in nature and being

subject matter of arbitration, the Group has assessed

the recoverability of these claims based on arbitration

orders received and a legal opinion from an

independent counsel. On the basis of such

assessment, the management is of the opinion that

the claims are tenable and would be realised,



b. Note 14 on Schedule 23 to the consolidated financial

statements, regarding management’s assessment

of carrying value of real estate under development

aggregating to ` 548,817,430 in a project. On the

basis of such assessment, management is of the

opinion that the realisable value of such inventory is

expected to be higher than the current carrying value,



c. Note 15 on Schedule 23 to the consolidated financial

statements regarding duty drawback claims

amounting to ` 155,512,244 outstanding as at 31

March 2011, including a sum of ` 10,227,875

recognised as income during the current year. The

Group has assessed the recoverability of these

claims based on a legal opinion from an independent

counsel. On the basis of such assessment,

management is of the opinion that the claims are

tenable and would be realized in full accordingly no

adjustments have been made in these consolidated

financial statements.

4. We did not audit the financial statements of subsidiaries

and joint venture entities, whose financial statements

ref lect tota l assets (net of e l iminat ion) of

` 14,386,839,605 as at 31 March 2011, total revenues

(net of elimination) of ` 7,606,113,635 and total cash

flows of ` 177,575,628 for the year then ended. These

financial statements and other financial information have

been audited by other auditors whose reports have been

furnished to us and our opinion in respect thereof is

based solely on the reports of such other auditors.


5. We report that the consolidated financial statements

have been prepared by the management in accordance with

the requirements of Accounting Standard (AS) 21 on

‘Consolidated Financial Statements’ and AS 27 on Financial

Reporting of Interests in Joint Ventures’ as prescribed under

the Companies (Accounting Standards) Rules, 2006, as

amended.6. Based on our audit and consideration of reports of other

auditors on separate financial statements of subsidiaries

and joint venture entities and on the other financial

information of the components, and to the best of our

information and according to the explanations given to

us, we are of the opinion that the attached consolidated

financial statements give a true and fair view in conformity

with the accounting principles generally accepted in

India, in the case of:

a. the Consolidated Balance Sheet, of the state of affairs

of the Group as at 31 March 2011;

b. the Consolidated Profit and Loss Account, of the profit

for the year ended on that date; and

c. the Consolidated Cash Flow Statement, of the cash

flows for the year ended on that date.









Consolidated Balance Sheet as at 31 March 2011All amounts in Indian Rupees unless otherwise stated














SOURCES OF FUNDS

Shareholders' fundsShare capital 1 248,573,360 124,286,680Reserves and surplus 2 6,572,195,603 6,100,887,000

6,820,768,963 6,225,173,680

Minority interest 720,151,558 558,435,251Loan funds

Secured loans 3 11,652,749,923 8,811,783,637Unsecured loans 4 2,078,495,901 2,174,840,546

13,731,245,824 10,986,624,183 Deferred tax liabilities, net 5 462,943,366 478,442,946

Total 21,735,109,711 18,248,676,060

APPLICATION OF FUNDSFixed assets 6

Gross block 7,361,113,726 7,090,903,951Less: Accumulated depreciation 2,620,101,199 2,039,491,934

Net block 4,741,012,527 5,051,412,017Capital work-in-progress (including capital advances) 410,455,960 171,375,172Intangible assets under development 23 (20) (i) 4,767,170,982 3,018,022,796

Investments 7 25,499,346 26,676,097Receivable under service concession arrangement 23 (20) (ii) 302,599,955 - Current assets, loans and advancesInventories 8 8,880,248,641 6,705,374,903Sundry debtors 9 3,883,151,443 3,741,289,875Cash and bank balances 10 1,136,530,782 744,722,448Other current assets 11 51,408,367 220,273,962Loans and advances 12 2,827,842,539 2,889,696,184

16,779,181,772 14,301,357,372

Less: Current liabilities and provisionsCurrent liabilities 13 5,136,366,981 4,221,918,467Provisions 14 154,443,850 98,248,927

5,290,810,831 4,320,167,394


Total 21,735,109,711 18,248,676,060

Notes to consolidated accounts 23

The schedules referred to above form an integral part of the consolidated financial statements.This is the Consolidated Balance Sheet referred to in our report of even date.




Consolidated Profit and Loss Account for the year ended 31 March 2011All amounts in Indian Rupees unless otherwise stated

SchedulesFor the year ended



For Walker, Chandiok & Co Chartered Accountants










Income


Sale of metals 235,481,017 407,943,500

Increase in closing stock 16 2,175,379,656 1,480,169,149

Other income 17 319,685,068 181,240,883

13,281,267,442 17,076,520,880

Expenditure

Material consumed 18 4,946,994,071 7,489,902,272

Personnel expenses 19 1,466,158,566 1,405,017,088



Depreciation 6 648,344,746 622,791,098

Interest and finance charges 22 1,448,021,969 1,259,924,936

12,463,930,653 15,745,283,780

Profit before tax, minority interest and prior period items 817,336,789 1,331,237,100

Prior period items 23 (13) (25,001,500) (27,087,520)

Profit before tax and minority interest 842,338,289 1,358,324,620

Tax expense

Current tax 325,479,582 410,435,573

[includes tax of earlier years ` 7,503,018

(31 March 2010: ` 34,334,302)]


Profit after tax 532,358,287 807,438,155

Share of minority shareholders - -

Net profit 532,358,287 807,438,155

Add: Balance brought forward from previous year 2,626,129,317 1,818,691,162

Surplus carried to consolidated balance sheet 3,158,487,604 2,626,129,317

Earnings per share



Weighted average number of equity shares 24,857,336 24,857,336


The schedules referred to above form an integral part of the consolidated financial statements.This is the Consolidated Profit and Loss Account referred to in our report of even date.

Consolidated Balance Sheet as at 31 March 2011All amounts in Indian Rupees unless otherwise stated














SOURCES OF FUNDS

Shareholders' fundsShare capital 1 248,573,360 124,286,680Reserves and surplus 2 6,572,195,603 6,100,887,000

6,820,768,963 6,225,173,680

Minority interest 720,151,558 558,435,251Loan funds

Secured loans 3 11,652,749,923 8,811,783,637Unsecured loans 4 2,078,495,901 2,174,840,546

13,731,245,824 10,986,624,183 Deferred tax liabilities, net 5 462,943,366 478,442,946

Total 21,735,109,711 18,248,676,060

APPLICATION OF FUNDSFixed assets 6

Gross block 7,361,113,726 7,090,903,951Less: Accumulated depreciation 2,620,101,199 2,039,491,934

Net block 4,741,012,527 5,051,412,017Capital work-in-progress (including capital advances) 410,455,960 171,375,172Intangible assets under development 23 (20) (i) 4,767,170,982 3,018,022,796

Investments 7 25,499,346 26,676,097Receivable under service concession arrangement 23 (20) (ii) 302,599,955 - Current assets, loans and advancesInventories 8 8,880,248,641 6,705,374,903Sundry debtors 9 3,883,151,443 3,741,289,875Cash and bank balances 10 1,136,530,782 744,722,448Other current assets 11 51,408,367 220,273,962Loans and advances 12 2,827,842,539 2,889,696,184

16,779,181,772 14,301,357,372

Less: Current liabilities and provisionsCurrent liabilities 13 5,136,366,981 4,221,918,467Provisions 14 154,443,850 98,248,927

5,290,810,831 4,320,167,394


Total 21,735,109,711 18,248,676,060


The schedules referred to above form an integral part of the consolidated financial statements.This is the Consolidated Balance Sheet referred to in our report of even date.




Consolidated Profit and Loss Account for the year ended 31 March 2011All amounts in Indian Rupees unless otherwise stated

SchedulesFor the year ended













Income


Sale of metals 235,481,017 407,943,500

Increase in closing stock 16 2,175,379,656 1,480,169,149

Other income 17 319,685,068 181,240,883

13,281,267,442 17,076,520,880

Expenditure

Material consumed 18 4,946,994,071 7,489,902,272

Personnel expenses 19 1,466,158,566 1,405,017,088



Depreciation 6 648,344,746 622,791,098

Interest and finance charges 22 1,448,021,969 1,259,924,936

12,463,930,653 15,745,283,780

Profit before tax, minority interest and prior period items 817,336,789 1,331,237,100

Prior period items 23 (13) (25,001,500) (27,087,520)

Profit before tax and minority interest 842,338,289 1,358,324,620

Tax expense

Current tax 325,479,582 410,435,573

[includes tax of earlier years ` 7,503,018

(31 March 2010: ` 34,334,302)]


Profit after tax 532,358,287 807,438,155

Share of minority shareholders - -

Net profit 532,358,287 807,438,155

Add: Balance brought forward from previous year 2,626,129,317 1,818,691,162

Surplus carried to consolidated balance sheet 3,158,487,604 2,626,129,317

Earnings per share



Weighted average number of equity shares 24,857,336 24,857,336


The schedules referred to above form an integral part of the consolidated financial statements.This is the Consolidated Profit and Loss Account referred to in our report of even date.

Schedules forming part of the consolidated financial statementsAll amounts in Indian Rupees unless otherwise stated

As at 31 March


Schedule 1: Share capital

Authorised



"24,857,336 (31 March 2010: 12,428,668) equity shares of ` 10 each 248,573,360 124,286,680

fully paid-up(Of the above, 12,428,668 (31 March 2010: Nil) equity

shares of ` 10 each are alloted as fully paid up bonus shares by

capitalization of balance in securities premium account.)


Securities premium account


Less: Utilised for issue of bonus shares 124,286,680 -

1,942,890,175 2,067,176,855

General reserve


Add: Transferred from debenture redemption reserve - 82,849,315

1,265,558,949 1,265,558,949

Capital reserve

Grant received from National Highway Authority of India

As per last balance sheet 155,069,662 -

Add: Receieved during the year 63,158,851 155,069,662

218,228,513 155,069,662



Less: Transferred to general reserve - 82,849,315

- -

Foreign currency transalation reserve

As per last balance sheet (13,047,783) (3,543,775)

Add: Additions during the year 78,145 (9,504,008)

(12,969,638) (13,047,783)


6,572,195,603 6,100,887,000

`




As at 31 March



[Refer note 6 on Schedule 23]

From banks

Term loans 6,786,812,419 3,219,137,832

[Repayable within one year ` 1,204,352,293

(31 March 2010: ` 954,119,176)]

Equipment and vehicle Loans 21,833,896 69,930,563



From others

Term loans 1,863,461,492 1,093,583,830

[Repayable with in one year ` 424,759,744

(31 March 2010: ` 392,693,813)]

Equipment and vehicle loans 233,744,189 1,177,375,551

[Repayable within one year ` 141,698,362

(31 March 2010: ` 504,733,644)] 11,652,749,923 8,811,783,637


From banks


Less: unamortised discount - 10,095,410

- 389,904,590

From others

Mobilisation advances 2,078,495,901 1,511,723,984

Others - 273,211,972

2,078,495,901 2,174,840,546



On account of:

- Fixed assets 490,296,514 501,185,716

490,296,514 501,185,716

Deferred tax assets

On account of:

- Retirement benefits 19,905,000 14,843,192

- Others 7,448,148 7,899,578

27,353,148 22,742,770

462,943,366 478,442,946


As at 31 March


Schedule 1: Share capital

Authorised



"24,857,336 (31 March 2010: 12,428,668) equity shares of ` 10 each 248,573,360 124,286,680

fully paid-up(Of the above, 12,428,668 (31 March 2010: Nil) equity

shares of ` 10 each are alloted as fully paid up bonus shares by

capitalization of balance in securities premium account.)


Securities premium account


Less: Utilised for issue of bonus shares 124,286,680 -

1,942,890,175 2,067,176,855

General reserve


Add: Transferred from debenture redemption reserve - 82,849,315

1,265,558,949 1,265,558,949

Capital reserve

Grant received from National Highway Authority of India

As per last balance sheet 155,069,662 -

Add: Receieved during the year 63,158,851 155,069,662

218,228,513 155,069,662



Less: Transferred to general reserve - 82,849,315

- -

Foreign currency transalation reserve

As per last balance sheet (13,047,783) (3,543,775)

Add: Additions during the year 78,145 (9,504,008)

(12,969,638) (13,047,783)


6,572,195,603 6,100,887,000

`




As at 31 March



[Refer note 6 on Schedule 23]

From banks

Term loans 6,786,812,419 3,219,137,832

[Repayable within one year ` 1,204,352,293

(31 March 2010: ` 954,119,176)]

Equipment and vehicle Loans 21,833,896 69,930,563



From others

Term loans 1,863,461,492 1,093,583,830

[Repayable with in one year ` 424,759,744

(31 March 2010: ` 392,693,813)]

Equipment and vehicle loans 233,744,189 1,177,375,551

[Repayable within one year ` 141,698,362

(31 March 2010: ` 504,733,644)] 11,652,749,923 8,811,783,637


From banks


Less: unamortised discount - 10,095,410

- 389,904,590

From others

Mobilisation advances 2,078,495,901 1,511,723,984

Others - 273,211,972

2,078,495,901 2,174,840,546



On account of:

- Fixed assets 490,296,514 501,185,716

490,296,514 501,185,716

Deferred tax assets

On account of:

- Retirement benefits 19,905,000 14,843,192

- Others 7,448,148 7,899,578

27,353,148 22,742,770

462,943,366 478,442,946

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As at 31 March


Schedule 7: Investments(Refer note 14 on Schedule 23)Quoted - Non trade

Currrent investments (at lower of cost and market value)

30,000 (31 March 2010: 40,000) equity shares of ` 10 each, 342,679 456,905 fully paid up in Vijaya Bank Limited

9,140 (31 March 2010: 9,140) equity shares of ` 10 each, 1,156,667 2,219,192 fully paid up in C&C Constructions Limited

Long term, trade (at cost, unquoted) Trade

729,972 (31 March 2010: 729,972) equity shares of ` 10 each, 1,459,944 1,459,944fully paid-up in Aishu Projects Limited

400,000 (31 March 2010: 400,000) preference shares of ` 10 each, 30,000,000 30,000,000 partly paid up in Pipal Tree Venture Limited

32,959,290 34,136,041

Less: Provision for diminution, other than temporary, 7,459,944 7,459,944 in the carrying value of long term investments

25,499,346 26,676,097


Aggregate book value of unquoted investments 31,459,944 35,009,934

Market value of quoted investment 3,574,336 4,117,192

Schedule 8: Inventories(Refer note 14 on Schedule 23)

Raw materials 1,304,416,314 1,327,894,208

[includes materials in transit of ` 33,178,037 (31 March 2010: ` 62,752,819)] Stores and spares 178,165,360 130,556,120

Work-in-progress 3,673,538,571 2,745,379,120



Finished goods 64,512,244 142,674,149

8,880,248,641 6,705,374,903

Schedule 9: Sundry debtors(unsecured, considered good)(Refer note 7 on Schedule 23)


[includes retention money ` 361,929,128 (31 March 2010: ` 293,255,468)

Other debts 1,742,834,024 2,169,523,138

[includes retention money ` 136,175,952(31 March 2010: ` 645,050,819) 3,883,151,443 3,741,289,875




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7,8

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fix

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s2

8,8

94

,14

9

2,4

66

,10

5

1,5

31

,68

4

29

,82

8,5

70

1

1,1

80

,68

1

2,4

05

,26

5

1,6

53

,83

6

11

,93

2,1

10

1

7,8

96

,46

0

17

,71

3,4

68

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icle

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36

,50

7,7

60

1

2,0

60

,91

5

2,2

97

,85

1

14

6,2

70

,82

4

44

,66

1,1

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1

2,3

81

,82

8

78

7,7

25

5

6,2

55

,20

9

90

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5,6

15

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1,8

46

,65

4

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,09

0,9

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,95

1

37

4,4

50

,41

6

10

4,2

40

,64

1

7,3

61

,11

3,7

26

2

,03

9,4

91

,93

4

64

8,3

44

,74

6

67

,73

5,4

78

2

,62

0,1

01

,20

2

4,7

41

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2,5

24

5

,05

1,4

12

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7

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1,4

83

,88

6

97

4,7

97

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4

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5,3

77

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7,0

90

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3,9

51

1

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6,4

24

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2

62

2,7

91

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8

17

9,7

23

,56

6

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39

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1,9

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5

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As at 31 March


Schedule 7: Investments(Refer note 14 on Schedule 23)Quoted - Non trade

Currrent investments (at lower of cost and market value)

30,000 (31 March 2010: 40,000) equity shares of ` 10 each, 342,679 456,905 fully paid up in Vijaya Bank Limited

9,140 (31 March 2010: 9,140) equity shares of ` 10 each, 1,156,667 2,219,192 fully paid up in C&C Constructions Limited

Long term, trade (at cost, unquoted) Trade

729,972 (31 March 2010: 729,972) equity shares of ` 10 each, 1,459,944 1,459,944fully paid-up in Aishu Projects Limited

400,000 (31 March 2010: 400,000) preference shares of ` 10 each, 30,000,000 30,000,000 partly paid up in Pipal Tree Venture Limited

32,959,290 34,136,041

Less: Provision for diminution, other than temporary, 7,459,944 7,459,944 in the carrying value of long term investments

25,499,346 26,676,097


Aggregate book value of unquoted investments 31,459,944 35,009,934

Market value of quoted investment 3,574,336 4,117,192

Schedule 8: Inventories(Refer note 14 on Schedule 23)

Raw materials 1,304,416,314 1,327,894,208

[includes materials in transit of ` 33,178,037 (31 March 2010: ` 62,752,819)] Stores and spares 178,165,360 130,556,120

Work-in-progress 3,673,538,571 2,745,379,120



Finished goods 64,512,244 142,674,149

8,880,248,641 6,705,374,903

Schedule 9: Sundry debtors(unsecured, considered good)(Refer note 7 on Schedule 23)


[includes retention money ` 361,929,128 (31 March 2010: ` 293,255,468)

Other debts 1,742,834,024 2,169,523,138

[includes retention money ` 136,175,952(31 March 2010: ` 645,050,819) 3,883,151,443 3,741,289,875




As at 31 March


Schedule 10: Cash and bank balances

Cash balance on hand 18,517,634 29,950,624

Bank balances

with Scheduled banks:


- on deposits accounts * 224,558,390 119,234,646

[* held under lien with the bankers]


with others:


1,136,530,782 744,722,448

Schedule 11: Other current assets(unsecured, considered good)

Interest accrued on advances 50,060,086 220,273,962

Interest accrued on fixed deposits 1,348,281 -

51,408,367 220,273,962

Schedule 12: Loans and advances(unsecured, considered good)(Refer note 7 and 15 on Schedule 23)

Advances recoverable in cash or kind or for value to be received 1,374,246,240 2,333,117,680

Loans and advances to subsidiaries - -

Loans and advances to joint ventures 646,199,634 732,126

Advance to subcontractors 198,018,833 73,185,170

Deposits 120,296,494 150,846,461



Advance tax (net of provision) 203,828,172 -

2,827,842,539 2,889,696,184

Schedule 13: Current liabilities

Sundry creditors

- Total outstanding dues of micro enterprises and small enterprises - -


- Total outstanding dues of creditors other than micro enterprisesand small enterprises 1,935,419,114 2,502,196,680

1,935,419,114 2,502,196,680


Book overdraft 4,612,461 137,051,703

Retention money 138,046,786 83,255,151

Dues to subcontractors 126,782,538 156,077,270



5,136,366,981 4,221,918,467





As at 31 March



For income tax (net of advance tax) 81,981,508 38,344,853


For gratuity 59,962,342 47,404,074

154,443,850 98,248,927



Equipment hire charges 46,432,004 380,499


10,550,721,701 15,007,167,348

Schedule 16: Increase in closing stock

Work-in-progress

Closing work-in-progress 3,673,538,571 2,745,379,120

Less: Opening work-in-progress 2,745,379,120 2,040,119,986

928,159,451 705,259,134






1,325,382,110 799,045,088

Finished goods

Closing finished goods 64,512,244 142,674,149


(78,161,905) (24,135,073)

2,175,379,656 1,480,169,149




Interest on loans and advances (gross) 15,000,000 67,662,000




Insurance claims -

Exchange differences (net) - 19,621,929



319,685,068 181,240,883


As at 31 March


Schedule 10: Cash and bank balances

Cash balance on hand 18,517,634 29,950,624

Bank balances

with Scheduled banks:


- on deposits accounts * 224,558,390 119,234,646

[* held under lien with the bankers]


with others:


1,136,530,782 744,722,448

Schedule 11: Other current assets(unsecured, considered good)

Interest accrued on advances 50,060,086 220,273,962

Interest accrued on fixed deposits 1,348,281 -

51,408,367 220,273,962

Schedule 12: Loans and advances(unsecured, considered good)(Refer note 7 and 15 on Schedule 23)

Advances recoverable in cash or kind or for value to be received 1,374,246,240 2,333,117,680

Loans and advances to subsidiaries - -

Loans and advances to joint ventures 646,199,634 732,126

Advance to subcontractors 198,018,833 73,185,170

Deposits 120,296,494 150,846,461



Advance tax (net of provision) 203,828,172 -

2,827,842,539 2,889,696,184

Schedule 13: Current liabilities

Sundry creditors

- Total outstanding dues of micro enterprises and small enterprises - -


- Total outstanding dues of creditors other than micro enterprisesand small enterprises 1,935,419,114 2,502,196,680

1,935,419,114 2,502,196,680


Book overdraft 4,612,461 137,051,703

Retention money 138,046,786 83,255,151

Dues to subcontractors 126,782,538 156,077,270



5,136,366,981 4,221,918,467





As at 31 March



For income tax (net of advance tax) 81,981,508 38,344,853


For gratuity 59,962,342 47,404,074

154,443,850 98,248,927



Equipment hire charges 46,432,004 380,499


10,550,721,701 15,007,167,348

Schedule 16: Increase in closing stock

Work-in-progress

Closing work-in-progress 3,673,538,571 2,745,379,120

Less: Opening work-in-progress 2,745,379,120 2,040,119,986

928,159,451 705,259,134






1,325,382,110 799,045,088

Finished goods

Closing finished goods 64,512,244 142,674,149


(78,161,905) (24,135,073)

2,175,379,656 1,480,169,149




Interest on loans and advances (gross) 15,000,000 67,662,000




Insurance claims -

Exchange differences (net) - 19,621,929



319,685,068 181,240,883



As at 31 March


Schedule 18: Material consumed

Opening stock 1,327,894,208 1,445,471,567


6,251,410,385 8,817,796,480

Closing stock 1,304,416,314 1,327,894,208

4,946,994,071 7,489,902,272


Salaries, wages and bonus 1,273,657,618 1,201,506,673


Staff welfare 142,319,449 153,702,977

Gratuity and leave encashment 19,428,384 21,258,151

1,466,158,566 1,405,017,088


Power and fuel 421,521,941 955,791,652


- plant and machinery 453,148,977 411,499,445

- vehicles 77,803,014 114,261,855

- others 12,303,842 14,321,926

Site expenses 1,253,522,999 1,780,322,088

Sub-contract expenses 761,538,365 616,505,661



Insurance 77,966,958 57,520,737

Sales tax 172,838,028 235,629,309

Service tax 3,760,980 7,350,668

3,461,251,673 4,557,339,320




As at 31 March



Rent 48,295,338 25,513,433

Rates and taxes 80,643,245 57,872,917


Communication charges 13,953,450 15,688,864

Printing and stationary 12,561,972 14,911,714


Loss on sale of assets (net) 7,786,268 8,980,984

Fixed assets writtenoff - 10,896,216

Tender expenses 31,130,936 11,162,544



Auditor's remuneration 2,978,100 2,835,020

Doubtful advances written off 35,888,425 1,080,107

Dutydraw back written off 33,343,366 -

Exchange differences (net) 1,618,677 -

Provision for diminution other than temporary in the

carryingvalue of long term investment - 6,000,000

Diminution in the value of current investments 1,062,525 995,710


493,159,628 410,309,066



Interest on fixed period loans 659,636,916 993,397,519

Interest others 670,707,261 258,577,878


Total interest cost* 1,460,532,243 1,456,939,987


1,448,021,969 1,259,924,936

* Includes borrowing costs aggregating to ` 154,593,659

(31 March 2010: ` 124,639,570) transferred to real estate under

development through increase in work in progress.


As at 31 March


Schedule 18: Material consumed

Opening stock 1,327,894,208 1,445,471,567


6,251,410,385 8,817,796,480

Closing stock 1,304,416,314 1,327,894,208

4,946,994,071 7,489,902,272


Salaries, wages and bonus 1,273,657,618 1,201,506,673


Staff welfare 142,319,449 153,702,977

Gratuity and leave encashment 19,428,384 21,258,151

1,466,158,566 1,405,017,088


Power and fuel 421,521,941 955,791,652


- plant and machinery 453,148,977 411,499,445

- vehicles 77,803,014 114,261,855

- others 12,303,842 14,321,926

Site expenses 1,253,522,999 1,780,322,088

Sub-contract expenses 761,538,365 616,505,661



Insurance 77,966,958 57,520,737

Sales tax 172,838,028 235,629,309

Service tax 3,760,980 7,350,668

3,461,251,673 4,557,339,320




As at 31 March



Rent 48,295,338 25,513,433

Rates and taxes 80,643,245 57,872,917


Communication charges 13,953,450 15,688,864

Printing and stationary 12,561,972 14,911,714


Loss on sale of assets (net) 7,786,268 8,980,984

Fixed assets writtenoff - 10,896,216

Tender expenses 31,130,936 11,162,544



Auditor's remuneration 2,978,100 2,835,020

Doubtful advances written off 35,888,425 1,080,107

Dutydraw back written off 33,343,366 -

Exchange differences (net) 1,618,677 -

Provision for diminution other than temporary in the

carryingvalue of long term investment - 6,000,000

Diminution in the value of current investments 1,062,525 995,710


493,159,628 410,309,066



Interest on fixed period loans 659,636,916 993,397,519

Interest others 670,707,261 258,577,878


Total interest cost* 1,460,532,243 1,456,939,987


1,448,021,969 1,259,924,936

* Includes borrowing costs aggregating to ` 154,593,659

(31 March 2010: ` 124,639,570) transferred to real estate under

development through increase in work in progress.


Schedule 23: Notes to Accounts

1. Nature of operations


‘BSCPL’) is a Hyderabad based infrastructure company.

The Company is primarily engaged in civil and

engineering construction and has executed several

construction projects in roads, large scale bridge works,

irrigation and hydro-power.


i. Basis of consolidation

The consolidated financial statements of BSCPL

Infrastructure Limited together with its subsidiaries

and joint venture entities (collectively termed as “the

Group” or “the consolidated entities”) are prepared

under historical cost convention on accrual basis of

accounting in accordance with the generally

accepted accounting principles in India (‘Indian

GAAP’) to comply in all material respects with the

mandatory Accounting Standards (“AS”) notified

under Companies Accounting Standards Rules,

2006 (“the Rules”) (as amended) using uniform

accounting policies for like transactions and other

events in similar circumstances. The accounting

policies have been consistently applied by the

Company and are consistent with those used in the

previous year.

Investments in consolidated entities, except where

such investments are acquired with a view to its

subsequent disposal in the near future, are

accounted in accordance with accounting principles

as defined under AS 21 “Consolidated Financial

Statements”, on a line by line basis and AS 27

“Financial Reporting of Interests in Joint Ventures”

using proportionate consolidation method as notified

by the Rules.

Inter-company balances and inter- company

transactions and resulting unrealized profits or losses

are eliminated on consolidation.

The consolidated financial statements for the year

ended 31 March 2011 have been prepared on the

basis of the financial statements of the following

subsidiaries and joint venture entities:

% of interest as at 31 March

2011 2010Name of the Consolidated Entities

Country of

Incorporation

Subsidiaries of BSCPL

BSCPL Infra Projects Limited (BIPL) India 100% 100%

BSCPL International FZE (BIF) United Arab Emirates 100% 100%

BSCPL Realty Limited India - 100%

Subsidiaries of BIPL

BSCPL Godhra Tollway Limited India 100% 100%

BSC-C&C Kurali Toll Road Limited India 51% 51%

Joint ventures of BIF

Green Desert Venture Ltd. United Arab Emirates 70% 70%

Green Desert Venture Inc. Bahamas 70% 70%

Progressive International Holding Inc. British Virgin Islands 70% 70%

Bollineni Developers (JV) United Arab Emirates 70% 70%





Country of

Incorporation

Joint Ventures of BSCPL*

BSC-KGLC India 60% 60%

BSC – KGLC, Airport JV India 90% 90%

HES-BSCPL India 50% 50%

Madhava-Hytech-BSCPL India 50% 50%

BSC - C&C India 50% 50%

BSC-RBM-PATI India 50% 50%

BSCPL- SCL India 50% 50%

CR18G-BSCPL India 50% 50%

SCL-BSCPL India 35% 35%

SOMA –BSCPL (JV) India 50% 50%

Patna-Bakthiyarpur Tollway Limited India 50% -

North Bihar Highway Limited India 50% -

Mokama Munger Highway Limited India 50% -

Simphapuri Expressway Limited India 49% -

BSC-C&C JV Nepal Private Limited Nepal 50% 50%


The preparation of the consolidated financial statements

in conformity with Indian GAAP requires management to

make estimates and assumptions that affect the

balances of assets and liabilities and disclosures relating

to contingent liabilities as at the reporting date of the

financial statements and amounts of income and

expenses. Examples of such estimates include contract

revenue, contract costs expected to be incurred to

complete construction contracts, provision for defect

liability, provision for doubtful debts, useful lives of fixed

assets, income taxes, future obligations under employee

retirement benefit plans, rights under service concession

arrangements. Management periodically assesses

whether there is an indication that an asset may be

impaired and makes provision in the accounts for any

impairment losses estimated. Contingencies are

recorded when it is probable that a liability will be

incurred, and the amount can be reasonably estimated.

Al though these est imates are based upon


actions, actual results could differ from these estimates.

Any revision to accounting estimates is recognised

prospectively in the current and future periods.






bringing the asset to its working condition for its intended

use. Borrowing costs relating to acquisition of fixed

assets which takes substantial period of time to get

ready for its intended use are also included to the extent

they relate to the period till such assets are ready for its

intended use. Advances paid towards the acquisition of

fixed assets and outstanding at each balance sheet date

and the cost of assets under construction are disclosed

as capital work-in-progress.

*As represented by the management, terms of the contractual agreements and established practices provides the Group and

the joint venture partners to jointly control the key operating decisions to which parties to the joint venture must agree

unanimously. Accordingly, these unincorporated entities have been treated as jointly controlled entities.




Schedule 23: Notes to Accounts

1. Nature of operations


‘BSCPL’) is a Hyderabad based infrastructure company.

The Company is primarily engaged in civil and

engineering construction and has executed several

construction projects in roads, large scale bridge works,

irrigation and hydro-power.


i. Basis of consolidation

The consolidated financial statements of BSCPL

Infrastructure Limited together with its subsidiaries

and joint venture entities (collectively termed as “the

Group” or “the consolidated entities”) are prepared

under historical cost convention on accrual basis of

accounting in accordance with the generally

accepted accounting principles in India (‘Indian

GAAP’) to comply in all material respects with the

mandatory Accounting Standards (“AS”) notified

under Companies Accounting Standards Rules,

2006 (“the Rules”) (as amended) using uniform

accounting policies for like transactions and other

events in similar circumstances. The accounting

policies have been consistently applied by the

Company and are consistent with those used in the

previous year.

Investments in consolidated entities, except where

such investments are acquired with a view to its

subsequent disposal in the near future, are

accounted in accordance with accounting principles

as defined under AS 21 “Consolidated Financial

Statements”, on a line by line basis and AS 27

“Financial Reporting of Interests in Joint Ventures”

using proportionate consolidation method as notified

by the Rules.

Inter-company balances and inter- company

transactions and resulting unrealized profits or losses

are eliminated on consolidation.

The consolidated financial statements for the year

ended 31 March 2011 have been prepared on the

basis of the financial statements of the following

subsidiaries and joint venture entities:



Country of

Incorporation

Subsidiaries of BSCPL

BSCPL Infra Projects Limited (BIPL) India 100% 100%

BSCPL International FZE (BIF) United Arab Emirates 100% 100%

BSCPL Realty Limited India - 100%

Subsidiaries of BIPL

BSCPL Godhra Tollway Limited India 100% 100%

BSC-C&C Kurali Toll Road Limited India 51% 51%

Joint ventures of BIF

Green Desert Venture Ltd. United Arab Emirates 70% 70%

Green Desert Venture Inc. Bahamas 70% 70%

Progressive International Holding Inc. British Virgin Islands 70% 70%

Bollineni Developers (JV) United Arab Emirates 70% 70%





Country of

Incorporation

Joint Ventures of BSCPL*

BSC-KGLC India 60% 60%

BSC – KGLC, Airport JV India 90% 90%

HES-BSCPL India 50% 50%

Madhava-Hytech-BSCPL India 50% 50%

BSC - C&C India 50% 50%

BSC-RBM-PATI India 50% 50%

BSCPL- SCL India 50% 50%

CR18G-BSCPL India 50% 50%

SCL-BSCPL India 35% 35%

SOMA –BSCPL (JV) India 50% 50%

Patna-Bakthiyarpur Tollway Limited India 50% -

North Bihar Highway Limited India 50% -

Mokama Munger Highway Limited India 50% -

Simphapuri Expressway Limited India 49% -

BSC-C&C JV Nepal Private Limited Nepal 50% 50%


The preparation of the consolidated financial statements

in conformity with Indian GAAP requires management to

make estimates and assumptions that affect the

balances of assets and liabilities and disclosures relating

to contingent liabilities as at the reporting date of the

financial statements and amounts of income and

expenses. Examples of such estimates include contract

revenue, contract costs expected to be incurred to

complete construction contracts, provision for defect

liability, provision for doubtful debts, useful lives of fixed

assets, income taxes, future obligations under employee

retirement benefit plans, rights under service concession

arrangements. Management periodically assesses

whether there is an indication that an asset may be

impaired and makes provision in the accounts for any

impairment losses estimated. Contingencies are

recorded when it is probable that a liability will be

incurred, and the amount can be reasonably estimated.

Al though these est imates are based upon


actions, actual results could differ from these estimates.

Any revision to accounting estimates is recognised

prospectively in the current and future periods.






bringing the asset to its working condition for its intended

use. Borrowing costs relating to acquisition of fixed

assets which takes substantial period of time to get

ready for its intended use are also included to the extent

they relate to the period till such assets are ready for its

intended use. Advances paid towards the acquisition of

fixed assets and outstanding at each balance sheet date

and the cost of assets under construction are disclosed

as capital work-in-progress.

*As represented by the management, terms of the contractual agreements and established practices provides the Group and

the joint venture partners to jointly control the key operating decisions to which parties to the joint venture must agree

unanimously. Accordingly, these unincorporated entities have been treated as jointly controlled entities.



Assets retired from active use and held for disposal are

stated at their estimated net realizable values or net book

values, whichever is lower.

Depreciation is provided on Straight Line Method (‘SLM’)



under Schedule XIV to the Companies Act,1956 (the Act)

except in respect of (a) temporary erections in the form of

sheds, camps, etc., which are depreciated over the

period of the respective project, (b) shuttering materials

which are depreciated over a period of 6 years as against

20 years prescribed under Schedule XIV to the Act, and

(b) asset individually costing ` 5,000 or less which are


iv. Impairment


balance sheet date if there is any indication of impairment

based on internal/external factors. An impairment loss is

recognized wherever the carrying amount of an asset

exceeds its recoverable amount. The recoverable amount

is the greater of the asset’s net selling price and its value in

use. In assessing value in use, the estimated future cash

flows are discounted to their present value at the weighted


After impairment, depreciation is provided on the revised

carrying amount of the asset over its remaining useful life.

v. Service concession arrangements

The Group has entered into contractual service

arrangements with government authorities (“grantor”) for

the construction, up-gradation, operation and

maintenance of road infrastructure. These arrangements

generally provide, directly or indirectly, for customer

involvement in the determination of the service and

related consideration, and the return of the infrastructure

at the end of the contract.

In order to fall within the scope of service concession

arrangement, a contract must satisfy the following two

criteria:

l the grantor controls or regulates what services the

operator must provide with the infrastructure, to

whom it must provide them, and at what price; and

l the grantor controls the significant residual interest in

the infrastructure at the end of the term of the

arrangement

The Group recognizes its contractual rights under

aforesaid service concession arrangements as either

intangible assets or financial assets depending on the

remuneration commitments given by the grantor.

a. Intangible assets

Under a service concession arrangement, where the

Group has received the right to charge users of the

public service, such rights are recognized and

classified as “Intangible Assets”. Such right is not an

unconditional right to receive consideration because

the amounts are contingent to the extent that the

public uses the service and thus are recognized and

classified as intangible assets. Such an intangible

asset is recognized by the Group at cost (which is the

fair value of the consideration received or receivable

for the construction services delivered).

Subsequent to initial recognition the intangible asset

is measured at cost less accumulated amortization

and any impairment losses. At each balance sheet

date, the Group assesses whether there is any

indication of impairment in accordance with AS 26,

Intangible Assets. If any such indication exists, the

recoverable amount is estimated.

Amortization is calculated to write off the cost of

intangible assets arising from a service concession

arrangement on a unit of usage basis i.e. based on

the number of vehicles expected to use the

infrastructure over the concession period as

estimated by the management, over the estimated

useful life, which is the period when it is available for

use, being the commercial operation date, to the end

of the concession period.

The estimated useful life and number of vehicles

expected to use the infrastructure over the balance

period is reviewed by the management with the help

of independent technical experts, at periodic

intervals to determine the amount of additional

amortization, if any.

b. Financial asset


Group has acquired contractual rights to receive

specified determinable amounts, such rights are

recognized and classified as “Financial Assets”,

even though payments are contingent on the Group

ensuring that the infrastructure meets the specified

quality or efficiency requirements.





Financial assets are recognized at amortized cost

using effective interest method. Such financial

assets are classified as “Receivables against service

concession arrangement” in the financial

statements.

An impairment loss is recognized if the carrying

amount of these assets exceeds the fair value, as

estimated during impairment tests. Fair value is

estimated based on the recoverable amount,

calculated by discounting future cash flows.

vi. Revenue recognition


that the economic benefits will flow to the Company and

revenue can be reliably measured and collectability is

reasonably assured.


recognized using percentage of completion method

as prescribed under AS 7 “Construction Contracts”

and with reference to stage of completion of the

contract activity at the reporting date. Depending on

the nature and terms of individual contract, stage of

completion is determined on the basis of surveys

performed or the proportion of costs incurred for the

work performed till date to the total estimated

contract costs. Where the total cost of the contract,

based on technical and other estimates expected to




included in the Profit and Loss Account of the period

in which revision is made.

b. Price escalation and other claims and /or variation in

the contract work are included in contract revenue

only when:

l Negotiations have reached at an advanced stage

such that it is probable that customer will accept

the claim; and

l The amount that is probable will be accepted by

the customer can be measured reliably





recognized when the significant risks and rewards of

ownership have been transferred to the customer,

which coincides with physical delivery of possession

to the customer.




f. Dividend is recognized when the right to receive the

payment is established.

g. Benefits on account of entitlement to excise duty

draw back scheme included in revenues are accrued

and accounted in the year in which it is reasonably

certain that such benefits are realizable.

h. Revenue from construction services provided under

the service concession arrangements is measured at

the fair value of the construction services rendered,

where total income and expenses associated with

the construction work and the stage of completion

can be determined reliably. The stage of completion

is measured by reference to the construction costs

incurred up to the end of the reporting period as a

percentage of total estimated costs for each

contract.

i. Revenue from operation and maintenance of

infrastructure under intangible asset model is

recognized in the period of collection.

j. Revenue from operation and maintenance services

and from road resurfacing services is recognized in

the period in which such services are rendered and

the consideration is determined based on an

allocation of total consideration receivable on the

basis of costs actually incurred or the estimates of

cost of services to be delivered.

k. Revenue from financial asset is recognized as

interest income, calculated using the effective

interest method from the year in which construction

services are started

vii. Investments

Investments in readily realizable securities that are

intended to be held for not more than a year are classified

as current investments. All other investments are

classified as long term investments.


Assets retired from active use and held for disposal are

stated at their estimated net realizable values or net book

values, whichever is lower.

Depreciation is provided on Straight Line Method (‘SLM’)



under Schedule XIV to the Companies Act,1956 (the Act)

except in respect of (a) temporary erections in the form of

sheds, camps, etc., which are depreciated over the

period of the respective project, (b) shuttering materials

which are depreciated over a period of 6 years as against

20 years prescribed under Schedule XIV to the Act, and

(b) asset individually costing ` 5,000 or less which are


iv. Impairment


balance sheet date if there is any indication of impairment

based on internal/external factors. An impairment loss is

recognized wherever the carrying amount of an asset

exceeds its recoverable amount. The recoverable amount

is the greater of the asset’s net selling price and its value in

use. In assessing value in use, the estimated future cash

flows are discounted to their present value at the weighted


After impairment, depreciation is provided on the revised

carrying amount of the asset over its remaining useful life.

v. Service concession arrangements

The Group has entered into contractual service

arrangements with government authorities (“grantor”) for

the construction, up-gradation, operation and

maintenance of road infrastructure. These arrangements

generally provide, directly or indirectly, for customer

involvement in the determination of the service and

related consideration, and the return of the infrastructure

at the end of the contract.

In order to fall within the scope of service concession

arrangement, a contract must satisfy the following two

criteria:

l the grantor controls or regulates what services the

operator must provide with the infrastructure, to

whom it must provide them, and at what price; and

l the grantor controls the significant residual interest in

the infrastructure at the end of the term of the

arrangement

The Group recognizes its contractual rights under

aforesaid service concession arrangements as either

intangible assets or financial assets depending on the

remuneration commitments given by the grantor.

a. Intangible assets


Group has received the right to charge users of the

public service, such rights are recognized and

classified as “Intangible Assets”. Such right is not an

unconditional right to receive consideration because

the amounts are contingent to the extent that the

public uses the service and thus are recognized and

classified as intangible assets. Such an intangible

asset is recognized by the Group at cost (which is the

fair value of the consideration received or receivable

for the construction services delivered).

Subsequent to initial recognition the intangible asset

is measured at cost less accumulated amortization

and any impairment losses. At each balance sheet

date, the Group assesses whether there is any

indication of impairment in accordance with AS 26,

Intangible Assets. If any such indication exists, the

recoverable amount is estimated.

Amortization is calculated to write off the cost of

intangible assets arising from a service concession

arrangement on a unit of usage basis i.e. based on

the number of vehicles expected to use the

infrastructure over the concession period as

estimated by the management, over the estimated

useful life, which is the period when it is available for

use, being the commercial operation date, to the end

of the concession period.

The estimated useful life and number of vehicles

expected to use the infrastructure over the balance

period is reviewed by the management with the help

of independent technical experts, at periodic

intervals to determine the amount of additional

amortization, if any.

b. Financial asset


Group has acquired contractual rights to receive

specified determinable amounts, such rights are

recognized and classified as “Financial Assets”,

even though payments are contingent on the Group

ensuring that the infrastructure meets the specified

quality or efficiency requirements.





Financial assets are recognized at amortized cost

using effective interest method. Such financial

assets are classified as “Receivables against service

concession arrangement” in the financial

statements.

An impairment loss is recognized if the carrying

amount of these assets exceeds the fair value, as

estimated during impairment tests. Fair value is

estimated based on the recoverable amount,

calculated by discounting future cash flows.

vi. Revenue recognition


that the economic benefits will flow to the Company and

revenue can be reliably measured and collectability is

reasonably assured.


recognized using percentage of completion method

as prescribed under AS 7 “Construction Contracts”

and with reference to stage of completion of the

contract activity at the reporting date. Depending on

the nature and terms of individual contract, stage of

completion is determined on the basis of surveys

performed or the proportion of costs incurred for the

work performed till date to the total estimated

contract costs. Where the total cost of the contract,

based on technical and other estimates expected to




included in the Profit and Loss Account of the period

in which revision is made.

b. Price escalation and other claims and /or variation in

the contract work are included in contract revenue

only when:

l Negotiations have reached at an advanced stage

such that it is probable that customer will accept

the claim; and

l The amount that is probable will be accepted by

the customer can be measured reliably





recognized when the significant risks and rewards of

ownership have been transferred to the customer,

which coincides with physical delivery of possession

to the customer.




f. Dividend is recognized when the right to receive the

payment is established.

g. Benefits on account of entitlement to excise duty

draw back scheme included in revenues are accrued

and accounted in the year in which it is reasonably

certain that such benefits are realizable.

h. Revenue from construction services provided under

the service concession arrangements is measured at

the fair value of the construction services rendered,

where total income and expenses associated with

the construction work and the stage of completion

can be determined reliably. The stage of completion

is measured by reference to the construction costs

incurred up to the end of the reporting period as a

percentage of total estimated costs for each

contract.

i. Revenue from operation and maintenance of

infrastructure under intangible asset model is

recognized in the period of collection.

j. Revenue from operation and maintenance services

and from road resurfacing services is recognized in

the period in which such services are rendered and

the consideration is determined based on an

allocation of total consideration receivable on the

basis of costs actually incurred or the estimates of

cost of services to be delivered.

k. Revenue from financial asset is recognized as

interest income, calculated using the effective

interest method from the year in which construction

services are started

vii. Investments

Investments in readily realizable securities that are

intended to be held for not more than a year are classified

as current investments. All other investments are

classified as long term investments.


Long-term investments are carried at cost. Provision for

diminution in value is made to recognize a decline, other

than temporary, in the value of the investments. Current

investments are carried at lower of cost and market value

determined on individual investment basis.

viii. Inventories



outcome of the related project is ascertained reliably

and at contractual rates thereafter.


tools at the lower of cost and net realizable value.

However, materials and other items held for use in the

construction are not written down below cost if the

services in which they will be incorporated are

expected to be billed at or above cost. Cost is

determined on first-in-first out basis except in case of

BSC-C&C Joint Venture where the cost of stores and

spares is determined on weighted average basis.



labour and a proportion of manufacturing overheads

based on normal operating capacity. Cost is

determined on a first-in-first out basis.

d. Land under development comprises of the purchase

cost of land and other direct development cost

including borrowing costs and is valued at the lower

of cost and net realizable value.




sale.

ix. Employee benefits

Provident Fund


defined contribution scheme and the contributions are

charged to the Profit and Loss Account of the year when

the contributions to the respective funds are due. There

are no other obligations other than the contribution

payable to the respective authorities

Gratuity


recognized in the balance sheet represents the present

value of the defined benefit obligation at the balance

sheet date, together with adjustments for past service

costs. An independent actuary using the projected unit

credit method calculates the defined benefit obligation

annually.


adjustments and changes in actuarial assumptions are

credited or charged to the Profit and Loss Account in the

year in which such gains or losses arises.

Leave encashment

Liability in respect of leave encashment becoming due or

expected to be availed within one year from the balance

sheet date is recognized on the basis of undiscounted

value of estimated amount required to be paid or

estimated value of benefit expected to be availed by the

employees.


Expense in respect of other short-term benefits including

performance bonus is recognized on the basis of amount

paid or payable for the year during which the employees

render services.

x. Income taxes


Current tax is measured at the amount expected to be

paid to the tax authorities in accordance with the

domestic tax laws of the countries in which the

consolidated entities operate. Deferred income taxes

reflect the impact of current year timing differences

between taxable income and accounting income for the

year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the

tax laws enacted or substantively enacted at the balance

sheet date. Deferred tax assets and deferred tax liabilities

are offset, if a legally enforceable right exists to set off

current tax assets against current tax liabilities and the

deferred tax assets and deferred tax liabilities relate to the

taxes on income levied by same governing taxation laws.

Deferred tax assets are recognized only to the extent that

there is reasonable certainty that sufficient future taxable

income will be available against which such deferred tax

assets can be realised. In situations where the company

has unabsorbed depreciation or carry forward tax losses,

all deferred tax assets are recognized only if there is virtual




certainty supported by convincing evidence that they can

be realized against future taxable profits.

Unrecognised deferred tax assets of earlier years are re-

assessed and recognised to the extent that it has


case may be that future taxable income will be available

against which such deferred tax assets can be realised.

The carrying amount of deferred tax assets are reviewed

at each balance sheet date.


at each balance sheet date. The company writes-down

the carrying amount of a deferred tax asset to the extent

that it is no longer reasonably certain or virtually certain,

as the case may be, that sufficient future taxable income

will be available against which deferred tax asset can be

realised. Any such write-down is reversed to the extent

that it becomes reasonably certain or virtually certain, as

the case may be, that sufficient future taxable income will

be available.

xi. Foreign currency transactions

Initial recognition


reporting currency, by applying to the foreign currency

amount the exchange rate between the reporting

currency and foreign currency at the date of the

transaction.

Conversion

Foreign currency monetary items are reported using the

year-end rates. Non-monetary items which are carried in

terms of historical cost denominated in foreign currency

are reported using the exchange rate at the date of the

transaction.

The financial statements of an integral foreign operation

are translated as if the transactions of the foreign

operation have been those of the Company itself.

Forward exchange contracts not intended for trading

or speculation purposes


between the forward rate and the exchange rate on the

date of transaction is recognized as expense or income

over the life of the contract. Exchange differences on

such contracts are recognized in the Profit and Loss

Account in the year in which the exchange rates change.

Any profit or loss arising on cancellation or renewal of

forward exchange contract is recognized as income or as

expense for the year.

Foreign currency translation

In accordance with the accounting principles as

prescribed under the AS 11 ‘the effects of changes in

Foreign Exchange Rates’ and based on the analysis of

relevant criteria the Company has designated the

operations of BSCPL International FZE, Bollineni

Developers (JV) and BSC-C&C(JV) Nepal Private Limited

as “non integral operations”. The financial statements of

such non integral foreign operations are translated into

Indian Rupees as follows:

a. All assets and liabilities, both monetary and non

monetary, are translated using the closing rate.

b. Revenue items are translated at the respective

weekly average rates.

c. The resulting net exchange differences are

accounted in the foreign currency translation reserve.

However, an exchange difference arising out of intra-

group monetary items, whether short term or long

term is recognized in the profit and loss account.

d. Contingent liabilities are translated at the closing rate.

xii. Leases



incidental to ownership of the leased item are transferred

to the Company, are classified as finance leases. Assets

under finance leases, where there is no reasonable

uncertainty that the Company will obtain the ownership

by the end of the lease term, such assets are capitalised

and depreciated over the tenure of the lease or estimated

useful life of the asset whichever is shorter.

Leases, where the lessor effectively retains substantially

all the risks and benefits of ownership of the leased item,

are classified as operating leases. Operating lease

payments are recognised as an expense in the Profit and

Loss Account on a Straight-Line basis over the lease

term.





Long-term investments are carried at cost. Provision for

diminution in value is made to recognize a decline, other

than temporary, in the value of the investments. Current

investments are carried at lower of cost and market value

determined on individual investment basis.

viii. Inventories



outcome of the related project is ascertained reliably

and at contractual rates thereafter.


tools at the lower of cost and net realizable value.

However, materials and other items held for use in the

construction are not written down below cost if the

services in which they will be incorporated are

expected to be billed at or above cost. Cost is

determined on first-in-first out basis except in case of

BSC-C&C Joint Venture where the cost of stores and

spares is determined on weighted average basis.



labour and a proportion of manufacturing overheads

based on normal operating capacity. Cost is

determined on a first-in-first out basis.

d. Land under development comprises of the purchase

cost of land and other direct development cost

including borrowing costs and is valued at the lower

of cost and net realizable value.




sale.

ix. Employee benefits

Provident Fund


defined contribution scheme and the contributions are

charged to the Profit and Loss Account of the year when

the contributions to the respective funds are due. There

are no other obligations other than the contribution

payable to the respective authorities

Gratuity


recognized in the balance sheet represents the present

value of the defined benefit obligation at the balance

sheet date, together with adjustments for past service

costs. An independent actuary using the projected unit

credit method calculates the defined benefit obligation

annually.


adjustments and changes in actuarial assumptions are

credited or charged to the Profit and Loss Account in the

year in which such gains or losses arises.

Leave encashment

Liability in respect of leave encashment becoming due or

expected to be availed within one year from the balance

sheet date is recognized on the basis of undiscounted

value of estimated amount required to be paid or

estimated value of benefit expected to be availed by the

employees.


Expense in respect of other short-term benefits including

performance bonus is recognized on the basis of amount

paid or payable for the year during which the employees

render services.

x. Income taxes


Current tax is measured at the amount expected to be

paid to the tax authorities in accordance with the

domestic tax laws of the countries in which the

consolidated entities operate. Deferred income taxes

reflect the impact of current year timing differences

between taxable income and accounting income for the

year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the

tax laws enacted or substantively enacted at the balance

sheet date. Deferred tax assets and deferred tax liabilities

are offset, if a legally enforceable right exists to set off

current tax assets against current tax liabilities and the

deferred tax assets and deferred tax liabilities relate to the

taxes on income levied by same governing taxation laws.

Deferred tax assets are recognized only to the extent that

there is reasonable certainty that sufficient future taxable

income will be available against which such deferred tax

assets can be realised. In situations where the company

has unabsorbed depreciation or carry forward tax losses,

all deferred tax assets are recognized only if there is virtual




certainty supported by convincing evidence that they can

be realized against future taxable profits.

Unrecognised deferred tax assets of earlier years are re-

assessed and recognised to the extent that it has


case may be that future taxable income will be available

against which such deferred tax assets can be realised.


at each balance sheet date.


at each balance sheet date. The company writes-down

the carrying amount of a deferred tax asset to the extent

that it is no longer reasonably certain or virtually certain,

as the case may be, that sufficient future taxable income

will be available against which deferred tax asset can be

realised. Any such write-down is reversed to the extent

that it becomes reasonably certain or virtually certain, as

the case may be, that sufficient future taxable income will

be available.

xi. Foreign currency transactions

Initial recognition


reporting currency, by applying to the foreign currency

amount the exchange rate between the reporting

currency and foreign currency at the date of the

transaction.

Conversion

Foreign currency monetary items are reported using the

year-end rates. Non-monetary items which are carried in

terms of historical cost denominated in foreign currency

are reported using the exchange rate at the date of the

transaction.

The financial statements of an integral foreign operation

are translated as if the transactions of the foreign

operation have been those of the Company itself.

Forward exchange contracts not intended for trading

or speculation purposes


between the forward rate and the exchange rate on the

date of transaction is recognized as expense or income

over the life of the contract. Exchange differences on

such contracts are recognized in the Profit and Loss

Account in the year in which the exchange rates change.

Any profit or loss arising on cancellation or renewal of

forward exchange contract is recognized as income or as

expense for the year.

Foreign currency translation

In accordance with the accounting principles as

prescribed under the AS 11 ‘the effects of changes in

Foreign Exchange Rates’ and based on the analysis of

relevant criteria the Company has designated the

operations of BSCPL International FZE, Bollineni

Developers (JV) and BSC-C&C(JV) Nepal Private Limited

as “non integral operations”. The financial statements of

such non integral foreign operations are translated into

Indian Rupees as follows:

a. All assets and liabilities, both monetary and non

monetary, are translated using the closing rate.

b. Revenue items are translated at the respective

weekly average rates.

c. The resulting net exchange differences are

accounted in the foreign currency translation reserve.

However, an exchange difference arising out of intra-

group monetary items, whether short term or long

term is recognized in the profit and loss account.

d. Contingent liabilities are translated at the closing rate.

xii. Leases



incidental to ownership of the leased item are transferred

to the Company, are classified as finance leases. Assets

under finance leases, where there is no reasonable

uncertainty that the Company will obtain the ownership

by the end of the lease term, such assets are capitalised

and depreciated over the tenure of the lease or estimated

useful life of the asset whichever is shorter.

Leases, where the lessor effectively retains substantially

all the risks and benefits of ownership of the leased item,

are classified as operating leases. Operating lease

payments are recognised as an expense in the Profit and

Loss Account on a Straight-Line basis over the lease

term.





Loss Account on a straight-line basis over the lease term.

Costs, including depreciation are recognised as an

expense in the Profit and Loss Account. Initial direct

costs such as legal costs, brokerage costs, etc. are

recognised immediately in the Profit and Loss Account.


Basic earnings per share are calculated by dividing the

net profit or loss for the period attributable to equity

shareholders by the weighted average number of equity

shares outstanding during the period. For the purpose of

calculating diluted earnings per share, the net profit or

loss for the period attributable to equity shareholders and

the weighted average number of shares outstanding

during the year are adjusted for the effects of all dilutive

potential equity shares.


Cash and cash equivalents in the cash flow statement

comprise cash at bank and in hand and short-term

investments with an original maturity of three months or

less.


As per the ICAI announcement, accounting for derivative

contracts, other than those covered under AS-11, are

marked to market on a portfolio basis, and the net loss

after considering the offsetting effect on the underlying

hedge item is charged to the Profit and Loss Account.

Net gains are ignored.



present obligation as a result of past event i.e., it is

probable that an outflow of resources will be required to

settle the obligation in respect of which a reliable

estimate can be made. Provisions are not discounted to

its present value and are determined based on best

estimate required to settle the obligation at the balance

sheet date.



disclosure of the contingent liability is made when there is

a possible or a present obligation that may, but probably

will not, require an outflow of resources.

Present obligations arising under onerous contracts are

recognized and measured as a provision. An onerous

contract is considered to exist where the Company has a

contract under which the unavoidable costs of meeting

the obligations under the contract exceed the economic

benefits expected to be received under it.

xvii.Segment reporting policies

Identification of segments:

The Group’s operating businesses are organized and

managed separately according to the nature of products

and services provided, with each segment representing a

strategic business unit that offers different products and

serves different markets. The analysis of geographical

segments is based on the areas in which major operating

divisions of the Group operate.

Inter segment transfers:

The Group generally accounts for intersegment sales and

transfers as if the sales or transfers were to third parties at

current market prices.

Allocation of common costs:

Common allocable costs are allocated to each segment

according to the relative contribution of each segment to

the total common costs.

Unallocated items:

Unallocated items include general corporate income and

expense items which are not allocated to any business

segment.

Segment policies:

The Group prepares its segment information in

conformity with the accounting policies adopted for

preparing and presenting the financial statements of the

Group as a whole.

3. Uniform accounting policies

As per the requirements of AS-21 ‘Consolidated Financial

Statements’ and AS-27 ‘Financial Reporting of Interest in

Joint Venture’, in the preparation of consolidated

financial statements, the accounting policies of the

consolidated entities are required to be aligned with

those of parent to the extent practicable. The following

accounting policies followed by various consolidated

entities are not aligned with those of the Parent Company.

The Company depreciates shuttering material over a

period of six years where as in case of BSC-C&C JV,

shuttering material is considered as part of inventories.

The Company has not ascertained impact of such

differential accounting policy on the financial position and

consolidated profits as at and for the year ended 31

March 2011.



As at 31 March 2011, inventory includes shuttering material aggregating to 25,657,927 (31 March 2010: 28,439,375).

Management is of the opinion that such alignment of accounting policies is not practicable and that the cumulative impact of

such alignment if made, would not be significant to the consolidated financial statements.


Estimated amount of contracts remaining to be executed on capital account and not provided for ` 29,961,665,253 (31

March 2010: ̀ 32,538,711).

` `

As at 31 March


Claims against the Company not acknowledged as debts on 322,032,500 684,975,887




has gone for appeal to Commissioner of Income Tax (Appeals),

Hyderabad





Penalties levied by sales tax department for misuse of C-Forms in the 32,626,514 32,626,514

years 2002-03 to 2004-05 in respect of which the Company’s appeal is

pending before Honorable High Court of Andhra Pradesh

The Company has received provisional demand notices for payment of 71,828,939 71,828,939

entry tax under the provisions of the Madhya Pradesh Sthaniya Kshetra

Me Mal Ke Pravesh Par Kar Abhiyan, 1976. The Company has contested

the same in Honorable Supreme Court



Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Abhiyan, 1976. The

Company has contested the same in Honorable High Court of Jabalpur




Demand for entry tax received under the provisions of the Karnataka - 16,816,370

Tax on Entry of Goods Act, 1979 in respect of which the Company

has gone for an appeal.

Income tax demands of BSC-C&C JV in respect of which it has 70,322,500 40,910,887

preferred for an appeal





Loss Account on a straight-line basis over the lease term.

Costs, including depreciation are recognised as an

expense in the Profit and Loss Account. Initial direct

costs such as legal costs, brokerage costs, etc. are

recognised immediately in the Profit and Loss Account.


Basic earnings per share are calculated by dividing the

net profit or loss for the period attributable to equity

shareholders by the weighted average number of equity

shares outstanding during the period. For the purpose of

calculating diluted earnings per share, the net profit or

loss for the period attributable to equity shareholders and

the weighted average number of shares outstanding

during the year are adjusted for the effects of all dilutive

potential equity shares.


Cash and cash equivalents in the cash flow statement

comprise cash at bank and in hand and short-term

investments with an original maturity of three months or

less.


As per the ICAI announcement, accounting for derivative

contracts, other than those covered under AS-11, are

marked to market on a portfolio basis, and the net loss

after considering the offsetting effect on the underlying

hedge item is charged to the Profit and Loss Account.

Net gains are ignored.



present obligation as a result of past event i.e., it is

probable that an outflow of resources will be required to

settle the obligation in respect of which a reliable

estimate can be made. Provisions are not discounted to

its present value and are determined based on best

estimate required to settle the obligation at the balance

sheet date.



disclosure of the contingent liability is made when there is

a possible or a present obligation that may, but probably

will not, require an outflow of resources.

Present obligations arising under onerous contracts are

recognized and measured as a provision. An onerous

contract is considered to exist where the Company has a

contract under which the unavoidable costs of meeting

the obligations under the contract exceed the economic

benefits expected to be received under it.

xvii.Segment reporting policies

Identification of segments:

The Group’s operating businesses are organized and

managed separately according to the nature of products

and services provided, with each segment representing a

strategic business unit that offers different products and

serves different markets. The analysis of geographical

segments is based on the areas in which major operating

divisions of the Group operate.

Inter segment transfers:

The Group generally accounts for intersegment sales and

transfers as if the sales or transfers were to third parties at

current market prices.

Allocation of common costs:

Common allocable costs are allocated to each segment

according to the relative contribution of each segment to

the total common costs.

Unallocated items:

Unallocated items include general corporate income and

expense items which are not allocated to any business

segment.

Segment policies:

The Group prepares its segment information in

conformity with the accounting policies adopted for

preparing and presenting the financial statements of the

Group as a whole.

3. Uniform accounting policies

As per the requirements of AS-21 ‘Consolidated Financial

Statements’ and AS-27 ‘Financial Reporting of Interest in

Joint Venture’, in the preparation of consolidated

financial statements, the accounting policies of the

consolidated entities are required to be aligned with

those of parent to the extent practicable. The following

accounting policies followed by various consolidated

entities are not aligned with those of the Parent Company.

The Company depreciates shuttering material over a

period of six years where as in case of BSC-C&C JV,

shuttering material is considered as part of inventories.

The Company has not ascertained impact of such

differential accounting policy on the financial position and

consolidated profits as at and for the year ended 31

March 2011.



As at 31 March 2011, inventory includes shuttering material aggregating to 25,657,927 (31 March 2010: 28,439,375).

Management is of the opinion that such alignment of accounting policies is not practicable and that the cumulative impact of

such alignment if made, would not be significant to the consolidated financial statements.


Estimated amount of contracts remaining to be executed on capital account and not provided for ` 29,961,665,253 (31

March 2010: ̀ 32,538,711).

` `

As at 31 March


Claims against the Company not acknowledged as debts on 322,032,500 684,975,887




has gone for appeal to Commissioner of Income Tax (Appeals),

Hyderabad





Penalties levied by sales tax department for misuse of C-Forms in the 32,626,514 32,626,514

years 2002-03 to 2004-05 in respect of which the Company’s appeal is

pending before Honorable High Court of Andhra Pradesh

The Company has received provisional demand notices for payment of 71,828,939 71,828,939

entry tax under the provisions of the Madhya Pradesh Sthaniya Kshetra

Me Mal Ke Pravesh Par Kar Abhiyan, 1976. The Company has contested

the same in Honorable Supreme Court



Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Abhiyan, 1976. The

Company has contested the same in Honorable High Court of Jabalpur




Demand for entry tax received under the provisions of the Karnataka - 16,816,370

Tax on Entry of Goods Act, 1979 in respect of which the Company

has gone for an appeal.

Income tax demands of BSC-C&C JV in respect of which it has 70,322,500 40,910,887

preferred for an appeal





6. Secured loans



related to the project .In respect of other term loans






company.


hypothecation of the related assets.

l Secured loans, other than working capital loans are

also secured by way of personally guaranteed of the

Chairman and Managing Director of the parent

Company.

7. Sundry debtors, loans and advances

Sundry debtors and Loans and advances as at 31 March

2011 include certain claims aggregating to ` 2,599,137,075

(31 March 2010: ` 1,716,376,422) and ` 258,755,868

respectively (31 March 2010: ` Nil) including a sum of `

941,460,652 (31 March 2010: ̀ 787,691,868) recognized as

income during the current year. The Company has preferred

such claim based on the terms and conditions implicit in the

respective contract and lodged with concerned authorities,

which is pending settlement. Since the claims being technical

in nature and are the subject matter of arbitration/dispute, the

Company has obtained a legal opinion on the recoverability

of such claims from an independent counsel. On the basis of

such assessment, management is of the opinion that the

claims are tenable and there exist no uncertainty as to

ultimate collection.




Consolidated Profit and Loss Account ` 30,448,966 (31

March 2010: ̀ 28,405,302)




service gets a gratuity on retirement at 15 days last drawn

salary for each completed year of service. The scheme is

funded with an insurance company in the form of a

qualifying insurance policy.

The following tables summarise the components of net

benefit expense recognised in the Consolidated Profit

and Loss account, fund status and amounts recognised

in the Consolidated Balance Sheet.

For the year ended 31 March





Past Service Cost (vested benefits) - 6,069,867

Net actuarial (gain) / loss recognized in the year 4,648,139 3,581,721

Net expense 18,862,790 21,258,152


Net Consolidated employee benefit expense (recognised in employee cost)









Net Provision for gratuity 35,148,254 22,944,170


As at 31 March



Interest cost 4,392,085 2,574,844


Past service costs - 6,901,477

Benefits paid (1,040,350) (1,107,331)

Actuarial (gain)/loss on obligation 4,663,142 3,084,669



As at 31 March





Benefits paid (1,040,350) (1,107,331)

Actuarial gains / (losses) 15,003 (592,527)





Discount rate (p.a) 8.00 - 8.40% 8%

Increase in Compensation cost 6.00 - 10.00% 6.00 - 10.00%

Employee Turnover 5.00 - 15.00% 5.00 - 15.00%



The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and

other relevant factors, such as supply and demand in the employment market.


6. Secured loans



related to the project .In respect of other term loans






company.


hypothecation of the related assets.

l Secured loans, other than working capital loans are

also secured by way of personally guaranteed of the

Chairman and Managing Director of the parent

Company.

7. Sundry debtors, loans and advances

Sundry debtors and Loans and advances as at 31 March

2011 include certain claims aggregating to ` 2,599,137,075

(31 March 2010: ` 1,716,376,422) and ` 258,755,868

respectively (31 March 2010: ` Nil) including a sum of `

941,460,652 (31 March 2010: ̀ 787,691,868) recognized as

income during the current year. The Company has preferred

such claim based on the terms and conditions implicit in the

respective contract and lodged with concerned authorities,

which is pending settlement. Since the claims being technical

in nature and are the subject matter of arbitration/dispute, the

Company has obtained a legal opinion on the recoverability

of such claims from an independent counsel. On the basis of

such assessment, management is of the opinion that the

claims are tenable and there exist no uncertainty as to

ultimate collection.




Consolidated Profit and Loss Account ` 30,448,966 (31

March 2010: ̀ 28,405,302)




service gets a gratuity on retirement at 15 days last drawn

salary for each completed year of service. The scheme is

funded with an insurance company in the form of a

qualifying insurance policy.

The following tables summarise the components of net

benefit expense recognised in the Consolidated Profit

and Loss account, fund status and amounts recognised

in the Consolidated Balance Sheet.






Past Service Cost (vested benefits) - 6,069,867

Net actuarial (gain) / loss recognized in the year 4,648,139 3,581,721

Net expense 18,862,790 21,258,152


Net Consolidated employee benefit expense (recognised in employee cost)









Net Provision for gratuity 35,148,254 22,944,170


As at 31 March



Interest cost 4,392,085 2,574,844


Past service costs - 6,901,477

Benefits paid (1,040,350) (1,107,331)

Actuarial (gain)/loss on obligation 4,663,142 3,084,669



As at 31 March





Benefits paid (1,040,350) (1,107,331)

Actuarial gains / (losses) 15,003 (592,527)





Discount rate (p.a) 8.00 - 8.40% 8%

Increase in Compensation cost 6.00 - 10.00% 6.00 - 10.00%

Employee Turnover 5.00 - 15.00% 5.00 - 15.00%



The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and

other relevant factors, such as supply and demand in the employment market.



Remuneration in the form of salaries and other allowances amounting to 41,100,000 (31 March 2010: 39,300,000) paid to



` `


(a) Names of related parties and description of relationship


Key Management Personnel 1. B. Krishnaiah, Chairman2. B. Seenaiah, Managing Director 3. K. Thanu Pillai, Whole-time Director4. T. Dayakar, Whole-time Director5. U. Jayakodi, Whole-time Director

Companies owned by or where significant

influence exercised by Key Management

Personnel (KMP) or their relatives


1. Bollineni Castings and Steel Limited2. Bollineni Developers Limited3. Aishu Castings Limited4. Aishu Projects Limited5. BSCPL Nepal Private Limited6. Krishna Institute of Medical Sciences Limited (KIMS)7. Bollineni Family Trust

1. B. Sujatha (Wife of Chairman)2. B. Bhaskar Rao (Brother of Chairman)3. B. Sandeep (Son of Managing Director)4. B. Yamuna (Wife of Managing Director)5. J. Bhaskaran (Son of Whole-time Director)



A. Transactions with enterprises over which shareholders,

KMP or their relatives exercise significant influence

1. Bollineni Castings and Steel Limited

a. Expenses reimbursable 525,507 3,937

b. Trade advances 205,470 109,711

c. Purchases 1,865,715 730,350


a. Interest on trade advances - 47,395,800

b. Purchase of land 22,500,000 -

c. Expenses reimbursable 505,038 46,493








a. Purchases 5,472,229 4,516,867

b. Trade advances (6,626,088) 23,600,000


a. Interest on trade advances 15,000,000 15,000,000

b. Sale of investments 1,130,000 -

5. BSCPL Nepal Private Limited

a. Interest free unsecured loan - (2,700,000)




a. Rent paid 135,840 411,838

B. Transactions with KMP

1. B. Krishnaiah

a. Managerial remuneration 18,000,000 18,000,000

b. Loan taken 30,000,000 111,800,000

c. Interest on loan taken - 138,4397

d. Personal guarantees against loans 7,699,921,785 6,246,889,248

2. B. Seenaiah


b. Personal guarantees against loans 7,699,921,785 6,246,889,248

3. T. Dayakar

Managerial remuneration 4,200,000 4,200,000

4. U. Jayakodi


5. K. Thanu Pillai




Remuneration in the form of salaries and other allowances amounting to 41,100,000 (31 March 2010: 39,300,000) paid to



` `


(a) Names of related parties and description of relationship


Key Management Personnel 1. B. Krishnaiah, Chairman2. B. Seenaiah, Managing Director 3. K. Thanu Pillai, Whole-time Director4. T. Dayakar, Whole-time Director5. U. Jayakodi, Whole-time Director

Companies owned by or where significant

influence exercised by Key Management

Personnel (KMP) or their relatives


1. Bollineni Castings and Steel Limited2. Bollineni Developers Limited3. Aishu Castings Limited4. Aishu Projects Limited5. BSCPL Nepal Private Limited6. Krishna Institute of Medical Sciences Limited (KIMS)7. Bollineni Family Trust

1. B. Sujatha (Wife of Chairman)2. B. Bhaskar Rao (Brother of Chairman)3. B. Sandeep (Son of Managing Director)4. B. Yamuna (Wife of Managing Director)5. J. Bhaskaran (Son of Whole-time Director)



A. Transactions with enterprises over which shareholders,

KMP or their relatives exercise significant influence

1. Bollineni Castings and Steel Limited

a. Expenses reimbursable 525,507 3,937

b. Trade advances 205,470 109,711

c. Purchases 1,865,715 730,350


a. Interest on trade advances - 47,395,800

b. Purchase of land 22,500,000 -

c. Expenses reimbursable 505,038 46,493








a. Purchases 5,472,229 4,516,867

b. Trade advances (6,626,088) 23,600,000


a. Interest on trade advances 15,000,000 15,000,000

b. Sale of investments 1,130,000 -

5. BSCPL Nepal Private Limited

a. Interest free unsecured loan - (2,700,000)




a. Rent paid 135,840 411,838

B. Transactions with KMP

1. B. Krishnaiah


b. Loan taken 30,000,000 111,800,000

c. Interest on loan taken - 138,4397

d. Personal guarantees against loans 7,699,921,785 6,246,889,248

2. B. Seenaiah


b. Personal guarantees against loans 7,699,921,785 6,246,889,248

3. T. Dayakar


4. U. Jayakodi


5. K. Thanu Pillai





C. Transactions with relatives of KMPs

1. B. Sujatha

Rent paid 960,000 1,080,000

2. B. Yamuna

Rent paid 960,000 1,080,000

3. B. Sandeep

Salaries - 2,000,000

4. J. Bhaskaran

Rent paid 120,000 120,000


As at 31 March









KIMS (1,053,799) 1,476,229


U.Jayakodi - 57,312

T. Dayakar (99,950) 273,125

B.Sujatha (216,000) (251,305)

B.Yamuna (216,000) (251,305)




11. Disclosure regarding Derivative instruments

a. The following derivative contract is outstanding as at 31 March 2011

USD/INR Cross Hedge against exposure to principal and interest $ 4,425,591

Currency Swap outflow on foreign currency.

Particulars Purpose Notional amount




Secured loans 40,051,553 59,725,043

Particulars 31 March 2011 31 March 2010


Contract revenue from Construction activity recognized for the year 10,494,061,822 14,875,899,744

Construction work in progress 3,673,538,571 2,745,379,120



Advances received for contracts in progress 3,682,152,977 1,511,723,984


Gross amount due from customers for contract work 3,673,538,571 2,745,379,120

12. In terms of the disclosures required to be made under the Accounting Standard (AS) 7 notified by the Rules for

“Construction Contracts”:



Depreciation - 159,665,767

Contract revenue/Interest from others (25,433,214) (59,725,940)

Contract expenses 1,309,661 (34,270,431)

Personnel expenses 1,129,307 (5,927,779)

Indirect taxes (5,003,064) (9,754,618)

Materials consumed (5,105,378) (12,539,553)

Finance charges 3,351,029 (6,361,607)

Admin expenses 7,782,583 -

Others (3,032,424) (3,998,319)

Total (25,001,500) (27,087,520)







C. Transactions with relatives of KMPs

1. B. Sujatha

Rent paid 960,000 1,080,000

2. B. Yamuna

Rent paid 960,000 1,080,000

3. B. Sandeep

Salaries - 2,000,000

4. J. Bhaskaran

Rent paid 120,000 120,000


As at 31 March









KIMS (1,053,799) 1,476,229


U.Jayakodi - 57,312

T. Dayakar (99,950) 273,125

B.Sujatha (216,000) (251,305)

B.Yamuna (216,000) (251,305)




11. Disclosure regarding Derivative instruments

a. The following derivative contract is outstanding as at 31 March 2011

USD/INR Cross Hedge against exposure to principal and interest $ 4,425,591

Currency Swap outflow on foreign currency.

Particulars Purpose Notional amount




Secured loans 40,051,553 59,725,043

Particulars 31 March 2011 31 March 2010


Contract revenue from Construction activity recognized for the year 10,494,061,822 14,875,899,744

Construction work in progress 3,673,538,571 2,745,379,120



Advances received for contracts in progress 3,682,152,977 1,511,723,984


Gross amount due from customers for contract work 3,673,538,571 2,745,379,120

12. In terms of the disclosures required to be made under the Accounting Standard (AS) 7 notified by the Rules for

“Construction Contracts”:



Depreciation - 159,665,767

Contract revenue/Interest from others (25,433,214) (59,725,940)

Contract expenses 1,309,661 (34,270,431)

Personnel expenses 1,129,307 (5,927,779)

Indirect taxes (5,003,064) (9,754,618)

Materials consumed (5,105,378) (12,539,553)

Finance charges 3,351,029 (6,361,607)

Admin expenses 7,782,583 -

Others (3,032,424) (3,998,319)

Total (25,001,500) (27,087,520)





14. Real estate under development

As at 31 March 2011 the Group has invested amounts aggregating to 548,817,430 (31 March 2010: 497,096,461)

towards development of a residential apartment in Dubai. The construction activities have been temporarily suspended

due to current market conditions. Based on an independent evaluation of current economic and market conditions, the



15. Loans and advances as at 31 March 2011 include certain duty drawback claims aggregating to ` 155,512,244 (31 March

2010: ` 210,831,204) including a sum of ` 10,227,875 (31 March 2010: ` 130,887,105) recognised as income during the

current year. Such claims represent refunds of excise duty paid on purchase of inputs for certain projects which are funded

by notified institutions under the Central Excise Act, 1944. During the year, the Company has received a correspondence

from the department of central excise and customs clarifying that certain input materials do not qualify for refund of excise

duty under the duty draw back scheme. The Company, based on past experience and opinion of an independent legal

counsel, is confident of realizing the claims outstanding as on 31 March 2011.

16. Segment information

Business segment:

The Group has disclosed business segment as the primary segment. The operating segments have been identified taking

into account the nature of activities of the parent company, its subsidiaries and joint ventures, the differing risks and returns,

the organization structure and internal reporting system.

The Group’s operations predominantly relate to “Infrastructure” and “Real Estate” Other business segments contribute

less than 10 % of the total revenue and have been grouped as “Others”.

Geographical segments:

Operations of the Group are managed from independent locations, which are located in different geographical locations.

However each of these operating locations are further aggregated based on the following factors: (a) similarity of economic

and political conditions; (b) relationships between operations in different geographical areas; (c) proximity of operations;

(d) special risks associated with operations in a particular area; (e) exchange control regulations; and (f) the underlying

currency risk. Accordingly, the following have been identified as the reportable geographical segments: (a) “India”, (b)

“Afghanistan”, and (c) “Rest of the World”.

` `

India 9,798,381,568 14,571,302,995 24,193,484,595 19,892,598,688 2,589,745,850 1,952,849,445

Afghanistan 1,125,685,862 725,455,364 1,738,253,958 1,513,020,599 (25,456,978) (3,810,549)

Rest of World 206,821,855 326,680,892 1,094,181,990 1,163,224,167 (3,250,170) 6,504,864

11,130,889,286 15,623,439,251 27,025,920,542 22,568,843,454 2,561,038,702 1,955,543,760

a. Geographical segment information

Segment revenuefor the year ended

31 March

2011 2010

Carrying amount ofsegment assetsas at 31 March

2011 2010

Carrying amount of additions to segment fixed assetsduring the year ended

31 March

2011 2010




th13 Annual Report 77b

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14. Real estate under development

As at 31 March 2011 the Group has invested amounts aggregating to 548,817,430 (31 March 2010: 497,096,461)

towards development of a residential apartment in Dubai. The construction activities have been temporarily suspended

due to current market conditions. Based on an independent evaluation of current economic and market conditions, the



15. Loans and advances as at 31 March 2011 include certain duty drawback claims aggregating to ` 155,512,244 (31 March

2010: ` 210,831,204) including a sum of ` 10,227,875 (31 March 2010: ` 130,887,105) recognised as income during the

current year. Such claims represent refunds of excise duty paid on purchase of inputs for certain projects which are funded

by notified institutions under the Central Excise Act, 1944. During the year, the Company has received a correspondence

from the department of central excise and customs clarifying that certain input materials do not qualify for refund of excise

duty under the duty draw back scheme. The Company, based on past experience and opinion of an independent legal

counsel, is confident of realizing the claims outstanding as on 31 March 2011.

16. Segment information

Business segment:

The Group has disclosed business segment as the primary segment. The operating segments have been identified taking

into account the nature of activities of the parent company, its subsidiaries and joint ventures, the differing risks and returns,

the organization structure and internal reporting system.

The Group’s operations predominantly relate to “Infrastructure” and “Real Estate” Other business segments contribute

less than 10 % of the total revenue and have been grouped as “Others”.

Geographical segments:

Operations of the Group are managed from independent locations, which are located in different geographical locations.

However each of these operating locations are further aggregated based on the following factors: (a) similarity of economic

and political conditions; (b) relationships between operations in different geographical areas; (c) proximity of operations;

(d) special risks associated with operations in a particular area; (e) exchange control regulations; and (f) the underlying

currency risk. Accordingly, the following have been identified as the reportable geographical segments: (a) “India”, (b)

“Afghanistan”, and (c) “Rest of the World”.

` `

India 9,798,381,568 14,571,302,995 24,193,484,595 19,892,598,688 2,589,745,850 1,952,849,445

Afghanistan 1,125,685,862 725,455,364 1,738,253,958 1,513,020,599 (25,456,978) (3,810,549)

Rest of World 206,821,855 326,680,892 1,094,181,990 1,163,224,167 (3,250,170) 6,504,864

11,130,889,286 15,623,439,251 27,025,920,542 22,568,843,454 2,561,038,702 1,955,543,760

a. Geographical segment information

Segment revenuefor the year ended

31 March

2011 2010

Carrying amount ofsegment assetsas at 31 March

2011 2010

Carrying amount of additions to segment fixed assetsduring the year ended

31 March

2011 2010





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As at 31 March


Loan funds

Secured loans 258,593,868 468,630,498

Unsecured loans 1,949,634,062 1,421,266,713

Deferred tax liability (net) 250,053,515 213,943,471

Fixed assets (net block) 2,076,742,931 2,198,305,423

Capital work in progress (including capital advances) 70,667,456 8,214,767

Receivables under service concession arrangement 156,884,367 -


Inventories 4,140,730,642 3,269,021,682

Cash and bank balances 251,076,083 333,657,058

Sundry debtors 748,223,141 708,390,599

Other current assets 124,000 -

Loans and advances 1,020,197,908 1,208,959,293

6,908,671,381 5,520,028,632


Liabilities 1,741,698,785 4,837,510,038

Provisions 132,598,279 108,239,109

1,823,549,581 4,945,749,147

Net current assets 5,085,121,800 574,279,485

17. Details of Company’s share in joint ventures included in the consolidated financial statements are as follows:


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As at 31 March


Loan funds

Secured loans 258,593,868 468,630,498

Unsecured loans 1,949,634,062 1,421,266,713

Deferred tax liability (net) 250,053,515 213,943,471

Fixed assets (net block) 2,076,742,931 2,198,305,423

Capital work in progress (including capital advances) 70,667,456 8,214,767

Receivables under service concession arrangement 156,884,367 -


Inventories 4,140,730,642 3,269,021,682

Cash and bank balances 251,076,083 333,657,058

Sundry debtors 748,223,141 708,390,599

Other current assets 124,000 -

Loans and advances 1,020,197,908 1,208,959,293

6,908,671,381 5,520,028,632


Liabilities 1,741,698,785 4,837,510,038

Provisions 132,598,279 108,239,109

1,823,549,581 4,945,749,147

Net current assets 5,085,121,800 574,279,485

17. Details of Company’s share in joint ventures included in the consolidated financial statements are as follows:







Total 2,700,000 2,835,020


As at 31 March


Income

Contract revenues 6,329,672,259 6,938,497,316

Sale of metal 51,580,155 176,864,894

Other income 75,905,700 40,595,908

Increase in stocks 960,878,471 941,129,779

7,418,036,585 8,097,087,897

Expenditure

Material consumed 3,389,290,918 4,179,601,207


Contract expenses 1,772,926,035 1,782,509,816

Administrative and selling expenses 144,125,077 144,222,742

Depreciation 193,068,199 189,975,186

Financial expenses 208,503,362 333,736,947

6,389,017,073 7,252,531,162

Profit before tax and prior period items 891,410,637 -

Prior period items (12,083,806) -

Profit before tax 903,494,442 837,424,183

Tax expense

Current tax 311,424,756 264,272,358

Deferred tax 36,110,044 101,095,052

Profit after tax 555,959,643 472,057,773



19. Based on information available with the Group, there are no suppliers who are registered as micro and small enterprises

under “The Micro, Small and Medium Enterprises Development Act, 2006 as at 31 March 2011.

20. Details of service concession arrangements

The concession arrangements of the Group relate primarily to the construction, up-gradation, operation and maintenance

of roads by special purpose entities within the Group, which at the end of the concession period must be returned in the

stipulated conditions to the grantors of the concessions. In consideration for having designed, constructed, upgraded,

operated and maintained such roads, the Group is entitled either to “Annuities” from grantors or is entitled charge “Toll” to

the users of the roads besides other revenue from ancillary commercial activities

i. The following are toll based service concession arrangements of the Group which have been classified as “Intangible

Assets” in the financial statements:

a. Kurlai-Kiratpur Road Project (“KKRP”) is a concession arrangement entered into between National Highways Authority

of India (“NHAI”) and BSC–C&C Kurali Toll Road Limited (“BKTL”). BKTL is required to design, build, finance and

operate and transfer the KKRP for a period of 20 years commencing from the appointed date. Maintenance activities

cover routine maintenance, overlays and renewals. The amount of toll recoverable from users is linked to the

movements in the consumer price index. Premature termination before the said period of concession is not permitted

except in the event of a force majeure. Premature termination without default on the part of BKTL will entitle BKTL to be

eligible for compensation as per the concession. At the end of the concession period, KKRP is required to hand back

the carriageway to the grantor without additional consideration.

b. Godhra Madhya Pradesh Border Road Project (“GMPBRP”) is a concession arrangement granted by NHAI for

construction, operation and maintenance of the GMPBRP to BSCPL Godhra Tollways Limited (“BGTL”) for a period 27

years commencing from the appointed date being 1 March 2011. As per the concession agreement, BGTL has

obligation to undertake the design, engineering, procurement, construction, operation and maintenance of the

GMPBRP.

In consideration, BGTL is entitled to collect service fees from the users in accordance with the concession agreement.

At the end of the concession period, BGTL will hand over the infrastructure to NHAI.

c. Chilkaluripet–Nellore Road Project (“CNRP”) is a concession arrangement entered into between NHAI and Simhapuri

Expressway Limited (“SEL”). SEL is required to design, build, finance and operate and transfer the CNRP for a period of

30 years commencing from the appointed date. Maintenance activities cover routine maintenance, overlays and

renewals. The amount of toll recoverable from users is linked to the movements in the consumer price index. Premature

termination before the said period of concession is not permitted except in the event of a force majeure. Premature

termination without default on the part of SEL will entitle SEL to be eligible for compensation as per the concession. At

the end of the concession period, CNRP is required to hand back the carriageway to the grantor without additional

consideration.

d. Patna Bakhtiyarpur Road Project (“PBRP”) is a concession arrangement entered into between NHAI and Patna

Bakhtiyarpur Tollway Limited (“PBTL”). PBTL is required to design, build, finance and operate and transfer the PBRP for

a period of 30 years commencing from the appointed date. Maintenance activities cover routine maintenance, overlays

and renewals. The amount of toll recoverable from users is linked to the movements in the consumer price index.

Premature termination before the said period of concession is not permitted except in the event of a force majeure.

Premature termination without default on the part of PBTL will entitle PBTL to be eligible for compensation as per the

concession. At the end of the concession period, PBRP is required to hand back the carriageway to the grantor without

additional consideration.









Total 2,700,000 2,835,020


As at 31 March


Income

Contract revenues 6,329,672,259 6,938,497,316

Sale of metal 51,580,155 176,864,894

Other income 75,905,700 40,595,908

Increase in stocks 960,878,471 941,129,779

7,418,036,585 8,097,087,897

Expenditure

Material consumed 3,389,290,918 4,179,601,207


Contract expenses 1,772,926,035 1,782,509,816

Administrative and selling expenses 144,125,077 144,222,742

Depreciation 193,068,199 189,975,186

Financial expenses 208,503,362 333,736,947

6,389,017,073 7,252,531,162

Profit before tax and prior period items 891,410,637 -

Prior period items (12,083,806) -

Profit before tax 903,494,442 837,424,183

Tax expense

Current tax 311,424,756 264,272,358

Deferred tax 36,110,044 101,095,052

Profit after tax 555,959,643 472,057,773



19. Based on information available with the Group, there are no suppliers who are registered as micro and small enterprises

under “The Micro, Small and Medium Enterprises Development Act, 2006 as at 31 March 2011.

20. Details of service concession arrangements

The concession arrangements of the Group relate primarily to the construction, up-gradation, operation and maintenance

of roads by special purpose entities within the Group, which at the end of the concession period must be returned in the

stipulated conditions to the grantors of the concessions. In consideration for having designed, constructed, upgraded,

operated and maintained such roads, the Group is entitled either to “Annuities” from grantors or is entitled charge “Toll” to

the users of the roads besides other revenue from ancillary commercial activities

i. The following are toll based service concession arrangements of the Group which have been classified as “Intangible

Assets” in the financial statements:

a. Kurlai-Kiratpur Road Project (“KKRP”) is a concession arrangement entered into between National Highways Authority

of India (“NHAI”) and BSC–C&C Kurali Toll Road Limited (“BKTL”). BKTL is required to design, build, finance and

operate and transfer the KKRP for a period of 20 years commencing from the appointed date. Maintenance activities

cover routine maintenance, overlays and renewals. The amount of toll recoverable from users is linked to the

movements in the consumer price index. Premature termination before the said period of concession is not permitted

except in the event of a force majeure. Premature termination without default on the part of BKTL will entitle BKTL to be

eligible for compensation as per the concession. At the end of the concession period, KKRP is required to hand back

the carriageway to the grantor without additional consideration.

b. Godhra Madhya Pradesh Border Road Project (“GMPBRP”) is a concession arrangement granted by NHAI for

construction, operation and maintenance of the GMPBRP to BSCPL Godhra Tollways Limited (“BGTL”) for a period 27

years commencing from the appointed date being 1 March 2011. As per the concession agreement, BGTL has

obligation to undertake the design, engineering, procurement, construction, operation and maintenance of the

GMPBRP.

In consideration, BGTL is entitled to collect service fees from the users in accordance with the concession agreement.

At the end of the concession period, BGTL will hand over the infrastructure to NHAI.

c. Chilkaluripet–Nellore Road Project (“CNRP”) is a concession arrangement entered into between NHAI and Simhapuri

Expressway Limited (“SEL”). SEL is required to design, build, finance and operate and transfer the CNRP for a period of

30 years commencing from the appointed date. Maintenance activities cover routine maintenance, overlays and

renewals. The amount of toll recoverable from users is linked to the movements in the consumer price index. Premature

termination before the said period of concession is not permitted except in the event of a force majeure. Premature

termination without default on the part of SEL will entitle SEL to be eligible for compensation as per the concession. At

the end of the concession period, CNRP is required to hand back the carriageway to the grantor without additional

consideration.

d. Patna Bakhtiyarpur Road Project (“PBRP”) is a concession arrangement entered into between NHAI and Patna

Bakhtiyarpur Tollway Limited (“PBTL”). PBTL is required to design, build, finance and operate and transfer the PBRP for

a period of 30 years commencing from the appointed date. Maintenance activities cover routine maintenance, overlays

and renewals. The amount of toll recoverable from users is linked to the movements in the consumer price index.

Premature termination before the said period of concession is not permitted except in the event of a force majeure.

Premature termination without default on the part of PBTL will entitle PBTL to be eligible for compensation as per the

concession. At the end of the concession period, PBRP is required to hand back the carriageway to the grantor without

additional consideration.




ii. The following are annuity based service concession arrangements of the Group which have been classified as financial

assets under “Receivables under service concession arrangements” in the financial statements:

a. Mokama Munger Road Project (“MMRP”) is a concession arrangement granted by the NHAI for a period of 15 years

including construction period of 730 days commencing form the appointed date to Mokama-Munger Highway Limited

(“MMHL”). Besides construction, MMHL’s obligations include routine maintenance and period maintenance of the

flexible pavement and the rigid pavement at predefined intervals. In consideration MMHL is entitled to a defined annuity.

At the end of the concession period MMRP is required to be handed over in a stipulated condition to the grantor.

Premature termination is permitted only upon the happening of a force majeure event or upon the parties defaulting on

their obligations. The concession arrangement does not provide for renewal options

b. Muzaffarpur Sonbarsa Road Project (“MSRP”) is a concession arrangement granted by the NHAI for a period of 20

years including construction period of 910 days commencing form the appointed date to North Bihar Highway Limited

(“NBHL”). Besides construction, NBHL’s obligations include routine maintenance and period maintenance of the

flexible pavement and the rigid pavement at predefined intervals. In consideration NBHL is entitled to a defined annuity.

At the end of the concession period MSRP is required to be handed over in a stipulated condition to the grantor.




For and on behalf of the Board of Directors ofBSCPL Infrastructure Limited

B. Seenaiah Managing Director


B.S. Bhaskar Company Secretary







Consolidated Cash flow statement for the year ended 31 March 2011All amounts in Indian Rupees unless otherwise stated

As at 31 March


A. Cash flow from operating activities

Profit before tax and after prior period items 842,338,289 1,358,324,620

Adjustments for:

Depreciation 648,344,746 622,791,098

Unrealised (gain)/loss on foreign exchange 78,145 (9,504,008)

Loss on sale of fixed assets 7,786,268 8,980,984

Diminution in value of investments 1,062,525 995,710


Interest expense 1,460,532,243 1,259,924,936

Profit on sale of non trade investments (1,015,774) -


Interest income (149,997,586) (123,196,427)

Accumulated depreciation written back - (145,736,842)





Increase in inventories (2,174,873,738) (1,548,582,111)



Increase in current liabilities 963,941,659 1,455,636,717

Cash generated from operations 2,331,506,289 1,888,056,012

Direct taxes paid (net of refunds) (485,671,099) (274,391,285)

Net cash from operating activities 1,845,835,190 1,613,664,727


Purchase of fixed assets (626,041,481) (691,048,442)

Proceeds from sale of fixed assets 28,718,895 61,513,305

Increase in receivabale under service concession arrangements (302,599,955) -

Expenditure on intangible assets under development (1,749,148,186) (1,638,628,421)

Loans and advances to joint venture entities, net (645,467,508) (732,126)


Sale of investments 1,130,000 2,304,290


Net cash used in investing activities (3,079,868,798) (2,095,784,925)


Proceeds from secured loans, net 3,345,824,220 575,989,079

Proceeds from/ (Repayment of) working capital demand loans, net (504,857,934) 2,290,734,377

Repayment of unsecured loans, net (96,344,645) (1,628,707,087)

Contribution by minority shareholder 37,875,421 -

Grant received from National Highway Authority of India 186,999,737 304,432,249

Finance charges (1,448,978,601) (1,289,222,665)


ii. The following are annuity based service concession arrangements of the Group which have been classified as financial

assets under “Receivables under service concession arrangements” in the financial statements:

a. Mokama Munger Road Project (“MMRP”) is a concession arrangement granted by the NHAI for a period of 15 years

including construction period of 730 days commencing form the appointed date to Mokama-Munger Highway Limited

(“MMHL”). Besides construction, MMHL’s obligations include routine maintenance and period maintenance of the

flexible pavement and the rigid pavement at predefined intervals. In consideration MMHL is entitled to a defined annuity.

At the end of the concession period MMRP is required to be handed over in a stipulated condition to the grantor.



b. Muzaffarpur Sonbarsa Road Project (“MSRP”) is a concession arrangement granted by the NHAI for a period of 20

years including construction period of 910 days commencing form the appointed date to North Bihar Highway Limited

(“NBHL”). Besides construction, NBHL’s obligations include routine maintenance and period maintenance of the

flexible pavement and the rigid pavement at predefined intervals. In consideration NBHL is entitled to a defined annuity.

At the end of the concession period MSRP is required to be handed over in a stipulated condition to the grantor.




For and on behalf of the Board of Directors ofBSCPL Infrastructure Limited

B. Seenaiah Managing Director


B.S. Bhaskar Company Secretary








As at 31 March


A. Cash flow from operating activities

Profit before tax and after prior period items 842,338,289 1,358,324,620

Adjustments for:

Depreciation 648,344,746 622,791,098

Unrealised (gain)/loss on foreign exchange 78,145 (9,504,008)

Loss on sale of fixed assets 7,786,268 8,980,984

Diminution in value of investments 1,062,525 995,710


Interest expense 1,460,532,243 1,259,924,936

Profit on sale of non trade investments (1,015,774) -


Interest income (149,997,586) (123,196,427)

Accumulated depreciation written back - (145,736,842)





Increase in inventories (2,174,873,738) (1,548,582,111)



Increase in current liabilities 963,941,659 1,455,636,717

Cash generated from operations 2,331,506,289 1,888,056,012

Direct taxes paid (net of refunds) (485,671,099) (274,391,285)

Net cash from operating activities 1,845,835,190 1,613,664,727


Purchase of fixed assets (626,041,481) (691,048,442)

Proceeds from sale of fixed assets 28,718,895 61,513,305

Increase in receivabale under service concession arrangements (302,599,955) -

Expenditure on intangible assets under development (1,749,148,186) (1,638,628,421)

Loans and advances to joint venture entities, net (645,467,508) (732,126)


Sale of investments 1,130,000 2,304,290


Net cash used in investing activities (3,079,868,798) (2,095,784,925)


Proceeds from secured loans, net 3,345,824,220 575,989,079

Proceeds from/ (Repayment of) working capital demand loans, net (504,857,934) 2,290,734,377

Repayment of unsecured loans, net (96,344,645) (1,628,707,087)

Contribution by minority shareholder 37,875,421 -

Grant received from National Highway Authority of India 186,999,737 304,432,249

Finance charges (1,448,978,601) (1,289,222,665)


As at 31 March


Net increase/(decrease) in cash and cash equivalents (A+B+C) 286,484,590 (228,894,245)



Note: 1

Cash and bank balance (as per schedule 10 of the financial statements) 1,136,530,782 744,722,448

Less: Fixed deposits considered as restricted deposits 224,558,390 119,234,646

911,972,392 625,487,802

This is the consolidated cash flow statement referred to in our report of even date















As at 31 March


Net increase/(decrease) in cash and cash equivalents (A+B+C) 286,484,590 (228,894,245)



Note: 1

Cash and bank balance (as per schedule 10 of the financial statements) 1,136,530,782 744,722,448

Less: Fixed deposits considered as restricted deposits 224,558,390 119,234,646

911,972,392 625,487,802

This is the consolidated cash flow statement referred to in our report of even date

















fin

ish

ing

po

int.

net

+9

1 9

84

90

20

29

6

(Formerly B. Seenaiah & Company (Projects) Limited) 6-2-913/914, 5th Floor, Progressive Towers, Khairatabad, Hyderabad - 500 004.

Phones: 040 - 23303663, 23307704, 23307831, Fax: 040 - 23307385E-mail: [email protected]

w w w . b s c p l . n e t

BSCPL INFRASTRUCTURE LTD.

Documents

BSCPL AR single color · Phones: 91-40-23307831 Fax: 91-40-23307385 e-mail: [email protected] Website: Company Secretary B. S. Bhaskar Chief Financial Officer A. V. B. R. Narasimham